新和成:2026年第一季度报告（英文版）

SecuritiesCode:002001 Securities Abbr: NHU

Zhejiang NHU Company Ltd.Q1 2026 Report

The Company and whole members of the BOD guarantee that the information disclosed is

authentic accurate complete and free from any false records misleading statements or significant

omissions.Important Content Reminder:

1. The Board of Directors directors and senior management personnel warrant that the quarterly

report is true accurate and complete without any false records misleading statements or material

omissions and shall assume individual and joint and several legal liabilities.

2. The person in charge of the Company the person in charge of accounting work and the person

in charge of the accounting department (chief accountant) hereby declare that they guarantee the

truth accuracy and completeness of the financial information disclosed in the quarterly report.

3. Whether the first-quarter financial and accounting report has been audited

□ Yes √ No

This Q1 2026 Report is an English translation of the Chinese Q1 2026 Report. In case the English version does

not conform to the Chinese version the Chinese version prevails.

1SecuritiesCode:002001 Securities Abbr: NHU

Section I KeyAccounting Data

I. Key accounting data and financial indicators

Whether the Company needs to perform retroactive adjustment or restatement on financial data of prior years

□Yes √No

Increase/decrease of the current

Items Q1 2026 Q1 2025 reporting period compared with the

same period of the previous year

Operating revenue (yuan) 6294652672.67 5439577817.97 15.72%

Net profit attributable to

shareholders of listed company 1827227858.46 1879910462.58 -2.80%

(yuan)

Net profit attributable to

shareholders of listed company

after deducting non-recurring profit 1776158668.57 1879705376.85 -5.51%

or loss (yuan)

Net cash flows from operating

activities (yuan) 1683660102.64 1595982605.81 5.49%

Basic EPS (yuan/share) 0.59 0.61 -3.28%

Diluted EPS (yuan/share) 0.59 0.61 -3.28%

Weighted average ROE 5.37% 6.29% Decreased by 0.92 percentage points

Increase/decrease of the current

Items Mar. 31 2026 Dec. 31 2025 reporting period compared with the

end of the previous year

Total assets (yuan) 47454817704.07 45606449805.48 4.05%

Net assets attributable to

shareholders of listed company 35131790747.09 32805654181.90 7.09%

(yuan)

II. Non-recurring Profit or Loss for this Period

√ Applicable □ Not applicable

Unit: RMB yuan

Items Q1 2026 Remarks

Gains or losses on disposal of non-current assets including write-off of provision for

-3107154.80

impairment

Government grants included in profit or loss (excluding those closely related to

operating activities of the Company satisfying government policies and regulations 17051769.52

and continuously enjoyed with certain quantity or quota based on certain standards)

Gains or losses on changes in fair value of held-for-trading financial assets and held-

for-trading financial liabilities and investment income from disposal of held-for-

46986875.79

trading financial assets and held-for-trading financial liabilities excluding those

arising from hedging business related to operating activities

Gains or losses on assets consigned to the third party for investment or management 6135375.83

Other profit and loss items that meet the definition of non-recurring profit or loss -5822660.05

2SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Remarks

Less: Enterprise income tax affected 10051669.46

Non-controlling interest affected (after tax) 123346.94

Total 51069189.89 --

Details of other profit and loss items that meet the definition of non-recurring profit and loss

□ Applicable √ Not applicable

The Company does not have any other profit and loss items that meet the definition of non-recurring profit and loss.Explanation on defining the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on Information

Disclosure for Companies Offering Their Securities to Public-Non-recurring Profit and loss as non-recurring profit and loss items.□ Applicable √ Not applicable

The Company does not define the non-recurring profit and loss items listed in the No. 1 Explanatory Announcement on

Information Disclosure for Companies Offering Their Securities to Public-Non-recurring Profit and loss as recurring profit and

loss items.III. Major Changes of Main Items in Financial Statements and Financial Indicators within the Reporting

Period as well as the Reasons for the Changes

√ Applicable □Not applicable

1. Balance Sheet Position

（1）The closing balance of Advances paid increased by 30.60% compared to the closing balance at the beginning of the year. It

was mainly due to the increase in prepayments to suppliers during the reporting period.

（2）The closing balance of Other equity instrument investment decreased by 44.44% compared to the closing balance at the

beginning of the year. It was mainly due to the increase in dividend income recognised during the reporting period with the

carrying amount of the corresponding investments reduced accordingly.

（3）The closing balance of Deferred tax assets increased by 231.54% compared to the closing balance at the beginning of the

year. It was mainly due to the increase in credit impairment losses recognised during the reporting period which has led to a

higher provision for deferred income tax.

（4）The closing balance of Short-term borrowings increased by 49.27% compared to the closing balance at the beginning of the

year. It was mainly due to the increase in short-term credit borrowings during the reporting period.

（5）The closing balance of Notes payable decreased by 49.41% compared to the closing balance at the beginning of the year. It

was mainly due to the redemption of matured bank acceptance bills during the reporting period.

（6）The closing balance of Contract liabilities increased by 34.13% compared to the closing balance at the beginning of the year.

It was mainly due to the increase in advance receipts received from customers during the reporting period.

3SecuritiesCode:002001 Securities Abbr: NHU

（7）The closing balance of Employee benefits payable decreased by 55.61% compared to the closing balance at the beginning

of the year. It was mainly due to the payment of year-end bonuses accrued in the prior year during the reporting period.

（8）The closing balance of Other accounts payables decreased by 63.31% compared to the closing balance at the beginning of

the year. It was mainly due to the settlement of accrued and unsettled expenses during the reporting period.

（9）The closing balance of Other current liabilities increased by 493.60% compared to the closing balance at the beginning of

the year. It was mainly due to the issuance of technological innovation bonds during the reporting period.

2. Consolidated Income Statement Position

（1）Taxes and surcharges in the current Q1 period increased by 36.74% compared to the same period of last year. It was mainly

due to the increase in urban construction tax and education surcharges during the reporting period.

（2）Financial expenses in the current Q1 period increased by 329.91% compared to the same period of last year. It was mainly

due to the increase in foreign exchange losses during the reporting period.

（3）Investment income in the current Q1 period increased by 3571.04% compared to the same period of last year. It was mainly

due to the combined impact of the increase in the net profit of associates and joint ventures during the reporting period a

corresponding rise in investment income recognised by the Company under the equity method and higher investment income from

the disposal of trading financial assets.

（4）Gains on changes in fair value in the current Q1 period increased by 132.88% compared to the same period of last year. It

was mainly due to the increase in fair value as a result of exchange rate fluctuations during the reporting period.

（5）Credit impairment loss in the current Q1 period increased by 858.66% compared to the same period of last year. It was

mainly due to the increase in credit impairment losses provisioned for changes in accounts receivable resulting from higher sales

revenue.

（6）Asset impairment losses in the current Q1 period decreased by 46.35% compared to the same period of last year. It was

mainly due to the decrease in the provision for inventory depreciation recognised during the reporting period.

（7）Gains on asset disposal in the current Q1 period decreased by 57.47% compared to the same period of last year. It was

mainly due to the decrease in external sales of waste materials during the reporting period.

（8）Non-operating income in the current Q1 period increased by 30.13% compared to the same period of last year. It was mainly

due to the increase in compensation income during the reporting period.

（9）Non-operating expenses in the current Q1 period increased by 665.69% compared to the same period of last year. It was

mainly due to the asset write-offs and late payment surcharges incurred during the reporting period.

3.Cash Flow Statement Position

（1）Net cash flows from investing activities in the current Q1 period increased by 64.08% compared to the same period of last

year. It was mainly due to the increase in the redemption of beginning-period bank wealth management products during the

reporting period.

4SecuritiesCode:002001 Securities Abbr: NHU

（2）Net cash flows from financing activities in the current Q1 period increased by 185.35% compared to the same period of last

year. It was mainly due to the increase in bank loans obtained during the reporting period.

（3）Net increase in cash and cash equivalents in the current Q1 period increased by 530.97% compared to the same period of

last year. It was mainly due to increase in bank loans obtained the issuance of technological innovation bonds and decrease in the

purchase of bank wealth management products during the reporting period.Section Ⅱ Shareholders Information

Ⅰ. Total Number of Common Shareholders and Number of Preferred Shareholders with Voting Rights

Recovered and Information about Top 10 Shareholders

Unit: share

Total number of preferred shareholders whose

Total number of common shareholders at the end of the

78970 voting rights have been recovered at the end of the 0

reporting period

Information about top 10 shareholders（Excluding shares lent through refinancing）

Nature of Holding Quantity of Shares pledged marked or frozen

Shareholders Quantity of shares

shareholders proportion restricted shares Condition Quantity

NHU Holding Group Co. Ltd. Domestic non-state-owned legal person 50.08% 1539232431 0 N/A 0

Hong Kong Securities Clearing Overseas legal

Company Limited person 4.34% 133444475 0 N/A 0

China Construction Bank

Corporation - E Fund Shanghai

and Shenzhen 300 Medical and Others 0.70% 21627982 0 N/A 0

Health Trading Open-end Index

Fund

The Company－Employee stock

Others 0.70% 21454310 0 N/A 0

ownership plan phase V

Industrial and Commercial Bank

of China Limited – China-Europe

Healthcare Mixed Securities Others 0.67% 20716461 0 N/A 0

Investment Fund

National Social Security Fund

Others 0.48% 14600000 0 N/A 0

No.503 Portfolio

Hu baishan Domestic naturalperson 0.47% 14595929 10946947 N/A 0

Hu baifan Domestic naturalperson 0.45% 13922998 10442248 N/A 0

Industrial and Commercial Bank

of China Limited – Huatai-

PineBridge CSI 300 Traded Open- Others 0.40% 12307373 0 N/A 0

end Index Securities Investment

Fund

Shi Guanqun Domestic naturalperson 0.35% 10677838 8008378 N/A 0

5SecuritiesCode:002001 Securities Abbr: NHU

Information about top 10 shareholders without trading restrictions

(excluding shares lent through transfer facility and shares locked up by executives)

Category of shares

Shareholders Quantity of non-restricted shares

Category Quantity

RMB ordinary

NHU Holding Group Co. Ltd. 1539232431 1539232431

RMB ordinary

Hong Kong Securities Clearing Company Limited 133444475 133444475

China Construction Bank Corporation - E Fund RMB ordinary

Shanghai and Shenzhen 300 Medical and Health 21627982 21627982

Trading Open-end Index Fund shares

The Company－Employee stock ownership plan RMB ordinary21454310 21454310

phase V shares

Industrial and Commercial Bank of China Limited RMB ordinary

– China-Europe Healthcare Mixed Securities 20716461 20716461

Investment Fund shares

RMB ordinary

National Social Security Fund No.503 Portfolio 14600000 14600000

Industrial and Commercial Bank of China Limited RMB ordinary

– Huatai-PineBridge CSI 300 Traded Open-end 12307373 12307373

Index Securities Investment Fund shares

RMB ordinary

Yu Baomu 10548900 10548900

China Universal Fund Management Co. Ltd. – RMB ordinary

Social Security Fund Portfolio 16032 10499792 10499792shares

RMB ordinary

WuWenping 8641514 8641514

The above shareholder Hu Baifan is the Chairman General Manager and actual

controller of NHU Holding Group Co. Ltd.; Hu Baishan is a Director of NHU

Holding Group Co. Ltd. and Hu Baifan and Hu Baishan are brothers. Shi Guanqun is

a Director of NHU Holding Group Co. Ltd. Hu Baifan Hu Baishan and Shi Guanqun

Explanation on associated relationship or concerted

have connected relations with Zhejiang NHU Co. Ltd. - Phase V Employee Stock

actions among above shareholders

Ownership Plan due to their participation in the employee stock ownership plan. The

Company does not know whether other shareholders have relationships and whetherthey are persons acting in concert as defined in “Administration of the Takeover ofListed Companies Procedures”.Yu Baomu holds 10548900 shares through the client margin trading secured

Explanation on top 10 shareholders’ participating in securities account of Guotai Haitong Securities Co. Ltd.; Wu Wenping holds

securities margin trading 8641514 shares through the client margin trading secured securities account of

Caitong Securities Co. Ltd.Shareholders holding more than 5% of shares top 10 shareholders and top 10 shareholders with unlimited shares in circulation

participating in the lending of shares in the transfer and financing business.□ Applicable √Not applicable

6SecuritiesCode:002001 Securities Abbr: NHU

The top 10 shareholders and the top 10 holders of unlimited shares have experienced changes due to participating in the lending of

shares in the transfer and financing business compared to the previous period.□ Applicable √Not applicable

II. Total Number of Preferred Shareholders and Information about Top 10 Preferred Shareholders

□Applicable √Not applicable

Section III Other Significant Events

√Applicable □ Not applicable

1. Progress of the Fifth Employee Stock Ownership Plan

The fifth phase of the employee stock ownership plan of the Company was deliberated and approved by the third extraordinary

general meeting in 2025 held on December 26 2025. The current employee stock ownership plan is managed by the Company

itself acquired company shares repurchased through the Company's repurchase-dedicated securities account for repurchases

and/or obtained through purchases in the secondary market (including but not limited to block trades and centralized bidding

transactions) or by other means permitted by laws and regulations and the plan's duration will not exceed 24 months. The

Company's fifth employee stock ownership plan acquired by non-trade transfer 21454310 shares repurchased by the Company

representing 0.6981% of the company's total share capital. All were sourced from the aforementioned repurchased shares and the

transfer price was RMB 24.19 per share. The lock-up period for the shares obtained under the fifth employee stock ownership plan

is 12 months calculated from the date the Company announces that the last tranche of the target shares has been registered and

transferred to the Fifth Employee Stock Ownership Plan covering the period from January 27 2026 to January 26 2027. For

details please refer to the "Announcement on the Progress of Implementation of the Fifth Employee Stock Ownership Plan"

(2026-003) published by the Company on designated information disclosure media and CNINFO website

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

2.Apply for Registration and Issuance of Debt Financing Instruments

The 14th Meeting of the Ninth Session of the Board of Directors held on August 26 2025 and the Second Extraordinary General

Meeting of 2025 held on September 12 2025 deliberated and approved the "Proposal on Applying for Registration and Issuance

of Debt Financing Instruments". To meet the Company's rapid development funding needs optimize its financing structure and

reduce financing costs the Company intends to apply to the National Association of Financial Market Institutional Investors for

registration to issue non-financial enterprise debt financing instruments with an aggregate amount not exceeding RMB

3000000000 (inclusive). The types of instruments to be issued may include medium-term notes (maturities not exceeding 3

years) short-term financing notes (maturities not exceeding 1 year) and ultra-short-term financing notes (maturities not exceeding

7SecuritiesCode:002001 Securities Abbr: NHU

270 days) and may be issued in multiple tranches. The proceeds from this offering are planned to be used for the Company's

production and operating activities including but not limited to project construction in the field of scientific and technological

innovation R&D investment repayment of interest-bearing debt and supplementing working capital. In light of the Company’s

capital arrangement and interbank market conditions the Company issued the 2026 Phase I Scientific and Technological

Innovation Bonds in the national interbank market on January 30 2026 which were listed and traded on February 3 2026. The

total issuance amount is RMB 500 million with a bond term of 270 days. For details please refer to the Announcement on the

Issuance Results of 2026 Phase I Scientific and Technological Innovation Bonds (Document No. 2026-004) published by the

Company on designated information disclosure media and CNINFO website (http://www.cninfo.com.cn).SectionⅣ Quarterly Financial Statements

Ⅰ .Financial statements

1. Consolidated Balance Statement

Prepared by Zhejiang NHU Co. Ltd.Mar 31 2026

Unit: RMBYuan

Items Mar 31 2026 Jan 1 2026

Current assets:

Cash and bank balances 9621006154.20 7966270131.17

Settlement funds

Loans to other banks

Trading Financial Assets 2356826507.94 2168275092.55

Derivative financial assets

Notes receivable

Accounts receivable 3639411247.88 3331434677.27

Receivables financing 965215351.71 813062385.73

Prepayments 233048162.47 178450145.87

Insurance premium receivable

Reinsurance accounts

receivable

Reserves for reinsurance contract

receivable

Other receivables 231391027.89 274052669.41

Including: Interest

receivable

Dividend receivable

Financial assets purchased under

resale agreement

Inventories: 4449974725.18 4648749467.43

8SecuritiesCode:002001 Securities Abbr: NHU

Items Mar 31 2026 Jan 1 2026

Including: data resources

Contract assets

Assets held for sale

Non-current assets due within

one year

Other current assets 49661739.69 55037719.63

Total current assets 21546534916.96 19435332289.06

Non-current assets:

Loans and advances

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 1035370292.05 965350549.43

Other equity instrument

investments 33406147.55 60126147.55

Other non-current financial

assets

Investment property

Fixed assets 19923210018.30 20298898673.14

Construction in progress 752792747.21 745117350.86

Productive biological assets

Oil & gas assets

Right-of-use assets 9624126.98 9116717.87

Intangible assets 2579105859.60 2590073891.40

Including: data resources

Development expenditures

Including: data resources

Goodwill 3622704.97 3622704.97

Long-term deferred expenses 16569888.28 19477100.43

Deferred tax assets 8926561.10 2692450.99

Other non-current assets 1545654441.07 1476641929.78

Total non-current assets 25908282787.11 26171117516.42

Total assets 47454817704.07 45606449805.48

Current liabilities:

Short-term borrowings 1007842815.34 675172682.37

Central bank loans

Loans from other banks

Financial liabilities held for

trading 227000.00

Derivative financial liabilities

Notes payable 35441575.25 70054101.63

9SecuritiesCode:002001 Securities Abbr: NHU

Items Mar 31 2026 Jan 1 2026

Accounts payable 1648505857.13 1780307765.08

Advance receipts

Contract liabilities 395447261.06 294819090.20

Financial assets sold for

repurchase

Deposits and interbank deposits

received

Receiving from Vicariously

Traded Securities

Receiving from Vicariously Sold

Securities

Employee benefits payable 227066815.92 511515144.15

Taxes and rates payable 670507469.13 669468878.66

Other payables 48319793.54 131685145.99

Including: Interest payable

Dividend payable

Handling fee and commission

payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due

within one year 3021488859.47 3165413873.49

Other current liabilities 589793418.95 99358351.24

Total current liabilities 7644640865.79 7397795032.81

Non-current liabilities:

Insurance policy reserve

Long-term borrowings 3487138235.69 4187178569.02

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 2515887.52 2500183.66

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income 880672887.29 906007748.59

Deferred income tax liabilities 150107635.54 152052864.16

Other non-current liabilities

Total non-current liabilities 4520434646.04 5247739365.43

Total liabilities 12165075511.83 12645534398.24

Equity:

Share capital 3073421680.00 3073421680.00

Other equity instruments

10SecuritiesCode:002001 Securities Abbr: NHU

Items Mar 31 2026 Jan 1 2026

Including: Preferred shares

Perpetual bonds

Capital reserve 3169474029.36 3135683253.49

Less: Treasury shares 70972212.67 556161195.70

Other comprehensive income 47602421.07 67743496.72

Special reserve 162126397.06 162056373.58

Surplus reserve 1545453678.00 1545453678.00

General risk reserve

Undistributed profits 27204684754.27 25377456895.81

Total equity attributable to the parent

company 35131790747.09 32805654181.90

Non-controlling interest 157951445.15 155261225.34

Total equity 35289742192.24 32960915407.24

Total liabilities and equity 47454817704.07 45606449805.48

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Wang Xiaobi

2. Consolidated Income Statement

Unit: RMBYuan

Items Q1 2026 Q1 2025

I. Total operating revenue 6294652672.67 5439577817.97

Including: Operating revenue 6294652672.67 5439577817.97

Interest income

Earned premiums

Fee and Commission

Income

II. Total operating cost 4263103073.75 3332670522.53

Including: Operating cost 3595444088.78 2899276314.75

Interest expenses

Handling charges and

commission expenses

Surrender value

Net claims paid

Net provision for insurance

liabilities

Policyholder Dividend

Expense

Reinsurance expenses

Taxes and surcharges 68983022.08 50448500.49

Selling expenses 40473214.75 34003560.61

Administrative expenses 142927144.31 154462169.44

R&D expenses 271693663.89 256931534.29

11SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Q1 2025

Financial expenses 143581939.94 -62451557.05

Including: Interest

expenses 44680387.23 58365389.70

Interest income 7947853.61 17375893.08

Add: Other income 51678444.42 63862670.45

Investment income (“-” for

loss) 85100671.91 2318161.95

Including: Investment

income from associates and joint 37283100.18 10902603.70

ventures

Gain on derecognition of

financial assets measured at

amortized cost

Exchange gains (“-” for loss)

Net-exposure hedging

income (“-”for loss)

Fair value change gains(“-”

for loss) 5304679.93 -16132349.31

Credit impairment loss(“-” for

-20415695.292691018.23

loss)

Assets impairment loss(“-” for

-8261978.21-15398773.86

loss)Gains on asset disposal (“-for loss) -583881.23 -370793.75”

III. Operating profit (“-”for loss) 2144371840.45 2143877229.15

Add: Non-operating revenue 1153274.53 886224.27

Less: Non-operating expense 9499208.15 1240606.56

IV. Profit before tax (“-” for total

losses) 2136025906.83 2143522846.86

Less: Income tax expense 300302181.04 255791673.71

V. Net profit (“-” for net loss) 1835723725.79 1887731173.15

(I) Categorized by the continuity

of operations

1. Net profit from continuing

operations (“-” for net loss) 1835723725.79 1887731173.15

2. Net profit from discontinued

operations (“-” for net loss)

(II) Categorized by the portion of

equity ownership

1. Net profit attributable to

shareholders of the parent company 1827227858.46 1879910462.58

2. Net profit attributable to non-

controlling shareholders 8495867.33 7820710.57

VI. Other comprehensive income

after tax 3306876.83 19798198.76

Items attributable to the owners of

the parent company 9112524.35 14918970.14

(I) Other comprehensive

income that cannot be reclassified 29253600.00

into profit or loss

12SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Q1 2025

1. Changes in remeasurement

on 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 29253600.00

4. Changes in fair value of

own credit risk

5. Others

(II) Other comprehensive

income that will be reclassified into -20141075.65 14918970.14

profit or loss

1. Items under equity method

that may be reclassified to profit or

loss

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 -20141075.65 14918970.14

7. Others

Net after-tax other comprehensive

income attributable to non- -5805647.52 4879228.62

controlling shareholders

VII. Total comprehensive income 1839030602.62 1907529371.91

Total comprehensive income

attributable to owners of the parent 1836340382.81 1894829432.72

company

Total comprehensive income

attributable to non-controlling 2690219.81 12699939.19

shareholders

VIII. Earnings per share (EPS):

(I) Basic EPS (yuan per share) 0.59 0.61

(II) Diluted EPS (yuan per share) 0.59 0.61

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Wang Xiaobi

3. Consolidated Cash Flow Statement

Unit: RMBYuan

Items Q1 2026 Q1 2025

I. Cash flows from operating

activities:

Cash receipts from sale of goods

or rendering of services 5633115809.89 5397200390.45

13SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Q1 2025

Net increase of client deposit and

interbank deposit

Net increase of central bank loans

Net increase of loans from other

financial institutions

Cash receipts from original

insurance contract premium

Net cash receipts from reinsurance

Net increase of policy-holder

deposit and investment

Cash receipts from interest

handling charges and commission

Net increase of loans from others

Net increase of repurchase

Net cash receipts from agency

security transaction

Receipts of tax refund 267285990.24 248726554.32

Other cash receipts related to

operating activities 45491345.73 69361541.81

Subtotal of cash inflows from

operating activities 5945893145.86 5715288486.58

Cash payments for goods

purchased and services received 2630434668.12 2592984352.17

Net increase of loans and

advances to clients

Net increase of central bank

deposit and interbank deposit

Cash payments for insurance

indemnities of original insurance

contracts

Net increase of loans to others

Cash payments for interest

handling charges and commission

Cash payments for policy bonus

Cash paid to and on behalf of

employees 854592479.42 808057616.28

Cash payments for taxes and rates 682964790.29 577767837.08

Other cash payments related to

operating activities 94241105.39 140496075.24

Subtotal of cash outflows from

operating activities 4262233043.22 4119305880.77

Net cash flows from operating

activities 1683660102.64 1595982605.81

II. Cash flows from investing

activities:

Cash receipts from withdrawal of

investments

Cash receipts from investment

income 9641484.96 1296518.97

14SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Q1 2025

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

Other cash receipts related to

investing activities 820750000.00 800000000.00

Subtotal of cash inflows from

investing activities 830391484.96 801296518.97

Cash payments for the acquisition

of fixed assets intangible assets and 349194543.42 295693688.24

other long-term assets

Cash payments for investments

Net increase of pledged

borrowings

Net cash payments for the

acquisition of subsidiaries & other

business units

Other cash payments related to

investing activities 1000000000.00 1950000000.00

Subtotal of cash outflows from

investing activities 1349194543.42 2245693688.24

Net cash flows from investing

activities -518803058.46 -1444397169.27

III. Cash flows from financing

activities:

Cash receipts from absorbing

investments

Including: Cash received by

subsidiaries from non-controlling

shareholders as investments

Cash receipts from borrowings 1587459439.00 572494106.93

Other cash receipts related to

financing activities 518979758.90

Subtotal of cash inflows from

financing activities 2106439197.90 572494106.93

Cash payments for the repayment

of borrowings 1598824079.84 443917925.63

Cash payments for distribution of

dividends or profits and for interest 42164325.50 673702768.85

expenses

Including: Cash paid by

subsidiaries to non-controlling

shareholders as dividend or profit

Other cash payments related to

financing activities 161851.22 50079.00

Subtotal of cash outflows from

financing activities 1641150256.56 1117670773.48

Net cash flows from financing

activities 465288941.34 -545176666.55

IV. Effect of foreign exchange rate

changes on cash & cash equivalents 27449979.25 8968800.13

15SecuritiesCode:002001 Securities Abbr: NHU

Items Q1 2026 Q1 2025

V. Net increase in cash and cash

equivalents 1657595964.77 -384622429.88

Add: Opening balance of cash and

cash equivalents 7819707489.01 5521452666.47

VI. Closing balance of cash and cash

equivalents 9477303453.78 5136830236.59

Legal representative: Hu Baifan Officer in charge of accounting: Shi Guanqun Head of accounting department: Wang Xiaobi

II. Adjustments to financial statements at the beginning of the year of first implementation of new

accounting standards for the first time from 2026 onwards

□Applicable √Not applicable

III. Independent Auditor’s Report

Whether the First Quarterly Report above have been audited.□Yes √ No

The First Quarterly Report has not been audited.Board of Directors of Zhejiang NHU Company Ltd.April 29 2026

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