DSBJ Annual Report 2025
Suzhou Dongshan Precision Manufacturing Co. Ltd.Annual Report 2025
April 22 2026DSBJ Annual Report 2025
Annual Report 2025
Section I Important Note Table of Contents and Definitions
The Board of Directors directors and senior executives of the Company
hereby warrant that the information contained in this Annual Report is true
accurate and complete without any misrepresentation misleading statement or
material omission and agree to assume joint and several liabilities for this
Annual Report.YUAN Yonggang Chairman of the Company CFO WANG Xu and
Accounting Supervisor ZHU Deguang hereby represent that the financial
report contained in this Annual Report is true accurate and complete.All directors of the Company attended the meeting of the Board of
Directors reviewing this Report.Forward-looking statements such as those on future development plans in
this Report do not constitute substantial commitments by the Company to the
investors. Investors and relevant persons shall be sufficiently mindful of risks
and understand the differences between plans predictions and commitments.The Company has fully disclosed the potential risks associated with the
concentration of customers rapid upgrading and iteration of industrialtechnologies fluctuations in exchange rates etc. in this Report. Please see “XI.
1DSBJ Annual Report 2025Prospects for Future Development of the Company” under “Section III.Management’s Discussion and Analysis”.The Company has no plan to pay cash dividends distribute bonus shares
or convert any capital reserve to the share capital.Note:
This document is a translated version of the Chinese Annual Report 2025 ("2025 年年度报告"). In case of any
discrepancies the Annual Report 2025 published in the Chinese version shall prevail. The full Chinese Annual
Report 2025 is available at www.cninfo.com.cn.
2DSBJ Annual Report 2025
Table of Contents
Section I Important Note Table of Contents and Def... 1
Section II Company Profile and Financial Highlight....8
Section III Management’s Discussion and Analysis ... 12
Section IV Corporate Governance Environment and So.. 49
Section V Significant Matters ...................... 68
Section VI Changes in Shares and Shareholders ...... 85
Section VII Bonds .................................. 94
Section VIII Financial Report ...................... 95
3DSBJ Annual Report 2025
List of References
I. Financial statements signed and chopped by Mr. YUAN Yonggang legal representative Mr. WANG Xu
CFO and Mr. ZHU Deguang Accounting Supervisor of the Company;
II. Originals of all documents of the Company publicly disclosed during the reporting period and related
announcements;
III. Original of the Annual Report 2025 stamped with the seal and signed by the legal representative of the
Company; and
IV. Place for keeping such documents for inspection: Securities Department of the Company at Building
12# Yunhe Town Headquarters Industrial Park No. 99 East Taihu Road Wuzhong District Suzhou.
4DSBJ Annual Report 2025
Definitions
Term Means Definition
Company we or
means Suzhou Dongshan Precision Manufacturing Co. Ltd.DSBJ
one of our major business segments including research and development (R&D) manufacturing and
Electronic circuit means
sale of FPCs rigid PCBs and rigid-flexible PCBs.Optical module one of our major business segments including R&D manufacturing and sale of optical modules
means
business (including optical chips).Photoelectric one of our major business segments including R&D manufacturing and sale of touch panels and
means
display module LCMs.Precision one of our major business segments including R&D manufacturing and sale of precision metal
means
component structural parts and functional modules.Hong Kong Hong Kong Dongshan Precision Union Opoelectronic Co. Limited a wholly owned subsidiary of
means
Dongshan the Company.Hong Kong
means Hong Kong Dongshan Holding Limited a wholly owned subsidiary of the Company.Dongshan Holding
Dragon Holdings means Dragon Electronix Holdings Inc. a wholly owned subsidiary of Hong Kong Dongshan.MFLEX means Multi-Fineline Electronix Inc. a wholly owned subsidiary of Dragon Holdings.Multek Group means Multek Group (Hong Kong) Limited a wholly owned subsidiary of Hong Kong Dongshan Holding.Source Photonics means Source Photonics Holdings (Cayman) Limited a subsidiary of the Company.GMD Group means Groupe Mécanique Découpage a wholly owned subsidiary of the Company.Source Chengdu means Source Photonics (Chengdu) Co. Ltd. a wholly owned subsidiary of Source Photonics.Jiangsu Source Communication Technology Co. Ltd. a wholly owned subsidiary of Source
Source Jiangsu means
Photonics.MFLEX Suzhou means MFLEX Suzhou Co. Ltd. a wholly owned subsidiary of MFLEX.MFLEX Yancheng means MFLEX Yancheng Co. Ltd. a wholly owned subsidiary of MFLEX.Multek China means Multek China Limited a wholly owned subsidiary of Multek Group.Suzhou Dongyue means Suzhou Dongyue New Energy Technology Co. Ltd. a wholly owned subsidiary of the Company.Aranda Tooling Inc. AutoTech Production Services Inc. and Autotech Production de Mexico S. de
Aranda means
R. L. de C.V. wholly owned subsidiaries of the Company.Printed Circuit Board which forms conductive circuits with conductive materials on an insulated
substrate according to a pre-designed circuit principle through etching lamination drilling and
PCB means
other processes. It is a core fundamental electronic component providing mechanical support and
electrical interconnection for electronic components.Flexible Printed Circuit a PCB that is made with a flexible insulated film as the substrate having the
FPC means
features of flexible light thin and high-density wiring.AI Data Center an artificial intelligence data center/intelligent computing center which is a new
generation of computing power infrastructure customized for AI large model training inference and
AI DC means
high-concurrency computing. As an “AI-upgraded mode” of conventional IDCs it is also referred to
as an intelligent computing center in the industry.AI Printed Circuit Board a high-performance PCB designed for AI computing (GPU/TPU/ASIC AI
AI PCB means servers super computing). Unlike common consumer electronics PCBs it focuses on high speed
high density high reliability large current low loss and strong heat dissipation.High-Density Interconnect PCB a precision PCB with a higher wiring density and requiring a
smaller installation space achieved through laser micro vias blind vias and buried vias fine lines
HDI PCB means and thin substrates and other processes. Thanks to the core features of finer wire widths and
spacing smaller holes and higher layer utilization it is mainly used in scenarios with dense chip
pins and limited product space as a mainstream solution for smartphones AI modules optical
5DSBJ Annual Report 2025
modules and high-end server front-end panels.High Layer Count PCB a thick core structure generally with ≥16 layers developing toward 20
layers 28 layers 30 layers and even more. Being made by laminating multiple cores with copper
foil layers it has multiple power supply layers multiple grounding layers and multiple sets of high-
HLC PCB means speed differential lines to mainly meet the requirements for high-current power supply strong anti-
interference high-speed signal transmission and complex system integration in AI servers switch
backplanes GPU accelerator cards and large-scale communication equipment focusing on thick
copper high stability and high power handling capacity.a core chip transmitting modulating and detecting optical signals in an optical module. It
Optical chip means
determines key indicators like the rate distance power consumption etc. of the module.a core device for conversion between optical signals and electrical signals. It consists of optical
Optical module means transmitting and receiving control and structural parts and is mainly intended for interconnection
scenarios like data centers computing power networks communication etc.a highly integrated photoelectric core component. Generally integrating functions of optical chips
Optical engine means
optical coupling drivers etc. it is a core integration mode of high-speed optical modules.a collective term for upstream parts of optical modules including optical chips electric chips
Optical device means
passive devices and structural parts.Electro-Absorption Modulated Laser a high-performance optical chip achieving monolithic
integration of a DFB continuous wave (CW) laser and an electro-absorption modulator (EAM). The
EML means
DFB provides constant continuous light the modulator modulates high-speed signals by controlling
optical absorption through voltage and the laser operating point remains unchanged.Continuous-Wave Laser a laser outputting continuous stable uninterrupted optical signals unlike
pulsed lasers. In the field of optical communication the CW laser itself does not carry data signals
CW Laser means but provides a continuous light source at a constant power. It has to work with an external modulator
(such as an EAM lithium niobate modulator etc.) for optical strength/phase modulation to achieve
high-speed data transfer.Distributed Feedback Laser a laser with a built-in optical grating structure to achieve output at a
DFB means single stable wavelength. As a direct modulated laser (DML) it switches and modulates optical
signals by varying the injected current.Vertical-Cavity Surface-Emitting Laser a laser emitting laser light perpendicular to the chip surface.VCSEL means It can be integrated in an array for direct modulation. Thanks to its short cavity and great process
compatibility it can achieve concurrent transmission through multiple channels.Digital Signal Processor for equalization error correction clock recovery and signal shaping of
DSP means high-speed electrical signals. It is a necessary core electric chip for high-speed optical modules at
400G and above.
Co-packaged Optics an ultra-high integration solution packaging a high-speed optical engine
switch ASIC/GPU and other main chips on one substrate or middle layer. It shortens the electric
CPO means interconnection distance to millimeters and even sub-millimeters to minimize transmission loss of
high-speed electrical signals on the PCB hence achieving the extreme bandwidth density and energy
efficiency ratio.Near-Packaged Optics a board-level integration solution for placing optical engines in proximity to
switch chips/GPU chips on the same PCB. Instead of being connected to switch chips through the
NPO means long wire routing on the backplane the optical engines are placed at a distance of millimeters to
greatly shorten the electrical signal paths while keeping the optical engines and main chip physically
independent for separate maintenance.Linear Pluggable Optics a technical solution based on the conventional pluggable optical module
architecture where the DSP chip inside the module is removed or greatly simplified and a switch
ASIC chip is used to directly output linear electrical signals to drive the optical module. Retaining
LPO means
the standard pluggable shape (e.g. QSFP OSFP) without changing the existing hardware
architecture it is a light-weight and low-cost transitional solution for high-speed low-latency low-
power consumption requirements.separate architecture consisting of “continuous wave laser + silicon photonic integrated circuit”. By
decoupling the light-emitting and modulation functions to achieve high-integration low-power
CW silicon
means consumption low-cost and high-speed optical transmission it is a core technical solution supporting
photonics solution
400G/800G/1.6T optical modules CPO/NPO and other advanced architectures mainly covering
short-distance interconnection scenarios of AI data centers.
6DSBJ Annual Report 2025
Augmented Reality a technology that combines and integrates the virtual world on screen with the
AR means real world based on precise calculation of position and angle of camera images and image analysis
technology.Virtual Reality a computer-simulated 3D virtual world with scenes and objects that appear to be
VR means
real.TP for short a transparent sensing device installed at the front end of a display panel to sense
external touch positions and output coordinate signals by employing capacitance resistance optics
Touch panel means
and other principles. As a core component to achieve human-machine interaction it is widely used
in consumer electronics vehicle-mounted display industrial control equipment etc.Liquid Crystal Module a complete display module integrating a liquid crystal glass panel backlight
LCM means module driver chip circuit board structural parts etc. to directly receive electrical signals and
display images. It is a core functional unit to achieve visual output on various electronic terminals.CSRC means China Securities Regulatory Commission.SZSE means Shenzhen Stock Exchange.
7DSBJ Annual Report 2025
Section II Company Profile and Financial Highlights
I. Company Profile
Stock short name DSBJ Stock code 002384
Original stock short name (if
None
any)
Stock exchange Shenzhen Stock Exchange
Chinese name 苏州东山精密制造股份有限公司
Chinese short name 东山精密
English name (if any) Suzhou Dongshan Precision Manufacturing Co. Ltd.English short name (if any) DSBJ
Legal representative YUAN Yonggang
Registered address No. 288 Shanfeng Road Wuzhong Economic Development Zone Suzhou
Postal code of the registered
215124
address
Our registered address was at Shangwan Village Dongshan Wuzhong District Suzhou Jiangsu
when we were reorganized from Suzhou Dongshan Sheet Metal Co. Ltd. into Suzhou Dongshan
History of changes in the
Precision Manufacturing Co. Ltd. in 2007 and was changed into No. 88 Tangdong Road
registered address
Wuzhong Economic Development Zone Suzhou on December 27 2019 and changed to No.
288 Shanfeng Road Wuzhong Economic Development Zone Suzhou on July 19 2024.
Building 12# Yunhe Town Headquarters Industrial Park No. 99 East Taihu Road Wuzhong
Office address
District Suzhou
Postal code of office address 215128
Company website www.dsbj.com
Email dsbj@dsbj.com
II. Contact Person and Contact Information
Board Secretary Securities Affairs Representative
Name MAO Xiaoyan ZHOU Hao
Building 12# Yunhe Town Headquarters Building 12# Yunhe Town Headquarters
Address Industrial Park No. 99 East Taihu Road Industrial Park No. 99 East Taihu Road
Wuzhong District Suzhou Wuzhong District Suzhou
Telephone 0512-80190019 0512-80190019
Facsimile 0512-80190029 0512-80190029
Email maoxy@dsbj.com hao.zhou@dsbj.com
III. Media for Information Disclosure and Place for Keeping Annual Report
Website of the stock exchange disclosing the Company’s
Shenzhen Stock Exchange (www.szse.cn)
annual report
The Securities Times the China Securities Journal the
Media and website disclosing the Company’s annual report Shanghai Securities News the Securities Daily and
www.cninfo.com.cn
Place for keeping the Company’s annual report Securities Department of the Company
8DSBJ Annual Report 2025
IV. Changes in Registration Particulars
Unified social credit code 91320500703719732P
Since our IPO and listing we have made strategic upgrades toour businesses. Under the mission of “building a betterChanges in primary business since the listing of the Companyconnected world for tomorrow” we added electronic
(if any)
businesses including electronic circuits photoelectric display
and optical modules (including optical chips).Changes in controlling shareholder (if any) None
V. Other Related Information
Accounting firm engaged by the Company
Name of accounting firm Pan-China Certified Public Accountants LLP
No. 128 Xixi Road Lingyin Community Xihu District
Office address of accounting firm
Hangzhou City Zhejiang Province
Name of accountants signing this report ZHANG Yang and FU Zhenlong
Sponsor engaged by the Company that performs the duties of ongoing supervision over the Company during the reporting period
□ Applicable □ N/A
Name of sponsor Period of continuous
Name of sponsor Office address of sponsor
representatives supervision
32/F Bohua Plaza No. 669
Guotai Haitong Securities
Xinzha Road Jing’an XU Jianhao WU Yihao 2025.6.27-2026.12.31
Co. Ltd.District Shanghai
VI. Key Accounting Data and Financial Indicators
Did the Company need to retrospectively adjust or restate any accounting data of prior years
□ Yes□ No
Y/Y %
202520242023
change
Operating revenue (RMB) 40124858839.52 36770374347.58 9.12% 33651205468.80
Net profit attributable to shareholders of the Listed 1386066705.56 1085641847.89 27.67% 1964525269.65
Company (RMB)
Net profit attributable to shareholders of the Listed
Company after deduction of non-recurring gain or 965995066.64 898627278.48 7.50% 1614534226.22
loss (RMB)
Net cash flows from operating activities (RMB) 5307141746.99 4986018688.48 6.44% 5172419470.20
Basic earnings per share (RMB/share) 0.79 0.64 23.44% 1.15
Diluted earnings per share (RMB/share) 0.79 0.64 23.44% 1.15
Weighted average return on net assets 6.89% 5.89% 1.00% 11.38%
December 31 December 31 Y/Y % December 31
2025 2024 change 2023
Total assets (RMB) 60250537094.98 46014173064.47 30.94% 44371719028.28
Net assets attributable to shareholders of the Listed
21461147972.5918826387269.3814.00%18143026745.54
Company (RMB)
Whether the lower of the net profit before and after the deduction of non-recurring gain or loss in the past three accounting years
9DSBJ Annual Report 2025
has been negative and the most recent annual auditor’s report indicates that the Company’s ability to continue as a going concern
is uncertain
□ Yes□ No
Whether the lower of the audited total profit and the net profit before and after the deduction of non-recurring gain or loss of the
Company during the reporting period is negative
□ Yes□ No
VII. Differences in Accounting Data under the Chinese Accounting Standards for Business
Enterprises (the “CASBEs”) and Overseas Accounting Standards
1. Differences in net profit and net assets disclosed in the financial report prepared under the
International Financial Reporting Standards (IFRS) and the CASBEs
□ Applicable□ N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under the
IFRS and the CASBEs.
2. Differences in net profit and net assets disclosed in the financial report prepared under overseas
accounting standards and the CASBEs
□ Applicable□ N/A
There was no difference in net profit and net assets disclosed in the financial report for the reporting period prepared under
overseas accounting standards and the CASBEs.VIII. Key Financial Indicators by Quarter
In RMB
First quarter Second quarter Third quarter Fourth quarter
Operating revenue 8602240027.91 8352923870.98 10115463490.86 13054231449.77
Net profit attributable to shareholders of the 455862422.17 302143558.44 465271630.98 162789093.97
Listed Company
Net profit attributable to shareholders of the
Listed Company after deduction of non- 396749250.19 260050693.12 414311224.99 -105116101.66
recurring gain or loss
Net cash flows from operating activities 1365406591.51 1134711429.77 445723379.86 2361300345.85
Whether there’s any material difference between the financial metrics or aggregate amounts thereof set out above and the
corresponding financial metrics set out in any quarterly report or semi-annual report of the Company already disclosed
□ Yes□ No
IX. Items and Amounts of Non-recurring Gains or Losses
□ Applicable □ N/A
In RMB
Item 2025 2024 2023 Remark
Gain or loss on disposal of non-current assets (including -384012866.89 -268961359.34 -26367874.21
allowance for impairment of assets that has been written
10DSBJ Annual Report 2025
off)
Government grants recognized in profit or loss
(excluding the government grants that are closely
related to the business of the Company conform to the 331688417.02 483141623.05 249253139.50
applicable policies of the country are provided in
accordance with the established standards and
continuously affect the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets
and financial liabilities held by non-financial entities
and gain or loss on disposal of financial assets and 69600586.93 -7601380.66 14283973.00
financial liabilities except for effective hedges held in
the ordinary course of business
Reversal of allowance for impairment loss on accounts
1250000.00
receivable assessed individually
Other non-operating revenues and expenses -41631510.60 -3547316.95 -398583.47
Investment
income
arising from
business
Other gain or loss within the meaning of non-recurring 470697770.08 combination134812863.84
gain or loss s involving
entities not
under
common
control
Less: Effect on income tax 23035787.38 13516787.94 22244723.86
Effect on minority interests (exclusive of tax) 3234970.24 2500208.75 597751.37
Total 420071638.92 187014569.41 349991043.43 --
Other items of gain or loss within the meaning of non-recurring gain or loss:
□ Applicable□ N/A
We do not have any other item of gain or loss within the meaning of non-recurring gains or losses.Classification of any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Gain or Loss as recurring gain or loss:
□ Applicable□ N/A
We have not classified any item of non-recurring gain or loss defined by the Explanatory Announcement No. 1 on Information
Disclosure by Companies Publicly Offering Securities – Non-recurring Gain or Loss as recurring gain or loss.
11DSBJ Annual Report 2025
Section III Management’s Discussion and Analysis
I. Situations of Our Primary Business during the Reporting Period
We are an innovation-driven company focusing on the field of intelligent manufacturing and having a global perspective and
layout. Under the mission of “building a better connected world for tomorrow” and the vision of becoming a globally leading
solution provider for intelligent interconnection we are dedicated to providing advanced products and solutions for global leading
technology companies hence achieving interconnection among human beings equipment and infrastructure. Our main business
covers the global design production and sale of electronic circuits optical modules (including optical chips) precision
components and photoelectric display modules; our products are widely applied in the fields of consumer electronics vehicles
data centers communication equipment industrial control equipment etc. By providing all-round and one-stop comprehensive
services and continuously enhancing customer loyalty for cooperation we have established long-term stable strategic cooperation
relationships with global leading enterprises.
(1) Our main products and their applications:
Product Type Product features Mainapplication
The flexible PCB as a printed circuit board uses flexible materials like polyimide or
polyester films as the substrate and implements electric interconnection through a
copper foil layer. Thanks to its unique adaptability it can be bent folded and
twisted repeatedly without affecting the stability of its electric performance. This
flexible characteristic allows flexible PCBs to be seamlessly installed in narrow or
irregular spaces which not only reduces the weight but also achieves greater
freedom of design. With these characteristics flexible PCBs have become an ideal
solution for compact devices and application scenarios requiring portability and
durability.Our flexible PCB product series cover single-layer flexible PCBs multi-layer
flexible PCBs and FPCA which can directly integrate resistors capacitors
inductors and various functional chips onto the circuit. These products are specially
designed to meet the performance requirements of terminal products in various
industries. We can reduce the thickness of flexible PCBs to 0.05 mm at the Smartphones
Flexible PCB minimum; the optimization for ultra-thin and lightweight products helps to provide electric vehicle
compact solutions balancing space efficiency and performance. To ensure durability BMS systems
and reliability we use advanced materials to achieve high-temperature resistance and etc.Electronic keep signal integrity under harsh environments.circuit
Flexible PCBs are widely used in the fields of edge AI devices consumer
electronics and vehicle electronics. In edge AI devices our flexible PCBs are
playing a more and more important role in creating lighter and more advanced
products supporting high-performance functions within a smaller size. Our flexible
PCBs are used in the AI smartphones wearable devices and other smart devices of
multiple globally leading brands. In the vehicle field our flexible PCBs allow
complex wiring within a restricted space hence supporting key vehicle systems like
the battery management systems vehicle-mounted information and entertainment
systems etc. Keeping pace with the constant development of various industries our
flexible PCBs are always at the technology forefront to facilitate the development of
next generation AI devices that are smarter more compact and more effective.Rigid PCBs are printed circuit boards made with rigid substrates that cannot be bent AI servers 5G
or twisted. Our rigid PCB products cover single-layer PCBs multi-layer PCBs and base stations
HDI PCBs which can meet the demands of customers from various industries intelligent
Rigid PCB including AI computing consumer electronics etc. vehicles
AR&VR
Single-layer and double-layer PCBs are designed with a simple structure in which a devices
rigid substrate is used to separate single-layer or double-layer copper foil wiring. wearable
12DSBJ Annual Report 2025
Product Type Product features Mainapplication
Thanks to its cost effectiveness this solution is widely used in electronic systems devices
with intermediate complexity. Multi-layer PCBs containing multiple layers of robots etc.conductive copper separated by insulating materials help to achieve a higher density
of elements and greater electric performance. HDI PCB products help to achieve a
higher wiring density and smaller elements by using advanced through-hole
structures (e.g. blind vias and buried vias) hence further improving integration.In particular in applications with restricted spaces HLC PCBs and HDI PCBs can
be used to achieve a compact layout better signal performance and greater
reliability. Therefore these products are especially suitable for AI computing
infrastructure where high-frequency and high-speed data transfer plays an important
role. Our ELIC technology as a leading technology in the HDI PCB field can
connect any layers to achieve ultra-high-density wiring in extremely compact
designs. Our multi-layer PCBs and HDI PCBs use M8/9 materials with ultra-low loss
to achieve the transmission rate of up to 224Gbps which can meet the high
requirements of GPU AI accelerator cards AI servers and data center switches.Relying on our in-depth technology expertise in HLC PCBs and HDI PCBs we can
ensure high-speed low-loss interconnection with our products under harsh
environments. To meet the heat dissipation requirements of high-power applications
the embedded copper block buried copper column laser copper filling and other
technologies are employed to effectively improve the heat dissipation efficiency and
reliability of PCBs with enhanced heat dissipation.Rigid-flexible PCBs consisting of multiple rigid wiring layers and flexible wiring AI servers
boards achieve connection using electroplating through holes hence properly data center
matching with the structural design of compact and complex electronic products. switches
They combine the durability of rigid PCBs with the adaptability of flexible PCBs to intelligent
balance mechanical strength and design flexibility. The flexible portion allows vehicles
movement or folding while the rigid portion provides structural support and space smartphones
Rigid-flexible PCB for installed components. and tablet
This unique combination reduces the demands for connectors and wires simplifies computers
assembly efforts and improves reliability by eliminating potential faulty points. Our AR&VR
rigid-flexible PCB products are made with high-performance materials to ensure the devices CT
thermal stability and reliability under harsh environments. Therefore our products scanners
are especially suitable for industries like medical devices and vehicle systems industrial
which require devices having high performance within a small space. devicesrobots etc.On the basis of the subsidiary Source Photonics we are developing an optical chip
product system with high-speed EML chips at the core with the rate covering the
whole matrix from 2.5G to 200G; with whole-process independent development for
IDM and large-scale mass production our products have advantages of high
bandwidth low power consumption low transmission loss high extinction ratio
Optical outstanding yield rate in mass production large temperature range and high
module Optical chip reliability. Our main product is 100G/200G PAM4 EML high-end chips; given the Optical modulekey performance indicators and mass production capacities reaching the international
top level these products are fully suitable for optical module applications at 800G
1.6T and even higher rates. Meanwhile we are making forward-looking layout of
technologies like 400G EML and high-power CW light sources to meet the strict
application requirements in high-end scenarios of AI data centers and ultra-
computing power high-speed interconnection.
13DSBJ Annual Report 2025
Product Type Product features Mainapplication
Driven by the rapid development of AI computing and applications our data center
optical modules are specially designed to meet the requirements of AI infrastructure.We focus on 400G optical modules with QSFP-DD QSFP112 and OSFP packages
and OSFP and QSFP-DD 800G optical modules with the DSP LPO and LRO
architecture. Our 1.6T optical modules with multiple technology options including
EML silicon photonics and InP PIC achieve ultra-high-speed and low-latency
connections through OSFP and other compact packages. Our independently
developed 100G PAM4 EML chips have been used in 400G and 800G optical
modules by over ten million; the 200G PAM4 EML chips have reached mass
production to support 1.6T optical modules.Optical modules for
data centers Meanwhile our 400G PAM4 EML chips under development will empower 3.2T
Data centers
optical modules. In addition we are promoting the co-packaged optics technology etc.which directly integrates optical engines and switch chips in one package to greatly
shorten the signal path and reduce latency making it an ideal option for AI training
and inference.Our data center products are made with low-loss optical materials stable signal
integrity design and adaptive power management technologies to achieve stable
transmission and higher energy efficiency. These innovations not only reduce the
power consumption but also enhance cost advantages and durability empowering
our solutions to meet the high requirements of AI data centers on the rate and
bandwidth.Our telecommunication products mainly include products for optical transmission
wireless transmission and broadband transmission.Our optical transmission products being designed to meet the increasing
requirements of high-speed data transfer for metropolitan area networks access
networks and long-distance networks have the characteristics of high reliability and
long-distance transmission. These products support multiple size specifications and
data rates including SFP SFP+ SFP28 and QSFP-DD and have the transmission
capabilities covering 1G to 800Gb/s.Data centers
Our wireless transmission modules operate on the physical layer of wireless enterprise
Telecommunication networks to achieve accurate electrical - optical signal conversion and optical - dedicated line
optical modules electrical signal conversion supporting high-speed data interaction between BBU businessesAAU and DU hence providing stable and reliable connection for fronthaul core networks
midhaul and backhaul transmission. These modules are fully compatible with 5G base stations
and 5.5G network deployment. etc.Our broadband products are based on the PON architecture which is a point-to-
multipoint fiber-optical system connecting OLT to ONU/ONT through a passive
optical splitter with no power supply equipment on site. The products covering 10G
PON and 25G/50G PON and meeting the F5G and F5G-A standards are widely
deployed in FTTH enterprise broadband and campus networks to provide high-
speed data services for end users. The solutions equipped with our independently
developed 50G laser chips have been deployed in commercial 50G-PON projects to
empower high-speed broadband and AI data centers.We provide various automotive structural parts and functional module products to
meet the functional requirements of vehicles under continuous upgrade. Our core
products cover battery housings water-cooling boards EV motor housings etc.which play a key role in improving the vehicle dynamic performance operation
safety and energy utilization efficiency.Precision Automotive parts Battery housing Intelligentcomponent Battery housings are integral structural parts made of light-weight high-strength vehicles
aluminum alloy to contain battery modules and internal core elements providing
comprehensive protection for the battery system against external shocks. The
housings are equipped with an integral thermal management channel which can
greatly improve the heat dissipation efficiency; meanwhile the lower battery housing
is integrated with the vehicle chassis to lower the center of gravity of the entire
vehicle hence improving driving stability. We employ 8200-ton integral stamping
14DSBJ Annual Report 2025
Product Type Product features Mainapplication
and forming high-precision laser welding and other advanced technologies with a
supporting automatic CCD visual detection system to ensure the size accuracy and
consistent quality of products. Thanks to such manufacturing technologies our
products have outstanding safety and reliability to meet the requirements of the
power system for new energy vehicles.Water-cooling board
The water-cooling board is a liquid heat exchanger that rapidly takes away the heat
generated from the operation of high-power electronic components; it can achieve a
cooling system with a compact structure low noise during operation and high
reliability. Our ECU water-cooling boards can provide accurate temperature control
for the vehicle-mounted controllers of the powertrain vehicle safety and vehicle-
mounted information and entertainment system of new energy vehicles. The
products being manufactured through precision stamping and forming full-
automatic laser welding copper-aluminum reflow welding and other processes can
be closely integrated with PCB components to ensure the optimal operating
temperature for core elements under complex conditions hence achieving stable
performance output. Meanwhile we have the mass manufacturing capabilities for
traction drive motor cooling boards power battery pack cooling boards and SiC
inverter water-cooling boards.EV motor housing
EV motor housings are external structural protection housings for traction motors
and controllers which can effectively protect against external shocks and reduce the
loss caused by operation vibration. Reaching the protection level of IP54 and above
these products can meet the reliability requirements for long-time operation. The
housings are made through high-pressure vacuum casting and forming for which the
high-precision size tolerance of key holes are guaranteed with the cylinder liner
casting-in technology; meanwhile the full-automatic friction welding process is
employed to create a high-strength and sealed connection structure to achieve
outstanding anti-vibration capabilities and thermal cycling resistance.In addition GMD Group’s technology expertise in the body in white chassis
structure thermal management system and interior and exterior trim parts further
enriches our product matrix and improves our comprehensive capabilities for
providing one-stop integrated solutions for global vehicle manufacturers. Relying on
the manufacturing experience and technology accumulation built for a long period of
time in the field of vehicle precision structural parts we can meet the strict quality
management and control requirements of mainstream vehicle manufacturers and are
qualified suppliers for multiple global top manufacturers of conventional and new
energy vehicles.We can provide products of customized high-performance communication parts to
meet the requirements in the construction and upgrade of global communication
networks. Our core products cover antennas for mobile communication and wave
filters for mobile communication which can optimize the deployment adaptability
inside and outside base stations and improve the stability in signal transmission.Antennas for mobile communication
Components for Antennas for mobile communication as core radio frequency components of base
communication stations mainly implement signal reception and transmission between a base station
Base stations
devices and a mobile terminal to meet the requirements for the construction of a new
for mobile
generation of communication networks. Being made with technologies like low communication
passive inter-modulation high-power handling and wide-frequency coverage and
designed with high-gain low-transmission loss and low-wind resistance structure
these products can achieve performance indicators like phase shifter insertion loss of
< 0.7dB antenna gain ≥ 17.5dBi and passive inter-modulation better than - 153dBc
so as to effectively improve the operation efficiency of mobile communication
networks and ensure the high-quality signal reception and transmission.Wave filters for mobile communication
15DSBJ Annual Report 2025
Product Type Product features Mainapplication
Wave filters for mobile communication as core frequency-selecting components of
base stations can screen radio frequency signals of the specified frequency band and
filter out noise wave interference hence ensuring the purity of communication links
and operation stability of devices. These products being made with low passive
inter-modulation design and high-power metal-ceramic structure can achieve the
passive inter-modulation indicator better than -155dBc to achieve stable operation
performance under various working conditions. Meanwhile the volume of individual
products is reduced by 50% which effectively improves the space utilization rate for
the internal layout of base stations and convenience in device integration.Our communication parts are developed and designed with high reliability wide
adaptability and high performance in mind to meet the requirements of the technical
standards and applications for mainstream mobile communication networks around
the world.Touch panels are widely used in consumer electronics (tablet computers laptop Laptop
computers all-in-one computers) industrial control medical and vehicle (central computers
Touch panel control display copilot display and entertainment display for back rows)
industrial
applications; they can achieve the touch precision of ±1.0 mm and response time less control
than 30.0 ms. Thanks to the rapid response and adaptability for various complex equipment
environments they can be used in multiple industries. medicaldevices etc.Display modules (LCD&OLED) can be used to build “integrated solutions” for in-
depth combination of cutting-edge display technologies with high-reliability
structural design hence achieving breakthroughs in both performance and stability.Photoelectric
display Display modules are widely used in consumer electronics (mobile phones laptop
module computers all-in-one computers) industrial control medical and vehicle (dashboards central control display copilot display entertainment display for back rows
LCD and OLED electronic rear-view mirrors and HUD). They can achieve the brightness of up to
Consumer
modules 1000.0 nit to ensure clear visibility even under strong light and can achieve the
electronics
wide gamut of over 96.0% NTSC for consumer modules. intelligentvehicles etc.The display modules are integrated with devices seamlessly through the full-
lamination process to enhance durability and improve the optical clarity.Thanks to our automatic manufacturing procedures and strong supply chain we can
provide customized display modules with guaranteed high throughput consistent
quality and reliable delivery hence effectively meeting the requirements of global
customers from various industries.
16DSBJ Annual Report 2025
(II) Operating modes
We manufacture main products based on market demands and adopt the production model that determines production
according to sales under which we develop production plans and deliver products by taking into account the purchase orders
placed by customers the product quantities demanded by the customers as well as our production capacity and supply of raw
materials.
1. Purchase mode
Our main businesses covering electronic circuits optical modules (including optical chips) precision components
photoelectric display modules etc. require a wide variety of raw materials. Based on the purchase scale our main raw materials
include electronic components connectors display devices copper clad laminates cast parts wafers aluminum parts etc. We
make purchase from corresponding suppliers with reference to orders and production plans based on our information about the
lead time and quality of suppliers. Given that our products are mostly customized suppliers should be qualified by us or our
customers and we have to obtain the consent and certification from customers for new alternative suppliers. Generally we request
order-based prompt supply from suppliers instead of keeping a large number of surplus raw materials and parts; under certain
circumstances we may also require suppliers to establish a local warehouse to shorten the lead time of raw materials and reduce
our inventory. We purchase a wide variety of raw materials in large quantities. Our Group Purchase Management Center is
responsible for coordinating purchase activities within the group in which we promote green purchase and give full play to the
advantages of large-volume purchase and synergy effects of raw materials. We have established long-lasting stable and mutually
beneficial strategic cooperation relationships with core suppliers to ensure a stable supply chain and reduce purchase costs.
2. Production mode
We manufacture products based on market demands and adopt the production model that determines production according
to sales under which we develop production plans and promptly deliver products to customers after passing inspection by taking
into account the purchase orders placed by customers the product quantities demanded by the customers under such purchase
orders as well as our production capacity and supply of raw materials. We implement the ideas of green development and low-
carbon operation and we always give priority to development coordinating a new generation of information technologies with
manufacturing technologies taking intelligent manufacturing as the main direction for the integration of informatization and
industrialization and taking active measures to promote the construction of intelligent factories and digital workshops. On one
hand we make great efforts for automatic production and construction to improve production efficiency; on the other hand we
implement information-based production operation and management to achieve real-time management and control over the whole
production operation process hence increasing the product yield rates improving capacity utilization rate ensuring prompt
delivery of orders and ensuring the quality of products and services in compliance with normative standards and customer
requirements.
3. Sales mode
We sell directly to corporate customers. After we pass customers’ system certification and are admitted to their supplier
system customers will directly place orders to us. We implement the strategy of group-based coordinated sales and build
dedicated key-account service teams for various business segments to promptly respond to requests from customers. Focusing on
basic core devices in the field of intelligent interconnection we have built a rich product matrix after years of development.Thanks to the suitability of our products for a variety of industries and the strong synergy effects we achieved for R&D
technology supply chain product market etc. in different business segments the multi-product synergy advantages allow us to
provide customers with all-round one-stop comprehensive product solutions with leading technologies to meet customization
requests of customers to the largest extent.
17DSBJ Annual Report 2025
4. R&D mode
We have built an efficient R&D system focusing on independent R&D of core technologies and being oriented to meeting
the innovation needs of customers and we keep close pace with the strategic layout of industry leading customers and actively
participate in new product development by customers hence supporting customers in product iteration and function innovation.Meanwhile we strive to build platform-based R&D institutions and platform-based core technologies pay close attention to the
development dynamics of new technologies and new processes in the industry and conduct continuous and effective R&D
investment and study of cutting-edge technologies to maintain the leading position of the Company in technologies and processes
hence actively promoting the implementation update and iteration of downstream terminal products of the industry. With
importance attached to the education of technical talents we provide the talent support for the development of new technologies
and new products by measures of “talent education talent attraction and talent retention” and take active measures to coordinate
R&D resources and encourage cross-department joint development.In addition to the transformation and upgrade of our own technologies in our R&D activities we also pay attention to in-
depth cooperation with customers and the study of future industry trends. By properly combining flexibility coordination and
innovation we have built a R&D ecology system featuring sustainable development and high adaptability to meet the constantly
changing customer needs and market environments and promote coordinated innovation throughout the industry chain.II. Situations of Our Industry during the Reporting Period
We are primarily engaged in the R&D manufacturing and sale of electronic circuits optical modules (including optical
chips) precision components photoelectric display modules etc.(I) Development of the industry
1. Electronic circuit industry
Printed circuit boards (PCBs) as core basic components of electronic devices play a critical role in accurate electric
interconnection low-loss signal transfer and mechanical support and its performance directly determines the operating efficiency
and stability of electronic devices. In terms of the fields of application PCBs are widely used in core scenarios like consumer
electronics vehicles data centers communication etc. making PCBs an indispensable basic link for the electronic information
industry.Thanks to the explosive demands of AI and high-speed network infrastructure the global PCB market experienced rapid
growth. According to Prismark in 2025 the global PCB market was estimated to be USD 85.2 billion a year-on-year growth of
about 16% which exceeded previous expectation especially the growth of AI-related high layer count (HLC) PCBs and high-
density interconnect (HDI) PCBs. In the long run driven by multiple factors including AI infrastructure construction
restructuring of the global supply chain terminal intelligentization etc. the growth dynamics of the industry will be continuously
released. Prismark predicted that the global PCB market size would reach USD 95.8 billion by 2026 a year-on-year growth by
13%; the annual compound growth rate of the industry value would be about 7% from 2026 to 2029 and may exceed USD 116.0
billion by 2029. From 2025 to 2030 the fastest-growing fields will still be HLC PCBs (over 18 layers) HDI PCBs etc. In terms of
fields in 2025 the global market size of servers and memory was USD 413.0 billion a large increase by 42% year on year; it’s
expected that the annual compound growth rate would be 6% from 2026 to 2030 and the market size would reach USD 630.0
billion by 2030. Correspondingly the output value of servers and memory in 2025 was about USD 16.0 billion a year-on-year
18DSBJ Annual Report 2025
growth by 46%; the annual compound growth rate would be 13% from 2025 to 2029. The figures above show that AI-driven data
communication infrastructure is becoming the core engine to drive the upgrade and size expansion of the PCB industry.From the perspective of enterprise development the structural transformation of the PCB industry is creating relatively
certain development opportunities for us. On one hand in the field of consumer electronics the innovation for products like AI
terminals foldable screens and other products leads to continuously increasing quantity of FPC in use and value of individual
devices. Relying on the production capacity and technologies of MFLEX a top 2 manufacturer on the world we can provide a
stable cash flow and profit support for conventional businesses. On the other hand in the field of AI computing hardware the
growth center of the industry is transforming to HLC PCBs and HDI PCBs more and more quickly. Thanks to Multek’s
professional manufacturing capabilities of ultra-HLC PCBs with 78 or more layers and 7-stage thick HDI PCBs together with the
decisive investment of over USD 1.0 billion for expansion of high-end production capacity we can properly take the historical
development opportunities that the value of PCBs for AI servers is obviously greater than conventional products. The PCB
industry is experiencing a fundamental change under the two major trends of high-end consumer electronics and AI infrastructure
which opens a significant window for us to develop from a leading FPC manufacturer to a supplier of all high-end PCB products.
2. Optical module industry
The optical module technology employing the mechanism of electrical - optical - electrical signal conversion has developed
generational advantages in terms of the bandwidth capacity transfer distance anti-interference performance energy efficiency and
density etc. on the basis of the transfer characteristics of optical fiber which systematically solves the core transmission challenge
of large-traffic interaction and interconnection of wide area networks hence becoming a key technology supporting the upgrade of
communication networks and empowering computing infrastructure. The continuously increasing downstream bandwidth demands
lead to the iteration and upgrade of optical chip rates from 2.5G 10G 25G and 50G to 100G and 200G which directly determines
the transfer rate and application scenario positioning of optical modules.On the background of the continuously increasing global investment in computing power AI has become the core growth
engine for the market of optical module data communication. Lightcounting predicted that the global market size of data
communication optical modules would reach USD 22.8 billion by 2026 where the total market size of 800G and 1.6T optical
modules would reach USD 14.6 billion in 2026 accounting for about 64% of the total market size of all data communication
optical modules. Meanwhile it’s predicted that the global market size of telecommunication optical modules would be USD 5.3
billion by 2026. Generally speaking thanks to the rapid development of AI data centers the data communication market is
growing at an obviously faster rate than the conventional telecommunication market hence becoming the core driver for the
growth of the optical module industry. Lightcounting predicted that in the next three years high-speed optical modules of 800G
1.6T etc. would dominate the market demands while the quantity of 3.2T modules would increase gradually from 2028. It is
probable that the annual sales volume of optical interconnects used in AI clusters would reach USD 100.0 billion by 2030.As for the Company Source Photonics’ core competitive advantages will be more and more prominent under the trend of
rapid industry development. Source as one of the few global enterprises having an integral layout of optical modules + optical
chips employs the IDM mode to maintain independence at core stages; it is one of the few enterprises with mass production
capacities of 100G and 200G optical chips in China. Under the industry environment of supply shortage for high-end optical chips
and high dependence on others Source has prominent advantages in production capacity allocation and delivery response thanks
to its capabilities above. Meanwhile we are making active efforts to develop single-wavelength 400G optical chips hence
building a technology basis for the next generation of high-speed product upgrade. In terms of production capacity expansion
Source is accelerating the pace of building optical chip and optical module production capacities to effectively match with the pace
19DSBJ Annual Report 2025
of increasing quantity of downstream customers and the demand growth trend of the industry. In addition our comprehensive
advantages in key account services supply chain management delivery guarantee customer qualifications etc. can also
effectively support the further customer development for Source.
3. Precision component industry
The precision component industry is an industry where precision processing fast forming automatic control and other
relevant technologies are employed to design manufacture process assemble and sell structural parts functional modules and
complete devices with a complex structure and high precision. With the obvious characteristics of technology intensity high
precision requirements high-efficiency production high automation strong non-standard customization capabilities etc. this
industry has strict requirements on product consistency reliability and lead time. In terms of the industry chain structure the
upstream industry chain of the precision component industry is the supply of raw materials and manufacturing equipment mainly
including raw materials like metal materials and production equipment like cutting and forming equipment processing equipment
test and inspection equipment etc. The midstream of the industry chain is the precision processing and manufacturing stages that
is the processing of high-precision parts and functional modules and the assembly of complete devices by manufacturers. The
downstream of the industry chain is the application field of precision component products mainly including vehicles
communication devices etc. Given the constant upgrade of the downstream manufacturing industry and the faster and faster
emerging fields like 5G communication AI new energy vehicles etc. the global application demands for precision component
products are increasing hence creating a broad growth space for the development of the global precision component industry.We have profound technology expertise and core competitiveness in the field of precision components and have built a
mature and standard process system covering the stages of precision metal processing module-based integration precision
assembly etc. which can meet the strict requirements of vehicle customers for structural parts with high precision high
consistency and high reliability. In terms of production capacity and layout we have built a global supply network including
production bases located in Mexico the United States and Suzhou and Yancheng in China; moreover we have successfully
entered the European market through the acquisition of GMD Group in France which further increases our market shares in the
field of global automotive parts and improves our capabilities of local services. All our customers of the precision component
business are domestic and foreign leading automotive manufacturers; this outstanding customer structure not only provides stable
orders for us but also continuously promotes the introduction of new products and technology iteration. Generally speaking we
expect that our precision component business will achieve continuous and stable growth thanks to the growth period of the
industry.
4. Photoelectric display industry
Photoelectric display products as core devices for converting electrical signals into visual images are core parts for
electronic devices to present visual content and implement information and sensing interaction. Under the background of the
extensive spread of consumer electronics development of Internet communication technologies and accelerated penetration of AI
terminals the demands for information interaction are continuously increasing where photoelectric display products as an
important carrier are widely used in fields like vehicles consumer electronics etc. Driven by the technological innovation
application and extension and the increasing penetration of smart devices the global photoelectric display industry has been
developing stably where the mainstream technology routes mainly include LCD and OLED.Our photoelectric display products with touch panels and LCMs at the core are widely used in the fields of vehicles and
consumer electronics. In the field of vehicles the continuously increasing penetration of intelligent cockpits leads to the evolution
towards vehicle-mounted displays featuring larger sizes multiple displays and high definition and the vehicle-mounted display
20DSBJ Annual Report 2025
devices are upgrading from conventional information presentation carriers to the core medium for human-vehicle interaction
hence achieving human-vehicle interconnection. Relying on our technology accumulation and mass production capacity for touch
panels and display modules we can provide customers with integral display solutions and have been admitted to the supply chain
of multiple leading vehicle manufacturers. In the field of consumer electronics given the higher requirements of AI terminal
devices on display interaction touch panels and LCMs as the core components for human-machine interface are experiencing
stably increasing demands. Thanks to our large-scale production capacities and stable delivery capabilities we can promptly
respond to the demands of downstream brand customers. In general we expect continuous and stable growth of our photoelectric
display business driven by the upgrade of vehicle-mounted displays and interaction innovation of consumer electronics.(II) Main laws regulations and policies
Title of policy Authority Time Relevant policy content
Printed Circuit Board Industry
Specification Conditions Build quantitative standards for the PCB industry in aspects
Interim Measures for the Ministry of Industry of production capacity layout production scale process
Administration of the and Information 2019 technologies intelligent manufacturing green
Announcement on the Printed Technology manufacturing etc. to regulate the development of high-
Circuit Board Industry frequency high-speed and high-density PCBs for AI
Specification application
Action Plan for Developing Focus on the development of high-frequency high-speed
the Industry of Basic Ministry of Industryand Information 2021 high-layer and high-density printed circuit boards andElectronic Components Technology substrates for package of integrated circuits to support the(2021–2023) efforts for AI computing data centers servers etc.Statistical Classification of
Digital Economy and Its Core National Bureau of 2021 List printed circuit boards as a core industry of digital
Industries (2021) Statistics economy and AI PCBs as core products of digital economy
Catalogue of Industries for National Development Include core AI PCBs like high-density interconnect PCBs
Encouraging Foreign and Reform 2022 multi-layer flexible PCBs rigid-flexible printed circuit
Investment (2022 Edition) Commission Ministry boards and package carrier boards into the catalogue ofof Commerce industries encouraging foreign investment
Action Plan for Stable Growth
of the Electronic Information Ministry of Industry Support the upgrade of servers and advanced computing
Manufacturing Industry 2023– and Information 2023 terminals and increase the PCB demands for AI servers and
2024 Technology computing devices
Guidance Catalogue for National Development Clearly list high-density high-frequency and high-speed
Industrial Structure and Reform 2023 PCBs and package carrier boards as an encouraged industry
Adjustment (2024 Edition) Commission covering AI PCB products
Action Plan for Stable Growth Ministry of Industry
of the Electronic Information and Information Promote the layout of major projects for advanced
Manufacturing Industry 2025– Technology State 2025 computing servers etc. and promote the upgrade to high-
2026 Administration for end intelligent and green AI PCBsMarket Regulation
Action Plan for the
Coordinated Development of Ministry of Industry
Promote the coordinated construction of gigabit optical
and Information 2021 networks and 5G hence driving the demands of high-speed“Dual Gigabit” Networks Technology optical modules optical devices and optical transmission(2021–2023) devices
10 ministries including
“Sailing” Action Plan for 5G the Ministry of Industry Support the implementation of 5G applications increasing
Applications (2021–2023) and Information 2021 the market demands for optical communication networks
Technology high-speed optical modules and optical access devices
Plan for the Overall Layout of Central Committee of Optimize the layout of computing infrastructure promote the
Digital China the Chinese Communist 2023 coordination construction of optical communication
21DSBJ Annual Report 2025
Party State Council networks and nationally integrated computing networks
Implementation Opinions on
Deepening the ‘‘Eastern Data
and Western Computing’’ 5 ministries including Accelerate the efforts of building a national integrated
Project and Accelerating the the National 2023 computing network directly increasing the demands for
Construction of a National Development and 400G/800G high-speed optical modules and full-optical
Integrated Computing Reform Commission networks
Network
National Development
Work Priorities for Digital and Reform Properly make forward-looking layout of digital
Economy 2024 Commission National 2024 infrastructure to promote the coordinated development of
Data Administration optical communication networks and computing networks
National Development
and Reform
Commission National Promote the technology application of 400G/800G high-Guidelines for Building speed full-optical connection supporting high-efficient
National Data Infrastructure Data Administration 2025Ministry of Industry transmission of computing power and upgrade of optical
and Information communication
Technology
Ministry of Industry Achieve breakthroughs in high-speed interconnection busesAction Plan for Computing and Information 2025 and high-speed lossless network technologies to promote thePower Interconnection Technology in-depth integration of optical communication andcomputing networks
Notice on Pilot General Office of the
Implementation of 10-Gigabit Ministry of Industry
Promote efforts for building 10-gigabit optical networks
Optical Networks and Information
2025 driving the large-scale application of high-speed optical
Technology access modules and optical communication devicesAction for “Millisecond General Office of the Promote the 400Gbps deployment for metropolitan areaComputing” for Metropolitan Ministry of Industry
Areas and Information
2025 computing centers increasing the demands for high-speed
Technology optical modules and full-optical cross devices
III. Core Competencies of DSBJ
(I) Advantage in strategy: AI end-to-end layout to take early opportunities in a high-growth racetrack
Our strategy focuses on an end-to-end AI layout from the edge side to data centers. As an innovation-driven enterprise we
are dedicated to providing global top technology companies with advanced products and solutions by accurately taking the growth
opportunities for global high-speed interconnection and data transfer. Relying on the clear strategic positioning we have
established a leading position in multiple fields and industries: we are the top 3 global PCB supplier the top 2 global FPC supplier
and the top 1 global edge AI device PCB supplier; by acquiring Source Photonics we have emerged as a global core supplier ofoptical modules and built a layout of AI computing core hardware products featuring “optical modules (including optical chips) +AI PCB” making us the only enterprise having the whole-process capabilities covering PCBs optical chips and optical modules
from R&D designing and mass production on the world fully covering all scenario requirements from edge AI devices to large-
scale data centers hence establishing our long-lasting competitive advantages. By providing PCBs and high-speed optical module
products for AI DC we can help customers achieve data transfer with lower latency higher transmission rate and better energy
efficiency; meanwhile we engage in in-depth design cooperation with customers to shorten product development cycles and
improve system performance of terminal products. In general relying on the end-to-end whole-process capabilities in AI and our
coordinated and integrated technology system we can fully take the opportunities of business growth driven by AI for the future
and make use of the forward-looking layout of advanced processes and production capacities under the background of accelerated
AI penetration on the edge side and data center to continuously improve market shares.
22DSBJ Annual Report 2025
(II) Advantage in products: Achieve horizontal synergy among multiple product categories and leading vertical integration
making optical modules and optical chips as the core highlights
By combining external acquisition with endogenous growth we have built a comprehensive product system featuring full
horizontal coverage and vertical integration covering core businesses of electronic circuits optical modules (including optical
chips) precision components photoelectric display modules etc. which can provide whole-life cycle core device solutions for
customers in the fields of consumer electronics intelligent vehicles cloud service providers etc. hence achieving closed-loopvalue growth. Based on the opportunities of industry development created by AI technologies “optical modules (including opticalchips) + AI PCB” have become our core product highlights and a critical factor in differential competition. Relying on Source
Photonics we are capable of whole-process independent development and mass production of optical chip IDM hence becoming
one of the few domestic and even international players achieving mass production of high-end EML optical chips. With a full
product matrix covering the rates of 2.5G to 200G our main products are 100G/200G PAM4 EML high-end series with key
performance indicators and mass production capacities reaching the top international level. In the field of optical modules we
have a layout covering the whole industry chain with products for all rates from 10G to 1.6T; moreover we make continuous
efforts to promote the R&D of next generation optical modules at 3.2T and above to build a new core growth driver for the
Company. Multek has the professional manufacturing capabilities for ultra-HLC PCBs with 78 or more layers and 7-stage thick
HDI PCBs. Meanwhile we continuously maintain our leading position in the industry of electronic circuits; in the field of
precision components we have the capabilities of one-stop supply for core parts of vehicles making us the only supplier in the
industry that can supply multiple core parts for top vehicle manufacturers.(III) Advantage in technology: Drive innovation with leading product R&D capabilities in the industry
We always put technological innovation at the core strategic position for corporate development. We deeply participate in
preliminary development conducted by leading industry customers accurately understand the trend of cutting-edge technologies
build an efficient coordinated R&D mechanism and actively engage in industry-university-research cooperation with top
universities research institutions and industry organizations so as to accelerate the conversion of cutting-edge innovation and
research results to inject endless dynamics for high-quality development of the Company. With continuous efforts for R&D
acquisition and integration we have built unique advantages in electronic circuits optical modules (including optical chips)
precision components and photoelectric display modules. In the field of optical communication relying on Source Photonics we
have built a whole-process technology system covering the manufacturing of optical chips to optical modules which provides a
core support for us to compete on the global optical communication market. Operating in the industry for many years Source
Photonics has independently developed multiple key core technologies and built independent core technologies for optical chips
under its control; meanwhile with its independently developed chip package and reliability verification system it stays at the
industry forefront in the R&D and commercial operation of ultra-high-speed optical modules. At present we are making active
efforts for the R&D of optical modules at 3.2T and above which can fully meet the requirements of AI data centers and other
scenarios for ultra-large bandwidth interconnection and prepare for the next generation core technologies so as to provide solid
technology guarantee for the iteration and upgrade of ultra-high-speed optical modules and help the Company maintain its leading
position on the high-end racetrack of optical communication. Meanwhile relying on our technology advantages in electronic
circuits precision components and photoelectric display modules we will continuously consolidate our leading position in the
industry to facilitate the high-quality development of the Company.(IV) Advantage in scale: Globally leading production capacity to achieve prominent synergy effects
Based on years of operation and forward-looking strategic layout we have built a globally leading and modern production
capacity platform with prominent scale effects and comprehensive support systems making us capable of large-scale lean
manufacturing whole-process quality management and control and efficient and stable delivery which is leading in the industry.Our new production capacity is planned in close alignment with the pace of industry technology iteration and the medium- to long-
23DSBJ Annual Report 2025
term development requirements of key downstream customers; by continuously improving the production capacity structure
improving the efficiency of resource allocation and enhancing coordinated operation of the whole industry we can constantly
maximize operating benefits consolidate our leading position in the industry and build a solid foundation for long-lasting core
competitiveness. In terms of core products in the fields of FPC and precision structural parts we have built prominent production
capacity barriers on the basis of large-scale manufacturing advantages fine management systems and capabilities of rapid
response which puts us in a leading position in terms of product yield rate delivery efficiency and comprehensive cost control
and facilities stable and reliable supply of core components for downstream customers. In the field of AI core hardware we have
built a comprehensive product matrix and production capacity expansion layout focusing on high added-value products like
optical modules (including optical chips) AI PCB etc. At present our production capacity expansion projects are progressing in
order as planned capacity ramping is under implementation smoothly and the capability of large-scale supply is improving
continuously so as to fully match with the increasing purchase demands of overseas mainstream cloud service providers to
provide a strong support for the construction of global computing infrastructure.(V) Advantage in customers: Serving global top customers to build long-term cooperation barriers
Relying on outstanding product quality technology strength and delivery capabilities we have accumulated global
outstanding customer resources and built a customer base consisting of four of the top five global consumer electronics brands
and four of the top five global pure electric vehicle manufacturers and the top five cloud service provides covering multiple high-
growth industries like consumer electronics vehicles cloud services communication devices etc. which can defend against the
seasonal and periodical risks of individual industries. We establish long-term and in-depth strategic cooperation relationship with
core customers participate in product definition at the early stage of customers’ products closely follow the trends of technology
routes and accelerate product iteration through coordinated designing; after being admitted to customers’ supply chain we make
use of our rich product portfolio technology expertise and large-scale production capacity for extension to orders of associated
products hence increasing sales to customers. For example since the acquisition of MFLEX we have been providing flexible
PCB products for global leading consumer electronics manufacturers extending the application scope from smartphones to all
consumer electronics product categories and new energy vehicles; in the vehicle field we are providing integration solutions for
global leading high-performance manufacturers while continuously improving customer loyalty. Relying on the manufacturing
capabilities of vertical integration of optical chips and optical modules Source Photonics has become one of the core suppliers of
global optical modules which creates a bigger growth space for the Company in the field of AI computing hardware.(VI) Advantage in globalization and operation: Global layout and efficient coordination with prominent synergy effects
We are deeply participating in the global supply chain system to build a global network for R&D production and sale in all
aspects. We have established R&D teams in multiple countries and regions including Chinese mainland Taiwan Region the
United States Singapore France etc. to attract local high-end professionals; meanwhile we have production facilities in 15
countries and regions covering Asia North America Europe and Africa which builds an efficient operation layout featuring
“global R&D local production and integrated services” to rapidly respond to customer needs throughout the world and flexibly
address the complex and volatile international trade environment. In the field of intelligent manufacturing we have built an
industry leading intelligent manufacturing system with AI empowering and data driver as the core in which advanced
technologies like machine visual AI detection and SMT automatic production line are widely used; moreover we have built a
production central control center to implement whole-process coordinated management and control. Many of our production bases
won many honors including the National Intelligent Manufacturing Demonstration Factory granted by the Ministry of Industry
and Information Technology and Jiangsu Provincial Industrial Internet Benchmark Factory which significantly improves the
scale of production capacities product yield rates and production efficiency effectively reduces manufacturing costs and ensures
product quality consistency and stability. Relying on the global network of production capacities we can implement local rapid
24DSBJ Annual Report 2025
delivery close to the end market which reduces logistics costs improves response speed and enhances the anti-risk capabilities
for the supply chain hence providing a solid support for the continuous and stable development of global businesses.(VII) Advantage in management and synergy: Efficient management to empower whole-process synergy
We have a management team with international understanding and forward-looking perspectives which can make accuratestrategic judgment and implement efficient strategy implementation. We advocate the corporate spirit of “breakthrough diversitysimplicity journey” stick to the management principle of “overall planning delegation of powers in business operation supportby the platform and centralized supervision” and have built a scientific and efficient modern management system. Meanwhile
having built mature experience in cross-border acquisition and resource integration we can rapidly promote cultural integration
with and performance improvement of the acquired target company. By completing multiple benchmark acquisition transactions in
the industry including Mflex Multek Source Photonics GMD Group etc. we have successfully entered a high-growth racetrack;
we will make continuous efforts to improve our product portfolio and global layout of production capacities build strict and
regulated acquisition selecting and post-investment integration systems and efficiently achieve in-depth integration with acquired
targets and release value by means of customer expansion organizational structure optimization supply chain synergy and
integration incentive mechanism improvement etc. In addition we have achieved prominent synergy effects among various
business segments: in terms of customer synergy we effectively improved customer loyalty and comprehensive shares by sharing
advantageous resources in multiple product categories including PCBs optical modules precision components etc.; in terms of
technology synergy we accelerated technology breakthrough and product iteration through interdisciplinary cooperation and
innovation among R&D teams of various products; and in terms of supply chain synergy we significantly improved the supply
chain resilience and cost competitiveness thanks to optimized resource allocation relying on globalized production capacities and
centralized purchase networks hence supporting the long-lasting high-quality development of the Company in all aspects.IV. Analysis of Primary Business
1. Overview
The year 2025 is a critical year witnessing the diverging trends in economic recovery on the world and continuously
accelerating transformation and upgrade of the manufacturing industry. Facing the complex and volatile external environment we
developed in-depth insight into the opportunities for industry development created by AI technologies took active measures to
give full play to our advantages by effectively and decisively entering the racetrack of optical modules and accelerated investmentin production capacity of AI PCBs hence rapidly creating the synergy effects for core devices of AI data centers featuring “opticalmodules (including optical chips) + AI PCB”. After the new round of industry upgrade we have established a development
strategy with both “offensive and defensive characteristics” where conventional businesses (core devices for consumer electronics
+ core parts for vehicles) help to achieve stable profits and consolidate our foundation while new businesses (optical modules
(including optical chips) + AI PCB) are intended for expansion in the future enhancing development dynamics and buildingunique competition barriers for us. In terms of operation insisting on the operating strategy of “focusing on main businessesstable operation improving quality and efficiency” we made steady progress in all key tasks in this year including putting new
production capacity into operation to increase production volumes smoothly completing private placement and acquisition
smoothly separating non-core businesses and making continuous improvement in routine operation hence achieving established
core operating objectives and providing a solid foundation for long-lasting high-quality development of the Company. In 2025 we
recorded an operating revenue of RMB 40.125 billion a year-on-year increase of 9.12%; achieved the net profit of RMB 1.386
billion increasing by 27.67% year on year and achieved the net operating cash inflow of RMB 5.307 billion increasing by 6.44%
year on year. The overall tasks in the year are summarized as follows:
25DSBJ Annual Report 2025I. Took industry development opportunities to build dual growth engines for core devices featuring “optical modules(including optical chips) + AI PCB”
During the reporting period the continuous explosive growth of AI computing led to the scale expansion of global data
centers where all top cloud providers increased capital expenditures and infrastructure investment. We made accurate efforts to
take the strategic opportunities of the explosive development of the AI industry by implementing an in-depth layout covering the
core device racetrack for AI industry hardware endeavoring to build new dynamics for industry development. By acquiring
Source to rapidly enter the optical module industry we have become one of the few global players achieving vertical integration of
optical chips with optical modules. After this transaction was decided we made full use of our capabilities and advantages in
acquisition and integration to achieve synergy and empowering effects in aspects of funds talents technologies customers etc. to
support Source in production capacity expansion and new customer development and achieved favorable results. Relying on
Multek’s profound technology expertise in the field of high-end PCBs we transformed old factories and constructed new factories
to upgrade and arrange production capacities for HDI and HLC PCBs and took active measures to meet the strong demands of
downstream AI data center customers for high-end PCBs. By now we have become the only supplier capable of providing
“optical modules (including optical chips) + AI PCB” high-quality products in the industry. On the basis of the diversified productmatrix with clear layers and complementary advantages we always insist on the mission of “building a better connected world fortomorrow” and make continuous efforts to build dual growth engines to drive the high-quality development of the Company.II. Continuously focused on core businesses to build the development foundation with both “offensive and defensivecharacteristics”
We took conventional advantageous businesses including printed circuit boards precision structural parts photoelectric
display modules etc. for consumer electronics and vehicles as our cornerstone and made continuous efforts to consolidate our
operating foundation by means of diversified customer structure intelligent and information-based factory operation and
capabilities of continuous product iteration and upgrade. The continuous and stable customer relationship ensured stable revenue
and profits for us and provided the continuous and stable cash flow to support the long-lasting and stable operation of the
Company. Meanwhile we took the historical opportunities of the rapid construction of global data centers driven by the explosivedemands of AI computing and made all efforts to build the third growth curve for our core profits with “optical modules(including optical chips) + AI PCB” core devices as critical measures by means of forward-looking layout and accurate investment.Under the strategy of coordinated development for “building a stable foundation with conventional businesses and entering newracetracks with emerging businesses” we effectively protected ourselves against the periodical fluctuation of the industry and
continuously improved our management and control of operating risks so as to move forward on the basis of stable operation and
improve quality while moving forward and supported the Company on the path of more resilient more dynamic and more
sustainable high-quality development.III. Made stable efforts to promote global strategic layout and continuously improved synergy along the entire industry chain
We completed the strategic acquisition of GMD Group in France during the reporting period. This acquisition effectively
expanded our customer resources in the vehicle field; more importantly the production and operation base built by GMD Group
on the basis of European vehicle customers will become an important strategic support for us to operate in the European and North
African markets hence further improving regional production capacity layout and coverage of customer resources and effectively
promoting the continuous implementation of our global industry layout. By now the proportion of overseas employees has
exceeded 20% with an international talent team taking shape preliminarily. We always insisted on the strategy of global
development to actively integrate outstanding global resources and continuously optimize the overseas industry layout. By now
with management manufacturing R&D and service bases covering multiple countries and regions including China the United
States France Germany Spain Portugal Singapore Thailand Morocco Mexico etc. we have built a manufacturing system with
regional synergy covering Asia America Europe and Africa hence creating an efficient resilient and reliable global industry
26DSBJ Annual Report 2025
network. With the mature and comprehensive global layout we can come close to regional markets develop accurate insight into
and rapidly respond to global market trends and changes in customer demands significantly improve delivery efficiency and
service capabilities and continuously consolidate our global core competitive advantages hence providing a solid foundation for
high-quality sustainable development.IV. Focused on product innovation and consolidated development foundation to continuously meet customer requirements
We always insisted on innovation-driven development by taking new product R&D as a core priority for development
continuously increasing investment in R&D focusing on breakthroughs in core technologies for key products in strategic
emerging fields like high-speed optical chips optical modules AI PCBs etc. continuously enhancing forward-looking R&D
layout and investment of outstanding resources and emphasizing technology breakthrough and iteration of product systems to
improve product competitiveness with core technologies. Meanwhile we maintained in-depth alignment with forefront dynamics
of the market and core needs of customers to achieve joint movement of and mutual empowering between product R&D and
market development. To accelerate technology conversion and improve innovation efficiency we continuously deepened the
industry-university-research coordinated innovation mechanism by actively cooperating with domestic and foreign research
institutions and universities to jointly build an innovation platform and promoted the efficient implementation and conversion of
scientific and technology innovation results so as to achieve in-depth integration and coordinated development of technology
breakthroughs product iteration and market expansion. In addition we made great efforts to promote the engineer culture and
fully release the innovation dynamics and creation potential of R&D teams so as to provide a solid talent support and guarantee
for product innovation technology breakthrough and implementation of various strategies help the Company consolidate the
development foundation with continuous innovation and continuously meet customer needs with high-quality products.V. Enhanced organization and talent building for joint efforts to promote high-quality development
Focusing on our overall strategic development layout we made continuous efforts to deepen organizational transformation
and talent team building in this year to comprehensively improve cross-country and cross-region organization operation efficiency
and core cohesiveness. Firstly we optimized the organizational structure. With reference to actual needs for acquisition and
integration expansion of emerging businesses etc. we adjusted the organizational system flexibly and effectively to integrate
global talent resources and overcome obstacles for cross-department and cross-region coordination which greatly improved
organization operation efficiency and ensured the accurate and efficient implementation of various strategic measures. Secondly
we endeavored to attract and educate talents by continuously implementing the “Evergreen” talent strategy and enhancing efforts
for attracting outstanding domestic and overseas fresh graduates medium- and high-level professional technicians and core
management talents; meanwhile we improved the system for internal talent development and promotion and provided customized
and professional training focusing on core businesses and emerging fields so as to improve the comprehensive competence of
employees in all aspects to build an high-quality professional and international outstanding talent team. Thirdly based on thecorporate culture we made continuous efforts for in-depth implementation of our core values of “openness inclusion pragmatismand enterprising”. We promoted intercultural communication and common understanding of values improved the diversified
incentive system and employee care mechanism and actually improved employee sense of belonging sense of achievement and
sense of happiness hence promoting synergy between individual growth with the corporate vision and building the inherent force
to promote the long-lasting and stable corporate development.VI. Implemented active and stable financial policies to fully guarantee the implementation of the strategic layout
We insisted on active and stable financial policies to keep close alignment with the changes in the external economic
environment market fluctuation and industry policies and constantly optimize the financial management and control system.Firstly we optimized the capital and debt structure to plan and use funds in a scientific and coordinated manner. We mainly
invested funds in strategic fields like expansion of emerging businesses and building of core production capacities and improved
27DSBJ Annual Report 2025
the efficiency of fund utilization. Meanwhile we took active measures to expand diversified financing channels guaranteeing the
funds for our key strategies like global layout industry upgrade etc. Secondly we built a firm line of defense against risks. We
insisted on the operating idea of “cash first” emphasized operating cash flow of enterprises and optimized fund liquidity planning
and the comprehensive management system for budget and final accounts so as to maintain a safe and stable corporate fund chain.We improved the risk management mechanism concerning fluctuation in exchange rates and commodity prices on the principle of
risk neutrality and used professional hedging tools to effectively address market fluctuation risks. We enhanced fine financial
management and control to improve the whole-process management and control mechanism for corporate operation. Thirdly we
deepened integration between businesses and financial by promoting in-depth coordination between financial departments and
business departments focusing on the core objectives of improving quality and efficiency; we enhanced whole-chain cost
management and control continuously optimized the profitability structure to improve corporate profits and achieved closed-loop
management from strategy formulation to implementation hence providing a stable and reliable financial guarantee for the smooth
implementation of various measures and the achievement of strategic objectives. Fourthly we continuously improved global
financial management capabilities by improving the financial management capabilities over overseas bases by means of system
building regulation improvement process update regular training talent communication etc. so as to smoothly connect overseas
subsidiaries newly included in the scope of consolidation with the group’s financial management system.
2. Revenue and costs
(1) Components of operating revenue
In RMB
20252024
% of operating % of operating Y/Y % change
Amount Amount
revenue revenue
Total operating
40124858839.52100%36770374347.58100%9.12%
revenue
By segment
Computer
communication
39643732616.0498.80%36479191979.2099.21%8.67%
and other
electronics
Others 481126223.48 1.20% 291182368.38 0.79% 65.23%
By product
Electronic circuits 25620292915.99 63.85% 24800813670.87 67.45% 3.30%
Photoelectric 5985629058.48 14.92% 6369925398.02 17.32% -6.03%
display module
Precision 5930242495.99 14.78% 4540319354.27 12.35% 30.61%
components
Optical module 1435534921.96 3.58%
Others 1153159447.10 2.87% 1059315924.42 2.88% 8.86%
By region
Domestic market 7459672435.12 18.59% 6187309236.49 16.83% 20.56%
Overseas market 32665186404.40 81.41% 30583065111.09 83.17% 6.81%
By sales model
Direct sales 40124858839.52 100.00% 36770374347.58 100.00% 9.12%
(2) Segments products regions or sales models representing more than 10% of operating revenue or profit
□ Applicable □ N/A
28DSBJ Annual Report 2025
In RMB
Y/Y % change Y/Y % change Y/Y %
Gross
Operating revenue Operating cost in operating in operating change in
margin
revenue cost gross margin
By segment
Computer
communication and 39643732616.04 34153971460.65 13.85% 8.67% 8.83% -0.12%
other electronics
By product
Electronic circuits 25620292915.99 21113572455.81 17.59% 3.30% 4.25% -0.75%
Photoelectric display 5985629058.48 5675456101.15 5.18% -6.03% -7.84% 1.86%
module
Precision components 5930242495.99 5383316361.13 9.22% 30.61% 38.36% -5.08%
Optical module 1435534921.96 908137144.50 36.74%
By region
Domestic market 7459672435.12 7157096931.64 4.06% 20.56% 20.56% 0.00%
Overseas market 32665186404.40 27315572817.13 16.38% 6.81% 6.37% 0.34%
By sales model
Direct sales 40124858839.52 34472669748.77 14.09% 9.12% 9.04% 0.07%
In case of any adjustment to the statistic scale for primary business data the primary business data of the most recent reporting
period as adjusted according to the statistic scale applied at the end of the reporting period:
□ Applicable□ N/A
(3) Whether the Company’s revenue from the sale of tangible goods is higher than the revenue from labor services
□ Yes □ No
Segment Item Unit 2025 2024 Y/Y % change
Sales volume m2 6693546.90 5544309.55 20.73%
Electronic circuits Output m2 6978762.29 5579598.88 25.08%
Inventories m2 429386.72 144171.33 197.83%
Sales volume PC 9487921.00 14178588.00 -33.08%
Photoelectric Output PC 9565558.00 14511811.00 -34.08%
display module Inventories PC 4231468.00 4153831.00 1.87%
Sales volume PC 2793339.00
Optical module Output PC 2872624.00
Inventories PC 410579.00
Sales volume PC 183720228.00 142828973.00 28.63%
Precision Output PC 190751830.00 143509247.00 32.92%
components Inventories PC 38519272.00 31487670.00 22.33%
Analysis of changes in the relevant data over 30% compared to the previous year:
□ Applicable □ N/A
1. The inventory of electronic circuits increased by 197.83% year on year primarily due to the inventory increase in the fourth
quarter intended for the sales in the first quarter.
2. The production volume of precision component products increased by 32.92% year on year which besides the acquisition of
GMD Group in France in the fourth quarter is primarily due to the additional production and sales volumes from several
production bases that were put into operation.
29DSBJ Annual Report 2025
(4) Performance of material sales contracts and material purchase contracts by the Company as of the end of the reporting
period
□ Applicable□ N/A
(5) Components of operating costs
In RMB
20252024
Category of Item Y/Y %products Amount % of operatingcosts Amount % of operating costs
change
Direct
material 24274267869.12 71.07% 22405786966.83 71.39% 8.34%
Computer costs
communication Direct
and other labor 2476423594.48 7.25% 2243766105.86 7.15% 10.37%
electronics costsManufact
uring 7403279997.04 21.68% 6734599541.12 21.46% 9.93%
expenses
(6) Changes in the scope of consolidation during the reporting period
□ Yes □ No
Company name Method of acquisition or disposal
Source Photonics Acquisition
GMD Group Acquisition
DSBJ Europe Holding Newly established
DSBJ International Deregistration
(7) Material changes or adjustments in respect of business products or services of the Company during the reporting
period
□ Applicable □ N/A
During the reporting period by acquiring Source Photonics we successfully entered the field of optical communication and
added the relevant business of optical modules (including optical chips). This business expansion as a critical step for our strategic
layout for the AI computing infrastructure and high-speed communication market will further improve our industry ecology in the
field of high-end electronics manufacturing so as to provide one-stop solutions for customers from AI server PCBs to high-speed
optical interconnect devices and enhance the synergy effects in the AI computing industry chain.
(8) Major customers and suppliers
Major customers of the Company
Aggregate sales revenue from the top 5 customers (RMB) 25814059702.20
Proportion of aggregate sales revenue from the top 5 customers
64.33%
to annual sales revenue
Proportion of aggregate sales revenue from related parties
0.00%
among the top 5 customers to annual sales revenue
Particulars of the top 5 customers
30DSBJ Annual Report 2025
No. Name of customer Sales revenue (RMB) % of annual sales revenue
1 Top 1 18642838150.75 46.46%
2 Top 2 2809002571.15 7.00%
3 Top 3 2281029373.69 5.68%
4 Top 4 1234755113.48 3.08%
5 Top 5 846434493.13 2.11%
Total -- 25814059702.20 64.33%
Other information of major customers
□ Applicable□ N/A
Major suppliers of the Company
Aggregate purchase amount from the top 5 suppliers (RMB) 5737450383.42
Proportion of aggregate purchase amount from the top 5
21.87%
suppliers to annual purchase cost
Proportion of aggregate purchase amount from related parties
0.00%
among the top 5 suppliers to annual purchase cost
Particulars of the top 5 suppliers
No. Name of supplier Purchase amount (RMB) % of annual purchase cost
1 Top 1 1463828472.13 5.58%
2 Top 2 1324158723.58 5.05%
3 Top 3 1101289313.19 4.20%
4 Top 4 1074253017.17 4.09%
5 Top 5 773920857.35 2.95%
Total -- 5737450383.42 21.87%
Other information of major suppliers
□ Applicable□ N/A
During the reporting period the revenue from trading businesses accounts for over 10% of the operating revenue
□ Applicable□ N/A
3. Expenses
In RMB
Y/Y %
2025 2024 Reason for material changes
change
Selling
445146409.06454017787.21-1.95%
expenses
Administrative
1414555307.761112402085.4427.16%
expenses
Financial Primarily due to changes in exchange gains and losses
262462930.55-58736447.60546.85%
expenses caused by fluctuation in USD/RMB exchange rate.R&D
1417226723.871266812544.2311.87%
expenses
4. R&D expenses
□ Applicable □ N/A
31DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
Intended for application scenarios of the
next generation of CPO/NPO switches. Given the expansion of AI computing clusters and
6.4T ELSFP DR8 Provide an external pluggable laser light the increased density for optical interconnect
PLS 6.4T 8- source module for ELSFP package of ELSFP will become a critical support for large-
wavelength ELSFP CPO/NPO. It separates lasers with a high Under scale implementation of CPO. We use
packaged external fault rate from the optical engine and makes developmen independently developed CW lasers for the layout
light source it as a pluggable module (ELSFP) which t of ELSFP optical modules which can build an
pluggable optical maintains the maintenance advantages in hot advantageous foundation for the external light
module pluggable and avoids the risks of scraping source modules for CPO/NPO optical transceivers
the entire ASIC chip due to a faulty optical intended for next generation data centers hence
engine in the CPO/NPO solution. preparing for revenue growth in the future.Intended for the Scale-Up application
scenarios of ultra-large-scale AI clusters
providing high-density optical interconnect
CPX/NPO solutions better than copper cable
transfer. Explore a path of product
preliminary research and development under
6.4T/3.2T NPO cooperation of multiple parties for product Make preparation in technology and product for
6.4T/3.2T near- designing process development production Plan under the Company to achieve breakthroughs in revenues
packaged optics testing and supply chain based on high- assessment from Scale-Up optical interconnect incremental
modules density ultra-high-speed optoelectronic markets in the future.integration and advanced package; achieve
breakthroughs in key technologies like high-
speed high-density signal integrity heat
dissipation management optoelectronic
integration etc. to build early mover
advantages for next generation products.Facing the ultra-high bandwidth density
requirements and power challenge raised by
the Scale-up and Scale-out network
architecture for the next generation large-
6.4T/12.8T XPO scale AI clusters explore the solution for
Explore the solution for next generation optical
2xDR4 next generation optical interconnect and
Plan under interconnect making technology preparation for
build a pluggable optical module featuring assessment the Company to achieve stable revenue growth in
high performance high density high energy the long run.efficiency ratio and ease of maintenance
developed and designed for the large-scale
AI clusters.Establish our leading technology position in the
Break through the core bottleneck for next generational switch of the industry taking the
generation data centers to evolve from benefits of the window for iteration of AI
3.2T OSFP-XD DR8 800G/1.6T to 3.2T and achieve 3.2Tbps infrastructure. The creation of the high-speed
3.2T 8-channel transfer rate through a single port hence Plan under optical engine and advanced package technologies
OSFP packaged meeting the urgent requirements of AI assessment not only greatly increases the added value and
optical module clusters and ultra-large-scale data centers on gross profit margin of products but also achieves
ultra-high bandwidth low latency and low in-depth binding with top cloud providers to build
power consumption. core competitive barriers hence creating a revenuegrowth driver on the data communication market
in the future.
1) Take the early opportunities for the market of
next generation data center interconnect and
Facing the requirements of next generation improve the technology barriers and shares in
1.6T OSFP DR8 data centers develop high-performance ultra-high-speed optical modules. Enhance loyalty
3nm optical modules with the rate of 1600Gbps to of top cloud provider customers to drive the
1.6T 8-channel EML achieve breakthroughs in critical Small-scale revenue from high-speed products for the next 2–3
solution for 500- technologies in high-speed signal integrity trial years.meter OSFP flip chip process thermal management production 2) Use independently developed EML to
packaged optical power consumption control etc. hence demonstrate our R&D strength mass production
module building first early mover advantages for capabilities and complete and controllable supply
next generation products. chain; optimize power consumption and costs to
meet the requirements of high-density and low-
power consumption computing scenarios.
1.6T OSFP 2*FR4 Facing the requirements of next generation Sample 1) Take the early opportunities for the market of
3nm data centers develop high-performance production next generation data center interconnect and
32DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
1.6T 8-channel optical modules with the rate of 1600Gbps to improve the technology barriers and shares in
CWDM EML achieve breakthroughs in critical ultra-high-speed optical modules. Enhance loyalty
solution for 2000- technologies in high-speed signal integrity of top cloud provider customers to drive the
meter OSFP flip chip process thermal management revenue from high-speed products for the next 2–3
packaged optical power consumption control etc. hence years.module building first early mover advantages for 2) Use independently developed EML to
next generation products. demonstrate our R&D strength mass production
capabilities and complete and controllable supply
chain; optimize power consumption and costs to
meet the requirements of high-density and low-
power consumption computing scenarios.
1) Take the early opportunities for the market of
next generation data center interconnect and
Facing the requirements of next generation improve the technology barriers and shares in
1.6T OSFP 2LR4 data centers develop high-performance ultra-high-speed optical modules. Enhance loyalty
3nm optical modules with the rate of 1600Gbps to of top cloud provider customers to drive the
1.6T 4-channel EML achieve breakthroughs in critical revenue from high-speed products for the next 2–3
solution for 10km technologies in high-speed signal integrity
Sample
production years.OSFP packaged flip chip process thermal management 2) Use independently developed EML to
optical module + B5 power consumption control etc. hence demonstrate our R&D strength mass productionbuilding first early mover advantages for capabilities and complete and controllable supply
next generation products. chain; optimize power consumption and costs to
meet the requirements of high-density and low-
power consumption computing scenarios.
1.6T OSFP 1) Take the early opportunities for the market of
DR8&2xFR4 Sipho Facing the requirements of next generation next generation data center interconnect and
with BRCM and data centers develop high-performance improve the technology barriers and shares in
Xphor PIC optical modules with the rate of 1600Gbps to Plan under ultra-high-speed optical modules. Enhance loyalty
1.6T 8-channel achieve breakthroughs in critical verification of top cloud provider customers to drive the
silicon photonics technologies in high-speed signal integrity and sample revenue from high-speed products for the next 2–3
solution for thermal management power consumption production years.
500m&2000m control etc. hence building first early mover 2) Build silicon photonics integration capabilities
OSFP packaged advantages for next generation products. and optimize power consumption and costs to meet
optical module the requirements of high-density and low-powerconsumption computing scenarios.Expand our 1.6T high-speed optical module
1.6T OSFP product line to align with the current Improve the product portfolio of high-speed
DR8&2FR4 Sipho industry trend of increasing quantity of 1.6T optical module products improve our market
with Marvel and optical modules under the explosion of AI competitiveness on the 1.6T racetrack and take the
Xphor PIC computing power hence filling in the gap in Plan under market opportunities in the first year of increasing
1.6T 8-channel the layout of relevant product solutions; verification quantity of 1.6T optical modules in 2026 to
silicon photonics relying on the advantages of short lead time and sample acquire market shares; make use of the technology
solution for of Marvell 3nm DSP promptly respond to production advantages (low-power consumption and high
500m&2000m urgent orders from global cloud providers integration) of Marvell 3nm chips to enhance the
OSFP packaged and AI enterprises to break through the technology barriers of products and expand the
optical module delivery bottleneck in the industry supply profitability space.chain.Facing the requirements of next generation
data centers achieve breakthroughs in signal
integrity reduce power consumption and
reduce the latency for signal transfer. 1) Take the early opportunities for the market of
1.6T OSFP Perform signal restoration by DSP at the next generation data center interconnect and
DR8&2xFR4 LRO transmitting end and implement linear direct improve the technology barriers and shares in
1.6T 8-channel drive at the receiving end. Compared with ultra-high-speed optical modules. Enhance loyalty
silicon photonics the 1.6T FRO solution (DSP at both the Plan under of top cloud provider customers to drive the
solution for transmitting and receiving ends) reduce the assessment revenue from high-speed products for the next 2–3
500m&2000m power consumption by 30% and achieve years.
OSFP linear receive smaller latency at the receiving end. 2) Build silicon photonics integration capabilities
optical module Compared with the LPO solution (linear optimize power consumption and costs to meet the
direct drive at both the transmitting and requirements of high-density and low-power
receiving ends) reduce the requirements on consumption computing scenarios.signal integrity at switch ports and improve
port interchangeability and robustness.
33DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
1.6T AEC OSFP 1.6T AEC (Active Electrical Cable) ismainly used inside large-scale AI data Independently develop high-speed copper cable1.6T single-mode centers especially for interconnection Sample modules to enrich our module product lines. The3m–7m OSFP
packaged high-speed between racks having requirements of production
rapid AI development leads to the sharp increase in
copper cable module balancing transmission distances power
the demands of high-speed copper cable modules
consumption and costs. hence increasing our revenue.
800G QDD Facing the requirements of next generation Take the early opportunities for the market of next
DR8&2xFR4 Gen2 data centers reduce power consumption and generation data center interconnect and improve
800G EML solution improve product yield rates. Compared with Small-scale the technology barriers and shares in ultra-high-
500m&2000m QDD Gen1 reduce the power consumption by trial
packaged optical 20% and design a pattern that is more production
speed optical modules. Enhance loyalty of top
cloud provider customers to drive the revenue from
module suitable for the production line. high-speed products for the next 2–3 years.Facing the requirements of next generation
data centers develop high-performance
optical modules at the rate of 800Gbps based 1) In technology iteration take the early
on the single-wavelength 200G technology opportunities for the interconnect market of
with Gearbox so as to meet the generational switches of data centers and improve
800G QDD DR4++ requirements for interconnection between the technology barriers and shares in ultra high-
800G EML solution the current switches of the single- speed optical modules.
10km QDD wavelength 100G technology and the next Sampleproduction 2) Use independently developed EML topackaged optical generation switches of the single-wavelength demonstrate our R&D strength mass production
module 200G technology. Achieve breakthroughs in capabilities and complete and controllable supply
critical technologies in high-speed signal chain; optimize power consumption and costs to
integrity flip chip process thermal meet the requirements of high-density and low-
management power consumption control power consumption computing scenarios.etc. hence building first early mover
advantages for next generation products.
800G OSFP 2xFR4 Facing the requirements of next generation
BRCM DSP data centers develop OSFP silicon
800G silicon photonics optical modules with the rate of Under Enhance the comprehensive advantages of cost
photonics solution 800Gbps to achieve breakthroughs in critical effectiveness for products with same performance
2000m OSFP technologies in high-speed signal integrity
developmen and increase the winning shares in centralized
packaged optical thermal management power consumption
t purchase of mainstream equipment manufacturers.module control etc. hence promoting productiteration and upgrade.
800G AEC OSFP 800G AEC (Active Electrical Cable) ismainly used inside large-scale AI data Independently develop high-speed copper cable800G single-mode centers especially for interconnection Sample modules to enrich our module product lines. The7m OSFP packaged
high-speed copper between racks having requirements of
delivered to rapid AI development leads to the sharp increase in
balancing transmission distances power customers the demands of high-speed copper cable modulescable module consumption and costs. hence increasing our revenue.
400G Q112 SR4
Gen2 Optimize device selection and circuit design Enhance the comprehensive advantages of cost
400G multi-mode to reduce BOM costs so as to reduce Completed effectiveness for products with same performance
50m Q112 packaged module costs by 40% and improve the and increase the winning shares in centralized
optical module market competitiveness of products. purchase of mainstream equipment manufacturers.
400G QDD FR4 Facing the performance optimization
Gen3.5 Hermetic required for high-reliability 400G products Plan under Enhance the comprehensive advantages of cost
400G 2000m QDD on the telecommunication market optimize verification effectiveness for products with same performance
hermetic packaged device selection and circuit design to reduce and sample and increase the winning shares in centralized
optical module BOM costs. production purchase of mainstream equipment manufacturers.Facing the requirements of data centers
200G QSFP56 FR4 improve our product portfolio by developing
200G single-mode QSFP56 optical modules at the rate of 200 Under Enhance the comprehensive advantages of cost
2000m QSFP Gbps using DFB lasers hence making use of developmen effectiveness for products with same performance
packaged linear our advantages in vertical resource t and increase the winning shares in centralized
optical module integration and low costs to improve the purchase of mainstream equipment manufacturers.market competitiveness of products.
50G SFP56 LR/Bidi For the wireless access network 50G Small-scale
50G 10km coarse evolution node work with domestic and shipment of
wavelength division foreign wireless system manufacturers to coarse Maintain our leading position in the field of global
multiplexing and develop multi-wavelength optical modules wavelength wireless access products.
15km single-fiber featuring extended temperatures and division
34DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
bidirectional SFP56 industrial temperatures required by next multiplexin
packaged optical generation wireless network systems. g products
module while 15km
single-fiber
bidirectiona
l products
are at the
stage of
plan
verification
212Gbaud EML Achieve single-wavelength 400G transfer Design
chip development for 3.2T/6.4T optical modules. optimizatio
Enhance leading advantages in high-speed optical
n chips to take opportunities for the AI market.
212Gbaud EML Achieve single-wavelength 400G transfer Sample Enhance leading advantages in high-speed optical
chip development for 3.2T/6.4T optical modules. production chips to take opportunities for the AI market.Next generation high-speed optical chips
which can provide wider bandwidth and
106Gbaud thanks to increased signal amplitude reduce
differential EML the drive power overall power consumption Sample Enhance leading advantages in high-speed optical
chip development and crosstalk. D-EML will create more production chips to take opportunities for the AI market.competitive advantages for 800G 1.6T and
even 3.2T optical modules.The AI surge accelerates the demands and
106Gbaud
CWDM/LWDM Provide LWDM & CWDM high-speed EML
development progress of 800G and 1.6T optical
Sample modules. Our independently developed 106Gbps
EML chip optical chips for 800G and 1.6T opticalmodules. production EML chips can provide a policy layout featuringdevelopment better cost effectiveness and flexibility for optical
modules.Simulation analysis
and design method Optimize the design of CVL and reduce the
of CVL liner peeling trial and error cost of the process through Completed
The technology and market competitiveness of the
simulation. relevant products will be improved.process failure
Development and
application of
FCCL/CVL Provide customers with thinner FPC The technology and market competitiveness of the
materials for solutions. Completed relevant products will be improved.dynamic bending
and thinning
FPC dynamic
bending life Provide customers with solutions for the Completed The technology and market competitiveness of theimprovement reliability of dynamic bending FPC. relevant products will be improved.technology
Development mass
production and
application of ink Develop the roughening solution Completed The technology and market competitiveness of the
pre-middle independently to reduce costs. relevant products will be improved.roughening solution
25-micron/25-
micron line The project uses existing process equipment
development by to develop fine circuits by adjusting the Completed The technology and market competitiveness of the
subtractive layer process. relevant products will be improved.process
Development of
environmental Develop new nickel bath and nitric acid bath
friendly nickel bath agents to replace nitric acid hence reducing Completed The technology and market competitiveness of the
and nitric acid bath environmental pollution. relevant products will be improved.agents
Development of a
new aluminum Develop the key chemical solution Completed The technology and market competitiveness of the
etching solution independently to reduces costs. relevant products will be improved.Development of
flexible pressure Develop flexible pressure sensors to provide Completed The technology and market competitiveness of the
sensors customers with more solutions. relevant products will be improved.
35DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
Development of
fine-line patterning
technology for line Develop a fine-line patterning technology to
width and line achieve denser wiring hence providing In progress
The technology and market competitiveness of the
spacing of 20um or customers with more solutions.relevant products will be improved.below
Process
development for Achieve thinner flexible PCBs through
direct metallization direct metallization using magnetron In progress The technology and market competitiveness of the
using magnetron sputtering. relevant products will be improved.sputtering
Development of
rolling process for Develop rolling process for protective films The technology and market competitiveness of the
long-size protective to improve efficiency. In progress relevant products will be improved.films
Development of
intelligent optical Independently develop equipment for critical
inspection processes to master key and core equipment In progress
The technology and market competitiveness of the
and improve efficiency. relevant products will be improved.equipment
Development of Develop roll-to-roll lamination and rapid
roll-to-roll processes lamination processes to achieve roll-to-rollproduction of multi-layer board bonding Completed The technology and market competitiveness of thefor multi-layer hence breaking the bottleneck in roll-to-roll relevant products will be improved.boards manufacturing of multi-layer boards.Chip-embedded Improve system integration and improve the In progress The technology and market competitiveness of thecircuit board efficiency and reliability of the system. relevant products will be improved.Given the increasing chip sizes the BGA
evenness affects the stress release after chip
Study of BGA packaging so that the chip may be pulled
evenness crack after being packaged. It is necessary to In progress
The technology and market competitiveness of the
improve the BGA evenness of HLC boards relevant products will be improved.and the BGA evenness after simulated
reflow soldering.Study of alignment Insufficient verticality of stacked holes may
accuracy of stacked lead to reliability defects caused by Z axis In progress The technology and market competitiveness of the
laser-drilled holes expansion of the board during high-density relevant products will be improved.HDI.A leading AI customer requires the back
Research on back drill stub length of 0–4 mil for a preliminary
drill stub length research project. The current capability is 2– In progress The technology and market competitiveness of the
capability of 0–4 mil 6 mil in the industry. There is a technical relevant products will be improved.gap in this aspects and preliminary R&D is
required.At present multiple customers requested
Study of 0.5OZ preliminary research of inner layer
inner layer impedance +/-5%; we cannot achieve this In progress The technology and market competitiveness of the
impedance ±5% capability at present and therefore the relevant products will be improved.preliminary research is necessary.R&D of 40/40um
line width and
surface copper Break through the technology bottleneck of The technology and market competitiveness of the
thickness of products.In progress relevant products will be improved.
22+/4um
R&D of alignment
between the Cavity
edge to the bonding Break through the technology bottleneck of In progress The technology and market competitiveness of the
pad for optical products. relevant products will be improved.modules
R&D of 11-stage
inter-layer alignment Break through the technology bottleneck. In progress The technology and market competitiveness of the
100um for HDI relevant products will be improved.
R&D of thermal
reliability for 11- Break through the technology bottleneck. In progress The technology and market competitiveness of the
stage HDI relevant products will be improved.
36DSBJ Annual Report 2025
Description of major Purpose Progress Expected effect on the future development of theR&D project Company
Development of via
filling technology
for blind vias in Improve the process capabilities for multi- Completed The technology and market competitiveness of the
multi-layer adhesive layer flexible PCBs. relevant products will be improved.flexible PCBs
Development of
mass production
capacity for rigid-
flexible boards 16L Improve the layer misalignment processcapabilities for HLC rigid-flexible boards. Completed
The technology and market competitiveness of the
at layer relevant products will be improved.misalignment of
±0.1mm
Development of
low-sparkle touch Reduce the sparkle issue of AG glass In progress The technology and market competitiveness of the
screens through the AG design of surface covers. relevant products will be improved.The certification is mainly applicable to
OLED displays in high-end laptop
HDR TrueBlack computers and handheld devices to display
1000 R&D and vivid and lifelike images with better color In progress The technology and market competitiveness of the
certification accuracy and contrast reproduction. Passing relevant products will be improved.the certification can facilitate the marketing
of our copper Metalmesh hence improving
the market competitiveness.R&D of automotive Customized development of 10.25-inch
Under
display screen touch-integrated display screen to be used
verification The technology and market competitiveness of the
as automotive instrument display screen. by relevant products will be improved.customer
Development of Customized development of 15.6-inch
narrow-bezel narrow-bezel touch-integrated display Plan under The technology and market competitiveness of the
automotive displays screen to be used as automotive central assessment relevant products will be improved.control and rear display screens.Enhance the design (mechanical and
electrical) and assembly production Stage of
Dual-arm lifting capabilities for the humanoid robotics sample The technology and market competitiveness of the
robots industry and establish a stable and reliable optimizatio relevant products will be improved.supply chain for key components at the same n
time.Enhance the design (mechanical hardware
electrical and software) and assembly Stage of
Tracked humanoid production capabilities for the humanoid sample The technology and market competitiveness of the
robot robotics industry and establish a stable and optimizatio relevant products will be improved.reliable supply chain for key components at n
the same time.Smart rivet gun for Enhance the design (mechanical) assembly
Stage of
humanoid robots production and reverse engineering
sample The technology and market competitiveness of the
capabilities of end actuators. optimizatio relevant products will be improved.n
Enhance the design (mechanical and
electrical) and assembly production
Humanoid robots for capabilities for the humanoid robotics Sample The technology and market competitiveness of the
household services industry and establish a stable and reliable designing relevant products will be improved.supply chain for key components at the same
time.Liquid-cooled AI Improve the design capabilities of the liquid The technology and market competitiveness of the
server cooling industry. Completed relevant products will be improved.Innovative design of integrally brazed
Integrated module refrigerant-side components and water-side Develop markets for new products; accumulate
for vehicle-mounted insertion disc valves which enhances the Sample experience in product development; improve
thermal management integration and compact degree of integrated production product capabilities.module products.Particulars of R&D personnel
2025 2024 Y/Y % change
37DSBJ Annual Report 2025
Number of R&D personnel 5074 4619 9.85%
Ratio of R&D personnel to the total number of 12.93% 19.64% -6.71%
employees
Education background of R&D personnel
Undergraduate 2389 1908 25.21%
Master 298 120 148.33%
Doctor 28 4 600.00%
Age of R&D personnel
Below 30 1531 1375 11.35%
30-40215020743.66%
Particulars of R&D expenses
2025 2024 Y/Y % change
Amount of R&D expenses (RMB) 1431775054.82 1266812544.23 13.02%
Ratio of R&D expenses to operating revenue 3.57% 3.45% 0.12%
Amount of R&D expenses capitalized (RMB) 14548330.95
Ratio of capitalized R&D expenses to total R&D
1.02%
expenses
Reasons and impacts of major changes in the composition of the Company’s R&D personnel
□ Applicable□ N/A
Reasons for the significant change in the ratio of total R&D expenses to operating revenue compared with the previous year
□ Applicable□ N/A
Reasons for the significant change in the capitalization rate of R&D expenses and explanation of the reasonableness thereof
□ Applicable□ N/A
5. Cash flows
In RMB
Item 2025 2024 Y/Y % change
Cash provided by operating activities 42774909630.68 39078913419.97 9.46%
Cash used in operating activities 37467767883.69 34092894731.49 9.90%
Net cash flows from operating activities 5307141746.99 4986018688.48 6.44%
Cash provided by investing activities 2008754818.35 1465360913.36 37.08%
Cash used in investing activities 10291946655.20 5559047058.72 85.14%
Net cash flows from investing activities -8283191836.85 -4093686145.36 -102.34%
Cash provided by financing activities 14571684367.09 10305980684.26 41.39%
Cash used in financing activities 10822290356.20 11625348087.09 -6.91%
Net cash flows from financing activities 3749394010.89 -1319367402.83 384.18%
Net increase in cash and cash equivalents 761122243.78 -300886635.94 352.96%
Explanation about the main factors affecting the significant year-on-year changes in relevant data
□ Applicable □ N/A
1. The cash inflow from investing activities increased by 37.08% primarily due to the increase in the recovery of security deposits
for acquisition in the current period.
2. The cash outflow from investing activities increased by 85.14% primarily due to the strategic acquisition of Source Photonics
38DSBJ Annual Report 2025
and GMD Group during the reporting period and the active expansion of production capacity for optical modules (including
optical chips) and AI PCB products which increased capital investment.
3. The net cash outflow from investing activities increased by 102.34% primarily due to the significant increase in cash outflows
from investing activities.
4. The cash inflow from financing activities increased by 41.39% primarily due to the private placement completed during the
reporting period and relevant acquisition projects which increased M&A loans from banks.
5. The net cash flows from financing activities increased by 384.18% primarily due to the private placement completed during the
reporting period and relevant acquisition projects which increased M&A loans from banks.
6. The net increase in cash and cash equivalents increased by 352.96% primarily due to the stable increase in the cash flows from
operating activities and our active efforts for new business expansion which increased the financing scale and led to the net cash
increase that is obviously greater than the same period of the previous year.Reasons for the significant difference between the net cash flows from operating activities of the Company during the reporting
period and the net profit of the year
□ Applicable□ N/A
V. Analysis of Non-primary Business
□ Applicable□ N/A
VI. Analysis of Assets and Liabilities
1. Material changes in the components of assets
In RMB
December 31 2025 January 1 2025
% of total % of total Change % Reason for material changes
Amount Amount
assets assets
Cash and bank
7650283509.1012.70%7172331252.2915.59%-2.89%
balances
Accounts
9792745060.0616.25%7663458025.4916.65%-0.40%
receivable
Inventories 8928944182.01 14.82% 6152655607.85 13.37% 1.45%
Primarily due to the lease out
Investment
142555461.11 0.24% 781129.10 0.00% 0.24% of partial undeveloped land
properties
during the reporting period.Long-term
equity 126566432.55 0.21% 155008795.68 0.34% -0.13%
investment
Fixed assets 16586762231.15 27.53% 13595191232.40 29.55% -2.02%
Construction
2345985416.223.89%2575154318.355.60%-1.71%
in progress
Right-of-use
2209353814.613.67%1313776299.132.86%0.81%
assets
Primarily due to the
Short-term acquisition of Source
8011474049.0313.30%4810954130.6910.46%2.84%
borrowings Photonics and GMD Group
and the expansion of sales
39DSBJ Annual Report 2025
during the reporting period
which required more
operating funds.Primarily due to the advance
Contract payment for molds collected
474660658.170.79%122562435.140.27%0.52%
liabilities by GMD Group from
customers.Long-term
6375079464.5410.58%5289187891.3311.49%-0.91%
borrowings
Lease
1790064820.732.97%1351518837.182.94%0.03%
liabilities
Analysis of the high proportion of overseas assets
□ Applicable □ N/A
In hundred million in RMB
Whether it
Controls for involves
Assets Method of Mode of guaranteeing
Proportion of risk of
acquisition Amount Location operation the security of Income overseas assets to net material
assets assets impairment
loss
Its
Hong manufacturingHong Kong
Dongshan Established 275.00 Kong
R&D entity is
China and sales located in
10.00 49.48% No
Chinese
mainland
Its
Hong manufacturing
Multek Group Established 127.16 Kong R&D entity is
China and sales located in
3.66 20.65% No
Chinese
mainland
2. Assets and liabilities measured at fair value
□ Applicable □ N/A
In RMB
Gain or loss Aggregate
Item Opening on changes in changes in fair
Impairment loss Amount Amount sold
recognized in the acquired in the in the current Other Closingbalance fair value value recorded current period current period period changes balancein equity
Financial assets
1. Financial assets held for
trading (excluding derivative 15317.92 38000000.00 26500000.00 11515317.92
financial assets)
2. Derivative financial assets 14931966.03 13968379.70 15912162.83 32097635.00 11783827.55 65126316.01
3. Investment in other equity
instruments 63212376.92 61043000.00 656849.76 124912226.68
Subtotal of financial assets 78144342.95 13983697.62 15912162.83 131140635.00 38283827.55 656849.76 201553860.61
Financial liabilities 82922390.17 -48038657.49 -27169.37 22386994.25 10697620.39 46545937.17
Other changes: N/A
Is there a significant change in the measurement attributes for the Company’s main assets during the reporting period
□ Yes□ No
40DSBJ Annual Report 2025
3. Encumbrances on assets as of the end of the reporting period
Item Closing carrying value (RMB) Type of restriction Reason for restriction
Cash and bank balances 1545560882.95 Pledge Security deposit for notes etc.Accounts receivable 981561847.06 Pledge Factoring
Accounts receivable financing 73295416.52 Pledge Pledge of notes
Fixed assets 151552245.09 Mortgage Loan mortgage
Right-of-use assets 2209353814.61 Mortgage Finance lease
Total 4961324206.23
VII. Analysis of Investments
1. Overview
□ Applicable □ N/A
Amount of investment in the reporting Amount of investment in the previous
Y/Y % change
period (RMB) period (RMB)
7203263872.69569000000.001165.95%
2. Major equity investments acquired during the reporting period
□ Applicable□ N/A
3. Major non-equity investments that have not yet been completed in the current period
□ Applicable□ N/A
4. Investment in financial assets
(1) Investment in securities
□ Applicable□ N/A
We have not invested in any securities during the reporting period.
(2) Investment in derivatives
□ Applicable □ N/A
1) Investment in derivatives for hedging purposes during the reporting period
□ Applicable □ N/A
In RMB 0’000
% of net
Aggregate
Gain or Amount Amount assets at
Type of Initial changes in
Opening loss on acquired in sold in the Closing the end of
investment in investment fair value
balance changes in the current current balance the
derivatives amount recorded in
fair value period period reporting
equity
period
41DSBJ Annual Report 2025
Commodity
16561.5814342.25027.03056627.9856214.2519782.960.92%
futures
Total 16561.58 14342.2 5027.03 0 56627.98 56214.25 19782.96 0.92%
Hedge
accounting
policies and
principles
adopted for the
reporting period
and significant None
changes in such
policies and
principles
compared to the
previous
reporting period
Actual profit or
loss for the The amount on commodity futures transactions recorded in profit or loss was RMB 50.2703 million.reporting period
We conduct hedging transactions for the purpose of leveraging the hedging function of futures mitigating the
Effect of hedging effect of market price fluctuations of bulk commodities on our production and operating costs enhancing our
overall risk resistance capacity and improving our financial soundness.Source of funds
for investment in Self-owned funds
derivatives
Analysis of risks
associated with
the derivatives
held in the
current period
(including
without Refer to the Announcement of Commodity Futures Hedging Transactions disclosed by us for the relevant risk
limitation market analysis and controls.risk liquidity
risk credit risk
operational risk
and legal risk)
and related risk
control measures
Changes in the
market price or
fair value of the
derivatives held
in the current
period (in the
analysis of the We are mainly engaged in hedging transactions with mainstream products on major domestic futures markets. The
fair value of derivatives traded by us have a transparent and active market and their transaction prices and settlement prices can
derivatives the fully reflect their fair value.specific
approaches
assumptions and
parameters used
shall be
disclosed)
Litigations None
42DSBJ Annual Report 2025
involved (if
applicable)
Disclosure date
of the
announcement of
the board of
directors December 7 2024
approving the
investment in
derivatives (if
any)
Disclosure date
of the
announcement of
the general
meeting December 24 2024
approving the
investment in
derivatives (if
any)
2) Investment in derivatives for speculative purposes during the reporting period
□ Applicable□ N/A
The Company did not have any derivative investment for speculative purposes during the reporting period.VIII. Sale of Material Assets and Equities
1. Sale of material assets
□ Applicable□ N/A
No material asset has been sold during the reporting period.
2. Sale of material equities
□ Applicable□ N/A
IX. Analysis of Major Subsidiaries and Associates
□ Applicable □ N/A
Major subsidiaries and associates representing more than 10% of the net profit of the Company
In hundred million in RMB
Company Type of Total Net Operating Operating Net
Primary business Registered capital
name company assets assets revenue profit profit
Design R&D sale and after-
Hong Kong sale services in respect of
Subsidiary HKD 10000000 275.00 107.38 408.33 12.55 10.00
Dongshan electronic circuits; investment
holding
Design R&D sale and after-
USD
Multek Group Subsidiary sale services in respect of 127.16 44.80 62.21 4.23 3.66
218248360.27
electronic circuits; investment
43DSBJ Annual Report 2025
holding
Subsidiaries acquired or disposed of during the reporting period
□ Applicable □ N/A
Effect on overall production operation
Company name Method of acquisition or disposal
and results
No material effect on our operating
Source Photonics Acquisition
results in the current period
No material effect on our operating
GMD Group Acquisition
results in the current period
No material effect on our operating
DSBJ International Deregistration
results in the current period
No material effect on our operating
DSBJ Europe Holding Newly established
results in the current period
X. Structured Entities Controlled by the Company
□ Applicable□ N/A
XI. Prospects for Future Development of the Company
(I) Our development strategy
We insist on a development strategy with both “offensive and defensive characteristics”. On one hand we make continuous
efforts in our core businesses to constantly improve core device businesses including consumer electronics vehicles and other
key areas as our foundation so as to steadily consolidate and improve our competitive position in the industry and improve our
operation stability and resilience in business development. On the other hand we attentively take the strategic opportunities in therapid development of the AI industry by making great efforts in core racetracks focusing on key product fields like “opticalmodules (including optical chips) + AI PCB” by continuously enhancing investment in technology R&D and efforts for market
expansion so as to improve our core competitiveness in all aspects and develop DSBJ into a globally leading provider of
intelligent interconnection solutions hence promoting corporate development with better quality in a more sustainable manner.(II) Work plan for 2026
1. Consolidate conventional businesses as our foundation to achieve stable operation
We will make continuous efforts to improve and strengthen conventional advantageous businesses including FPC PCB
precision structural parts photoelectric display modules etc. constantly optimize our product portfolio and customer structure
and deepen long-term strategic cooperation with leading customers in the industry. By closely following the trend of the
innovative upgrade of consumer electronics and the development of electric and intelligent vehicles we can rapidly respond to the
fast iteration pace of terminal products to greatly improve the proportion of high-end and high added-value products continuously
improve delivery capabilities and further consolidate and improve our leading advantages and market shares in the industry.Relying on the businesses above we can generate continuous and stable operating cash flow to effectively enhance our overall
anti-risk abilities hence providing a solid and reliable foundation to support and guarantee long-lasting and stable operation
forward-looking layout of emerging strategic businesses and high-quality development in the long run.
2. Make breakthroughs in the AI hardware racetrack to accelerate the release of new high-end production capacity
We will make full use of Source Photonics’ advantages in vertical industry integration to ensure the stable release of new
production capacities of optical chips as planned and improve chip yields and product performance through continuous
technology breakthroughs. On the basis of our core competitiveness in optical chips and the high market demands this will drive
44DSBJ Annual Report 2025
the rapid expansion of the optical module business to continuously improve the bulk delivery capabilities and market shares of
800G and 1.6T high-speed optical modules. We will make full efforts to promote the construction of the new AI PCB bases and
smoothly put it into operation so as to improve the supply scale and supporting capabilities of HLC PCBs HDI PCBs and other
high-end PCB products for AI servers hence accurately meeting the core demands under the rapid growth of AI computing powerthroughout the world. We will continuously enhance the synergy advantages of the “optical modules (including optical chips) + AIPCB” product matrix hence building an integrated and comprehensive competition barrier in the field of AI data centers on the
basis of leading technologies sufficient production capacities stable quality and prompt delivery.
3. Deepen the global layout of production capacities and improve local supply capabilities
We will continuously improve our global manufacturing system and supply chain network optimize the production capacity
structure and resource allocation among overseas and domestic production bases in a scientific and coordinated manner and
promote local production nearby supporting facilities and agile delivery focusing on core markets and key customers so as to
further shorten the lead time and speed up response. Thanks to the diversified and decentralized layout of production capacities
we can effectively reduce potential risks from geopolitical conflicts international trade barriers and regional supply chain
fluctuation and enhance the stability and anti-risk ability of our supply chain in all aspects hence providing a stable and reliable
production capacity foundation for continuous and stable business expansion of the Company.
4. Strengthen technological innovation and R&D to build core barriers
We will continuously increase R&D investment in key core fields like high-speed optical chips optical modules and AI
PCBs make firm efforts in the main racetrack of AI hardware take technology iteration and process upgrade as core engines and
rely on our advantages to continuously consolidate and improve our core competitiveness and position in the global industry chain.We can continuously consolidate our technology barriers thanks to Source Photonics’ whole-process R&D and process system
covering InP substrates epitaxial materials and optical chips. By now we have achieved large-scale mass production for CW
laser; in addition we are making stable progress in the R&D of single-wavelength 400G EML high-speed optical chips which will
provide a solid foundation for the Company to master the next generation of technologies in the high-end optical communication
field. Multek operating in the PCB industry for 48 years has the professional capabilities of manufacturing ultra-HLC PCBs with
78 or more layers and 7-stage thick HDI PCBs; focusing on the racetrack of AI servers we can deliver high-quality PCB products
in large scale to continuously meet high-end computing demands.
5. Improve governance and internal control to continuously enhance the operation and management quality
We will continuously promote systematic corporate governance and data-based governance constantly optimize the corporate
governance structure actively explore and make prompt adjustment to achieve a management pattern in line with the global layout
continuously improve the group’s coordination management and control effectiveness financial risk prevention and control
abilities and the level of digital and intelligent operation and improve and iterate the internal control management system. We
will strictly implement a whole-process risk management and control system ensure the highly effective controllable and orderly
implementation of regulations on significant operating affairs including production capacity expansion acquisition and integration
overseas operation etc. so as to build a solid security defense for operation and provide a strong system support and governance
guarantee for the high-quality and sustainable development of the Company.
6. Deepen the A+H capital layout to empower the further upgrade of the international layout
Relying on our solid early layout we have made preliminary achievements in overseas market expansion global production
capacity building and cross-border industry chain integration. On this basis we will take stable steps for the A+H global capital
layout to continuously optimize the capital structure establish a channel for overseas financing and build an overseas incentive
platform hence building an effective and flexible international capital platform. By taking advantage of the A+H dual platforms
45DSBJ Annual Report 2025
we can further integrate global capital and industry resources to provide the fund guarantee and capital support for emerging
business expansion global production capacity optimization and implementation of overseas strategies hence improving our core
competitiveness in all aspects.(III) Main risk factors affecting the Company and risk response
1. Risk of concentration of customers
We have good customer resources. Our major customers are well-known domestic and international companies in the
relevant industries that are of sound credit and have established stable cooperation relationships with us. However our top 5
customers constitute a large proportion of our total sales revenue which may further increase in the future. Any material adverse
change in the business situation of such major customers could have an adverse effect on our business.We will pay close attention to the industry development dynamics of key customers and customer credit and make active
measures for new customer development hence reducing the adverse effects of high concentration of customers on the Company.
2. Risks brought by rapid technology upgrading of the industry
Our business covers electronic circuits optical modules (optical chips) precision components photoelectric display modules
and other technology-intensive industries and our products are widely applied in AI data centers consumer electronics vehicles
communication equipment and other fields all of which are characterized by rapid technology upgrading. If our R&D and
manufacturing capabilities fail to keep pace with the rapid technology upgrading of downstream products our products and
technologies may become obsolete.We will closely follow the trend of cutting-edge technologies in relevant industries and maintain in-depth communication
with key customers to ensure advanced technologies for our products. Meanwhile we will keep close cooperation with influential
universities and research institutions in the industry to maintain our advantages in technologies and processes.
3. Risk of changes in the global trade environment
Our major customers include some well-known international companies and our export sales have grown steadily for years.Though China has established good economic and trade cooperation relationships with major countries in the world the
increasingly fierce regional frictions in recent years may cause uncertainties in the applicable trade policies which could affect our
international trade.Facing the complex and volatile international trade conditions we will pay close attention to changes in geopolitical trade
policies continuously optimize the global industry layout consolidate capabilities for local operation and support deepen normal
communication with customers strengthen study on relevant international trade rules and compliance management and take
systematic measures to protect against operating risks from changes in the external environment.
4. Risk of market exploitation
Our business covers the R&D production and sale of electronic circuits optical modules (optical chips) precision
components and photoelectric display modules; our products are widely applied in consumer electronics vehicles data centers
AI computing infrastructure and other fields; and our customers are mostly leading enterprises in the industry. Our industry has
the characteristics of fast technology iteration short product life cycle and intense market competition. If we cannot closely
follow the technology development trend of the industry cannot make sufficient investment in R&D cannot promptly meet the
constantly improving product and technical requirements of existing core customers and downstream industries or under the
impact of strict qualifications of downstream industry suppliers and long verification period we cannot promptly develop high-
quality core customers and smoothly enter their supply chain system we may experience insufficient orders and decreasing market
shares resulting in adverse effects on the sale of our products operating revenue profitability and operating performance.
46DSBJ Annual Report 2025
We will continuously increase investment in R&D and strengthen technological innovation and product iteration hence
continuously improving our core competitiveness. We will take active measures to build a reserve mechanism of multiple
customers optimize our customer structure and build a diversified customer base. We will take early measures intended for the
qualification system of target customers and build a dedicated working team to effectively promote qualification evaluation and
admission procedures. Meanwhile we will make continuous efforts to enhance whole-process quality management and control
and guarantee production capacity and improve the comprehensive delivery capabilities in all aspects so as to provide a solid
support for the Company to promote stable market expansion and achieve sustainable operation.
5. Environmental risk
The production process of our products involves critical steps like epitaxial growth etching passivation photolithography
development cleaning and electroplating which generates wastewater exhaust gases solid waste and various toxic and
hazardous substances. Therefore we are subject to high management and control requirements for environmental protection.Despite our correspondingly established management measures for environmental protection they cannot fully eliminate the risks
of environment accidents caused by management defects equipment failures force majeure or other factors. In the event of a
pollution accident or violation of relevant environmental protection laws and regulations we may face punishment be required to
make rectification and suffer reputation damages which may cause adverse effects on our production and operation. In addition
given the continuous implementation of green and low-carbon development throughout China and stricter supervision over
environmental protection if the environmental protection standard is further enhanced in the future we need to continuously
increase investment in environmental protection and strengthen transformation which may correspondingly increase the operating
costs of environmental protection hence affecting our operating performance.We have set “building of an environment-friendly enterprise” as a key goal of our sustainable development strategy actively
implemented the requirements of relevant latest environmental protection laws and regulations improved the environmental
management system enhanced training and employees’ awareness taken control measures at source and implemented the
requirements related to environmental safety in all of our key business activities to reduce the environmental risks.
6. Foreign exchange risk
Export sales constitute a large proportion of our total sales revenue. Because our day-to-day operation involves transactions in
USD and other foreign currencies and our consolidated accounts are presented in RMB the changes in the exchange rate between
RMB and USD may cause foreign exchange risk to our future operations.We will keep a close watch on the changes in the relevant foreign exchange rates strive to control the exposure to foreign
exchange risk at a reasonable level and hedge or otherwise reduce exposure to such risk.XII. Investigation Research Communication Interview and Other Activities during the
Reporting Period
□ Applicable □ N/A
Main topics of
Particulars of the
Method of Type of discussion and
Date Place Guests investigation and research
communication guests information
activity available at
provided
Institutio 275 investors Interpretation of
Communication
April 25 2025 Online nal including Guosheng the annual report www.cninfo.com.cn
by telephone
investors Securities etc.Communication 141 investors Interpretation of
April 30 2025 Online Others www.cninfo.com.cn
by telephone including Guosheng the first quarter
47DSBJ Annual Report 2025
Securities report etc.Meeting
Institutio Over 10 investors
room of On-site FPC business
July 1 2025 nal including GF www.cninfo.com.cn
the investigation etc.investors Securities
Company
Institutio 298 investors Interpretation of
Communication
August 27 2025 Online nal including Huatai the semi-annual www.cninfo.com.cn
by telephone
investors Securities report etc.Communication Interpretation of
August 29 2025 Online through the Others Investors the semi-annual www.cninfo.com.cn
online platform report etc.
176 investors
Institutio Optical
Changzho On-site including New
September 16 2025 nal communication www.cninfo.com.cn
u Jiangsu investigation China Asset
investors business etc.Management
Institutio 392 investors Interpretation of
Communication
October 22 2025 Online nal including CITIC the third quarter www.cninfo.com.cn
by telephone
investors Securities report etc.XIII. Formulation and Implementation of Market Value Management System and
Valuation Improvement Plan
Whether the Company has formulated a market value management system
□ Yes □ No
Whether the Company has disclosed a valuation improvement plan
□ Yes□ No
For details refer to the Market Value Management System disclosed on www.cninfo.com.cn.XIV. Implementation of the Action Plan to Improve the Quality and Returns
Whether the Company has disclosed its action plan announcement to improve the quality and returns
□ Yes□ No
48DSBJ Annual Report 2025
Section IV Corporate Governance Environment and Society
I. Overview of Corporate Governance
During the reporting period we have continuously improved our corporate governance structure operated in compliance with
the regulations and enhanced information disclosure in strict accordance with the Company Law of the People’s Republic of
China the Securities Law of the People’s Republic of China the Code of Corporate Governance for Listed Companies the Rules
Governing the Listing of Shares on the Shenzhen Stock Exchange and other applicable laws and regulations. We have established a
corporate governance structure that sets forth well-defined powers and responsibilities and mutual restraint mechanisms and
operates in a coordinated manner. Our general meeting and Board of Directors duly performed their duties and exercised their
functions operated in compliance with the regulations and seriously protected the legitimate rights and interests of the investors
and the Company.Is there any significant difference between the actual circumstance of corporate governance of the Company and the applicable
laws administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies
□ Yes□ No
There isn’t any significant difference between the actual circumstance of our corporate governance and the applicable laws
administrative regulations and the provisions of the CSRC regarding corporate governance of the listed companies.II. The Company’s Independence of its Controlling Shareholders and Actual Controllers in
Assets Personnel Finance Organization and Business
We are independent of our controlling shareholders in business personnel assets organization and finance and have our
own independent and complete business and are independent in management.
1. Independence in business operation: We are independent of our shareholders and other affiliates in business operation
have complete production R&D management procurement and sales systems and are able to do business independently on the
market.
2. Independence in personnel: We have a sound corporate governance structure in place and our directors and senior
executives have been appointed in strict accordance with the Company Law of the People’s Republic of China and the AOA and
do not hold any concurrent post in contravention of the applicable laws and regulations. We are independent of our shareholders in
personnel and payroll management and all of our employees receive their salaries from us. We have developed stringent
employment performance appraisal promotion and other labor management policies and entered into a Labor Contract with each
employee. We are fully independent in labor personnel and payroll management.
3. Independence in assets: We have a clear property right relationship with our controlling shareholders own or have the right
to use the premises and land necessary for our production and operating activities and have complete auxiliary production systems
and supporting facilities. None of our controlling shareholders or the business entities controlled by them has occupied any of our
funds assets or other resources.
4. Independence in organization: We have established a sound corporate governance structure in accordance with the
requirements of the Company Law of the People’s Republic of China and the AOA and our general meeting and Board of
Directors exercise their respective functions in strict accordance with applicable laws and regulations. We have set up internal
bodies suitable for our development defined their respective functions and developed corresponding internal management and
control systems. All of our functional departments operate independently free from any interference by any shareholders other
departments entities or individuals and do not engage in any mixed operation or share office space with other departments.
49DSBJ Annual Report 2025
5. Independence in finance: We have an independent finance department and full-time financial personnel established a
sound accounting system and financial management and decision-making policies and implemented strict financial supervision
and administration. We open independent bank accounts and control our funds and assets independently free from any
interference by our shareholders. We are an independent taxpayer pay taxes independently according to law and do not mix our
tax payment with any shareholder.III. Horizontal Competition
□ Applicable□ N/A
IV. Directors and Senior Executives
1. Particulars
No. of Cause of
Beginning End additional increase or
Opening Closing
date of the date of shares decrease in
Name Sex Age Title Status balance of balance of
term of the term acquired in the number
shares held shares held
office of office the current of shares
period held
Private
YUAN 2026-6-
Male 47 Chairman Active 2023-6-6 202226196 100555058 302781254 placement
Yonggang 5
of shares
Director & Private
YUAN 2026-6-
Male 49 General Active 2023-6-6 222388153 25138764 247526917 placement
Yongfeng 5
Manager of shares
ZHAO 2026-6-
Male 63 Vice Chairman Active 2023-6-6
Xiutian 5
Director &
SHAN 2026-6-
Male 50 Executive Active 2023-6-6 553700 553700
Jianbin 5
President
Director
Senior Vice 2026-6-
WANG Xu Male 44 Active 2023-6-6 560000 560000
President & 5
CFO
Director
Deputy
MAO General 2026-6-
Female 46 Active 2023-6-6 391600 391600
Xiaoyan Manager & 5
Board
Secretary
Employee
2026-6-
MA Liqiang Male 45 representative Active 2025-11-3 3000 3000
5
director
WANG Independent 2026-6-
Male 63 Active 2023-6-6
Zhangzhong director 5
SONG Independent 2026-6-
Male 62 Active 2023-6-6
Liguo director 5
GAO Independent 2026-6-
Male 58 Active 2023-6-6
Yongru director 5
50DSBJ Annual Report 2025
XU Independent 2026-6-
Male 45 Active 2025-11-3
Weidong director 5
Total -- -- -- -- -- -- 426122649 125693822 551816471 --
Whether any director or senior executive left office during the reporting period
□ Yes□ No
Changes in directors and senior executives
□ Applicable □ N/A
Name Position Type Date
Employee representative
MA Liqiang Elected 2025-11-3
director
XU Weidong Independent director Elected 2025-11-3
2. Profile
Professional background main work experience and main duties of our current directors and senior executives:
Mr. YUAN Yonggang: Hong Kong permanent resident having permanent residency in Singapore bachelor’s degree one of the
controlling shareholders and actual controllers of the Company. He has served as the Director of the Marketing Department
Deputy Manager and Vice Chairman of the Company since October 1998 and is now Chairman of the Company Vice Chairman
of the Jiangsu General Chamber of Commerce Vice Chairman of the Suzhou Association of Industry and Commerce and
Chairman of Suzhou Chamber of International Cooperation for Private Economy.Mr. YUAN Yongfeng: PRC citizen bachelor’s degree one of the controlling shareholders and actual controllers of the Company.He has served as the Director of the Manufacturing Department and Supervisor of the Company since October 1998 and is now
director and General Manager of the Company member of the 5th CPPCC Wuzhong District Committee of Suzhou Vice
Chairman of the Suzhou Wuzhong District Association of Industry and Commerce and Chairman of Suzhou Dongshan Chamber
of Commerce.Mr. ZHAO Xiutian: US citizen postgraduate. He has served in Feichuang Hughes Network Systems MCE Celiant and Andrew
and is now Vice Chairman of the Company.Mr. SHAN Jianbin: PRC citizen bachelor’s degree. He has served in Mektec Manufacturing Corporation (Zhuhai) Ltd. and is
now director and Executive President of the Company and Supervisor General of the China Printed Circuit Association.Mr. WANG Xu: PRC citizen having permanent residency in Singapore postgraduate certified public accountant (non-
practitioner). He has served in Kunshan Fengrui United Accounting Firm and Suzhou Good-ark Electronics Co. Ltd. and is now
director Senior Vice President and CFO of the Company part-time tutor for postgraduates in accounting at the Dongwu Business
School of Soochow University part-time tutor for postgraduates in accounting and audit at the School of Business of Nanjing
University of Information Science & Technology and part-time tutor for postgraduates in accounting at the School of Business of
Jiangsu Normal University.
51DSBJ Annual Report 2025
Ms. MAO Xiaoyan: PRC citizen postgraduate and economist. She has served in Suzhou Huacheng Group Company Limited and
Jiangsu Wuzhong Pharmaceutical Development Co. Ltd. and is now director Deputy General Manager and Board Secretary of
the Company.Mr. MA Liqiang: PRC citizen bachelor’s degree. He has served in Suzhou Dayin Electronic Telecommunications Equipment Co.Ltd. Suzhou Jinhuasheng Paper Co. Ltd. and Dongshan Optronics (Suzhou) Co. Ltd. and is now the employee representative
director of the Company and the Chief Operating Officer and President of China Region of Multek.Mr. WANG Zhangzhong: PRC citizen postgraduate. He has served in the School of Materials Science and Engineering of
Nanjing Institute of Technology as a teacher office director secretary of the Party committee chief of the division of science and
technology dean professor and Director of the China Heat Treatment Association since August 1983 and is now independent
director of the Company Chairman of the Special Metallurgy and Metal Forming Committee of Jiangsu Metal Society professor
of the Institute of New Material Technology of Nanjing Institute of Technology independent director of Zhangjiagang Haiguo
New Energy Equipment Co. Ltd. independent director of Suzhou Xianglou New Material Co. Ltd. Chairman of the Executive
Council of the Industrial Furnace Branch of Jiangsu Mechanical Engineering Society and Vice Chairman of the New Metal
Materials Branch of Jiangsu Metallurgical Industry Association.Mr. SONG Liguo: Hong Kong permanent resident holding a doctoral degree. He has served in CITIC Securities Tianjin Business
Department the Tianjin Equity Exchange Anhui Antai Law Firm China Baoan Group Hong Kong Hengfeng International
Investment Limited CHAN & Co. ARTHUR K.H. (Hong Kong) Denton Wilde Sapte (Hong Kong) and Jones Day (Hong Kong)
and is now independent director of the Company special counsel of Georgiou Partnership LLP visiting associate professor of the
Law School of Anhui University and arbitrator of the China International Economic and Trade Arbitration Commission the
Arbitration Center Across the Straits the Xiamen Arbitration Commission and the Wuhu Arbitration Commission.Mr. GAO Yongru: PRC citizen holding a doctoral degree senior accountant. He has served in Panda Electronics Group Jiangsu
Jinling Accounting Firm the Nanjing Municipal Bureau of Labor Huatai Securities Co. Ltd. Nanjing Transportation Holding Co.Ltd. Yincheng Properties Group Co. Ltd. Jinling Resort Nanjing Co. Ltd. Shenwu Energy Saving Co. Ltd. Hefei Genius
Advanced Material Co. Ltd. Guangzhou Haozhi Industrial Co. Ltd. Jiangsu Limin Paper Packaging Co. Ltd. Nanjing Borun
Intelligent Technology Co. Ltd. Nanjing Borun Neuromorphic Intelligent Technology Co. Ltd. Jiangsu Xinruide System
Integration Engineering Co. Ltd. Yongtuo Certified Public Accountants LLP Jiangsu Office and Jiangsu Riyue Accounting Firm
Co. Ltd. and is now independent director of the Company independent director of Jiangsu Sunlant Bioengineering Co. Ltd.independent director of Jiangsu Binhai Rural Commercial Bank Co. Ltd. partner of Nanjing Rongsheng Accounting Firm part-
time tutor for postgraduates in accounting at Nanjing University of Information Science & Technology.Mr. XU Weidong: PRC citizen holding a doctoral degree. He is now independent director of the Company associate professor
and doctoral advisor at the School of Management of Zhejiang University Qiu Shi Outstanding Young Scholar of Zhejiang
University and independent director of Zhejiang Jiemei Electronic Technology Co. Ltd.Whether the controlling shareholders and actual controllers also act as the chairman and general manager of the listed company
□ Applicable □ N/A
Mr. YUAN Yonggang and Mr. YUAN Yongfeng controlling shareholders and actual controllers of the Company act as the
Chairman and General Manager of the Company respectively. This is a reasonable arrangement made with reference to the
development stage and actual requirements for operation and management of the Company which helps to improve the efficiency
52DSBJ Annual Report 2025
in operation decision-making ensure effective implementation of the development strategy and continuously maintain stable
operation and management. This post arrangement is reasonable.Positions held in shareholders
□ Applicable□ N/A
Positions held in other entities
□ Applicable □ N/A
Name Entity Position
YUAN
Suzhou Dongyang Investment Co. Ltd. Supervisor
Yonggang
YUAN Shanghai Corkuna New Material Technologies Co.Chairman
Yonggang Ltd.YUAN
Jingbaiyue Investment Development (Suzhou) Co. Ltd. Managing Director
Yonggang
YUAN
Suzhou Dongding Tea Shop Co. Ltd. Supervisor
Yonggang
YUAN Shanghai Xinhuarui Semiconductor Technology Co.Director
Yonggang Ltd.YUAN
Jiangsu Xinhuarui Semiconductor Technology Co. Ltd. Director
Yonggang
YUAN
Ningbo Qixiang Information Technology Co. Ltd. Director
Yonggang
YUAN
Brave Pioneer International Limited Managing Director
Yonggang
YUAN
Hong Kong Dongshan Investment Holdings Limited Managing Director
Yonggang
YUAN
Anhui Landun Photoelectron Co. Ltd. Director
Yonggang
YUAN
Fujian Nanping Nanfu Battery Co. Ltd. Director
Yonggang
YUAN
Jiangsu General Chamber of Commerce Vice Chairman
Yonggang
YUAN
Suzhou Association of Industry and Commerce Vice Chairman
Yonggang
YUAN Suzhou Chamber of International Cooperation for
Chairman
Yonggang Private Economy
YUAN Yongfeng Suzhou Dongyang Investment Co. Ltd. Managing Director
YUAN Yongfeng CPPCC Wuzhong District Committee of Suzhou Member
Suzhou Wuzhong District Association of Industry and
YUAN Yongfeng Vice Chairman
Commerce
YUAN Yongfeng Suzhou Dongshan Chamber of Commerce Chairman
Suzhou Langsheng Communication Technology Co.ZHAO Xiutian Director
Ltd.SHAN Jianbin China Printed Circuit Association Supervisor General
WANG Xu Dongwu Business School of Soochow University Part-time tutor for postgraduates in accounting
School of Business of Nanjing University of Part-time tutor for postgraduates in accounting and
WANG Xu
Information Science & Technology audit
WANG Xu School of Business of Jiangsu Normal University Part-time tutor for postgraduates in accounting
WANG Special Metallurgy and Metal Forming Committee of
Chairman
Zhangzhong Jiangsu Metal Society
WANG School of Materials Science and Engineering of
Professor
Zhangzhong Nanjing Institute of Technology
WANG Industrial Furnace Branch of Jiangsu Mechanical
Chairman of the Executive Council
Zhangzhong Engineering Society
53DSBJ Annual Report 2025
Name Entity Position
WANG New Metal Materials Branch of Jiangsu Metallurgical
Vice Chairman
Zhangzhong Industry Association
WANG
Zhangjiagang Haiguo New Energy Equipment Co. Ltd. Independent director
Zhangzhong
WANG
Suzhou Xianglou New Material Co. Ltd. Independent director
Zhangzhong
SONG Liguo Georgiou Partnership LLP Special counsel
SONG Liguo Law School of Anhui University Visiting associate professor
China International Economic and Trade Arbitration
SONG Liguo Arbitrator
Commission
SONG Liguo Arbitration Center Across the Straits Arbitrator
SONG Liguo Xiamen Arbitration Commission Arbitrator
SONG Liguo Wuhu Arbitration Commission Arbitrator
GAO Yongru Jiangsu Sunlant Bioengineering Co. Ltd. Independent director
GAO Yongru Jiangsu Binhai Rural Commercial Bank Co. Ltd. Independent director
GAO Yongru Nanjing Rongsheng Accounting Firm Partner
Nanjing University of Information Science &
GAO Yongru Part-time tutor for postgraduates in accounting
Technology
XU Weidong School of Management of Zhejiang University Associate Professor
XU Weidong Zhejiang Jiemei Electronic Technology Co. Ltd. Independent director
Punishments imposed by the securities regulatory authorities in the past three years on the directors and senior executives of the
Company currently in office or leaving office during the reporting period
□ Applicable□ N/A
3. Remunerations of directors and senior executives
Decision-making process criteria for determination and actual amount in respect of remunerations of directors and senior
executives
The remunerations of our directors and senior executives are determined in accordance with the provisions of the AOA as follows:
the amount and terms of payment of remuneration of the members of the Board of Directors are determined by the general meeting;
the amount and terms of payment of remuneration of the senior executives are determined by the Board of Directors; the
remunerations of the directors and senior executives are determined based on their respective job responsibilities and achievement
of annual performance indicators for those holding key operational positions concurrently or fulfillment of job responsibilities and
annual tasks for those holding key managerial positions concurrently. The remunerations paid by us to our directors and senior
executives conform to our remuneration policies and the fulfillment of their job responsibilities.Remunerations of directors and senior executives paid in the current period
In RMB 0’000
Whether or not
Total remuneration receiving
received from the remunerations
Name Sex Age Title Status
Company (inclusive of from any
tax) affiliate of the
Company
YUAN
Male 47 Chairman Active 344.27 No
Yonggang
YUAN
Male 49 Director & General Manager Active 344.27 No
Yongfeng
ZHAO
Male 63 Vice Chairman Active 443.70 No
Xiutian
54DSBJ Annual Report 2025
SHAN
Male 50 Director & Executive President Active 412.67 No
Jianbin
Director Senior Vice President &
WANG Xu Male 44 Active 208.86 No
CFO
MAO Director Deputy General
Female 46 Active 162.90 No
Xiaoyan Manager & Board Secretary
MA Liqiang Male 45 Employee representative director Active 260.84 No
WANG
Male 63 Independent director Active 12.00 No
Zhangzhong
SONG
Male 62 Independent director Active 12.00 No
Liguo
GAO
Male 58 Independent director Active 12.00 No
Yongru
XU
Male 45 Independent director Active 2.00 No
Weidong
Total -- -- -- -- 2215.51 --
The remunerations of directors and senior executives
are determined in accordance with the Company’s
Basis for evaluation of the remunerations actually acquired by all regulations remuneration system and performance
directors and senior executives at the end of the reporting period evaluation system; the remunerations of independent
directors are determined in accordance with the
standard of allowances for independent directors.Completion of evaluation of the remunerations actually acquired by all The directors and senior executives have completed the
directors and senior executives at the end of the reporting period annual performance evaluation for 2025.Deferred payment arrangement for the remunerations actually acquired
N/A
by all directors and senior executives at the end of the reporting period
Termination of payment and refund claim for the remunerations
actually acquired by all directors and senior executives at the end of the N/A
reporting period
V. Performance of Duties by the Directors during the Reporting Period
1. Attendance of the directors at meetings of the Board of Directors and general meetings
Attendance of the directors at meetings of the Board of Directors and general meetings
No. of board No. of board Whether or not
meetings No. of board meetings No. of board having been No. of
No. of board
required to meetings present by meetings absent from general
Director meetings
attend during present in means of present by two meetings
absent from
the reporting person communicati proxy consecutive attended
period on equipment board meetings
YUAN
14 0 14 No 5
Yonggang
YUAN
14 0 14 No 5
Yongfeng
ZHAO
14 0 14 No 5
Xiutian
SHAN
14 0 14 No 5
Jianbin
WANG Xu 14 0 14 No 5
MAO
14 0 14 No 5
Xiaoyan
55DSBJ Annual Report 2025
Attendance of the directors at meetings of the Board of Directors and general meetings
No. of board No. of board Whether or not
meetings No. of board meetings No. of board having been No. of
No. of board
required to meetings present by meetings absent from general
Director meetings
attend during present in means of present by two meetings
absent from
the reporting person communicati proxy consecutive attended
period on equipment board meetings
MA Liqiang 2 0 2 No 2
WANG
14 0 14 No 5
Zhangzhong
SONG Liguo 14 0 14 No 5
GAO Yongru 14 0 14 No 5
XU Weidong 2 0 2 No 2
2. Objections raised by the directors regarding matters of the Company
Whether any director has raised any objection regarding matters of the Company
□ Yes□ No
No director has raised any objection regarding matters of the Company during the reporting period.
3. Other information regarding the performance of duties by the directors
Whether the suggestions put forward by the directors have been adopted by the Company
□ Yes □ No
Explanation of the adoption or rejection by the Company of the suggestions put forward by the directors
During the reporting period our directors performed their duties diligently in prudently considering the Company’s matters in
operation management and significant decision-making and raised no objection to relevant matters.VI. Activities of the Committees of the Board of Directors during the Reporting Period
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Considered the
Proposal for
Provision for
Impairment for 2024 The Audit
the Annual Report Committee has
2024 and Summary The relevant actively
GAO of the Report the proposals communicated
Yongru Annual Financial were approved with the auditor
Audit WANG April 22 Report 2024 the and submitted of our annual
5
Committee Zhangzhong 2025 2024 Profit to the Board report to
and YUAN Distribution of Directors effectively
Yonggang Proposal the for supervise the
Proposal for Re- consideration. conduct of the
engagement of the annual audit of
Auditor for 2025 the the Company.
2024 Self-assessment
Report on Internal
Controls the 2024
56DSBJ Annual Report 2025
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Special Report on the
Deposit and Use of
Offering Proceeds
the Proposal
Regarding
Application for
Facilities from Banks
and Other Financial
Institutions in 2025
the Proposal
Regarding Changes
in Accounting
Policies and the
Report of the Audit
Committee under the
Board of Directors
on the Performance
Assessment of the
Accounting Firm and
Exercise of
Supervision Duties in
2024
The relevant
proposals
were approved
April 29 Considered the First and submitted
2025 Quarter Report 2025 to the Board
of Directors
for
consideration.Considered the Semi- The relevant
annual Report 2025 proposals
and Summary of the were approved
August Report and the and submitted
22 2025 Special Report on the to the Board
Deposit and Use of of Directors
Offering Proceeds in for
the First Half of 2025 consideration.Considered the
Proposal for
Distribution of
Accumulated Profits
Prior to the Issuance The relevant
of H Shares by the proposals
Company the were approved
October Proposal Regarding and submitted
14 2025 the Report on the to the Board
Application of the of Directors
Previous Offering for
Proceeds and the consideration.Proposal for
Engagement of the
Auditor for Issuance
and Listing of H
57DSBJ Annual Report 2025
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Shares by the
Company
The relevant
proposals
were approved
October Considered the Third and submitted
21 2025 Quarter Report 2025 to the Board
of Directors
for
consideration.Considered the
Proposal Regarding
the Estimation of the
Amount of External
Guarantees in 2026
the Proposal
Regarding
Application for
Facilities from Banks
and Other Financial
GAO
Institutions in 2026 The relevant
Yongru
the Proposal proposals
WANG
Regarding were approved
Zhangzhong
Audit December Commodity Futures and submitted
XUWeidong 1
Committee 12 2025 Hedging to the Board
YUAN
Transactions the of Directors
Yonggang
Feasibility Report on for
and ZHAO
Commodity Futures consideration.Xiutian
Hedging
Transactions the
Proposal Regarding
Foreign Exchange
Hedging
Transactions and the
Feasibility Report on
Foreign Exchange
Hedging
Transactions
The relevant
Considered the proposals
Proposal Regarding were approved
April 22 Application for and submitted
YUAN 2025 Facilities from Banks to the Board
Yonggang and Other Financial of Directors
SHAN Institutions in 2025 for
Strategy and Jianbin consideration.ESG WANG 9
Committee Zhangzhong The relevantConsidered the
SONG Liguo proposalsProposal Regarding
and GAO were approvedthe Acquisition of
Yongru May 12 and submitted100% Equity
2025 to the Board
Interests in GMD
of Directors
Group in France &
for
Debt Restructuring
consideration.
58DSBJ Annual Report 2025
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Considered the
Proposal Regarding
External Investments
the Proposal
The relevant
Regarding Capital
proposals
Increase in Wholly-
were approved
owned Subsidiary
June 10 and submitted
MFLEX Yancheng
2025 to the Board
Co. Ltd. and the
of Directors
Proposal Regarding
for
Capital Reduction in
consideration.Wholly-owned
Subsidiary Chaowei
Microelectronics
(Yancheng) Co. Ltd.The relevant
proposals
Considered the
were approved
Proposal for
July 10 and submitted
External Investment
2025 to the Board
and Related-party
of Directors
Transactions
for
consideration.The relevant
Considered the proposals
Proposal Regarding were approved
July 25 Investment to Build a and submitted
2025 High-end Printed to the Board
Circuit Board of Directors
Project for
consideration.The relevant
proposals
Considered the
were approved
Proposal Regarding
August 5 and submitted
Capital Increase in
2025 to the Board
Wholly-owned
of Directors
Subsidiary
for
consideration.Considered the
Proposal Regarding
Issuance of H Shares
and Listing on the
The relevant
Main Board of Stock
proposals
Exchange of Hong
were approved
Kong Limited the
October and submitted
Proposal Regarding
14 2025 to the Board
the Plan for Issuance
of Directors
of H Shares and
for
Listing on the Main
consideration.Board of Stock
Exchange of Hong
Kong Limited the
Proposal Regarding
59DSBJ Annual Report 2025
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Converting the
Company to a Joint
Stock Limited
Company Offering
and Listing Shares
Overseas and the
Proposal Regarding
the Plan for the Use
of Proceeds Raised
by Offering H Shares
Considered the
Proposal Regarding
Renaming the
Strategy Committee
of the Board of The relevant
Directors and proposals
Amending Its were approved
November Working Rules and and submitted
3 2025 the Proposal to the Board
Regarding of Directors
Formulating the for
Environment consideration.Society and
Governance (ESG)
Management
Regulations
Considered the
Proposal Regarding
The relevant
the Estimation of the
proposals
Amount of External
were approved
Guarantees in 2026
December and submitted
and the Proposal
12 2025 to the Board
Regarding
of Directors
Application for
for
Facilities from Banks
consideration.and Other Financial
Institutions in 2026
YUAN
The relevant
Yonggang
proposals
YUAN Considered the
were approved
Yongfeng Proposal Regarding
Nomination October and submitted
WANG 1 the Election of
Committee 14 2025 to the Board
Zhangzhong Independent
of Directors
SONG Liguo Directors
for
and GAO
consideration.Yongru
YUAN The relevant
Yonggang Considered the proposals
YUAN Proposal Regarding were approved
Compensation
Yongfeng April 22 the Remunerations of and submitted
and Appraisal 2
WANG 2025 the Directors and to the Board
Committee
Zhangzhong Senior Executives of of Directors
SONG Liguo the Company in 2025 for
and GAO consideration.
60DSBJ Annual Report 2025
No. of Important
Date of Performance of Objections
Committee Members meetings Subject opinions and
meeting other duties (if any)
held suggestions
Yongru The relevant
Considered the
proposals
Proposal Regarding
were approved
Purchasing the
October and submitted
Director Senior
14 2025 to the Board
Executive and
of Directors
Prospectus Liability
for
Insurance
consideration.VII. Activities of the Audit Committee
Whether the Audit Committee has identified any risk involving the Company in its supervisory activities during the reporting
period
□ Yes□ No
The Audit Committee has not raised any objection to the supervisory matters during the reporting period.VIII. Employees
1. Number structure of profession and education of employees
Number of current employees of the parent at the end of the
1492
reporting period
Number of current employees of the major subsidiaries at the
37753
end of the reporting period
Total number of current employees at the end of the reporting
39245
period
Total number of salaried employees during the reporting period 39245
Total number of retired employees to or for whom the parent
0
and the major subsidiaries are obligated to make payments
Structure of profession
Categories of profession Number of employees
Production staff 29716
Sales staff 604
Technical staff 7056
Financial staff 217
Administrative staff 505
Management staff 1147
Total 39245
Education
Degree of education Number of employees
Doctor 30
Master 746
Undergraduate 5118
Vocational college 6092
Below vocational college 27259
Total 39245
61DSBJ Annual Report 2025
2. Compensation policies
We advocate the creation of value and give priority to high-performance teams and individuals in compensation and incentives.We have sound compensation and incentive policies in place which are designed to attract and retain outstanding technical and
management talents with competitive compensation and give long-term incentives to our employees through the combination of
short- medium- and long-term incentives by taking into account our overall operating results and the employees’ performance in
order to enhance our core competencies.
3. Training programs
We actively recruit seek and train talents and make efforts to build an efficient and comprehensive talent training system to
continuously improve our employees’ comprehensive capabilities; conduct capability improvement and training programs in
various forms focusing on cadre fostering management of engineers and other professional personnel and building of talent pools
to improve our employees’ professional quality skills and management capabilities; actively provide our employees with learning
and growth opportunities encourage them to strive for progress and build talent pools to promote the achievement of our
strategic objectives.
4. Outsourced workers
□ Applicable□ N/A
IX. Profit Distribution and Transfer of Capital Reserve to the Share Capital
Establishment implementation or adjustment of profit distribution policy in particular cash dividend policy during the reporting
period
□ Applicable □ N/A
Pursuant to relevant provisions of the Regulatory Guidance for Listed Companies No. 3 – Distribution of Cash Dividends the
AOA and the Three-year Plan for Returns to Shareholders (2024-2026) in comprehensive consideration of the Company’s actual
operation and development future business development and fund requirements the Company has no plan to pay cash dividends
distribute bonus shares or convert any capital reserve to the share capital.Special explanation about the cash dividend policy
Whether it complies with the provisions of the articles
of association or requirements of resolutions of the Yes
general meeting of the Company
Whether the standard and ratio of cash dividend
Yes
distribution are clear and definite
Whether the relevant decision-making processes and
Yes
mechanisms are sound
Whether the independent directors have performed
Yes
their duties and exercised their functions
The Company is at the critical stage of strategic upgrade at present.If the Company has not distributed cash dividends To take the development opportunities of the industry improve the
explain the reason and describe the measures to be global layout and fully enhance long-term profitability and core
taken in order to increase the returns to investors in the competitiveness we completed the strategic acquisition of GMD Group
future: in France and Source Photonics in 2025 with a total investment of RMB
6.749 billion greater than the net profit attributable to shareholders of
62DSBJ Annual Report 2025
the listed company namely RMB 1.386 billion. This circumstance is in
compliance with the relevant provisions on not distributing cash
dividends in the AOA and the Three-year Plan for Returns to
Shareholders (2024-2026); therefore the Company has no plan of profit
distribution for 2025.This distribution solution matches with the Company’s
development stage actual operation and future fund requirements. We
will concentrate funds on core strategic projects to lay a solid
foundation for long-term development despite the short-term suspension
of profit distribution hence effectively protecting the long-term interests
of all shareholders especially minority shareholders while maintaining
stable operation.The retained profits not distributed at the end of 2025 will be
carried over to subsequent years and be fully used for the operation of
the Company as a fund guarantee for future performance growth which
is in compliance with the interests of the Company and all shareholders
as a whole.In the future we will strive to improve operating performance and
enterprise value to guarantee returns to shareholders. After achieving
mature operation development and stable profitability improvement we
will gradually increase the ratio of profit distribution to give back to
shareholders on the basis of continuously improved operating
performance and stable investment returns.Whether the minority shareholders have sufficient
opportunities to express their opinions and requests
Yes
and their legitimate rights and interests are fully
protected
Whether the conditions and procedures in respect of
any adjustment or amendment of the cash dividend
N/A
policy comply with the applicable regulations and are
transparent
Whether the Company has made a profit in the current period and the parent has profits available for distribution to the
shareholders but the Company does not propose to distribute cash dividends
□ Applicable □ N/A
Reason why the Company has made a profit in the current
period and the parent has profits available for distribution to the
Use of retained profits and plan thereof
shareholders but the Company does not propose to distribute
cash dividends
The Company is at the critical stage of strategic upgrade at
present. To take the development opportunities of the industry
improve the global layout and fully enhance long-term
profitability and core competitiveness we completed the
The retained profits not distributed at the end of 2025 will be
strategic acquisition of GMD Group in France and Source
carried over to the next year and be fully used for the operation
Photonics in 2025 with a total investment of RMB 6.749
of the Company as a fund guarantee for future performance
billion greater than the net profit attributable to shareholders of
growth which is in compliance with the interests of the
the listed company namely RMB 1.386 billion. This
Company and all shareholders as a whole.circumstance is in compliance with the relevant provisions on
not distributing cash dividends in the AOA and the Three-year
Plan for Returns to Shareholders (2024-2026); therefore the
Company has no plan of profit distribution for 2025.Particulars of profit distribution and transfer of capital reserve to the share capital for the reporting period
□ Applicable□ N/A
The Company has no plan to pay cash dividends distribute bonus shares or convert any capital reserve to the share capital for this
year.
63DSBJ Annual Report 2025
X. Share Incentive Plans Employee Stock Ownership Plans or Other Employee Incentives
□ Applicable□ N/A
The Company did not implement share incentive plans employee stock ownership plans or other employee incentives during the
reporting period.XI. Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and implementation of internal controls
Pursuant to the requirements of the Company Law of the People’s Republic of China the Basic Internal Control Standards for
Enterprises and the relevant guidelines we have established a sound internal control system according to our actual situations and
needs of management. During the reporting period we have continuously improved the internal control system carried out
internal control self-assessment and identified deficiencies in internal control risks and hazards to further improve the
effectiveness of our internal controls. According to the assessment of material weakness in internal control over financial reporting
as of the reference date for the assessment report on internal controls there’s no material weakness in our internal control over
financial reporting. We have maintained effective internal control over financial reporting in all material respects pursuant to the
requirements of the internal control standard systems for enterprises and other relevant provisions. According to the assessment of
material weakness in internal control over non-financial reporting as of the reference date for the assessment report on internal
controls there’s no material weakness in our internal control over non-financial reporting.
2. Material weaknesses in internal controls identified during the reporting period
□ Yes□ No
XII. Management and Control of Subsidiaries during the Reporting Period
Company Plan of Progress of Issues encountered Progress of
Measures taken Future plan
name integration integration during integration solution
N/A N/A N/A N/A N/A N/A N/A
XIII. Assessment Report on Internal Controls or Auditor’s Report on Internal Controls
1. Assessment report on internal controls
Disclosure date of the full copy of
the assessment report on internal April 22 2026
controls
Full copy of the assessment report
www.cninfo.com.cn
on internal controls available at
Ratio of total assets of the entities
covered by the assessment to total
assets recorded in the consolidated 100.00%
financial statements of the
Company
Ratio of total operating revenue of 100.00%
the entities covered by the
64DSBJ Annual Report 2025
assessment to total operating
revenue recorded in the
consolidated financial statements of
the Company
Criteria for determination of deficiencies
Type Financial reporting Non-financial reporting
Indicators of material weaknesses in internal
control over financial reporting include:
(i) any fraud on the part of directors and senior
executives of the Company;
(ii) any correction of a financial report already
disclosed;
(iii) any material misstatement in the financial
report for the current period that was found by
the public certified accountants but failed to be
identified through internal controls; Indicators of material weaknesses in
and (iv) ineffective supervision by the Audit internal control over non-financial
Committee and the Internal Audit Department reporting include:
of the Company over the financial reports (i) any violation of the applicable laws
disclosed externally or internal control over regulations or normative documents of
financial reporting. the country;
Indicators of significant deficiencies in internal (ii) unscientific procedure in making any
control over financial reporting include: major decision;
Qualitative criteria (i) failure to correctly select and apply (iii) absence of any regulations which
accounting policies pursuant to the generally may result in systemic failure;
accepted accounting principles; (iv) failure to rectify any material
(ii) failure to establish anti-fraud procedures weakness or significant deficiency;
and controls; and (v) any other circumstance that has a
(iii) failure to establish or implement controls material adverse effect on the Company.over the accounting treatment of extraordinary Other deficiencies are classified as
or special transactions and failure to establish significant or general deficiencies
corresponding compensatory controls; depending on the degree of effect.and (iv) one or more deficiencies existing in
control over the preparation of financial report
at the end of the period and inability to
reasonably ensure the truthfulness and
completeness of the financial statements.General deficiencies in internal control over
financial reporting include deficiencies in
control other than material weakness and
significant deficiency.Material weakness: amount of misstatement ≥ Material weakness: direct loss > 0.5% of
0.5% of the operating revenue the total assets
Significant deficiency: 0.3% of the operating Significant deficiency: 0.2% of the total
Quantitative criteria revenue ≤ amount of misstatement < 0.5% of assets < direct loss ≤ 0.5% of the total
the operating revenue assets
General deficiency: amount of misstatement < General deficiency: direct loss ≤ 0.2% of
0.3% of the operating revenue the total assets
Number of material weaknesses in
0
financial reporting
Number of material weaknesses in
0
non-financial reporting
Number of significant deficiencies
0
in financial reporting
Number of significant deficiencies 0
65DSBJ Annual Report 2025
in non-financial reporting
2. Auditor’s report on internal controls
□ Applicable □ N/A
Auditor’s opinion expressed in the auditor’s report on internal controls
We are of the opinion that DSBJ has maintained effective internal control over financial reporting in all material respects pursuant
to the Basic Internal Control Standards for Enterprises and other relevant provisions as of December 31 2025.Disclosure of the auditor’s report on internal controls Disclosed
Disclosure date of the full copy of the auditor’s report on
April 22 2026
internal controls
Full copy of the auditor’s report on internal controls available
www.cninfo.com.cn
at
Type of opinion expressed in the auditor’s report on internal
Standard unqualified opinion
controls
Whether there’s any material weakness in non-financial
No
reporting
Whether the accounting firm issued a modified auditor’s report on internal controls
□ Yes□ No
Whether the auditor’s report on internal controls issued by the accounting firm is consistent with the opinion expressed in the self-
assessment report of the Board of Directors
□ Yes □ No
Whether non-standard audit opinions on internal control were issued for the reporting period or the previous year
□ Yes□ No
XIV. Rectification of Non-compliance Found in the Special Self-examination of Corporate
Governance of the Listed Company
N/A
XV. Disclosure of Environmental Information
Whether the Listed Company and its major subsidiaries are included in the list of enterprises to disclose environmental
information in accordance with law
□ Yes □ No
Number of enterprises included in the list of enterprises to
disclose environmental information in accordance with 9
law
Index for query of environmental information reports disclosed in
No. Enterprise name
accordance with law
Jiangsu Source Communication Technology
Co. Ltd.
2 MFLEX Suzhou Co. Ltd. (Guoxiang factory) Official website of the Department of Ecology and Environment of
3 MFLEX Yancheng Co. Ltd. Jiangsu Province (http://sthjt.jiangsu.gov.cn/) – “EnvironmentalChaowei Microelectronics (Yancheng) Co. Protection Faces” Information Disclosure Platform – Lawful Enterprise
4
Ltd. Information Disclosure
Yancheng Dongshan Precision Manufacturing
5
Co. Ltd.
66DSBJ Annual Report 2025
Yancheng Dongchuang Precision
6
Manufacturing Co. Ltd.
7 Multek Technology (Zhuhai) Co. Ltd. The Department of Ecology and Environment of Guangdong Province
– Guangdong Enterprise Environmental Information Disclosure System
8 Multek Industries Limited
According to Law
9 Multek China Limited (https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex)
XVI. Social Responsibility
For details refer to the 2025 Environmental Social and Corporate Governance (ESG) Report disclosed on www.cninfo.com.cn.XVII. Consolidating and Expanding the Result of Poverty Alleviation and Rural
Revitalization
For details refer to the 2025 Environmental Social and Corporate Governance (ESG) Report disclosed on www.cninfo.com.cn.
67DSBJ Annual Report 2025
Section V Significant Matters
I. Fulfillment of Covenants
1. Covenants made by the actual controllers shareholders affiliates and acquirer of the Company the
Company itself and other related parties that have been fulfilled during the reporting period or have not
yet been completely fulfilled as of the end of the reporting period
□ Applicable □ N/A
Validity
Background of Type of Time of Status of
Covenantor Content of covenant period of the
covenant covenant covenant fulfillment
covenant
Each of the shareholders
YUAN Yonggang and YUAN
Yongfeng as director and
senior executive of the
Company covenants that so
long as I remain a director
and senior executive of the
As of the end
Company I will not transfer
of the
Covenants more than 25% of the total
YUAN reporting
related to shares held by me in the
Yonggang and April 9 Permanently period the
restrictions on Company each year; and if I
YUAN 2010 binding covenantors
the sale of cease to be a director and
Yongfeng have complied
shares senior executive of the
with such
Company I will not transfer
covenants.any shares held by me in the
Company within half a year
and will not transfer more
than 50% of the total shares
Covenant held by me in the Company
relating to through the stock exchange
initial public within 12 months thereafter.offering or
Covenants related to
subsequent
Covenants horizontal competition: Each As of the end
fundraisings
related to of the shareholders YUAN of the
YUAN
horizontal Yonggang YUAN Yongfeng reporting
Yonggang
competition and YUAN Fugen covenants April 9 Permanently period the
YUAN
related-party that I do not directly or 2010 binding covenantors
Yongfeng and
transactions indirectly engage in any have complied
YUAN Fugen
and occupation business in competition with with such
of funds the business actually covenants.conducted by the Company.Covenants related to
Covenants horizontal competition: Each As of the end
related to of the shareholders YUAN of the
YUAN
horizontal Yonggang YUAN Yongfeng reporting
Yonggang
competition and YUAN Fugen covenants June 11 Permanently period the
YUAN
related-party that after the completion of 2018 binding covenantors
Yongfeng and
transactions this material asset have complied
YUAN Fugen
and occupation restructuring I will not with such
of funds directly or through any covenants.affiliate participate or engage
68DSBJ Annual Report 2025
in any business that
substantially competes or
might compete with the
business of the Company; and
if any product manufactured
or business conducted by any
entity wholly owned
controlled or invested by me
in the future competes or
might compete with the
Company at the request of
the Company I will transfer
all of the investment or shares
held by me in such entity
give priority to the Company
or its wholly owned
subsidiary in the acquisition
of such investment or shares
subject to the applicable laws
and regulations and use my
best efforts to procure that the
transfer price will be
determined on an arm’s
length basis; and if I or any of
my affiliates breaches any
covenant set forth above I
will indemnify the Company
and other shareholders for the
damages arising therefrom
according to law.Covenants related to the
regulation and reduction of
related-party transactions:
Each of the shareholders
YUAN Yonggang YUAN
Yongfeng and YUAN Fugen
covenants that (i) I and my
affiliates will avoid or reduce
related-party transactions with
the Company to the maximum
Covenants extent practicable; (ii) with As of the end
related to respect to the related-party of the
YUAN
horizontal transactions that are reporting
Yonggang
competition unavoidable or necessary I June 11 Permanently period the
YUAN
related-party will abide by the principle of 2018 binding covenantors
Yongfeng and
transactions justice fairness and openness have complied
YUAN Fugen
and occupation enter into the relevant with such
of funds agreements according to law covenants.perform the legal procedures
pursuant to the applicable
laws regulations normative
documents the Articles of
Association and other
relevant provisions of the
Company ensure that such
related-party transactions are
fair comply with the
regulations and will not
69DSBJ Annual Report 2025
damage the legitimate rights
and interests of the Company
and other shareholders and
make the relevant information
disclosures promptly in
accordance with the
requirements of the applicable
laws regulations and
normative documents; and
(iii) I will exercise the
shareholder rights in strict
accordance with the Company
Law and other applicable laws
and regulations and the
relevant provisions of the
Articles of Association of the
Company and abstain from
the voting on the related-party
transactions involving me and
other entities controlled by
me at the general meeting of
the Company in accordance
with the relevant provisions.I. Within six months from the
base date for pricing (March
13 2024) for the private
placement of shares I and the
affiliates under my control
have not sold the shares of
DSBJ; II. From the base date
for pricing to the expiration of
eighteen months after the
private placement of DSBJ is
completed I and the affiliates
under my control will neither
sell DSBJ’s shares in any As of the end
form nor have any plan of of the
Covenant not
YUAN selling DSBJ’s shares; and reporting
to sell the
Yonggang and III. My covenant is an December Permanently period the
Company’s
YUAN irrevocable covenant which 18 2024 binding covenantors
shares during a
Yongfeng shall be binding on me and have complied
specific period
the affiliates under my control with such
from the execution date of covenants.this covenant and the
transferee under the share
transfer described above shall
inherit this covenant; if I and
the affiliates under my control
sell shares in violation of this
covenant all the proceeds
from selling such shares shall
be owned by DSBJ and I shall
be fully responsible for all the
legal liabilities arising
therefrom.YUAN Covenant regarding the As of the end
Other Other October Permanently
Yonggang remedial measures against of the
covenants covenants 10 2019 binding
YUAN dilution of current earnings reporting
70DSBJ Annual Report 2025
Yongfeng caused by the private period the
ZHAO placement: Each of the covenantors
Xiutian directors and senior have complied
SHAN Jianbin executives of the Company with such
WANG Xu covenants that: (i) I will not covenants.MAO Xiaoyan transfer benefits to any other
and MA entity or individual without
Liqiang compensation or on unfair
terms or otherwise damage
the interests of the Company;
(ii) I will exercise self-
discipline in consumption in
performing my duties; (iii) I
will not use the assets of the
Company to engage in any
investment or consumption
activities not in connection
with my duties; (iv) I will link
the compensation system
adopted by the Board of
Directors or the
Compensation Committee
with the implementation of
the Company’s remedial
measures against dilution of
current earnings; (v) if the
Company implements any
share incentive plan in the
future I will link the vesting
conditions under such share
incentive plan with the
implementation of the
Company’s remedial
measures against dilution of
current earnings; and (vi) I
will seriously implement the
Company’s remedial
measures against dilution of
current earnings and abide by
the relevant covenants made
by me; and if I breach any
covenant set forth above I
will indemnify the Company
or the investors for the losses
arising therefrom according to
law and accept the
punishments that the
competent regulatory
authorities may impose on
me.Covenant regarding the As of the end
remedial measures against of the
YUAN
dilution of current earnings reporting
Yonggang
Other caused by the private October Permanently period the
YUAN
covenants placement: Each of the 17 2019 binding covenantors
Yongfeng and
controlling shareholders and have complied
YUAN Fugen
actual controllers of the with such
Company covenants that I covenants.
71DSBJ Annual Report 2025
will not interfere with the
management and operation of
the Company beyond my
powers or infringe on the
interests of the Company; and
as the person responsible for
the serious implementation of
the remedial measures against
dilution of current earnings if
I breach or refuse to fulfill
any covenant set forth above
I will assume the relevant
liabilities according to law.To ensure the effective
implementation of the
remedial measures against
dilution of earnings to be
taken by the Company each
of the controlling
shareholders and actual
controllers of the Companycovenants that: “(i) I will notinterfere with the
management and operation of
the Company beyond my
powers or infringe on the
interests of the Company; (ii)
from the date of this Letter of
Undertaking till the
completion of this offering in
case of any new regulatory
provisions promulgated by
As of the end
the CSRC or the SZSE
of the
YUAN regarding the remedial
reporting
Yonggang measures against dilution of
Other March 12 Permanently period the
YUAN earnings and related
covenants 2024 binding covenantors
Yongfeng and covenants as a result of
have complied
YUAN Fugen which the covenants set forth
with such
above no longer comply with
covenants.such new provisions I will
make additional covenants in
accordance with such new
provisions; and (iii) I will
seriously implement the
remedial measures against
dilution of earnings adopted
by the Company and fulfill
my covenants in connection
therewith and if I breach or
refuse to fulfill any covenant
set forth above accept the
penalties or other regulatory
actions that may be imposed
or taken by the CSRC the
SZSE or other competent
securities authorities against
me and indemnify the
Company or the investors for
72DSBJ Annual Report 2025
the losses arising therefromaccording to law.”
To ensure the effective
implementation of the
remedial measures against
dilution of earnings to be
taken by the Company each
of the directors and senior
executives of the Companycovenants that: “(i) I will nottransfer benefits to any other
entity or individual without
compensation or on unfair
terms or otherwise damage
the interests of the Company;
(ii) I will exercise self-
discipline in consumption in
performing my duties; (iii) I
will not use the assets of the
Company to engage in any
investment or consumption
activities not in connection
with my duties; (iv) I will link
the compensation system
adopted by the Board of
YUAN Directors or the
Yonggang Compensation Committee As of the end
YUAN with the implementation of of the
Yongfeng the Company’s remedial reporting
ZHAO Other measures against dilution of March 12 Permanently period the
Xiutian covenants earnings; (v) if the Company 2024 binding covenantors
SHAN Jianbin implements any share have complied
WANG Xu incentive plan in the future I with such
and MAO will link the vesting covenants.Xiaoyan conditions under such share
incentive plan with the
implementation of the
Company’s remedial
measures against dilution of
earnings; (vi) from the date of
this Letter of Undertaking till
the completion of this
offering in case of any new
regulatory provisions
promulgated by the CSRC or
the SZSE regarding the
remedial measures against
dilution of earnings and
related covenants as a result
of which the covenants set
forth above no longer comply
with such new provisions I
will make additional
covenants in accordance with
such new provisions; and (vii)
I will seriously implement the
remedial measures against
dilution of current earnings
73DSBJ Annual Report 2025
adopted by the Company and
fulfill my covenants in
connection therewith and if I
breach any covenant set forth
above indemnify the
Company or the investors for
the losses arising therefromaccording to law.”
Whether the
covenants have
Yes
been fulfilled
on time
If any covenant
fails to be
fulfilled on
time please
explain the N/A
reason and the
relevant actions
to be taken in
detail
2. If the Company has made any profit forecast on its assets or project and the reporting period falls
within the period of such profit forecast explanation about whether the goal has been achieved and the
related reasons
□ Applicable□ N/A
3. Performance covenants of the Company
□ Applicable□ N/A
II. Occupation by the Controlling Shareholders and their Affiliates of the Funds of the
Listed Company for Non-operating Purpose
□ Applicable□ N/A
Our controlling shareholders and their affiliates have not occupied our funds for non-operating purposes during the reporting
period.III. External Guarantees in Violation of the Regulations
□ Applicable□ N/A
We have not provided any external guarantee in violation of the applicable regulations during the reporting period.IV. Explanation by the Board of Directors about the Most Recent Modified Auditor’s
Report
□ Applicable□ N/A
74DSBJ Annual Report 2025
V. Explanation by the Board of Directors and the Independent Directors (if any) about the
Modified Auditor’s Report Issued by the Accounting Firm for the Reporting Period
□ Applicable□ N/A
VI. Changes in the Accounting Policies and Accounting Estimates Compared with the
Financial Report for the Previous Year or Correction of Material Accounting Errors
□ Applicable□ N/A
During the reporting period there wasn’t any change in the accounting policies or accounting estimates or correction of material
accounting errors.VII. Explanation of Changes in the Scope of Consolidation Compared with the Financial
Report for the Previous Year
□ Applicable □ N/A
Company name Method of acquisition or disposal
Source Photonics Acquisition
GMD Group Acquisition
DSBJ Europe Holding Newly established
DSBJ International Deregistration
VIII. Engagement and Termination of Engagement of Accounting Firm
Accounting firm currently engaged
Name of domestic accounting firm Pan-China Certified Public Accountants LLP
Remuneration of domestic accounting firm (in RMB 0’000) 395
Consecutive years in which the domestic accounting firm has provided auditing
15
service
Certified public accountants of the domestic accounting firm ZHANG Yang and FU Zhenlong
Consecutive years in which the certified public accountants of the domestic
44
accounting firm have provided auditing service
Name of foreign accounting firm (if any) N/A
Remuneration of foreign accounting firm (if any) (in RMB 0’000)
Consecutive years in which the foreign accounting firm (if any) has provided
N/A
auditing service
Certified public accountants of the foreign accounting firm (if any) N/A
Consecutive years in which the certified public accountants of the foreign
N/A
accounting firm (if any) have provided auditing service
Whether a new accounting firm was engaged during the reporting period
□ Yes□ No
Engagement of accounting firm for auditing internal controls financial advisor or sponsor
□ Applicable □ N/A
During the reporting period we engaged Pan-China Certified Public Accountants LLP as the auditor of internal controls
responsible for the audit of our internal controls in 2025.
75DSBJ Annual Report 2025
IX. Risk of Delisting after Disclosure of the Annual Report
□ Applicable□ N/A
X. Matters Relating to Bankruptcy and Reorganization
□ Applicable□ N/A
We have not been involved in any bankruptcy or reorganization proceedings during the reporting period.XI. Material Litigations and Arbitrations
□ Applicable□ N/A
We have not been involved in any material litigation or arbitration proceedings during the reporting period.XII. Punishments and Rectifications
□ Applicable□ N/A
We have not been involved in any punishment and rectification during the reporting period.XIII. Credit Standing of the Company and its Controlling Shareholders and Actual
Controllers
□ Applicable□ N/A
XIV. Material Related-party Transactions
1. Related-party transactions relating to day-to-day operation
□ Applicable□ N/A
There has been no related-party transaction relating to day-to-day operation during the reporting period.
2. Related-party transactions involving the acquisition or sale of assets or equities
□ Applicable□ N/A
There has been no related-party transaction involving the acquisition or sale of assets or equities during the reporting period.
3. Related-party transactions involving joint external investment
□ Applicable□ N/A
There has been no related-party transaction involving joint external investment during the reporting period.
4. Debts owed by and to related parties
□ Applicable□ N/A
There has been no debt owed by or to related parties during the reporting period.
76DSBJ Annual Report 2025
5. Dealings with affiliated financial companies
□ Applicable□ N/A
There has been no deposit loan facility or other financial businesses between us and any of our affiliated financial companies.
6. Dealings between financial companies controlled by the Company and its affiliates
□ Applicable□ N/A
There has been no deposit loan facility or other financial businesses between any of our controlled financial companies and
affiliates.
7. Other material related-party transactions
□ Applicable □ N/A
To implement the idea of green development and achieve the objective of sustainable development we held the 23rd Meeting
of the 6th Board of Directors on July 11 2025 which considered and adopted the Proposal for External Investment and Related-
party Transactions approving DSBJ Pte. Ltd. (hereinafter referred to as “DSG”) a wholly owned subsidiary of the Company to
receive the shares of China Renewable Power Infrastructure LPF (hereinafter referred to as the “CRPIF Fund”) to be invested by
Hong Kong Dongshan Investment Holdings Limited (hereinafter referred to as “Hong Kong Investment Holdings”). The CRPIF
Fund mainly invests in new energy infrastructure like photovoltaic wind power etc. and supporting energy storage projects. For
its target scale of no more than USD 650 million DSG will invest no more than USD 30.00 million to subscribe to its fund shares
with the funds owned by the Company.Query for interim reports on material related-party transactions on the information disclosure website
Website for disclosure of interim
Name of interim announcement Disclosure date of interim announcement
announcement
Announcement on External Investment
July 12 2025 www.cninfo.com.cn
and Related-party Transaction
XV. Particulars and Performance of Material Contracts
1. Trusteeship contracting and leases
(1) Trusteeship
□ Applicable□ N/A
No such case during the reporting period.
(2) Contracting
□ Applicable□ N/A
No such case during the reporting period.
(3) Leases
□ Applicable□ N/A
77DSBJ Annual Report 2025
No such case during the reporting period.
2. Material guarantees
□ Applicable □ N/A
In RMB 0’000
External guarantees provided by the Company and its subsidiaries (excluding those provided for the subsidiaries)
Disclosure
Whether
date of
Counter or not
announcement Maximum Effective Actual Collateral Whether
Type of guarantee Term of provided
Obligor of the amount date of amount (if or not
guarantee (if guarantee for a
maximum guaranteed guarantee guaranteed applicable) expired
applicable) related
amount
party
guaranteed
Suzhou Toprun
Joint and
Electric
3000 2440 several
Equipment Co.guarantee
Ltd.Total amount of
Total amount of external external guarantee
guarantee approved during the 3000 actually provided 4800
reporting period (A1) during the reporting
period (A2)
Total amount of
Total amount of external external guarantee
guarantee approved as at the end 3000 actually provided as at 2440
of the reporting period (A3) the end of the reporting
period (A4)
Guarantees provided by the Company for its subsidiaries
Disclosure
Whether
date of
Counter or not
announcement Maximum Effective Actual Collateral Whether
Type of guarantee Term of provided
Obligor of the amount date of amount (if or not
guarantee (if guarantee for a
maximum guaranteed guarantee guaranteed applicable) expired
applicable) related
amount
party
guaranteed
Dragon
Electronix
Holdings Inc. 200000 150800
and its
subsidiaries
Hong Kong
Dongshan
Holding Limited 127000 39700
and its
subsidiaries
Multek Group
(Hong Kong)
700000323258.98
Limited and its
subsidiaries
Source
Photonics
10000073395.62
Holdings
(Cayman)
78DSBJ Annual Report 2025
Limited and its
subsidiaries
Chaowei
Microelectronics
2000010000
(Yancheng) Co.Ltd.Suzhou JDI
2000014800
Electronics Inc.Mutto Optronics
Technology Co. 50000 15505.7
Ltd.Suzhou RF Top
Electronic
50001129.46
Communication
Co. Ltd.Suzhou
Chengjia
Precision 5000 1000
Manufacturing
Co. Ltd.Suzhou
Yongchuang
Communication 20000 4714.42
Technology Co.Ltd.Yancheng
Dongchuang
Precision 140000 85586.9
Manufacturing
Co. Ltd.Yancheng
Dongshan
Precision 60000 44687.87
Manufacturing
Co. Ltd.Groupe
Mecanique
Decoupage S.A. 50000 4250.47
and its
subsidiaries
Total amount of
Total amount of guarantee
guarantee actually
approved to be provided for
1500000 provided for 1129401.49
subsidiaries during the reporting
subsidiaries during the
period (B1)
reporting period (B2)
Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
1500000767018.95
subsidiaries as at the end of the subsidiaries as at the
reporting period (B3) end of the reporting
period (B4)
Guarantees provided by subsidiaries for each other
Disclosure CounterMaximum Effective Actual Collateral Whether Whether
date of Type of guarantee Term ofObligor amount date of amount (if or not or not
announcement guarantee (if guaranteeguaranteed guarantee guaranteed applicable) expired provided
of the applicable) for a
79DSBJ Annual Report 2025
maximum related
amount party
guaranteed
Total amount of
Total amount of guarantee
guarantee actually
approved to be provided for
provided for
subsidiaries during the reporting
subsidiaries during the
period (C1)
reporting period (C2)
Total amount of
Total amount of guarantee guarantee actually
approved to be provided for provided for
subsidiaries as at the end of the subsidiaries as at the
reporting period (C3) end of the reporting
period (C4)
Total amount of guarantee provided by the Company
Total amount of
Total amount of guarantee guarantee actually
approved during the reporting 1503000 provided during the 1134201.49
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total amount of
Total amount of guarantee guarantee actually
approved as at the end of the 1503000 provided as at the end 769458.95
reporting period (A3+B3+C3) of the reporting period
(A4+B4+C4)
Ratio of the total amount of guarantee (A4+B4+C4) to the
35.85%
net assets of the Company
Incl.:
Outstanding guarantees provided for shareholders actual
0
controllers and their affiliates (D)
Outstanding guarantees directly or indirectly provided for
203170.94
obligors whose debt-to-assets ratio exceeds 70% (E)
Portion of the total amount of guarantee in excess of 50% of
0
the net assets (F)
Total (D+E+F) 203170.94
Explanation about the joint and several liabilities that have
been or might be incurred in respect of outstanding N/A
guarantees during the reporting period (if any)
Explanation about external guarantees provided in
N/A
contravention of the established procedures (if any)
3. Entrusted management of cash assets
(1) Entrusted wealth management
□ Applicable □ N/A
Particulars of entrusted wealth management during the reporting period
In RMB 0’000
80DSBJ Annual Report 2025
Balance of entrusted wealth
Type of product Risk characteristics management during the Overdue amount
reporting period
Bank wealth management
No risk 52317.69
product
Assets management by financial institutions entrusted by the Company as a single principal or high-risk entrusted wealth
management with low security and low liquidity of investment
□ Applicable□ N/A
(2) Entrusted loans
□ Applicable□ N/A
No such case during the reporting period.
4. Other material contracts
□ Applicable□ N/A
We have not entered into any other material contract during the reporting period.XVI. Use of Offering Proceeds
□ Applicable □ N/A
1. Summary of use of offering proceeds
□ Applicable □ N/A
In RMB 0’000
Total
Total
Ratio amou Aggre
Perce amou
of nt of gate
ntage nt of
Total used offeri amou
Aggre of Purpo offeri
amou offeri ng nt of
gate offeri Total se and ng
nt of ng proce offeri
amou ng amou where proce
Net offeri proce eds ng
Listin Total nt of proce nt of abouts eds
Year Metho offeri ng eds at the proce
g date offeri offeri eds unuse of that
of d of ng proce the purpo eds
of ng ng the d unuse has
offeri offeri proce eds end of se of the
securi proce proce purpo offeri d remai
ng ng eds used the which purpo
ties eds eds se of ng offeri ned
(1) in the report was se of
alread which proce ng unuse
curren ing chang which
y used has eds proce d for
t period ed in has
(2) been eds more
period (3) = the been
chang than
(2) / curren chang
ed two
(1) t ed
years
period
Privat
e
June
place 1404 1391 1391 1391 100.0
2025 27 0 0 0.00% 0 N/A 0
ment 00 51.25 57.06 57.06 0%
2025
of
shares
81DSBJ Annual Report 2025
1404139113911391100.0
Total -- -- 0 0 0.00% 0 -- 0
0051.2557.0657.060%
Description of the overall use of offering proceeds:
With the approval of the CSRC under the Reply on the Registration of Private Placement of Shares by Suzhou Dongshan
Precision Manufacturing Co. Ltd. (Zheng Jian Xu Ke [2025] No. 911) we privately offered 125693822.00 RMB-denominated
ordinary A-shares at the offer price of RMB 11.17 per share to YUAN Yonggang and YUAN Yongfeng through the lead
underwriter Guotai Haitong Securities Co. Ltd. and raised RMB 1403999991.74 in total and after deduction of the
underwriter’s fee and sponsor’s fee (tax inclusive) totaling RMB 8480000.00 (excluding the prepayment of RMB 1060000.00)
the balance of the offering proceeds RMB 1395519991.74 was remitted to our supervisory account of offering proceeds by
Guotai Haitong Securities Co. Ltd. on June 11 2025. After the deduction of the information disclosure expenses accountant’s fee
attorney’s fee issuance registration and other external costs directly relating to the offering of equity securities totaling RMB
3487447.01 (tax exclusive) and after the deduction of the sponsor’s fees of RMB 1000000.00 (tax exclusive) prepaid by the
Company with its own funds the amount of net offering proceeds was RMB 1391512544.73. Pan-China Certified Public
Accountants LLP verified the receipt of such offering proceeds and issued the Capital Verification Report (PCCPA Capital
Verification [2025] No. 5-2).
2. Committed investment projects using offering proceeds
□ Applicable □ N/A
In RMB 0’000
Aggr
Com Progr Cum Whet
Whet egate
mitte ess of ulativ her
her amou Whet
d inves Date e there’
the Amo nt Inco her
inves Total Total tment when benef s any
proje unt alrea me the
Nam Listin tment com inves as of the its signif
ct has inves dy earne proje
e of g proje Natur mitte tment the proje realiz icant
been ted in inves d in ct has
finan date ct e of d amou end ct is ed as chan
chan the ted as the produ
cing of and proje inves nt as of the ready of the ge in
ged curre of the curre ced
proje secur use ct tment adjus repor for its end the
or nt end nt the
ct ities of amou ted ting inten of the feasi
partia perio of the perio desir
over- nt (1) perio ded repor bility
lly d repor d ed
raise d (3) use ting of the
chan ting result
d =(2)/( perio proje
ged perio
funds 1) d ct
d (2)
Committed investment project
Reple Reple
Priva
nish nish
te
ment ment
place June
of of 1404 1404 1391 1391 100.0
ment 27 No 0 0 N/A No
worki worki 00 00 57.06 57.06 0%
of 2025
ng ng
share
capit capit
s
al al
1404140413911391
Subtotal -- -- -- 0 0 -- --
000057.0657.06
Use of over-raised funds
June
N/A 27 N/A N/A No N/A No
2025
82DSBJ Annual Report 2025
1404140413911391
Total -- -- -- 0 0 -- --
000057.0657.06
Failure to
meet the
scheduled
progress and
produce the
desired result
and reason
thereof (please
describe on a
project-by-
N/A
project basis
including the
reason for
selecting N/A
in the column“whether theproject has
produced the
desiredresult”)
Reason for
significant
change in the N/A
feasibility of
the project
Amount and
use of over-
raised offering
N/A
proceeds and
progress of
use thereof
Cases of
changing the
purpose of
offering
proceeds
without
N/A
permission or
misappropriati
ng offering
proceeds in
violation of
regulations
Change in the
place of the
committed N/A
investment
project
Adjustment of
the method of
implementatio N/A
n of the
committed
investment
83DSBJ Annual Report 2025
project
Funds pre-
invested in the
investment
N/A
project and
replacement
thereof
Temporary
replenishment
of working
capital with N/A
the idle
offering
proceeds
Amount of
surplus
offering N/A
proceeds and
reason thereof
Purpose and
whereabouts
of unused None
offering
proceeds
Problems or
any other
issues in the
use and None
disclosure of
offering
proceeds
3. Changes in the committed investment projects using offering proceeds
□ Applicable□ N/A
We made no change in the committed investment projects using offering proceeds.
4. Review opinions of intermediaries on the deposit and use of offering proceeds
□ Applicable□ N/A
XVII. Other Significant Matters
□ Applicable□ N/A
There’s no other significant matter needing to be explained for the reporting period.XVIII. Significant Matters of Subsidiaries
□ Applicable□ N/A
84DSBJ Annual Report 2025
Section VI Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in shares
In Shares
Before the change +/- After the change
Capitalization
Bonus
Number % New shares of capital Others Subtotal Number %
shares
reserves
I. Non-
31959198718.73%12569382212569382244528580924.31%
tradable shares
1. Shares
held by the
State
2. Shares
held by State-
owned
corporations
3. Shares
held by other
31959198718.73%12569382212569382244528580924.31%
domestic
investors
Incl.:
Shares held by
domestic non-
State-owned
corporations
Shares
held by
domestic 319591987 18.73% 125693822 125693822 445285809 24.31%
natural
persons
4. Shares
held by
foreign
investors
Incl.:
Shares held by
foreign
corporations
Shares
held by
foreign natural
persons
II. Tradable
138632172381.27%138632172375.69%
shares
1. RMB- 1386321723 81.27% 1386321723 75.69%
85DSBJ Annual Report 2025
denominated
ordinary
shares
2. Foreign
currency-
denominated
shares listed
domestically
3. Foreign
currency-
denominated
shares listed
overseas
4. Others
III. Total
1705913710100.00%1256938221256938221831607532100.00%
shares
Cause of change
□ Applicable □ N/A
With the approval of the Shenzhen Stock Exchange and the CSRC 125693822 RMB-denominated ordinary shares issued by the
Company at the issuance price of RMB 11.17 per share were listed on the Shenzhen Stock Exchange on June 27 2025; after the
issuance the total shares of the Company increased from 1705913710 shares to 1831607532 shares.Approval of changes in shares
□ Applicable □ N/A
On March 10 2025 the Company received the Notification Letter of the Opinions of the Review Center on the Private Placement
of Shares by Suzhou Dongshan Precision Manufacturing Co. Ltd. issued by the Listing Review Center of the Shenzhen Stock
Exchange stating that the listing review institution of the Shenzhen Stock Exchange reviewed the application documents for
private placement of shares and concluded that the Company met the issuance conditions listing conditions and information
disclosure requirements. On April 28 2025 the Company received the Reply on the Registration of Private Placement of Shares
by Suzhou Dongshan Precision Manufacturing Co. Ltd. (Zheng Jian Xu Ke [2025] No. 911) (effective date of registration: April
23 2025) which approved the request for registration of private placement of shares by the Company.
Registration of changes in shares
□ Applicable □ N/A
We have completed the registration and custody formalities for the newly issued shares with China Securities Depository and
Clearing Co. Ltd. Shenzhen Branch on June 18 2025 and China Securities Depository and Clearing Co. Ltd. Shenzhen Branch
has issued a certificate of securities registration. The nature of the newly issued shares is non-tradable shares with a lock-up
period of 36 months from the listing date of the shares under the private placement for the 2 persons purchasing such shares.Effect of changes in shares on financial indicators including the basic earnings per share diluted earnings per share net assets per
share attributable to ordinary shareholders of the Company etc. in the last year and the last period
? Applicable□ N/A
1. During the reporting period the Company repurchased 4202200 shares which based on the net assets at the end of 2025 led
to an increase of RMB 0.03/share for the net assets per share attributable to ordinary shareholders of the Company. According to
86DSBJ Annual Report 2025
the net profit attributable to ordinary shareholders of the Company in 2025 this repurchase of shares has little impact on the basic
earnings per share and diluted earnings per share.
2. During the reporting period the Company issued 125693822 new shares which based on the net assets at the end of 2025 led
to a decrease of RMB 0.87/share for the net assets per share attributable to ordinary shareholders of the Company. According to
the net profit attributable to ordinary shareholders of the Company in 2025 this issuance of new shares reduced the basic earnings
per share and diluted earnings per share by RMB 0.03/share.Other information that should be disclosed at the discretion of the Company or at the request of the securities regulatory authorities
□ Applicable□ N/A
2. Changes in non-tradable shares
□ Applicable □ N/A
In Shares
Non-
tradable
Increase in non-
Name of Opening non- shares Closing non- Date of
tradable shares in Reason for restriction
shareholder tradable shares released in tradable shares release
the current period
the current
period
YUAN Private placement of
1516696471005550582522247052028/6/27
Yonggang 100555058 shares
YUAN Private placement of
166791115251387641919298792028/6/27
Yongfeng 25138764 shares
Total 318460762 125693822 444154584 -- --
II. Offering and Listing of Securities
1. Offering of securities (other than preferred shares) during the reporting period
□ Applicable □ N/A
Name of
Date Issuance Number of End
stocks and Discl
of price (or Number of Listing shares date of
derivative Index of disclosure osure
issuan interest shares date approved for transac
securities date
ce rate) listing tion
therefrom
Stocks
RMB
2025- 2025- www.cninfo.com.cn Announcement on the 2025-
DSBJ 11.17/sha 125693822 125693822
6-10 6-27 Listing of A-shares under Private Placement 6-25
re
Description of offering of securities (other than preferred shares) during the reporting period
With the approval of the Shenzhen Stock Exchange and the CSRC 125693822 RMB-denominated ordinary shares issued by the
Company at the issuance price of RMB 11.17 per share were listed on the Shenzhen Stock Exchange on June 27 2025; after the
issuance the total shares of the Company increased from 1705913710 shares to 1831607532 shares.
87DSBJ Annual Report 2025
2. Changes in the total number of shares shareholding structure and structure of assets and liabilities of
the Company
□ Applicable□ N/A
3. Outstanding employee shares
□ Applicable□ N/A
III. Shareholders and Actual Controllers
1. Number of shareholders and shareholding structure of the Company
In Shares
Total
Total number number of
of ordinary preferred
Total number of preferred
Total shareholders shareholders
shareholders whose voting
number of at the end of whose voting
rights had been restituted at
ordinary the month rights had
the end of the month
shareholders 81673 immediately 108519 been 0 0
immediately preceding the
at the end of preceding the restituted at
disclosure date of this
the reporting disclosure the end of
Annual Report (if any)
period date of this the reporting
(Note 8)
Annual period (if
Report any) (Note
8)
Shareholding by shareholders holding more than 5% of the shares or the top 10 shareholders (excluding the shares lent via refinancing)
No. of Pledge attachment or freeze
Changes in
shares held
shareholding No. of non- No. of
Name of Status of Shareholding at the end of
during the tradable tradable
shareholder shareholder percentage the Status of
reporting shares held shares held Number
reporting shares
period
period
Domestic
YUAN
natural 16.53% 302781254 100055058 252224705 50556549 Pledge 104828000
Yonggang
person
Domestic
YUAN
natural 13.51% 247526917 25138764 191929879 55597038 Pledge 56883800
Yongfeng
person
Domestic
YUAN
natural 3.21% 58796052 58796052 N/A
Fugen
person
Hong Kong
Securities
Foreign
Clearing 2.26% 41396650 41396650 N/A
corporation
Company
Limited
China Life
Insurance
Company Others 1.25% 22974707 22974707 N/A
Ltd. –
Traditional –
88DSBJ Annual Report 2025
General
Insurance
Product –
005L –
CT001
Shanghai
New China
Life
Insurance
Company
Limited –
Traditional –
Others 1.13% 20660374 20660374 N/A
General
Insurance
Product –
018L –
CT001
Shenzhen
Industrial
and
Commercial
Bank of
China
Limited –
Huatai-
Others 1.12% 20451440 20451440 N/A
PineBridge
CSI 300
Exchange-
Traded Index
Securities
Investment
Fund
China
Merchants
Bank Co.Ltd. –
Ruiyuan
Growth Others 1.07% 19570610 19570610 N/A
Value
Hybrid
Securities
Investment
Fund
New China
Life
Insurance
Company
Limited –
Participating Others 0.89% 16293622 16293622 N/A
– Individual
Participating
– 018L –
FH002
Shenzhen
China
Construction
Others 0.82% 15109347 15109347 N/A
Bank
Corporation
89DSBJ Annual Report 2025
– E-Fund
CSI 300
Exchange-
Traded Index
Sponsored
Securities
Investment
Fund
Strategic investors or
general corporations
becoming the top 10
N/A
shareholders as a result of
rights issue (if any) (Note
3)
Among the shareholders listed above YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen
Affiliates or concert parties and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen YUAN Yongfeng and
among the shareholders YUAN Yonggang are our actual controllers. We are not aware whether there are affiliates or concert
listed above parties within the meaning of the Administrative Measures for the Takeover of Listed Companies among
other shareholders listed above.Delegation or waiver of
voting rights or ownership
N/A
of voting rights by or to the
shareholders listed above
Special explanation about
any dedicated account for
repurchase opened by any N/A
top 10 shareholder (if any)
(Note 10)
Shareholding by the top 10 holders of tradable shares (excluding the shares lent via refinancing or under executive lock-up)
Type and number of shares
Name of shareholder No. of tradable shares held at the end of the reporting period Type of
Number
shares
RMB-
denominated
YUAN Fugen 58796052 58796052
ordinary
share
RMB-
YUAN Yongfeng 55597038
denominated 55597038
ordinary
share
RMB-
YUAN Yonggang 50556549
denominated 50556549
ordinary
share
RMB-
Hong Kong Securities denominated
4139665041396650
Clearing Company Limited ordinary
share
China Life Insurance
RMB-
Company Ltd. – Traditional
denominated
– General Insurance 22974707 22974707
ordinary
Product – 005L – CT001
share
Shanghai
New China Life Insurance RMB-
2066037420660374
Company Limited – denominated
90DSBJ Annual Report 2025
Traditional – General ordinary
Insurance Product – 018L – share
CT001 Shenzhen
Industrial and Commercial
RMB-
Bank of China Limited –
denominated
Huatai-PineBridge CSI 300 20451440 20451440
ordinary
Exchange-Traded Index
share
Securities Investment Fund
China Merchants Bank Co. RMB-
Ltd. – Ruiyuan Growth denominated
1957061019570610
Value Hybrid Securities ordinary
Investment Fund share
New China Life Insurance
RMB-
Company Limited –
denominated
Participating – Individual 16293622 16293622
ordinary
Participating-018L-FH002
share
Shenzhen
China Construction Bank
RMB-
Corporation – E-Fund CSI
denominated
300 Exchange-Traded 15109347 15109347
ordinary
Index Sponsored Securities
share
Investment Fund
Affiliates or concert parties
Among the shareholders listed above YUAN Yonggang and YUAN Yongfeng are sons of YUAN Fugen
among the top 10 holders of
and YUAN Yongfeng is the elder brother of YUAN Yonggang. YUAN Fugen YUAN Yongfeng and
tradable shares and among
YUAN Yonggang are our actual controllers. We are not aware whether there are affiliates or concert
the top 10 holders of
parties within the meaning of the Administrative Measures for the Takeover of Listed Companies among
tradable shares and the top
other shareholders listed above.
10 shareholders
Securities margin trading
conducted by the top 10
N/A
ordinary shareholders (if
any) (Note 4)
Share lending by shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 holders of tradable
shares via refinancing
□ Applicable□ N/A
Changes in the top 10 shareholders and the top 10 holders of tradable shares compared with the previous period due to share
lending under refinancing/repayment
□ Applicable□ N/A
Whether the top 10 ordinary shareholders or the top 10 holders of tradable shares conducted any transaction under the repurchase
agreement during the reporting period
□ Yes□ No
No top 10 ordinary shareholder or top 10 holder of tradable shares has conducted any transaction under the repurchase agreement
during the reporting period.
2. Controlling shareholders of the Company
Nature of controlling shareholders: Natural persons
Type of controlling shareholders: Natural persons
Name of controlling shareholder Nationality Whether or not having obtainedresidency in any other country or region
YUAN Yonggang Hong Kong China Yes
YUAN Yongfeng China No
91DSBJ Annual Report 2025
YUAN Fugen China No
Main occupation and title YUAN Yonggang is our Chairman and YUAN Yongfeng is our director and GeneralManager.Shares held in other domestic or
foreign listed companies controlled
or invested by the controlling YUAN Yonggang and his wife WANG Wenjuan are the actual controllers of Landun
shareholders during the reporting Photoelectron (300862) and Anfu Technology (603031).period
Change in the controlling shareholders during the reporting period
□ Applicable□ N/A
There has been no change in our controlling shareholders during the reporting period.
3. Actual controllers of the Company and their concert parties
Nature of actual controllers: Domestic natural persons overseas natural persons
Type of actual controllers: Natural persons
Whether or not having
Relationship with the actual
Name of the actual controller Nationality obtained residency in any
controller
other country or region
YUAN Yonggang Himself Hong Kong China Yes
YUAN Yongfeng Himself China No
YUAN Fugen Himself China No
See “III. Shareholders and Actual Controllers – 2. Controlling shareholders of the Company”
Main occupation and title
above.Domestic or foreign listed
companies that have been
See “III. Shareholders and Actual Controllers – 2. Controlling shareholders of the Company”
controlled by the actual
above.controllers in the past 10
years
Change in the actual controllers during the reporting period
□ Applicable□ N/A
There has been no change in our actual controllers during the reporting period.Diagram of ownership and control relationship between the Company and its actual controllers:
Concert parties
YUAN Yonggang YUAN Yongfeng YUAN Fugen
(16.53% shares) (13.51% shares) (3.21% shares)
Suzhou Dongshan Precision Manufacturing Co. Ltd.
92DSBJ Annual Report 2025
The actual controllers control the Company through trust or other assets management methods
□ Applicable□ N/A
4. Whether the controlling shareholder or largest shareholder of the Company and its concert parties
have pledged more than 80% of shares held by them in the Company in aggregate
□ Applicable□ N/A
5. Other corporate shareholders owning over 10% of shares in the Company
□ Applicable□ N/A
6. Restrictions on the sale of shares by the controlling shareholder actual controller parties involved in
restructuring and other covenantors
□ Applicable□ N/A
IV. Share Repurchases Effected during the Reporting Period
Progress of share repurchases
□ Applicable □ N/A
Amount of
Number of Ratio of shares
shares
Disclosure shares Use of Number of repurchased to the
proposed to Proposed
date of the proposed to % of total shares shares target shares under
be period of
repurchase be share capital repurchase already the equity
repurchased repurchase
plan repurchased d repurchased incentive plan (if
(in RMB
(share) any)
0’000)
12 months
following the
Employee
date when the
stock
share
April 10 2050000- 0.12%- ownership
10000-20000 repurchase 4202200
2025 4100000 0.24% plan or
plan was
equity
approved by
incentive
the Board of
Directors
Progress of sale or repurchase of shares by call auction
□ Applicable□ N/A
V. Preferred Shares
□ Applicable□ N/A
We did not have any preferred share during the reporting period.
93DSBJ Annual Report 2025
Section VII Bonds
□ Applicable□ N/A
94DSBJ Annual Report 2025
Section VIII Financial Report
I. Auditor’s Report
Audit opinion Standard unqualified opinion
Signing date of the auditor’s report April 20 2026
Auditor Pan-China Certified Public Accountants LLP
Document number of the auditor’s report PCCPA Audit [2026] No. 5-37
Name of certified public accountants ZHANG Yang and FU Zhenlong
Text
To shareholders of Suzhou Dongshan Precision Manufacturing Co. Ltd.I. Opinion
We have audited the financial statements of Suzhou Dongshan Precision Manufacturing Co. Ltd. (the “Company”) which
comprise the consolidated and standalone balance sheets as of December 31 2025 consolidated and standalone income statements
consolidated and standalone cash flow statements and consolidated and standalone statements of changes in owners’ equity for the
year ended December 31 2025 and notes to the financial statements.In our opinion the accompanying financial statements are prepared and present fairly in all material respects the
consolidated and standalone financial positions of the Company as of December 31 2025 and its consolidated and standalone
results of operations and cash flows for the year ended December 31 2025 in accordance with the Accounting Standards for
Business Enterprises (the “CASBEs”).II. Basis for opinion
We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Ourresponsibilities under those standards are further described in “Responsibilities of the certified public accountants for the audit ofthe financial statements” below. We are independent of the Company in accordance with the China Independence Standard for
Certified Public Accountants No. 1 – Independence Requirements for Financial Statements Audit and Review Business and the
Code of Ethics for Certified Public Accountants of China and have fulfilled our other ethical responsibilities. We followed the
independence requirements for the audit of public interest entities. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.III. Key audit matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the
financial statements for the current period. These matters were addressed in the context of our audit of the financial statements as a
whole and in forming our opinion thereon and we do not provide a separate opinion on these matters.(I) Revenue recognition
1. Description
See Notes III(XXIV) and V(II)1 to the financial statements for details.The operating revenue of the Company was primarily generated from the sale of electronic circuits optical modules
(including optical chips) precision components photoelectric display modules and other products which amounted to RMB
40124858800 in 2025.
95DSBJ Annual Report 2025
Since operating revenue is a key performance indicator of the Company and there is an inherent risk that the management
of the Company (the “Management”) may attempt to achieve the specific objectives or expectations through improper revenue
recognition we identified revenue recognition as a critical audit matter.
2. Audit response
Our audit procedures related to revenue recognition included the following among others:
(1) Obtained an understanding of the key internal controls related to revenue recognition assessed the design of such
controls determined whether such controls have been implemented and tested the effectiveness of the relevant internal controls;
(2) Examined the sales contracts obtained an understanding of the main contract terms and conditions and assessed the
appropriateness of the method of revenue recognition;
(3) With respect to the revenue from domestic sales examined on a sample basis the sales contracts sales invoices delivery
orders delivery notes and other supporting documents; with respect to the revenue from export obtained the relevant information
from the China Electronic Port checked the same against the book records kept by the Company and examined on a sample basis
the sales contracts sales invoices delivery orders export declaration forms bills of lading and other supporting documents;
(4) Analyzed the operating revenues and gross margin by month product and customer identified major or abnormal
fluctuations and found out the causes;
(5) With respect to accounts receivable confirmation selected sampled items to confirm the sales amounts via confirmation
letters;
(6) Conducted cut-off tests on the operating revenues recognized around the balance sheet date to check whether the
operating revenues were recognized in the proper period; and
(7) Examined whether the information related to operating revenues has been properly presented in the financial statements.
(II) Net realizable value of inventories
1. Description
See Notes III(XII) and V(I)8 to the financial statements for details.As of December 31 2025 the Company’s book balance of inventories was RMB 10178540500 inventory provision was
RMB 1249596300 and carrying value of inventories was RMB 8928944200.Inventories are measured at the lower of the cost and net realizable value. The Management determines the net realizable
value according to the estimated selling price less the estimated cost of completion estimated selling expenses and related taxes.Due to the significant amount of inventories and the significant management judgment involved in determining the net realizable
values of inventories we identified the net realizable values of inventories as a critical audit matter.
2. Audit response
Our audit procedures related to the net realizable values of inventories included the following among others:
(1) Obtained an understanding of the key internal controls related to the net realizable values of inventories assessed the
design of such controls determined whether they have been implemented and tested the effectiveness of the relevant internal
controls;
(2) With respect to the net realizable value of inventories estimated by the Management in prior years reviewed the relevant
results or subsequent re-estimates made by the Management;
(3) Selected items to assess the reasonableness of the estimated selling prices of inventories so as to verify whether the
estimated selling prices were consistent with the prices on sales contracts sales prices on the market historical data etc.;
(4) Evaluated the reasonableness of the estimation made by the Management regarding the costs selling expenses and
relevant taxes before the inventories were completed;
(5) Tested the accuracy of the calculation of the net realizable value of inventories made by the Management;
(6) With reference to stock counting of inventories under supervision identified inventories that were long-aged outdated
decreased in production subject to fluctuation in production costs or selling prices or experienced changes in technologies or
96DSBJ Annual Report 2025
market demands and assessed the reasonableness of the estimation of the net realizable value of inventories made by the
Management; and
(7) Examined whether the information related to the net realizable value of inventories has been properly presented in the
financial statements.(III) Goodwill impairment
1. Description
See Notes III(XIX) and V(I)19 to the financial statements for details.As of December 31 2025 the Company’s original value of goodwill was RMB 5038071300 allowance for goodwill
impairment was RMB 268811900 and carrying value of goodwill was RMB 4769259400.The Management assesses the goodwill for impairment together with the relevant asset group or combination of asset
groups whose recoverable amount is determined according to the present value of its estimated future cash flows. Due to the
significant amount of goodwill and the goodwill impairment assessment involving significant management judgment we
identified goodwill impairment as a critical audit matter.
2. Audit response
Our audit procedures related to goodwill impairment included the following among others:
(1) Obtained an understanding of the key internal controls related to goodwill impairment assessed the design of such
controls determined whether they have been implemented and tested the effectiveness of the relevant internal controls;
(2) With respect to the present value of future cash flows estimated by the Management in prior years reviewed the relevant
results or subsequent re-estimates made by the Management;
(3) Assessed the competencies professional quality and objectivity of the external appraisers engaged by the Management;
(4) Assessed the appropriateness and consistency of the approaches adopted by the Management in impairment tests;
(5) Assessed the appropriateness of the material assumptions used by the Management in impairment tests and whether the
relevant assumptions were consistent with the overall economic environment industrial conditions operating situations historical
experience business plans approved budgets and other assumptions used by the Management in relation to the financial
statements;
(6) Tested the appropriateness relevance and reliability of the data used by the Management in impairment tests and
reviewed the consistency of inputs in impairment tests;
(7) Tested the accuracy of the calculation of the present value of estimated future cash flows made by the Management; and
(8) Examined whether the information related to goodwill impairment has been properly presented in the financial
statements.IV. Other information
The Management is responsible for the other information. The other information comprises the information included in the
Annual Report but does not include the financial statements and our auditor’s report.Our opinion in the financial statements does not cover the other information and we will not express any form of assurance
conclusions thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated.If we conclude that there is a material misstatement therein we are required to communicate such matter. We have nothing
to report in this regard.V. Responsibilities of the Management and those charged with governance for the financial statements
97DSBJ Annual Report 2025
The Management is responsible for the preparation and fair presentation of the financial statements in accordance with the
CASBEs and the design implementation and maintenance of internal controls that are necessary to enable the preparation of
financial statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Management is responsible for assessing the Company’s ability to continue as a
going concern disclosing (as applicable) matters relating to going concern and using the going concern basis of accounting unless
the Management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance of the Company are responsible for overseeing the financial reporting process of the
Company.VI. Responsibilities of the certified public accountants for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a
high level of assurance but is not a guarantee that an audit conducted in accordance with 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 audit standards we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design
and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control;
(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control;
(III) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Management;
(IV) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubts on
the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by the
audit standards to draw attention in our auditor’s report to the related disclosures in the financial statements or if such disclosures
are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However future events or conditions may cause the Company to cease to continue as a going concern;
(V) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements
represent the underlying transactions and events in a manner that achieves fair presentation; and
(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion in the financial statements. We are responsible for the direction supervision and
performance of the audit of the Group and solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the
audit and significant audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to bear on
our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the critical audit matters. We describe
98DSBJ Annual Report 2025
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely
rare circumstances we determine that a matter should not be communicated in our auditor’s report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.II. Financial statements
The amounts in the statements contained in the notes to the financial statements are presented in RMB
1. Consolidated balance sheet
Prepared by: Suzhou Dongshan Precision Manufacturing Co. Ltd.December 31 2025
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 7650283509.10 7172331252.29
Settlement deposit
Loans to banks and other financial
institutions
Financial assets held for trading 201553860.61 78144342.95
Derivative financial assets
Notes receivable 9037098.60
Accounts receivable 9792745060.06 7663458025.49
Accounts receivable financing 285277607.54 252612009.41
Advances to suppliers 274265688.35 93875465.69
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 165859090.82 45836662.39
Incl.: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventories 8928944182.01 6152655607.85
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 1328586793.26 1209842283.99
Total current assets 28627515791.75 22677792748.66
Non-current assets:
Loans and advances to clients
Debt investments
Other debt investments
Long-term receivables 356797043.79 30000000.00
Long-term equity investment 126566432.55 155008795.68
99DSBJ Annual Report 2025
Investments in other equity instruments 442976297.74 333657110.00
Other non-current financial assets
Investment properties 142555461.11 781129.10
Fixed assets 16586762231.15 13595191232.40
Construction in progress 2345985416.22 2575154318.35
Productive biological assets
Oil and gas assets
Right-of-use assets 2209353814.61 1313776299.13
Intangible assets 1321067216.43 962594133.34
Incl.: Data resources
Development expenses 41694639.16
Incl.: Data resources
Goodwill 4769259362.01 2119612220.47
Long-term deferred expenses 990698521.69 903599713.89
Deferred tax assets 829762594.06 834450612.08
Other non-current assets 1459542272.71 512554751.37
Total non-current assets 31623021303.23 23336380315.81
Total assets 60250537094.98 46014173064.47
Current liabilities:
Short-term borrowings 8011474049.03 4810954130.69
Borrowings from the Central Bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading 46545937.17 82922390.17
Derivative financial liabilities
Notes payable 1002812950.68 935581272.50
Accounts payable 13043136687.34 9659268990.43
Advances from clients
Contract liabilities 474660658.17 122562435.14
Financial assets sold under repurchase
agreements
Deposits from clients and other banks
Funds received as stock broker
Funds received as underwriter of
securities
Employee benefits payable 995231432.74 597573087.02
Taxes payable 641337262.33 395772127.76
Other payables 705336813.22 94163223.90
Incl.: Interest payable
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year 3488303627.95 2458987301.36
Other current liabilities 43838129.08 5190838.21
Total current liabilities 28452677547.71 19162975797.18
Non-current liabilities:
100DSBJ Annual Report 2025
Provision for insurance contracts
Long-term borrowings 6375079464.54 5289187891.33
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 1790064820.73 1351518837.18
Long-term payables 49434786.31
Long-term employee benefits payable 142470448.33
Provisions 263756502.85 58258872.92
Deferred income 889843133.49 585933889.89
Deferred tax liabilities 634806937.54 630759756.43
Other non-current liabilities
Total non-current liabilities 10096021307.48 7965094034.06
Total liabilities 38548698855.19 27128069831.24
Owners’ equity:
Share capital 1831607532.00 1705913710.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 9257892537.77 7992284435.83
Less: Treasury shares 175076133.79 74991696.79
Other comprehensive income -240832682.74 -317104374.08
Special reserve
Surplus reserve 249150887.74 232241216.54
General risk reserve
Retained profits 10538405831.61 9288043977.88
Total owners’ equity attributable to the
parent company 21461147972.59 18826387269.38
Minority interests 240690267.20 59715963.85
Total owners’ equity 21701838239.79 18886103233.23
Total liabilities and owners’ equity 60250537094.98 46014173064.47
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
2. Standalone balance sheet
In RMB
Item Closing balance Opening balance
Current assets:
Cash and bank balances 1160294626.93 1090000348.49
Financial assets held for trading 219600.00
Derivative financial assets
Notes receivable
Accounts receivable 2968231046.34 3143492614.37
Accounts receivable financing 97221485.41 18920385.63
Advances to suppliers 31232780.09 39423778.51
Other receivables 6264171897.96 5969486558.66
Incl.: Interest receivable
Dividends receivable 1430532996.21 1495758008.53
Inventories 674472213.11 986847112.47
Incl.: Data resources
101DSBJ Annual Report 2025
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 63612410.64 71972689.92
Total current assets 11259456060.48 11320143488.05
Non-current assets:
Debt investments
Other debt investments
Long-term receivables 76509581.77 30000000.00
Long-term equity investment 10272197298.16 9627857599.31
Investments in other equity instruments 233620897.88 221322110.00
Other non-current financial assets 725589519.73
Investment properties
Fixed assets 746080950.55 775223315.27
Construction in progress 116200639.43 148492748.83
Productive biological assets
Oil and gas assets
Right-of-use assets 652300.04 2609200.64
Intangible assets 29117476.28 61524955.69
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill
Long-term deferred expenses 62191879.79 89330126.49
Deferred tax assets 90067212.74 36909520.17
Other non-current assets 470817876.53 70661066.13
Total non-current assets 12823045632.90 11063930642.53
Total assets 24082501693.38 22384074130.58
Current liabilities:
Short-term borrowings 1891299933.33 2294208162.79
Financial liabilities held for trading
Derivative financial liabilities
Notes payable 794515542.20 585570169.87
Accounts payable 1713486270.10 1389942826.35
Advances from clients
Contract liabilities 24694026.25 18959880.87
Employee benefits payable 21209233.64 30758082.10
Taxes payable 2981563.32 3170402.36
Other payables 5522584357.60 5101960753.88
Incl.: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one
year 1491016892.43 799561489.98
Other current liabilities 4002965.31 1508828.34
Total current liabilities 11465790784.18 10225640596.54
Non-current liabilities:
Long-term borrowings 1356851593.72 2251616980.54
102DSBJ Annual Report 2025
Bonds payable
Incl.: Preferred shares
Perpetual bonds
Lease liabilities 861053.29
Long-term payables
Long-term employee benefits payable
Provisions 1284160.56 1125097.32
Deferred income 16537828.64 16473333.57
Deferred tax liabilities 534830.01
Other non-current liabilities
Total non-current liabilities 1374673582.92 2270611294.73
Total liabilities 12840464367.10 12496251891.27
Owners’ equity:
Share capital 1831607532.00 1705913710.00
Other equity instruments
Incl.: Preferred shares
Perpetual bonds
Capital reserve 9156573425.73 7890754703.00
Less: Treasury shares 175076133.79 74991696.79
Other comprehensive income 12485447.88
Special reserve
Surplus reserve 249150887.74 232241216.54
Retained profits 167296166.72 133904306.56
Total owners’ equity 11242037326.28 9887822239.31
Total liabilities and owners’ equity 24082501693.38 22384074130.58
3. Consolidated income statement
In RMB
Item 2025 2024
I. Total operating revenue 40124858839.52 36770374347.58
Incl.: Operating revenue 40124858839.52 36770374347.58
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 38148363423.73 34556547462.54
Incl.: Operating cost 34472669748.77 31615008629.39
Interest expenses
Fee and commission expenses
Surrenders
Net payments for insurance
claims
Net insurance contract reserves
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 136302303.72 167042863.87
Selling expenses 445146409.06 454017787.21
Administrative expenses 1414555307.76 1112402085.44
R&D expenses 1417226723.87 1266812544.23
Financial expenses 262462930.55 -58736447.60
103DSBJ Annual Report 2025
Incl.: Interest expenses 443476258.00 438226327.56
Interest income 200834090.18 243071834.40
Add: Other income 362767797.18 523255832.55
Investment income (loss expressed
with “-”) -9282244.32 -22034772.62
Incl.: Investment income
from associates and joint ventures -921784.97 -398084.25
Gain on derecognition
of financial assets at amortized cost
Exchange gain (loss expressed
with “-”)
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value (loss
expressed with “-”) 62022355.11 -17898094.22
Credit impairment loss (loss
expressed with “-”) -63742824.35 -44109673.59
Impairment loss on assets (loss
expressed with “-”) -687900170.84 -938687855.79
Gain on disposal of assets (loss
expressed with “-”) -371479536.46 -234749852.86
III. Operating profit (loss expressed with
“-”)1268880792.111479602468.51
Add: Non-operating revenue 478428588.60 9260396.63
Less: Non-operating expenses 56892612.84 21151029.02
IV. Profit before tax (loss expressed with
“-”)1690416767.871467711836.12
Less: Income tax expenses 297449230.14 382650922.07
V. Net profit (loss expressed with “-”) 1392967537.73 1085060914.05
(I) Classified by continuity of operation
1. Net profit from continuing
operations (loss expressed with “-”) 1392967537.73 1085060914.05
2. Net profit from discontinued
operations (loss expressed with “-”)
(II) Classified by attribution
1. Net profit attributable to owners of
the parent company 1386066705.56 1085641847.89
2. Profit attributable to minority
interests 6900832.17 -580933.84
VI. Other comprehensive income net
after tax 76271691.34 47560204.56
Other comprehensive income
attributable to owners of the parent 76271691.34 47560204.56
company net after tax
(I) Other comprehensive income that
cannot be reclassified to profit or loss 45801392.07
1. Changes arising from
remeasurement of defined benefit plans 2085004.19
2. Other comprehensive income
that cannot be reclassified to profit or loss
under the equity method
3. Change in fair value of
investments in other equity instruments 43716387.88
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss 30470299.27 47560204.56
1. Other comprehensive income
104DSBJ Annual Report 2025
that can be reclassified to profit or loss
under the equity method
2. Change in fair value of other
debt investments
3. Financial assets reclassified to
other comprehensive income
4. Provision for credit impairment
of other debt investments
5. Reserves for cash flow hedge 40974107.22 13125520.72
6. Differences in translation of
foreign currency financial statements -10503807.95 34434683.84
7. Others
Other comprehensive income
attributable to minority interests net after
tax
VII. Total comprehensive income 1469239229.07 1132621118.61
Total comprehensive income
attributable to owners of the parent 1462338396.90 1133202052.45
company
Total comprehensive income
attributable to minority interests 6900832.17 -580933.84
VIII. Earnings per share
(I) Basic earnings per share 0.79 0.64
(II) Diluted earnings per share 0.79 0.64
Legal Representative: YUAN Yonggang CFO: WANG Xu Accounting Supervisor: ZHU Deguang
4. Standalone income statement
In RMB
Item 2025 2024
I. Operating revenue 4636461984.31 4750880680.91
Less: Operating cost 4035985624.06 4071450528.91
Taxes and surcharges 12619064.43 20509211.02
Selling expenses 28361890.11 41590505.69
Administrative expenses 271817883.08 267655862.76
R&D expenses 204659472.31 223564889.84
Financial expenses 212763047.77 161027919.44
Incl.: Interest expenses 240892696.42 322381094.38
Interest income 54364364.00 52566198.94
Add: Other income 7559769.61 33990328.28
Investment income (loss
expressed with “-”) 240750766.70 593170019.98
Incl.: Investment income from
associates and joint ventures 434578.85 5584848.30
Gain on derecognition of
financial assets at amortized cost (loss
expressed with “-”)
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value
(loss expressed with “-”) 165589519.73 -13243914.03
Credit impairment loss (loss
expressed with “-”) -15282282.79 17367223.10
Impairment loss on assets (loss
expressed with “-”) -68023117.47 -27906250.25
Gain on disposal of assets (loss -78700426.61 -1030988.54
105DSBJ Annual Report 2025
expressed with “-”)II. Operating profit (loss expressed with “-”)122149231.72567428181.79
Add: Non-operating revenue 459385.53 66579410.21
Less: Non-operating expenses 7237367.84 7823757.31
III. Profit before tax (loss expressed with
“-”)115371249.41626183834.69
Less: Income tax expenses -53725462.58 152440366.64
IV. Net profit (loss expressed with “-”) 169096711.99 473743468.05
(I) Net profit from continuing
operations (loss expressed with “-”) 169096711.99 473743468.05
(II) Net profit from discontinued
operations (loss expressed with “-”)
V. Other comprehensive income net after
tax 12485447.88
(I) Other comprehensive income that
cannot be reclassified to profit or loss 12298787.88
1. Changes arising from
remeasurement of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or loss
under the equity method
3. Change in fair value of
investments in other equity instruments 12298787.88
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive income
that will be reclassified to profit or loss 186660.00
1. Other comprehensive income
that can be reclassified to profit or loss
under the equity method
2. Change in fair value of other
debt investments
3. Financial assets reclassified to
other comprehensive income
4. Provision for credit impairment
of other debt investments
5. Reserves for cash flow hedge 186660.00
6. Differences in translation of
foreign currency financial statements
7. Others
VI. Total comprehensive income 181582159.87 473743468.05
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
In RMB
Item 2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 40268971755.81 36888162952.22
Net increase in deposits from clients
and other banks
Net increase in borrowings from the
Central Bank
Net increase in borrowings from other
financial institutions
106DSBJ Annual Report 2025
Proceeds from premiums under prior
insurance contracts
Net proceeds from reinsurance business
Net increase in insured’s deposits and
investments
Proceeds from interest fees and
commissions
Net increase in borrowings from banks
and other financial institutions
Net increase in receipts under
repurchase transactions
Net cash received as stock broker
Tax refunds received 1312580854.55 1110541496.13
Other cash receipts related to operating
activities 1193357020.32 1080208971.62
Cash provided by operating activities 42774909630.68 39078913419.97
Payments for purchase of goods and
receipt of services 29701823618.56 27320456007.82
Net increase in loans and advances
from clients
Net increase in deposits in the Central
Bank and other banks
Payment of claims under prior
insurance contracts
Net increase in loans to banks and other
financial institutions
Payment of interest fees and
commissions
Payment of policyholder dividends
Payments to and for employees 5650852540.20 4844071324.22
Taxes paid 697615390.76 704488780.75
Other cash payments related to
operating activities 1417476334.17 1223878618.70
Cash used in operating activities 37467767883.69 34092894731.49
Net cash flows from operating activities 5307141746.99 4986018688.48
II. Cash flows from investing activities:
Proceeds from disposal of investments 108814660.00 331862195.88
Proceeds from return on investments 19291611.41 665777.96
Net proceeds from the disposal of fixed
assets intangible assets and other long- 90863187.17 173295074.50
term assets
Net proceeds from the disposal of
subsidiaries and other business entities 0.00 39159620.71
Other cash receipts related to investing
activities 1789785359.77 920378244.31
Cash provided by investing activities 2008754818.35 1465360913.36
Payments for the acquisition of fixed
assets intangible assets and other long- 4383254216.35 3792143747.46
term assets
Payments for investments 1032364101.58 328162771.38
Net increase in mortgage loans
Net payments for the acquisition of
subsidiaries and other business entities 3383277302.46
Other cash payments related to
investing activities 1493051034.81 1438740539.88
Cash used in investing activities 10291946655.20 5559047058.72
Net cash flows from investing activities -8283191836.85 -4093686145.36
III. Cash flows from financing activities:
Proceeds from investors 1391555544.73
107DSBJ Annual Report 2025
Incl.: Proceeds of subsidiaries from
minority shareholders’ investments 43000.00
Cash receipts from borrowings 11196201280.75 9292322928.58
Other cash receipts related to financing
activities 1983927541.61 1013657755.68
Cash provided by financing activities 14571684367.09 10305980684.26
Repayment of borrowings 7723099453.20 9305852934.81
Payment of distribution of dividends
and profits or for interest 438979848.30 789614962.62
Incl.: Dividends and profits distributed
by subsidiaries to minority shareholders
Other cash payments related to
financing activities 2660211054.70 1529880189.66
Cash used in financing activities 10822290356.20 11625348087.09
Net cash flows from financing activities 3749394010.89 -1319367402.83
IV. Effect of exchange rate changes on
cash and cash equivalents -12221677.25 126148223.77
V. Net increase in cash and cash
equivalents 761122243.78 -300886635.94
Add: Opening balance of cash and cash
equivalents 5343600382.37 5644487018.31
VI. Closing balance of cash and cash
equivalents 6104722626.15 5343600382.37
6. Standalone cash flow statement
In RMB
Item 2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and
rendering of services 3904328054.01 3087518926.49
Tax refunds received 105357331.49 79327801.50
Other cash receipts related to operating
activities 3811238088.63 5758926751.58
Cash provided by operating activities 7820923474.13 8925773479.57
Payments for purchase of goods and
receipt of services 3282162963.65 2829046533.99
Payments to and for employees 312361955.27 374024194.96
Taxes paid 18939914.52 74184275.05
Other cash payments related to
operating activities 3927477083.94 5022100747.33
Cash used in operating activities 7540941917.38 8299355751.33
Net cash flows from operating activities 279981556.75 626417728.24
II. Cash flows from investing activities:
Proceeds from disposal of investments 295045679.59 52599999.99
Proceeds from return on investments 148297.93 1487814382.67
Net proceeds from the disposal of fixed
assets intangible assets and other long- 2321703.00
term assets
Net proceeds from the disposal of
subsidiaries and other business entities
Other cash receipts related to investing
activities 1680303260.48 348788350.25
Cash provided by investing activities 1975497238.00 1891524435.91
Payments for the acquisition of fixed
assets intangible assets and other long- 124344513.08 178368792.91
term assets
Payments for investments 775163000.00 264999999.99
Net payments for the acquisition of
subsidiaries and other business entities
108DSBJ Annual Report 2025
Other cash payments related to
investing activities 2339633268.53 2145958659.54
Cash used in investing activities 3239140781.61 2589327452.44
Net cash flows from investing activities -1263643543.61 -697803016.53
III. Cash flows from financing activities:
Proceeds from investors 1391512544.73
Cash receipts from borrowings 3131500000.00 3927134206.67
Other cash receipts related to financing
activities 2900541711.39 3092048892.48
Cash provided by financing activities 7423554256.12 7019183099.15
Repayment of borrowings 3733671340.00 4732373761.70
Payment of distribution of dividends
and profits or for interest 246482514.76 406253984.10
Other cash payments related to
financing activities 2285402298.62 1840793177.42
Cash used in financing activities 6265556153.38 6979420923.22
Net cash flows from financing activities 1157998102.74 39762175.93
IV. Effect of exchange rate changes on
cash and cash equivalents 4587103.46 91649076.85
V. Net increase in cash and cash
equivalents 178923219.34 60025964.49
Add: Opening balance of cash and cash
equivalents 538870203.05 478844238.56
VI. Closing balance of cash and cash
equivalents 717793422.39 538870203.05
109DSBJ Annual Report 2025
7. Consolidated statement of changes in owners’ equity
Amount of the current period
In RMB
2025
Owners’ equity attributable to the parent
Other equity
Item instruments
Gen
Other Spec Total
Less: eral Minority
Share Prefer Capital comprehe ial Surplus Retained Oth interests owners’Treasury risk Subtotal
capital Perpered Oth reserve nsive reser reserve profits ers equity
tual shares reser
share ers income ve
bonds ve
s
I. Balance at -
17059137992284749916923224129288043918826387597159618886103
the end of the 3171043
710.00435.836.7916.5477.88269.383.85233.23
previous year 74.08
Add:
Changes in
accounting
policies
Corre
ction of
previous period
errors
Other
s
II. Balance at
-
the beginning 1705913 7992284 7499169 2322412 92880439 18826387 5971596 18886103
3171043
of the current 710.00 435.83 6.79 16.54 77.88 269.38 3.85 233.23
74.08
year
III.Increase/(decre 12569382 1265608 1000844 7627169 1690967 12503618 26347607 1809743 28157350
ase) in the 2.00 101.94 37.00 1.34 1.20 53.73 03.21 03.35 06.56
current period
(decrease
110DSBJ Annual Report 2025
expressed with
“-”)
(I) Total
76271691386066714623383690083214692392
comprehensive
1.3405.5696.90.1729.07
income
(II)
Investment/(div 12569382 1265608 1000844 12912174 1740734 14652909
estment) by 2.00 101.94 37.00 86.94 71.18 58.12
shareholders
1.
Contributions 12569382 1265818 1000844 12914281 12914711
43000.00
from holders of 2.00 722.73 37.00 07.73 07.73
ordinary shares
2.
Contributions
from holders of
other equity
instruments
3. Share-based
payments
recorded in
owners’ equity
-174030417381985
4. Others -210620.79
210620.7971.180.39
(III) - - -
1690967
Distribution of 13570485 11879518 11879518
1.20
profits 1.83 0.63 0.63
-
1. Surplus 1690967
16909671.
reserve 1.20
20
2. General risk
reserve
3. Distributions - - -
to owners 11879518 11879518 11879518
(shareholders) 0.63 0.63 0.63
111DSBJ Annual Report 2025
4. Others
(IV) Internal
transfer of
owners’ equity
1. Transfer of
capital reserve
to (share)
capital
2. Transfer of
surplus reserve
to (share)
capital
3. Make-up of
losses by
surplus reserve
4. Transfer of
changes in
defined benefit
plans to
retained
earnings
5. Transfer of
other
comprehensive
income to
retained
earnings
6. Others
(V) Special
reserve
1. Appropriated
in the current
period
2. Used in the
112DSBJ Annual Report 2025
current period
(VI) Others
IV. Balance at -
18316079257892175076124915081053840521461147240690221701838
the end of the 2408326
532.00537.7733.7987.74831.61972.5967.20239.79
current period 82.74
Amount of the previous period
In RMB
2024
Owners’ equity attributable to the parent
Other equity
Gene
Item instruments Other Spec TotalLess: ral Minority
Share Prefer Capital comprehe ial Surplus Retained Oth owners’Treasury risk Subtotal interests
capital Perpered Oth reserve nsive reser reserve profits ers equity
tual shares reser
share ers income ve
bonds ve
s
I. Balance at the -
170986780637681259068184866890250951814302647329818190356
end of the 7146645
327.00409.7311.3369.73529.05745.5451.72597.26
previous year 78.64
Add:
Changes in
accounting
policies
Corre
ction of
previous period
errors
Other
s
II. Balance at
-
the beginning 1709867 8063768 1259068 1848668 9025095 18143026 473298 18190356
7146645
of the current 327.00 409.73 11.33 69.73 529.05 745.54 51.72 597.26
78.64
year
III. - - - 3975602 4737434 26294844 683360523 123861 695746635
113DSBJ Annual Report 2025
Increase/(decre 3953617. 71483973 5091511 04.56 6.81 8.83 .84 12.13 .97
ase) in the 00 .90 4.54
current period
(decrease
expressed with
“-”)
(I) Total -
475602010856411133202011326211
comprehensive 580933.
4.56847.8952.4518.61
income 84
(II)
------
Investment/(div
3953617.71483973509151124522476.58703730392856.
estment) by
00.904.54369.8723
shareholders
1. Contributions - - - -
2500084
from holders of 26238619 51239465. 587000 57109465.
6.30
ordinary shares .50 80 0.00 80
2. Contributions
from holders of
other equity
instruments
3. Share-based
payments
478369.94478369.94-379.87477990.07
recorded in
owners’ equity
---
26238619.
4. Others 3953617. 45723724 7591596
50
00.340.84
(III) - - -
4737434188374
Distribution of 47269339 425319052 406481626
6.8125.84
profits 9.06 .25 .41
-
1. Surplus 4737434
47374346
reserve 6.81.81
2. General risk
reserve
114DSBJ Annual Report 2025
3. Distributions - -
to owners 42531905 425319052
(shareholders) 2.25 .25
18837418837425.
4. Others
25.8484
(IV) Internal -
3500000
transfer of 35000000
00.00
owners’ equity 0.00
1. Transfer of
capital reserve
to (share)
capital
2. Transfer of
surplus reserve
to (share)
capital
3. Make-up of
losses by
surplus reserve
4. Transfer of
changes in
defined benefit
plans to
retained
earnings
5. Transfer of
other
-
comprehensive 3500000
35000000
income to 00.00
0.00
retained
earnings
6. Others
(V) Special
reserve
1. Appropriated
115DSBJ Annual Report 2025
in the current
period
2. Used in the
current period
(VI) Others
IV. Balance at -
170591379922847499169232241292880431882638759715918886103
the end of the 3171043
710.00435.836.7916.54977.88269.3863.85233.23
current period 74.08
8. Standalone statement of changes in owners’ equity
Amount of the current period
In RMB
2025
Other equity instruments Speci
Item Less: Other al Surplus Retained Other Total owners’
Share capital PerpetuPreferre Other Capital reserve Treasury comprehensi
al reserv reserve profits s equity
d shares s shares ve income
bonds e
I. Balance at the end 1705913710. 7890754703. 74991696.7 232241216. 133904306. 9887822239.3
of the previous year 00 00 9 54 56 1
Add: Changes
in accounting
policies
Correction
of previous period
errors
Others
II. Balance at the
1705913710.7890754703.74991696.7232241216.133904306.9887822239.3
beginning of the
0000954561
current year
III. 125693822.0 1265818722. 100084437. 12485447.8 16909671.2 33391860.1 1354215086.9
Increase/(decrease) 0 73 00 8 0 6 7
116DSBJ Annual Report 2025
in the current period
(decrease expressed
with “-”)
(I) Total
12485447.8169096711.
comprehensive 181582159.87
899
income
(II)
125693822.01265818722.100084437.1291428107.7
Investment/(divestm
073003
ent) by shareholders
1. Contributions
125693822.01265818722.100084437.1291428107.7
from holders of
073003
ordinary shares
2. Contributions
from holders of other
equity instruments
3. Share-based
payments recorded
in owners’ equity
4. Others
-
(III) Distribution of 16909671.2
135704851.-118795180.63
profits 0
83
-
16909671.2
1. Surplus reserve 16909671.2
0
0
2. Distributions to -
owners 118795180. -118795180.63
(shareholders) 63
3. Others
(IV) Internal transfer
of owners’ equity
1. Transfer of capital
reserve to (share)
capital
117DSBJ Annual Report 2025
2. Transfer of
surplus reserve to
(share) capital
3. Make-up of losses
by surplus reserve
4. Transfer of
changes in defined
benefit plans to
retained earnings
5. Transfer of other
comprehensive
income to retained
earnings
6. Others
(V) Special reserve
1. Appropriated in
the current period
2. Used in the
current period
(VI) Others
IV. Balance at the
1831607532.9156573425.175076133.12485447.8249150887.167296166.11242037326.
end of the current
0073798747228
period
Amount of the previous period
In RMB
2024
Other equity instruments Speci
Item Less: Other al Surplus Retained Other Total owners’
Share capital PerpetuPreferre Other Capital reserve Treasury comprehensi
al reserv reserve profits s equity
d shares s shares ve income
bonds e
-
I. Balance at the end 1709867327. 7962239056. 125906811. 184866869. 482854237. 9863920679.
350000000.
of the previous year 00 77 33 73 57 74
00
118DSBJ Annual Report 2025
Add: Changes
in accounting
policies
Correction
of previous period
errors
Others
II. Balance at the -
1709867327.7962239056.125906811.184866869.482854237.9863920679.
beginning of the 350000000.
007733735774
current year 00
III.Increase/(decrease) - -
350000000.47374346.8
in the current period -3953617.00 -71484353.77 50915114.5 348949931. 23901559.57
001
(decrease expressed 4 01
with “-”)
(I) Total
473743468.473743468.0
comprehensive
055
income
(II) -
Investment/(divestm -3953617.00 -71484353.77 50915114.5 -24522856.23
ent) by shareholders 4
1. Contributions
25000846.3
from holders of 26238619.50 1237773.20
0
ordinary shares
2. Contributions
from holders of other
equity instruments
3. Share-based
payments recorded in 477990.07 477990.07
owners’ equity
-
4. Others -3953617.00 -98200963.34 75915960.8 -26238619.50
4
47374346.8--
(III) Distribution of 1 472693399. 425319052.2
119DSBJ Annual Report 2025
profits 06 5
-
47374346.8
1. Surplus reserve 47374346.8
1
1
2. Distributions to - -
owners 425319052. 425319052.2
(shareholders) 25 5
3. Others
-
(IV) Internal transfer 350000000.
350000000.
of owners’ equity 00
00
1. Transfer of capital
reserve to (share)
capital
2. Transfer of surplus
reserve to (share)
capital
3. Make-up of losses
by surplus reserve
4. Transfer of
changes in defined
benefit plans to
retained earnings
5. Transfer of other
-
comprehensive 350000000.
350000000.
income to retained 00
00
earnings
6. Others
(V) Special reserve
1. Appropriated in
the current period
2. Used in the
current period
(VI) Others
120DSBJ Annual Report 2025
IV. Balance at the
1705913710.7890754703.74991696.7232241216.133904306.9887822239.
end of the current
00009545631
period
121DSBJ Annual Report 2025
III. General Information of the Company
Suzhou Dongshan Precision Manufacturing Co. Ltd. (the “Company”) is a company limited by shares converted from
Suzhou Dongshan Sheet Metal Co. Ltd. and registered with the Suzhou Municipal Administration for Industry and Commerce of
Jiangsu on December 24 2007 and is headquartered in Suzhou Jiangsu holds a business license with the unified social credit
code of 91320500703719732P and has a registered capital of RMB 1831607532 divided into 1831607532 shares with a par
value of RMB 1 each share of which 445285809 shares are non-tradable A-shares and 1386321723 shares are tradable A-
shares. The Company’s shares have been listed and traded on the Shenzhen Stock Exchange since April 9 2010.The Company belongs to the computer communication and other electronic equipment manufacturing industry and is
primarily engaged in the provision of core devices for intelligent interconnection including electronic circuits optical modules
(including optical chips) photoelectric display modules precision components etc.These financial statements were approved for release at the 33rd meeting of the 6th Board of Directors on April 20 2026.IV. Basis for Preparation of the Financial Statements
1. Basis for preparation
These financial statements have been prepared on the assumption that the Company is a going concern.
2. Going concern
No event or fact may cast significant doubts on the Company’s ability to remain a going concern within 12 months after the
end of the reporting period.V. Significant Accounting Policies and Accounting Estimates
Note about specific accounting policies and accounting estimates:
Important note: The Company has established specific accounting policies and made specific accounting estimates with
respect to the impairment of financial instruments inventories depreciation of fixed assets construction in progress intangible
assets recognition of revenues and other transactions or events according to its actual production and operational characteristics.
1. Statement of compliance with the Accounting Standards for Business Enterprises (“ASBE”)
The financial statements prepared by the Company conform to the requirements of the ASBE and truly and completely
reflect the Company’s financial condition operating results cash flows and other related information.
2. Accounting period
The Company’s accounting year is from January 1 to December 31 of each calendar year.
3. Operating cycle
The Company has a relatively short operating cycle and determines the liquidity of assets and liabilities on the basis of 12
months.
122DSBJ Annual Report 2025
4. Functional currency
The parent company and domestic subsidiaries adopt RMB as their functional currency. Overseas subsidiaries determine
their functional currencies according to the main economic environment where they conduct operating activities mainly including
USD EUR THB MXN etc. These consolidated financial statements are presented in RMB.
5. Determination and basis for selection of materiality criteria
□ Applicable □ N/A
Item Materiality criteria
Significant dividends receivable aged
Individual amount accounting for over 0.3% of the total assets
over one year
Significant constructions in progress Total investment in an individual project accounting for over 0.3% of the total assets
Significant accounts payable aged over
Individual amount accounting for over 0.3% of the total assets
one year
Significant other payables aged over
Individual amount accounting for over 0.3% of the total assets
one year
Significant contract liabilities aged
Individual amount accounting for over 0.3% of the total assets
over one year
Significant cash flows from investing
Individual amount accounting for over 5% of the total assets
activities
Total assets/total revenue/total profit accounting for over 15% of the group’s total
Significant overseas operating entities
assets/total revenue/total profit
Significant subsidiaries and non- Total assets/total revenue/total profit accounting for over 15% of the group’s total
wholly owned subsidiaries assets/total revenue/total profit
The book value of an individual long-term equity investment accounting for over 15% of
Significant associates or joint ventures the group’s net assets/the individual investment income accounted for using the equity
method accounting for over 15% of the group’s total profit
6. Accounting treatment of business combinations involving entities under common control and not
under common control
1. Accounting treatment of business combinations involving entities under common control
Assets and liabilities acquired from a business combination by the Company are measured at the carrying value of the assets
and liabilities of the acquiree in the consolidated financial statements of the ultimate controller at the combination date. The
difference between the carrying value of the owners’ equity of the acquiree as stated in the consolidated financial statements of the
ultimate controller and the carrying value of the total consideration paid or total par value of the shares issued in connection with
the combination is treated as an adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the
difference the remaining balance is charged against the retained earnings.
2. Accounting treatment of business combinations involving entities not under common control
Where the cost of the combination exceeds the Company’s share of the fair value of the acquiree’s net identifiable assets the
difference is recognized as goodwill at the acquisition date. Where the cost of combination is lower than the Company’s share of
the fair value of the acquiree’s net identifiable assets the Company reviews the measurement of the fair value of each of the
identifiable assets liabilities and contingent liabilities acquired from the acquiree and the cost of combination and if the cost of
combination as reviewed is still lower than the Company’s share of the fair value of the acquiree’s net identifiable assets the
difference is recognized in profit or loss.
123DSBJ Annual Report 2025
7. Determination of control and method of preparation of consolidated financial statements
1. Determination of control
Control means that the Company has power over the investee exposure or rights to variable returns from its involvement
with the investee and the ability to use its power to affect the amount of those returns.
2. Method of preparation of consolidated financial statements
(1) The parent includes all of its controlled subsidiaries in its consolidated financial statements. The consolidated financial
statements are prepared by the parent in accordance with ASBE 33 “Consolidated Financial Statements” on the basis of the
respective financial statements of the parent and its subsidiaries by reference to other relevant data.
8. Classification of joint arrangements and accounting treatment of joint operations
9. Recognition of cash and cash equivalents
For the purpose of the cash flow statement cash comprises cash on hand and demand deposits and cash equivalents
comprise short-term highly liquid investments that are readily convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value.
10. Translation of foreign currency transactions and foreign currency financial statements
1. Translation of foreign currency transactions
Upon initial recognition foreign currency transactions are translated into RMB using the approximate exchange rates of spot
exchange rates at the transaction dates. At the balance sheet date monetary items denominated in foreign currencies are translated
into RMB using the spot exchange rates then prevailing. Exchange differences arising from such translations are recognized in
profit or loss except for those attributable to foreign currency borrowings that have been taken out specifically for the acquisition
or construction of qualifying assets and accrued interest. Non-monetary items denominated in foreign currencies that are measured
at historical cost are translated using the approximate exchange rates of spot exchange rates at the transaction dates without
adjusting the amounts in RMB. Non-monetary items denominated in foreign currencies that are measured at fair value are
translated using the spot exchange rates prevailing at the dates when the fair value was determined with the exchange differences
arising from such translations recognized in profit or loss or other comprehensive income.
2. Translation of foreign currency financial statements
The asset and liability items in the balance sheet are translated at the spot exchange rates prevailing at the balance sheet date.The owners’ equity items other than “retained profits” are translated at the spot exchange rates prevailing at the transaction dates.The income and expense items in the income statement are translated at the approximate exchange rates of spot exchange rates at
the transaction dates. The differences arising from such translation of foreign currency financial statements are recognized in other
comprehensive income.
11. Financial instruments
1. Classification of financial assets and financial liabilities
Upon initial recognition financial assets are classified as: (i) financial assets at amortized cost; (ii) financial assets at fair
value through other comprehensive income; and (iii) financial assets at fair value through profit or loss.Upon initial recognition financial liabilities are classified as: (i) financial liabilities at fair value through profit or loss; (ii)
financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or continuing
124DSBJ Annual Report 2025
involvement in the financial assets transferred; (iii) financial guarantee contracts not falling under items (i) or (ii) and loan
commitments not falling under item (i) and below market interest rate; and (iv) financial liabilities at amortized cost.
2. Recognition measurement and derecognition of financial assets and financial liabilities
(1) Recognition and initial measurement of financial assets and financial liabilities
When the Company becomes a party to a financial instrument contract a financial asset or liability is recognized. Financial
assets or liabilities are initially measured at fair value. Transaction costs relating to financial assets and liabilities at fair value
through profit or loss are directly recognized in profit or loss. Transaction costs relating to other kinds of financial assets or
liabilities are included in their initially recognized amount. However the accounts receivable that do not contain any significant
financing component or are recognized by the Company without taking into consideration the significant financing components
under the contracts with a term of less than one year upon initial recognition are initially measured at transaction price as defined
in ASBE 14 “Revenue”.
(2) Subsequent measurement of financial assets
1) Financial assets at amortized cost
Financial assets at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains or
losses on financial assets at amortized cost that do not belong to any hedging relationship are recognized in profit or loss upon
derecognition reclassification amortization using the effective interest method or recognition of impairment.
2) Investments in debt instruments at fair value through other comprehensive income
Investments in debt instruments at fair value through other comprehensive income are subsequently measured at fair value.Interest impairment losses or gains and exchange gains or losses calculated using the effective interest method are recognized in
profit or loss while other gains or losses are recognized in other comprehensive income. Upon derecognition the aggregate gains
or losses previously recognized in other comprehensive income are transferred to profit or loss.
3) Investments in equity instruments at fair value through other comprehensive income
Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value.Dividends received (other than those received as recovery of investment cost) are recognized in profit or loss while other gains or
losses are recognized in other comprehensive income. Upon derecognition the aggregate gains or losses previously recognized in
other comprehensive income are transferred to retained earnings.
4) Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are subsequently measured at fair value. Gains or losses thereon
including interest and dividend income are recognized in profit or loss except the financial assets belonging to any hedging
relationship.
(3) Subsequent measurement of financial liabilities
1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading (including derivatives
classified as financial liabilities) and financial liabilities designated as at fair value through profit or loss. Such financial liabilities
are subsequently measured at fair value. Changes in the fair value of financial liabilities designated as at fair value through profit
or loss arising out of changes in the Company’s credit risk are recognized in other comprehensive income unless such treatment
will result in or increase any accounting mismatch in profit or loss. Other gains or losses on such financial liabilities including
interest expenses and changes in fair value not arising out of changes in the Company’s credit risk are recognized in profit or loss
except the financial liabilities belonging to any hedging relationship. Upon derecognition the aggregate gains or losses previously
recognized in other comprehensive income are transferred to retained earnings.
2) Financial liabilities arising as a result of the transfer of financial assets not meeting the criteria for derecognition or
continuing involvement in the financial assets transferred
Such financial liabilities are measured in accordance with ASBE 23 “Transfer of Financial Assets”.
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3) Financial guarantee contracts not falling under items 1) or 2) and loan commitments not falling under item 1) and below
the market interest rate
Upon initial recognition such financial liabilities are subsequently measured at the higher of (i) allowance for impairment
losses determined according to the policy for impairment of financial instruments; and (ii) balance of the initially recognized
amount after deduction of the accumulated amortization determined in accordance with ASBE 14 “Revenue”.
4) Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost using the effective interest method. Gains
or losses on financial liabilities at amortized cost that do not belong to any hedging relationship are recognized in profit or loss
upon derecognition or amortization using the effective interest method.
(4) Derecognition of financial assets and financial liabilities
1) Financial assets are derecognized when:
* the contractual right to receive cash flows from the financial assets has expired; or
* the financial assets have been transferred and such transfer meets the criteria for derecognition of financial assets as set
forth in ASBE 23 “Transfer of Financial Assets”.
2) A financial liability (or part thereof) is derecognized when all or part of the outstanding obligations thereunder have been
discharged.
3. Determination and measurement of financial assets transferred
When a financial asset of the Company is transferred if substantially all the risks and rewards incidental to the ownership of
the financial asset have been transferred the financial asset is derecognized and the rights and obligations incurred or retained in
such transfer are separately recognized as assets or liabilities (as the case may be); if the Company has retained substantially all the
risks and rewards incidental to the ownership of the financial asset the Company continues to recognize the financial asset
transferred. If the Company neither transferred nor retained a substantial portion of all risks and rewards incidental to the
ownership of the financial asset then: (i) if the Company does not retain control over the financial asset the financial asset is
derecognized and the rights and obligations incurred or retained in such transfer are separately recognized as assets or liabilities
(as the case may be); or (ii) if the Company retains control over the financial asset the financial asset continues to be recognized to
the extent of the Company’s continuing involvement in the financial asset transferred and a corresponding liability is recognized.If an entire transfer of a financial asset meets the criteria for derecognition the difference between (i) the carrying value of
the financial asset transferred at the date of derecognition; and (ii) the sum of the consideration received from the transfer and the
portion of the cumulative amount of changes in fair value directly recorded as other comprehensive income originally that
corresponds to the part derecognized (where the financial asset transferred is an investment in debt instruments at fair value
through other comprehensive income) is recognized in profit or loss. If part of a financial asset is transferred and the part
transferred entirely meets the criteria for derecognition the total carrying value of the financial asset immediately prior to the
transfer is allocated between the part derecognized and the part not derecognized in proportion to their relative fair value at the
date of transfer and the difference between (i) the carrying value of the part derecognized; and (ii) the sum of the consideration
received from the transfer of the part derecognized and the portion of the cumulative amount of changes in fair value directly
recorded as other comprehensive income originally that corresponds to the part derecognized (where the financial asset transferred
is an investment in debt instruments at fair value through other comprehensive income) is recognized in profit or loss.
4. Determination of fair value of financial assets and financial liabilities
The Company adopts the valuation techniques applicable to the current situations and with sufficient data available and
support of other information to determine the fair value of financial assets and financial liabilities. The Company classifies the
inputs used by the valuation techniques in the following levels and uses them in turn:
(1) Level 1 inputs: quoted market price (unadjusted) in an active market for an identical asset or liability available at the date
of measurement;
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(2) Level 2 inputs: inputs other than inputs included within Level 1 that are observable directly or indirectly. This category
includes quoted prices for similar assets or liabilities in active markets quoted prices for identical or similar assets or liabilities in
inactive markets observable inputs other than quoted prices (such as interest rate and yield curves observable during regular
intervals of quotation) and inputs validated by the market;
(3) Level 3 inputs: inputs that are unobservable. This category includes interest rate or stock volatility that cannot be directly
observed or validated by observable market data future cash flows from retirement obligations incurred in business combinations
and financial forecasts made using own data.
5. Impairment of financial instruments
The Company determines the impairment and assesses allowance for impairment of financial assets at amortized cost
investments in debt instruments at fair value through other comprehensive income contract assets lease payments receivable loan
commitments other than financial liabilities designated at fair value through profit or loss and financial guarantee contracts other
than financial liabilities designated at fair value through profit or loss and financial liabilities arising as a result of the transfer of
financial assets not meeting the criteria for derecognition or continuing involvement in the financial assets transferred on the basis
of expected credit impairment losses.Expected credit impairment loss is the weighted average of credit impairment losses on financial instruments taking into
account the possibility of default. Credit impairment loss is the present value of the difference between all contractual cash flows
receivable under the contract and estimated future cash flows discounted at the original effective interest rate i.e. the present value
of all cash shortages where the Company’s purchased or originated financial assets that have become credit impaired are
discounted at their credit-adjusted effective interest rate.With respect to purchased or originated financial assets that have become credit impaired at the balance sheet date the
Company recognizes an impairment loss equal to the cumulative amount of changes in lifetime expected credit impairment losses
since initial recognition.With respect to lease payments receivable accounts receivable arising from transactions within the meaning of ASBE 14
“Revenue” and contract assets the Company uses the simplified measurement method and recognizes an impairment loss equal to
the lifetime expected credit impairment losses.With respect to financial assets not using the measurement methods stated above at each balance sheet date the Company
assesses whether the credit risk has increased significantly since initial recognition and recognizes an impairment loss equal to the
lifetime expected credit impairment losses if the credit risk has increased significantly since initial recognition or to the expected
credit impairment losses within the next 12 months if the credit risk has not increased significantly since initial recognition.The Company uses reasonable and supportable information including forward-looking information and compares the
possibility of default at the balance sheet date with the possibility of default upon initial recognition to determine whether the
credit risk of the financial instruments has increased significantly since initial recognition.At the balance sheet date if the Company determines that a financial instrument has low credit risk the Company assumes
that its credit risk has not increased significantly since initial recognition.The Company assesses expected credit risk and measures expected credit impairment losses of financial instruments
individually or collectively. When assessing the financial instruments collectively the Company includes the financial instruments
in different groups according to their common risk characteristics.At each balance sheet date the Company re-assesses the expected credit impairment losses with the amount of increase in or
reversal of impairment loss recognized in profit or loss as impairment losses or gains. With respect to a financial asset at amortized
cost its carrying value recorded in the balance sheet is written off against the impairment loss. With respect to an investment in
debt instruments at fair value through other comprehensive income the Company recognizes the impairment loss in other
comprehensive income without reducing its carrying value.
6. Offsetting of financial assets and financial liabilities
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Except as stated above financial assets and financial liabilities are presented in the balance sheet separately without
offsetting each other. Financial assets and financial liabilities are offset and presented on a net basis in the balance sheet only if: (i)
the Company has a currently enforceable legal right to offset the recognized amounts; and (ii) the Company has an intention to
settle on a net basis or realize the assets and settle the liabilities simultaneously.With respect to the transfer of financial assets not meeting the criteria for derecognition the Company does not offset the
financial assets transferred against the relevant liabilities.
7. Standard for identifying and making provision of expected credit losses for receivables and contract assets
1. Accounts receivable and contract assets for which the allowance for expected credit impairment losses is recognized
collectively according to credit risk characteristics
Group type Basis forgrouping Method for measuring expected credit impairment losses
Banker’s acceptance bills receivable By reference to historical credit impairment loss experience and taking
into account the current situations and prediction of future economic
Commercial acceptance bills Type of bills conditions calculate the expected credit impairment losses according to
receivable the default risk exposure and rate of lifetime expected credit impairment
Financial company acceptance bills loss.receivable
By reference to historical credit impairment loss experience and taking
into account the current situations and prediction of future economic
Accounts receivable – aging group Age conditions prepare a comparison table of the age of accounts receivable
and rate of expected credit impairment loss and calculate the expected
credit impairment losses.Accounts receivable – optical Business By reference to historic credit loss experience and taking into account the
communication business group segment current situations and prediction of future economic conditions calculate
the expected credit losses according to the default risk exposure and 12-
Accounts receivable – conventional Business month or rate of lifetime expected credit loss.vehicle business group segment
By reference to historical credit impairment loss experience and taking
into account the current situations and prediction of future economic
Other receivables – aging group Age conditions prepare a comparison table of the age of other receivables and
rate of expected credit impairment loss and calculate the expected credit
impairment losses.Other receivables – conventional Business By reference to historic credit loss experience and taking into account the
vehicle business group segment current situations and prediction of future economic conditions calculate
the expected credit losses according to the default risk exposure and 12-
Other receivables – optical Business month or rate of lifetime expected credit loss.communication business group segment
By reference to historic credit loss experience and taking into account the
Long-term receivables – conventional Business current situations and prediction of future economic conditions calculate
vehicle business group segment the expected credit losses according to the default risk exposure and 12-
month or rate of lifetime expected credit loss.
2. Comparison table of the age and rate of expected credit impairment loss
Age Rate of expected credit loss Rate of expected credit losson accounts receivable (%) on other receivables (%)
Within 6 months (inclusive the same below) 0.5 5
7-12 months 5 5
1-2 years 20 10
2-3 years 60 50
Over 3 years 100 100
The age of accounts receivable/other receivables is calculated from the date of initial recognition.
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3. Determination of accounts receivable and contract assets for which the allowance for expected credit impairment losses is
recognized individually
With respect to the accounts receivable and contract assets whose credit risk is significantly different from that of the
relevant group an allowance for expected credit impairment losses is recognized individually.
12. Notes receivable
13. Accounts receivable
14. Accounts receivable financing
15. Other receivables
16. Contract assets
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the relevant
performance obligations and payment by the customer. Contract assets and contract liabilities under the same contract are
presented on a net basis.The right of the Company to payment that is unconditional except for the passage of time is presented as an account
receivable. The right of the Company to payment for goods already transferred to a customer is presented as a contract asset if that
right to payment is conditional on something other than the passage of time.
17. Inventories
1. Classification of inventories
Inventories include finished products or goods held for sale in the ordinary course of business work in progress and
materials and goods consumed in the process of production or rendering of services.
2. Valuation of inventories dispatched
The value of inventories dispatched is determined using the weighted average method at the end of the month in which they
were dispatched.
3. Inventory system
The perpetual inventory system is adopted.
4. Amortization of low-value consumables and packing materials
(1) Low-value consumables
Low-value consumables are amortized using the immediate write-off method.
(2) Packing materials
Packing materials are amortized using the immediate write-off method.
5. Inventory provision
(1) Recognition standard and method for provision of impairment for inventory
At the balance sheet date inventories are measured at the lower of cost and net realizable value. An amount equal to the cost
of an inventory in excess of its net realizable value is recognized as an inventory provision. The net realizable value of inventories
held directly for sale is the estimated selling price of such inventories less the estimated selling expenses and related taxes in the
ordinary course of business. The net realizable value of inventories to be further processed is the estimated selling price of finished
goods less the estimated cost of completion estimated selling expenses and related taxes in the ordinary course of business. At the
balance sheet date if part of an inventory has a contract price while the remaining part thereof does not have a contract price the
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net realizable value is determined separately which is compared with their cost to determine the amount of the inventory
provision recognized or reversed (as applicable).
18. Assets held for sale
19. Debt investments
20. Other debt investments
21. Long-term receivable
22. Long-term equity investments
1. Determination of joint control and significant influence
Joint control is the contractually agreed sharing of control of an arrangement which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control. Significant influence is the power to participate in the
financial and operating policy-making of an entity but is not control or joint control over those policies.
2. Determination of investment cost
(1) For an equity investment acquired through a business combination involving entities under common control if the
acquirer pays consideration for the business combination by cash transfer of non-monetary assets assumption of liabilities or
issuance of equity securities the initial investment cost of the long-term equity investment is the Company’s share of the carrying
value of the owners’ equity of the acquiree in the consolidated financial statements of the ultimate controller at the combination
date. The difference between: (i) the initial investment cost of the long-term equity investment; and (ii) the carrying value of the
consideration paid for the combination or the total par value of the shares issued (as applicable) is treated as an adjustment to the
capital reserve. In case the capital reserve is not sufficient to absorb the difference the remaining balance is charged against the
retained earnings.If a business combination is effected through multiple transactions by steps that constitute a package deal the Company
accounts for such transactions as one deal to gain control. If such transactions constitute a package deal the Company accounts for
such transactions as one transaction to acquire control. If such transactions do not constitute a package deal the initial investment
cost is the Company’s share of the carrying value of the owners’ equity of the acquiree in the consolidated financial statements of
the ultimate controller at the combination date; and the difference between: (i) the initial investment cost of the long-term equity
investment at the combination date; and (ii) the sum of the carrying value of long-term equity investment before the combination
and the carrying value of the consideration paid for acquisition of the additional shares at the combination date is treated as an
adjustment to the capital reserve. In case the capital reserve is not sufficient to absorb the difference the remaining balance is
charged against the retained earnings.
(2) For an equity investment acquired through a business combination involving entities not under common control the
initial investment cost is the fair value of the aggregate consideration paid at the date of acquisition.With respect to a long-term equity investment acquired through a business combination involving entities not under common
control that is effected through multiple transactions by steps the accounting thereof in the standalone financial statements is
different from that in the consolidated financial statements as stated below:
1) In the standalone financial statements the sum of the carrying value of the equity investment originally held in the
acquiree and the additional investment cost incurred is recorded as the initial investment cost of the equity investment changed
into the cost method.
2) In the consolidated financial statements it is required to judge whether such transactions constitute a package deal. If such
transactions constitute a package deal the Company accounts for such transactions as one transaction to acquire control. If such
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transactions do not constitute a package deal the equity held in the acquiree prior to the acquisition date is remeasured at its fair
value at the acquisition date with the difference between its fair value and carrying value recognized as an investment income for
the current period; if the equity held in the acquiree prior to the acquisition date involves other comprehensive income under the
equity method such other comprehensive income is transferred to the income for the period in which the acquisition date falls
except for other comprehensive income arising from remeasurement of changes in net liabilities or net assets of defined benefit
plans.
(3) For an equity investment not acquired through business combination the initial investment cost is the purchase price
actually paid if it is acquired by cash or the fair value of the equity securities issued if it is acquired through issuance of equity
securities or in accordance with ASBE 12 “Debt Restructuring” if it is acquired through debt restructuring or ASBE 7 “Exchangeof Non-monetary Assets” if it is acquired through exchange of non-monetary assets.
3. Subsequent measurement and recognition of profit or loss
Long-term equity investments in investees over which the Company exercises control are accounted for using the cost
method. Long-term equity investments in associates and joint ventures are accounted for using the equity method.
4. Disposal of investment in a subsidiary through multiple transactions by steps until loss of control over the subsidiary
(1) Criteria for determining a package deal
Where the Company loses control over a subsidiary due to the disposal of equity investment in the subsidiary through
multiple transactions by steps the Company determines whether such transactions constitute a package deal taking into account
the transaction contract terms consideration received the transferee of the equity sold method of disposal time of disposal and
other information in respect of each step. If the terms conditions and financial effect of such transactions fall under one or more of
the circumstances set forth below such transactions are accounted for as a package deal generally:
1) such transactions are concluded simultaneously or in consideration of their mutual effect;
2) such transactions will achieve a complete business result only as a whole;
3) the occurrence of a transaction depends on the occurrence of at least another transaction; and/or
4) a transaction may be uneconomical when considered individually but is economical when considered together with other
transactions.
(2) Accounting treatment of transactions not constituting a package deal
1) Standalone financial statements
The difference between the carrying value of the equity disposed of and the disposal proceeds actually received is recognized
in profit or loss. If the remaining equity empowers the Company to exercise significant influence or joint control over the investee
the remaining equity is accounted for using the equity method; if the remaining equity does not empower the Company to exercise
control joint control or significant influence over the investee the remaining equity is accounted for in accordance with ASBE 22
“Recognition and Measurement of Financial Instruments”.
2) Consolidated financial statements
Before the loss of control the difference between the disposal proceeds and the Company’s share of the net assets of the
subsidiary corresponding to the long-term equity investment disposed of as calculated continuously from the acquisition date or
combination date is treated as an adjustment to the capital reserve (capital premium). In case the capital premium is not sufficient
to absorb the difference the remaining balance is charged against the retained earnings.Upon loss of control the remaining equity is remeasured at its fair value at the date of loss of control. The sum of the
consideration received from the disposal of the equity and the fair value of the remaining equity net of the Company’s share of the
net assets of the subsidiary as calculated continuously from the acquisition date or combination date according to the original
shareholding ratio is included in the investment income for the period during which the control was lost and charged against
goodwill. Other comprehensive income related to the equity investment in the subsidiary is transferred to the investment income
for the period during which the control was lost.
(3) Accounting treatment of transactions constituting a package deal
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1) Standalone financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however in the
standalone financial statements the difference between the proceeds from each disposal before loss of control and the carrying
value of the long-term equity investment corresponding to the investment disposed of is recognized in other comprehensive
income which is wholly transferred to profit or loss in the period during which the control was lost.
2) Consolidated financial statements
The Company accounts for such transactions as one deal to dispose of and lose control over the subsidiary; however in the
consolidated financial statements the difference between the proceeds from each disposal before loss of control and the
Company’s share of the net assets of the subsidiary corresponding to the investment disposed of is recognized in other
comprehensive income which is wholly transferred to profit or loss in the period during which the control was lost.
23. Investment property
Measurement model for investment property
Measured at cost
Method of depreciation or amortization
1. Investment properties include land use rights leased out or held for appreciation and buildings and structures leased out.
2. An investment property is measured initially at cost and subsequently using the cost model and depreciated or amortized
using the same method as fixed assets and intangible assets.
24. Fixed assets
(1) Criteria for recognition
Fixed assets are tangible assets held for the production of goods rendering of service lease or operation and management
with a service life of more than one accounting year. A fixed asset is recognized if the economic benefits relating to it are very
likely to flow to the Company and its cost can be reliably measured.
(2) Depreciation
Annual rate of
Type Method of depreciation Estimated service life Rate of residual value
depreciation
Buildings and
Straight line method 20-30 0-5 3.17-4.75
structures
Machinery and
Straight line method 5-10 5 9.50-19.00
equipment
Transportation
Straight line method 5 5 19.00
equipment
Office equipment and
Straight line method 5 5 19.00
others
25. Construction in progress
1. A construction in progress is recognized if the economic benefits relating to it are very likely to flow to the Company and
its cost can be reliably measured. Construction in progress is measured at the actual cost incurred before it is completed and ready
for the intended use.
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2. When a construction in progress is ready for intended use it is transferred to fixed assets at its actual construction cost. A
construction in progress that is ready for intended use but the final settlement of which has not yet been completed is transferred to
fixed assets at estimated value first and after the completion of the final settlement the estimated value is adjusted according to
the actual cost without adjusting the accumulated depreciation.Category Criteria and time for transfer of construction in progress to fixed assets
The main construction project and supporting project have been substantially
Buildings and structures completed reached the predefined design requirements and inspected and
accepted
Meet the design requirements or agreed standards after installation and
Machinery and equipment
commissioning
26. Borrowing costs
1. Recognition of capitalization of borrowing costs
Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying asset are
capitalized as part of the cost of the asset when they meet the condition for capitalization. Other borrowing costs are expensed
when they are incurred and recognized in profit or loss.
2. Period of capitalization of borrowing costs
(1) A borrowing cost is capitalized when all of the following conditions are satisfied: (i) the expenditures on the asset have
already been incurred; (ii) the borrowing cost has already been incurred; and (iii) the acquisition construction or production
activities necessary to prepare the asset for its intended use or sale have already commenced.
(2) Capitalization of borrowing costs is suspended during the period of abnormal interruption of acquisition construction or
production of a qualifying asset which lasts for more than three consecutive months. The borrowing costs incurred during the
period of suspension are recognized as expenses for the current period. The capitalization of borrowing costs is suspended until the
resumption of acquisition construction or production activities.
(3) Capitalization of borrowing costs ceases when a qualifying asset acquired constructed or produced gets ready for its
intended use or sale.
3. Rate and amount of capitalization of borrowing costs
For borrowings obtained specially for the acquisition construction or production of a qualifying asset the amount of
capitalization of the borrowing costs is the cost of the borrowings actually incurred in the current period (including amortized
discount or premium determined using the effective interest method) less the interest income from the part of borrowings that has
not yet been utilized and is deposited in banks or investment income from temporary investment of the borrowings. For general
borrowings occupied for the acquisition construction or production of a qualifying asset the amount of borrowing costs eligible
for capitalization is determined by multiplying the weighted average of the excess of cumulative expenditures on the asset over the
special-purpose borrowings by the capitalization rate of the general borrowings occupied.
29. Intangible assets
(1) Service life and basis for determination of service life estimates method of amortization or review
procedure
1. Intangible assets including land use right patents non-patent technologies etc. are initially measured at cost.
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2. An intangible asset with a finite service life is amortized in a systematic and reasonable manner according to the pattern in
which the economic benefits related to the intangible asset are expected to be realized or if that pattern cannot be determined
reliably using the straight line method as follows:
Item Service life and basis for determination of service life Method of amortization
Determine the service life to be 50 years according to the period
Land use right Straight line method
for title registration
Determine the service life to be 3 years according to the expected
Software use right Straight line method
beneficial period
Determine the service life to be 10 years according to the expected
Unpatented technology Straight line method
beneficial period
Determine the service life to be 10 years according to the expected
Trademarks and patents Straight line method
beneficial period
Determine the service life to be 10 years according to the expected
Customer resources Straight line method
beneficial period
Intangible asset with indefinite service life is not amortized but its service life is reviewed annually.
(2) Scope and accounting treatment of research and development (R&D) expenses
(1) Labor costs
Labor costs comprise the wages salaries basic pension insurance basic medical insurance unemployment insurance
worker’s compensation insurance maternity insurance and housing provident fund contributions paid to or for the R&D personnel
and service fees of the outsourced R&D personnel.With respect to the R&D personnel serving a number of R&D projects concurrently their labor costs are allocated to the
relevant R&D projects on a pro-rata basis according to the record of working hours spent by them in such R&D projects as
provided by the administrative department.With respect to the Company’s own R&D personnel and outsourced R&D personnel who are directly engaged in R&D
activities and also engaged in non-R&D activities their labor costs actually incurred are allocated between R&D expenses and
production and business expenses on a pro-rata basis in proportion to the percentage of working hours spent by them on different
posts as recorded or otherwise reasonably.
(2) Direct costs
Direct costs refer to the costs actually incurred by the Company in connection with R&D activities including (i) costs of
materials fuels and powers directly consumed; (ii) costs of development and fabrication of molds and process equipment used in
pilot trials and trial production purchasing costs of samples prototypes and general testing methods not classified as fixed assets
and inspection costs of trial produces; and (iii) operation maintenance calibration inspection testing repair and other costs of
instruments and equipment used in R&D activities.
(3) Depreciation expenses and long-term deferred expenses
Depreciation expenses refer to the depreciation expenses of instruments equipment and buildings used in R&D activities.With respect to the instruments equipment and buildings used in both R&D activities and non-R&D activities the
depreciation expenses actually incurred are allocated between R&D expenses and production and business expenses according to
the actual working hours and area used as recorded or otherwise reasonably.Long-term deferred expenses refer to the long-term deferred expenses incurred in the alteration modification renovation
and repair of R&D facilities which are recorded according to the amounts actually spent and amortized on a straight line basis
over the defined period.
(4) Amortization expenses of intangible assets
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Amortization expenses of intangible assets refer to the amortization expenses of software intellectual properties and non-
patented technologies (know-how licenses designs computing methods etc.) used in R&D activities.
(5) Design costs
Design costs refer to the costs incurred in the design of processes technical specifications rules of operation and operating
features in connection with the concept development and manufacturing of new products and new processes including the costs
of creative design activities conducted for the purpose of developing innovative creative and breakthrough products.
(6) Equipment commissioning costs and testing costs
Equipment commissioning costs refer to the costs incurred during the equipment preparation phase of
R&D activities including the costs of developing special-purpose production machines changing production
and quality control procedures developing new approaches and standards etc.The costs incurred for general equipment preparation and industrial engineering in connection with large-
scale mass and commercial production are excluded from the scope of aggregation.Testing costs include clinical trial costs for the development of new drugs field trial costs for exploration
and development technologies field experiment costs etc.
(7) Outsourced R&D expenses
Outsourced R&D expenses refer to the expenses of R&D activities that the Company engages external entities or individuals
at home or abroad to conduct provided that the results of such R&D activities will be owned by the Company and such R&D
activities are closely related to the primary business of the Company.
(8) Other expenses
Other expenses refer to the expenses that are not set forth above and directly related to R&D activities including the
expenses of technical documents and data material translation advisors and consultants high and new technology R&D insurance
retrieval verification evaluation appraisal and acceptance inspection of R&D achievements application registration and agency
service in respect of intellectual properties meetings travel communication etc.Expenditures on an internal R&D project at the research phase are recognized in profit or loss in the period in which they are
incurred. Expenditures on an internal R&D project at the development phase are recognized as an intangible asset if: (i) it is
technically feasible to complete the intangible asset so that it will be available for use or sale; (ii) it is intended to complete the
intangible asset so that it will be available for use or sale; (iii) the pattern in which the intangible asset will generate economic
results can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be
used internally the usefulness of the intangible asset; (iv) there are sufficient technical financial and other resources available to
complete the development activities and to use or sell the intangible asset; and (v) the expenditures attributable to the development
of the intangible asset can be reliably measured.
30. Impairment of long-term assets
With respect to long-term equity investments investment properties at cost fixed assets construction in progress right-of-
use assets intangible assets with a finite service life and other long-term assets if there’s an indication of impairment at the
balance sheet date the Company assesses their recoverable amount. Goodwill arising from business combinations and intangible
assets with an infinite service life are tested for impairment every year regardless of whether there’s an indication of impairment.Goodwill is tested for impairment together with the relevant groups of assets or combinations of groups of assets.
135DSBJ Annual Report 2025
If the recoverable amount of a long-term asset is less than its carrying value the difference is measured as impairment loss
on the asset and recognized in profit or loss.
31. Long-term deferred expenses
Long-term deferred expenses are expenses that have already been incurred but should be amortized over a period of more
than one year. Long-term deferred expenses are stated as the amount actually incurred and equally amortized over the benefit
period or established period. If an item of long-term deferred expenses will not benefit the subsequent periods the remaining
unamortized balance of the item is wholly transferred to profit or loss.
32. Contract liabilities
Contract assets or contract liabilities are presented in the balance sheet according to the relationship between the relevant
performance obligations and payment by the customer. Contract assets and contract liabilities under the same contract are
presented on a net basis.The Company’s obligation to transfer goods to a customer in exchange for the consideration paid or payable by the customer
is presented as a contract liability.
33. Employee benefits
(1) Accounting treatment of short-term employee benefits
The short-term employee benefits actually incurred are recognized as liabilities in the accounting period during which
employee services are rendered and included in profit or loss or the cost of related assets.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are classified as defined contribution plans and defined benefit plans.
(1) In the accounting period during which employee services are rendered the amount contributable as calculated according
to the defined contribution plan is recognized as liabilities and included in profit or loss or the costs of related assets.
(2) The accounting treatment of a defined benefit plan generally involves the following steps:
1) According to the projected unit credit method use unbiased and consistent actuarial assumptions to estimate demographic
variables and financial variables measure the obligation arising from the defined benefit plan and determine the period to which
the relevant obligation belongs. Meanwhile discount the obligation arising from the defined benefit plan in order to determine the
present value of the benefit plan obligation and the current service cost;
2) If the defined benefit plan has assets the deficit or surplus resulting after reducing the present value of the defined benefit
obligation by the fair value of the asset of the defined benefit plan is recognized as a net liability or asset of the defined benefit
plan. If the defined benefit plan has a surplus the net assets of the defined benefit plan are measured at the lower of surplus in the
defined benefit plan and asset ceiling;
3) At the end of the current period the cost of employee benefits arising from the defined benefit plan is recorded as service
cost net interest on the net liabilities or net assets of the defined benefit plan and changes arising from remeasurement of the net
liabilities or net assets of the defined benefit plan where the service cost and the net interest on the net liabilities or net assets of
the defined benefit plan are included in profit or loss or the cost of related assets and the changes arising from remeasurement of
the net liabilities or net assets of the defined benefit plan are included in other comprehensive income which will not be reversed
to profit or loss in subsequent periods but may be transferred within the scope of equity.
136DSBJ Annual Report 2025
(3) Accounting treatment of termination benefits
(1) when the Company can no longer withdraw the offer of termination benefits as a result of termination of employment or
redundancy; or (2) the Company recognizes the restructuring costs or expenses relating to payment of termination benefits
whichever the earlier the employee benefit liabilities arising from recognition of termination benefits are recognized in profit or
loss.
(4) Accounting treatment of other long-term employee benefits
Other long-term employee benefits are accounted for in accordance with the provisions applicable to defined contribution
plans if they are qualified as defined contribution plans otherwise are accounted for in accordance with the provisions applicable
to defined benefit plans. In order to simplify the accounting the total net amount of the cost of employee benefits arising from the
defined benefit plans that is recorded as service cost net interest on the net liabilities or net assets of the other long-term employee
benefits changes arising from remeasurement of the net liabilities or net assets of the other long-term employee benefits and other
components is included in profit or loss or the cost of related assets.
34. Provisions
1. Provisions are recognized when the Company has a present obligation as a result of any external guarantee litigations
product quality warranty onerous contract or other contingencies and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation and the amount of the obligation can be reliably measured.
2. Provisions are initially measured according to the best estimates of the expenditures required to settle the related present
obligations. The carrying value of provisions is reviewed at the balance sheet date.
35. Share-based payments
1. Types of share-based payments
Share-based payments include equity-settled share-based payment and cash-settled share-based payment.
2. Accounting treatment of implementation amendment and termination of share-based payment plans
(1) Equity-settled share-based payment
With respect to an equity-settled share-based payment that is granted in exchange for the services of employees if the right
can be immediately exercised after the grant at the date of the grant the fair value of the equity instruments is included in the
relevant costs or expenses and the capital reserve is adjusted accordingly; if the right may not be exercised until the vesting period
comes to an end or until the specified performance conditions are met at each balance sheet date within the vesting period the
services received in the current period are based on the best estimate of the exercisable equity included in the relevant costs or
expenses at the fair value of the equity instruments at the date of grant and the capital reserve is adjusted accordingly.An equity-settled share-based payment that is granted in exchange for the services of any other party is measured at fair
value at the date of receipt of such services if the fair value of such services can be reliably measured or at the fair value of the
equity instruments at the date of receipt of such services if the fair value of such services cannot be reliably measured but the fair
value of the equity instruments can be reliably measured. The services are included in the relevant costs or expenses and the
owners’ equity is increased accordingly.
(2) Cash-settled share-based payment
With respect to a cash-settled share-based payment that is granted in exchange for the services of employees if the right can
be immediately exercised after the grant at the date of grant the fair value of the liability undertaken by the Company is included
in the relevant costs or expenses and the liabilities are increased accordingly; if the right may not be exercised until the vesting
137DSBJ Annual Report 2025
period comes to an end or until the specified performance conditions are met at each balance sheet date within the vesting period
the services received in the current period are based on the best estimate about the exercisable right included in the relevant costs
or expenses and the corresponding liabilities at the fair value of the liability undertaken by the Company.
(3) Amendment and termination of share-based payment plans
If such amendment results in an increase in the fair value of the equity instruments granted the Company recognizes a
corresponding increase in the services received according to the increase in the fair value of the equity instruments. If such
amendment results in an increase in the number of the equity instruments granted the Company recognizes a corresponding
increase in the services received according to the fair value of the additional equity instruments granted. If the Company amends
the vesting conditions in a manner favorable to the employees the Company will take into account the vesting conditions as
amended in the accounting thereof.If such amendment results in a decrease in the fair value of the equity instruments granted the Company continues to
recognize the services received based on the fair value of the equity instruments at the date of grant without taking into account
the decrease in the fair value of the equity instruments. If such amendment results in a decrease in the number of the equity
instruments granted the portion of the equity instruments reduced is deemed canceled. If the Company amends the vesting
conditions in a manner unfavorable to the employees the Company will not take into account the vesting conditions as amended in
the accounting thereof.If during the vesting period the Company cancels or settles any equity instruments granted (except for those canceled due to
failure to satisfy the vesting conditions) such cancellation or settlement is treated as an acceleration of vesting and the amount
that would have been recognized in the remaining vesting period is recognized immediately.
36. Preferred shares perpetual bonds and other financial instruments
37. Revenue
Accounting policies for recognition and measurement of revenue disclosed by business type
1. Revenue recognition principle
At contract commencement date the Company assesses a contract to identify each single performance obligation included in
the contract and whether such performance obligation shall be satisfied over time or at a point in time.A performance obligation shall be satisfied over time if it meets one of the following conditions otherwise it shall be
satisfied at a point in time: (i) the customer simultaneously receives and consumes the benefits provided by the Company’s
performance; (ii) the customer can control the work in process created during the Company’s performance; or (iii) the Company’s
performance does not create the goods with an alternative use and the Company has an enforceable right to payment for
performance completed to date.With respect to a performance obligation satisfied over time the Company recognizes revenue over time by measuring the
progress toward complete satisfaction of that performance obligation. If the Company is unable to reasonably measure the progress
of a performance obligation but expects to recover the costs incurred in satisfying the performance obligation the Company
recognizes revenue only to the extent of the costs incurred until such time that it can reasonably measure the progress of the
performance obligation. With respect to a performance obligation satisfied at a point in time the Company recognizes revenue
when the customer obtains control of the relevant goods or services. In determining whether the customer has obtained control of
any goods the Company considers the following indicators: (i) the Company has a present right to payment for the goods i.e. the
customer presently is obliged to pay for the goods; (ii) the Company has transferred the legal title to the goods to the customer i.e.the customer has the legal title to the goods; (iii) the Company has transferred physical possession of the goods to the customer i.e.the customer physically possesses the goods; (iv) the Company has passed the significant risks and rewards of ownership of the
goods to the customer i.e. the customer has the significant risks and rewards of ownership of the goods; (v) the customer has
accepted the goods; and (vi) other indicators showing that the customer has obtained control of the goods.
138DSBJ Annual Report 2025
2. Revenue measurement principle
(1) The Company measures revenue according to the transaction price allocated to each performance obligation. Transaction
price is the amount of consideration to which the Company expects to be entitled in exchange for transferring the relevant goods or
services to a customer excluding the amounts collected on behalf of third parties or expected to be returned to the customer.
(2) If a contract has any variable consideration the Company determines the best estimate of the variable consideration
according to the expected value or the most likely amount but the Company shall include in the transaction price some or all of an
amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative
revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.
(3) If a contract contains a significant financing component the Company determines the transaction price according to the
amount that the customer would have paid for the goods or services if it had paid cash when it obtained control of the goods or
services. The difference between such transaction price and the contract consideration is amortized over the term of the contract
using the effective interest method.
(4) If a contract includes two or more performance obligations at contract commencement date the Company allocates the
transaction price to each performance obligation on a relative standalone selling price basis.
3. Methods of revenue recognition
The Company is primarily engaged in the sale of electronic circuit optical modules (including optical chips) precision
components photoelectric display modules and other products the revenues from which constitute performance obligations to be
satisfied at a point in time. Revenue from sale of products on the domestic market is recognized when the Company has delivered
the products to the agreed place of delivery which has been accepted by the customer has received or has a present right to
payment for the products and it is probable that the economic benefits associated with the transaction will flow to the Company.Revenue from sale of products on the overseas market is recognized when the products delivered by the Company pursuant to the
contract have been cleared through customs and the Company has received the relevant export declaration form and bill of lading
has received or has a present right to payment for the products and it is probable that the economic benefits associated with the
transaction will flow to the Company.Different methods of revenue recognition and measurement for the same business type that adopts different business models.
38. Contract costs
39. Government grants
1. Government grants are recognized if (i) the Company meets the conditions attached to the government grants; and (ii) the
Company will receive the government grants. Government grants in the form of monetary assets are measured at the amount
received or receivable. Government grants in the form of non-monetary assets are measured at fair value or if their fair value is
unavailable at a nominal amount.
2. Determination and accounting treatment of government grants related to assets
Government grants related to assets are government grants which are offered for purchasing constructing or otherwise
acquiring long-term assets as provided by the applicable government documents or in the absence of such express provision in the
applicable government documents whose primary condition is that the Company should purchase construct or otherwise acquire
long-term assets. Government grants related to assets are offset against the carrying value of the relevant assets or recognized as
deferred income. Government grants related to assets recognized as deferred income are included in profit or loss over the service
life of the relevant assets on a reasonable and systemic basis. Government grants measured at nominal amount are directly
recognized in profit or loss. In case of a sale transfer retirement or damage of the relevant assets before the end of the intended
service life the balance of the unallocated deferred income is transferred to profit or loss for the period in which the assets are
disposed of.
3. Determination and accounting treatment of government grants related to income
139DSBJ Annual Report 2025
Government grants related to income are government grants other than those related to assets. Government grants related to
both assets and income where it is difficult to make a distinction between the portion related to assets and the portion related to
income are wholly classified as government grants related to income. Government grants related to income as compensation for
costs expenses or losses to be incurred in subsequent periods are recognized as deferred income and in the period for recognizing
the relevant costs expenses or losses included in profit or loss or offset against the relevant costs. Government grants related to
income as compensation for costs expenses or losses already incurred are directly included in profit or loss or offset against the
relevant costs.
4. Government grants related to day-to-day operations of the Company are recognized in other income or offset against the
relevant costs and expenses depending on the nature of economic business. Government grants not related to day-to-day operations
of the Company are recognized in non-operating revenues or expenses.
5. Accounting treatment of policy loan interest subsidy
If the financial authority directly appropriates any interest subsidy to the Company the interest subsidy is recognized as a
reduction in the borrowing cost.
40. Deferred tax assets and deferred tax liabilities
1. The difference between the tax base of an asset or liability and its carrying value or in case of an item not recognized as
an asset or liability whose tax base can be determined according to the applicable tax law the difference between its tax base and
carrying value is recognized as a deferred tax asset or deferred tax liability according to the tax rate applicable to the period in
which the asset or liability is expected to be recovered or settled.
2. Deferred tax assets are recognized to the extent of the amount of income tax payable that will be available in future
periods against which deductible temporary differences are deductible. At the balance sheet date deferred tax assets not
recognized in previous periods are recognized if there’s conclusive evidence that it is probable that sufficient taxable income will
be available in future periods against which the deductible temporary differences are deductible.
3. At the balance sheet date the carrying value of deferred tax assets is reviewed and written down to the extent that it is no
longer probable that sufficient taxable income will be available in future periods to allow the benefit of the deferred tax assets to
be utilized. If it is probable that sufficient taxable income will be available the amount of write-down is reversed.
4. The income taxes and deferred income taxes are included in profit or loss as income tax expenses or gains except the
income taxes arising from any: (i) business combination; or (ii) transaction or event directly recognized in owners’ equity.
5. Deferred income tax assets and deferred income tax liabilities are offset and presented on a net basis if: (i) the Company
has a legal right to settle current tax assets and current tax liabilities on a net basis; and (ii) the deferred tax assets and deferred tax
liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities
which intend either to settle current tax assets and current tax liabilities on a net basis or to realize the assets and liabilities
simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed.
41. Leases
(1) Accounting treatment of leases under which the Company is lessee
At the lease commencement date a lease that has a lease term of 12 months or less and does not contain a purchase option is
a short-term lease. A lease of an asset with a low value when new is a lease of a low-value asset. Where the Company subleases or
expects to sublease a leased asset the original lease is not classified as a lease of a low-value asset.Except short-term leases and leases of low-value assets at the lease commencement date the Company recognizes right-of-
use assets and lease liabilities for the lease.
(1) Right-of-use assets
140DSBJ Annual Report 2025
Right-of-use assets are initially measured at cost which cost includes: (i) the amount of the lease liability initially measured;
(ii) any lease payments made at or before the commencement date less any lease incentives received; (iii) any initial direct costs
incurred by the lessee; and (iv) estimated costs to be incurred by the lessee in dismantling and removing the lease asset restoring
the site on which it is located or restoring the lease asset to the condition required by the terms and conditions of the lease.The Company depreciates the right-of-use assets using the straight-line method. If it is reasonable to be certain that the
ownership of a lease asset can be acquired by the end of the lease term the Company depreciates the right-of-use asset over its
remaining service life. Otherwise the Company depreciates the right-of-use asset over the shorter of the lease term and its
remaining service life.
(2) Lease liabilities
At the lease commencement date the Company measures a lease liability at the present value of the lease payments that have
not been paid at that date. The present value of lease payments is determined using the interest rate implicit in the lease as the
discount rate. If that rate cannot be readily determined the lessee’s incremental borrowing rate is used. The difference between the
lease payments and their present value is unrecognized financing costs. Interest expenses are measured for each period within the
lease term using the discount rate for determining the present value of lease payments and recognized in profit or loss. Variable
lease payments not included in the measurement of lease liabilities are recognized in profit or loss in the period during which they
are incurred.At the lease commencement date if there are changes in the in-substance fixed lease payments amounts expected to be
payable under residual value guarantee the index or rate used to determine the lease payments the result of an assessment of
purchase option renewal option or termination option or the actual exercise of such options the Company re-measures the lease
liability based on the present value of lease payments as adjusted and adjusts the carrying value of the right-of-use assets
accordingly. If the carrying value of the right-of-use asset is reduced to zero but the lease liability needs to be further reduced the
balance is recognized in profit or loss.
(3) Sale and leaseback
In accordance with ASBE 14 “Revenue” the Company assesses and determines whether the transfer of any asset in a sale
and leaseback transaction should be accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company measures the right-of-use asset arising from the
leaseback at the proportion of the original carrying value of the asset that relates to the right of use retained by the Company.Accordingly the Company recognizes only the amount of any gain or loss that relates to the rights transferred to the lessor.Otherwise the Company continues the recognition of the transferred asset and recognizes a financial liability equal to the
amount of transfer proceeds in accordance with ASBE 22 “Financial Instruments: Recognition and Measurement” at the same time.
(2) Accounting treatment of leases under which the Company is lessor
At the lease commencement date the Company classifies a lease that transfers substantially all the risks and rewards
incidental to ownership of a lease asset to the lessee as a finance lease and all other leases as operating leases.
(1) Operating lease
Lease receipts are recognized as lease income using the straight-line method over the lease term. Initial direct costs incurred
are capitalized amortized on the same basis as the recognition of lease income and recognized in profit or loss by installments.Variable lease payments related to the operating lease which are not included in the lease receipts are recognized in profit or loss
in the period during which they are incurred.
(2) Finance lease
At the lease commencement date the Company recognizes the finance lease payments receivable based on the net
investment in the lease (equal to the sum of unguaranteed residual value and the present value of lease receipts that are not
received at the lease commencement date and discounted using interest rate under the lease) and derecognizes the assets held
141DSBJ Annual Report 2025
under the finance lease. The Company calculates and recognizes interest income using the interest rate implicit in the lease over
the lease term.Variable lease payments that are not included in the measurement of the net investment in a lease are recognized in profit or
loss when they are incurred.
(3) Sale and leaseback
In accordance with ASBE 14 “Revenue” the Company assesses and determines whether the transfer of any asset in a sale
and leaseback transaction should be accounted for as a sale of that asset.If the transfer of an asset is accounted for as a sale of the asset the Company accounts for the purchase of assets in
accordance with other applicable standards and accounts for the lease of assets in accordance with ASBE 21 “ Leases”.Otherwise the Company does not recognize the transferred asset instead recognizes a financial asset equal to the amount of
transfer proceeds in accordance with ASBE 22 “Financial Instruments: Recognition and Measurement”.
42. Other Significant accounting policies and accounting estimates
1. Basis for the adoption of hedge accounting and its accounting treatment
(1) A hedge includes a fair value hedge/cash flow hedge/hedge of a net investment in a foreign operation.
(2) A hedging relationship qualifies for hedge accounting if all of the following conditions are met: (i) the hedging
relationship consists only of eligible hedging instruments and eligible hedged instruments; (ii) at the commencement of the hedge
there is formal designation of hedging instruments and hedged item and documentation of the hedging relationship and the
Company’s risk management objective and strategy for undertaking the hedge; and (iii) the hedging relationship meets the hedging
effectiveness requirements.The Company recognizes that the hedging relationship meets effectiveness requirements if all of the following conditions are
met: (i) there is an economic relationship between the hedged item and the hedging instruments; (ii) the effect of credit risk does
not dominate the value changes that result from the economic relationship between the hedged item and the hedging instruments;
and (iii) the hedge ratio of the hedging relationship is the same as the ratio of the quantity of the hedged item that the Company
actually hedges to the number of hedging instruments that the Company actually uses to hedge such hedged item but does not
reflect an imbalance between the weightings of the hedged item and the hedging instrument.The Company assesses whether a hedging relationship meets the hedge effectiveness requirements at commencement and on
an ongoing basis. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the
risk management objective for that designated hedging relationship remains the same the hedging relationship will be rebalanced.
(3) Hedge accounting treatment
1) Fair value hedge
* The gain or loss on a hedging instrument is recognized in profit or loss (or other comprehensive income if the hedging
instrument hedges a non-trading equity instrument (or a component thereof) at fair value through other comprehensive income).* The gain or loss on a hedged item arising from risk exposure is recognized in profit or loss with a corresponding
adjustment to the book balance of the hedged item not measured at fair value. If the hedged item is a financial asset (or a
component thereof) that is measured at fair value through other comprehensive income in accordance with Article XVIII of ASBE
22 “Financial Instruments: Recognition and Measurement” the gain or loss arising from the risk exposure on the hedged item is
recognized in profit or loss without adjusting its book balance which has already been measured at fair value; if the hedged item is
a non-trading equity instrument (or a component thereof) for which the Company has elected to present changes at fair value
through other comprehensive income the gain or loss arising from the risk exposure on the hedged item is recognized in other
comprehensive income without adjusting its book balance which has already been measured at fair value.
142DSBJ Annual Report 2025
When a hedged item is an unrecognized firm commitment (or a component thereof) the cumulative change in fair value of
the hedged item subsequent to its designation is recognized as an asset or a liability with a corresponding gain or loss recognized
in profit or loss. When a firm commitment is performed to acquire an asset or assume a liability the initial book balance of the
asset or the liability is adjusted to include the cumulative change in fair value of the hedged item that was previously recognized.For a hedged item that is a financial instrument (or a component thereof) measured at amortized cost any adjustment on the
book balance of the hedged item is amortized to profit or loss based on a recalculated effective interest rate at the date that
amortization begins. For a financial asset (or a component thereof) that is a hedged item and measured at fair value through other
comprehensive income in accordance with Article XVIII of ASBE 22 “Financial Instruments: Recognition and Measurement” the
cumulative gain or loss previously recognized thereon is amortized in the same manner and recognized in profit or loss without
adjusting its book balance.
2) Cash flow hedges
* The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income as cash flow hedge reserve while the ineffective portion is recognized in profit or loss. The cash flow
hedge reserve is recognized at the lower of the following (in absolute amount): A. the cumulative gain or loss on the hedging
instrument from the commencement of the hedge; B. the cumulative change in the present value of the estimated future cash flows
of the hedged item from the commencement of the hedge.* If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability
or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair
value hedge accounting is applied the Company transfers out the amount of cash flow hedge reserve previously recognized in
other comprehensive income and includes it in the initial cost of the asset or the liability.* For other cash flow hedges the amount of cash flow hedge reserve previously recognized in other comprehensive income
is transferred to profit or loss in the same period the hedged forecast transaction affects profit or loss.
3) Hedges of a net investment in a foreign operation
The portion of the gain or loss on a hedging instrument that is determined to be an effective hedge is recognized in other
comprehensive income and reclassified from other comprehensive income into profit or loss on the disposal of the foreign
operation while the ineffective portion is recognized in profit or loss.
2. Accounting treatment related to share repurchase
When the Company repurchases its shares for the purpose of reducing its registered capital rewarding its employees or
otherwise if the purchased shares are to be held as treasury shares the treasury shares are recorded at the amount actually paid and
the relevant filing procedures are performed; if the repurchased shares are to be retired the difference between the total book value
of the shares retired and the amount actually paid therefore is recognized as a reduction in capital reserve and if the capital reserve
is not sufficient to absorb the difference the remaining balance is charged against the retained earnings. If the repurchased shares
are granted to the employees as equity-settled share-based payments the purchase price paid by the employees upon exercise of
their rights is recognized as a reduction in the cost of the relevant treasury shares vested in the employees and capital reserve
(other capital reserve) accumulated within the vesting period with a corresponding adjustment to capital reserve (share premium).
43. Significant changes in accounting policies and accounting estimates
(1) Significant changes in accounting policies
□ Applicable□ N/A
143DSBJ Annual Report 2025
44. Miscellaneous
VI. Taxation
1. Main categories of taxes and tax rates
Category of tax Tax base Tax rate
The output tax is calculated based on revenue from
Value-added tax sales of goods or rendering of services in accordance 13% 6% 5% 7%-25% for VAT for thewith the tax law net of the input tax deductible in the Company’s overseas subsidiaries
current period
If levied on the basis of price 1.2% * 70% of the
Property tax original value of the property; if levied on the basis of 1.2% or 12% (China)
rental 12% of the lease income
Urban maintenance
and construction tax Amount of turnover tax actually paid 5% or 7% (China)
Education surcharge Amount of turnover tax actually paid 3% (China)
Local education
surcharge Amount of turnover tax actually paid 2% (China)
9%、15%、16.50%、25%、0、21.75%-
Enterprise income tax Amount of taxable income 29.84%、17%、10%、20%、20.6%、24%、
30%、12%、16%、21.5%
Different rates of enterprise income tax applicable to the taxpayers:
Taxpayer Income tax rate
The Company Mutto Optronics Technology Co. Ltd. MFLEX Yancheng Co. Ltd. Yancheng
Dongshan Precision Manufacturing Co. Ltd. Suzhou RF Top Electronic Communication Co. Ltd.Suzhou Dongdai Electronic Technology Co. Ltd. Yancheng Dongshan Communication Technology
Co. Ltd. Suzhou Yongchuang Communication Technology Co. Ltd. Suzhou Jebson Intelligent 15.00%
Technology Co. Ltd. Suzhou Dongyue New Energy Technology Co. Ltd. and Yancheng Dongchuang
Precision Manufacturing Co. Ltd. Suzhou JDI Electronics Inc. Source Photonics (Chengdu) Co. Ltd.and Jiangsu Source Communications Technology Co. Ltd.Hong Kong Dongshan Precision Union Opoelectronic Co. Limited and other companies incorporated in
Hong Kong China 16.50%
Mutto Optronics Group Limited The Dii Group (BVI) Co. Limited Source Photonics Holdings
(Cayman) Limited 0
Federal corporate
Mflex Delaware Inc. Multi-Fineline Electronix Inc. (hereinafter referred to as Mflex) and other income tax rate 21%;
companies incorporated in the United States state corporate income
tax rate 0.75%-8.84%
Multi-Fineline Electronix Singapore Ptd. Ltd. and other companies incorporated in Singapore 17% (Singapore)
Multek Technologies Limited 15% (enjoying an 80%tax exemption)
Multek Technology Sweden AB 20.6% (Sweden)
Multek Technology Malaysia SDN.BHD 24% (Malaysia)
DSBJ Mexico S.DER.L.DEC.V. and other companies in Mexico 30.00%
Multi-Fineline Electronic (Thailand) Co. Ltd. Source Photonics Co. Ltd. 20.00%
Source Photonics (Macau) Commercial Offshore Limited 12.00%
Companies incorporated in Hungary 9.00%
Companies incorporated in Germany 30.88%
Companies incorporated in Portugal 21.50%
Companies incorporated in Morocco 21.50%
Companies incorporated in Slovakia 24.00%
Companies incorporated in Czech Republic 21.00%
Companies incorporated in Romania 16.00%
Other taxpayers not listed above 25.00%
144DSBJ Annual Report 2025
2. Tax preferences
1. Pursuant to the Administrative Measures on Certification and Management of High and New Technology Enterprises
(Guo Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo
(2016) No. 195) Suzhou Dongdai Electronic Technology Co. Ltd. Suzhou Yongchuang Communication Technology Co. Ltd.
Suzhou Jebson Intelligent Technology Co. Ltd. Source Photonics (Chengdu) Co. Ltd. and Jiangsu Source Communications
Technology Co. Ltd. passed the qualification review of high and new technology enterprises with a term of three years from 2023
to 2026 and therefore are subject to an enterprise income tax rate of 15% for the current period.
2. Pursuant to the Administrative Measures on Certification and Management of High and New Technology Enterprises
(Guo Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo
(2016) No. 195) Suzhou Dongyue New Energy Technology Co. Ltd. and Yancheng Dongchuang Precision Manufacturing Co.
Ltd. passed the qualification review of high and new technology enterprises with a term of three years from 2024 to 2027 and
therefore are subject to an enterprise income tax rate of 15% for the current period.
3. Pursuant to the Administrative Measures on Certification and Management of High and New Technology Enterprises
(Guo Ke Fa Huo (2016) No. 32) and Guidelines for the Accreditation of High and New Technology Enterprises (Guo Ke Fa Huo
(2016) No. 195) the Company and its subsidiaries including Mutto Optronics Technology Co. Ltd. Yancheng Dongshan
Precision Manufacturing Co. Ltd. MFLEX Yancheng Co. Ltd. Suzhou JDI Electronics Inc. and Suzhou RF Top Electronic
Communication Co. Ltd. passed the qualification review of high and new technology enterprises with a term of three years from
2025 to 2028 and therefore are subject to an enterprise income tax rate of 15% for the current period.
4. Multek Technologies Limited is subject to a corporate income tax rate of 15% under the Mauritius Corporate Income Tax
Act and as a global Class I company incorporated in Mauritius but operating abroad enjoys an 80% tax exemption so its effective
corporate income tax rate is 3%. From July 1 2025 to June 30 2028 enterprises entitled to the preferential tax rate and achieving
annual taxable income of over MUR 24.00 million shall pay an additional fair share contribution tax at 2%.
5. Pursuant to the Announcement of the Ministry of Finance and State Taxation Administration on Further Improvement to
the Policy on the Additional Pre-tax Deduction of Research and Development Expenses (Announcement No. 7 of 2023 by the
Ministry of Finance and State Taxation Administration) if an enterprise’s R&D expenses actually incurred during R&D activities
are not recognized in profit or loss for creation of intangible assets on the basis of actual deduction as specified from January 1
2023 there is an additional pre-tax deduction at 100% of the incurred amount; if intangible assets are created from January 1
2023 the R&D expenses may be allocated at 200% of the costs of such intangible assets prior to tax payment.
6. Pursuant to Article 244quaterB of the General Tax Code of France Eurostyle Systems Tech Center France GMD
Eurocast Eurocast Delle Eurocast Chateauroux and Eurocast Reyrieux located in France are entitled to the policy of offsetting
taxes against R&D expenditures. R&D expenditures that may be offset include: salaries of R&D personnel and technicians
depreciation of assets related to R&D expenses for R&D outsourcing patent-related expenditures etc. The tax credit is calculated
as follows: the eligible R&D expenditures in the year may be offset at 30% for the portion within EUR 10.00 million and at 5% for
the portion over EUR 10.00 million; the tax not fully offset in the year may be carried over during the effective period of the
policy.
7. Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration on Additional Deductions
for Value-added Taxes of Advanced Manufacturing Enterprises (Announcement No. 43 of 2023) from January 1 2023 to
December 31 2027 advanced manufacturing enterprises are allowed to deduct an additional 5% of the deductible input tax
amount from the payable VAT amount.
8. Export rebates for VAT
Pursuant to the Notice on Allowing Tax Rebate for Water Electricity and Gas Consumption in Export Processing Areas
(Guo Shui Fa [2002] No. 116) released by the State Taxation Administration Source Photonics (Chengdu) Co. Ltd. is entitled to
the tax rebate policy at 13% for the water electricity and gas consumption in the export processing area.
145DSBJ Annual Report 2025
Pursuant to the Value-added and Non-value-added Business Tax Act of Taiwan China Source Photonics Co. Ltd. is subject
to value-added business tax for the excess of the output tax over the input tax where the input tax may offset against the output tax.The prevailing value-added business tax rate is 5% while goods sold overseas (exported) are entitled to the tax rate of zero.Meanwhile for the over payment of business taxes for goods or services entitled to zero tax rate for acquisition of fixed assets
and for acquisition transfer dissolution or request for de-registration the tax payer may request tax rebate and the tax will be
refunded after being verified by the competent tax authority.Pursuant to the Implementation Measures for the Interim Regulations of the People’s Republic of China on Value-added Tax
where the goods manufactured by a domestic (foreign) manufacturing enterprise holding an export license are exported by itself or
through a foreign trade agency such goods are entitled to tax exemption and tax rebate unless otherwise provided.VII. Notes to items of the consolidated financial statements
1. Cash and bank balances
In RMB
Item Closing balance Opening balance
Cash on hand 620829.32 266540.67
Bank deposits 6104101796.83 5771485841.70
Other cash and bank balances 1545560882.95 1400578869.92
Total 7650283509.10 7172331252.29
Incl.: Total amounts deposited
2753243996.702457343027.80
abroad
Other information:
See Notes V(III)4 to the Financial Statements for cash and cash equivalents subject to restrictions on use and cash and bank
balances not classified as cash and cash equivalents.
2. Financial assets held for trading
In RMB
Item Closing balance Opening balance
Financial assets at fair value through profit or loss 201553860.61 78144342.95
Incl.:
Investments in equity instruments 124912226.68 63212376.92
Derivatives 65126316.01 14931966.03
Wealth management products 11515317.92
Total 201553860.61 78144342.95
4. Notes receivable
(1) Notes receivable by category
In RMB
Item Closing balance Opening balance
Commercial acceptance bills 9037098.60
146DSBJ Annual Report 2025
Total 9037098.60
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
Type doubtful accounts Carrying doubtful accounts Carrying
Ratio of value Ratio of value
Amount % Amount Amount % Amount
provision provision
Incl.:
Allowan
ce
recogniz 908251 45412.5 903709
100.00%0.50%
ed 1.16 6 8.60
collectiv
ely
Incl.:
Commer
cial 908251 45412.5 903709
100.00%0.50%
acceptan 1.16 6 8.60
ce bills
90825145412.5903709
Total 0.00 100.00% 0.50%
1.1668.60
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type Recovered or Closing balancebalance Recognized Written off Others
reversed
Allowance
recognized 45412.56 -45412.56
collectively
Total 45412.56 -45412.56
5. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 9821142620.45 7669860368.06
Within 6 months 9694632577.94 7558742455.97
7-12 months 126510042.51 111117912.09
1-2 years 94823755.62 30428150.63
2-3 years 26996591.42 42084100.70
147DSBJ Annual Report 2025
Over 3 years 257853544.65 218266298.53
3-4 years 36572094.64 33424157.23
4-5 years 32577185.82 103896595.98
Over 5 years 188704264.19 80945545.32
Total 10200816512.14 7960638917.92
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Type Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Allowance
176594163612129817582208575142706598.
recognized 1.73% 92.65% 0.73% 98.79%
186.18411.8974.2994.3695.3799
individually
Allowance 100242
244459977976790241239666766275
recognized 22325.9 98.27% 2.44% 99.27% 3.03%
040.193285.778023.56597.061426.50
collectively 6
102008
408071979274796063297180766345
Total 16512.1 100.00% 4.00% 100.00% 3.73%
452.085060.068917.92892.438025.49
4
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Aging group 7170220901.02 216624006.04 3.02%
Conventional vehicle business 1418921042.01 18165569.17 1.28%
group
Optical communication 1435080382.93 9669464.98 0.67%
business group
Total 10024222325.96 244459040.19
Allowance for doubtful accounts recognized collectively: by aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Within 6 months 6944475971.56 34722379.85 0.50%
7-12 months 29752785.82 1487639.29 5.00%
1-2 years 18217801.33 3643560.27 20.00%
2-3 years 2509789.20 1505873.52 60.00%
Over 3 years 175264553.11 175264553.11 100.00%
Total 7170220901.02 216624006.04
148DSBJ Annual Report 2025
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type
balance Recovered or
Closing balance
Recognized Written off Others
reversed
Allowance
recognized 57514295.37 70498760.02 2751648.54 2685542.96 41036548.00 163612411.89
individually
Allowance
recognized 239666597.06 -11117686.02 -2308936.45 1513938.62 15115131.32 244459040.19
collectively
Total 297180892.43 59381074.00 442712.09 4199481.58 56151679.32 408071452.08
(4) The top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Closing % of total closing Closing balance of allowance
Total closing balance of
Company Closing balance of balance of balance of accounts for doubtful accounts
accounts receivable and
name accounts receivable contract receivable and receivable and impairment of
contract assets
assets contract assets contract assets
Top 1 1962763298.59 1962763298.59 19.24% 9855825.76
Top 2 499013149.43 499013149.43 4.89% 2657573.97
Top 3 455053347.43 455053347.43 4.46% 2275266.74
Top 4 378152891.15 378152891.15 3.71% 1055962.00
Top 5 343466482.53 343466482.53 3.37% 1759322.87
Total 3638449169.13 3638449169.13 35.67% 17603951.34
7. Accounts receivable financing
(1) Accounts receivable financing by category
In RMB
Item Closing balance Opening balance
Banker’s acceptance bills 285277607.54 252612009.41
Total 285277607.54 252612009.41
(2) Accounts receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Type Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Incl.:
149DSBJ Annual Report 2025
Allowance
285277285277252612252612
recognized 100.00% 100.00%
607.54607.54009.41009.41
collectively
Incl.:
Banker’s
285277285277252612252612
acceptance 100.00% 100.00%
607.54607.54009.41009.41
bills
285277285277252612252612
Total 100.00% 100.00%
607.54607.54009.41009.41
(4) Accounts receivable financing pledged at the end of the current period
In RMB
Item Amount pledged at the end of the period
Banker’s acceptance bills 73295416.52
Total 73295416.52
(5) Accounts receivable financing already endorsed or discounted but not yet become due at the balance
sheet date
In RMB
Amount derecognized at the end of the Amount not derecognized at the end of
Item
period the period
Banker’s acceptance bills 1054462870.06
Total 1054462870.06
8. Other receivables
In RMB
Item Closing balance Opening balance
Other receivables 165859090.82 45836662.39
Total 165859090.82 45836662.39
(3) Other receivables
1) Other receivables by nature
In RMB
Nature of accounts Closing book balance Opening book balance
Loan and reserve fund 25105050.07 6147448.39
Security deposit 123410363.54 34357968.88
Temporary payment receivable and
114240978.4921095827.83
others
Total 262756392.10 61601245.10
2) Other receivables by age
In RMB
150DSBJ Annual Report 2025
Age Closing book balance Opening book balance
Within 1 year (inclusive) 116532010.22 27206070.82
1-2 years 28817442.05 18570040.87
2-3 years 41699919.12 6555716.67
Over 3 years 75707020.71 9269416.74
3-4 years 36405825.94 2020570.56
4-5 years 2176276.43 2933721.60
Over 5 years 37124918.34 4315124.58
Total 262756392.10 61601245.10
3) Other receivables by the method of recognition of allowance for doubtful accounts
□ Applicable □ N/A
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Type Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Allowan
ce
recogniz 234070 234070 234070 234070
0.89%100.00%3.80%100.00%
ed 4.91 4.91 4.91 4.91
individu
ally
Incl.:
Allowan
ce
recogniz 260415 945565 165859 592605 134238 458366
99.11%36.31%96.20%22.65%
ed 687.19 96.37 090.82 40.19 77.80 62.39
collectiv
ely
Incl.:
262756968973165859616012157645458366
Total 100.00% 36.88% 100.00% 25.59%
392.1001.28090.8245.1082.7162.39
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Conventional vehicle business
122142108.1279255890.3964.89%
group
Optical communication
59637159.2314473.280.02%
business group
Aging group 78636419.84 15286232.70 19.44%
Incl.: Within 1 year 57822116.31 2891105.81 5.00%
1-2 years 7078824.94 707882.49 10.00%
151DSBJ Annual Report 2025
2-3 years 4096468.39 2048234.20 50.00%
Over 3 years 9639010.20 9639010.20 100.00%
Total 260415687.19 94556596.37
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit impairment losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful Lifetime expected Lifetime expected Total
accounts 12-month expected credit impairment loss credit impairment loss
credit impairment loss
(not credit impaired) (credit impaired)
Balance as at January 1
1360303.541857004.0912547275.0815764582.71
2025
In the current period the
balance as at January 1
2025
- Transferred to stage II -422118.73 422118.73
- Transferred to stage III -409646.84 409646.84
Recognized -164470.31 324325.47 -2756279.85 -2596424.69
Written off 510629.68 510629.68
Other changes 2737025.92 2957.77 81499789.25 84239772.94
Balance as at December 3510740.42 2196759.22 91189801.64 96897301.28
312025
6) The top 5 debtors in terms of closing balance of other receivables
In RMB
Company Nature of account Closing Age % of total closing balance Closing balance of allowancename balance of other receivables for doubtful accounts
Top 1 Temporary payment Within 1receivable and others 35063052.14 year 13.34% 1753152.61
Top 2 Security deposit 17177806.02 1-5 years 6.54% 14268482.73
Top 3 Security deposit 15157042.45 1-5 years 5.77% 10373457.87
Top 4 Temporary payment Within 1receivable and others 14106207.42 year 5.37% 705310.37
Top 5 Temporary payment Within 1receivable and others 11000000.00 year 4.19% 550000.00
Total 92504108.03 35.21% 27650403.58
9. Advances to suppliers
(1) Advances to suppliers by age
In RMB
Closing balance Opening balance
Age
Amount % Amount %
Within 1 year 254266212.51 92.72% 88459876.91 94.23%
152DSBJ Annual Report 2025
1-2 years 10599327.43 3.86% 1897007.20 2.02%
2-3 years 4918838.84 1.79% 1923162.05 2.05%
Over 3 years 4481309.57 1.63% 1595419.53 1.70%
Total 274265688.35 93875465.69
(2) The top 5 suppliers in terms of closing balance of advances to suppliers
Company name Book balance (RMB) % of the total balance of advances
Top 1 27200000.00 9.92
Top 2 25202190.66 9.19
Top 3 20636000.00 7.52
Top 4 17956000.00 6.55
Top 5 9389293.55 3.42
Subtotal 100383484.21 36.60
(1) Categories of inventories
In RMB
Closing balance Opening balance
Inventory provision Inventory provision
Item or allowance for or allowance for
Book balance impairment of Carrying value Book balance impairment of Carrying value
contract fulfilling contract fulfilling
costs costs
Raw
2758783839.14316612692.032442171147.111654514762.22177951960.021476562802.20
materials
Work in
2247197239.03202493545.702044703693.331003084859.7282988158.81920096700.91
progress
Goods on
4985685219.60716850179.364268835040.244503260856.05749742579.853753518276.20
hand
Circulating
100291581.3413639898.8986651682.452516343.4238514.882477828.54
materials
Materials
for
86582618.8886582618.88
consigned
processing
Total 10178540497.99 1249596315.98 8928944182.01 7163376821.41 1010721213.56 6152655607.85
(2) Inventory provision or allowance for impairment of contract fulfilling costs
In RMB
Increase in the current period Decrease in the current period
Opening
Item Reversed or Closing balancebalance Recognized Others Others
written off
Raw materials 177951960.02 111401268.23 133606551.64 106347087.86 316612692.03
Work in
82988158.81104331816.3760369498.0645195927.54202493545.70
progress
153DSBJ Annual Report 2025
Goods on hand 749742579.85 363023491.06 34418219.78 430334111.33 716850179.36
Circulating
38514.881898924.7011702459.3113639898.89
materials
1010721213.1249596315.
Total 580655500.36 240096728.79 581877126.73
5698
Basis for determining the net realizable value and reason for reversing or writing off the provisions for
decline in value of inventories in the current period
Reason for
Item Basis for determining the net realizable value
Reason for reversing the writing off the
inventory provision inventory
provision
Raw materials The net realizable value is the estimated The Company
Work in progress selling price of finished goods less the The circumstances that has sold or used
Other circulating estimated cost of completion estimated previously caused the the inventories
materials selling expenses and related taxes inventory to be written for which a
down no longer exist provision for
The net realizable value is the estimated resulting in that the net impairment of
Goods on hand selling price of finished goods less the realizable value of the inventory has
estimated selling expenses and related taxes inventory is greater than its been madecarrying amount during the
current period
13. Other current assets
In RMB
Item Closing balance Opening balance
Cost of returned goods receivable 25696670.02 28122898.55
Deductible input tax 784368551.60 743118926.80
Prepaid enterprise income tax 128996242.65 56072964.14
Deferred expenses and others 389525328.99 382527494.50
Total 1328586793.26 1209842283.99
16. Investment in other equity instruments
In RMB
Changes in the current period Aggregate gainDividend and loss
Gain and loss income recognized in
Item Closing Opening recognized in recognized otherbalance balance Additional Reducedinvestm other Others in the comprehensiveinvestment ent comprehensive current income at theincome in the period end of the
current period current period
Jiangsu Bohua
Equity
Investment 20773729 20000000 7737297.88 1713379.57.88 0.00 9 7737297.88Partnership
(L.P.)
Hai Dixin
Semiconductor 25883600 21322110 4561490.00 4561490.00
(Nantong) Co. .00 .00
154DSBJ Annual Report 2025
Ltd.Kunshan
Hostar
Intelligence 34885400 28800000.00 .00 6085400.00 6085400.00Technology
Co. Ltd.Dyness Digital
Energy 73898800 50000000
Technology .00 .00 23898800.00 23898800.00
Co. Ltd.Shanghai
Wuwen
Xinqiong 50000000 50000000
Intelligent .00 .00
Technology
Co. Ltd.Shinwu
Optronics 21770800 22035000
(Suzhou) Co. .00 .00 -264200.00 -264200.00
Ltd.Other 28800399 11500000 25602799 100000
companies .86 .00 .86 00.00 1697600.00
Total 44297629 33365711 75602799 100000 43716387.88 1713379.57.74 0.00 .86 00.00 9 43716387.88
Other information:
1) Jiangsu Bohua Equity Investment Partnership (L.P.)
Jiangsu Bohua Equity Investment Partnership (L.P.) was established on September 27 2021 with a registered capital of
RMB 3.3 billion and is primarily engaged in equity investment and venture capital investment (in non-listed companies only). In
consideration that this investment will bring a good return to the Company and provide the Company with opportunities to invest
in premium fields and assets and is not held for trading the Company designated this investment as a financial asset at fair value
through other comprehensive income.
2) Hai Dixin Semiconductor (Nantong) Co. Ltd.
Hai Dixin Semiconductor (Nantong) Co. Ltd. was established on April 6 2012 with a registered capital of RMB
36152329.00 in which the Company holds 10.2345% shares. In consideration that the Company has a close business relationship
with Hai Dixin Semiconductor (Nantong) Co. Ltd. the shares held by the Company in it will help the Company improve its
business competencies and the investment is not held for trading the Company designated this investment as a financial asset at
fair value through other comprehensive income on January 1 2019.
3) Hostar Intelligence Technology Co. Ltd. was established on April 2 2011 with a registered capital of RMB 42660000
in which the Company holds 3.038% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies including supporting business scale expansion procuring raw materials/equipment and
developing and strengthening market and sales teams and the investment is not held for trading the Company designated this
investment as a financial asset at fair value through other comprehensive income in February 2023.
4) Dyness Digital Energy Technology Co. Ltd. was established on August 17 2017 with a registered capital of
RMB112023809 in which the Company holds 1.4716% shares. In consideration that the shares held by the Company in it will
help the Company improve its business competencies and the investment is not held for trading the Company designated this
investment as a financial asset at fair value through other comprehensive income in March 2023.
5) Shinwu Optronics (Suzhou) Co. Ltd. was established on October 19 2006 with a registered capital of RMB 57754000
in which the Company holds 1.7169% shares. In consideration that the shares held by the Company in it will help the Company
improve its business competencies and the investment is not held for trading the Company designated this investment as a
financial asset at fair value through other comprehensive income in May 2023.
155DSBJ Annual Report 2025
6) Shanghai Wuwen Xinqiong Intelligent Technology Co. Ltd. was established on May 31 2023 with a registered capital of
RMB 2191215 in which the Company holds 1.7697% shares. In consideration that the shares held by the Company in it will help
the Company improve its business competencies and the investment is not held for trading the Company designated this
investment as a financial asset at fair value through other comprehensive income in November 2025.
17. Long-term receivables
(1) Particulars of long-term receivables
In RMB
Closing balance Opening balance
Range of
Item Allowance for Allowance Carrying discount
Book balance doubtful Carrying value Book balance for doubtful
value rate
accounts accounts
Amount of
30000000.0030000000.0030000000.0030000000.00
finance lease
Labor service
by installment 281695941.78 1408479.76 280287462.02 3%-8%
receivable
Sale of long-
term assets by
49035581.772526000.0046509581.773.38%
installment
receivable
Total 360731523.55 3934479.76 356797043.79 30000000.00 30000000.00
18. Long-term equity investments
In RMB
Openin Changes in the current period
Closing
g Invest Declar
Oth balancebalance
Opening ment Adjustm ed Allow
of er
Closing of
balance Additi Reduce income ent to cash ance balance allowan
Investee allowan cha
(carryin onal d or loss other divide for Othnges (carryin ce force for
g value) invest investm under compreh nds or impair ers g value) impair
impair inment ent the ensive profit ment
equi mentment equity income distrib loss loss
loss tymethod ution
I. Joint ventures
II. Associates
Suzhou
Toprun
Electric 194776 51487 32656. 195103 51487
Equipme 64.46 204.05 54 21.00 204.05
nt Co.Ltd.Shenzhe
n
1750717507
Nanfang
056.47056.47
Blog
Technol
156DSBJ Annual Report 2025
ogy
Develop
ment
Co. Ltd.Shangha
i Fu
Shan
Precisio
n
Manufac
turing
Co. Ltd.Suzhou
LEGAT
E
-
Intellige 226470 214020
12450
nt 67.59 31.08
36.51
Equipme
nt Corp.Ltd.Suzhou
Dongcan
Optoelec -
331647269310
tronics 62337
2.492.45
Technol 0.04
ogy Co.Ltd.Jiangsu
Nangao
Intellige
nt
-
Equipme 344283 260299
83984
nt 5.16 4.36
0.80
Innovati
on
Center
Co. Ltd.Jiaozuo
Songyan
g
-
Photoele 243920 221816
22104
ctric 91.70 12.25
79.45
Technol
ogy Co.Ltd.Suzhou
Yongxin
Jingshan
g
35877153206411977
Venture
24.7749.1173.88
Capital
Partners
hip
(L.P.)
Isotek
8539485394
Microwa
24.6124.61
ve
157DSBJ Annual Report 2025
Limited
BVF
(BVI) 277342 27734
Holding 83.16 283.16
L.P.Multek
Internati
-
onal 2137
21370
Develop 05.00
5.00
ment
Limited
Shangha
i
Xinhuar
ui -
181212169785
Semicon 11426
56.3597.53
ductor 58.82
Technol
ogy Co.Ltd.-
1550087753321372773412656677533
Subtotal 92178
795.68685.1305.00283.16432.55685.13
4.97
-
1550087753321372773412656677533
Total 92178
795.68685.1305.00283.16432.55685.13
4.97
20. Investment properties
(1) Investment properties at cost
□ Applicable □ N/A
In RMB
Buildings and Construction
Item Land use right Total
structures in progress
I. Original value
1. Opening balance 5309132.17 5309132.17
2. Increase 148423000.00 148423000.00
(1) Acquired
(2) Transferred from inventories/ fixed assets/
construction in progress
(3) Increased due to business combinations
Transferred from intangible assets 148423000.00 148423000.00
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance 5309132.17 148423000.00 153732132.17
II. Accumulated depreciation and amortization
1. Opening balance 4528003.07 4528003.07
2. Increase 254026.28 6394641.71 6648667.99
158DSBJ Annual Report 2025
(1) Recognized or amortized 254026.28 254026.28
Transferred from intangible assets 6394641.71 6394641.71
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance 4782029.35 6394641.71 11176671.06
III. Allowance for impairment loss
1. Opening balance
2. Increase
(1) Recognized
3. Decrease
(1) Disposed
(2) Other transfer-out
4. Closing balance
IV. Carrying value
1. Closing balance 527102.82 142028358.29 142555461.11
2. Opening balance 781129.10 781129.10
21. Fixed assets
In RMB
Item Closing balance Opening balance
Fixed assets 16586762231.15 13595191232.40
Total 16586762231.15 13595191232.40
(1) Particulars of fixed assets
In RMB
Buildings and Machinery and Transportation Office equipment
Item Total
structures equipment equipment and others
I. Original value
1. Opening balance 5971211249.44 21623751576.31 99150719.84 998293766.67 28692407312.26
2. Increase 1533292363.62 4759051922.87 9080850.83 231427059.21 6532852196.53
(1) Acquired 1690583.30 185657253.50 1528777.95 12247637.81 201124252.56
(2) Transferred from
1280737701.923131819687.015592958.8795851750.134514002097.93
construction in progress
(3) Increased due to
247299396.321469096963.202314215.24125182097.541843892672.30
business combinations
(4) Translation of foreign
currency financial 3564682.08 -27521980.84 -355101.23 -1854426.27 -26166826.26
statements
3. Decrease 143175665.91 2243776886.49 23906010.71 205449945.86 2616308508.97
(1) Disposed or retired 143175665.91 2196012064.33 23906010.71 205449945.86 2568543686.81
(2) Transfer of
47764822.1647764822.16
construction in progress
4. Closing balance 7361327947.15 24139026612.69 84325559.96 1024270880.02 32608950999.82
159DSBJ Annual Report 2025
II. Accumulated
depreciation
1. Opening balance 2406383642.12 11467372557.00 61329692.85 753698962.63 14688784854.60
2. Increase 277865528.44 2629233334.42 10630485.73 127016528.93 3044745877.52
(1) Recognized 277348951.95 2132165640.64 10052641.50 81760386.68 2501327620.77
(2) Increased due to
511931676.24662139.3446497692.81559091508.39
combination
(3) Translation of foreign
currency financial 516576.49 -14863982.46 -84295.11 -1241550.56 -15673251.64
statements
3. Decrease 137862533.24 1686165464.91 13515371.87 184911210.04 2022454580.06
(1) Disposed or retired 137862533.24 1664960817.70 13515371.87 184911210.04 2001249932.85
(2) Transfer of
21204647.2121204647.21
construction in progress
4. Closing balance 2546386637.32 12410440426.51 58444806.71 695804281.52 15711076152.06
III. Allowance for
impairment loss
1. Opening balance 4570236.72 402994252.96 866735.58 408431225.26
2. Increase
(1) Recognized
3. Decrease 175192.92 97143415.73 97318608.65
(1) Disposed or retired 175192.92 97143415.73 97318608.65
4. Closing balance 4395043.80 305850837.23 866735.58 311112616.61
IV. Carrying value
1. Closing balance 4810546266.03 11422735348.95 25880753.25 327599862.92 16586762231.15
2. Opening balance 3560257370.60 9753384766.35 37821026.99 243728068.46 13595191232.40
(2) Temporary idle fixed assets
In RMB
Accumulated Allowance for
Item Original value Carrying value
depreciation impairment loss
Machinery and
224176351.08106531752.4034353156.2183291442.47
equipment
Subtotal 224176351.08 106531752.40 34353156.21 83291442.47
(4) Fixed assets whose property title certificates have not yet been obtained
In RMB
Reason for not obtaining the property
Item Carrying value
title certificate
Factory buildings of Multek 25943809.37 Pending review
Subtotal 25943809.37
22. Construction in progress
In RMB
Item Closing balance Opening balance
160DSBJ Annual Report 2025
Construction in progress 2345985416.22 2575154318.35
Total 2345985416.22 2575154318.35
(1) Particulars of construction in progress
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance impairment Carrying value Book balance impairment Carrying value
loss loss
High-end AI PCB
construction project 228037607.94 228037607.94
Infrastructure construction of
the factory for Multi-layer 767805258.88 767805258.88 1228168131.58 1228168131.58
Circuit Board Co. Ltd.IC substrate project of
Chaowei Microelectronics 43527285.88 43527285.88 10009858.49 10009858.49
(Yancheng) Co. Ltd.Large-sized die-casting
project of Yancheng 178439112.27 178439112.27
Dongchuang
Kunshan new energy
manufacturing base-related 269865330.68 269865330.68 395279797.72 395279797.72
project
Automatic production line of
vehicle-mounted liquid 212383174.42 212383174.42 95496218.59 95496218.59
crystal display
MFLEX Yancheng Phase II
project 39243185.50 39243185.50 125744191.31 125744191.31
MFLEX Suzhou Guoxiang
Phase II and other
production expansion 52462660.56 52462660.56 160977750.57 160977750.57
projects
Construction project of
optical module 265534507.25 265534507.25
manufacturing line
Installation equipment in
progress and others 467126405.11 467126405.11 381039257.82 381039257.82
Total 2345985416.22 2345985416.22 2575154318.35 2575154318.35
(2) Changes in significant constructions in progress in the current period
In RMB
Rate of
Budget
(100 Opening Increase in the Amount % of project
Aggregate Incl.: interest
Item transferred to Other Closing balance costs to the Progres amount of Capitalized capitalizatio Source ofmillion balance current period fixed assets decreases budget s capitalized interest in the n in the fundsRMB) interest current period current
period
Own funds
High-end AI PCB
construction project 70.00 246596048.11 18558440.17 228037607.94 6.57% 3.52%
loans from
financial
institutions
Kunshan new
energy Loans from
manufacturing base 18.00 395279797.72 11657874.96 86426453.19
50645888.
81269865330.6895.00%95.00%
7229036.3
7 financial
project institutions
Large-sized die-
casting project of Loans from
Yancheng 15.00 178439112.27 122988818.26 301427930.53 100.00%
100.0018784092.
% 21 2346724.19 2.65% financial
Dongchuang institutions
Infrastructure
construction of the 1220700181. 1129180780. Loans fromfactory for Multi- 18.75 43 676596092.30 15 310234.70 767805258.88 100.00% 93.78%
2139604.5
2 1798303.10 0.76% financiallayer Circuit Board institutions
Co. Ltd.Construction Own funds
project of optical
module 18.00 296445757.55 30182068.34 729181.96 265534507.25 16.50% 16.50%
loans from
financial
manufacturing line institutions
Total 139.75 1794419091. 1354284591. 1565775672. 51685305. 1531242704. 28152733.42 18 38 47 75 10 4145027.29
161DSBJ Annual Report 2025
25. Right-of-use assets
(1) Particulars of right-of-use assets
In RMB
Buildings and Machinery and
Item Land Total
structures equipment
I. Original value
1. Opening balance 1513376667.44 30676878.28 93200186.63 1637253732.35
2. Increase 957359869.03 116690185.49 504637.90 1074554692.42
1) Lease in 225182890.10 39199476.43 252865.33 264635231.86
2) Increased due to
732241727.8677286511.39263216.00809791455.25
combination
3) Translation of
foreign currency -64748.93 204197.67 -11443.43 128005.31
financial statements
3. Decrease 3082365.13 251772.57 3334137.70
1) Disposal 3082365.13 251772.57 3334137.70
4. Closing balance 2467654171.34 147367063.77 93453051.96 2708474287.07
II. Accumulated
depreciation
1. Opening balance 312079420.58 2914303.50 8483709.14 323477433.22
2. Increase 166494765.54 6752715.51 5729695.89 178977176.94
(1)
92141646.916749198.075490903.41104381748.39
Recognized
2) Increased due to
75850779.35250055.2076100834.55
combination
3) Translation of
foreign currency -1497660.72 3517.44 -11262.72 -1505406.00
financial statements
3. Decrease 3082365.13 251772.57 3334137.70
(1) Disposed 3082365.13 251772.57 3334137.70
4. Closing balance 475491820.99 9667019.01 13961632.46 499120472.46
III. Allowance for
impairment loss
1. Opening balance
2. Increase
(1)
Recognized
3. Decrease
(1) Disposed
4. Closing balance
IV. Carrying value
1. Closing balance 1992162350.35 137700044.76 79491419.50 2209353814.61
2. Opening balance 1201297246.86 27762574.78 84716477.49 1313776299.13
162DSBJ Annual Report 2025
26. Intangible assets
(1) Particulars of intangible assets
In RMB
Unpatented Trademarks and Customer
Item Land use right Software Total
technology patents resources
I. Original value
1. Opening
775959155.426733029.45411964161.42154881057.21207803629.231557341032.73
balance
2. Increase 50057640.06 28695688.83 65577458.16 674265758.87 -1057000.00 817539545.92
(1)
13002972.2549793537.20749616.0963546125.54
Acquired
(2) Internal
2516876.3827523076.3430039952.72
R&D
(3)
Increased due to
32922072.5826077484.3616591041.29648850278.31724440876.54
business
combinations
4) Translation of
foreign currency 4132595.23 101328.09 -807120.33 -2857211.87 -1057000.00 -487408.88
financial statements
3. Decrease 190267056.08 30166.04 14760639.38 962272.00 28688715.11 234708848.61
(1)
41844056.0830166.0414760639.38962272.0057597133.50
Disposed
(2) Transfer of
148423000.00148423000.00
investment properties
(3) Others 28688715.11 28688715.11
4. Closing
635749739.4035398552.24462780980.20828184544.08178057914.122140171730.04
balance
II. Accumulated
amortization
1. Opening
110389681.796733029.45322949202.16114845957.0639829028.93594746899.39
balance
2. Increase 12494822.48 19743451.39 64631066.95 116634750.25 21619203.67 235123294.74
(1)
12494822.4819741438.3454679315.1315943036.5022158546.08125017158.53
Recognized
(2) Increased due to
10746683.28102362060.21113108743.49
combination
(3) Translation of
foreign currency 2013.05 -794931.46 -1670346.46 -539342.41 -3002607.28
financial statements
3. Decrease 16912449.94 13317428.91 962272.00 31192150.85
(1)
10517808.2313317428.91962272.0024797509.14
Disposed
(2) Transfer of
6394641.716394641.71
investment properties
4. Closing
105972054.3326476480.84374262840.20230518435.3161448232.60798678043.28
balance
III. Allowance for
163DSBJ Annual Report 2025
impairment loss
1. Opening
balance
2. Increase 20426470.33 20426470.33
(1)
Recognized
(1) Increased due to
20862468.6120862468.61
combination
(2) Translation of
foreign currency -435998.28 -435998.28
financial statements
3. Decrease
(1)
Disposed
4. Closing
20426470.3320426470.33
balance
IV. Carrying value
1. Closing
529777685.078922071.4088518140.00577239638.44116609681.521321067216.43
balance
2. Opening
665569473.6389014959.2640035100.15167974600.30962594133.34
balance
27. Goodwill
(1) Original value of goodwill
In RMB
Increase Decrease
Investee or event Translation of
giving rise to Opening balance Arising from foreign Closing balance
goodwill business currency Disposed Others
combination financial
statements
MFLEX 1770752915.84 1770752915.84
Multek 179329062.90 179329062.90
Mutto Optronics
Technology Co. 153957647.78 153957647.78
Ltd.Suzhou RF Top
Electronic
135001580.53135001580.53
Communication Co.Ltd.Source Photonics 2825093512.48 -26063415.57 2799030096.91
Aranda 50502380.96 50502380.96
Total 2289543588.01 2825093512.48 -26063415.57 50502380.96 5038071303.96
(2) Allowance for impairment of goodwill
In RMB
Investee or event giving rise to Opening Increase Decrease Closing
164DSBJ Annual Report 2025
goodwill balance Recognized Others Disposed Others balance
Mutto Optronics Technology Co. Ltd. 115869337.30 38088310.48 153957647.78
Suzhou RF Top Electronic
45697934.1769156360.00114854294.17
Communication Co. Ltd.Aranda 8364096.07 8364096.07
Total 169931367.54 107244670.48 268811941.95
(3) Information of asset group or combination of asset groups to which the goodwill belongs
Composition of asset group or Whether or not
Business segment and basis for
Item combination of asset group and basis for the same as
classification
grouping prior years
All of its assets and liabilities when PCB manufacturing circuit
MFLEX Yes
acquired by the Company boards
All of its assets and liabilities when PCB manufacturing circuit
Multek Yes
acquired by the Company boards
Mutto Optronics Technology Co.All of its assets and liabilities Photoelectric display module Yes
Ltd.Suzhou RF Top Electronic Precision components
All of its assets and liabilities Yes
Communication Co. Ltd. manufacturing ceramic filters
All the assets and liabilities of Source
Source Photonics Photonics when it was acquired by the Optical module Yes
Company
(4) Method of determination of recoverable amounts
Recoverable amount determined based on the present value of estimated future cash flows:
□ Applicable □ N/A
In RMB
Key parameters Key parameters Basis for determining the
Forecast
Item Carrying value Recoverable amount Impairment loss for the forecast for the stable key parameters for the
period
period period stable period
Revenue During the stable Pre-tax discount rate of
compound growth period revenue 10.62% determined based
MFLEX 11592132267.05 19400000000.00 5 years rate: 0.10%; gross growth rate: 0%; on the weighted average
profit margin: gross profit capital cost (WACC) as
17.00%. margin: 17.11%. adjusted.
Revenue
compound growth During the stable Pre-tax discount rate of
3355277279.45 3638000000.00 5 years rate: 2.12%;
period revenue 12.50% determined based
Multek average gross growth rate: 0%; on the weighted average
profit margin: gross profit capital cost (WACC) as
18.98%. margin: 19.11%. adjusted.
Revenue During the stable Pre-tax discount rate of
Mutto Optronics compound growth period revenue 9.30% determined based
Technology Co. 377515037.05 311000000.00 38088310.48 5 years rate: 6.00%; gross growth rate: 0%; on the weighted average
Ltd. profit margin: gross profit capital cost (WACC) as6.05%. margin: 7.02%. adjusted.Suzhou RF Top Revenue During the stable Pre-tax discount rate of
Electronic compound growth period revenue 14.40% determined based
211794700.00 113000000.00 69156360.00 5 years rate: 13.65%; growth rate: 0%; on the weighted average
Communication gross profit gross profit capital cost (WACC) as
Co. Ltd. margin: 15.86%. margin: 17.99%. adjusted.Revenue During the
compound growth stable period Pre-tax discount rate of
4913891520.68 5300000000.00 5 years rate: 3.20%; revenue growth
16.70% determined based
Source Photonics average gross rate: 0%; gross on the weighted average
profit margin: profit margin: capital cost (WACC) as
27.11%. 26.02%. adjusted.
Total 20450610804.23 28762000000.00 107244670.48
165DSBJ Annual Report 2025
1) According to the Valuation Report (Canwin Valuation Report [2026] No. 2-17) issued by Canwin Appraisal Co. Ltd. the
recoverable amount of the asset group or combination of asset groups including the goodwill for MFLEX was RMB
19400000000.00 which was higher than its carrying value of RMB 11592132267.05 so the goodwill was not impaired.
2) According to the Valuation Report (Canwin Valuation Report [2026] No. 2-26) issued by Canwin Appraisal Co. Ltd. the
recoverable amount of the asset group or combination of asset groups including the goodwill for Multek was RMB
3638000000.00 which was higher than its carrying value of RMB 3355277279.45 so the goodwill was not impaired.
3) According to the Valuation Report (Zhongsheng Valuation Report [2026] No. 0065) issued by Zhongsheng Appraisal &
Consulting Co. Ltd. the recoverable amount of the asset group or combination of asset groups including the goodwill for Mutto
Optronics Technology Co. Ltd. was RMB 311000000.00 while its carrying value was RMB 377515037.05 so a goodwill
impairment of RMB 38088310.48 was recognized.
4) According to the Valuation Report (Zhongsheng Valuation Report [2026] No. 0076) issued by Zhongsheng Appraisal &
Consulting Co. Ltd. the recoverable amount of the asset group or combination of asset groups including the goodwill for Suzhou
RF Top Electronic Communication Co. Ltd. was RMB 113000000.00 while its carrying value was RMB 211794700.00 so a
goodwill impairment of RMB 69156360.00 was recognized.
5) According to the Valuation Report (Zhongsheng Valuation Report [2026] No. 0081) issued by Zhongsheng Appraisal &
Consulting Co. Ltd. the recoverable amount of the asset group or combination of asset groups including the goodwill for Source
Photonics was RMB 5300000000.00 while its carrying value was RMB 4913891520.68 so the goodwill was not impaired.
28. Long-term deferred expenses
In RMB
Increase in the
Item Opening balance Amortization Other decreases Closing balance
current period
Decoration costs
of fixed assets and 903599713.89 356974769.42 227134742.78 42741218.84 990698521.69
others
Total 903599713.89 356974769.42 227134742.78 42741218.84 990698521.69
29. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets not offset
In RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Allowance for impairment of 1203661558.00 205547687.65 1324692293.90 205243454.52
assets
Deductible losses 3596361870.04 559296768.10 2300687978.39 362521218.64
Difference in depreciation of 105783341.60 20675023.55 56738475.07 13329567.82
fixed assets
Lease liabilities 2500101261.08 394720970.92 1925266733.21 304432313.12
Unrealized gains/losses from 329741349.28 62919533.24 276240960.60 57088993.26
inter-company transactions
166DSBJ Annual Report 2025
Change in the fair value of 1261168.56 189175.28 9096191.75 1953655.94
financial instruments
Deferred income 676768326.83 118169047.33 522365262.99 85669295.35
Accrued expenses 364698570.53 80596959.76 198231909.28 37291672.83
Total 8778377445.92 1442115165.83 6613319805.19 1067530171.48
(2) Deferred tax liabilities not offset
In RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary Deferred tax
Deferred tax liabilities
differences differences liabilities
One-off deduction of 3155071803.47 635400278.98 2569191598.13 523588207.16
depreciation of fixed assets
Accrued interest income and 265058358.96 54405181.91 89930966.31 19085788.45
others
Right-of-use assets 2304688646.71 375918561.89 1403935934.81 241292708.42
Income tax payable due to 842218446.34 181435486.53 351178186.24 79872611.80
increase in appraised value
Total 6567037255.48 1247159509.31 4414236685.49 863839315.83
(3) Deferred tax assets and deferred tax liabilities presented on a netting basis
In RMB
Closing offset amount Closing balance of Opening offset amount Opening balance of
Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or
and liabilities liabilities after offset and liabilities liabilities after offset
Deferred tax assets 612352571.77 829762594.06 233079559.40 834450612.08
Deferred tax liabilities 612352571.77 634806937.54 233079559.40 630759756.43
(4) Unrecognized deferred tax assets
In RMB
Item Closing balance Opening balance
Deductible temporary differences 1451854757.71 660868902.87
Deductible losses 2267692018.60 701671666.45
Total 3719546776.31 1362540569.32
(5) Deductible losses on unrecognized deferred tax assets that will expire in the following years
In RMB
Year Closing balance Opening balance Remark
2025664655.23
202687657744.952874755.50
202780267559.235336249.76
2028112994295.3415008079.01
2029309477948.4188077121.81
2030441672949.0985423573.15
203198860507.1091460298.37
2032152321739.97147263784.23
167DSBJ Annual Report 2025
203380858597.9978499471.26
2034190605087.39187063678.13
2035703967351.66
2036171689.82
2037267667.11
2038432662.81
2039326995.38
2040273691.85
2041253903.25
2042337668.69
Indefinite 6943958.56
Total 2267692018.60 701671666.45
30. Other non-current assets
In RMB
Closing balance Opening balance
Allowance Allowance
Item for for
Book balance Carrying value Book balance Carrying value
impairment impairment
loss loss
Deferred income –
unrealized gain or loss 7711421.32 7711421.32 19414150.16 19414150.16
on sale and leaseback
Performance guarantee 434405903.95 434405903.95
for acquisition
Prepayment for 1014414674.53 1014414674.53 493140601.21 493140601.21
projects and equipment
Others 3010272.91 3010272.91
Total 1459542272.71 1459542272.71 512554751.37 512554751.37
31. Assets subject to restrictions on ownership or right of use
In RMB
Closing balance Opening balance
Reason Reason
Item Type of Type offor for
Book balance Carrying value restrictio Book balance Carrying value restrictio
restrictio restrictio
n n
n n
Cash and Security Security
bank 1545560882.9 1545560882.9 Pledge deposit 1828730869.9 1828730869.9 deposit
balances 5 5 for notes 2 2
Pledge for notes
etc. etc.Accounts
receivabl 981561847.06 981561847.06 Pledge Factoring 90000000.00 90000000.00 Pledge Factoring
e
Accounts
receivabl
e 73295416.52 73295416.52 Pledge
Pledge Pledge of
of notes 47745743.70 47745743.70 Pledge notes
financing
Security
Fixed
assets 159907169.80 151552245.09 Mortgage
Mortgage
for loans 690336250.99 190880378.32 Mortgage
for loans
sales and
leaseback
168DSBJ Annual Report 2025
Right-of- 2708474287.0 2209353814.6 Mortgage Finance 1582499405.5 1258999636.7 Mortgage Financeuse assets 7 1 lease 6 4 lease
4239312270.13416356628.6
Total 5468799603.4 4961324206.20 3 7 8
32. Short-term borrowings
(1) Short-term borrowings by category
In RMB
Item Closing balance Opening balance
Credit loans 6689912201.97 3857114689.19
Discounting and factoring financing of
notes letters of credit and accounts 1321561847.06 953839441.50
receivable
Total 8011474049.03 4810954130.69
33. Financial liabilities held for trading
In RMB
Item Closing balance Opening balance
Financial liabilities held for trading 46545937.17 82922390.17
Incl.:
Derivative financial liabilities 46545937.17 82922390.17
Incl.:
Total 46545937.17 82922390.17
35. Notes payable
In RMB
Category Closing balance Opening balance
Commercial acceptance bills 30000000.00 10677710.87
Banker’s acceptance bills 972812950.68 924903561.63
Total 1002812950.68 935581272.50
36. Accounts payable
(1) Breakdown of accounts payable
In RMB
Item Closing balance Opening balance
Payment for materials 10007113113.42 6934434355.01
Payment for projects and equipment 2493239585.68 2235670994.79
Others 542783988.24 489163640.63
Total 13043136687.34 9659268990.43
169DSBJ Annual Report 2025
37. Other payables
In RMB
Item Closing balance Opening balance
Other payables 705336813.22 94163223.90
Total 705336813.22 94163223.90
(3) Other payables
1) Other payables by nature
In RMB
Item Closing balance Opening balance
Share purchase price 535923369.94
Temporary receipts payable 77244154.65 54101772.81
Others 92169288.63 40061451.09
Total 705336813.22 94163223.90
39. Contract liabilities
In RMB
Item Closing balance Opening balance
Loans 474660658.17 122562435.14
Total 474660658.17 122562435.14
40. Employee benefits payable
(1) Employee benefits payable
In RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term benefits 578999821.65 5533126012.86 5205044331.49 907081503.02
II. Post-employment
benefits – defined 15291550.45 466435749.80 402456739.08 79270561.17
contribution plans
III. Termination
3281714.9277672768.6573502363.087452120.49
benefits
IV. Other benefits due
1591258.13164010.071427248.06
within one year
Total 597573087.02 6078825789.44 5681167443.72 995231432.74
(2) Short-term employee benefits
In RMB
Item Opening balance Increase Decrease Closing balance
1. Wages bonuses allowances and
566785511.314837890787.974564772828.30839903470.98
subsidies
170DSBJ Annual Report 2025
2. Staff welfare 228316163.74 228316163.74
3. Social insurance contributions 7520834.55 266668018.57 220961454.82 53227398.30
Incl.: Medical insurance 7110065.19 241247893.28 200828937.32 47529021.15
Workers’ compensation
410769.3625420125.2920132517.505698377.15
insurance
4. Housing provident fund 2837418.06 174087063.93 173691695.27 3232786.72
5. Trade union fund and employee
1856057.7318449804.7914379717.085926145.44
education fund
6. Short-term paid absence 7714173.86 2922472.28 4791701.58
Total 578999821.65 5533126012.86 5205044331.49 907081503.02
(3) Defined contribution plans
In RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension
14661431.85439320266.99385717448.1568264250.69
insurance
2. Unemployment
630118.6027115482.8116739290.9311006310.48
insurance
Total 15291550.45 466435749.80 402456739.08 79270561.17
41. Taxes payable
In RMB
Item Closing balance Opening balance
Value-added tax 35923797.22 20674711.21
Enterprise income tax 513181003.94 342390303.11
Individual income tax 46215837.22 9277024.93
Urban maintenance and construction tax 7436675.11 4101006.65
Property tax 9916289.44 7364518.95
Stamp duty 7572566.44 5657390.62
Education surcharge 3010002.58 1878074.57
Land use tax 480526.20 367722.10
Local education surcharge 1983592.32 1252049.72
Other taxes 15616971.86 2809325.90
Total 641337262.33 395772127.76
43. Non-current liabilities due within one year
In RMB
Item Closing balance Opening balance
Long-term borrowings due within one
2959297257.022327145419.12
year
Long-term payables due within one year 28115200.00
Lease liabilities due within one year 500891170.93 131841882.24
Total 3488303627.95 2458987301.36
171DSBJ Annual Report 2025
44. Other current liabilities
In RMB
Item Closing balance Opening balance
Output tax to be recognized 26024795.18 5190838.21
Accrued maintenance expenses 17813333.90
Total 43838129.08 5190838.21
45. Long-term borrowings
Long-term borrowings by category
In RMB
Item Closing balance Opening balance
Pledge loans 333791638.89 714721945.32
Mortgage loans 52980858.25
Credit loans 5988306967.40 4470332834.45
Mortgage and guaranteed loans 104133111.56
Total 6375079464.54 5289187891.33
47. Lease liabilities
In RMB
Item Closing balance Opening balance
Lease obligations payable 1916709641.58 1456822089.69
Less: Unrecognized financing costs -126644820.85 -105303252.51
Total 1790064820.73 1351518837.18
48. Long-term payables
In RMB
Item Closing balance Opening balance
Long-term payables 49434786.31
Total 49434786.31
49. Long-term employee benefits payable
(1) Long-term employee benefits payable
In RMB
Item Closing balance Opening balance
I. Post-employment benefits - net
142470448.33
liabilities under defined benefit plans
Total 142470448.33
172DSBJ Annual Report 2025
50. Provisions
In RMB
Item Closing balance Opening balance
Business restructuring expenditures 134344496.21
Provision for commercial risks 81477617.62
Provision for sales return 26523128.06 27724858.36
Product warranty 21411260.96 30534014.56
Total 263756502.85 58258872.92
51. Deferred income
In RMB
Method of
Item Opening balance Increase Decrease Closing balance
acquisition
Government grants 585933889.89 523442239.62 219532996.02 889843133.49
Total 585933889.89 523442239.62 219532996.02 889843133.49 --
53. Share capital
In RMB
Change (+/-)
Opening Capitalizatio Closing
balance New shares Bonus shares n of capital Others Subtotal balance
reserves
170591371125693822.125693822.183160753
Total shares
0.0000002.00
Other information:
In June 2025 the Company issued 125693822 RMB-denominated ordinary shares (A shares) through private placement
and raised the net proceed of RMB 1391512544.73 including RMB 125693822.00 recognized in paid-in capital and RMB
1265818722.73 recognized in capital reserve (share premium).
55. Capital reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Capital premium (share
7850787182.401265818722.73210620.799116395284.34
premium)
Other capital reserve 141497253.43 141497253.43
Total 7992284435.83 1265818722.73 210620.79 9257892537.77
Other information including the explanation about increase/decrease in the current period and the reasons of such change:
1) See the description in Notes V(I)41 to the Financial Statements.
2) The decrease in the capital reserve (share premium) in the current period is primarily due to the acceptance of capital
increase from minority shareholders by subsidiaries which diluted the Company’s shareholding ratio and led to adjustment to the
difference between the Company’s shares in the net assets of such subsidiaries and the corresponding investment costs.
173DSBJ Annual Report 2025
56. Treasury shares
In RMB
Item Opening balance Increase Decrease Closing balance
Treasury shares 74991696.79 100084437.00 175076133.79
Total 74991696.79 100084437.00 175076133.79
Other information including the explanation about increase/decrease in the current period and the reasons of such change:
The Company held the 18th meeting of the 6th Board of Directors on April 9 2025 at which the Proposal Regarding
Repurchase of the Company’s Shares was considered and adopted; as of May 6 2025 the Company has implemented the
repurchase by means of call auction under the special securities account for repurchase repurchased a total of 4202200 shares of
the Company with the trading amount of RMB 100084437.00.
57. Other comprehensive income
In RMB
Amount of the current period
Less: Other Less: Other
comprehen comprehen Amount Amount
Opening
Item sive sive Less: attributable attributable
Closing
balance Amount income income Income tax to the to minority balance
before tax
reclassified reclassified expenses parent after shareholder
to profit or to retained tax s after tax
loss earnings
I. Other
comprehensive
income that 46496393. 45801392. 45801392.
695001.40
cannot be 47 07 07
reclassified to
profit or loss
Incl.: Changes
from
2780005.52085004.12085004.1
remeasurement 695001.40
999
of defined
benefit plans
Change in
fair value of
43716387.43716387.43716387.
investments in
888888
other equity
instruments
II. Other
comprehensive
---
income that 36678393. 11446277. 30470299.
317104375238183.328663407
will be 54 57 27
4.0804.81
reclassified to
profit or loss
Difference
s in translation
----
of foreign
3126754010503807.10503807.32317920
currency
1.1695959.11
financial
statements
174DSBJ Annual Report 2025
Reserves for - -
47182201.11446277.40974107.36545134.
cash flow 4428972.9 5238183.3
49572230
hedge 2 0
Total other - - -
83174787.12141278.76271691.
comprehensive 31710437 5238183.3 24083268
019734
income 4.08 0 2.74
59. Surplus reserve
In RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
232241216.5416909671.20249150887.74
reserve
Total 232241216.54 16909671.20 249150887.74
60. Retained profits
In RMB
Item Current period Previous period
Balance of retained profits at the end of the previous period before
9288043977.889025095529.05
adjustment
Opening balance of retained profits after adjustment 9288043977.88 9025095529.05
Add: Net profit attributable to owners of the parent 1386066705.56 1085641847.89
Less: Appropriation to statutory surplus reserve 16909671.20 47374346.81
Dividends payable to the ordinary shareholders 118795180.63 425319052.25
Transfer of other comprehensive income to retained earnings 350000000.00
Closing balance of retained profits 10538405831.61 9288043977.88
61. Operating revenue and operating costs
In RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 39643732616.04 34153971460.65 36479191979.20 31384152613.81
Other businesses 481126223.48 318698288.12 291182368.38 230856015.58
Total 40124858839.52 34472669748.77 36770374347.58 31615008629.39
62. Taxes and surcharges
In RMB
Item Amount of the current period Amount of the previous period
Urban maintenance and construction tax 37772291.54 61853438.98
Education surcharge 16720020.29 27745541.46
Property tax 42993372.55 34216080.50
Land use tax 1613327.58 2000681.61
Vehicle and vessel tax 421679.56 14547.32
175DSBJ Annual Report 2025
Stamp duty 25399806.51 22192921.83
Local education surcharge 11146680.05 18496251.85
Environmental protection tax 235125.64 523400.32
Total 136302303.72 167042863.87
63. Administrative expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 687297831.52 588115074.18
Depreciation and amortization 174477609.89 170661772.04
Consulting service fees 163485611.63 82023901.91
Office expenses 67455743.01 54385756.29
Business entertainment expenses 67362659.46 72233699.76
Travel expenses 30392781.04 19968826.98
Rents 25885745.44 4960539.80
Repair costs 33608356.49 32327485.58
Taxes 1463956.91 1950672.98
Others 163125012.37 85774355.92
Total 1414555307.76 1112402085.44
64. Selling expenses
In RMB
Item Amount of the current period Amount of the previous period
Employee benefits 245857269.02 237488594.13
Sales service fees 93859008.44 109217184.46
Export charges 15160389.93 18461845.70
Travel expenses 17263760.01 14252966.99
Business entertainment expenses 27945861.62 29394436.20
Others 45060120.04 45202759.73
Total 445146409.06 454017787.21
65. R&D expenses
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 552820998.14 548167661.46
Labor costs 633423008.67 510711948.15
Depreciation and amortization 124533733.49 98435864.38
Others 106448983.57 109497070.24
Total 1417226723.87 1266812544.23
66. Financial expenses
In RMB
Item Amount of the current period Amount of the previous period
Interest expenses 332187087.15 368551945.48
Interest on leases and financing service
111289170.8569674382.08
fees
Less: Interest income -200834090.18 -243071834.40
176DSBJ Annual Report 2025
Add: Exchange loss 8121129.30 -286978985.40
Bank charges and others 11699633.43 33088044.64
Total 262462930.55 -58736447.60
67. Other income
In RMB
Sources of other income Amount of the current period Amount of the previous period
Government grants related to assets 219532996.02 154892895.28
Government grants related to income 137997106.43 328831954.86
Additional deduction of VAT 1398908.43 32688476.14
Tax relief 1733198.24 5861818.16
Refund of individual income tax
2105588.06980688.11
withholding service fees
Total 362767797.18 523255832.55
69. Gain on changes in fair value
In RMB
Source of gain on changes in fair value Amount of the current period Amount of the previous period
Financial assets held for trading 62022355.11 -17898094.22
Incl.: Equity investments -819659.80
Derivatives 62007037.19 -17078434.42
Bank wealth management 15317.92
Total 62022355.11 -17898094.22
70. Investment income
In RMB
Amount of the current Amount of the previous
Item
period period
Income from long-term equity investments under the equity method -921784.97 -398084.25
Investment income from the disposal of long-term equity investments -5003046.71 -25868191.04
Investment income from financial assets held for trading during the holding
313465.45665778.00
period
Investment income from the disposal of financial assets held for trading 7264766.37 9630935.56
Dividend income from other equity instrument investments during the
1713379.59
holding period
Discount loss on accounts receivable financing -12649024.05 -6065210.89
Total -9282244.32 -22034772.62
71. Credit impairment loss
In RMB
Item Amount of the current period Amount of the previous period
Loss from doubtful accounts -63742824.35 -44109673.59
Total -63742824.35 -44109673.59
177DSBJ Annual Report 2025
72. Impairment loss on assets
In RMB
Amount of the current Amount of the previous
Item
period period
I. Impairment of inventories and contract fulfilling costs -580655500.36 -454659790.71
IV. Impairment of fixed assets -394440784.57
X. Impairment of goodwill -107244670.48 -89587280.51
Total -687900170.84 -938687855.79
73. Gain on disposal of assets
In RMB
Source of gain on disposal of assets Amount of the current period Amount of the previous period
Gain on disposal of fixed assets -387069056.35 -234749852.86
Gain on disposal of intangible assets 15589519.89
Total -371479536.46 -234749852.86
74. Non-operating revenue
In RMB
Amount of the previous Amount recognized in non-
Item Amount of the current period
period recurring gain or loss
Investment income 470697770.08 470697770.03
Penalties 2928769.29 4306009.83 2928769.29
Amounts that cannot be paid 542766.31 4141160.34 542766.31
Others 4259282.92 813226.46 4259282.97
Total 478428588.60 9260396.63 478428588.60
75. Non-operating expenses
In RMB
Amount of the previous Amount recognized in non-
Item Amount of the current period
period recurring gain or loss
Donations 6777980.00 7186576.91 6777980.00
Business restructuring
39985577.1239985577.12
expenditures
Loss on destruction and
retirement of non-current 7807614.60 8343315.44 7807614.60
assets
Penalties overdue fines and
2112615.155451363.412112615.15
liquidated damages
Others 208825.97 169773.26 208825.97
Total 56892612.84 21151029.02 56892612.84
178DSBJ Annual Report 2025
76. Income tax expenses
(1) Statement of income tax expenses
In RMB
Item Amount of the current period Amount of the previous period
Income tax expense 365773171.95 201638862.70
Deferred income tax expenses -68323941.81 181012059.37
Total 297449230.14 382650922.07
(2) Reconciliation of income tax expenses to accounting profit
In RMB
Amount of the current
Item
period
Total profit 1690416767.87
Income tax expenses calculated based on the tax rate applicable to the parent company 253562515.18
Effect of different tax rates applicable to subsidiaries -89818330.99
Effect of adjustment of income taxes for prior years 7964401.68
Effect of non-taxable incomes -76974220.94
Effect of non-deductible costs expenses and losses 26045262.64
Effect of using the deductible losses for which the deferred income tax assets were not recognized in
previous periods -7690829.09
Effect of deductible temporary differences or deductible losses not recognized for deferred tax assets
for the current period 262828400.66
Effect of super deduction of R&D expenses -78467969.00
Income tax expenses 297449230.14
77. Other comprehensive income
See the description in Notes V(I)43 for details.
78. Items of the cash flow statement
(1) Cash flows related to operating activities
Other cash receipts related to operating activities:
In RMB
Item Amount of the current period Amount of the previous period
Security deposit for acceptance bills 368078334.92 447811795.42
Government grants 547538144.73 336202054.86
Interest income 200834090.18 243071834.40
Temporary receipts payable and others 76906450.49 53123286.94
Total 1193357020.32 1080208971.62
Other cash payments related to operating activities
In RMB
Item Amount of the current period Amount of the previous period
Payment of period expenses in cash 854704179.51 806013008.87
Security deposit for acceptance bills 500750333.33 368078334.92
179DSBJ Annual Report 2025
Bank charges 11699633.43 33088044.64
Temporary payment receivable and
50322187.9016699230.27
others
Total 1417476334.17 1223878618.70
(2) Cash flows related to investing activities
Other cash receipts related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Recovery of term deposits 1284483800.00 690180814.95
Recovery of security deposit for
460202891.26
acquisition
Reversal of security deposit for
45098668.51230197429.36
investments
Total 1789785359.77 920378244.31
Other cash payments related to investing activities
In RMB
Item Amount of the current period Amount of the previous period
Term deposits 553929171.86 1325308422.77
Payment of remaining acquisition
109158061.37
amount
Security deposit for investments 44513067.74 4274055.74
Security deposit for the acquisition 894608795.21
Total 1493051034.81 1438740539.88
Cash payments related to significant investing activities
In RMB
Amount of the current Amount of the
Item
period previous period
Cash or cash equivalents paid in the period for business combination occurring in
4332904872.25
the period
Less: Cash and cash equivalents held by subsidiaries at the acquisition date -949627569.79
Total 3383277302.46
(3) Cash flows related to financing activities
Other cash receipts related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 431070056.49 177359173.02
Proceeds from discounts on acceptance
1552857485.12836298582.66
bills and letters of credit
Total 1983927541.61 1013657755.68
Other cash payments related to financing activities
In RMB
Item Amount of the current period Amount of the previous period
Security deposits 315383108.30 131070056.49
Payment of rents 267230450.42 644317313.92
180DSBJ Annual Report 2025
Expenditures for repurchase of shares 100084437.00 25000846.30
Amount for ESOP repurchase 184599628.23
Payment of expenses for listing in Hong
7809923.30
Kong
Payments under bill financing 1785103507.45 729491972.95
Total 2660211054.70 1529880189.66
Changes in liabilities arising from financing activities
□ Applicable □ N/A
In RMB
Increase Decrease
Item Opening balance Closing balance
Cash change Non-cash change Cash change Non-cash change
Short-term borrowings 4810954130.69 7963955989.97 1754807565.83 6518243637.46 8011474049.03
Long-term borrowings
(including long-term
borrowings due within 7616333310.45 4785102775.90 243084626.07 3310143990.86 9334376721.56
one year)
Lease liabilities
(including lease
liabilities due with one 1483360719.42 1059174857.70 251579585.46 2290955991.66
year)
Dividends payable 118795180.63 118795180.63
Total 13910648160.56 12867853946.50 3057067049.60 10198762394.41 19636806762.25
(5) Significant activities that do not involve receipts and payments of cash in the current period but
affect the financial position of the enterprise or may affect cash flows of the enterprise in the future and
financial effects thereof
Amount of endorsed transfer for commercial bill not involving receipts and payments of cash
In RMB
Item Current period The same period of theprevious year
Amount of the commercial bill transferred by endorsement 2567847793.19 1923542351.47
Incl.: Payment for goods 2312864310.20 1658479539.00
Payment for acquisition of long-term assets such as fixed
assets 254983482.99 265062812.47
79. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
In RMB
Amount of the Amount of the
Supplementary information
current period previous period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 1392967537.73 1085060914.05
Add: Allowance for impairment of assets 687900170.84 938687855.79
Provision for credit impairment 63742824.35 44109673.59
Depreciation of fixed assets right-of-use assets oil and gas assets and
productive biological assets 2605963395.44 2198097122.77
Amortization of intangible assets 125017158.53 99907909.26
Amortization of long-term deferred expenses 227134742.78 261921167.74
181DSBJ Annual Report 2025
Loss on disposal of fixed assets intangible assets and other long-term assets
(gain expressed with “-”) 371479536.46 234749852.86
Loss on retirement of fixed assets (gain expressed with “-”) 7807614.60 8343315.44
Loss on changes in fair value (gain expressed with “-”) -62022355.11 17898094.22
Financial expenses (income expressed with “-”) 454593062.75 151247342.16
Investment loss (income expressed with “-”) -3366779.73 15969561.73
Decrease in deferred tax assets (increase expressed with “-”) -109188793.32 240525211.30
Increase in deferred tax liabilities (decrease expressed with “-”) 40864851.51 -59513151.93
Decrease in inventories (increase expressed with “-”) -943226436.08 -463400406.42
Decrease in trade receivables (increase expressed with “-”) -2966822352.37 -445997039.57
Increase in trade payables (decrease expressed with “-”) 3884995338.69 657933275.42
Others -470697770.08 477990.07
Net cash flows from operating activities 5307141746.99 4986018688.48
2. Significant investing and financing activities not involving cash receipts and payments
Debt-to-capital swap
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 6104722626.15 5343600382.37
Less: Opening balance of cash 5343600382.37 5644487018.31
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 761122243.78 -300886635.94
(4) Components of cash and cash equivalents
In RMB
Item Closing balance Opening balance
I. Cash 6104722626.15 5343600382.37
Incl.: Cash on hand 620829.32 266540.67
Bank deposits immediately
6104101796.835343333841.70
available for withdrawal
III. Closing balance of cash and cash
6104722626.155343600382.37
equivalents
(6) Cash and bank balances not classified as cash and cash equivalents
In RMB
Amount of the current Amount of the
Item Reason for not classified as cash and cash equivalents
period previous period
Term deposits and May be unavailable for withdrawal due to pledge
596283232.701325308422.77
interest freeze or otherwise
Security deposit for May be unavailable for withdrawal due to pledge
426049076.84368078334.92
bills freeze or otherwise
Security deposit for May be unavailable for withdrawal due to pledge
295079875.64
factoring freeze or otherwise
Security deposit for May be unavailable for withdrawal due to pledge
14892991.9539986159.48
letters of credit freeze or otherwise
Security deposit for May be unavailable for withdrawal due to pledge
52679614.6991083897.01
letters of guarantee freeze or otherwise
May be unavailable for withdrawal due to pledge
Other security deposits 160576091.13 4274055.74
freeze or otherwise
182DSBJ Annual Report 2025
Total 1545560882.95 1828730869.92
81. Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
In RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances 4546583606.40
Incl.: USD 470016985.14 7.0288 3303655385.15
EUR 142661182.24 8.2355 1174886166.34
HKD 4369814.62 0.9032 3946816.56
THB 123476758.35 0.2225 27473578.73
SGD 2397096.94 5.4586 13084793.36
NTD 45615636.00 0.2231 10176848.39
MXN 13808841.30 0.3899 5384067.22
MAD 6296147.17 0.7672 4830404.11
JPY 29196359.35 0.0448 1307909.31
Others 53051844.30 0.0346 1837637.22
Accounts receivable 6902410216.45
Incl.: USD 759366265.94 7.0288 5337433610.04
EUR 179373653.66 8.2355 1477231724.72
HKD
NTD 383962021.00 0.2231 85661926.89
CZK 5482508.84 0.3392 1859667.00
MXN 572679.68 0.3899 223287.81
Long-term borrowings 2737185127.75
Incl.: USD
EUR 8800214.65 8.2355 72474167.75
HKD 2950300000.00 0.9032 2664710960.00
Other receivables 188837701.17
Incl.: EUR 14377438.86 8.2355 118405397.73
NTD 170366975.00 0.2231 38008872.12
USD 2443028.78 7.0288 17171560.69
MXN 20710717.82 0.3899 8075108.88
THB 29291404.04 0.2225 6517337.40
HUF 30958889.71 0.0213 659424.35
Short-term borrowings 1709217436.31
Incl.: EUR 99454575.16 8.2355 819058153.73
USD 111723633.81 7.0288 785283077.32
THB 471353731.51 0.2225 104876205.26
Accounts payable 4713296361.55
Incl.: USD 350731783.56 7.0288 2465223560.29
EUR 157419960.35 8.2355 1296432083.46
THB 2991634030.95 0.2225 665638571.89
NTD 921763045.00 0.2231 205645335.34
MXN 84703451.77 0.3899 33025875.85
MAD 20174878.58 0.7672 15478166.85
JPY 327570133.00 0.0448 14674159.25
CZK 36175527.70 0.3392 12270739.00
183DSBJ Annual Report 2025
HUF 171861395.00 0.0213 3660647.71
Others 1262389.29 0.9880 1247221.93
Other payables 503349756.32
Incl.: EUR 55742254.42 8.2355 459065336.28
USD 5155858.60 7.0288 36239498.93
THB 28300824.00 0.2225 6296933.34
NTD 7566228.00 0.2231 1688025.47
JPY 1338534.00 0.0448 59962.31
Non-current liabilities due
168963034.18
within one year
Incl.: EUR 19491162.09 8.2355 160519465.39
NTD 31536986.06 0.2231 7035901.59
USD 200271.34 7.0288 1407667.19
(2) Information about overseas operating entities including main places of business and functional
currencies of major overseas operating entities basis for the choice of functional currencies and reasons
for changes in functional currencies:
□ Applicable□ N/A
82. Leases
(1) The Company as the lessee
□ Applicable □ N/A
Sale and leaseback transactions
1) For information about right-of-use assets see the description in Notes V(I)16 to the Financial Statements for details.
2) For the Company’s accounting policies on short-term leases and leases of low-value assets see the description in Notes
III(XXVIII) to the Financial Statements for details. The amounts of short-term lease expenses and lease expenses of low-value
assets recognized in the profit or loss of the current period are as follows:
In RMB
Item Current period The same period of theprevious year
Short-term lease expenses 58364654.52 8044946.05
Total 58364654.52 8044946.05
3) Profit/loss and cash flow related to leases in the current period
In RMB
Item Current period The same period of theprevious year
Interest expense on lease liabilities 111289170.85 69674382.08
Total cash outflow for leases 325595104.94 652362259.97
(2) The Company as the lessor
The Company as lessor under operating leases
□ Applicable □ N/A
In RMB
Item Rental income Incl.: Income related to variable lease payments not included in lease receipts
Rental income 3495980.29
184DSBJ Annual Report 2025
Total 3495980.29
Annual undiscounted lease receipts in the following five years
□ Applicable □ N/A
In RMB
Annual undiscounted lease receipts
Item
Closing balance Opening balance
Year 1 943144.17 82450.00
Year 2 948715.60
Year 3 276952.60
VIII. Research and Development Expenses
In RMB
Item Amount of the current period Amount of the previous period
Direct costs 554640787.71 548167661.46
Labor costs 644047801.55 510711948.15
Depreciation 125586937.98 98435864.38
Others 107499527.58 109497070.24
Total 1431775054.82 1266812544.23
Incl.: Expensed R&D expenses 1417226723.87 1266812544.23
Capitalized R&D expenses 14548330.95
IX. Changes in the Scope of Consolidation
1. Business combination involving entities not under common control
(1) Business combination involving entities not under common control effected in the current period
In RMB
Revenues Net profit Cash flows
of the of the of the
Basis for acquiree acquiree acquiree
Date of Percentage Method of determinin from the from the from the
Acquisition Acquisition
Acquiree acquisition of shares acquisition g the acquisition acquisition acquisition
cost date
of shares acquired of shares acquisition date till the date till the date till the
date end of the end of the end of the
current current current
period period period
When the
GMD Group 2025-10-31 50985235 100.00 Acquisition 2025/10/31
1292325330118591.93494787.
3.60 control is 84.34 29 56
gained
When the
Source 2025-9-30 4358975888.59 97.479 Acquisition 2025/9/30
12661553
control is 14355349 31450326
Photonics 21.96 8.32 6.80
gained
Other information:
In June 2025 through a wholly owned subsidiary Multek Group (Hong Kong) Limited the Company entered into a Share
Purchase Agreement with the former shareholder of Source Photonics Holdings (Cayman) Limited (hereinafter referred to as
185DSBJ Annual Report 2025
Source Photonics) under which the Company acquired equity interests in Source Photonics with M&A loans and its own funds
and the Company subscribed to its convertible bonds where the consideration for the acquiring 100% of Source Photonics’ shares
was no more than USD 629 million; and the consideration for acquiring the interests in Source Photonics’s Employee Stock
Option Program (ESOP included in the acquisition solution) was no more than USD 58 million. In October 2025 pursuant to the
relevant provisions of the Share Purchase Agreement and the Accounting Standard for Business Enterprises the Company
included Source Photonics into the scope of consolidation.In May 2025 through a wholly owned subsidiary DSBJ Pte. Ltd. the Company acquired 100% equity interests in Groupe
Mécanique Découpage (hereinafter referred to as the GMD Group) and implemented debt restructuring at the amount of about
EUR 100 million. On October 31 2025 given that all the closing conditions set forth in the Share Purchase Agreement were met
the transaction parties handed over the equity interests in the target company in accordance with the provisions of the Share
Purchase Agreement.
(2) Acquisition cost and goodwill
In RMB
Acquisition cost GMD Group Source Photonics
--Cash 23.87 4358975888.59
--Fair value of non-cash assets
--Fair value of liabilities issued or assumed 509852329.73
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value at the acquisition date of the equity interests held prior to
the acquisition date
--Others
Total acquisition cost 509852353.60 4358975888.59
Add: Fair value attributable to the ESOP 304121718.99
Less: Share of fair value of identifiable net assets acquired 980550123.68 1838004095.10
Excess of the share of fair value of identifiable net assets acquired over -470697770.08 2825093512.48
goodwill/acquisition cost
Method for determining the fair value of acquisition cost:
The acquisition cost for GMD Group is the sum of the nominal acquisition consideration paid by the buyer and the amount
of the debts assumed.The acquisition cost for Source Photonics is the amount of cash paid at the acquisition date and to be paid for gaining control
over the acquiree.
(3) Identifiable assets and liabilities of the acquirees at the acquisition date
In RMB
GMD Group Source Photonics
Fair value at the Carrying value at the Fair value at the Carrying value at the
acquisition date acquisition date acquisition date acquisition date
Assets 5986766091.71 5796402828.20 4904362843.36 4420012794.00
Cash and bank
balances 1051539248.57 1051539248.57 329592423.19 329592423.19
Accounts
receivable 1692531583.03 1692531583.03 1373807793.76 1373807793.76
Inventories 1172975686.31 1152107211.86 1264849666.35 1248205680.28
186DSBJ Annual Report 2025
Fixed assets 544405180.32 388141082.70 740395983.58 740395983.58
Intangible assets 66984471.20 53753876.49 523485193.25 55779129.96
Deferred tax
assets 107642423.06 107642423.06 56749549.52 56749549.52
Liabilities 5006072809.71 4960996223.06 3012204146.95 2939551639.55
Borrowings 981862985.85 981862985.85 568618155.09 568618155.09
Accounts payable 1452584091.50 1452584091.50 1493303419.97 1493303419.97
Provisions 174422380.97 174422380.97
Deferred tax
liabilities 86581575.15 41504988.50 140617696.70 67965189.30
Net assets 980693282.00 835406605.14 1892158696.41 1480461154.45
Less: Minority interests 143158.32 143158.32 6620175.19 6620175.19
Net assets acquired 980550123.68 835263446.82 1885538521.22 1473840979.26
Method for determining the fair value of identifiable assets and liabilities:
The fair value of identifiable assets and liabilities is determined with reference to the results of appraisal implemented by
appraisal institutions.
5. Changes in the scope of consolidation due to other reasons
Change in the scope of consolidation due to other reasons (such as new establishment of subsidiaries liquidation of subsidiaries
etc.) and relevant information:
1. Subsidiaries newly included in the scope of consolidation
Company name Method of acquisition Date of acquisition ofof shares shares Contribution amount
Percentage of capital
contribution
DSBJ Europe Holding Newly established 2025-12-26 EUR 100000 100.00%
2. Subsidiaries removed from the scope of consolidation
Method of disposal Date of disposal of Net assets at the date of Net profit from the beginningCompany name of shares shares disposal (RMB) of the period to the date ofdisposal
DSBJ International Deregistration 2025-12-28 -13876885.89
X. Interests in Other Entities
1. Interests in subsidiaries
(1) Composition of the enterprise group
In RMB
Principal Shareholding
Place of Nature of
Subsidiary place of percentage Method of acquisition
incorporation business
business Direct Indirect
Hong Kong Dongshan
Precision Union Hong Kong Hong Kong Business &
100.00% Established
Opoelectronic Co. China China investment
Limited
Dragon Electronix Business &
USA USA 100.00% Established
Holdings Inc. investment
Business combinations
Mutto Optronics
Suzhou Suzhou Manufacturing 100.00% involving entities not
Technology Co. Ltd.under common control
Multi-Fineline Electronix Singapore Singapore Business & 100.00% Business combinations
187DSBJ Annual Report 2025
Singapore Pte. Ltd. investment involving entities not
under common control
Source Photonics Business combinations
Business &
Holdings (Cayman) Cayman Cayman 97.48% involving entities not
investment
Limited under common control
Business combinations
Source Photonics
Chengdu Chengdu Manufacturing 97.48% involving entities not
(Chengdu) Co. Ltd.
under common control
Business combinations
MFLEX Suzhou Co.Suzhou Suzhou Manufacturing 100.00% involving entities not
Ltd.under common control
MFLEX Yancheng Co.Yancheng Yancheng Manufacturing 100.00% Established
Ltd.Business &
DSBJ Pte. Ltd. Singapore Singapore 100.00% Established
investment
Business combinations
Multek Industries
Zhuhai Zhuhai Manufacturing 100.00% involving entities not
Limited
under common control
Business combinations
Multek China Limited Zhuhai Zhuhai Manufacturing 100.00% involving entities not
under common control
Suzhou Dongyue New
Energy Technology Co. Kunshan Kunshan Manufacturing 100.00% Established
Ltd.Business combinations
Suzhou JDI Electronics
Suzhou Suzhou Manufacturing 100.00% involving entities not
Inc.under common control
(4) Disclosure of aggregated individually immaterial joint ventures and associates
In RMB
Closing balance/amount of the current Opening balance/amount of the previous
period period
Joint ventures:
Total carrying value of investments 126566432.55 155008795.68
Aggregate of the following calculated
according to the shareholding ratio
--Net profit -921784.97 -398084.25
Associates:
Aggregate of the following calculated
according to the shareholding ratio
--Total comprehensive income -921784.97 -398084.25
XI. Government Grants
2. Liabilities related to government grants
□ Applicable □ N/A
In RMB
Item Opening New grants Amount of Amount Other changes Closing Related to
188DSBJ Annual Report 2025
balance received in the non- transferred to in the current balance assets/income
current period operating other income in period
revenue the current
recognized period
in the
current
period
Deferred
585933889.89 404812164.61 219532996.02 118630075.01 889843133.49 Related to
income assets
Subtotal 585933889.89 404812164.61 219532996.02 118630075.01 889843133.49
3. Government grants recognized in profit or loss
□ Applicable □ N/A
In RMB
Item Amount of the current period Amount of the previous period
Government grants recognized in other
357530102.45483724850.14
income
Effect of financial interest subsidy on
2995675.45
total profit
Total 360525777.90 483724850.14
XII. Risks Associated with Financial Instruments
1. Risks arising from financial instruments
The Company’s objectives of risk management are to maintain a balance between risk and income minimize the negative
effect of risks on the operating results of the Company and maximize the interests of the shareholders and other equity investors.On the basis of such objectives of risk management the Company’s basic risk management policy is designed to identify and
analyze all kinds of risks facing by the Company set appropriate risk thresholds in risk management and monitor risks and
adherence to limits in a timely and reliable manner.The Company faces a variety of risks associated with financial instruments in its daily activities mainly including credit risk
liquidity risk and market risk. Below is a summary of the policies for managing such risks considered and approved by the
management.(I) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to
discharge an obligation.
1. Credit risk management practice
(1) Assessment of credit risk
At each balance sheet date the Company assesses whether the credit risk of a financial instrument has increased significantly
since initial recognition. In assessing whether the credit risk has increased significantly since initial recognition the Company
takes into account reasonable and supportable information which is available without undue cost or effort including qualitative
and quantitative analysis based on historical data external credit risk rating and forward-looking information. The Company
determines the changes in default risk of financial instruments during their estimated lifetime through a comparison of the default
risk at the balance sheet date and the initial recognition date on an individual or collective basis.The Company determines that the credit risk of a financial instrument has increased significantly when one or more of the
following qualitative and quantitative standards are met:
189DSBJ Annual Report 2025
1) Quantitative standard mainly relates to the scenario in which at the balance sheet date the probability of default in the
remaining lifetime has risen by more than a certain percentage compared with the initial recognition; and/or
2) Qualitative standard mainly relates to significant adverse changes in the debtor’s business situation or financial position
and present or expected changes in technology market economy or legal environment that will have a material adverse effect on
the debtor’s ability to repay.
(2) Definition of default and credit-impaired assets
A financial instrument is in default or credit impaired when one or more of the following conditions are met:
1) significant financial difficulty of the debtor;
2) any breach by the debtor of contract terms binding on it;
3) it becomes probable that the debtor will enter bankruptcy or other financial reorganization;
4) the creditors of the debtor for economic or contractual reasons relating to the debtor’s financial difficulty having granted
to the debtor a concession that the creditors would not otherwise consider.
2. Measurement of expected credit impairment losses
The key factors in the measurement of expected credit impairment losses include the probability of default loss given
default and exposure to default risk. The Company has developed a model of the probability of default loss given default and
exposure to default risk on the basis of quantitative analysis of historical data (e.g. counterparty rating guarantee measures and
collateral type repayment method etc.) and forward-looking information.
3. See Notes V(I)3 V(I)4 V(I)7 and V(I)10 for the conciliation table of opening balances and closing balances of allowance
for impairment loss on financial instruments.
4. Credit risk exposure and credit risk concentration
The Company’s credit risk is primarily attributable to cash and bank balances and receivables. In order to control such risks
the Company has taken the following measures:
(1) Cash and bank balances
The Company deposits its bank balances and other monetary capital in financial institutions with relatively high credit
ratings so its credit risk is relatively low.
(2) Accounts receivable
The Company performs credit assessments on customers using credit settlement on an ongoing basis. The Company selects
approved and creditworthy customers based on the result of credit assessment and monitors the balance of accounts receivable
from them on an ongoing basis to avoid significant risk of doubtful accounts.As the Company only deals with approved and creditworthy third parties no collateral is required. The concentration of
credit risks are managed customer by customer. As of December 31 2025 the Company faced certain credit concentration risks.In particular 35.67% (December 31 2024: 54.89%) of the Company’s accounts receivable came from the top 5 customers
without any collateral or other credit enhancement.The Company’s maximum exposure to credit risk is the carrying value of each financial asset in the balance sheet.(II) Liquidity risk
Liquidity risk is the risk that the Company may not have enough cash to satisfy its obligation to deliver cash or other
financial assets due to the inability to liquidate financial assets at fair value in a timely manner or failure of counterparties to
discharge their contract liabilities acceleration of debts failure to generate expected cash flows or otherwise.In order to control such risk the Company utilizes a variety of financing tools such as settlement by means of notes bank
loans etc. combines long-term and short-term financing to optimize financing structure and maintains a balance between
financing sustainability and flexibility. The Company has obtained lines of credit from many commercial banks to satisfy its
working capital requirements and capital expenditures.Financial liabilities classified by remaining maturity
In RMB
190DSBJ Annual Report 2025
Closing balance
Item
Carrying value Undiscountedcontract amount Within 1 year 1-3 years Over 3 years
Bank loans 17345850770.59 18447118979.42 11256575000.94 2692839996.18 4497703982.29
Financial liabilities held for
trading 46545937.17 46545937.17 46545937.17
Notes payable 1002812950.68 1002812950.68 1002812950.68
Accounts payable 13043136687.34 13043136687.34 13043136687.34
Other payables 705336813.22 705336813.22 705336813.22
Lease liabilities (including
non-current liabilities due 2290955991.66 2507799521.86 591089880.28 1237264337.10 679445304.48
within one year)
Long-term payables
(including non-current 28115200.00 28115200.00 28115200.00
liabilities due within one year)
Subtotal 34462754350.66 35780866089.69 26673612469.63 3930104333.28 5177149286.77
(Continued)
Balance at the end of the previous year
Item
Carrying value Undiscountedcontract amount Within 1 year 1-3 years Over 3 years
Bank loans 12427287441.14 12945053630.60 7357404130.16 4070557149.80 1517092350.64
Financial liabilities held
for trading 82922390.17 82922390.17 82922390.17
Notes payable 935581272.50 935581272.50 935581272.50
Accounts payable 9659268990.43 9659268990.43 9659268990.43
Other payables 94163223.90 94163223.90 94163223.90
Lease liabilities
(including non-current
liabilities due within one 1483360719.42 1605316008.57 155598833.56 1394948589.61 54768585.40
year)
Long-term payables
(including non-current
liabilities due within one 49434786.31 49434786.31 49434786.31
year)
Subtotal 24732018823.87 25371740302.48 18284938840.72 5514940525.72 1571860936.04
(III) Market Risk
Market risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
prices. Market risk mainly includes interest risk and foreign exchange risk.
1. Interest risk
Interest risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes in market
interest rates. Interest-bearing financial instruments with fixed interest rates expose the Company to fair value interest rate risk
while interest-bearing financial instruments with floating interest rates expose the Company to cash flow interest rate risk. The
Company determines the proportion of fixed-rate financial instruments and floating-rate financial instruments based on the market
environment and reviews and monitors the appropriateness of its portfolio of financial instruments on a regular basis. The cash
flow interest rate risk that the Company faces is primarily associated with the floating-rate bank loans owed by the Company.
191DSBJ Annual Report 2025
As of December 31 2025 the Company had bank loans of RMB 6241579337.64 (December 31 2024: RMB
2392686104.16) on which the interests were calculated on a floating interest rate. Supposing the interest rate changes by 50 basic
points while other variables remain unchanged the Company’s total profit and shareholders’ interest will not be materially
affected.
2. Foreign exchange risk
Foreign exchange risk is the risk of fluctuation in the fair value or future cash flows of financial instruments due to changes
in exchange rates. The Company’s foreign exchange risk relates mainly to foreign currency denominated monetary assets and
liabilities. When a short-term imbalance occurs on foreign currency denominated assets and liabilities the Company may trade
foreign currencies at market exchange rates when necessary in order to maintain the net risk exposure at an acceptable level.See Note V(V)1 to the Financial Statements for details of foreign currency denominated monetary assets and liabilities as of
the end of the reporting period.(IV) Hedge
Qualitative and Economic EffectiveCorresponding risk quantitative relationship between realization of the
Effect of the
Item management policy and information of the hedged item and expected risk
corresponding hedging
target activity on the riskhedged risks the hedging managementinstrument target exposure
To avoid potential risks
against the Company’s
expected production and The hedged risk
operation due to the is the risk of The future contracts
fluctuation in the prices price fluctuation change in the
of copper aluminum and of copper and reverse direction dueCash flow to the same risks of
hedging – gold and reduce the aluminum. Seefluctuation in the the description in price fluctuation of The implementation offuture operating cash flow Notes V.43 to the copper and The Company has the hedging businessescontracts caused by the fluctuation Financial aluminum expected set up relevant gives full play to the
in the prices of copper Statements for to be purchased and internal control hedging and value
aluminum and gold the quantitative sold measures for preservation features of
Company had hedging information. hedging to the futures and
businesses of copper and continuously derivative market so as
aluminum commodities. trace hedging to avoid the risks of
The expected sales businesses so as price fluctuation due toThe expected to be settled in USD to ensure the the price fluctuation insales to be settled
in USD are are in the same
realization of the commodities and foreign
Cash flow Manage the Company’s foreign currency
expected risk exchange hence
hedging – risks exposure of
subject to foreign corresponding to the management reducing the effect on
foreign expected sales of foreign
exchange risk future foreign target the normal operation of
exchange exchange to be settled in
exposure. See the exchange contracts the Company
future USD by using future
description in where the basic
contracts foreign exchange
Notes V.43 to the variable of the
contracts FinancialStatements for hedging instrument
quantitative and the hedged item
information. is the exchange rateof USD
(V) Transfer of financial assets
1. Basic information about transfer of financial assets
In RMB
Types of Nature of transferred Amount of transferred
transfer financial assets financial assets Derecognition Basis for determining derecognition
Note Accounts receivable
discounting financing 311264752.18 Derecognized
All most all the risks and returns have
been transferred
Note
endorsement Notes receivable 1780000.00 Derecognized
All most all the risks and returns have
been transferred
Note Accounts receivable
endorsement financing 743198117.88 Derecognized
All most all the risks and returns have
been transferred
Factoring of
accounts Accounts receivable 981561847.06
Not All most all the risks and returns have
derecognized been reserved
192DSBJ Annual Report 2025
receivable
Subtotal 2037804717.12
2. Financial assets derecognized due to transfer
In RMB
Item Method of transferring Amount of the financial Gains or losses related to thefinancial assets assets derecognized derecognition
Accounts receivable financing Endorsement/discounting 1054462870.06 87948.24
Subtotal 1054462870.06 87948.24
3. Assets and liabilities arising from transfer of financial assets and continued involvement
In RMB
Item Method of assets transfer Amount of assets arising from Amount of liabilities arisingcontinuous involvement from continuous involvement
Accounts receivable Factoring 981561847.06 981561847.06
Subtotal 981561847.06 981561847.06
XIII. Fair Value Disclosures
1. Closing balance of the fair value of assets and liabilities measured at fair value
In RMB
Closing balance of fair value
Item Level 2 fairLevel 1 fair value Level 3 fair value
value Total
measurement measurement
measurement
I. Recurring fair value measurement -- -- -- --
1. Financial assets at fair value
201553860.61201553860.61
through profit or loss
(2) Investment in equity
124912226.68124912226.68
instruments
Derivatives 65126316.01 65126316.01
Bank wealth management product 11515317.92 11515317.92
2. Accounts receivable financing 285277607.54 285277607.54
(III) Investment in other equity
442976297.74442976297.74
instruments
Total assets measured at fair value
929807765.89929807765.89
on a recurring basis
(VI) Financial liabilities held for
46545937.1746545937.17
trading
Total liabilities measured at fair
46545937.1746545937.17
value on a recurring basis
II. Fair value measurement on a
--------
non-recurring basis
193DSBJ Annual Report 2025
2. Basis for determining the market prices of items subject to recurring and non-recurring fair value
measurements within Level 1
1. The fair value of forward exchange settlement and sale transactions already authorized but not yet settled is determined
based on the forward exchange rates as confirmed with the transaction bank at the end of the reporting period.
2. The Company estimates the fair value by using the market method the method of discounting future cash flows etc. for
other equity instrument investments not listed. In the absence of a material change in the operating environment operating
conditions and financial conditions of the investee the Company uses the investment costs as the reasonable estimate of the fair
value.
3. The fair value of a note receivable is determined based on its face amount.
4. The fair value of an investment in equity instruments is determined based on the initial investment amount.
XIV. Related Parties and Related-party Transactions
1. Parent company of the Company
The ultimate controllers of the Company are YUAN Yonggang YUAN Yongfeng and YUAN Fugen.Name of natural person Relationship with the Percentage of ownership Percentage of voting rights heldCompany interest in the Company (%) in the Company (%)
YUAN Yonggang YUAN
Yongfeng and YUAN Fugen Actual controllers 33.26 33.26
2. Subsidiaries of the Company
See the description in Notes VII for details about the Company’s subsidiaries.
3. Joint ventures and associates of the Company
See the description in Notes VII for details about significant joint ventures or associates of the Company.Other joint ventures or associates that have carried out related-party transactions with the Company in the current period or the
previous periods with balances recorded in the current period:
Name of joint venture or associate Relationship with the Company
Suzhou Toprun Electric Equipment Co. Ltd. Associate
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Associate
Multek International Development Limited Associate
4. Other related parties
Name of other related party Relationship with the Company
Hai Dixin Semiconductor (Nantong) Co. Ltd. Associate
Anhui Landun Photoelectron Co. Ltd. A company controlled by the actual controllers of the Company
Shanghai Corkuna New Material Technologies Co. Ltd. A company controlled by the actual controllers of the Company
Suzhou Corkuna New Material Technologies Co. Ltd. A company controlled by the actual controllers of the Company
194DSBJ Annual Report 2025
5. Related-party transactions
(1) Related-party commodity and service transactions
Purchase of goods and receipt of services from related parties
In RMB
Whether or not Amount of the
Amount of the Transaction
Related party Subject matter exceed the previous
current period quota approved
transaction quota period
Suzhou Dongcan Optoelectronics Purchase of
223196.55710133.35
Technology Co. Ltd. goods
Suzhou Dongcan Optoelectronics Acceptance of
50557.52
Technology Co. Ltd. services
Shanghai Corkuna New Material Purchase of
1434644.279595091.96
Technologies Co. Ltd. goods
Suzhou Corkuna New Material Purchase of
59343986.587766790.60
Technologies Co. Ltd. goods
Sale of goods and rendering of services to related parties
In RMB
Amount of the Amount of the
Related party Subject matter
current period previous period
Suzhou Toprun Electric Equipment Co. Ltd. Sale of equipment 253182.96
Suzhou Toprun Electric Equipment Co. Ltd. Software and services 683324.25
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Sale of goods 1603.77
Suzhou Dongcan Optoelectronics Technology Co. Ltd. Rendering of services 49312.65 59554.04
Anhui Landun Photoelectron Co. Ltd. Rendering of services 75600.00
Anhui Landun Photoelectron Co. Ltd. Sale of goods 5070.90
Suzhou Corkuna New Material Technologies Co. Ltd. Sale of equipment
(2) Related-party guarantees
The Company as guarantor
In RMB
Whether the obligation
Amount Effective date Expiry date of
Obligor guaranteed has been
guaranteed of guarantee guarantee
discharged
Suzhou Toprun Electric Equipment Co. Ltd. 2000000.00 2025/1/25 2026/1/25 No
Suzhou Toprun Electric Equipment Co. Ltd. 6000000.00 2025/1/21 2026/1/21 No
Suzhou Toprun Electric Equipment Co. Ltd. 2000000.00 2025/8/22 2026/2/22 No
Suzhou Toprun Electric Equipment Co. Ltd. 5217971.96 2025/9/15 2026/7/15 No
Suzhou Toprun Electric Equipment Co. Ltd. 3790000.00 2025/10/21 2026/6/18 No
Suzhou Toprun Electric Equipment Co. Ltd. 992028.04 2025/8/18 2026/3/23 No
Suzhou Toprun Electric Equipment Co. Ltd. 4400000.00 2025/3/17 2026/3/16 No
195DSBJ Annual Report 2025
(7) Remunerations of key officers
In RMB
Item Amount of the current period Amount of the previous period
Remunerations of key officers 24517000.00 22357000.00
6. Amounts receivable from/payable to related parties
(1) Amounts receivable from related parties
In RMB
Closing balance Opening balance
Item Related party Allowance AllowanceBook
Book balance for doubtful for doubtful
balance
accounts accounts
Accounts Suzhou Dongcan Optoelectronics Technology Co.
370742.71150802.90318894.6493307.33
receivable Ltd.Accounts
Suzhou Toprun Electric Equipment Co. Ltd. 124120.00 620.60 11177.70 55.89
receivable
Accounts
Hai Dixin Semiconductor (Nantong) Co. Ltd. 1607132.92 1607132.92 1607132.92 1607132.92
receivable
Accounts
Anhui Landun Photoelectron Co. Ltd. 90498.90 4296.75
receivable
Other
Hai Dixin Semiconductor (Nantong) Co. Ltd. 1790748.55 1790748.55 1790748.55 1790748.55
receivables
Other
Multek International Development Limited 14106207.42 705310.37
receivables
(2) Amounts payable to related parties
In RMB
Item Related party Closing book balance Opening book balance
Accounts
Suzhou Dongcan Optoelectronics Technology Co. Ltd. 229916.81 298971.64
payable
Accounts
Shanghai Corkuna New Material Technologies Co. Ltd. 282921.53 1792220.15
payable
Accounts
Suzhou Corkuna New Material Technologies Co. Ltd. 27479253.79 4970486.19
payable
XVI. Commitments and Contingencies
As of the balance sheet date the Company did not have any significant commitment or significant contingency needing to be
disclosed.XVIII. Other Significant Information
The Company mainly engages in the sale of electronic circuits optical modules (including optical chips) precision
components photoelectric display modules and other products and manages and assesses its operating results by taking such
196DSBJ Annual Report 2025
businesses as a whole. Therefore the Company has no segment information to be disclosed. For breakdown information about the
Company’s revenue see the description in Notes V(II)1 to the Financial Statements.XIX. Notes to Key Items of the Standalone Financial Statements
1. Accounts receivable
(1) Accounts receivable by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 1662114718.95 2998577516.40
Within 6 months 1546087059.15 1717998540.30
7-12 months 116027659.80 1280578976.10
1-2 years 1279507925.29 67754351.05
2-3 years 43980168.50 94214723.81
Over 3 years 87344953.06 75446354.06
3-4 years 19637039.23 3854595.17
4-5 years 11406818.31 48135349.97
Over 5 years 56301095.52 23456408.92
Total 3072947765.80 3235992945.32
(2) Notes receivable by method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Type Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Allowance
355784355784146254146254
recognized 1.16% 100.00% 0.45% 100.00%
61.5461.5467.5567.55
individually
Incl.:
Allowance
303736691382296823322136778748314349
recognized 98.84% 2.28% 99.55% 2.42%
9304.2657.921046.347477.7763.402614.37
collectively
Incl.:
307294104716296823323599925003314349
Total 100.00% 3.41% 100.00% 2.86%
7765.80719.461046.342945.3230.952614.37
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Group of related parties
1767944954.35
within the scope of
197DSBJ Annual Report 2025
consolidation
Aging group 1269424349.91 69138257.92 5.45%
Total 3037369304.26 69138257.92
Allowance for doubtful accounts recognized collectively: Aging group
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Within 6 months 1190131880.25 5950659.40 0.50%
7-12 months 6397344.94 319867.25 5.00%
1-2 years 11634241.89 2326848.38 20.00%
2-3 years 1799999.84 1079999.90 60.00%
Over 3 years 59460882.99 59460882.99 100.00%
Total 1269424349.91 69138257.92
(3) Allowance for doubtful accounts recognized recovered or reversed in the current period
Allowance for doubtful accounts recognized in the current period:
In RMB
Changes in the current period
Opening
Type
balance Recovered or
Closing balance
Recognized Written off Others
reversed
Allowance
recognized 14625467.55 20952993.99 35578461.54
individually
Allowance
recognized 77874863.40 -8726605.48 10000.00 69138257.92
collectively
Total 92500330.95 12226388.51 10000.00 104716719.46
(5) The top 5 debtors in terms of closing balance of accounts receivable and contract assets
In RMB
Total closing % of total closing Closing balance of
Closing
balance of balance of allowance for doubtful
Closing balance of balance of
Company name accounts accounts accounts receivable and
accounts receivable contract
receivable and receivable and impairment of contract
assets
contract assets contract assets assets
Mutto Optronics
Technology Co. Ltd. 859189565.53 859189565.53 27.96
DSBJ Pte. Ltd. 345259894.85 345259894.85 11.24
Top 3 281720830.28 281720830.28 9.17 1450594.61
MFLEX Yancheng Co.Ltd. 281301206.19 281301206.19 9.15
Top 5 265510987.62 265510987.62 8.64 1339714.26
Total 2032982484.47 2032982484.47 66.16 2790308.87
2. Other receivables
In RMB
198DSBJ Annual Report 2025
Item Closing balance Opening balance
Dividends receivable 1430532996.21 1495758008.53
Other receivables 4833638901.75 4473728550.13
Total 6264171897.96 5969486558.66
Dividends receivable
1) Dividends receivable by category
In RMB
Item (or investee) Closing balance Opening balance
Hong Kong Dongshan Holding Limited 1014532996.21 1044758008.53
Yancheng Dongshan Precision
266000000.00266000000.00
Manufacturing Co. Ltd.Suzhou JDI Electronics Inc. 80000000.00 140000000.00
Suzhou Dongyue New Energy
70000000.0045000000.00
Technology Co. Ltd.Total 1430532996.21 1495758008.53
2) Significant dividends receivable aged over one year
In RMB
Reason for failure Whether or not impaired and
Item (or investee) Closing balance Age
to collect the basis for determination
To support the
Over 3
Hong Kong Dongshan Holding Limited 916129796.21 development of
years
the subsidiary
To support the
Yancheng Dongshan Precision Over 3
266000000.00 development of
Manufacturing Co. Ltd. years
the subsidiary
Total 1182129796.21
(3) Other receivables
1) Other receivables by nature
In RMB
Nature of accounts Closing book balance Opening book balance
Current accounts 4829937651.06 4469455999.04
Security deposit 5000.00 1325000.00
Loan and reserve fund 1947026.93 4407055.00
Temporary payment receivable 6377782.89 2639160.94
Total 4838267460.88 4477827214.98
2) Other receivables by age
In RMB
Age Closing book balance Opening book balance
Within 1 year (inclusive) 4699261104.15 4293041449.14
199DSBJ Annual Report 2025
1-2 years 134572600.27 179913329.38
2-3 years 1936000.00
Over 3 years 4433756.46 2936436.46
3-4 years 1765000.00 1367016.15
4-5 years 1250649.25 1414020.31
Over 5 years 1418107.21 155400.00
Total 4838267460.88 4477827214.98
3) Other receivables by the method of recognition of allowance for doubtful accounts
In RMB
Closing balance Opening balance
Allowance for Allowance for
Book balance Book balance
doubtful accounts doubtful accounts
Type Carrying Carrying
Ratio of value Ratio of value
Amount % Amount provisio Amount % Amount provisio
n n
Allowan
ce
recogniz 483826 462855 483363 447782 409866 447372
100.00%0.10%100.00%0.09%
ed 7460.88 9.13 8901.75 7214.98 4.85 8550.13
collectiv
ely
483826462855483363447782409866447372
Total 100.00% 0.10% 100.00% 0.09%
7460.889.138901.757214.984.858550.13
Allowance for doubtful accounts recognized collectively:
In RMB
Closing balance
Item Allowance for doubtful
Book balance Ratio of provision
accounts
Group of related parties
within the scope of 4829937651.06
consolidation
Aging group 8329809.82 4628559.13 55.57%
Incl.: Within 1 year 3896053.36 194802.67 5.00%
Over 3 years 4433756.46 4433756.46 100.00%
Total 4838267460.88 4628559.13
Recognition of allowance for doubtful accounts in accordance with the general model of expected credit impairment losses:
In RMB
Stage I Stage II Stage III
Allowance for doubtful 12-month expected Lifetime expected Lifetime expected Total
accounts credit impairment credit impairment loss credit impairment loss
loss (not credit impaired) (credit impaired)
Balance as at January 1
155649.5538578.843904436.464098664.85
2025
In the current period the
balance as at January 1
2025
200DSBJ Annual Report 2025
- Transferred to stage III -38578.84 38578.84
Recognized 39153.12 490741.16 529894.28
Balance as at December
194802.674433756.464628559.13
312025
6) The top 5 debtors in terms of closing balance of other receivables
In RMB
Closing balance
% of total closing
Nature of of allowance for
Company name Closing balance Age balance of other
account doubtful
receivables
accounts
Yancheng Dongshan Precision Current
618606036.63 Within 1 year 12.79%
Manufacturing Co. Ltd. accounts
Yancheng Dongshan Precision Current
906881008.02 1-2 years 18.74%
Manufacturing Co. Ltd. accounts
Mutto Optronics Technology Co. Current
628842502.71 1-2 years 13.00%
Ltd. accounts
Suzhou Dongyue New Energy Current
591030226.35 Within 1 year 12.22%
Technology Co. Ltd. accounts
Suzhou Yongchuang
Current
Communication Technology Co. 109656305.94 Within 1 year 2.27%
accounts
Ltd.Suzhou Yongchuang
Current
Communication Technology Co. 392140582.58 1-2 years 8.10%
accounts
Ltd.Dongguan Dongshan Precision Current
180000000.00 Within 1 year 3.72%
Manufacturing Co. Ltd. accounts
Dongguan Dongshan Precision Current
304142051.89 1-2 years 6.29%
Manufacturing Co. Ltd. accounts
Total 3731298714.12 77.13%
3. Long-term equity investments
In RMB
Closing balance Opening balance
Item Allowance for Allowance for
Book balance Carrying value Book balance Carrying value
impairment loss impairment loss
Investments in 10315147573 10181457573 9671242453. 9537552453.
133690000.00133690000.00
subsidiaries .40 .40 40 40
Investments in
associates and 108246781.23 17507056.47 90739724.76 107812202.38 17507056.47 90305145.91
joint ventures
10423394354102721972989779054655.9627857599.
Total 151197056.47 151197056.47.63.167831
(1) Investments in subsidiaries
In RMB
Investee Opening Opening Changes in the current period Closing Closing
201DSBJ Annual Report 2025
balance balance of balance balance of
(carrying allowance Allowance (carrying allowance
value) for Additional Reduced for Others value) for
impairment investment investment impairment impairment
loss loss loss
Dongguan Dongshan
Precision 34200000 34200000
Manufacturing Co. 0.00 0.00
Ltd.MFLEX Shanghai 2023777.3 2023777.3
Co. Ltd. 0 0
Shenzhen Qindao
Dongchuang 10000000 10000000
Investment 0.00 0.00
Partnership (L.P.)
Suzhou RF Top
Electronic 37285808 37285808
Communication Co. 3.14 3.14
Ltd.Suzhou Chengjia
Precision 80109368. 80109368.Manufacturing Co. 24 24
Ltd.Suzhou Dongdai
1530000.01530000.0
Electronic
00
Technology Co. Ltd.Suzhou Dongke
Enterprise 15238909 15238909
Management Co. 6.00 6.00
Ltd.Suzhou Dongkui 12100000. 12100000.Lighting Co. Ltd. 00 00
Suzhou Jebson
Intelligent 255000.00 255000.00
Technology Co. Ltd.Suzhou Yongchuang
4515827145158271
Communication
0.630.63
Technology Co. Ltd.Hong Kong
Dongshan Precision 37445651 13369000 37445651 13369000
Union Opoelectronic 50.00 0.00 50.00 0.00
Co. Limited
Hong Kong
452677886439051210965830
Dongshan Holding
0.000.0000.00
Limited
Yancheng Dongshan
Precision 10936196 10936196
Manufacturing Co. 10.92 10.92
Ltd.Yancheng Dongshan
Business 3067267.2 3067267.2
Management Co. 0 0
Ltd.Yancheng Dongshan
2804014028040140
Communication
3.773.77
Technology Co. Ltd.Suzhou JDI 13826840 13826840
202DSBJ Annual Report 2025
Electronics Inc. 03.83 03.83
Suzhou Dongshan
20010000.20010000.
Industrial Investment
0000
Co. Ltd.Shanghai Dongxin
80000000.80000000.
New Energy
0000
Technology Co. Ltd.Yancheng
Dongchuang
4500000045000000
Precision
0.000.00
Manufacturing Co.Ltd.Suzhou Dongyue
5000000050000000
New Energy
0.000.00
Technology Co. Ltd.Multek China
71324.5271324.52
Limited
Mutto Optronics
824778.48824778.48
Technology Co. Ltd.MFLEX Suzhou Co. 7193259.6 7193259.6
Ltd. 0 0
Yancheng Mutto
Optronics 47549.64 47549.64
Technology Co. Ltd.MFLEX Yancheng 4175696.8 4175696.8
Co. Ltd. 9 9
Multek Industries 2425059.7 2425059.7
Limited 2 2
Dongwei Smart
14216.2614216.26
Suzhou Co. Ltd.Multek Zhuhai
Enterprise
927217.26927217.26
Management Co.Ltd.
9537552413369000643905121018145713369000
Total
53.400.000.00573.400.00
(2) Investments in associates and joint ventures
In RMB
Changes in the current period
Openi Invest Closin
Openi ng Adjustment Declar Closin g
ng balanc mentincom ed Allow g balanc
balanc e of toAdditi Reduc e or Other cash ance balanc e of
Investee e allowa otheronal ed loss change divide for e allowa
(carryi nce for compr Othersinvest invest under s in nds or impair (carryi nce for
ng impair ehensiment ment the equity profit ment ng impair
value) ment veequity distrib loss value) ment
loss incommetho ution loss
e
d
Associate
Suzhou Toprun 11784 11817
32656
Electric 413.3 069.9.54
Equipment Co. 9 3
203DSBJ Annual Report 2025
Ltd.Shenzhen Nanfang
1750717507
Blog Technology
056.4056.4
Development Co.
77
Ltd.Shanghai Fu Shan
Precision
Manufacturing
Co. Ltd.Suzhou LEGATE
11492-10247
Intelligent
208.41245171.8
Equipment Corp.
0036.519
Ltd.Suzhou Dongcan
-
Optoelectronics 3316 2693
62337
Technology Co. 472.49 102.45
0.04
Ltd.Jiangsu Nangao
Intelligent -
34422602
Equipment 83984
835.16994.36
Innovation Center 0.80
Co. Ltd.Jiaozuo Songyang
24392-22181
Photoelectric
091.72210612.2
Technology Co.
0479.455
Ltd.Suzhou Yongxin
3587741197
Jingshang Venture 5320
124.7773.8
Capital 649.11
78
Partnership (L.P.)
90305175079073917507
43457
Total 145.9 056.4 724.7 056.4
8.85
1767
4. Operating revenue and operating costs
In RMB
Amount of the current period Amount of the previous period
Item
Revenue Cost Revenue Cost
Primary business 4022260005.83 4006822960.37 4190338512.76 4025950010.51
Other businesses 614201978.48 29162663.69 560542168.15 45500518.40
Total 4636461984.31 4035985624.06 4750880680.91 4071450528.91
5. Investment income
In RMB
Item Amount of the current period Amount of the previous period
Income from long-term equity
248403200.00655000000.00
investments under cost method
Income from long-term equity
434578.855584848.30
investments under the equity method
Investment income from the disposal of
-64763689.49
long-term equity investments
204DSBJ Annual Report 2025
Investment income from the disposal of
320300.00
financial assets held for trading
Dividend income from other equity
instrument investments during the 1713379.59
holding period
Discount loss on accounts receivable
-10120691.74
financing
Bank wealth management product -2651138.83
Total 240750766.70 593170019.98
XX. Supplementary Information
1. Statement of non-recurring gain or loss for the current period
□ Applicable □ N/A
In RMB
Item Amount Remark
Gain or loss from disposal of non-current assets -384012866.89
Government grants recognized in profit or loss (excluding the government grants that
are closely related to the business of the Company conform to the applicable policies 331688417.02
of the country are provided in accordance with the established standards and
continuously affect the Company’s profit or loss)
Gain or loss on changes in fair value of financial assets and financial liabilities held
by non-financial entities and gain or loss on disposal of financial assets and financial 69600586.93
liabilities except for effective hedges held in the ordinary course of business
Other non-operating revenues and expenses -41631510.60
Investment income
arising from
business
Other gain or loss within the meaning of non-recurring gain or loss 470697770.08 combinations
involving entities
not under common
control
Less: Effect on income tax 23035787.38
Effect on minority interests (exclusive of tax) 3234970.24
Total 420071638.92 --
2. Return on equity and earnings per share
Earnings per share
Weighted average return
Profit for the reporting period
on net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to ordinary
6.89%0.790.79
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after 4.80% 0.55 0.55
deduction of non-recurring gain or loss
205
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