Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Enviro nment Technology Group Co. Ltd.2025 Annual Report

[Disclosure Date]

1Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2025 Annual Report

Part I Important Notice Table of Contents and Definitions

The Board of Directors as well as the directors and senior officers of

Infore Environment Technology Group Co. Ltd. warrant that the information

in this report includes no misrepresentations misleading statements or

material omissions and jointly and severally accept liability for the

truthfulness accuracy and completeness of information in this report.Ma Gang the Company's legal representative Wang Qingbo CFO and

Director of Finance of the Company and Wu Shanshan head of the accounting

department (equivalent to accounting manager) of the Company warrant that

the financial statements in the Annual Report are true accurate and complete.All directors of the Company attended the Board meeting to review this

report.Any forward-looking statements such as future plans mentioned in this

report shall not be considered as promises to investors. Investors are advised to

pay attention to possible investment risks.The Board has approved a proposal on dividend plan as follows: Based on

the total share capital (minus shares in the Company's repurchase account) on

the date of record for the 2025 final dividend plan a cash dividend of RMB

1.30 (tax inclusive) per 10 shares will be distributed to the shareholders with

no conversion of the capital reserve to share capital.

2Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Contents

Part I Important Notice Table of Contents and Defi....2

Part II Company Profile and Principal Financial In....6

Part III Management Discussion and Analysis ........ 12

Part IV Corporate Governance Environment and Socie...55

Part V Significant Events .......................... 82

Part VI Share Changes and Shareholder Information ..106

Part VII Information on Bonds ..................... 115

Part VIII Financial Report ........................ 120

3Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Documents Available for Reference

(I) Financial statements with signatures and seals of the legal representative of the Company CFO and Director of Finance of

the Company and head of the accounting department of the Company.(II) Original audit report with the seal of the accounting firm and signed and stamped by certified public accountants (CPAs).(III) Originals of all corporate documents and announcements publicly disclosed on the website designated by the CSRC

during the reporting period.The originals and legally effective photocopies of the aforesaid documents are available at the Company and the stock

exchange for inspection by investors.

4Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Definitions

Term means Definition

CSRC means China Securities Regulatory Commission

SZSE means Shenzhen Stock Exchange

General Meeting of Shareholders of Infore

General Meeting of Shareholders means

Environment Technology Group Co. Ltd.Board of Directors of Infore Environment

Board of Directors the Board means

Technology Group Co. Ltd.Company Law of the People's Republic of

Company Law means

China

Securities Law of the People's Republic of

Securities Law means

China

Articles of Association of Infore Environment

Articles of Association means

Technology Group Co. Ltd.

5Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part II Company Profile and Principal Financial Indicators

I. Company Information

Stock name Infore Enviro Stock code 000967

Stock listed on Shenzhen Stock Exchange

Chinese name of the盈峰环境科技集团股份有限公司

Company

Chinese abbreviation of the

Company 盈峰环境科技集团

Foreign name of the

Infore Environment Technology Group Co. Ltd.Company (if any)

Legal representative of the

Ma Gang

Company

1818 Renmin West Road Dongguan Sub-district Shangyu District Shaoxing City Zhejiang

Registered address

Province China

Postal code of registered

312300

address

Historical change in On February 29 2016 the Company changed its registered address to 1818 Renmin West Road

registered address of the Dongguan Sub-district Shangyu District Shaoxing City Zhejiang Province China from

Company Shangpu Town Shangyu City Zhejiang Province.Office address No. 8 Huishang Road Leliu Subdistrict Shunde District Foshan City Guangdong Province

Postal code of office address 528322

Official website www.inforeenviro.com

E-mail inforeenviro@infore.com

II. Contact Details

Board Secretary Securities Representative

Name Huang Junjie Wang Fei

No. 8 Huishang Road Leliu Subdistrict No. 8 Huishang Road Leliu Subdistrict

Address Shunde District Foshan City Shunde District Foshan City

Guangdong Province Guangdong Province

Telephone 0757-26335291 0757-26335291

Fax 0757-26330783 0757-26330783

E-mail IR@infore.com IR@infore.com

III. Information Disclosure and Access

Stock exchange website on which the report is published Shenzhen Stock Exchange: http://www.szse.cn/

China Securities Journal Securities Times Securities Daily

Publications and websites on which the report is published Shanghai Securities Journal and Cninfo

(http://www.cninfo.com.cn/)

Place where the report is lodged No. 8 Huishang Road Leliu Subdistrict Shunde District

6Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Foshan City Guangdong Province

IV. Changes to Registered Information

Unified Social Credit Code 913300006096799222

Since it went public in 2000 the Company has changed its

business scope five times. Scope of business as at November

18 1993: the research development and production of

ventilators air-cooling and water-cooling equipment air

conditioners refrigerators quick-freezing equipment molds

and power generators. Export (refer to the documents of

approval from the Ministry of Foreign Trade and Economic

Cooperation for details). On July 2 2002 the scope of business

expanded to include "metal and plastic-steel composite pipes

and profiles". On November 14 2003 the scope of business

expanded to include "environmental engineering". On February

29 2016 a strategic transformation led to an expansion of the

Company's scope of business to: R&D maintenance and

operation services of environmental monitoring instruments

development consulting and services of environmental

management technologies operation services of environmental

management facilities; design and construction of

environmental engineering environmental protection

engineering municipal engineering and water conservancy and

other water-related projects technological development and

services for water pollution control water treatment and

ecological restoration; R&D sales and relevant technical

consulting services of communication products network

products mechatronic products automatic control products

Changes to the Company's principal activities since its listing intelligent building and community products as well as

(if any) software products; design development investment operation

management and technical consulting services of relevant

supporting facilities for the disposal and recycling of municipal

waste and solid waste; sales of ventilators and air-cooled

water-cooled and air conditioning equipment; operation of

import and export business; industrial investment investment

management asset management and investment consultation.On May 18 2016 "investment the operation of import and

export business industrial investment investment management

and asset management" were removed from the Company's

scope of business. On June 28 2019 the Company's scope of

business was updated to: R&D manufacturing sales technical

consultation maintenance and operation services of sanitation

equipment special operation robots new energy vehicles

(NEV) environmental monitoring equipment special

equipment for environmental protection car charging

equipment and parts; equipment leasing; design operations

management technological development and technical services

of supporting facilities relating to disposal and recycling of

municipal garbage and solid waste; design construction

operations management technological development technical

services of environmental engineering municipal engineering

garden engineering electric power engineering water

conservancy engineering water pollution treatment

engineering air pollution treatment engineering and soil

7Infore Environment Technology Group Co. Ltd. 2025 Annual Report

remediation engineering; operational cleaning collection

transportation and treatment services of urban household

garbage (operating with license); development technical

consultation and technical services of environmental

protection IoT and Internet technologies; software

development and sales; sales of ventilators air cooling water

cooling and air conditioning equipment; import and export

business and investment consultation.

1. In 2000 the Company went public and its largest

shareholder was Zhejiang Fan & Air-cooled Equipment Co.Ltd. 2. On February 23 2006 the former controlling

shareholder of the Company Zhejiang Shangfeng Industry

Group Co. Ltd. and the Company's shareholder Midea Group

Co. Ltd. transferred their respective stocks of 9575027

shares and 24897984 shares to Guangdong Infore Group Co.Ltd. Guangdong Infore Group Co. Ltd. became the Company's

largest shareholder. 3. On August 5 2008 the Company's

controlling shareholder Guangdong Infore Group Co. Ltd.changed its name to "Guangdong Infore Holding Investment

Changes to the Company's controlling shareholders since its

Group Co. Ltd." 4. On September 30 2010 Guangdong Infore

incorporation (if any)

Holding Investment Group Co. Ltd. changed its name to

"Infore Holding Investment Group Co. Ltd." The latter became

the Company's controlling shareholder. 5. On January 4 2019

the private placement of new shares for the purchase of new

assets was made and the Company issued 1017997382

shares to Ningbo Infore Asset Management Co. Ltd. to acquire

its 51% equity interest in Zoomlion Environmental. Ningbo

Infore Asset Management Co. Ltd. became the Company's

largest shareholder. As at the end of the reporting period the

Company's controlling shareholder was Ningbo Infore Asset

Management Co. Ltd.V. Other Relevant Information

The accounting firm engaged by the Company

Pan-China Certified Public Accountants LLP (Special General

Name of accounting firm

Partnership)

27/F Run'ao Business Center (T2) Qianjiang Century CBD

Office address of accounting firm

Xiaoshan District Hangzhou City Zhejiang Province

Authorized signatories Lin Wang and Cao Cuijuan

Authorized signatories

□Applicable □ Not Applicable

Sponsor Sponsor's office address Representative Supervisory period

The supervision period will

Huaxing Securities 2301

Li Zeming and Yue Yalan end upon completion of the

Raffles City The Bund East

(changed to Shen Ying and Company's proceeds

Huaxing Securities Co. Ltd. Tower No. 1089

Guan Yuxia on April 15 investment projects and

Dongdaming Road Hongkou

2026) resolution of all outstanding

District Shanghai

matters.The financial advisor engaged by the Company to exercise constant supervision over the Company during the reporting period

□ Applicable□ Not applicable

8Infore Environment Technology Group Co. Ltd. 2025 Annual Report

VI. Major Accounting Data and Financial Indicators

Whether the Company needs to retroactively adjust or restate previous years' accounting data

□Yes□No

2025 2024 YoY change 2023

Operating revenue

13843807632.4513117894323.955.53%12631050967.34

(RMB)

Net profit attributable

to the listed company's 549799271.94 513514275.54 7.07% 498383730.00

shareholders (RMB)

Net profit attributable

to the listed company's

shareholders after non- 518333015.66 502176740.07 3.22% 444753430.22

recurring gains and

losses (RMB)

Net cash flows from

operating activities 962875753.97 1162049481.48 -17.14% 1385556509.49

(RMB)

Basic earnings per

0.170.166.25%0.16

share (RMB/share)

Diluted earnings per

0.170.166.25%0.16

share (RMB/share)

Weighted average

3.16%2.94%0.22%2.88%

return on equity

End of 2025 End of 2024 YoY change End of 2023

Total assets (RMB) 35435094468.33 29636330337.87 19.57% 29048201560.36

Net assets attributable

to the listed company's 17180499100.45 17519445625.13 -1.93% 17437509156.73

shareholders (RMB)

The lower of net profit before and after non-recurring gains and losses is negative for the most recent three fiscal years and the

latest auditor's report shows there is uncertainty as to the Company's ability to continue as a going concern

□Yes□No

During the reporting period the lower of total audited profit net profit and net profit after non-recurring gains and losses is

negative

□Yes□No

VII. Accounting Data Differences Arising from Domestic/Overseas Accounting Standards

1. Differences in net profit and net assets under Chinese Accounting Standards and International

Accounting Standards

□Applicable□ Not applicable

No such differences during the reporting period.

9Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2. Differences in net profit and net assets under Chinese Accounting Standards and Overseas Accounting

Standards

□Applicable□ Not applicable

No such differences during the reporting period.VIII. Quarterly Principal Financial Indicators

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 3182388273.41 3280575561.09 3081293051.08 4299550746.87

Net profit attributable

to the listed company's 180673657.56 201802782.28 88860133.94 78462698.16

shareholders

Net profit attributable

to the listed company's

shareholders after non- 171632428.58 182611772.03 86610025.10 77478789.95

recurring gains and

losses

Net cash flows from

-98745652.59-1594104887.19-184077224.172839803517.92

operating activities

Whether the financial indicators above or their sums differ materially from those in the Company's disclosed quarterly and interim

reports

□Yes□No

IX. Non-recurring Gains and Losses Items and Amounts

□Applicable □ Not Applicable

Unit: RMB

Items Amount in 2025 Amount in 2024 Amount in 2023 Note

Gain or loss for the disposal of non-current

assets (inclusive of provisions to write off -28415103.19 -47196844.86 -4146549.53 —

impaired assets)

Government subsidies recognized as gain or

loss during the reporting period (exclusive of

government subsidies given in the Company's

ordinary course of business based on the 70956784.40 55557305.65 52966550.75 —

established criteria and having a continuous

impact on the Company's gain or loss as per the

government policies or regulations)

Gain or loss arising from changes in fair value

of financial assets and financial liabilities held

by non-financial enterprises as well as from the

disposal of financial assets and financial 2224899.82 17102059.94 — —

liabilities (exclusive of effective hedges that

arise in relation to the Company's ordinary

business operations)

10Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Capital collected from non-financial enterprises

that was recognized as gain or loss during the 1116427.49 6113509.25 52623.28 —

reporting period

Income

from

wealth

managem

Gain or loss on entrusting other parties with

22649967.63 24183474.63 12111406.99 ent

investment or asset management

products:

RMB

2264996

7.63

Reversal of provisions for impaired receivables

that have been individually tested for 2272590.34 10424873.13 484240.00 —

impairment

Gain/loss on debt restructuring -2318575.60 -3130560.92 —

Operating revenue and expenses other than the

-11996717.60-31994184.649532774.64—

above items

Less: Income tax 24584493.76 12036883.47 11730712.09 —

Minority interest affected (after tax) 2758098.85 8497198.56 2509473.34 —

Total 31466256.28 11337535.47 53630299.78 —

Details on other gains and losses that fall into the definition of non-recurring gain/loss:

□ Applicable□ Not applicable

No such cases during the reporting period.Explanation of classification of non-recurring gains and losses listed in the Explanatory Announcement No. 1 on Information

Disclosure by Companies Offering Securities to the Public — Non-recurring Gains and Losses as recurring gains and losses

□ Applicable□ Not applicable

No such cases during the reporting period.

11Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part III Management Discussion and Analysis

I. Principal Business During the Reporting Period

Infore Enviro (Stock code: 000967) is a technology-based enterprise focused on the integrated development of environmental

services and intelligent technologies. The Company is committed to becoming the most respected and trusted leader in providing

intelligent equipment and services with cleaning robots at its core. As at the end of the reporting period the Company had 343

subsidiaries establishing 3 major industrial bases in Changsha Foshan and Shaoxing across the country and 2 overseas factories

in Thailand and Italy forming a global manufacturing and service network. Operating 22 R&D platforms and 361 service outlets

it provides comprehensive technical support and operational assurance for its business. The Company focuses on urban service

business. Leveraging the most complete equipment matrix in the industry and a digital platform hub it delivers integrated

solutions combining "intelligent equipment smart services and Smart Sanitation Cloud computing" covering all scenarios of

urban cleaning. It has built a complete technological ecosystem spanning front-end intelligent equipment development to back-end

smart operation services.(I) Intelligent equipment

The Company has developed the most comprehensive portfolio of intelligent environmental protection equipment of over 500

models within the industry providing customers with a wide range of solutions including various traditional cleaning equipment

new energy cleaning equipment and cleaning robots. The Company's products cover intelligent environmental protection

equipment such as cleaning and maintenance equipment waste collection and transportation equipment waste compression station

equipment kitchen food waste recycling equipment and municipal and landscaping equipment as well as diversified product lines

such as aerial work equipment and emergency fire-fighting equipment.Market performance: The Company has ranked first in domestic environmental protection equipment sales for 25 consecutive

years. The Company sold 14012 units of environmental protection equipment in 2025 a year-on-year increase of 15.1% with a

market share of 21.1% up nearly 1.8 percentage points year-on-year according to new-vehicle compulsory liability insurance data

(hereinafter referred to as "insurance data") from the National Financial Regulatory Administration. Both the sales volume and the

market share of the environmental protection equipment ranked first in the market of the same industry. In 2025 the Company sold

5245 units of new energy-powered environmental protection equipment with a market share of 35.0%. The Company has

maintained the top position in both sales volume and market share of new energy-powered environmental protection equipment for

12Infore Environment Technology Group Co. Ltd. 2025 Annual Report

four consecutive years.(II) Smart services

13Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The Company's smart services segment has developed a diversified multi-scenario intelligent environmental service system

providing customers with integrated environmental protection solutions. Through a unified architecture of "intelligent equipment +

Smart Sanitation Cloud Platform" and leveraging industry-leading smart cleaning robots new energy-powered environmental

protection equipment and autonomous sanitation vehicles the Company has achieved a leap from "standalone intelligence" to

"cluster coordination". It has restructured its operational logic from human-based calculation to intelligent computing driving

upgrades across the full value chain in terms of workforce efficiency vehicle efficiency and cost optimization. This enables

precise resource scheduling rapid emergency response accurate cost analysis and forecasting and real-time anomaly alerts

forming a closed-loop management system across all business processes. By building core capabilities of "full-series intelligent

equipment + full-scenario smart sanitation" and implementing an "urban steward + sanitation integration" dual strategy the

Company has redefined industry standards for digital smart sanitation operations. The services cover many segments ranging from

road cleaning and maintenance snow and ice removal waste collection and transportation waste sorting municipal infrastructure

maintenance urban landscaping maintenance water area cleaning to marine sanitation. Through diversified business models such

as government procurement franchising and equity cooperation the Company offers customers integrated one-stop services

including planning design investment construction and operation of environmental sanitation projects.Market performance: The Company began its foray into the field of urban intelligent cleaning services in 2021 and achieved

rapid growth. As at the end of the reporting period Infore Enviro was running 257 urban service projects with a total contract

amount of RMB 59.382 billion for projects under operation an annual contract amount of RMB 7.158 billion and a total amount

of RMB 35.440 billion for executory contracts. In 2025 the Company ranked among the top three in the industry in terms of

growth in both the total contract value and the annual contract value. The substantial project reserves have created a strong

foundation for the Company's sustainable development positioning it as an industry leader in terms of operational stability.(III) Smart Sanitation Cloud computing

The Smart Sanitation Cloud computing segment is the core support for the Company's digital transformation. It comprises

three business directions: Smart Sanitation Cloud Platform data annotation and computing power leasing aiming to build digital

infrastructure for the sanitation industry and empower both intelligent equipment and smart services.

1. Smart Sanitation Cloud Platform

The dual-Smart Sanitation Cloud Platform independently developed by the Company is centered on the ICS2.0 smart

operations system and the full-scenario Qiyuan Cloud Brain platform. Leveraging multi-modal large model technology it builds a

dual intelligent engine of "intelligent networking + smart operations" forming a technological foundation that integrates vertical

industry data intelligent algorithms and AI-driven large models. The Smart Sanitation Cloud Platform is a pioneering platform in

14Infore Environment Technology Group Co. Ltd. 2025 Annual Report

China's sanitation industry. By deploying the independently developed T-BOX remote control terminal a "terminal pipeline and

cloud" collaborative system covering autonomous cleaning equipment and traditional operation vehicles is established. It enables

real-time interconnection of personnel vehicles objects and tasks in urban services driving the upgrade of standardized digital

and intelligent sanitation operation management.ICS2.0 Smart Operations System

As an industry-first benchmark platform independently developed by the Company ICS adopts a full-stack self-developed

microservices architecture and a unified big data platform. Through applications such as intelligent scheduling identity

authentication closed-loop management of abnormal work orders and AI-powered workforce efficiency agents it

comprehensively promotes the transformation of digital operation management. Relying on real-time data acquisition and AI

algorithms the platform enables core business decisions covering cost resources and operations to shift from experience-driven

judgment to data-driven quantitative analysis. It establishes vehicle anomaly monitoring and early warning mechanisms along

with multi-dimensional integrated data analysis models providing precise support for scientific decision-making. With "integrated

architecture standardized processes data-driven decision-making and transparent services" as its core the platform builds full-

chain digital capabilities spanning "technology–business–decision–service". It provides solid support for the Company's "Digital

Urban Services · Technology-Driven Urban Services" strategy and leads the industry into a new stage of full-chain digital

development. The system effectively addresses long-standing challenges in the sanitation industry such as fragmented systems

inconsistent standards rough decision-making and complex supervision. With its differentiated advantages of "independent

technology development + comprehensive collaboration + intelligent driving + transparent visualization" it establishes core

competitiveness in digital transformation and serves as a key digital engine driving the sanitation industry toward lower costs

higher efficiency and higher quality.

15Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Full-scenario Qiyuan Cloud Brain Platform

With the Infore Qiyuan Cloud Brain platform at its core the Company has established a full-scenario intelligent operations

system and a multi-dimensional urban service network. Leveraging comprehensive drone coverage and dynamic patrols by

unmanned vehicles the platform builds a high-density multi-dimensional perception network enabling centimeter-level precision

in detecting urban environmental issues along with intelligent dispatching and efficient resolution. Backed by the low latency and

high bandwidth of 5G front-end sensing data is transmitted in seconds with rapid response supporting comprehensive intelligent

perception. From issue detection intelligent identification and decision generation to task dispatching and performance

assessment the entire process is driven by cloud-based data analytics and continuous optimization. The "Cloud Brain" built upon

the Company's years of industry experience massive operation datasets and deep learning algorithms enables intelligent decision-

making and efficient handling of urban environmental issues. The platform allows intelligent forecasting across multiple scenarios

including road pollution illegal street vending exposed waste and facility damage. Supported by a continuously iterating big data

system predictive models and intelligent decision-making mechanisms it coordinates the collaborative operation of intelligent

equipment for inspection cleaning landscaping and garbage transfer forming a complete closed-loop system that fully supports

refined and efficient urban governance.

2. Data Annotation

Leveraging the in-house intelligent sanitation robot deployment scenarios the Company has established a dedicated data

annotation team focused on scenario-based data processing. This capability further extends to providing high-quality annotated

data to support AI training and intelligent equipment upgrades across various fields. The data annotation business covers multiple

16Infore Environment Technology Group Co. Ltd. 2025 Annual Report

data types including images videos audio and text.Building on years of industry experience standardized management practices and a strong market reputation combined with

the management expertise of its professional annotation team the Company has developed a significant competitive advantage in

the data annotation sector. The high accuracy and professional quality of the data delivered by the Company have consistently

earned strong recognition and trust from its partners. In terms of value contribution this business not only provides a solid and

reliable data foundation for the continuous iteration and optimization of the Company's internal AI models and the technological

upgrading of intelligent equipment but is also actively expanding its service scope by exporting its validated expertise to

enterprises and institutions across the industry and related fields. In terms of growth prospects driven by the explosive demand for

high-quality scenario-based annotated data in the AI industry and smart city sectors the Company's data annotation business

demonstrates strong growth momentum supported by its mature management system deep scenario expertise and continuously

expanding service capabilities. This business is expected to evolve into a key pillar supporting the sustained prosperity of the

Company's Smart Sanitation Cloud computing ecosystem.

3. Computing Power Leasing

The Company's computing power leasing business adopts an operating model integrating "computing resource aggregation +

cloud-based computing services + full lifecycle operations and maintenance" providing customers with efficient stable and

secure high-performance computing cloud services. By leasing high-performance servers supporting data center facilities and

cabinets and independently procuring network hardware the Company establishes large-scale high-performance computing

service centers through network construction deployment debugging and system integration. It provides 24/7 on-site operations

and maintenance support and rapid response mechanisms ensuring efficient scheduling of computing resources and stable service

operation as well as continuous stable and high-quality supply of computing capacity.(IV) Others

Other business of the Company primarily includes ventilator equipment manufacturing environmental monitoring and solid

waste treatment.The Company's ventilation machinery manufacturing covers ventilators mufflers dampers refrigerators magnetic levitation

fans blowers and nuclear-grade dampers for nuclear power subways tunnels rail transportation industrial and civil construction

and other areas. Its fans are mainly sold via a combination of direct sales and retailers.The Company's environmental monitoring business mainly covers the monitoring of smoke air quality haze water quality

water conservation soil and dust and the provision of an integrated one-stop service for environmental protection water

conservation water supply and smart cities. Product sales are the main business operations.

17Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The Company's solid waste disposal business primarily encompasses the incineration of domestic waste to generate energy

the landfilling of domestic waste sewage treatment the recycling of food waste low-carbon recycling and utilization of renewable

resources and the utilization of solid waste in industrial parks. With waste-to-energy projects as the core the industrial parks of

solid waste recycling are equipped with treatment facilities for domestic waste disposal hazardous waste disposal sludge

treatment food waste treatment construction waste treatment ecological restoration of landfills leachate treatment and fly ash

disposal. All of these are organically coordinated to solve solid waste problems in a package. Their operating model is a public-

private partnership (PPP).II. Industry Performance During Reporting Period

1. Industry overview

Smart city cleaning services are an important part of the modern environmental management and operation system covering

multiple fields such as road cleaning and maintenance snow and ice removal waste collection and transportation waste sorting

municipal infrastructure maintenance urban landscaping maintenance water area cleaning and marine sanitation. The Company

adopts diversified business models commonly including "government procurement" "franchising" and "equity cooperation". By

providing a full-cycle solution including planning investment construction and operation they comprehensively maintain a clean

sanitary and beautiful urban environment and creates a healthy and comfortable living and working space for residents effectively

supporting the improvement and sustainable development of the human settlement environment.

2. Industry development

2025 marks a critical year for fully implementing the guiding principles of the 20th National Congress of the Communist

Party of China and advancing Chinese modernization as well as the final year of the 14th Five-Year Plan and a key transition

period for mapping out the 15th Five-Year Plan. Driven by multiple factors—including the deepening of refined urban governance

the upgrading of comprehensive integrated services the continued advancement of sanitation marketization reform and the full-

scale rollout of the urban steward model—the urban services market has maintained steady expansion. Integrated intelligent and

full-scenario services have become the core drivers of industry growth. In the intelligent equipment market the concentrated

release of funds from special treasury bond projects intensified policies for upgrading existing equipment and expanding demand

for intelligent equipment combined with the gradual recovery of local fiscal capacity and structural optimization of customer

budgets have brought an end to the industry's prolonged decline leading to a bottoming-out and moderate recovery. However

disparities in regional fiscal capacity extended project payment cycles and pressure to eliminate low-end capacity persist

resulting in a recovery characterized by structural and uneven features. It is worth noting that new energy-powered environmental

18Infore Environment Technology Group Co. Ltd. 2025 Annual Report

protection equipment has achieved a rapid growth of 70% against the trend becoming a prominent highlight in the market.The growth in both the annual value and the total value of urban service contracts in China over the past ten years:

The total sales of environmental protection equipment and sales of pure electric new energy-powered environmental

protection equipment in the past ten years:

Urban service is an essential item of government spending as it is closely related to people's livelihoods. The sector's long-

term growth has little to do with short-term fluctuations in the macro economy and it is tied to long-term economic trends policy

directives environmental requirements and people's living standards without notable seasonal and regional features.Looking ahead to 2026 the convergence of policy dividends and cyclical recovery is expected to reinforce upward

momentum: The urban services market is likely to maintain steady growth supported by the deepening of sanitation marketization

reform the full-scale expansion of the urban steward model and the continued upgrading of refined governance and intelligent

operations. In addition the environmental protection equipment market is poised to sustain its recovery and accelerate its transition

toward new energy and intelligent solutions. The Central Economic Work Conference explicitly stated that in 2026 the country will

continue to implement more proactive fiscal policies maintaining appropriate levels of fiscal deficit debt and expenditure. The

precise deployment of policy funds such as ultra-long-term special treasury bonds central budgetary investments and local

government special bonds related to sanitation will provide strong financial support for industry growth. From a demand

perspective equipment deployed during the rapid industry growth phase beginning in 2017 has entered a replacement cycle

creating a substantial base for renewal. Meanwhile the continued advancement of new-type urbanization and the accelerated

19Infore Environment Technology Group Co. Ltd. 2025 Annual Report

development of rural sanitation markets are driving the integration of urban and rural sanitation services bringing sustained

incremental growth to the environmental protection equipment market. In addition under the combined forces of strengthened new

energy policies continuous improvement in charging infrastructure networks and increasingly evident lifecycle cost advantages of

new energy-powered equipment the pure electric environmental protection equipment market is expected to maintain high growth

and become a core driver of industry development.

3. Development trends

(1) Smart services: Deepening of the intelligent transformation driving iterative upgrades in integrated urban operation

models

The urban service scenarios continue to expand. Relying on technologies such as the Internet of Things big data and AI it

realizes the upgrade from single sanitation management to comprehensive urban operation promoting a systematic innovation in

the service mode and management efficiency. With the acceleration of the urbanization process the traditional sanitation

management mode has been difficult to meet the transformation demand from the "sanitation integration" to the "urban steward"

model and the intelligent urban service system has emerged as the times require. The system is based on the Internet of Things and

mobile Internet. This system conducts full-process and dynamic monitoring of all sanitation management elements such as

personnel vehicles objects and tasks. By optimizing the management mode it improves the operation quality reduces the

operation cost and builds a digital management evaluation system. Its service architecture adopts a cloud-based deployment model

deeply integrating with the smart city management network and using the cloud service platform as the carrier to deliver service

capabilities to both the management and operation ends. With technological iteration and the extension of application scenarios

the smart urban services will become a key support for promoting the green low-carbon and sustainable development of cities.

(2) Environmental protection equipment: Synergy of new energy and intelligent technologies accelerating high-quality

industry development

Against the backdrop of China's "dual carbon" strategy policies promoting urban renewal and the pilot program for full

electrification of public service vehicles are working in tandem to drive the rapid transition to new energy solutions in

environmental protection equipment. In 2025 the industry's new energy-powered equipment volume reached 15000 units. As

market scale continues to expand economies of scale will gradually unlock lifecycle cost advantages further strengthening the

momentum for new energy substitution. Looking ahead under the combined influence of policy guidance and market forces the

transition toward new energy in the environmental protection equipment industry will become the primary growth trajectory with

penetration rates expected to increase rapidly aligning with national goals for green low-carbon development and energy structure

transformation.

20Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The comprehensive implementation of the national "AI+" strategy along with the intensive rollout of policies supporting new

intelligent application scenarios and large-scale adoption is injecting strong momentum into the intelligent development of

environmental protection equipment. In 2025 the "environmental protection + autonomous driving" segment experienced

explosive growth. According to incomplete statistics from Huanjing Sinan the annual value of related pilot projects surged to

RMB 7.471 billion representing an increase of more than 18 times year-on-year with intelligent application scenarios rapidly

being deployed. In the future driven by rigid demand factors such as an aging population rising labor costs in urban services and

increasing requirements for refined urban governance coupled with continuous breakthroughs in autonomous driving technology

steady cost reductions and the ongoing improvement of integrated vehicle-road-cloud infrastructure the environmental protection

equipment market will accelerate its deep transformation toward intelligence. Intelligent cleaning robots and smart urban service

solutions will become new growth engines for the industry.III. Analysis of Core Competitiveness

1. R&D leadership in intelligent equipment - a leader in technological innovation and a formulator of industry standards

The Company's environmental protection equipment R&D has its roots in a national-level scientific research institute

providing a profound scientific research foundation. It has always been focused on independent innovation and industrial

upgrading. From the first domestic road sweeper and washing sweeper to the first pure electric road sweeper and clusters of

intelligent unmanned cleaning robots the Company has developed over one hundred industry-first products and technologies. The

Company has remained at the forefront of industry innovation. In 2025 its innovative products including the "Tornado" high-

speed fan washing sweeper the "Orca" water-air hybrid cleaning vehicle the "Rhino" garbage collection and transfer vehicle and

the "Mammoth" high-position loading split-type small garbage station achieved outstanding market performance and strong

customer recognition. The Company's strong R&D and innovation capabilities are the driving force behind its 25 consecutive years

of leading domestic equipment sales in the industry and constitute the core advantage enabling it to guide industry development

and set benchmarks.The Company has led or contributed to the development of more than 80% of national and industry standards for sanitation

vehicles. In 2025 the Company further strengthened its leadership in standardization by leading or contributing to 8 new standards

including 1 international standard 2 national standards 1 industry standard and 4 group standards. The ISO international standard

Refuse Collection Vehicles — Vocabulary Classification and Requirements for Commercial Specifications (ISO 13155) led by the

Company was officially released worldwide on August 8 2025. This marks the first ISO international standard led and published

by China's sanitation vehicle manufacturing industry establishing for the first time an authoritative and universally applicable

21Infore Environment Technology Group Co. Ltd. 2025 Annual Report

"technical language system" for the global refuse collection vehicle sector thereby enhancing the Company's international

influence and brand value.The Company has developed 179 core technologies in key fields including 48 major disruptive technologies 63 cutting-edge

leading technologies and 68 key common technologies in the industry. Forty-three of these technologies have passed national or

provincial-level appraisals recognized for their strong innovation high technical complexity and independent intellectual property

rights. Overall the Company's technology has reached an internationally advanced level with some technologies achieving

international leadership. In 2025 the Company was granted a total of 194 patents including 56 invention patents. As at the end of

2025 Infore Enviro held a total of 1459 valid patents including 647 invention patents continuously ranking first in the industry.

In 2025 the "Research and Application of Key Technologies for Green Intelligent Garbage Transfer" project was awarded the

Third Prize of the Science and Technology Progress Award of the China Machinery Industry.

2. Smart Sanitation Cloud Platform at the core - a data-driven "digital brain" for urban services

As a core digital platform independently developed by the Company the Smart Sanitation Cloud Platform integrates 78

software copyrights and patents related to smart cities and has received multiple national and provincial honors. It providesessential support for the full-dimensional online management of “personnel vehicles tasks and processes" across the Company'soperations while also offering professional supervision and evaluation services to government clients. It functions as the "digital

brain" for efficient urban service operations establishing a leading data-driven competitive advantage in the industry. Leveraging

multi-modal large model technology the platform builds a dual intelligent engine of "equipment networking + operation

management". By deploying the independently developed T-BOX remote control terminal a real-time interconnection across

"terminal pipeline and cloud" covering autonomous cleaning equipment and traditional operation vehicles is established

comprehensively empowering business efficiency improvements and cost reductions.The platform's data capabilities are industry-leading. Daily active users have exceeded 77000 with 215000 IoT-connected

devices and an online rate of 92%. The big data platform processes over 280 million data records daily successfully establishing

the largest and most comprehensive sanitation operation database in China. This provides robust data support for AI algorithm

iteration and operation decision optimization further reinforcing the Company's leading position in sanitation digitalization.With strong technological capabilities and proven operational effectiveness the platform is built on IoT big data and AI

pioneering a three-in-one closed-loop management model of "comprehensive monitoring—cloud-based dispatching—intelligent

execution". Through AI vision and IoT sensor networks key operational indicators such as road cleanliness and garbage overflow

are quantified in real time with regulatory granularity refined to the level of "single bin single meter and single device". Through

the cloud-based central system attendance scheduling payroll calculation energy consumption and maintenance are managed

22Infore Environment Technology Group Co. Ltd. 2025 Annual Report

across the full lifecycle enabling simultaneous improvement in operational cost efficiency and service quality through algorithm

optimization. Grid-based management and AI-driven dynamic planning form a complete operational loop of "identification—task

assignment—execution—verification" driving the transformation of sanitation operations from experience-driven to data-driven

models.Deep integration of AI technologies effectively addresses industry pain points. The Company's self-developed visual AI large

model enables intelligent attendance verification through four "digital keys": liveness detection facial recognition uniform

recognition and real-person-on-duty verification. The system processes over 100000 images per day at peak reducing manual

review volume by 80% and eliminating issues such as proxy clock-ins and false reporting of working hours. Proprietary routing

algorithms optimize vehicle operations while garbage volume prediction models forecast operational demand 24 hours in advance.Field testing shows that each vehicle can reduce daily travel distance by 12 kilometers with equipment utilization exceeding 95%.The system can respond to various anomalies within five minutes completing route reconfiguration and nearby vehicle dispatch

significantly improving operational efficiency and emergency response capabilities.

3. Comprehensive smart services - a pioneer in the transformation from "sanitation service provider" to "urban steward"

The Company's smart services segment is built on the coordinated integration of "intelligent equipment + smart services +

Smart Sanitation Cloud Platform". Leveraging diversified scenario deployment leading operational scale refined management

capabilities and innovative business models it has evolved from a single sanitation service provider to a comprehensive urban

service provider becoming a benchmark enterprise for the "urban steward" model. It offers customers integrated one-stop services

including planning design investment construction and operation of environmental sanitation projects.The operational scale leads the industry with an ample reserve of core projects. In 2025 the Company won 71 sanitation

service projects across 22 provinces nationwide with new annual contract amount of RMB 1.418 billion and total new contract

amount of RMB 3.96 billion. Specifically 12 key projects had annual values exceeding RMB 30 million including two

benchmark projects each exceeding RMB 100 million: the Minzhi Subdistrict Urban Steward Project in Longhua District

Shenzhen (annual amount RMB 152 million service period 3 years total contract amount RMB 456 million) and the Nanwan

Subdistrict Urban Steward Project in Longgang District Shenzhen (annual amount RMB 109 million service period 3 years total

contract amount RMB 326 million). The Company also secured the marine waste cleanup service project in Guangzhou

Guangdong (annual amount RMB 91 million) demonstrating strong expansion capabilities in the segmented market. As at

December 31 2025 the Company operated 257 projects with an annual contract amount of RMB 7.158 billion total contract

amount of RMB 59.382 billion and a total amount of RMB 35.440 billion for executory contracts. The substantial project reserves

23Infore Environment Technology Group Co. Ltd. 2025 Annual Report

have created a strong foundation for sustainable development positioning the Company as an industry leader in terms of

operational stability.The Company demonstrates outstanding capabilities in refined management and cost control. Anchored in the philosophy of

"refined management" it breaks down complex urban services into quantifiable and traceable management units through grid-

based operations standardized processes and systematic quality control forming a lean operational system defined by "standards

as benchmarks talent as the foundation and digital intelligence as the core". Through the "Urban Steward Smart Platform" the

Company achieves dynamic control and traceability across the entire lifecycle of "personnel vehicles tasks and objects"

seamlessly integrating with government smart platforms to form a closed-loop governance system involving multiple stakeholders.It has also established a professional training system for urban steward personnel cultivating versatile teams with combined

capabilities in skills management and communication enhancing operational professionalism through multi-skilled roles. In

projects in Shenzhen Foshan and other cities the Company has deployed self-developed cleaning robots "Little Bee" and other

intelligent equipment which integrate advanced technologies such as 5G and machine vision to autonomously complete more than

20 core operational tasks further improving efficiency and service quality. In terms of cost control the Company leverages big

data analytics from its Smart Sanitation Cloud Platform to accurately manage key areas such as material consumption and

equipment maintenance. This continuously unlocks profit potential and steadily improves operational efficiency.The Company's operational scenarios are diverse and comprehensive. In line with industry trends and policy directions the

Company continues to expand its service boundaries from traditional road cleaning to full-scenario services including municipal

maintenance water surface cleaning marine sanitation and rural sanitation. It has established a comprehensive service portfolio

spanning "urban + rural" and "land + water" to meet diverse customer needs across regions and fully cover all aspects of urban

environmental governance.The Company continues to innovate its service model and successfully transforms from a "sanitation service provider" into an

"urban steward". It has built a three-dimensional coordinated system of "intelligent equipment + smart services + Smart Sanitation

Cloud Platform". On the equipment side it offers more than 500 products covering all scenarios and has maintained the top

position in environmental protection equipment sales for 25 consecutive years. On the service side it has expanded from single

road cleaning services to full-chain offerings. Through its digital platform it is transforming urban governance from "passive

response" to "proactive intelligent management". In addition it provides full lifecycle solutions of "management + service +

operations". In the sanitation PPP project in Futian District Shenzhen the Company deployed self-developed intelligent small

environmental protection equipment at scale achieving efficiency gains and cost optimization through the smart platform. In the

recycling resources project in Korla Xinjiang it established a full-chain digital supervision system applying AI across all stages

24Infore Environment Technology Group Co. Ltd. 2025 Annual Report

from input to collection and processing. At the same time the Company achieves an effective balance between standardization and

customization. The "cost reduction and efficiency enhancement" model validated in the Dongguan project can be rapidly replicated

nationwide. In response to extreme weather conditions and dispersed operational scenarios in Xinjiang it has established a "five-

in-one" smart management system and implemented intelligent monitoring and early warning across 1114 garbage collection

points demonstrating strong adaptability of its business model.The Company's full-scenario intelligent capabilities are highly competitive. Adhering to a full-stack independent R&D

approach it has built a complete technology chain covering multi-sensor fusion perception AI-based decision-making and

planning and execution control systems. It holds more than 60 patents related to autonomous driving and associated fields

including 47 invention patents and was recognized in 2021 as a "Winner of the AI Industry Innovation Task" by the Ministry of

Industry and Information Technology. In 2025 the Company officially launched the "swarm" system of intelligent connected

cleaning robots comprising execution terminals energy support "hive box" charging stations and a central command "hive"

platform. This system enables full coverage from closed environments to open road networks and from standalone intelligence to

coordinated multi-unit operations forming a comprehensive and multi-dimensional smart sanitation ecosystem. Within six months

of its launch the "swarm" system recorded cumulative sales of over 100 units and achieved large-scale deployment in more than

25 provinces and over 30 prefecture-level cities nationwide. A project case at the Universiade Center in Longgang Shenzhen

shows that the system can reduce a cleaning task originally requiring 4 workers over 4 hours to just 2.5 hours improving

operational efficiency by more than 50% and fully validating its practical value and commercial viability.

4. Organizational development - dual-drive of corporate culture and elite management team

Corporate culture is the cornerstone of a company's creativity and unity as well as an important part of a company's key

competitive advantages. With the corporate mission of "Cleaner World Better Future" the Company always sticks to the

corporate philosophy of "simple and professional with quick execution" and the core values of "our clients are vital to us; our

employees are our partners in our endeavors; we aim to be achievement-oriented - competence beats mediocrity; and technology

innovation is the basis for our development." We adopt the development strategy with leading technology at the center being

order-driven as the means and motivating talent as the basis and are committed to becoming a respected and trusted leader in

providing intelligent equipment and services with cleaning robots at its core. Over the years the Company has deeply integrated

cultural concepts into its business objectives and daily management. Through benchmarking operations and refined management

it has promoted the coordinated development of various business segments branches and subsidiaries achieving high-quality

growth.

25Infore Environment Technology Group Co. Ltd. 2025 Annual Report

In terms of the development of the management team the Company has gathered a group of practical efficient and

experienced professionals. The Company's management team endorses the corporate culture and shares the same management

philosophy. Each member of the team complements the others' strengths and has clearly defined responsibilities thereby

demonstrating strong cohesion and execution. With its keen insight into industry trends and forward-looking vision the team

accurately grasps market opportunities to provide support for its development. At the same time the Company continues to

strengthen its stock incentive and employee stock ownership programs. It has also established a three-tier management framework

consisting of cornerstone partnerships senior partnerships and general partnerships deeply aligns the interests of core employees

with the development of the enterprise creates a "business community" that shares interests and risks and injects sustained

momentum into its stable and long-term development.IV. Analysis of Principal Business

1. Overview

In 2025 facing the current macroeconomic environment and industry competitive landscape the Company firmly

implemented its development strategy systematically promoted the implementation of the business plan and continuously

enhanced its core competitiveness by strengthening the foundation of internal management. In terms of the talent strategy the

Company strengthened its key teams and optimized the structure of the talent echelon to stimulate organizational efficiency; in the

field of technological innovation it increased investment in technology research and development based on its R&D advantages of

environmental protection equipment and used innovation to drive the transformation and upgrading of the smart urban services.In 2025 the Company generated RMB 13.844 billion in operating revenue up 5.53% year-on-year and RMB 550 million in

net profit attributable to the listed company's shareholders up 7.07% year-on-year demonstrating its stable profitability. As at the

end of the reporting period the Company reported RMB 35.435 billion in total assets and RMB 17.18 billion in net assets

attributable to the listed company's shareholders with the asset structure continuously optimized. During the reporting period the

environmental protection equipment sector maintained its industry-leading position with the Company's core businesses showing

strong growth momentum laying a solid foundation for high-quality development.

1. Ranked No.1 in terms of sales of environmental protection equipment in 2025

In 2025 the sales of the Company's environmental protection equipment achieved steady growth. The operating revenue was

RMB 5.913 billion a year-on-year increase of 13.99% ranking No.1 in the industry in China for the 25th consecutive year.According to the motor vehicle compulsory liability insurance data in 2025 the Company's sales volume of environmental

protection equipment reached 14012 units up 15.1% year-on-year and the market share reached 21.1% up nearly 1.8 percentage

26Infore Environment Technology Group Co. Ltd. 2025 Annual Report

points year-on-year. Both the sales volume and the market share of the environmental protection equipment ranked first in the

market of the same industry.

2. Ranked No.1 in terms of sales of new energy-powered environmental protection equipment in 2025

In 2025 the Company achieved exceptional performance in new energy-powered environmental protection equipment.According to the motor vehicle compulsory liability insurance data the Company sold 5245 pure electric sanitation vehicles a

year-on-year increase of 94.9% with a market share of 35.0% up nearly 4.5 percentage points year-on-year. This marks the fourth

consecutive year the Company has ranked No. 1 in the industry continuing to lead the sector's transition toward new energy.

3. Ranked No. 3 for the increase in annual amount of urban service contracts in 2025

According to incomplete statistics from Huanjing Sinan Infore Enviro continued to make efforts in the field of urban services

in 2025. It signed 71 urban service projects across 22 Chinese provinces and its new contracts have an annual amount of RMB

1.418 billion and a total amount of RMB 3.96 billion ranking No. 3 in the industry and demonstrating strong market expansion

capability. During the reporting period the urban services segment generated operating revenue of RMB 6.336 billion; the

Company was running 257 urban service projects with a total contract amount of RMB 59.382 billion for projects under operation

an annual contract amount of RMB 7.158 billion and a total amount of RMB 35.440 billion for executory contracts. The

substantial project reserves have created a strong foundation for the Company's sustainable development positioning it as an

industry leader in terms of operational stability.

4. Significant progress in the globalization strategy and continued deepening of the strategy of flagship products

Globalization strategy: In 2025 the Company's newly acquired overseas orders amounted to RMB 540 million marking a

445% year-on-year increase and showcasing its strong market expansion capabilities. During the reporting period the Company's

production bases in Thailand and Italy were successively put into operation enabling localized manufacturing and rapid response.Preparations for a Middle East factory are also progressing steadily and will in the future serve surrounding markets and

accelerate the globalization process through both export trade and overseas manufacturing. In 2026 the Company will continue to

leverage its strengths in R&D intelligent manufacturing quality assurance and brand capability. Through resource integration and

local operations it aims to further deepen its global footprint actively expand overseas markets provide superior intelligent

cleaning equipment solutions to global customers create new development opportunities and unlock new growth potential.Intelligent unmanned equipment: The Company continues to focus on application scenarios grounded in full-stack

independent R&D mastering the complete technology chain from perception and decision-making to execution. In 2025 it

launched a cluster of intelligent cleaning robots centered on 1-ton 3-ton and 18-ton models. Through scenario-based adaptation

these products deliver full coverage from "capillaries" to "arteries" of urban cleaning operations. Since their release on April 22

27Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2025 the new products have achieved large-scale deployment in 25 provinces and over 30 cities and have been showcased at

international platforms such as the Canton Fair attracting strong attention and recognition from domestic and international

customers.Aerial work equipment: In 2025 the Company continued to advance its globalization strategy for aerial work equipment by

launching multiple new products across four major categories—straight-arm articulated scissor lift and truck-mounted. The

Company successfully overcame key technical challenges in the industry such as developing permanent magnet synchronous

drive ensuring the stability of lightweight sinking boom trucks and implementing multiple safety protection measures. The

Company secured multiple domestic and overseas orders achieving a strong start with effective commercialization of R&D

achievements demonstrating robust growth momentum.

5. Focusing on principal business to improve quality and efficiency for high-quality development

The Company remains committed to its core environmental services business and adheres to a development strategy that

integrates environmental services with intelligent technologies. With technological empowerment as the core driving force it

continues to focus on its main business enhance quality and efficiency and steadily advance high-quality corporate development.During the reporting period the Company orderly divested non-core business assets and successfully completed the equity

disposal of Guangdong Xingzhou Water Treatment Technology Co. Ltd. It proactively exited businesses and projects with low

synergy to its core operations concentrating high-quality resources on its main business and laying a solid foundation for long-

term stable development of the Company.In terms of operational management the Company implemented refined control across the entire production and operation

process to comprehensively enhance asset utilization efficiency. It strictly enforced strategies to reduce existing inventory and

control incremental growth while prudently selecting business orders. It also improved graded contract risk management and

accountability traceability mechanisms fully strengthening its operational risk defenses. The Company achieved notable results in

receivables management with collections increasing by 19.78% year-on-year during the reporting period. Both collection

efficiency and quality improved and the fundamentals of operating cash flow continued to trend upward. Through routine

reinforcement of full-process receivables management and accelerated working capital turnover the Company effectively

improved capital utilization efficiency further consolidating a solid operational foundation and fully supporting the high-quality

and sustainable development of its core business.

6. High cash dividends for shareholders

The Company has always adhered to the concept of "sharing development achievements with shareholders" continuously

implemented a positive and stable profit distribution policy and effectively repaid investors' trust with high cash dividends.

28Infore Environment Technology Group Co. Ltd. 2025 Annual Report

According to the 2025 profit distribution plan (proposed) approved at the second meeting of the 11th Board of Directors a cash

dividend of RMB 1.30 (tax inclusive) per 10 shares will be distributed to the shareholders based on the total share capital (minus

shares in the Company's repurchase account) on the date of record for the plan. A total cash dividend of around RMB 408 million

(tax inclusive) is expected to be distributed accounting for 74.18% of the net profit attributable to the listed company's

shareholders in 2025. As the proposed plan is awaiting the approval of the General Meeting of Shareholders the actual dividend

amount will be disclosed in the relevant announcements.In the past three years (2023-2025) the Company is expected to pay a total of RMB 1.496 billion in cash dividends (including

the amount related to share repurchase cancellations) accounting for 79.43% 134.89% and 74.18% of the net profit attributable to

the listed company's shareholders respectively. The stable high-proportion dividend mechanism fully reflects the Company's

business philosophy of attaching importance to shareholder returns and fulfilling its dividend commitment.

7. Active fulfillment of social responsibility as part of its corporate responsibility

In 2025 while advancing high-quality development the Company fulfilled its social responsibility as it got involved in

poverty alleviation and disaster relief efforts demonstrating its commitment through tangible actions.Fulfilling emergency responsibilities and supporting disaster relief efforts: Upholding its corporate mission of "Cleaner World

Better Future" and fulfilling its social responsibilities with professional capabilities and humanitarian efforts the Company earned

widespread recognition and praise from all sectors of society. In response to flood disasters caused by extreme weather events such

as typhoons heavy rainfall and snowstorms the Company acted swiftly. It immediately formed an emergency support team to

rush to affected areas including Zhaoqing in Guangdong Qiandongnan in Guizhou Hohhot in Inner Mongolia and Urumqi in

Xinjiang leading rescue and relief operations.Deepening public welfare and fulfilling social responsibility: The Company donated RMB 6.7142 million as part of its active

participation in charitable initiatives including donations to relief and assistance foundations disability support funds and

education funds. These contributions supported programs such as poverty alleviation educational assistance medical aid elderly

care disaster relief and public welfare projects contributing to charitable assistance and poverty relief efforts.

2. Revenue and cost

(1) Breakdown of operating revenue

Unit: RMB

20252024

Amount As a percentage

As a percentage of YoY change

Amount

of operating operating revenue

29Infore Environment Technology Group Co. Ltd. 2025 Annual Report

revenue

Total revenue 13843807632.45 100% 13117894323.95 100% 5.53%

Sector

Smart urban

12248710291.1388.48%11620636215.6688.59%5.40%

service

Smart Sanitation

247516137.541.79%8029353.400.06%2982.64%

Cloud computing

Others 1347581203.78 9.73% 1489228754.89 11.35% -9.51%

Product

Intelligent

5913174533.0342.72%5187389892.0239.55%13.99%

equipment

Smart service 6335535758.10 45.76% 6433246323.64 49.04% -1.52%

Smart Sanitation

247516137.541.79%8029353.400.06%2982.64%

Cloud computing

Others 1347581203.78 9.73% 1489228754.89 11.35% -9.51%

Region

Domestic 13694342038.59 98.92% 13048298182.52 99.47% 4.95%

Overseas 149465593.86 1.08% 69596141.43 0.53% 114.76%

Sales model

Direct sales 11404682348.70 82.38% 11498614774.38 87.66% -0.82%

Distributor sales 2439125283.75 17.62% 1619279549.57 12.34% 50.63%

(2) Sectors products regions or sales models accounting for over 10% of operating revenue or profit

□Applicable □ Not Applicable

Unit: RMB

YoY change

Gross YoY change in

YoY change in in gross

Operating revenue Operating cost profit Operating

operating cost profit

margin revenue

margin

Sector

Smart urban

12248710291.139618986827.1721.47%5.40%5.44%-0.02%

service

Smart

Sanitation

247516137.54203220860.1217.90%2982.64%7969.85%-50.74%

Cloud

computing

Others 1347581203.78 992923831.21 26.32% -9.51% -12.61% 2.61%

Product

Intelligent

5913174533.034303477144.0627.22%13.99%11.91%1.35%

equipment

Smart

6335535758.105315509683.1116.10%-1.52%0.72%-1.86%

service

Smart

Sanitation

247516137.54203220860.1217.90%2982.64%7969.85%-50.74%

Cloud

computing

30Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Others 1347581203.78 992923831.21 26.32% -9.51% -12.61% 2.61%

Region

Domestic 13694342038.59 10711622833.24 21.78% 4.95% 4.92% 0.02%

Overseas 149465593.86 103508685.26 30.75% 114.76% 97.80% 5.94%

Sales model

Direct sales 11404682348.70 8951750998.07 21.51% -0.82% -0.78% -0.02%

Distributor

2439125283.751863380520.4323.60%50.63%50.39%0.12%

sales

The Company's principal business data for the year was adjusted to take into account revised statistical standards that were updated

□ Applicable□ Not applicable

(3) Whether revenue from goods sales is higher than revenue from rendering services

□Yes □No

Sector Items Unit 2025 2024 YoY change

Sales Unit 19256 14368 34.02%

Intelligent

Production Unit 18420 15020 22.64%

equipment

Inventory Unit 1763 2599 -32.17%

Explanation of data with YoY differences that exceed 30%

□Applicable □ Not Applicable

Sales of intelligent equipment increased by 34.02% year-on-year while inventory decreased by 32.17% compared with the

end of the previous year mainly due to business growth and increased sales during the period.

(4) Fulfillment of material sales/procurement contracts signed during the reporting period

□Applicable□ Not applicable

(5) Breakdown of operating costs

Sector

Unit: RMB

20252024

As a YoY

Sector Items As a percentage

Amount percentage of Amount change

of operating

operating cost

cost

Smart urban

Raw materials 4008221339.22 41.66% 3759750746.26 41.21% 6.61%

service

Smart urban

Labor expense 2004271375.43 20.84% 2101248801.34 23.03% -4.62%

service

Smart urban

Depreciation 590486877.58 6.14% 537201546.63 5.89% 9.92%

service

Smart urban

Utilities 499798755.00 5.20% 390164837.68 4.28% 28.10%

service

31Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Other

Smart urban

manufacturing 2516208479.95 26.16% 2334511252.85 25.59% 7.78%

service

overhead

Smart

Sanitation

Labor expense 8288886.86 4.08% 0.00 0.00% 100.00%

Cloud

computing

Smart

Sanitation

Depreciation 156145968.29 76.84% 0.00 0.00% 100.00%

Cloud

computing

Smart

Sanitation

Utilities 19698194.36 9.69% 0.00 0.00% 100.00%

Cloud

computing

Smart

Other

Sanitation

manufacturing 19087810.61 9.39% 2518274.39 100.00% 657.97%

Cloud

overhead

computing

Others Raw materials 530927107.40 53.48% 604478948.73 53.20% -12.17%

Others Labor expense 86477859.43 8.71% 92458148.77 8.14% -6.47%

Others Depreciation 154512329.32 15.56% 136092771.46 11.98% 13.53%

Others Utilities 14230614.97 1.43% 11499634.55 1.01% 23.75%

Other

Others manufacturing 206775920.10 20.82% 291630832.69 25.67% -29.10%

overhead

Note

During the period labor costs depreciation utilities and other manufacturing expenses of the Smart Sanitation Cloud

computing segment increased compared with the previous year mainly due to the expansion of new business.

(6) Changes in the scope of consolidated financial statements for the reporting period

□Yes □No

For details of the changes in the scope of the consolidated financial statements during the reporting period please refer to Note 9

"Changes in the Scope of Consolidation" in Part X Financial Report.

(7) Material changes in the business products or services during the reporting period

□Applicable□ Not applicable

(8) Major customers and suppliers

Major customers of the Company

Total sales to top five customers (RMB) 883558833.82

Total sales to top five customers as a percentage of annual total

6.37%

sales

Total sales to related parties among top five customers as a 0.00%

32Infore Environment Technology Group Co. Ltd. 2025 Annual Report

percentage of annual total sales

Top five customers

No. Customer Sales revenue (RMB) As a percentage of annual

1 Customer A 225909723.79 1.63%

2 Customer B 210916997.52 1.52%

3 Customer C 155361653.34 1.12%

4 Customer D 150867195.06 1.09%

5 Customer E 140503264.11 1.01%

Total -- 883558833.82 6.37%

Other information about major customers

□ Applicable□ Not applicable

Major suppliers of the Company

Total purchases from top five suppliers (RMB) 1978081827.95

Total purchases from top five suppliers as a percentage of

25.25%

annual total purchases

Total purchases from related parties among top five suppliers as

0.00%

a percentage of annual total purchases

Top five suppliers

Purchase during the reporting As a percentage of total

No. Supplier

period (RMB) purchases

1 Supplier A 991523483.35 12.66%

2 Supplier B 445601186.64 5.69%

3 Supplier C 206250254.71 2.63%

4 Supplier D 178790442.48 2.28%

5 Supplier E 155916460.77 1.99%

Total -- 1978081827.95 25.25%

Other information about major suppliers

□ Applicable□ Not applicable

During the reporting period revenue from the Company's trading business accounted for more than 10% of total operating revenue

□ Applicable□ Not applicable

3. Expenses

Unit: RMB

Reason for material

2025 2024 YoY change

change

Selling expenses 716524496.10 713507964.56 0.42% ——

Administrative

803880040.20773511609.913.93%——

expenses

This was mainly due to

Financial expenses 171959494.61 81006352.00 112.28% an increase in bank

loans leading to higher

33Infore Environment Technology Group Co. Ltd. 2025 Annual Report

financial interest

expenses as well as

increased financial

expenses associated

with right-of-use assets

from leased assets

during the period

R&D expenses 294498707.16 317117284.00 -7.13% ——

4. R&D investments

□Applicable □ Not Applicable

Expected impact

on future

Name of major R&D Objectives Progress Proposed goals

development of

the Company

To develop a next- This helps the

Next-generation pure To solve the problem of the generation 4-ton pure Company

electric self-handling existing product and R&D completed electric self-handling improve its key

garbage truck improve maintainability garbage truck to increase competitive

market orders advantages

This helps the

To solve the problem of the To increase the loading Company

Z-type dual-pendulum

existing product and R&D completed capacity of the original improve its key

hook-lift truck

improve performance product competitive

advantages

This helps the

To improve the performance

To develop a pure electric Company

Pure electric dry-wet of the original product and

R&D completed dual-purpose sweeper to improve its key

dual-purpose sweeper meet segmented market

increase market orders competitive

demands

advantages

This helps the

Third-generation pure Company

To iterate product and To improve the performance

electric guardrail R&D completed improve its key

expand application scenarios of the original product

cleaning vehicle competitive

advantages

This helps the

To develop an autonomous

Autonomous 3-ton To expand the product Prototype Company

3-ton washing and sweeping

washing and sweeping spectrum to meet various development improve its key

robot to increase market

robot market product demands completed competitive

orders

advantages

This helps the

To expand the product Prototype Company

Barrel-mounted pure To improve the performance

spectrum to meet various development improve its key

electric rotary sweeper of the existing product

market product demands completed competitive

advantages

This helps the

To expand the product Prototype To develop a 2-ton pure Company

2-ton pure electric

spectrum to meet various development electric integrated sweeper improve its key

integrated sweeper

market product demands completed to increase market orders competitive

advantages

To expand the product To develop a 0.5T pure This helps the

0.5T pure electric Launched on the

spectrum to meet various electric rotary sweeper to Company

rotary sweeper market

market product demands increase market orders improve its key

34Infore Environment Technology Group Co. Ltd. 2025 Annual Report

competitive

advantages

This helps the

H24-090 three-wheeled To develop a three-wheeled

To expand the product Company

high-pressure pure Launched on the high-pressure pure electric

spectrum to meet various improve its key

electric cleaning market cleaning machine to

market product demands competitive

machine increase market orders

advantages

This helps the

HJ24-115 third 1-ton- To expand the product To develop a third 1-ton- Company

Launched on the

class autonomous road spectrum to meet various class autonomous road robot improve its key

market

robot market product demands to increase market orders competitive

advantages

This helps the

Intelligent fan selection To achieve optimization of Company

To develop an intelligent fan

technology R&D completed the intelligent fan selection improve its key

selection system

development project system competitive

advantages

Information about R&D personnel

2025 2024 Change

Number of R&D personnel 1037 1001 3.60%

R&D personnel as a

4.37%5.20%-0.83%

percentage of total staff

Education background of R&D personnel

Bachelor's degree 660 642 2.80%

Master's degree 316 307 2.93%

Doctoral degree 10 10 0.00%

Others 51 42 21.43%

Age composition of R&D personnel

< 30 years 371 351 5.70%

30~40 years 491 479 2.51%

> 40 years 175 171 2.34%

Information about R&D investments

2025 2024 Change

R&D investments (RMB) 294498707.16 317117284.00 -7.13%

R&D investments as a

percentage of operating 2.13% 2.42% -0.29%

revenue

Capitalized R&D investments

0.000.000.00%

(RMB)

Capitalized R&D investments

as a percentage of total R&D 0.00% 0.00% 0.00%

investments

Reasons and impacts of material change in R&D personnel composition

□ Applicable□ Not applicable

Reasons for significant YoY change in total R&D investments as a percentage of operating revenue

35Infore Environment Technology Group Co. Ltd. 2025 Annual Report

□ Applicable□ Not applicable

Reasons and rationale for significant change in capitalization rate of R&D investment

□ Applicable□ Not applicable

5. Cash flow

Unit: RMB

Items 2025 2024 YoY change

Subtotal of cash inflows from

18055795217.7113872479947.7530.16%

operating activities

Subtotal of cash outflows from

17092919463.7412710430466.2734.48%

operating activities

Net cash flows from operating

962875753.971162049481.48-17.14%

activities

Subtotal of cash inflows from

13494040405.459316433927.5944.84%

investing activities

Subtotal of cash outflows from

15905934601.739116372798.0674.48%

investing activities

Net cash flows from investing

-2411894196.28200061129.53-1305.58%

activities

Subtotal of cash inflows from

6946363803.431397723020.38396.98%

financing activities

Subtotal of cash outflows from

3769772680.511986232528.8989.80%

financing activities

Net cash flows from financing

3176591122.92-588509508.51639.77%

activities

Net increase in cash and cash

1727036961.43774071976.67123.11%

equivalents

Explanation of main impact factor of material change of the data YoY

□Applicable □ Not Applicable

(1) The cash inflows from operating activities increased by 30.16% YoY mainly due to increased collections during the

period; the cash outflows from operating activities increased by 34.48% YoY mainly due to business growth and increased cost

payments;

(2) The cash inflows from investing activities increased by 44.84% YoY and the cash outflows from investing activities

increased by 74.48% mainly due to increased purchase and redemption of wealth management products compared with the

previous year; the net cash flows from investing activities decreased by 1305.58% YoY mainly due to the recovery of the

principal and interest of the loans formed by the disposal of subsidiaries and the recovery of performance compensation payments

in the previous year as well as increased cash payments for wealth management purchases in the current period;

(3) The cash inflows from financing activities increased by 396.98% YoY mainly due to increased bank loans during the

period; the cash outflows from financing activities increased by 89.80% compared with the previous year mainly due to increased

repayments of bank loans higher profit distribution payments and increased lease liability payments during the period.Explanation of reasons for the material difference between net cash flows from operating activities during the reporting period and

net profit for the year

□ Applicable□ Not applicable

36Infore Environment Technology Group Co. Ltd. 2025 Annual Report

V. Analysis of Non-Core Business

□Applicable □ Not Applicable

Unit: RMB

As a percentage of total Recurrent or non-

Amount Reasons for generation

profit recurrent

RMB 3724247.73 is

the returns on long-

term equity

investments calculated

Investment income -21336469.10 -2.91% —— using the equity

method which is

recurrent; the other

portion is non-

recurrent.Gain or loss on

333964.13 0.05% —— No

changes in fair value

Mainly due to

impairment of

Impairment of assets -79547907.72 -10.83% intangible assets and No

goodwill during the

period

Non-operating revenue 23381569.04 3.18% —— No

Mainly due to losses

from destruction and

Non-operating scrapping of non-

63503024.38 8.65% No

expenses current assets and

penalty expenses

during the period

VI. Assets and Liabilities

1. Material changes of asset items

Unit: RMB

End of 2025 Beginning of 2025

Change in Reason for

Proportion of Proportion of

Amount Amount proportion material change

total assets total assets

Cash and cash 6715750632. 5117995117.2

18.95%17.27%1.68%——

equivalents 10 2

Accounts 6024825704. 6224430217.

17.00%21.00%-4.00%——

receivable 00 77

Contract assets 68897244.68 0.19% 94117942.03 0.32% -0.13% ——

1081246249.1041115491.

Inventories 3.05% 3.51% -0.46% ——

1200

Investment

967397.810.00%1053133.200.00%0.00%——

properties

Long-term 738196845.70 2.08% 682287056.09 2.30% -0.22% ——

equity

37Infore Environment Technology Group Co. Ltd. 2025 Annual Report

investment

2610747901.2259900141.

Fixed assets 7.37% 7.63% -0.26% ——

0760

Construction in

348377592.400.98%460662679.721.55%-0.57%——

progress

Right-of-use 2093717582.

5.91%16456043.600.06%5.85%——

assets 79

Short-term 1215279736.

3.43%113697615.880.38%3.05%——

borrowings 31

Contract

397236002.741.12%239860672.030.81%0.31%——

liabilities

Long-term 4963964278. 1987236842.

14.01%6.71%7.30%——

borrowings 15 43

1615589345.

Lease liabilities 4.56% 7830870.16 0.03% 4.53% ——

60

Held-for-

1520255634.

trading 4.29% 0.00 0.00% 4.29% ——

13

financial assets

Intangible 4314166594. 5660386100.

12.17%19.10%-6.93%——

assets 39 81

Offshore assets account for high proportion

□ Applicable□ Not applicable

2. Assets and liabilities measured at fair value

□Applicable □ Not Applicable

Unit: RMB

Gain or los Cumulative

Accrual of Purchase a

s on change changes in Sales amou

Opening ba impairment mount duri Other chan Closing bal

Items s in fair val fair value i nt during th

lance during the ng the peri ges ance

ue during t ncluded in e period

period od

he period equity

Financial assets

1. Held-for

-trading fin

ancial asset

147086071318868515202556

s (excludin 333964.13

522.03852.0334.13

g derivative

financial a

ssets)

4. Investme

nts in other 1282971.0 -1870000 1282971.0

equity instr 1 0.00 1

uments

Subtotal of

1282971.0-1870000147086071318868515215386

financial as 333964.13

10.00522.03852.0305.14

sets

1282971.0-1870000147086071318868515215386

Total 333964.13

10.00522.03852.0305.14

38Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Financial li

0.000.000.000.000.000.000.000.00

abilities

Whether any material changes occurred to the measurement attributes of the Company's material assets during the reporting period

□Yes□No

3. Restricted asset rights as at the end of the reporting period

Carrying amounts

Items Closing balance at the end of the Type of restriction Reason for restriction

period

Guarantee freezeDeposits escrow accounts

Cash and cash equivalents 298496439.46 298496439.46 frozen due to litigation

etc.preservation

Endorsement orEndorsed or discounted but

Notes receivable – bank acceptance 105500.00 105500.00

discount undue

Accounts receivable 385635265.02 358599321.50Pledged Pledged

Fixed assets 297975613.54 294416008.64Mortgaged Mortgaged

Intangible assets 77203036.18 72454489.64Mortgaged Mortgaged

Construction in progress 203438715.46 203438715.46Mortgaged Mortgaged

100% equity interest in Biyang Fenghe 110511170.80 110511170.80Pledged Pledged [Note]

New Energy Power Co. Ltd.

100% equity interest in Poyang Green

76909553.37 76909553.37Pledged Pledged [Note]

Oriental Renewable Energy Co. Ltd.

20.87% equity interest in Hunan Redsolar

100102666.05 100102666.05Pledged Pledged [Note]

New Energy Technology Co. Ltd.Total 1550377959.88 1515033864.92

[Note] The pledged amount refers to the Company's proportionate share in net assets of each entity.VII. Investments

1. Overview

□Applicable □ Not Applicable

Investment amount for the reporting Investment amount for the prior period

Change

period (RMB) (RMB)

239464234.560.00100.00%

2. Material equity investments made during the reporting period

□Applicable□ Not applicable

39Infore Environment Technology Group Co. Ltd. 2025 Annual Report

3. Material non-equity investments ongoing during the reporting period

□Applicable□ Not applicable

4. Financial investments

(1) Securities investments

□Applicable□ Not applicable

No such cases during the reporting period.

(2) Derivatives investments

□Applicable□ Not applicable

No such cases during the reporting period.VIII. Sales of Material Assets and Equity Investments Material Assets

1. Sale of material assets

□Applicable□ Not applicable

No such cases during the reporting period.

2. Sales of material equity investments

□Applicable □ Not Applicable

Net

profit

contri Whet

buted her

by the imple

equity mentePropo

intere d asrtion

st to Whet plannof net

Impac Pricin her ed

Trans the profit A Relati

Equit listed t of g the andaction contri relate onshi

y Date the princi equity on Index

Count price comp buted d- p with Disclo

intere of any dispos ple of involv sched toerpart (in by the party the sure

st dispos

y RMB from

al on the ed has ule; if disclo

equity transa count date

dispos al the the equity been not sure1000 dispos ction erpart

ed begin Comp dispos fully reason0) al to or not y

ning any al transf s andtotal

of the erred measunet

period resprofit

to the taken

date by the

of Comp

dispos any

al (in

RMB

40Infore Environment Technology Group Co. Ltd. 2025 Annual Report

1000

0)

Based

on the

valuat

ion

results

and in

consid

eratio

n of

the

operat

Guan

ing

gdong

condit

Xingz

It has ions

hou http://

CEVI Dece no of the Dece

Water Not www.A mber 4997 1058. signifi target mber

Treat 1.93% No applic Yes Yes cninfo

Envir 30 1.22 72 cant comp 31

ment able .com.o Inc. 2025 impac any 2025

Techn cn

t. the

ology

price

Co.was

Ltd.deter

mined

throug

h

negoti

ation

betwe

en

both

partie

s

IX. Analysis of Major Subsidiaries and Joint Stock Companies

□Applicable □ Not Applicable

Major subsidiaries and joint stock companies with an over 10% influence on the Company's net profit

Unit: RMB

Company Type of Principal Registered Operating Operating

Total assets Net assets Net profit

name company activities capital revenue profit

Zoomlion

Environme Smart RMB

2245031884052017123110869277640975722917

ntal Subsidiary urban 23515298

548.5093.03525.226.405.59

Industry service 00

Co. Ltd.Acquisition and disposal of subsidiaries during the reporting period

□Applicable □ Not Applicable

Acquisition and

Company name disposal of Effects on the overall operations and performance

subsidiaries during

41Infore Environment Technology Group Co. Ltd. 2025 Annual Report

the reporting period

Business

combination not

Ladurner Equipment S.R.L. Positive effects on the Company's business

under common

control

Infore Environment Intelligent Environmental

Incorporation Positive effects on the Company's business

Sanitation Equipment (Italy) Co. Ltd.Zhongshan Yingzhen Environmental Service

Incorporation Positive effects on the Company's business

Co. Ltd.Zhanjiang Yingxiang Environmental

Incorporation Positive effects on the Company's business

Technology Co. Ltd.Foshan Shunde Yinghui Recycling Resources

Incorporation Positive effects on the Company's business

Co. Ltd.Wuhu Tongying Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Guangdong Yingtuo Shuzhi Property Co.Incorporation Positive effects on the Company's business

Ltd.Huazhou Yingchuang Recycling Resources

Incorporation Positive effects on the Company's business

Co. Ltd.Guangzhou Yinghai Environmental

Incorporation Positive effects on the Company's business

Management Co. Ltd.Maoming Dianbai District Yinghe Recycling

Incorporation Positive effects on the Company's business

Resources Co. Ltd.Pengshui Yingyuan Environmental Sanitation

Incorporation Positive effects on the Company's business

Service Co. Ltd.Jieyang Jiedong District Yingdong Recycling

Incorporation Positive effects on the Company's business

Resources Co. Ltd.Shanggao County Jinying Environmental

Incorporation Positive effects on the Company's business

Service Co. Ltd.Shaodong Lianying Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Fuzhou Jin'an District Yingze Environmental

Incorporation Positive effects on the Company's business

Service Co. Ltd.Lu'an Yingtai Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Shenzhen Yingling Environmental

Incorporation Positive effects on the Company's business

Technology Co. Ltd.Taicang Yingfeng Environmental Technology

Incorporation Positive effects on the Company's business

Co. Ltd.Zhaoqing Yinglian Renewable Resources Co.Incorporation Positive effects on the Company's business

Ltd.Bijie Yinglian Environmental Equipment Co.Incorporation Positive effects on the Company's business

Ltd.Guangzhou Panyu District Yingyu Renewable

Incorporation Positive effects on the Company's business

Resources Co. Ltd.Maoming Yinglian Yuexi Technology Co.Incorporation Positive effects on the Company's business

Ltd.Changsha Yingsheng Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Zhongshan Yinglan Environmental Service

Incorporation Positive effects on the Company's business

Co. Ltd.Taizhou Yingsheng Environmental Sanitation

Incorporation Positive effects on the Company's business

Service Co. Ltd.Pingxiang Yinglian Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.

42Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Shenzhen Luohu Yinglian Environment Co.Incorporation Positive effects on the Company's business

Ltd.Horinger County Tongying Environmental

Incorporation Positive effects on the Company's business

Service Co. Ltd.Foshan Fenglian Digital Technology Co. Ltd. Incorporation Positive effects on the Company's business

Hancheng Yinglian Urban Environmental

Incorporation Positive effects on the Company's business

Service Co. Ltd.Weinan Zhonghui Yinglian Environmental

Incorporation Positive effects on the Company's business

Management Service Co. Ltd.Maoming Dianbai District Yingdong

Incorporation Positive effects on the Company's business

Environmental Management Co. Ltd.Jiangsu Damei Yinghe Environmental

Incorporation Positive effects on the Company's business

Technology Co. Ltd.Guangdong Infore Smart Energy Co. Ltd. Incorporation Positive effects on the Company's business

Guangdong Infore Environmental Intelligent

Incorporation Positive effects on the Company's business

Computing Technology Co. Ltd.Jianli Lianying Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Hainan Infore Intelligent Computing

Incorporation Positive effects on the Company's business

Technology Co. Ltd.Hainan Damei Yinghe Environmental

Incorporation Positive effects on the Company's business

Technology Co. Ltd.Harbin Yingsheng Environmental Equipment

Incorporation Positive effects on the Company's business

Co. Ltd.Ezhou Huarong District Tongying

Environmental Sanitation Management Co. Incorporation Positive effects on the Company's business

Ltd.Haicheng Yinghe Urban Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Taizhou Zhongying Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Anshan Yingsheng Urban Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Shanggao County Yinghe Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Huizhou Fenglian Urban Environmental

Incorporation Positive effects on the Company's business

Service Co. Ltd.Fuzhou Changle District Yingrun

Incorporation Positive effects on the Company's business

Environmental Management Co. Ltd.Infore AI Technology Co. Ltd. Incorporation Positive effects on the Company's business

Infore Enviro AI Technology Co. Ltd. Incorporation Positive effects on the Company's business

Guangdong Infore Industrial Investment Co.Incorporation Positive effects on the Company's business

Ltd.Linqing Yingsheng Environmental Sanitation

Incorporation Positive effects on the Company's business

Service Co. Ltd.Hua County Yinglian Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Qianjiang Tongying Environmental

Incorporation Positive effects on the Company's business

Sanitation Management Co. Ltd.Tailai County Qifeng Environmental

Incorporation Positive effects on the Company's business

Sanitation Service Co. Ltd.Harbin Hefeng Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.

43Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Huoqiu Yingchuang Sanitation Management

Incorporation Positive effects on the Company's business

Co. Ltd.Shaoxing Yingsheng Urban Services Co. Ltd. Incorporation Positive effects on the Company's business

Nantong Yinglian Environmental Sanitation

Incorporation Positive effects on the Company's business

Management Co. Ltd.Maoming Dianbai District Yinglang

Incorporation Positive effects on the Company's business

Environmental Management Co. Ltd.Foshan Shunde District Yingbei Urban

Incorporation Positive effects on the Company's business

Environmental Services Co. Ltd.Ningxia Yinglian Digital Technology Co.Incorporation Positive effects on the Company's business

Ltd.Guangde Yinghe Environmental Sanitation Asset optimization; No material impact on the Company's

De-registration

Development Co. Ltd. production operation and performance

Taizhou Zhongying Urban Environmental Asset optimization; No material impact on the Company's

De-registration

Service Co. Ltd. production operation and performance

Yichang Lianying Urban Environmental Asset optimization; No material impact on the Company's

De-registration

Service Co. Ltd. production operation and performance

Pu'an Yinghe Environmental Sanitation Asset optimization; No material impact on the Company's

De-registration

Management Co. Ltd. production operation and performance

Shenzhen Zhongfu Environmental Asset optimization; No material impact on the Company's

De-registration

Technology Co. Ltd. production operation and performance

Guangzhou Yingsheng Environmental Asset optimization; No material impact on the Company's

De-registration

Sanitation Service Co. Ltd. production operation and performance

Daye Tongying Environmental Service Co. Asset optimization; No material impact on the Company's

De-registration

Ltd. production operation and performance

Foshan Shunde Yinghui Recycling Resources Asset optimization; No material impact on the Company's

De-registration

Co. Ltd. production operation and performance

Jieyang Jiedong District Yingdong Recycling Asset optimization; No material impact on the Company's

De-registration

Resources Co. Ltd. production operation and performance

Guangdong Yingtuo Shuzhi Property Co. Asset optimization; No material impact on the Company's

De-registration

Ltd. production operation and performance

Zhongshan Yinglan Environmental Service Asset optimization; No material impact on the Company's

De-registration

Co. Ltd. production operation and performance

Nanchang Yingsheng Environmental Asset optimization; No material impact on the Company's

De-registration

Protection Service Co. Ltd. production operation and performance

Zhongshan Lianying Environmental Asset optimization; No material impact on the Company's

De-registration

Sanitation Management Co. Ltd. production operation and performance

Xinning Zhongying Environmental Sanitation Asset optimization; No material impact on the Company's

De-registration

Management Co. Ltd. production operation and performance

Huazhou Yingchuang Recycling Resources Asset optimization; No material impact on the Company's

De-registration

Co. Ltd. production operation and performance

Jilin Zhongfeng Oasis Environmental Asset optimization; No material impact on the Company's

Transfer

Development Co. Ltd. production operation and performance

Zhaoyuan County Jincheng Environmental Asset optimization; No material impact on the Company's

Transfer

Sanitation Management Service Co. Ltd. production operation and performance

Xiangyin County Yingsheng Environmental Asset optimization; No material impact on the Company's

Transfer

Protection Co. Ltd. production operation and performance

Shaoxing Lianbao Environmental Sanitation Asset optimization; No material impact on the Company's

Transfer

Management Co. Ltd. production operation and performance

Yongzhou Lingling District Tongying Asset optimization; No material impact on the Company's

Transfer

Environmental Sanitation Service Co. Ltd. production operation and performance

Changshu Zhongying Environmental Asset optimization; No material impact on the Company's

Transfer

Sanitation Service Co. Ltd. production operation and performance

Liaocheng Chiping District Yingsheng Asset optimization; No material impact on the Company's

Transfer

Environmental Sanitation Service Co. Ltd. production operation and performance

44Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Tangshan Yinglian Environmental Asset optimization; No material impact on the Company's

Transfer

Management Co. Ltd. production operation and performance

Ninghai County Tongying Environmental Asset optimization; No material impact on the Company's

Transfer

Sanitation Management Co. Ltd. production operation and performance

Donglan Yinglian Urban Environmental Asset optimization; No material impact on the Company's

Transfer

Service Co. Ltd. production operation and performance

Suzhou Wujiang Yinghe Environmental Asset optimization; No material impact on the Company's

Transfer

Sanitation Management Co. Ltd. production operation and performance

Guangdong Xingzhou Water Treatment Asset optimization; No material impact on the Company's

Transfer

Technology Co. Ltd. production operation and performance

X. Structural Entities Controlled by the Company

□Applicable□ Not applicable

XI. Future Prospects of the Company

(I) Market opportunities

2. National policies are favorable for the development of the industry

At present the sanitation industry is in a window period of intensive policy support. From the central to local levels a series

of fiscal and industry policies have been introduced forming a favorable policy environment characterized by coordinated efforts

in financial support demand guidance and technological innovation. These policies comprehensively promote the accelerated

transformation and upgrading of the sanitation industry toward new energy intelligence and automation—from equipment

renewal subsidies and optimization of government procurement rules to the allocation of special funds and the opening of

application scenarios—injecting strong momentum into the development of the industry.In December 2025 the Ministry of Finance issued the Notice on the Advance Allocation of the 2026 Air Pollution Prevention

and Rural Environmental Improvement Fund Budget in which funds for air pollution prevention mainly benefit new energy

sanitation equipment particularly in key provinces such as Hebei Shandong and Henan. Funds for rural environmental

improvement focus on supporting demand for rural sewage suction trucks waste classification collection and transfer vehicles

and related treatment equipment.In December 2025 the Central Economic Work Conference was held. The conference clarified that the macroeconomic

policy orientation for 2026 is to "pursue progress while ensuring stability improve both the quality and performance of growth". In

terms of fiscal policy the conference emphasized optimizing the implementation of the "two new" policies in 2026 by continuing

to implement more proactive fiscal policies maintaining appropriate levels of fiscal deficit debt and expenditure and taking

multiple measures to defuse operational debt risks in local government financing platforms.

45Infore Environment Technology Group Co. Ltd. 2025 Annual Report

In December 2025 the National Development and Reform Commission and other departments issued the document

Accelerating the Modernization of Agriculture and Rural Areas and Taking Solid Steps to Advance Rural Revitalization Across the

Board emphasizing the acceleration of building a beautiful and harmonious countryside that is desirable to live and work in

coordinated optimization of village and town layouts and integrated planning construction and management of county-level

infrastructure. It also calls for improving the living environment in rural areas and establishing sound systems for the collection

transportation and disposal of domestic waste. Central budgetary investments and other funding channels will be directed toward

agriculture and rural areas focusing on addressing shortcomings in rural infrastructure and public services.In November 2025 the General Office of the State Council issued the Implementation Opinions on Accelerating the

Cultivation and Opening of New Application Scenarios to Promote Large-Scale Application encouraging the application of new

technologies and innovation in scenarios such as intelligent traffic management Internet of Vehicles and intelligent dispatching to

optimize urban transportation structures. Focusing on smart communities municipal transportation urban intelligent hubs urban

operation management and livelihood services the government aims to promote new urban infrastructure construction and

innovate scenarios for city-wide digital transformation. These policies will promote the large-scale application of unmanned

sanitation scenarios.In October 2025 the National Development and Reform Commission and other departments issued the Action Plan for

Doubling the Service Capacity of EV Charging Infrastructure in Three Years (2025-2027) requiring the construction of 28 million

charging facilities nationwide by the end of 2027 doubling charging service capacity and effectively expanding pilot applications

of vehicle-grid interaction. The policy provides a foundational application environment for new energy vehicles and benefits the

procurement of new energy sanitation equipment.In September 2025 the Ministry of Industry and Information Technology and other departments issued the Work Plan for

Stabilizing Growth in the Automotive Industry (2025-2026) intensifying efforts to promote pilot programs for full electrification of

public sector vehicles and advancing the deployment of over 700000 new energy-powered vehicles in areas such as urban public

transportation taxis and logistics distribution across 25 pilot cities. The plan promotes pilot applications of integrated "vehicle-

road-cloud" intelligent connected vehicles facilitates multi-scenario applications in logistics sanitation and mobility services and

encourages key regions to gradually expand cross-regional collaborative applications. Overall the policy is favorable to the

application of new energy sanitation and unmanned sanitation markets.In August 2025 the Ministry of Housing and Urban-Rural Development and other departments issued the Action Plan for

Implementing the "Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on

Promoting the Construction of New-Type Urban Infrastructure to Build Resilient Cities (2025-2027)" aiming to promote the

46Infore Environment Technology Group Co. Ltd. 2025 Annual Report

development of intelligent perception systems for road infrastructure based on smart multi-functional poles and urban cloud

platforms to support the application of intelligent connected vehicles. The policy accelerates the application of intelligent

connected vehicles in cities and benefits the procurement of unmanned sanitation equipment.In May 2025 the General Office of the CPC Central Committee issued the Opinions on Continuously Promoting Urban

Renewal Actions setting the primary goal that by 2030 significant progress will be made in implementing urban renewal actions

institutional mechanisms will be further improved and initial results will be seen in the transformation of urban development

models. Specifically sanitation-related tasks focus on strengthening the construction and upgrading of urban infrastructure and

promoting the renovation and upgrading of municipal solid waste treatment facilities.In February 2025 the Ministry of Industry and Information Technology and other departments launched the second batch of

pilot programs for full electrification of public sector vehicles supporting ten cities—Tianjin Changzhou Wuxi Yibin Linyi

Huainan Xi'an Xianyang Weinan and the Xiong'an New Area—in advancing innovative applications such as vehicle-grid

interaction integrated PV-storage-charging-swapping systems and intelligent connected technologies. According to the plan the

promotion of new energy vehicles will cover official vehicles taxis and urban buses with more than 250000 new energy vehicles

expected to be added across the ten regions.In January 2025 the National Development and Reform Commission and other departments issued the Implementation Plan

for Building Beautiful Cities aiming to achieve landmark progress in building approximately 50 beautiful cities by 2027. Key

tasks include improving environmental infrastructure in industrial parks continuously enhancing waste classification management

encouraging qualified cities to take the lead in developing modern ecological environment monitoring systems and advancing the

categorized upgrading of construction and municipal infrastructure equipment.

2. The demand for urban services and environmental protection equipment will keep increasing

The source of urban services revenue is the government budget with the nature of rigid expenditure and is less affected by

macroeconomic regulation factors. The business is characterized by continuity and stability. Environmental protection equipment

is a rigid demand within the environmental sanitation industry and with favorable industry policies and proactive fiscal measures

market demand is expected to continue recovering.

(1) Clear direction of urbanization and significant increase in service demand

As urbanization continues the construction of urban roads will directly increase the area for road cleaning urban housing

compound construction and urban greening hence increasing the demand for environmental protection equipment and urban

cleaning services. Furthermore sanitation is one of the prerequisites for each province city and district to construct urban

upgrades such as "national civilized cities" "national hygienic cities" "national model cities of environmental protection" and

47Infore Environment Technology Group Co. Ltd. 2025 Annual Report

"national ecological garden cities". From 2017 to 2024 the area of road cleaning in China's cities and counties increased from

10.896 billion square meters to 14.988 billion square meters an overall increase of nearly 37.56%; the domestic waste removed

and transported in cities and counties rose from 282 million tons to 329 million tons an overall growth of 16.67% according to the

statistics from the National Bureau of Statistics and the Ministry of Housing and Urban-Rural Development. Factors such as rapid

urbanization—leading to expanded cleaning areas increased waste generation and higher requirements for waste treatment

capacity—are steadily driving greater demand for environmental protection equipment and services.

(2) The rural sanitation market is gaining momentum and will become a key growth driver

Article 19 of the Opinions of the CPC Central Committee and the State Council on Comprehensively Advancing the Beautiful

China Initiative proposes the building of a beautiful countryside. It calls for adapting local conditions to promote the experience of

Zhejiang Province's "Ten Million Project" and for a coordinated effort to advance rural ecological revitalization and improve rural

living environments. By 2027 the proportion of counties achieving "beautiful countryside" status is expected to reach 40% and by

2035 such development will be largely completed. The document Accelerating the Modernization of Agriculture and Rural Areas

and Taking Solid Steps to Advance Rural Revitalization Across the Board issued by the National Development and Reform

Commission in December 2025 emphasizes directing central budgetary investments and other funding channels toward

agriculture and rural areas with a focus on addressing shortcomings in rural infrastructure and public services. With the deepening

of the rural revitalization strategy and continued implementation of rural living environment improvement actions demand for

professional and mechanized sanitation services in townships is rapidly increasing creating significant incremental market

opportunities for the urban services and environmental protection equipment industries.

(3) Continued strengthening of new energy policies is accelerating market expansion

In 2025 a total of 247 cities nationwide generated demand for new energy-powered environmental protection equipment an

increase of 72 cities year-on-year. Among them 145 cities recorded demand for 10 units or more an increase of 65 cities year-on-

year. Since the national policy direction to accelerate the development of the new energy vehicle industry was established in 2012

top-level design and supporting documents have been continuously refined laying a solid foundation for the promotion and

application of new energy-powered environmental protection equipment. In 2025 the penetration rate of pure electric

environmental protection equipment reached 22.6% marking the industry's entry into a phase of rapid growth. During the 15th

Five-Year Plan period with continued policy support the penetration rate of new energy-powered environmental protection

equipment is expected to exceed 50%.

(4) The increasing mechanization of urban cleaning will create incremental market space for environmental protection

equipment

48Infore Environment Technology Group Co. Ltd. 2025 Annual Report

According to the 2024 Urban and Rural Construction Statistical Yearbook as at the end of 2024 the mechanical cleaning

space of roads in cities across the country reached 11.63 billion square meters with a mechanization rate of 82.6%. the mechanical

cleaning space of roads in counties across the country reached 3.36 billion square meters with a mechanization rate of 80.9%. This

indicates that there is still room for development in terms of the mechanization level of sanitation industry in China. While China's

sanitation mechanization has established a solid foundation there remains considerable room for improvement. In the future

driven by continuously rising labor costs sanitation operations will shift from "partial mechanization" to "full mechanization"

driving sustained increases in mechanization rates across all scenarios including road cleaning guardrail cleaning and waste

collection and transportation.

(5) The aggravation of aging population will make the expansion of the environmental protection equipment market an

inevitable trend

The frequent adjustments made by China in terms of minimum wages in different cities have largely influenced the operating

costs of urban service enterprises. The defects including high operating costs and low working efficiency in the traditional manual

urban service model have increased the business pressure on sanitation operation enterprises. According to the data of the National

Bureau of Statistics China's population reached approximately 1.4 billion by the end of 2025. Among them the population aged

60 and above reached 320 million accounting for 23.0% of the total population. The advent of an aging society will inevitably be

accompanied by labor shortages particularly in the sanitation services sector. Therefore improving the mechanization rate of the

sanitation industry and expanding the use of environmental protection equipment is not only a realistic need in the face of the labor

market shortage but also the requirement for the development of urban sanitation level.

(6) Continued large-scale equipment renewal policies driving release of the demand for environmental protection equipment

In 2025 supported by equipment renewal policies industry sales volumes stabilized and rebounded ending a four-year

decline. The Central Economic Work Conference held in December 2025 explicitly stated that in 2026 the implementation of the

"two new" policies will be further optimized while maintaining necessary fiscal expenditure intensity and actively defusing local

government debt risks thereby creating a stable environment for sustained industry development.

(7) Breakout growth of intelligent and unmanned environmental protection equipment

The deep application of next-generation information technologies such as the IoT big data and AI is driving profound

changes in the urban services and environmental protection equipment industries accelerating the transformation of sanitation

operations from traditional labor-intensive models to intelligent unmanned and refined models. National policies such as

"artificial intelligence+" and pilot programs for "vehicle-road-cloud integration" are driving explosive demand for high-end

intelligent equipment and unmanned operational equipment. The Company is seizing opportunities arising from industry

49Infore Environment Technology Group Co. Ltd. 2025 Annual Report

transformation by continuously increasing investment in intelligent environmental protection equipment and unmanned

technologies and is gradually building a comprehensive portfolio of intelligent unmanned products covering all sanitation

operation scenarios. The urban services industry is transitioning from "labor-intensive" to "technology-intensive" and upgrading

from "single cleaning services" to "comprehensive environmental service provider". Driven by the combined forces of ongoing

urbanization proactive fiscal policy and technological breakthroughs the environmental protection equipment market exhibits

dual characteristics of "certain growth + structural opportunities" with intelligence new energy and resource utilization forming

the three core investment themes.

(8) Deepening integration of "two networks" accelerating the development of recycling systems

In January 2025 the National Development and Reform Commission and the Ministry of Finance issued the Notice on

Intensifying the Implementation of Large-Scale Equipment Renewal and Consumer Goods Trade-In Policies in 2025 which

clearly proposes supporting supply and marketing cooperatives in leveraging their grassroots network advantages to accelerate the

development of standardized and regulated recycling systems and promote the integration of municipal waste collection systems

with renewable resource recycling systems.According to the Report on the Development of China's Renewable Resources Recycling Industry (2025) released by the

China Association of Circular Economy China's total recycled resource volume reached 401 million tons in 2024 a year-on-year

increase of 6.5% with a recycling value of approximately RMB 1.34 trillion. Xu Junxiang President of the China Association of

Circular Economy stated that the output value of China's resource recycling industry is expected to reach RMB 5 trillion in 2025.The integration of the "two networks" is driving the extension of sanitation services from single cleaning operations to a fullindustrial chain of "cleaning + recycling + resource utilization”. This provides policy support and market opportunities for

sanitation enterprises to expand into recycling businesses.

(9) Upgraded management of construction waste opens new blue-ocean opportunities for resource utilization

In May 2025 the General Office of the State Council forwarded the Opinions on Further Strengthening the Management of

Urban Construction Waste from the Ministry of Housing and Urban-Rural Development requiring strict accountability for source

reduction of construction waste implementation of classified treatment prohibition of direct mixing with household waste

promotion of certification for resource utilization products and improvement of the "polluter pays" system.According to the drafting group of the Technical Specifications for Pollution Control of Construction Waste (Draft for

Comments) from the Ministry of Ecology and Environment China generated more than 3 billion tons of construction waste in

2023 accounting for over 40% of total municipal waste making it the largest source of municipal solid waste. The Guiding

Opinions on the Comprehensive Utilization of Bulk Solid Waste during the 14th Five-Year Plan propose that by 2025 the

50Infore Environment Technology Group Co. Ltd. 2025 Annual Report

comprehensive utilization capacity of bulk solid waste including construction waste will be significantly improved with the

comprehensive utilization rate of new bulk solid waste reaching 60%.Driven by policies the market size of the construction waste resource utilization industry has grown from RMB 127 million

in 2018 to RMB 12.414 billion in 2023 with a compound annual growth rate of 57.77%. It is projected that by 2030 construction

waste could generate an output value exceeding RMB 330 billion in China providing a new growth engine for sanitation

enterprises.(II) Business plan for 2026

In 2026 the Company will continue to monitor market trends adhere to a diversified business expansion strategy and

actively develop integrated urban environmental management and full-scenario intelligent sanitation projects to continuously

optimize its order structure.In the intelligent equipment segment the strategy will emphasize "new energy leadership international expansion andgrowth through flagship products”. The Company continuously strengthens core technology R&D steadily optimizes overseas

market expansion and enhances international operational capability and overall competitiveness. At the same time the Company

will iterate small intelligent equipment products based on scenario-specific needs continuously improve the aerial work equipment

product portfolio and cultivate new growth drivers.The smart services segment will focus on "ecological technology-driven and unmanned" solutions while deepening its

presence in core regional markets. Leveraging digital upgrades of the Smart Sanitation Cloud Platform the Company will promote

efficient coordination between intelligent perception systems and full-scenario intelligent unmanned equipment to build an

integrated intelligent operation system covering inspection cleaning and transfer and create a new operational model of "human-

machine collaboration and intelligent coordination" thereby comprehensively enhancing the quality and efficiency of

environmental services through intelligent technologies.(III) Plan for use of funds

2026 is a crucial year for the Company's strategic development. To meet the capital needs of rapid business expansion the

Company will establish a scientific and dynamic capital supply and demand management system. On the one hand it will

strengthen the overall planning allocation and efficient utilization of its own capital. By improving the full-process management

mechanism of accounts receivable it will shorten collection cycles and improve the capital turnover efficiency. On the other hand

it will continuously optimize its capital structure reasonably control financial leverage and enhance the flexibility and risk

resistance of capital use while ensuring liquidity safety.

51Infore Environment Technology Group Co. Ltd. 2025 Annual Report

In terms of fundraising the Company will adopt a diversified financing strategy. By issuing direct financing instruments such

as short-term financing bonds and medium-term notes combined with the accumulation of cash flows from operating activities

and optimizing the structure of bank loans and other multi-channel combinations it will establish a stable capital supply system.At the same time a dynamic funds monitoring mechanism will be established to adjust the scale and duration of financing in a

flexible manner according to business development rhythms ensuring that fund supply precisely matches the needs of business

expansion and providing a solid financial guarantee for achieving the Company's strategic goals.(IV) Main risk factors that may adversely affect the achievement of the Company's future development strategies and

business objectives

1. Policy-related risks

Against the backdrop of the ongoing strengthening of national environmental protection policies the environmental

protection industry a typical sector driven by policy has ushered in development opportunities. However policy changes may

have a direct impact on the Company's operations. Changes in macroeconomic and environmental regulatory policies adjustments

to tax incentives and upgrades of environmental protection standards may all lead to fluctuations in market demand increases in

operating costs or adjustments to the business layout thereby affecting the Company's operating performance.Countermeasures: The Company has established a dynamic policy tracking mechanism and formed a professional research

team to interpret national macroeconomic policies and industry regulations. By regularly analyzing policy trends and predicting

potential impacts it provides a scientific basis for decision-making for the management. At the same time the insights gained from

policy research are integrated into strategic planning and business development strengthening the Company's ability to adapt to

policy changes and manage risks effectively.

2. Operation management risks

As the Company expands its business scale broadens its markets and develops more subsidiaries its assets personnel and

organizations are also undergoing rapid expansion causing its management to become more complex. Although the Company has

formed a complete internal control system and continuously improved it the difficulties of coordinated management are still

increasing due to factors such as industry characteristics regional differences and cultural backgrounds of its branches.Countermeasures: The Company adopts the strategy of "empowering the enterprise with talent + upgrading management". It

expands the core management team by introducing high-end talent and carrying out special training to enhance the team's overall

capabilities. Moreover it strengthens the development of its management system and risk control mechanisms optimizes the

standardization of business processes improves coordination across regions and departments and fosters the integration of

corporate culture to enhance organizational cohesion and risk prevention and control capabilities.

52Infore Environment Technology Group Co. Ltd. 2025 Annual Report

3. Risks of heightened competition in market-oriented services

China's urban services industry is at a critical stage of market-oriented upgrading with relatively low market concentration.As the industry continues to develop rapidly cross-sector enterprises and new market entrants are continuously emerging

gradually blurring traditional competitive boundaries. The market is increasingly characterized by integrated resources and

complementary capabilities intensifying competition and posing a risk of declining market share for the Company.Countermeasures: In the face of intensifying market competition the Company adheres to a core strategy of "technological

innovation + competitive differentiation" continuously increases R&D investment and focuses on key areas such as intelligent

equipment and digital management to advance technological breakthroughs. It continuously optimizes its service system innovates

service models and develops differentiated integrated solutions to enhance core competitiveness through technological strength

and brand influence. Going forward the Company will continue to deepen its presence in core strategic markets steadily expand

its nationwide business footprint extend service coverage and leverage its established competitive advantages to further

consolidate its industry-leading position and effectively mitigate risks arising from intensified market competition.XII. Visits Paid to the Company for Purposes of Research Communication and Interview

during the Reporting Period

□Applicable □ Not Applicable

Main content of Reference of

discussion and the study's

Time Venue Method Visitor type Visitor

materials basic

provided information

For details

please refer to

To understand the Record

the business Sheet of

Interactive

development Investor

Platform for Online

situation of the Relations

Investor communication

May 13 2025 Others Investors Company in Activities

Relations on on Internet

various fields disclosed by the

Panorama platform

and its future Company on

Network

business May 13 2025

strategy on Cninfo

(www.cninfo.co

m.cn)

Changjiang For details

Securities please refer to

23rd Floor To understand

Soochow the Record

Conference the Company's

Securities Sheet of

October 29 Room Infore On-site industry

Institutions China Investor

2025 Environment research landscape and

Merchants Relations

Technology operating

Securities Activities

Group Co. Ltd. conditions

Huatai disclosed by the

Securities GF Company on

53Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Securities October 29

SDIC 2025 on Cninfo

Securities (www.cninfo.co

Shenwan m.cn)

Hongyuan

Securities

Tianfeng

Securities

Guosheng

Securities

XIII. Formulation and Implementation of the Market Value Management System and

Valuation Improvement Plan

Whether the Company formulated a market value management system.□Yes □No

Whether the Company disclosed a valuation improvement plan.□Yes □No

To strengthen market value management and effectively enhance investment value and shareholder returns the Company

actively responded to the call in the Several Opinions of the State Council on Further Promoting the Sound Development of the

Capital Market to encourage listed companies to establish market value management systems. In accordance with the Company

Law of the People's Republic of China the Securities Law of the People's Republic of China the Administrative Measures for

Information Disclosure of Listed Companies the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange the

Guidelines No. 1 of SZSE for Self-regulation of Listed Companies—Standardized Operation of Companies Listed on the Main

Board the Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management and the Articles of Association

the Company formulated the Market Value Management System and the 2025 Valuation Enhancement Plan which were reviewed

and approved at the 10th meeting of the 10th Board of Directors. For details please refer to the Market Value Management System

and the 2025 Valuation Enhancement Plan disclosed by the Company on April 25 2025 on Cninfo (http://www.cninfo.com.cn).On a lawful and compliant basis the Company will comprehensively utilize various measures including mergers and

acquisitions share repurchases equity incentives employee stock ownership plans cash dividends investor relations management

and information disclosure to continuously strengthen its fundamentals enhance core competitiveness improve corporate quality

and value and increase recognition in the capital market.XIV. Implementation of the Action Plan for Quality and Return Improvements

Whether the Company disclosed the Action Plan for Quality and Return Improvements.□Yes□No

54Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part IV Corporate Governance Environment and Society

1. Basic situation of Corporate Governance

1. The Company continuously perfects its corporate governance structure in strict accordance with the requirements of the

Company Law the Securities Law and the relevant laws and regulations of the CSRC. The Board of Directors has four special

committees namely Strategy Committee Audit Committee Nomination Committee and Remuneration & Appraisal Committee

dedicated to providing advice and recommendations to ensure the Board of Directors' deliberation and decision-making are

professional and efficient.

2. The Company convenes the Annual General Meeting of Shareholders in strict accordance with the relevant provisions of

the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders. The Board of Directors which is

the decision-making body of the Company conscientiously implements the resolutions of General Meetings of Shareholders.

3. During the reporting period in order to regulate its insider information management ensure confidentiality of insider

information and effective registration and management of insiders who have access to insider information effectively prevent

securities violations of laws and regulations such as insider trading maintain the fairness of information disclosure and protect the

legitimate rights and interests of the general investors the Company promptly truthfully and fully recorded all the persons with

access to the insider information before disclosure at stages such as discussion and planning demonstration and consultation

establishment and in phases such as reporting transmission preparation examination resolution and disclosure as well relevant

information archives regarding the content time place basis and method etc. for the insiders to know the insider information and

file with the relevant regulatory authorities to strictly prevent the occurrence of insider trading pursuant to the laws and

regulations such as the Securities Law the Measures for the Administration of Information Disclosure by Listed Companies as

well as the relevant provisions of the Articles of Association and Information Disclosure Management Policy of the Company.

4. The Company discloses information in strict accordance with the provisions of the Company Law the Securities Law the

Rules Governing the Listing of Shares on SZSE and other relevant laws regulations and normative documents as well as the

Information Disclosure Management Policy to ensure that it makes true accurate complete timely and fair information

disclosure to increase the openness and transparency of its operations. During the reporting period there were no governance

irregularities such as the provision of undisclosed information to the controlling shareholder and the de facto controller.

5. During the reporting period there was no change in the stock price arising from leakage of inside information of the

Company. As part of its next steps the Company will constantly improve its corporate governance structure further standardize

55Infore Environment Technology Group Co. Ltd. 2025 Annual Report

corporate operations and raise the level of corporate governance pursuant to relevant laws and regulations as well as the

requirements of the SZSE.As to the actual status of corporate governance whether there is any material departure from laws administrative regulations and

the rules issued by the CSRC on listed company governance

□Yes□No

As to the actual status of governance of the Company there is no material non-compliance with laws administrative regulations

and the rules issued by the CSRC on the governance of listed companies

II. Independence of the Company from the Controlling Shareholder and De Facto

Controller and on Ensuring Company's Assets Personnel Finance Structure and

Businesses and Other Aspects

The Company is completely independent of the controlling shareholder in terms of businesses personnel assets organization

and finance etc. and has fully independent businesses and operation capacity. Details are as follows:

(1) Business independence: The Company's businesses are independent of the controlling shareholder and the controlling

shareholder and its affiliates are not engaged in any businesses in competition with the Company.

(2) Personnel separation: The personnel of the Company are independent of the controlling shareholder and the President

CFO Board Secretary and other senior officers of the Company do not hold positions other than directors in the controlling

shareholder the financial officers of the Company do not have a part-time job in affiliated companies. The Company has put in

place independent policies on labor personnel and remuneration management and established an independent labor and personnel

management department. Thus its labor personnel and remuneration management are completely independent.

(3) Integrity of assets: The Company owns independent and complete assets and has independent production supply and sales

systems and there is no horizontal competition between the Company and its controlling shareholder in the manufacturing and

operation of the same products.

(4) Organizational independence: The Company is organizationally complete and there is no superior-subordinate

relationship between its controlling shareholder and functional departments thereof and the Company and functional departments

thereof. The Company's Board of Directors and other internal institutions operate fully independently.

(5) Financial separation: The Company's finance is entirely independent with an independent financial department. It has also

established an independent accounting system and financial accounting management policy dedicated to independent accounting

independent opening of bank accounts and independent tax payment.III. Horizontal Competition

□Applicable□ Not applicable

56Infore Environment Technology Group Co. Ltd. 2025 Annual Report

IV. Information of Directors and Senior Officers

1. Basic information

Numb Numb

Reaso

Beginn er of er of

Ending ns for

ing shares shares

Incum Start Other numbe share

Gende Positio End of numbe increas decrea

Name Age bent/F of change r of increas

r n tenure r of ed sed

ormer tenure s shares e/d

shares during during

held ecreas

held the the

e

period period

Chair

man of

the Decem Februa

Ma Incum 1654 1654

Male 47 Board ber 4 ry 11 0 0 0 None

Gang bent 600 600

and 2014 2029

Presid

ent

May Februa

Zhu Direct Resign

Male 47 20 ry 12 46975 0 0 0 46975 None

Youyi or ed

20242026

Kuang Januar Februa

Direct Resign

Guang Male 47 y 30 ry 12 0 0 0 0 0 None

or ed

xiong 2019 2026

Januar Februa

Shen Direct Resign

Male 55 y 30 ry 12 0 0 0 0 0 None

Ke or ed

20192026

Indepe

Decem Februa

Zhang ndent Resign

Male 48 ber 26 ry 12 0 0 0 0 0 None

Yu directo ed

20192026

r

Indepe

Li Decem Februa

ndent Resign

Ruido Male 49 ber 26 ry 12 0 0 0 0 0 None

directo ed

ng 2019 2026

r

Indepe

Li Januar Februa

ndent Resign

Yingzh Male 64 y 12 ry 12 0 0 0 0 0 None

directo ed

ao 2023 2026

r

Vice

Wang April Februa

Presid Incum

Qingb Male 50 29 ry 11 800 0 0 0 800 None

ent & bent

o 2022 2029

CFO

Board August Februa

Huang Incum

Male 37 Secret 26 ry 11 0 0 0 0 0 None

Junjie bent

ary 2024 2029

17021702

Total -- -- -- -- -- -- 0 0 0 --

375375

Whether any director or senior officer left office during their tenure during the reporting period

□Yes□No

Changes of the Company's directors and senior officers

□ Applicable□ Not applicable

57Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2. Position and biographical information

Professional backgrounds major work experience and current posts in the Company of the incumbent directors and senior officers:

1. Mr. Ma Gang born in 1979 holding a master's degree is Chairman of the Tenth Board of Directors of Infore Enviro. He

has served as President of Infore Enviro since December 2014. He joined Midea Group in June 2001 and held successively the

positions of R&D Engineer branch salesman and Regional Director at Midea Rice Cooker Division General Manager at Midea

Small Domestic Appliance Sales Company in China President of China Marketing Headquarters of Midea Daily Home Electric

Appliance Group Vice President and Domestic Sales General Manager at Midea Small Domestic Appliance Division Vice

President of Midea Small Domestic Appliance Division and General Manager at Midea Water Material Product Company and

Deputy Director at Midea Domestic Market Department.

2. Mr. Zhu Youyi born in 1979 holding a master's degree is Director of the Tenth Board of Directors of Infore Enviro.

Starting in August 2023 he has been Vice President of Infore Group Co. Ltd. From July 2020 to August 2023 he served as a

senior director of human resources at Alibaba Group. From July 2001 to July 2020 he held various director positions in market

operations and strategic investment at Midea Group.

3. Mr. Kuang Guangxiong born in 1979 holding a master's degree is a PRC Certified Public Accountant and International

Accountant in addition to Director of the Tenth Board of Directors of Infore Enviro. He has been Executive President of Infore

Group from August 2024 till now. From July 2002 to August 2024 he held successively the positions of Financial Manager at

Midea Daily Home Electric Appliance Group Financial Manager at Midea subsidiary in the US Financial Director at Midea

Kitchen Appliances Division Financial Director at Midea Commercial Air Conditioner Division Financial Director at Midea-

KUKA Joint Venture in China and Vice President at Infore Group.

4. Mr. Shen Ke born in 1971 holding a master's degree is Director of the Tenth Board of Directors of Infore Enviro. He has

been Vice President of Zoomlion Heavy Industry Science and Technology Co. Ltd. from September 2020 till now. From July

2003 to September 2020 he held the positions of Head of the Investment Development Department Board Secretary and

Investment Director at Zoomlion Heavy Industry Science and Technology Co. Ltd.

5. Mr. Zhang Yu born in 1978 holding a doctoral degree serves as Independent Director of the Tenth Board of Directors of

Infore Enviro. He has served as Associate Professor and Professor at China Europe International Business School since 2015 till

now and held the position of Assistant Professor at University of California Irvine from 2008 to 2015.

6. Mr. Li Ruidong born in 1977 holding a bachelor's degree is Independent Director of the Tenth Board of Directors of

Infore Enviro. He has been President and Editor-in-chief at the China Environment Magazine since November 2013 till now. He

58Infore Environment Technology Group Co. Ltd. 2025 Annual Report

served as Assistant to General Manager of Environmental Protection Magazine Co. Ltd. from February 2012 to November 2013

and Director of the Office of the Environmental ProtectionMagazine from March 2008 to January 2012.

7. Mr. Li Yingzhao born in 1962 holding a doctoral degree serves as Independent Director of the Tenth Board of Directors

of Infore Enviro. He was formerly Professor of Accounting and graduate supervisor at School of Business Administration South

China University of Technology and retired in 2023. He served as Independent Director at such listed companies as Guangzhou

Friendship Group Co. Ltd. Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. and Guangdong TLOONG Technology Group Co.Ltd.

8. Mr. Wang Qingbo born in 1976 holding a bachelor's degree is Vice President and CFO of Infore Enviro. He previously

served as Vice President and Vice President of Finance at Guangdong NVC Lighting Technology Co. Ltd. Vice President of

Finance at Guangdong Xinbang Logistics Co. Ltd. CFO at Midea Annto Logistics Division Deputy CFO at Midea Small

Domestic Appliance Division Financial Manager at Midea Industrial Design Company and Financial Supervisor at Midea Fan

Factory.

9. Mr. Huang Junjie born in 1989 holding a master's degree is currently Board Secretary and Director of the Securities and

Strategic Development Department of Infore Enviro. He served as Senior Investment Manager of Cedar Holdings Group Co. Ltd.Investment Manager of Tianjin Golden Wutong Investment Management Partnership (Limited Partnership) International

Management Trainee and M&A Analyst of the New York Branch of Standard Chartered Bank.Circumstances where the controlling shareholder or de facto controller concurrently serves as Chairman and General Manager of

the listed company

□ Applicable□ Not applicable

Positions held in shareholder entities

□Applicable □ Not Applicable

Whether receiving

Name of the Position held at remuneration or

End of

personnel holding Shareholder entity the shareholder Start of tenure allowances from

tenure

position entity the shareholder

entity

Zhu Youyi Infore Group Co. Ltd. Director August 28 2023 -- Yes

Kuang

Infore Group Co. Ltd. Director May 30 2019 -- Yes

Guangxiong

Kuang Ningbo Infore Asset Legal

June 6 2024 -- No

Guangxiong Management Co. Ltd. representative

Zoomlion Heavy Industry

Shen Ke Science and Technology Co. Vice President June 29 2015 -- Yes

Ltd.Positions held in other entities

□Applicable □ Not Applicable

Name of Name of other entity Position held in Start of tenure End of Whether

59Infore Environment Technology Group Co. Ltd. 2025 Annual Report

the other entity tenure receiving

personn remuneratio

el n or

holding allowances

position from other

entities

Zhu Guangdong Infore Finance Connect Small

Chairman May 15 2024 -- No

Youyi Loan Co. Ltd.Zhu

KUKAHome Co. Ltd. Director February 2 2024 -- No

Youyi

Zhu

Beijing Baination Pictures Co. Ltd. Chairman May 16 2024 -- No

Youyi

Zhu Yinghe (Shenzhen) Robotics and Automation

Director April 18 2025 -- No

Youyi Technology Co. Ltd.Kuang

Guangdong Infore Finance Connect Small

Guangxi Director July 6 2020 -- No

Loan Co. Ltd.ong

Kuang

Guangxi KUKAHome Co. Ltd. Chairman September 20 2024 -- No

ong

Kuang

Guangxi E - Fund Management Co. Ltd. Director January 1 2025 -- No

ong

Kuang

Guangdong Infore Material Technology Co.Guangxi Chairman October 9 2023 -- No

Ltd.ong

Kuang

Guangxi Foshan Infore Trade Co. Ltd. Others June 21 2024 -- No

ong

Kuang

Ningbo Infore Ruihe Investment Executive

Guangxi May 11 2024 -- No

Management Co. Ltd. Director Manager

ong

Kuang

Ningbo Infore Baihe Cultural Industry Executive

Guangxi June 6 2024 -- No

Investment Co. Ltd. Director Manager

ong

Kuang

Yinghe (Shenzhen) Robotics and Automation

Guangxi Chairman August 5 2020 -- No

Technology Co. Ltd.ong

Hunan Zoomlion Emergency Device Co.Shen Ke Director August 17 2017 -- No

Ltd.Shen Ke Zoomlion Capital Co. Ltd. Director October 22 2015 -- No

Shen Ke Zoomlion Finance Co. Ltd. Director May 28 2015 -- No

Changsha Zoomlion Zhitong Trenchless

Shen Ke Director April 13 2009 -- No

Technology Co. Ltd.Zoomlion Heavy Machinery Zhejiang Co.Shen Ke Chairman November 8 2023 -- No

Ltd.Shen Ke Zoomlion Agriculture Co. Ltd. Chairman October 31 2023 -- No

Hunan Zhongchen Rolled Steel

Shen Ke Director May 20 2020 -- No

Manufacturing Engineering Co. Ltd.Hunan Xiangjiang Private Equity Fund

Shen Ke Director April 28 2021 -- No

Management Co. Ltd.Zoomlion Business Factoring (China) Co.Shen Ke Director October 11 2023 -- No

Ltd.Zhang

China Europe International Business School Professor July 1 2015 -- Yes

Yu

60Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Li President and

China Environment Magazine November 1 2013 -- Yes

Ruidong Editor-in-chief

Li

Yingzha Jiangxi Green Recycling Co. Ltd. Director November 19 2020 -- Yes

o

Li

China Broadnet Guangzhou Network Co. Independent

Yingzha April 27 2021 -- Yes

Ltd. director

o

Punishments imposed in the past three years by the securities regulator on the incumbent directors and senior officers as well as

those who left office during the reporting period

□Applicable □ Not Applicable

During the reporting period as the Company had used proceeds from fund-raising in 2022 to pay for expenditures unrelated

to the investment projects which were subsequently returned to the designated account within the same year and there were

instances of commingling the proceeds account with the Company's own funds the Zhejiang CSRC Bureau issued a Decision on

Issuing Warning Letters to Infore Environment Technology Group Co. Ltd. and Relevant Personnel to the Company Ma Gang

and Wang Qingbo.In response the Company and relevant personnel promptly implemented corrective actions: In 2022 the Company identified

that proceeds had been used for expenditures unrelated to the designated investment projects. Upon identifying the issue the

Company immediately returned the proceeds to the designated proceeds account within the same year and organized relevant

personnel to relearn the Fundraising Proceeds Management System requiring thorough understanding to ensure strict compliance

in subsequent use of proceeds.As the entity responsible for fundraising proceeds the Company has always strictly followed investment project requirements

and the principle of dedicated use of funds in designated accounts. For Guangdong Infore Urban Service Intelligent Technology

Co. Ltd. a wholly owned subsidiary of the Company as the entity for project implementation its general account used for

fundraising proceeds also receives other funds in addition to fundraising proceeds and fails to fully meet the management

requirement of only receiving fundraising proceeds. In response the Company will comprehensively review and standardize the

use of existing accounts supplement and execute a Four-Party Supervision Agreement for Fundraising Proceeds align

implementation accounts with the standards of dedicated proceeds accounts strictly enforce exclusive use ensure compliance and

security in proceeds utilization and prevent recurrence of similar issues.

3. Remuneration of directors and senior officers

Decision-making procedure determination basis and actual payments of remuneration for directors and senior officers

In accordance with the Remuneration System for Directors and Senior Officers approved by the Company the remuneration

of the Company's directors and senior officers consists of a base annual salary and a performance-based annual salary. The base

61Infore Environment Technology Group Co. Ltd. 2025 Annual Report

salary is determined based on responsibilities risks and pressures borne by directors and senior officers and remains stable while

the performance-based salary is linked to the Company's profit achievement rate target responsibility assessment results and

departmental performance appraisal results. The remuneration system for the Company's directors and senior officers serves the

Company's business strategy and is adjusted in line with changes in the Company's operating conditions to meet the needs of the

Company's further development. Adjustments to remuneration for the Company's directors and senior officers are based on: (1)

Company performance; (2) position individual capability and contribution; (3) performance appraisal results; and (4) market and

industry remuneration levels.Remuneration of directors and senior officers of the Company during the reporting period

Unit: RMB 10000

Receiving

Total pre-tax remuneration

Incumbent/For remuneration from the

Name Gender Age Position

mer from the Company's

Company related parties

or not

Chairman of

Ma Gang Male 47 the Board and Incumbent 278.64 No

President

Zhu Youyi Male 47 Director Resigned 0 Yes

Kuang

Male 47 Director Resigned 0 Yes

Guangxiong

Shen Ke Male 55 Director Resigned 0 Yes

Independent

Zhang Yu Male 48 Resigned 10 No

director

Independent

Li Ruidong Male 49 Resigned 10 No

director

Independent

Li Yingzhao Male 64 Resigned 10 No

director

Vice President

Wang Qingbo Male 50 Incumbent 102.43 No

& CFO

Board

Huang Junjie Male 37 Incumbent 101.58 No

Secretary

Total -- -- -- -- 512.65 --

Appraisal basis for remuneration actually received by all Appraisal plan formulated in accordance with the Company's

directors and senior officers at the end of the reporting period Remuneration System for Directors and Senior Officers

Completion of appraisal for remuneration actually received by

all directors and senior officers at the end of the reporting Completed

period

Deferred payment arrangements for remuneration actually

received by all directors and senior officers at the end of the 0

reporting period

Clawback and recourse arrangements for remuneration actually

received by all directors and senior officers at the end of the 0

reporting period

62Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Other information

□ Applicable□ Not applicable

V. Performance of Duties by Directors during the Reporting Period

1. Attendance of directors at Board meetings and general meetings of shareholders

Attendance of directors at Board meetings and general meetings of shareholders

Number of Number of Having failed

Number of Number of Number of

Number of Board Board to attend two

Board Board general

Director's Board meetings meetings consecutive

meetings meetings meetings of

name meetings attended by attended Board

attended on absent with shareholders

held way of through meetings in

site apologies attended

telecoms proxy person or not

Ma Gang 8 8 0 0 0 No 3

Zhu Youyi 8 1 7 0 0 No 3

Kuang

8 1 7 0 0 No 3

Guangxiong

Shen Ke 8 0 8 0 0 No 3

Zhang Yu 8 0 8 0 0 No 3

Li Ruidong 8 0 8 0 0 No 3

Li Yingzhao 8 0 8 0 0 No 3

Explanation of failure to attend two consecutive Board meetings

Not applicable.

2. Objections raised to relevant matters of the Company

Whether any directors raised an objection to any relevant matter of the Company

□Yes □No

Matters to which

Director's name directors raised Content of objections

objections

Mr. Shen Ke voted against the proposal with the following

reasons: According to the proposed amendments to the

Articles of Association the number of directors would

increase from 7 to 9. In addition to adding one employee

At the 15th

director as required by laws and regulations another

extraordinary meeting

director would be added while the number of independent

of the Tenth Board of

directors would remain unchanged at 3. Based on this

Directors the proposal

among the current 7 directors 4 are external directors;

on revising the

Shen Ke however under the amended Articles of Association

Articles of Association

among the 9 directors external directors would remain at 4

was reviewed and

which is less than half. This represents a substantive change

submitted to the

in the governance structure of the Board which is not

General Meeting of

conducive to safeguarding the interests of small and

Shareholders

medium shareholders and is inconsistent with the broader

direction of improving corporate governance. It is therefore

recommended that the Board add one employee director

increasing the number of directors from 7 to 8.Explanation of directors' objections to Refer to the content of objections above.

63Infore Environment Technology Group Co. Ltd. 2025 Annual Report

relevant matters of the Company

3. Other information about the performance of duties by directors

Whether any recommendations from directors were adopted by the Company

□Yes □No

Explanation of adoption/rejection of directors' recommendations for the Company

During the reporting period the directors of the Company acted in a diligent and responsible manner and actively attended Board

meetings and general meetings of shareholders in strict compliance with provisions and requirements in the Articles of Association

the Rules of Procedure for the Board of Directors as well as relevant laws and regulations. Based on the actual situation of the

Company the directors proposed relevant opinions on the Company's material governance and operation decisions developed

management measures aligned with sound corporate governance through adequate communication and discussion firmly

supervised and promoted the execution of resolutions of the Board of Directors ensured the decision-making was scientific timely

and highly efficient and protected the legitimate rights and interests of the Company and all shareholders.VI. Information on Special Committees of the Board during the Reporting Period

Specific

Other information

Important

Number of information on matters

Name of the Date of the Meeting opinions and

Members meetings on that

committee meeting contents suggestions

held performance objections

proposed

of duties were raised

(if any)

1. Pre-

approval of

the Financial

Statements in

2024 Annual

Li Yingzhao

Report;

Kuang Approved the

2.2025

Guangxiong February 19 relevant Not Not

6 Internal

Li Ruidong 2025 proposals of applicable applicable

Audit Work

and Zhang this meeting.Plan Report;

Yu

3. Ex-ante

Communicati

Audit on of 2024

Committee Annual

Report.

1.2024

Internal

Control

Li Yingzhao

Assessment

Kuang Approved the

Report;

Guangxiong April 23 relevant Not Not

62.2024

Li Ruidong 2025 proposals of applicable applicable

Annual

and Zhang this meeting.Report and

Yu

Its Summary;

3.2024

Annual Final

64Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Financial

Accounting

Report;

4. 2025 First

Quarter

Report;

5. Proposal

on Changes

to

Accounting

Policy of the

Company

and Its

Subsidiaries;

6. Proposal

on the

Reappointme

nt of

Accounting

Firms;

7.

Assessment

Report on the

Performance

of the

Accounting

Firm in 2024

and Report

on the

Performance

of

Supervisory

Duties of the

Audit

Committee

over the

Accounting

Firm.

1.2025

Interim

Report (Full

Text) and Its

Summary;

2. Special

Report on the

Li Yingzhao Approved the

Storage and

Kuang August 20 relevant Not Not

6 Use of

Guangxiong 2025 proposals of applicable applicable

Fundraising

Li Ruidong this meeting.Proceeds for

the First Half

of 2025;

3.2025

Interim

Financial

Report.Li Yingzhao 6 October 28 1. Third Approved the Not Not

65Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Kuang 2025 Quarter relevant applicable applicable

Guangxiong Report for proposals of

Li Ruidong 2025; this meeting.

2. Proposal

on the

Temporary

Replenishme

nt of Working

Capital with

Part of the

Idle Raised

Funds.Proposal on

Re-

Li Yingzhao Approved the

establishing

Kuang December relevant Not Not

6 the Internal

Guangxiong 12 2025 proposals of applicable applicable

Audit

Li Ruidong this meeting.Management

System

Proposal on

the Public

Listing and

Transfer of

100% Equity

in a Wholly

Li Yingzhao Approved the

Owned

Kuang December relevant Not Not

6 Subsidiary

Guangxiong 30 2025 proposals of applicable applicable

and Related

Li Ruidong this meeting.Creditor's

Rights

Resulting in

Passive

Financial

Assistance

1. Reviewing

the

Performance

of the

Company's

Directors

and Senior

Officers in

Fulfilling

Li Ruidong

Remuneratio Their Duties Approved the

Kuang

n & January 15 in 2024 and relevant Not Not

Guangxiong 6

Appraisal 2025 Conducting proposals of applicable applicable

and Zhang

Committee Annual this meeting.Yu

Performance

Assessment

Based on

Assessment

Criteria and

Remuneratio

n Policies

and Plans;

2.

66Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Implementati

on of the

Remuneratio

n Plan for

Directors

Supervisors

and Senior

Officers in

2024.

All

Proposal on committee

the members

Li Ruidong Remuneratio abstained

Kuang n Plan for from voting

April 23 Not Not

Guangxiong 6 Directors and

2025 applicable applicable

and Zhang Supervisors submitted the

Yu and Senior matter to the

Officers in Board of

2025 Directors for

deliberation.Proposal on

the Early

Li Ruidong

Termination Approved the

Kuang

August 20 of the Second relevant Not Not

Guangxiong 6

2025 Employee proposals of applicable applicable

and Zhang

Stock this meeting.Yu

Ownership

Plan

1. Proposal

on the Third

Employee

Stock

Ownership

Plan (Draft)

and Its

Summary;

2. Proposal

on

Formulating

the

Li Ruidong

Management Approved the

Kuang

October 28 Measures for relevant Not Not

Guangxiong 6

2025 the Third proposals of applicable applicable

and Zhang

Employee this meeting.Yu

Stock

Ownership

Plan;

3. Proposal

on

Requesting

the General

Meeting of

Shareholders

to Authorize

the Board of

Directors to

67Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Handle

Matters

Related to

the Third

Employee

Stock

Ownership

Plan.

1. Proposal

on the Third

Employee

Stock

Ownership

Plan

(Revised

Draft) and

Its Summary;

2. Proposal

on

Formulating

the

Management

Measures for

the Third

Employee

Stock

Ownership

Plan

(Revised);

3. Proposal

Li Ruidong

on Approved the

Kuang

November Requesting relevant Not Not

Guangxiong 6

12 2025 the General proposals of applicable applicable

and Zhang

Meeting of this meeting.Yu

Shareholders

to Authorize

the Board of

Directors to

Handle

Matters

Related to

the Third

Employee

Stock

Ownership

Plan;

4. Proposal

on

Postponing

the First

Extraordinar

y General

Meeting of

Shareholders

of 2025 and

Canceling

68Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Certain

Proposals.All

Proposal on committee

Re- members

Li Ruidong establishing abstained

Kuang the from voting

December Not Not

Guangxiong 6 Remuneratio and

12 2025 applicable applicable

and Zhang n System for submitted the

Yu Directors matter to the

and Senior Board of

Officers Directors for

deliberation.Proposal on

the

Company's

Share

Repurchase Approved the

Ma Gang

Plan and the relevant Not Not

Zhu Youyi 3 April 9 2025

Commitment proposals of applicable applicable

and Shen Ke

Letter for this meeting.Securing a

Special

Repurchase

Loan

1.2025

Valuation

Enhancement

Plan;

Approved the

Ma Gang 2. Proposal

April 23 relevant Not Not

Zhu Youyi 3 on

2025 proposals of applicable applicable

Strategy and Shen Ke Formulating

this meeting.Committee the Market

Value

Management

System.Proposal on

the Public

Listing and

Transfer of

100% Equity

in a Wholly

Approved the

Ma Gang Owned

December relevant Not Not

Zhu Youyi 3 Subsidiary

30 2025 proposals of applicable applicable

and Shen Ke and Related

this meeting.Creditor's

Rights

Resulting in

Passive

Financial

Assistance

VII. Work of the Audit Committee

Whether the Audit Committee identified any risk in the Company in its supervision during the reporting period

69Infore Environment Technology Group Co. Ltd. 2025 Annual Report

□Yes□No

The Audit Committee has no objection to supervisory matters during the reporting period.VIII. Information on Employees of the Company

1. Number specialty and educational backgrounds of employees

Number of in-service employees of the parent company at the

217

end of the reporting period

Number of in-service employees of the major subsidiaries at

19550

the end of the reporting period

Total number of in-service employees at the end of the

19767

reporting period

Total number of paid employees during the reporting period 19767

Number of retirees to whom the parent company or its major

0

subsidiaries need to pay retirement pensions

Specialty

Specialty category Number of people in the specialty

Production personnel 15944

Sales personnel 936

Technical personnel 1323

Finance personnel 166

Administrative personnel 1398

Total 19767

Educational level

Types of educational level Number of people

Doctoral degree 10

Master's degree 487

Bachelor's degree 2364

College 1939

Below college 14967

Total 19767

2. Remuneration policy

The remuneration of employees is paid on time according to the remuneration policy of the Company. The fixed

remuneration of employees is determined by the Company according to the position value and individual performance and the

floating salary of employees is determined according to the Company's performance and individual performance assessment

results. The Company swings the weight of salary payment towards strategic and key professionals to ensure that the income level

of core talent is competitive in the market. The employee remuneration policy is subject to dynamic adjustments based on regional

conditions talent supply staff turnover the extent of changes in the industry environment and the corporate payment capacity.

70Infore Environment Technology Group Co. Ltd. 2025 Annual Report

3. Training plan

The Company adopts a talent strategy of high quality high incentives high performance and high cultural identity. To

support employees through targeted and efficient training Infore Enviro has put in place a 3-tier training system that covers the

company level division level and department level. The Company has established the Employee Skills Enhancement Center

continuously improving the competence and capabilities of employees while actively promoting corporate culture. By

continuously strengthening the trainer team and improving online learning platforms and other key resources while maintaining

standardized training management processes the Company is committed to creating a collaborative and efficient organizational

climate that empowers employees and promotes individual growth.The Company provides diversified and tiered learning and development programs primarily covering general skills expertise

and leadership. Leadership is strengthened through junior intermediate and senior management seminars advanced leadership

training camps and transition training programs for newly appointed managers facilitating continuous leadership development;

expertise is enhanced through specialized training camps for marketing R&D business and project operations functions to

improve job-specific skills; general skills focus on new employees from campus and social recruiting including the Young Talent

Training Camp follow-up training and programs specific to new employees from social recruiting to help them swiftly integrate

into the organization.

4. Labor outsourcing

□Applicable □ Not Applicable

Total hours of labor outsourced 59099064.64

Total payment for labor outsourcing (RMB) 750785159.04

IX. The Company's Profit Distribution and Converting Capital Reserve into Share Capital

Formulation execution or adjustments of profit distribution policy especially cash dividend policy during the reporting period

□Applicable □ Not Applicable

According to the Articles of Association while satisfying the conditions of cash dividend and ensuring the Company's normal

operation and long-term development the Company shall in principle pay cash dividends on an annual basis. The Board of

Directors may propose interim cash dividends depending on the Company's profit status cash flow status development stage and

capital requirements. The Company shall maintain the continuity and stability of the profit distribution policy. When the

conditions for cash dividends are met the cumulative profit distributed in cash in the recent three years shall not be less than 30%

of the average annual distributable profit realized in the recent three years.

71Infore Environment Technology Group Co. Ltd. 2025 Annual Report

During the reporting period the Company distributed profit in strict accordance with the provisions of the Articles of Association

and fully protected the legitimate rights and interests of small and medium investors.Special remarks on the cash dividend policy

Whether it complies with the Company's Articles of Association or resolutions of the general meetings of

Yes

shareholders:

Whether dividend distribution standards and ratio are explicit and clear: Yes

Whether the decision-making procedure and mechanism are complete: Yes

Whether independent directors diligently performed their duties and played their due role: Yes

In the event that the Company does not distribute cash dividends it shall disclose the specific reasons and the

Not applicable

next steps to elevate the level of return for investors:

Whether minority shareholders have the opportunity to fully express their opinions and demand and whether

Yes

their legal rights and interests are adequately protected:

In case of adjusting or changing the cash dividend policy whether the conditions and procedures involved are in

Yes

compliance with applicable regulations and transparent:

The Company made profits during the reporting period and the parent company's profits distributable to shareholders were positive

but no proposal for cash dividend distribution was put forward

□ Applicable□ Not applicable

Profit distribution and converting capital surplus into share capital for the reporting period

□Applicable □ Not Applicable

Bonus shares per 10 shares (share) 0

Dividend per 10 shares (RMB) (tax inclusive) 1.30

Total shares as the basis for the proposal for profit distribution

3137329478.00

(share)

Cash dividends (RMB) (tax inclusive) 407852832.14

Cash dividends in other forms (such as share repurchase)

0.00

(RMB)

Total cash dividends (inclusive of those in other forms) (RMB) 407852832.14

Distributable profit (RMB) 842644268.96

Total cash dividends (inclusive of those in other forms) as a

48.40%

percentage of total distributed profit

Information on this cash dividend

Others

Details about the proposal for profit distribution and converting capital reserve into share capital

The profit distribution plan for 2025 is as follows: Based on the total share capital (minus company shares in the Company's

repurchase account) on the date of record for the 2025 profit distribution plan a cash dividend of RMB 1.30 (tax inclusive) per 10

shares will be distributed to the shareholders with no bonus issue from either profit or capital reserves.At the end of 2024 the Company reported RMB 787457794.12 in profits available for distribution and RMB

188905507.02 in retained earnings after cash dividends; in 2025 the Company realized a net profit of RMB 726376402.16 and

a surplus reserve of RMB 72637640.22 resulting in profits available for distribution at the end of 2025 reaching RMB

842644268.96; when the profit distribution plan for 2025 is implemented if the total share capital (minus shares in the

Company's repurchase account) on the date of record for the plan remains unchanged which is 3137329478 a cash dividend of

RMB 1.30 (tax inclusive) will be distributed for every 10 shares totaling RMB 407852832.14 and retained earnings after cash

dividends will be RMB 434791436.82; if the total share capital changes due to reasons such as the conversion of convertible

bonds share repurchases stock incentive exercise and the listing of new shares from refinancing before the plan is implemented

the Company will maintain the policy of distributing RMB 0.13 (tax inclusive) per share and adjust the total cash dividends

accordingly.

72Infore Environment Technology Group Co. Ltd. 2025 Annual Report

X. Company's Implementation of Stock Option Incentive Scheme and Employee Stock

Ownership Plan or Other Employee Incentive Measures

□Applicable □ Not Applicable

1. Stock incentive

During the reporting period the Company did not implement any equity incentive plans.Equity incentives granted to directors and senior officers of the Company

□ Applicable□ Not applicable

Appraisal mechanism and incentives for senior officers

The Company has established a sound performance assessment and incentive system. The Board of Directors has the

Remuneration & Appraisal Committee as the administrative agency for the appointment and remuneration appraisal of the senior

officers of the Company which shall be responsible for formulating remuneration standards and schemes for senior officers

reviewing their performance of duties and formulating scientific and reasonable remuneration schemes and submitting to the Board

for review and discussion. The current senior officers of the Company shall be subject to comprehensive performance appraisal

based on their positions the current remuneration policy of the Company the Company's actual operating performance individual

performance performance of duties and achievement of responsibilities and goals and the result of such appraisal shall serve as

the basis to determine their remunerations. The Company pays the remuneration of senior officers based on the schedule. During

the reporting period the senior officers of the Company conscientiously performed their duties in strict accordance with the

Company Law the Articles of Association and the relevant laws and regulations actively implemented relevant resolutions of the

General Meetings of Shareholders and Board meetings and completed tasks of the year in a quite good way.

2. Implementation of the employee stock ownership plan

□Applicable □ Not Applicable

Information on all effective employee stock ownership plans during the reporting period

As a percentage

Source of

Total of the total

Scope of Number of funds to

number of Changes share capital of

employees employees implement

shares held the listed

the plan

company

Directors Employees'

As at May 17 2025 the Company

(excluding legitimate

cumulatively reduced holdings of

independent remuneratio

64789616 shares for its Second

directors) n self-

Employee Stock Ownership Plan by way

supervisors senior raised

of centralized bidding accounting for

officers and funds and

134 0 2.05% of its total share capital. 0.00%

backbone other funds

Accordingly all 64789616 shares held

personnel obtained by

under the Second Employee Stock

(technology means

Ownership Plan were sold by way of

marketing permitted by

centralized bidding and the plan was

production etc.) of laws and

fully implemented.the Company regulations.Directors As at December 31 2025 the Company Employees'

(excluding 160 29713398 cumulatively held 29713398 shares for 0.94% legitimate

independent its Third Employee Stock Ownership Plan remuneratio

73Infore Environment Technology Group Co. Ltd. 2025 Annual Report

directors) by way of centralized bidding accounting n self-

supervisors senior for 0.94% of its total share capital. raised

officers and funds and

backbone other funds

personnel obtained by

(technology means

marketing permitted by

production etc.) of laws and

the Company regulations.Shareholding of directors and senior officers in the employee stock ownership plan during the reporting period

Number of shares held Number of shares held

As a percentage of the

at the beginning of the at the end of the

Name Position total share capital of

reporting period reporting period

the listed company

(shares) (shares)

Ma Gang Chairman & President 17246996 5433416 0.17%

Wang Qingbo Vice President & CFO 4159493 1086683 0.03%

Huang Junjie Board Secretary 51832 326005 0.01%

Changes in the asset management institution during the reporting period

□ Applicable□ Not applicable

Changes in equity arising from disposal of shares by holders during the reporting period

□Applicable □ Not Applicable

During the reporting period after the lock-up period expired the Company sold all 64789616 shares (accounting for 2.05%

of its total share capital at the time) for its Second Employee Stock Ownership Plan by way of centralized bidding from February

17 to May 16 2025. The plan was fully implemented and the actual holding period was consistent with the duration disclosed in

the Second Employee Stock Ownership Plan (Revised Draft). The management committee carried out asset liquidation and

distribution in accordance with the relevant provisions of the Second Employee Stock Ownership Plan (Revised Draft) and the

distribution of rights and interests has been completed.Exercise of shareholders' rights during the reporting period

None.Other relevant circumstances and explanations of the employee stock ownership plan during the reporting period

□ Applicable□ Not applicable

Change of the members of the employee stock ownership plan management committee

□ Applicable□ Not applicable

The financial impact of the employee stock ownership plan on the listed company during the reporting period and relevant

accounting treatment

□ Applicable□ Not applicable

Termination of the employee stock ownership plan during the reporting period

□Applicable □ Not Applicable

During the reporting period the Second Employee Stock Ownership Plan was fully implemented and asset liquidation and

distribution were completed. The returns attributable to participants under the plan have been distributed in proportion to their

74Infore Environment Technology Group Co. Ltd. 2025 Annual Report

allocated shares after deducting relevant expenses. On August 21 2025 the Company convened the 12th meeting of the Tenth

Board of Directors and approved the Proposal on the Early Termination of the Second Phase Employee Stock Ownership Plan

agreeing to terminate the plan ahead of schedule.Other statements:

None.

3. Other employee incentive measures

□Applicable□ Not applicable

XI. Establishment and Implementation of the Internal Control Policy during the Reporting

Period

1. Establishment and implementation of internal control

I. Internal control development

Infore Enviro has established and improved rules and regulations regarding corporate governance and internal control in

accordance with the requirements of the Company Law the Securities Law the Basic Standard for Enterprise Internal Control the

Rules Governing the Listing of Shares on SZSE and other statutory documents. The operations of the General Meeting of

Shareholders and the Board of Directors in Infore Enviro are in compliance with the provisions of the relevant laws regulations

the Articles of Association the Rules of Procedure for the General Meeting of Shareholders and the Rules of Procedure for the

Board of Directors. Corresponding internal management policy with respect to such material issues as financial accounting

fundraising external investment external guarantee related party transactions and information disclosure has been established in

Infore Enviro to ensure the legality and compliance of day-to-day operations and decision-making procedures for material matters.II. Internal control implementation

(I) Execution of information disclosure management policies

Upon verification the Company effectively complied with the Information Disclosure Management Policy in 2025 with

good performance in information disclosure and was not subject to punishments by the securities regulatory authorities for

violation of rules on information disclosure.(II) Implementation of financial internal control policies

Upon verification with respect to finance and accounting the Company has established the relevant internal management

policy in accordance with the requirements of the Accounting Standards for Enterprises the Company Law and other relevant laws

75Infore Environment Technology Group Co. Ltd. 2025 Annual Report

and regulations which can ensure the accuracy and reliability of the financial and accounting information and the security and

effectiveness of the financial and accounting systems.(III) Implementation of other internal control policies

Upon verification Infore Enviro complied with the provisions of the Articles of Association and the relevant rules and regulations

performed necessary decision-making procedures and implemented the internal control policy quite well.

2. Details of material internal control deficiencies identified during the reporting period

□Yes□No

XII. Management and Control of the Company over the Subsidiaries during the Report

Period

Integration Problems in the Resolution Resolution Follow-up

Company name Integration plan

progress integration measures taken progress resolution plan

Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable

Abnormalities exist in the management and control of subsidiaries

□Yes□No

XIII. Assessment Report or Audit Report on Internal Control

1. Internal control assessment report

Date of full disclosure of the internal

April 28 2026

control assessment report

Index to full disclosure of the internal For details please refer to the Internal Control Assessment Report disclosed on

control assessment report Cninfo (http://www.cninfo.com.cn).The total assets of the organization

included in the assessment as a

percentage of the total assets in the 100.00%

Company's consolidated financial

statements

The revenue of the organization included

in the assessment as a percentage of the

100.00%

revenue in the Company's consolidated

financial statements

Deficiency identification criteria

Category Related to financial reporting Unrelated to financial reporting

Material deficiencies: Material deficiencies:

1. Fraud committed by directors and If the likelihood of the deficiency is high

senior officers in relation to financial it could materially impair work

Qualitative criteria reporting; efficiency or effectiveness materially

2. Material misstatement in financial increase uncertainty in outcomes or

statements of the current period result in a material deviation from

identified by CPAs which was not expected targets.

76Infore Environment Technology Group Co. Ltd. 2025 Annual Report

identified in the course of the functioning

of internal controls; Significant deficiencies:

3. Ineffective supervision over internal If the likelihood of the deficiency is

control by the Audit Committee and the medium it could significantly diminish

internal audit agency of the Company; work efficiency or effectiveness

4. Lack of post qualification or obvious significantly increase uncertainty in

incompetence of principal financial outcomes or result in a significant

personnel; and deviation from expected targets;

5. Ineffective compliance supervision

and violations of regulations that could General Deficiencies:

materially affect the reliability of If the likelihood of the deficiency is low

financial statements. it could diminish work efficiency or

effectiveness increase uncertainty in

Significant deficiencies: outcomes or result in a deviation from

1. No anti-fraud procedures and controls expected targets.

have been established;

2. Internal systems for the selection and

application of accounting policy in line

with the generally accepted accounting

standards have not been implemented;

and

3. There are one or more deficiencies in

the controls over the year-end financial

reporting process and it cannot

reasonably ensure that the financial

statements are prepared to achieve the

objectives of authenticity and

completeness.General Deficiencies:

Internal control deficiencies that do not

constitute material deficiencies or

significant deficiencies.Material deficiencies:

1. The potentially misstated amount in

the profit statement is greater than or

Material deficiencies:

equal to 1% of the operating revenue in

Direct property loss amount is greater

the consolidated financial statements of

than or equal to 1% of the Company's

the Company for the most recent fiscal

total assets (latest audited).year or 5% of the total pre-tax profit;

Significant deficiencies:

2. The potentially misstated amount in

Direct property loss amount is greater

the balance sheet is greater than or equal

than or equal to 0.5% of the Company's

Quantitative criteria to 1% of the total assets in the

total assets (latest audited) but less than

consolidated financial statements of the

1% of the Company's total assets (latest

Company for the most recent fiscal year.audited).Significant deficiencies:

General Deficiencies:

Direct property loss amount is less than

1. The potentially misstated amount in

0.5% of the Company's total assets (latest

the profit statement is greater than or

audited).equal to 0.5% of the Company's

operating revenue or 3% of the total pre-

tax profit in the consolidated financial

statements for the most recent fiscal year

77Infore Environment Technology Group Co. Ltd. 2025 Annual Report

but less than 1% of the Company's

operating revenue or 5% of the total pre-

tax profit in the consolidated financial

statements for the most recent fiscal year.

2. The potentially misstated amount in

the balance sheet is greater than or equal

to 0.5% of the total assets in the

consolidated financial statements of the

Company for the most recent fiscal year

but less than 1% of the total assets in the

consolidated financial statements for the

most recent fiscal year.General Deficiencies:

1. The potentially misstated amount in

the profit statement is less than 0.5% of

the Company's operating revenue or 3%

of the total pre-tax profit in the

consolidated financial statements for the

most recent fiscal year;

2. The potentially misstated amount in

the balance sheet is less than 0.5% of the

consolidated total assets of the Company

for the most recent fiscal year.Number of material deficiencies related

0

to financial reporting

Number of material deficiencies

0

unrelated to financial reporting

Number of significant deficiencies

0

related to financial reporting

Number of significant deficiencies

0

unrelated to financial reporting

2. Audit report on internal control

□Applicable □ Not Applicable

The Opinion paragraph in the audit report on internal control

Infore Enviro maintained in all material respects effective internal control related to financial reporting as at December 31 2025

in accordance with the Basic Standard for Enterprise Internal Control and other applicable rules.Disclosure status of the audit report on internal control Disclosure

Disclosure date of the full audit report on internal control April 28 2026

For details please refer to the Internal Control Audit Report

Index to the full audit report on internal control

disclosed on Cninfo (http://www.cninfo.com.cn)

Opinion type of the audit report on internal control Standard unqualified opinion

Whether there are any significant deficiencies in non-financial

No

statements

Whether the accounting firm has issued the audit report with a modified opinion on the Company's internal control

□Yes□No

78Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Whether the auditor's report on the Company's internal control is consistent with the self-assessment report issued by the

Company's Board of Directors

□Yes □No

Whether a non-standard internal control audit opinion was issued in the reporting period or the previous year

□Yes□No

XIV. Rectification of Self-Detected Problems through the Special Campaign to Improve

Governance of Listed Companies

According to the system of the CSRC for filling and reporting the special self-examination list for the governance of listed

companies the Company conducted self-examination work during the special campaign based on facts and in strict accordance

with the Company Law the Securities Law Guidelines No. 1 of SZSE for Self-regulation of Listed Companies—Standardized

Operation of Companies Listed on the Main Board and other relevant laws and regulations as well as its internal rules and

regulations carefully sorted out the issues and filled in the forms. Through this self-examination the Company believes that its

corporate governance complies with the requirements of the Company Law the Securities Law Guidelines No. 1 of SZSE for Self-

regulation of Listed Companies—Standardized Operation of Companies Listed on the Main Board and other laws and regulations

and that its corporate governance structure is sound and functions in a standardized way without material issues or errors. The

Company shall continue to strengthen management in the following areas:

1. Further improving the internal control policy of the Company

The Company shall systematically sort out and improve its corporate governance and internal control in accordance with the

latest laws and regulations and combined with the requirements of the regulatory authorities and its self-examination result further

perfect its internal control policy and implement the corresponding examination and approval procedure on the revised and

improved relevant policies.

2. Further facilitating special committees of the Board to play their roles

During the reporting period the Company maintained special committees in strict accordance with the relevant laws and

regulations and the special committees conducted on-site inspections and supervised and guided the Company's operations

management and the execution of resolutions of the Board of Directors. In the future the Company shall continue to create

conditions for members of the special committees to know well the business of the Company facilitate themselves to play their

roles and provide advice and suggestions on the Company's development planning operations management risk control selection

and engagement of senior officers and back-up personnel performance appraisal of senior officers internal control and internal

audit etc. to further improve the scientific decision-making capacity and risk prevention capacity of the Company.

3. Further improving the quality of information disclosure

79Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The Company shall optimize its policy system in strict accordance with the Administrative System of Information Disclosure

and in combination with its own situation. In day-to-day information disclosure management the Company shall conduct

information disclosure in a concise and easy-to-understand manner on the premise that the Company its shareholders and other

information disclosure obligors shall ensure the authenticity accuracy completeness timeliness and fairness of information

disclosure. The relevant personnel of information disclosure shall treat the information disclosure in a diligent manner prevent

errors and ensure the quality of information disclosure and elevate the level of information disclosure. During the reporting period

the Company and its relevant personnel disclosed information in strict accordance with the requirements of laws and regulations.

4. Further ramping up staff training in laws and regulations

By optimizing internal training programs and increasing training the Company helped its staff better understand laws

regulations and normative documents such as the Securities Law the Rules Governing the Listing of Shares on SZSE and the

Guidelines No. 1 of SZSE for Self-regulation of Listed Companies—Standardized Operation of Companies Listed on the Main

Board. Such training also helped the Company strictly comply with relevant regulations manage its operations in a prudent

manner and prevent violations.XV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises subject to mandatory environmental

information disclosure

□Yes □No

Number of enterprises included in the

list of enterprises subject to mandatory 7

environmental information disclosure

No. Enterprise name Index for querying environmental information disclosure reports

https://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html#/home/enterpriseInfoX

Changsha Zoomlion

1 TXH=e4c64409-3e10-40fb-b132-

Environment Industry Co. Ltd.

3ca2010e9ab4&XH=1676903662860026849280&year=2025&reportType=1

Xiantao Green Oriental

http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/enterpriseInfoXTXH=c6

2 Environmental Power

331051-1c94-4f81-a806-76f580e829a0&XH=1715412916744036462592&year=2025

Generation Co. Ltd.Poyang Green Oriental http://qyhjxxyfpl.sthjt.jiangxi.gov.cn:15004/pilouxiangqingid=52eaf5abfbda4e9da051

3

Renewable Energy Co. Ltd. 7ea986f75eb7

Biyang Fenghe New Energy http://222.143.24.250:8247/enpInfo/enpOverviewenterId=91411726MA45HHKEX40

4

Power Co. Ltd. 01V

https://yfpl.sthjt.hunan.gov.cn:8181/hnyfpl/frontal/index.html#/home/enterpriseInfoX

Changde Zelian Environmental

5 TXH=ff782aa6-5d95-4de5-b3e9-

Service Co. Ltd.

72864269670a&XH=1745995460650084000768&year=2025&reportType=1

Maoming Infore Environment

https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/detailentId=b41f8e6d-55b8-4646-

6 Water Treatment Technology

9218-20e2737fbf11

Co. Ltd.http://111.56.142.62:40010/support-yfpl-

Bairin Right Banner Xingzhou

7 web//web/viewRunner.htmlviewId=http://111.56.142.62:40010/support-yfpl-

Environmental Water Co. Ltd.web//web/sps/views/yfpl/views/disclosure/disclosureInfo.js&versionId=78df1cef-

80Infore Environment Technology Group Co. Ltd. 2025 Annual Report

6c27-4ec8-8e74-

63d40197a074&spCode=1504230200000014&isStopProduction=%E6%AD%A3%E5

%B8%B8&year=2025

XVI. Corporate Social Responsibility

For details please refer to the 2025 Sustainability Report disclosed at Cninfo (www.cninfo.com.cn).XVII. Performance in Consolidating Achievements in Poverty Alleviation and Promoting

Rural Revitalization

During the reporting period the Company participated in donations totaling approximately RMB 6.7142 million.

81Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part V Significant Events

I. Performance of Undertakings

1. Undertakings of the Company's de facto controller shareholders related parties and acquirer as well

as the Company and other commitment makers fulfilled during the reporting period or ongoing at the

period-end

□Applicable □ Not Applicable

Term of un Fulfillment of under

Undertaking Party Type Content Date

dertakings takings

Undertaking to Undertaking to

avoid horizonta avoid horizonta

l competition r l competition r

De facto contro

Undertaking m egulate and red egulate and red

llers He Jianfen It is being properly f

ade at the time uce related part uce related part August 15 201 Indefinitel

g Ningbo Infor ulfilled without brea

of asset restruct y transactions y transactions 8 y

e and Infore Gr ch.uring and maintain in and maintain in

oup

dependence of t dependence of t

he listed compa he listed compa

ny ny

Ningbo Infore

Hongchuang In Undertaking to Undertaking to

Undertaking m vestment Zoo avoid horizonta avoid horizonta

It is being properly f

ade at the time mlion Ningbo l competition r l competition r August 15 201 Indefinitel

ulfilled without brea

of asset restruct Yingtai Ningbo egulate and red egulate and red 8 y

ch.uring Zhongfeng an uce related part uce related part

d Ningbo Liant y transactions y transactions

ai

The accumulati It has not been norm

ve total net prof ally fulfilled. The au

it recorded by L dited net profit (net

ianjiang Green profit is the lower b

Oriental New E efore or after deduct

nergy Co. Ltd. ing non-recurring ga

Xiantao Green ins and losses) for t

Oriental Enviro he period from 2016

nmental Power to 2019 is RMB 21

Green Oriental

Undertaking m Generation Co. 56500 RMB -244

Investment Hol Undertaking rel

ade at the time Ltd. Funan Gr October 14 20 24500 RMB -191

ding Co. Ltd. a ated to perform 48 months

of asset restruct een Oriental En 15 92800 and RMB -6

nd Zheng Weixi ance

uring vironmental En 25700 respectivel

an

ergy Co. Ltd. a y; and the accumula

nd Shouxian Gr ted net profit is RM

een Oriental Ne B -42086600 whic

w Energy Co. h is RMB 1620866

Ltd. from 2016 00 less than the perf

to 2019 shall no ormance commitme

t be less than R nt indicating a failu

MB 120 million re to achieve the co

(net profit is su mmitment in respect

82Infore Environment Technology Group Co. Ltd. 2025 Annual Report

bject to the low of the net profit for

er after deducti 2016-2019.ng non-recurrin

g gains and loss

es).

1. From 2016 to

2019 the newl

y signed waste i

ncineration po

wer generation

BOT agreement

s (subject to the

signing of fran

chise agreemen

t) signed by Gr

een Oriental En

vironmental sha

ll specify a total

daily disposal

capacity of not

less than 6500

It has not been norm

tons (a single pr

ally fulfilled. The ne

oject shall have

wly signed projects

a daily disposa

by Green Oriental E

Green Oriental l capacity of no

Undertaking m nvironmental from

Investment Hol t less than 500 t

ade at the time Project underta October 14 20 2016 to 2019 totaled

ding Co. Ltd. a ons of which at 48 months

of asset restruct kings 15 1400 tons 5100 to

nd Zheng Weixi least one shall

uring ns less than the proj

an be more than 2

ect undertaking. The

000 tons). 2. Jiu

project in Jiujian ha

jiang Company

s not commenced co

shall start const

nstruction.ruction and obt

ain approval be

fore December

31 2020. If it f

ails to start con

struction or the

construction is r

ecovered by the

government it

shall compensat

e the listed com

pany at a consi

deration of no l

ess than RMB 5

million.Whether the un

dertakings were

No

fulfilled on tim

e

On July 18 2022 the High People's Court of Guangdong Province ruled that Green Oriental Investment Holdi

If the undertaki ng Co. Ltd. and Zheng Weixian shall pay the Company RMB 113460600 for non-fulfillment of performance

ng is not fulfille commitment. As at the date of this report the Company received RMB 106222600 in proceeds from enforcem

d on time the s ent of the ruling or RMB 99229300 excluding enforcement fees appraisal fees service fees applicable taxes

83Infore Environment Technology Group Co. Ltd. 2025 Annual Report

pecific reasons and costs. After compulsory enforcement of the equity portion RMB 14.2313 million of performance compens

for non-fulfillm ation remains outstanding. To date the persons subject to enforcement Green Oriental Investment Holding C

ent and the next o. Ltd. and Zheng Weixian have been issued Consumption Restriction Orders by the court. The Company will

steps plan shall continue to take all necessary measures and upon discovery of new asset clues by the court or the Company w

be elaborated ill vigorously pursue recovery and enforcement of the remaining amounts.

2. Where any earnings forecast was made for any of the Company's assets or projects and the reporting

period is still within the forecast period the Company shall explain whether the performance of the asset

or project reaches the earnings forecast and why

□Applicable□ Not applicable

3. The Company involves performance commitments

□Applicable□ Not applicable

II. Occupation of the Company's Capital by the Controlling Shareholder or Other Related

Parties for Non-Operating Purposes

□Applicable□ Not applicable

No such cases during the reporting period.III. Illegal Provision of Guarantees for External Parties

□Applicable□ Not applicable

No such cases during the reporting period.IV. Explanations Given by the Board of Directors Regarding the "Modified Audit Opinion"

for the Latest Period

□Applicable□ Not applicable

V. Explanation of the Board of Directors and Independent Directors (If Any) Regarding the

"Modified Audit Opinion" for the Reporting Period

□Applicable□ Not applicable

VI. Reason for Changes in Accounting Policies Accounting Estimates or Corrections of

Material Accounting Errors as Compared to the Financial Statements for the Prior Year

□Applicable□ Not applicable

During the reporting period there were no changes in accounting policies accounting estimates or corrections of material

accounting errors.

84Infore Environment Technology Group Co. Ltd. 2025 Annual Report

VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to

the Financial Statements for the Prior Year

□Applicable □ Not Applicable

For details of the changes in the scope of the consolidated financial statements during the reporting period please refer to Note 9

"Changes in the Scope of Consolidation" in X Financial Report.VIII. Engagement and Disengagement of Accounting Firm

Current accounting firm

Pan-China Certified Public Accountants LLP (Special General

Name of the domestic accounting firm

Partnership)

The Company's payment to the domestic accounting firm (in

315

RMB 10000)

Consecutive years of the domestic audit service provided by the

24

accounting firm

Names of the domestic certified public accountants from the

Lin Wang and Cao Cuijuan

accounting firm

Consecutive years of audit service provided by domestic

2 years and 2 years respectively

certified public accountants from the accounting firm

Whether the accounting firm was changed during the current period

□Yes□No

Engagement of any accounting firm for internal control audit financial advisor or sponsor

□Applicable □ Not Applicable

During the year Pan-China Certified Public Accountants LLP (Special General Partnership) was appointed as the Company's

internal control auditor and Huaxing Securities Co. Ltd. was appointed as the Company's sponsor.IX. Possibility of Delisting after the Disclosure of This Report

□Applicable□ Not applicable

X. Bankruptcy and Reorganization

□Applicable□ Not applicable

No such cases during the reporting period.XI. Material Litigation and Arbitration

□Applicable□ Not applicable

During the reporting period other lawsuits that did not meet the disclosure criteria for material litigation primarily included

purchase and sales contract disputes with a total amount of approximately RMB 447 million including RMB 372 million as

plaintiff and RMB 74 million as defendant. They are not expected to incur any provision of large amount.

85Infore Environment Technology Group Co. Ltd. 2025 Annual Report

XII. Punishments and Rectifications

□Applicable □ Not Applicable

Type of

investigati Disclosure

Name Type Reason Conclusion (if any) Index to disclosure

on and date

penalty

Infore

In 2022 proceeds were For details please refer to

Environmen

Administr used to pay for non- the Announcement on

t Non-

ative investment projects and Receiving a Warning Letter

Technology compliant

regulatory were returned to the from Zhejiang CSRC

Group Co. Senior use of

measures dedicated account in the March 1 2025 Bureau (Announcement No.Ltd. Ma officers fundraisin

imposed same year. In addition the 2025-006) disclosed on

Gang Jin g

by the Company commingled Cninfo

Taotao proceeds.CSRC proceeds with its own (www.cninfo.com.cn) on

Wang

funds. March 1 2025.Qingbo

Description of rectifications

□Applicable □ Not Applicable

In 2022 the Company identified that proceeds had been used for expenditures unrelated to the designated investment projects.Upon identifying the issue the Company immediately returned the proceeds to the designated proceeds account within the same

year and organized relevant personnel to relearn the Fundraising Proceeds Management System requiring thorough understanding

to ensure strict compliance in subsequent use of proceeds.As the entity responsible for fundraising proceeds the Company has always strictly followed investment project requirements

and the principle of dedicated use of funds in designated accounts. For Guangdong Infore Urban Service Intelligent Technology

Co. Ltd. a wholly owned subsidiary of the Company as the entity for project implementation its general account used for

fundraising proceeds also receives other funds in addition to fundraising proceeds and fails to fully meet the management

requirement of only receiving fundraising proceeds. In response the Company will comprehensively review and standardize the

use of existing accounts supplement and execute a Four-Party Supervision Agreement for Fundraising Proceeds align

implementation accounts with the standards of dedicated proceeds accounts strictly enforce exclusive use and ensure compliance

and security in proceeds utilization.The Company and relevant personnel attach great importance to this issue have carefully drawn lessons and will further

strengthen the study and implementation of the Administrative Measures for Information Disclosure of Listed Companies

Guidelines for the Supervision of Listed Companies No. 2 - Supervision Requirements for the Management and Use of the

Proceeds of the Listed Companies and other relevant laws and regulations strictly improve standardized operations in accordance

with regulatory requirements fulfill information disclosure obligations in compliance with laws and prevent recurrence of similar

issues.

86Infore Environment Technology Group Co. Ltd. 2025 Annual Report

XIII. Credit Standing of the Company as well as Its Controlling Shareholder and De Facto

Controller

□Applicable □ Not Applicable

During the reporting period the Company as well as its controlling shareholder and de facto controller had good credit standing

with no such cases as non-fulfillment of effective court judgments or outstanding debts of large amounts due and unpaid.XIV. Material Related Party Transactions

1. Related party transactions in relation to day-to-day operations

□Applicable □ Not Applicable

Availa

Pricin As a Appro

ble

Type Conte g Trans perce ved

marke

Relate of nts of princi action ntage transa

Over Metho t price Index

Relate d relate relate ple of Trans amou of ction Disclo

appro d of for to

d party d d relate action nt (in transa limit sure

ved settle transa disclo

party relatio party party d price RMB ctions (in date

limit ment ctions sure

nship transa transa party 1000 of the RMB

of the

ction ction transa 0) same 1000

same

ction type 0)

type

Share

holder

holdin

Zoom g As http://

lion more Goods Goods per April www.Marke 7855. 8050.Heavy than transa transa -- No contra -- 25 cninfo

t price 12 00

Indust 5% of ctions ctions ctual 2025 .com.ry the terms cn

Comp

any's

shares

7855.8050.

Total -- -- -- -- -- -- -- --

1200

Details of any large-amount sales

None

return

Give the actual fulfillment

situation during the reporting Before the Company's routine related party transactions in 2025 subsidiaries

period (if any) where an estimate comprehensively assessed and estimated their related party transactions. However due to

by type had been made for the changes in the market and customer demand there were differences between the Company's

total amounts of routine related related party transactions and the actual situation. This was regular business activity and had

party transactions to occur during minimal impact on day-to-day operations and performance.the period

Reason for any significant

difference between the transaction

Not applicable

price and the market reference

price (if applicable)

87Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2. Related party transactions regarding purchase or sales of assets or equity interests

□Applicable □ Not Applicable

Carryin

Apprais

g

Pricing ed

Content amount Gain or

Type of principl value of Transfe

Related s of of Method loss on Index

related e of transfer r price

Related party related transfer of transact Disclos to

party related red (in

parties relation party red settlem ion (in ure date disclos

transact party assets RMB

ship transact assets ent RMB ure

ion transact (in 10000)

ion (in 10000)

ion RMB

RMB

10000)

10000)

1.40%

equity

Determ

of

Former ined

Zhejian

Vice based

g http://w

Preside Equity on Cash April

Jin Shangf ww.cni

nt & acquisit asset- 555.21 753.56 721.00 paymen 0 25

Taotao eng nfo.co

Board ion based t 2025

Special m.cn

Secreta valuatio

Blower

ry n

Industri

results

al Co.Ltd.Reasons for any significant difference

between the transfer price and the Not applicable

carrying/appraised amount (if any)

Impact on the Company's operating No material impact on the Company's production operation and performance is

results and financial situation expected

Where performance commitments are

involved in the related transactions

Not applicable

performance realization during the

reporting period

3. Related party transactions regarding joint investments in external parties

□Applicable□ Not applicable

No such cases during the reporting period.

4. Current associated rights of credit and liabilities

□Applicable □ Not Applicable

Whether there are current associated rights of credit and liabilities for non-operating purpose

□Yes □No

Current associated rights of credit receivable

Related Whether Opening Amount Amount Interest in Ending

Related party balance Interest balance

Causes there is a newly recovered the

parties relationsh non- (in RMB added in in the rate current (in RMB

ip operating 10000) the current period (in 10000)

88Infore Environment Technology Group Co. Ltd. 2025 Annual Report

fund current period (in RMB

occupatio period (in RMB 10000)

n RMB 10000)

10000)

Guangdo

Passively

ng

formed by

Xingzhou

transferri As agreed

Water Former

ng the Yes 0 50398.53 0 in the 0 50398.53

Treatment subsidiary

equity of contract

Technolo

the

gy Co.subsidiary

Ltd.Impact of related party

creditor's rights on the

Company's operating It has no significant impact.results and financial

situation

Current associated rights of liabilities payable

□ Applicable□ Not applicable

5. Transactions with finance companies with related party relationships

□Applicable □ Not Applicable

Deposit business

Amount of the current period

Maximum

Opening Ending

daily deposit Total Total

Related Related party Range of balance (in

limit (in deposited withdrawn

balance (in

parties relationship deposit rate RMB

RMB amount (in amount (in

RMB

10000) RMB RMB 10000)10000)

10000)10000)

Affiliated

company of a

shareholder

Zoomlion

holding more

Finance Co. 0 Interest-free 31 31

than 5% of

Ltd.the

Company's

shares

Loan business

□ Applicable□ Not applicable

Credit or other financial business

□ Applicable□ Not applicable

6. Transactions between the finance company controlled by the Company and related parties

□Applicable□ Not applicable

There is no deposit loan credit or other financial business between the finance company controlled by the Company and related

parties.

89Infore Environment Technology Group Co. Ltd. 2025 Annual Report

7. Other material related party transactions

□Applicable□ Not applicable

No such cases during the reporting period.XV. Material Contracts and Execution Thereof

1. Trusts subcontracts and leases

(1) Trusts

□Applicable□ Not applicable

No such cases during the reporting period.

(2) Subcontracts

□Applicable□ Not applicable

No such cases during the reporting period.

(3) Leases

□Applicable □ Not Applicable

Description of leases

In accordance with the Property Lease Contract signed between the Company and the related party Foshan Shunde Yinghai

Investment Co. Ltd. the Company leased the 23rd floor of Yingfeng Business Building at 8 Yixing Road Junlan Community

Beijiao Town Shunde District Foshan City as the business premises with a gross floor area of 1578.68 sqm. The rent payable for

2025 was RMB 1335400 and the actual payment was RMB 1335400. As at December 31 2025 the above amounts have been

settled.Items that brought profits or losses to the Company accounting for more than 10% of the gross profit of the Company during the

reporting period

□ Applicable□ Not applicable

No leasing items brought profits or losses to the Company accounting for more than 10% of the gross profit of the Company

during the reporting period.

2. Material guarantees

□Applicable □ Not Applicable

Unit: RMB 10000

Guarantees provided by the Company and its subsidiaries for external parties (excluding those for subsidiaries)

Disclosu Guarante

Guarant re date Actual Actual Counter Comple e for a

of the Guarante Guarant Collatera Term ofeed occurre guarante guarante ted or related

party guarante

e limit ee type l (if any) guarantee

nce date e amount e (if any) not party or

e limit not

announc

90Infore Environment Technology Group Co. Ltd. 2025 Annual Report

ement

Joint

and

Buyer's

April 25 July 4 several

credit 1823.66 1823.66 None -- 3 years No No

2025 2024 liability

business

guarante

e

Joint

and

Buyer's Septem

April 25 several

credit 189.38 ber 18 189.38 None -- 1 year No No

2025 liability

business 2022

guarante

e

Joint

and

Buyer's June

April 25 several

credit 934.23 30 934.23 None -- 3 years No No

2025 liability

business 2021

guarante

e

Joint

and

Buyer's Septem

April 25 several

credit 6254.32 ber 11 6254.32 None -- 2 years No No

2025 liability

business 2024

guarante

e

Buyer's

April 25

credit 40798.41 0 -- -- --

2025

business

Total approved limit

Total actual amount

for external

of external guarantee

guarantee during the 50000 9201.59

during the reporting

reporting period

period (A2)

(A1)

Total approved limit Total actual balance

for external of external guarantee

guarantee at the end 50000 at the end of the 9201.59

of the reporting reporting period

period (A3) (A4)

Guarantees provided by the Company to subsidiaries

Disclosu

re date Guarante

Guarant of the Actual Actual Counter Comple e for a

Guarante Guarant Collatera Term of

eed guarante occurre guarante guarante ted or related

e limit ee type l (if any) guarantee

party e limit nce date e amount e (if any) not party or

announc not

ement

Zhejiang

Shangfe Joint

ng and

Februar

Special April 25 10268.8 several

28600 y 3 None -- 3 years No Yes

Blower 2025 4 liability

2023

Industria guarante

l Co. e

Ltd.

91Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Zhejiang

Shangfe Joint

ng and

May

Special April 25 several

24000 22 7415.54 None -- 2 years No Yes

Blower 2025 liability

2025

Industria guarante

l Co. e

Ltd.Zhejiang

Shangfe Joint

ng and

October

Special April 25 several

30000 31 14350 None -- 1 year No Yes

Blower 2025 liability

2023

Industria guarante

l Co. e

Ltd.Zhejiang

Shangfe Joint

ng and

Special April 25 July 11 21341.0 several

25000 None -- 1 year No Yes

Blower 2025 2025 3 liability

Industria guarante

l Co. e

Ltd.Zhejiang

Shangfe Joint

ng and

Februar

Special April 25 several

10000 y 28 4115.77 None -- 1 year No Yes

Blower 2025 liability

2024

Industria guarante

l Co. e

Ltd.Zhejiang

Shangfe Joint

ng and

October

Special April 25 several

20000 29 7283.62 None -- 2 years No Yes

Blower 2025 liability

2025

Industria guarante

l Co. e

Ltd.Zhejiang

Shangfe Joint

ng and

Special April 25 July 15 several

14000 567.99 None -- 1 year No Yes

Blower 2025 2025 liability

Industria guarante

l Co. e

Ltd.Guangd Joint

ong and

August

Infore April 25 several

144.95 16 144.95 None -- 1 year No Yes

Technol 2025 liability

2023

ogy Co. guarante

Ltd. e

Guangd April 25 April 9 Joint

155.6 155.6 None -- 1 year No Yes

ong 2025 2024 and

92Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore several

Technol liability

ogy Co. guarante

Ltd. e

Xiantao

Green

Joint

Oriental

and

Environ June

April 30 several

mental 27870 27 21730 None -- 13 years No Yes

2022 liability

Power 2022

guarante

Generati

e

on Co.Ltd.Poyang

Joint

Green

and

Oriental April

August several

Renewa 25000 24 20000 None -- 10 years No Yes

25 2022 liability

ble 2023

guarante

Energy

e

Co. Ltd.Maomin

g Infore

Environ Joint

ment and

Decemb March

Water several

er 26 15000 20 7449.05 None -- 15 years No Yes

Treatme liability

20172018

nt guarante

Technol e

ogy Co.Ltd.Lu'an

Zhongfe Joint

ng and

Urban April 23 June 8 several

8000 6800 None -- 13 years No Yes

Environ 2021 2021 liability

mental guarante

Service e

Co. Ltd.Xiantao

Joint

Yinghe

and

Environ January

August several

mental 30100 20 8900 None -- 15 years No Yes

21 2020 liability

Protectio 2021

guarante

n Co.e

Ltd.Biyang Joint

Fenghe and

May

New April 25 several

22000 23 19130 None -- 14 years No Yes

Energy 2023 liability

2023

Power guarante

Co. Ltd. e

Xiangta Joint

n and

April 30 July 5

Yinglian 15000 3460 several None -- 10 years No Yes

20222022

Environ liability

mental guarante

93Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Industry e

Co. Ltd.Huai'an

Joint

Yinghe

and

Environ Decem

August several

ment 15000 ber 26 5222 None -- 15 years No Yes

25 2022 liability

Technol 2022

guarante

ogy Co.e

Ltd.Infore

Joint

Zoomlio

and

n Urban Decem

April 25 several

Environ 3000 ber 10 461.55 None -- 1 year No Yes

2025 liability

mental 2023

guarante

Service

e

Co. Ltd.Yongshu

n

Zhongfe Joint

ng and

June

Jingtou April 29 several

3000 28 949 None -- 15 years No Yes

Environ 2024 liability

2024

mental guarante

Technol e

ogy Co.Ltd.Hubei Joint

Fenghe and

Septem

New April 29 several

15000 ber 27 3531.67 None -- 15 years No Yes

Material 2024 liability

2024

s Co. guarante

Ltd. e

Liling

Zhaoyan Joint

g and

Environ April 29 April 7 several

48000 10000 None -- 2 years No Yes

mental 2024 2025 liability

Protectio guarante

n Co. e

Ltd.Zhejiang

Joint

Yolsh

and

Electric April

April 25 several

Drive 3000 17 300 None -- 4 years No Yes

2025 liability

Technol 2025

guarante

ogy Co.e

Ltd.Joint

Changsh

and

a Infore June

April 25 several

New 5000 25 903.63 None -- 5 years No Yes

2025 liability

Energy 2025

guarante

Co. Ltd.e

Changde June Joint

April 25

Zelian 10000 24 9800 and None -- 12 years No Yes

2025

Environ 2025 several

94Infore Environment Technology Group Co. Ltd. 2025 Annual Report

mental liability

Service guarante

Co. Ltd. e

Liling

Zhaoyan Joint

g and

Novem

Environ October several

49000 ber 7 10000 None -- 16 years No Yes

mental 30 2025 liability

2025

Protectio guarante

n Co. e

Ltd.Guangd

ong

Joint

Infore

and

Intellige Decemb Decem

several

nt er 13 230000 ber 30 229500 None -- 1 year No Yes

liability

Cleaning 2025 2025

guarante

Technol

e

ogy Co.Ltd.Shouxia

n Green

Oriental April 30

9221------

New 2022

Energy

Co. Ltd.Lianjian

g Green

Oriental April 30

8800------

New 2022

Energy

Co. Ltd.Lianjian

g Green

Oriental April 30

13781.5------

New 2022

Energy

Co. Ltd.Guangd

ong

Infore

Smart

April 25

Sanitatio 5000 -- -- --

2025

n

Technol

ogy Co.Ltd.Changsh

a

Zhongbi

ao April 25

5000------

Environ 2025

mental

Industry

Co. Ltd.Zhejiang April 25 48400 -- -- --

95Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Shangfe 2025

ng

Special

Blower

Industria

l Co.Ltd.Zhejiang

Yolsh

Electric

April 25

Drive 3000 -- -- --

2025

Technol

ogy Co.Ltd.Guangd

ong

Infore April 25

5699.45------

Technol 2025

ogy Co.Ltd.Guangd

ong

Infore

Intellige

April 25

nt 5000 -- -- --

2025

Cleaning

Technol

ogy Co.Ltd.Guangd

ong

Infore

Low-

carbon April 25

10000------

Recyclin 2025

g

Technol

ogy Co.Ltd.Yongshu

n

Zhongfe

ng

Jingtou April 25

3000------

Environ 2025

mental

Technol

ogy Co.Ltd.Tongsha

n

County

April 25

Tongda 5000 -- -- --

2025

Water

Treatme

nt

96Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Technol

ogy Co.Ltd.Tongsha

n

County

Xingzho

u Water April 25

5000------

Treatme 2025

nt

Technol

ogy Co.Ltd.Changde

Zelian

Environ April 25

2000------

mental 2025

Service

Co. Ltd.Lu'an

Zhongfe

ng

Urban October

6950------

Environ 30 2025

mental

Service

Co. Ltd.Liling

Zhaoyan

g

Environ October

1000------

mental 30 2025

Protectio

n Co.Ltd.Guangd

ong

Infore

Intellige Decemb

nt er 13 10000 -- -- --

Cleaning 2025

Technol

ogy Co.Ltd.Other

holding April 25

10000------

subsidiar 2025

ies

Total approved guarantee limit for

Total actual guarantee amount for subsidiaries

subsidiaries during the reporting 576950 316608.52

during the reporting period (B2)

period (B1)

Total approved guarantee limit for Total actual guarantee balance for

subsidiaries at the end of the 832722.5 subsidiaries at the end of the reporting period 423780.24

reporting period (B3) (B4)

Guarantees between subsidiaries

97Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Disclosu

re date Guarante

Guarant of the Actual Actual Counter Comple e for a

Guarante Guarant Collatera Term of

eed guarante occurre guarante guarante ted or related

e limit ee type l (if any) guarantee

party e limit nce date e amount e (if any) not party or

announc not

ement

Total approved guarantee limit for

Total actual guarantee amount for subsidiaries

subsidiaries during the reporting 0 0

during the reporting period (C2)

period (C1)

Total approved guarantee limit for Total actual guarantee balance for

subsidiaries at the end of the 0 subsidiaries at the end of the reporting period 0

reporting period (C3) (C4)

Total guarantee amount (total of the three kinds above)

Total approved guarantee limit

Total actual guarantee amount during the

during the reporting period 626950 325810.11

reporting period (A2+B2+C2)

(A1+B1+C1)

Total approved guarantee limit at

Total actual guarantee balance at the end of

the end of the reporting period 882722.5 432981.83

the reporting period (A4+B4+C4)

(A3+B3+C3)

Total guarantee balance (A4+B4+C4) as a percentage of the Company's net assets 25.20%

Of which:

Amount of guarantees provided for shareholders the de

0

facto controller and their related parties (D)

Balance of debt guarantees provided directly or indirectly

for the guaranteed party with a liability-to-asset ratio over 317921.82

70% (E)

Amount of the total guarantee exceeding 50% of net

0

assets (F)

Total of the three types of guarantees above (D+E+F) 317921.82

Description of any cases during the reporting period

where unexpired guarantee contracts led to guarantee

liability or had indications that the Company may assume None

joint and several liabilities for compensation (if

applicable)

Explanation of any violation of the prescribed procedures

None

in providing guarantees to external parties (if applicable)

Description of composite guarantees

□ Applicable□ Not applicable

3. Entrusted cash management

(1) Entrusted wealth management

□Applicable □ Not Applicable

Overview of entrusted wealth management during the reporting period

Unit: RMB 10000

98Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Balance of entrusted wealth

Product category Risk characteristics management during the Unrecovered overdue amount

reporting period

Bank's wealth management

Medium to low risk 152025.56 0

product

Specific details of asset management entrusted by the Company as a single principal to financial institutions or high-risk entrusted

wealth management with low security and low liquidity

□ Applicable□ Not applicable

(2) Entrusted loans

□Applicable□ Not applicable

No such cases during the reporting period.

4. Other material contracts

□Applicable□ Not applicable

No such cases during the reporting period.XVI. Use of proceeds from fundraising activities

□Applicable □ Not Applicable

1. Overall use of proceeds

□Applicable □ Not Applicable

Unit: RMB 10000

As a

perce Total

ntage amou

Accu Share

of nt of

Total Accu mulati of

proce proce Purpo

amou mulati ve accum Total Proce

Net eds eds se and

Listin Total nt of ve amou ulativ amou eds

amou used with tracki

Fundr g date amou proce amou nt of e nt of left

nt of at the chang ng of

Year aising of nt of eds nt of proce proce unuse idle

proce end of e of unuse

type securi proce used proce eds eds d for

eds the use d

ties eds during eds with with proce over 2

(1) report during proce

the used chang chang eds years

ing the eds

period (2) e of e of

period report

use use

(3) = ing

(2) / period

(1)

Public RMB

offeri 256.7

Nove

ng of 558

mber 1476 1457 8511. 5061 34.73 9605 9605

2020 conve 0 0 0.00% millio

418.9633.62226.19%6.206.20

rtible n of

2020

corpor tempo

ate rarily

99Infore Environment Technology Group Co. Ltd. 2025 Annual Report

bonds idle

fundra

ising

proce

eds

was

used

for

tempo

rary

replen

ishme

nt of

worki

ng

capita

l; the

other

unuse

d

proce

eds of

RMB

703.8

062

millio

n

were

kept

in the

design

ated

proce

eds

accou

nt in

the

form

of

dema

nd

deposi

ts to

be

used

for

the

constr

uction

of the

corres

pondi

ng

invest

ment

projec

100Infore Environment Technology Group Co. Ltd. 2025 Annual Report

ts.

147614578511.506134.7396059605

Total -- -- 0 0 0.00% --

18.9633.62226.19%6.206.20

Explanation of the overall use of proceeds:

According to the Approval of the Public Offering of Convertible Corporate Bonds by Infore Environment Technology Group

Co. Ltd. (Z.J.X.K. [2020] No. 2219) issued by the CSRC the lead underwriter of the Company Huaxing Securities Co. Ltd.(formerly known as Huajing Securities hereinafter "Huaxing Securities") issued 14761896 convertible corporate bonds ("CBs")

to the public with the offering price of RMB 100 and a par value of RMB 100 for each CB raising a total of RMB 1476189600.Specifically priority allotment of 9405386 CBs were issued to original shareholders of the Company accounting for 63.71% of

the total amount of this public offering; 5304730 CBs were issued to public investors through online channels accounting for

35.94% of the total amount of this public offering; 51780 CBs were to be underwritten by the lead underwriter accounting for

0.35% of the total amount of this public offering. Proceeds in this offering had been remitted to the Company's raised fund

supervision account by the lead underwriter Huaxing Securities on November 10 2020 and the amount actually received after

deducting RMB 15238100 of underwriting and sponsorship fees (tax exclusive) was RMB 1460951500. After deducting RMB

3615300 (tax exclusive) of external fees that were directly related to CB such as online offering expenses printing fee for the

prospectus fees of the reporting accountant counsel fee credit rating fee information disclosure expenses and issuance

commission fee the net amount of proceeds from this offering was RMB 1457336200. The availability of the above-mentioned

proceeds has been verified by Pan-China Certified Public Accountants LLP in its Capital Verification Report (T.J.Y. [2020]

No.490).As at December 31 2025 the accumulated use of fundraising proceeds was RMB 506.1619 million and the total amount of

fundraising proceeds not yet used was RMB 960.5620 million.

2. Projects with committed investment of proceeds

□Applicable □ Not Applicable

Unit: RMB 10000

Com Whet Inves Accu Inves Date Bene Cum Whet

mitte her Whettment mulat tment when fits ulativ her

Nam Adju her

Listin d projec Total amou ive progr the realiz e there

e of inves sted theg Proje ts amo nt inves ess as proje ed benef are

the

date tment ct have

total

unt durin tment at the cts durin its

estim mater

finan

of proje natur been

inves

of g the amou end are

ated

g the realiz ial

cing cts chang tment retursecur e proc repor nt as of the ready repor ed as chan

proje

ities and ed

amou n is

eeds ting at the repor for ting at the ges in

ct inves (inclu nt (1) realizperio end ting their perio end the

tment ding d of the perio inten d of the

ed proje

of partial repor d ded repor ct

101Infore Environment Technology Group Co. Ltd. 2025 Annual Report

exces chang ting (3)=( use ting feasi

sive e) perio 2)/(1) perio bility

proce d (2) d

eds

Committed investment projects

The The

proje proje

ct of ct of

the the

comp comp

Oper

rehen Nove rehen Dece

ation 129 Not

sive mber sive 1296 8511 3452 26.63 mber 6558 2773

mana No 638. appli No

smart 4 smart 38.49 .22 1.06 % 31 .23 9.74

geme 49 cable

sanita 2020 sanita 2026

nt

tion tion

alloc alloc

ation ation

cente cente

r r

Reple Reple Reple

No No

nish nish nish

benef benef

ment Nove ment ment

160 Not it it Not

of mber of of 1609 1609 100.0

No 95.1 0 appli gener gener appli No

opera 4 opera worki 5.13 5.13 0%

3 cable ated ated cable

ting 2020 ting ng

separ separ

capit capit capit

ately ately

al al al

145

Subtotal of committed 1457 8511 5061 6558 2773

--733.--------

investment projects 33.62 .22 6.19 .23 9.74

62

Investment of excessive proceeds

Not applicable

145

14578511506165582773

Total -- 733. -- -- -- --

33.62.226.19.239.74

62

On April 26 2024 the Proposal on the Delay of Part of the Projects of Proceeds

from the Public Issuance of A-share Convertible Corporate Bonds was deliberated

and approved at the sixth meeting of the Tenth Board of Directors and the sixth

meeting of the Tenth Board of Supervisors. The Company agreed to adjust the

Project-by-project details and reasons for investment progress by changing the date for the intended use of the above projects

failure to realize planned progress and to December 31 2026. The adjustment was made because the investment progress of

expected return (including the reasons for the project of the comprehensive smart sanitation allocation center was mainly based

choosing "N/A" for "Whether the on the current business size of the Company's sanitation service projects. The

expected return is realized") project's investment progress fell short of expectations due to the impact of the

overall decline in demand for sanitation equipment and the designation of or

restrictions on sanitation equipment suppliers for some projects on the number of

orders. Therefore the Company planned to adjust the project's investment progress

to ensure the quality and full use of proceeds.Explanations of the material changes in

None

the project feasibility

Amount purpose and progress of

Not applicable

excessive proceeds

Instances of unauthorized changes in the Not applicable

use of proceeds and misappropriation of

102Infore Environment Technology Group Co. Ltd. 2025 Annual Report

proceeds

Location changes in the implementation

Not applicable

of investment projects of the proceeds

Adjustments to the implementation

method of investment projects of the Not applicable

proceeds

Early investment and placement of the

Not applicable

investment projects of the proceeds

Applicable

The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working

Capital was deliberated and approved at the fourth meeting of the Tenth Board of

Directors and the fourth meeting of the Tenth Board of Supervisors held on October

28 2024 allowing the Company to use idle fundraising proceeds of no more than

RMB 900 million for temporary replenishment of working capital which shall be

used for the production and operation related to its principal business with a tenor of

no more than 12 months as at the date when the Proposal was deliberated and

approved by the Board of Directors. The Company has returned all the RMB 900

million of fundraising proceeds used to temporarily replenish working capital to the

Temporary replenishment of working relevant special account for raised funds on October 24 2025 and the usage period

capital with idle proceeds did not exceed 12 months.The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working

Capital was deliberated and approved at the thirteenth meeting of the Tenth Board of

Directors and the eleventh meeting of the Tenth Board of Supervisors held on

October 28 2025 allowing the Company to use idle fundraising proceeds of no more

than RMB 900 million for temporary replenishment of working capital which shall

be used for the production and operation related to its principal business with a tenor

of no more than 12 months as at the date when the Proposal was deliberated and

approved by the Board of Directors. As at December 31 2025 the amount of idle

proceeds used for temporary replenishment of working capital was RMB 256.7558

million.The amount of and reasons for the

balance of the proceeds from the project Not applicable

implementation

The Proposal on Using Part of the Idle Fundraising Proceeds to Replenish Working

Capital was deliberated and approved at the thirteenth meeting of the Tenth Board of

Directors and the eleventh meeting of the Tenth Board of Supervisors held on

October 28 2025 allowing the Company to use idle fundraising proceeds of no more

than RMB 900 million for temporary replenishment of working capital which shall

Purpose and tracking of the unused be used for the production and operation related to its principal business with a tenor

proceeds of no more than 12 months as at the date when the Proposal was deliberated and

approved by the Board of Directors. As at December 31 2025 the balance of idle

proceeds used for temporary replenishment of working capital was RMB 256.7558

million. the other unused proceeds of RMB 703.8062 million were kept in the

designated proceeds account in the form of demand deposits to be used for the

construction of the corresponding investment projects.The Company has the behavior of commingling the proceeds account with its own

funds. For Guangdong Infore Urban Service Intelligent Technology Co. Ltd. a

subsidiary of the Company as the entity for project implementation its general

account used for fundraising proceeds also receives other funds in addition to

Problems in the use of proceeds and

fundraising proceeds and fails to fully meet the management requirement of only

disclosure or other cases

receiving fundraising proceeds. In response to this situation the Company and its

subsidiary Guangdong Infore Urban Service Intelligent Technology Co. Ltd. ceased

using such accounts to receive other funds in 2025 transferred prior balances not

belonging to fundraising proceeds to general accounts on February 28 2025 and

103Infore Environment Technology Group Co. Ltd. 2025 Annual Report

signed a supplementary Four-party Supervision Agreement on Fundraising Proceeds

with Industrial and Commercial Bank of China Limited Foshan Beijiao Sub-branch

and Huaxing Securities Co. Ltd. in March 2025 to ensure the special account storage

and special use of proceeds.

3. Changed projects of proceeds

□Applicable□ Not applicable

No such cases during the reporting period.

4. Verification opinions of intermediary institutions on the storage and use of proceeds

□Applicable □ Not Applicable

Upon verification the sponsor believes that under its supervision and urging the Company has timely rectified and corrected

irregularities in the use of proceeds and such issues have not caused significant adverse impact on the use of proceeds. The

rectification measures have been effectively implemented. Except for the above there were no other violations in the storage and

use of fundraising proceeds by the Company. Infore Enviro's management storage and utilization of proceeds in 2025 comply

with relevant laws and regulations including the Regulatory Rules for Proceeds of Listed Companies the Rules Governing the

Listing of Shares on SZSE and the Guidelines No. 1 of SZSE for Self-regulation of Listed Companies—Standardized Operation of

Companies Listed on the Main Board. The sponsor will urge the Company to strictly comply with laws regulations and regulatory

requirements rigorously implement its proceeds use system strengthen supervision of the use of proceeds and protect the

legitimate interests of the Company and all shareholders.XVII. Other Material Events

□Applicable□ Not applicable

No such cases during the reporting period.XVIII. Material Events of Subsidiaries

□Applicable □ Not Applicable

1. The Company convened the 10th meeting of the Tenth Board of Directors on April 24 2025 and reviewed and approved

the Proposal on Acquiring Partial Equity in a Holding Subsidiary and Related Party Transaction. The Company agreed to acquire

8.97% equity in Zhejiang Shangfeng Special Blower Industrial Co. Ltd by cash . (including 1.07% held by Shaoxing Heyin

Enterprise Management Partnership 5.00% held by Mr. Li Deyi 1.50% held by Ms. He Yibo and 1.40% held by Mr. Jin Taotao).Upon completion of this transaction the Company holds 69.17% equity in Zhejiang Shangfeng Special Blower Industrial Co. Ltd..The industrial and commercial registration change was completed on June 23 2025.

104Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2. Pursuant to the Proposal on the Public Listing and Transfer of 100% Equity in a Wholly Owned Subsidiary and Related

Creditor's Rights Resulting in Passive Financial Assistance deliberated and approved by the 16th extraordinary meeting of the

Tenth Board of Directors dated December 30 2025 CEVIA Enviro Inc. acquired 100% equity of Guangdong Xingzhou Water

Treatment Technology Co. Ltd. a wholly-owned subsidiary of the Company at the consideration of RMB 499.7122 million. The

industrial and commercial registration change was completed on December 30 2025.

105Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part VI Share Changes and Shareholder Information

I. Share Changes

1. Share changes

Unit: Share

Material Events of

Material Events of Subsidiaries After change

Subsidiaries

Shares as Shares as

New dividend dividend Sub-

Quantity Ratio Others Quantity Ratio

issues converted converted from total

from profit capital reserves

I. Restricted Shares 1507700 0.05% 0 0 0 0 0 1507700 0.05%

1. Shares held by

00.00%0000000.00%

the State

2. Shares held by

state-owned 0 0.00% 0 0 0 0 0 0 0.00%

corporations

3. Shares held by

other domestic 1507700 0.05% 0 0 0 0 0 1507700 0.05%

investors

Including:

Shares held by

00.00%0000000.00%

domestic

corporations

Shares held by

domestic 1507700 0.05% 0 0 0 0 0 1507700 0.05%

individuals

4. Shares held by

00.00%0000000.00%

overseas investors

Including:

Shares held by

00.00%0000000.00%

overseas

corporations

Shares held by

00.00%0000000.00%

overseas individuals

II. Unrestricted 3165434 99.95 211 3165436 99.95

2111000

Shares 092 % 1 203 %

1. RMB-

316543499.95211316543699.95

denominated 2111 0 0 0

092%1203%

common shares

2. Domestically

00.00%0000000.00%

listed foreign shares

3. Overseas listed

00.00%0000000.00%

foreign shares

4. Others 0 0.00% 0 0 0 0 0 0 0.00%

106Infore Environment Technology Group Co. Ltd. 2025 Annual Report

III. Total Number of 3166941 100.0 211 3166943 100.0

2111000

Shares 792 0% 1 903 0%

Reasons for share changes

□Applicable □ Not Applicable

As at December 31 2025 19559 shares in total were converted from the Infore Convertible Bonds issued by the Company.In particular 2111 shares were converted in 2025 resulting in a commensurate increase of the Company's unrestricted shares by

2111.

Approval of changes in share capital

□Applicable □ Not Applicable

With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896

convertible corporate bonds on November 4 2020 with a par value of RMB 100 and a total amount of RMB 1476189600. Per

approval of SZSE the Company's convertible corporate bonds of RMB 1476189600 have been listed for trading on SZSE

starting on December 2 2020. The Infore Convertible Bonds in this offering are convertible into the Company's shares from May

102021.

Transfer of shares

□Applicable □ Not Applicable

During the reporting period China Securities Depository and Clearing (Shenzhen) Corporation Limited handled the share

registration procedures for 2111 shares converted from convertible corporate bonds.Effects of share changes on basic earnings per share diluted earnings per share net asset value per share attributable to the

Company's common shareholders and other financial indicators of the prior year and the prior accounting period respectively

□ Applicable□ Not applicable

Other information that the Company deems disclosable or disclosable as required by the securities regulatory authorities

□ Applicable□ Not applicable

2. Changes in restricted shares

□Applicable□ Not applicable

II. Issuance and Listing of Securities

1. Issuance of securities (exclusive of preference shares) during the reporting period

□Applicable□ Not applicable

2. Changes in total number of shares shareholder structure and asset and liability structures

□Applicable □ Not Applicable

107Infore Environment Technology Group Co. Ltd. 2025 Annual Report

With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896

convertible corporate bonds on November 4 2020 with a par value of RMB 100 and a total amount of RMB 1476189600. Per

approval of SZSE the Company's convertible corporate bonds of RMB 1476189600 have been listed for trading on SZSE

starting on December 2 2020. The Infore Convertible Bonds in this offering are convertible into the Company's shares from May

10 2021. On January 6 2026 the Company disclosed the Announcement on Results of Conversion of Convertible Bonds and

Changes in Share Capital in the Fourth Quarter of 2025. As at December 31 2025 19559 shares in total were converted from the

Infore Convertible Bonds issued by the Company. In particular 2111 shares were converted in 2025 resulting in a commensurate

increase of the Company's unrestricted shares by 2111.In summary the total number of shares of the Company changed from 3166941792 shares at the beginning of the period to

3166943903 shares. Among them the number of unrestricted shares changed from 3165434092 shares to 3165436203 shares.

3. Existing internal employee shares

□Applicable□ Not applicable

III. Controlling Shareholders and De Facto Controller

1. Number of shareholders and their shareholdings

Unit: Share

Number of preference sh

areholders with resumed

voting power at the end o

Number o

Number of 30642 32320 Number of 0 f the previous month prio 0

f

r to the disclosure date of

this report (if any) (see

Note 8)

Shareholders holding over 5% of total shares or the top 10 shareholders (excluding shares lent through refinancing)

Shareholdin Increase/de Shares pledged tagged or

Number of Number of

Name of sh Nature of s Sharehold g s at the en crease duri frozen

restricted s unrestricted

areholder hareholders ing ratio d of the repo ng the repo

hares held shares held Share stat

rting period rting period Quantityus

Ningbo Inf Domestic n

ore Asset on-state-ow 101799738 10179973

32.14% 0 0 Pledged 571660000

Manageme ned legal p 2 82

nt Co. Ltd. ersons

Zoomlion

Heavy Indu Domestic n

stry Scienc on-state-ow 39921465 Not applic

12.61%399214659000

e and Tech ned legal p 9 able

nology Co. ersons

Ltd.Infore Grou Domestic n 11.36% 359609756 0 0 35960975 Not applic 0

108Infore Environment Technology Group Co. Ltd. 2025 Annual Report

p Co. Ltd. on-state-ow 6 able

ned legal p

ersons

Hongchuan

g (Shenzhe Domestic n

n) Investme on-state-ow 30619281 Not applic

9.67%306192813-423100000

nt Center ned legal p 3 able

(Limited Pa ersons

rtnership)

Domestic n

He Jianfen Not applic

atural perso 2.01% 63514690 0 0 63514690 0

g able

ns

Hong Kong

Securities

Overseas le Not applic

Clearing C 1.84% 58196244 16788768 0 58196244 0

gal person able

ompany Lt

d.Industrial B

ank Co. Lt

Not applic

d. – China Others 1.25% 39652199 30313099 0 39652199 0

able

AMC CSI

Robot ETF

China Cons

truction Ba

nk Corpora

Not applic

tion – E Fu Others 1.19% 37581473 37581473 0 37581473 0

able

nd CSI Rob

ot Industry

ETF

Infore Envi

ronment Te

chnology G

roup Co. L

Not applic

td.－The T Others 0.94% 29713398 29713398 0 29713398 0able

hird Emplo

yee Stock

Ownership

Plan

Guangdong

Hengzejia State-owne

Not applic

n Industrial d corporati 0.89% 28059147 0 0 28059147 0

able

Investment on

Co. Ltd.Strategic investor/general corporation b

ecoming a top 10 shareholder in a rights Not applicable.issue (if any) (see Note 3)

Ningbo Infore Asset Management Co. Ltd. and Infore Group Co. Ltd. share the same

Related party or acting-in-concert relati de facto controller He Jianfeng and they are persons acting in concert mutually. Apart

onship among the aforementioned share from that the Company is not aware of any related party or acting-in-concert relations

holders hip (as defined in the Measures for the Administration of the Takeover of Listed Compa

nies) among other shareholders aforementioned.Shareholders above entrusting/entrusted

Not applicable.with or waiving voting rights

Top 10 shareholders with repurchase ac The Company's dedicated securities account for share repurchase holds a total of 2961

count (if any) (see Note 10) 4425 shares accounting for approximately 0.94% of the total share capital.

109Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Shareholding of the top 10 unrestricted shareholders (excluding shares lent through securities financing transactions and locked-up

shares of senior officers)

Number of unrestricted shares at the end Type of share

Name of shareholder

of the reporting period Type of share Quantity

Ningbo Infore Asset Management Co. RMB-dominated co

10179973821017997382

Ltd. mmon shares

Zoomlion Heavy Industry Science and RMB-dominated co

399214659399214659

Technology Co. Ltd. mmon shares

RMB-dominated co

Infore Group Co. Ltd. 359609756 359609756

mmon shares

Hongchuang (Shenzhen) Investment Ce RMB-dominated co

306192813306192813

nter (Limited Partnership) mmon shares

RMB-dominated co

He Jianfeng 63514690 63514690

mmon shares

Hong Kong Securities Clearing Compa RMB-dominated co

5819624458196244

ny Ltd. mmon shares

Industrial Bank Co. Ltd. – China AMC RMB-dominated co

3965219939652199

CSI Robot ETF mmon shares

China Construction Bank Corporation – RMB-dominated co

3758147337581473

E Fund CSI Robot Industry ETF mmon shares

Infore Environment Technology Group

RMB-dominated co

Co. Ltd.－The Third Employee Stock 29713398 29713398

mmon shares

Ownership Plan

Guangdong Hengzejian Industrial Inves RMB-dominated co

2805914728059147

tment Co. Ltd. mmon shares

Related party or acting-in-

concert relationship amon

Ningbo Infore Asset Management Co. Ltd. and Infore Group Co. Ltd. share the same de facto contr

g top 10 unrestricted publi

oller He Jianfeng and they are persons acting in concert mutually. Apart from that the Company is n

c shareholders as well as

ot aware of any related party or acting-in-concert relationship (as defined in the Measures for the Ad

between top 10 unrestricte

ministration of the Takeover of Listed Companies) among other shareholders aforementioned.d public shareholders and

top 10 shareholders

Top 10 common sharehold

ers involved in securities Infore Environment Technology Group Co. Ltd. - Third Employee Stock Ownership Plan holds 297

margin trading (if any) (se 13398 shares in the Company through credit accounts.e Note 4)

Shareholders holding over 5% of total shares the top 10 shareholders and the top 10 unrestricted shareholders involved in

securities lending through securities financing transactions

□ Applicable□ Not applicable

Changes in the top 10 shareholders and the top 10 unrestricted shareholders caused by the lending/return of shares through

securities financing transactions compared with the previous period

□ Applicable□ Not applicable

Whether any top 10 common shareholders or top 10 unrestricted common shareholders of the Company conducted any agreed

repurchase transactions during the reporting period

□Yes□No

No such cases during the reporting period.

2. Controlling shareholder

Nature of controlling shareholder: Natural person

110Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Type of controlling shareholder: Corporation

Legal

Name of controlling Principal business

Representative/Person- Date of incorporation Organization code

shareholder activities

in-charge

Asset management

Ningbo Infore Asset 91330206MA290L5J3 industrial investment

Kuang Guangxiong May 2 2017

Management Co. Ltd. L investment

management.Equity interests held or participated in by the controlling shareholder in other

Not applicable.domestic and overseas listed companies during the reporting period

Changes in controlling shareholders during the reporting period

□ Applicable□ Not applicable

During the reporting period there was no change in controlling shareholders of the Company.

3. De facto controller and persons acting in concert

Nature of de facto controller: Domestic natural persons

Type of de facto controller: Natural person

Relationship with de facto Residency in other

Name of de facto controller Nationality

controller country/region or not

He Jianfeng The person himself China Yes

Main occupation and position Chairman of the Board and President of Infore Group Co. Ltd.Controlling interests in other

domestically and overseas Beijing Baination Pictures Co. Ltd. (Stock code: 300291) and Jason Furniture (Hangzhou) Co.listed companies in the past Ltd. (Stock code: 603816).

10 years

Change in de facto controller during the reporting period

□ Applicable□ Not applicable

During the reporting period there was no change in the de facto controller of the Company.Ownership and control relationship between the de facto controller and the Company

111Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The de facto controller controls the Company via trust or other asset management arrangement

□ Applicable□ Not applicable

4. The pledged shares in the Company's controlling shareholder or largest shareholder and its persons

acting in concert account for 80% of their total shareholdings

□Applicable□ Not applicable

5. Other corporate shareholders with a shareholding of more than 10%

□Applicable □ Not Applicable

Name of Legal

corporate Representativ Date of Registered

Principal business or management activities

sharehold e/Person-in- incorporation capital

er charge

Development production and sales of engineering machinery

agricultural machinery sanitation machinery crane trucks and

exclusive chassis fire trucks and exclusive chassis aerial work

machines emergency and rescue equipment mining

machinery machinery in coal mines material transportation

facilities other machinery metal and non-metal materials and

new high-tech products of optical-electro-mechanical

integration and provision of leasing and after-sale technical

Zoomlion services; Sales of building and decorative materials vehicles

Heavy for engineering and metal materials chemical materials and

Industry RMB chemical products (excluding hazardous chemicals and

Science Zhan Chunxin August 31 1999 86485352 monitoring products); Sales of lubricant oil lubricating grease

and 36 and hydraulic oil (excluding hazardous chemicals); Retail of

Technolog refined oil products (operated by licensed subsidiaries only);

y Co. Ltd. Operation of commodity and technology import and export

businesses; Investment in real estate with self-owned assets

(without permit to carry out national financially regulated and

financial credit businesses such as absorbing deposits fund-

raising and collection entrusted loans and issuing notes and

lending). Sales of used vehicles; Disassembly and recovery of

disused machinery equipment. (Business activities subject to

approval under laws shall not be carried out unless approval

from competent authorities has been obtained.)

Investment in various industries investment management

investment consultation and asset management; Enterprise

management and enterprise consulting; Computer information

services and software services; Film production and planning

(based on validated licenses); Advertising planning and

Infore RMB production; Appraisal and consultancy services of artwork

Group He Jianfeng April 19 2002 44500000 (excluding ivory and ivory products) and collectibles; Planning

Co. Ltd. 00 of culture and art exhibitions; Sales of maternal and baby

products and clothing; Supply and marketing of domestic

business and goods except for the above items; Business

information consulting services; Import and export of

commodities or technologies (excluding the import and export

of commodities and technologies that are prohibited by the

112Infore Environment Technology Group Co. Ltd. 2025 Annual Report

state or involve administrative review and approval); R&D

manufacturing sales and leasing of sanitation equipment

robots new energy vehicles and environmental monitoring

equipment; Cleaning collection recycling transportation and

treatment services of urban domestic waste; Undertaking

environmental engineering and water pollution control projects;

R&D manufacturing and sales of ventilators and air-cooling

water-cooling and air conditioning equipment; R&D

manufacturing and sales of new materials equipment and

products. (Production and manufacturing projects are operated

by subsidiaries) (Business activities subject to approval under

laws shall not be carried out unless approval from competent

authorities has been obtained.)

6. Limitations on shareholding reduction by the Company's controlling shareholder de facto controller

reorganizer and other commitment makers

□Applicable□ Not applicable

IV. Repurchase of Shares during the Reporting Period

Progress of share repurchase

□Applicable □ Not Applicable

Proportion

of

repurchased

shares to the

Proposed Number

Disclosu Proportion underlying

Number of repurchase of

re date of total Proposed repurchase Purpose of shares

shares to be amount (in shares

of the share period repurchase involved in

repurchased RMB repurcha

plan capital the stock

10000) sed

option

incentive

scheme (if

any)

As at November 24 All shares will

2025 the Company had be used for

cumulatively the

repurchased 29614425 implementatio

shares by way of n of stock

Not less

centralized bidding via option

than RMB

the dedicated incentive

Approximately 200 million

Approxim repurchase account scheme or

21621622 (inclusive)

April ately accounting for employee 296144

shares to and not 0.00%

11 2025 0.68% to approximately 0.94% of stock 25

32432432 more than

1.02% the total share capital at ownership

shares RMB 300

the time with a total plan. If the

million

transaction amount of Company fails

(inclusive)

RMB 204391278.75 to implement

(excluding transaction the above

costs). The share purposes

repurchase plan has within 36

been completed. months after

113Infore Environment Technology Group Co. Ltd. 2025 Annual Report

completion of

the

repurchase

the unused

portion will be

canceled in

accordance

with relevant

procedures.Progress of reducing the repurchased shares by way of centralized bidding

□ Applicable□ Not applicable

V. Information on Preference Shares

□Applicable□ Not applicable

During the reporting period the Company had no preference shares.

114Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part VII Information on Bonds

□Applicable □ Not Applicable

I. Enterprise Bond

□Applicable□ Not applicable

During the reporting period the Company had no enterprise bonds.II. Corporate Bond

□Applicable□ Not applicable

During the reporting period the Company had no corporate bonds.III. Debt Financing Instruments of Non-financial Enterprises

□Applicable□ Not applicable

During the reporting period the Company had no debt financing instruments of non-financial enterprises.IV. Convertible Corporate Bonds

□Applicable □ Not Applicable

1. Convertible bond issuance

With the approval granted by the CSRC under Document Z.J.X.K. [2020] No. 2219 the Company publicly issued 14761896

convertible corporate bonds on November 4 2020 with a par value of RMB 100 a total amount of RMB 1476189600 and an

initial conversion price of RMB 8.31 per share. The total proceeds raised from this issuance amounted to RMB 1476.1896 million

and the net proceeds after deducting issuance-related expenses (tax exclusive) amounted to RMB 1457.3362 million. The

availability of the above-mentioned proceeds has been verified by Pan-China Certified Public Accountants LLP in its Capital

Verification Report (T.J.Y. [2020] No.490).Per approval of SZSE the Company's convertible corporate bonds of RMB 1476.1896 million have been listed for trading on

SZSE on December 2 2020 and are convertible into Company shares from May 10 2021 to November 3 2026. The bond

abbreviation is "Infore Convertible Bonds" and the bond code is "127024.SZ".

2. Guarantor and top 10 holders of convertible bonds during the reporting period

Name of convertible corporate bonds Infore Convertible Bonds

Number of holders at period end 4826

115Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Guarantor of the Company's convertible bonds The convertible corporate bonds issued are not guaranteed.Information on material changes in the profitability asset status and

Not applicable.credit standing of guarantor

Information on the top 10 convertible bond holders:

Number of Amount of As a percentage

Nature of

convertible bonds convertible bonds of convertible

convertibl

No. Name of convertible bond holder held at the end of held at the end of bonds held at

e bond

the reporting the reporting the end of the

holder

period (sheet) period (RMB) reporting period

China Merchants Bank Co. Ltd. - Bosera

CSI Convertible and Exchangeable Bonds

1 Others 992797 99279700.00 6.73%

Trading Open-end Index Securities

Investment Fund

State-

owned

2 Guosen Securities Co. Ltd. 943450 94345000.00 6.39%

corporatio

n

Bank of Beijing Co. Ltd. - Penghua Double

3 Credit Enhanced Bond Securities Others 534774 53477400.00 3.62%

Investment Fund

PICC Asset Flexible Juxin Hybrid Pension

4 Product - China Minsheng Banking Corp. Others 400052 40005200.00 2.71%

Ltd.Ping An Stable Allocation No. 3 Fixed

5 Income Pension Product - Industrial and Others 400007 40000700.00 2.71%

Commercial Bank of China Limited

Industrial and Commercial Bank of China

6 Limited - Fullgoal Xingli Enhanced Bond Others 352756 35275600.00 2.39%

Initiated Securities Investment Fund

Ping An Bank Co. Ltd. - Western Leadbank

7 Others 280000 28000000.00 1.90%

Huixiang Bond Securities Investment Fund

Agricultural Bank of China Limited -

8 Penghua Convertible Bond Securities Others 268371 26837100.00 1.82%

Investment Fund

State-

China International Capital Corporation owned

923089023089000.001.56%

Limited corporatio

n

China National Petroleum Corporation

10 Enterprise Annuity Plan - Industrial and Others 215053 21505300.00 1.46%

Commercial Bank of China Limited

3. Changes in convertible bonds during the reporting period

□Applicable □ Not Applicable

Unit: RMB

Name of Material Events of Subsidiaries

Material Events of

convertible After change

Subsidiaries

corporate bonds Conversion Redemption Resale

Infore Convertible

1476046700.0016500.000.001000.001476029200.00

Bonds

116Infore Environment Technology Group Co. Ltd. 2025 Annual Report

4. Information on cumulative conversion of bonds into shares

□Applicable □ Not Applicable

The

number of

shares

converted

Unconverte

as a

Accumulat Accumulat d amount

Name of Total Total percentage

Start and ed ed Amount as a

convertible issued issued of the total

end date of conversion conversion unconverte percentage

corporate number amount issued

conversion amount number d (RMB) of the total

bonds (sheet) (RMB) shares in

(RMB) (share) issued

the

amount

Company

before start

of

conversion

Infore

1476189614760292

Convertible 2021-05-10 14761896 159400.00 19559 0.00% 99.99%

00.0000.00

Bonds

5. Previous adjustments to and revisions of conversion price

Latest

Name of Adjusted

conversion price

convertible Date of conversion conversion Description of conversion price

Disclosure date as at the end of

corporate price adjustment price adjustment

the reporting

bonds (RMB)

period (RMB)

Due to the completion of the

2020 equity distribution the

conversion price of Infore

July 8 2021 8.19 July 2 2021

Convertible Bonds was adjusted

from the original RMB 8.31 per

share to RMB 8.19 per share.Due to the completion of the

2021 equity distribution the

July 20 2022 8.09 July 14 2022 conversion price was adjusted

from the original RMB 8.19 per

share to RMB 8.09 per share.Due to the completion of the

Infore

2022 equity distribution the

Convertible 7.67

July 18 2023 7.98 July 11 2023 conversion price was adjusted

Bonds

from the original RMB 8.09 per

share to RMB 7.98 per share.Due to the completion of the

2023 equity distribution the

July 16 2024 7.86 July 9 2024 conversion price was adjusted

from the original RMB 7.98 per

share to RMB 7.86 per share.Due to the completion of the

2024 equity distribution the

July 28 2025 7.67 July 19 2025 conversion price was adjusted

from the original RMB 7.86 per

share to RMB 7.67 per share.

117Infore Environment Technology Group Co. Ltd. 2025 Annual Report

6. Change in the Company's liabilities and credit standing and cash arrangements for debt repayment in

coming years at the end of the reporting period

On June 23 2025 China Chengxin International Credit Rating Co. Ltd. issued the Follow-up Rating Report on the Public

Offering of Convertible Corporate Bonds by Infore Environment Technology Group Co. Ltd. (2025) (X.P.W.H.Z. [2025] G.Z.No.0818) assigning the Company a corporate credit rating of AA+ with stable rating outlook for the coming 12 to 18 months. For

details please refer to the Follow-up Rating Report on the Public Offering of Convertible Corporate Bonds by Infore Environment

Technology Group Co. Ltd. (2025) on June 24 2025 on Cninfo (www.cninfo.com.cn).The primary sources of funding for the Company to pay the principal and interest of the convertible bonds in the future are as

follows: (1) The Company seeks organic growth by strengthening financial management and increasing net cash inflows and net

profits from operating activities; (2) The Company has a good credit standing and a reasonable asset mix and can obtain financing

from banks and other avenues to reasonably arrange for redemption funds.V. During the Reporting Period the Loss in the Scope of Consolidated Statements

Outstripped 10% of the Net Assets at the End of the Previous Year

□Applicable□ Not applicable

VI. Overdue Interest-Bearing Debts Other Than Bonds at the End of the Reporting Period

□Applicable□ Not applicable

VII. Violation of Rules and Regulations During the Reporting Period

□Yes□No

VIII. Main Accounting Data and Financial Indicators of the Company in Last Two Years as

at the End of the Reporting Period

Unit: RMB 10000

At the end of the reporting

Items At the end of last year YoY change

period

Current ratio 1.63 1.80 -9.44%

Liability-to-asset ratio 50.44% 39.36% 11.08%

Quick ratio 1.54 1.67 -7.78%

Current reporting period Prior period YoY change

Net profit after deducting

non-recurring gains and 51833.30 50217.67 3.22%

losses

118Infore Environment Technology Group Co. Ltd. 2025 Annual Report

EBITDA to total debt ratio 11.08% 13.77% -2.69%

Interest coverage ratio 4.39 4.74 -7.38%

Cash interest coverage ratio 9.11 10.93 -16.65%

EBITDA interest coverage

9.089.71-6.49%

ratio

Loan repayment rate 100.00% 100.00% 0.00%

Interest payment ratio 100.00% 100.00% 0.00%

119Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Part VIII Financial Report

Audit Report

Type of audit opinions Standard unqualified opinion

Signing date of the auditor's report April 27 2026

Name of the auditor Pan-China Certified Public Accountants LLP (Special General Partnership)

No. of the auditor's report PCCPAAR [2026] No. 9712

Names of certified public accountants Lin Wang and Cao Cuijuan

Main body of the auditor's report

To the Shareholders of Infore Environment Technology Group Co. Ltd.:

I. Audit Opinion

We have audited the financial statements of Infore Environment Technology Group Co. Ltd. (the

“Company”) which comprise the consolidated and parent company balance sheets as at December

31 2025 the consolidated and parent company income statements consolidated and parent

company cash flow statements and consolidated and parent company statements of changes in

equity for the year then ended as well as notes to financial statements.In our opinion the accompanying financial statements present fairly in all material respects the

financial position of the Company as at December 31 2025 and its financial performance and its

cash flows for the year then ended in accordance with China Accounting Standards for Business

Enterprises.II. Basis for Audit Opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities

under those standards are further described in the Certified Public Accountant’s Responsibilities

for the Audit of the Financial Statements section of our report. We are independent of theCompany in accordance with the “Chinese Certified Public Accountant Independence StandardNo. 1 – Independence Requirements for Financial Statement Audit and Review Engagements”

and the China Code of Ethics for Certified Public Accountants and we have fulfilled other ethical

responsibilities.In conducting our audit we have complied with the independence requirements applicable to audits

of public interest entities. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion.

120Infore Environment Technology Group Co. Ltd. 2025 Annual Report

III. Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in

our audit of the financial statements of the current period. These matters were addressed in the

context of our audit of the financial statements as a whole and in forming our opinion thereon and

we do not express a separate opinion on these matters.(I) Revenue recognition

1. Key audit matters

Please refer to section III (XXVII) and V (II) 1 of notes to the financial statements for details.The Company is mainly engaged in sales of environmental and sanitation machinery and ventilation

equipment as well as sanitation operation service. In 2025 the operating revenue amounted to

13843.81 million yuan with year-over-year growth of 5.53%. As operating revenue is one of the

key performance indicators of the Company there might be inherent risks that the Company’s

management (the “Management”) adopts inappropriate revenue recognition to achieve specific

goals or expectations we have identified revenue recognition as a key audit matter.

2. Responsive audit procedures

Our main audit procedures for revenue recognition are as follows:

(1) We obtained understandings of key internal controls related to revenue recognition assessed the

design of these controls determined whether they had been executed and tested the effectiveness of

the operation;

(2) We checked sales contracts obtained understandings of main contractual terms or conditions

and assessed whether the revenue recognition method was appropriate;

(3) We performed analysis procedure on operating revenue and gross margin by month product

customer project etc. so as to identify whether there are significant or abnormal fluctuations and

find out the reason;

(4) For revenue from sales of environmental and sanitation machinery ventilation equipment etc.

we selected items to check related supporting documents including sales contracts sales invoices

outbound delivery orders delivery notes delivery receipts etc. For revenue from sanitation

operation service we selected items to check related supporting documents including sales

121Infore Environment Technology Group Co. Ltd. 2025 Annual Report

contracts service assessment statements supervision schedule etc.;

(5) We performed confirmation procedures on sales amount of selected items in combination with

confirmation procedure of accounts receivable and contract assets;

(6) We performed cut-off tests to check whether the operating revenue was recognized in the

appropriate period; and

(7) We checked whether information related to operating revenue had been presented appropriately

in the financial statements.(II) Impairment of accounts receivable and long-term receivables

1. Key audit matters

Please refer to section III (XII) V (I) 4 10 and 12 of notes to the financial statements for details.As of December 31 2025 the book balance of accounts receivable amounted to 7106.44 million

yuan with provision for bad debts of 1081.61 million yuan and the carrying amount of 6024.83

million yuan; the book balance of long-term receivables (including those due within one year)

amounted to 2398.55 million yuan with provision for bad debts of 94.31 million yuan and the

carrying amount of 2304.24 million yuan. The carrying amount of accounts receivable and long-

term receivables (collectively referred to as “receivables”) totaled 8329.07 million yuan.Based on credit risk features of receivables the Management measures the loss allowance at the

amount of lifetime expected credit losses either on an individual basis or on a collective basis. As

the amounts of receivables are significant and the impairment test involves significant judgment

of the Management we have identified impairment of receivables as a key audit matter.

2. Responsive audit procedures

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

(1) We obtained understandings of key internal controls related to impairment of receivables

assessed the design of these controls determined whether they had been executed and tested the

effectiveness of the operation;

(2) We reviewed the outcome of the Management’s previous estimates on provision for bad debts or

their subsequent re-estimations;

(3) We reviewed the consideration of the Management on credit risk assessment of receivables and

122Infore Environment Technology Group Co. Ltd. 2025 Annual Report

objective evidence and assessed whether the credit risk features of receivables had been

appropriately identified by the Management;

(4) For receivables with expected credit losses measured on an individual basis we reviewed the

Management’s estimations on the expected future cash flows assessed the appropriateness of

significant assumptions and the appropriateness relevance and reliability of data used in the

estimations and checked them with acquired external evidence;

(5) For receivables with expected credit losses measured on a collective basis we assessed the

reasonableness of portfolio classification on the basis of credit risk features; we assessed the

reasonableness of expected credit loss rate of accounts receivable determined by the Management

including the appropriateness of significant assumptions and the appropriateness relevance and

reliability of data used; we tested whether the Management’s calculation of provision for bad debts

was accurate;

(6) We checked the subsequent collection of receivables and assessed the reasonableness of

provision for bad debts made by the Management; and

(7) We checked whether information related to impairment of receivables had been presented

appropriately in the financial statements.(III) Impairment of goodwill

1. Key audit matters

Please refer to section III (XXI) and V (I) 20 of notes to the financial statements for details.As of December 31 2025 the cost of goodwill amounted to 5932.57 million yuan with provision

for impairment of 644.94 million yuan and the carrying amount of 5287.63 million yuan

accounting for 14.92% of total assets.For asset group or asset group portfolio related to goodwill the Management will perform

impairment test on goodwill together with related asset group or asset group portfolio and the

recoverable amount of related asset group or asset group portfolio is determined based on the

present value of estimated future cash flows. As the amount of goodwill is significant and

impairment test involves significant judgment of the Management we have identified impairment

of goodwill as a key audit matter.

2. Responsive audit procedures

123Infore Environment Technology Group Co. Ltd. 2025 Annual Report

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

(1) We obtained understandings of key internal controls related to impairment of goodwill assessed

the design of these controls determined whether they had been executed and tested the

effectiveness of the operation;

(2) We reviewed the outcome of the Management’s previous estimates on the present value of future

cash flows or their subsequent re-estimations;

(3) We assessed the competency professional quality and objectivity of external appraisers engaged

by the Management;

(4) We assessed the competency professional quality and objectivity of experts engaged by us and

the appropriateness of their works;

(5) We assessed the appropriateness and consistency of impairment test method adopted by the

Management;

(6) We assessed the appropriateness of significant assumptions used in impairment test and

reviewed whether relevant assumptions were consistent with overall economy environment

industry condition management situation historical experience operation plan approved budget

meeting summary assumptions used in other accounting estimates and related assumptions used in

other areas of business activities;

(7) We reviewed the sensitivity analysis on key assumptions performed by the Management

assessed the effect of changes in key assumptions on impairment test result and identified signs of

possible management bias in choosing key assumptions;

(8) We assessed the appropriateness relevance and reliability of data used by the Management in

the impairment test and reviewed the consistency of related information in the impairment test;

(9) We tested whether the Management’s calculation of present value of estimated future cash flows

was accurate; and

(10) We checked whether information related to impairment of goodwill had been presented

appropriately in the financial statements.IV. Other Information

The Management is responsible for the other information. The other information comprises the

124Infore Environment Technology Group Co. Ltd. 2025 Annual Report

information included in the Company’s annual report but does not include the financial statements

and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express

any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other

information and in doing so consider whether the other information is materially inconsistent with

the financial statements or our knowledge obtained in the audit or otherwise appears to be

materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the

other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial

Statements

The Management is responsible for preparing and presenting fairly the financial statements in

accordance with China Accounting Standards for Business Enterprises as well as designing

implementing and maintaining internal control relevant to the preparation of financial statements

that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s

ability to continue as a going concern disclosing as applicable matters related to going concern

and using the going concern basis of accounting unless the Management either intends to liquidate

the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement whether due to fraud or error and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee

that an audit conducted in accordance with China Standards on Auditing will always detect a

material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if individually or in the aggregate they could reasonably be expected to

125Infore Environment Technology Group Co. Ltd. 2025 Annual Report

influence the economic decisions of users taken on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism throughout the audit

performed in accordance with China Standards on Auditing. We also:

(I) Identify and assess the risks of material misstatement of the financial statements whether due to

fraud or error design and perform audit procedures responsive to those risks and obtain audit

evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from fraud is higher than for one resulting from error as

fraud may involve collusion forgery intentional omissions misrepresentations or the override of

internal control.(II) Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances.(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of

accounting and based on the audit evidence obtained whether a material uncertainty exists related

to events or conditions that may cast significant doubt on the Company’s ability to continue as a

going concern. If we conclude that a material uncertainty exists we are required to draw attention in

our auditor’s report to the related disclosures in the financial statements or if such disclosures are

inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to

the date of our auditor’s report. However future events or conditions may cause the Company to

cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the financial statements and whether

the financial statements represent the underlying transactions and events in a manner that achieves

fair presentation.(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the

entities or business activities within the Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain

sole responsibility for our audit opinion.We communicate with those charged with governance regarding the planned audit scope time

schedule and significant audit findings including any deficiencies in internal control of concern that

126Infore Environment Technology Group Co. Ltd. 2025 Annual Report

we identify during our audit.We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence and to communicate with them all

relationships and other matters that may reasonably be thought to bear on our independence and

where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters

that were of most significance in the audit of the financial statements of the current period and are

therefore the key audit matters. We describe these matters in our auditor’s report unless law or

regulation precludes public disclosure about the matter or when in extremely rare circumstances

we determine that a matter should not be communicated in our report because the adverse

consequences of doing so would reasonably be expected to outweigh the public interest benefits of

such communication.Pan-China Certified PublicAccountants LLP Chinese Certified PublicAccountant: 林旺

(Engagement Partner)

Hangzhou ·China Chinese Certified PublicAccountant: 曹翠娟

Date ofReport:April 27 2026

The auditor’s report and the accompanying financial statements are English translations of the Chinese auditor’s report and

statutory financial statements prepared under accounting principles and practices generally accepted in the People’s Republic of

China. These financial statements are not intended to present the financial position and financial performance and cash flows in

accordance with accounting principles and practices generally accepted in other countries and jurisdictions. In case the English

version does not conform to the Chinese version the Chinese version prevails.

127Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Consolidated balance sheet as at December 31 2025

(Expressed in Renminbi Yuan)

Assets NoteNo. Closing balance December 31 2024

Current assets:

Cash and bank balances 1 6715750632.10 5117995117.22

Settlement funds

Loans to other banks

Held-for-trading financial assets 2 1520255634.13

Derivative financial assets

Notes receivable 3 1949768.00 2444245.61

Accounts receivable 4 6024825704.00 6224430217.77

Receivables financing 5 240630370.22 201675177.13

Advances paid 6 115960728.33 116555682.67

Premiums receivable

Reinsurance accounts receivable

Reinsurance reserve receivable

Other receivables 7 924872748.35 160267453.49

Financial assets under reverse repo

Inventories 8 1081246249.12 1041115491.00

Including: Data resources

Contract assets 9 68897244.68 94117942.03

Assets held for sale

Non-current assets due within one year 10 983462626.28 483484497.10

Other current assets 11 520762225.95 597468283.91

Total current assets 18198613931.16 14039554107.93

Non-current assets:

Loans and advances

Debt investments

Other debt investments

Long-term receivables 12 1320781230.52 625304161.32

Long-term equity investments 13 738196845.70 682287056.09

Other equity instrument investments 14 1282971.01 1282971.01

Other non-current financial assets

Investment property 15 967397.81 1053133.20

Fixed assets 16 2610747901.07 2259900141.60

Construction in progress 17 348377592.40 460662679.72

Productive biological assets

Oil & gas assets

Right-of-use assets 18 2093717582.79 16456043.60

Intangible assets 19 4314166594.39 5660386100.81

Including: Data resources

Development expenditures

Including: Data resources

Goodwill 20 5287626997.86 5315639985.65

Long-term prepayments 21 26948904.96 32459369.22

Deferred tax assets 22 123608519.14 127979852.03

Other non-current assets 23 370057999.52 413364735.69

Total non-current assets 17236480537.17 15596776229.94

Total assets 35435094468.33 29636330337.87

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

128Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Shanshan

Infore Environment Technology Group Co. Ltd.Consolidated balance sheet as at December 31 2025 (continued)

(Expressed in Renminbi Yuan)

Liabilities & Equity Note No. Closing balance December 31 2024

Current liabilities:

Short-term borrowings 25 1215279736.31 113697615.88

Central bank loans

Loans from other banks

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 26 1822004052.60 1982522352.45

Accounts payable 27 3791427960.24 3672499338.29

Advances received

Contract liabilities 28 397236002.74 239860672.03

Financial liabilities under repo

Absorbing deposit and interbank deposit

Deposits for agency security transaction

Deposits for agency security underwriting

Employee benefits payable 29 505367179.05 586442924.01

Taxes and rates payable 30 240010930.05 220358221.46

Other payables 31 630878916.61 736723069.40

Handling fees and commissions payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one year 32 2489245198.62 211138376.82

Other current liabilities 33 45021884.13 28803209.66

Total current liabilities 11136471860.35 7792045780.00

Non-current liabilities:

Insurance policy reserve

Long-term borrowings 34 4963964278.15 1987236842.43

Bonds payable 35 1404699758.75

Including: Preferred shares

Perpetual bonds

Lease liabilities 36 1615589345.60 7830870.16

Long-term payables 37 24600000.00 31687999.95

Long-term employee benefits payable

Provisions 38 920158.78 1049769.45

Deferred income 39 94030295.67 386252654.20

Deferred tax liabilities 22 29116381.60 45414359.52

Other non-current liabilities 40 8148148.14 8148148.14

Total non-current liabilities 6736368607.94 3872320402.60

Total liabilities 17872840468.29 11664366182.60

Equity:

Share capital 41 3166943903.00 3166941792.00

Other equity instruments 42 195462514.61 266913810.18

Including: Preferred shares

Perpetual bonds

Capital reserve 43 9543593089.51 9557237328.20

Less: Treasury shares 44 204410648.11

Other comprehensive income 45 -18435172.99 -17745734.84

Special reserve 46

Surplus reserve 47 495753979.53 423116339.31

General risk reserve

Undistributed profit 48 4001591434.90 4122982090.28

Total equity attributable to the parent company 17180499100.45 17519445625.13

Non-controlling interest 381754899.59 452518530.14

Total equity 17562254000.04 17971964155.27

129Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Total liabilities & equity 35435094468.33 29636330337.87

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

Infore Environment Technology Group Co. Ltd.Parent company balance sheet as at December 31 2025

(Expressed in Renminbi Yuan)

Assets NoteNo. Closing balance December 31 2024

Current assets:

Cash and bank balances 1435146500.34 681729562.77

Held-for-trading financial assets 500024032.97

Derivative financial assets

Notes receivable

Accounts receivable

Receivables financing 1420698.92 3049680.44

Advances paid 363460.93 264874.65

Other receivables 1 5742947791.59 4109183327.45

Inventories

Including: Data resources

Contract assets

Assets held for sale

Non-current assets due within one year

Other current assets

Total current assets 7679902484.75 4794227445.31

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 2 17964799084.09 16966182637.80

Other equity instrument investments 1282971.01 1282971.01

Other non-current financial assets

Investment property

Fixed assets

Construction in progress

Productive biological assets

Oil & gas assets

Right-of-use assets 610009.02

Intangible assets 41078.00 205389.99

Including: Data resources

Development expenditures

Including: Data resources

Goodwill

Long-term prepayments

Deferred tax assets

Other non-current assets

Total non-current assets 17966123133.10 16968281007.82

Total assets 25646025617.85 21762508453.13

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

130Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Shanshan

131Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Parent company balance sheet as at December 31 2025 (continued)

(Expressed in Renminbi Yuan)

Liabilities & Equity NoteNo. Closing balance December 31 2024

Current liabilities:

Short-term borrowings 641948872.62

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 53192620.70 20254973.30

Accounts payable 1137507.93 1137507.93

Advances received

Contract liabilities

Employee benefits payable 3226358.75 3081440.43

Taxes and rates payable 10894460.71 6018372.68

Other payables 2684142064.04 439094958.95

Liabilities held for sale

Non-current liabilities due within one year 1525155109.14 11559669.59

Other current liabilities

Total current liabilities 4919696993.89 481146922.88

Non-current liabilities:

Long-term borrowings 1028550000.00 38100008.00

Bonds payable 1404699758.75

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables 3000000.00 3000000.00

Long-term employee benefits payable

Provisions 826736.14 952985.85

Deferred income

Deferred tax liabilities 7418072.54

Other non-current liabilities

Total non-current liabilities 1039794808.68 1446752752.60

Total liabilities 5959491802.57 1927899675.48

Equity:

Share capital 3166943903.00 3166941792.00

Other equity instruments 195462514.61 266913810.18

Including: Preferred shares

Perpetual bonds

Capital reserve 15243116135.80 15243099431.46

Less: Treasury shares 204410648.11

Other comprehensive income -18755949.09 -18700000.00

Special reserve

Surplus reserve 461533590.11 388895949.89

Undistributed profit 842644268.96 787457794.12

Total equity 19686533815.28 19834608777.65

Total liabilities & equity 25646025617.85 21762508453.13

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

132Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Consolidated income statement for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Items Note No. Current period cumulative Preceding period comparative

I. Total operating revenue 1 13843807632.45 13117894323.95

Including: Operating revenue 1 13843807632.45 13117894323.95

Interest income

Premiums earned

Revenue from handling fees and commissions

II. Total operating cost 12894259386.89 12223590697.65

Including: Operating cost 1 10815131518.50 10261555795.35

Interest expenses

Handling fees and commissions

Surrender value

Net payment of insurance claims

Net provision of insurance policy reserve

Premium bonus expenditures

Reinsurance expenses

Taxes and surcharges 2 92265130.32 76891691.83

Selling expenses 3 716524496.10 713507964.56

Administrative expenses 4 803880040.20 773511609.91

R&D expenses 5 294498707.16 317117284.00

Financial expenses 6 171959494.61 81006352.00

Including: Interest expenses 209723030.86 148707477.58

Interest income 49570028.64 74268310.95

Add: Other income 7 151142267.25 137108552.70

Investment income (or less: losses) 8 -21336469.10 -30889428.46

Including: Investment income from associates and joint ventures 3724247.73 21424762.72

Gains from derecognition of financial assets at amortized cost -55598983.24 -50286665.91

Gains on foreign exchange (or less: losses)

Gains on net exposure to hedging risk (or less: losses)

Gains on changes in fair value (or less: losses) 9 333964.13

Credit impairment loss 10 -214301775.31 -262370919.54

Assets impairment loss 11 -79547907.72 -31710185.75

Gains on asset disposal (or less: losses) 12 -11495543.69 -31931.69

III. Operating profit (or less: losses) 774342781.12 706409713.56

Add: Non-operating revenue 13 23381569.04 21214649.95

Less: Non-operating expenditures 14 63503024.38 79294913.15

IV. Profit before tax (or less: total loss) 734221325.78 648329450.36

Less: Income tax expenses 15 189344410.71 105254332.60

V. Net profit (or less: net loss) 544876915.07 543075117.76

(I) Categorized by the continuity of operations

1. Net profit from continuing operations (or less: net loss) 544876915.07 543075117.76

2. Net profit from discontinued operations (or less: net loss)

(II) Categorized by the portion of equity ownership

1. Net profit attributable to owners of parent company (or less: net loss) 549799271.94 513514275.54

2. Net profit attributable to non-controlling shareholders (or less: net loss) -4922356.87 29560842.22

VI. Other comprehensive income after tax 16 -689438.15 -13115734.84

Items attributable to the owners of the parent company -689438.15 -13115734.84

(I) Not to be reclassified subsequently to profit or loss -14070000.00

1. Remeasurements of the net defined benefit plan

2. Items under equity method that will not be reclassified to profit or loss

3. Changes in fair value of other equity instrument investments -14070000.00

4. Changes in fair value of own credit risk

5. Others

(II) To be reclassified subsequently to profit or loss -689438.15 954265.16

1. Items under equity method that may be reclassified to profit or loss -55949.09

2. Changes in fair value of other debt investments

3. Profit or loss from reclassification of financial assets into other comprehensive income

4. Provision for credit impairment of other debt investments

5. Cash flow hedging reserve

6. Translation reserve -633489.06 954265.16

7. Others

Items attributable to non-controlling shareholders

VII. Total comprehensive income 544187476.92 529959382.92

Items attributable to the owners of the parent company 549109833.79 500398540.70

Items attributable to non-controlling shareholders -4922356.87 29560842.22

VIII. Earnings per share (EPS):

(I) Basic EPS (yuan per share) 0.17 0.16

(II) Diluted EPS (yuan per share) 0.17 0.16

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

133Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Parent company income statement for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Items NoteNo. Current period cumulative

Preceding period

comparative

I. Operating revenue 1 8130.14 86987.42

Less: Operating cost 1

Taxes and surcharges 169422.39 172598.34

Selling expenses

Administrative expenses 26716409.65 34040383.63

R&D expenses

Financial expenses 16706687.16 -32199924.51

Including: Interest expenses 81487480.73 68523522.05

Interest income 65341918.40 100788936.40

Add: Other income 259737.83 446474.64

Investment income (or less: losses) 2 765018281.44 452505988.13

Including: Investment income from associates and joint ventures 49459989.64 39991003.64

Gains from derecognition of financial assets at amortized cost

Gains on net exposure to hedging risk (or less: losses)

Gains on changes in fair value (or less: losses) 24032.97

Credit impairment loss 1261444.68 -17238362.29

Assets impairment loss

Gains on asset disposal (or less: losses)

II. Operating profit (or less: losses) 722979107.86 433788030.44

Add: Non-operating revenue 1147112.54 8224413.05

Less: Non-operating expenditures 4822773.23 1019252.32

III. Profit before tax (or less: total loss) 719303447.17 440993191.17

Less: Income tax expenses -7072954.99

IV. Net profit (or less: net loss) 726376402.16 440993191.17

(I) Net profit from continuing operations (or less: net loss) 726376402.16 440993191.17

(II) Net profit from discontinued operations (or less: net loss)

V. Other comprehensive income after tax -55949.09 -14070000.00

(I) Not to be reclassified subsequently to profit or loss -14070000.00

1. Remeasurements of the net defined benefit plan

2. Items under equity method that will not be reclassified to profit or loss

3. Changes in fair value of other equity instrument investments -14070000.00

4. Changes in fair value of own credit risk

5. Others

(II) To be reclassified subsequently to profit or loss -55949.09

1. Items under equity method that may be reclassified to profit or loss -55949.09

2. Changes in fair value of other debt investments

3. Profit or loss from reclassification of financial assets into other comprehensive income

4. Provision for credit impairment of other debt investments

5. Cash flow hedging reserve

6. Translation reserve

7. Others

VI. Total comprehensive income 726320453.07 426923191.17

VII. Earnings per share (EPS):

(I) Basic EPS (yuan per share)

(II) Diluted EPS (yuan per share)

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

134Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Consolidated cash flow statement for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Items NoteNo. Current period cumulative Preceding period comparative

I. Cash flows from operating activities:

Cash receipts from sale of goods or rendering of services 14677469577.76 12253778468.76

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 fees and commissions

Net increase of loans from others

Net increase of repurchase

Net cash receipts from agency security transaction

Receipts of tax refund 51079131.88 54791515.98

Other cash receipts related to operating activities 1 (1) 3327246508.07 1563909963.01

Subtotal of cash inflows from operating activities 18055795217.71 13872479947.75

Cash payments for goods purchased and services received 8148665210.31 7269772149.50

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 fees and commissions

Cash payments for policy bonus

Cash paid to and on behalf of employees 3061179954.58 2760726135.33

Cash payments for taxes and rates 692836667.36 539712068.46

Other cash payments related to operating activities 1 (2) 5190237631.49 2140220112.98

Subtotal of cash outflows from operating activities 17092919463.74 12710430466.27

Net cash flows from operating activities 962875753.97 1162049481.48

II. Cash flows from investing activities:

Cash receipts from withdrawal of investments 57650000.00 4176029.95

Cash receipts from investment income 62896814.91 215921968.00

Net cash receipts from the disposal of fixed assets intangible assets and other long-term assets 39356799.03 22226636.40

Net cash receipts from the disposal of subsidiaries & other business units 145450939.48 252832196.90

Other cash receipts related to investing activities 1 (3) 13188685852.03 8821277096.34

Subtotal of cash inflows from investing activities 13494040405.45 9316433927.59

Cash payments for the acquisition of fixed assets intangible assets and other long-term assets 996553827.63 806085373.66

Cash payments for investments 149349269.90

Net increase of pledged borrowings

Net cash payments for the acquisition of subsidiaries & other business units 39440814.25

Other cash payments related to investing activities 1 (4) 14720590689.95 8310287424.40

Subtotal of cash outflows from investing activities 15905934601.73 9116372798.06

Net cash flows from investing activities -2411894196.28 200061129.53

III. Cash flows from financing activities:

Cash receipts from absorbing investments 19100000.00 24451900.00

Including: Cash received by subsidiaries from non-controlling shareholders as investments 19100000.00 24451900.00

Cash receipts from borrowings 6882538805.98 1244655720.38

Other cash receipts related to financing activities 1 (5) 44724997.45 128615400.00

Subtotal of cash inflows from financing activities 6946363803.43 1397723020.38

Cash payments for the repayment of borrowings 2391444319.10 1314496090.40

Cash payments for distribution of dividends or profits and for interest expenses 772364549.83 530172889.26

Including: Cash paid by subsidiaries to non-controlling shareholders as dividend or profit 29773157.34 11034966.64

Other cash payments related to financing activities 1 (6) 605963811.58 141563549.23

Subtotal of cash outflows from financing activities 3769772680.51 1986232528.89

Net cash flows from financing activities 3176591122.92 -588509508.51

IV. Effect of foreign exchange rate changes on cash and cash equivalents -535719.18 470874.17

V. Net increase in cash and cash equivalents 1727036961.43 774071976.67

Add: Opening balance of cash and cash equivalents 4690217231.21 3916145254.54

VI. Closing balance of cash and cash equivalents 6417254192.64 4690217231.21

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

135Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Parent company cash flow statement for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Items Current period Preceding periodcumulative comparative

I. Cash flows from operating activities:

Cash receipts from sale of goods or rendering of services 8617.87 365854.11

Receipts of tax refund 178113.41

Other cash receipts related to operating activities 2619535256.01 984609199.49

Subtotal of cash inflows from operating activities 2619543873.88 985153167.01

Cash payments for goods purchased and services received 199874.65

Cash paid to and on behalf of employees 10223435.79 12878474.03

Cash payments for taxes and rates 57187176.86 191681.93

Other cash payments related to operating activities 1820352015.15 1251992602.32

Subtotal of cash outflows from operating activities 1887762627.80 1265262632.93

Net cash flows from operating activities 731781246.08 -280109465.92

II. Cash flows from investing activities:

Cash receipts from withdrawal of investments 57650000.00

Cash receipts from investment income 755672835.94 596256937.18

Net cash receipts from the disposal of fixed assets intangible assets and other long-

term assets

Net cash receipts from the disposal of subsidiaries & other business units 258552204.53

Other cash receipts related to investing activities 5421367354.53 2862551451.99

Subtotal of cash inflows from investing activities 6234690190.47 3717360593.70

Cash payments for the acquisition of fixed assets intangible assets and other long-

term assets

Cash payments for investments 1046976949.88 222046440.00

Net cash payments for the acquisition of subsidiaries & other business units

Other cash payments related to investing activities 6074223854.71 2492051286.11

Subtotal of cash outflows from investing activities 7121200804.59 2714097726.11

Net cash flows from investing activities -886510614.12 1003262867.59

III. Cash flows from financing activities:

Cash receipts from absorbing investments

Cash receipts from borrowings 2890000000.00

Other cash receipts related to financing activities 14000000.00

Subtotal of cash inflows from financing activities 2904000000.00

Cash payments for the repayment of borrowings 1192485720.00 18886714.22

Cash payments for distribution of dividends or profits and for interest expenses 635580169.98 420282564.36

Other cash payments related to financing activities 205041269.07 1261241.92

Subtotal of cash outflows from financing activities 2033107159.05 440430520.50

Net cash flows from financing activities 870892840.95 -440430520.50

IV. Effect of foreign exchange rate changes on cash and cash equivalents

V. Net increase in cash and cash equivalents 716163472.91 282722881.17

Add: Opening balance of cash and cash equivalents 680843625.90 398120744.73

VI. Closing balance of cash and cash equivalents 1397007098.81 680843625.90

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

136Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Current period cumulative

Equity attributable to parent company

Items Other equity instruments Gener Non-contro

Share capital Preferr Perpet Capital reser

Less: Other com

Treasury sh prehensive Special res Surplus al risk Undistribute

lling intere Total equity

ed shar ual bo Others ve ares income erve reserve reser d profit

st

es nds ve

I. Balance at the end of prior ye 31669417 2669138 95572373 -177457 4231163 41229820 4525185 17971964

ar 92.00 10.18 28.20 34.84 39.31 90.28 30.14 155.27

Add: Cumulative changes of ac

counting policies

Error correction of prior peri

od

Business combination under

common control

Others

II. Balance at the beginning of c 31669417 2669138 95572373 -177457 4231163 41229820 4525185 17971964

urrent year 92.00 10.18 28.20 34.84 39.31 90.28 30.14 155.27

III. Current period increase (or l 2111.00 -714512 -1364423 2044106 -689438. 7263764 -12139065 -707636 -40971015ess: decrease) 95.57 8.69 48.11 15 0.22 5.38 30.55 5.23

(I) Total comprehensive income -689438. 54979927 -492235 54418747

151.946.876.92

(II) Capital contributed or withd 2111.00 -714512 -1364423 2044106 -353713 -32487541rawn by owners 95.57 8.69 48.11 45.61 6.98

1. Ordinary shares contributed b 2260000 22600000.

y owners 0.00 00

2. Capital contributed by holder

s of other equity instruments 2111.00 -2983.70 16704.34 15831.64

3. Amount of share-based paym

ent included in equity

4. Others -714483 -1366094 2044106 -579713 -3474912411.87 3.03 48.11 45.61 8.62

(III) Profit distribution 7263764 -67118992 -304699 -629022210.22 7.32 28.07 5.17

1. Appropriation of surplus rese 7263764 -7263764

rve 0.22 0.22

2. Appropriation of general risk

reserve

3. Appropriation of profit to ow -59855228 -304699 -62902221

ners 7.10 28.07 5.17

4. Others

(IV) Internal carry-over within

equity

1. Transfer of capital reserve to

capital

2. Transfer of surplus reserve to

capital

3. Surplus reserve to cover losse

s

4. Changes in defined benefit pl

an carried over to retained earni

ngs

5. Other comprehensive income

carried over to retained earning

s

6. Others

(V) Special reserve

1. Current period appropriation 917106 9171060.10.19 9

2. Current period use -917106 -9171060.0.19 19

(VI) Others

IV. Balance at the end of curren 31669439 1954625 95435930 2044106 -184351 4957539 40015914 3817548 17562254

t period 03.00 14.61 89.51 48.11 72.99 79.53 34.90 99.59 000.04

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

137Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Consolidated statement of changes in equity for the year ended December 31 2025 (continued)

(Expressed in Renminbi Yuan)

Preceding period comparative

Equity attributable to parent company

Items Other equity instruments

Share capit Less: Other com

Gener Non-controll

Preferr Perpet Capital rese Special re Surplus al risk Undistribut ing interest Total equity

al Treasury s prehensiveed shar ual bo Others rve hares income serve reserve reser ed profit

es nds ve

I. Balance at the end of prior year 3179506 2669147 96613987 9413279 -463000 3790170 4049434 46053830 178980474670.00 14.33 21.27 5.17 0.00 20.19 826.11 0.36 57.09

Add: Cumulative changes of account

ing policies

Error correction of prior period

Business combination under com

mon control

Others

II. Balance at the beginning of curren 3179506 2669147 96613987 9413279 -463000 3790170 4049434 46053830 178980474

t year 670.00 14.33 21.27 5.17 0.00 20.19 826.11 0.36 57.09

III. Current period increase (or less: -1256487 -904.15 -10416139 -9413279 -1311573 4409931 7354726 -8019770. 73916698.1decrease) 8.00 3.07 5.17 4.84 9.12 4.17 22 8

(I) Total comprehensive income -1311573 51351427 29560842. 529959382.4.84 5.54 22 92

(II) Capital contributed or withdrawn -1256487

by owners 8.00 -904.15

-10416139-9413279-2446101-47055390.

3.075.170.8691

1. Ordinary shares contributed by ow -1256538 -8156741 -9413279 25999900. 25999900.0

ners 2.00 3.17 5.17 00 0

2. Capital contributed by holders of o

ther equity instruments 504.00 -904.15 4109.24 3709.09

3. Amount of share-based payment in

cluded in equity

4. Others -2259808 -5046091 -73059000.9.14 0.86 00

(III) Profit distribution 4409931 -4399670 -1311960 -408987299.12 11.37 1.58 3.83

1. Appropriation of surplus reserve 4409931 -44099319.12 9.12

2. Appropriation of general risk reser

ve

3. Appropriation of profit to owners -3958676 -1311960 -4089872992.25 1.58 3.83

4. Others

(IV) Internal carry-over within equity

1. Transfer of capital reserve to capit

al

2. Transfer of surplus reserve to capit

al

3. Surplus reserve to cover losses

4. Changes in defined benefit plan ca

rried over to retained earnings

5. Other comprehensive income carri

ed over to retained earnings

6. Others

(V) Special reserve

1. Current period appropriation 8763770.25 8763770.25

2. Current period use -876377 -8763770.20.25 5

(VI) Others

IV. Balance at the end of current peri 3166941 2669138 95572373 -1774573 4231163 4122982 45251853 179719641

od 792.00 10.18 28.20 4.84 39.31 090.28 0.14 55.27

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

138Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2025

(Expressed in Renminbi Yuan)

Current period cumulative

Other equity instruments

Items

Share capital Preferr Perpet Capital reser Less: Treas

Other comp Specia

ve ury shares rehensive in l reser

Surplus res Undistribut

ed shar ual bo Others come ve erve ed profit

Total equity

es nds

I. Balance at the end of prior ye 31669417 26691381 152430994 -1870000 3888959 78745779 198346087

ar 92.00 0.18 31.46 0.00 49.89 4.12 77.65

Add: Cumulative changes of ac

counting policies

Error correction of prior pe

riod

Others

II. Balance at the beginning of c 31669417 26691381 152430994 -1870000 3888959 78745779 198346087

urrent year 92.00 0.18 31.46 0.00 49.89 4.12 77.65

III. Current period increase (or l 2111.00 -7145129 16704.34 20441064 -55949.09 7263764 5518647 -148074962.ess: decrease) 5.57 8.11 0.22 4.84 37

(I) Total comprehensive income

-55949.0972637640726320453.2.1607

(II) Capital contributed or with -7145129

drawn by owners 2111.00 5.57 16704.34

20441064-275843128.

8.1134

1. Ordinary shares contributed

by owners

2. Capital contributed by holder

s of other equity instruments 2111.00 -2983.70 16704.34 15831.64

3. Amount of share-based paym

ent included in equity

4. Others -7144831 20441064 -275858959.1.87 8.11 98

(III) Profit distribution 7263764 -6711899 -598552287.0.22 27.32 10

1. Appropriation of surplus rese 7263764 -7263764

rve 0.22 0.22

2. Appropriation of profit to ow -5985522 -598552287.

ners 87.10 10

3. Others

(IV) Internal carry-over within

equity

1. Transfer of capital reserve to

capital

2. Transfer of surplus reserve to

capital

3. Surplus reserve to cover loss

es

4. Changes in defined benefit pl

an carried over to retained earni

ngs

5. Other comprehensive income

carried over to retained earning

s

6. Others

(V) Special reserve

1. Current period appropriation

2. Current period use

(VI) Others

IV. Balance at the end of curren 31669439 19546251 152431161 20441064 -1875594 4615335 84264426 196865338

t period 03.00 4.61 35.80 8.11 9.09 90.11 8.96 15.28

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu

Shanshan

139Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Parent company statement of changes in equity for the year ended December 31 2025 (continued)

(Expressed in Renminbi Yuan)

Preceding period comparative

Other equity instruments

Items

Share capital Preferr Perpet Capital reser Less: Treas

Other comp Specia

ve ury shares rehensive in l reser

Surplus res Undistribut

ed shar ual bo Others come ve erve ed profit

Total equity

es nds

I. Balance at the end of prior ye 31795066 26691471 153246627 9413279 -4630000. 3447966 78643161 198035495

ar 70.00 4.33 35.39 5.17 00 30.77 4.32 69.64

Add: Cumulative changes of ac

counting policies

Error correction of prior pe

riod

Others

II. Balance at the beginning of c 31795066 26691471 153246627 9413279 -4630000. 3447966 78643161 198035495

urrent year 70.00 4.33 35.39 5.17 00 30.77 4.32 69.64

III. Current period increase (or l -12564878. -904.15 -81563303. -9413279 -1407000 4409931 1026179. 31059208.0ess: decrease) 00 93 5.17 0.00 9.12 80 1

(I) Total comprehensive income -1407000 44099319 426923191.

0.001.1717

(II) Capital contributed or with -12564878. -81563303. -9413279

drawn by owners 00 -904.15 93 5.17 3709.09

1. Ordinary shares contributed -12565382. -81567413. -9413279

by owners 00 17 5.17

2. Capital contributed by holder

s of other equity instruments 504.00 -904.15 4109.24 3709.09

3. Amount of share-based paym

ent included in equity

4. Others

(III) Profit distribution 4409931 -4399670 -395867692.9.12 11.37 25

1. Appropriation of surplus rese 4409931 -4409931

rve 9.12 9.12

2. Appropriation of profit to ow -3958676 -395867692.

ners 92.25 25

3. Others

(IV) Internal carry-over within

equity

1. Transfer of capital reserve to

capital

2. Transfer of surplus reserve to

capital

3. Surplus reserve to cover loss

es

4. Changes in defined benefit pl

an carried over to retained earni

ngs

5. Other comprehensive income

carried over to retained earning

s

6. Others

(V) Special reserve

1. Current period appropriation

2. Current period use

(VI) Others

IV. Balance at the end of curren 31669417 26691381 152430994 -1870000 3888959 78745779 198346087

t period 92.00 0.18 31.46 0.00 49.89 4.12 77.65

Legal representative:Ma Gang Officer in charge of accounting: Wang Qingbo Head of accounting department Wu Shanshan

140Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Infore Environment Technology Group Co. Ltd.Notes to Financial Statements

For the year ended December 31 2025

Monetary unit: RMB Yuan

I. Company profile

Infore Environment Technology Group Co. Ltd. (the “Company”) formerly known as Zhejiang Shangfeng

Industrial Co. Ltd. was registered at Zhejiang Administration for Industry and Commerce on November 18 1993.Under the approval of Zhejiang Share System Pilot Work Coordination Group with document of approval

numbered Zhe Gu [1993] 51 the Company was established by Zhejiang Fan Air Cooling Equipment Co. Ltd. the

main initiator and Shangyu Fan Factory and Shaoxing Fluid Engineering Research Institute the joint initiators

through targeted fundraising. Headquartered in Shaoxing City Zhejiang Province the Company currently holds a

business license with unified social credit code of 913300006096799222 and has registered capital of

3166941288.00 yuan and share capital of 3166943903.00 yuan. The difference between the registered capital

and share capital is because the change related to share capital increased has not been registered at the

administration for market regulation. The Company has total share of 3166943903 shares (each with par value

of one yuan) of which 1507700 shares are restricted outstanding A shares and 3165436203 shares are

unrestricted outstanding A shares. The Company’s shares were listed on the Shenzhen Stock Exchange on March

302000.

The Company belongs to the ecological protection and environmental management industry. The main business

activities include R&D sales maintenance and operation services of environmental protection equipment

sanitation operation services operation services of environmental treatment facilities environmental engineering

environmental protection engineering urban engineering sale of ventilators air-cooling water-cooling and air-

conditioning equipment etc. Its revenue is mainly from business related to smart city services intelligent cloud

computing ventilation equipment etc.The financial statements were approved and authorized for issue by the second meeting of the 11th session of the

Board of Directors dated April 27 2026.II. Preparation basis of the financial statements

(I) Preparation basis

The financial statements have been prepared on the basis of going concern.(II) Assessment of the ability to continue as a going concern

The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue

as a going concern within the 12 months after the balance sheet date.

141Infore Environment Technology Group Co. Ltd. 2025 Annual Report

III. Significant accounting policies and estimates

Important note: The Company has set up accounting policies and estimates on transactions or events such as

impairment of financial instruments inventories depreciation of fixed assets construction in progress intangible

assets revenue recognition etc. based on the Company’s actual production and operation features.(I) Statement of compliance

The financial statements have been prepared in accordance with the requirements of China Accounting Standards

for Business Enterprises (CASBEs) and present truly and completely the financial position financial performance

and cash flows of the Company.(II) Accounting period

The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.(III) Operating cycle

The Company has a relatively short operating cycle for its business an asset or a liability is classified as current if

it is expected to be realized or due within 12 months.(IV) Functional currency

The functional currency of the Company and its domestic subsidiaries is Renminbi (RMB) Yuan while the

functional currency of subsidiaries engaged in overseas operations is the currency of the primary economic

environment in which they operate.(V) Determination method and basis for selection of materiality

The Company prepares and discloses financial statements in compliance with the principle of materiality. The

items disclosed in notes to the financial statements involving materiality judgements determination method and

basis for selection of materiality are as follows:

Determination method and basis for selection of

Disclosed items involving materiality judgements

materiality

Significant accounts receivable with provision for bad

With individual balance exceeding 0.3% of total assets

debts made on an individual basis

Significant accounts receivable written off With individual balance exceeding 0.3% of total assets

Significant other receivables with provision for bad

With individual balance exceeding 0.3% of total assets

debts made on an individual basis

Significant provisions for bad debts of other

With individual balance exceeding 0.3% of total assets

receivables collected or reversed

Significant other receivables written off With individual balance exceeding 0.3% of total assets

142Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Determination method and basis for selection of

Disclosed items involving materiality judgements

materiality

Significant contract assets with provision for

With individual balance exceeding 0.3% of total assets

impairment made on an individual basis

Significant advances paid with age over one year With individual balance exceeding 0.3% of total assets

Significant construction in progress With individual balance exceeding 0.3% of total assets

Significant accounts payable with age over one year With individual balance exceeding 0.3% of total assets

Significant other payables with age over one year With individual balance exceeding 0.3% of total assets

Significant contract liabilities with age over one year With individual balance exceeding 0.3% of total assets

Contract liabilities with significant changes in carrying

With individual balance exceeding 0.3% of total assets

amount

Significant cash flows from investing activities With individual balance exceeding 10% of total assets

Significant capitalized R&D projects and outsourced

With individual balance exceeding 0.3% of total assets

R&D projects

With total assets exceeding 15% of the group’s total

Significant subsidiaries not wholly-owned subsidiaries

assets

With carrying amount of individual long-term equity

investment exceeding 15% of the group’s net assets or

Significant joint ventures and associates

with individual investment income under equity method

exceeding 15% of the group’s profit before tax

(VI) Accounting treatments of business combination under and not under common control

1. Accounting treatment of business combination under common control

Assets and liabilities arising from business combination are measured at carrying amount of the combined party

included in the consolidated financial statements of the ultimate controlling party at the combination date.Difference between carrying amount of the equity of the combined party included in the consolidated financial

statements of the ultimate controlling party and that of the combination consideration or total par value of shares

issued is adjusted to capital reserve if the balance of capital reserve is insufficient to offset any excess is adjusted

to retained earnings.

2. Accounting treatment of business combination not under common control

When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the

acquisition date the excess is recognized as goodwill; otherwise the fair value of identifiable assets liabilities

and contingent liabilities and the measurement of the combination cost are reviewed then the difference is

recognized in profit or loss.(VII) Judgement criteria for control and compilation method of consolidated financial statements

143Infore Environment Technology Group Co. Ltd. 2025 Annual Report

1. Judgement of control

An investor controls an investee if and only if the investor has all the following: (1) power over the investee; (2)

exposure or rights to variable returns from its involvement with the investee; and (3) the ability to use its power

over the investee to affect the amount of the investor’s returns.

2. Compilation method of consolidated financial statements

The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial

statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”

based on relevant information and the financial statements of the parent company and its subsidiaries.(VIII) Classification of joint arrangements and accounting treatment of joint operations

1. Joint arrangements include joint operations and joint ventures.

2. When the Company is a joint operator of a joint operation it recognizes the following items in relation to its

interest in a joint operation:

(1) its assets including its share of any assets held jointly;

(2) its liabilities including its share of any liabilities incurred jointly;

(3) its revenue from the sale of its share of the output arising from the joint operation;

(4) its share of the revenue from the sale of the assets by the joint operation; and

(5) its expenses including its share of any expenses incurred jointly.

(IX) Recognition criteria of cash and cash equivalents

Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash

equivalents refer to short-term highly liquid investments that can be readily converted to cash and that are subject

to an insignificant risk of changes in value.(X) Foreign currency translation

1. Translation of transactions denominated in foreign currency

Transactions denominated in foreign currency are translated into RMB yuan at the approximate exchange rate

similar to the spot exchange rate at the transaction date at initial recognition. At the balance sheet date monetary

items denominated in foreign currency are translated at the spot exchange rate at the balance sheet date with

difference except for those arising from the principal and interest of exclusive borrowings eligible for

capitalization included in profit or loss; non-cash items carried at historical costs are translated at the spot

exchange rate at the transaction date with the RMB amounts unchanged; non-cash items carried at fair value in

foreign currency are translated at the spot exchange rate at the date when the fair value was determined with

144Infore Environment Technology Group Co. Ltd. 2025 Annual Report

difference included in profit or loss or other comprehensive income.

2. Translation of financial statements measured in foreign currency

The assets and liabilities in the balance sheet are translated into RMB at the spot exchange rate at the balance

sheet date; the equity items other than undistributed profit are translated at the spot exchange rate at the

transaction date; the revenues and expenses in the income statement are translated into RMB at the approximate

exchange rate similar to the spot exchange rate at the transaction date. The difference arising from the

aforementioned foreign currency translation is included in other comprehensive income.(XI) Financial instruments

1. Classification of financial assets and financial liabilities

Financial assets are classified into the following three categories when initially recognized: (1) financial assets at

amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair

value through profit or loss.Financial liabilities are classified into the following four categories when initially recognized: (1) financial

liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset

does not qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee

contracts not fall within the above categories (1) and (2) and commitments to provide a loan at a below-market

interest rate which do not fall within the above category (1); (4) financial liabilities at amortized cost.

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

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

When the Company becomes a party to a financial instrument it is recognized as a financial asset or financial

liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair

value; for the financial assets and liabilities at fair value through profit or loss the transaction expenses thereof are

directly included in profit or loss; for other categories of financial assets and financial liabilities the transaction

expenses thereof are included into the initially recognized amount. However at initial recognition for accounts

receivable that do not contain a significant financing component or in circumstances where the Company does not

consider the financing components in contracts within one year they are measured at the transaction price in

accordance with “CASBE 14 – Revenues”.

(2) Subsequent measurement of financial assets

1) Financial assets measured at amortized cost

The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses

on financial assets that are measured at amortized cost and are not part of hedging relationships shall be included

into profit or loss when the financial assets are derecognized reclassified amortized using effective interest

145Infore Environment Technology Group Co. Ltd. 2025 Annual Report

method or recognized with impairment loss.

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

The Company measures its debt instrument investments at fair value. Interests impairment gains or losses and

gains and losses on foreign exchange that calculated using effective interest method shall be included into profit

or loss while other gains or losses are included into other comprehensive income. Accumulated gains or losses

that initially recognized as other comprehensive income should be transferred out into profit or loss when the

financial assets are derecognized.

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

The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as

part of investment cost recovery) shall be included into profit or loss while other gains or losses are included into

other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive

income should be transferred out into retained earnings when the financial assets are derecognized.

4) Financial assets at fair value through profit or loss

The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value

(including interests and dividends) shall be included into profit or loss except for financial assets that are part of

hedging relationships.

(3) Subsequent measurement of financial liabilities

1) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including

derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The

Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial

liabilities that are attributable to changes in the Company’s own credit risk shall be included into other

comprehensive income unless such treatment would create or enlarge accounting mismatches in profit or loss.Other gains or losses on those financial liabilities (including interests changes in fair value that are attributable to

reasons other than changes in the Company’s own credit risk) shall be included into profit or loss except for

financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized

as other comprehensive income should be transferred out into retained earnings when the financial liabilities are

derecognized.

2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the

continuing involvement approach applies

The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.

3) Financial guarantee contracts not fall within the above categories 1) and 2) and commitments to provide a loan

146Infore Environment Technology Group Co. Ltd. 2025 Annual Report

at a below-market interest rate which do not fall within the above category 1)

The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance

with impairment requirements of financial instruments; b. the amount initially recognized less the amount of

accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.

4) Financial liabilities at amortized cost

The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses

on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be

included into profit or loss when the financial liabilities are derecognized and amortized using effective interest

method.

(4) Derecognition of financial assets and financial liabilities

1) Financial assets are derecognized when:

a. the contractual rights to the cash flows from the financial assets expire; or

b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with

“CASBE 23 – Transfer of Financial Assets”.

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

financial liability be derecognized accordingly.

3. Recognition criteria and measurement method of financial assets transfer

Where the Company has transferred substantially all of the risks and rewards related to the ownership of the

financial asset it derecognizes the financial asset and any right or liability arising from such transfer is

recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related to

the ownership of the financial asset it continues recognizing the financial asset. Where the Company does not

transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset it is dealt

with according to the circumstances as follows respectively: (1) if the Company does not retain its control over the

financial asset it derecognizes the financial asset and any right or liability arising from such transfer is

recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset

according to the extent of its continuing involvement in the transferred financial asset it recognizes the related

financial asset and recognizes the relevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for derecognition the difference between the

amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred

financial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the

financial asset and the accumulative amount of the changes of the fair value originally included in other

comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt

instrument investments at fair value through other comprehensive income). If the transfer of financial asset

147Infore Environment Technology Group Co. Ltd. 2025 Annual Report

partially satisfies the conditions for derecognition the entire carrying amount of the transferred financial asset is

between the portion which is derecognized and the portion which is not apportioned according to their respective

relative fair value and the difference between the amounts of the following two items is included into profit or

loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of the portion

which is derecognized and the portion of the accumulative amount of the changes in the fair value originally

included in other comprehensive income which is corresponding to the portion which is derecognized (financial

assets transferred refer to debt instrument investments at fair value through other comprehensive income).

4. Fair value determination method of financial assets and liabilities

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data

and information are available to measure fair value. The inputs to valuation techniques used to measure fair value

are arranged in the following hierarchy and used accordingly:

(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the

Company can access at the measurement date;

(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or

liability either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active

markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than

quoted prices that are observable for the asset or liability for example interest rates and yield curves observable

at commonly quoted intervals; market-corroborated inputs;

(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not

observable and cannot be corroborated by observable market data at commonly quoted intervals historical

volatility future cash flows to be paid to fulfill the disposal obligation assumed in business combination financial

forecast developed using the Company’s own data etc.

5. Impairment of financial instruments

The Company on the basis of expected credit loss recognizes loss allowances of financial assets at amortized

cost debt instrument investments at fair value through other comprehensive income contract assets leases

receivable loan commitments other than financial liabilities at fair value through profit or loss financial

guarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities that

arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement

approach applies.Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring

as the weights. Credit loss refers to the difference between all contractual cash flows that are due to the Company

in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls)

discounted at the original effective interest rate. Among which purchased or originated credit-impaired financial

assets are discounted at the credit-adjusted effective interest rate.

148Infore Environment Technology Group Co. Ltd. 2025 Annual Report

At the balance sheet date the Company shall only recognize the cumulative changes in the lifetime expected

credit losses since initial recognition as a loss allowance for purchased or originated credit-impaired financial

assets.For leases receivable and accounts receivable and contract assets resulting from transactions regulated in

“CASBE 14 – Revenues” the Company chooses simplified approach to measure the loss allowance at an amount

equal to lifetime expected credit losses.For financial assets other than the above on each balance sheet date the Company shall assess whether the credit

risk on the financial instrument has increased significantly since initial recognition. The Company shall measure

the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses if the

credit risk on that financial instrument has increased significantly since initial recognition; otherwise the

Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected

credit loss.Considering reasonable and supportable forward-looking information the Company compares the risk of a default

occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the

financial instrument as at the date of initial recognition so as to assess whether the credit risk on the financial

instrument has increased significantly since initial recognition.The Company may assume that the credit risk on a financial instrument has not increased significantly since initial

recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet date.The Company shall estimate expected credit risk and measure expected credit losses on an individual or a

collective basis. When the Company adopts the collective basis financial instruments are grouped with similar

credit risk features.The Company shall remeasure expected credit loss on each balance sheet date and increased or reversed amounts

of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a

financial asset measured at amortized cost the loss allowance reduces the carrying amount of such financial asset

presented in the balance sheet; for a debt investment measured at fair value through other comprehensive income

the loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of

such financial asset.

6. Offsetting financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However

the Company offsets a financial asset and a financial liability and presents the net amount in the balance sheet

when and only when the Company: (1) currently has a legally enforceable right to set off the recognized amounts;

and (2) intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.For a transfer of a financial asset that does not qualify for derecognition the Company does not offset the

149Infore Environment Technology Group Co. Ltd. 2025 Annual Report

transferred asset and the associated liability.(XII) Recognition criteria and accrual method for expected credit losses of receivables and contract assets

1. Receivables and contract assets with expected credit losses measured on a collective basis by similar credit risk

features

Categories Basis for determination of Method for measuring expected creditportfolio loss

Based on historical credit loss

Bank acceptance receivable experience the current situation and the

Type of notes forecast of future economic conditionsthe Company calculates expected credit

Trade acceptance receivable loss through exposure at default and

lifetime expected credit loss rate.Based on historical credit loss

Accounts receivable – Portfolio experience the current situation and the

grouped with balances due from Balances due from relatedparties within the forecast of future economic conditionsrelated parties within the consolidation scope the Company calculates expected creditconsolidation scope loss through exposure at default and

lifetime expected credit loss rate.Based on historical credit loss

experience the current situation and the

Accounts receivable – Portfolio forecast of future economic conditions

grouped with ages Ages the Company prepares the comparisontable of ages and lifetime expected credit

loss rate of accounts receivable so as to

calculate expected credit loss.Other receivables – Portfolio grouped Balances due from related Based on historical credit loss

with balances due from related parties parties within the experience the current situation and the

within the consolidation scope consolidation scope forecast of future economic conditions

the Company calculates expected credit

Other receivables – Portfolio grouped Nature of receivables loss through exposure at default and 12-with buyer’s credit month or lifetime expected credit loss

rate.Based on historical credit loss

experience the current situation and the

Other receivables – Portfolio grouped forecast of future economic conditions

with ages Ages the Company prepares the comparisontable of ages and expected credit loss rate

of other receivables so as to calculate

expected credit loss.Long-term receivables – Portfolio Expected credit loss rates are calculated

grouped with finance lease payment/ based on five-level classification of

Long-term receivables – Portfolio credit assets of non-bank financial

grouped with receivables financing Nature of receivables institutions: 1.5% for pass category 3%

factoring payment /Accounts for special-mention category 30% for

receivable – Portfolio grouped with substandard category 60% for doubtful

commercial factoring payment category and 100% for loss category

For long-term receivables within the

Long-term receivables – Portfolio credit period that has not reached the

grouped with ages Nature of receivables contractual payment deadline provisionfor bad debts is accrued at 5% of the

balance. For long-term receivables that

150Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Categories Basis for determination of Method for measuring expected creditportfolio loss

have exceeded the contractual payment

deadline and have not yet been paid

provision for bad debts is accrued based

on the age of the balance.Based on historical credit loss

experience the current situation and the

Contract assets – Portfolio grouped forecast of future economic conditions

with ages Ages the Company prepares the comparisontable of ages and lifetime expected credit

loss rate of contract assets so as to

calculate expected credit loss.

2. Comparison table of ages and expected credit loss rate of portfolio grouped with ages

Expected credit loss rate Expected credit Expected credit loss rate of Expected credit loss rate

Expected credit loss of accounts receivable of loss rate of other receivables of of contract assets of

rate of accounts ventilation equipment other ventilation equipment ventilation equipment

Ages

receivable of parent manufacturing industry receivables of manufacturing industry and manufacturing industry

company (%) and environmental parent environmental integrated and environmental

integrated industry (%) company (%) industry (%) integrated industry (%)

1-180 days (inclusive

05055

the same hereinafter)

180 days - 1 year 2 5 2 5 5

1-2 years 10 10 10 10 10

2-3 years 30 30 30 30 30

3-5 years 50 50 50 50 50

Over 5 years 80 100 80 100 100

Ages of accounts receivable contract assets other receivables and long-term receivables are calculated from the

month when such receivables are accrued.

3. Recognition criteria for receivables and contract assets with expected credit losses measured on an individual

basis

For receivables and contract assets whose credit risk is significantly different from that of portfolios the Company

accrues expected credit losses on an individual basis.(XIII) Inventories

1. Classification of inventories

Inventories include finished goods or goods held for sale in the ordinary course of business work in process in the

process of production materials supplies etc. to be consumed in the production process or in the rendering of

services.

2. Accounting method for dispatched inventories

Inventories dispatched from storage are accounted for with weighted average method.

151Infore Environment Technology Group Co. Ltd. 2025 Annual Report

3. Inventory system

Perpetual inventory method is adopted.

4. Amortization method of low-value consumables and packages

(1) Low-value consumables

One-off method is adopted.

(2) Packages

One-off method is adopted.

5. Provision for inventory write-down

Recognition criteria and accrual method of provision for inventory write-down

At the balance sheet date inventories are measured at the lower of cost and net realizable value; provisions for

inventory write-down are made on the excess of its cost over the net realizable value. The net realizable value of

inventories held for sale is determined based on the amount of the estimated selling price less the estimated selling

expenses and relevant taxes and surcharges in the ordinary course of business; the net realizable value of

inventories to be processed is determined based on the amount of the estimated selling price less the estimated

costs of completion selling expenses and relevant taxes and surcharges in the ordinary course of business; at the

balance sheet date when only part of the same item of inventories have agreed price their net realizable value are

determined separately and are compared with their costs to set the provision for inventory write-down to be made

or reversed.(XIV) Non-current assets or disposal groups held for sale discontinued operations

1. Classification of non-current assets or disposal groups held for sale

Non-current assets or disposal groups are accounted for as held for sale when the following conditions are all met:

(1) the asset must be available for immediate sale in its present condition subject to terms that are usual and

customary for sales of such assets or disposal groups; (2) its sales must be highly probable i.e. the Company has

made a decision on the sale plan and has obtained a firm purchase commitment and the sale is expected to be

completed within one year.When the Company acquires a non-current asset or disposal group with a view to resale it shall classify the non-current asset or disposal group as held for sale at the acquisition date only if the requirement of “expected to becompleted within one year” is met at that date and it is highly probable that other criteria for held for sale will be

met within a short period (usually within three months).An asset or a disposal group is still accounted for as held for sale when the Company remains committed to its

plan to sell the asset or disposal group in the circumstance that non-related party transactions fail to be completed

152Infore Environment Technology Group Co. Ltd. 2025 Annual Report

within one year due to one of the following reasons: (1) a buyer or others unexpectedly set conditions that will

extend the sale period while the Company has taken timely actions to respond to the conditions and expects a

favorable resolution of the delaying factors within one year since the setting; (2) a non-current asset or disposal

group classified as held for sale fails to be sold within one year due to rare cases and the Company has taken

action necessary to respond to the circumstances during the initial one-year period and the criteria for held for sale

are met.

2. Accounting treatments of non-current assets or disposal groups held for sale

(1) Initial measurement and subsequent measurement

For initial measurement and subsequent measurement as at the balance sheet date of a non-current asset or

disposal group held for sale where the carrying amount is higher than the fair value less costs to sell the carrying

amount is written down to the fair value less costs to sell and the write-down is recognized in profit or loss as

assets impairment loss meanwhile provision for impairment of assets held for sale shall be made.For a non-current asset or disposal group classified as held for sale at the acquisition date the asset or disposal

group is measured on initial recognition at the lower of its initial measurement amount had it not been so

classified and fair value less costs to sell. Apart from the non-current asset or disposal group acquired through

business combination the difference arising from the initial recognition of a non-current asset or disposal group at

the fair value less costs to sell shall be included into profit or loss.The assets impairment loss recognized for a disposal group held for sale shall reduce the carrying amount of

goodwill in the disposal group first and then reduce its carrying amount based on the proportion of each non-

current asset’s carrying amount in the disposal group.No provision for depreciation or amortization shall be made on non-current assets held for sale or non-current

assets in disposal groups held for sale while interest and other expenses attributable to the liabilities of a disposal

group held for sale shall continue to be recognized.

(2) Reversal of assets impairment loss

When there is a subsequent increase in fair value less costs to sell of a non-current asset held for sale at the

balance sheet date the write-down shall be recovered and shall be reversed not in excess of the impairment loss

that has been recognized after the non-current asset was classified as held for sale. The reversal shall be included

into profit or loss. Assets impairment loss that has been recognized before the classification is not reversed.When there is a subsequent increase in fair value less costs to sell of a disposal group held for sale at the balance

sheet date the write-down shall be recovered and shall be reversed not in excess of the non-current assets

impairment loss that has been recognized after the disposal group was classified as held for sale. The reversal

shall be included into profit or loss. The reduced carrying amount of goodwill and non-current assets impairment

loss that has been recognized before the classification is not reversed.

153Infore Environment Technology Group Co. Ltd. 2025 Annual Report

For the subsequent reversal of the impairment loss that has been recognized in a disposal group held for sale the

carrying amount is increased based on the proportion of carrying amount of each non-current asset (excluding

goodwill) in the disposal group.

(3) Non-current asset or disposal group that is no longer classified as held for sale and derecognized

A non-current asset or disposal group that does not meet criteria for held for sale and no longer classified as held

for sale or a non-current asset that removed from a disposal group held for sale shall be measured at the lower of:

1) its carrying amount before it was classified as held for sale adjusted for any depreciation amortization or

impairment that would have been recognized had it not been classified as held for sale; and 2) its recoverable

amount.When a non-current asset or disposal group classified as held for sale is derecognized unrecognized gains or

losses shall be included into profit or loss.

3. Recognition criteria of discontinued operations

A component of the Company that has been disposed of or is classified as held for sale and can be clearly

distinguished is recognized as a discontinued operation when it fulfills any of the following conditions:

(1) it represents a separate major line of business or a separate geographical area of operations;

(2) it is part of a related plan to dispose of a separate major line of business or a separate geographical area of

operations; or

(3) it is a subsidiary acquired exclusively with a review to resale.

4. Presentation method of discontinued operations

The Company presents gains or losses from continuing operations and gains or losses from discontinued

operations separately in the income statement. Operating gains or losses including impairment loss of

discontinued operations and its reversal amount and gains or losses on disposal are presented as gains or losses

from discontinued operations. For discontinued operations presented in the current period the information

previously presented as gains or losses from continuing operations is reclassified as gains or losses from

discontinued operations for the comparative period in the current financial statements. For discontinued operations

that no longer meet criteria for held for sale the information previously presented as gains or losses from

discontinued operations is reclassified as gains or losses from continuing operations for the comparative period in

the current financial statements.(XV) Long-term equity investments

1. Judgment of joint control and significant influence

Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions

about the relevant activities require the unanimous consent of the parties sharing control. Significant influence is

154Infore Environment Technology Group Co. Ltd. 2025 Annual Report

the power to participate in the financial and operating policy decisions of the investee but is not control or joint

control of these policies.

2. Determination of investment cost

(1) For business combination under common control if the consideration of the combining party is that it makes

payment in cash transfers non-cash assets assumes its liabilities or issues equity securities on the date of

combination it regards the share of the carrying amount of the equity of the combined party included in the

consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The

difference between the initial cost of the long-term equity investments and the carrying amount of the combination

consideration paid or the par value of shares issued offsets capital reserve; if the balance of capital reserve is

insufficient to offset any excess is adjusted to retained earnings.When long-term equity investments are obtained through business combination under common control achieved

in stages the Company determines whether it is a “bundled transaction”. If it is a “bundled transaction” stages as

a whole are considered as one transaction in accounting treatment. If it is not a “bundled transaction” on the date

of combination investment cost is initially recognized at the share of the carrying amount of net assets of the

combined party included the consolidated financial statements of the ultimate controlling party. The difference

between the initial investment cost of long-term equity investments at the acquisition date and the carrying

amount of the previously held long-term equity investments plus the carrying amount of the consideration paid for

the newly acquired equity is adjusted to capital reserve; if the balance of capital reserve is insufficient to offset

any excess is adjusted to retained earnings.

(2) For business combination not under common control investment cost is initially recognized at the acquisition-

date fair value of considerations paid.When long-term equity investments are obtained through business combination not under common control

achieved in stages the Company determined whether they are stand-alone financial statements or consolidated

financial statements in accounting treatment:

1) In the case of stand-alone financial statements investment cost is initially recognized at the carrying amount of

the previously held long-term equity investments plus the carrying amount of the consideration paid for the newly

acquired equity.

2) In the case of consolidated financial statements the Company determines whether it is a “bundled transaction”.

If it is a “bundled transaction” stages as a whole are considered as one transaction in accounting treatment. If it is

not a “bundled transaction” the carrying amount of the acquirer’s previously held equity interest in the acquiree is

remeasured at the acquisition-date fair value and the difference between the fair value and the carrying amount is

recognized in investment income; when the acquirer’s previously held equity interest in the acquiree involves

other comprehensive income under equity method the related other comprehensive income is reclassified as

155Infore Environment Technology Group Co. Ltd. 2025 Annual Report

income for the acquisition period excluding other comprehensive income arising from changes in net liabilities or

assets from remeasurement of defined benefit plan of the acquiree.

(3) Long-term equity investments obtained through ways other than business combination: the initial cost of a

long-term equity investment obtained by making payment in cash is the purchase cost which is actually paid; that

obtained on the basis of issuing equity securities is the fair value of the equity securities issued; that obtained

through debt restructuring is determined according to “CASBE 12 – Debt Restructuring”; and that obtained

through non-cash assets exchange is determined according to “CASBE 7 – Non-cash Assets Exchange”.

3. Subsequent measurement and recognition method of profit or loss

For a long-term equity investment with control relationship it is accounted for with cost method; for a long-term

equity investment with joint control or significant influence relationship it is accounted for with equity method.

4. Disposal of a subsidiary in stages resulting in the Company’s loss of control

(1) Judgement principles of “bundled transaction”

For disposal of a subsidiary in stages resulting in the Company’s loss of control the Company determines whether

it is a “bundled transaction” based on the agreement terms for each stage disposal consideration obtained

separately object of the equity sold disposal method disposal time point etc. If the terms conditions and

economic effect of each transaction meet one or more of the following conditions these transactions are usually

considered as a “bundled transaction”:

1) these transactions are entered into at the same time or in contemplation of each other;

2) these transactions form a single transaction designed to achieve an overall commercial effect;

3) the occurrence of one transaction is dependent on the occurrence of at least one other transaction; and

4) one transaction considered on its own is not economically justified but it is economically justified when

considered together with other transactions.

(2) Accounting treatments of non-bundled transactions

1) Stand-alone financial statements

The difference between the carrying amount of the disposed equity and the consideration obtained thereof is

recognized in profit or loss. If the disposal does not result in the Company’s loss of significant influence or joint

control the remained equity is accounted for with equity method; however if the disposal results in the

Company’s loss of control joint control or significant influence the remained equity is accounted for according

to “CASBE 22 – Financial Instruments: Recognition and Measurement”.

2) Consolidated financial statements

Before the Company’s loss of control the difference between the disposal consideration and the proportionate

156Infore Environment Technology Group Co. Ltd. 2025 Annual Report

share of net assets in the disposed subsidiary from acquisition date or combination date to the disposal date is

adjusted to capital reserve (capital premium) if the balance of capital reserve is insufficient to offset any excess is

adjusted to retained earnings.When the Company loses control the remained equity is remeasured at the loss-of-control-date fair value. The

aggregated value of disposal consideration and the fair value of the remained equity less the share of net assets in

the disposed subsidiary held before the disposal from the acquisition date or combination date to the disposal date

is recognized in investment income in the period when the Company loses control over such subsidiary and

meanwhile goodwill is offset correspondingly. Other comprehensive income related to equity investments in

former subsidiary is reclassified as investment income upon the Company’s loss of control.

(3) Accounting treatment of bundled transaction

1) Stand-alone financial statements

Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment. However

before the Company loses control over a subsidiary the difference between the disposal consideration at each

stage and the carrying amount of long-term equity investments corresponding to the disposed investments is

recognized as other comprehensive income at the stand-alone financial statements and reclassified as profit or loss

in the period when the Company loses control over such subsidiary.

2) Consolidated financial statements

Stages as a whole are considered as one transaction resulting in loss of control in accounting treatment. However

before the Company loses control over a subsidiary the difference between the disposal consideration at each

stage and the proportionate share of net assets in the disposed subsidiary is recognized as other comprehensive

income at the consolidated financial statements and reclassified as profit or loss in the period when the Company

loses control over such subsidiary.(XVI) Investment property

1. Investment property includes land use right of leased-out property and of property held for capital appreciation

and buildings that have been leased out.

2. The initial measurement of investment property is based on its cost and subsequent measurement is made using

the cost model the depreciation or amortization method is the same as that of fixed assets and intangible assets.(XVII) Fixed assets

1. Recognition principles of fixed assets

Fixed assets are tangible assets held for use in the production of goods or rendering of services for rental to others

or for administrative purposes and expected to be used during more than one accounting year. Fixed assets are

recognized if and only if it is probable that future economic benefits associated with the assets will flow to the

157Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Company and the cost of the assets can be measured reliably.

2. Depreciation method of different categories of fixed assets

Categories Depreciation Useful life (years) Residual value

Annual

method proportion (%) depreciation rate(%)

Buildings and structures Straight-linemethod 3-50 3.00-5.00 1.90-32.33

General equipment Straight-linemethod 3-5 3.00-5.00 19.00-32.33

Special equipment Straight-linemethod 2-15 0.00-5.00 6.33-50.00

Transport facilities Straight-linemethod 3-15 3.00-5.00 6.33-32.33

Other equipment Straight-linemethod 3-10 5.00 9.50-31.67

(XVIII) Construction in progress

1. Construction in progress is recognized if and only if it is probable that future economic benefits associated

with the item will flow to the Company and the cost of the item can be measured reliably. Construction in

progress is measured at the actual cost incurred to reach its designed usable conditions.

2. Construction in progress is transferred into fixed assets at its actual cost when it reaches the designed usable

conditions. When the auditing of the construction in progress is not finished while reaching the designed usable

conditions it is transferred to fixed assets using estimated value first and then adjusted accordingly when the

actual cost is settled but the accumulated depreciation is not to be adjusted retrospectively.Categories Standards and time point of transferring construction in progress to fixed assets

When the design requirements or acceptance criteria for use as specified in the

Machinery

contract are met after installation and commissioning

When the completion acceptance is finished and reaching the designed usable

Engineering construction

conditions

(XIX) Borrowing costs

1. Recognition principle of borrowing costs capitalization

Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and

construction or production of assets eligible for capitalization it is capitalized and included in the costs of relevant

assets; other borrowing costs are recognized as expenses on the basis of the actual amount incurred and are

included in profit or loss.

2. Borrowing costs capitalization period

(1) The borrowing costs are not capitalized unless the following requirements are all met: 1) the asset

158Infore Environment Technology Group Co. Ltd. 2025 Annual Report

disbursements have already incurred; 2) the borrowing costs have already incurred; and 3) the acquisition and

construction or production activities which are necessary to prepare the asset for its intended use or sale have

already started.

(2) Suspension of capitalization: where the acquisition and construction or production of a qualified asset is

interrupted abnormally and the interruption period lasts for more than 3 months the capitalization of the

borrowing costs is suspended; the borrowing costs incurred during such period are recognized as expenses and

are included in profit or loss till the acquisition and construction or production of the asset restarts.

(3) Ceasing of capitalization: when the qualified asset under acquisition and construction or production is ready

for the intended use or sale the capitalization of the borrowing costs is ceased.

3. Capitalization rate and capitalized amount of borrowing costs

For borrowings exclusively for the acquisition and construction or production of assets eligible for capitalization

the to-be-capitalized amount of interests is determined in light of the actual interest expenses incurred (including

amortization of premium or discount based on effective interest method) of the special borrowings in the current

period less the interest income on the unused borrowings as a deposit in the bank or as a temporary investment;

where a general borrowing is used for the acquisition and construction or production of assets eligible for

capitalization the Company calculates and determines the to-be-capitalized amount of interests on the general

borrowing by multiplying the weighted average asset disbursement of the excess of the accumulative capital

disbursements over the special borrowings by the capitalization rate of the general borrowing used.(XX) Intangible assets

1. Intangible assets include land use right franchise patented technology software non-patented technology etc.

The initial measurement of intangible assets is based on its cost.

2. For intangible assets with finite useful lives their amortization amounts are amortized within their useful lives

systematically and reasonably if it is unable to determine the expected realization pattern reliably intangible

assets are amortized by the straight-line method with details as follows:

Items Useful life and determination basis Amortization method

Land use right 35-50 years; useful life registered on the land use Straight-line method

certificate

Franchise Contractual term Straight-line method

Patented technology 5-10 years; economic life cycle Straight-line method

Software 3-10 years; estimated economic life Straight-line method

Non-patented technology 5-10 years; economic life cycle Straight-line method

3. Permitted scope of R&D costs

159Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(1) Personnel costs

Personnel costs include wages and salaries basic endowment insurance premiums basic medical insurance

premiums unemployment insurance premiums occupational injuries premiums maternity premiums and housing

provident funds for the Company’s R&D personnel as well as labor costs for external R&D personnel.If R&D personnel serve for multiple R&D projects at the same time personnel costs are recognized based on their

working hour records provided by the Company’s administrative department and proportionately allocated among

different R&D projects.If personnel directly engaged in R&D activities and external R&D personnel are engaged in non-R&D activities at

the same time the Company based on their working hour records at different positions allocates personnel costs

actually incurred between R&D expenses and production and operating expenses using reasonable methods such

as the ratio of actual working hours.

(2) Direct input costs

Direct input costs refer to relevant expenses actually incurred by the Company for R&D activities which include:

1) materials fuel and power costs directly consumed by R&D activities; 2) development and manufacturing costs

of molds and craft equipment used for intermediate tests and trial production acquisition costs of samples

prototypes and general testing methods that do not constitute fixed assets and inspection costs of trial production;

and 3) operation and maintenance adjustment inspection testing and repairing costs of instruments and

equipment used for R&D activities.

(3) Depreciation and long-term prepayments

Depreciation refers to the depreciation of instruments equipment and in-use buildings used for R&D activities.For instruments equipment and in-use buildings both used for R&D activities and non-R&D activities necessary

records shall be kept on their usage and depreciation actually incurred is allocated between R&D expenses and

production and operating expenses in a reasonable manner based on the actual working hours the usable area etc.Long-term prepayments refer to those incurred during renovation modification decoration and repairing of R&D

facilities which are collected based on actual amount and amortized evenly over a specified period.

(4) Amortization of intangible assets

Amortization of intangible assets refer to the amortization of software intellectual property and non-patented

technology (proprietary technology licenses design and calculation methods etc.) used for R&D activities.

(5) Design expenses

Design expenses refer to expenses incurred for the conception development and manufacturing of new products

and techniques design of processes technical specifications process specification formulation operational

characteristics etc. including expenses incurred for creative design activities to obtain innovative creative and

160Infore Environment Technology Group Co. Ltd. 2025 Annual Report

breakthrough products.

(6) Equipment commissioning and testing expenses

Equipment commissioning expenses refer to expenses incurred for R&D activities during tooling preparation

including expenses incurred for activities such as development of special and specialized production machines

changes in production and quality control procedures development of new methods and standards etc.Expenses incurred for routine tooling preparation and industrial engineering for the purpose of large-scale/mass

and commercial production are not included in the permitted scope.Testing expenses include clinical trial fees for new drug development on-site testing fees for exploration and

production technologies field testing fees etc.

(7) R&D outsourcing expenses

R&D outsourcing expenses refer to expenses incurred for R&D activities outsourced to other domestic or foreign

organizations or individuals (outcomes of R&D activities are owned by the Company and closely related to the

Company’s main business operations).

(8) Other expenses

Other expenses refer to expenses other than those mentioned above that are directly related to R&D activities

including technical books and materials fees data translation fees expert consultation fees high-tech R&D

insurance premiums R&D outcomes search demonstration evaluation appraisal and acceptance fees intellectual

property application registration and agency fees conference fees business travelling fees communication fees

etc.

4. Expenditures on the research phase of an internal project are recognized as profit or loss when they are incurred.

An intangible asset arising from the development phase of an internal project is recognized if the Company can

demonstrate all of the followings: (1) the technical feasibility of completing the intangible asset so that it will be

available for use or sale; (2) its intention to complete the intangible asset and use or sell it; (3) how the intangible

asset will generate probable future economic benefits among other things the Company can demonstrate the

existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be used

internally the usefulness of the intangible asset; (4) the availability of adequate technical financial and other

resources to complete the development and to use or sell the intangible asset; and (5) its ability to measure reliably

the expenditure attributable to the intangible asset during its development.

5. Criteria for distinguishing the research phase from the development phase of an internal project to create an

intangible asset:

The planned investigation phase for acquiring new technology and knowledge should be defined as the research

phase which has the characteristics of planning and exploratory nature; before commercial production or use

when the research results or other knowledge are applied to a certain plan or design with the intention to produce

161Infore Environment Technology Group Co. Ltd. 2025 Annual Report

new or substantially improved materials devices products etc. such stage should be determined as the

development phase which has the characteristics of pertinence and greater possibility of forming results. The

Company divides the research and development phases by forming the prototype drawing and starting the

prototype trial production. Expenditures in the research phase of internal research and development projects are

included in profit or loss when they incur. When the Company enters the development phase project expenditures

are first calculated by projects under “development expenditure” and if the capitalization conditions are met they

are presented as development expenditures in the financial statements. The project will be transferred to intangible

assets when the project has the conditions for sale or mass production.(XXI) Impairment of part of long-term assets

For long-term assets such as long-term equity investments investment property at cost model fixed assets

construction in progress right-of-use assets intangible assets with finite useful lives etc. if at the balance sheet

date there is indication of impairment the recoverable amount is to be estimated. For goodwill recognized in

business combination and intangible assets with indefinite useful lives no matter whether there is indication of

impairment impairment test is performed annually. Impairment test on goodwill is performed on related asset

group or asset group portfolio.When the recoverable amount of such long-term assets is lower than their carrying amount the difference is

recognized as provision for assets impairment through profit or loss.(XXII) Long-term prepayments

Long-term prepayments are expenses that have been recognized but with amortization period over one year

(excluding one year). They are recorded with actual cost and evenly amortized within the beneficiary period or

stipulated period. If items of long-term prepayments fail to be beneficial to the following accounting periods

residual values of such items are included in profit or loss.(XXIII) Employee benefits

1. Employee benefits include short-term employee benefits post-employment benefits termination benefits and

other long-term employee benefits.

2. Short-term employee benefits

The Company recognizes in the accounting period in which an employee provides service short-term employee

benefits actually incurred as liabilities with a corresponding charge to profit or loss or the cost of a relevant asset.

3. Post-employment benefits

The Company classifies post-employment benefit plans as either defined contribution plans or defined benefit

plans.

(1) The Company recognizes in the accounting period in which an employee provides service the contribution

162Infore Environment Technology Group Co. Ltd. 2025 Annual Report

payable to a defined contribution plan as a liability with a corresponding charge to profit or loss or the cost of a

relevant asset.

(2) Accounting treatment by the Company for defined benefit plan usually involves the following steps:

1) In accordance with the projected unit credit method using unbiased and mutually compatible actuarial

assumptions to estimate related demographic variables and financial variables measure the obligations under the

defined benefit plan and determine the periods to which the obligations are attributed. Meanwhile the Company

discounts obligations under the defined benefit plan 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 Company recognizes the deficit or surplus by deducting the fair

value of defined benefit plan assets from the present value of the defined benefit plan obligation as a net defined

benefit plan liability or net defined benefit plan asset. When a defined benefit plan has a surplus the Company

measures the net defined benefit plan asset at the lower of the surplus in the defined benefit plan and the asset

ceiling;

3) At the end of the period the Company recognizes the following components of employee benefits cost arising

from defined benefit plan: a. service cost; b. net interest on the net defined benefit plan liability (asset); and c.changes as a result of remeasurement of the net defined benefit liability (asset). Item a and item b are recognized

in profit or loss or the cost of a relevant asset. Item c is recognized in other comprehensive income and is not to be

reclassified subsequently to profit or loss. However the Company may transfer those amounts recognized in other

comprehensive income within equity.

4. Termination benefits

Termination benefits provided to employees are recognized as an employee benefit liability for termination

benefits with a corresponding charge to profit or loss at the earlier of the following dates: (1) when the Company

cannot unilaterally withdraw the offer of termination benefits because of an employment termination plan or a

curtailment proposal; or (2) when the Company recognizes cost or expenses related to a restructuring that involves

the payment of termination benefits.

5. Other long-term employee benefits

When other long-term employee benefits provided to the employees satisfied the conditions for classifying as a

defined contribution plan those benefits are accounted for in accordance with the requirements relating to defined

contribution plan while other benefits are accounted for in accordance with the requirements relating to defined

benefit plan. The Company recognizes the cost of employee benefits arising from other long-term employee

benefits as the followings: (1) service cost; (2) net interest on the net liability or net assets of other long-term

employee benefits; and (3) changes as a result of remeasurement of the net liability or net assets of other long-

term employee benefits. As a practical expedient the net total of the aforesaid amounts is recognized in profit or

loss or included in the cost of a relevant asset.

163Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(XXIV) Provisions

1. Provisions are recognized when fulfilling the present obligations arising from contingencies such as providing

guarantee for other parties litigation products quality guarantee onerous contract etc. may cause the outflow of

the economic benefit and such obligations can be reliably measured.

2. The initial measurement of provisions is based on the best estimated expenditures required in fulfilling the

present obligations and its carrying amount is reviewed at the balance sheet date.(XXV) Share-based payment

1. Types of share-based payment

Share-based payment consists of equity-settled share-based payment and cash-settled share-based payment.

2. Accounting treatment for settlements modifications and cancellations of share-based payment plans

(1) Equity-settled share-based payment

For equity-settled share-based payment transaction with employees if the equity instruments granted vest

immediately the fair value of those equity instruments is measured at grant date and recognized as transaction

cost or expense with a corresponding adjustment in capital reserve; if the equity instruments granted do not vest

until the counterparty completes a specified period of service or fulfills certain performance conditions at the

balance sheet date within the vesting period the fair value of those equity instruments measured at grant date

based on the best estimate of the number of equity instruments expected to vest is recognized as transaction cost

or expense with a corresponding adjustment in capital reserve.For equity-settled share-based payment transaction with parties other than employees if the fair value of the

services received can be measured reliably the fair value is measured at the date the Company receives the

service; if the fair value of the services received cannot be measured reliably but that of equity instruments can be

measured reliably the fair value of the equity instruments granted measured at the date the Company receives the

service is referred to and recognized as transaction cost or expense with a corresponding increase in equity.

(2) Cash-settled share-based payment

For cash-settled share-based payment transactions with employees if share appreciation rights vest immediately

the fair value of the liability incurred as the acquisition of services is measured at grant date and recognized as

transaction cost or expense with a corresponding increase in liabilities; if share appreciation rights do not vest

until the employees have completed a specified period of service or fulfills certain performance conditions the

liability is measured at each balance sheet date until settled at the fair value of the share appreciation rights

measured at grant date based on the best estimate of the number of share appreciation right expected to vest.

(3) Modifications and cancellations of share-based payment plan

If the modification increases the fair value of the equity instruments granted the Company includes the

164Infore Environment Technology Group Co. Ltd. 2025 Annual Report

incremental fair value granted in the measurement of the amount recognized for services received as consideration

for the equity instruments granted; similarly if the modification increases the number of equity instruments

granted the Company includes the fair value of the additional equity instruments granted in the measurement of

the amount recognized for services received as consideration for the equity instruments granted; if the Company

modifies the vesting conditions in a manner that is beneficial to the employee the Company takes the modified

vesting conditions into account.If the modification reduces the fair value of the equity instruments granted the Company does not take into

account that decrease in fair value and continue to measure the amount recognized for services received as

consideration for the equity instruments based on the grant date fair value of the equity instruments granted; if the

modification reduces the number of equity instruments granted to an employee that reduction is accounted for as

a cancellation of that portion of the grant; if the Company modifies the vesting conditions in a manner that is not

beneficial to the employee the Company does not take the modified vesting conditions into account.If the Company cancels or settles a grant of equity instruments during the vesting period (other than that cancelled

when the vesting conditions are not satisfied) the Company accounts for the cancellation or settlement as an

acceleration of vesting and therefore recognizes immediately the amount that otherwise would have been

recognized for services received over the remainder of the vesting period.(XXVI) Other financial instruments such as preferred shares and perpetual bonds

Pursuant to CASBEs on financial instruments and “Regulations on Accounting Treatments of Perpetual Bonds”

(Cai Kuai [2019] No. 2) issued by the Ministry of Finance for financial instruments such as convertible bonds etc.

the Company classifies a financial instrument or its components at initial recognition as a financial asset or

liability or equity instrument based on contract terms and economic essence it reveals instead of its legal form

combining with the definitions of financial asset liability and equity instrument.At the balance sheet date for a financial instrument classified as an equity instrument its interest expenditure or

dividend distribution is treated as profit distribution and share repurchase and cancelation are treated as changes

in equity; for a financial instrument classified as a financial liability its interest expenditure or dividend

distribution is treated as borrowing expense and gain or loss on repurchase or redemption is included in profit or

loss.(XXVII) Revenue

1. Revenue recognition principles

At contract inception the Company shall assess the contracts and shall identify each performance obligation in the

contracts and determine whether the performance obligation should be satisfied over time or at a point in time.The Company satisfies a performance obligation over time if one of the following criteria is met otherwise the

performance obligation is satisfied at a point in time: (1) the customer simultaneously receives and consumes the

165Infore Environment Technology Group Co. Ltd. 2025 Annual Report

economic benefits provided by the Company’s performance as the Company performs; (2) the customer can

control goods as they are created by the Company’s performance; (3) goods created during the Company’s

performance have irreplaceable uses and the Company has an enforceable right to the payments for performance

completed to date during the whole contract period.For each performance obligation satisfied over time the Company shall recognize revenue over time by

measuring the progress towards complete satisfaction of that performance obligation. In the circumstance that the

progress cannot be measured reasonably but the costs incurred in satisfying the performance obligation are

expected to be recovered the Company shall recognize revenue only to the extent of the costs incurred until it can

reasonably measure the progress. For each performance obligation satisfied at a point in time the Company shall

recognize revenue at the time point that the customer obtains control of relevant goods or services. To determine

whether the customer has obtained control of goods the Company shall consider the following indications: (1) the

Company has a present right to payments for the goods i.e. the customer is presently obliged to pay for the goods;

(2) the Company has transferred the legal title of the goods to the customer i.e. the customer has legal title to the

goods; (3) the Company has transferred physical possession of the goods to the customer i.e. the customer has

physically possessed the goods; (4) the Company has transferred significant risks and rewards of ownership of the

goods to the customer i.e. the customer has obtained significant risks and rewards of ownership of the goods; (5)

the customer has accepted the goods; (6) other evidence indicating the customer has obtained control over the

goods.

2. Revenue measurement principle

(1) Revenue is measured at the amount of the transaction price that is allocated to each performance obligation.

The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for

transferring goods or services to a customer excluding amounts collected on behalf of third parties and those

expected to be refunded to the customer.

(2) If the consideration promised in a contract includes a variable amount the Company shall confirm the best

estimate of variable consideration at expected value or the most likely amount. However the transaction price that

includes the amount of variable consideration only to the extent that it is high probable that a significant reversal

in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable

consideration is subsequently resolved.

(3) In the circumstance that the contract contains a significant financing component the Company shall determine

the transaction price based on the price that a customer would have paid for if the customer had paid cash for

obtaining control over those goods or services. The difference between the transaction price and the amount of

promised consideration is amortized under effective interest method over contractual period. The effects of a

significant financing component shall not be considered if the Company expects at the contract inception that the

period between when the customer obtains control over goods or services and when the customer pays

consideration will be one year or less.

166Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(4) For contracts containing two or more performance obligations the Company shall determine the stand-alone

selling price at contract inception of the distinct good underlying each performance obligation and allocate the

transaction price to each performance obligation on a relative stand-alone selling price basis.

3. Revenue recognition method

The Company mainly sells environmental and sanitation machinery ventilation equipment etc. and engages in

sanitation operation service and intelligent cloud computing service.

(1) Sale of environmental and sanitation machinery is a performance obligation satisfied at a point in time.

Revenue from domestic sales is recognized when the products have been delivered and accepted and the

Company has collected the payments or has obtained the right to the payments and related economic benefits are

highly probable to flow to the Company. Revenue from overseas sales is recognized when the Company has

declared goods to the customs based on contractual agreements and has obtained a bill of lading or when the

Company has delivered goods to the designated address as agreed by contract and such delivered goods have been

delivered to customers and the Company has collected the payments or has obtained the right to the payments

and related economic benefits are highly probable to flow to the Company.

(2) Sale of ventilation equipment is a performance obligation satisfied at a point in time. Revenue from domestic

sales of products that do not require installation is recognized when the Company has delivered goods to the

designated address as agreed by contract and such delivered goods have been verified for acceptance by customers

and the Company has obtained delivery receipts and has collected the payments or has obtained the right to the

payments and related economic benefits are highly probable to flow to the Company. For products that need to be

installed revenue is recognized when the products are delivered and qualified for installation commissioning and

acceptance. Revenue from overseas sales is recognized when the Company has declared goods to the customs

based on contractual agreements and has obtained a bill of lading and the Company has collected the payments or

has obtained the right to the payments and related economic benefits are highly probable to flow to the Company.

(3) Comprehensive environmental and sanitation management engineering is a performance obligation satisfied

over time. Revenue is recognized based on the performance progress according to the project progress confirmed

by the supervisor.

(4) Sanitation operation service is a performance obligation satisfied over time. Revenue is recognized based on

the service assessment statement confirmed by the labor receiving party etc.

(5) Computility service is a performance obligation satisfied over time. Revenue is recognized based on the

performance progress according to service volume confirmed by customers.

(6) For revenue recognition method of PPP business with BOT model etc. please refer to section III (XXXV) 1

of notes to the financial statements for details.(XXVIII) Costs to obtain a contract and costs to fulfill a contract

167Infore Environment Technology Group Co. Ltd. 2025 Annual Report

The Company recognizes as an asset the incremental costs to obtain a contract if those costs are expected to be

recovered. The costs to obtain a contract shall be included into profit or loss when incurred if the amortization

period of the asset is one year or less.If the costs incurred in fulfilling a contract are not within the scope of standards related to inventories fixed assets

or intangible assets etc. the Company shall recognize the costs to fulfill a contract as an asset if all the following

criteria are satisfied:

1. the costs relate directly to a contract or to an anticipated contract including direct labor direct materials

manufacturing overhead cost (or similar cost) costs that are explicitly chargeable to the customer under the

contract and other costs that are only related to the contract;

2. the costs enhance resources of the Company that will be used in satisfying performance obligations in the future;

and

3. the costs are expected to be recovered.

An asset related to contract costs shall be amortized on a systematic basis that is consistent with related goods or

services with amortization included into profit or loss.The Company shall make provision for impairment and recognize an impairment loss to the extent that the

carrying amount of an asset related to contract costs exceeds the remaining amount of consideration that the

Company expects to receive in exchange for the goods or services to which the asset relates less the costs

expected to be incurred. The Company shall recognize a reversal of an impairment loss previously recognized in

profit or loss when the impairment conditions no longer exist or have improved. The carrying amount of the asset

after the reversal shall not exceed the amount that would have been determined on the reversal date if no provision

for impairment had been made previously.(XXIX) Contract assets contract liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationship between

its performance obligations and customers’ payments. Contract assets and contract liabilities under the same

contract shall offset each other and be presented on a net basis.The Company presents an unconditional right to consideration (i.e. only the passage of time is required before the

consideration is due) as a receivable and presents a right to consideration in exchange for goods that it has

transferred to a customer (which is conditional on something other than the passage of time) as a contract asset.The Company presents an obligation to transfer goods to a customer for which the Company has received

consideration (or the amount is due) from the customer as a contract liability.(XXX) Government grants

1. Government grants shall be recognized if and only if the following conditions are all met: (1) the Company

168Infore Environment Technology Group Co. Ltd. 2025 Annual Report

will comply with the conditions attaching to the grants; (2) the grants will be received. Monetary government

grants are measured at the amount received or receivable. Non-monetary government grants are measured at fair

value and can be measured at nominal amount in the circumstance that fair value cannot be assessed.

2. Government grants related to assets

Government grants related to assets are government grants with which the Company purchases constructs or

otherwise acquires long-term assets under requirements of government. In the circumstances that there is no

specific government requirement the Company shall determine based on the primary condition to acquire the

grants and government grants related to assets are government grants whose primary condition is to construct or

otherwise acquire long-term assets. They offset carrying amount of relevant assets or they are recognized as

deferred income. If recognized as deferred income they are included in profit or loss on a systematic basis over

the useful lives of the relevant assets. Those measured at notional amount are directly included into profit or loss.For assets sold transferred disposed or damaged within the useful lives balance of unamortized deferred income

is transferred into profit or loss of the period in which the disposal occurred.

3. Government grants related to income

Government grants related to income are government grants other than those related to assets. For government

grants that contain both parts related to assets and parts related to income in which those two parts are blurred

they are thus collectively classified as government grants related to income. For government grants related to

income used for compensating the related future cost expenses or losses they are recognized as deferred income

and included in profit or loss or used to offset relevant cost during the period in which the relevant cost expenses

or losses are recognized; for government grants related to income used for compensating the related cost

expenses or losses incurred to the Company they are directly included in profit or loss or used to offset relevant

cost.

4. Government grants related to the ordinary course of business shall be included into other income or used to

offset relevant cost based on business nature while those not related to the ordinary course of business shall be

included into non-operating revenue or expenditures.(XXXI) Deferred tax assets and deferred tax liabilities

1. Deferred tax assets or deferred tax liabilities are calculated and recognized based on the difference between the

carrying amount and tax base of assets and liabilities (and the difference of the carrying amount and tax base of

items not recognized as assets and liabilities but with their tax base being able to be determined according to tax

laws) and in accordance with the tax rate applicable to the period during which the assets are expected to be

recovered or the liabilities are expected to be settled.

2. A deferred tax asset is recognized to the extent of the amount of the taxable income which is most likely to

obtain and which can be deducted from the deductible temporary difference. At the balance sheet date if there is

any exact evidence indicating that it is probable that future taxable income will be available against which

169Infore Environment Technology Group Co. Ltd. 2025 Annual Report

deductible temporary differences can be utilized the deferred tax assets unrecognized in prior periods are

recognized.

3. At the balance sheet date the carrying amount of deferred tax assets is reviewed. The carrying amount of a

deferred tax asset is reduced to the extent that it is no longer probable that sufficient taxable income will be

available to allow the benefit of the deferred tax asset to be utilized. Such reduction is subsequently reversed to

the extent that it becomes probable that sufficient taxable income will be available.

4. The income tax and deferred tax for the period are treated as income tax expenses or income through profit or

loss excluding those arising from the following circumstances: (1) business combination; and (2) the transactions

or items directly recognized in equity.

5. Deferred tax assets and deferred tax liabilities shall offset each other and be presented on a net basis when the

following conditions are all met: (1) the Company has the legal right to settle off current tax assets against current

tax liabilities; (2) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same

tax authority on either: 1) the same taxable entity; or 2) different taxable entities which intend either to settle

current tax liabilities and assets on a net basis or to realize the assets and settle the liabilities simultaneously in

each future period in which significant amounts of deferred tax assets or liabilities are expected to be recovered or

settled.(XXXII) Leases

1. The Company as the lessee

At the commencement date the Company recognizes a lease that has a lease term of 12 months or less as a short-

term lease which shall not contain a purchase option; the Company recognizes a lease as a lease of a low-value

asset if the underlying asset is of low value when it is new. If the Company subleases an asset or expects to

sublease an asset the head lease does not qualify as a lease of a low-value asset.For all short-term leases and leases of low-value assets lease payments are recognized as cost or profit or loss

with straight-line method over the lease term.Apart from the above-mentioned short-term leases and leases of low-value assets with simplified approach the

Company recognizes right-of-use assets and lease liabilities at the commencement date.

(1) Right-of-use assets

The right-of-use asset is measured at cost and the cost shall comprise: 1) the amount of the initial measurement of

the lease liabilities; 2) any lease payments made at or before the commencement date less any lease incentives

received; 3) any initial direct costs incurred by the lessee; and 4) an estimate of costs to be incurred by the lessee

in dismantling and removing the underlying asset restoring the site on which it is located or restoring the

underlying asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use asset using the straight-line method. If it is reasonable to be certain that

170Infore Environment Technology Group Co. Ltd. 2025 Annual Report

the ownership of the underlying asset can be acquired by the end of the lease term the Company depreciates the

right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise the

Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life

of the right-of-use asset or the end of the lease term.

(2) Lease liabilities

At the commencement date the Company measures the lease liability at the present value of the lease payments

that are not paid at that date discounted using the interest rate implicit in the lease. If that rate cannot be readily

determined the Company’s incremental borrowing rate shall be used. Unrecognized financing expenses

calculated at the difference between the lease payment and its present value are recognized as interest expenses

over the lease term using the discount rate which has been used to determine the present value of lease payment

and included in profit or loss. Variable lease payments not included in the measurement of lease liabilities are

included in profit or loss in the periods in which they are incurred.After the commencement date if there is a change in the following items: 1) actual fixed payments; 2) amounts

expected to be payable under residual value guarantees; 3) an index or a rate used to determine lease payments; 4)

assessment result or exercise of purchase option extension option or termination option the Company remeasures

the lease liability based on the present value of lease payments after changes and adjusts the carrying amount of

the right-of-use asset accordingly. If the carrying amount of the right-of-use asset is reduced to zero but there shall

be a further reduction in the lease liability the remaining amount shall be recognized into profit or loss.

2. The Company as the lessor

At the commencement date the Company classifies a lease as a finance lease if it transfers substantially all the

risks and rewards incidental to ownership of an underlying asset. Otherwise it is classified as an operating lease.

(1) Operating lease

Lease receipts are recognized as lease income with straight-line method over the lease term. Initial direct costs

incurred shall be capitalized amortized on the same basis as the recognition of lease income and included into

profit or loss by installments. Variable lease payments related to operating lease which are not included in the

lease payment are charged as profit or loss in the periods in which they are incurred.

(2) Finance lease

At the commencement date the Company recognizes the finance lease payment receivable based on the net

investment in the lease (sum of the present value of unguaranteed residual value and lease receipts that are not

received at the commencement date discounted by the interest rate implicit in the lease) and derecognizes assets

held under the finance lease. The Company calculates and recognizes interest income using the interest rate

implicit in the lease over the lease term.Variable lease payments not included in the measurement of the net investment in the lease are charged as profit

171Infore Environment Technology Group Co. Ltd. 2025 Annual Report

or loss in the periods in which they are incurred.

3. Sale and leaseback

(1) The Company as the lessee

In accordance with the “CASBE 14 – Revenues” the Company would assess and determine whether the transfer

of an asset in the sale and leaseback transaction is accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company measures the right-of-use asset

arising from the leaseback at the proportion of the original carrying amount of the asset that relates to the right of

use retained by the Company. Accordingly the Company recognizes only the amount of any gain or loss that

relates to the rights transferred to the lessor.Otherwise the Company continues the recognition of the transferred assets and recognizes a financial liabilityequal to the amount of transfer income in accordance with the “CASBE 22 – Financial Instruments: Recognitionand Measurement” at the same time.

(2) The Company as the lessor

In accordance with the “CASBE 14 – Revenues” the Company would assess and determine whether the transfer

of an asset in the sale and leaseback transaction is accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company accounts for the purchase of assets inaccordance with other applicable standards and accounts for the lease of assets in accordance with the “CASBE

21 – Leases”.

Otherwise the Company does not recognize the transferred asset but recognizes a financial asset equal to theamount of transfer income in accordance with the “CASBE 22 – Financial Instruments: Recognition andMeasurement”.(XXXIII) Work safety fundThe Company appropriates work safety fund in accordance with the “Circular on Management Measures on theAppropriation and Use of Work Safety Fund” (Cai Zi [2022] No. 136) issued by the Ministry of Finance and the

Ministry of Emergency Management. Standard work safety fund is included in the cost or profit or loss

meanwhile accounted for under “special reserve”. When work safety fund is used as an expense it is to offset

special reserve directly. When work safety fund is qualified to be included in the cost of fixed assets it is

accounted for under “construction in progress” and transferred to fixed assets when related safety projects reach

the designed useful conditions; meanwhile the cost included in fixed assets is to offset “special reserve” and

accumulated depreciation shall be recognized at the same amount. Such fixed assets shall not be depreciated in

future periods.(XXXIV) Segment reporting

172Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Operating segments are determined based on the structure of the Company’s internal organization management

requirements and internal reporting system. An operating segment is a component of the Company:

1. that engages in business activities from which it may earn revenues and incur expenses;

2. whose financial performance is regularly reviewed by the Management to make decisions about resource to be

allocated to the segment and to assess its performance; and

3. for which accounting information regarding financial position financial performance and cash flows is

available through analysis.(XXXV) Other significant accounting policies and estimates

1. PPP business

The Company adopts the build-operate-transfer approach (PPP projects mainly using BOT TOT etc.) to

participate in the public infrastructure business. The project company obtains the franchise of public infrastructure

projects from government departments and participates in the construction and operation of the project. After the

franchise expires the project company needs to hand over relevant infrastructure to the government or the

department designated by the government.For the PPP project contract under which the Company provides multiple services (such as the rendering of

construction services of PPP projects as well as post-completion operation services and maintenance services) theCompany identifies each performance obligation in the contracts in accordance with the provisions of “CASBE 14– Revenues” and allocates the transaction price to each performance obligation on the basis of the relative stand-

alone selling prices. If the stand-alone selling price cannot be directly observed or if there is a lack of similar

market prices the Company will take into account market conditions specific factors of the Company and

information related to customers and other relevant information and make a reasonable estimate of the stand-

alone selling price using methods such as market adjustment method cost-plus method residual value method etc.Construction services are performance obligations satisfied over time. Revenue from construction services is

recognized by the percentage of completion of the performance obligations which is determined based on the

proportion of the incurred costs to the estimated total costs. In the circumstance that the percentage of completion

cannot be measured reasonably but the incurred costs are expected to be recovered the Company recognizes

revenue only to the extent of the incurred costs until it can reasonably measure the percentage of completion.The Company has the right to charge users of public goods and services during the operation of the project in

accordance with the PPP project contracts. However if the amount of the fees is uncertain such right does not

constitute an unconditional right to receive cash and the consideration or construction revenue of the relevant PPP

project assets is recognized as intangible assets when the PPP project assets reach the designed useful conditions

which shall be accounted for in accordance with “CASBE 6 – Intangible Assets”.If the Company is qualified to have the right to receive a determinable amount of cash (or other financial assets)

173Infore Environment Technology Group Co. Ltd. 2025 Annual Report

during the operation of the project in accordance with the PPP project contracts such amount is recognized as

accounts receivable when the Company has the right to such consideration (the right depends only on the factor ofthe passage of time) and is accounted for in accordance with “CASBE 22 – Financial Instruments: Recognitionand Measurement”. The Company recognizes the difference between the consideration or construction revenue of

the relevant PPP project assets and the determinable amount of cash (or other financial assets) as intangible assets

when the PPP project assets reach the designed useful conditions.For the portion of the consideration or construction revenue recognized as intangible assets the contract assets

recognized during the relevant construction period are presented under “intangible assets” in the balance sheet; for

other contract assets recognized during the construction period they are presented under “contract assets” or

“other non-current assets” in the balance sheet if they are expected to be realized within twelve months of the

balance sheet date.After the PPP project assets reach the designed useful conditions the Company recognizes revenue related to

operating services in accordance with “CASBE 14 – Revenues”.

2. Accounting treatment related to share repurchase

When the Company repurchases its shares for the purpose of reducing its registered capital or rewarding its

employees if the purchased shares are to be kept as treasury shares the treasury shares are recorded at the cash

distributed to existing shareholders for repurchase; if the purchased shares are to be retired the difference between

the total book value of shares retired and the cash distributed to existing shareholders for repurchase is to reduce

capital reserve or retained earnings when the capital reserve is not enough to reduce. If the Company repurchases

vested equity instruments in equity-settled share-based payment transactions with employees cost of treasury

shares granted to employees and capital reserve (other capital reserve) accumulated within the vesting period are

to be written off on the payment made to employees with a corresponding adjustment in capital reserve (share

premium).IV. Taxes

(I) Main taxes and tax rates

Taxes Tax bases Tax rates

3% 6% 9% 13%. Exported

The output tax calculated based on the revenue goods are subject to

Value-added tax from sales of goods or rendering of services in “exemption credit refund”

(VAT) accordance with the tax law net of the input tax that policies with refund rate of

is allowed to be deducted in the current period 13% [Note 2].For housing property levied on the basis of price

housing property tax is levied at the rate of 1.2% of

Housing property tax the balance after deducting 30% [Note 1] of thecost; for housing property levied on the basis of 1.2% 12%

rent housing property tax is levied at the rate of

12% of lease income

174Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Taxes Tax bases Tax rates

Urban maintenance

and construction tax Turnover tax actually paid 7% 5%

Education surcharge Turnover tax actually paid 3%

Local education

surcharge Turnover tax actually paid 2% 1%

Enterprise income tax Taxable income 15% 20% 25% [Note 2]

Note 1: For Changsha Zoomlion Environmental Industry Co. Ltd. (the “Zoomlion Environmental Company”) and

some of its subsidiaries housing property tax is levied on the basis of price and calculated at the rate of 1.2% of

the balance after deducting 20% of the cost.Note 2: The overseas subsidiaries are subject to local tax regulations of the places where they operate.Different enterprise income tax rates applicable to different taxpayers:

Taxpayers Income tax rate

Guangdong Infore Technology Co. Ltd. (the “Infore Technology Company”) 15%

Zoomlion Environmental Company 15%Zhejiang Shangfeng Special Blower Industrial Co. Ltd. (the “Shangfeng Industrial

15%Company”)

Fengyun IoT Technology Co. Ltd. 15%

Huaian Chenjie Environmental Engineering Co. Ltd. 15%

Zhejiang Yolsh Electric Drive Technology Co. Ltd. (the “Yolsh Company”) 15%Xiantao Green Oriental Environmental Power Generation Co. Ltd. (the “Xiantao

15%Company”)

25% 20% for small

Taxpayers other than the above-mentioned enterprises with meager

profit

(II) Tax preferential policies

1. Enterprise income tax

No. Name of entities Tax preferential policies

Shangfeng Industrial Company Infore Pursuant to the preferential income tax policy for high-

1 tech enterprises enterprise income tax rate is reduced to

Technology Company 15% from 2025 to 2027.Zoomlion Environmental Company Pursuant to the preferential income tax policy for high-

2 Fengyun IoT Technology Co. Ltd. tech enterprises enterprise income tax rate is reduced to

Huaian Chenjie Environmental 15% from 2023 to 2025.Engineering Co. Ltd. Yolsh Company

175Infore Environment Technology Group Co. Ltd. 2025 Annual Report

No. Name of entities Tax preferential policies

Xiantao CompanyPursuant to the “Announcement of Ministry of Finance(MOF) and State Taxation Administration (STA) on

Subsidiaries including Shenzhen Infore

Further Implementation of the Enterprises Income Tax

City Service Intelligent Technology Co.Ltd. Foshan Liansheng Environmental Preferential Policies for Small Enterprises with Meager

3 Profit and Individually-Owned Businesses”

Sanitation Service Co. Ltd. Dingnan

(Announcement [2023] No. 12) from January 1 2023 to

Zoomlion Environmental Industry Co.December 31 2027 the enterprise income tax for the

Ltd. etc.portion of the taxable income within 3 million yuan is

levied at 20% based on 25% of that portion of income.Pursuant to the “Law of the People’s Republic of Chinaon Enterprise Income Tax” and its implementationregulations the “Notice of MOF STA and NationalDevelopment and Reform Commission (NDRC) on

Publishing the Catalog of Enterprise Income Tax

Subsidiaries and sub-subsidiaries Preferences for Environmental Protection Energy Savingincluding Pingdingshan Yinghe and Water Saving Projects (Trial)” (Cai Shui [2009] No.Environmental Sanitation Management 166) (the “2009 Catalog”) the project companies are

4 Co. Ltd. Heyang Yinghe Urban entitled to enjoy the preferential policy of three-year

Environmental Service Co. Ltd. exemption from the first profit-making year followed by

Huai’an Yinghe Environmental three years of 50% reduction of enterprise income tax.Technology Co. Ltd. etc. Pursuant to the “Announcement No. 36 2021 of MOFSTA NDRC and Ministry of Ecology and Environment”

issued by four departments including the MOF dated

December 16 2021 the entities’ business comply with the

“2021 Catalog” and relevant projects can still enjoy the

above preferential policy.Pursuant to the document numbered Guo Ban Han [2012]

103 by the State Council newly established enterprises

that settle in the Ruili Pilot Zone are entitled to enjoy the

five-year-exemption and five-year-half-reduction policy

for the enterprise income tax shared by the local authority

Ruili Yinglian Environmental Industry

5 of the region (40% of total enterprise income tax) i.e.

Co. Ltd.they enjoy enterprise income tax exemption from 2021 to

2025 and enjoy a 50% reduction in income from 2026 to

2030 while for the enterprise income tax shared by

central government (60%) they enjoy the preferential

policy as small enterprises with meager profit.

2. VAT

(1) Pursuant to the “Notice of MOF and STA on VAT Policies for Software Products” (Cai Shui [2011] No.

100) general VAT taxpayers who sell software products developed and produced by themselves are subject

to VAT refund upon collection for the amount exceeding 3% of their actual VAT burdens. In 2025 the

176Infore Environment Technology Group Co. Ltd. 2025 Annual Report

subsidiary Zoomlion Environmental Company is entitled to enjoy the VAT refund upon collection policy for

sale of their self-developed and self-produced software products.

(2) Pursuant to the “Notice of MOF and STA on Extra VAT Deduction Policy for Advanced ManufacturingEnterprises” (Announcement of MOF and STA [2023] No. 43) from January 1 2023 to December 31 2027

advanced manufacturing enterprises are eligible to enjoy an extra 5% VAT credit. In 2025 the subsidiaries

Zoomlion Environmental Company Infore Technology Company Shangfeng Industrial Company and Yolsh

Company are entitled to enjoy such preferential policy.

(3) Pursuant to Article 2 of the “Announcement of MOF and STA on Improving VAT Policy for ImprovingComprehensive Utilization of Resources” (Announcement of MOF and STA [2021] No. 40) enterprises

producing electricity and heat products with fuel from garbage and biogas resources produced by garbage

fermentation are entitled to enjoy 100% VAT refund upon collection. Pursuant to Article 5 enterprises

rendering garbage treatment and sewage treatment services are entitled to enjoy 70% VAT refund upon

collection. The subsidiary Huaian Chenjie Environmental Engineering Co. Ltd. is entitled to enjoy such

preferential policy in the current period.

(4) Pursuant to the “Measures for the Implementation of the Pilot Implementation of VAT Reform for theTransportation Industry and Certain Modern Service Industries” (Cai Shui [2011] No. 111) revenue from

technology transfer technology development and related technical consulting and technical service

businesses is exempt from VAT. In 2025 the subsidiary Shenzhen Dingzhu Environmental Technology Co.Ltd. meets the condition and is exempt from VAT.

(5) Pursuant to the “Announcement of MOF STA and Ministry of Veterans Affairs (MVA) on Tax Policiesfor Further Supporting the Business Startup by and the Employment of Veterans Seeking IndependentEmployment” (Announcement of MOF STA and MVA [2023] No. 14) from January 1 2023 to December

31 2027 if an enterprise enters into an employment contract with veteran seeking independent employment

for a term of one year or more and pays social insurance premiums in accordance with the law it may enjoy

a credit within the standard quota against in sequential order VAT urban maintenance and construction tax

educational surcharge local education surcharges and enterprise income tax according to the number of

persons actually employed for three years from the month when the employment contract is signed and the

social premiums are paid. In 2025 the subsidiaries Huaian Chenjie Environmental Engineering Co. Ltd.Changsha Zhongbiao Environmental Industry Co. Ltd. Zoomlion Environmental Company and some of its

subsidiaries are entitled to enjoy such tax reduction and exemption policy.

(6) Pursuant to the “Announcement of the MOF SAT Ministry of Human Resources and Social Security(MHR) Ministry of Agriculture and Rural Affairs (MAR) on Tax Policies for Further Supporting theBusiness Startup by and the Employment of Key Populations” (Announcement [2023] No. 15) from January

1 2023 to December 31 2027 if an enterprise enters into an employment contract with people who have

177Infore Environment Technology Group Co. Ltd. 2025 Annual Report

been lifted out of poverty as well as people who have been registered as unemployed for more than six

months at the public employment service agency of MHR with an “Entrepreneurship Certificate” or

“Unemployment Registration Certificate” (Indicated “Enterprise Employment Promotion Tax Incentives”)

for a term of one year or more and pays social insurance premiums in accordance with the law it may enjoy

a credit within the standard quota against in sequential order VAT urban maintenance and construction tax

educational surcharge local education surcharges and enterprise income tax according to the number of

persons actually employed for three years from the month when the employment contract is signed and the

social premiums are paid. In 2025 the subsidiary Zoomlion Environmental Company and its certain

subsidiaries are entitled to enjoy such tax reduction and exemption policy.

3. Reduction and exemption policy on six local taxes and two ratesPursuant to the “Announcement of the MOF and SAT on Tax Policies for Further Supporting theDevelopment of Small Enterprises with Meager Profit and Individually-Owned Businesses” (Announcement

of MOF and STA [2023] No. 12) from January 1 2023 to December 31 2027 for VAT small-scale

taxpayers small enterprises with meager profit and individually-owned businesses resource tax (excluding

water resources tax) urban maintenance and construction tax housing property tax urban land use tax

stamp duty (excluding securities transaction stamp duty) cultivated land occupation tax and education

surcharge local education surcharge will be halved. In 2025 some subsidiaries of Zoomlion Environmental

Company and Shenzhen Infore City Service Intelligent Technology Co. Ltd. are eligible to enjoy such tax

preferential policy.V. Notes to items of consolidated financial statements

(I) Notes to items of the consolidated balance sheet

1. Cash and bank balances

(1) Details

Items Closing balance Opening balance

Cash on hand 690474.26 165440.86

Cash in bank 6630205438.27 4998036090.59

Other cash and bank balances 84854719.57 119793585.77

Total 6715750632.10 5117995117.22

Including: Deposited overseas 80350663.47 36016679.21

(2) Other remarks

1) Closing balance of cash in bank included certificates of deposit of 187776429.44 yuan funds frozen due to

178Infore Environment Technology Group Co. Ltd. 2025 Annual Report

lawsuits of 25717611.75 yuan escrow accounts of 709561.47 yuan funds temporarily frozen due to account

changes of 131634.79 yuan factoring collections on behalf of others of 5741.46 yuan and others of 456530.01

yuan totaling 214797508.92 yuan which was with use restrictions.

2) Closing balance of other cash and bank balances included deposits for letters of guarantee of 50095225.69

yuan deposits for notes of 22641659.30 yuan credit deposits of 6007747.58 yuan performance bond of

3030070.99 yuan deposits for buyer’s credit of 864082.95 yuan engineering deposits of 609312.68 yuan

deposits for land reclamation of 205331.35 yuan and ETC deposits of 245500.00 yuan totaling 83698930.54

yuan which was with use restrictions.

2. Held-for-trading financial assets

Items Closing balance Opening balance

Financial assets classified as at fair value through profit or

1520255634.13

loss

Including: Structured deposits and financial products 1520255634.13

Total 1520255634.13

3. Notes receivable

(1) Details

Items Closing balance Opening balance

Bank acceptance 240500.00 1153333.58

Trade acceptance 1709268.00 1290912.03

Total 1949768.00 2444245.61

(2) Provision for bad debts

1) Details on categories

Closing balance

Book balance Provision for bad debts

Categories

Provision Carrying amount

Amount % to total Amount proportion

(%)

Receivables with provision made on

a collective basis 2747740.00 100.00 797972.00 29.04 1949768.00

Including: Bank acceptance 240500.00 8.75 240500.00

Trade acceptance 2507240.00 91.25 797972.00 31.83 1709268.00

Total 2747740.00 100.00 797972.00 29.04 1949768.00

(Continued)

179Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Opening balance

Book balance Provision for bad debts

Categories

Provision Carrying amount

Amount % tototal Amount proportion(%)

Receivables with provision made on

a collective basis 2887435.03 100.00 443189.42 15.35 2444245.61

Including: Bank acceptance 1153333.58 39.94 1153333.58

Trade acceptance 1734101.45 60.06 443189.42 25.56 1290912.03

Total 2887435.03 100.00 443189.42 15.35 2444245.61

2) Notes receivable with provision for bad debts made on a collective basis

Closing balance

Items

Book balance Provision for bad debts Provision proportion(%)

Bank acceptance portfolio 240500.00

Trade acceptance portfolio 2507240.00 797972.00 31.83

Subtotal 2747740.00 797972.00 29.04

(3) Changes in provision for bad debts

Increase/Decrease

Items Opening balance

Accrual Recovery or

Closing balance

reversal Write-off Others

Receivables with

provision made on 443189.42 354782.58 797972.00

a collective basis

Total 443189.42 354782.58 797972.00

(4) No pledged notes at the balance sheet date.

(5) Endorsed or discounted but undue notes at the balance sheet date

Items Closing balance derecognized Closing balance not yet derecognized

Bank acceptance 105500.00

Subtotal 105500.00

(6) Notes receivable transferred to accounts receivable due to non-performance of issuer

Amount transferred to accounts receivable at the

Items

balance sheet date

Trade acceptance 7868914.61

Subtotal 7868914.61

4. Accounts receivable

180Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(1) Age analysis

Ages Closing balance Opening balance

Within 1 year 5069314658.48 5167753317.61

1-2 years 933517635.82 1014928501.08

2-3 years 450761695.55 488245197.47

3-5 years 473393819.33 403022500.69

Over 5 years 179449381.61 108571288.31

Book balance 7106437190.79 7182520805.16

Less: Provision for bad debts 1081611486.79 958090587.39

Carrying amount 6024825704.00 6224430217.77

(2) Provision for bad debts

1) Details on categories

Closing balance

Book balance Provision for bad debts

Categories

Provision

% to Carrying amount

Amount total Amount proportion

(%)

Receivables with provision made 269873164.37 3.80 268198572.88 99.38 1674591.49

on an individual basis

Receivables with provision made 6836564026.42 96.20 813412913.91 11.90 6023151112.51

on a collective basis

Total 7106437190.79 100.00 1081611486.79 15.22 6024825704.00

(Continued)

Opening balance

Book balance Provision for bad debts

Categories

Provision

% to Carrying amount

Amount total Amount proportion

(%)

Receivables with provision made 205388214.20 2.86 175166701.01 85.29 30221513.19

on an individual basis

Receivables with provision made

6977132590.9697.14782923886.3811.226194208704.58

on a collective basis

Total 7182520805.16 100.00 958090587.39 13.34 6224430217.77

2) Significant accounts receivable with provision for bad debts made on an individual basis

181Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Opening balance Closing balance

Debtors Provision for bad Provision for bad Provision Basis for

Book balance Book balance

debts debts proportion (%) provision made

Guangdong Tianshu New

Expected credit

Energy Technology Co. 130800778.19 104640622.55 131161314.76 131161314.76 100.00

losses

Ltd.Subtotal 130800778.19 104640622.55 131161314.76 131161314.76 100.00

3) Accounts receivable with provision for bad debts made on a collective basis

Closing balance

Items Provision proportion

Book balance Provision for bad debts

(%)

Portfolio grouped with ages 6809368796.68 808775286.86 11.88

Portfolio grouped with commercial

27195229.744637627.0517.05

factoring receivable

Subtotal 6836564026.42 813412913.91 11.90

4) Accounts receivable with provision made on a collective basis using age analysis method

Closing balance

Ages Provision proportion

Book balance Provision for bad debts

(%)

Within 1 year 4922808635.64 246140431.91 5.00

1-2 years 924873864.22 92487386.42 10.00

2-3 years 419166217.56 125749865.26 30.00

3-5 years 396244951.98 198122475.99 50.00

Over 5 years 146275127.28 146275127.28 100.00

Subtotal 6809368796.68 808775286.86 11.88

5) Commercial factoring portfolio grouped by five-level classification

Closing balance

Five-level classification Unrealized finance Provision for Provision

Book balance

income bad debts proportion (%)

Pass 617259.32 9258.89 1.50

Special-mention 13149705.42 394491.16 3.00

182Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Closing balance

Five-level classification Unrealized finance Provision for Provision

Book balance

income bad debts proportion (%)

Substandard 13134840.00 3940452.00 30.00

Loss 293425.00 293425.00 100.00

Subtotal 27195229.74 4637627.05 17.05

(3) Changes in provision for bad debts

1) Details

Increase/Decrease

Items Opening balance Recovery or Closing balance

Accrual Write-off Others

reversal

Receivables with

provision made on 175166701.01 108463507.51 2106976.09 13297599.55 27060.00 268198572.88

an individual basis

Receivables with

provision made on 782923886.38 72591006.01 42101978.48 813412913.91

a collective basis

Total 958090587.39 181054513.52 2106976.09 13297599.55 42129038.48 1081611486.79

2) No significant provisions collected or reversed in the current period.

(4) Accounts receivable actually written off in the current period

1) Accounts receivable written off

Items Amount written off

Accounts receivable actually written off 13297599.55

2) No significant accounts receivable written off in the current period.

(5) Details of the top 5 debtors with largest balances of accounts receivable and contract assets

Closing book balance Provision for badProportion to the total balance of

debts of accounts

Contract assets (including accounts receivable and contract receivable and

Debtors Accounts contract assets presented assets (including contract assets

Subtotal provision for

receivable under other non-current presented under other non-current impairment of

assets) assets) (%) contract assets

No. 1 124524325.33 24734173.85 149258499.18 2.03 25081378.79

No. 2 131161314.76 131161314.76 1.79 131161314.76

No. 3 116663930.01 116663930.01 1.59 5833196.50

No. 4 79165168.00 1014832.00 80180000.00 1.09 5336500.00

183Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Closing book balance Provision for badProportion to the total balance of

debts of accounts

Contract assets (including accounts receivable and contract receivable and

Debtors Accounts contract assets presented assets (including contract assets

Subtotal provision for

receivable under other non-current presented under other non-current impairment of

assets) assets) (%) contract assets

No. 5 76898431.86 76898431.86 1.05 3844921.59

Subtotal 528413169.96 25749005.85 554162175.81 7.55 171257311.64

5. Receivables financing

(1) Details

Items Closing balance Opening balance

Bank acceptance 240630370.22 201675177.13

Total 240630370.22 201675177.13

(2) No pledged receivables financing at the balance sheet date.

(3) Endorsed or discounted but undue receivables financing at the balance sheet date

Items Closing balance derecognized

Bank acceptance 91430156.09

Subtotal 91430156.09

Due to the fact that the acceptor of bank acceptance is commercial bank which is of high credit level there is

very little possibility of failure in recoverability when it is due. Based on this fact the Company derecognized the

endorsed or discounted bank acceptance. However if any bank acceptance is not recoverable when it is due the

Company still holds joint liability on such acceptance according to the China Commercial Instrument Law.

6. Advances paid

(1) Age analysis

1) Details

Closing balance Opening balance

Ages Provision for Carrying Provision for Carrying

Book balance % to total Book balance % to total

impairment amount impairment amount

Within 1 year 109302319.73 94.26 109302319.73 105675560.02 90.67 105675560.02

1-2 years 4416670.13 3.81 4416670.13 6563741.82 5.63 6563741.82

2-3 years 1053846.60 0.91 1053846.60 3747053.86 3.21 3747053.86

Over 3 years 1187891.87 1.02 1187891.87 569326.97 0.49 569326.97

Total 115960728.33 100.00 115960728.33 116555682.67 100.00 116555682.67

184Infore Environment Technology Group Co. Ltd. 2025 Annual Report

2) No material balance with age over one year.

(2) Details of the top 5 debtors with largest balances

Proportion to the total balance of

Debtors Book balance

advances paid (%)

No. 1 3061959.94 2.64

No. 2 2663442.01 2.30

No. 3 2272396.93 1.96

No. 4 1380000.00 1.19

No. 5 1271577.96 1.10

Subtotal 10649376.84 9.19

7. Other receivables

(1) Other receivables categorized by nature

Nature of receivables Closing balance Opening balance

Temporary advance payment receivable and petty cash 589135944.74 130942325.64

Payments for equity transfer 244858978.00

Security deposits 159508226.55 70844070.44

Performance compensation 14231285.04 14231285.04

Others 15114653.65 12785184.45

Book balance 1022849087.98 228802865.57

Less: Provision for bad debts 97976339.63 68535412.08

Carrying amount 924872748.35 160267453.49

(2) Age analysis

Ages Closing balance Opening balance

Within 1 year 906192085.47 116428153.86

1-2 years 47415171.26 29572716.48

2-3 years 10841253.42 31226881.64

3-4 years 26097387.94 32266905.43

185Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Ages Closing balance Opening balance

4-5 years 17808769.97 4812643.70

Over 5 years 14494419.92 14495564.46

Book balance 1022849087.98 228802865.57

Less: Provision for bad debts 97976339.63 68535412.08

Carrying amount 924872748.35 160267453.49

(3) Provision for bad debts

1) Details on categories

Closing balance

Book balance Provision for bad debts

Categories

% to Provision Carrying amount

Amount Amount proportion

total

(%)

Receivables with provision made on

39378317.203.8534346581.3487.225031735.86

an individual basis

Receivables with provision made on

983470770.7896.1563629758.296.47919841012.49

a collective basis

Total 1022849087.98 100.00 97976339.63 9.58 924872748.35

(Continued)

Opening balance

Book balance Provision for bad debts

Categories

Provision Carrying amount

Amount % to total Amount proportion

(%)

Receivables with provision made on

26497378.6511.5826497378.65100.00

an individual basis

Receivables with provision made on

202305486.9288.4242038033.4320.78160267453.49

a collective basis

Total 228802865.57 100.00 68535412.08 29.95 160267453.49

2) Other receivables with provision made on a collective basis

a. Other receivables with provision made on a collective basis – parent company

Portfolios Closing balance

186Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Provision for bad Provision proportion

Book balance

debts (%)

Portfolio grouped with buyer’s

3483910.52765530.8421.97

credit

Portfolio grouped with ages 235201570.36 760845.61 0.32

Including: 1-180 days 234060000.00

2-3 years 77782.54 23334.76 30.00

3-5 years 378398.03 189199.02 50.00

Over 5 years 685389.79 548311.83 80.00

Subtotal 238685480.88 1526376.45 0.64

b. Other receivables with provision made on a collective basis – ventilation equipment manufacturing industry and

environmental integrated industry

Closing balance

Portfolios

Book balance Provision for bad Provision proportion

debts (%)

Portfolio grouped with ages 744785289.90 62103381.84 8.34

Including: Within 1 year 671393018.38 33569650.96 5.00

1-2 years 32047803.18 3204780.32 10.00

2-3 years 10763470.88 3229041.26 30.00

3-5 years 16962176.33 8481088.17 50.00

Over 5 years 13618821.13 13618821.13 100.00

Subtotal 744785289.90 62103381.84 8.34

(4) Changes in provision for bad debts

Stage 1 Stage 2 Stage 3

Items 12? month Lifetime expected Lifetime expected Total

expected credit credit losses (credit credit losses (credit

losses not impaired) impaired)

Opening balance 5459356.06 2509797.64 60566258.38 68535412.08

Opening balance in the

——————

current period

187Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Stage 1 Stage 2 Stage 3

Items 12? month Lifetime expected Lifetime expected Total

expected credit credit losses (credit credit losses (credit

losses not impaired) impaired)

--Transferred to stage 2 -1602390.16 1602390.16

--Transferred to stage 3 -1084125.34 1084125.34

--Reversed to stage 2

--Reversed to stage 1

Provision made in the 31124296.30 1976708.35 827925.06 33928929.71

current period

Provision recovered or

reversed in the current

period

Provision written off in 36933.98 36933.98

the current period

Other changes [Note] 1411611.24 1799990.49 1239466.45 4451068.18

Closing balance 33569650.96 3204780.32 61201908.35 97976339.63

Provision proportion at

the balance sheet date 3.71 10.00 71.71 9.58

(%)

Note: Other changes refer to balances transferred out due to the disposal of subsidiaries and balances transferred

in due to the acquisition of subsidiaries in the current period.Division basis for each stage: ages of other receivables.

(5) Other receivables actually written off in the current period

1) Other receivables written off

Items Amount written off

Other receivables actually written off 36933.98

2) No significant other receivables written off in the current period.

(6) Details of the top 5 debtors with largest balances

188Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Proportion to the Provision for bad

Closing book debts at the

Debtors Nature of receivables Ages total balance of other

balance balance sheet

receivables (%)

date

Temporary advance payment Within 1

No. 1 503985280.30 49.27 13496264.02

receivable and petty cash year

Payments for equity transfer 244858978.00 Within 1No. 2 23.94 12242948.90

year

Within 1

No. 3 Security deposits 81600000.00 7.98 4080000.00

year

Performance compensation

No. 4 and temporary advance 14563576.23 [Note 1] 1.42 14563576.23

payment receivable

No. 5 Security deposits 12616900.00 [Note 2] 1.23 986850.00

Subtotal 857624734.53 83.84 45369639.15

Note 1: It includes performance compensation with age of 4 to 5 years of 14231285.04 yuan and temporary

advance payment receivable with age over 5 years of 332291.19 yuan.Note 2: It includes balances with age within 1 year of 5496800.00 yuan and balances with age of 1 to 2 years of

7120100.00 yuan.

8. Inventories

(1) Details

Closing balance

Items

Book balance Provision for write-down Carrying amount

Raw materials 115798793.57 21229538.96 94569254.61

Work in process 231739492.46 6638399.87 225101092.59

Goods on hand 743913120.94 25604854.11 718308266.83

Materials on consignment

89954.9289954.92

for further processing

Costs to fulfill a contract 43177680.17 43177680.17

Total 1134719042.06 53472792.94 1081246249.12

(Continued)

Opening balance

Items

Book balance Provision for write-down Carrying amount

189Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Opening balance

Items

Book balance Provision for write-down Carrying amount

Raw materials 106242420.19 19036911.54 87205508.65

Work in process 217036401.50 4864512.39 212171889.11

Goods on hand 722312988.73 20357600.16 701955388.57

Materials on consignment

202066.19202066.19

for further processing

Costs to fulfill a contract 39580638.48 39580638.48

Total 1085374515.09 44259024.09 1041115491.00

(2) Provision for inventory write-down

1) Details

Increase Decrease

Items Opening balance Closing balance

Accrual Others [Note] Reversal or Others

transfer-out

Raw

19036911.545041206.861372740.494221319.9321229538.96

materials

Work in 4864512.39 4743139.77 1138966.22 4108218.51 6638399.87

process

Goods on

20357600.167683562.026958765.099395073.1625604854.11

hand

Total 44259024.09 17467908.65 9470471.80 17724611.60 53472792.94

Note: Other increases in the current period were due to business combination not under common control and

translation reserves.

2) Determination basis of net realizable value and reasons for the reversal or transfer-out of provision for

inventory write-down

Reasons for transfer-out of provision for

Items Determination basis of net realizable value

inventory write-down

Estimated selling price of relevant finished goods

Inventories with provision for inventory write-

Raw materials and work-in less cost to be incurred upon completion

down made at the beginning of the period were

process estimated selling expenses and relevant taxes and

used or sold in the current period.surcharges

Estimated selling price of relevant finished goods Inventories with provision for inventory write-

Goods on hand less estimated selling expenses and relevant taxes down made at the beginning of the period were

and surcharges sold in the current period.

190Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(3) Costs to fulfill a contract

Items Opening balance Increase Carried forward Closing balance

Foshan Sanshui Blogis Park distributed 5010093.78 5010093.78

PV project

Jiangxi water conservancy and

hydropower energy storage microgrid 1710067.81 1710067.81

solomon project

Morin Dawa Daur Autonomous Banner 1528617.68 1528617.68

aerobic project

Hequ county domestic waste sorting and 788113.64 393500.54 1181614.18

treatment project

Taicang Shaxi waste station leachate

1161253.861161253.86

treatment project

Hong Kong GTW grease treatment project 1157721.24 1157721.24

Shangri-la landfill leachate full-

741103.66741103.66

quantification treatment project

Township sewage delivery project phase II

7288974.857288974.85

of Hanshou County

Power distribution project phase II of 4499626.02 4499626.02

Shunde District

Old equipment renewal project of

provincial environmental air automatic

monitoring stations under Sichuan 3566624.87 3566624.87

Provincial Department of Ecology and

Environment

Xinning II Project of Hunan Province 1976576.49 2815552.95 4792129.44

Construction project of township air

automatic monitoring stations in 1968007.73 1968007.73

Yangquan City

Shimen II Project of Hunan Province 1702005.83 923233.85 2625239.68

Leachate project of Nantong Tianhong

1424274.90566318.261990593.16

Environmental Services

Leachate and integrated water-waste 1059753.35 155157.49 1214910.84

management project of Menghai County

Freight for contract performance 18412503.90 18412503.90

Others 15306680.80 19063425.46 22095402.20 12274704.06

Subtotal 39580638.48 53638550.48 50041508.79 43177680.17

9. Contract assets

(1) Details

191Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Closing balance Opening balance

Items Provision for Provision for

Book balance Carrying amount Book balance Carrying amount

impairment impairment

Quality

guarantee

81241244.5612343999.8868897244.68109251241.2715133299.2494117942.03

deposit

receivable

Total 81241244.56 12343999.88 68897244.68 109251241.27 15133299.24 94117942.03

(2) Details on provision for impairment

1) Details on categories

Closing balance

Book balance Provision for impairment

Categories

Provision Carrying amountAmount % to total Amount

proportion (%)

On an individual basis

On a collective basis 81241244.56 100.00 12343999.88 15.19 68897244.68

Total 81241244.56 100.00 12343999.88 15.19 68897244.68

(Continued)

Opening balance

Book balance Provision for impairment

Categories

Carrying amount

Amount % to total Amount Provision

proportion (%)

On an individual basis 90969.10 0.08 90969.10 100.00

On a collective basis 109160272.17 99.92 15042330.14 13.78 94117942.03

Total 109251241.27 100.00 15133299.24 13.85 94117942.03

2) Contract assets with provision for impairment made on a collective basis

Closing balance

Items Provision for Provision proportion

Book balance

impairment (%)

Portfolio grouped with ages 81241244.56 12343999.88 15.19

Subtotal 81241244.56 12343999.88 15.19

(3) Changes in provision for impairment

192Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Increase/Decrease

Items Opening balance Recovery or Transfer-out/ Closing balance

Accrual Others

reversal Write-off

On an individual

90969.1090969.10

basis

On a collective

15042330.14-2698330.2612343999.88

basis

Total 15133299.24 -2698330.26 90969.10 12343999.88

10. Non-current assets due within one year

Closing balance

Items Unrealized finance Provision for bad Discount rate

Book balance Carrying amount

income debts range (%)

Goods sold by 407575436.69 9503837.25 53611919.42 344459680.02 3.50-4.65

installments

Finance lease

291687237.1462335677.124375308.56224976251.463.50-4.65

payment

Factoring of

424463740.084070089.186366956.10414026694.803.50-4.65

receivables financing

Total 1123726413.91 75909603.55 64354184.08 983462626.28

(Continued)

Opening balance

Items

Book balance Unrealized finance Provision for bad Carrying amount Discount rate

income debts range (%)

Goods sold by

447835809.918495844.1469314228.75370025737.023.60-4.30

installments

Finance lease payment 28609032.71 1429392.82 553141.68 26626498.21 3.60-4.30

Factoring of

91339416.683119663.561387491.2586832261.873.60-4.30

receivables financing

Total 567784259.30 13044900.52 71254861.68 483484497.10

11. Other current assets

(1) Details

Closing balance Opening balance

Items

Book balance Provision forimpairment Carrying amount Book balance

Provision for

impairment Carrying amount

Input VAT to be

credited and excess 513362646.77 513362646.77 591058310.42 591058310.42

input VAT credits

Costs to obtain a

contract 7399579.18 7399579.18 6409973.49 6409973.49

193Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Closing balance Opening balance

Items

Book balance Provision for Carrying amount Book balance Provision forimpairment impairment Carrying amount

Total 520762225.95 520762225.95 597468283.91 597468283.91

(2) Costs to obtain a contract

Items Opening balance Increase Amortization Provision for Closing balance

impairment

Costs to obtain a

6409973.4913211090.6812221484.997399579.18

contract

Subtotal 6409973.49 13211090.68 12221484.99 7399579.18

12. Long-term receivables

(1) Details

Closing balance

Items Unrealized finance Provision for bad Discount rate

Book balance Carrying amount

income debts range (%)

Goods sold by

191402520.1214559273.549570126.01167273120.573.50-4.65

installments

Guaranteed

collection amount 25313302.75 960582.13 1265665.14 23087055.48 4.30-4.65

for BOT projects

Finance lease 1266963076.91 124469009.24 19004446.16 1123489621.51 3.50-4.65

payment

Factoring of

receivables 7704300.90 657303.43 115564.51 6931432.96 3.50-4.65

financing

Total 1491383200.68 140646168.34 29955801.82 1320781230.52

(Continued)

Opening balance

Items

Book balance Unrealized finance Provision for bad Carrying amount Discount rate

income debts range (%)

Goods sold by

284404413.8424302615.8014518418.91245583379.133.60-4.30

installments

Guaranteed

collection amount 27148165.14 1980892.63 1357408.26 23809864.25 4.30-4.65

for BOT projects

Finance lease

27114735.401456539.74605069.2725053126.393.60-4.30

payment

Factoring of 355617452.50 19385569.41 5374091.54 330857791.55 3.60-4.30

receivables

194Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Opening balance

Items Unrealized finance Provision for bad Discount rate

Book balance Carrying amount

income debts range (%)

financing

Total 694284766.88 47125617.58 21854987.98 625304161.32

(2) Provision for bad debts

1) Details on categories

Closing balance

Book balance Provision for bad debts

Categories

% to Provision Carrying amount

Amount Amount

total proportion (%)

Receivables with provision

1350737032.34100.0029955801.822.221320781230.52

made on a collective basis

Total 1350737032.34 100.00 29955801.82 2.22 1320781230.52

(Continued)

Opening balance

Categories Book balance Provision for bad debts

% to Provision Carrying amount

Amount Amount

total proportion (%)

Receivables with provision made 647159149.30 100.00 21854987.98 3.38 625304161.32

on a collective basis

Total 647159149.30 100.00 21854987.98 3.38 625304161.32

2) No significant long-term receivables with provision for bad debts made on an individual basis.

3) Long-term receivables with provision for bad debts made on a collective basis

Closing balance

Items Provision for bad Provision

Book balance

debts proportion (%)

Portfolio grouped with ages 216715822.87 10835791.15 5.00

Portfolio grouped with finance lease

1266963076.9119004446.161.50

payment

Portfolio grouped with receivables

7704300.90115564.511.50

financing factoring payment

Subtotal 1491383200.68 29955801.82 2.01

195Infore Environment Technology Group Co. Ltd. 2025 Annual Report

(3) Changes in provision for bad debts

Increase/Decrease

Items Opening balance Recovery or Closing balanceAccrual Write-off Others

reversal

Receivables with

provision made on an

individual basis

Receivables with

provision made on a 21854987.98 8100813.84 29955801.82

collective basis

Total 21854987.98 8100813.84 29955801.82

13. Long-term equity investments

(1) Categories

Closing balance Opening balance

Items Provision for Provision for

Book balance Carrying amount Book balance Carrying amount

impairment impairment

Investments 738196845.70 738196845.70 682287056.09 682287056.09

in associates

Total 738196845.70 738196845.70 682287056.09 682287056.09

(2) Details

Opening balance Increase/Decrease

Investees Investment income

Adjustment in

Investments Investments other

Carrying amount recognized under

increased decreased comprehensive

equity method

income

Associates

Tengine Innovation (Beijing)

Monitoring Instrument Co. 25353337.43 743686.62

Ltd.Guangdong Shunkong

Environmental Investment 268323374.49 39778873.75

Co. Ltd.Guangdong Tianshu New

Energy Technology Co. Ltd.[Note 1]

Shantou Zoomlion Ruikang

Environmental Sanitation 26672079.85 1460541.90

Service Co. Ltd.

196Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Opening balance Increase/Decrease

Adjustment in

Investees Investment incomeInvestments Investments

Carrying amount recognized under

other

increased decreased

equity method comprehensive

income

Shantou Chaoyang District

Zoomlion Ruikang

32427620.55328594.54

Environmental Sanitation

Service Co. Ltd.Guangdong Liangke

Environmental Engineering 34256021.16 -1801020.64

Co. Ltd.Guangxi Zoomlion Guilv

Urban Environmental Service 3220652.49 183144.89

Co. Ltd.Shenzhen Yingmei City

28238.4913.02

Housekeeper Co. Ltd.Foshan Yingtong Electrical 174224181.00 -46027324.65

Materials Co. Ltd.China Urban Institute

(Beijing) Environmental 103285603.35 229454.55

Technology Co. Ltd.Beijing Xingyun Zhixing 8286405.28 224387.80

Technology Co. Ltd.Guangdong Yingling Testing

Technology Service Co. Ltd.[Note 2]

Taizhou Jinzhong

Environmental Industry Co. 6209542.00 501369.00

Ltd.Hunan Red Solar New Energy

Science and Technology Co. 149349269.90 57898616.46 8707961.70 -55949.09

Ltd.Guangdong Infore New

Energy Technology

Innovation Co. Ltd. [Note 3]

Zhongshan Lianying Smart

City Environmental Services

Co. Ltd. [Note 4]

Total 682287056.09 149349269.90 57898616.46 4329682.48 -55949.09

(Continued)

Investees Increase/Decrease Closing balance

197Infore Environment Technology Group Co. Ltd. 2025 Annual Report

Changes in Cash dividend/ Provision Carrying Provision for

Profit declared for Others

other equity amount impairment

for distribution impairment

Associates

Tengine Innovation (Beijing)

Monitoring Instrument Co. 26097024.05

Ltd.Guangdong Shunkong

Environmental Investment 38779597.22 269322651.02

Co. Ltd.Guangdong Tianshu New

Energy Technology Co. Ltd.[Note 1]

Shantou Zoomlion Ruikang

Environmental Sanitation 28132621.75

Service Co. Ltd.Shantou Chaoyang District

Zoomlion Ruikang

32756215.09

Environmental Sanitation

Service Co. Ltd.Guangdong Liangke

Environmental Engineering 32455000.52

Co. Ltd.Guangxi Zoomlion Guilv

Urban Environmental Service 3403797.38

Co. Ltd.Shenzhen Yingmei City

28251.51

Housekeeper Co. Ltd.Foshan Yingtong Electrical 128196856.35