Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.Annual Report
Shenzhen Topband Co. Ltd.Stock code
Topb1andFull Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.Annual Report 2025
Section I Important Notes Contents and Definitions
The Board of Directors directors and senior executives of the Company hereby guarantee
that the content set out in the Annual Report is free from false records misleading statements or
major omissions and undertake joint and several liabilities for the authenticity accuracy and
integrity of the Report.Wu Yongqiang the principal of the Company Luo Muchen the accounting head and Luo
Muchen the accounting department head (the accountant in charge) hereby guarantee the truth
accuracy and completeness of the financial statements in this Annual Report.All directors have attended the Board Meeting at which this Annual Report was deliberated.Forward-looking statements such as future plans and development strategies covered in the
Report involve uncertainties so they do not represent the Company's profit forecasts nor are they
regarded as the substantive commitment to investors.The Company has no material risks that affect its financial position and sustained
profitability and the potential risks to which the Company may be exposed are described in detail
in Section III "Management Discussion and Analysis" of the Report. Investors are kindly
reminded to pay attention to relevant content.The profit distribution plan approved by the Board of Directors of the Company: cash
dividends of RMB 0.7 (tax inclusive) per 10 shares are paid to all shareholders based on the
1228789388 shares (excluding the repurchased shares) and 0 bonus share (tax inclusive) and
reserves would not be converted into share capital.The Report is prepared in Chinese and translated into English. Should there be any
discrepancies or misunderstandings between the two versions the Chinese version shall prevail.
2Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Chairman's Statement
Dear shareholders partners and all friends caring about Topband
30 Years of Topband
In 2026 Topband will celebrate its 30th anniversary. 30 years ago we started with a
domestically produced air conditioner control board. Now we have expanded gradually to
fields such as home appliances tools new energy vehicles and high-end equipment and
established an intelligent control technology product system with the "four electrics and one
network" at its core. Relying on long-term experience the Company's revenue exceeded RMB
10 billion for the first time in 2024 becoming the first enterprise to break through this
milestone in China's intelligent control industry; in 2025 the Company's business scale
expanded steadily and the Company also launched AI cloud storage and charging systems
taking the first step in the field of autonomous intelligence.Over the past three decades Topband has shipped over 1.8 billion sets applied for 3915
patents established localized operation teams in major markets worldwide and employed over
10000 people – always adhering to the same mission: making the world smarter and more
low-carbon.
2025 Business Review
In 2025 the Company's revenue was RMB 11.082 billion growing steadily on the basis of
RMB 10 billion and further improving in overall operation quality. In the past year external
challenges remained formidable – the deep adjustment in the trade pattern the rapid evolution of
AI and the accelerated iteration of terminal demand. However our confidence in the direction is
even stronger: Behind the steady growth is the continuous release of value from our customer
structure technological accumulation and global layout.In terms of intelligent control the major markets of home appliances and tools have grown
steadily and the cooperation with top customers has kept deepening; the automotive and high-
3Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
end equipment market has boomed and the room for emerging applications such as robots AI
datacenters and energy has been opened up successively; the new energy business has made
breakthroughs in key areas and gradually released its growth potential.In the meantime the development of the intelligent control business has also spawned a new
product direction – autonomous intelligence products. So-called autonomous intelligence is based
on hardware pivoted on the cloud and driven by AI with data constantly circulating among them
allowing products to move from passive response to autonomous decision-making and making
them increasingly intelligent as they are used. The successful implementation of the first batch of
cloud storage and charging system projects is the first systematic verification of this concept.Based on self-developed BMS PCS EMS and power modules products have excellent hardware
execution capabilities; the cloud aggregates multidimensional data such as electricity prices
weather loads and equipment operation providing a basis for AI to output optimal O&M
strategies dynamically; as the deployment scale expands operational data keeps feeding back AI
iteration and the system achieves "increasingly intelligent" autonomous evolution as it is used.From "four electrics and one network" to "four electrics and one network + AI"
In the AI era Topband's technological foundation is upgrading from the "four electrics
and one network" to the "four electrics and one network + AI". For the past three decades the
"four electrics and one network" have formed a solid foundation for the intelligent control era;
when the wave of AI arrives this foundation is not outdated but has gained new room for
release. This is not a subversion of existing capabilities but an extension of capabilities that
follows the trend – both stemming from years of endogenous accumulation and benefiting
from external catalysis by AI technology.For the intelligent control business the "four electrics and one network + AI" have
transformed products from being "usable" to "thinking" expanding the value boundary. We are
working with our customers to integrate AI capabilities into various business fields making
end products smarter and more user-friendly. Entering the AI era together with customers is
Topband's most steadfast direction.For autonomous intelligence products the profound experience in the "four electrics and
4Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
one network" provides a solid hardware foundation – Only with the technological depth in the
fields of perception and execution can we truly achieve a full closed loop from perception and
decision-making to execution. This is also a crucial step for Topband to move from a leader in
intelligent control to a provider of autonomous intelligence system solutions.Next three decades
For the past three decades we have always been doing one thing: creating value for
customers and benefiting everyone with intelligent control technology. In the next three decades
the essence of this thing will remain unchanged but the definition of intelligence will evolve
with technological progress – from intelligent control to autonomous intelligence and from
instruction execution to autonomous decision-making. Such experience is the most solid starting
point for Topband to move toward the next era.This path is not created by Topband alone. Thank our shareholders for your long-term
trust and patience – It is you who have given us the confidence to adhere to long-termism;
thank our worldwide customers for growing with us in the past three decades – Your needs
have always been the most genuine driving force behind Topband's innovation; thank over
10000 Topband people for your consistent efforts – You are the true creators of all these
achievements.Three decades ago we began with a control board; in the next three decades we will
begin with autonomous intelligence.Chairman and President of Shenzhen Topband Co. Ltd.April 2 2026
5Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Contents
Section I Important Notes Contents and Definitions... 2
Section II Company Profile and Primary Financial I...10
Section III Management Discussion and Analysis ......16
Section IV Corporate Governance Environment and So.. 67
Section V Important Matters ........................ 98
Section VI Share Change and Shareholders .......... 108
Section VII Relevant Information of Bonds ..........116
Section VIII Financial Report ......................117
6Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Directory of documents for future reference
I. The financial statements bearing the signatures and seals of the principal of the Company the
accounting head and the accounting department head.II. The original audit report bearing the seal of the accounting firm and the signature and seal of
the certified public accountant.III. The originals of all the Company documents publicly disclosed in newspapers designated by
the CSRC during the Reporting Period and the original manuscripts of announcements.IV. The original of the Annual Report 2025 bearing the signature of the Chairman.V. All the above documents are complete and are available for reference at the office of the
Board of Directors of the Company.
7Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Interpretations
Terms Refer to Contents
Company the Company or
Topband Refer to Shenzhen Topband Co. Ltd.RMB RMB ten thousand and
RMB hundred million Refer to RMB RMB ten thousand and RMB hundred million
CSRC Refer to China Securities Regulatory Commission
Exchange Refer to Shenzhen Stock Exchange
Reporting Period Refer to January 1 2025 to December 31 2025
Articles of Association Refer to The Articles of Association of Shenzhen Topband Co. Ltd.Huizhou Topband Refer to Huizhou Topband Electrical Technology Co. Ltd.YAKO Automation Refer to Shenzhen YAKO Automation Technology Co. Ltd.Allied Refer to Shenzhen Allied Control System Co. Ltd.Topband Software Refer to Shenzhen Topband Software Technology Co. Ltd.ORVIBO Refer to Shenzhen ORVIBO Technology Co. Ltd.Ningbo Topband Refer to Ningbo Topband Intelligent Control Co. Ltd.Meanstone Intelligent Refer to Shenzhen Meanstone Intelligent Technology Co. Ltd.HANSC Intelligent Refer to Shenzhen HANSC Intelligent Technology Co. Ltd.Hong Kong Topband Refer to Topband (Hong Kong) Co. Ltd.Topband Romania Refer to Topband Smart Europe Company Limited
Topband Mexico Refer to Topband Mexico Company Limited
Topband Battery Refer to Shenzhen Topband Battery Co. Ltd.Four electrics and one network Refer to Electric control motor battery power and IoT platform
AI Refer to Artificial Intelligence
AIoT Refer to Artificial Intelligence + Internet of Things (AI + IoT)
E-Bike Refer to Electric bike
BLDC Motor Refer to Brushless DC Motor
Cell Refer to Cell without a protection circuit board
BMS Refer to Battery Management System for monitoring battery status
PACK Refer to Battery pack
BG BU Refer to Business Group Business Unit
IPD Refer to Integrated Product Development
ISC Refer to Integrated Supply Chain
1C1C3S Refer to Cell cloud platform BMS PCS EMS
PCS Refer to Power Conversion System for controlling discharge/charge and current directionchange
EMS Refer to Energy Management System for monitoring the status of the energy system
RTK Refer to Real-Time Kinematic
PaaS Refer to Platform as a Service providing a computing platform and solution services
8Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Original Design Manufacturer a manufacturer that completes product design and
ODM Refer to development independently produces it according to the brand owner's needs and
sells the final product in the brand owner's name
Tier1 Refer to The first tier
Robotaxi Refer to Unmanned/autonomous taxi
Robotruck Refer to Unmanned/autonomous truck
Simultaneous Localization and Mapping a core technology that enables robots to
SLAM Refer to locate and construct environmental maps in unknown environments in real time
through sensors
9Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section II Company Profile and Primary Financial Indicators
I. Company information
Stock Abbreviation Topband Stock code 002139
Listed stock exchange Shenzhen Stock Exchange
Chinese name of the Company 深圳拓邦股份有限公司
Chinese abbreviation of the
Topband
Company
Name of the Company in
Shenzhen Topband Co. Ltd.foreign language (if any)
Abbreviation of the Company
name in foreign language (if Topband
any)
Legal representative of the
Wu Yongqiang
Company
Topband Industrial Park No. 1 Yongteng Third Road Tangtou Community Shiyan Sub-district
Registered address
Bao'an District Shenzhen
Postal code of registered
518108
address
On November 23 2022 the registered address of the Company was changed from "Room 413
Block B Research Institute of Tsinghua University High-tech Industrial Park Yuehai Sub-district
Nanshan District Shenzhen" to "1/F Topband Industrial Park Phase II Keji Second Road
Tangtou Community Shiyan Sub-district Bao'an District Shenzhen".Changes of the Company's
There was no change during the Reporting Period.registered address
As of the disclosure date of the report the registered address of the Company had been changed
from "1/F Topband Industrial Park Phase II Keji Second Road Tangtou Community Shiyan Sub-
district Bao'an District Shenzhen" to "Topband Industrial Park No. 1 Yongteng Third Road
Tangtou Community Shiyan Sub-district Bao'an District Shenzhen".Topband Industrial Park No. 1 Yongteng Third Road Tangtou Community Shiyan Sub-district
Office address
Bao'an District Shenzhen
Postal code of office address 518108
Website http://www.topband.com.cn
Email wenzh@topband.com.cn
II. Contact person and contact information
Secretary of the Board of Directors Representative of securities affairs
Name Wen Zhaohui Zhang Yuhua
Topband Industrial Park No. 1 Yongteng Topband Industrial Park No. 1 Yongteng
Address Third Road Tangtou Community Shiyan Third Road Tangtou Community Shiyan
Sub-district Bao'an District Shenzhen Sub-district Bao'an District Shenzhen
Tel 0755-26957035 0755-26957035
Fax 0755-26957440 0755-26957440
Email wenzh@topband.com.cn zhangyuhua@topband.com.cn
10Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
III. Information disclosure and storage place
Website of the stock exchange where the Company discloses the
http://www.cninfo.com.cn
Annual Report
Name and website of the media where the Company discloses
Securities Times and CNINFO (http://www.cninfo.com.cn)
the Annual Report
Location where the Company's annual report is available Office of the Board of Directors of the Company
IV. Changes in registration
Unified social credit code 91440300192413773Q
Changes in the main business of the Company since listing (if
No changes
any)
Previous changes in controlling shareholders (if any) No changes
V. Other relevant information
Name of accounting firm RSM China CPA LLP (Special General Partnership)
Office address of accounting 901-22 to 901-26 Waijingmao Mansion Building 1 No. 22 Fuchengmenwai Street Xicheng
firm District Beijing
Name of accountants Tian Jingliang Zhu Aiyin and Fan Lihua
Accounting firm engaged by the Company
Sponsor institution engaged by the Company to perform ongoing supervisory duties during the Reporting
Period
□ Applicable□ Not applicable
Financial consultant engaged by the Company to perform ongoing supervisory duties during the Reporting
Period
□ Applicable□ Not applicable
VI. Main accounting data and financial indicators
Whether the Company is required to retroactively adjust or restate the accounting data of previous years
□ Yes□ No
Increase or decrease
2025 2024 compared with the 2023
previous year
Operating income
11082209741.5210501219821.545.53%8992342169.08
(RMB)
11Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Net profit attributable
to shareholders of listed 363873007.86 671442652.91 -45.81% 515513995.18
companies (RMB)
Net profit attributable
to shareholders of listed
companies after 372855020.82 642049717.52 -41.93% 511919208.82
deducting non-recurring
profit and loss (RMB)
Net cash flow from
operating activities 678366940.29 1091950718.25 -37.88% 1465948499.18
(RMB)
Basic earnings per
0.300.55-45.45%0.41
share (RMB/share)
Diluted earnings per
0.290.55-47.27%0.41
share (RMB/share)
Weighted return on
5.34%10.44%-5.10%8.54%
average equity
Change at the end of
the current Reporting
End of 2025 End of 2024 Period compared with End of 2023
the end of the previous
year
Total assets (RMB) 13567607196.90 12848865960.24 5.59% 11184119392.80
Net assets attributable
to shareholders of listed 6982243877.55 6672327751.46 4.64% 6284917468.50
companies (RMB)
The Company's net profit before and after deducting the non-recurring profit and loss (whichever is lower) is
negative in the last three fiscal years and the audit report of the latest year shows uncertainty in the Company's
sustainable operation ability.□ Yes□ No
The lower of the audited total profit net profit and net profit after deducting the non-recurring profit and loss
during the Reporting Period of the Company is negative.□ Yes□ No
The Company may disclose its net profit after deducting the impact of share-based payment if it has an equity
incentive or employee stock ownership plan.YoY increase/decrease
Key accounting data 2025 2024 2023
(%)
Net profit after deducting the impact of 421434839.98 680419160.71 -38.06% 594804110.01
share-based payments (RMB)
12Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
VII. Differences in accounting data under domestic and foreign accounting standards
1. Differences in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable□ Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting
Period.
2. Difference between the net profit and net assets in the financial statements disclosed in accordance
with both foreign accounting standards and Chinese accounting standards at the same time
□ Applicable□ Not applicable
There is no difference in net profit and net assets between financial statements disclosed in accordance with
Overseas Accounting Standards and those disclosed in accordance with PRC GAAP during the Reporting
Period.VIII. Quarterly primary financial indicators
Unit: RMB
First quarter Second quarter Third quarter Fourth quarter
Revenue 2671427242.07 2830908487.11 2685252142.52 2894621869.82
Net profit attributable to shareholders of
196885296.32133192897.7690377019.93-56582206.15注
listed companies
Net profit attributable to shareholders of
listed companies after deducting the non- 186924957.96 123280456.81 85654298.76 -23004692.71
recurring profit and loss
Net cash flow from operating activities 58348277.70 295006288.79 204541392.91 120470980.89
Note: The Company's fourth quarter profit was negative mainly due to the disposal and impairment of assets related to cell
production equipment as well as the provision for goodwill impairment which affected the net profit by approximately RMB 95
million.Whether there are major differences between the above financial indicators or the total and the financial
indicators in the quarterly report and semi-annual report disclosed by the Company
□ Yes□ No
13Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
IX. Items and amount of non-recurring profit and loss
□ Applicable □ Not applicable
Unit: RMB
Items Amount of 2025 Amount of 2024 Amount of 2023 Note
Profits and losses on disposal of non-current assets
(including the write-off portion of the provision for -56127422.26 -12272827.51 -11399766.84
asset impairment)
Government subsidies included in current profits
and losses (except those that are closely related to
the normal business of the Company conform to
34523115.9436473349.4332905181.89
national policies and regulations are enjoyed
according to certain standards and have a lasting
impact on the Company's profits and losses)
Profits and losses due to fair value changes arising
from the financial assets and liabilities held by the
non-financial business as well as the profits and
losses arising from the disposal of financial assets 17197213.89 -1934735.46 -1302568.51
and liabilities except for the effective hedging
business related to the normal business of the
Company
Reversal of provision for impairment of accounts
receivable that has been separately tested for 133026.95 3769982.90
impairment
Debt restructuring gains and losses -1281246.63
One-time share-based payment due to cancellation
-28092840.35
or modification of the stock incentive plan
Other non-operating income and expenses other than
1740201.728149822.5821796444.13
those mentioned above
Other profits and losses that conform to the
1150853.841477128.99
definition of non-recurring profit and loss
Minus: amount affected by income tax 6447924.35 4660769.24 11184636.52
Amount affected by minority shareholders'
224.851494.52604156.43
equity (after tax)
Total -8982012.96 29392935.39 3594786.36 --
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable□ Not applicable
None.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public – Non-recurring Profit and
Loss as recurring profit and loss items
□ Applicable□ Not applicable
14Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
There is no such situation of defining the non-recurring profit and loss items listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public - Non-
recurring Profit and Loss as recurring profit and loss items in the Company.
15Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section III Management Discussion and Analysis
I. Main business engaged by the Company during the Reporting Period
Adhering to the core values of "Agility Innovation and Partnership" and based on the core technology
system of the "four electrics and one network and AI" the Company develops produces and sells two product
categories – intelligent control products and autonomous intelligence products serves the three major industries
of tools and home appliances automotive and high-end equipment and new energy and keeps implementing
the intelligence low-carbon and internationalization strategy.Business Structure of the Company
Intelligent control products Autonomous intelligence products
Tools and Automotive Cloud Cloud
home and high-end New energy storage charging
appliances equipment
Technology-driven Technology-driven
"Four electrics and one network"
+ AI
Electronic Motor Battery Power IoT AI
control technology technology source platform technology
technology technology
Core technology: "four electrics and one network + AI" technology platform
Electric control technology: integrating sensing power electronics signal processing communication
human-computer interaction and other technologies to achieve the intelligent control of terminal products with
microprocessors being the core. The Company has established hundreds of electric control technology platforms
which are applied widely to products such as controllers mechatronics power sources and intelligent batteries.Motor technology: The Company pursues continuous iteration with focus on the four major indicators of
high efficiency low noise high precision and high reliability and has established product platforms such as
brushless DC (BLDC) motors hollow cup motors (including brushed hollow cup motors and brushless slot-less
16Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
motors) switched reluctance motors servo motors and stepper motors as well as full-process capabilities from
design simulation and testing verification to large-scale intelligent manufacturing.Battery technology: The Company has formed complete design development and production capabilities
from cell technology and battery management systems (BMS) to battery packs. BMS achieve the real-time
monitoring and management of battery status through advanced algorithms and are applied widely to energy
storage power backup battery swapping portable devices and other scenarios.Power technology: covering analog power supply switching power supply digital power supply and
server power supply technologies and products such as power conversion systems (PCS) photovoltaic inverters
high-power DC charging piles and efficient server power sources for AI datacenters and meeting multi-
scenario power conversion demand from new energy to computing infrastructure.IoT platform: covering complete technological capabilities from modules and intelligent terminals to apps
and PaaS keeping evolving toward AIoT and endowing products with perception learning and autonomous
decision-making capabilities. The Company has built a home energy management cloud platform and a digital
energy management cloud platform supporting intelligent collaboration and data operations for energy storage
charging photovoltaic and other devices.AI technology: The Company regards AI as the capability base that runs through the "four electrics and
one network" and focuses on three directions: The first is product intelligence where AI algorithms are
embedded into controllers BMS. EMS and other products to achieve adaptive control predictive maintenance
and intelligent energy scheduling making products more intelligent as they are used; the second is
manufacturing intelligence where AI quality inspection process parameter optimization and intelligent
scheduling are deployed in the production process to improve manufacturing efficiency and quality consistency;
the third is R&D intelligence where AI is used to assist in simulation design testing and verification and
knowledge management to accelerate product development and iteration.
1. Intelligent control products
The Company's intelligent control products mainly include customized core components such as
intelligent controllers high-efficiency motors and battery packs as well as industry system solutions.Intelligent controllers: This core business of the Company had a shipment volume of 181 million sets in
2025 a year-on-year increase of 1.69% and a cumulative shipment volume of 1.81 billion sets. The Company
maintains deep cooperation with global top brand customers such as TTI Electrolux and Johnson Controls and
17Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
its production capacity is mainly from the four major manufacturing bases in the Pearl and Yangtze River Deltas
in China. Synchronous overseas delivery is achieved in Vietnam Mexico India and Romania.Efficient motors: This second largest category of the Company includes external rotor DC brushless
motors LiDAR motors and hollow cup motors with a shipment volume of 4.52 million sets in 2025 a year-on-
year increase of 28%. Among them the cumulative shipment volume of LiDAR rotating mirror motors
exceeded 1 million units with a market share of over 30%; the annual production capacity hollow cup motors
with outer diameters of Φ6~Φ40mm was over 1 million units which have been applied to intelligent cockpits of
vehicles and dexterous hand actuators of humanoid robots.Battery packs: This third largest category of the Company covers power tools E-Bike vehicle and vessel
onboard industrial and commercial energy storage home energy storage communication backup power and
other scenarios with a shipment volume of 1.09GWh in 2025 a year-on-year increase of 15.38%.The Company's intelligent control products are applied mainly to three major industries: tools and home
appliances automotive and high-end equipment and new energy.
1.1 Tools and home appliances
The Company is deeply involved in the tool and home appliance industry and provides global brand
customers with full process services from product conceptualization design and development to manufacturing
and delivery and the four core types of components supplied are controllers motors batteries and power
sources. Tools cover electric tools garden tools and professional tools; home appliances cover a full range of
categories including HVAC ice washing large kitchen appliances cleaning appliances personal healthcare etc.with a stable global layout of customer resources.
18Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Tools and home
appliances
Application
scenarios
Company
products
1.2 Automotive and high-end equipment
The automotive and high-end equipment industry is a highly flexible future growth direction for the
Company covering four major directions: vehicles robotics industry and AI datacenters. In terms of vehicles
the Company is already supplying LiDAR motors to top automakers in batches and keeps scaling up charging
infrastructure; in terms of robotics the Company has built a complete servo drive + motor + motion control
product platform and reserved dexterous hand actuator capabilities for active cooperation with top complete
machine manufacturers; in terms of industry the Company supplies servo drives and motor products to
industries such as 3C electronics medical equipment and semiconductors and has achieved large-scale supply;
in terms of AI datacenters scenarios such as backup power control are covered and this direction is expected to
become a new growth source.
19Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Automotive and high-
end equipment
Application
scenarios
Company
products
1.3 New energy
The new energy industry is a core driving direction with high growth potential for the Company covering
two major tracks: energy storage and two-wheeled electric vehicles. In terms of energy storage the component
layer covers cells BMS PCS and EMS and the complete machine layer covers a full range of products such as
home energy storage industrial and commercial energy storage and communication backup power; in terms of
two-wheeled electric vehicles the Company provides motor and intelligent control solutions to mainstream
domestic and overseas brands and has established a stable global customer base.New energy
Application
scenarios
Company
products
20Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Autonomous intelligence products
As the second growth curve for the Company autonomous intelligence products are based on hardware
pivoted on the cloud and driven by AI with data constantly circulating among them allowing products to move
from passive response to autonomous decision-making and making them increasingly intelligent as they are
used. As the first batch of autonomous intelligence products of the Company cloud storage and cloud charging
products have been developed and launched successfully and bulk sale has been achieved.Based on full-chain self-developed core technologies cloud storage and cloud charging products cover
self-developed BMS PCS charging power modules and energy control units at the hardware level with
independently controllable key components and underlying algorithms; the cloud-based EMS energy
management platform can perceive the real-time status of the power grid loads and devices and decide on
charging and discharging strategies independently; operational data keeps feeding back AI iteration enabling
the system to achieve autonomous evolution. Cloud storage products cover home and industrial and
commercial energy storage while cloud charging products cover DC charging piles. They are delivered
modularly through the three-layer architecture of "complete machine + scenario solution + cloud platform data"
covering scenarios such as home green energy commercial complex storage and charging and zero-carbon
parks.Topband Zero-carbon Cloud
Applicati
on Panoramic Intelligent Coordinated Electricity Data analysis Smart O&M
function Virtual power plantmonitoring prediction control management dispatching center
Generation Peak shaving Dynamic Demand
and valley Demand Orderly
strategy filling control
capacity response
expansion charging Electricity trading market
EMS intelligent controller
Edge computer
Municipal power grid Photovoltaic powergeneration Energy storage system Charging pile Controllable load
Photovoltaic Storage Charging Application
Topband Zero-carbon Cloud – Cloud-edge-device Architecture
21Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Interface of the Topband Zero-carbon Cloud (simulated data)
II. Industry situation of the Company during the Reporting Period
1. Basic situation of the industry
Intelligent controllers are core components that connect the perception and execution layers. By integrating
microprocessors sensors power electronics and communication modules they endow terminal products with
intelligent control and autonomous decision-making capabilities and are applied widely to fields such as home
appliances power tools automotive and high-end equipment and new energy. In 2025 two major trends are
reshaping the industry landscape: First AI technology is penetrating into hardware terminals at a faster pace
and intelligent controllers are evolving from passive instruction execution to active perception learning and
decision-making and new application scenarios such as AI hardware and intelligent robots keep emerging;
second low-carbon digital transformation keeps deepening in the global manufacturing industry promoting the
continuous upgrading of controllers toward high integration and high energy efficiency.According to data from institutions such as Frost & Sullivan and ASKCI Corporation the size of the global
intelligent controller market was approximately USD 1.96 trillion in 2024 with a compound annual growth rate
of approximately 5% in the past decade. With a well-established electronic supply chain system and
technological upgrading capabilities of local enterprises China has become the world's largest intelligent
controller market with a market size of RMB 3.81 trillion in 2024 and a compound annual growth rate of 14%
in the past decade far higher than the global average. Its market size is expected to exceed RMB 4.28 trillion in
22Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2025. In the meantime the deep integration of AI and intelligent control technologies is pushing the application
boundaries of the industry – Intelligent robots driven by AI big models are developing rapidly and the demand
for high-precision motion control energy management and sensing execution components is growing
significantly keeping expanding the value boundaries of the intelligent controller industry.
2. Position in the industry
Topband is a "Single Champion Manufacturing Enterprise (Smart Home Control Modules)" recognized by
the Ministry of Industry and Information Technology. Founded in 1996 it is the first pioneer in the domestic
intelligent control industry the first listed specialized enterprise and the largest solution provider. After 30
years of continuous investment the Company has built an integrated technology system of the "four electrics
and one network + AI" (electric control motor battery power IoT platform and AI) and taken the lead in
expanding from a single category to all categories and from a single industry to multiple industries. The
Company began with air conditioner controllers covered all categories of home appliances gradually and then
expanded to industries such as electric tools automotive and high-end equipment and new energy. This
development paradigm of "deepening categories and broadening industries" has become a mainstream direction
in the intelligent control industry. The Company has established long-term in-depth partnerships with numerous
global industry leaders.In 2025 the Company's revenue exceeded RMB 11.082 billion and kept growing steadily with a
compound annual growth rate of 22.59% in the past decade. It had 13200 employees and a number of
manufacturing bases worldwide providing in-depth services to three major industries: tools and home
appliances automotive and high-end equipment and new energy. The Company received the second prize in the
Scientific and Technological Progress Award of Guangdong Province its global supply chain collaboration
capabilities kept strengthening and its industry leadership was further consolidated.III. Analysis of core competencies
1. Scale barrier formed by industry leadership
The intelligent control industry is characterized by being capital and technology intensive and long
customer certification periods and top enterprises' cost production capacity and customer stickiness
advantages keep expanding. With 30 years of mass production experience the Company has formed a fully
verified product platform and manufacturing system constituting a significant scale barrier. On the customer
23Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
side the Company embeds itself deeply into the core supply chain of global top brand customers through joint
product definition early involvement in R&D and the joint formulation of delivery standards forming high
switching cost partnerships. On the production capacity side the four major domestic bases and the four major
overseas bases form a global delivery network responding to tariff fluctuations and supply chain risks
effectively.
2. "Four electrics and one network + AI" integrated technology platform
The Company is one of the few enterprises in the industry that possess full-stack technological capabilities
of electric control motor battery power supply IoT platform and AI concurrently. There are many competitors
in a single technology field but only very few enterprises can integrate the six major technologies into
integrated solutions and achieve reuse across industries and continuous iteration. The Company has hundreds
of core product platforms that have been verified through mass production which can be combined and
customized quickly based on customer needs to provide differentiated system-level solutions across industries
and form hardly replicable technological synergy advantages.
3. Agile operational system
The Company has built a customer-centric process-oriented organization around four strategic principles:
customer intimacy being innovation-driven agile operations and organizational evolution. It promotes IPD
(Integrated Product Development) processes on the R&D side and drives product development based on
customer needs; it promotes ISC (Integrated Supply Chain) transformation on the supply chain side to achieve
on-demand pull; it has established a CNAS-accredited laboratory on the quality side to provide international
certification level quality assurance; it keeps promoting intelligent upgrading on the manufacturing side to
improve efficiency and quality consistency. The operation of the above system is supported by the "Agility
Innovation and Partnership" organizational culture formed by the Company's over the past three decades – rapid
response driven by agility value creation driven by innovation and deep customer collaboration driven by the
partnership spirit. This cultural consensus integrated into the organizational DNA integrates the strategies
processes organization and global layout into a unified operational system organically making it a soft barrier
that can hardly be replicated by peers in the short term.
24Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
IV. Analysis of main business
1. Overview
During the Reporting Period the Company achieved revenue of RMB 11.082 billion a year-on-year
increase of 5.53%; a net profit attributable to shareholders of the listed company of RMB 364 million a year-
on-year decrease of 45.81%; a net profit attributable to shareholders of the listed company after deducting the
non-recurring profit and loss of RMB 373 million a year-on-year decrease of 41.93%. After excluding the
impact of share based payment expenses the net profit attributable to shareholders of the listed company during
the Reporting Period was RMB 421 million a decrease of 38.06% compared to the same period last year.Among them the disposal and impairment of assets related to cell production equipment and goodwill
impairment had a total impact of approximately RMB 95 million on the net profit this year.In the dual background of escalating international trade frictions and the structural cycle of AI
development in 2025 there was pressure on the cost side due to the fluctuation of tariff policies and the upward
shift of key commodity and cell prices. In addition enterprises were also in a critical period of AI
industrialization and deepening new energy transformation. The Company responded actively to challenges and
seized development opportunities with technology platforms being the core driving force the global layout as
important support and cost control as the operational cornerstone. During the Reporting Period the
technological platformization capability of the Company's intelligent control business kept enhancing achieving
the reuse of the "platformization capability" among customers in multiple industries categories and brands. It
served the three major industries of home appliances automotive and high-end equipment and new energy
deeply developed autonomous intelligence products on the basis of the intelligent control business and kept
optimizing its business structure and enhancing its core competencies laying a solid foundation for medium- to
long-term high-quality development.(I) Business performance by business segment
1. Intelligent control products
With 30 years of technological expertise the Company has built a unique core technology system of the
"four electrics and one network + AI" (electric control motor battery power supply IoT platform AI
technology) and expanded its core technologies to multiple downstream industries with the strategy of
"technology platformization and application industrialization". Among them intelligent control products have
achieved solid leadership in the tool and home appliance industries and are penetrating into high growth tracks
25Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
such as vehicles high-end equipment and new energy in strategic emerging fields faster. In the future with the
advancement of the "intelligent and low-carbon" strategy and the accelerated penetration of AI technology into
hardware terminals the application boundaries of intelligent controllers will keep expanding.
1.1 Tools and home appliances
During the Reporting Period the revenue reached RMB 8.471 billion a year-on-year increase of 6.14%
with a gross profit margin of 21.48% a year-on-year decrease of 1.69 percentage points.Tool segment: During the Reporting Period the revenue of the tool segment reached RMB 4.145
billion a year-on-year increase of 3.99%;
In 2025 the Company's tool segment maintained steady growth against the backdrop of the slowdown of
the global electric tool market. As a core supplier in the electric tool industry the Company has built full-stack
supply chain capabilities covering controllers motors battery packs and solutions to serve leading global
electric tool brands deeply.According to the White Paper on the Development of the Electric Tool Industry of China (2025) released
jointly by EVTank China YiWei Institute of Economics and the China Battery Industry Research Institute the
global annual shipment of electric tools is expected to rise to 590 million units in 2025 and the size of the
global electric tool market will be about USD 56.64 billion. It is expected that the market will maintain its
steady growth trend in the future and the size of the global electric tool market will reach USD 98.7 billion by
2030. The downstream market share is highly concentrated in top brands such as TTI BLACK+DECKER
Bosch and Makita. With one-stop solutions and excellent delivery capabilities Topband shares the growth
bonus of the global electric tool market deeply.During the Reporting Period the penetration of lithium batteries in the industry accelerated especially in
the OPE (outdoor power equipment) field where the process of fuel replacement with lithium batteries
accelerated; the intelligent upgrading of the industry was reflected in the large-scale application of AI
technology in fields such as mowing robots and intelligent tools; the penetration rate in emerging markets
increased; global capacity restructuring and market differentiation were manifested in the regionalization of
supply chains the differentiation of demand for professional and consumer tools and the differentiation of tool
demand between mature and emerging markets.During the Reporting Period the Company accelerated its overseas production capacity deployment;
intensified technological innovation and increased R&D investment in fields such as AI lithium batteries and
26Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
cordless technology; optimized costs; increased the application of high-value categories such as industrial grade
and intelligent mowing robots; expanded downstream customers and product categories and accelerated the
progress of cooperation with other top customers while consolidating cooperation with the largest customer
achieving stable growth in market share with room for improvement.Home appliance segment: During the Reporting Period the sales revenue reached RMB 4.326 billion
a year-on-year increase of 8.28%;
According to Euromonitor data the global sales revenue of large home appliances reached approximately
USD 298 billion a year-on-year increase of 1.4%; the global sales volume of small home appliances reached 2
billion units showing slow but stable overall growth. As the largest downstream application market for
intelligent controllers the home appliance industry keeps increasing in value as intelligent and high-end
upgrading continues opening up vast growth room for upstream core component suppliers.The Company's home appliance business segment maintains steady growth and coordinated development
in domestic and overseas markets with the customer structure optimized constantly. As a leading global
provider of intelligent control solutions Topband is leading in the field of ODM intelligent control for home
appliances and serves global top brands such as Johnson Controls Electrolux Carrier and LENNOX deeply.The Chinese market has entered the stage of stock refinement and consumer demand has shifted from
"incremental popularization" to "quality upgrading". Green energy conservation full-home intelligence healthy
scenarios and home integration are the four main growth lines driving industry upgrading and industry
technology upgrading is taking on the trend of intelligence deepening and low-carbon acceleration. The
Company keeps up with technological trends and keeps increasing R&D investment in field such as variable
frequency technology AI algorithms and IoT platforms to provide customers with high-added-value solutions
and consolidate and improve its market share.Overseas markets are important markets for the growth of the Company's home appliance business. The
Company focuses on expanding applications of high-end commercial products increasing their value
contribution in areas such as commercial air conditioners commercial kitchens intelligent buildings AI
thermostats and commercial swimming pool water treatment. The Company keeps optimizing its customer
structure strengthening cooperation depth with domestic and overseas top brand enterprises and expanding
high-quality middle-end customers further increasing its customer concentration and market share. The two
main technological lines of intelligence deepening and low-carbon acceleration will run through the whole
27Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
development process of the industry. Topband will continue to seize the demand for quality upgrading and
opportunities for high-end commercial applications based on the technology platform of the "four electrics and
one network + AI" keep promoting the upgrading of the home appliance business toward higher value and
higher barriers and achieve steady growth above the industry average.
1.2 Automotive and high-end equipment
During the Reporting Period the revenue was RMB 1.29 billion a year-on-year increase of 50.84% and
the gross profit margin was 27.31% a year-on-year decrease of 1.20 percentage points.During the Reporting Period the Company increased the application of intelligent control products in
emerging fields such as automotive electrification robot embodied intelligence industrial automation and AI
computing power and there was significant technological homogeneity in energy management power control
intelligent algorithms and other related industries; the Company achieved cross-field platform development and
application in core components such as intelligent controllers power management systems and motor drives
through product platformization and modular design achieving revenue growth in high growth industries such
as automotive and high-end equipment.Vehicles: During the Reporting Period the revenue reached RMB 749 million a year-on-year
increase of 95.72% showing a sustained rapid growth trend.Core layout: Centered around electrification and advanced intelligent driving the Company seizes market
opportunities brought by automotive electrification and intelligence actively to build a product matrix with
LiDAR motors and charging piles at the core:
(1) LiDAR motors: With the accelerated penetration of intelligent driving technology in the field of new
energy vehicles large-scale assembly and application have been achieved for LiDAR motors developed jointly
by the Company and top customers with a stable market share among core customers; in 2025 the market share
in motors for onboard rotating mirror LiDARs was over 30% (data compiled by the Company). The cumulative
sales volume of the Company's first-generation LiDAR motors was over 1 million in just two years of mass
production and the Company keeps upgrading its second-generation products while developing third-
generation LiDAR motors to expand the scope of onboard application actively. Rotating mirror LiDARs are
expected to remain a mainstream choice in the medium- to high-end segments for their excellent stability
reliability and maturity. As core driving components high-precision and high-reliability motors are the key
support to ensure the performance advantages of the rotating mirror version.
28Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Charging piles: With the rapid growth of global new energy vehicle ownership the demand for
charging facilities is growing significantly. The Company has built a full-scenario product matrix covering AC
and DC charging piles with liquid-cooled supercharging technology being the core meeting diversified
charging needs such as home commercial and public transit. The Company creates cost-effective products
through differentiated competition based on the delivery and manufacturing capabilities of automotive grade
products. During the Reporting Period AC piles and charging heads entered the supply chain of overseas top
automakers indirectly through the model of "indirectly supplying global top customers through core Tier-1
suppliers" achieving a rapid increase in the overseas charging market share.Industry trend: According to data from the China Association of Automobile Manufacturers the production
and sales volumes of new energy vehicles in China were 16.626 million and 16.49 million respectively in 2025
with a year-on-year increase of 29.0% and 28.2% respectively ranking first in the world for 11 consecutive
years. In 2025 under the wave of "technological equality" in the automotive industry rapid growth in vehicle
installation volume and continuous improvement in penetration rate were achieved for LiDARs.According to data from Gasgoo 3.386 million LiDARs were installed in China in 2025 a year-on-year
increase of 120.1% and the overall penetration rate reached 11%. As core sensors for intelligent perception
LiDARs are facing important development opportunities. The driving force for market growth mainly comes
from three sources: The first is the rapid increase in the penetration rate of L3 autonomous driving in the
passenger vehicle field; the second is the expanding commercial operation scale of Robotaxi/Robotruck driving
a surge in the demand for LiDARs; the third is the acceleration of smart city construction and industrial
automation which has opened up new application scenarios for LiDARs. With the popularization of
autonomous driving technology and the improvement of intelligent networking ecology according to industry
institutions' predictions the LiDAR industry is expected to maintain rapid growth in the next five years
injecting new momentum into the global automotive industry and the intelligent technology field.Robotics: During the Reporting Period the sales revenue reached 294 million a year-on-year
increase of 39.61%.This segment mainly focuses on the fields of service robots humanoid robots and industrial robots
providing control motors power sources battery packs and complete machine products. The industry is
entering the first year of application and the deep integration of large models and robots has driven a substantial
breakthrough in robots from being able to walk to being able to operate.
29Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
During the Reporting Period the robotics segment maintained rapid growth. In the field of humanoid
robots the Company has launched the "Spirit Drive Micro Engine" actuator for dexterous hands based on
hollow cup motors which has the advantages of high energy density and compactness and is suitable for the
"small size and high output" demand of link-type dexterous hands. It has obtained small-scale trial production
orders from customers. In the field of service robots the Company has created a universal mobile chassis
technology platform that covers core technologies such as positioning and navigation AI vision multi-sensor
fusion SLAM and human-computer interactions with focus on home and commercial scenarios to support the
rapid development and commissioning of multi-category robots. In the field of industrial robots the Company
focuses on breakthroughs in the application of intelligent control products in high-precision reliable and
integrated performance industrial robot scenarios empowering the intelligent upgrading of the manufacturing
industry. The Company also develops new categories such as care robots and practices the core value of
"creating value for customers and benefiting everyone with intelligent control technology".Industry: During the Reporting Period the sales revenue reached RMB 245 million a year-on-year
decrease of 6.36%.In the field of industrial automation motion control the Company has formed the three major product
matrices of "stepper systems servo systems and motion control" as well as multi-industry solutions.During the Reporting Period the Company continued with technological innovation and product upgrading
and the five phase stepper drive received the "Industrial Design Red Sail Award" from the Intelligent Equipment
Industry Association; the servo system was iterated constantly around high performance stability and low cost;
diversified motion control technology Ether CAT bus technology and pulse control technology developed in
parallel. On the basis of maintaining its traditional advantages in 3C electronic manufacturing laser equipment
numerically controlled machine tools textile printing etc. the Company keeps expanding high-precision
control solutions in the semiconductor field such as probe stations beam splitters laser cutters and die
bonding/eutectic machines.AI datacenter energy: During the Reporting Period the sales revenue reached RMB 2 million.With the rapid growth in the demand for AI computing power the demand for efficient power heat
dissipation and energy storage in datacenters keeps growing increasing the demand for AI infrastructure. The
Company has launched efficient server power solutions for AI datacenter energy scenarios based on its expertise
in digital power control and power electronics topology in the field of server power supply; in addition based
30Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
on the power intelligent control platform the Company cooperates with top power customers for overseas
datacenters actively covering scenarios such as backup power control; for motor products the Company has
been designated as a supplier of liquid-cooled servers for new-generation AI datacenter super-nodes by leading
enterprises and is expected to benefit from the marketing and bulk introduction of customer products.
1.3 New energy
Business performance: During the Reporting Period the revenue reached RMB 1.279 billion a year-on-
year decrease of 22.71% and the gross profit margin was 16.40% a year-on-year decrease of 2.86 percentage
points.Industry trend: In 2025 domestic energy storage shifted from mandatory allocation to market-oriented
operations with mechanisms such as capacity pricing peak-valley arbitrage and auxiliary services
implemented. The demand for independent energy storage industrial and commercial energy storage zero-
carbon parks and virtual power plants grew rapidly. Overseas industrial and commercial energy storage and
large-scale storage saw significant growth in Europe due to dynamic electricity prices and frequency regulation;
ITC subsidies continued and there was strong demand for home energy storage and datacenter distribution
storage in the U.S.; emerging markets such as Asia Pacific and the Middle East saw rapid growth in
photovoltaic-storage-diesel and park energy storage. The global energy storage industry is upgrading toward
high safety liquid cooling and intelligence.Business overview: Based on the core technology system of the "one chip one cloud and 3S" (cells cloud
platforms BMS PCS and EMS) the Company has built a full-chain product ecosystem of "photovoltaic
storage and charging" forming a business structure based mainly on energy storage products and supplemented
by light-duty power. Among them energy storage focuses on scenarios such as vehicle and vessel onboard
home energy storage industrial and commercial energy storage and communication backup power. The
revenue declined year on year during the Reporting Period mainly due to the combined impact of the year-on-
year decline in the non-home energy storage product revenue and the adjustment of the product basis; the
revenue from home energy storage and light-duty power increased year on year.Core components: BMS cover all scenarios and come with millisecond-level thermal runaway detection
to ensure safety and longevity; PCS have been upgraded comprehensive to be compatible with multiple voltage
levels and support remote upgrading; EMS are highly stable and can be customized.
31Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Products: The home energy storage segment covers a full range of high and low voltage products while
high voltage products expand flexibly iterate rapidly from standard products strengthen performance matching
and delivery capabilities and achieve remote intelligent control and multi-energy collaboration along with self-
developed cloud platforms. Industrial and commercial energy storage and large-scale storage cover all
specifications within the range of 50kWh~3MWh suitable for scenarios such as park energy management and
diesel engine replacement. Liquid cooling systems are improved in adaptability and scheduling is optimized for
zero-carbon cloud platforms; during the Reporting Period the Company made intensive efforts in China
Europe the U.S. and the Asia Pacific region achieving the continuous delivery of large-scale projects. In China
the Company focuses on zero-carbon parks photovoltaic storage and charging and central and state-owned
enterprises; in Europe the Company penetrates into small and micro businesses based on electricity price
arbitrage; in Asia Pacific the Company enters manufacturing parks with photovoltaic storage and diesel; in the
Americas the Company builds channels and collaborates on global data iteration based on standard platforms.In the future energy storage will develop toward high safety high efficiency and intelligence and
distributed and centralized systems will be accelerated in a coordinated manner. The Company has completed
full-scenario technology product reservation and global channel deployment and industrial and commercial
energy storage is expected to resume growth in the context of high market growth.
2. Autonomous intelligence products
During the Reporting Period the revenue reached RMB 42 million a year-on-year increase of 312.23%
with a gross profit margin of 12.28% a year-on-year increase of 4.82 percentage points.Autonomous intelligence products are a new development direction derived from the Company's intelligent
control products. The two businesses share the core technology system of the "four electrics and one network +
AI" – The electric control motor battery power supply and IoT platform capabilities accumulated in intelligent
control products over 30 years provide a solid technical foundation for autonomous intelligence products which
are based on hardware pivoted on the cloud and driven by AI with data constantly circulating among them
allowing products to move from passive response to autonomous decision-making and making them
increasingly intelligent as they are used.Currently the Company's first autonomous intelligence products focus on the field of green energy
represented by cloud storage (energy storage) and cloud charging (DC charging piles). Cloud storage and cloud
charging refer specifically to products that are connected to the Company's AI digital energy cloud platform
32Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
have data closed-loop and AI autonomous decision-making capabilities and belong to different business
categories from the charging piles and energy storage products in the Company's intelligent control business.Both charging infrastructure and energy storage are in a period of rapid growth – according to the relevant plans
of the National Development and Reform Commission and the National Energy Administration the target
number of charging piles in China is to double within three years and the annual compound growth rate of the
DC fast charging pile market is expected to exceed 30%; (source: IEA Global EV Data Explorer National
Development and Reform Commission/National Energy Administration); in 2025 the global newly installed
industrial and commercial energy storage capacity increased by 18.96GWh and the year-on-year growth rate of
the Chinese market was 61%. (Source: forecast data from multiple institutions) Cloud storage products cover
home energy storage and industrial and commercial energy storage while cloud charging products cover DC
charging piles. With self-developed BMS PCS EMS and power modules these products have excellent
hardware execution capabilities; the AI powered cloud platform developed independently by the Company
aggregates multidimensional data such as electricity prices weather loads and equipment operations. On this
basis AI outputs optimal O&M strategies dynamically; as the deployment scale expands operational data keeps
feeding back AI iteration and the system achieves "increasingly intelligent" autonomous evolution as it is used
maximizing users' value in use and the economic efficiency of their assets.Unlike the customized component business of intelligent control products autonomous intelligence
products are delivered in the three-tier architecture of "complete machines + scenario solutions + cloud platform
data operations" – not only selling hardware products to customers but also improving their asset operation
efficiency and economic benefits through cloud platforms and AI algorithms continuously extending from
simple hardware delivery to intelligent solutions. During the Reporting Period in terms of cloud storage
benchmark industrial and commercial energy storage projects were delivered and channel building was
launched for home energy storage products in Europe; in terms of cloud charging 1120kW supercharging piles
were put into mass production with a cumulative charging success rate of over 99% in benchmark projects
(source: company operation data) and European standard DC piles passed CE certification. As of the end of the
Reporting Period the AI energy cloud platform had connected hundreds of energy storage and charging devices
and its closed-loop scheduling capability had entered the actual operation stage.(II) Short-term pressure on profitability firm technology investment and long-term optimism for
the industry
33Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
In 2025 the Company achieved a comprehensive gross profit margin of 21.54% a year-on-year decrease
of 1.44 percentage points. The fluctuation of tariff policies arising from escalating global trade frictions during
the Reporting Period the upward shift of key bulk products and cell prices intensified price competition in
some downstream application industries and the lack of scale in the Company's new business all affected the
gross profit margin. The Company firmly believes in the future potential of the intelligent control business in
existing industries and the expansion of new scenarios and is also confident in the long-term development of
autonomous intelligence products. It keeps increasing R&D investment in innovative application fields such as
AI applications robots motors complete machines and vehicles. In 2025 the Company invested RMB 1.047
billion in R&D accounting for 9.45% of its revenue. As of the end of the Reporting Period the Company had
applied for 3915 patents in total including 1351 invention patents 1961 utility model patents 492 design
patents 51 foreign patents and 60 PCT patents; the Company and its subsidiaries had applied for 332 software
copyrights and filed 520 trademark applications in total.(III) Stable business development supported by healthy operating cash flows
During the Reporting Period the Company achieved a net cash flow from operating activities of RMB 678
million a year-on-year decrease of 37.88% still significantly higher than the Company's annual net profit.During the Reporting Period the Company's cash flow from sales was normal and the decline in the net cash
flow from operating activities was mainly attributed to factors such as slowing revenue growth fluctuation in
upstream raw material prices declining profits and early stocking. The Company continues to reuse its
technology platforms accelerate the deployment of autonomous intelligence products and increase investment
in the R&D of new technologies and products to improve product competitiveness. Based on the expansion of
the Company's business scale the potential for new business development and the overall planning of funds
the Company's cash flows are at a normal and controllable level and all business operations are stable and
sustainable.(IV) Consolidating business resilience and long-term development in multiple dimensions based on
AI empowerment + process efficiency improvement + global layout
During the Reporting Period the Company deepened the building of a process-oriented organization
promoted ISC integrated supply chain IPD integrated product development and digital collaboration and built
an efficient and agile customer-oriented system to release organizational efficiency. In the meantime it
empowered various fields of products manufacturing and R&D with AI technology: embedding AI algorithms
34Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
on the product side to achieve intelligent control and energy scheduling implementing AI quality inspection and
intelligent scheduling on the manufacturing side to improve efficiency and quality and using AI assisted design
simulation on the R&D side to accelerate iteration.In 2025 the Company expanded its overseas production capacity kept improving its localized overseas
delivery capabilities and highlighted its service advantages of nearby delivery and rapid response. The output
value of the overseas manufacturing platforms exceeded RMB 2.8 billion with a growth rate of over 20%
achieving simultaneous enhancement with the lean capabilities and scale advantages of domestic manufacturing
and supporting steady business expansion jointly. This lays a foundation for the Company to make further
efforts in overseas markets expand its business presence and enhance its market influence.
2. Revenue and cost
(1) Composition of operating income
Unit: RMB
20252024
YoY increase or
Proportion in Proportion in
Amount Amount decrease
operating income operating income
Total operating
11082209741.52100%10501219821.54100%5.53%
income
By industry
Intelligent control
11082209741.52100.00%10501219821.54100.00%5.53%
electronics industry
By product
1. Intelligent
control products 11039800570.17 99.62% 10490932194.24 99.90% 5.23%
Tools and home
appliances 8470664398.82 76.43% 7980787841.67 76.00% 6.14%
Automotive and
high-end equipment 1290029704.82 11.64% 855207258.79 8.14% 50.84%
New energy 1279106466.53 11.54% 1654937093.78 15.76% -22.71%
2. Autonomous
intelligence 42409171.35 0.38% 10287627.30 0.10% 312.23%
products
Cloud storage and
cloud charging 42409171.35 0.38% 10287627.30 0.10% 312.23%
By region
PRC(mainland) 3793503561.89 34.23% 3658753063.77 34.84% 3.68%
Overseas 7288706179.63 65.77% 6842466757.77 65.16% 6.52%
By sales model
Basing production
11082209741.52100.00%10501219821.54100.00%5.53%
on sales prospects
Note: In 2025 the Company's products were divided into two major categories namely intelligent control and
35Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
autonomous intelligence products. Among them autonomous intelligence products were a new product
category while the original industry application classification criteria were maintained for intelligent control
products with digital energy updated to new energy other emerging industry applications such as robots and
intelligent vehicles merged into automotive and high-end equipment and tools and home appliances unchanged.
(2) The situation of industries products regions or sales models accounting for more than 10% of the Company's
operating income or operating profit
□ Applicable □ Not applicable
Unit: RMB
Increase or
Increase or Increase or
decrease of
decrease of decrease of
Gross operating
operating costs gross profit
Revenue Operating cost profit income over
over the same rate over the
rate the same
period of last same period
period of last
year of last year
year
By industry
Intelligent control
11082209741.528695584065.1321.54%5.53%7.50%-1.44%
electronics industry
By product
1. Intelligent control
products 11039800570.17 8658384797.74 21.57% 5.23% 7.17% -1.42%
Tools and home
appliances 8470664398.82 6651368118.57 21.48% 6.14% 8.47% -1.69%
Automotive and high-
end equipment 1290029704.82 937670453.31 27.31% 50.84% 53.38% -1.20%
New energy 1279106466.53 1069346225.86 16.40% -22.71% -19.97% -2.86%
By region
PRC(mainland) 3793503561.89 3082112219.39 18.75% 3.68% 4.07% -0.30%
Overseas 7288706179.63 5613471845.74 22.98% 6.52% 9.48% -2.08%
By sales model
Basing production on
11082209741.528695584065.1321.54%5.53%7.50%-1.44%
sales prospects
The Company's main business data for the last year adjusted according to the caliber at the end of the Reporting
Period when the statistical caliber of the Company's main business data is adjusted during the Reporting Period
(3) Whether the Company's revenue from physical sales is greater than that from services
□ Yes □ No
YoY increase or
Industry classification Items Unit 2025 2024
decrease
36Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Sales pcs 190689970 186754409 2.11%
Intelligent controller Production
pcs 192565701 188636179 2.08%
electronics industry output
Inventory pcs 10061329 8185598 22.92%
Reasons for year-on-year changes of relevant data exceeding 30%
□ Applicable□ Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company as of the Reporting
Period
□ Applicable□ Not applicable
(5) Composition of operating costs
Industry classification
Unit: RMB
2025 2024 YoY
Industry increase
Items
classification Proportion to Proportion toAmount Amount or
operating costs operating costs decrease
Intelligent Intelligent
control control
8695584065.13100.00%8088901865.21100.00%7.50%
electronics electronics
industry industry
YoY
2025 2024 increase or
Product category Items decrease
Amount Proportion to Amount Proportion tooperating costs operating costs
1. Intelligent Main business
control products costs 8658384797.74 99.57% 8079382366.15 99.88% 7.17%
Tools and home Main business
appliances costs 6651368118.57 76.49% 6131829716.52 75.81% 8.47%
Automotive and
high-end Main businesscosts 937670453.31 10.78% 611344199.34 7.56% 53.38%equipment
New energy Main businesscosts 1069346225.86 12.30% 1336208450.29 16.52% -19.97%
2. Autonomous
intelligence Main businesscosts 37199267.39 0.43% 9519499.06 0.12% 290.77%products
Cloud storage
and cloud Main businesscosts 37199267.39 0.43% 9519499.06 0.12% 290.77%charging
37Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(6) Whether the consolidation scope has changed during the Reporting Period
? Yes□ No
(1) On July 1 2025 a wholly-owned subsidiary Shenzhen Topband Digital Energy Co. Ltd. established
Guangzhou Topband Digital Energy Co. Ltd. The Company has included it in the consolidation scope since
July 1 2025.
(2) On February 1 2025 a wholly-owned subsidiary YOLANESS AFRICA (PTY) LTD completed liquidation
and deregistration. The Company has no longer included it in the consolidation scope since the date of
deregistration.
(7) Major changes or adjustments of the Company's business products or services during the Reporting Period
□ Applicable□ Not applicable
(8) Main clients and suppliers
Information on main clients of the Company
Total sales of the top five clients (RMB) 4338668597.10
Proportion of total sales of the top five clients in the annual sales 39.15%
Proportion of related party sales in the total sales of the top five
0.00%
clients in the annual sales
Information of the Company's top five clients
No. Client name Sales (RMB) Proportion to the annual sales
1 No. 1 2932315071.15 26.46%
2 No. 2 442974328.62 4.00%
3 No. 3 326690206.18 2.95%
4 No. 4 324323156.25 2.93%
5 No. 5 312365834.90 2.82%
Total -- 4338668597.10 39.15%
Other information on main clients
□ Applicable□ Not applicable
Information on main suppliers of the Company
Total purchase amount of the top five suppliers (RMB) 1658004311.61
Proportion of total purchase amount of the top five suppliers in
21.83%
the annual purchase amount
38Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Proportion of related party purchase amount in the total purchase
0.00%
amount of the top five suppliers in the annual purchase amount
Information on top five suppliers of the Company
Proportion to the annual
No. Supplier name Purchase amount (RMB)
purchase amount
1 No. 1 939263412.07 12.36%
2 No. 2 303203803.46 3.99%
3 No. 3 202764269.88 2.67%
4 No. 4 110982421.45 1.46%
5 No. 5 101790404.75 1.34%
Total -- 1658004311.61 21.83%
Other information on main suppliers
□ Applicable□ Not applicable
During the Reporting Period the proportion of the Company's trade business revenue to the revenue exceeded
10%.
□ Applicable□ Not applicable
3. Expenses
Unit: RMB
YoY increase or
2025 2024 Explanation of major changes
decrease
Mainly due to the increase in personnel salaries and equity
Selling
458236603.48 379247836.25 20.83% incentive expenses corresponding to the development of
expenses
new businesses.Mainly due to the increase in share-based payment
Overheads 443268335.08 401415660.16 10.43%
expenses during the Reporting Period.Finance
-427336.65 -52598946.07 99.19% Mainly due to the decrease in foreign exchange earnings.expenses
R&D Mainly due to the Company's increased investments in
919433295.26809006999.2513.65%
expenses R&D during the Reporting Period.
4. R&D investment
□ Applicable □ Not applicable
Description of main Impact on the
R&D project Project purpose Project progress Goals to be achieved Company's futuredevelopment
39Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project aims to
develop intelligent
predictive maintenance
control technology based
on multi-sensor data It is currently in the This project will
fusion. By monitoring the stage of requirement A basic warning promote the extension of
operation status of motors definition and mechanism for multiple the Company's
and complete machines in preliminary research.The preliminary key fault modes is intelligent controlreal time and establishing
an equipment health research on
established to achieve products from single-
maintenance pain early fault warning. minded hardware controlevaluation model using
Multi-sensor fusion machine learning points of target
First-generation to "control + intelligent
customers has been products will focus on a services". It is anand predictive algorithms this project completed and core single category for important practice of themaintenance focuses on solving the demonstration "four electrics and one
intelligent control problem of downtime application scenariossuch as lubricating oil applications and network + AI"technology platform arising from the untimely monitoring and chain expand gradually to technology system in themaintenance of complete
machine equipment such wear early warning
multiple categories tool industry which will
have been defined. based on market help enhance productas garden tools and feedback to form a added value and
professional electric tools Sensor selectionevaluation and edge reusable predictive customer stickiness andachieving a transition from maintenance technology expand the Company's
"passive maintenance" to computing chipcomputing demand platform. value boundary in the"active prevention" and tool industry.improving the intelligence analysis are underway.level and user experience
of complete machine
products.This project conforms to This project has
the high-power developed innovativemotor products with The high-powerdevelopment trend of external rotor DC This project will
garden electric tool independent brushless motors will be consolidate the
complete machines and intellectual property optimized constantly; Company's technological
develops efficient and rights obtainedinvention patents while maintaining barriers and competitivehighly reliable high- successfully and fully technological leadership advantages in the field
High-power garden performance external rotor in the field of garden of garden tool motors
electric tool DC brushless motors to
entered the mass
production stage. This tools the application of extend to more high-
brushless motor make breakthroughs in the this motor technology power applicationkey technologies of product has highreliability while platform will be scenarios and supportefficiency and reliability
under high-power meeting customers'
expanded to other high- the Company's sustained
requirements for high power electric tools and growth in the toolconditions further power and high related fields to further industry based on theexpanding the application improve product scalability of the motor
depth and breadth of motor efficiency universality and market technology platform.products in the garden tool performance and has
market. been highly recognized
adaptability.by key customers.
40Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Currently the
Company's first-
generation products
have been shipped on a
large scale and core
This project aims to meet technology research The Company will keep
the development demand and customer expanding the market
of intelligent driving verification have been share of LiDAR motors This project will
systems by developing completed for second- promoting platform accelerate the
new-generation of rotating generation projects building for automotive Company's market
mirror LiDAR motors. and are expected to grade motors deployment in the
While ensuring high enter the formal mass enhancing extensive automotive and high-end
precision high reliability production stage in product compatibility equipment industries
LiDAR motor and fast response the 2026 with further with multiple vehicle and keep expanding the
structural design is improvement in NVH models through market share and driving
optimized to reduce the performance. Third- standardized and the overall growth of the
product volume and generation LiDAR modular design and automotive business
manufacturing costs and motors are developed consolidating the based on its expertise
maintain leading concurrently and are Company's and large production
advantages in core expected to enter mass technological capacity in the field of
technical indicators such as production from the advantages in the field LiDAR motors.NVH. second half of 2027 to of key components forearly 2028. The intelligent driving.Company has shipped
over 1 million LiDAR
rotating mirror motors
leading the industry in
terms of market share.R&D deployment for
power products with a
full power range of
This project aims to build 1kW to 40kW has been
an independent and completed. Low power
controllable core products have been When completed the
technology system for the delivered in bulk It will build a digital digital power technology
Company in the field of covering scenarios power control platform platform will enrich the
digital power supply and such as industrial covering the entire capability depth of
create a standardized vehicle chargers and power range achieve power technology in the
digital power supply server power sources; technology reuse and Company's "four
control platform covering the development and the rapid iteration of electrics and one
multiple advanced validation of products products of different network + AI"
Digital power topologies. Based on high- such as DC charging power levels form technology system
technology platform performance digital signal station modules and mature solutions for support the Company's
processors it aims to high-voltage server various application multi-scenario business
develop high-performance power sources have scenarios and establish expansion in industries
high power density and been completed in the an independent and such as new energy and
high reliability power medium- to high-power controllable digital automotive and high-end
supply products providing range and some power algorithm library equipment and promote
underlying technical products have been and platform the upgrading of
support for new energy supplied in bulk. The architecture. products toward digital
industrial control platform has formed a intelligence.datacenters vehicle power reusable digital control
sources and other fields. algorithm library and a
modular development
framework
preliminarily.
41Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
In terms of intelligent
ovens visual
recognition algorithms
have been deployed in
collaborative
prototypes to achieve
This project aims to build a dynamic recognition
universal end-to-end AI and automatic This project is an
underlying engine and a matching with baking important direction for
development tool chain curves; in terms of It creates a universal the Company's
empower terminal devices intelligent temperature end-to-end AI technology base to
such as home appliances control the technology foundation expand from the "four
and industrial control with transplantation ofadaptive control provides standardized
electrics and one
localized intelligent SDKs establishes a network" to the "fouralgorithms on electrics and one
End-side AI decision-makingcapabilities through temperature controller
device side continuous
evolution mechanism network + AI". Byapplication
technology platform lightweight model
chips has been promotes cross-field deeply integrating end-
compression an adaptive completed and theautomatic adjustment scale replication and
to-end AI algorithms
incremental learning empowers partners to into intelligent control
framework and of room temperature upgrade hardware products it builds a
multimodal perception according to user habits "hardware +
capabilities and address has been achieved. In
products intelligently at
low costs and high intelligence" technical
industry pain points such terms of core platform efficiency. barrier and enhances the
as cloud dependence high capabilities a complete Company's core
latency and privacy technology stack has competencies in the field
security. been established of intelligent control.including model
training quantitative
compression and edge
inference and cross-
chip platform
adaptation has been
achieved.The platform's software
and hardware systems
have been built and its
core algorithms have
been integrated and The platform will This project is an
This project builds a debugged. The first continue to improve the important practice of the
universal detection prototypes have been development quality Company's AI
technology platform based released and deployed and efficiency of visual technology in
on AI vision technology on production lines inspection products manufacturing
and deep learning. successfully to with focus on intelligence. It will
Through high-precision undertake tasks such as application scenarios enhance the Company's
object recognition automatic detection of such as PCBA board technological
classification and defect solder joint level welding capabilities in the fields
AI visual inspection detection it solves the abnormalities and inspection three- of AI vision and
technology platform problems of low efficiency component proofing paint spraying industrial intelligent
and low accuracy in abnormalities with inspection wire harness detection significantly
conventional manual recognition accuracy connection quality consolidate the
detection improves the and processing verification and foundation of intelligent
quality control ability and efficiency meeting complete machine manufacturing achieve
detection efficiency of expectations. The appearance inspection technological cost
industrial production and platform is able to boosting the intelligent reduction and efficiency
reduces manufacturing replicate and promote upgrading of improvement and
costs. scenarios such as smart manufacturing support the Company's
home appliance and processes. cross-industry quality
power tool assembly assurance capabilities.lines and new energy
complete machine
testing lines.
42Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project focuses on
safety risks that may arise This project will
from battery aging. This project has been enhance the Company's
Through technologies such developed deployed integration and
as accurate device-side online and applied It builds an AI cloud innovation capabilities
data collection big data practically to the fusion algorithm in the fields of AI
fusion machine learning Company's smart new platform for battery life technology and new
and edge computing it energy business to prediction health energy consolidate themonitoring abnormality Company's leadership in
R&D of AI battery builds an integrated achieve functions suchsolution of edge-cloud as battery life warning and decision- battery managementlife prediction
system integration AI realizes prediction health
making support to systems and promote
more accurate battery life monitoring and achieve safe battery the landing and growth
prediction and health status abnormality warning. It operation management of new energy
judgment identifies will be subject to and enhance the operations such as
potential problems in ongoing algorithm competitiveness of the intelligent BMS home
advance and provides performance tracking Company's smart new energy storage
technical support for the optimization and energy products. industrial and
sustainable development of iteration. commercial energy
the Company's new energy storage and light-duty
business. power.This project aims to
develop a 24-string active
balancing BMS platform It meets the complete
for the Company's machine performance The self-developed BMS
integrated photovoltaic requirements and
storage and charging The BMS sample has achieves BMS
is a core component of
passed internal autonomous control; it the battery technology insystems and industrial and verification and all achieves interactions the Company's "fourcommercial energy storage
complete machines. It performance indicators with independently
electrics and one
network" technology
includes a master BCU and meet the complete developed EMS andmachine requirements. PCS and the system and will provide
Energy storage a slave BMU has theactive balancing function It is currently collaborative
key technical support for
BMS product undergoing third-party interoperability of the the cloud storage series
platform and is compatible with in the Company'smultiple module certification in core components of the
specifications. The core conjunction with the energy storage complete
autonomous intelligence
products build
goal of this project is to complete machine machine; it has passed
achieve complete system and trial certification along with
competitive barriers in
autonomy and production preparations the complete machine
the core field of energy
controllability of BMS in are being made and its active balancing
storage products and
synchronously. function has become a enhance system solutionindustrial and commercial
energy storage complete competitive advantage
capabilities in the new
for product energy industry.machines and ensure the
safe and reliable operation differentiation.of energy storage systems.The development and
application of over 10 This project enriches the
inverter models in three application depth of
This project focuses on the core categories have It builds an inverterproduct line that covers power technology in thedevelopment of three core been completed
products: grid connected covering the power all categories all power
Company's "four
inverters energy storage range from the kW levels and all scenarios
electrics and one
improving efficiency network" technologyinverters and hybrid level to the 100kW system in the new
inverters and builds a level covering home and the intelligence
product matrix covering all industrial and level continuously.energy field. The full-
Core grid Through modular and scenario product matrix
connection and PCS scenarios of "new energy commercial and small platform-based will support the
technology platform grid connection – energy power station scenarios Company's continuousstorage – multi-energy comprehensively. The development the lead expansion in the new
collaboration" providing product integrates a time is shortened energy industry
customers with an multi-mode outcomes are reusedquickly and especially in buildingintegrated solution from communication system-level solution
power generation and module adapts to technological capabilities in the
energy storage to mainstream global innovation and market industrial and
electricity use. regional network response are commercial energy
standards and achieves accelerated. storage and distributed
remote operation and energy fields.data transmission.
43Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project aims to create The research and
an energy management production of the
system controller product MG1000 MG800
matrix for the MG500 and MG300 The all-scenario
"photovoltaic storage micro-grid controller deployment and
diesel charging and load" product matrices and application of the whole The EMS micro-grid
micro-grid paradigm to the development of series in home controller is an
address issues such as HMI and local scenarios industrial and important product in the
protocol incompatibility management software commercial energy Company's new energy
and the lack of intelligent have been completed. storage scenarios field supports the
EMS micro-grid control strategies for The product has been charging stations
Company's extension
controller product various new energy applied to home energy energy storage stations
from new energy
components in multiple storage industrial and photovoltaic power products to new energyplatform scenarios. The MG micro- commercial energy stations etc. will be system solutions and is
grid controller series storage integrated achieved gradually and an important practice of
provides rich external cabinets centralized the platform functions the "four electrics and
interfaces which can meet and string container will be iterated one network + AI"
intelligent control needs energy storage continuously to meet technology system in the
from home to industrial cabinets photovoltaic rapid development field of energy
and commercial scenarios storage diesel needs of the new energy management.and support grid charging load and industry.scheduling demand micro-grid station
response and remote control and other
O&M. products and scenarios.The product has been
This project focuses on the developed and mass-
home medical beauty care produced and sold first
market and creates a home on a domestic e- It establishes an AI-
AI intelligent anti-aging commerce platform driven intelligent
beauty device that with positive market product system for
combines professional feedback continuous beauty care and
performance and increase in sales skincare in the home This project marks the
intelligent interactive volume and initial medical beauty market. Company's entry into the
experience by integrating establishment of brand The continuous learning field of consumer
ultrasound anti-aging awareness. The product and optimization of skin intelligent terminals"Qingcheng" AI technology and AI is centered on "AI + conditions and use based on AI technologyanti-aging beauty intelligent algorithms ultrasound" and two- effects by AI enhance and is an innovativecare device innovatively. Personalized dimensional ultrasound the intelligent product application of the "four
skincare plans and precise dot matrix technology experience form a first electrics and one
energy outputs can be has been developed mover technological network + AI"
achieved by using AI to which supports advantage in the field of technology system in
identify and analyze users' intelligent skin "ultrasound + AI" and personal healthcare.skin types habits and recognition dynamic create multidimensional
beauty care information care plan adjustment competitiveness in
thereby improving user and other functions terms of functionality
care safety effectiveness forming differentiated and experience.and user experience. positioning in terms ofprecision safety and
convenience.
44Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project aims to meet AI mowers have been
the demand for automated fully launched and
home courtyard care in shipped in bulk in the
It iterates core functions
Europe and the U.S. It European and U.S.such as intelligent AI mowers are an
markets. On this basis mowing dynamic important track to beintegrates core obstacle avoidance and explored by the
technologies such as AI the Company has
visual perception high- started product
autonomous path Company and will
upgrading and planning continuously promote theprecision positioning and
intelligent path planning to iteration and products
enabling robots to accumulation of key
achieve intelligent and technological
develop AI mowing robots in multiple categoriessuch as four-wheel- efficient operations in capabilities in the mobileAI mower with autonomous obstacle drive LiDAR and all home courtyard service robot fieldavoidance environment binocular vision have scenarios such as create a reusableadaptive recognition and officially entered the different grass species platform for cross-borderless intelligent online channel and terrains and category applicationsoperation capabilities. It promotion and sales maintaining and expand thehelps users complete stage driving the technological leadership Company's productroutine mowing tasks development of the and user experience value chain in the toolautomatically reducing
courtyard maintenance mowing robot business
advantages in the and home appliance
toward greater borderless intelligent industries.costs and the dependence mowing robot market.on manual labor. intelligence and morecategories.The "Chuji" AI stir-
frying machine has
This project focuses on the achieved mass
core pain points of Chinese production and Technically it improves
restaurants in terms of marketing in the the quantitative
dining efficiency quality domestic Chinese food evaluation system for
consistency and labor market covering major dish perception and AI
costs and aims to create a catering formats such intelligent control
series of AI commercial as regular meals group technology and creates
stir fry machines under its meals and fast food core patents; in terms of Intelligent stir-frying
own brand "Chuji". The and is promoted products it creates a machines are a
core innovation lies in the extensively through series of commercial promising emerging
"Chuji" commercial stir-frying robot system online and offline stir-frying machines to category and an
AI cooking robot based on the sensory and channels. The product achieve the innovative practice of
system quantitative evaluation of has gained recognition standardized replication the "four electrics and
the whole dish making from customers and the of dishes; in terms of one network + AI"
chain integrating AI industry in terms of marketing it establishes technology system in
intelligent control precise dining efficiency a brand image in the new categories.temperature control and product quality and market expands partner
dynamic stir-frying system stability. The stores and promotes the
algorithms to achieve brand has established transformation of the
closed-loop control over market awareness and Chinese food industry
the whole process of taken the lead in toward standardization
preparation cooking and exploring a and intelligence.serving. standardized taste
model for Chinese
meals.
45Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This technology
platform has achieved
modular and integrated
This project focuses on the application in multiple
R&D of a core chassis product lines such as Industry-leading
platform for mobile robots mowers care performance This project provides
covering key technologies machines and floor compatibility and underlying technical
such as map building sweepers and been scalability have been support for the
positioning and navigation mass-produced achieved for the mobile Company's robotics
dynamic obstacle successfully in the robot chassis platform development and
Mobile robot avoidance multi-sensor fields of intelligent with the ability to improves product
chassis technology fusion and AI visual mowers and floor develop and deploy development efficiency
platform perception. It aims to build sweepers. Tens of robots suitable for and market response
a rapidly reusable stable invention patents and multiple indoor and speed significantly
and reliable robot chassis utility model patents outdoor scenarios and being an important
platform to support the have been applied for types quickly fundamental platform
rapid development and technological supporting the for the Company to
industrialization of the achievements have continuous optimization build its robot industry
Company's various mobile become systematic and rapid iteration of chain capabilities.robot products. gradually and the platform.continuous
technological
optimization and
iteration are underway.This project has
completed product
iteration and the
This project focuses on key development of a
execution component multi-specification This project will
requirements in the context hollow cup motor Through modular and strengthen the
of rapid development of platform boasting standardized design it Company's technological
the embodied intelligence stable and reliable creates driver modules barriers and system
industry and develops a module performance. that are compatible with integration advantages in
dexterous hand drive Sampling testing various humanoid the field of high-
module that integrates core sample delivery and robots and intelligent precision miniaturized
components such as small-scale trial applications helping modules for dexterous
Dexterous hand hollow cup motors production have been customers reduce hands. It is a key aspect
drive module gearboxes screws and completed and selection difficulty in the Company's
encoders to form a high- products have been simplify assembly robotics layout in the
precision high output and tested and verified in shorten lead times and automotive and high-end
low-power small modular multiple customers' reduce costs and equipment industries
drive unit. This project embodied intelligent establishing market and forms a complete
builds a standardized and products. The dominance in the field robot execution
platform based product Company has an of dexterous hand component chain with
system based on the annual production drives gradually. hollow cup motors and
Company's expertise in the capacity of over 1 other components.field of hollow cup motors. million hollow cup
motors and is able to
supply products on a
large scale.
46Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project aims to meet
the demand for high-
performance and high- The servo drive
precision drive control in technology platform is The Company keeps This project will enrich
industrial automation under ongoing promoting the product the Company's product
equipment and develop a development and has serialization and matrix in the automotive
servo drive system for the formed a series of modularization of the and high-end equipment
precise control of AC products covering the servo drive platform to industries and form
permanent magnet high medium and low create a servo drive integrated industrial
Servo drive product synchronous motors. The ends. In 2025 low- product family with full control solution
platform platform design covers voltage series servo power range coverage capabilities of "control +multiple power bands products dedicated and high compatibility drive + motor" with
multiple interface multi-axis series and achieve the large- motors bus controllers
protocols and multiple products for dexterous scale deployment of etc. It is an extension of
application scenarios hands and high- products in the the "four electrics and
suitable for fields such as voltage series products medium- to high-end one network" technology
numerically controlled for machine tools and automation segments system in the field of
machine tools electronic general industries were and the robotics field. industrial automation.equipment and launched.nonstandard automation
equipment.First-generation
products have been It builds a high-
This project develops an shipped in bulk. performance controller
EtherCAT bus controller Second-generation product platform based This project will fill up a
that combines high products are at the on EtherCAT bus with key gap in the
performance strong technology pre- key capabilities such as Company's high-
scalability and ease of use. research stage and are module cascading performance industrial
By combining EtherCAT expected to be released remote IO expansion controller product line
bus communication in 2026. The new and servo and stepper form the integrated
technology with industrial platform will adopt drive synchronization industrial controlEtherCAT bus motion control algorithms higher performance control. Through solution of "control +controller product
platform it creates a core control processors to achieve continuous iteration it
drive + motor" in the
platform with high-speed more precise motion improves the "four electrics and one
communication flexible speed planning further communication network" technology
expansion and multi-axis improve the IO bandwidth and multi- system with servo drive
cascade control capabilities response speed and axis synchronization and motor products and
to meet precision control support forward- performance to meet expand the Company's
and multi-axis looking trajectory needs of multiple market layout in the
coordination needs of algorithms suitable for industries such as 3C automotive and high-end
automation equipment. high-speed and high- semiconductors and equipment industries.precision trajectory laser processing.processing scenarios.Currently it in the It develops a dedicated This project will
This project focuses on the stage of technology
high-performance promote the extension of
cooling control the Company's
control hub for core planning and project hardware platform intelligent control
cooling systems of high- initiation. It has
power density datacenters completed in-depth
makes breakthroughs technology toward AI
research on market and key technologies such datacenters and is aand aims to develop highly as magnetic levitation crucial aspect in the
precise reliable and technological trends
Intelligent control intelligent dedicated and made clear that
compressor drive Company's AI
high-precision control high-precision datacenter business forsystem for high- cooling controllers for intelligent control is a sensing and acquisition the automotive and high-density computing liquid cooling systems key weakness that of multiple physical end equipmentinfrastructure liquid independently make quantities and fault industries. The
cooling systems breakthroughs in key hinders the large-scale
technologies in liquid application of liquid
diagnosis and early successful development
cooling. The three-step warning to meet precise of liquid cooledcooling control and build R&D path of "a control requirements of intelligent controllersthe Company's core
competencies in the field dedicated hardware
cold plates and will provide core
submerged liquid technical support for the
of datacenter liquid platform core control cooling for medium Company to enter the
cooling control. algorithms andreliability verification" states and achieve rapidly growing green
has been established. industry safety and computing infrastructurereliability standards. market.
47Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The AI digital energy
This project aims to build a cloud platform is the
new-generation energy core carrier of the
management cloud The AI energy cloud Company's autonomous
platform covering platform has been intelligence product
"photovoltaic storage commercially deployed This year the new- system with the clouddiesel charging and load" in domestic and being the hub. It
micro-grid energy storage international markets generation cloudplatform was launched aggregatesscenarios on the user side. and the integration of
The platform provides various new energy to achieve platform
multidimensional data
such as electricity prices
digital management equipment and integration for all self- weather loads and
AI digital energy products such as web components has been
developed new energy equipment operations
cloud platform interfaces and apps completed providing
products and some and AI outputs optimal
integrates self-developed platform services to mainstream third-party
AI algorithm services and multiple customers products continuously
O&M strategies
dynamically on this
provides customers with and completing data iterate AI algorithm basis. The platform will
electricity generation and aggregation for capabilities and
consumption forecasting multiple virtual power enhance the intelligence
provide infrastructure
level of energy for the Company'sand economic optimization plants and energy digital energy system
models to achieve the operation platforms in scheduling and O&M. and support the
intelligent operation China through autonomous evolution of
maintenance and interconnection. cloud storage and
management of new charging products to
energy products. become more intelligent
as they are used.The liquid-cooled
supercharging system
with a full matrix
power scheduling Supercharging station is
design and a highly the core hardware carrier
This project focuses on key modular configuration of "cloud charging" in
technologies such as heat capability has been put Build a full scenario the Company's
dissipation by liquid into commercial product matrix with autonomous intelligence
cooling high power operation in multiple liquid cooled products providing
output intelligent pilot stations. This supercharging as the excellent charging
scheduling V2G project has been core fully implement execution power based
interactions and integrated integrated deeply with V2G vehicle network on hardware and
photovoltaic storage and the "Topband Cloud interaction technology collaborating with AI
charging around the Charging" platform to create an integrated digital energy cloud
Supercharging pile development trend of high- achieve intelligent smart energy station platform to achieve
product platform power fast charging for control and remote solution of intelligent scheduling
electric vehicles. It keeps O&M. The deployment "photovoltaic storage and independent
deepening the R&D and of the V2G vehicle- and charging discharge optimization. This
application of high- grid interaction intelligence" upgrade project will enhance the
performance liquid-cooled demonstration system the station level AI Company's system
supercharging systems has been completed intelligent scheduling solution capabilities in
and builds comprehensive synergic photovoltaic system and build an the new energy industry
"equipment + platform + storage and charging integrated operation and promote the
energy + service" operation has been system of equipment transition of autonomous
solutions. piloted at some sites and platform. intelligence products
and AI intelligent from concept
scheduling algorithms verification to large-
are introduced to scale operation.optimize site operation
strategies.
48Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
This project has
achieved the full-stack The all-in-one industrial
This project focuses on independent and commercial energy
full-scenario application development and storage machine is one
needs of industrial and production of core It completes the full of the core hardware
commercial energy components such as coverage of the carriers of "cloud
storage and aims to build a BMS PCS and EMS industrial and storage" in the
comprehensive industrial and completed the full- commercial energy Company's autonomous
and commercial energy chain closed storage product matrix intelligence products. It
storage product matrix technology loop from deepens the integration is based on self-
covering all power ranges core components to of AI technology and developed BMS PCS
All-in-one industrial and application scenarios system integration. and EMS hardware and
and commercial and achieve upgrading and Products have covered
energy storage systems
iterates AI intelligent works together with the
energy storage iteration from individual various industrial and AI digital energy cloud
product platform products to full-scenario commercial scenarios
energy scheduling
such as small algorithms improves
platform to achieve
systematic solutions commercial stores the technical advantages
intelligent scheduling.around energy industrial parks and of core self-developed
This project will expand
consumption needs such as the Company's market
peak-valley arbitrage charging stations with
components
flexible capacity continuously and
coverage in the new
demand management energy industry
dynamic expansion configuration and batch
further consolidates the
delivery capabilities. technical barriers of the
comprehensively and
photovoltaic energy The core indicators entire chain.serve as important
storage collaboration and support for the large-
grid interactions. such as system scale operation of theoperation efficiency Company's autonomous
and reliability are intelligence products.excellent.The all-in-one home The all-in-one home
energy storage machine energy storage machineis the core product of
This project focuses on key has achieved mass "cloud storage" in the
technologies such as high- production. The Company's autonomous
voltage integrated product adopts an It improves the multi- intelligence products for
architecture multi-level integrated high-voltage capacity and multi-battery and inverter power level home home scenarios. It issafety protection for design and features energy storage product based on self-developedhousehold use and
photovoltaic energy high energy density matrix deepens high-
hardware and achieves
intelligent energy
storage and charging high conversion voltage integration and
coordination around efficiency silent safety protection
management through the
All-in-one home distributed energy needs operation and multi- technology upgrades
cloud platform. With the
energy storage level intelligent safety AI intelligent energy expansion of its
machine product such as self-use by home protection. It can adapt consumption deployment scale it
platform users peak-valley realizes data feedbackelectricity price arbitrage to different home algorithms promoteslayouts and regional the integration of "home and AI iteration. Thisand emergency backup project will improve the
power supply and power structures energy storage +
develops highly efficient flexibly. The product photovoltaic + charging
Company's full-scenario
secure and intelligent has been fully pile" scenarios and
layout of distributed
energy in the new
home energy storage integrated into the builds a "product +
systems to create a product Company's AI energy platform + service"
energy industry and
efficiency cloud operation model. support thematrix for global home accumulation of data and
energy storage scenarios. platform enablingremote monitoring and operational experience
intelligent energy for autonomous
management. intelligence productsfrom home scenarios.R&D personnel of the Company
2025 2024 Variable proportion
Number of R&D personnel
21382178-1.84%
(person)
Proportion of R&D personnel 16.19% 18.75% -2.56%
49Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Educational background of R&D personnel
Bachelor 1392 1448 -3.87%
Master 233 214 8.88%
Doctor and above 3 4 -25.00%
Junior college degree and
510512-0.39%
below
Age composition of R&D personnel
Below 30 754 865 -12.83%
30-40105410341.93%
Above 40 330 279 18.28%
R&D investment of the Company
2025 2024 Variable proportion
R&D investment (RMB) 1047192998.23 952105344.29 9.99%
Proportion of R&D investment in
9.45%9.07%0.38%
operating income
Capitalized amount of R&D
127759702.97143098345.04-10.72%
investment (RMB)
Proportion of capitalized amount in
12.20%15.03%-2.83%
R&D investment
Reasons for and impacts of major changes in the composition of the Company's R&D personnel
□ Applicable□ Not applicable
Reasons for the significant change in the proportion of total R&D investment to the operating income compared
with that of the previous year
□ Applicable□ Not applicable
Reasons for significant changes in the capitalization rate of R&D investment and explanation
□ Applicable□ Not applicable
5. Cash flow
Unit: RMB
Items 2025 2024 YoY increase or decrease
Subtotal of cash inflow from
11261738146.6510663397902.695.61%
operating activities
Subtotal of cash outflows from
10583371206.369571447184.4410.57%
operating activities
Net cash flow from operating
678366940.291091950718.25-37.88%
activities
Subtotal of cash inflows from
576193651.51789697703.80-27.04%
investment activities
50Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Subtotal of cash outflows from
1204630613.941671453937.24-27.93%
investment activities
Net cash flow from investment
-628436962.43-881756233.4428.73%
activities
Subtotal of cash inflows from
2557526376.511130521336.29126.23%
financing activities
Subtotal of cash outflows from
2579811286.641310642190.6096.84%
financing activities
Net cash flow from financing
-22284910.13-180120854.3187.63%
activities
Net increase in cash and cash
23523727.62101608828.97-76.85%
equivalents
Explanation of main influencing factors of the significant year-on-year changes in relevant data
□ Applicable □ Not applicable
1. Net cash flow from operating activities: It is mainly due to the increase in employee salaries and
payments for goods during the Reporting Period.
2. Net cash flow from financing activities: It is mainly due to the sums for purchasing minority
shareholders' equity paid in the same period of last year.Explanation of reasons for the significant difference between the net cash flow from operating activities during
the Reporting Period and the net profit for the year
□ Applicable□ Not applicable
V. Analysis of non-main business
□ Applicable □ Not applicable
Unit: RMB
Proportion in total
Amount Explanation of reasons It is sustainable
profit
Mainly due to wealth management
Investment income 14495148.99 3.60% No
income.Profit and loss from
Mainly due to changes in the fair value of
changes in fair 4205906.12 1.05% No
equity investments.value
Impairment of Mainly due to the provision for inventory
-124778802.02 -31.03% No
assets impairment and goodwill impairment.Mainly due to the compensation from
Non-operating
9470022.46 2.36% customer's breach of contract and various No
income
fines.
51Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Non-operating Mainly due to the loss of scrapping of
10763138.27 2.68% No
expenditure non-current assets.VI. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: RMB
End of 2025 Beginning of 2025 Increase
or
Explanation of major
Proportion in Proportion in decrease
Amount Amount changes
total assets total assets in
proportion
Monetary No significant
1797447784.4413.25%1713976263.3413.34%-0.09%
capital change
Accounts No significant
3024669376.0122.29%2992784497.7323.29%-1.00%
receivable change
Contractual No significant
601601.950.000.00%
assets change
No significant
Inventory 2195746866.60 16.18% 1810510580.57 14.09% 2.09%
change
Investment No significant
97727652.860.72%100566027.850.78%-0.06%
property change
Long-term
No significant
equity 40463113.36 0.30% 38959272.14 0.30% 0.00%
change
investment
No significant
Fixed assets 2888394751.10 21.29% 2737959115.57 21.31% -0.02%
change
Construction in No significant
803965663.225.93%768223670.575.98%-0.05%
progress change
Right-of-use No significant
50405996.420.37%67227073.110.52%-0.15%
assets change
Short-term No significant
1392469964.7610.26%1224214110.419.53%0.73%
loans change
Contractual No significant
116456170.610.86%131435683.971.02%-0.16%
liabilities change
Mainly due to the
increase in long-term
loans for the
Long-term
404450000.00 2.98% 245740474.88 1.91% 1.07% construction of
loans
Huizhou Industrial
Park during the
Reporting Period.Mainly due to the
decrease in leased
Lease liabilities 22919126.35 0.17% 42076530.36 0.33% -0.16%
workshops during the
Reporting Period.High proportion of overseas assets
□ Applicable □ Not applicable
52Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Proportio
Control n of Is there a
measures foreign significant
Asset Reasons of Locatio Operation Earning
Asset size to ensure assets to risk of
details formation n mode position
the safety net assets impairmen
of assets of the t
Company
Financial
Investment R&D
Operation supervisio
and Pune productio
Center in 517929013.55 n and 40024597.22 7.42% No
establishmen India n and
India external
t sales
audit
Financial
Dong Nai Investment R&D
Dong supervisio
Operation and 1191491007.5 productio 121112663.9
Nai n and 17.06% No
Center establishmen 1 n and 4
Vietnam external
Vietnam t sales
audit
Financial
Investment R&D
Mexico supervisio
and productio
Operations 636915596.28 Mexico n and 74954747.63 9.12% No
establishmen n and
Center external
t sales
audit
Explanatio
n of other None.situations
2. Assets and liabilities measured at fair value
□ Applicable □ Not applicable
Unit: RMB
Impair
Profits and
ment
losses from Changes in
provisi Amount of Amount of sale
Opening changes in cumulative fair Other Closing
Items on in purchase in the in the current
balance fair value in value included changes balance
the current period period
the current in equity
current
period
period
Financial assets
1. Tradable financial
assets (excluding
739448691.774211067.12240583962.833239233088.183444790365.64538102481.43
derivative financial
assets)
2. Financing of
131217672.567243965.97138461638.53
accounts receivable
3. Other debt
40000000.00843277.7840843277.78
investments
4. Other equity
instrument 45012776.00 6609706.00 10429532.00 51622482.00
investments
Total of the above 915679140.33 10820773.12 251013494.83 3279233088.18 3444790365.64 8087243.75 769029879.74
Financial liabilities 444281.13 5161.00 -444281.13 5161.00
53Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Contents of other changes
None.Are there significant changes in the measurement attributes of the Company's main assets during the Reporting
Period
□ Yes□ No
3. Restricted asset rights by the end of the Reporting Period
For details refer to 31 VII Section VIII Financial Report.VII. Investment analysis
1. General situation
□ Applicable □ Not applicable
Investment in the Reporting Period Investment amount in the same period of
Range of change
(RMB) last year (RMB)
0.00200000.00-100%
2. Major equity investment obtained during the Reporting Period
□ Applicable□ Not applicable
3. Major non-equity investment obtained during the Reporting Period
□ Applicable□ Not applicable
4. Investment in financial assets
(1) Securities investment
□ Applicable□ Not applicable
There was no securities investment during the Reporting Period.
(2) Derivatives investment
□ Applicable □ Not applicable
54Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
1) Derivatives investment for the purpose of hedging during the Reporting Period
□ Applicable □ Not applicable
Unit: RMB ten thousand
Proportion
of
investment
amount at
Profits and
the end of
losses from Changes in Amount of Amount of
the period
Types of Initial changes in cumulative purchase sale during
Beginning Ending in net
derivatives investment fair value fair value during the the
amount amount assets of
investment amount in the included in Reporting Reporting
the
current equity Period Period
Company
period
at the end
of the
Reporting
Period
Trading of
foreign
130013.468626.080.730.73121387.38123687.546325.920.91%
exchange
derivatives
Total 130013.46 8626.08 0.73 0.73 121387.38 123687.54 6325.92 0.91%
Explanation
of accounting
policies and
specific
accounting
principles for
hedging
The Company has made corresponding accounting and presentation for foreign-exchange derivative transaction to
business
be done according to Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
during the
Financial Instruments Accounting Standards for Business Enterprises No. 24 - Hedge Accounting Accounting
Reporting
Standards for Business Enterprises No. 37 - Presentation of Financial Instruments issued by Ministry of Finance
Period as
and other regulations and guides. Foreign exchange derivative contracts were initially and subsequently measured
well as
using tradable financial assets which fair value is priced by financial institutions based on open market trading
whether there
data and there has been no significant change compared to the last Reporting Period.have been
significant
changes
compared to
the last
Reporting
Period
Explanation
of actual
profits and The amount included in current profits and losses from foreign-exchange derivative transactions conducted during
losses in the the Reporting Period was approximately RMB 4.1741 million.Reporting
Period
Explanation The Company conducted forward exchange transaction effectively reducing the risk of exchange fluctuations
of hedging through reasonable RMB forward exchange transaction focusing on future transaction costs and incomes and
effect achieving asset hedging with the aim of avoiding risks.
55Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Capital
sources of
Self-own capitals
derivatives
investment
I. Risk analysis of forward exchange transaction
The forward exchange transaction business carried out by the Company and its subsidiaries followed the principle
of locking in exchange rate risk and not engaging in speculative or arbitrage trading operations. However there
were still certain risks in forward exchange transaction operations:
1. Exchange rate fluctuation risk: In the event of significant fluctuations in exchange rates if the forward settlement
exchange rate stipulated in the confirmation letter for forward exchange transactions was lower than the real-time
exchange rate on the settlement day it will cause exchange losses.
2. Internal control risk: Because forward exchange transactions are highly specialized risks may arise due to
inadequate internal control systems.
3. Customer default risk: If the customer's accounts receivable are overdue and the payment cannot be collected
within the predicted payment period it will cause a delay in forward exchange settlement and result in losses for
the Company.Risk analysis
4. Risk of payment collection prediction: In general the Sales Department of the Company predicts payment
and control
collection based on customer orders and expected orders. Nonetheless during the actual execution process
measures of
customers may adjust their own orders and the Company may make an inaccurate payment prediction leading to
derivatives
the risk of delayed delivery of forward exchange settlement.positions in
5. Legal risk: Changes in relevant laws or violations of relevant legal systems by counterparties may result in
the Reporting
contracts being unable to be executed normally and cause losses to the Company.Period
II. Risk control measures
(including but
1. The Company has formulated the Internal Control System for Forward Exchange Transactions which provides
not limited to
clear regulations on the Company's foreign exchange transaction operating principles approval authority internal
market risk
operating procedures responsible departments and individuals information isolation measures and risk
liquidity risk
management for forward exchange transaction and can meet the needs of practical operations and its internal
credit risk
control and risk management measures formulated are practical and effective.operational
2. The finance center and audit department of the Company as relevant responsible departments have clear
risk legal
management positioning and responsibilities and responsibilities are assigned to their positions. Through this
risk etc.)
hierarchical management the risks of single person or individual department operations are fundamentally
eliminated and the speed of risk response is also improved while effectively controlling risks.
3. To prevent delayed delivery of forward exchange transactions the Company attaches great importance to the
management of accounts receivable and actively collects accounts receivable to avoid the phenomenon of overdue
accounts receivable.
4 The Company engages in financial derivative transaction business with large commercial banks with legal
qualifications closely monitors relevant laws and regulations in the field avoiding potential legal risks.
5. The Company's forward exchange transactions must be based on a cautious prediction for foreign currency
receipts (payments) of the Company and the foreign currency amount of the forward foreign exchange transaction
contract must not exceed 90% of the annual planned total amount of foreign currency receipts (payments). The
delivery period of forward exchange transactions needs to match the Company's predicted foreign currency
collection time.
56Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Changes in
market price
or fair value
of products of
the invested
derivatives
during the
Reporting
Period and
the disclosure
Determine changes in fair value based on market quotes from external financial institutions.of specific
methods used
and relevant
assumptions
and
parameters set
in the analysis
of the fair
value of
derivatives
Litigation (if
Not applicable
applicable)
Disclosure
date of Board
of Directors
announcement
January 4 2025
for approval
of derivatives
investment (if
any)
2) Derivatives investment for the purpose of speculation during the Reporting Period.
□ Applicable□ Not applicable
The Company did not have any derivatives investment for the purpose of speculation during the Reporting
Period.VIII. Sale of major assets and equity
1. Sale of major assets
□ Applicable□ Not applicable
The Company did not sell any major assets during the Reporting Period.
2. Sale of major equity
□ Applicable□ Not applicable
57Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
IX. Analysis of major holding and equity participating companies
□ Applicable □ Not applicable
Situation of major subsidiaries and equity participating companies with an impact of 10% or more on net profit
of the Company
Unit: RMB
Company Registere Operating
Company name Main business Total assets Net assets Revenue Net profit
type d capital profit
R&D
Huizhou
production
Topband
Subsidiar sales import RMB 300
Electrical 5081167948.31 2381006773.25 5723488194.50 150731645.71 150958636.86
y and export of million
Technology
electronic
Co. Ltd.components
TOPBAND R&D
SMART production
DONG NAI Subsidiar sales import USD 33.5
1191491007.51693339521.891489938004.52160041089.32121112663.94
(VIETNAM) y and export of million
COMPANY electronic
LIMITED components
R&D
TOPBAND production 2.265
INDIA Subsidiar sales import billion
517929013.55356460954.40543410796.6154069000.1040024597.22
PRIVATE y and export of Indian
LIMITED electronic rupees
components
R&D
TOPBAND production
MEXICO Subsidiar sales import USD 35
636915596.28241175939.53605962723.7171638523.7674954747.63
S.DE y and export of million
R.L.DEC.V. electronic
components
Situation of acquisition and disposal of subsidiaries during the Reporting Period
□ Applicable □ Not applicable
Method of acquisition and disposal of Impact on overall production and
Company name
subsidiaries during the Reporting Period operations and results
No significant impact on the results of the
YOLANESS AFRICA (PTY) LTD Deregistration
Report
Guangzhou Topband Digital Energy Co. No significant impact on the results of the
Newly established
Ltd. Report
Explanation of major shareholding companies
None.
58Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
X. Situation of structured entity controlled by the Company
□ Applicable□ Not applicable
XI. Prospects for the future development of the Company
For the past three decades we have always been doing one thing: creating value for customers and
benefiting everyone with intelligent control technology. In the next stage the essence of this thing will remain
unchanged but the connotation of intelligence will keep evolving. In the future the Company will move
steadfastly in three directions:
1. Deepening its leadership in intelligent control and achieving sustained scale growth
The Company will continue to focus on the three major industries of tools and home appliances
automotive and high-end equipment and new energy and consolidate its leadership in the global intelligent
control industry based on the technological advantages of the "four electrics and one network + AI". In the tool
and home appliance industry the Company will deepen cooperation with top customers and stabilize its
fundamentals; in the automotive and high-end equipment industries the Company will accelerate expansion
and seize emerging incremental opportunities such as robotics intelligent driving and AI datacenters; in the
new energy industry the Company will step up its business development efforts to unleash the growth potential
of energy storage and two-wheeled electric vehicles. In terms of global delivery the Company will continue to
improve the production capacity building and localized operation of overseas bases practice the "Local for
Local" concept and enhance supply chain resilience.
2. Keeping expanding the value boundary from the "four electrics and one network" to the "four
electrics and one network + AI"
The Company will continue to maintain high R&D investment consolidate the technological foundation of
the "four electrics and one network" and deeply integrate AI capabilities into all aspects of products
manufacturing and operations so that products can move from being "usable" to "thinking". The Company will
embrace the AI era together with customers. In the field of autonomous intelligence products the Company will
keep deepening the technological iteration and scenario expansion of cloud storage and charging products. In
the next 3-5 years the target access scale of cloud storage is expected to reach the GW level and cloud
charging will cover a wider range of charging networks promoting the transformation of autonomous
59Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
intelligence products from concept verification to large-scale operation and realizing capability extension from
an intelligent control leader to an autonomous intelligence system solution provider gradually.
3. Adhering to long-termism and forging an agile organization
The Company will keep deepening its four strategic principles of "customer intimacy being innovation-
driven agile operations and organizational evolution" and improve R&D efficiency manufacturing quality
and operational efficiency systematically with the process-oriented organization being the backbone and AI
tools being the lever. The construction of the Huizhou Phase II intelligent manufacturing benchmark plant will
further consolidate the Company's production capacity foundation and intelligent manufacturing capabilities.The Company believes that the technological foundation customer trust and organizational culture gained over
the past three decades are the most solid starting point for moving toward the next era.XII. Reception investigation communication interview and other activities during the
Reporting Period
□ Applicable □ Not applicable
Main
contents of
Location Type of
Time of Method of interview Basic information index
of reception Reception object
reception reception and for investigation
reception object
materials
provided
Zheshang Securities
Ping An Fund
Management CCB
Wealth Management
GF Asset Management
Hang Seng Qianhai
Learn
Fund Management
about the
AXA-SPDB Oriental
Conference operation
Alpha Fund
room of of the
2025/03/11 Field survey Organizations Management http://www.cninfo.com.cn
the Company;
KindleFund
Company no
Management Panjing
information
Investment Timesbole
provided.Mude Asset Qianhai
Yunxi Fund
Management Foxon
Investment Zhongshan
Securities Asset
Management
60Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
TF Securities Qingyun
Heyi Golden Trust
Sinopac Springs
Capital Zhengyuan
Investment Wentian
Private Equity
Shanghai Leadwolf
Xunyuan Asset
Management AXA
SPDB China Asset
Management China
Universal Asset
Management Origin
Asset Management Ren
Bridge Asset
Management Zhaowan
Asset Management
Guotai Junan Asset
Management Chengluo
Investment China
Merchants Securities
Asset Management
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Securities BOC
International Securities
Daoren Asset Learn
Management Chaos about the
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room of Telephone Fund Management of the
2025/03/27 Organizations
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Company;
Company Hua An Fund no
Management Baoying information
Fund Management provided.Pictet Asset
Management Pacific
Securities Asset
Management Ping An
Asset Management Fun
Investment Chasing
Securities Changjiang
Securities Hua An
Financial Insurance
BOC Investment
Management Xuan
Yuan Investment
Lcrich Capital
Management Western
Leadbank FMC Silver
Leaf Investment
Maxwealth Fund
Management
Greenwoods Asset
Management Orient
Securities Huaxi
Securities China
International Capital
Hengjian International
Seri-Cap Private Equity
Zhongji Investment
H61ainan Xinggao
Qingdao Xingyuan
Investment Xinhai
Asset Management
Ping An Fund
Management Fuanda
Fund Management
Fengpei Capital Bosera
Fund Management
Pengyang Asset
Management Lord
Abbett China Asset
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SSGA Private Equity
Orient Securities Asset
Management Jingheng
Investment Huatai
Securities China
Securities Harvest
Fund Shenwan
Hongyuan Securities
Granford Capital
Managent Qianhai
Wufeng Jianshun
Investment Ruifeng
Fund Management
China Life Asset
Management Yunwai
Investment Ever
Fortune New China
Fund Southern Asset
ManagementFull Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.Zheshang Securities
CITIC Securities
CITIC Prudential Fund
Zhongrong Dingxin
PICC Asset
Management Zheshang
Securities Asset
Management
Changjiang Securities
E Fund CIB Wealth
Management CIB Fund
Management Cinda
Fund Management
Taiping Asset
Management Taiping
Pension Fortune
Investment Cloud Gate
Assets Management Learn
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Company Dongliang Lord Abbett no
China Asset information
Management China provided.Universal Asset
Management Huatai-
Pinebridge Fund
Management CR
Yuanta Hwabao WP
Fund Citibank Union
Asset Management
Guosen Securities G
Fund Caitong
Securities Assets
Management Bosera
Fund Management
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Yutian Asset
Management BSCOM
Cathay Asset
Management
Learn
about the
Online Online operation
interaction communication Performance of the
2025/04/10 Organizations http://www.cninfo.com.cn
on www.ir- on network presentation session Company;
online.cn platforms no
information
provided.
62Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Eastmoney Securities
Guosen Securities
Golden Trust Sinopac
Hualong Securities
China Resources Bank
Evergain International
Investment Century
Securities GF
Securities Yingda
Learn
Insurance Asset
about the
Management Hwabao
Conference operation
WP Fund Harvest
2025/4/24 room of of the
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2025/4/25 the Company;
Management Minsen
Company no
Investment Hzbank
information
Wealth Management
provided.China Securities Sino
Life Insurance CPIC
Fund CCB Wealth
Management Southern
Asset Management E
Fund Bosera Fund
Management TF
Securities CICC Asset
Management
Sinolink Securities
Learn
Sinolink Fund Qianhai
about the
HSBC Securities CI
Conference operation
Investment Taikang
2025/5/20 room of of the
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Qianhai Fund Mingji
Company no
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information
Investment Corporation
provided.HSBC
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Citibank Point72
CICC TF Securities
China Merchants
Securities CITIC
Securities Yourong
Consulting China
Securities Zheshang
Securities Yingda
Trust Guotai Junan
Asset Management
Origin Asset
Management Guolian
Fund Management
PICC Hengjian
Holding Pleiad
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the communication Company;
Management Southern
Company no
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information
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provided.Management Symbol
Investment CIB Fund
Management Golden
Trust Sinopac Ruigu
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Samsung Jumi Capital
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Yinhua Fund
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2025/09/17 Field survey http://www.cninfo.com.cn
the individuals Junyuantai Investment Company;
Company Guangxi Zhongchuang no
Venture Capital Yu information
Xiuzhen Huang Ying provided.Cui Chuanjie Gan
Xingzhi
64Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
China International
Capital Huatai
Securities Industrial
Securities Xunyuan
Asset Management
CITIC Securities
Yuancheng Fund
Management Capital
Securities Origin Asset
Management BOSC
Asset Hua An Fund Learn
Management BOC about the
Conference International Securities operation
room of Telephone Zhiyuan Capital New of the
2025/10/27 Organizations http://www.cninfo.com.cn
the communication China Fund TruValue Company;
Company Asset Management no
Ping An Fund information
Management Taiping provided.Asset Management
Everbright Securities
TF Securities
Changjiang Securities
China Universal Asset
Management Willing
Capital Management
Limited Loyal Valley
Capital Happiness Life
Hongdao Investment
Nomura FMRLLC Learn
River Delta Wealth about the
Conference Management Aegon- operation
room of industrial Fund of the
2025/11/11 Field survey Organizations http://www.cninfo.com.cn
the Management Dragon Company;
Company Stone Hong Leong no
Group Sparx Asset information
Management provided.XIII. Development and implementation of market value management system and valuation
enhancement plan
Did the Company establish a market value management system
□ Yes □ No
Did the Company disclose the valuation enhancement plan
□ Yes□ No
In order to strengthen the Company's market value management improve investment value and increase
investor returns the Company has formulated the Market Value Management System which was approved at
the 22nd meeting of the 8th Board of Directors on October 27 2025. The Company shall firmly establish a
65Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
sense of returning to shareholders focus on its main business improve operational efficiency and profitability
and cause the Company's investment value to reflect the Company's quality reasonably by leveraging corporate
governance M&As equity incentives employee stock ownership plans cash dividends investor relations
management information disclosure and share repurchases comprehensively. Refer to the Market Value
Management Policy disclosed by the Company on http://www.cninfo.com.cn on October 28 2025 for details.XIV. Implementation of the "Double Improvement of Return on Quality" Action Plan
Did the Company disclose the announcement on the "Double Improvement of Return on Quality" Action Plan
□ Yes □ No
The Company implements the call of the meeting of the Political Bureau of the CPC Central Committee to
"activate the capital market and boost investor confidence" and the call of the executive meeting of the State
Council to "vigorously improve the quality and investment value of listed companies" actively. In order to
further improve the quality and investment value of listed companies enhance investor confidence and protect
the interests of all shareholders the Company has formulated the "Double Improvement of Return on Quality"
Action Plan based on its own development strategy business status and financial status. Refer to the
Announcement on the "Double Improvement of Return on Quality" Action Plan (announcement No.: 2025010)
disclosed by the Company on http://www.cninfo.com.cn on January 23 2025 for details. Refer to the
Announcement on the Progress of the "Double Improvement of Return on Quality" Action Plan (Announcement
No.: 2026-020) disclosed by the Company in the Securities Times and http://www.cninfo.com.cn on April 2
2026 for the "Double Improvement of Return on Quality" Action Plan during the Reporting Period.
66Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section IV Corporate Governance Environment and Society
I. Basic status of corporate governance
Since its listing the Company has always adhered to standardized governance strictly followed the
requirements of relevant laws and regulations formulated a series of internal corporate governance systems and
established a governance structure of the General Meeting of Shareholders the Board of Directors and its
special committees and management level in accordance with the law to respectively exercise decision-making
power executive power supervisory power and operating responsibilities ensuring the Company's efficient
operation with a multi-level governance system with clear powers and responsibilities.Through the implementation of the Articles of Association and various internal systems the Company has
defined the responsibilities powers procedures and obligations of organizations at all levels in terms of
decision-making execution and supervision.Shareholders and the General Meeting of Shareholders: The Company strictly follows the provisions
and requirements of laws and regulations such as the Company Law the Securities Law and the Rules of
Procedure for the General Meeting of Shareholders of Listed Companies and continually improves the
standardized operation of the Company's General Meeting of Shareholders. During the Reporting Period the
Company held a total of 4 general meetings of shareholders (including the 2024 Annual General Meeting of
Shareholders) deliberated 15 proposals and organized votes on all of them through a combination of on-site
and online voting methods; during the deliberation of each proposal the Company separately counted votes on
matters affecting the interests of minority shareholders and specially provided dialog sessions between
participating shareholders and the Company's directors and senior executives to fully ensure that all
shareholders especially minority shareholders enjoy equal status and fully exercise their rights.Relationship between the controlling shareholder and the listed company: The controlling shareholder
regulates his behavior in strict accordance with the Securities Law the Code of Governance for Listed
Companies and other laws and regulations as well as the Articles of Association and can exercise his rights and
assume corresponding obligations in accordance with the law. The controlling shareholder of the Company is an
individual who does not have other investment projects and has not directly or indirectly intervened in the
Company's decision-making and operating activities beyond the Company's General Meeting of Shareholders.The Board of Directors and corresponding departments of the Company can operate normally and have
67Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
independence.Directors and the Board of Directors: All directors of the Company can carry out their work in
accordance with laws and regulations such as the Company Law and the Rules of Procedure for the Board of
Directors attend relevant meetings seriously actively participate in training and familiarize themselves with
relevant laws and regulations. The Company's Board of Directors has set up a Strategy and ESG Committee an
Audit Committee a Salary and Assessment Committee and a Nomination Committee and each committee
performs its duties in strict accordance with the relevant laws and regulations and rules of procedure providing
complementary information for the scientific decision-making of the Board of Directors; in addition the
Company has established a special meeting of independent directors as a special deliberation platform for the
independent directors to guarantee their independence and supervision effectiveness. During the Reporting
Period the Company's Board of Directors consists of 3 independent directors and 4 non-independent directors
including 2 directors on behalf of workers and staff. The composition of the Board of Directors complies with
the requirements of laws and regulations and the Company's Articles of Association.Performance evaluation and incentive and restraint mechanism: The Company has established fair and
transparent performance evaluation criteria and procedures and senior executives are appointed in strict
conformity with the relevant regulatory rules the Articles of Association and other systems. In order to
establish a sound long-term incentive mechanism the Company has launched multiple equity incentive plans
and employee stock ownership plans since its listing covering the Company's directors senior executives
middle management personnel and backbone personnel fully mobilizing the enthusiasm and creativity of the
management and core employees and promoting the stable healthy and long-term development of the
Company. In addition the Company combines incentives with constraints closely. The remuneration of senior
executives and the exercise/constraint lifting of equity incentives are strictly linked to the overall business
performance of the Company and individual annual KPI assessment results. The Salary and Assessment
Committee of the Board of Directors evaluates the performance of duties by senior executives ensuring that the
remuneration level matches the Company's financial status and risk control requirements and achieving the
effective unification of duties rights and benefits.Relevant stakeholders: The Company can fully respect and safeguard the legitimate rights and interests of
relevant stakeholders and actively cooperate with stakeholders to jointly promote the sustainable and healthy
development of the Company.
68Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Information disclosure and transparency: The Company conscientiously performs the obligation of
information disclosure in accordance with the relevant provisions of laws and regulations such as the Guidelines
for Articles of Association of Listed Companies the Stock Listing Rules of Shenzhen Stock Exchange and the
Management Measures for Information Disclosure of Listed Companies. The Company has designated
Securities Times and http://www.cninfo.com.cn as the newspaper and website for its information disclosure to
ensure timely and accurate disclosure of company information.Is there any significant difference between the actual situation of corporate governance and laws administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC
□ Yes□ No
There is no significant difference between the actual situation of corporate governance and laws administrative
regulations and the regulations on corporate governance of listed companies issued by the CSRC.II. The independence of the Company relative to its controlling shareholder and actual
controller in ensuring the Company's assets personnel finance organizations business and
other aspects
The controlling shareholder of the Company is a natural person and has no other investments. The
Company is completely separated from its controlling shareholder in terms of business personnel assets
finance etc. The Company's production and operation are stable and can operate independently and in a
standardized manner.
1. Business independence: The Company's business is independent of its controlling shareholder and the
Company has a complete and independent production supply and sales system without relying on shareholders
or any other related party.
2. Personnel independence: The Company has an independent workforce and has established a sound
personnel management system. The Chairman President Vice President Secretary of the Board of Directors
Chief Financial Director and other senior executives of the Company work full-time in the Company and
receive remuneration. They have not held any positions other than directors or supervisors in shareholder
entities holding more than 5% of the Company's equity and their subsidiaries nor have they held any positions
in other companies with the same or similar business as the Company. Independent personnel management.
69Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Independent personnel management.
3. Asset independence: The Company has independent production and business premises production
systems supporting facilities land usage rights and property ownership and does not share them with the
controlling shareholder.
4. Organizational independence: The Company has established a sound organizational system that can
operate independently. There is no subordinate relationship with the controlling shareholder.
5. Financial independence: The Company has set up an independent financial accounting department an
independent accounting system and a financial management system and independently carries out financial
operations according to the requirements of the relevant accounting system. The Company has separate bank
accounts and conducts independent tax declaration and performs payment obligations according to law.III. Competition in the same industry
□ Applicable□ Not applicable
IV. Directors and senior executives
1. Basic situation
Numbe
Reas
r of
Numbe ons
additio Other
Number of r of for
nal changes Number of
shares held shares share
Ge Starting Ending date shares in shares held
A Positio at the reduced chang
Name nd Position date of term of term of held in increase at the end of
ge n status beginning of in the es in
er of office office the or the period
the period current incre
current decrease (shares)
(shares) period ase or
period (shares)
(shares) decre
(shares
ase
)
Wu
M Chairman Incumb
Yongqi 61 2011/08/29 2026/09/25 212008715 0 0 0 212008715
ale President ent
ang
Director
Zheng M Incumb
60 Vice 2011/08/29 2026/09/25 5963870 0 0 0 5963870
Sibin ale ent
President
Director
M Incumb
Ma Wei 52 Vice 2011/08/29 2026/09/25 8519734 0 0 0 8519734
ale ent
President
Peng
M Incumb
Ganqua 54 Director 2011/08/29 2026/09/25 4856900 0 0 0 4856900
ale ent
n
70Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Li
M Independent Incumb
Xumen 60 2021/03/31 2026/09/25 0 0 0 0 0
ale director ent
g
Chen
M Independent Incumb
Zhengx 58 2023/09/26 2026/09/25 0 0 0 0 0
ale director ent
u
Qin M Independent Incumb
472023/09/262026/09/2500000
Wei ale director ent
Vice
President
Wen Fe
and Incumb
Zhaohu ma 52 2011/08/29 2026/09/25 2643027 0 0 0 2643027
Secretary of ent
i le
the Board of
Directors
Luo Chief
M Incumb
Muche 43 Financial 2023/05/30 2026/09/25 15000 0 0 0 15000
ale ent
n Director
Total -- -- -- -- -- -- 234007246 0 0 0 234007246 --
Is there any resignation of director and senior executives during their term of office during the Reporting Period
□ Yes□ No
Changes in directors and senior executives
□ Applicable□ Not applicable
2. Employment status
Educational background main working experience and major responsibilities of existing directors and senior
executives of the Company
(I) Members of the Board of Directors
Wu Yongqiang male born in 1965 holds a master's degree without permanent residency abroad. He is a
local leading talent recognized by Shenzhen. He won the honors of "Shenzhen Young Science and Technology
Leader" awarded by Shenzhen Municipal Government "One of Top Ten Outstanding Young People" in
Nanshan District Shenzhen "Shenzhen Industrial Award" and "Phoenix Talent" in industry and information
technology in Bao'an District Shenzhen. He successively served as lecturer of Harbin Institute of Technology
and Vice Chairman of the Company. Now he serves as Chairman of the Company executive director of
Shenzhen Topband Software Technology Co. Ltd. executive director of Shenzhen Hongru Investment
Management Co. Ltd. partner of Shenzhen Hongru Investment Enterprise (Limited Partnership) executive
director and President of Ningbo Topband Intelligent Control Co. Ltd. executive director of Shenzhen Topband
Automation Technology Co. Ltd. director of Shenzhen YAKO Automation Technology Co. Ltd. and director
71Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
of Topband (Hong Kong) Co. Ltd.Zheng Sibin male born in 1966 holds a master's degree and is an accountant without permanent
residency abroad. He served as office director and vice factory director of Zhejiang Songyang Brewery and
finance supervisor manager of Finance Department and Chief Financial Director of Nam Tai Electronics
(Shenzhen) Co. Ltd. He is now a director Vice President and President of business units of the Company a
supervisor of Shenzhen Topband Software Technology Co. Ltd. and a supervisor of Chongqing Topband
Industrial Co. Ltd.Ma Wei male born in 1974 holds a bachelor's degree without permanent residency abroad. He served as
a technical development engineer and President of Shenzhen Huafa Electronics Co. Ltd. He is now a director
Vice President and President of business units of the Company.Peng Ganquan male born in 1972 holds a master's degree without permanent residency abroad. He
successively served as engineer development engineer of the electrical business unit technical director and
Vice President of Hunan Instrument and Meter Factory. Now he serves as director and President of business
units of the Company President of Shenzhen Topband Automotive Electronics Co. Ltd. and director of
TOPBAND INDIA PRIVATE LIMITED.Li Xumeng male born in 1966 Chinese holds a doctor's degree in business management without
permanent residency abroad. He successively served as consultant of Beijing Shangheng Zhiben Consulting Co.Ltd. and consultant of Shanghai Danfu Business Consulting Center. He is now a researcher of Zhuoyuehui
Innovation and Development (Shenzhen) Co. Ltd. a supervisor of Guangxi Danfu Venture Capital Investment
Co. Ltd. and an independent director of the Company.Chen Zhengxu male born in 1968 Chinese is a PhD student without permanent residency abroad. He
served as managing director of the investment banking department of Qilu Securities and Hongyuan Securities
an off-campus supervisor of master's degree programs of School of Economics Shenzhen University and
Department of Finance Shanghai Normal University an independent director of Shenzhen Kingdom
Technology Co. Ltd. an independent director of Shenzhen BTR New Energy and Materials Co. Ltd. and
President of Shenzhen Mingdao Dandelion Venture Capital Partnership Enterprise (Limited Partnership). Now
he is the executive director and President of Shenzhen Dingfeng Mingdao Asset Management Co. Ltd. a
director of Beijing Smartlink Microchip Co. Ltd. the executive director and President of Shenzhen Pumao
Culture and Art Co. Ltd. an executive partner of Shenzhen Daoxiang Investment Partnership (Limited
72Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Partnership) the manager of Shenzhen Mingxin Venture Capital Investment Partnership (Limited Partnership)
the head of Shenzhen Daoxin Venture Capital Investment Partnership (Limited Partnership) an executive
director of Xuan Wu Cloud Technology Holdings Limited an independent director of Guangdong Feinan
Resources Recycling Co. Ltd. an independent director of Chengdu Olymvax Biopharmaceuticals Inc. and an
independent director of the Company.Qin Wei male born in 1979 Chinese holds a bachelor's degree in engineering and a master's degree in
economics without permanent residency abroad. Mr. Qin Wei is a non-practicing member of the Chinese
Institute of Certified Public Accountants. He served as a senior credit analyst of Shenzhen China Chengxin
Credit Management Co. Ltd. a business director of Huatai United Securities Co. Ltd. managing director of
Topsperity Securities Co. Ltd. and managing director of Yingda Securities Co. Ltd. Now he is a director of
Shenzhen Taotao Technology Co. Ltd. a director of Shenzhen Pallet Sharing Technology Co. Ltd. a director
of Shenzhen Haytham Technology Co. Ltd. a director of Yacovia (Guangdong) Optical Technology Co. Ltd.the executive director and President of Shenzhen Taiya Dingfu Investment Consulting Co. Ltd. a founding
partner of Xiamen Taiya Dingfu Investment Management Co. Ltd. a partner of Xiamen Taiya Innovation
Equity Investment Partnership (Limited Partnership) an independent director of Shenzhen Fenda Technology
Co. Ltd. and an independent director of the Company.(II) Senior executives
WuYongqiang the President is detailed in the resume of members of the Board of Directors.Zheng Sibin the Vice President is detailed in the resume of members of the Board of Directors.Ma Wei the Vice President is detailed in the resume of members of the Board of Directors.Wen Zhaohui female born in 1974 holds a bachelor's degree and is an accountant without permanent
residency abroad. She successively served as head of the Finance Department manager of the Finance
Department and Finance Director of Shenzhen Topband Co. Ltd. and director of Shenzhen Dynanonic Co. Ltd.She is now the Vice President and Secretary of the Board of Directors of the Company. Ms. Wen Zhaohui was
honored as "New Fortune Golden Secretary of the Board" for five consecutive years. She won the titles of
"Excellent Secretary of the Board" awarded by Shenzhen Securities Regulatory Bureau "Securities Times Top
100 Secretaries of the Board" in 2015 2016 and 2017 and "Chinese Listed Companies Investor Relations
Management Tianma Award – Outstanding Secretary of the Board Award" from the Securities Times in 2025
73Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
and was selected into "New Fortune Hall of Fame of Golden Secretaries of the Board in 2019".Luo Muchen male born in 1983 holds a bachelor's degree and is an accountant without permanent
residency abroad. He served as an audit project manager of Shenzhen Branch of Ruihua Certified Public
Accountants and the report supervisor and financial manager of Shenzhen Topband Co. Ltd. Now he is the
director of the Company's finance center.Situation where the controlling shareholder or actual controller serves concurrently as the Chairman and
President of a listed company
□ Applicable □ Not applicable
Mr. Wu Yongqiang the controlling shareholder and actual controller of the Company serves as both the
Chairman and President of a listed company. He strictly adheres to laws and regulations such as the Securities
Law and the Code of Governance for Listed Companies as well as the Company's Articles of Association to
regulate his behavior exercise his rights in accordance with the law and assume corresponding obligations. The
controlling shareholder of the Company is an individual who does not have other investment projects and has
not directly or indirectly intervened in the Company's decision-making and operating activities beyond the
Company's General Meeting of Shareholders. The Board of Directors and corresponding departments of the
Company can operate normally and have independence.Employment in shareholder entity
□ Applicable□ Not applicable
Employment in other entities
□ Applicable □ Not applicable
Receive
Incumbent's Position taken in another Starting date of Ending date of remuneration and
Name of another entity
name entity term of office term of office allowances from
another entity
Shenzhen Topband
Wu Yongqiang Software Technology Co. Executive director 2014/09/18 No
Ltd.Shenzhen Hongru
Executive (managing)
Wu Yongqiang Investment Management 2015/08/20 No
director
Co. Ltd.Shenzhen Hongru
Wu Yongqiang Investment Enterprise Partners 2015/09/02 No
(Limited Partnership)
74Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Shenzhen YAKO
Wu Yongqiang Automation Technology Chairman 2022/12/24 No
Co. Ltd.Shenzhen Topband
Wu Yongqiang Automation Technology Executive director 2016/11/24 No
Co. Ltd.Topband (Qingdao)
Executive director and
Wu Yongqiang Intelligent Control Co. 2021/03/29 No
manager
Ltd.Ningbo Topband
Executive director and
Wu Yongqiang Intelligent Control Co. 2017/08/28 No
President
Ltd.Shenzhen Topband
Peng Ganquan Automotive Electronics President 2021/09/07 No
Co. Ltd.TOPBAND INDIA
Peng Ganquan Director 2015/12/11 No
PRIVATE LIMITED
Shenzhen Topband
Zheng Sibin Software Technology Co. Supervisor 2004/02/26 No
Ltd.Chongqing Topband
Zheng Sibin Supervisor 2008/03/12 No
Industrial Co. Ltd.Zhuoyuehui Innovation
Li Xumeng and Development Researcher 2018/06/01 Yes
(Shenzhen) Co. Ltd.Guangxi Danfu Venture
Li Xumeng Capital Investment Co. Supervisor 2023/04/07 No
Ltd.Shenzhen Dingfeng
Executive director and
Chen Zhengxu Mingdao Asset 2014/08/25 Yes
President
Management Co. Ltd.Beijing Smartlink
Chen Zhengxu Director 2017/12/21 No
Microchip Co. Ltd.Shenzhen Pumao Culture Executive director and
Chen Zhengxu 2019/06/13 No
and Art Co. Ltd. President
Shenzhen Daoxiang
Chen Zhengxu Investment Partnership Executive partner 2019/06/14 No
(Limited Partnership)
Shenzhen Mingxin
Venture Capital
Chen Zhengxu Manager 2021/12/20 No
Investment Partnership
(Limited Partnership)
Shenzhen Daoxin Venture
Capital Investment
Chen Zhengxu Head 2022/06/17 No
Partnership (Limited
Partnership)
Xuan Wu Cloud
Chen Zhengxu Technology Holdings Executive director 2026/02/09 Yes
Limited
Guangdong Feinan
Chen Zhengxu Resources Recycling Co. Independent director 2025/05/19 Yes
Ltd.Chengdu Olymvax
Chen Zhengxu Independent director 2025/07/30 Yes
Biopharmaceuticals Inc.Shenzhen Taotao
Qin Wei Director 2021/03/29 No
Technology Co. Ltd.
75Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Shenzhen Pallet Sharing
Qin Wei Director 2021/01/19 No
Technology Co. Ltd.Foshan Qicai Xiangyun
Qin Wei Information Technology Director 2021/10/28 No
Co. Ltd.Shenzhen Haytham
Qin Wei Director 2023/08/03 No
Technology Co. Ltd.Yacovia (Guangdong)
Qin Wei Optical Technology Co. Director 2020/08/10 No
Ltd.Shenzhen Taiya Dingfu
Executive director and
Qin Wei Investment Consulting 2022/10/26 No
President
Co. Ltd.Xiamen Taiya Dingfu
Qin Wei Investment Management Founding partner 2016/05/16 Yes
Co. Ltd.Xiamen Taiya Innovation
Equity Investment
Qin Wei Partners 2019/12/18 No
Partnership (Limited
Partnership)
Shenzhen Fenda
Qin Wei Independent director 2022/08/22 Yes
Technology Co. Ltd.Explanation of
employment in None
other entities
Punishment imposed by securities regulators in the past three years on the Company's directors and senior
executives currently in office and left office during the Reporting Period
□ Applicable□ Not applicable
3. Remuneration for directors and senior executives
Decision-making procedure confirmation basis and actual payment of remuneration for directors and senior
executives
(1) Decision-making procedure: The remuneration plans for directors and senior executives shall be
formulated by the Salary and Assessment Committee of the Board of Directors in which the remuneration plan
for directors shall be submitted to the Board of Directors and the General Meeting of Shareholders for
deliberation and that for senior executives shall be submitted to the Board of Directors for deliberation.
(2) Basis of determination: The remuneration of directors and senior executives shall be determined
based on the Remuneration Management System for Directors and Senior Executives deliberated at the 22nd
meeting of the 8th Board of Directors held on October 27 2025 the 3rd extraordinary general meeting of
shareholders held on November 14 2025 and the Proposal on Deliberating Allowances for Independent
Directors deliberated at the 2nd extraordinary meeting of shareholders for 2023.
76Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(3) Payment: During the Reporting Period the Company actually paid a total of RMB 11.0315 million in
remuneration to directors and senior executives (excluding share-based remuneration and retirement medical
and housing benefit expenses borne by the Company).Remuneration for directors and senior executives during the Reporting Period
Unit: RMB ten thousand
Received
Total pre-tax
remuneration
remuneration
Name Gender Age Position Position status from related
received from
parties of the
the Company
Company
Wu Yongqiang Male 61 Chairman President Incumbent 184.59 No
Zheng Sibin Male 60 Director Vice President Incumbent 245.94 No
Ma Wei Male 52 Director Vice President Incumbent 264.73 No
Peng Ganquan Male 54 Director Incumbent 215.97 No
Li Xumeng Male 60 Independent director Incumbent 8.4 No
Chen Zhengxu Male 58 Independent director Incumbent 8.4 No
Qin Wei Male 47 Independent director Incumbent 8.4 No
Vice President and
Wen Zhaohui Female 52 Secretary of the Board Incumbent 91.99 No
of Directors
Luo Muchen Male 43 Chief Financial Director Incumbent 74.73 No
Total -- -- -- -- 1103.15 --
The remuneration of directors and senior executives is
determined based on the specific rules and regulations of
Assessment criteria for actual remuneration received by all directors the Company such as the Remuneration Management
and senior executives at the end of the Reporting Period System for Directors and Senior Executives as well as the
Company's remuneration system and performance
evaluation system.Performance evaluation of actual remuneration received by all
Completed
directors and senior executives at the end of the Reporting Period
Deferred payment arrangements for actual remuneration received by
Not applicable
all directors and senior executives at the end of the Reporting Period
Suspension and recovery of the actual remuneration received by all
Not applicable
directors and senior executives at the end of the Reporting Period
Explanation of other situations
□ Applicable□ Not applicable
77Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
V. Directors' performance of duties during the Reporting Period
1. Directors' attendance at board meetings and general meetings of shareholders
Directors' attendance at board meetings and general meetings of shareholders
Whether you
have failed to
Number of
Number of attend the Number of
Number of Number of board Number of
board meetings board the general
Name of on-site board board meetings meetings absences
during the meetings in meetings of
directors meetings attended by attended by from board
Reporting person for shareholders
attended correspondence an authorized meetings
Period two attended
person
consecutive
times
Wu
6 6 0 0 0 No 4
Yongqiang
Ma Wei 6 6 0 0 0 No 4
Peng
6 6 0 0 0 No 3
Ganquan
Zheng
6 6 0 0 0 No 4
Sibin
Li
6 6 0 0 0 No 3
Xumeng
Chen
6 6 0 0 0 No 3
Zhengxu
Qin Wei 6 6 0 0 0 No 3
Explanation for failure to attend the board meetings in person for two consecutive times
Not applicable
2. Objections raised by Directors to the matters related to the Company
Whether Directors raise objections to matters related to the Company
□ Yes□ No
During the Reporting Period the Directors raised no objections to relevant matters of the Company.
3. Other descriptions on directors' performance of duties
Whether the directors' proposals to the Company have been adopted
□ Yes □ No
Director's explanation on the adoption or rejection of the Company's proposals
During the Reporting Period all directors of the Company performed their duties diligently and strictly
followed the relevant regulations of the CSRC and the Shenzhen Stock Exchange as well as the Articles of
78Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Association Rules of Procedure for the Board of Directors and other regulations to carry out their work. They
paid close attention to the standardized operation and management of the Company. Based on the actual
situation of the Company they put forward professional and constructive opinions on the Company's major
decisions. After sufficient communication and discussion resolutions were formed to ensure that decisions were
scientific timely and efficient so as to safeguard the legitimate rights and interests of the Company and its all
shareholders.VI. Status of special committees under the Board of Directors during the Reporting Period
Important
Other Details of
Name of the Number of opinions and
Members Meeting date Meeting content performance objections
committee meetings held suggestions put
of duties (if any)
forward
The following contents
were deliberated and
passed:
1. Proposal on
Preliminary Review
Opinions on the
Company's 2024
Financial Accounting
The Audit
Statement;
Committee
2. Proposal on the
reviewed the
Company's 2024 Audit
matters under
Work Time and
consideration in
Arrangements;
strict accordance
3. Proposal on the Work
with the Rules of
Report of the Company's
Procedure for the
Audit Department for the
Audit Committee
Fourth Quarter of 2024
of the Board of
and the Work Plan for the
The 8th Qin Wei Chen Directors and
First Quarter of 2025; Not Not
Audit Zhengxu and Li 5 2025/01/17 relevant laws and
4. Proposal on the 2024 applicable applicable
Committee Xumeng regulations and
Work Summary and Next
fully
Year's Work Plan of the
communicated
Audit Department of the
with the Finance
Company;
Department and
5. Proposal on the Audit
the Auditing
Report on the Use and
Agency and
Deposit of Funds Raised
unanimously
by the Company in the
agreed to the
Fourth Quarter of 2024;
relevant
6. Proposal on Opinions
proposals.on the Occupation of the
Company's Funds and
External Guarantees by
Controlling Shareholders
and Other Related Parties
in the Fourth Quarter of
2024;
7. Proposal on Reviewing
79Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
the Use of the Company's
Forward Foreign
Exchange Trading Funds
in the Fourth Quarter of
2024.
The Audit
Committee
reviewed the
The following contents
matters under
were deliberated and
consideration in
passed:
strict accordance
1. Proposal on Opinions
with the Rules of
on the Company's 2024
Procedure for the
Financial Accounting
Audit Committee
Report;
of the Board of
2. Proposal on the 2024
The 8th Qin Wei Chen Directors and
Internal Control Not Not
Audit Zhengxu and Li 5 2025/03/26 relevant laws and
Evaluation Report; applicable applicable
Committee Xumeng regulations and
3. Proposal on Provision
fully
for Asset Impairment in
communicated
2024;
with the Finance
4. Proposal on Opinions
Department and
on the Supervision of the
the Auditing
Performance of Duties of
Agency and
Accounting Firms in
unanimously
2024.
agreed to the
relevant
proposals.The Audit
Committee
reviewed the
matters under
consideration in
strict accordance
The following contents
with the Rules of
were deliberated and
Procedure for the
passed: 1. Proposal on the
Audit Committee
Company's Financial
of the Board of
Report for the First
The 8th Qin Wei Chen Directors and
Quarter of 2025; Not Not
Audit Zhengxu and Li 5 2025/04/23 relevant laws and
2. Proposal on the Audit applicable applicable
Committee Xumeng regulations and
Department's Work
fully
Report for the First
communicated
Quarter of 2025 and Work
with the Finance
Plan for the Second
Department and
Quarter.the Auditing
Agency and
unanimously
agreed to the
relevant
proposals.The following contents The Audit
were deliberated and Committee
The 8th Qin Wei Chen passed: reviewed the
Not Not
Audit Zhengxu and Li 5 2025/08/20 1. Proposal on the matters under
applicable applicable
Committee Xumeng Company's Financial consideration in
Report for the Second strict accordance
Quarter of 2025; with the Rules of
80Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Proposal on the Work Procedure for the
Report of the Company's Audit Committee
Audit Department for the of the Board of
Second Quarter of 2025 Directors and
and the Work Plan for the relevant laws and
Third Quarter; regulations and
fully
communicated
with the Finance
Department and
the Auditing
Agency and
unanimously
agreed to the
relevant
proposals.The Audit
Committee
reviewed the
The following contents matters under
were deliberated and consideration in
passed: strict accordance
1. Proposal on the with the Rules of
Company's Financial Procedure for the
Report for the Third Audit Committee
Quarter of 2025; of the Board of
The 8th Qin Wei Chen 2. Proposal on the Work Directors and
Not Not
Audit Zhengxu and Li 5 2025/10/27 Report of the Company's relevant laws and
applicable applicable
Committee Xumeng Audit Department for the regulations and
Third Quarter of 2025 and fully
the Work Plan for the communicated
Fourth Quarter; with the Finance
3. Proposal on the Department and
Continued Appointment the Auditing
of the Company's 2025 Agency and
Audit Institution. unanimously
agreed to the
relevant
proposals.The Salary and
Assessment
Committee of the
Board of
The following contents Directors
were deliberated and deliberated the
passed: matters under
1. Proposal on consideration in
The 8th
Chen Zhengxu Remuneration of strict accordance
Salary and Not Not
Wu Yongqiang 2 2025/03/26 Company Directors in with the Rules of
Assessment applicable applicable
and Qin Wei 2024; Procedure of the
Committee
2. Proposal on Salary and
Remuneration of Senior Assessment
Executives of the Committee of the
Company in 2024. Board of
Directors and
relevant laws and
regulations and
unanimously
81Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
agreed to the
relevant
proposals.The Salary and
Assessment
Committee of the
Board of
Directors
deliberated the
matters under
The following contents consideration in
were deliberated and strict accordance
The 8th passed: with the Rules of
Chen Zhengxu
Salary and 1. Proposal on Revising Procedure of the Not Not
Wu Yongqiang 2 2025/10/27
Assessment the Remuneration Salary and applicable applicable
and Qin Wei
Committee Management System for Assessment
Directors and Senior Committee of the
Executives Board of
Directors and
relevant laws and
regulations and
unanimously
agreed to the
relevant
proposals.VII. Work of the Audit Committee
Whether the Audit Committee found any risks in the Company during its supervisory activities during the
Reporting Period
□ Yes□ No
The Audit Committee had no objection to the supervisory matters during the Reporting Period.VIII. Information on the Company's employees
1. Number of employees specialty composition and education level
Number of employees of the parent company at the end of the
2596
Reporting Period (person)
Number of employees in major subsidiaries at the end of the
10612
Reporting Period (person)
Total number of employees at the end of the Reporting Period
13208
(person)
Total number of salaried employees in the current period
13208
(person)
Number of retired employees whose expenses need to be borne
20
by the parent company and major subsidiaries (person)
Specialty composition
82Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Specialty composition category Number of specialty composition (person)
Production personnel 8810
Salesperson 814
Technician 2138
Financial staff 99
Administrative personnel 574
Logistics personnel 773
Total 13208
Education level
Education level category Number (person)
Bachelor or above 3703
Junior college level 1893
Below junior college level 7612
Total 13208
2. Remuneration policy
The Company formulates salary management regulations in accordance with relevant national labor
regulations and policies and its actual situation and assesses and pays salaries in accordance with the salary
management regulations. The Company strictly complies with the Labor Law and relevant national and local
labor laws and regulations signs labor contracts with employees and pays various employee insurance
according to regulations. The Company's overall remuneration consists of the following three parts: fixed salary
performance-based salary and welfare allowances. Fixed salary includes basic salary position salary and
confidentiality salary; performance-based salary includes performance bonus year-end bonus and special bonus;
and welfare includes mandated benefits company benefits and allowances.In 2025 Topband has continuously optimized the salary management system formulated and implemented
the employee salary management system implemented differentiated salary band division for positions based
on value assessment built a salary grade development channel directly linked to the qualifications for the
position and formed a dynamic salary mechanism of "different salaries for the same position and changes in
salary with changes in position". For salary determination the method of a combination of performance and
qualification certification was adopted a gradual salary adjustment strategy of "small steps and fast progress"
was implemented and on the premise of ensuring reasonable control of the total salary department managers
and the Human Resources Department jointly assess it.For overseas employees the Company has revised the salary welfare and holiday management measures
83Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
further refined the principles time and process for the issuance of overseas allowances improved the home
leave policy and clarified the attendance management standards to protect the rights and interests of overseas
employees. In addition the Company strictly fulfilled its responsibilities of paying employees' wages and social
security ensuring that all employees enjoy social insurance protection and building a solid welfare foundation
for employees.In terms of salary fairness and performance management the Company has established an internal salary
benchmarking system which compares industry salary levels through external salary reports and combines
internal salary data analysis to provide a basis for annual salary adjustment decisions ensuring that salary levels
are fair while being competitive in the market. The performance management system focused on organizational
strategic goals emphasized team collaboration and personal development and ensured that individual
performance is consistent with the Company's overall goals.
3. Training plan
The Company gives a priority to the training programs and has established a talent training system
combining professional competence and leadership including routine training professional module training and
management cadre training. Different training courses are formulated in stages for new employees personnel in
professional positions such as R&D procurement and sales and middle and senior managers. An annual
training plan is implemented in the areas of corporate culture professional skills management improvement
professional ethics and mental health. Through the combination of internal and external training excellent
human resources support is provided for the sustainable development of the Company.During the Reporting Period in order to help new employees better adapt to the new work environment
and positions become familiar with the Company's relevant systems and integrate into the corporate culture
the Company's Human Resources Center prepared courses and implemented an annual training plan in the areas
of corporate culture professional skills management improvement professional ethics and mental health. The
internal training and external training were combined based on the office environment. In the "New Employee
Training" section the training content covers company profile benefits corporate culture information systems
finance and intellectual property legal basics and commercial confidentiality knowledge ISC core ideas and
concepts and occupational mental health covering all the new employees. At the same time for employees on
the production line the Company continues to provide on-site training and provides special training in the
terms of taking up posts on-duty issues job transfers and special skill positions so as to improve the
84Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
professional capabilities of front-line employees in workplace safety operating procedures and quality control.In addition in order to improve the effectiveness of professional training the module heads of departments
of the Company and the Talent Development Department of the Company's Human Resources Center jointly
formulated the 2025 professional training plan based on actual business needs; at the same time the Talent
Development Department of the Human Resources Center supervised and managed the implementation to
ensure the feasibility of the training plan. In 2025 the Company held targeted professional training for all
professional module positions from time to time including training on finance legal affairs patents customs
procurement supply chain sales R&D and manufacturing and quality. Experts from various fields were
invited to regularly communicate and share on these professional modules technologies and other topics.The Company pays attention to the training of the current managers and management trainees and has
formulated different training plans for them at different levels. During the Reporting Period multiple sessions
of "New Goose Training Camp" (supervisor trainees) and "Flying Goose Training Camp" (management trainees)
were carried out in Shenzhen Huizhou Ningbo Vietnam Romania and other places. The "New Goose/Flying
Goose Training Camp" is a professional training program for the Company's internal management
trainees/current managers. The program for current managers not only allows mangers to learn management
knowledge and absorb others' experience in a timely manner but also provides a learning platform for sharing
and communication. The program for management trainees prepares future managers for knowledge reserve and
assessment before they enter management positions and only those who pass the assessment can successfully
enter the management talent pool. In addition to basic course training the training plan involves targeted
training activities such as management case practice management development micro-lesson presentations
and IDP instructions by internal intermediate and senior tutors. In addition to basic course activities the
Company assigns 2-3 management tutors to each trainee who conduct monthly face-to-face interviews to help
trainees change their mindset and quickly adapt to management roles. The Company carried out "Overseas
Goose Training Camp" to promote the cross-regional learning of talents at overseas bases where outstanding
management cadres and professional backbone personnel from four overseas bases in Vietnam India Romania
and Mexico participated in the training camp. The learning content included multiple lessons on the Company's
development history strategy and management philosophy. In addition there were visits to the parks in
Shenzhen and Huizhou departmental learning and practice world coffee seminars and a two-day tour to
Guangzhou and Shenzhen to deeply experience China's economy and humanities. The training camp enhanced
85Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
overseas employees' understanding of the headquarters in China promoted cross-cultural communication and
cooperation and assisted in the implementation of the Company's globalization strategy.In order to better assist talent development the Company continues to promote the construction of a job
qualification system and carries out job qualification sorting and job personnel certification. Since 2020 the
Company has been building a position qualification system. As of the end of the Reporting Period the position
criteria had covered all positions and nearly 4722 employees with all employees certified preliminarily which
not only had provided employees with clear career advancement criteria but also had helped improve
organizational effectiveness through accurate matching of capabilities and positions. On this basis the
Company focused on the cultivation of core position capabilities and innovatively designed special training
camps for professional skills management skills language skills mental health etc. to meet the needs of
different job categories such as marketing procurement quality and R&D. In 2025 the training camps covered
13935 person-times and all employees received position-related training in all regions.
The Company provides an online learning platform and offers corresponding learning map courses for key
positions. The job learning map provides staff in different positions with clear and definite knowledge and skills
required for personal development and improvement and provides targeted courses on the required professional
knowledge and skills for each position effectively helping personnel in different positions improve their
professional capabilities. During the Reporting Period the learning platform was used by 4860 person-times
and its activity level was 77%.
4. Labor outsourcing
□ Applicable□ Not applicable
IX. Profit distribution and conversion of capital accumulation fund to share capital
Profit distribution policy during the Reporting Period especially the formulation implementation or adjustment
of the cash dividend policy
□ Applicable □ Not applicable
During the Reporting Period after detailed consultation with the Company's shareholders and listening to
their opinions the Company's Board of Directors formulated the Company's 2024 Profit Distribution Plan based
on the Company's 2024 profit situation and investment situation and 2025 investment and expenditure plans.
86Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The 2024 Profit Distribution Plan was deliberated and passed at the 18th Meeting of the 8th Board of Directors
and the 2024 Annual General Meeting of Shareholders. The 2024 Profit Distribution Plan is as follows. Based
on the Company's total share capital on the equity registration date minus 1228789388 shares of the
repurchased shares in the Company's special repurchase account a cash dividend of RMB 0.7 (tax inclusive) for
every 10 shares will be distributed to all shareholders. No accumulation fund will be converted to share capital
and no bonus shares will be issued. The above Profit Distribution Plan was implemented on May 13 2025. The
2024 Profit Distribution Plan is in compliance with laws regulations the Articles of Association and the
Company's Shareholder Dividend Plan for the Next Three Years (2023-2025) and the profit distribution
decision-making procedure complies with the provisions of relevant laws regulations rules and codes.Special description of cash dividend policy
Whether it complies with the provisions of the Company's
Articles of Association or the requirements of the resolutions of Yes
the general meetings of shareholders:
Are the dividend criteria and proportion clear and explicit Yes
Are the relevant decision-making procedures and mechanisms
Yes
complete
Have independent directors fulfilled their duties and played their
Yes
due role:
If the Company does not distribute cash dividends it shall
disclose the specific reasons and the measures it intends to take Not applicable
to enhance the level of investor returns:
Do small and medium shareholders have sufficient opportunities
to express their opinions and demands and are their legitimate Yes
rights and interests fully protected:
If the cash dividend policy is adjusted or changed are the
Yes
conditions and procedures compliant and transparent
The Company is profitable during the Reporting Period and the parent company has positive profit available for
distribution to shareholders but no cash dividend distribution plan has been proposed.□ Applicable□ Not applicable
Profit distribution and conversion of capital accumulation fund to share capital in the Reporting Period
□ Applicable □ Not applicable
Number of bonus shares send for every 10 shares (shares) 0
Number of dividend paid for every 10 shares (RMB) (tax
0.7
inclusive)
Equity base of the distribution plan (shares) 1228789388
Cash dividends (RMB) (tax inclusive) 86015257.16
87Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Amount of cash dividends distributed in other ways (such as
0.00
share repurchase) (RMB)
Total cash dividends (including other methods) (RMB) 86015257.16
Distributable profit (RMB) 1491455025.24
The proportion of total cash dividends (including other methods)
100%
to total profit distribution
Distribution of cash dividends in this period
If the Company is in the growth period and has major capital expenditures the cash dividend shall account for at least 20% of the
profit distribution.Detailed description of the profit distribution or capital accumulation fund conversion plan
The Company's profit distribution plan for 2025 is as follows: Based on the Company's total share capital of 1228789388 shares
(excluding repurchase accounts) a cash dividend of RMB 0.7 (tax inclusive) per 10 shares will be paid to all shareholders. The
Company will not convert its accumulation fund to share capital and will not issue bonus shares. The accumulated undistributed
profits remaining after the implementation of the profit distribution plan shall be carried forward to subsequent years. If the
Company's total share capital changes before the implementation of the Profit Distribution Plan due to share repurchase or other
reasons the total distribution amount will be adjusted accordingly based on the principle of maintaining the same distribution ratio
per share. Investors are advised to pay attention to the risk of adjustment of the total distribution amount due to changes in the total
share capital.X. Implementation of the Company's equity incentive plan employee stock ownership plan
or other employee incentive measures
□ Applicable □ Not applicable
1. Equity incentives
Implementation of the 2024 stock option incentive plan:
(1) On November 6 2024 the Company held the 15th (Extraordinary) Meeting of the 8th Board of
Directors and the 10th (Extraordinary) Meeting of the 8th Board of Supervisors deliberated and passed the
Proposal on the Company's 2024 Stock Option Incentive Plan (Draft) and its Summary the Proposal on the
Company's Management Measures for Assessment of the Stock Option Incentive Plan for 2024 and the
Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of Directors to Handle
Matters Related to the Company's Stock Option Incentive Plan for 2024 and agreed that the Company would
intend to grant a total of no more than 33 million stock options to 1200 incentive objects. All shares of this plan
come from the shares repurchased by the Company's special repurchase account. The stock options granted this
time will be exercised at a ratio of 30% 40% and 30% within 12 months 24 months and 36 months from the
date of completion of the granting and registration of the stock options. The Company held the 10th
(Extraordinary) Meeting of the 8th Board of Supervisors passed the relevant proposals and verified the list of
incentive objects in this incentive plan. The lawyer issued a legal opinion and the independent financial
consultant issued an independent financial consultant report.
88Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) On November 11 2024 the Company publicly announced the names and positions of the incentive
objects in this incentive plan on the Company's internal OA office system with a publicity period from
November 11 2024 to November 20 2024. No organization or individual raised any objection to the list of
incentive objects during the publicity period. On November 21 2024 the Company disclosed the Note and
Verification Opinion of the Board of Supervisors on the Disclosure of the List of Incentive Recipients for the
2024 Stock Option Incentive Plan of the Company. The Board of Supervisors believed that the proposed
incentive objects in this incentive plan did not have the situation that relevant laws and regulations do not allow
them to be the incentive objects and met the participation qualifications within the scope of the incentive
objects in this incentive plan.
(3) On November 25 2024 the Company held the 2nd Extraordinary General Meeting of Shareholders
deliberated and passed the Proposal on the Company's 2024 Stock Option Incentive Plan (Draft) and its
Summary the Proposal on the Company's Management Measures for Assessment of the Stock Option Incentive
Plan for 2024 the Proposal on Requesting the General Meeting of Shareholders to Authorize the Board of
Directors to Handle Matters Related to the Company's Stock Option Incentive Plan for 2024 and other
proposals related to the Incentive Plan and authorized the Board of Directors to determine the grant date under
the Incentive Plan grant stock options to the incentive objects when the incentive objects meet the conditions
and handle all matters necessary for the granting of stock options.
(4) On December 9 2024 the Company held the 16th (Extraordinary) Meeting of the 8th Board of
Directors and the 11th (Extraordinary) Meeting of the 8th Board of Supervisors and deliberated and passed the
Proposal on Adjusting Matters Related to the 2024 Stock Option Incentive Plan and the Proposal on Granting
Stock Options to Incentive Objects. In view of the fact that as of the grant date of the stock options 4 of the
incentive objects originally deliberated and determined had resigned or had submitted resignation applications
and did not meet the conditions to become incentive objects and the fact that 7 incentive objects voluntarily
gave up the qualification for the stock options to be granted this time due to personal reasons a total of 100000
stock options to be granted to the above 11 incentive objects were canceled. After the adjustment the
Company's stock option incentive objects this time were 1050 people and the total number of stock options to
be granted was adjusted from 33 million to 32.9 million. The Company's Board of Supervisors reviewed the list
of incentive objects the lawyer issued a legal opinion and the independent financial consultant issued an
independent financial advisor report.
89Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(5) On December 26 2024 after review and confirmation by the Shenzhen Stock Exchange and the China
Securities Depository and Clearing Corporation Shenzhen Branch the Company completed the registration of
32.9 million stock options to be granted under the 2024 stock option incentive plan.
(6) On June 11 2025 the Company held the 20th Meeting of the 8th Board of Directors which deliberated
and passed the Proposal on Adjusting the Exercise Price of the 2024 Stock Option Incentive Plan approving the
adjustment of the exercise price of stock options under the 2024 stock option incentive plan from RMB
9.6/share to RMB 9.53/share with no change in the number of options. The lawyer issued a legal opinion and
the independent financial consultant issued an independent financial consultant report.For details of the implementation of the 2024 stock option incentive plan refer to the announcements
disclosed by the Company on November 7 2024 November 26 2024 December 11 2024 December 27 2024
and June 12 2025 on the Securities Times and CNINFO (http://www.cninfo.com.cn).Equity incentives received by the Company's directors and senior executives
□ Applicable□ Not applicable
Evaluation and incentives of senior executives
An annual salary system that is closely linked to management responsibilities risks and performance is
fully implemented for the remuneration of senior executives of the Company. The remuneration structure
includes a fixed basic annual salary (determined based on responsibilities and competencies paid monthly) and
a floating operating annual salary. Among them the annual operating salary is subject to differentiated classified
evaluation: (1) For any executive who serves as a business department head the annual operating salary is
evaluated based on net profit growth and business value combined with financial indicators customer
indicators internal operations learning and growth and other multidimensional organizational KPIs and
follows the "no bottom" mechanism meaning that it fluctuates with the actual annual operating situation; (2)
For any full-time executive in the non-business line evaluation is focused on the unique value creation on
his/her position annual KPI achievement rate and empowerment support for the business line. In addition the
Company routinely introduces equity incentives or employee stock ownership plans to bind the long-term
interests of the core team. The overall remuneration evaluation plan is implemented in compliance with relevant
corporate governance review procedures under the professional supervision of the Salary and Assessment
Committee.
90Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Implementation of employee stock ownership plan
□ Applicable □ Not applicable
Status of all effective employee stock ownership plans during the Reporting Period
Proportion to the
Scope of Number of Total number of share capital of Sources of funding for
Changes
employees employees stocks held (shares) the listed implementation of the plan
company
Directors
(excluding Special incentive funds
independent provided for by the
directors) Not Company and funds raised
4551812000.42%
supervisors senior applicable by other means as
executives and the permitted by laws and
core backbone of administrative regulations
the Company
Shareholdings of directors and senior executives in the Employee Stock Ownership Plan during the Reporting
Period
Number of stocks
Number of stocks
held at the
held at the end of Proportion to the share capital of the
Name Position beginning of the
the Reporting listed company
Reporting Period
Period (shares)
(shares)
Directors: Ma Wei
Zheng Sibin and
Peng Ganquan; Directors and
130000013000000.10%
senior executives: senior executives
Wen Chaohui and
Luo Muchen
Changes in asset management institutions during the Reporting Period
□ Applicable□ Not applicable
Changes in equity due to disposal of shares by holders during the Reporting Period
□ Applicable□ Not applicable
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
91Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Changes in members of the Employee Stock Ownership Plan Management Committee
□ Applicable□ Not applicable
Financial impact of the Employee Stock Ownership Plan on the listed company during the Reporting Period and
related accounting treatment
□ Applicable□ Not applicable
Termination of the Employee Stock Ownership Plan during the Reporting Period
□ Applicable□ Not applicable
Other descriptions:
None
3. Other employee incentives
□ Applicable□ Not applicable
XI. Construction and implementation of internal control system during the Reporting
Period
1. Construction and implementation of internal control
During the Reporting Period the Company continued to update and improve its internal control system
based on the actual situation of the Company in accordance with the Basic Standards for Enterprise Internal
Control Management Measures for Independent Directors of Listed Companies Guidelines for the Application
of Enterprise Internal Control and other normative documents combined with the Company's internal control
system and evaluation methods on the basis of daily supervision and special supervision of internal control.During the Reporting Period the Company revised the Rules of Procedure for the General Meeting of
Shareholders Rules of Procedure for Meetings of the Board of Directors Rules of Procedure for the Salary and
Assessment Committee of the Board of Directors Rules of Procedure for the Strategy and ESG Committee of
the Board of Directors Rules of Procedure of the Audit Committee of the Board of Directors Rules of
Procedure of the Nomination Committee of the Board of Directors Working System of the Information
Disclosure Committee Management Measures for Raised Funds Accountability System for Major Errors in
Annual Report Information Disclosure Management Measures for Shares and Changes in the Company Held
92Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
by Directors and Senior Executives Management System for Public Information Disclosure Management
System for Entrusted Wealth Management Management System for Related Party Transactions Management
System for External Financial Assistance Management System for External Guarantees Management System
for Foreign Exchange Derivatives Trading Management System for External Investment Internal Audit System
Financial Management System Work System for Independent Directors Work Rules for the President Work
System for the Secretary of the Board of Directors Remuneration Management System for Directors and Senior
Executives and other systems in accordance with the latest provisions of the latest laws regulations and
normative documents and in light of the Company's actual situation and new internal management systems
such as the Resignation Management System for Directors and Senior Executives Information Disclosure
Suspension and Exemption Management System and Market Value Management System. At the same time
according to management needs the Company set up an internal audit agency and special meetings of
independent directors. These mechanisms coordinated with the audit committee and independent directors to
supervise and inspect the implementation of relevant systems. This can effectively ensure the implementation of
the Company's rules and regulations reduce operating risks and strengthen internal control. The Company
continued to optimize its organizational structure and clarified the responsibilities of each department and
corresponding positions. In this way the Company effectively controlled the implementation of internal controls
involved in the entire process of business management activities such as decision-making execution
supervision and feedback effectively avoiding internal control loopholes.The Company established a rigorous scientific effective internal control system suitable for its actual
situation and formulated effective internal control evaluation standards; The Company effectively prevented
risks in business management and promoted the achievement of internal control objectives through the
operation analysis and evaluation of its internal control system.
2. Details of major internal control deficiencies found during the Reporting Period
□ Yes□ No
XII. Management and control of the Company's subsidiaries during the Reporting Period
Problem
Measures taken Progress of Subsequent plan
Integration encountered
Company name Integration plan to solve the solving the of solving the
progress during
problem problem problem
integration
93Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Abnormality in control over subsidiaries
□ Yes□ No
XIII. Internal control evaluation report or internal control audit report
1. Internal control evaluation report
Date for disclosure of the full text of the
April 2 2026
internal control evaluation report
Index for disclosure of the full text of the
CNINFO (http://www.cninfo.com.cn)
internal control evaluation report
The proportion of total assets of the units
included in the evaluation scope to the
100.00%
total assets of the Company's consolidated
financial statements
The proportion of operating income of the
units included in the evaluation scope to
100.00%
the operating income of the Company's
consolidated financial statements
Defect identification criteria
Category Financial report Non-financial report
Indications of major defect of financial
The qualitative criteria for evaluating
reports include:
internal control defects in non-financial
(1) Fraudulent conduct by the Company's
reports determined by the Company are as
directors supervisors and senior
follows:
executives;
The non-financial report defect
(2) The Company has corrected its
identification is mainly based on the
published financial reports;
influence degree of the defect on the
(3) Material misstatements in the current
validity of the business process and the
financial reports discovered by the
possibility of occurrence.certified public accountants but not
If the probability of a defect is relatively
identified by the Company's internal
low and it will reduce work efficiency or
control;
effect or increase the uncertainty of the
(4) The audit committee and audit
effect or make it deviate from the
department were ineffective in
expected goal it is recognized as a
Qualitative criteria supervising the Company's external
general defect;
financial reports and internal control over
If the probability of a defect is relatively
financial reports.high and it will significantly reduce work
Indications of significant defect of
efficiency or effect or significantly
financial reports include:
increase the uncertainty of the effect or
(1) Failure to select and apply accounting
make it significantly deviate from the
policies in accordance with generally
expected goal it is recognized as a
accepted accounting principles;
significant defect; If the probability of a
(2) Failure to establish anti-fraud
defect is high and it will seriously reduce
procedures and control measures;
work efficiency or effect or seriously
(3) Failure to establish corresponding
increase the uncertainty of the effect or
control mechanisms for the accounting
make it seriously deviate from the
treatment of non-routine or special
expected goal it is recognized as a major
transactions or failure to implement and
defect.having no corresponding compensatory
94Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
controls;
(4) There is one or more defects in the
control over the final financial reporting
process and there is no reasonable
assurance that the prepared financial
reports are true and complete.General defects refer to other control
defects other than the above-mentioned
major and important defects.The quantitative standard uses
The quantitative standard uses operating
consolidated operating income and total
income and total assets as measurement
assets as measurement indicators. If the
indicators. If the losses that may be
losses that may be caused or were caused
caused or were caused by internal control
by internal control defects are related to
defects are related to the profit statement
the profit statement they are measured by
they are measured by the consolidated
the consolidated operating income
operating income indicators. If the amount
indicators. If the amount of misstatement
of misstatement in the financial reports
in the financial reports that may be caused
that may be caused by the defect alone or
by the defect alone or together with other
together with other defects is less than
defects is less than 0.5% of the
0.5% of the consolidated operating
consolidated operating income it is
income it is considered as a general
considered as a general defect; if it
defect; if it exceeds 0.5% but less than 1%
exceeds 0.5% but less than 1% of the
of the consolidated operating income it is
consolidated operating income it is
considered as a major defect; and if it
considered as a major defect; and if it
exceeds 1% of the consolidated operating
exceeds 1% of the consolidated operating
Quantitative standard income it is considered as a material
income it is considered as a material
defect.defect.If the losses that may be caused or were
If the losses that may be caused or were
caused by internal control defects are
caused by internal control defects are
related to asset management they are
related to asset management they are
measured by the indicator of total
measured by the indicator of total
consolidated assets. If the amount of
consolidated assets. If the amount of
misstatement in the financial reports that
misstatement in the financial reports that
may be caused by the defect alone or
may be caused by the defect alone or
together with other defects is less than
together with other defects is less than
0.5% of the total consolidated assets it is
0.5% of the total consolidated assets it is
considered as a general defect; if it
considered as a general defect; if it
exceeds 0.5% but less than 1% of the total
exceeds 0.5% but less than 1% of the total
consolidated assets it is considered as a
consolidated assets it is considered as a
major defect; and if it exceeds 1% of the
major defect; and if it exceeds 1% of the
total consolidated assets it is considered
total consolidated assets it is considered
as a material defect.as a material defect.Number of material defects in financial
0
reports (Nr.)
Number of material defects in non-
0
financial reports (Nr.)
Number of major defects in financial
0
reports (Nr.)
Number of major defects in non-financial
0
reports (Nr.)
2. Internal control audit report
□ Applicable □ Not applicable
95Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The deliberation opinion paragraph in the internal control audit report
We believe that Shenzhen Topband Co. Ltd. had maintained effective internal control over financial reports in all material aspects as
of December 31 2025 in accordance with the Basic Standards for Enterprise Internal Control and relevant regulations.Disclosure of internal control audit report Disclosure
Date of full-text disclosure of internal audit report April 2 2026
Index of full-text disclosure of internal audit report CNINFO (http://www.cninfo.com.cn)
Internal control audit report opinion types Standard unmodified opinion
Are there material defects in the non-financial report No
Did the accounting firm issue an internal control audit report with a non-standard opinion
□ Yes□ No
Is the internal control audit report issued by the accounting firm consistent with the self-examination report of
the Board of Directors
□ Yes □ No
Was a non-standard opinion on internal control issued during the Reporting Period or last year
□ Yes□ No
XIV. Rectification of self-examination problems in special actions of governance of listed
companies
Not applicable
XV. Environmental information disclosure situation
Whether the listed company and its major subsidiaries are included in the list of enterprises disclosing
environmental information according to law
□ Yes□ No
XVI. Social responsibility
For details refer to the full text of the Company's 2025 ESG and Social Responsibility Report published
on CNINFO (http://www.cninfo.com.cn) on April 2 2026.
96Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
XVII. Consolidated and enhanced the achievements in poverty alleviation and rural
revitalization
In terms of consolidating and expanding the achievements of poverty alleviation during the Reporting
Period the Company's its core business entities in Guangdong Province recruited 297 people lifted out of
poverty (formerly "registered poor population") actively to help consolidate the achievements of poverty
alleviation through practical actions.
97Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section V Important Matters
I. Fulfillment of commitments
1. Completed commitments during the Reporting Period and uncompleted commitments within the time
limit by the end of the Reporting Period by the Company's actual controller shareholders related
parties acquirers the Company and other committed related parties
□ Applicable □ Not applicable
Reasons for Undertaking Commitment Commitment Commitment
Commitment content Performance
commitments party type time period
Mr. Wu Yongqiang
the actual controller of
the Company has
promised that during
the period of being the
controlling shareholder
Commitments and/or actual controller
made during the Commitments of the Company he Fulfill the
Wu
initial public to horizontal would not directly or 2006/06/12 Long-term commitment
Yongqiang
offering or competition indirectly engage in strictly
refinancing any business which
was the same similar
or substantially
competitive with the
main business of the
Company at present
and in the future.Whether the
commitment was
Yes
fulfilled on
schedule
If the commitment
was not fulfilled
within the time
limit the specific
Not applicable
reasons for the
failure and the next
work plan shall be
explained in detail.
2. If there was a profit forecast for the Company's assets or projects and the Reporting Period was still
in the profit forecast period the Company shall explain why the assets or projects reached the original
profit forecast and the reasons.□ Applicable□ Not applicable
98Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3. Performance commitments involving the Company
□ Applicable□ Not applicable
II. Non-operating capital occupation of listed companies by controlling shareholders and
their related parties
□ Applicable□ Not applicable
There was no non-operating capital occupation of listed companies by controlling shareholders and their related
parties in the Reporting Period of the Company.III. External guarantee in violation of regulations
□ Applicable□ Not applicable
The Company had no external guarantee in violation of regulations during the Reporting Period.IV. Explanation of the Board of Directors on the latest "non-standard audit report"
□ Applicable□ Not applicable
V. Explanation of the "non-standard audit report" of the Accounting Firm in the Reporting
Period by the Board of Directors the Board of Supervisors and Independent Directors (if
any)
□ Applicable□ Not applicable
VI. Description of changes in accounting policies accounting estimates or corrections of
significant accounting errors compared with the previous year's financial report
□ Applicable□ Not applicable
There were no changes in accounting policies accounting estimates or corrections of significant accounting
errors during the Reporting Period.VII. Explanation of changes in the scope of the consolidated financial reports compared
with the previous year's financial report
□ Applicable□ Not applicable
99Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
There were no changes in the scope of the Company's consolidated financial reports during the Reporting
Period.VIII. Appointment and dismissal of accounting firms
Currently employed accounting firm
Name of domestic accounting firm RSM China CPA LLP (Special General Partnership)
Remuneration of the domestic accounting firm (RMB ten
120
thousand)
Consecutive years for domestic accounting firms to provide audit
2
service
Name of the certified public accountant of the domestic
Tian Jingliang Zhu Aiyin and Fan Lihua
accounting firm
Consecutive years for Certified Public Accountants of domestic
2
accounting firms to provide audit service
Whether to hire a new accounting firm during the current period
□ Yes□ No
Employment of accounting firm for audit of internal controls financial consultant or sponsor
? Applicable□ Not applicable
IX. Delisting after disclosure of the annual report
□ Applicable□ Not applicable
X. Matters related to bankruptcy reorganization
□ Applicable□ Not applicable
There were no matter related to bankruptcy reorganization during the Reporting Period.XI. Major litigation and arbitration matters
□ Applicable□ Not applicable
The Company had no major litigation and arbitration matters during the Reporting Period.XII. Punishment and rectification
□ Applicable□ Not applicable
100Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
There were no penalties or rectifications during the Company's Reporting Period.XIII. Integrity condition of the Company its controlling shareholders and actual controllers
□ Applicable□ Not applicable
XIV. Major related transactions
1. Related transactions connected with the daily operation
□ Applicable□ Not applicable
The Company had no related transactions connected with daily operations during the Reporting Period.
2. Related transactions arising from acquisition and sale of assets or equity
□ Applicable□ Not applicable
The Company had no related transaction of acquisition or sale of assets or equity during the Reporting Period.
3. Related transactions of joint foreign investment
□ Applicable□ Not applicable
The Company had no related transaction of joint foreign investment during the Reporting Period.
4. Related creditor's right and debt transaction
□ Applicable□ Not applicable
The Company had no related creditor's right and debt transaction during the Reporting Period.
5. Transactions with associated financial companies
□ Applicable□ Not applicable
There was no deposit loan credit extension or other financial business between the Company and its related
financial companies or between the related parties.
6. Transactions between financial companies controlled by the Company and related parties
□ Applicable□ Not applicable
101Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
There was no deposit loan credit or other financial business between financial companies controlled by the
Company and related parties.
7. Other major related transactions
□ Applicable□ Not applicable
The Company had no other material related-party transactions during the Reporting Period.XV. Major contracts and their performance
1. Trusteeship contracting and lease
(1) Trusteeship
□ Applicable□ Not applicable
The Company had no trusteeship during the Reporting Period.
(2) Contracting
□ Applicable□ Not applicable
The Company had no contracting during the Reporting Period.
(3) Lease
□ Applicable□ Not applicable
The Company did not carry out leasing during the Reporting Period.
2. Material guarantee
□ Applicable □ Not applicable
Unit: RMB ten thousand
External guarantee of the Company and its subsidiaries (excluding guarantee for subsidiaries)
Date of
Whethe
disclosure
Guarant Actual Actual Counter Whether r the
Name of of the Collater
relevant ee date of amount Guarant guarant Guarante it was
guarant
guarantee al (if
announcem amount occurrenc guarante ee type ee (if e period complet
ee
object any)
ent of limit e ed any) ed
objects
were
guarantee
related
amount
102Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
limit parties
Guarantee of the Company to its subsidiaries
Date of
Whethe
disclosure
r the
of the
Guarant Actual Actual Counter Whether guarant
Name of relevant Collater
ee date of amount Guarant guarant Guarante it was ee
guarantee announcem al (if
amount occurrenc guarante ee type ee (if e period complet objects
object ent of any)
limit e ed any) ed were
guarantee
related
amount
parties
limit
Joint
and
Hong
several
Kong 2025/08/23 21086.4 3 years No No
liability
Topband
guarante
e
Joint
and
Topband several
2025/08/23 20000 3 years No No
Mexico liability
guarante
e
Total actual amount
Total amount of
of guarantee for
guarantee for subsidiaries
41086.4 subsidiaries during 0
approved during the
the Reporting Period
Reporting Period (B1)
(B2)
Total amount of Total actual balance
approved guarantee for of guarantee for
subsidiaries at the end of 41086.4 subsidiaries at the 0
the Reporting Period end of the Reporting
(B3) Period (B4)
Guarantee of the subsidiary to its subsidiaries
Date of
Whethe
disclosure
r the
of the
Guarant Actual Actual Counter Whether guarant
Name of relevant Collater
ee date of amount Guarant guarant Guarante it was ee
guarantee announcem al
amount occurrenc guarante ee type ee e period complet objects
object ent of
limit e ed (if any) ed were
guarantee (if any)
related
amount
parties
limit
3 years
Joint from
Huizhou and maturity
YAKO 2023/01/ several date of
2023/01/11 3000 No No
Automati 16 liability debts of
on guarante guarante
20000 e ed
parties
Huizhou Joint 3 years
YAKO 2023/04/ and from
2023/01/11 1200 No No
Automati 24 several maturity
on liability date of
103Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
guarante debts of
e guarante
ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2023/06/ several date of
2023/01/11 2000 No No
Automati 29 liability debts of
on guarante guarante
e ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2023/07/ several date of
2023/01/11 1200 No No
Automati 31 liability debts of
on guarante guarante
e ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2023/08/ several date of
2023/01/11 1779.74 No No
Automati 29 liability debts of
on guarante guarante
e ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2024/01/ several date of
2023/01/11 1500 No No
Automati 08 liability debts of
on guarante guarante
e ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2024/01/ several date of
2023/01/11 1685.98 No No
Automati 31 liability debts of
on guarante guarante
e ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2024/03/ several date of
2023/01/11 1500 No No
Automati 28 liability debts of
on guarante guarante
e ed
parties
Joint 3 years
Huizhou
and from
YAKO 2024/05/
2023/01/11 1250.82 several maturity No No
Automati 08
liability date of
on
guarante debts of
104Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
e guarante
ed
parties
3 years
Joint from
Huizhou and maturity
YAKO 2024/05/ several date of
2023/01/11 450.21 No No
Automati 28 liability debts of
on guarante guarante
e ed
parties
Total actual amount
Total amount of
of guarantee for During the Reporting Period the above master
guarantee for subsidiaries
0 subsidiaries during guarantee contracts were closed and the guarantees
approved during the
the Reporting Period were terminated.Reporting Period (C1)
(C2)
Total amount of Total actual balance
approved guarantee for of guarantee for During the Reporting Period the above master
subsidiaries at the end of 20000 subsidiaries at the guarantee contracts were closed and the guarantees
the Reporting Period end of the Reporting were terminated.
(C3) Period (C4)
Total amount of the corporate guarantee (i.e. the sum of the first three items)
Total incurred
Total amount of
amount of actual
guarantees approved
41086.4 guarantees provided 0
during the Reporting
during the Reporting
Period (A1+B1+C1)
Period (A2+B2+C2)
Total amount of Total actual balance
guarantee approved at the of guarantee at the
61086.40
end of the Reporting end of the Reporting
Period (A3+B3+C3) Period (A4+B4+C4)
The proportion of the total actual amount of
guarantee (A4+B4+C4) in the Company's net 0.00%
assets
Including:
Balance of guarantees provided to shareholders
real controlling parties and their related parties 0
(D)
Balance of debt guarantees directly or indirectly
provided to guaranteed parties with debt-to-asset 0
ratio above 70% (E)
Amount of guarantees with total amount
0
guaranteed exceeding 50% of net assets (F)
Total amount of above 3 items of guarantees
0
(D+E+F)
Explanation of details of composite guarantee
None.
105Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3. Entrusting others to manage cash assets
(1) Entrusted financial management
□ Applicable □ Not applicable
Overview of entrusted financial management during the Reporting Period
Unit: RMB ten thousand
Amount of entrusted financial
Product category Risk profile Overdue amount not recovered
management
Bank wealth management
Low risk 11244.00 0
products
Wealth management products
Medium- to high-risk 10021.90 0
of securities dealers
Specific situation of high-risk entrusted financial management with the significant single amount or low
security and poor liquidity
□ Applicable□ Not applicable
(2) Entrusted loans
□ Applicable□ Not applicable
The Company had no entrusted loans during the Reporting Period.
4. Others major contracts
□ Applicable□ Not applicable
There were no other significant contracts in the Reporting Period of the Company.XVI. Use of raised funds
□ Applicable□ Not applicable
The Company used no raised funds during the Reporting Period.XVII. Explanation of other major matters
□ Applicable□ Not applicable
The Company had no other major matters to be explained during the Reporting Period.
106Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
XVIII. Major matters of subsidiaries of the Company
□ Applicable □ Not applicable
1. In July 2025 the Company's wholly-owned subsidiary Shenzhen Topband Digital Energy Co. Ltd.
invested in the establishment of a wholly-owned sub-subsidiary Guangzhou Topband Digital Energy Co. Ltd.with a registered capital of RMB 1 million.
107Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section VI Share Change and Shareholders
I. Share change
1. Share change
Unit: Share
Before change Increase or decrease of change this time (+ -) After change
Conversion
Issuance Stock of
Proportio Other Subtota Proportio
Number of new divid accumulatio Number
n s l n
shares end n fund into
shares
I. Shares with non-
17574514214.10%000-1-117574514114.10%
tradable conditions
1. Shares held by the
00.00%0000000.00%
state
2. Shares held by state-
00.00%0000000.00%
owned legal persons
3. Shares held by other
17574514214.10%000-1-117574514114.10%
domestic capital
Including: shares
held by domestic legal 0 0.00% 0 0 0 0 0 0 0.00%
persons
Shares held by
17574514214.10%000-1-117574514114.10%
domestic natural person
4. Shares held by
00.00%0000000.00%
foreign investment
Including: shares
held by overseas legal 0 0.00% 0 0 0 0 0 0 0.00%
persons
Shares held by
00.00%0000000.00%
overseas natural persons
II. Shares with unlimited
107108984685.90%00011107108984785.90%
tradable conditions
1. A shares 1071089846 85.90% 0 0 0 1 1 1071089847 85.90%
2. Domestic listed
00.00%0000000.00%
foreign shares
3. Overseas listed
00.00%0000000.00%
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total number of
1246834988100.00%000001246834988100.00%
shares
Reasons for share change
□ Applicable □ Not applicable
108Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
In 2024 due to the cancellation of restricted shares the Company manually applied for adjustment to the
locked-in shares of the senior executives; at the beginning of 2025 these shares were recalculated by CSDC.The calculation difference of one share resulted from rounding related to the calculation method.Approval of share change
□ Applicable□ Not applicable
Transfer of share change
□ Applicable□ Not applicable
The impact of share changes on financial indicators such as basic earnings per share and diluted earnings
per share in the latest year and the latest period net assets per share attributable to ordinary shareholders of the
Company etc.□ Applicable□ Not applicable
Other contents deemed necessary by the Company or required to be disclosed by the securities regulatory
institution
□ Applicable□ Not applicable
2. Changes in non-tradable shares
□ Applicable □ Not applicable
Unit: Share
Number of Number of
Number of non-
non-tradable Increase number of non-tradable Date of lifting
Name of tradable shares Reasons for non-
shares at the non-tradable shares shares at the sales
shareholder desterilized in the trading
beginning of in the current period end of the restriction
current period
the period period
In 2024 due to
the cancellation of
restricted shares
the Company
manually applied
for adjustment to
Peng the locked-in
36426750136426742025/1/1
Ganquan shares of the
senior executives;
at the beginning
of 2025 these
shares were
recalculated by
CSDC. The
109Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
calculation
difference of one
share resulted
from rounding
related to the
calculation
method.Total 3642675 0 1 3642674 -- --
II. Issuance and listing of securities
1. Issuance of securities (excluding preferred shares) during the Reporting Period
□ Applicable□ Not applicable
2. Explanation of changes in the Company's total number of shares and shareholder structure and
changes in the Company's structure of assets and liabilities
□ Applicable□ Not applicable
3. Existing internal employee shares
□ Applicable□ Not applicable
III. Shareholders and actual controllers
1. Number of shareholders and shareholding situation of the Company
Unit: Share
Total
Total
number of
number of
preferred
ordinary
shareholder The total number of
sharehold
s with preferred shareholders
Total number of ers at the
voting whose voting rights
ordinary end of the
rights were restored at the end
shareholders at 107647 previous 108427 0 0
restored at of the previous month
the end of the month
the end of before the disclosure
Reporting Period before the
the date of the annual report
disclosure
Reporting (if any) (see Note 8)
date of the
Period (if
annual
any) (see
report
Note 8)
Shareholding situation of shareholders holding more than 5% of the shares or top 10 shareholders (excluding shares lent through
refinancing)
Name of Nature of Proportio Number of Changes in Number of Number of Pledge marking or
shareholder shareholders n of shares held at increase or shares with shares freezing
110Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
shareholdi the end of the decrease limited with
ng Reporting during the tradable unlimited Share
Period Reporting conditions tradable Numberstatus
Period conditions
Domestic
15900653
Wu Yongqiang natural 17.00% 212008715 0 53002179 Pledge 38860000
6
person
Industrial Bank
Co. Ltd. - Not
Others 3.13% 39027700 29839500 0 39027700 0
ChinaAMC CSI applicable
Robot ETF
Domestic
Not
Xie Renguo natural 2.05% 25601303 1426215 0 25601303 0
applicable
person
Domestic
Not
Ji Shuhai natural 1.87% 23329130 -300000 0 23329130 0
applicable
person
China
Construction
Bank Corporation Not
Others 1.51% 18781886 18781886 0 18781886 0
- E Fund China applicable
Securities Robot
Industry ETF
Guotai Haitong
Securities Co. Not
Others 1.31% 16300329 13147329 0 16300329 0
Ltd. - Tianhong applicable
CSI Robot ETF
China Merchants
Not
Bank – Southern Others 0.92% 11430200 1133300 0 11430200 0
applicable
CSI 1000 ETF
Domestic
Not
Ma Wei natural 0.68% 8519734 0 6389800 2129934 0
applicable
person
Domestic
Dongguan Onlink non-state- Not
0.59%7360500-409300073605000
Industry Co. Ltd. owned legal applicable
person
China Merchants
Bank Co. Ltd. - Not
Others 0.58% 7227280 1705396 0 7227280 0
China Securities applicable
CSI 1000 ETF
The top 10 shareholders of
strategic investors or general legal
Not applicable
persons due to placement of new
shares (if any) (see Note 3)
Except that Industrial Bank Co. Ltd. - ChinaAMC CSI Robot ETF and China Merchants Bank Co.Explanation of the above
Ltd. - China Securities CSI 1000 ETF have the same fund manager the Company is unaware of any
shareholders' relationship or
connection among other shareholders or whether other shareholders are persons acting in concern
concerted action
as defined in the Acquisition Management Measures for Listed Companies.Explanation of the above
shareholders' entrusting/entrusted
Not applicable
voting rights and waiver of voting
rights
111Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Special explanations for the
existence of special repurchase
At the end of the Reporting Period the Company held 18045600 shares in total through the special
accounts among the top 10
securities account for repurchase accounting for 1.45% of the total equity issued by the Company.shareholders (if any) (see Note
10)
Shareholding of the top 10 shareholders with unlimited tradable conditions (excluding shares lent through refinancing and executives
lock-in shares)
Type of shares
Number of shares held with unlimited tradable conditions at the end of
Name of shareholder
the Reporting Period Type of Number
shares
Wu Yongqiang 53002179 A shares 53002179
Industrial Bank Co. Ltd. -
39027700 A shares 39027700
ChinaAMC CSI Robot ETF
Xie Renguo 25601303 A shares 25601303
Ji Shuhai 23329130 A shares 23329130
China Construction Bank
Corporation - E Fund China 18781886 A shares 18781886
Securities Robot Industry ETF
Guotai Haitong Securities Co.
16300329 A shares 16300329
Ltd. - Tianhong CSI Robot ETF
China Merchants Bank – Southern
11430200 A shares 11430200
CSI 1000 ETF
Dongguan Onlink Industry Co.
7360500 A shares 7360500
Ltd.China Merchants Bank Co. Ltd. -
7227280 A shares 7227280
China Securities CSI 1000 ETF
Hong Kong Securities Clearing
7046441 A shares 7046441
Company Ltd.Explanation of the relationship or
concerted action between the top
Except that Industrial Bank Co. Ltd. - ChinaAMC CSI Robot ETF and China Merchants Bank Co.
10 shareholders with unlimited
Ltd. - China Securities CSI 1000 ETF have the same fund manager the Company is unaware of any
tradable conditions and between
connection among other shareholders or whether other shareholders are persons acting in concern
the top 10 shareholders with
as defined in the Acquisition Management Measures for Listed Companies.unlimited tradable conditions and
the top 10 shareholders
Explanation of the participation of
the top 10 ordinary shareholders
Shareholder Mr. Xie Renguo holds 25601303 shares through the credit securities account.in securities margin trading (if
any) (see Note 4)
Participation of shareholders holding more than 5% of the shares top 10 shareholders and top 10 shareholders
with unlimited tradable conditions in lending of shares through refinancing business
□ Applicable□ Not applicable
Changes in top 10 shareholders and top 10 shareholders with unlimited tradable conditions due to lending/return
of shares through refinancing compared with the end of the previous period
□ Applicable□ Not applicable
Did the top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions
112Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
conduct the agreed repurchase transactions during the Reporting Period
□ Yes□ No
The top 10 ordinary shareholders and the top 10 ordinary shareholders with unlimited sales conditions did not
conduct the agreed repurchase transactions during the Reporting Period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: controlled by natural person
Type of controlling shareholder: natural person
Obtained the right of residence in another
Name of controlling shareholder Nationality
country or region
Wu Yongqiang China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co. Ltd. since 2009
Equity information on other domestic and
foreign listed companies controlled or
None
invested in by him during the Reporting
Period
Change of controlling shareholders during the Reporting Period
□ Applicable□ Not applicable
The controlling shareholder of the Company did not change during the Reporting Period.
3. The Company's actual controller and its person acting in concert
Nature of actual controller: domestic natural person
Type of actual controller: natural person
Relationship with actual Obtained the right of residence
Name of actual controller Nationality
controller in another country or region
Wu Yongqiang In person China No
Main occupation and position Served as the Chairman and President of Shenzhen Topband Co. Ltd. since 2009
Information on domestic and
foreign listed companies
None
controlled by him in the past
10 years
Change of actual controller during the Reporting Period
□ Applicable□ Not applicable
113Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The actual controller of the Company did not change during the Reporting Period.Block Diagram of Property Rights and Control Relationship between the Company and the Actual Controller
Wu Yongqiang
Shenzhen Topband Co. Ltd.The actual controller controls the Company by means of trust or other ways of assets management
□ Applicable□ Not applicable
4. The cumulative number of pledged shares held by the controlling shareholder or the largest
shareholder and its persons acting in concert accounts for 80% of the total number of shares held by
them in the Company
□ Applicable□ Not applicable
5. Other institutional shareholders holding over 10% of the shares
□ Applicable□ Not applicable
6. Restrictions on the reduction of shares held by the controlling shareholder the actual controller the
reorganizer and other commitment entities
□ Applicable□ Not applicable
IV. Specific implementation of share repurchase during the Reporting Period
Implementation progress of share repurchase
□ Applicable□ Not applicable
Implementation progress of reduction of repurchased shares by centralized competitive bidding
□ Applicable□ Not applicable
V. Information on preferred shares
□ Applicable□ Not applicable
114Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The Company did not have preferred shares during the Reporting Period.
115Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section VII Relevant Information of Bonds
□ Applicable□ Not applicable
116Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Section VIII Financial Report
I. Audit report
Type of audit opinion Standard unqualified opinion
Date of signing the audit report March 31 2026
Name of audit institution RSM China CPA LLP (Special General Partnership)
Document number of audit report RCSZ [2026] No. 518Z0083
Name of certified public accountant Tian Jingliang Zhu Aiyin and Fan Lihua
Main text of audit report
All shareholders of Shenzhen Topband Co. Ltd.:
I. Audit opinion
We have audited the financial statements of Shenzhen Topband Co. Ltd. (hereinafter referred to as
"Topband") including the consolidated and balance sheet of parent company as of December 31 2025 and the
consolidated and income statement of parent company the consolidated and parent company cash flow
statement and the consolidated and parent company statement of change in owner's equity of 2025 as well as
related notes to the financial statements.In our opinions the attached financial statements have been prepared in accordance with the Accounting
Standards for Business Enterprises in all significant aspects and given fair views on the consolidated and parent
company financial positions of Topband as of December 31 2025 and the consolidated and parent company
operating results as well as cash flow of 2025.II. Basis for the formation of audit opinions
We have carried out audit in compliance with Auditing Standards for Certified Public Accountants of
China. Our responsibility under these standards is further described in "Certified Public Accountant's
Responsibility for Audit of Financial Statements" in the audit report. In accordance with the Code of
Professional Ethics for Chinese Certified Public Accountants and the Independence Guidelines for Chinese
Certified Public Accountants we are independent of Topband and have complied with the provisions on the
auditing of financial statements of public interest entities in the Independence Guidelines and fulfilled other
responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
117Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
III. Key audit matters
The key items for audit are items that we consider the most important for the audit of the financial
statements of the current period according to the professional judgment. The response of these items is based on
an audit of the overall financial statements and the formation of audit opinions and we do not individually
express views on these items.(I) Revenue recognition
1. Description of matters
For relevant information disclosure details refer to Notes "III. 27" and "V. 46" to the financial statement.Topband is mainly engaged in the R&D production and sales of intelligent control system solutions. It has
two sales models: domestic sales and export. There are differences in the time of revenue recognition for
different sales methods. Since revenue is one of the key performance indicators of Topband there may be an
inherent risk that the management of Topband (hereinafter referred to as the management) may achieve specific
goals or expectations through inappropriate revenue recognition. Therefore we identified revenue recognition
as a key audit matter.
2. Handling during the audit
The relevant procedures we have implemented for revenue recognition mainly include:
(1) Understand the key internal controls related to revenue recognition evaluate the design of these
controls and test the operating effectiveness of related internal controls;
(2) Understand and inquire with the relevant personnel of the Company check sales contracts or orders
and evaluate whether the revenue recognition method is appropriate based on the main contract terms and
product features;
(3) Implement analytical procedures for revenue and gross profit margin by month product and customer
to identify whether there are significant or abnormal fluctuations;
(4) For domestic sales revenue check the supporting documents related to revenue recognition by
sampling including sales contracts or orders sales invoices outbound delivery orders transport documents and
customer receipts/statements. For export revenue obtain the electronic port information and check it against the
book records and check the supporting documents such as sales contracts or orders export declarations and
sales invoices by sampling;
118Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(5) On the basis of the confirmation of accounts receivable send confirmation letters to major customers
on a sampling basis to evaluate the authenticity of sales revenue and the accuracy of revenue recognition;
(6) On a sampling basis check the revenue recognized before and after the balance sheet date against the
supporting documents such as outbound delivery orders customer receipts and export declarations to evaluate
whether the revenue is recognized in the appropriate period;
(7) Check whether the information related to revenue has been properly presented and disclosed in the
financial statement.Based on the above work results we believe that the relevant evidence can support the management's
judgment and estimates on revenue recognition.(II) Impairment of accounts receivable
1. Description of matters
For relevant information disclosure details refer to Notes "III. 10" and "V. 4" to the financial statement.As of December 31 2025 the book balance of accounts receivable of Topband was RMB
3216828011.05 the bad debt provision was RMB 192158635.04 and the book value was RMB
3024669376.01. Due to the large amount of accounts receivable and the fact that the impairment test of
accounts receivable involves the management's significant judgment we identified the impairment of accounts
receivable as a key audit matter.
2. Handling during the audit
The relevant procedures we have implemented for impairment of accounts receivable mainly include:
(1) Understand the key internal controls related to impairment of accounts receivable evaluate the design
of these controls and test the operating effectiveness of related internal controls;
(2) Re-check the subsequent actual write-off or write-back of accounts receivable for which bad debt
provisions were made in previous years and evaluate the accuracy of the management's past forecasts;
(3) Re-check the management's relevant considerations and objective evidence in the impairment test of
accounts receivable and evaluate whether the management has adequately identified accounts receivable that
have been impaired;
(4) For accounts receivable with expected credit losses measured on a single basis obtain and examine the
management's forecast of expected cash flows received evaluate the reasonableness of key assumptions and the
accuracy of data used in the forecast and check with external evidence obtained;
119Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(5) Regarding the provision for impairment of accounts receivable for accounts receivable with expected
credit losses measured on a portfolio basis evaluate the rationality of the management's division of portfolios
based on credit risk characteristics; evaluate the rationality of the comparison table of accounts receivable aging
and loss given default prepared by the management based on the historical credit loss experience and forward-
looking estimates of the portfolios with similar credit risk characteristics; re-check the accuracy and
completeness of the data used by the management (including accounts receivable aging historical loss rate and
migration rate) and whether the calculation of bad debt provisions is accurate;
(6) Perform independent confirmation procedures for significant accounts receivable;
(7) Check the post-period collection of accounts receivable and evaluate the rationality of the
management's provision for bad debts of accounts receivable;
(8) Check whether the information related to impairment of accounts receivable has been properly
presented in the financial statement.Based on the above work results we believe that the relevant evidence can support the management's
judgment and estimates on impairment of accounts receivable.IV. Other information
Topband's management (hereinafter referred to as the management) is responsible for other information.Other information includes the information covered in Topband's annual report for 2025 but does not include
financial statements and our audit reports.We do not cover other information in the audit opinions issued for the financial statements nor do we have
any form of attestation conclusions on other information.In conjunction with our audit of the financial statements our responsibility is to read other information
and in this process consider whether other information is materially inconsistent with the financial statements
or what we have learned in the audit process or it appears to be significant misstatement.Based on the work we have carried out we shall report the fact if we determine the existence of a
significant misstatement in other information. We have nothing to report in this regard. We have nothing to
report in this regard.V. Responsibility of the management and the governance to the financial statements
The management is responsible for preparing the financial statements in accordance with the provisions of
the Accounting Standards for Business Enterprises to make it fair reflection then designing implementing and
120Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
maintaining the necessary internal controls so that the financial statements do not have any significant
misstatement resulting from fraud or error.When the financial statements were prepared the management was responsible for assessing Topband's
ability to continue as a going concern disclosing the matters related to the going concern (if applicable) and
applying the going concern assumption unless the management planned to liquidate Topband terminated
operation or had no other practical option.The governance level is responsible for overseeing the financial reporting process of Topband.VI. Certified public accountant's responsibility for audit of 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 audit 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 the audit standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.As part of an audit in accordance with the audits standards we exercise professional judgment and
maintain professional skepticism throughout the audit. Meanwhile we also execute the following works:
Meanwhile we also execute the following works:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud
or error design and perform audit procedures responsive to those risks and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. Since fraud may involve collusion forgery
intentional omission false representation or not be subject to internal control the risk of failure to find the
significant misstatement due to fraud is higher than the risk of failure to find a major misstatement due to errors.
(2) Understand internal controls related to the audit in order to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the going-concern assumption used by the management. At the
same time on the basis of the acquired audit evidence make a conclusion whether there is a significant
uncertainty in matters or circumstances that cause significant doubts about constant operational capacity of
121Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Topband. If we come to the conclusion that there are significant uncertainties the audit guidelines require that
we draw the attention of the report users to the relevant disclosures in the financial statements in the audit report;
if the disclosure is not sufficient we shall issue a modified audit report. Our conclusion is based on the
information that was available as of the date of the audit report. However future events or conditions may cause
Topband to discontinue operation.
(5) 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.
(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or business
activities of Topband to make an audit opinion on the financial statements. We are responsible for guiding
supervising and conducting the Group's audit and assuming full responsibility for the audit opinion.We communicate with those charged with governance regarding the planned audit scope schedule and
significant audit findings including any notable deficiencies in internal control identified during the audit.We also provide a statement to the governance level regarding compliance with the independence-related
professional ethics requirements and communicate with the governance level on all the relationships and other
matters that may reasonably be considered to affect our independence as well as relevant preventive measures
(if applicable).Among items discussed with the governance level we determine those items most important to the audit of
the financial statements of the current period and constitute a key item for audit. We describe these matters in
our audit report unless laws or regulations prohibit public disclosure or in rare circumstances if the negative
consequences of communicating a matter outweigh the public interest or benefits we determine that the matter
shall not be communicated in the audit report.II. Financial statements
The unit of statements in the financial notes is: RMB
1. Consolidated balance sheet
Prepared by: Shenzhen Topband Co. Ltd.December 31 2025
Unit: RMB
Items Ending balance Beginning balance
Current assets:
122Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Monetary capital 1797447784.44 1713976263.34
Settlement of provisions
Lending funds
Trading financial assets 538102481.43 739448691.77
Derivative financial assets
Notes receivable 24439539.50 48461335.38
Accounts receivable 3024669376.01 2992784497.73
Financing of accounts receivable 138461638.53 131217672.56
Prepayments 81982725.00 26932435.21
Premiums receivable
Reinsurance premiums receivable
Reinsurance contract reserves
receivable
Other receivables 48377219.07 38621875.39
Including: interest receivable
Dividends receivable
Repurchase of financial assets for
resale
Inventory 2195746866.60 1810510580.57
Including: data resources
Contractual assets 601601.95 0.00
Assets held for sale
Non-current assets due within one year 4798251.33 0.00
Other current assets 526014994.63 359556873.79
Total current assets 8380642478.49 7861510225.74
Non-current assets:
Loans and advances granted
Debt investment
Other debt investment 40843277.78 0.00
Long-term receivables 15592885.45 0.00
Long-term equity investment 40463113.36 38959272.14
Other equity instrument investments 51622482.00 45012776.00
Other non-current financial assets 0.00 0.00
Investment property 97727652.86 100566027.85
Fixed assets 2888394751.10 2737959115.57
Construction in progress 803965663.22 768223670.57
Productive biological assets
Oil and gas assets
Right-of-use assets 50405996.42 67227073.11
Intangible assets 711117962.19 643784398.36
Including: data resources
123Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Development expenditure 57633484.45 125214759.99
Including: data resources
Goodwill 78109945.18 108769151.72
Long-term deferred expenses 195703437.02 188924525.82
Deferred tax assets 122181079.12 102678537.20
Other non-current assets 33202988.26 60036426.17
Total non-current assets 5186964718.41 4987355734.50
Total assets 13567607196.90 12848865960.24
Current liabilities:
Short-term loans 1392469964.76 1224214110.41
Loan from the Central Bank
Borrowed funds
Financial liabilities held for trading 5161.00 444281.13
Derivative financial liabilities
Notes payable 1578338573.85 1194662037.01
Accounts payable 2331050516.19 2310872258.62
Accounts collected in advance 4903162.70 3915096.80
Contractual liabilities 116456170.61 131435683.97
Financial assets sold for repurchase
Deposit absorption and interbank
deposit
Acting trading securities
Acting underwriting securities
Employee compensation payable 262968616.95 276437375.57
Taxes payable 49594738.12 48126598.87
Other account payable 278177897.89 450563068.15
Including: interest payable
Dividends payable
Service charges and commissions
payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
43122892.52136488765.75
year
Other current liabilities 64026908.02 77931203.31
Total current liabilities 6121114602.61 5855090479.59
Non-current liabilities:
Insurance contract reserve
Long-term loans 404450000.00 245740474.88
Bonds payable
Including: preferred shares
124Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Perpetual capital securities
Lease liabilities 22919126.35 42076530.36
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 14047240.76 13358627.74
Deferred tax liabilities 23412745.21 20219592.39
Other non-current liabilities
Total non-current liabilities 464829112.32 321395225.37
Total liabilities 6585943714.93 6176485704.96
Owner's equity:
Share capital 1246834988.00 1246834988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2149700352.02 2089578011.17
Minus: treasury shares 155694936.18 155694936.18
Other comprehensive income -60340869.44 -32276903.98
Special reserves
Surplus reserve 267001620.24 248359297.47
General risk provision
Retained earnings 3534742722.91 3275527294.98
Total owner's equity attributable to the
6982243877.556672327751.46
parent company
Minority shareholders' equity -580395.58 52503.82
Total owners' equity 6981663481.97 6672380255.28
Total liabilities and owners' equity 13567607196.90 12848865960.24
Legal representative: Wu Accounting Head: Luo Muchen Accounting Department Head: Luo
Yongqiang Muchen
2. Balance sheet of parent company
Unit: RMB
Items Ending balance Beginning balance
Current assets:
Monetary capital 895618876.75 737724723.09
Trading financial assets 430679393.16 353132886.74
Derivative financial assets
125Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Notes receivable 13283445.24 36071948.51
Accounts receivable 1872692266.99 1749091674.76
Financing of accounts receivable 62564844.60 36369236.89
Prepayments 15506852.80 16727322.45
Other receivables 581416476.95 269840253.20
Including: interest receivable
Dividends receivable
Inventory 447066836.78 376080117.00
Including: data resources
Contractual assets
Assets held for sale
Non-current assets due within one year
Other current assets 32333183.17 25734118.81
Total current assets 4351162176.44 3600772281.45
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investment 4325091223.15 4299877436.17
Other equity instrument investments
Other non-current financial assets
Investment property
Fixed assets 163895568.16 182839226.06
Construction in progress 13794732.71 10857827.42
Productive biological assets
Oil and gas assets
Right-of-use assets 15249937.08 12182431.45
Intangible assets 257031503.44 186874312.66
Including: data resources
Development expenditure 38019941.44 98813454.74
Including: data resources
Goodwill
Long-term deferred expenses 8973756.54 12473333.17
Deferred tax assets 20720774.20 4272297.23
Other non-current assets 5872029.97 12437360.68
Total non-current assets 4848649466.69 4820627679.58
Total assets 9199811643.13 8421399961.03
Current liabilities:
Short-term loans 60689741.84 100000000.00
Financial liabilities held for trading 5161.00 345711.00
126Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Derivative financial liabilities
Notes payable 2082238616.61 1895000000.00
Accounts payable 711506747.61 780481701.30
Accounts collected in advance
Contractual liabilities 39443085.99 40861225.32
Employee compensation payable 137049527.45 152318345.79
Taxes payable 11802737.79 22347082.81
Other account payable 986310419.01 365916776.73
Including: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
9085751.904262274.85
year
Other current liabilities 30798404.76 56848533.19
Total current liabilities 4068930193.96 3418381650.99
Non-current liabilities:
Long-term loans 0.00 30250000.00
Bonds payable
Including: preferred shares
Perpetual capital securities
Lease liabilities 7107489.37 8978187.76
Long-term payables
Long-term employee compensation
payable
Estimated liabilities
Deferred income 2407106.41 2953580.27
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 9514595.78 42181768.03
Total liabilities 4078444789.74 3460563419.02
Owner's equity:
Share capital 1246834988.00 1246834988.00
Other equity instruments
Including: preferred shares
Perpetual capital securities
Capital reserves 2271798674.55 2211676333.70
Minus: treasury shares 155694936.18 155694936.18
Other comprehensive income
Special reserves
Surplus reserve 266973101.78 248330779.01
Retained earnings 1491455025.24 1409689377.48
127Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Total owners' equity 5121366853.39 4960836542.01
Total liabilities and owners' equity 9199811643.13 8421399961.03
3. Consolidated income statement
Unit: RMB
Items 2025 2024
I. Total operating income 11082209741.52 10501219821.54
Including: operating income 11082209741.52 10501219821.54
Interest income
Premiums earned
Service charge and commission income
II. Total operating cost 10575632353.76 9693118141.20
Including: operating cost 8695584065.13 8088901865.21
Interest expense
Service charge and commission payment
Surrender value
Net compensation expenditure
Net reserve amount set aside for insurance liability
contracts
Policy dividend payment
Reinsurance expenses
Taxes and surcharges 59537391.46 67144726.40
Selling expenses 458236603.48 379247836.25
Overheads 443268335.08 401415660.16
R&D expenses 919433295.26 809006999.25
Finance expenses -427336.65 -52598946.07
Including: interest expenses 29799577.30 47188375.93
Interest income 25211229.18 36970341.29
Plus: other income 66639082.52 73485447.86
Investment income (loss marked with "-") 14495148.99 3945501.92
Including: income from investment in associated
1503841.221211092.84
enterprises and joint ventures
Derecognized gains from financial assets
measured at amortized cost
Exchange gains (loss marked with "-")
Net exposure hedging income (loss marked with "-")
Loss from changes in fair value (loss marked with "-") 4205906.12 -5950391.17
Credit impairment losses (loss marked with "-") -10631994.50 -20502203.70
Asset impairment loss (loss marked with "-") -124778802.02 -80133065.08
Assets disposal revenue (loss marked with "-") -53094091.72 -2689826.55
III. Operating profits (loss marked with "-") 403412637.15 776257143.62
128Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Plus: non-operating income 9470022.46 10883626.59
Minus: non-operating expenses 10763138.27 12316804.97
IV. Total profit (total loss marked with "-") 402119521.34 774823965.24
Minus: income tax expense 38879412.88 102939389.30
V. Net profit (net loss marked with "-") 363240108.46 671884575.94
(I) Classification according to business continuity
1. Net profit from continuing operations (net loss marked
363240108.46671884575.94
with "-")
2. Net profit of discontinued operation (net loss marked
with "-")
(II) Classification according to ownership
1. Net income attributable to the shareholders of the parent
363873007.86671442652.91
company
2. Profits and losses of minority shareholders -632899.40 441923.03
VI. Net after-tax amount of other comprehensive income -28063965.46 -44208933.39
Net after-tax amount of other comprehensive income
-28063965.46-44208933.39
attributable to the owner of the parent company
(I) Other comprehensive income that cannot be reclassified
4957279.502864869.50
into profits or losses
1. Re-measurement of changes in the defined benefit
plans
2. Other comprehensive income that cannot be
transferred through profit or loss under the equity method
3. Changes in fair value of other equity instrument
4957279.502864869.50
investment
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into
-33021244.96-47073802.89
profits and losses
1. Other comprehensive income that can be transferred
into profits or losses under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Provisions for credit impairment of other debt
investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency financial
-33021244.96-47073802.89
statements
7. Others
Net after-tax amount of other comprehensive income
0.000.00
attributed to the minority of shareholders
VII. Total comprehensive income 335176143.00 627675642.55
Total consolidated income attributable to the owners of the
335809042.40627233719.52
parent company
Total consolidated income attributable to minority
-632899.40441923.03
shareholders
VIII. Earnings per Share:
(I) Basic earnings per share 0.30 0.55
129Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(II) Diluted earnings per share 0.29 0.55
In case of business merger involving enterprises under the same control in the current period the net profit
realized by the merged party before the merger is: RMB 0.00 and the net profit realized by the merged party in
the prior period is: RMB 0.00.Legal representative: Wu Accounting Head: Luo Muchen Accounting Department Head: Luo
Yongqiang Muchen
4. Income statement of parent company
Unit: RMB
Items 2025 2024
I. Operating income 6251131750.31 5738376664.57
Minus: operating cost 5009355309.80 4563890274.95
Taxes and surcharges 21619627.50 21437728.60
Selling expenses 321973995.19 259782575.43
Overheads 212590975.92 200460896.17
R&D expenses 509321396.95 407631380.87
Finance expenses 11553265.05 -45239671.09
Including: interest expenses 16730847.07 15821584.83
Interest income 10299252.69 15552814.78
Plus: other income 16470806.84 19335173.15
Investment income (loss marked with "-") 8722550.37 -1408045.63
Including: income from investment in associated
-491.12-13252.87
enterprises and joint ventures
Derecognized gains from financial assets
measured at amortized cost
Net exposure hedging income (loss marked with "-")
Loss from changes in fair value (loss marked with "-") 1322345.42 -345711.00
Credit impairment losses (loss marked with "-") -829459.03 -9752828.03
Asset impairment loss (loss marked with "-") -16721035.48 -25067799.74
Assets disposal revenue (loss marked with "-") -1071027.08 -34440.81
II. Operating profit (loss marked with "-") 172611360.94 313139827.58
Plus: non-operating income 725847.08 939545.20
Minus: non-operating expenses 4387536.15 1589881.99
III. Total profit (total loss marked with "-") 168949671.87 312489490.79
Minus: income tax expense -17473555.82 23365881.98
IV. Net profit (net loss marked with "-") 186423227.69 289123608.81
(I) Net profit from continuing operation (net loss marked with
186423227.69289123608.81
"-")
130Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(II) Net profit from termination of operation (net loss marked
with "-")
V. Net after-tax amount of other comprehensive income
(I) Other comprehensive income that cannot be reclassified
into profits or losses
1. Re-measurement of changes in the defined benefit
plans
2. Other comprehensive income that cannot be
transferred through profit or loss under the equity method
3. Changes in fair value of other equity instrument
investment
4. Changes in fair value of enterprise's own credit risk
5. Others
(II) Other comprehensive income that is reclassified into
profits and losses
1. Other comprehensive income that can be transferred
into profits or losses under the equity method
2. Changes in fair value of other debt investments
3. Amount of financial assets reclassified into other
comprehensive income
4. Provisions for credit impairment of other debt
investment
5. Cash flow hedging reserve
6. Difference in translation of foreign currency financial
statements
7. Others
VI. Total comprehensive income 186423227.69 289123608.81
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Items 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods and rendering of services 10623925748.27 10027635954.13
Net increase in deposits with other banks
Net increase in borrowing from the central bank
Net increase in funds borrowed from other financial
institutions
Cash from receipt of original insurance contract premiums
Receipt of net cash for reinsurance operations
Net increase in savings and investment funds of the insured
Cash from receipt of interest service charges and
commissions
Net increase in borrowed funds
Net increase in funds from repurchase operations
131Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Net cash received for acting trading securities
Refund of tax and levies 539318307.28 525526705.58
Other cash received related to operating activities 98494091.10 110235242.98
Subtotal of cash inflow from operating activities 11261738146.65 10663397902.69
Cash paid for purchasing goods and accepting labor services 7876432480.08 7037594518.83
Net increase in loans and advances of clients
Net increase in deposits with central banks and interbanks
Cash in compensation funds paid for the original insurance
contract
Net increase in lending funds
Cash for payment of interest service charges and
commissions
Cash for payment of policy dividends
Cash paid to and for employees 2135121529.55 1790998914.62
Tax payments 226997645.89 308701013.72
Other cash paid related to operating activities 344819550.84 434152737.27
Subtotal of cash outflows from operating activities 10583371206.36 9571447184.44
Net cash flow from operating activities 678366940.29 1091950718.25
II. Cash flow from investing activities:
Cash received from recovery of investments 552198415.27 768564670.00
Cash received from investment income 12148043.00 12332161.27
Net cash recouped from disposal of fixed assets intangible
11847193.246565626.23
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received relating to investment activities 2235246.30
Subtotal of cash inflows from investment activities 576193651.51 789697703.80
Cash paid for the purchase and construction of fixed assets
726995083.85748083364.73
intangible assets and other long-term assets
Cash paid for investment 421219000.00 922446272.51
Net increase in pledged loans
Net cash obtained from subsidiaries and other business units
Other cash paid related to investment activities 56416530.09 924300.00
Subtotal of cash outflows from investment activities 1204630613.94 1671453937.24
Net cash flow from investment activities -628436962.43 -881756233.44
III. Cash flow from financing activities:
Cash received from absorbing investment 0.00 0.00
Including: cash received by subsidiaries' absorption of
minority shareholders' investment
Cash received from loan 2554257420.22 1124511608.03
Other cash received relating to financing activities 3268956.29 6009728.26
Subtotal of cash inflows from financing activities 2557526376.51 1130521336.29
Cash paid for repayments of debts 2434188066.06 881199244.99
132Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Cash paid to distribute dividends profits or pay interest 103148928.21 117906350.13
Including: dividends and profits paid by subsidiaries to
minority shareholders
Other cash paid related to financing activities 42474292.37 311536595.48
Subtotal of cash outflows from financing activities 2579811286.64 1310642190.60
Net cash flow from financing activities -22284910.13 -180120854.31
IV. Impact of exchange rate fluctuations on cash and cash
-4121340.1171535198.47
equivalents
V. Net increase in cash and cash equivalents 23523727.62 101608828.97
Plus: balance of cash and cash equivalents at the beginning of
1596352534.731494743705.76
the period
VI. Balance of cash and cash equivalents at the end of the period 1619876262.35 1596352534.73
6. Cash flow statement of the parent company
Unit: RMB
Items 2025 2024
I. Cash flow from operating activities:
Cash received from sales of goods and rendering of services 5240490051.20 4793886475.54
Refund of tax and levies 239116666.99 230485466.78
Other cash received related to operating activities 322072760.21 2460306547.03
Subtotal of cash inflow from operating activities 5801679478.40 7484678489.35
Cash paid for purchasing goods and accepting labor services 4083985608.24 3142647984.46
Cash paid to and for employees 916130348.65 617078387.87
Tax payments 39057761.16 32363399.12
Other cash paid related to operating activities 217836625.79 2741016182.55
Subtotal of cash outflows from operating activities 5257010343.84 6533105954.00
Net cash flow from operating activities 544669134.56 951572535.35
II. Cash flow from investing activities:
Cash received from recovery of investments 240000000.00 300000000.00
Cash received from investment income 8723041.49 3948764.24
Net cash recouped from disposal of fixed assets intangible
23192625.202209115.90
assets and other long-term assets
Net cash received from disposal of subsidiaries and other
business units
Other cash received relating to investment activities 2235246.30
Subtotal of cash inflows from investment activities 271915666.69 308393126.44
Cash paid for the purchase and construction of fixed assets
93227880.53169407576.30
intangible assets and other long-term assets
Cash paid for investment 366219000.00 436555100.00
Net cash obtained from subsidiaries and other business units 0.00 0.00
Other cash paid related to investment activities 56416530.09 543000.00
Subtotal of cash outflows from investment activities 515863410.62 606505676.30
Net cash flow from investment activities -243947743.93 -298112549.86
133Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
III. Cash flow from financing activities:
Cash received from absorbing investment 0.00 0.00
Cash received from loan 0.00 161000000.00
Other cash received relating to financing activities
Subtotal of cash inflows from financing activities 0.00 161000000.00
Cash paid for repayments of debts 130750000.00 530250000.00
Cash paid to distribute dividends profits or pay interest 95578260.68 91801225.33
Other cash paid related to financing activities 9822800.57 107629519.50
Subtotal of cash outflows from financing activities 236151061.25 729680744.83
Net cash flow from financing activities -236151061.25 -568680744.83
IV. Impact of exchange rate fluctuations on cash and cash
-404327.8339489370.97
equivalents
V. Net increase in cash and cash equivalents 64166001.55 124268611.63
Plus: balance of cash and cash equivalents at the beginning of
654542035.33530273423.70
the period
VI. Balance of cash and cash equivalents at the end of the period 718708036.88 654542035.33
134Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
7. Consolidated statement of changes in owner's equity
Amount in the current period
Unit: RMB
2025
Owner's equity attributable to the parent company
Other
equity
instrum
ents G
P e
e n
r S e
p p r
P e e a
r t c l
e u i
f a a r
Items e l l i MinorityOther Ot shareholders Total owners'Minus: treasury s
Share capital r O Capital reserves comprehensive Surplus reserve Retained earnings her Subtotal ' equity equity
r c t shares r kincome s
e a h e
d p e s p
i r e r
s t s r o
h a v v
a l e i
r s s
e s i
s e o
c n
u
r
i
135Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
t
i
e
s
I. Ending
balance of last 1246834988 2089578011.17 155694936.18 -32276903.98 248359297.47 3275527294.98 6672327751.46 52503.82 6672380255.28
year
Plus:
changes in
accounting
policies
Early
error correction
Other
s
II. Beginning
balance of the 1246834988 2089578011.17 155694936.18 -32276903.98 248359297.47 3275527294.98 6672327751.46 52503.82 6672380255.28
current year
III. Amount of
changes in
increase or
decrease in the
60122340.85-28063965.4618642322.77259215427.93309916126.09-632899.40309283226.69
current period
(decrease
marked with "-
")
(I) Total
comprehensive -28063965.46 363873007.86 335809042.40 -632899.40 335176143.00
income
(II) Capital
invested and
60122340.8560122340.8560122340.85
reduced by
owners
1. Ordinary
shares invested
by owners
136Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of
share-based
payment 57561832.12 57561832.12 57561832.12
included in
owner's equity
4. Others 2560508.73 2560508.73 2560508.73
(III) Profit
18642322.77-104657579.93-86015257.16-86015257.16
distribution
1. Withdrawal
of surplus 18642322.77 -18642322.77
reserve
2. Withdrawal
of general risk
provision
3. Distribution
to owners (or -86015257.16 -86015257.16 -86015257.16
shareholders)
4. Others
(IV) Internal
carryover of
owner's equity
1. Conversion
of surplus
reserves to
additional
capital (or share
capital)
2. Conversion
of surplus
reserves to
additional
137Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
capital (or share
capital)
3. Surplus
public reserve
to compensate
losses
4. Change of
defined benefit
plans carried
forward to
retained
earnings
5. Other
comprehensive
income carried
forward into
retained
earnings
6. Others
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount used
in the current
period
(VI) Others
IV. Ending
balance of the 1246834988 2149700352.02 155694936.18 -60340869.44 267001620.24 3534742722.91 6982243877.55 -580395.58 6981663481.97
current year
Amount in the previous period
138Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Unit: RMB
2024
Owner's equity attributable to the parent company
Other
equity
instru
ments
P
e G
r e
p n
e S e
t p r
P u e a
r a c l
e l i
f a r O
Items e c l i t MinorityOther Total owners'
r a O Minus: treasury s h shareholders'Share capital Capital reserves comprehensive Surplus reserve Retained earnings Subtotal equity
r p t shares r k e equityincome
e i h e r
d t e s p s
a r e r
s l s r o
h v v
a s e i
r e s s
e c i
s u o
r n
i
t
i
e
s
I. Ending 1246834988 2212629919.51 112426101.24 11932029.41 219446936.59 2706499696.23 6284917468.50 84680252.94 6369597721.44
balance of last
139Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
year
Plus:
changes in
accounting
policies
Early
error correction
Other
s
II. Beginning
balance of the 1246834988 2212629919.51 112426101.24 11932029.41 219446936.59 2706499696.23 6284917468.50 84680252.94 6369597721.44
current year
III. Amount of
changes in
increase or
decrease in the
-123051908.3443268834.94-44208933.3928912360.88569027598.75387410282.96-84627749.12302782533.84
current period
(decrease
marked with "-
")
(I) Total
comprehensive -44208933.39 671442652.91 627233719.52 441923.03 627675642.55
income
(II) Capital
invested and
6685939.5195703328.59-89017389.08-89017389.08
reduced by
owners
1. Ordinary
shares invested
by owners
2. Capital
contributed by
holders of other
equity
instruments
3. Amount of 9380913.16 9380913.16 9380913.16
140Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
share-based
payment
included in
owner's equity
4. Others -2694973.65 95703328.59 -98398302.24 -98398302.24
(III) Profit
28912360.88-102415054.16-73502693.28-73502693.28
distribution
1. Withdrawal
of surplus 28912360.88 -28912360.88
reserve
2. Withdrawal
of general risk
provision
3. Distribution
to owners (or -73502693.28 -73502693.28 -73502693.28
shareholders)
4. Others
(IV) Internal
carryover of -49739520.00 -52434493.65 2694973.65 2694973.65
owner's equity
1. Conversion
of surplus
reserves to
additional
capital (or
share capital)
2. Conversion
of surplus
reserves to
additional
capital (or
share capital)
3. Surplus
public reserve
to compensate
losses
141Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
4. Change of
defined benefit
plans carried
forward to
retained
earnings
5. Other
comprehensive
income carried
forward into
retained
earnings
6. Others -49739520.00 -52434493.65 2694973.65 2694973.65
(V) Special
reserves
1. Amount
withdrawn in
the current
period
2. Amount used
in the current
period
(VI) Others -79998327.85 -79998327.85 -85069672.15 -165068000.00
IV. Ending
balance of the 1246834988 2089578011.17 155694936.18 -32276903.98 248359297.47 3275527294.98 6672327751.46 52503.82 6672380255.28
current year
8. Parent company's statement of changes in owner's equity
Amount in the current period
Unit: RMB
2025
Items
Share capital Other equity instruments Capital reserves Minus: Other Special Surplus reserve Retained Others Total owners'
142Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Perpetual treasury shares comprehensive reserves earnings equity
Preferred
capital Others income
shares
securities
I. Ending balance of
1246834988.002211676333.70155694936.18248330779.011409689377.484960836542.01
last year
Plus: changes in
accounting policies
Early error
correction
Others
II. Beginning balance
1246834988.002211676333.70155694936.18248330779.011409689377.484960836542.01
of the current year
III. Amount of
changes in increase
or decrease in the
60122340.8518642322.7781765647.76160530311.38
current period
(decrease marked
with "-")
(I) Total
comprehensive 186423227.69 186423227.69
income
(II) Capital invested
and reduced by 60122340.85 60122340.85
owners
1. Ordinary shares
invested by owners
2. Capital contributed
by holders of other
equity instruments
3. Amount of share-
based payment
57561832.1257561832.12
included in owner's
equity
4. Others 2560508.73 2560508.73
(III) Profit 18642322.77 -104657579.93 -86015257.16
143Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
distribution
1. Withdrawal of
18642322.77-18642322.77
surplus reserve
2. Distribution to
owners (or -86015257.16 -86015257.16
shareholders)
3. Others
(IV) Internal
carryover of owner's
equity
1. Conversion of
surplus reserves to
additional capital (or
share capital)
2. Conversion of
surplus reserves to
additional capital (or
share capital)
3. Surplus public
reserve to
compensate losses
4. Change of defined
benefit plans carried
forward to retained
earnings
5. Other
comprehensive
income carried
forward into retained
earnings
6. Others
(V) Special reserves
1. Amount
withdrawn in the
current period
144Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Amount used in
the current period
(VI) Others
IV. Ending balance
1246834988.002271798674.55155694936.18266973101.781491455025.245121366853.39
of the current year
Amount in the previous period
Unit: RMB
2024
Other equity instruments
Items OtherPerpetual Minus: Special Retained Total owners'Share capital Preferred Capital reserves comprehensive Surplus reserve Others
capital Others treasury shares reserves earnings equity
shares income
securities
I. Ending balance of
1246834988.002254729914.19112426101.24219418418.131222980822.834831538041.91
last year
Plus: changes in
accounting policies
Early error
correction
Others
II. Beginning balance
1246834988.002254729914.19112426101.24219418418.131222980822.834831538041.91
of the current year
III. Amount of
changes in increase
or decrease in the
-43053580.4943268834.9428912360.88186708554.65129298500.10
current period
(decrease marked
with "-")
(I) Total
comprehensive 289123608.81 289123608.81
income
(II) Capital invested 6685939.51 95703328.59 -89017389.08
and reduced by
145Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
owners
1. Ordinary shares
invested by owners
2. Capital
contributed by
holders of other
equity instruments
3. Amount of share-
based payment
9380913.169380913.16
included in owner's
equity
4. Others -2694973.65 95703328.59 -98398302.24
(III) Profit
28912360.88-102415054.16-73502693.28
distribution
1. Withdrawal of
28912360.88-28912360.88
surplus reserve
2. Distribution to
owners (or -73502693.28 -73502693.28
shareholders)
3. Others
(IV) Internal
carryover of owner's -49739520.00 -52434493.65 2694973.65
equity
1. Conversion of
surplus reserves to
additional capital (or
share capital)
2. Conversion of
surplus reserves to
additional capital (or
share capital)
3. Surplus public
reserve to
compensate losses
4. Change of defined
146Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
benefit plans carried
forward to retained
earnings
5. Other
comprehensive
income carried
forward into retained
earnings
6. Others -49739520.00 -52434493.65 2694973.65
(V) Special reserves
1. Amount
withdrawn in the
current period
2. Amount used in
the current period
(VI) Others
IV. Ending balance
1246834988.002211676333.70155694936.18248330779.011409689377.484960836542.01
of the current year
147Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
III. Basic information of the Company
Shenzhen Topband Co. Ltd. (hereinafter referred to as "the Company") formerly known as Shenzhen
Topband Electronic Equipment Co. Ltd. is a limited liability company approved by Shenzhen Administration
for Industry and Commerce on February 9 1996. It has obtained the Business License of Enterprise Legal
Person with the registration number of 19241377-3. On January 10 2001 upon approval the name of Shenzhen
Topband Electronic Equipment Co. Ltd. was changed to Shenzhen Topband Electronic Technology Co. Ltd.On July 15 2002 with the approval of the People's Government of Shenzhen Municipality by issuing the Reply
on the Approval of the Reorganization and Establishment of Shenzhen Topband Electronics Technology Co.Ltd. (SFG [2002] No. 24) Guangdong Province it was agreed to reorganize Shenzhen Topband Electronics
Technology Co. Ltd. as a whole into a company limited by shares with five shareholders as the promoter. On
June 26 2007 with the approval of the China Securities Regulatory Commission by issuing the Notice on
Approving the IPO of Shenzhen Topband Electronics Technology Co. Ltd. (ZJH No. 2007135) Topband issued
shares to the public and was listed on the Shenzhen Stock Exchange (stock code: 002139). The company name
was changed to Shenzhen Topband Co. Ltd. in September 2009.The Company's registered address is Topband Industrial Park No. 1 Yongteng Third Road Tangtou
Community Shiyan Sub-district Bao'an District Shenzhen. The unified social credit code of the business
license is 91440300192413773Q. The legal representative of the Company is Wu Yongqiang. As of December
31 2025 the share capital is RMB 1246834988.00.
The Company's main business activities: The Company is a business with rich technical experience and
product solutions in the intelligent control industry. With the core technology system of "four electrics and one
network" (electric control motor battery power and IoT) the Company is specialized in developing
manufacturing and selling components and complete machines. The components mainly include intelligent
controllers high efficiency motors battery packs and power products. The complete machines mainly include
AC/DC charging piles integrated industrial and commercial energy storage systems integrated household
energy storage systems and AI complete machines. The products are widely used in three major fields: tools and
home appliances digital energy and intelligent vehicles and robotics. We offer innovative efficient and reliable
customized services to global customers and at the same time bring green intelligent and innovative products
to consumers.
148Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Date of approval for submission of financial statement: The financial statements have been approved for
submission by the Company's Board of Directors on March 31 2026.IV. Preparation basis of the financial statement
1. Basis of preparation
On a going concern basis the Company recognizes and measures actual transactions and events in
accordance with the Accounting Standards for Business Enterprises and their application guidelines and
interpretations of the Standards and prepares its financial statements accordingly. In addition the Company
also disclosures relevant financial information in accordance with the Compilation Rules No. 15 for Information
Disclosure by Companies Offering Securities to the Public - General Provisions on Financial Reports (2023
Revision) issued by CSRC.
2. Continuation
The Company has evaluated its ability to continue as a going concern for the past 12 months from the end
of the Reporting Period and has not identified any issue that may affect its ability to continue as a going concern
so it is reasonable for the Company to prepare the financial statements on a going concern basis.V. Significant Accounting Policies and Accounting Estimates
Specific accounting policies and accounting estimates reminders:
The following important accounting policies and estimates of the Company were determined in accordance
with the Accounting Standards for Business Enterprises. The businesses not mentioned are based on the relevant
accounting policies in the Accounting Standards for Business Enterprises.
1. Statement on compliance with Accounting Standards for Business Enterprises
The financial statements prepared by the Company comply with the requirements of Accounting Standards
for Business Enterprises and truly and completely reflect the Company's financial position operating results
changes in owners' equity and cash flows.
149Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Accounting period
The fiscal year of the Company begins on January 1 and ends on December 31 of the Gregorian calendar.
3. Operating cycle
The normal operating cycle of the Company is one year.
4. Recording currency
The recording currency of the Company is RMB and the overseas branches and subsidiaries may
determine their own recording currencies according to the currency of the main economic environment in which
they operate.
5. Method for determining materiality criteria and basis for selection
□ Applicable □ Not applicable
Items Materiality criteria
Accounts receivable with major single provision for bad The ending balance of individual accounts receivable and other
debts receivables is greater than RMB 1 million
Recovery or reversal of bad debt provisions for
The amount of single recovery or reversal is greater than RMB 1 million
important receivables
Write-off of important receivables The amount of single write-off is greater than RMB 1 million
The amount of a single contract liability aged over 1 year is greater than
Material contract liabilities aged over 1 year
RMB 5 million
The amount of a single accounts payable/other payable aged over 1 year
Material payables and other payables
is greater than RMB 5 million
Significant Projects In-progress The budget of a single project is over RMB 100 million
Major non-wholly-owned subsidiaries The minority equity is more than RMB 50 million
6. Accounting treatment for business merger involving enterprises under the same control and under
different control
(1) Business merger under common control
The assets and liabilities acquired by the Company in the business merger are measured at the date of the
merger at the book value of the merged party in the consolidated financial statements of the ultimate controlling
party. If the accounting policies and accounting periods adopted by the merged party and the Company before
the business merger are different the accounting policies and accounting periods shall be unified based on the
materiality principle that is the book values of the assets and liabilities of the merged party shall be adjusted in
accordance with the accounting policies and accounting periods of the Company. In case of a difference
150Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
between the book value of the net assets acquired by the Company in the business merger and the book value of
the consideration paid the capital reserve (capital premium or equity premium) shall be adjusted first. If the
balance of the capital reserve (capital premium or equity premium) is insufficient for writing down the surplus
reserve and undistributed profits shall be written down successively.See 7 (5) of Section X Financial Report for the accounting treatment of business mergers under common
control through stepwise transactions.
(2) Business merger under different control
The identifiable assets and liabilities of the acquiree acquired by the Company in the business merger are
measured at their fair value at the date of acquisition. If the accounting policies and accounting periods adopted
by the acquiree and the Company before the business merger are different the accounting policies and
accounting periods shall be unified based on the materiality principle that is the book values of the assets and
liabilities of the acquiree shall be adjusted in accordance with the accounting policies and accounting periods of
the Company. If the merger cost of the Company on the acquisition date is larger than the fair value of the
identifiable assets and liabilities acquired in the business merger the difference is recognized as goodwill; if the
merger cost is less than the fair value of the identifiable assets and liabilities acquired in the business merger
the merger cost and the fair value of the acquiree's identifiable assets and liabilities acquired in the business
merger shall be reviewed first and if the merger cost is still less than the fair value of the acquired acquiree's
identifiable assets and liabilities after the review the difference is recognized as a profit or loss for the period of
the merger.See 7 (5) of Section X Financial Report for the accounting treatment of business mergers under different
control through stepwise transactions.
(3) Treatment of relevant transaction costs in business merger
Intermediary fees such as audit legal service evaluation and consulting fees and other related management
expenses incurred are credited to the current profit or loss when incurred. Transaction costs of equity securities
or debt securities issued as merger consideration are credited to the initial amount recognized for the equity
securities or debt securities.
7. Criteria for determining control and methods for preparing consolidated financial statements
(1) Judging criteria of control and determination of merger scope
151Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Control means that the Company has power over the invested party enjoys variable returns by
participating in related activities of the invested party and has the ability to use its power over the invested
party to influence the amount of returns. The definition of control includes three basic elements: firstly means
the power the investor possesses over the investee; secondly variable returns enjoyed by participating in related
activities of the investee; thirdly the ability to use its power over the investee to influence the amount of returns.When an investment of the Company in an investee has the above three elements it means the Company is able
to control the investee.The consolidated scope of the consolidated financial statements is determined on a control basis and
includes not only subsidiaries determined based on voting rights (or similar voting rights) themselves or in
combination with other arrangements but also structured entities determined on the basis of one or more
contractual arrangements.A subsidiary refers to an entity controlled by the Company (including enterprise the severable part of
investee the structured entity controlled by enterprise etc.) and a structured entity refers to an entity designed
without voting rights or similar rights as a decisive factor in determining its controlling party (Note: sometimes
referred to as a special purpose entity).
(2) Compilation methods of consolidated financial statements
The Company prepares the consolidated financial statements based on its own and its subsidiaries'
financial statements as well as other relevant information.The consolidated financial statements are prepared by the Company with the entire enterprise group as one
accounting entity in accordance with the recognition measurement and presentation requirements of the
relevant accounting standards for business enterprises and based on uniform accounting policies and accounting
periods to reflect the overall financial position operating results and cash flows of the enterprise group.* Consolidate the assets liabilities owner's equity revenues expenses and cash flows of the parent
company and its subsidiaries.* Offset long-term equity investments of the parent company in its subsidiaries against the share of the
parent company in subsidiaries' owner's equity.* Offset the impact of internal transactions between the parent company and its subsidiaries as well as
among subsidiaries. Where an internal transaction indicates an impairment loss of the underlying asset the loss
shall be fully recognized.
152Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
* Adjust special transactions from the perspective of the enterprise group.
(3) Treatment of increase/decrease of subsidiaries during Reporting Period
* Increase of subsidiaries or businesses
A. Subsidiaries or businesses added by merger of enterprises under common control
(a) When preparing the consolidated balance sheet adjust the opening balance of the consolidated balance
sheet and adjust the relevant items in the comparative statement as if the reporting entity after the merger had
been in existence since the point at which control by the ultimate controlling party began.(b) When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the beginning of the period in which the business merger occurs to the end of the Reporting
Period in the consolidated income statement and adjust the relevant items in the comparative statement as if the
reporting entity after the merger had been in existence since the point at which control by the ultimate
controlling party began.(c) When preparing the consolidated cash flow statement include the cash flows of the subsidiary and from
the beginning of the period in which the business merger occurs to the end of the Reporting Period in the
consolidated cash flow statement and adjust the relevant items in the comparative statement as if the reporting
entity after the merger had been in existence since the point at which control by the ultimate controlling party
began.B. Subsidiaries or businesses increased by business merger under different control
(a) No adjustment is made to the opening balance of the consolidated balance sheet when preparing it.(b) When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the date of acquisition to the end of the Reporting Period in the consolidated income
statement.(c) When preparing the consolidated cash flow statement include the cash flows of the subsidiary from the
date of acquisition to the end of the Reporting Period in the consolidated cash flow statement.* Disposal of subsidiaries or businesses
A. No adjustment is made to the opening balance of the consolidated balance sheet when preparing it.B. When preparing the consolidated income statement include the revenue expenses and profits of the
subsidiary and from the beginning of the operating period to the date of disposal in the consolidated income
statement.
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C. When preparing the consolidated cash flow statement include the cash flows of the subsidiary and from
the beginning of the operating period to the date of disposal in the consolidated cash flow statement.
(4) Special considerations in consolidated offset
* Long-term equity investments of the Company held by subsidiaries shall be treated as treasury shares of
the Company and presented as "Minus: treasury shares" under the Owners' Equity item in the consolidated
balance sheet as a deduction from the owners' equity.For long-term equity investments mutually held by subsidiaries the long-term equity investments shall be
mutually offset against the shares of the corresponding owner's equity of the subsidiary in accordance with the
method of offsetting the Company's equity investments in subsidiaries.* The items of "special reserve" and "general risk provision" are not paid-in capital (or share capital) or
capital reserve and are different from retained earnings and undistributed profits. After the offset of long-term
equity investment against owners' equity of subsidiaries the two items shall be restored according to the share
attributable to the owner of the parent company.* The Company recognizes deferred income tax assets or liabilities in the consolidated balance sheet and
adjusts the income tax expense in the consolidated income statement if there is a temporary difference between
the book value of the assets or liabilities in the consolidated balance sheet and the tax basis of the taxable entity
concerned due to the offset of unrealized gains and losses on internal sales except deferred income taxes related
to transactions or matters directly credited to owners' equity and related to business merger.* Unrealized gains or losses on internal transactions arising from the sale of assets by the Company to a
subsidiary shall be fully offset against the "net profit attributable to the owner of the parent company".Unrealized gains and losses on internal transactions arising from the sale of assets by a subsidiary to the
Company shall be offset between "net profit attributable to the owner of the parent company" and "profit or loss
of minority shareholders" in accordance with the proportion of the Company's distribution to the subsidiary.Unrealized gains and losses on internal transactions arising from the sale of assets between subsidiaries shall be
offset between "net profit attributable to the owner of the parent company" and "profit or loss of minority
shareholders" in accordance with the proportion of the Company's distribution to the selling subsidiary.* Where the loss shared by the minority shareholders of a subsidiary in the current period exceeds the
minority shareholders' share in the owner's equity of the subsidiary at the beginning of the period the balance
shall still be written down under the minority equity.
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(5) Accounting treatment of special transactions
* Purchase of minority equity
When the Company purchases shares in subsidiaries owned by minority shareholders in individual
financial statements the investment cost of the newly acquired long-term equity investment for the purchase of
minority shares is measured at the fair value of the consideration paid. In the consolidated financial statements
the capital reserve (capital premium or equity premium) shall be adjusted for the difference between the newly
acquired long-term equity investment due to the purchase of minority shares and the net asset share of the
subsidiary that has been continuously calculated since the acquisition date or the merger date according to the
proportion of newly acquired shares. If the capital reserve is insufficient for writing off the surplus reserve and
undistributed profit shall be written off successively.* Acquiring control of a subsidiary by steps through multiple transactions
A. Business merger under common control realized by steps through multiple transactions
At the merger date the Company determines the initial investment cost of long-term equity investment in
individual financial statements based on the share of the net assets of the subsidiary to be enjoyed after the
merger in the book value of the consolidated financial statements of the ultimate controlling party; the capital
reserve (capital premium or equity premium) shall be adjusted for the difference between the initial investment
cost and the book value of the long-term equity investment before reaching the merger plus the book value of
the newly paid consideration for further shares acquired on the merger date. If the capital reserve (capital
premium or equity premium) is insufficient for writing off the surplus reserve and undistributed profit shall be
written off successively.In the consolidated financial statements the assets and liabilities of the mergee acquired by the merging
party in the merger are measured at the book value in the consolidated financial statements of the ultimate
controlling party at the date of the merger except for adjustments due to different accounting policies and
accounting periods; the capital reserve (equity premium/capital premium) shall be adjusted for the difference
between the book value of the investment held before the merger plus the book value of the newly paid
consideration on the merger date and the book value of the net assets acquired in the merger. If the capital
reserve is insufficient for writing off the retained earnings shall be adjusted.For equity investments held by the merging party prior to the acquisition of control of the mergee changes
in the gains and losses other comprehensive income and other owners' equity that have been recognized
between the merger date and the date of acquisition of the original equity or the date on which the merging party
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and the mergee are ultimately under common control whichever is later shall be respectively deducted against
the opening retained earnings or current profit or loss of the comparative statement period.B. Business merger under different control realized by steps through multiple transactions
In individual financial statements the sum of the book values of the long-term equity investments
originally held plus the cost of the new investment on the merger date is taken as the initial investment cost of
the long-term equity investment on the merger date.In the consolidated financial statements the acquiree's equity held prior to the acquisition date shall be
remeasured at the fair value of the equity held prior to the acquisition date and if the acquiree's equity held
prior to the acquisition date is designated as a financial asset measured at fair value and its changes are credited
to other comprehensive income the difference between the fair value and the book value shall be credited to
retained earnings and the cumulative change in fair value of the equity originally credited to other
comprehensive income shall be carried over to retained earnings; if the acquiree's equity held before the
acquisition date is regarded as a financial asset measured at fair value and its changes are credited to the current
profit or loss of financial assets or long-term equity investment accounted for by the equity method the
difference between the fair value and the book value shall be credited to the current investment income; if the
acquiree's equity held prior to the acquisition date involves changes in other comprehensive income accounted
for by the equity method and other owners' equity accounted for by the equity method other than net profit or
loss other comprehensive income and profit distribution other related comprehensive income shall be
accounted for on the same basis as the investee's direct disposal of the relevant assets or liabilities on the
acquisition date and other related changes in the owners' equity shall be changed over to investment income of
the period of the acquisition date.* Disposal of long-term equity investments in subsidiaries by the Company without losing control
If the parent company disposes of its long-term equity investments in a subsidiary partially without losing
control the difference between the disposal price and the net asset share of the subsidiary calculated
continuously from the date of purchase or merger corresponding to the disposal of long-term equity investments
in the consolidated financial statements shall be adjusted to the capital reserve (capital premium or share
premium). If the capital reserve is insufficient for offsetting the retained earnings shall be adjusted.* Disposal of long-term equity investments in subsidiaries by the Company with control lost
A. Disposal of single transaction
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If the Company loses the control of the investee due to the disposal of part of the equity investment or
other reasons the remaining equity shall be remeasured at the fair value on the date of loss of control when
preparing the consolidated financial statements. The sum of the consideration obtained from the equity disposal
and the fair value of the remaining equity minus the difference between the share of the original subsidiary's net
assets that shall have been continuously calculated from the acquisition date or the merger date based on the
original shareholding ratio and the sum of goodwill shall be credited to the investment income of the period in
which the control is lost.Other comprehensive income related to the equity investment in the original subsidiary shall be accounted
for on the same basis as the direct disposal of related assets or liabilities by the original subsidiary at the time of
loss of control and other changes in owner's equity related to the original subsidiary accounted for with the
equity method are changed over to the current profit or loss at the time of loss of control.B. Disposal of multiple transactions by steps
In the consolidated financial statements whether a by-step transaction is a "package transaction" shall be
determined first.If the by-step transaction is not a "package transaction" in individual financial statements the transactions
before the loss of control of the subsidiary shall be carried forward to the book value of the long-term equity
investment corresponding to each disposal of equity and the difference between the proceeds and the book
value of the disposed long-term equity investment shall be credited to the current investment income; in the
consolidated financial statements the treatment shall be made in accordance with the relevant provisions of
"Disposal of long-term equity investment in subsidiaries by the parent company without losing control".If the by-step transaction is a "package transaction" each transaction shall be accounted for as one
transaction in which the subsidiary is disposed of with control lost; in individual financial statements the
difference between the disposal price before the loss of control and the book value of the long-term equity
investment corresponding to the disposed equity shall be first recognized as other comprehensive income and
then changed over to the current profit or loss when the control is lost. In the consolidated financial statements
for each transaction prior to the loss of control the difference between the disposal price and the share of the
subsidiary's entitled net assets corresponding to the investment disposed of shall be recognized as other
comprehensive income and changed over to the profit or loss of the period in which the control is lost.Multiple transactions are usually accounted for as "package transactions" if the terms conditions and
economic impact of each transaction meet one or more of the following conditions:
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(a) These transactions are entered into concurrently or with consideration of their effects on each other.(b) A complete business outcome can be achieved only when these transactions are regarded as a whole.(c) The occurrence of a transaction is dependent on the occurrence of at least another one.(d) One transaction is not economic when it is considered individually but is economic when considered
together with other transactions.* Dilution of the proportion of equity owned by the parent company due to capital increase by minority
shareholders of a subsidiary
When other shareholders (minority shareholders) of a subsidiary increase the capital the equity proportion
of the parent company in the subsidiary would be diluted. In the consolidated financial statements the share of
the net assets of the subsidiary before the capital increase shall be calculated based on the parent company's
equity ratio before the capital increase and the difference between this share and the share of the subsidiary's
net assets after the capital increase calculated based on the parent company's equity ratio after the capital
increase shall be adjusted to the capital reserve (capital premium or share premium). If the capital reserve
(capital premium or share premium) is insufficient for offsetting the retained earnings shall be adjusted.
8. Classification of joint venture arrangements and accounting treatment for joint operation
1. Identification and classification of joint venture arrangements
Joint venture arrangement refers to an arrangement under joint control by two or more parties. The joint
venture arrangement has the following features: (1) all parties are bound by the arrangement; (2) two or more
parties jointly control the arrangement. No single party can control the arrangement solely and any party with
joint control over the arrangement can prevent other parties or a combination of party alliance from controlling
the arrangement alone.Joint control refers to the common control of an arrangement in accordance with relevant agreements and
the activities related to the arrangement must be agreed upon by the parties holding control right before the
decision can be made.Joint venture arrangement includes joint operation and joint venture. Joint operation is the joint venture
arrangement in which the joint venture party holds the relevant assets of the arrangement and assumes the
relevant liabilities. Joint venture refers to a joint venture arrangement in which the joint venture party has rights
only to the net assets of the arrangement.
2. Accounting treatment for joint venture arrangement
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Parties in joint operation shall recognize the following items related to their share of interests in joint
operation and perform accounting treatment in accordance with the relevant provisions of the Accounting
Standards for Business Enterprises: (1) recognize the assets held separately and those held jointly as per their
share; (2) recognize the liabilities assumed separately and those assumed jointly as per their share; (3) recognize
the income generated from the sale of its share of joint operation output; (4) recognize the income from the sale
of the output of the joint operation as per its share; (5) recognize the expenses incurred separately and those
incurred in the joint operation as per its share.The parties of a joint venture shall make accounting treatment for the investment in the joint venture in
accordance with the Accounting Standards for Business Enterprises No. 2 - Long-term Equity Investment.
9. Standards for determining cash and cash equivalents
Cash refers to cash on hand and deposits that are available for payment at any time. Cash equivalents refer
to investments with short term (generally due within three months from the date of purchase) strong liquidity
easy to convert into known amount of cash and low risk of value change.
10. Foreign currency transaction and foreign currency statement translation
(1) Method of determining the conversion rate in foreign currency transactions
In the initial recognition of foreign currency transactions the Company adopts the spot exchange rate on
the occurrence date of the transaction or an exchange rate determined using a systematic and reasonable method
which is approximate to the spot exchange rate on the occurrence date of the transaction (hereinafter referred to
as the approximate exchange rate of the spot exchange rate) for conversion into the recording currency.
(2) Translation method of monetary items in foreign currencies at the balance sheet date
At the balance sheet date the spot exchange rate of that day is used for monetary items in foreign
currencies. Any exchange difference arising from the difference between the spot rate at the balance sheet date
and that at the initial recognition or the previous balance sheet date is credited to the current profit or loss. For
foreign-currency monetary items measured with historical costs the spot exchange rate at the date of the
transaction is still used; for inventories measured with the lower of costs or net realizable value when an
inventory is purchased in a foreign currency and the net realizable value of the inventory at the balance sheet
date is reflected in a foreign currency the net realizable value of the inventory is first converted into an amount
in the recording currency at the spot exchange rate at the balance sheet date and then compared with the cost of
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the inventory reflected in the recording currency to determine the ending value of the inventory; for foreign
currency non-monetary items measured at fair value the spot exchange rate on the date of fair value
determination is used for translation; for financial assets measured at fair value and whose changes are credited
to the current profit or loss the difference between the amount in the recording currency after translation and
the amount in the original recording currency is credited to the current profit or loss; for investments in non-
trading equity instruments designated to be measured at fair value and whose changes are credited to other
comprehensive income the difference between the amount in the recording currency after translation and the
amount in the original recording currency is credited to other comprehensive income.
(3) Translation method of financial statements in a foreign currency
Before the financial statements of an overseas business of an enterprise are converted the accounting
periods and accounting policies of the overseas business shall be adjusted to be consistent with those of the
enterprise and then the financial statements in the corresponding currency (currency other than the accounting
currency) shall be prepared based on the adjusted accounting policies and accounting periods and converted
using the following method:
* The assets and liabilities in the balance sheet are translated at the spot exchange rate at the balance sheet
date and the owner's equity items except the item of "undistributed profit" are translated at the spot exchange
rate at the time of occurrence.* The income and expense items in the income statement are translated at the spot exchange rate or a rate
approximate to the spot exchange rate at the date of the transaction.* Cash flows in foreign currencies and cash flows of overseas subsidiaries are translated at the spot
exchange rate or a rate approximate to the spot exchange rate at the occurrence date of cash flows. The impact
of exchange rate changes on cash shall be presented separately in the statement of cash flows as a reconciliation
item.* When preparing the consolidated financial statements the resulting difference in the translation of
financial statements in a foreign currency is presented in the "Other comprehensive income" item under owner's
equity in the consolidated balance sheet.When an overseas operation is disposed of with control lost the difference in translation of foreign-
currency statements related to the overseas operation as presented under the owner's equity item in the balance
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sheet is changed over to the current profit or loss of the disposal in full or in proportion to the disposed
overseas operation.
11. Financial instruments
1. Recognition and derecognition of financial instruments
When the Company becomes one party of the financial instrument contract it shall recognize a financial
asset or financial liability.The trading of financial assets in a conventional manner shall be recognized and derecognized according to
the accounting of the trading day. Conventional trading of financial assets refers to the collection or delivery of
financial assets within the time limit specified by laws and regulations or common practice in accordance with
the terms of the contract. Trading day refers to the date when the Company promises to buy or sell financial
assets.If the following conditions are met the recognition of financial assets (or a portion of financial assets or a
group of similar financial assets) shall be derecognized that is they shall be written off from their accounts and
balance sheets:
(1) The right to receive cash flow of financial assets has expired;
(2) The right to receive cash flow of financial assets has been transferred or the Company has assumed the
obligation to timely pay the full amount of the cash flow received to a third party under the "transfer agreement";
and (a) has transferred substantially all the risks and rewards from the ownership of financial assets or (b)
abandoned the control of the financial asset though almost all risks and rewards from the ownership of the
financial asset are neither transferred nor retained.
2. Classification and measurement of financial assets
At the time of initial recognition the financial assets of the Company are classified according to the
Company's business model for the management of financial assets and the contractual cash flow characteristics
of financial assets as follows: financial assets measured at amortized cost financial assets measured at fair value
through other comprehensive income and financial assets measured at fair value through current profits and
losses. The subsequent measurement of financial assets depends on their classification:
The classification of financial assets is based on the Company's business model for the management of
financial assets and the cash flow characteristics of financial assets.
(1) Financial assets measured at amortized cost
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Financial assets that meet the following conditions at the same time are classified as financial assets
measured at amortized cost: the Company's business mode of managing the financial assets is to collect the
contract cash flow as the target; the contract terms of the financial asset stipulate that the cash flow generated on
a specific date is only the payment of principal and interest based on the amount of outstanding principal. For
such financial assets the effective interest rate method is adopted and subsequent measurement is made at
amortized cost and the gains or losses arising from amortization or impairment are included in the current
profits and losses.
(2) Debt instruments investment measured at fair value with changes included in other comprehensive
income
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value with their changes included in other comprehensive income: the Company's business
mode of managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of
the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and
interest based on the amount of outstanding principal. For such financial assets fair value is adopted for
subsequent measurement. The discount or premium is amortized using the effective interest rate method and
recognized as interest income or expense. Except the impairment loss and the exchange difference of foreign
currency monetary financial assets are recognized as the current profits and losses the changes in the fair value
of such financial assets are recognized as other comprehensive income until their accumulated gains or losses
are transferred into the current profits and losses when the financial asset is derecognized. Interest income
related to such financial assets is included in the current profits and losses.
(3) Equity instruments investment measured at fair value with changes included in other comprehensive
income
The Company irrevocably chooses to designate part of the non-tradable equity instrument investment as
financial assets measured at fair value through other comprehensive income. Only the relevant dividend income
is included in the current profits and losses and the changes in fair value are recognized as other comprehensive
income until their accumulated gains or losses are transferred into retained earnings when the financial asset is
derecognized.
(4) Financial assets measured at fair value with changes included in the current profits and losses
The financial assets other than the above financial assets measured at amortized cost and those at fair value
through other comprehensive income are classified as financial assets measured at fair value with changes
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included in the current profits and losses. At the time of initial recognition for the purpose of elimination or
significant reduction of accounting mismatch financial assets can be designated as those measured at fair value
with changes included in the current profits and losses. For such financial assets fair value is used for
subsequent measurement and all changes in fair value are included in the current profits and losses.If and only when the Company changes the business model for managing financial assets it will reclassify
all the affected financial assets.For the financial assets measured at fair value and whose changes are included in the current profits and
losses the relevant transaction costs are directly included in the current profits and losses and such costs of
other categories of financial assets are included in the initial recognition amount.
3. Classification and measurement of financial liabilities
During initial recognition the Company's financial liabilities are classified as: "financial liabilities
measured at amortization cost" and "financial liabilities measured at fair value with their changes included into
the current profit and loss".Financial liabilities satisfying one of the following requirements can be designated as financial liabilities
measured at fair value with their changes included in the current profit and loss during initial measurement: (1)
Such designation can eliminate or remarkably reduce the accounting mismatch; (2) According to group risk
management or investment strategy in the formal written documents the management and performance
evaluation of the portfolio of financial liabilities or portfolio of financial assets and financial liabilities are
conducted on the basis of fair price and within the group it is reported to the key management personnel on
such basis; (3) Such financial liabilities include embedded derivatives requiring separate splitting.The Company determines the classification of financial liabilities at the time of the initial recognition. For
the financial liabilities measured at fair value with changes included in the current profits and losses the
relevant transaction costs are directly included in the current profits and losses and such costs of other financial
liabilities are included in the initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
(1) Financial liabilities measured at amortized cost
For such financial liabilities the effective interest method is applied with subsequent measurement at
amortized cost.
(2) Financial liabilities measured at fair value with changes included in the current profits and losses
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Financial liabilities measured at fair price and with changes credited to the current profit or loss including
trading financial liabilities (including derivative instruments classified as financial liabilities) and financial
liabilities that are designated at the initial recognition to be measured at fair price and with changes credited to
the current profit or loss.
4. Set off of financial instruments
If the following conditions are met at the same time financial assets and financial liabilities are presented
in the balance sheet at the net amount after offsetting each other: the Company has the legal right to offset the
recognized amount which is currently enforceable; they plan to settle at the net amount or realize the financial
assets and pay off the financial liabilities at the same time.
5. Impairment of financial assets
The Company recognizes the loss provision based on the expected credit loss for the financial assets
measured at the amortized cost the debt instrument investment and financial guarantee contract measured at the
fair value and whose changes are included in other comprehensive income. The term "credit loss" refers to the
difference between all the contractual cash flows that the Company discounted at the original effective interest
rate and received according to the contract and all the expected cash flows i.e. the present value of all the cash
shortage.Upon considering all reasonable and well-founded information (including forward-looking information)
the Company estimates the expected credit impairment loss is withdrawn for "financial assets measured at
amortized cost" and "financial asset (debt instruments) measured at fair value with their changes included in
other comprehensive income" in single or combined manner.
(1) General model of expected credit loss
If the credit risk of this financial instrument has increased obviously since initial recognition the Company
will measure the loss reserves according to the expected credit loss amount of such financial instrument in the
whole duration; if the credit risk of this financial instrument hasn't increased obviously since initial recognition
the Company will measure the loss reserves according to the expected credit loss amount of such financial
instrument in the next 12 months. The increased or reversed amount of the loss provisions arising therefrom
shall be included in the current profits and losses as impairment losses or gains. The specific assessment of
credit risk by the Company is detailed in the Note "XII. Risks Associated with Financial Instruments".
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Generally in case of overdue for more than 30 days the Company will consider that the credit risk of such
financial instrument has increased obviously unless conclusive evidence is available to prove that the credit risk
of such financial instrument hasn't obviously increased since the initial recognition.To be specific the Company divides the credit impairment process of financial instruments that have not
been impaired at the time of purchase or origination into three stages with different accounting treatment for
the impairment of financial instruments at different stages:
First stage: credit risk has not increased significantly since initial recognition
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
expected credit loss in the next 12 months and calculate the interest income as per its book balance (i.e. without
deducting the impairment provision) and the actual interest rate (if the instrument is a financial asset the same
below).Second stage: the credit risk has increased significantly since the initial recognition but the credit
impairment has not occurred
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration and calculate the interest income as per its
book balance and the actual interest rate.Third stage: credit impairment occurs after initial recognition
For the financial instrument at this stage the enterprise shall measure the loss provision according to the
expected credit loss of the instrument thought the whole duration but the calculation of interest income is
different from the financial assets at the first two stages. For the financial assets with credit impairment the
enterprise shall calculate the interest income according to its amortized cost (book balance minus accrued
provision for impairment i.e. book value) and the actual interest rate.For the financial assets with credit impairment at the time of purchase or origination the enterprise shall
only recognize the change of expected credit loss in the whole duration after initial recognition as loss provision
and calculate the interest income as per its amortized cost and the effective interest rate adjusted by credit.
(2) Receivables and lease receivables
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
Standards for Business Enterprises No. 14 - Income excluding significant financing components (including
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cases in which financing components in contracts not exceeding one year are not taken into account in
accordance with the standards).The Company makes accounting policy choices to adopt a simplified model for expected credit loss i.e.measuring the loss provisions as per the amount equivalent to the expected credit loss throughout the whole
duration for receivables including significant financing components and lease receivables regulated by
Accounting Standards for Business Enterprises No. 21 - Leasing.
6. Transfer of financial assets
The financial assets shall be derecognized when the Company has transferred all the risks and rewards on
the ownership of the financial assets to the transferee. The financial assets shall not be derecognized if the
Company retains all the risks and rewards on the ownership of the financial assets.If the Company neither transfers nor retains almost all the risks and rewards in the ownership of the
financial asset the following conditions shall be referred to: if it gives up the control over the financial asset it
shall terminate the recognition of the financial asset and recognize the assets and liabilities generated; if it does
not abandon the control over the financial asset the relevant financial assets shall be recognized according to
the extent to which it continues to be involved in the transferred financial asset and the relevant liabilities shall
be recognized accordingly.If the financial guarantee is provided to the transferred financial assets to continue to be involved the
assets generated from the continued involvement shall be recognized according to the lower of the book value
of the financial assets and the amount of financial guarantee. Financial guarantee amount refers to the maximum
amount that will be required to be repaid out of consideration received.
12. Notes receivable
The Company divides notes receivable into two portfolios of bank acceptance bills and commercial
acceptance bills by type of financial instrument.For notes receivable divided into portfolios the Company calculates expected credit losses based on
default risk exposure and the expected credit loss rate during the entire period of continued existence by
reference to its historical credit loss experience the current status and the prediction of future economic
conditions.
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With respect to bank acceptance bills the Company considers its overdue default risk to be 0 for its risk of
overdue credit loss is low and has not significantly increased since the initial recognition because the
acceptance bank pays the payee or holder a certain amount unconditionally when the bill is due.In respect of commercial acceptance bills the Company believes that the probability of default is
correlated with the aging and bad debts shall be accrued for the expected credit loss of accounts receivables
according to the accounting policy.
13. Accounts receivable
The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for receivables specified in Accounting
Standards for Business Enterprises No. 14 - Income excluding significant financing components (including
cases in which financing components in contracts not exceeding one year are not taken into account in
accordance with the standards). The increased or reversed amount of loss provisions generated therefrom shall
be included in the current profits and losses as impairment losses or gains.The Company has implemented Accounting Standard No. 22 - Recognition and Measurement of Financial
Instruments (CK [2017] No. 7) since January 1 2019. The Company believes that the probability of default is
related to the aging which is still a mark of whether the credit risk of the Company's accounts receivable
increases significantly after it has reviewed the appropriateness of the provision for bad debts receivable in
previous years based on the Company's historical bad debt losses. Therefore credit risk loss of the Company's
accounts receivable is still estimated on the basis of aging according to the original loss ratio of previous years.The accounting policies for measuring overdue credit loss of accounts receivable adopted by the Company are
as follows:
For accounts receivable that there is objective evidence of impairment and other accounts that are suitable
for a single assessment impairment tests shall be conducted separately to confirm expected credit losses and
make impairment provisions for individual items. For accounts receivable for which there is no objective
evidence of impairment or when the expected credit loss of a single financial asset cannot be assessed at a
reasonable cost the Company divides accounts receivable into several portfolios according to the characteristics
of credit risks and calculates the expected credit loss based on the portfolios.
1. Accounts receivable with single provision for bad debts
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At the end of the period the amount of individual accounts receivable is tested separately for impairment.If there is objective evidence that it is impaired the impairment loss shall be recognized with provision for bad
debts according to the difference between the present value of future cash flow and the book value.
2. Receivables with provision for bad debts by portfolio
The receivables without impairment according to the separate test at the end of the period are divided into
several portfolios according to aging as a credit risk characteristic impairment losses are calculated and
determined at a certain ratio of the balance of these receivables at the end of the period (which can be separately
tested for impairment) and the provision for bad debts is made.Except for the receivables for which provision for impairment has been made separately the Company
determines the proportion for following bad debt provision based on the actual loss rate of the portfolio of the
same or similar receivables in previous years with the aging of receivables as the credit risk feature and in
combination with the current situation:
Aging Estimated credit loss rate of accounts receivable (%) (note)
Within 1 year (inclusive) 3.10%
1-2 years (including 2 years) 9.04%
2-3 years (including 3 years) 22.11%
3-4 years (including 4 years) 47.51%
4-5 years (including 5 years) 84.26%
Above 5 years 100.00%
Including: those that have been determined to be
Write-off
irrecoverable
Note: When measuring the expected credit loss of account receivables the Company has referred to the
historical experience of credit loss and adjusted it based on forward-looking estimates.
14. Receivables financing
Financial assets that meet the following conditions at the same time are classified as financial assets
measured at fair value with their changes included in other comprehensive income: the Company's business
mode of managing the financial assets aims to collect the contract cash flow and sell them; the contract terms of
the financial asset stipulate that the cash flow generated on a specific date is only the payment of principal and
interest based on the amount of outstanding principal.If the Company transfers accounts receivable bank acceptance bills etc. held by the Company in the form
of discount or endorsement and such transactions are frequent and involve a large amount its business
168Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
management model is essentially to both collect and sell cash flows arising from contracts which are classified
as financial assets whose changes are measured at fair value and credited to other comprehensive income in
accordance with the relevant provisions of the financial instruments criteria.For accounts receivable financing divided into portfolios the Company calculates expected credit losses
based on default risk exposures and expected credit loss rates over the entire duration taking into account
historical credit loss experiences present conditions and projections of future economic conditions.With respect to bank acceptance bills the Company considers its overdue default risk to be 0 for its risk of
overdue credit loss is low and has not significantly increased since the initial recognition because the
acceptance bank pays the payee or holder a certain amount unconditionally when the bill is due.In respect of those divided into the aging-based portfolio the Company believes that the probability of
default is correlated with aging and bad debts shall be accrued for the expected credit loss of accounts
receivables according to the accounting policy.
15. Other receivables
Recognition methods and accounting treatment of expected credit losses of other receivables. The
Company measures the impairment loss by an amount equivalent to the expected credit loss within the next 12
months or over the entire duration depending on whether the credit risk of other receivables has increased
significantly since the initial recognition. In addition to other receivables with individual credit risk assessment
they are divided into different portfolios based on their credit risk characteristics:
Description of Basis for determining the
Provision methods
portfolio portfolios
Risk-free amounts receivable from related parties within the scope of the
Portfolio I Risk-free portfolio
consolidation
Portfolio II Aging portfolio The credit risk of the portfolio is characterized by the aging.For other accounts receivable divided into a portfolio the Company calculates expected credit losses based
on default risk exposures and expected credit loss rates in future 12 months or over the entire duration taking
into account historical credit loss experiences present conditions and projections of future economic conditions
and determines the ratio of bad debt provision to be accrued in combination with current conditions:
Aging Expected rate of credit loss of other accounts receivable
Within 1 year (inclusive) 5.00%
1-2 years (including 2 years) 10.00%
2-3 years (including 3 years) 30.00%
3-4 years (including 4 years) 50.00%
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4-5 years (including 5 years) 80.00%
Above 5 years 100.00%
Including: those that have been determined to be
Write-off
irrecoverable
16. Contract assets
1. Recognition methods and standards for the contractual assets
The Company presents contractual assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company's right to receive
consideration for goods or services transferred to customers (excluding receivables) is listed as contractual
assets.
2. The recognition method and accounting treatment for expected credit loss of contractual assets
For contract assets without material financing components (including cases in which financing components
in contracts not exceeding one year are not taken into account in accordance with the standards) as specified in
the Accounting Standards for Business Enterprises No. 14 - Income the Company measures provisions for
losses as per the amount of expected credit losses throughout the whole duration by using a simplified model for
the expected credit loss. The increased or reversed amount of loss provisions generated therefrom shall be
credited to the current profits and losses as impairment losses or gains.The Company measures the loss provisions as per the amount of expected credit losses throughout the
whole duration by the use of simplified model for expected credit loss for contractual assets including
significant financing components.
17. Inventories
(1) Classification of inventories
Inventory refers to finished products or commodities held by the Company for sale in daily activities
products in the process of production materials and supplies consumed in the process of production or
provision of services including raw materials products in process semi-finished products goods in stock
materials for consigned processing low-value consumable goods etc.
(2) Pricing method of delivered inventories
Inventories of the Company are priced with the weighted-average method when delivered.
(3) Inventory system
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The Company adopts the perpetual inventory system takes inventory at least once a year and credits the
amount of inventory gains and losses to the profit and loss of the current year.
(4) Recognition criteria and accrual method of provision for impairment on inventories
On the balance sheet date inventories are measured at the lower of cost and net realizable value and if the
cost of the inventory is higher than its net realizable value a provision is made for impairment on inventories
and credited to the current profit/loss.Determining the net realizable value of the inventory shall be based on the available reliable evidence with
consideration to such factors as the purpose of holding the inventory and the impact of events after the balance
sheet date.* The net realizable value of any inventory used directly for sale such as finished products goods and
materials for sale shall be determined by subtracting the estimated sales expenses and related taxes from the
estimated selling price during normal production and operation. For inventories held for the purpose of
executing sales contracts or service contracts the contract price is used as the measurement basis for their net
realizable value; if the quantity of inventory held exceeds the quantity ordered under the sales contract the net
realizable value of the excess inventory is measured based on the general selling price. For materials held for
sale their net realizable value is measured based on the market price.* The net realizable value of the inventory of materials to be processed is determined in the normal course
of production and operations by the estimated selling price of the finished goods produced less the estimated
costs to be incurred at completion estimated selling expenses and related taxes. If the net realizable value of the
finished product produced with it is higher than the cost the material is measured at cost; If a decline in the
price of the material indicates that the net realizable value of the finished product is lower than the cost the
material is measured at net realizable value and a provision is made for impairment on inventory based on its
difference.* The Company generally makes provisions for impairment on inventory on the basis of individual
inventory items; in the case of inventories that are large in quantity and low in unit price provisions are made
according to the classes of inventories.* At the balance sheet date if the factors affecting the previous write-down of the value of the inventory
have disappeared the amount of the write-down shall be restored and reversed within the amount of the original
provision for the impairment on inventory and the reversed amount shall be credited to the current profit/loss.
171Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(5) Amortization method of revolving materials
* Amortization method of low-value consumables: One-off writing off upon issuance.* Amortization method of packaging materials: One-off writing off upon issuance.
18. Assets held for sale
None.
19. Debt investment
See V. 11. "Financial Instruments" in the Report for the determination and accounting treatment methods
for expected credit losses in debt investments by the Company.
20. Other debt investment
See V. 11. "Financial Instruments" in the Report for the determination and accounting treatment methods
for expected credit losses in other debt investments by the Company.
21. Long-term receivables
See V. 11. "Financial Instruments" in the Report for the determination and accounting treatment methods
for expected credit losses in long-term receivables by the Company.
22. Long-term equity investment
Long-term equity investments of the Company include equity investments that control and have significant
influence on the investee and equity investments in joint ventures. Investees that can be significantly influenced
by the Company are joint ventures of the Company.
(1) Basis for determination of common control over and significant influence on the investee
Joint control refers to the common control of an arrangement in accordance with relevant agreements and
the activities related to the arrangement must be agreed upon by the parties holding control right before the
decision can be made. In determining whether there is common control it is first determined whether all
participants or a combination of participants collectively control the arrangement and if all participants or a
group of participants must act in concert to determine the activities related to an arrangement it is deemed that
all participants or a group of participants collectively control the arrangement. It is then determined whether
172Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
decisions about the activities related to the arrangement must be made by consensus among the participants who
collectively control the arrangement. It does not constitute common control if there are two or more
combinations of participants that collectively control an arrangement. In determining whether there is common
control the protective rights enjoyed are not taken into account.Significant influence refers to that the investor has the right to participate in making decisions on the
financial and operating policies of the investee but has no right to control or jointly control the formulation of
these policies with other parties. In determining whether significant influence can be exerted on the investee
consideration shall be given to the impact when the voting shares directly or indirectly held by the investor in
the investee and the current exercisable potential voting rights held by the investor and other parties are
assumed to be converted to equity in the investee including the impact of the current convertible warrants
stock options and convertible corporate bonds issued by the investee.When the Company owns more than 20% (including 20%) but less than 50% of the voting shares of the
investee directly or indirectly through a subsidiary it is generally considered the Company can exert a
significant influence on the investee unless there is clear evidence that the Company cannot participate in
making production and operation decisions of the investee under such circumstances in which case there is no
significant influence.
(2) Determination of initial investment cost
For long-term equity investments arising from business merger the investment cost is determined
according to the following regulations:
A. In a business merger under the same control where the merging party pays cash transfers non-cash
assets or assumes debt as the merger consideration the initial investment cost of the long-term equity
investment is based on the share of the mergee's owner's equity in the book value in the consolidated financial
statements of the ultimate controlling party on the merger date. In case of a difference between the initial
investment cost of a long-term equity investment and the cash paid the transferred non-cash assets or the book
value of the debt assumed the capital reserve shall be adjusted; if the capital reserve is insufficient for writing
down the retained earnings shall be adjusted;
B. In a business merger under the same control where the merging party issues equity securities as the
merger consideration the initial investment cost of the long-term equity investment is based on the share of the
mergee's owner's equity in the book value in the consolidated financial statements of the ultimate controlling
173Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
party on the merger date. With the total carrying value of the issued shares as the share capital in case of a
difference between the initial investment cost of a long-term equity investment and the total carrying value of
the shares issued the capital reserve shall be adjusted; if the capital reserve is insufficient for writing down the
retained earnings shall be adjusted;
C. In a business merger not under the same control the merger cost as the initial investment cost of long-
term equity investment is determined with the fair value of the assets paid liabilities incurred or assumed and
equity securities issued to obtain the control of the acquiree on the purchase date. Intermediary fees such as
audit legal service evaluation and consulting fees and other related management expenses incurred by the
merging party are credited to the current profit or loss when incurred.Except long-term equity investments arising from business merger the investment cost of long-term equity
investments acquired by other means is determined according to the following regulations:
A. For long-term equity investments acquired by cash payments the purchase price actually paid is the
investment cost. Initial investment costs include fees taxes and other necessary expenses directly related to the
acquired long-term equity investments;
B. For long-term equity investments acquired by issuing equity securities the fair value of the issued
equity securities is the initial investment cost;
C. In a business merger not under the same control the merger cost as the initial investment cost of long-
term equity investment is determined with the fair value of the assets paid liabilities incurred or assumed and
equity securities issued to obtain the control of the acquiree on the purchase date. Intermediary fees such as
audit legal service evaluation and consulting fees and other related management expenses incurred by the
merging party are credited to the current profit or loss when incurred.D. For long-term equity assets acquired by debt restructuring the entry value is determined based on the
fair value of the given up debt and other costs such as taxes that are directly attributable to the asset and the
difference between the fair value of the given up debt and the book value is credited to the current profit or loss.
(3) Subsequent measurement and recognition methods for profits and losses
Long-term equity investments that the Company has the control over the investee are accounted for with
the cost method; long-term equity investments of associated enterprises and joint ventures are accounted for
with the equity method.* Cost method
174Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
For long-term equity investments accounted for with the cost method the cost of long-term equity
investments is adjusted when adding or withdrawing investments; the cash dividends or profits declared and
distributed by the investee are recognized as current investment income.* Equity method
For long-term equity investments accounted for with the equity method the general accounting treatment
is as follows:
If the investment cost of a long-term equity investment of the Company is greater than the fair value share
of the investee's identifiable net assets to which it is entitled at the time of investment the initial investment cost
of the long-term equity investment shall not be adjusted; if the initial investment cost of a long-term equity
investment is less than the fair value share of the identifiable net assets of the investee to which it is entitled at
the time of investment the difference is credited to the current profit or loss and the cost of the long-term
equity investment is adjusted at the same time.The Company recognizes investment income and other comprehensive income respectively and adjusts the
book value of long-term equity investments in accordance with the share of net profit/loss and other
comprehensive income realized by the investee to which it is entitled or shall contribute; the Company
calculates the portion of profits or cash dividends declared and distributed by the investee to which it is entitled
and reduces the book value of the long-term equity investment accordingly; in case of other changes in owners'
equity other than net profit/loss other comprehensive income and profit distribution of the investee the book
value of the long-term equity investment shall be adjusted and credited to owners' equity. When recognizing the
share of the investee's net profit or loss to which it is entitled the net profit of the investee is recognized after
adjustment based on the fair value of the investee's identifiable net assets at the time of acquisition of the
investment. If the accounting policies and accounting periods adopted by the investee are inconsistent with
those of the Company the financial statements of the investee shall be adjusted in accordance with the
accounting policies and accounting periods of the Company and the investment income other comprehensive
income etc. shall be recognized accordingly. Gains and losses on unrealized internal transactions between the
Company and associated enterprises and joint ventures are offset in accordance with the proportion attributable
to the Company as it is entitled to on the basis of which investment gains and losses are recognized. If an
unrealized internal transaction loss between the Company and the investee is an asset impairment loss it shall
be fully recognized.
175Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
If significant influence can be exerted on the investee or common control but not control can be exercised
due to additional investment or other reasons the sum of the fair value of the originally held equity investment
and the cost of the new investment shall be the initial investment cost as being accounted for with the equity
method instead. Where the equity investment originally held is classified as an investment in other equity
instruments the difference between its fair value and book value as well as the accumulated gains or losses
originally credited to other comprehensive income shall be transferred from other comprehensive income and
credited to retained earnings in the current period as being accounted for with the equity method instead.If the common control or significant influence on the investee is lost due to the disposal of part of the
equity investment or other reasons the remaining equity after such disposal is measured at fair value instead
and the difference between the fair value and book value on the date when the common control or significant
influence is lost is credited to the current profit or loss. Other comprehensive incomes recognized as a result of
accounting for the original equity investment with the equity method shall be accounted for on the same basis as
the direct disposal of the relevant assets or liabilities by the investee upon termination of applying the equity
method for accounting.
(4) Equity investments held for sale
Where all or part of the equity investments of associated enterprises or joint ventures are classified as
assets held for sale refer to V. 18 of the Financial Report for relevant accounting treatment.The equity method shall be applied for the accounting treatment of the remaining equity investments not
classified as assets held for sale.If an equity investment in an associated enterprise or joint venture that has been classified as an asset held
for sale no longer meets the conditions for being so classified it shall be adjusted retroactively with the equity
method from the date it is classified as an asset held for sale. The financial statements of the period when they
are classified as held for sale shall be adjusted accordingly.
(5) Methods for impairment test and provision for impairment
For investments in subsidiaries associated enterprises and joint ventures refer to V. 30 of the Financial
Report for the method for provision for assets impairment.
23. Investment property
Measurement model of investment property
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Measurement with cost method
Depreciation or amortization method
Depreciation or amortization method
1. Investment property includes leased land use rights land use rights held and ready to be assigned after
appreciation and leased buildings.
2. Investment property is measured initially at cost and subsequently with cost model. The provision for
depreciation and amortization of the investment property are made in the way as used for fixed assets and
intangible assets. If there is any sign showing that the investment property is impaired on the balance sheet date
the provision of impairment reserve shall be made accordingly based on the difference between the book value
and the recoverable amount.See V. 30. Long-term assets impairment for details about the methods for impairment test and provision for
impairment applicable to investment properties.If the real estate for private use or inventory is converted to an investment property or the investment
property is converted to a real estate for private use the book value before such conversion shall be deemed as
the entry value after the conversion.If the purpose of an investment property is changed to private use this investment property shall be
converted into a fixed or intangible asset from the date of change. If the purpose of a property is changed to rent
gains or capital appreciation from private use the fixed asset or intangible asset shall be converted into an
investment property from the date of change. If any asset is converted into an investment property measured
with the cost model the book value before the conversion shall be deemed as the entry value after the
conversion. If any asset is converted into an investment property measured with the fair value model the fair
value on the conversion date shall be deemed as the entry value after the conversion.An investment property shall be derecognized if this investment property is disposed of or permanently
retired and it is expected that no economic benefits can be obtained from its disposal. The disposal income
from the sale transfer scrapping or damage of an investment property shall be included in the current profits
and losses after deducting its book value and relevant taxes and dues.
177Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
24. Fixed assets
(1) Conditions for recognition
Fixed assets refer to the tangible assets that are held for production of goods provision of labor services
lease or operation management and of which the service life exceeds one fiscal year.Fixed assets shall be recorded at the actual cost upon the acquisition and subject to the provision for
straight-line depreciation from the next month following the date when they are ready for use as intended.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation life Residual rate
rate
Houses and buildings Straight-line method 20-40 years 5% 2.375%-4.75%
Machinery and
Straight-line method 10 years 5% 9.50%
equipment
Transportation
Straight-line method 5 years 5% 19.00%
equipment
Electronics and other
Straight-line method 5 years 5% 19.00%
equipment
25. Construction in progress
(1) Construction in progress is accounted for by category of approved projects.
(2) Criteria and timing for converting construction in progress into fixed assets
The entry value of fixed assets shall be the total expenditure incurred before the asset constructed reaches
the predetermined usable state of the project under construction including construction costs original cost of
machinery and equipment and other necessary expenditures incurred to bring the project under construction to
the predetermined usable state as well as borrowing costs incurred to borrow specifically for the project before
the asset reaches the predetermined usable state and borrowing costs incurred for the general borrowings used.When a project reaches the predetermined usable state after completion of installation or construction the
project under construction is carried over to fixed assets by the Company. Fixed assets constructed that have
reached the predetermined usable state but have not yet been arranged for the final settlement of account shall
from the date when the predetermined usable state is reached be carried over to fixed assets at the estimated
value according to the project budget construction cost or actual project cost etc. and a provision for the
depreciation of the fixed assets shall be made in accordance with the Company's fixed assets depreciation policy.
178Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
After the final settlement of account the original provisional value shall then be adjusted according to the actual
cost but the amount of depreciation originally accrued shall not be adjusted.
26. Borrowing costs
(1) Recognition principle for capitalizing borrowing costs and capitalization period
Borrowing costs incurred by the Company that can be directly attributable to the acquisition construction
or production of assets eligible for capitalization are capitalized and credited to the relevant asset cost when the
following conditions are all met:
* Asset expenditures have incurred;
* Borrowing costs have incurred;
* Acquisition construction or production activities necessary for assets to reach the intended usable state
have begun.Other borrowing interests discounts or premiums and currency translation differences are credited to
current profit or loss.The capitalization of borrowing costs shall be suspended if the acquisition construction or production of
assets eligible for capitalization is abnormally interrupted for more than 3 successive months.When the acquisition construction or production of assets eligible for capitalization reach the
predetermined usable or marketable state the capitalization of its borrowing costs shall cease; subsequent
borrowing costs shall be recognized as expenses in the incurring period.
(2) Capitalization rate of borrowing costs and calculation method of capitalized amount
Where specific borrowings are made for the acquisition construction or production of assets eligible for
capitalization the amount of interest expense actually incurred during the period of the specific borrowings
minus the interest income derived from depositing the loan funds not yet used in the bank or the investment
income derived from temporary investment shall be determined as the capitalized amount of interest expense of
specific borrowings.Where general borrowings are used for the acquisition construction or production of assets eligible for
capitalization the amount of interest to be capitalized on the general borrowings shall be calculated and
determined by multiplying the weighted average amount of the accumulated asset expenditure in excess of the
179Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
specific borrowings by the capitalization rate of the general borrowings. The capitalization rate is determined by
calculating the weighted average interest rate on general borrowings.
27. Biological assets
None.
28. Oil and gas assets
None.
29. Intangible assets
(1) Service life and its determination criteria estimation amortization method or review procedure
(1) Pricing method of intangible assets
It is recorded at actual cost at the time of acquisition.
(2) Service life and amortization of intangible assets
* Estimation of useful life of intangible assets with a limited useful life:
The land usage right shall be averagely amortized within the remaining service life (generally 50 years)
the software shall be averagely amortized within 3-5 years and the patent rights and non-patent technologies
within 5-10 years.At the end of each year the Company reviews the useful life and amortization method of intangible assets
with a limited useful life. Upon review the useful life and amortization method of intangible assets at the end of
the current period are no different from those previously estimated.* Intangible assets that cannot be predicted to bring economic benefits to the enterprise shall be regarded
as intangible assets with uncertain useful life. For intangible assets with an uncertain service life the Company
reviews their service lives at the end of each year. If its life is still uncertain after the review an impairment test
is conducted on the balance sheet date.* Amortization of intangible assets
For intangible assets with limited useful life the Company determines their useful life at the time of
acquisition and amortizes them reasonably within the useful life with the straight-line method and the
amortized amounts are credited to the current profit/loss or the cost of the related assets according to the
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beneficial items. The specific amortized amount is the amount of its cost less the estimated salvage value. For
intangible assets for which provisions for impairment have been made the accumulated amount of impairment
provisions for the assets shall also be deducted. The salvage value of an intangible asset with a limited useful
life is deemed to be zero except where a third party has committed to acquire the intangible asset at the end of
its useful life or information about the estimated salvage value is available based on an active market and such
market is likely to exist at the end of the useful life of the asset.Intangible assets with an uncertain service life shall not be amortized. At the end of each year the useful
life of intangible assets with uncertain useful life is reviewed and if there is evidence that its useful service life
is limited its useful life is estimated and systematically amortized within the expected useful life.
(2) Scope of R&D expenditures and related accounting treatment methods
The Company includes all expenses directly related to the development of R&D activities as R&D
expenses including salaries of R&D personnel direct input costs depreciation costs and long-term amortized
expenses design costs equipment commissioning costs intangible assets amortized costs commissioned
external R&D costs and other expenses.
1. Specific criteria for dividing the research and development stages of internal R&D projects
* The Company regards the period for developing information and conducting related preparations for
further development activities as the research stage and the expenditure incurred in the research stage of
intangible assets is credited to the current profit or loss when incurred.* The period in which development activities are carried out after the Company has completed the work
in the research stage is regarded as the development stage.
2. Specific criteria for capitalization of expenditures in the development stage
Expenditures incurred at the development stage are recognized as intangible assets only when all of the
following conditions are met:
A. The intangible asset is completed to make it technically feasible for use or sale;
B. There is an intention to complete and use or sell the intangible asset;
C. Intangible assets generate economic benefits in a manner that can prove the existence of a market for
products produced with the intangible asset or the existence of a market for the intangible asset itself and the
usefulness of the intangible asset if used internally;
181Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
D. The development of the intangible asset is supported by adequate technical financial and other
resources and the capability to use or sold the intangible asset is available;
E. Expenditures attributable to the development stage of the intangible asset can be well measured.
30. Long-term assets impairment
Asset impairment of long-term equity investments of subsidiaries associated enterprises and joint ventures
and asset impairment of investment real estates fixed assets construction in progress right-of-use assets
intangible assets goodwill etc. (except inventories investment real estates measured at fair value deferred tax
assets and financial assets) shall be determined by the following method:
At the balance sheet date the Company determines whether there is any indication for possible impairment
of the asset. If there is any indication of impairment the Company will estimate the recoverable amount and
conduct an impairment test. For goodwill arising from a business merger intangible assets with uncertain useful
life and intangible assets that have not reached the useful condition the impairment tests shall be carried out
every year whether there are indications of impairment or not.The recoverable amount is determined by the higher of the net amount of the asset i.e. fair value minus
disposal expenses and the present value of the expected future cash flows of the asset. The Company estimates
the recoverable amount on the basis of individual assets; If it is difficult to estimate the recoverable amount of a
single asset the recoverable amount of the asset group shall be determined on the basis of the asset group to
which the asset is classified. The determination of an asset group is based on whether the major cash inflow
generated by the asset group is independent of the cash inflow of other assets or other asset groups.When the recoverable amount of an asset or asset group is lower than its book value the Company will
write down its book value to the recoverable amount credit the amount reduced to the current profit or loss and
make the corresponding asset impairment provision.For the impairment test of goodwill the book value of goodwill arising from the business merger is
apportioned to the relevant asset group in a reasonable manner from the date of acquisition; if it is difficult to
apportion to the relevant asset group it is apportioned to the relevant portfolio of asset groups. The relevant
asset group or portfolio of asset groups is one that can benefit from the synergies of the business merger and is
not larger than the reporting segment identified by the Company.During the impairment test if there are indications of impairment in the asset group or portfolio of asset
groups related to goodwill the impairment test is first carried out on the asset groups or portfolios without
182Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
goodwill to calculate the recoverable amount and determine the corresponding impairment loss. Then the
impairment test is carried on the asset groups or portfolios with goodwill to compare their book value and
recoverable amount and determine the impairment loss of goodwill if the recoverable amount is lower than the
book value.Once an asset impairment loss is recognized it will not be reversed in future accounting periods.
31. Long-term deferred expenses
Long-term deferred expenses refer to various expenses that have been incurred by the Company and shall
be amortized in the current period and the following periods if the total amortization period is longer than 1 year.The actual amount is accounted for and amortized evenly over the benefit period or specified period. In
case future accounting period cannot benefit from long-term deferred expenses all unamortized value of the
item shall be transferred into the current profits and losses.
32. Contract liabilities
The Company presents contractual assets or contract liabilities in the balance sheet based on the
relationship between performance obligations and customer payments. The Company's obligation to transfer
commodities or services to customers for consideration received or receivable by the Company is listed as
contract liability.
33. Employee compensation
(1) Accounting treatment of short-term compensation
* Basic pay of employee (salary bonus allowance and subsidy)
During the accounting periods in which employees provide services the Company recognizes the short-
term compensation actually incurred as a liability and includes it in the current profit or loss unless it is
required or allowed to be credited to the cost of assets by other accounting standards.* In-service employee benefits
Employee benefits incurred by the Company are credited to the profit or loss for the period in which they
are actually incurred based on the actual amounts incurred. In case of non-monetary employee benefits they
shall be measured at fair value.
183Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
* Medical insurance premiums work-related injury insurance premiums maternity insurance and other
social insurance premiums and housing provident funds as well as trade union funds and employee education
funds
For medical insurance premiums work-related injury insurance premiums maternity insurance premiums
other social insurance premiums and housing provident funds as well as the funds for the trade union and the
education paid by the Company for employees the Company calculates the corresponding amount of the
employees' compensation and recognizes the corresponding liabilities according to the prescribed accrual basis
and proportion and credits them to the current profit or loss or related asset costs.* Short-term compensated absences
When an employee provides services that increase his or her future entitlement to compensated absences
the Company recognizes the employee's compensation associated with accumulated compensated absences and
measures it against the expected increase in the amount of payments due to accumulated unexercised
entitlement. The Company recognizes employee compensation related to non-cumulative compensated absence
during the accounting period in which the employee's absence actually occurred.* Short-term profit sharing plan
If the profit sharing plan meets the following conditions concurrently the Company will recognize the
relevant employee remuneration payable:
A. The enterprise has the statutory or presumptive obligation to pay the employees' compensation due to
past events;
B. The amount of obligatory employee compensation payable due as a result of the profit sharing plan can
be reliably estimated.
(2) Accounting treatment of post-employment benefits
* Defined contribution plan
In accounting periods in which services are provided by employees the Company recognizes the
contribution amount calculated according to the formulated contribution plan as a liability and credited it to the
current profit or loss or the relevant asset cost.If according to the defined contribution plan it is not expected to pay the full amount of contribution due
within twelve months after the end of the Annual Reporting Period in which the employee provides the relevant
services the Company measures the employee pay payable with the discounted total contribution amount by
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reference to the corresponding discount rate (determined by the market yield of national bonds or high-quality
corporate bonds in the active market that match the term and currency of the defined contribution plan
obligations at the balance sheet date).* Defined benefit plan
A. Determination of present value and current service costs of obligations under the defined benefit plan
Unbiased and mutually consistent actuarial assumptions are used to estimate the relevant demographic and
financial variables measure the obligations arising from the defined benefit plan and determine the vesting
period of the related obligations under the expected cumulative benefit unit approach. The Company discounts
the obligations under the defined benefit plan at the corresponding discount rate (determined by the market
yield of national bonds or high-quality corporate bonds in the active market that match the term and currency of
the defined contribution plan obligations at the balance sheet date) to determine the present value of the
obligations and the current service costs.B. Confirmation of net liabilities or assets of defined benefit plan
If there are assets in a defined benefit plan the Company recognizes the deficit or surplus resulting from
the present value of defined benefit plan obligations less the fair value of defined benefit plan assets as a net
liability or net asset of the defined benefit plan.If there is a surplus in a defined benefit plan the Company measures the net assets of the defined benefit
plan to the lesser of the surplus of the defined benefit plan and the asset ceiling.C. Determination of amount to be credited to assets cost or current profit or loss
Service costs include current service costs past service costs and settlement gains or losses. Except the
service costs in the current period which are required or allowed to be credited to asset costs under other
accounting standards other service costs are credited to the current profit or loss.The net interest on net liabilities or net assets of defined benefit plans including interest gains on the assets
in the plan interest expenses on defined benefit plan obligations and interests affected by the asset ceiling are
credited to the current profit or loss.D. Determination of amount to be credited to other comprehensive income
Changes resulting from the remeasurement of net liabilities or net assets of defined benefit plans include:
(a) Actuarial gain or loss which is an increase or decrease in the present value of previously measured
defined benefit plan obligations due to actuarial assumptions and empirical adjustments;
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(b) Return on plan assets less the amount included in the net interest on net liabilities or net assets of the
defined benefit plan;
(c) Changes due to impact of the asset ceiling less the amount included in the net interest on net liabilities
or net assets of the defined benefit plan.Changes resulting from the above remeasurement of net liabilities or net assets of defined benefit plans are
directly credited to other comprehensive income and are not allowed to be carried back to profit or loss in
subsequent accounting periods. Upon termination of the original defined benefit plan the Company carries
forward to undistributed profit in full the portion originally credited to other comprehensive income within the
scope of equity.
(3) Accounting treatment of dismissal benefits
If the Company provides dismissal benefits to an employee the employee compensation liability arising
from the dismissal benefits is recognized at the sooner of the following two events and shall be credited to the
current profit or loss:
* When the Company cannot unilaterally withdraw the termination benefits provided by the termination
of the labor relation plan or cut-down proposal;
* When the Company confirms the costs or expenses related to the restructuring involving the payment of
termination benefits.If it is expected that the dismissal benefits cannot be paid in full amount within twelve months after the
end of the Annual Reporting Period the Company discounts the amount of the dismissal benefits by reference
to the corresponding discount rate (determined by the market yield of national bonds or high-quality corporate
bonds in the active market that match the term and currency of the defined contribution plan obligations at the
balance sheet date) and measures the employee pay payable with the discounted amount.
(4) Accounting treatment of other long-term employee benefits
None.
34. Estimated liabilities
(1) Recognition criteria for estimated liabilities
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The Company recognizes obligations related to contingencies as estimated liabilities if they also meet the
following conditions:
* The obligation is a current obligation assumed by the Company;
* The performance of such obligation is likely to result in the outflow of economic benefits from the
Company;
* The amount of such obligation can be measured reliably.
(2) Measurement method for estimated liabilities
Estimated liabilities are initially measured according to the best estimate of expenditures required to meet
the relevant current obligations taking into account such factors as risks uncertainties and the time value of
money associated with contingencies. The book value of estimated liabilities is reviewed at each balance sheet
date. If there is solid evidence that the book value does not reflect the current best estimate the book value is
adjusted according to the current best estimate.
35. Share-based payment
(1) Type of share-based payment
Share-based payments of the Company include share-based payments settled in cash and those settled in
equity.
2. Determination method of fair value of equity instrument
* For shares granted to employees the fair value is measured at the market price of the Company's shares
and is adjusted to take into account the terms and conditions under which the shares are granted (excluding
vesting conditions other than market conditions). * For stock options granted to employees it is difficult to
obtain their market price in many cases. If there are no trading options with similar terms and conditions the
Company chooses an applicable option pricing model to estimate the fair value of the options granted.
(3) Basis for determining the best estimate of equity instruments with viable options
At each balance sheet date in the waiting period the Company will make the best estimate based on the
latest available subsequent information such as the change in the number of employees with viable options and
revise the number of equity instruments with options expected to be exercised to make the best estimate of the
equity instruments with viable options.
(4) Accounting treatment of implementation of share-based payment plan
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Share-based payments settled in cash
* Share-based payments settled in cash where the vested options can be immediately exercised after being
granted is credited to the relevant cost or expense at the fair value of the liability assumed by the Company on
the grant date increasing the liability accordingly. The fair value of the liability is remeasured at each balance
sheet date prior to settlement and at the settlement date and its changes are credited to profit or loss.* For cash-settled share-based payments where the vested option cannot be exercised until the completion
of services or the fulfillment of specified performance conditions within the waiting period at each balance
sheet date in the waiting period services acquired during the period are credited to costs or expenses and
corresponding liabilities at the fair value amount of the liability assumed by the Company based on the best
estimate of exercising the option.Share-based payments settled in equity
* Share-based payments settled in equity where the vested option can be immediately exercised after
being granted in exchange of employees' services is credited to the relevant cost or expense at the fair value of
the equity instruments on the grant date increasing the capital reserve accordingly.* For equity-settled share-based payments where the vested option cannot be exercised in exchange of
employees' services until the completion of services or the fulfillment of specified performance conditions
within the waiting period at each balance sheet date in the waiting period services acquired during the period
are credited to costs or expenses and capital reserve at the fair value at the granting date of equity instruments
based on the best estimate of the number of equity instruments with exercisable option.
(5) Accounting treatment of modification of share-based payment plan
When the Company makes a modification to a share-based payment plan if the modification increases the
fair value of the equity instrument granted the increase in the services obtained is recognized according to the
increase in the fair value of the equity instrument; if the modification increases the number of equity
instruments granted the fair value of the increased equity instruments is recognized accordingly as an increase
in the acquired services. The increase in the fair value of equity instruments refers to the difference between the
original and modified fair values of equity instruments at the date of the modification. If a modification reduces
the total fair value of a share-based payment or the terms and conditions of a share-based payment plan is
modified to the detriment of employees further accounting treatment will be made for the services obtained like
such modification has never occurred unless the Company cancels some or all of the equity instruments granted.
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(6) Accounting treatment of termination of the share-based payment plan
If equity instruments granted are canceled or settled in the waiting period (except those canceled due to
failure to fulfill the conditions for exercising the option) the Company will:
* Treat cancellation or settlement as an accelerated exercise option and immediately recognize the amount
that shall have been recognized within the remaining waiting period;
* Treat all payments made to employees at the time of cancellation or settlement as repurchases of equity
and credit the portion of the amount paid for the repurchase exceeding the fair value of the equity instrument at
the repurchase date to the current expense.In case of repurchasing the equity instruments that its employees have exercised the Company writes off
the owner's equity; the portion of any amount paid for the repurchase exceeding the fair value of the equity
instrument at the repurchase date is credited to the current profit or loss.
36. Preferred shares perpetual bonds and other financial instruments
None.
37. Revenue
Disclosing the accounting policies adopted for revenue recognition and measurement by business type
Disclosing the accounting policies adopted for revenue recognition and measurement by business type
(1) General principles
Income is the total inflow of economic benefits generated in the daily activities of the Company which can
result in an increase in shareholders' equity and is not related to shareholders' invested capital.The Company has fulfilled performance obligation in the Contract that is recognizing revenue when the
customer obtains the control right of relevant commodities. Obtaining control over relevant goods refers to the
ability to direct the use of the goods and obtain substantially all of the economic benefits derived from them.If two or more performance obligations are included in a contract the Company apportions the transaction
price to each performed obligation in proportion to the individual selling price of the commodities or services
promised by each performed obligation and measures the revenue according to the transaction price
apportioned to each performed obligation.
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Transaction price is the amount of consideration that the Company expects to be entitled to receive in
connection with the transfer of commodities or services to a customer excluding payments received on behalf
of third parties. In case of a variable consideration when determining the transaction price in a contract the
Company determines the best estimation of the variable consideration based on the expected value or the most
likely amount and includes in the transaction price an amount not exceeding which is highly unlikely to result
in a material reversal of the accumulated recognized revenue at the time the relevant uncertainty is eliminated.If there is a significant financing component in a contract the Company will determine the transaction price
based on the amount payable by the customer in cash upon its acquisition of control of the commodity and
amortize the difference between the transaction price and the contract consideration with the effective interest
method over the term of the contract. The Company does not take into account the financing component if the
interval between the transfer of control and the payment of the price by the customer is less than one year.If one of the following conditions is met the performance obligation is fulfilled within a certain period
otherwise the performance obligation is fulfilled at a certain time point:
* Customers obtain and consume economic benefits arising from performance of the Company during the
Company's performance of the Contract.* The customer can control the in-process commodity during contract performance by the Company;
* The purpose of the commodity produced by the Company during contract performance is irreplaceable
and the Company is entitled to receive payments throughout the contract period for the performance completed
so far.For performance obligations fulfilled within a certain period of time the Company shall recognize revenue
according to the performance progress within that period except that the performance progress cannot be
reasonably determined. The Company determines the performance progress of services provided with the input
method (or output method). When the performance progress cannot be reasonably determined the income is
recognized based on the amount of costs incurred by the Company if compensation of such costs is expected
until the performance progress can be reasonably determined.For contract performance obligations fulfilled at a certain point of time the Company recognizes the
income at the time when the customer obtains the control right of relevant commodities. When judging whether
a customer has obtained the control of a commodity or service the Company takes the following indications
into account:
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* The Company is currently entitled to receive payments in respect of the commodity or service i.e. the
customer has a current payment obligation in respect of the commodity;
* The Company has transferred the legal ownership of the commodity to the customer i.e. the customer
has had the legal ownership of the commodity;
* The Company has transferred the material object of the commodity to the customer i.e. the customer
has owned the material object of the commodity;
* The Company has transferred the major risks and compensation on the ownership of the commodity to
the customer i.e. the customer has received the major risks and compensation on the ownership of the
commodity;
* Customers have accepted the commodities.Sales return terms
For sales with sales return terms the Company recognizes the income based on the consideration amount
to which the Company is expected to be entitled for the commodity handed over to the customer when it obtains
the control of the relevant commodity and recognizes the estimated liability based on the amount to be returned
due to the expected sales return; meanwhile the balance of the book value of the commodity expected to be
returned less the expected cost to be incurred for collection of the returned commodity (including the impaired
value of the returned commodity) is recognized as an asset i.e. return cost receivable and according to the book
value of the transferred commodity at the time of transfer the net amount less the cost of the above asset is
carried over to the cost. At each balance sheet date the Company re-estimates the return of future sales and re-
measures the assets and liabilities described above.Quality assurance obligations
The Company provides quality assurance for the commodities sold and the projects constructed in
accordance with contractual agreements and the provisions of law. For warranty type quality assurance to assure
customers that the commodities sold meet the established standards the Company conducts accounting
treatment in accordance with Accounting Standards for Business Enterprises No. 13 - Contingencies. For
service type quality assurance that provides a separate service in addition to assuring customers that the
commodities sold meet the established standards the Company regards it as a single performance obligation
amortize a portion of the transaction price to the service type quality assurance in proportion to the individual
selling price for providing commodities and services quality assurance and recognizes the income when the
customer obtains the control of the service. In assessing whether the quality assurance provides a separate
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service in addition to assuring the customer that the commodities sold meet established standards the Company
considers factors such as whether the quality assurance is a statutory requirement the warranty period and the
nature of the Company's commitment to perform the task.Principal responsible person and agent
Whether the Company is the principal responsible person or agent in a transaction is determined by
whether the Company has control of the commodities or services before they are transferred to the customer.Where the Company is able to control the commodities or services prior to the transfer of the commodities or
services to the customer the Company is the principle responsible person and recognizes the income based on
the total amount of consideration received or receivable. Otherwise the Company acts as the agent recognizes
the income on the basis of the amount of commission or service charges it is expected to be entitled to receive
which shall be the net amount of the total consideration received or receivable less the price payable to other
interested parties or be determined based on the amount or proportion of commissions established etc.Consideration payable to customers
Where there is a consideration payable to a customer in a contract unless the consideration is for the
purpose of obtaining other clearly distinguishable commodities or services for the customer the Company
writes off the consideration payable from the transaction price and writes off the current income at the time
when the relevant income is recognized or when the consideration is paid (or committed to be paid) to the
customer whichever is later.
(2) Specific method
In case the sales contract between the Company and customers has been deemed as a performance
obligation fulfilled at a certain time point the specific revenue recognition method shall be formulated
according to the actual situation of the Company's product sales as follows:
Domestic sales: * The customer picks up the goods in cash. After the payment and delivery it is
considered that the customer has obtained the control of the relevant goods and the Company has recognized
the sales revenue; * If the advance payment is used for settlement and the other party's customer confirmation
receipt is obtained after the delivery it is considered that the customer has obtained the control of the relevant
commodities and the Company has recognized the sales revenue; * If the credit sale is adopted according to a
certain payment period within which the customer settles and after the delivery the other party's customer
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confirmation receipt is obtained it is considered that the customer has obtained the control of the relevant goods
and the Company has recognized the sales revenue.Foreign sales: the Company shall deliver commodities according to the signed order hold special export
invoice delivery note and other original documents for customs clearance and export pass customs audit
complete export declaration procedures obtain the customs declaration documents as the point of transfer of
control of the relevant goods and recognize the sales revenue by recording the revenue based on the delivery
order special export invoice and customs declaration form.
38. Contract costs
Contractual costs are divided into contract performance costs and contract acquisition costs.The cost incurred by the Company for contract performance is deemed as a contract performance cost and
recognized as an asset if all of the following conditions are met:
* The cost is directly related to a current contract or a contract expected to be acquired including direct
labor cost direct material cost manufacturing (or similar) cost cost clearly stated to be borne by the customer
and other costs incurred only as a result of the contract;
* The cost increases the resources for fulfilling the performance obligation by the Company in the future;
* The cost is expected to be recoverable.When an incremental cost incurred by the Company for acquiring a contract is expected to be recoverable
it is treated as a contract acquisition cost and recognized as an asset.Assets related to contract costs are amortized on the same basis as the recognition of revenue of goods or
services related to that asset; However if the amortization period of contract acquisition costs does not exceed
one year the Company credits it to the current profit or loss when it occurs.If the book value of an asset related to the contract cost is higher than the difference between the following
two items the Company makes a provision for impairment for the excess recognizes it as an asset impairment
loss and further considers whether a provision shall be made for projected liabilities relating to the loss contract:
* Remaining consideration expected to be obtained as a result of the transfer of goods or services related
to the asset;
* Cost estimated to be incurred for the transfer of the relevant commodities or services.
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If the above-mentioned provision for asset impairment is subsequently reversed the book value of the asset
after the reversal shall not exceed the book value of the asset on the reversal date assuming no provision for
impairment was made.Contract performance costs recognized as assets with an amortization period of not more than one year or
one normal operating cycle as determined in the initial recognition are presented under the "Inventory" item
and those with an amortization period of more than one year or one normal operating cycle as determined in the
initial recognition are presented under the "Other non-current assets" item.Contract acquisition costs recognized as assets with an amortization period of not more than one year or
one normal operating cycle as determined in the initial recognition are presented under the "Other current
assets" item and those with an amortization period of more than one year or one normal operating cycle as
determined in the initial recognition are presented under the "Other non-current assets" item.
39. Government subsidies
(1) Recognition of government subsidies
A government subsidy can be recognized only when all of the following conditions are met:
* The Company is able to meet the conditions attached to the government subsidy;
* The Company is able to receive the government subsidy.
(2) Measurement of government subsidies
In case a government subsidy can be classified as a monetary asset it shall be measured according to the
amount received or receivable. In case a government subsidy can be classified as non-monetary asset it shall be
measured at fair value and once the fair value cannot be obtained reliably it shall be measured in the nominal
amount of RMB 1.
(3) Accounting treatment of government subsidies
* Assets-related government subsidies
Government subsidies that the Company obtains for acquisition or construction or otherwise for
developing long-term assets are classified as assets-related government subsidies. When an assets-related
government subsidy is recognized as a deferred income it shall be amortized with a rational and systematic
method and credited to an income or loss within the service life of the related asset. Government subsidies
measured in the nominal amount shall be directly credited to a current income/loss. In case relevant assets are
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sold transferred scrapped or damaged prior to the end of their service life the balance of relevant deferred
income that has not been allocated shall be transferred to the profits and losses of the current period of asset
disposal.* Revenue-related government subsidies
Government subsidies other than those related to assets are classified as revenue-related government
subsidies. Revenue-related government subsidies shall be accounted for in accordance with the following
provisions on a case-by-case basis:
When a revenue-related government subsidy is used to compensate relevant expenses or losses of the
Company in the following period it shall be recognized as a deferred income and credited to a current
income/loss in the period when the related cost or loss is recognized;
When such a subsidy is used to offset relevant incurred costs and expenses or losses of the Company it
shall be directly credited to the current income/loss.For government subsidies including both assets-related and revenue-related subsidies they shall be divided
for separate accounting treatment; if it is difficult to separate them they shall be classified as revenue-related
government subsidies as a whole.Government subsidies associated with the routine activities of the Company shall be credited to Other
Income according to the substance of economic operations. Those that are not associated with the routine
activities of the Company shall be credited to Non-Operating Income/Expense.* Discounted interests of preferential policy loans
In case the Ministry of Finance directly appropriates the discount funds to the Company the Company will
write down the corresponding discount interests against relevant borrowing costs.* Refund of government subsidies
In case a recognized government subsidy needs to be refunded the book value of the asset concerned shall
be adjusted if the book value of the asset was written down when it was initially recognized; if there is a balance
for the relevant deferred income it shall be used to reduce the balanced book value of the deferred income and
any excess shall be credited to a current income/loss; for other cases it shall be directly credited to a current
income/loss.
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40. Deferred tax assets/deferred tax liabilities
The Company generally applies the balance sheet liability method to recognize and measure the income
tax amount affected by the taxable temporary difference or deductible temporary difference as a deferred
income tax liability or deferred income tax asset based on the temporary difference between the book value of
assets and liabilities on the balance sheet date and the tax basis. The Company does not discount deferred
income tax assets and deferred income tax liabilities.
(1) Recognition of deferred income tax assets
For deductible losses and tax credits that are deductible for temporary differences and can be carried
forward to subsequent years the income tax amount so affected shall be calculated at the income tax rate of the
expected carry-back period and the amount of impact shall be recognized as a deferred income tax asset
provided that the Company is likely to obtain future taxable incomes to offset the deductible temporary
differences deductible losses and tax credits.In transactions or matters with the following characteristics the income tax amount affected by a
deductible temporary difference caused by the initial recognition of an asset or liability shall not be recognized
as a deferred income tax asset;
A. The transaction is not a business merger;
B. The occurrence of the transaction does not affect the accounting profit or the taxable income (or
deductible loss).However this exemption from the initial recognition of deferred income tax liabilities and deferred income
tax assets shall not apply to a single transaction in which both the above two conditions are met and the initial
recognition of assets and liabilities results in an equal amount of taxable temporary differences and deductible
temporary differences. For taxable temporary differences and deductible temporary differences arising from the
initial recognition of assets and liabilities of the transaction the Company recognizes the corresponding
deferred income tax liabilities and deferred income tax assets respectively when the transaction takes place.For deductible temporary differences related to investments of subsidiaries associated enterprises and joint
ventures the Company recognizes the amount of income tax impact as a deferred income tax asset (only) when
the following two conditions are both met:
A. The temporary difference is very likely to be reversed in the foreseeable future;
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B. The taxable income used to offset the deductible temporary difference is likely to be available in the
future;
On the balance sheet date if there is conclusive evidence that enough taxable incomes are very likely to be
obtained in future periods to offset the deductible temporary differences the deferred income tax assets not
recognized in the previous period shall be recognized.The Company checks the book value of deferred income tax assets on the balance sheet date. In case it is
very unlikely to obtain enough taxable incomes to offset the benefits of the deferred tax assets in future periods
the book value of the deferred tax assets shall be written down. If it is very likely to obtain enough taxable
incomes the write-down amount shall be reversed.
(2) Recognition of deferred income tax liabilities
For all taxable temporary differences of the Company the amount of income tax impact is measured at the
income tax rate for the expected carry-back period and the amount of impact shall be recognized as a deferred
income tax liability except:
* Income tax impact caused by taxable temporary differences arising from the following transactions or
matters shall not be recognized as a deferred income tax liability:
A. The initial recognition of goodwill;
B. The initial recognition of assets or liabilities arising from a transaction that is not a business merger and
does not affect accounting profits taxable income or deductible losses at the time of the transaction.* Temporary differences in taxable income related to investments in subsidiaries joint ventures and
associated enterprises shall be usually recognized as deferred income tax liabilities except for those that meet
both of the following conditions concurrently:
A. The Company can control the reversal time of the temporary difference;
B. The temporary difference is very unlikely to be reversed in the foreseeable future;
(3) Recognition of deferred tax liabilities or assets related to specific transactions or matters
* Deferred tax liabilities or assets related to business mergers
For taxable temporary differences or deductible temporary differences arising from business mergers not
involving enterprises under common control the goodwill recognized in the business mergers are generally
adjusted for the relevant deferred income tax expenses while recognizing the deferred income tax liabilities or
assets.
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* Items directly credited to owner's equity
Income tax and deferred income tax of the current period related to transactions or matters that are directly
credited to the owner's equity shall be credited to the owner's equity. Transactions or matters with the income
tax impact of temporary differences credited to owners' equity include: other comprehensive income resulting
from changes in the fair value of other debt investments adjusted beginning retained income made with the
retrospective adjustment method for changes in accounting policies or corrected with the retrospective
restatement method to correct differences of (significant) accounting errors in previous period and owner's
equity credited at the time of initial recognition of mixed financial instruments containing both liability
components and equity components.* Recoverable losses and tax credits
A. Recoverable losses and tax credits arising from the Company's own operations
Deductible loss refers to the loss which is allowed to be offset by a taxable income of subsequent years
calculated and determined in accordance with the provisions of the tax law. Losses to offset (deductible losses)
and tax credits that can be carried forward to subsequent years according to the provisions of the tax law shall
be treated as deductible temporary differences. When sufficient taxable income is likely to be obtained during
future periods in which it is expected that a loss to offset or tax credit will be available the corresponding
deferred income tax asset shall be recognized to the extent of the taxable income likely to be obtained while the
income tax expense in the current income statement shall be reduced.B. Recoverable loss to offset of the merged enterprise arising from business merger
The Company obtains deductible temporary differences from the acquiree in business merger which shall
not be recognized if the conditions for recognition of deferred tax assets are not met by the acquisition date.Within 12 months after the acquisition date if new or further information is obtained indicating that the relevant
circumstances already existed by the acquisition date and the economic benefits brought about by the deductible
temporary difference is expected to be realized by the acquiree by the acquisition date the relevant deferred tax
assets shall be recognized and goodwill shall be reduced at the same time. If there is insufficient goodwill to
offset the difference shall be recognized as a current profit/loss; in addition to the above circumstances
deferred tax assets related to business merger shall be recognized and credited to the current profit/loss.* Temporary differences arising from offsets in consolidated statements
When preparing the consolidated financial statements the Company recognizes deferred income tax assets
or liabilities in the consolidated balance sheet and adjusts the income tax expense in the consolidated income
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statement if there is a temporary difference between the carrying value of the assets or liabilities in the
consolidated balance sheet and the tax basis of the taxable entity concerned due to the offset of unrealized gains
and losses on internal sales except deferred income taxes related to transactions or matters directly credited to
owners' equity and related to business merger.* Equity-settled share-based payments
If the tax law allows pre-tax deductions for expenses related to share-based payments when recognizing
costs and expenses in accordance with the accounting standards the Company calculates and determines the tax
basis and the resulting temporary differences based on the pre-tax deductible amount estimated with the
information obtained at the end of the accounting period and recognizes the relevant deferred income tax if the
conditions for recognition are met. If the amount that is expected to be deductible before tax in future periods
exceeds the costs and expenses related to the share-based payments recognized in accordance with the
provisions of the accounting standards the income tax impact of the excess shall be directly credited to owners'
equity.* Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments by the Company as the issuer where the relevant
dividend payout is deducted before corporate income tax in accordance with the relevant provisions of tax
policies the Company recognizes the income tax impact related to the dividend when recognizing the dividend
payable. The income tax impact of dividends shall be credited to the current profit/loss if the profit distributed is
derived from a transaction or matter previously generated profit or loss; the income tax impact of dividends
shall be credited to owners' equity if the profit distributed is derived from a transaction or matter previously
recognized in owners' equity.
(4) Basis for presentation of net balances of deferred income tax assets and liabilities
When all of the following conditions are met the Company presents net balances of deferred income tax
assets and liabilities after offsetting:
* The Company is entitled to settle current income tax assets and liabilities on a net basis;
* Deferred income tax assets and liabilities are related to the income tax levied by the same taxation
authority on the same taxpayer or to different taxpayers but during the period in which each future deferred
income tax asset and liability of significance is reversed the involved taxpayer intends to settle current income
tax assets and liabilities on a net basis or acquire assets and pay off debts at the same time.
199Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
41. Lease
(1) Accounting treatment of lease as the lessee
On the commencement date of the lease term the Company considers a lease with lease term no more than
12 months and which does not include a purchase option to be a short-term lease and a lease with a low value
when a single leased asset is a new asset as a low-value asset lease. Where the Company subleases or intends to
sublease a leased asset the original lease is not deemed to be a low-value asset lease.For all short-term leases and leases of low value assets the Company will include lease payments in the
relevant asset costs or current profits and losses using the straight-line method during each period of the lease
term.With the exception of the above short-term leases and low-value asset leases treated by simplified
treatment the Company recognizes the right-of-use assets and lease liabilities on the lease on the
commencement date of the lease term.* Right-of-use assets
A right-of-use asset refers to the lessee's right to use the leased asset during the lease term.On the commencement date of the lease term an initial measurement of right-of-use assets shall be carried
out according to the cost. The cost is composed of:
The initially measured amount of the lease liability;
Lease payment paid on or before the commencement date of the lease term minus relevant amount of the
enjoyed lease incentives (if any);
Initial direct expenses incurred by the leasee;
An estimate of costs to be incurred by the leasee in dismantling and removing the lease asset restoring the
site where the lease asset resides or restoring the lease asset to the condition required by the terms and
conditions of the lease. The Company recognizes and measures the costs according to the recognition criteria
and measurement method for estimated liabilities. Refer to Note V.17 for details. The aforementioned costs are
incurred for the production of inventory and will be credited to the cost of inventory.The straight-line depreciation method shall be applied for the depreciation classification and provision of
right-of-use assets. If it can be reasonably ascertained that the ownership of the leased asset will be acquired at
the end of the lease term the depreciation rate shall be determined according to the class of the right-of-use
asset and the estimated net salvage value rate during the expected remaining useful life of the leased asset;
200Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
otherwise the depreciation rate shall be determined on the basis of the class of the use-of-right asset during the
shorter of the lease term and the remaining useful life of the leased asset.* Lease liabilities
The initial measurement of lease liabilities shall be based on the present value of the lease payment
payable on the commencement date of the lease term. The amount of lease payments shall consist of the
following five components:
1. Fixed payment amount and substantial fixed payment amount and if there are lease incentives minus
the amount related to lease incentives;
2. Variable lease payment amount depending on the index or rate;
3. Exercise price of the purchase option provided that the lessee reasonably determines to exercise the
option;
4. Amount payable to exercise the option to terminate the lease provided that it is reflected in the lease
term that the lessee will exercise the option to terminate the lease;
5. Amount expected to be paid based on the remaining value of the security provided by the lessee.
When computing the present value of a lease payment the implicit interest rate of the lease shall be used as
the discount rate; when such implicit interest rate cannot be determined the incremental borrowing rate of the
Company shall be used as the discount rate. The difference between the lease payment amount and its present
value shall be recognized as an unrecognized financing expense and the interest expense shall be recognized at
the discount rate of the present value of the lease payment amount during each period of the lease term and
credited to the current profit/loss. Variable lease payments not included in the measurement of lease liabilities
shall be credited to the current profit/loss at the actual time of incurring.After the commencement of the lease term when there is a change in the substantial fixed payment amount
a change in the estimated amount payable on the security balance a change in the index or ratio used to
determine the lease payment amount a change in the evaluation result of the purchase option the renewal
option or the termination option or a change in the actual exercise of the option the Company will remeasure
the lease liability at the present value of the changed lease payment amount and adjust the book value of the
right-of-use assets accordingly.
201Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Accounting treatment of lease as the lessor
On the commencement date of the lease the Company classifies leases that substantially transfer virtually
all of the risks and compensations associated with ownership of the leased assets as finance leases and all other
leases as operating leases.* Operating lease
The Company recognizes lease receipts as rental income on a straight-line basis during each period of the
lease term capitalize and apportion the initial direct expenses incurred on the same basis as rental income
recognition and credit the direct expenses to the current profit/loss in installments. The Company credits to the
current profit/loss the amount of variable lease payments acquired in relation to operating leases that are not
included in lease receipts when actually incurred.* Finance lease
On the commencement date of the lease the Company recognizes finance lease receivables on the basis of
net lease investment (the sum of the unsecured balance value and the present value of the lease proceeds not yet
received by the commencement date of the lease term discounted at the implicit interest rate of the lease) and
terminates the recognition of the finance lease assets. In each period of the lease term the Company calculates
and recognizes the interest income at the implicit interest rate of the lease.Variable lease payments acquired by the Company and not included in the measurement of the net lease
investment shall be credited to the current profit/loss at the actual time of incurring.
42. Other important accounting policies and accounting estimation
Share repurchase
(1) Where the Company has reported and has been approved to purchase the Company's shares for capital
reduction in accordance with legal procedures the share capital shall be reduced by the total par value of the
shares cancelled the owners' equity shall be adjusted in case of a difference between the price paid for the
repurchase of the shares (including transaction fees) and the par value of the shares; the portion in excess of the
total par value shall write down the capital reserve (share capital premium) surplus reserve and undistributed
profits in turn and the portion less than the total par value shall be added to the capital reserve (equity
premium).
202Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) The shares repurchased by the Company shall be managed as treasury shares before cancellation or
transfer and all expenses for share repurchase shall be converted into treasury share costs.
(3) In case of a transfer of treasury shares the portion of the transfer income higher than the cost of
treasury share is added to the capital reserve (equity premium); the portion lower than the cost of Treasury
shares shall write down the capital reserve (equity premium) surplus reserve and undistributed profit in turn.Restricted shares
In the equity incentive plan the Company grants restricted shares to the incentivized subjects who shall
subscribe for the shares first and if the unlocking conditions stipulated in the equity incentive plan are not met
later the Company will repurchase the shares at the price agreed in advance. Where the restricted shares issued
to the employees have gone through the registration and other capital increase procedures in accordance with
relevant regulations the Company shall on the grant date recognize the share capital and capital reserve
(capital premium) based on the subscription payment received from the employees and also recognize the
treasury shares and other payables for the repurchase obligations.
43. Important accounting policy and accounting estimation changes
(1) Important accounting policy changes
□ Applicable□ Not applicable
(2) Important accounting estimation changes
□ Applicable□ Not applicable
(3) Relevant items in financial statements at the beginning of 2025 when such adjustments were made for the first time for
initial implementation of the new accounting standard
□ Applicable□ Not applicable
44. Others
VI. Tax
1. Main tax types and tax rate
Tax type Tax basis Tax rate
203Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Revenue from
VAT (value-added tax) 13.00% 9.00% 6.00% 3.00% 0% (Note 1)
sales of goods
Paid turnover tax
City maintenance and construction tax 7.00% 5.00%
amount
See the table below (Note 2) for taxpayers subject to different
Corporate income tax Taxable income
corporate income tax rates and their tax rates.Paid turnover tax
Education surcharge 3.00% 2.00%
amount
(Note 1) Shenzhen YAKO Automation Technology Co. Ltd. was recognized as a software enterprise by
Shenzhen Economic Trade and Information Commission on April 27 2013 and received the software enterprise
certification No. Shen R-2010-0237; Shenzhen Topband Software Technology Co. Ltd. was recognized as a
software enterprise by Shenzhen Economic Trade and Information Commission on Friday June 28 2013 and
received the software enterprise certification No. Shen R-2013-0616; Shenzhen Yansheng Software Co. Ltd. was
recognized as a software enterprise by Shenzhen Software Industry Association on August 31 2017 and received
the software enterprise certification No. Shen RQ-2017-0587; Shenzhen Allied Control System Co. Ltd. was
recognized as a software enterprise by Shenzhen Economic Trade and Information Commission on June 28 2013
and received the software enterprise certification No. Shen R-2013-0775. According to the Notice of the Ministry
of Finance and the State Taxation Administration on VAT Policies for Software Products (No. 25 in 2023) after
the sales revenue of the above products is levied for value-added tax at the statutory tax rate of 13.00% during the
Reporting Period the refund-upon-collection policy shall be applied to the portion of the actual VAT burden in
excess of 3.00%.According to the Notice of the Ministry of Finance and the State Taxation Administration on VAT Policies
for Software Products (CS [2011] No. 100) the refund-upon-collection policy shall be applied to the part of the
actual VAT burden of software products in excess of 3.00%. The provisions of this policy apply to Shenzhen
Meanstone Intelligent Technology Co. Ltd. a subsidiary of the Company.(Note 2) Taxpayers of the Company subject to different corporate income tax rates and their tax rates are as
follows
Name of taxpayer Corporate income tax rate
Shenzhen Topband Co. Ltd. 15.00%
Shenzhen Topband Software Technology Co. Ltd. 15.00%
Shenzhen Topband Automation Technology Co. Ltd. 15.00%
Shenzhen Topband Battery Co. Ltd. 15.00%
Huizhou Topband Lithium Battery Co. Ltd. 20.00%
Taixing Topband Lithium Battery Co. Ltd. 15.00%
Nantong Topband Lithium Battery Co. Ltd. 25.00%
Yolaness Technology (HK) Co. Limited 16.50%
204Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Chongqing Topband Industrial Co. Ltd. 25.00%
Topband (Hong Kong) Co. Ltd. 8.25% 16.50%
Topband Germany GmbH 15.825%
TOPBAND SMART DONG NAI (VIETNAM) COMPANY LIMITED 20.00%
TOPBAND JAPAN Co. Ltd 23.20%
Q.B.PTE.LTD 17.00%
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. 16.00%
TOPBAND MEXICO S.DE R.L.DE C.V. 30.00%
Huizhou Topband Electrical Technology Co. Ltd. 15.00%
TOPBAND INDIA PRIVATE LIMITED 25.17%
Shenzhen YAKO Automation Technology Co. Ltd. 15.00%
Shenzhen Yansheng Software Co. Ltd. 15.00%
Hangzhou Zhidong Motor Technology Co. Ltd. 20.00%
Huizhou YAKO Automation Technology Co. Ltd. 25.00%
Shenzhen Allied Control System Co. Ltd. 25.00%
Ningbo Topband Intelligent Control Co. Ltd. 25.00%
Shenzhen Meanstone Intelligent Technology Co. Ltd. 20.00%
Shenzhen Topband Supply Chain Services Co. Ltd. 25.00%
Shenzhen Topband Investment Co. Ltd. 25.00%
Shenzhen Tunnu Innovation Co. Ltd. 20.00%
Tunnu Innovation (Hong Kong) Limited 16.50%
TUNNU INNOVATION INC 21.00%
Shenzhen Zhongli Consulting Co. Ltd. 20.00%
Shenzhen Yueshang Robot Co. Ltd. 20.00%
Shenzhen Topband Digital Energy Co. Ltd. 20.00%
Topband Digital Energy Technology (Huizhou) Co. Ltd. 20.00%
Chongqing Topband Yishu Energy Technology Co. Ltd. 20.00%
Guangzhou Topband Digital Energy Co. Ltd. 20.00%
Shenzhen Senxuan Technology Co. Ltd. 20.00%
Shenzhen Tengyi Industrial Co. Ltd. 20.00%
Topband (Qingdao) Intelligent Control Co. Ltd. 20.00%
Shenzhen Topband Automotive Electronics Co. Ltd. 20.00%
Shenzhen Jingfei Investment Co. Ltd. 20.00%
Huizhou Jiuwan Luyuan Agriculture Co. Ltd. 20.00%
Shenzhen Topband Motor Co. Ltd. 15.00%
Huizhou Chiding Technology Co. Ltd. 20.00%
205Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Tax preference
(1) On November 15 2023 the Company received the Hi-tech Enterprise Certificate (No.
GR202344206777) issued by Shenzhen Science and Technology Innovation Commission Finance Bureau of
Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is valid for three years.According to the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China the
Rules for the Implementation of the Enterprise Income Tax Law and the Measures for the Administration of the
Recognition of High and New Technology Enterprises the corporate income tax rate applicable to the Company
for the years 2023 to 2025 is 15.00%.
(2) On December 25 2025 Shenzhen Topband Software Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202544200053) issued by the Industry and Information Technology Bureau of
Shenzhen Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income
Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law
and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2025 to 2027 is 15.00%.
(3) On December 26 2024 Shenzhen Topband Battery Co. Ltd. received the Hi-tech Enterprise
Certificate (No. GR202444206593) issued by the Industry and Information Technology Bureau of Shenzhen
Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income
Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law
and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2024 to 2026 is 15.00%.
(4) On December 11 2024 Huizhou Topband Electrical Technology Co. Ltd. received the Certificate for
High-tech Enterprise (No. GR202444009232) issued by the Department of Science and Technology of
Guangdong Province the Department of Finance of Guangdong Province and Guangdong Provincial Tax
Service under the State Taxation Administration which is valid for three years. According to the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China the Rules for the
Implementation of the Enterprise Income Tax Law and the Measures for the Administration of the Recognition
206Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
of High and New Technology Enterprises the corporate income tax rate applicable for the years 2024 to 2026 is
15.00%.
(5) On December 26 2024 Shenzhen YAKO Automation Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202444202027) issued by the Industry and Information Technology Bureau of
Shenzhen Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income
Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law
and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2024 to 2026 is 15.00%.
(6) On December 26 2024 Shenzhen Yansheng Software Co. Ltd. received the Hi-tech Enterprise
Certificate (No. GR202444205050) issued by the Industry and Information Technology Bureau of Shenzhen
Municipality Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income
Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law
and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2024 to 2026 is 15.00%.
(7) On November 19 2024 Taixing Topband Lithium Battery Co. Ltd. received the Certificate for High-
tech Enterprise (No. GR202432004814) issued by the Jiangsu Provincial Department of Science and
Technology the Department of Finance of Jiangsu Province and Jiangsu Provincial Tax Service under State
Taxation Administration which is valid for three years. According to the relevant provisions of the Enterprise
Income Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income
Tax Law and the Measures for the Administration of the Recognition of High and New Technology Enterprises
the corporate income tax rate applicable for the years 2024 to 2026 is 15.00%.
(8) On November 15 2023 Shenzhen Topband Automation Technology Co. Ltd. received the Hi-tech
Enterprise Certificate (No. GR202344204958) issued by Shenzhen Science and Technology Innovation
Commission Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation
Administration which is valid for three years. According to the relevant provisions of the Enterprise Income
Tax Law of the People's Republic of China the Rules for the Implementation of the Enterprise Income Tax Law
and the Measures for the Administration of the Recognition of High and New Technology Enterprises the
corporate income tax rate applicable for the years 2023 to 2025 is 15.00%.
207Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(9) On December 26 2024 Shenzhen Topband Motor Co. Ltd. received the Hi-tech Enterprise Certificate
(No. GR202444207996) issued by the Industry and Information Technology Bureau of Shenzhen Municipality
Finance Bureau of Shenzhen Municipality and Shenzhen Tax Service State Taxation Administration which is
valid for three years. According to the relevant provisions of the Enterprise Income Tax Law of the People's
Republic of China the Rules for the Implementation of the Enterprise Income Tax Law and the Measures for
the Administration of the Recognition of High and New Technology Enterprises the corporate income tax rate
applicable for the years 2024 to 2026 is 15.00%.
(10) Topband (Hong Kong) Co. Ltd. Yolaness Technology (HK) Co. Limited and Tunnu Innovation
(Hong Kong) Limited which are subsidiaries of the Company established in Hong Kong Special Administrative
Region of China are applicable to the profits tax rate of 16.50%. Meanwhile due to the implementation of the
"two-tier profits tax" policy in Hong Kong for the portion of annual profits not exceeding HKD 2 million
Topband (Hong Kong) Co. Ltd. is applicable to the profits tax rate of 8.25% and for the excess port the tax
rate is 16.50%.
(11) According to the provisions of the Announcement on Tax and Fee Policies for Further Supporting the
Development of Small and Micro Enterprises and Individual Businesses issued by the Ministry of Finance and
the State Taxation Administration (Announcement 2023 No. 12 by the Ministry of Finance and the State
Taxation Administration) small low-profit enterprises shall calculate their taxable income at a reduced rate of
25.00% and pay the corporate income tax at a rate of 20.00% and this policy is extended till December 31
2027. The provisions of this policy are applicable the subsidiaries and sub-subsidiaries of the Company
including Huizhou Topband Lithium Battery Co. Ltd. Shenzhen Meanstone Intelligent Technology Co. Ltd.Hangzhou Zhidong Motor Technology Co. Ltd. Shenzhen Topband Digital Energy Co. Ltd. Topband Digital
Energy Technology (Huizhou) Co. Ltd. Chongqing Topband Yishu Energy Technology Co. Ltd. Guangzhou
Topband Digital Energy Co. Ltd. Shenzhen Tunnu Innovation Co. Ltd. Shenzhen Zhongli Consulting Co.Ltd. Shenzhen Senxuan Technology Co. Ltd. Shenzhen Tengyi Industrial Co. Ltd. Topband (Qingdao)
Intelligent Control Co. Ltd. Shenzhen Topband Automobile Electronics Co. Ltd. Shenzhen Yueshang Robot
Co. Ltd. Shenzhen Jingfei Investment Co. Ltd. Huizhou Chiding Technology Co. Ltd. and Huizhou Jiuwan
Luyuan Agriculture Co. Ltd.
3. Others
None.
208Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
VII. Notes to items of consolidated financial statements
1. Monetary capital
Unit: RMB
Items Ending balance Beginning balance
Cash on hand 628866.15 800122.43
Bank deposit 1718017705.12 1690347796.36
Other monetary capital 78801213.17 22828344.55
Total 1797447784.44 1713976263.34
Including: total amount deposited
385403268.00521804112.38
abroad
Other descriptions:
(1) At the end of the period the amount of mortgage pledges frozen or other funds with restrictions on use is
RMB 172744855.42. Refer to VII. 31 of the Report for details.
(2) At the end of the period there is no amount deposited overseas or with the repatriation restricted.
2. Trading financial assets
Unit: RMB
Items Ending balance Beginning balance
Financial assets measured at fair value
and whose changes are recorded in 538102481.43 739448691.77
current profit or loss
Including:
Including: wealth management products 212671537.17 396522333.21
Equity instrument investment 325430944.26 342926358.56
Including:
Total 538102481.43 739448691.77
3. Derivative financial assets
None.
4. Notes receivable
(1) List of classification of notes receivable
Unit: RMB
Items Ending balance Beginning balance
Bank acceptance instruments 24439539.50 38725822.76
209Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Commercial acceptance bill 0.00 9735512.62
Total 24439539.50 48461335.38
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provisio
n for Provision for bad
Book balance Book balance
bad debts
debts
Pr
op
Category ort Book value Book value
A io Proport
Proportio m n Proporti ion of
Amount Amount Amount
n ou of on provisi
nt pr on
ov
isi
on
Notes
receivable
with
provision 24439539.50 100.00% 24439539.50 48772791.41 100.00% 311456.03 0.64% 48461335.38
for bad
debts by
portfolio
Including
:
(1) Bank
acceptance 24439539.50 100.00% 24439539.50 38725822.76 79.40% 38725822.76
bill
(2)
Commercial
0.000.00%0.0010046968.6520.60%311456.033.10%9735512.62
acceptance
bill
Total 24439539.50 100.00% 24439539.50 48772791.41 100.00% 311456.03 0.64% 48461335.38
Provision for bad debts by portfolio: 0
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
(1) Bank acceptance bill 24439539.50 0.00 0.00%
(2) Commercial acceptance
0.00%
bill
Total 24439539.50 0.00
If the provision for bad debts of notes receivable is made according to the general model of expected credit
losses:
210Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
□ Applicable□ Not applicable
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category
balance Recover or
Ending balance
Provision Write-off Others
reversal
Provision for
311456.03311456.03
bad debts
Total 311456.03 311456.03
Of which the amount of provision for bad debts recovered or reversed in the current period is significant:
□ Applicable□ Not applicable
(4) Notes receivable pledged by the Company at the end of the period
□ Applicable□ Not applicable
(5) Notes receivable endorsed or discounted by the Company at the end of the period and not due yet on
balance sheet date
Unit: RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Items
period the period
Bank acceptance instruments 9485082.19
Total 9485082.19
(6) Notes receivable actually written off in the current period
None.
5. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 3084959058.61 3051190543.53
1-2 years 26130621.97 38379992.73
2-3 years 21763517.08 17917449.39
211Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Above 3 years 83974813.39 68483255.65
3-4 years 16052614.85 30183662.92
4-5 Years 29697047.94 36243544.76
Above 5 years 38225150.60 2056047.97
Total 3216828011.05 3175971241.30
212Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable with
100579403.123.13%92484952.0891.95%8094451.0484435157.562.66%84435157.56100.00%
single provision
for bad debts
Including:
Single provision 100579403.12 3.13% 92484952.08 91.95% 8094451.04 84435157.56 2.66% 84435157.56 100.00%
Accounts
receivable with
3116248607.9396.87%99673682.963.20%3016574924.973091536083.7497.34%98751586.013.19%2992784497.73
provision for bad
debts by portfolio
Including:
(1) Aging
3116248607.9396.87%99673682.963.20%3016574924.973091536083.7497.34%98751586.013.19%2992784497.73
portfolio
Total 3216828011.05 100.00% 192158635.04 5.97% 3024669376.01 3175971241.30 100.00% 183186743.57 5.77% 2992784497.73
213Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Single provision for bad debt: 92484952.08
Unit: RMB
Beginning balance Ending balance
Name ProportionProvision for Provision for Reasons for
Book balance Book balance of
bad debts bad debts provision
provision
Single provision for bad It is difficult to
84435157.5684435157.56100579403.1292484952.0891.95%
debts recover in full
Total 84435157.56 84435157.56 100579403.12 92484952.08
Provision for bad debts by portfolio: 99673682.96
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Within 1 year 3084364142.16 95615288.36 3.10%
1-2 years 25111723.52 2270099.80 9.04%
2-3 years 5911373.69 1307004.74 22.11%
3-4 years 684148.82 325039.11 47.51%
4-5 Years 133219.74 112250.95 84.26%
Above 5 years 44000.00 44000.00 100.00%
Total 3116248607.93 99673682.96
Explanation of the basis for determining the portfolio: none.Provision for bad debts of accounts receivable based on the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category
balance Recover or
Ending balance
Provision Write-off Others
reversal
Single provision
84435157.569223903.01133026.951041081.5492484952.08
for bad debts
Provision for
bad debts by 98751586.01 2592190.97 1217098.92 -452995.10 99673682.96
portfolio
Total 183186743.57 11816093.98 133026.95 2258180.46 -452995.10 192158635.04
Of which the amount of provision for bad debts recovered or reversed in the current period is significant: none.
214Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 2258180.46
Among them the important accounts receivable write-offs are: none.
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
Ending balance of
bad debt provision
Ending balance of Proportion to total
for accounts
Ending balance of Ending balance of accounts ending balances of
Name of unit receivable and
accounts receivable contract assets receivables and accounts receivable
provision for
contract assets and contract assets
impairment of
contract assets
No. 1 620786863.52 620786863.52 19.29% 19244392.77
No. 2 203924348.45 203924348.45 6.34% 6321654.80
No. 3 150886952.81 150886952.81 4.69% 4677495.54
No. 4 155672267.85 155672267.85 4.84% 4825840.30
No. 5 119054217.44 119054217.44 3.70% 3690680.74
Total 1250324650.07 1250324650.07 38.86% 38760064.15
6. Contract assets
(1) Contract assets
Unit: RMB
Ending balance Beginning balance
Items Book Provision for Provision for
Book value Book balance Book value
balance bad debts bad debts
Unexpired quality
621271.2219669.27601601.95
warranty deposit
Total 621271.22 19669.27 601601.95
(2) Amount of and reasons for significant changes in book value during the Reporting Period
None.
(3) Disclosure by bad debt provision method
Unit: RMB
Category Ending balance Beginning balance
215Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for bad Provision for
Book balance Book balance
debts bad debts
Propo
Proporti BookBook value Pro rtion
on of Amou Amo value
Amount Proportion Amount port of
provisio nt unt
ion provi
n
sion
Including:
Provision for bad
debts by 621271.22 100.00% 19669.27 3.17% 601601.95
portfolio
Including:
(1) Aging
621271.22100.00%19669.273.17%601601.95
portfolio
Total 621271.22 100.00% 19669.27 3.17% 601601.95
Provision for bad debts by portfolio: 19669.27
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio 621271.22 19669.27 3.17%
Total 621271.22 19669.27
Explanation of the basis for determining the portfolio: See V. 10 of the Report for the determination criteria and
description of provision for bad debts by portfolio.Provision for bad debts based on the general model of expected credit losses
□ Applicable□ Not applicable
(4) Provision for bad debts accrued recovered or reversed in current period
Unit: RMB
Accrual in the current Recovered or reversed Reversed or written off
Items Reason
period in the current period in the current period
Provision for Provision by aging
19669.27
impairment by portfolio portfolio
Total 19669.27 ——
Of which the amount of provision for bad debts recovered or reversed in the current period is significant: none.
(5) Contract assets actually written off in the current period
None.
216Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
7. Receivables financing
(1) Classification of accounts receivable financing
Unit: RMB
Items Ending balance Beginning balance
Notes receivable 103448072.55 101957511.11
Supply chain notes receivable 35013565.98 29260161.45
Total 138461638.53 131217672.56
217Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportio
Proporti Book value
Proportion
Proporti Book value
Amount Amount n of Amount Amount of
on on
provision provision
Provision for bad 131217672.5
139580105.30100%1118466.770.80%138461638.53132153756.15100.0%936083.590.71%
debts by portfolio 6
Including:
(1) Bank acceptance 101957511.1
103448072.5574.1%103448072.55101957511.1177.2%
bill 1
(2) Aging portfolio 36132032.75 25.9% 1118466.77 3.10% 35013565.98 30196245.04 22.9% 936083.59 3.10% 29260161.45
131217672.5
Total 139580105.30 100% 1118466.77 0.80% 138461638.53 132153756.15 100.0% 936083.59 0.71%
6
Provision for bad debts by portfolio: 0
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
(1) Bank acceptance bill 103448072.55
Total 103448072.55
Provision for bad debts by portfolio: 1118466.77
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
(2) Aging portfolio 36132032.75 1118466.77 3.10%
Total 36132032.75 1118466.77
218Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for bad debts based on the general model of expected credit losses: none.Explanation of significant changes in the financing book balance of accounts receivable with changes in loss
provisions in the current period: none.
(3) Provision for bad debts accrued recovered or reversed in current period
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balancebalance Provision Other changes
reversal write-off
Provision for
936083.59182383.181118466.77
bad debts
Total 936083.59 182383.18 1118466.77
(4) Financing of accounts receivable pledged by the Company at the end of period
None.
(5) Receivables financing endorsed or discounted by the Company at the end of the period and not due on
balance sheet date
None.
(6) Financing of accounts receivable actually written off in the current period
None.
(7) Increase/decrease in accounts receivables financing in the current period and changes in fair value
None.
(8) Other notes
None.
8. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 48377219.07 38621875.39
Total 48377219.07 38621875.39
219Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(1) Interest receivable
None.
(2) Dividends receivable
None.
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Margin deposit 31295706.37 26075323.05
Borrowing and imprest of employees 3342707.48 5876690.76
Export tax rebate receivable 16056653.34 16656194.89
Equipment payments receivable 8000000.00
Others 1347816.20 3067192.41
Total 60042883.39 51675401.11
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 41956976.30 28620600.31
1-2 years 3938752.59 3259904.20
2-3 years 1731797.31 3590857.49
Above 3 years 12415357.19 16204039.11
3-4 years 2481334.82 10050869.49
4-5 Years 4987314.70 632732.91
Above 5 years 4946707.67 5520436.71
Total 60042883.39 51675401.11
220Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3) Disclosure by bad debt provision method
□ Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Provision for bad
60042883.39100.00%11665664.3219.43%48377219.0751675401.11100.00%13053525.7225.26%38621875.39
debts by portfolio
Including:
Export rebate 16056653.34 26.74% 16056653.34 16656194.89 32.23% 16656194.89
Aging portfolio 43986230.05 73.26% 11665664.32 26.52% 32320565.73 35019206.22 67.77% 13053525.72 37.28% 21965680.50
Total 60042883.39 100.00% 11665664.32 19.43% 48377219.07 51675401.11 100.00% 13053525.72 25.26% 38621875.39
221Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for bad debts by portfolio: 0
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Export tax refund 16056653.34
Total 16056653.34
Provision for bad debts by portfolio: 11665664.32
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Accounts receivable for which
bad debt provision is made by 43986230.05 11665664.32 26.52%
credit risk feature portfolio
Total 43986230.05 11665664.32
Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
First stage Second stage Third stage
Expected credit loss for
Provision for bad debts Expected credit loss forExpected credit loss in the entire duration Total
the entire duration (no
the next 12 months (credit impairment
credit impairment)
occurred)
Balance as of January 1
7533089.015520436.7113053525.72
2025
Balance as of January 1
2025 in the current
period
Reversal in the current
1056058.25573729.041629787.29
period
Other changes 241925.89 241925.89
Balance as of December
6718956.654946707.6711665664.32
312025
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable□ Not applicable
4) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Category Beginning Amount changed in the current period Ending balance
222Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
balance Recover or Reversal or
Provision Others
reversal write-off
Provision for
13053525.721629787.29241925.8911665664.32
bad debts
Total 13053525.72 1629787.29 241925.89 11665664.32
Of which the amount of provision for bad debts recovered or reversed in the current period is significant: none
5) Other receivables actually written off in the current period
None
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to
Ending
total ending
Nature of balance of
Name of unit Ending balance Aging balances of
payment provision for
other
bad debts
receivables
Export tax rebate receivable Export tax refund 16025664.00 Within 1 year 26.69%
FIANZAS AVANZAS.S.DE C.V. Margin 8187453.70 Within 1 year 13.64% 409372.69
Equipment
Taixing Zhisheng Solid Energy
payments 8000000.00 Within 1 year 13.32% 400000.00
New Energy Technology Co. Ltd.receivable
House leasing
CIVBANCOS.A. 3531788.27 4-5 years 5.88% 2825430.62
deposit
Lin Rongsheng Margin 1520178.00 Above 5 years 2.53% 1520178.00
Total 37265083.97 62.06% 5154981.31
7) Included in other receivables due to centralized management of funds
None.
9. Prepayments
(1) List of advance payments by aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 79242117.64 96.66% 24610656.44 91.38%
1-2 years 2703956.97 3.30% 1933909.54 7.18%
2-3 years 26386.33 0.03% 364869.23 1.35%
Above 3 years 10264.06 0.01% 23000.00 0.09%
Total 81982725.00 26932435.21
Explanation of the cause for untimely settlement of advance payments aging more than one year with important
223Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
amounts: none.
(2) Accounts prepaid of the top five prepaying entities for ending balance
The total amount of the Company's top five year-end balances of advance payments grouped by debtors is RMB
49548407.95 in the year accounting for 60.44% of the total year-end balance of advance payments.
10. Inventories
Whether the Company is required to comply with the disclosure requirements of the real estate industry
No
(1) Inventory classification
Unit: RMB
Ending balance Beginning balance
Provision for Provision for
decline in decline in
value of value of
Items inventories or inventories or
Book balance provision for Book value Book balance provision for Book value
impairment of impairment of
contract contract
performance performance
cost cost
Raw materials 1159857284.94 106326473.99 1053530810.95 969273726.88 96936222.89 872337503.99
Goods in
168094218.62168094218.62148251757.87148251757.87
process
Goods on
684094736.7929637310.14654457426.65583197273.8927930951.02555266322.87
hand
Goods
shipped in 250210087.68 6976203.69 243233883.99 164769170.25 4059078.37 160710091.88
transit
Self-
manufactured
62274625.955204671.1257069954.8369367934.123074437.5366293496.59
semi-finished
product
Materials
entrusted for 12392646.87 413054.96 11979591.91 7874525.26 235709.71 7638815.55
processing
Low-value
7380979.657380979.6512591.8212591.82
consumables
Total 2344304580.50 148557713.90 2195746866.60 1942746980.09 132236399.52 1810510580.57
224Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Data resources recognized as inventories
None.
(3) Provision for decline in value of inventories and provision for impairment of contract performance
cost
Unit: RMB
Decrease amount in the current
Increase in the current period
period
Items Beginning balance Ending balance
Reversal or
Provision Others Others
write-off
Raw materials 96936222.89 57629800.13 47891554.07 347994.96 106326473.99
Goods on hand 27930951.02 17013967.64 15307608.52 29637310.14
Self-manufactured
semi-finished 3074437.53 3350652.71 1220419.12 5204671.12
product
Materials entrusted
235709.71358025.17180679.92413054.96
for processing
Goods shipped in
4059078.373366069.43448944.116976203.69
transit
Total 132236399.52 81718515.08 65049205.74 347994.96 148557713.90
(4) Explanation of inventories with closing balances containing capitalized amount of borrowing costs
None.
(5) Explanation of amortized amount of contract performance costs in the current period
None.
11. Assets held for sale
None.
12. Non-current assets due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term receivables due within one year (financing
5707964.58
lease payments)
Minus: unrealized financing income 732766.35
Minus: impairment provision 176946.90
Total 4798251.33
225Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(1) Debt investments due within one year
□ Applicable□ Not applicable
(2) Other debt investments due within one year
□ Applicable□ Not applicable
13. Other current assets
Unit: RMB
Items Ending balance Beginning balance
Large-amount certificates of deposit 10752575.72 10442575.72
VAT to be deducted 476799142.19 336018148.49
Other prepaid taxes 26784759.37 6776410.91
Deferred expenses 11678517.35 6319738.67
Total 526014994.63 359556873.79
14. Debt investment
None.
15. Other debt investment
(1) Other debt investment
Unit: RMB
Chang Cumulative
e in impairment
Cumulativ
Interest fair provision
Beginnin Accrued Ending e change Note
Items adjustmen value Cost recognized in
g balance interest balance in fair :
t in the other
value
current comprehensiv
period e income
Transferabl
e large-
843277.740843277.740000000.0
amount
880
certificates
of deposit
843277.740843277.740000000.0
Total
880
(2) Other significant debt investments at the end of the period
None.
226Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(3) Provision for impairment
None.
(4) Other debt investments actually written off in this period
None.
16. Other equity instrument investment
Unit: RMB
Losses
accum
ulated Reasons
Losses
at the Divi specified
recogn
Gains and end of dend as
ized in
Gains losses the reve measured
other
included in included in period nue at fair
compr
Beginning other other and reco value with
Project name Ending balance ehensi
balance comprehensiv comprehensiv includ gniz changes
ve
e revenue for e revenue at ed in ed in included
revenu
the period the end of the other this in other
e for
period compr perio comprehe
the
ehensi d nsive
period
ve income
revenu
e
Strategic
Suzhou investmen
Legendsemi t expected
24086798.0021374810.002711988.004086798.00
Technology Co. to be held
Ltd. for a long
time
Strategic
investmen
Suzhou Suyu
t expected
Technology Co. 27535684.00 23637966.00 3897718.00 6342734.00
to be held
Ltd.for a long
time
Total 51622482.00 45012776.00 6609706.00 10429532.00
17. Long-term receivables
(1) Situation of long-term receivables
Unit: RMB
Ending balance Beginning balance
Provisio Discoun
Items BookProvision for n for Book t rate
Book balance Book value balanc
bad debts bad value range
e
debts
227Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Financing lease payments 22831858.41 707787.61 22124070.80 3.50%
Including: unrealized financing 1732934.02 1732934.02
income
Minus: long-term receivables 4975198.23 176946.90 4798251.33
due within one year
Total 16123726.16 530840.71 15592885.45
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Provision
Provision for bad Book
Book balance for bad
debts balance
debts Boo
Category A Prop k
Propor Book value Pro
A m ortio val
Proportio tion of por
Amount Amount mo o n of ue
n provis tio
unt u provi
ion n
nt sion
Including:
Provision for bad debts
22831858.41100.00%707787.613.10%22124070.80
by portfolio
Including:
Aging portfolio
(financing lease 22831858.41 100.00% 707787.61 3.10% 22124070.80
payments)
Total 22831858.41 100.00% 707787.61 3.10% 22124070.80
Provision for bad debts by combination: aging portfolio method
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio method 22831858.41 707787.61 3.10%
Total 22831858.41 707787.61
Explanation of the basis for determining the portfolio: none.Provision for bad debts based on the general model of expected credit losses
Unit: RMB
First stage Second stage Third stage
Provision for bad debts Expected credit loss for the Expected credit loss for theExpected credit loss in Total
entire duration (no credit entire duration (credit
the next 12 months
impairment) impairment occurred)
Balance as of January 1
2025 in the current period
228Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Accrual in the current
707787.61707787.61
period
Balance as of December
707787.61707787.61
312025
(3) Provision for bad debts accrued recovered or reversed in current period
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balancebalance Provision Others
reversal write-off
Aging portfolio 707787.61 707787.61
Total 707787.61 707787.61
(4) Long-term accounts receivable actually written off in this period
None.
18. Long-term equity investment
Unit: RMB
Changes in increase or decrease in the current period
D
A e
d c
d r
Adj
i e
ust
t a Pr
me
i s Decla ov
nt
o e ration isi
to
Opening n Profits and of on O Ending
Beginning oth
balance of a i losses on Other distrib fo t
Ending
balance of
Investee balance (book er balance (book
provision for l n investment chang ution r h provision for
value) co
impairment i recognized es in for im e
value)
mpr impairment
n i under equity equity cash pa r
ehe
v n method divide ir s
nsiv
e v nds or m
e
s e profits en
inc
t s t
om
m t
e
e m
n e
t n
t
I. Joint venture
II. Associated enterprises
Shenzhen
Daka 5826039.98 -491.12 5825548.86
Optoelectron
229Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
ics Co. Ltd.Tai'an
Yuchengxin
Power 9764719.19 9764719.19
Technology
Co. Ltd.Shanghai
Yidong
Power 9518648.65 -329128.03 9189520.62
Technology
Co. Ltd.Dongguan
Jujin Plastic
23614583.511833460.3725448043.88
Technology
Co. Ltd.Subtotal 38959272.14 9764719.19 1503841.22 40463113.36 9764719.19
Total 38959272.14 9764719.19 1503841.22 40463113.36 9764719.19
The recoverable amount is determined as the net amount of fair value less disposal costs.□ Applicable□ Not applicable
The recoverable amount is determined by the present value of expected future cash flows.□ Applicable□ Not applicable
Reason for the significant inconsistency between the above information and the information used in the
previous year's impairment tests or external information: none.Reason for the significant discrepancy between the information used in the previous year's impairment test and
the actual situation of the current year: none.Other descriptions: none.
19. Other non-current financial assets
None.
20. Investment property
(1) Investment property with cost measurement model
□ Applicable □ Not applicable
Unit: RMB
Construction
Items Houses and buildings Land use right Total
in progress
I. Original book value
230Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
1. Beginning balance 119070562.06 119070562.06
2. Increase in the current period
(1) Outsourcing
(2) Transfer in of inventory fixed assets
and construction in progress
(3) Increment from consolidation
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 119070562.06 119070562.06
II. Accumulated depreciation and accumulated
amortization
1. Beginning balance 18504534.21 18504534.21
2. Increase in the current period 2838374.99 2838374.99
(1) Provision or amortization 2838374.99 2838374.99
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance 21342909.20 21342909.20
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
(2) Other transfer out
4. Ending balance
IV. Book value
1. Ending book value 97727652.86 97727652.86
2. Beginning book value 100566027.85 100566027.85
(2) Investment property using the fair value recognition model
□ Applicable□ Not applicable
(3) Transfer to investment property and measurement at fair value
None.
231Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(4) Investment property without certificate of title
None.
21. Fixed assets
Unit: RMB
Items Ending balance Beginning balance
Fixed assets 2888394751.10 2737959115.57
Disposal of fixed assets 0.00 0.00
Total 2888394751.10 2737959115.57
(1) Situation about fixed assets
Unit: RMB
Office
Houses and Machinery and Transportation
Items equipment and Total
buildings equipment equipment
others
I. Original book value:
1. Beginning balance 1740514189.27 1765468463.15 4194328.21 85428132.45 3595605113.08
2. Increase in the current
225607145.41274383808.36739391.497069864.28507800209.54
period
(1) Purchase 2439075.47 174290170.58 708610.17 7832614.09 185270470.31
(2) Transfer into
233575437.99106693497.08340268935.07
projects under construction
(3) Increment from
consolidation
(4) Exchange rate
-10407368.05-6599859.3030781.32-762749.81-17739195.84
changes
3. Decrease in the
153989510.52561283.673889030.90158439825.09
current period
(1) Disposal or
153989510.52561283.673889030.90158439825.09
scrapping
4. Ending balance 1966121334.68 1885862760.99 4372436.03 88608965.83 3944965497.53
II. Accumulated depreciation
1. Beginning balance 212719733.74 593006886.65 2868639.16 49050737.96 857645997.51
2. Increase in the current
44875441.49184761363.50491486.8912395906.61242524198.49
period
(1) Accrual 46469994.09 186143059.32 466746.01 12710097.78 245789897.20
(2) Exchange rate
-1594552.60-1381695.8224740.88-314191.17-3265698.71
changes
3. Decrease in the
52121184.28317529.073542147.3555980860.70
current period
(1) Disposal or
52121184.28317529.073542147.3555980860.70
scrapping
4. Ending balance 257595175.23 725647065.87 3042596.98 57904497.22 1044189335.30
232Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
III. Provision for impairment
1. Beginning balance
2. Increase in the current
12381411.1312381411.13
period
(1) Accrual 12381411.13 12381411.13
3. Decrease in the
current period
(1) Disposal or
scrapping
4. Ending balance 12381411.13 12381411.13
IV. Book value
1. Ending book value 1708526159.45 1147834283.99 1329839.05 30704468.61 2888394751.10
2. Beginning book value 1527794455.53 1172461576.50 1325689.05 36377394.49 2737959115.57
(2) Temporary idle fixed assets
Unit: RMB
Original book Accumulated Provision for
Items Book value Note:
value depreciation impairment
Provision for
Production
impairment based
equipment of Taixing 28739084.76 14661213.39 12381411.13 1696460.24
on estimated
Topband
selling price
Total 28739084.76 14661213.39 12381411.13 1696460.24
(3) Fixed assets leased out through operating lease
None.
(4) Fixed assets without certificate of title
None
(5) Impairment test of fixed assets
□ Applicable □ Not applicable
The recoverable amount is determined as the net amount of fair value less disposal costs.□ Applicable □ Not applicable
Unit: RMB
Determination Basis for
Recoverable Impairment method of fair Key determining
Items Book value
amount amount value and disposal parameters key
expenses parameters
233Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Production equipment Sales agreement Not Not
14077871.371696460.2412381411.13
of Taixing Topband with a fixed price applicable applicable
Total 14077871.37 1696460.24 12381411.13
The recoverable amount is determined by the present value of expected future cash flows.□ Applicable□ Not applicable
(6) Disposal of fixed assets
None.
22. Construction in progress
Unit: RMB
Items Ending balance Beginning balance
Construction in progress 803965663.22 768223670.57
Total 803965663.22 768223670.57
234Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(1) Projects under construction
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Topband Huizhou No. 2 Industrial
605757965.84605757965.84427581637.03427581637.03
Park
Huizhou YAKO Automation
266707288.28266707288.28
Workshop
Test equipment to be commissioned 78024894.60 78024894.60 61734340.66 61734340.66
Workshop in Dong Nai Vietnam 109183142.75 109183142.75
Qingdao Workshop 2561417.09 2561417.09 2438792.94 2438792.94
Sporadic items 8438242.94 8438242.94 9761611.66 9761611.66
Total 803965663.22 803965663.22 768223670.57 768223670.57
(2) Changes in the important projects under construction in the current period
Unit: RMB
Proportion Including:
Interest
Amount of of Accumulated interest
Other capitalization Source
Project Beginning Increase in the transfer into accumulated Project amount of capitalization
Budget decrements Ending balance rate in the of
name balance current period fixed assets project progress interest amount in
this period current capitals
this period investment capitalization the current
period
in budget period
Topband Raised
Huizhou and
No. 2 800000000.00 427581637.03 178176328.81 605757965.84 75.72% 75% self-
Industrial owned
Park funds
Phase II Self-
Workshop 223000000.00 1891975.35 107291167.40 109183142.75 48.96% 50% own
in Dong capitals
235Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Nai
Vietnam
Huizhou
Self-
YAKO
270000000.00 266707288.28 18177805.84 228069860.41 56815233.71 100.00% 100% 4278708.51 826506.91 own
Automation
capitals
Workshop
Total 1293000000.00 696180900.66 303645302.05 228069860.41 56815233.71 714941108.59 4278708.51 826506.91
236Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(3) Provision for impairment of projects under construction in the current period
None
(4) Impairment test of projects under construction
□ Applicable□ Not applicable
(5) Construction materials
None.
23. Productive biological assets
(1) Productive biological assets measured by cost
□ Applicable□ Not applicable□
(2) Impairment test of productive biological assets measured by cost
□ Applicable□ Not applicable
(3) Productive biological assets measured by fair value
□ Applicable□ Not applicable
24. Oil and gas assets
□ Applicable□ Not applicable
25. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Items Houses and buildings Land Total
I. Original book value
1. Beginning balance 159303899.60 5875457.96 165179357.56
2. Increase in the current period 40469321.36 40469321.36
(1) New lease 37147963.71 37147963.71
(2) Exchange rate changes 3321357.65 3321357.65
3. Decrease in the current period 95969271.58 5875457.96 101844729.54
237Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(1) Disposal 95969271.58 5875457.96 101844729.54
4. Ending balance 103803949.38 103803949.38
II. Accumulated depreciation
1. Beginning balance 97487144.03 465140.42 97952284.45
2. Increase in the current period 41736072.68 195848.60 41931921.28
(1) Accrual 39811425.22 195848.60 40007273.82
(2) Exchange rate changes 1924647.46 1924647.46
3. Decrease in the current period 85825263.75 660989.02 86486252.77
(1) Disposal 85825263.75 660989.02 86486252.77
4. Ending balance 53397952.96 53397952.96
III. Provision for impairment
1. Beginning balance
2. Increase in the current period
(1) Accrual
3. Decrease in the current period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 50405996.42 50405996.42
2. Beginning book value 61816755.57 5410317.54 67227073.11
(2) Impairment test of right-of-use assets
□ Applicable□ Not applicable
26. Intangible assets
(1) Situation of intangible assets
Unit: RMB
Patented and non-
Items Land use right Software patented Trademark Total
technology
I. Original book value
1. Beginning balance 389595682.36 35572894.48 752442372.74 9728450.00 1187339399.58
2. Increase in the current
-2659714.039218160.35195340978.51201899424.83
period
(1) Purchase 9201908.09 9201908.09
(2) Internal R&D 195340978.51 195340978.51
(3) Increment from
consolidation
(4) Exchange rate
-2659714.0316252.26-2643461.77
changes
238Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3. Decrease in the current
979238.80979238.80
period
(1) Disposal 979238.80 979238.80
4. Ending balance 386935968.33 43811816.03 947783351.25 9728450.00 1388259585.61
II. Accumulated amortization
1. Beginning balance 36983948.80 26247860.93 472594741.49 7728450.00 543555001.22
2. Increase in the current
7622322.072296671.55122213964.621562563.48133695521.72
period
(1) Accrual 7972176.41 2289505.86 122213964.62 1562563.48 134038210.37
(2) Exchange rate
-349854.347165.69-342688.65
changes
3. Decrease in the current
108899.52108899.52
period
(1) Disposal 108899.52 108899.52
4. Ending balance 44606270.87 28435632.96 594808706.11 9291013.48 677141623.42
III. Provision for impairment
1. Beginning balance
2. Increase in the current
period
(1) Accrual
3. Decrease in the current
period
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 342329697.46 15376183.07 352974645.14 437436.52 711117962.19
2. Beginning book value 352611733.56 9325033.55 279847631.25 2000000.00 643784398.36
The intangible assets arising from internal development of the Company accounts for 49.64% of the balance of
intangible assets at the end of the current period.
(2) Data resources recognized as intangible assets
□ Applicable□ Not applicable
(3) Land use rights without certificate of title
None.
(4) Impairment test of intangible assets
□ Applicable□ Not applicable
239Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Decrease in the
Increase in the current period
Name of investees or items forming Beginning current period
Ending balance
goodwill balance Disposal formed
by consolidation
Shenzhen YAKO Automation
107314446.71107314446.71
Technology Co. Ltd.Shenzhen Allied Control System Co.
53768699.6853768699.68
Ltd.Shenzhen Meanstone Intelligent
3006892.593006892.59
Technology Co. Ltd.Hangzhou Zhidong Motor Technology
1322921.771322921.77
Co. Ltd.Taixing Topband Lithium Battery Co.
1962891.121962891.12
Ltd.Shenzhen Tengyi Industrial Co. Ltd. 131783.24 131783.24
Total 167507635.11 167507635.11
(2) Impairment of goodwill
Unit: RMB
Increase in the Decrease in the current
Name of investees or items forming
Beginning balance current period period Ending balance
goodwill
Provision
Shenzhen YAKO Automation
30659206.5430659206.54
Technology Co. Ltd.Shenzhen Allied Control System Co.
53768699.6853768699.68
Ltd.Shenzhen Meanstone Intelligent
3006892.593006892.59
Technology Co. Ltd.Taixing Topband Lithium Battery
1962891.121962891.12
Co. Ltd.Total 58738483.39 30659206.54 89397689.93
(3) Information about the asset group or portfolio of goodwill
The goodwill of the Company is developed upon the acquisition of the equity of the above companies classified
as an asset portfolio and the asset portfolio of the goodwill at the end of the period is consistent with the
portfolio determined on the acquisition date.
(4) Specific method for determining recoverable amount
The recoverable amount is determined as the net amount of fair value less disposal costs.
240Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
□ Applicable□ Not applicable
The recoverable amount is determined by the present value of expected future cash flows.□ Applicable □ Not applicable
Unit: RMB
Basis for
Key
Forecast Key parameters determination
Recoverable Impairment parameters
Items Book value period of forecast of key
amount amount of stable
(year) period parameters of
period
stable period
The revenue
Revenue Revenue
growth rate
growth rate growth rate
Shenzhen in the stable
4.97%~26.71% 0% profit
YAKO period is 0%;
profit margin margin
Automation 196979200.00 166320000.00 30659206.54 5 years refer to the
9.01%~14.41%14.41%
Technology ending levels
pre-tax pre-tax
Co. Ltd. for profit
discount rate discount
margin and
13.17% rate 13.17%
discount rate.Total 196979200.00 166320000.00 30659206.54
(5) Completion of performance commitments and corresponding goodwill impairment
There was a performance commitment when goodwill was established and the Reporting Period or the period
preceding the Reporting Period is within the performance commitment period.□ Applicable□ Not applicable
28. Long-term deferred expenses
Unit: RMB
Increase in the Amortization in the Other reduced
Items Beginning balance Ending balance
current period current period amount
Decoration costs 188335953.21 85457325.62 77828379.72 261462.09 195703437.02
Others 588572.61 588572.61 0.00
Total 188924525.82 85457325.62 78416952.33 261462.09 195703437.02
29. Deferred tax assets/deferred tax liabilities
(1) Non-offset deferred tax assets
Unit: RMB
Ending balance Beginning balance
Items Deductible Deductible temporary
temporary Deferred tax assets Deferred tax assets
differences
differences
241Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for asset impairment 151946145.31 24531004.64 127531858.62 20774380.93
Deductible loss 298583536.98 55721951.82 313584186.89 58225899.51
Credit impairment provision 191605649.34 30078590.78 191335395.86 29239518.64
Amortization difference of
218218667.9732732800.19177349288.9126602393.33
intangible assets
Deferred income 8246540.29 1534744.53 8191864.81 1456584.20
Equity incentive expenses 74333649.45 11150047.42 9764719.19 1487405.57
New leasing criteria book-tax
51288322.509317499.2263314507.4011885057.66
difference
Depreciation difference of fixed
7333883.651100082.553284129.18492619.38
assets
Change in fair value of trading
5161.00774.15345711.0051856.65
financial liabilities
Total 1001561556.49 166167495.30 894701661.86 150215715.87
(2) Deferred tax liabilities without offset
Unit: RMB
Ending balance Beginning balance
Items Taxable temporary Deferred tax Taxable temporary Deferred tax
difference liabilities difference liabilities
Change in fair value of other equity
10429532.002607383.003819826.00954956.50
instrument investments
Changes in the fair value of trading
241906308.2540365956.79238079377.1339541458.56
financial assets
Book-tax difference of fixed assets
63664673.6014084776.8465883076.2214093480.22
depreciation
Right-of-use assets 50405996.42 9205772.11 61729856.37 11769067.19
Book-tax difference of rental income 4541090.59 1135272.65 5951758.83 1397808.59
Total 370947600.86 67399161.39 375463894.55 67756771.06
(3) Deferred tax assets or liabilities listed by net amount after offset
Unit: RMB
Amount of mutual
Amount of offset
Ending balance of offset between deferred Beginning balance of
between deferred tax
Items deferred tax assets or tax assets and liabilities deferred tax assets or
assets and liabilities at
liabilities after offset at the beginning of the liabilities after offset
the end of the period
period
Deferred tax assets 43986416.18 122181079.12 47537178.67 102678537.20
Deferred tax liabilities 43986416.18 23412745.21 47537178.67 20219592.39
(4) Details of unrecognized deferred tax assets
Unit: RMB
Items Ending balance Beginning balance
Deductible temporary differences 33466124.77 26889124.56
242Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Deductible loss 609482883.71 393739099.16
Total 642949008.48 420628223.72
(5) Deductible loss of unrecognized deferred tax assets will mature in the following years
Unit: RMB
Year Ending amount Beginning amount Note:
20255044922.32
202619866592.0917774444.74
202734845693.9049665097.60
202872492637.0371076386.14
2029111235119.4485979243.60
2030251415937.10
No time limit 119626904.15 164199004.76
Total 609482883.71 393739099.16
Other descriptions: Note: The deductible loss of unrecognized deferred income tax assets with no maturity
period is the compensable loss of an overseas subsidiary and no deductible period is required by local policies.
30. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Items Provision Provision
Book balance for Book value Book balance for Book value
impairment impairment
Prepayment for long-
32166008.5432166008.5453787605.5753787605.57
term assets
Project prepayment 1036979.72 1036979.72 6248820.60 6248820.60
Total 33202988.26 33202988.26 60036426.17 60036426.17
31. Assets with limited ownership or use right
Unit: RMB
End of the period Beginning of the period
Items RestrictiRestricti Book Restriction Restriction
Book balance Book value on Book value
on type balance type situation
situation
Margin Payment
Financial
for for
manageme
forward subscriptio
nt
Monetary foreign 50000000.0 50000000.0 n of
56416530.09 56416530.09 Margin products
capital exchange 0 0 financial
in
settlemen manageme
subscriptio
t and nt
n period
sale etc. products
243Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Deposit Deposit
for for
applicati applicatio
Monetary 115744719.9 115744719.9 on of 19672873.1 19672873.1 n of notes
Margin Margin
capital 6 6 notes and 4 4 and
guarante guarantees
es from from
banks banks
Amount Amount
Monetary 31028512.3 31028512.3
583605.37 583605.37 Frozen frozen by Frozen frozen by
capital 9 9
court court
Amount
Other debt
40000000.00 40000000.00 Frozen frozen by
investment
court
Fixed 396298785.1 383488498.9 Mortgag Loan 509977235. 502711310. Loan
Mortgage
assets 9 8 e mortgage 97 29 mortgage
Intangible Mortgag Loan 61302043.6 58266861.1 Loan
31648343.62 29907684.73 Mortgage
assets e mortgage 2 0 mortgage
Constructi
605757965.8 605757965.8 Mortgag Loan 266707288. 266707288. Loan
on in Mortgage
4 4 e mortgage 28 28 mortgage
progress
1246449950.1231899004.938687953.928386845.
Total
07974020
32. Short-term loans
Unit: RMB
Items Ending balance Beginning balance
Credit loan 120000000.00 421633604.78
Letter of credit discounting and other
1271514919.68750000000.00
loans
Discounted unexpired notes receivable 955045.08 52580505.63
Total 1392469964.76 1224214110.41
33. Trading financial liabilities
Unit: RMB
Items Ending balance Beginning balance
Financial liabilities held for trading 5161.00 444281.13
Including:
Future foreign exchange
5161.00444281.13
settlement
Total 5161.00 444281.13
34. Derivative financial liabilities
None.
244Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
35. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Commercial acceptance bill 31949647.26
Bank acceptance bill 1546388926.59 1194662037.01
Total 1578338573.85 1194662037.01
36. Accounts payable
(1) Accounts payable listed
Unit: RMB
Items Ending balance Beginning balance
Trade accounts payable 2330233821.85 2310872258.62
Other payables 816694.34
Total 2331050516.19 2310872258.62
(2) Significant accounts payable aged over 1 year or overdue
None.
(3) Whether there are overdue payments to small and medium enterprises
Whether large enterprises
□ Yes □ No
Whether there are overdue payments to small and medium enterprises
□ Yes□ No
37. Other payables
Unit: RMB
Items Ending balance Beginning balance
Other account payable 278177897.89 450563068.15
Total 278177897.89 450563068.15
(1) Interest payable
None.
245Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Dividends payable
None.
(3) Other accounts payable
1) Other payables listed by fund nature
Unit: RMB
Items Ending balance Beginning balance
Long-term assets 200706467.73 374192197.01
Expenses 54365161.93 42597479.86
Current accounts 3203596.62 13880170.02
Margin deposit 12838652.20 11103580.42
Equity acquisition payments payable 5512900.00 5512900.00
Others 1551119.41 3276740.84
Total 278177897.89 450563068.15
2) Other significant payables aged over 1 year or overdue
None.
38. Advance collections
(1) Presentation of advance collections
Unit: RMB
Items Ending balance Beginning balance
Prepaid rent 4903162.70 3915096.80
Total 4903162.70 3915096.80
(2) Significant advance collections aged over 1 year or overdue
None.
39. Contractual liabilities
Unit: RMB
Items Ending balance Beginning balance
Product payment received in advance 116456170.61 131435683.97
Total 116456170.61 131435683.97
246Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
40. Employee pay payable
(1) Presentation of employee pay payable
Unit: RMB
Increase in the Decrease in the
Items Beginning balance Ending balance
current period current period
I. Short-term compensation 276255100.15 2115640704.93 2129851734.03 262044071.05
II. Post-employment benefits -
182275.42143401975.23142659704.75924545.90
defined contribution plan
Total 276437375.57 2259042680.16 2272511438.78 262968616.95
(2) Reporting of short-term remuneration
Unit: RMB
Increase in the Decrease in the
Items Beginning balance Ending balance
current period current period
1. Wages bonuses allowances
271358567.891951387936.311965989383.28256757120.92
and subsidies
2. Employee benefits 11227.00 53175548.60 52893482.23 293293.37
3. Social insurance expense 1228987.72 47260035.27 47556129.05 932893.94
Including: medical
1223040.6536995848.0037294151.06924737.59
insurance premiums
Industrial injury
5947.075546295.155544085.878156.35
insurance expense
Maternity insurance
4717892.124717892.12
expense
4. Housing provident fund 18938.00 61394384.89 60943803.56 469519.33
5. Trade union funds and staff
499.202422799.862422494.75804.31
education funds
8. Others 3636880.34 46441.16 3590439.18
Total 276255100.15 2115640704.93 2129851734.03 262044071.05
(3) List of defined contribution plan
Unit: RMB
Increase in the current Decrease in the current
Items Beginning balance Ending balance
period period
1. Basic endowment
169919.41134742603.00134598329.61314192.80
insurance
2. Unemployment
12356.018659372.238061375.14610353.10
insurance expense
Total 182275.42 143401975.23 142659704.75 924545.90
41. Taxes payable
Unit: RMB
247Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Items Ending balance Beginning balance
VAT (value-added tax) 1762684.87 1694033.15
Corporate income tax 26834026.89 28835268.14
Individual income tax 9928637.55 8926503.48
City maintenance and construction tax 1563848.42 785710.34
Education surcharge 921040.76 561221.65
Property tax 5319444.58 4960315.63
Land use tax 47673.06 274690.37
Stamp tax and others 3217381.99 2088856.11
Total 49594738.12 48126598.87
42. Liabilities held for sale
None.
43. Non-current liabilities due within one year
Unit: RMB
Items Ending balance Beginning balance
Long-term borrowings due within one
14435000.00106787755.00
year
Lease liabilities due within one year 28687892.52 29701010.75
Total 43122892.52 136488765.75
44. Other current liabilities
Unit: RMB
Items Ending balance Beginning balance
Tax amount to be resold 55496870.91 51360086.21
Notes receivable that have been not
8530037.1126571117.10
derecognized or have not expired
Total 64026908.02 77931203.31
45. Long-term loans
(1) Classification of long-term loan
Unit: RMB
Items Ending balance Beginning balance
Mortgage loan 321885000.00 70500000.00
Credit loan 97000000.00 126750000.00
Mortgage + guaranteed loan 155278229.88
Minus: long-term borrowings to be due
14435000.00106787755.00
within 1 year
248Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Total 404450000.00 245740474.88
46. Bonds payable
(1) Bonds payable
None.
(2) Changes in payable bonds (excluding preferred stocks perpetual bonds and other financial
instruments classified as financial liabilities)
None.
(3) Explanation of convertible corporate bonds
None.
(4) Explanation of other financial instruments classified as financial liabilities
None.
47. Lease liabilities
Unit: RMB
Items Ending balance Beginning balance
Rental payment 24197857.13 47285577.72
Rental payment – Unrecognized financing -1278730.78 -5209047.36
expenses
Total 22919126.35 42076530.36
48. Long-term payables
None.
49. Long-term employee compensation payable
None.
50. Estimated liabilities
None.
249Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
51. Deferred income
Unit: RMB
Increase in the Decrease in the Ending
Items Beginning balance Reasons of formation
current period current period balance
Government Governmental subsidies
13358627.744687717.703999104.6814047240.76
subsidies related to assets
Total 13358627.74 4687717.70 3999104.68 14047240.76 --
52. Other non-current liabilities
None.
53. Share capital
Unit: RMB
Increase or decrease of change this time (+ -)
Conversion
Beginning of Ending
balance Issuance of Stock accumulation Others Subtotal balance
new shares dividend
fund into
shares
Total number
12468349881246834988
of shares
54. Other equity instruments
None.
55. Capital reserve
Unit: RMB
Increase in the current Decrease in the
Items Beginning balance Ending balance
period current period
Capital premium (share
1973555637.531973555637.53
premium)
Other capital reserves 116022373.64 60122340.85 176144714.49
Total 2089578011.17 60122340.85 2149700352.02
Other descriptions including increase or decrease in the current period and reasons for changes:
The increase in other capital reserves in the current period is the increase in the equity incentive expenses
recognized by the Company and in deferred tax assets recognized by future deductible expenses before tax.
250Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
56. Treasury shares
Unit: RMB
Increase in the current Decrease in the current
Items Beginning balance Ending balance
period period
Treasury shares 155694936.18 155694936.18
Total 155694936.18 155694936.18
Other descriptions including increase or decrease in the current period and reasons for changes: none.
57. Other comprehensive income
Unit: RMB
Amount incurred in the current period
Minus:
Minus: current
profits retaine
and d
Attri
losses earning
butab
included s
le to
in other include
Beginning Amount of pre- minocomprehe d in Minus: Attributable to EndingItems
balance income tax ritynsive other income tax parent company balance
incurred in the share
income compre expense after tax
current period holde
previousl hensiv
rs
y and e
after
transferre income
tax
d in the in the
current previo
period us
period
I. Other
comprehensive
income that
2864869.506609706.001652426.504957279.507822149.00
cannot be
reclassified into
profits or losses
Change in
fair value of
other equity 2864869.50 6609706.00 1652426.50 4957279.50 7822149.00
instrument
investments
II. Other
comprehensive
income that is
-35141773.48-33021244.96-33021244.96-68163018.44
reclassified into
profits and
losses
251Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Difference
in translation of
foreign currency -35141773.48 -33021244.96 -33021244.96 -68163018.44
financial
statements
Total amount of
other
-32276903.98-26411538.961652426.50-28063965.46-60340869.44
comprehensive
income
58. Special reserve
None.
59. Surplus reserves
Unit: RMB
Increase in the current Decrease in the current
Items Beginning balance Ending balance
period period
Statutory surplus
248359297.4718642322.77267001620.24
reserve
Total 248359297.47 18642322.77 267001620.24
The increase in the current surplus reserve is due to withdrawing 10% of the current net profit from the
statutory surplus reserve in accordance with the relevant provisions of the Company Law and the Articles of
Association of the Company.
60. Undistributed earnings
Unit: RMB
Items Current period Previous period
Retained earnings at the end of the
3275527294.982706499696.23
previous period before adjustment
Retained earnings at the beginning of last
3275527294.982706499696.23
period after adjustment
Plus: net profit attributable to owners of
363873007.86671442652.91
parent company in current year
Minus: appropriation of statutory surplus
18642322.7728912360.88
reserves
Common stock dividends payable 86015257.16 73502693.28
Retained earnings at the end of the period 3534742722.91 3275527294.98
Details of Adjusted Retained Earnings at the Beginning of the Period:
1). Due to the retroactive adjustments made according to the Accounting Standards for Business Enterprises and
252Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
relevant new provisions therein RMB 0.00 of the beginning/closing retained earnings was affected.
2). Due to changes to the accounting policies the beginning/closing retained earnings were affected by RMB
0.00.
3). Due to corrections of material accounting errors the beginning/closing retained earnings were affected by
RMB 0.00.
4. The change in the scope of consolidation caused by common control affected the beginning retained earnings
by RMB 0.00.
5). Due to other adjustments the beginning/closing retained earnings were affected by RMB 0.00 in total.
Detailed explanation of using capital reserves to offset losses: none.
61. Operating income and operating costs
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 10969790954.79 8639952985.96 10399740859.97 8043453974.89
Other business 112418786.73 55631079.17 101478961.57 45447890.32
Total 11082209741.52 8695584065.13 10501219821.54 8088901865.21
The lower of the audited total profit net profit and net profit after deducting the non-recurring profit and loss
during the Reporting Period of the Company is negative.□ Yes□ No
62. Taxes and surcharges
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
City maintenance and construction tax 18420069.38 24841682.37
Education surcharge 13153592.31 17745296.10
Property tax 15739031.47 13303366.60
Land use tax 2158920.92 2111546.91
Stamp duty 9986070.81 9095541.16
Others 79706.57 47293.26
Total 59537391.46 67144726.40
253Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
63. Overheads
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 256119400.60 247379353.10
Depreciation and amortization 53204188.69 40319253.79
Decoration costs 38921258.95 30218304.25
Rent and utilities 22249803.67 17929073.29
Intermediary service expenses 15165334.70 16200047.50
Equity incentive expenses 13223455.66 2010527.37
Travel expenses 6810245.52 8636727.63
Office expenses 5254259.96 8504767.31
Property insurance expenses 6856942.01 5947822.95
Low-value consumables 5767482.36 4996087.11
Maintenance expenses 4680442.55 5003900.57
Entertainment fees 2068673.14 3322728.51
Patent fee 1766613.93 2288327.60
Recruitment expenses 1501883.19 1128412.66
Others 9678350.15 7530326.52
Total 443268335.08 401415660.16
64. Sales expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Employee compensation 234511345.91 216057301.03
Intermediary service expenses 50680411.07 32395087.20
Travel expenses 33712426.51 27763607.38
Material and sample costs 33296530.63 23147338.89
Business entertainment expenses 26075196.19 30524256.22
Exhibition and advertising fees 21870899.00 19553727.25
Share-based payments 17263293.63 2443977.62
Rent and utilities 5615836.88 4011697.11
Mail expenses 4043450.76 2852311.58
Depreciation and amortization 3314555.10 2232367.28
Others 27852657.80 18266164.69
Total 458236603.48 379247836.25
65. R&D expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
254Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Employee compensation 574221566.84 501219982.86
Depreciation and amortization 152928686.39 134795616.02
Material expenses 62500553.09 56443253.89
Intermediary service expenses 21976002.20 16408867.59
Rent and utilities 21134508.01 21068938.08
Equity incentive expenses 21372709.49 3505146.93
Low-value consumables 17782988.64 10122656.50
Mold fee 14905098.26 23339825.18
Travel expenses 11985934.71 10971949.81
Testing expense 4099356.61 4355372.28
Decoration costs 1662321.83 1012579.66
Others 14863569.19 25762810.45
Total 919433295.26 809006999.25
66. Financial expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest expense 29799577.30 47188375.93
Interest revenue (income marked with "-") -25211229.18 -36970341.29
Exchange losses (income marked with "-
-7742518.62-66326263.13
")
Bank procedure fees and others 2726833.85 3509282.42
Total -427336.65 -52598946.07
67. Other revenues
Unit: RMB
Source for other revenues Amount incurred in the current period Amount incurred in prior period
Government subsidies 34523115.94 36473349.43
Return of individual income tax service
1340601.691150853.84
charge
Additional deduction for input tax 21510713.54 25055658.16
VAT refund upon collection 9264651.35 10805586.43
Total 66639082.52 73485447.86
68. Net exposure hedging revenue
None.
69. Fair value change revenue
Unit: RMB
255Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Amount incurred in prior
Sources of income from change in fair value Amount incurred in the current period
period
Trading financial assets 4211067.12 -5506110.04
Including: income from fair value changes generated
12500.68
by derivative financial instruments
Financial liabilities held for trading -5161.00 -444281.13
Total 4205906.12 -5950391.17
70. Investment income
Unit: RMB
Amount incurred in prior
Items Amount incurred in the current period
period
Long-term equity investment income accounted by the
1503841.221211092.84
equity method
Investment return from disposal of long-term equity
-13.01
investments
Investment income from disposal of trading financial assets -1097536.56
Interest income from other debt investments in holding
843277.78
period
Debt restructuring gains -1281246.63
Gains/losses on foreign exchange derivatives 4174081.01 -4438268.00
Investment income of financial products 7973961.99 9551460.27
Total 14495148.99 3945501.92
71. Credit impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Bad debt loss on notes receivable 311456.03 -123796.87
Bad debt loss of accounts receivable -11683067.03 -17880413.39
Bad debt loss of other receivables 1629787.29 -5143961.85
Bad Debt Loss on Long-term Receivables -707787.61
Impairment loss of accounts receivable
-182383.182645968.41
financing
Total -10631994.50 -20502203.70
72. Asset impairment loss
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
I. Loss on inventory valuation and
contract performance cost impairment -81718515.08 -78170173.96
loss
IV. Impairment loss of fixed assets -12381411.13
256Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
X. Goodwill impairment loss -30659206.54 -1962891.12
XI. Impairment loss of contract assets -19669.27
Total -124778802.02 -80133065.08
73. Assets disposal revenue
Unit: RMB
Source of assets disposal revenue Amount incurred in the current period Amount incurred in prior period
Non-current assets disposal revenue -53094091.72 -2689826.55
Total -53094091.72 -2689826.55
74. Non-operating income
Unit: RMB
Amount incurred in the current Amount incurred in prior Gains on damage and
Items
period period scrapping of non-current assets
Gains from non-monetary
858016.2166849.76858016.21
asset exchanges
Income from indemnity and
5186664.039966457.045186664.03
liquidated damages
Others 3425342.22 850319.79 3425342.22
Total 9470022.46 10883626.59 9470022.46
75. Non-operating expenses
Unit: RMB
Amount incurred in the current Amount incurred in prior Gains on damage and
Items
period period scrapping of non-current assets
Donations 1073198.78 820559.04 1073198.78
Loss on damage and scrapping
3891333.749649850.723891333.74
of non-current assets
Abnormal loss 50000.00 273792.77 50000.00
Interest and fine on late
4047664.56425767.734047664.56
payment
Others 1700941.19 1146834.71 1700941.19
Total 10763138.27 12316804.97 10763138.27
76. Income tax expenses
(1) Table of income tax expenses
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Current income tax expenses 53602500.55 108609200.48
Deferred tax expense -14723087.67 -5669811.18
Total 38879412.88 102939389.30
257Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Adjustment process of accounting profits and income tax expenses
Unit: RMB
Items Amount incurred in the current period
Total profit 402119521.34
Income tax expenses calculated at statutory/applicable tax rates 60317928.20
Influence of different tax rates applicable to subsidiary 11372172.10
Effect of income tax adjustment in previous period 5340376.95
Impact of non-taxable income -376156.76
Impact of non-deductible cost expense and loss 17510259.03
Effect of using deductible losses on deferred tax assets not
-27521746.76
recognized in the prior period
Impact of deductible temporary differences or deductible losses
50787883.71
of unrecognized deferred tax assets in the current period
Additionally calculated and deducted R&D expenses -79878265.06
Change in the balance of beginning deferred tax assets/liabilities
1326961.47
due to a tax rate adjustment
Income tax expenses 38879412.88
77. Other comprehensive income
See Note 57 for details.
78. Items of cash flow statement
(1) Cash related to operating activities
Other cash received related to operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Interest income 21750817.92 50723986.61
Government subsidies 34822015.97 38837497.41
Current accounts 1338835.13 9115855.13
Deposits and security deposits received 4229622.11 4014198.73
Recovery of frozen funds 30000000.00 3556610.00
Return of individual income tax service
1340601.691150980.72
charge
Others 5012198.28 2836114.38
Total 98494091.10 110235242.98
Other cash paid in connection with operating activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
258Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Service charge 2726833.84 3509282.43
Out-of-pocket expenses 322847917.50 391168818.37
Margin and deposit expenses 10292142.31 6478353.42
Frozen funds 190000.00 30480162.39
Others 8762657.19 2516120.66
Total 344819550.84 434152737.27
(2) Cash related to investment activities
Other cash received relating to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Forex margin 2235246.30
Total 2235246.30
Significant cash received related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Recovered wealth management
531819440.27768000000.00
investments
Recovered equity management
20378975.00564670.00
investments
Total 552198415.27 768564670.00
Other cash paid related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Forex margin 56416530.09
Forward foreign exchange liquidation
924300.00
losses paid
Total 56416530.09 924300.00
Significant cash paid related to investment activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Wealth management investments paid 421219000.00 922246272.51
Equity management investments paid 200000.00
Total 421219000.00 922446272.51
(3) Cash related to financing activities
Other cash received related to financing activities
Unit: RMB
259Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Items Amount incurred in the current period Amount incurred in prior period
Discounted notes receivable that cannot
924368.656009728.26
be terminated for recognition
Lease deposit recovered 2344587.64
Total 3268956.29 6009728.26
Other cash paid related to financing activities
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Share repurchase funds 96046021.00
Payment for principal and interest of lease
41227406.7355433474.48
liabilities
Acquisition of equity of holding
159555100.00
subsidiaries
Payment for lease deposit 1246885.64 502000.00
Total 42474292.37 311536595.48
Changes in liabilities arising from financing activities
□ Applicable □ Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Items Change not in Change not in Ending balancebalance Change in cash Change in cash
cash cash
Short-term
1224214110.412200212465.30113588225.232145544836.181392469964.76
loans
Long-term
borrowings
(including
other non-
352528229.88355000000.00288643229.88418885000.00
current
liabilities to be
due within 1
year)
Lease
liabilities and
unrecognized
financing
expenses
(including 71777541.11 39783393.33 41227406.73 18726508.84 51607018.87
other non-
current
liabilities to be
due within 1
year)
Total 1648519881.40 2555212465.30 153371618.56 2475415472.79 18726508.84 1862961983.63
260Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(4) Description on presenting cash flows on a net basis
Items Relevant facts Basis for net presentation Financial impact
"Cash paid for investments"
and "cash received for
Cash paid for investments/cash Cash flow from purchasing Cash inflows and outflows for investment recovery" set off in
received from investment and redeeming financial projects with fast turnover net value amounted to RMB
recovery products large amounts and short terms 2.911 billion which had no
impact on the financial
statements.
(5) Major activities not involving cash receipts and payments in the current period but influencing the
financial position of the Company or may influence the cash flow of the Company in the future and their
financial impact
None.
79. Supplementary information of cash flow statement
(1) Supplementary materials of cash flow statement
Unit: RMB
Amount in the Amount in the
Supplementary information
current period previous period
1. Adjusting net profit to cash flow from operating activities
Net profit 363240108.46 671884575.94
Plus: provision for asset impairment provision for credit impairment 135410796.52 100635268.78
Depreciation of fixed assets depletion of oil and gas assets depreciation of
248628272.19198044472.00
productive biological assets
Depreciation of right-of-use assets 40007273.82 46037262.71
Amortization of intangible assets 134038210.37 120363691.67
Amortization of long-term deferred expenses 78416952.33 67576328.95
Loss from disposal of fixed assets intangible assets and other long-term assets
53094091.722689826.55
(income marked with "-")
Losses on scrapping of fixed assets (income marked with "-") 3033317.53 9583000.96
Loss from changes in fair value (income marked with "-") -4205906.12 5950391.17
Financial expenses (income marked with "-") 29799577.29 47180304.79
Investment income (income marked with "-") -14495148.99 -3945501.92
Decrease in deferred tax assets (increase marked with "-") -16918580.24 52131201.21
Increase in deferred tax liabilities (decrease marked with "-") 2195492.57 -57801012.39
Decrease in inventory (increase marked with "-") -466606806.15 -234551801.04
Decrease in operating receivables (increase marked with "-") -569828305.51 -770365429.50
Increase in operating payables (decrease marked with "-") 604696862.35 825349295.25
Others 57860732.15 11188843.12
Net cash flow from operating activities 678366940.29 1091950718.25
261Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Major investment and financing activities not involving cash receipts and payments
Conversion of debt into capital
Convertible bonds due within one year
New right-of-use assets 37147963.71 18941859.64
3. Net change in cash and cash equivalents:
Ending balance of cash 1619876262.35 1596352534.73
Minus: beginning balance of cash 1596352534.73 1494743705.76
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 23523727.62 101608828.97
(2) Net cash paid for acquiring subsidiaries in the current period
None.
(3) Net cash received for disposal of subsidiaries in the current period
None.
(4) Composition of cash and cash equivalents
Unit: RMB
Items Ending balance Beginning balance
I. Cash 1619876262.35 1596352534.73
Including: cash in stock 628866.15 800122.43
Bank deposit available for
1612607433.081592396940.89
payment at any time
Other monetary capital for
6639963.123155471.41
payment at any time
III. Balance of cash and cash equivalents
1619876262.351596352534.73
at the end of the period
(5) Presentation of items with limited scope of use but still falling under cash and cash equivalents
None.
(6) Monetary funds not falling under cash and cash equivalents
Unit: RMB
Amount in the Amount in the previous
Items Reasons for not being cash and cash equivalents
current period period
262Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Financial management products in subscription period
Bank deposit 105410272.04 97950855.47 fixed-term deposit funds frozen by court interests
accrued at the end of the period but not yet received etc.Other monetary capital 72161250.05 19672873.14 Margin
Total 177571522.09 117623728.61
(7) Explanation of other major activities
None.
80. Notes to items in change statement of owner's equity
Description of the "Other" item for adjusting the closing balance of previous year the adjusted amount etc.:
none.
81. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Foreign currency balance at Exchange rate for Balance converted into RMB
Items
the end of the period conversion at the end of the period
Monetary capital 992200993.14
Including: US dollars 112069640.94 7.0288 787865648.25
Euros 1472276.27 8.2295 12116094.49
Hong Kong dollars 63621828.25 0.9032 57464584.03
Japanese Yen 563763960.00 0.0448 25255219.32
Indian Rupee 1171085893.19 0.0783 91693533.77
Vietnamese Dong 24195301799.00 0.0003 6474926.23
Romanian New Leu 1876942.32 1.6206 3041708.96
Mexican Peso 21059054.39 0.3899 8210477.76
British Pound 5178.24 9.6927 50191.36
Canadian dollars 5594.00 5.1142 28608.97
Accounts receivable 2540119159.47
Including: US dollars 331040117.95 7.0288 2326814781.04
Euros 2068390.93 8.2355 17034233.50
Hong Kong dollars
Japanese Yen 1119198049.00 0.0448 50136715.00
Indian Rupee 1148443988.72 0.0783 89924119.82
Vietnamese Dong 175247838439.00 0.0003 46807716.26
Romanian New Leu 5792016.38 1.6206 9386351.52
UAE Dirham 298.93 0.5244 156.75
263Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Bulgarian Lev 59.76 4.2270 252.60
Canadian Dollar 1365.85 5.1142 6985.23
British Pound 525.91 9.4346 4961.75
Hungarian Forint 70112.00 0.0213 1496.15
Saudi Riyal 744.01 1.8680 1389.84
Other receivables 33543026.41
Including: US dollars 559274.01 7.0227 3927589.35
Euros 6379.97 8.2355 52542.24
Japanese Yen 2948172.00 0.0448 132069.26
Indian Rupee 11261692.66 0.0783 881799.89
Mexican Peso 24385623.19 0.3893 9492553.56
Vietnamese Dong 62955544500.00 0.0003 16847589.24
Romanian New Leu 1363030.74 1.6206 2208882.87
Accounts payable 137754493.84
Including: US dollars 10965161.70 7.0288 77071592.37
Euros 183095.03 8.2355 1507879.12
Hong Kong dollars 48762.69 0.9032 44043.44
Japanese Yen 358925564.00 0.0448 16078788.50
Indian Rupee 156827597.98 0.0783 12279267.25
Mexican Peso 783213.26 0.3899 305358.20
Vietnamese Dong 111404644744.00 0.0003 29813096.02
Romanian New Leu 403852.07 1.6206 654468.94
Other account payable 64756913.83
Including: US dollars 1705069.78 7.0288 11984591.30
Euros 64462.22 8.2355 530878.61
Japanese Yen 800000.00 0.0448 35837.60
Indian Rupee 20187712.77 0.0783 1580654.96
Mexican Peso 7764620.28 0.3899 3027260.43
Vietnamese Dong 158498492923.00 0.0003 42415922.66
Romanian New Leu 3197505.18 1.6206 5181768.27
(2) Explanation of overseas business entities including for important overseas business entities
disclosure of main overseas business locations recording currency and selection basis as well as
disclosure of reasons for changes in recording currency.□ Applicable □ Not applicable
1. Topband India Private Limited a subsidiary of the Company is mainly located in Pune City Maharashtra
India with Indian Rupee as the recording currency;
3. TOPBAND SMART DONG NAI (VIETNAM) Co. Ltd. a sub-subsidiary of the Company is mainly located
264Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
in Dong Nai Province Vietnam with Vietnamese Dong as the recording currency;
3. Topband Germany GmbH a sub-subsidiary of the Company is mainly located in Unterf?hring Germany
with Euro as the recording currency;
4. TOPBAND JAPAN Co. Ltd. a sub-subsidiary of the Company is mainly located in Nagoya Japan with
Japanese Yen as the recording currency;
5. Q.B.PTE.LTD a sub-subsidiary of the Company is located in Singapore with Singapore dollar as the
bookkeeping base currency;
6. TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. a sub-subsidiary of the Company is located
in Timisoara Romania with Leu as the recording currency;
7. TOPBAND MEXICO S.DER.L.DEC.V. the sub-subsidiary of the Company is located in Monterrey
Mexico with peso as the recording currency.
82. Lease
(1) The Company as the lessee
□ Applicable □ Not applicable
Variable lease payments not included in the measurement of the lease liability
□ Applicable□ Not applicable
Rental expenses of simplified short-term leases or low-value assets
□ Applicable □ Not applicable
The simply treated expenses of short-term leases credited to current profit or loss is RMB 8897255.32.
(2) The Company as the lessor
Operating lease by lessor
□ Applicable □ Not applicable
Unit: RMB
Including: incomes related to variable
Items Rental income lease payments not credited to rental
receipts
Rental income 32229777.29 0.00
265Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Total 32229777.29 0.00
Financing lease as lessor
□ Applicable □ Not applicable
Unit: RMB
Revenue related to variable
Items Sales profit and loss Financing profit and loss lease payments not included in
lease collection amount
Taixing production line
-23851057.901976206.65/
equipment
Total -23851057.90 1976206.65 /
Undiscounted lease collection amount for each of the next five years.□ Applicable □ Not applicable
Unit: RMB
Undiscounted rental receipts of each year
Items
Ending amount Beginning amount
Year 1 33508161.99 25882409.51
Year 2 24496713.28 22268501.65
Year 3 19758235.61 18779404.62
Year 4 17644083.47 16023848.21
Year 5 10089598.93 12351375.56
Total amount of undiscounted rental
13507430.2319969212.34
receipts after five years
(3) Recognition of finance lease sales gains and losses as a manufacturer or distributor
□ Applicable□ Not applicable
83. Data resources
None.
84. Others
None.VIII. R&D expenditure
Unit: RMB
Amount incurred in the current
Items Amount incurred in prior period
period
266Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Employee compensation 685982566.77 623404178.58
Depreciation and amortization 154554810.14 137093963.35
Material expenses 70761578.85 65491329.66
Equity incentive expenses 21372709.49 3505146.93
Mold fee 18237821.30 29177739.78
Intermediary service expenses 21976002.20 17256872.82
Low-value consumables 17782988.64 10177164.29
Testing expense 5503406.28 5979237.21
Decoration costs 1662321.83 1012579.66
Rent and utilities 21134508.01 21068938.08
Travel expenses 12668678.79 12173093.04
Others 15555605.93 25765100.89
Total 1047192998.23 952105344.29
Including: expensed R&D expenditure 919433295.26 809006999.25
Capitalized R&D expenditures 127759702.97 143098345.04
1. R&D projects that meet capitalization conditions
Unit: RMB
Decrease amount in the current
Increase in the current period
period
Beginning Transferred EndingItems
balance Internal Recognized as to current balance
development Others
intangible assets profit and
expenditure
loss
Intelligent controller
53659877.07103151499.74107811375.9749000000.84
project
Motor and control
14718756.004376869.9219095625.92
system project
New energy project 56836126.92 20231333.31 68433976.62 8633483.61
Total 125214759.99 127759702.97 195340978.51 57633484.45
2. Important outsourced projects under development
None.IX. Changes in the scope of consolidation
1. Consolidation under different control
None.
267Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2. Consolidation under the same control
None.
3. Reverse purchase
None.
4. Disposal of subsidiaries
Whether there are any transactions or events in this period in which the control of the subsidiary is lost
□ Yes□ No
Whether there are step-by-step disposal of the investment in a subsidiary through multiple transactions and loss
of control in the current period
□ Yes□ No
5. Changes in the scope of consolidation due to other reasons
Explanations for the changes in the scope of the consolidation caused by other reasons (e.g. establishment of
new subsidiaries or liquidation of subsidiaries etc.) and relevant circumstances:
During the Reporting Period the Company established one new subsidiary the details of which are as follows:
Proportion of shareholding
No. Name of subsidiary Registered place Registration date
Direct Indirect
Guangzhou Topband Digital Energy Co.
1 Guangzhou 2025/7/1 100%
Ltd.During the Reporting Period the Company cancelled one sub-subsidiary the details of which are as follows:
Former proportion of
No. Name of subsidiary Registered place Liquidation date shareholding
Direct Indirect
1 YOLANESS AFRICA (PTY) LTD South Africa 2025/2/1 100%
6. Others
None.
268Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
X. Interests in other entities
1. Equities in subsidiaries
(1) Composition of enterprise group
Unit: RMB
Princip Proportion of
al place Registe shareholding
Registered Nature of Acquisitio
Name of subsidiary of red
capital business n method
busines place Direct Indirect
s
Shenzhen Topband Software Technology Shenzh Shenzh Production Establishm
1000000.00100.00%
Co. Ltd. en en and sales ent
Shenzhen Topband Automation Shenzh Shenzh Production Establishm
35000000.00100.00%
Technology Co. Ltd. en en and sales ent
Shenzh Shenzh Production Establishm
Shenzhen Topband Battery Co. Ltd. 100000000.00 100.00%
en en and sales ent
Chongq Chongq Production Establishm
Chongqing Topband Industrial Co. Ltd. 50000000.00 100.00%
ing ing and sales ent
Hong Hong Establishm
Topband (Hong Kong) Co. Ltd. HKD 155 million Investment 100.00%
Kong Kong ent
Huizhou Topband Electrical Technology Huizho Huizho Production Establishm
300000000.00100.00%
Co. Ltd. u u and sales ent
2.265 billion Production Establishm
TOPBAND INDIA PRIVATE LIMITED India India 100.00%
Indian rupees and sales ent
Consolidat
Shenzhen YAKO Automation Shenzh Shenzh Production ion under
60000000.00100.00%
Technology Co. Ltd. en en and sales different
control
Consolidat
Shenzhen Allied Control System Co. Shenzh Shenzh Production ion under
55999998.00100.00%
Ltd. en en and sales different
control
Huizhou Topband Lithium Battery Co. Huizho Huizho Production Establishm
2000000.00100.00%
Ltd. u u and sales ent
Ningbo Topband Intelligent Control Co. Production Establishm
300000000.00 Ningbo Ningbo 100.00%
Ltd. and sales ent
Consolidat
Shenzhen Meanstone Intelligent Shenzh Shenzh Production ion under
7600000.0077.25%
Technology Co. Ltd. en en and sales different
control
Consolidat
Shenzh Shenzh Production ion under
Shenzhen Yansheng Software Co. Ltd. 1500000.00 100.00%
en en and sales different
control
Consolidat
Hangzhou Zhidong Motor Technology Hangzh Hangzh Production ion under
1500000.0075.00%
Co. Ltd. ou ou and sales different
control
TOPBAND SMART DONGNAI Vietna Vietna Production Establishm
USD 33.5 million 100.00%
(VIETNAM) COMPANY LIMITED m m and sales ent
German German Establishm
Topband Germany GmbH EUR 25000 Sales 100.00%
y y ent
269Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Establishm
TOPBAND JAPAN Co. Ltd JPY 30 million Japan Japan Sales 100.00%
ent
Shenzhen Topband Supply Chain Shenzh Shenzh Establishm
5000000.00 Sales 100.00%
Services Co. Ltd. en en ent
Shenzh Shenzh Establishm
Shenzhen Topband Investment Co. Ltd. 50000000.00 Sales 100.00%
en en ent
Shenzhen Topband Digital Energy Co. Shenzh Shenzh Establishm
10000000.00 Sales 100.00%
Ltd. en en ent
Shenzh Shenzh Establishm
Shenzhen Tunnu Innovation Co. Ltd. 10000000.00 Sales 100.00%
en en ent
Shenzh Shenzh Establishm
Shenzhen Senxuan Technology Co. Ltd. 10000000.00 Sales 100.00%
en en ent
Topband (Qingdao) Intelligent Control Qingda Qingda Production Establishm
10000000.00100.00%
Co. Ltd. o o and sales ent
Consolidat
Shenzh Shenzh ion under
Shenzhen Tengyi Industrial Co. Ltd. 1000000.00 Sales 100.00%
en en different
control
Consolidat
Taixing Topband Lithium Battery Co. Production ion under
105000000.00 Taixing Taixing 100.00%
Ltd. and sales different
control
Shenzhen Topband Automotive 10000000.00 Shenzh Shenzh EstablishmSales 100.00%
Electronics Co. Ltd. en en ent
Singap Singap Establishm
Q.B.PTE.LTD SGD 10000 Sales 100.00%
ore ore ent
Production Establishm
TOPBAND MEXICO S.DER.L.DEC.V. USD 35 million Mexico Mexico 100.00%
and sales ent
Hong Hong Establishm
Tunnu Innovation (Hong Kong) Limited 10000000.00 Sales 100.00%
Kong Kong ent
TOPBAND SMART EUROPE Romani Romani Establishm
USD 30 million Sales 100.00%
COMPANY LIMITED S.R.L. a a ent
Huizhou YAKO Automation Technology Shenzh Shenzh Production Establishm
50000000.00100.00%
Co. Ltd. en en and sales ent
Shenzh Shenzh Establishm
Shenzhen Zhongli Consulting Co. Ltd. 2000000.00 Sales 100.00%
en en ent
Establishm
TUNNU INNOVATION INC USD 10000 U.S. U.S. Sales 100.00%
ent
Nantong Topband Lithium Battery Co. Nanton Nanton Production Establishm
100000000.00100.00%
Ltd. g g and sales ent
Shenzh Shenzh Production Establishm
Shenzhen Topband Motor Co. Ltd. 10000000.00 100.00%
en en and sales ent
Shenzh Shenzh Establishm
Shenzhen Yueshang Robot Co. Ltd. 10000000.00 Sales 100.00%
en en ent
Shenzh Shenzh Establishm
Shenzhen Jingfei Investment Co. Ltd. 10000000.00 Sales 100.00%
en en ent
Huizho Huizho Production Establishm
Huizhou Chiding Technology Co. Ltd. 20000000.00 100.00%
u u and sales ent
Hong Hong Establishm
Yolaness Technology (HK) Co. Limited USD 500000 Sales 100.00%
Kong Kong ent
Huizhou Jiuwan Luyuan Agriculture Co. Huizho Huizho Production Establishm
5000000.00100.00%
Ltd. u u and sales ent
Chongqing Topband Yishu Energy Chongq Chongq Establishm
1000000.00 Sales 100.00%
Technology Co. Ltd. ing ing ent
Topband Digital Energy Technology Huizho Huizho Establishm
1000000.00 Sales 100.00%
(Huizhou) Co. Ltd. u u ent
270Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Guangzhou Topband Digital Energy Co. Guangz Guangz Establishm
1000000.00 Sales 100.00%
Ltd. hou hou ent
(2) Important non-wholly-owned subsidiaries
None.
(3) Major financial information of important non-wholly-owned subsidiaries
None.
(4) Significant restrictions on using group assets and settling group liabilities
None.
(5) Financial support or other support provided to structured entities included in the scope of the consolidated financial
statements
None.
2. Transactions causing the owner's equity share change but still controlling the subsidiary
None.
3. Interests in joint venture arrangements or associated enterprises
None.
4. Significant joint operations
None.
5. Rights and interests in structured entities not included in the scope of the consolidated financial
statements
Relevant explanations of structured entities not included in the scope of the consolidated financial statements:
none.
6. Others
None.
271Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
XI. Government subsidies
1. Government grants recognized as receivable at the end of the Reporting Period
□ Applicable□ Not applicable
Reasons for not receiving the expected amount of government subsidies at the expected time
□ Applicable□ Not applicable
2. Liabilities involving government subsidies
□ Applicable □ Not applicable
Unit: RMB
Amount
Newly accounted Amount
increased into non- included in Other Asset-
Accounting Beginning Ending
subsidy in operating other income changes in related/revenue-
items balance balance
the current income in in the current this period related
period the current period
period
Deferred
13358627.74 4687717.70 4388817.67 -389712.99 14047240.76 Asset-related
income
3. Government subsidies included in the current profits and losses
□ Applicable □ Not applicable
Unit: RMB
Accounting items Amount incurred in the current period Amount incurred in prior period
Other income 34523115.94 36473349.43
XII. Risks associated with financial instruments
1. Risks arising from financial instruments
The risks of the Company related to financial instruments are derived from various types of financial assets
and financial liabilities recognized during the operation of the Company including: credit risk liquidity risk and
market risk.The management objectives policies and systems of the Company for various types of risks associated
with financial instruments are the responsibility of the Company's management. The management is responsible
for daily risk management through functional departments (for example the Credit Management Department of
272Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
the Company reviews credit sales of the Company on a case-by-case basis). The Internal Audit Department of
the Company shall supervise the implementation of the Company's risk management policies and procedures in
its daily work and reports relevant findings to the Audit Committee of the Company in a timely manner.The overall objective of the Company for risk management is to develop risk management policies that
minimize the risks associated with various financial instruments without unduly affecting the Company's
competitiveness and resilience.
1. Credit risk
Credit risk refers to the risk that one party to a financial instrument fails to perform its obligations
resulting in financial losses to the other party. Credit risks of the Company mainly arise from monetary funds
notes receivable accounts receivable receivables financing other receivables etc. The credit risk of these
financial assets is derived from defaults by the counterparty and the maximum risk exposure is equal to the
book amount of these instruments.The monetary funds of the Company are mainly deposited in commercial banks and other financial
institutions which the Company believes have a high reputation sound financial standing and low credit risks.For notes receivable accounts receivable receivables financing and other receivables the Company
establishes policies to control the credit risk exposure. The Company evaluates the credit qualification of
customers and sets the corresponding credit period based on their financial condition the possibility of
obtaining guarantees from third parties credit record and other factors such as current market conditions. The
Company regularly monitors the credit record of customers and for customers with poor credit history the
Company ensures the overall credit risk of the Company to be under control by sending reminders of payment
collection shortening the credit period or canceling the credit period.
(1) Determination criteria for significant increase of credit risk
At each balance sheet date the Company evaluates whether the credit risk of the relevant financial
instruments has significantly increased since the initial recognition. In determining whether credit risk has
increased significantly since the initial recognition the Company considers obtaining reasonable and evidence-
based information at no unnecessary additional cost or effort including qualitative and quantitative analysis
based on the historical data of the Company external credit risk ratings and forward-looking information.Based on a single financial instrument or a portfolio of financial instruments with similar credit risk
characteristics the Company compares the risk of default of the financial instrument on the balance sheet date
273Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
with the risk of default on the initial recognition date to determine the change in the risk of default during the
expected duration of the financial instruments.When one or more of the following quantitative and qualitative criteria are triggered the Company
considers that the credit risk of a financial instrument has significantly increased: the quantitative criterion is
mainly that the default probability in the remaining duration has increased by more than a certain percentage on
the balance sheet date than that at the initial recognition; the qualitative criterion is the occurrence of major
adverse changes in the operation or financial condition of the principal debtor the list of early warning
customers etc.
(2) Definition of assets with credit impairment occurred
To determine whether credit impairment has occurred the determination criteria adopted by the Company
are consistent with its internal credit risk management objectives for the relevant financial instruments taking
into account both quantitative and qualitative indicators.In assessing whether a debtor has suffered credit impairment the Company mainly considers the following
factors: whether the issuer or the debtor has experienced major financial difficulties; whether a debtor breaches
the contract such as default or delay in payment of interest or principal; whether the creditor grants concessions
to the debtor that it would not have made in any other circumstances for economic or contractual reasons
related to the debtor's financial difficulties; whether the debtor is likely to become insolvent or undergo other
financial restructuring; whether the financial difficulties of the issuer or debtor cause the disappearance of an
active market for the financial asset; whether a financial asset is acquired or derived a substantial discount that
reflects the fact that a credit loss has occurred.The credit impairment of financial assets may be caused by the combination of multiple events not
necessarily by individually identifiable events.
(3) Parameters for measurement of expected credit loss
Depending on whether there has been a significant increase in credit risk and whether credit impairment
has occurred the Company measures the impairment provision for different assets in terms of expected credit
losses for 12 months or the entire duration respectively. The key parameters for measurement of expected credit
loss include default probability default loss rate and default risk exposure. The Company takes into account
quantitative analysis and forward-looking information of historical statistical data (e.g. ratings of counterparty
types of guarantees and collateral repayment methods etc.) to establish default probability default loss rate and
default risk exposure models.
274Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
The relevant definitions are as follows:
The default probability refers to the probability that the debtor will not be able to meet its payment
obligations in the next 12 months or throughout the remaining duration.Default loss rate refers to the Company's expectation of the degree of loss from the exposure to a default
risk. Default loss rates vary depending on the type of counterparty the method and priority of recourse and the
collateral. Default loss ratio is the percentage of loss from the risk exposure when the default occurs calculated
on the basis of the next 12 months or the entire duration.Exposure at default refers to the amount to be compensated to the Company in the event of a default in the
next 12 months or throughout the remaining duration. Forward-looking information is involved in the
assessment of significant increases in credit risk and the calculation of expected credit losses. Through historical
data analysis the Company identifies key economic indicators that affect the credit risk and expected credit
losses of various business types.The Company's maximum credit exposure is the carrying amount of each financial asset in the balance
sheet. The Company does not provide any other guarantees that may expose the Company to credit risks.Among the Company's accounts receivable the accounts receivable from the top five customers account
for 38.87% of the total accounts receivable (comparison period: 40.04%); among the Company's other
receivables the other receivables of the top five companies with outstanding amounts account for 62.06% of the
total other receivables (comparison period: 51.40%).
2. Liquidity risk
Liquidity risk refers to the risk of capital shortage when an enterprise meets its obligation to settle by
delivery of cash or other financial assets. The Company is comprehensively responsible for the cash
management of its subsidiaries including short-term investment of cash surplus and financing of loans to meet
anticipated cash needs. It is the policy of the Company to regularly monitor short-term and long-term working
capital demands and compliance with borrowing agreements to ensure the maintenance of sufficient cash
reserves and readily available marketable securities.
3. Market risk
(1) Foreign exchange risk
The exchange rate risk of the Company is primarily attributable to foreign currency assets and liabilities
held by the Company and its subsidiaries that are not denominated in their recording currency. The Company's
exposure to foreign exchange risks is mainly related to US dollars and Indian rupees. Except the Company that
275Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
purchases and sells some materials and products in US dollars its subsidiary TOPBAND INDIA PRIVATE
LIMITED that uses Indian rupees its sub-subsidiary TOPBAND SMART DONG NAI (VIETNAM) Co. Ltd.that uses Vietnamese dongs its sub-subsidiary Topband Germany GmbH that uses Euros its sub-subsidiary
TOPBAND JAPAN Co. Ltd. that uses Japanese yens its sub-subsidiary Q.B.PTE.LTD that uses Singapore
dollars its sub-subsidiary TOPBAND MEXICO S.DER.L.DEC.V. that uses Mexican pesos its sub-subsidiary
TOPBAND SMART EUROPE COMPANY LIMITED S.R.L. that uses Romanian Leu its sub-subsidiary Tunnu
Innovation (Hong Kong) Limited that uses Hong Kong dollars and its sub-subsidiary TUNNU INNOVATION
INC that uses US dollars other major business activities of the Company are settled in RMB.* As of December 31 2025 see Note V. 81 of the Financial Reports for details about the monetary assets
and liabilities in foreign currency of the Company at end of the period.The Company continuously monitors the size of its transactions assets and liabilities in foreign currencies
in order to minimize its exposure to foreign exchange risks; for this purpose the Company may enter into
forward foreign exchange contracts to avoid foreign exchange risks.* Sensitive analysis
On December 31 2025 with other risk variables unchanged if the RMB appreciated or depreciated by
10% against the US dollar on that date the net profit of the Company for the year would increase or decrease by
RMB 272.6515 million; if the RMB appreciated or depreciated by 10% against the Indian Rupee on that day
the net profit of the Company for the year would increase or decrease by RMB 16.6905 million.
(2) Interest rate risk
The interest rate risk of the Company is mainly derived from long-term bank loans. Financial liabilities
with floating interest rate expose the Company to cash flow interest rate risks and financial liabilities with fixed
interest rate expose the Company to fair value interest rate risks. The Company determines the relative
proportion of contracts with fixed rate and floating rate based on the prevailing market environment.The Headquarters Financial Department of the Company monitors the interest rate level of the group on a
continuous basis. An increase in interest rates will increase the cost of new interest-bearing debts and interest
expense on the Company's outstanding interest-bearing debt with floating interest rates and will have a material
adverse effect on the Company's financial results to which the management will adjust in a timely manner
based on the latest market conditions.During the period ended December 31 2025 the bank borrowings with fixed interest rates of the Company
was RMB 1.27247 billion and the bank borrowings with floating interest rates was RMB 538.885 million. If the
276Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
borrowing rate calculated at floating interest rates increase or decrease by 100 basis points with other risk
variables remain unchanged the total profit of the Company for the year would decrease or increase by RMB
5.3889 million.
XIII. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: RMB
Ending fair value
Items The first level of The second level of fair The third level of fair
fair value Total
value measurement value measurement
measurement
I. Continuous fair value
--------
measurement
(I) Tradable financial assets 212671537.17 325430944.26 538102481.43
1. Financial asset at fair value and
changes through current profits 212671537.17 325430944.26 538102481.43
and losses
(1) Debt instrument investment 212671537.17 212671537.17
(2) Equity instrument investment 325430944.26 325430944.26
2. Designated financial assets
measured at fair value with
changes recognized in current
profit or loss
(II) Receivables financing 138461638.53 138461638.53
(III) Investments in other equity
51622482.0051622482.00
instruments
(IV) Other debit investments 40843277.78 40843277.78
Total assets continuously
253514814.95515515064.79769029879.74
measured at fair value
(VI) Trading financial liabilities 5161.00 5161.00
Total liabilities continuously
5161.005161.00
measured at fair value
II. Non-continuous fair value
--------
measurement
2. The basis for determining the market price of continuous and non-continuous first-level fair value
measurement items
For financial liabilities measured at fair value and whose changes are credited to current profit or loss their
fair value is determined mainly based on market prices quoted by the bank.
277Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3. Continuous and non-continuous second-level fair value measurement items valuation techniques
adopted and qualitative and quantitative information of important parameters
If there are open market quotations for investments in liability instruments measured at fair value and
whose changes are credited to current profit or loss their fair value is determined based on market prices quoted
by the bank with consideration of liquidity premium.The Company's other debt investments are transferable large-amount certificates of deposit which use
prices of similar or identical assets in inactive markets as the basis for determining fair value.
4. Continuous and non-continuous third-level fair value measurement items valuation techniques
adopted and qualitative and quantitative information of important parameters
For financial liabilities and other equity instrument investments measured at fair value and whose changes
are credited to current profit or loss and for other non-current financial assets measured at fair price and whose
changes are credited to current profit or loss since the operating environment operating conditions and
financial conditions of the invested products or enterprises are free of material changes the Company measures
at the cost of the investment or the most recent transaction price as a reasonable estimate of fair value.The receivables financing of the Company mainly consists of unmatured bank acceptance bills and supply
chain notes receivable. As the bill acceptor's credit status is good and there is no material adverse change in
operating or financial conditions the risk of collection at maturity is expected to be low and the Company
measures by taking the book value as a reasonable estimate of fair value.
5. Continuous third-level fair value measurement items adjustment information between beginning and
ending book value and sensitivity analysis of unobservable parameters
Not applicable.
6. For continuous fair value measurement items if the conversion occurs among different levels in the
current period the reasons for the conversion and the policies for determining the conversion time point
Not applicable.
7. Technical changes in valuation during the current period and the reasons for such changes
Not applicable.
278Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
8. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and financial liabilities of the Company measured at the amortized cost mainly include:
money funds notes receivable accounts receivable other receivables short-term borrowings notes payable
accounts payable other payables long-term borrowings due within one year and long-term borrowings.
9. Others
None.XIV. Related parties and related party transactions
1. Profile of parent company of the Company
Proportion of the
Shareholding ratio
Name of parent parent company's
Registered place Nature of business Registered capital of parent company
company voting rights in the
to the Company
Enterprise
Not applicable Not applicable
Profile of parent company of the Company
Ultimate controller of the Company: The ultimate controller of the Company is Mr. Wu Yongqiang a natural
person. As of December 31 2025 Wu Yongqiang held 17.00% of the shares of the Company.The ultimate controller of the Company is Wu Yongqiang.
2. Profile of subsidiaries of the Company
For details of the subsidiaries of the Company refer to Note X.1.
3. Information on the joint ventures and associated enterprises of the Company
See the Note X.3 on key joint ventures or associated enterprises of the Company.Other joint ventures or associated enterprises having related-party transaction in current period or in previous
period to form balance are listed as follows:
Name of joint venture or associated enterprise Relationship with the Company
Dongguan Jujin Plastic Technology Co. Ltd. Associated enterprises of the Company
279Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
4. Other related parties
Names of other related parties Relationship between other related parties and the Enterprise
A company substantially controlled by the relative of the
Shenzhen Jizhiguang Electronics Co. Ltd.Company's legal representative
Shenzhen Lianghui Technology Co. Ltd. Shareholding companies of the Company
Shenzhen ORVIBO Technology Co. Ltd. Shareholding companies of the Company
Shenzhen HANSC Intelligent Technology Co. Ltd. Shareholding companies of the Company
Guangdong Zhongchuang Zhijia Scientific Research Co. Ltd. Shareholding companies of the Company
Guangdong Huixin Semiconductor Co. Ltd. Shareholding companies of the Company
Fujian Blue Ocean Digital Energy Technology Co. Ltd. Shareholding companies of the Company
Shenzhen Youbi Technology Co. Ltd. Shareholding companies of the Company
Jiangsu Donghai Semiconductor Co. Ltd. Shareholding companies of the Company
Jiangxi Sarui Microelectronics Technology Co. Ltd. Shareholding companies of the Company
Shenzhen Jizhi Laser Technology Co. Ltd. Shareholding companies of the Company
Dongguan Jujin Plastic Technology Co. Ltd. Shareholding companies of the Company
Shanghai Yidong Power Technology Co. Ltd. Shareholding companies of the Company
Shenzhen Daka Optoelectronics Co. Ltd. Shareholding companies of the Company
Suzhou Legendsemi Technology Co. Ltd. Shareholding companies of the Company
Suzhou Suyu Technology Co. Ltd. Shareholding companies of the Company
5. Related party transaction
(1) Related transactions involving the purchase and sale of goods and the provision and acceptance of
services
List of goods purchased/services received
Unit: RMB
Is the
Related Amount incurred
Approved transaction Amount incurred
Related party transaction in the current
transaction limit limit in prior period
content period
exceeded
Shenzhen Jizhiguang Electronics Purchase of raw
16495722.58 34000000.00 No 17041086.70
Co. Ltd. materials
Shenzhen ORVIBO Technology Purchase of raw
4452.00 No
Co. Ltd. materials
Jiangsu Donghai Semiconductor Purchase of raw
35529.00 No 58452.75
Co. Ltd. materials
Jiangxi Sarui Microelectronics Purchase of raw
1991.50 No 3967.43
Technology Co. Ltd. materials
Dongguan Jujin Plastic Technology Purchase of raw
39272236.20 No 40335862.83
Co. Ltd. materials
Guangdong Huixin Semiconductor Purchase of raw
9448.38 No 1232.01
Co. Ltd. materials
List of goods sold/services provided
280Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Unit: RMB
Related transaction Amount incurred in the Amount incurred in prior
Related party
content current period period
Shenzhen ORVIBO Technology Co. Ltd. Sales of commodities 5838410.01 7502911.98
(2) Relevant entrusted management/contracting and entrusted management/outsourcing
None.
(3) Related lease
None.
(4) Related party guarantee situation
None.
(5) Interbank lending of related parties
None.
(6) Asset transfer and debt restructuring of related parties
None.
(7) Remuneration of key management personnel
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
Remuneration of key management
11031500.0014608200.00
personnel
(8) Other related transactions
None.
6. Receivables and payables due to related parties
(1) Item receivable
Unit: RMB
Project name Related party Ending balance Beginning balance
281Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for Provision for
Book balance Book balance
bad debts bad debts
Accounts Shenzhen ORVIBO Technology Co.
864938.6326813.10716304.6322205.44
receivable Ltd.Financing of Shenzhen ORVIBO Technology Co.
632.62
accounts receivable Ltd.
(2) Payables
Unit: RMB
Project name Related party Ending book balance Beginning book balance
Shenzhen Jizhiguang Electronics Co.Accounts payable 1507208.16 1699834.24
Ltd.Jiangsu Donghai Semiconductor Co.Accounts payable 4411.52 39655.01
Ltd.Guangdong Huixin Semiconductor Co.Accounts payable 7836.52 1212.77
Ltd.Jiangxi Sarui Microelectronics
Accounts payable 1991.50
Technology Co. Ltd.Dongguan Jujin Plastic Technology Co.Accounts payable 14288274.50 818690.92
Ltd.Other account Dongguan Jujin Plastic Technology Co.
208900.00495000.00
payable Ltd.
7. Commitment of related parties
None.
8. Others
None.XV. Share-based payment
1. General situation of share-based payments
□ Applicable □ Not applicable
Unit: RMB
Granted in the Exercised in the Released in the Invalidated in the current
Grant object category current period current period current period period
Number Amount Number Amount Number Amount Number Amount
Personnel on key management
and technical positions as well 11384900.00 43237300.00
as other business backbones
Total 11384900.00 43237300.00
Stock options or other equity instruments outstanding at the end of the period
282Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
□ Applicable □ Not applicable
Stock options outstanding the at the end of the Other equity instruments outstanding at the end of
period the period
Grant object category
Remaining period of Remaining period of
Range of exercise price Range of exercise price
contract contract
Personnel on key
management and
technical positions as RMB 9.53/share 12 and 24 months RMB 9.60/share 12 months
well as other business
backbones
Other descriptions:
Implementation of the Company's equity incentives for employees
(1) Employee stock ownership plan
On November 6 2024 the Company held the 15th (Extraordinary) Meeting of the 8th Board of Directors
and the 10th (Extraordinary) Meeting of the 8th Board of Supervisors. On November 25 2024 the Company
held the 2nd Extraordinary General Meeting of Shareholders in 2024 in which the Proposal on the Company's
2024 Employee Stock Ownership Plan (Draft) and its Summary and other relevant motions were deliberated
and approved. The actual number of shares subscribed under the Employee Stock Ownership Plan was
5181200 shares with the total amount of RMB 49739520.00 for the shares actual subscribed. The funds for
the Employee Stock Ownership Plan mainly came from the special incentive fund accrued by the Company.After review and approval of the Employee Stock Ownership Plan by the General Meeting of Shareholders of
the Company the shares will be unlocked in two phases 12 months and 24 months after the Company
announces the transfer of the underlying shares to the names given in the Employee Stock Ownership Plan
respectively with 40% of the underlying shares to be unlocked in Phase 1 and 60% in Phase 2. On December 23
2024 the Company received the Letter of Securities Transfer Registration Confirmation issued by the Shenzhen
Branch of CSDC stating that the 5181200 shares of the Company (approximately 0.42% of the current total
share capital of the Company) held in the special securities buyback account of the Company had been
transferred to its account for the 2024 Employee Stock Ownership Plan without trading on December 23 2024.As of December 31 2025 the number of shares held by incentive recipients who had resigned under the
employee stock ownership plan was 285000 which will be handled in accordance with the employee stock
ownership plan in the future.
(2) Stock option incentive plan
283Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Under the authorization of the 2nd Extraordinary General Meeting of Shareholders in 2024 of the
Company the Company held the 16th (Extraordinary) Meeting of the 8th Board of Directors and the 11th
(Extraordinary) Meeting of the 8th Board of Supervisors on December 9 2024 in which the Proposal on
Granting Stock Options to Incentive Objects was deliberated and adopted. It was determined that the grant date
of the stock options under the Incentive Plan shall be December 9 2024 and 32.9 million stock options shall be
granted to 1050 eligible objects. The waiting periods for the stock options granted under this Incentive Plan are
12 months 24 months and 36 months respectively from the date of grant and the percentages of unlocking for
the periods are 30% 30% and 40% respectively.As of December 31 2025 1.2299 million stock options had become invalid due to the resignation of
incentive recipients and 9.87 million stock options had become invalid due to failure to meet the performance
evaluation indicators during the first exercise period.
2. Equity-settled share-based payments
□ Applicable □ Not applicable
Unit: RMB
Method for determining the fair value of equity instruments on
Black-Scholes option pricing model
the grant date
Important parameters for fair value of equity instruments on the
Historical volatility risk-free rate of return and dividend yield
grant date
Basis for determining the number of exercisable equity Best estimate made based on the latest available follow-up
instruments information such as changes in the number of vested employees
Reasons for the significant difference between the estimates of
None.the current period and that of the previous period
The accumulated amount of equity-settled share-based payments
66538339.92
is included in capital reserves.Total amount of expenses recognized by equity-settled share-
57561832.12
based payments in the current period
3. Cash-settled share-based payments
□ Applicable□ Not applicable
4. Current share-based payments
□ Applicable □ Not applicable□
Unit: RMB
Grant object category Equity-settled share-based payments Cash-settled share-based payments
284Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Management personnel 13223455.66
Salesperson 17263293.63
R&D personnel 21372709.49
Production personnel 5702373.34
Total 57561832.12
5. Modification and termination of share-based payments
None.
6. Others
None.XVI. Commitments and contingencies
1. Important commitments
As of December 31 2025 the Company had no material commitments that need to be disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
As of December 31 2025 the Company had no material contingencies that need to be disclosed.
(2) The important contingencies not required to be disclosed shall be explained as well
As of December 31 2025 the Company had no material contingencies that need to be disclosed.
3. Others
None.XVII. Events after the balance sheet date
1. Important non-adjusting matters
None.
285Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
2、Profit distribution
Refer to Section "IX. Profit Distribution and Conversion of Capital Accumulation Fund to Share Capital" in
"Section IV Corporate Governance Environment and Society" for details.
3. Sales return
None.
4. Explanation of other events after the balance sheet date
None.XVIII. Other important matters
None.XIX. Notes to main items of financial statements of the parent company
(1) Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1910977642.43 1790348068.30
1-2 years 9503741.12 6158056.10
2-3 years 1786068.33 2067104.65
Above 3 years 2508378.98 2525306.52
3-4 years 506253.22 469739.39
4-5 Years 93569.38
Above 5 years 2002125.76 1961997.75
Total 1924775830.86 1801098535.57
286Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Book value Proportion Book value
Amount Proportion Amount Amount Proportion Amount
of provision of provision
Accounts
receivable
with single 2288881.21 0.12% 2288881.21 100.00% 2994574.69 0.17% 2994574.69 100.00%
provision for
bad debts
Accounts
receivable
with
1922486949.6599.88%49794682.662.59%1872692266.991798103960.8899.83%49012286.122.73%1749091674.76
provision for
bad debts by
portfolio
Including:
(1) Aging
1569973905.5481.57%49794682.663.17%1520179222.881554811170.5186.33%49012286.123.15%1505798884.39
portfolio
2. Related
party
portfolio
352513044.1118.31%352513044.11243292790.3713.51%243292790.37
within the
scope of the
consolidation
Total 1924775830.86 100.00% 52083563.87 2.71% 1872692266.99 1801098535.57 100.00% 52006860.81 2.89% 1749091674.76
287Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Single provision for bad debts: 2288881.21
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision for Proportion of Reasons for
Book balance Book balance
bad debts bad debts provision provision
Difficult to
Single provision 2994574.69 2994574.69 2288881.21 2288881.21 100.00% recover as
estimated
Total 2994574.69 2994574.69 2288881.21 2288881.21
Provision for bad debts by portfolio: 49794682.66
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio 1569973905.54 49794682.66 3.17%
Total 1569973905.54 49794682.66
Explanation of the basis for determining the portfolio: none.Provision for bad debts by portfolio: 0
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Related parties within the
352513044.11
scope of the consolidation
Total 352513044.11
Explanation of the basis for determining the portfolio: none.Provision for bad debts of accounts receivable based on the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category
balance Recover or
Ending balance
Provision Write-off Others
reversal
Single provision for bad
2994574.69301755.4537257.93970191.002288881.21
debts
Provision for bad debts by
49012286.121160575.53378178.9949794682.66
portfolio
Total 52006860.81 1462330.98 37257.93 1348369.99 52083563.87
288Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Of which the amount of provision for bad debts recovered or reversed in the current period is significant: none.
(4) Accounts receivable actually written off in the current period
Unit: RMB
Items Amount of write-off
Accounts receivable actually written off 1348369.99
(5) Accounts receivable and contract assets of top five ending balances grouped by debtors
Unit: RMB
Ending balance of
bad debt provision
Ending balance of Proportion to total
for accounts
Ending balance of Ending balance of accounts ending balances of
Name of unit receivable and
accounts receivable contract assets receivables and accounts receivable
provision for
contract assets and contract assets
impairment of
contract assets
No. 1 240991961.26 240991961.26 12.52% 7470750.80
No. 2 189776476.94 189776476.94 9.86% 5883070.79
No. 3 109267429.19 109267429.19 5.68% 3387290.30
No. 4 80375446.42 80375446.42 4.18% 2491638.84
No. 5 66789600.48 66789600.48 3.47% 2070477.61
Total 687200914.29 687200914.29 35.71% 21303228.34
2. Other receivables
Unit: RMB
Items Ending balance Beginning balance
Other receivables 581416476.95 269840253.20
Total 581416476.95 269840253.20
(1) Interest receivable
None.
(2) Dividends receivable
None.
(3) Other receivables
1) Classification of other receivables by nature of amount
Unit: RMB
289Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Nature of payment Ending book balance Beginning book balance
Current accounts 576050233.62 246649557.31
Margin deposit 7326116.10 7462044.17
Borrowing and imprest of employees 1977224.13 3629450.71
Export tax refund 16656194.89
Others 1406.60 3157.74
Total 585354980.45 274400404.82
2) Disclosure by aging
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 579872866.09 268679998.14
1-2 years 1136585.98 857259.62
2-3 years 810907.48 755346.47
Above 3 years 3534620.90 4107800.59
3-4 years 31702.32 99501.60
4-5 Years 641643.48 394701.85
Above 5 years 2861275.10 3613597.14
Total 585354980.45 274400404.82
290Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
3) Disclosure by bad debt provision method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion of Book value Proportion of Book value
Amount Proportion Amount Amount Proportion Amount
provision provision
Single
provision for 16656194.89 6.07% 16656194.89
bad debts
Provision for
bad debts by 585354980.45 100% 3938503.50 0.67% 581416476.95 257744209.93 93.93% 4560151.62 1.77% 253184058.31
portfolio
Including:
Aging
9304746.831.59%3938503.5042.33%5366243.3311094652.624.04%4560151.6241.10%6534501.00
portfolio
Related party
portfolio
within the 576050233.62 98.41% 0.00% 576050233.62 246649557.31 89.89% 246649557.31
scope of the
consolidation
Total 585354980.45 100.00% 3938503.50 0.67% 581416476.95 274400404.82 100.00% 4560151.62 1.66% 269840253.20
291Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Provision for bad debts by portfolio: 3938503.5
Unit: RMB
Ending balance
Name Provision for bad
Book balance Proportion of provision
debts
Provision for bad debts by related party
portfolio within the scope of the 576050233.62
consolidation
Provision for bad debts by aging portfolio 9304746.83 3938503.50 42.33%
Total 585354980.45 3938503.50
Explanation of the basis for determining the portfolio: none.Provision for bad debts based on the general model of expected credit losses:
Unit: RMB
First stage Second stage Third stage
Expected credit loss for
Provision for bad debts Expected credit loss forExpected credit loss in the entire duration Total
the entire duration (no
the next 12 months (credit impairment
credit impairment)
occurred)
Balance as of January
946554.483613597.144560151.62
12025
Balance as of January
1 2025 in the current
period
- Transfer to Stage 3 -315761.48 315761.48
Accrual in the current
446435.4078940.37525375.77
period
Reversal in the current
1147023.891147023.89
period
Balance as of
1077228.402861275.103938503.50
December 31 2025
Changes in book balance with significant changes in loss reserves in the current period
□ Applicable□ Not applicable
4) Bad debt provision withdrawn recovered or reversed in the current period
Provision for bad debts in the current period:
Unit: RMB
Amount changed in the current period
Beginning
Category Recover or Reversal or Ending balancebalance Provision Others
reversal write-off
Provision for
4560151.62525375.771147023.893938503.50
bad debts
292Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Total 4560151.62 525375.77 1147023.89 3938503.50
5) Other receivables actually written off in the current period
None.
6) Other receivables of top five ending balances grouped by debtors
Unit: RMB
Proportion to Ending
total ending balance of
Nature of
Name of unit Ending balance Aging balances of provision
payment
other for bad
receivables debts
Huizhou YAKO Automation Current
156066115.87 Within 1 year 26.66%
Technology Co. Ltd. accounts
Current
Shenzhen Topband Battery Co. Ltd. 148250206.70 Within 1 year 25.33%
accounts
Shenzhen YAKO Automation Current
62930162.66 Within 1 year 10.75%
Technology Co. Ltd. accounts
Current
Shenzhen Topband Investment Co. Ltd. 50125844.00 Within 1 year 8.56%
accounts
Nantong Topband Lithium Battery Co. Current
38802885.07 Within 1 year 6.63%
Ltd. accounts
Total 456175214.30 77.93%
7) Included in other receivables due to centralized management of funds
None.
3. Long-term equity investment
Unit: RMB
Ending balance Beginning balance
Items Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
4319265674.294319265674.294294051396.194294051396.19
subsidiaries
Investment in
associated
18259203.9112433655.055825548.8618259695.0312433655.055826039.98
enterprises and
joint ventures
Total 4337524878.20 12433655.05 4325091223.15 4312311091.22 12433655.05 4299877436.17
(1) Investment in subsidiaries
Unit: RMB
Investee Beginning Opening Changes in increase or decrease in the current period Ending balance Ending
293Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
balance (book balance of (book value) balance of
value) provision Decrease Provision provision
for Additional in for Others for
impairme investment investme impairme impairme
nt nt nt nt
Shenzhen
Topband
1053242.1
Software 26320423.46 27373665.61
5
Technolog
y Co. Ltd.Shenzhen
Topband 1968161.8
628619526.52630587688.39
Battery 7
Co. Ltd.Shenzhen
Topband
Automatio
36577761.06274036.4936851797.55
n
Technolog
y Co. Ltd.Chongqin
g Topband
211723441.9877180.43211800622.41
Industrial
Co. Ltd.Topband
(Hong
667071500.00667071500.00
Kong)
Co. Ltd.Huizhou
Topband
1035973832.3847143.51039820975.
Electrical
26783
Technolog
y Co. Ltd.Ningbo
Topband
Intelligent 671247001.43 258655.66 671505657.09
Control
Co. Ltd.Shenzhen
Allied
Control 128582375.48 303406.38 128885781.86
System
Co. Ltd.Shenzhen
Meanston
e
10000000.0010000000.00
Intelligent
Technolog
y Co. Ltd.TOPBAN
D INDIA
195026748.97195026748.97
PRIVATE
LIMITED
294Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Shenzhen
YAKO
Automatio
515183634.34603652.01515787286.35
n
Technolog
y Co. Ltd.Shenzhen
Topband
89054806.0889054806.08
Investmen
t Co. Ltd.Shenzhen
Topband
Supply
5000000.005000000.00
Chain
Services
Co. Ltd.Shenzhen
Senxuan
10035325.0310035325.03
Technolog
y Co. Ltd.Topband
(Qingdao)
Intelligent 30000000.00 30000000.00
Control
Co. Ltd.Shenzhen
Topband 1831929.9
12371923.2914203853.22
Motor 3
Co. Ltd.Huizhou
Chiding 15000000.
5003130.39-3130.3920000000.00
Technolog 00
y Co. Ltd.Shenzhen
Topband
Digital 15259965.90 15259965.90
Energy
Co. Ltd.Shenzhen
Jingfei
1000000.001000000.00
Investmen
t Co. Ltd.
4294051396.15000000.10214278.4319265674.
Total
19001029
295Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
(2) Investment in associated enterprises and joint ventures
Unit: RMB
Changes in increase or decrease in the current period
Profits
and Declar
Opening losses ation Ending
Beginni balance Otheon Adjustm of balance
r Endingng of Additi Decre invest ent to distrib Provisi ofbalance
Investee balance provisio chanonal ase in ment other ution on for Oth provisio(book
(book n for gesinvest invest recogn compreh for impair ers n forvalue)
value) impairm inment ment ized ensive cash ment impairm
ent equitunder income divide ent
y
equity nds or
metho profits
d
I. Joint venture
II. Associated enterprises
Shenzhen
Daka -
5826058255
Optoelect 491.1
39.9848.86
ronics 2
Co. Ltd.Tai'an
Yucheng
xin
124336124336
Power
55.0555.05
Technolo
gy Co.Ltd.-
5826012433658255124336
Subtotal 491.1
39.9855.0548.8655.05
2
-
5826012433658255124336
Total 491.1
39.9855.0548.8655.05
2
4. Operating income and operating cost
Unit: RMB
Amount incurred in the current period Amount incurred in prior period
Items
Income Cost Income Cost
Main business 5977896828.41 4838570057.21 5479031123.90 4372678938.57
Other business 273234921.90 170785252.59 259345540.67 191211336.38
Total 6251131750.31 5009355309.80 5738376664.57 4563890274.95
5. Investment income
Unit: RMB
Items Amount incurred in the current period Amount incurred in prior period
296Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
Long-term equity investment income
-491.12-13252.87
accounted by the equity method
Interest income from equity investments
-182700.00
in holding period
Gains/losses on foreign exchange
4226110.88-5053368.00
derivatives
Income of wealth management products 4496930.61 3841275.24
Total 8722550.37 -1408045.63
6. Others
None.XX. Supplementary information
1. Schedule of current non-recurring profit and loss
□ Applicable □ Not applicable
Unit: RMB
Items Amount Note
Non-current assets disposal profit and loss -56127422.26
Government subsidies included in current profits and losses (except those that are
closely related to the normal business of the Company conform to national policies
34523115.94
and regulations are enjoyed according to certain standards and have a lasting impact
on the Company's profits and losses)
Profits and losses due to fair value changes arising from the financial assets and
liabilities held by the non-financial business as well as the profits and losses arising
17197213.89
from the disposal of financial assets and liabilities except for the effective hedging
business related to the normal business of the Company
Reversal of provision for impairment of accounts receivable that has been separately
133026.95
tested for impairment
Other non-operating income and expenses other than those mentioned above 1740201.72
Minus: amount affected by income tax 6447924.35
Amount affected by minority shareholders' equity (after tax) 224.85
Total -8982012.96 --
Details of other items of profits and losses that conform to the definition of non-recurring profit and loss:
□ Applicable□ Not applicable
None.Explanation of defining the non-recurring profit and loss items listed in the Explanatory Announcement No. 1
on Information Disclosure for Companies Offering Their Securities to the Public – Non-recurring Profit and
Loss as recurring profit and loss items
297Full Text of the Annual Report 2025 of Shenzhen Topband Co. Ltd.
□ Applicable□ Not applicable
2. Return on equity and earnings per share
Earnings per share
Weighted return on
Profits of the Reporting Period
average equity Basic earnings per Diluted earnings per
share (RMB/share) share (RMB/share)
Net income attributable to the ordinary shareholders of
5.34%0.300.29
the Company
Net profit attributable to the ordinary shareholders of the
5.47%0.300.30
Company after deduction of non-recurring profit and loss
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports disclosed in accordance with
International Accounting Standards and those disclosed in accordance with PRC GAAP at the same time
□ Applicable□ Not applicable
(2) Difference between the net profit and net assets in the financial reports disclosed in accordance with
both foreign accounting standards and Chinese accounting standards at the same time
□ Applicable□ Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. If the
data audited by an overseas audit institution is adjusted for differences the name of the overseas audit
institution shall be indicated
4. Others
None.
298
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