Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Guangdong Dongfang Precision Science & Technology Co. Ltd.Annual Report 2025
【Date of Disclosure】24 March 2026Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Message to Our Shareholders
Another year has passed marked by solid progress and tangible achievements. In 2025 industrial
transformation advanced relentlessly across the globe and new quality productive forces showed the way
forward for those with the courage to explore.The year marked the 30th anniversary of Dongfang Precision a significant milestone. Over three
decades we have weathered challenges and advanced with perseverance. In the year we stood at a pivotal
juncture bridging the previous and forthcoming 15th Five-Year Plan period. While maintaining our
foundation of sound operations we also took decisive action to initiate the most profound strategic focus and
self-transformation since our cross-border acquisition in 2014.First and foremost this is a testament to “stability”.Over the past year despite a complex external environment all employees of Dongfang Precision
upheld a long-term perspective ensuring strong resilience in our core business. In 2025 the Company
recorded operating revenue of RMB5229 million; and net profit attributable to owners of the parent
company reached RMB725 million representing a year-on-year increase of 44.88%. This growth was driven
not only by our refined cost management and efficient supply chain coordination but also by our deep-
rooted presence in global markets. From mature markets in Europe and the United States to emerging regions
such as Southeast Asia and Latin America Dongfang Precision’s intelligent equipment and services
continued to serve customers in over 100 countries and regions worldwide with enhanced efficiency.However the true theme of 2025 was “change”.This year we undertook a profound process of “subtraction” which in essence enabled a greater
“addition”.On 28 November 2025 we announced a strategic decision: to propose the sale of 100% equity in three
companies namely the Fosber Group Fosber Asia and Tiru?a Asia. This marked a significant asset
restructuring in the Company’s history and reflected our original aspiration in making strategic trade-offs.Drawing on decades of accumulated capabilities in high-end equipment manufacturing and industrial
integration we are firmly committed to shifting our strategic focus towards technological upgrading.
1. Advancing “In Depth” to Strengthen and Expand “Parsun Power”
The water powersports equipment business has long been Dongfang Precision’s “hidden champion”.From 2020 to 2025 Parsun Power achieved a compound annual growth rate of 24% in both operating
revenue and net profit. In 2025 with the commissioning of a new plant and the release of production
capacity Parsun Power entered a phase of accelerated growth. We are pleased to see that with the mass
production of gasoline outboard motors ranging from 115 to 300 horsepower Parsun Power has successfully
broken the long-standing monopoly of manufacturers from the United States and Japan making China the
third country globally to master the core technology of 300-horsepower gasoline outboard motors. In
addition Parsun Power became the first domestic outboard motor enterprise to obtain CNAS laboratoryaccreditation and has established a strong technological moat supported by a comprehensive “gasoline–diesel–electric” product portfolio and a national-level R&D platform. Meanwhile as a leading enterprise in
the domestic industry its products have obtained multiple international certifications its brand enjoys global
recognition and its sales network covers over 100 countries. Looking ahead we will take Parsun Power as
our core platform and continue to increase investment in frontier fields such as high-horsepower electric
1Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
outboard motors and unmanned vessels enabling Chinese intelligent manufacturing to expand its presence in
international waters and capture a broader market worth hundreds of billions.
2. Reaching “Higher” by Deepening our Presence in “Strategic Emerging Industries”
In 2025 Dongfang Precision made a significant mark in the landscape of emerging industries.In the manufacturing sector of strategic emerging industries we have taken a decade-long perspective to
build a well-structured presence. In 2025 we entered into a strategic cooperation agreement with Leju Robot
a leading domestic enterprise to carry out comprehensive collaboration in the large-scale manufacturing
skill training and scenario-based applications of humanoid robots. In September 2025 both parties jointly
established DongFang Primo Robotic (Guangdong) Co. Ltd. focusing on the R&D and production of
intelligent control systems for humanoid robots.Our clustered strategic investments in the “AI + robotics” field are centred on “building a full-industry-chain ecosystem for embodied intelligent robots and empowering the intelligent upgrading of traditionalindustries”. We have focused on developing a model of “strategic investment + industrial collaboration”
integrating Dongfang Precision’s resource endowment and accumulated capabilities in equipment
manufacturing with the industry-leading technologies products and application experience of target
enterprises in robotics and AI large models thereby achieving efficient synergy and fostering collaboration in
manufacturing application scenarios and market development to facilitate the co-creation and win-windevelopment of industrial chain value. From industrial mobile robots to multimodal large-model “intelligentbrains” and from strategic cooperation to joint ventures we have gradually established a systematic
presence in the “AI + robotics” landscape.With long journeys ahead we press on without pause; having reached the midway point we must
strive even harder.Over the past 14 years we have consistently believed that creating long-term value is far more
important than pursuing short-term gains. The strategic transformation in 2025 represents our latest
commitment to this philosophy. We have fully seized the “golden window of opportunity” focusing on key
national strategic sectors and creating a new hallmark of high-quality development.We extend our sincere gratitude to all shareholders for your trust and support during this period of
transformation. The future of Dongfang Precision will be both “lighter” and “heavier”—more focused on
core businesses while bearing greater responsibilities. We are confident in the “golden era” of China’s high-
end equipment manufacturing industry and will take this strategic transformation as an opportunity to
deliver a clearer and more sustainable second growth curve for our investors.With longstanding and new partners alike we move forward together. Let us look forward to Dongfang
Precision forging ahead on new tracks in 2026 and beyond advancing steadily and achieving long-term
success.Chairman of the Board: Tang Zhuolin
2Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors and senior management
of Guangdong Dongfang Precision Science & Technology Co. Ltd. (hereinafter referred to as
the “Company”) hereby guarantee that the contents of this Report are true accurate and
complete and free of any misrepresentations misleading statements or material omissions
and collectively and individually accept legal responsibility for such contents.Tang Zhuolin the Company’s legal representative Shao Yongfeng the Company’s
Financial Controller and Chen Lin the Company’s Accounting Supervisor: hereby guarantee
that the financial statements carried in this Report are truthful accurate and complete.All directors of the Company attended in person the board meeting for the approval of
this Report.The future development strategies business plans and other forward-looking statements
mentioned in this Report shall be deemed as uncertain plans instead of promises to investors.Therefore investors are reminded to exercise caution when making investment decisions.For possible risks with respect to the Company please refer to “(III) Possible Risks andCountermeasures” in “XI Prospects” of “Part III Management Discussion and Analysis”
herein. And investors are kindly advised to read through the aforesaid contents.The Company planned not to distribute cash dividends give away bonus shares or
capitalize from public reserve.This Report has been prepared in Chinese and translated into English. Should there be
any discrepancies or misunderstandings between the two versions the Chinese version shall
prevail.
3Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Table of Contents
Part I Important Notes Table of Contents and Defin... 3
Part II Corporate Information and Key Financial In... 8
Part III Management Discussion and Analysis......... 13
Part IV Corporate GovernanceEnvironmental and Soci.. 76
Part V Significant Events...........................105
Part VI Share Changes and Shareholder Information...142
Part VII Corporate Bonds........................... 151
Part VIII Corporate Financial Statement.............152
4Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Documents Available for Reference
1. The financial statements signed and sealed by the Company’s legal representative Chief Financial Officer
and the person-in-charge of the financial organ.
2. The original of the Auditor’s Report sealed by the CPA firm as well as signed and sealed by the certified
public accounts.
3. All the originals of the Company’s announcements and documents that were disclosed to the public during
the Reporting Period on the media designated by the CSRC for information disclosure.
4. The 2025 Annual Report carrying the signature of the legal representative.
5. The documents above are lodged in the Securities Department of the Company 18A China Merchants
Plaza 1166 Wanghai Road Shekou Shuiwan Community Zhaoshang Street Nanshan District Shenzhen City
Guangdong Province China.
5Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Definitions
Term Definition
Guangdong Dongfang Precision Science & Technology Co. Ltd. and its
Dongfang Precision or the “Company”
consolidated subsidiaries except where the context otherwise requires
The corrugated box packaging machinery division of Guangdong Dongfang
Dongfang Precision (China)
Precision Science & Technology Co. Ltd.Fosber Italy Fosber S.p.A.Fosber Asia Guangdong Fosber Intelligent Equipment Co. Ltd.Fosber America Fosber America Inc.Fosber Tianjin Fosber Machinery (Tianjin) Co. Ltd.The business group including subsidiaries Fosber Italy Fosber America Qcorr
Fosber Group
Tiru?a Group etc.Tiru?a Group Tiru?a Slu
Tiru?a America Tiru?a America Inc.Tiru?a Asia Tiru?a (Guangdong) Intelligent Equipment Manufacturing Co. Ltd
QCorr QuantumCorrugated S.r.l.Dongfang Precision (Europe)/EDF EDF Europe S.r.l.Dongfang Precision (Netherland) Dong Fang Precision (Netherland) Cooperatief U.A.Dongfang Precision (HK) Dong Fang Precision (HK) Limited
Wonder Digital Shenzhen Wonder Digital Technology Co. Ltd.Parsun Power Suzhou Parsun Power Machine Co. Ltd.Shunyi Investment Suzhou Shunyi Investment Co. Ltd.Jaten Robot Guangdong Jaten Robot & Automation Co. Ltd.Yineng Investment Hainan Yineng Investment Co. Ltd.Yineng International Dongfang Yineng International Holding Co. Ltd.Dongfang Digicom Dongfang Digicom Technology Co. Ltd.Dongfang Digicom (Guangdong) Dongfang Digicom Technology (Guangdong) Co. Ltd.DF Primo Robotic DongFang Primo Robotic (Guangdong) Co. Ltd
Leju Robotics Leju（Shenzhen）Robotics Co.Ltd.Corrugated cardboard is a multi-layer paper-bonding object composed of at least
one sandwich layer of wavy medium (commonly known as "corrugated paper"
Corrugated cardboard
"corrugated medium paper" "corrugated paper medium" and "corrugated base
paper") and one layer of cardboard (also known as "liner board").Corrugated box is a rigid paper container made of corrugated boards through die
Corrugated box cutting indenting nailing or gluing. Corrugated box is one of the most widely
used packaging containers in modern business and trade.Corrugated box printing and packaging production Corrugated box printing and packaging production line equipment include
line equipment corrugated box printing and packaging line and stand-alone products that
6Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
integrates pre-feeding printing grooving die cutting forming and packaging
functions in whole or in part which is highly functionally integrated highly
automated and highly technical can save the capital and manpower investment
reduce workers' workload and improve the production efficiency of box
manufacturers and requires equipment manufacturers to be highly competent in
design technological innovation assembly and finishing of parts.Corrugated cardboard production lines are assembly lines comprising
corrugating gluing agglutinating bundle breaking dimension board cutting and
output processes which are used to produce and process corrugated boards.A corrugated cardboard production line has two independent process sections as
the wet section and the dry section. The wet section composed of the base paper
stand auto splicer preheat pre-regulator single-face corrugator feeding bridge
Corrugated cardboard production lines glue machine and double facer is used to make corrugated based paper into
three-layer five-layer and seven-layer corrugated boards of different corrugated
combinations. The dry section composed of the rotary shear slitter indenter
cut-off knife and stacker is used to slit indent cut off and stack corrugated
boards as ordered.Corrugated cardboard production lines are key production equipment for
corrugated board and box manufacturers.Outboard motors are a kind of detachable power units that are mounted on the
Outboard motors
stern plate of a boat to drive the boat to sail.General utility small gasoline motors are a kind of thermo-dynamic machinery
of 20kW power or less with a wide range of applicability. It is characterized by
small size light weight and easy operation and is usually used as a power
General utility small gasoline motors engine for a variety of terminal products. By the structure of engine and
principle of work general utility small gasoline motors can be divided into two-
stroke general utility small gasoline motors and four-stroke general utility small
gasoline motors.CSRC China Securities Regulatory Commission
SZSE or the “Stock Exchange” Shenzhen Stock Exchange
Expressed in the Chinese currency of Renminbi expressed in tens of thousands
RMB yuan RMB’0000
of Renminbi
The “Reporting Period” or “Current Period” The period from 1 January 2025 to 31 December 2025
7Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Dongfang Precision Stock code 002611
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 广东东方精工科技股份有限公司
Short-name in Chinese 东方精工
Company name in English Guangdong Dongfang Precision Science & Technology Co. Ltd
Short-name in English Dongfang Precision
Legal representative Tang Zhuolin
(Office Building Plant A Plant B) 2 Qiangshi Road Shishan Town Nanhai District Foshan City
Registered address
Guangdong Province China
Previous registered address N/A
Zip code 528225
18A China Merchants Plaza 1166 Wanghai Road Shekou Shuiwan Community Zhaoshang
Office address
Street Nanshan District Shenzhen City Guangdong Province China
Zip code 518000
Company website http://www.df-global.cn/
Email address ir@vmtdf.com
II Contact Information
Board Secretary Securities Representative
Name Feng Jia Zhu Hongyu
18A China Merchants Plaza 1166 18A China Merchants Plaza 1166
Wanghai Road Shekou Shuiwan Wanghai Road Shekou Shuiwan
Office address Community Zhaoshang Street Nanshan Community Zhaoshang Street Nanshan
District Shenzhen City Guangdong District Shenzhen City Guangdong
Province China Province China
Tel. 0755-36889712 0755-36889712
Fax 0755-36889822 0755-36889822
Email address ir@vmtdf.com ir@vmtdf.com
8Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for
China Securities Journal Shanghai Securities News and Securities Times
information disclosure
Website designated by the CSRC for publication of
http://www.cninfo.com.cn
this Report
Securities Department of the Company 18A China Merchants Plaza 1166
Place where this Report is lodged Wanghai Road Shekou Shuiwan Community Zhaoshang Street Nanshan
District Shenzhen City Guangdong Province China
IV Change to Company Registered Information
Unified social credit code 914406002318313119
Change to the principal activities of the
Unchanged
Company since its listing (if any)
Every change of controlling shareholder
Unchanged
since incorporation (if any)
V Other Information
The independent auditor hired by the Company:
Name of independent auditor Ernst & Young Hua Ming LLP
18/F Ernst & Young Tower 13 Pearl River East Road Tianhe District Guangzhou City China
Office address (the Headquarters: Rooms 01-12 17/F Ernst & Young Tower Oriental Plaza 1 East Chang An
Avenue Dongcheng District Beijing China)
Accountants writing signatures Fu Jun and Lin Longqian
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes √ No
2025-over-2024
202520242023
change (%)
Operating revenue (RMB) 5228536554.75 4777855602.69 9.43% 4745737321.83
Net profit attributable to the listed 725259219.97 500578449.68 44.88% 433240237.44
9Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 518913600.40 526741293.29 -1.49% 364739306.60
exceptional gains and losses (RMB)
Net cash generated from/used in
874214350.60702555380.2224.43%487180738.66
operating activities (RMB)
Basic earnings per share (RMB/share) 0.61 0.43 41.86% 0.36
Diluted earnings per share
0.600.4339.53%0.36
(RMB/share)
Weighted average return on equity (%) 13.39% 10.55% 2.84% 10.14%
Change of 31
December 2025 over
31 December 2025 31 December 2024 31 December 2023
31 December 2024
(%)
Total assets (RMB) 8723974411.66 7528576996.98 15.88% 7538222570.02
Equity attributable to the listed
5773817881.004977379483.2916.00%4511690693.97
company’s shareholders (RMB)
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional gains and
losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was uncertainty
about the Company’s ability to continue as a going concern.□ Yes √ No
During the reporting period the lowest of the Gross Profit Net Profit and Net profit before exceptional gains and losses (RMB) was
negative.□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□Applicable √ Not applicable
No difference for the Reporting Period.
10Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 988738120.45 1170218737.43 1230355511.66 1839224185.21
Net profit attributable to the listed
275689175.48121751814.38112951930.77214866299.34
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 129885861.19 127000464.61 91920596.09 170106678.51
exceptional gains and losses
Net cash generated from/used in
148518430.29206766041.06150981191.22367948688.03
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially from what have been
disclosed in the Company’s quarterly or interim reports.□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2025 2024 2023 Note
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance -1629657.69 5493843.53 694491.43
write-offs)
Government grants through profit or loss
(exclusive of government grants given in the
Company’s ordinary course of business at 13298788.58 14576461.93 15747293.82
fixed quotas or amounts as per the
government’s uniform standards)
Gain or loss on fair-value changes on held-
for-trading and derivative financial assets
and liabilities & income from disposal of
held-for-trading and derivative financial
256775110.29-48502462.1760354587.25
assets and liabilities and other debt
investments (exclusive of the effective
portion of hedges that arise in the
Company’s ordinary course of business)
Reversal of provision for impairment of
receivables individually tested for 7396.90 516000.00
impairment
Non-operating income and expenses other 11693581.35 5438396.45 -10155229.58
11Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
than the above
Other profit/loss items that meet the
-33683634.10
definition of non-recurring gains and losses.Less: Income tax effects 38453892.24 2057293.09 -3743887.17
Non-controlling interests effects (net
1654676.621119187.162400099.25
of tax)
Total 206345619.57 -26162843.61 68500930.84 --
Details of other profit and loss items that meet the definition of non-recurring profit or loss.□ Applicable √ Not applicable
No such cases in the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
No such cases in the Reporting Period
12Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part III Management Discussion and Analysis
I Industry Overview in the Reporting Period
(I) Industries in which the Company principally operates
According to the Classification of Strategic Emerging Industries (2018) and the Industrial Classification for
National Economic Activities (GB/T 4754-2017) the industries in which the Company principally operates are
shown below:
The Company’s Principal Business Divisions and Their Industries
Strategic Principal
emerging Industry business Primary products and their applications
industry division
1. Corrugated cardboard production lines: The
corrugated cardboard production lines are used for the
production of corrugated cardboards of different
specifications are the core machinery for corrugated
packaging production and are widely used by medium
and large enterprises (cardboard plants) that produce
Smart
corrugated cardboards.corrugated
packaging 2. Corrugated box printing and packaging production
equipment lines : The corrugated box printing and packaging
production line equipment is used to produce and
Intelligent Specialised
process corrugated cardboards into corrugated boxes of
manufacturing equipment different specifications. The corrugated box printing
equipment manufacturing and packaging production line equipment is widely
used by various enterprises (box plants) that produce
corrugated boxes in the corrugated packaging industry.Digital printers generate graphic images from digital
information. With the help of print head ink digital
Digital printing enables the formation of the image directly on
the printing stocks and can indirectly transmit the
printers
colour and auxiliary substances to the print stocks to
form the presswork. Digital printing can meet the
requirement for industrial production.Industrial Industrial Specific Industrial Internet Platformthe intelligent
Internet and Software and Internet production management system matched with the
supporting information services industry corrugated box printing and packaging production lines
services solutions and equipment after-sales service management system
13Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Strategic Principal
emerging Industry business Primary products and their applications
industry division
Railway shipping Outboard motors are a kind of detachable power units
Manufacturing of aviation and other Water that are mounted on the stern plate of a boat to drive the
ship auxiliary transport equipment powersports boat to sail and can be applied to boats shorter than
24m. They are widely used in water recreation fishing
equipment manufacturing equipment
water traffic emergency rescue shore landing and
industries
maritime patrol.(II) Industry overview
1. The Industries to which the Company's Intelligent Packaging Equipment Business Segment Belongs
1.1 Demand side—customers
The intelligent packaging equipment division of the Company primarily serves B-end customers such as
corrugated cardboard and corrugated box manufacturers. The Company provides various single machine and
complete production line products for cardboard and box production.End demand for corrugated packaging is growing:. Corrugated packaging products are used in a vast
number of fields including food and beverage household chemicals electronic products and e-commerce
express delivery and are inelastically demanded by consumers. Electronic products food beverage and express
delivery take up 26% 20% 21% and 13% respectively of the downstream application market of paper
packaging.China’s express market and the relevant fields such as e-commerce and logistics show an increasing
demand for corrugated box and board packaging which will drive the expansion of the capacity of corrugated
packaging enterprises and thus increase the demand for corrugated packaging machinery.Digital and intelligent upgrading brings new development opportunities. The “strategy of robotassembling line” and “smart factory” are increasingly recognized by the industry. Additionally leading
packaging enterprises including Xiamen Hexing Packaging Printing Co. Ltd. (HXPP) MYS Group Co. Ltd.(MYS) Shenzhen YUTO Packaging Technology Co. Ltd. and Shenzhen Jinjia Group Co. Ltd. have
successively entered markets such as intelligent manufacturing one after another. The capacity upgrade in the
paper packaging and printing industry continues to deepen. Against the backdrop of intelligent manufacturing
leading enterprises in the corrugated paper packaging equipment industry are also expected to embrace new
opportunities for development.Overseas demand is growing steadily: In recent years when environmental pollution becomes more and
more serious growing environmental awareness has led to “plastic bans and restrictions” across the world
providing a major boost to paper as an alternative to plastic. The global green packaging market is projected to
grow from USD262.27 billion in 2023 to USD381.98 billion in 2028 with a compound annual growth rate of
7.81% during the forecast period (2023-2028).
The corrugated cardboard produced by corrugated cardboard production lines is used to make various
corrugated boxes corrugated cartons and other corrugated packaging materials which are rigid consumer
14Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
products in European and American countries. The philosophy of “sustainability” is gaining ground in the
European and US consumer goods packaging markets. With the growing trend of "replacing plastics with paper"
in the packaging industry demand for corrugated packaging materials in the European and US consumer goods
markets continues to grow steadily helping to drive demand for corrugated packaging production line equipment.The rapid development of digital printing brings more development opportunities for the
industry.According to the latest report by Smithers Pira during the period from 2024 to 2029 the compound
annual growth rate of digital inkjet printing in the packaging field will be approximately 15%. It is estimated that
the global market size of digital inkjet printing in the packaging field will reach 18.08 billion US dollars by 2029.In the Chinese market with the continuous growth of demand for "small-batch + multi-variety + personalized +
customized" packaging in the packaging field digital inkjet printing is rapidly penetrating the packaging sector.According to the forecast of Qianzhan Research Institute the compound annual growth rate of digital inkjet
printing in China's packaging field will be about 18.0% from 2024 to 2029.
1.2 Supply side——the Company’s presence in the industry
In the field of intelligent packaging equipment Dongfang Precision has a complete layout and has formed a
multi-segment business system covering corrugated cardboard production lines core components of corrugated
board production lines carton printing and packaging lines as well as digital printing equipment. Relying on its
comprehensive industrial chain layout and strong technological strength the company with its wide range of
products and advanced technologies provides global customers with one-stop and all-round intelligent packaging
equipment solutions.Corrugated cardboard production lines: Major manufacturers of corrugated cardboard production lines
around the world include Fosber Group BHS Marquip and J.S. Machine. The Fosber Group along with its
major competitor BHS from Germany ranks in the first tier. Fosber Group holds 30% of the global middle- and
high-end corrugated cardboard production line market and more than 50% of the North American market.Corrugated & pressure rollers key components of corrugated cardboard production lines: The subsidiary
Tiru?a Group has more than 40 years of experience in the corrugated and pressure roller segment and is renowned
in Europe as a world-leading specialist in this segment.Corrugated box printing and packaging production line equipment: Major manufacturers in this field include
Dongfang Precision Bobst Gopfert Ward Ding Long (Shanghai) and Guangzhou Keshenglong. With an
advantage in global resource coordination leading design concept excellent overall R&D strength and a product
system featuring complete categories and rich specifications Dongfang Precision is an industry leader in China
and is competitive with the global industry leader Bobst from Switzerland.Digital printers: Major manufacturers include HP EFI Koenig & Bauer Durst Wonder Digital Hanhua
Gongye and Atexco among others. Wonder Digital a majority-owned subsidiary of Dongfang Precision is a
leader in the domestic digital printer industry and has been committed to extending digital printing technology to
such fields as paper packaging (colour printing & pre-printing) advertising home furnishing building materials
and label printing.Dongfang Precision leads the world in terms of its comprehensive strength in smart corrugated packagingequipment business and can provide downstream customers such as cardboard plants and box plants with “one-
15Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025stop” machinery and service support that covers each production process including corrugated cardboard
production corrugated box production and pre-printing and post-printing production processes and different
technology roadmaps including flexographic printing and digital printing.The value of the global corrugated packaging equipment market is estimated to be about RMB30-40
billion. In terms of operating revenue Dongfang Precision accounts for approximately 15% of the global
corrugated packaging equipment market ranking first among domestic enterprises of the same type and
second in the global market.
2. The industry to which the company's industrial Internet industry solutions business belongs
Policy side: .For eight consecutive years from 2018 to 2025 "Industrial Internet" has appeared in the
government work report every year. The government work report in 2025 put forward the idea of "vigorously
promoting new industrialization and accelerating the innovative development of the Industrial Internet". The "14th
Five-Year Plan for the In-depth Integration of Informatization and Industrialization Development" proposed that
by 2025 informatization and industrialization would achieve integrated development on a broader scale at a
deeper level and at a higher level. Under the guidance and support of a series of policies the Industrial Internet
and smart factories have always been important directions for the transformation and upgrading of the
manufacturing industry.Market side: For the current manufacturing industry of China digital transformation is no longer an “option”
but a “compulsory course” that is critical to its survival and long-term development. According to the Bluebook
on the Digital Transformation of Enterprises--Empowering the Low-carbon and Green Transformation of the Real
Economy with New IT released by the China Academy of Information and Communications Technology after
relevant manufacturing enterprises complete digital transformation on average their production efficiency will be
boosted their operating expenses will be lowered and their energy utilisation rate will be improved. Concurrently
with the rapid development and continuous iteration of the new-generation information technology the cost of
digital transformation of enterprises is gradually decreasing.Supply side:The key technologies and industries that the industrial Internet involves are extensive and
complex and can hardly be fully covered by enterprises. Thus developing the industrial Internet by relying on
industrial manufacturing enterprises becomes a typical development path of industrial Internet enterprises such as
Root Cloud Midea Cloud. In the packaging field major manufacturers that provide industrial Internet-relatedproducts and solutions services include Yunyin Dongfang Digicom and Shanghai Wantit. With the vision “tobecome a world-leading provider of industrial Internet industry solutions” Dongfang Digicom is engaged in
building industrial Internet platforms for industries using new-generation information technologies such as the
IoT cloud computing big data and artificial intelligence to facilitate digital and intelligent upgrading.
3. The Industries to which the company's water power equipment segment belongs
3.1 Demand side——customers
The company's marine power equipment segment operates through its controlled subsidiary Parsun Power
whose primary business focuses on the water sports sector with its main products being outboard motors—core
power equipment for small and medium-sized vessels. By expanding its product line to include trolling motors
and other marine power equipment it is evolving into a comprehensive provider of marine power solutions for
16Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
vessels.Outboard motors are the key auxiliary equipment for small- and medium-sized ships and are characterized by
their compact structures light weights convenient installation and maintenance easy operations and low noise.The downstream of the outboard motor industry involves the shipbuilding industry primarily applied in areas such
as yachts sailboats and other vessels encompassing applications including leisure and sports commercial
operations and governmental maritime administration.Applications of Parsun Power’s Outboard Motors
Field Scenario Example
Recreational
Recreational fishing sailing and
water sports
Fishing water
traffic and
Commercial
waterway
maintenance
17Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Emergency rescue
and maritime patrol
Governmental Beach landing and
water
reconnaissance
Global Market: According to a report by the international market research agency GMI the global market
sales for outboard motors are expected to reach USD15975 million by 2030 with a compound annual growth rate
(CAGR) of 5.35% from 2023 to 2030.
Figure: Global Outboard Motor Sales Volume and Market Size 2023–2030 (in ten thousands of units in hundreds of millions of US dollars)
Units Dollars
By Application Field: The recreational boating sector is the largest downstream application market for
outboard motors. By 2030 it is expected that the market share of outboard motors used in water-based leisure
sports will account for 73.22% globally. Yachts are one of the main downstream products equipped with outboard
motors. In recent years the global yacht industry has shown a trend of expanding scale. According to a report by
the China Association of the National Shipbuilding Industry the global leisure boat market size is expected to
grow from USD16.4 billion in 2021 to USD23.6 billion in 2027 with a CAGR of approximately 6.20%.Benefiting from the rapid growth of the downstream yacht market the global outboard motor market for water
leisure sports is expected to grow steadily.By Power Size: The global outboard motor market exhibits a distinct horsepower segmentation pattern.Lowhorsepower outboard motors are mainly used in scenarios such as recreational fishing small yachts and
18Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
short-distance water transportation.Med-to-high horsepower outboard motors carry higher unit prices and account
for a large share of the overall market scale. They are primarily applied in high-performance yachts commercial
operations and governmental and maritime sectors. The market share of mid-to-high horsepower outboard motors
accounts for more than three-quarters of the total market. In 2023 the mid-to-high power outboard motor market
share in the global outboard motor market was 79.72%. North America and Europe are the main markets for mid-
to-high power outboard motors. From 2023 to 2030 the compound annual growth rate (CAGR) of the mid-to-high
power outboard motor market in the Asia-Pacific region is expected to reach 8.97%.Figure: Market Size and Forecast of Outboard Motors by HP 2023–2030 (in hundreds of millions of US dollars)
Small HP mid-to-high HP
By Power Type: Gasoline outboard motors are the mainstream model in the global outboard motor
consumption market. By 2030 it is expected that the market share of gasoline diesel and electric outboard
motors globally will be 80.21% 11.49% and 8.30% respectively. Diesel engines have certain market space in
specific fields. Electric outboard motors are primarily used for low horsepower with a higher price but features
such as greater environmental friendliness and easier maintenance. With increasingly stringent environmental
regulations in various countries and continuous advancements in battery technology the application of electric
outboard motors is becoming more widespread.Figure: Market Size and Forecast of Outboard Motors by Fuel Type 2023–2030 (in hundreds of millions of US dollars)
19Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Gasoline Electric
Chinese Market: By 2030 the market size of outboard motors in China is expected to reach USD588 million
with a compound annual growth rate (CAGR) of 9.79% from 2022 to 2030 significantly higher than the global
CAGR. Benefiting from the rapid growth of China’s economy and changes in residents’recreational habits China
has become one of the fastest-growing countries in the global outboard motor market.In recent years considering the development of China’s water tourism and recreational industry and the
emphasis of the government on maritime rights the Chinese government agencies at all levels have granted
vigorous policy support to ship-related industries. For example the National Development and Reform
Commission has included high-performance ships such as superyachts luxury cruise ships marine surveillance
vessels and small-waterplane-area twin hulls among items for encouragement. The Ministry of Industry and
Information Technology has proposed developing brand products such as luxury superyachts sightseeing boats
and official boats. The State Council has also proposed vigorously developing marine tourism manufacturing
localised tourism equipment such as cruises and cruise yachts and vigorously developing cruise yacht tourism.China’s yacht industry will usher in rapid development.Jointly issued by the Ministry of Industry and Information Technology the National Development and
Reform Commission the Ministry of Finance the Ministry of Ecology and Environment and the Ministry of
Transport the "Action Plan for the Green Development of the Shipbuilding Industry (2024—2030)"
states:"Actively and steadily promote the research and development and demonstration application of battery-
powered ship types that meet the necessary conditions; actively and steadily expand the scope of application of
traction batteries in ships." The "Action Plan for Promoting the High-Quality Development of the Marine
Economy in Guangdong Province (2025 — 2027)" points out:"Strengthen the research development and
manufacturing of new types of special ships such as new energy ships intelligent ships and advanced cruise ships
and ferries; accelerate the research and development of unmanned ship and boat technologies." And the "Action
Plan for the Development of the Electric Ship Industry in Fujian Province (2026—2028)" proposes:"Vigorously
promote the application of electric ships in inland rivers lakes and other water areas; accelerate the mass
construction of electric cruise ships and electric cargo ships; support the construction and commissioning of
20Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
coastal electric sightseeing ships ferries and yachts; promote the electrified upgrading and renewal of official
ships used by departments such as transportation water conservancy cultural tourism marine fisheries
environmental protection and natural resources."
Domestic substitution has become the mainstream trend in the development of the domestic outboard motor
industry. According to China’s customs import and export data the import value of outboard motors into China
reached RMB1283 million in 2023. In the public service and military fields China’s governmental outboard
motors in the mid-to-high power range primarily use overseas brands. Against the backdrop of the national policy
encouraging domestic equipment to replace imports with the rise of domestic outboard motor companies China
is expected to enter a new stage of prosperous development for the rise of domestic outboard motor companies.Leading domestic outboard motor companies will benefit from both the industry’s rapid growth and domestic
substitution.The electric trolling motor (also known as the “marine electric propeller” or “electronic anchor”) is an
auxiliary power device installed on fishing ships. Its primary function is to achieve ship positioning and stability.Through GPS/Beidou satellite positioning combined with power compensation technology a ship can remain in
the predetermined location without the need for traditional anchoring. Even in the face of wind waves and
currents the motor can automatically adjust the thrust direction to maintain the ship’s orientation. The electric
trolling motor is mainly used in recreational fishing and competitive fishing events and can also serve as an
auxiliary electric propulsion device for position holding or course adjustment.According to the Fact.MR report the global market size for electric trolling motors is expected to grow from
approximately USD583 million in 2023 to around USD851 million by 2034. Among them bow-mounted models
will account for over 60% of the total electric trolling motor market. In a global context North America and
Europe are currently the main markets for electric trolling motors with regions such as East Asia and Southeast
Asia developing at a faster pace. Domestically the use of electric trolling motors is concentrated in areas where
recreational fishing culture is popular such as coastal provinces in China and locations where fishing enthusiasts
gather.The Chinese electric trolling motor market is in its growth phase. Due to the continuous increase in the
number of participants in water-based recreational sports greater product awareness and more affordable pricing.electric trolling motors are gradually penetrating from the professional sea fishing tackle market into the broader
mass-market water recreation sector. With ongoing trends like technological innovations (such as multi-mode
satellite navigation high-precision positioning control systems energy system optimization brought by motor and
battery technology advancements and the introduction of AI technology) and domestic substitution the Chinese
electric trolling motor market has substantial potential for development.
3.2 Supply side——the Company’s presence in the industry
The major participants in the global outboard motor market are Japanese and American brands including
Yamaha and Suzuki from Japan and Mercury from the United States. Compared to international competitors
Parsun Power relying on its product performance that is close to the competitors’ and its clear price advantage
competes globally with American and Japanese manufacturers by offering high cost-performance products.Parsun Power a holding subsidiary is a leading company in the domestic outboard motor industry. The
21Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
company is a national “Little Giant” enterprise specializing in innovation a national high-tech enterprise the
Jiangsu Province Outboard Motor Engineering Technology Research Center a recognized enterprise technology
center in Jiangsu Province a leading enterprise in the Chinese internal combustion engine industry and a member
unit of the Small Gasoline Engine Branch of the China Internal Combustion Engine Industry Association. At the
same time its outboard motor products have also received various honors including the National Torch Program
Industrialization Demonstration Project Certificate China Machinery Industry Innovative Products Jiangsu
Province Famous Brand Products and Suzhou City Famous Brand Products.In the outboard motor sector: Parsun Power has maintained a leading position in the domestic industry in
terms of comprehensive R&D and innovation capacities for many years. In 2021 and 2023 Parsun Power
successfully mass-produced 115-horsepower and 130-horsepower gasoline outboard motors respectively. In 2024
Parsun Power released its first domestically produced 300-horsepower gasoline outboard motor. In the first half of
2025 Parsun Power successfully achieved mass production and delivery of the 300-horsepower gasoline outboard
motor becoming the first company in China to mass-produce this model. This makes China the third country in
the world after the United States and Japan capable of successfully mass-producing a 300-horsepower gasoline
outboard motor. The core technology of the 300-horsepower gasoline outboard motor is independently controlled
with production manufacturing and supply chain localization marking a milestone in China’s autonomous high-
end equipment manufacturing in the outboard motor sector. It successfully breaks the monopoly of U.S. and
Japanese manufacturers in the high-horsepower and high-power segment of outboard motors signaling China’s
leap from a “follower” to a “competitor” in the field of high-end high-horsepower outboard motors. It also
announces that domestic outboard motors will fully enter the global high-end mainstream market to compete on
the same stage with international brands worldwide.In March 2025 Parsun Power released its first electric trolling motor product at the 28th China Shanghai
International Boat Show & Shanghai International Workboat Show 2025 (“CIBS2025”). The development of this
product follows the “high-end positioning positive R&D” philosophy having undergone over 40 rounds of shape
optimization 70 structural adjustments more than 100 software version iterations and nearly a thousand water
tests. It fully demonstrates Parsun Power’s years of accumulated technical expertise. Parsun Power will use the
launch of its first electric trolling motor product as a starting point to continuously expand its comprehensive
layout in the water powersports equipment field and create a new performance growth curve.II Principal operations of the Company in the Reporting Period
With “intelligent equipment manufacturing” as its primary strategic focus Dongfang Precision concentrateson the manufacturing of high-end intelligent equipment. Its principal operations include “intelligent packagingequipment” and “water powersports equipment”. The “intelligent packaging equipment business” consists of
smart corrugated packaging equipment digital printers and industrial Internet industry solutions.Business Divisions and Entities of Dongfang Precision
22Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
(I) Intelligent Packaging Equipment Business Division
The “intelligent packaging equipment business” consists of smart corrugated packaging equipment digital
printers and industrial Internet industry solutions covering the core links in the production and processing value
chain of corrugated paper packaging.A. Smart corrugated packaging equipment business
Dongfang Precision’s smart packaging equipment segment includes intelligent corrugated packaging
equipment digital printing equipment and industrial Internet industry solutions covering the most critical links in
the corrugated packaging production and processing value chain.
(1) Corrugated cardboard production lines (including corrugated rollers)
The corrugated cardboard production lines business of the company is engaged in corrugated cardboard
production lines (under the brands of Fosber and Quantum) as well as corrugated and pressure rollers (under the
Tiru?a brand) which are key components of corrugated cardboard production lines. With the overseas Fosber
Group (under it Fosber Italy Fosber America QCorr and Tiru?a Group) as well as the domestic Fosber Asia and
Tiru?a Asia Dongfang Precision is able to provide products and services for customers around the world.Overseas Fosber Group primarily serves large- and medium-sized manufacturers in Europe North America
Latin America and other countries and regions. All the business units and profit centres of Fosber Group have
their business assets and staff located in Europe and North America. They adopt a local management and
operation model and design develop and manufacture their products locally. Fosber Group has established stable
partnerships with major manufacturers in the corrugated packaging industry in Europe and the US.Domesticallysupported by China’s most complete supply chain across all industrial sectors globally as
well as the competitive edge of manufacturing Fosber Asia’s corrugated lines have been designed and adapted to
the needs of customers in the Chinese market. Over 90% of the components of the corrugated lines are
manufactured domestically. These products which are high-tech high-performance and cost-efficient for they are
made in China are provided for corrugated packaging manufacturers in China Asia (East Asia Southeast Asia
South Asia) Africa Russia and Latin America.
23Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
In 2025 Tiru?a Asia achieved localized mass production and delivery of Tiru?a-brand corrugating rolls in
China.While supporting Fosber-brand corrugator lines and supplying corrugating rolls and pressure rolls it will
also rely on the advantages of domestic manufacturing to expand the market for Tiru?a-brand corrugating rolls
and pressure rolls in China and Asia so as to meet the supporting requirements of multi-brand corrugated board
production lines for relevant products.
(2) Corrugated box printing and packaging production lines
Domestically Dongfang Precision (China) is responsible for business operations associated with corrugated
box printing and packaging equipment while in the overseas market it is Dongfang Precision (Europe).The product matrix of Dongfang Precision (China) includes corrugated converting line and single machine
products that are of dozens of specifications and different market positioning featuring fixed type/open-close type
top printing/bottom printing and other technologies. These products mainly include “Dongfang Star” Quickset
Top Printing FFG and Top Printing Open-Close Type FFG Inline as well as “Asia Star” Bottom Printing Die
Cutter Stripper Vacuum Stacker Converting Line Bottom Printing Open-Close Type FFG Inline and Bottom
Printing Open-Closed Type/FFG & Stitcher. Dongfang Precision (China) is a professional manufacturer with an
early start and a strong foundation among domestic fellow companies enjoying high brand awareness and
customer recognition in the industry. The products are highly popular not only in the domestic market but also
exported to over 60 countries and regions worldwide.Dongfang Precision (Europe) specializes in high-end corrugated converting line products. Its primary
products include “FD” Quickset Top Printing FFG “HGL” Quickset Bottom Printing FFG and Quickset Bottom
Printing/Die Cutter Stripper Vacuum Line. These products are designed with noncrush feeder design full servo
control and fully automatic control features making them more suitable for high-definition printing.B. Digital Printer business
The business is primarily led by the subsidiary Shenzhen Wonder Digital Technology Co. Ltd. which
provides solutions for customers in the digital printing industry including digital printers ink accessories and
professional services. Wonder Digital has introduced a variety of digital printers to meet the diverse needs of
different market segments and customer levels including Multi Pass digital printer series applicable for small-
batch paper packaging printing Single Pass digital printer series applicable for large/medium/small batch paper
packaging printing Single Pass digital series applicable for pre-printing on raw paper and Hybrid printer series
that combines Multi Pass high-precision printing and Single Pass high speed printing into one.Wonder Digital offers a diverse range of products that cover various types and specifications from
postprinting to pre-printing from water-based dye/pigment water-based ink to spot colour UV ink from boxes
offset cartons to sheet metal. The products also support a range of application modes and scenarios from single-
sheet printing to exchange orders seamlessly with variable data printing and from single machine printing to
integration with ERP systems.Apart from digital printers Wonder Digital also sells supporting units after printing section including slotting
and varnish coating units as well as special ink products that are compatible with its own-brand equipment. These
special ink products including water-based dye ink water-based pigment ink and UV ink. Wonder Digital’s high
cost-performance digital printing solution provides customers with cost-effective configuration plans for digital
inkjet printing equipment and ink formulation plans.
24Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
With its comprehensive product matrix Wonder Digital provides paper packaging digital printers that meet
the iverse needs of industry customers with different market positions and levels. Wonder Digital’s digital printers
have been exported to countries and regions such as Europe America Asia Latin America and Southeast Asia..
25Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Primary Product Portfolio of Dongfang Precision’s intelligent packaging Equipment Business - Corrugated Cardboard Production Lines
Product type Brand Product image Main characteristics
Fosber Brand S/Line
Width: 2.5m~2.8m
Production speed: 370~470 meters/minute
Designed for large corrugated board
manufacturers Beltless Technology
Caddy oil-free technology
Gapless changeover with no speed reduction of
the cadre
Industry leading changeover times
Optimum board quality and low operating costs
Industry leading Syncro system control
Corrugated Process Control Supervision (PCS)
Cardboard Data Tracking Supervision (DTS)
Production Quantum Line：
Widths from 1.8m to 2.5m
Lines
A new concept in corrugated board production
Better suited for lightweight corrugated board
production
Innovative design compact and flexible
Optimum appearance and print surface quality
Lower energy consumption and less labor
Domestic Line:
Width: 2.2m~3.35m
Design speed: 270-370 meters/minute
Single tile double tile triple tile wet section
Wet section without belt technology
26Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cadre without lubrication technology
High board quality
Industry-leading Syncro system control
Process Control Supervision (PCS)
Data Tracking Supervision (DTS)
Instant Set:
Dual Module Slitting Machine
Gapless order change speed of 250
meters/minute
Positioning accuracy of +/-0.5mm
Within 3 seconds to change the order and line
up the knives
Belt Single-Facer:
Maximum design speed: 450 meters per minute
Patented Teflon composite belt
Classic large-small roller design
Vacuum negative pressure technology
Suitable for low-grammage and pre-printing
Corrugated & The world's leading supplier of corrugating
pressure rolls and pressure rolls with industry-leading
rollers machining and tungsten carbide treatment
27Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Primary Product Portfolio of Dongfang Precision’s Smart Corrugated Packaging Equipment Business - Corrugated Box Printing and Packaging Production Line Equipment
Product type Brand Product image Main characteristics
DONGFANG STAR I QUICKSET TOP PRINTING FFG Fixed type
Full servo control
No downtime for plate change
2 minutes quick order change
Vacuum adsorption large belt high precision
cardboard transfer long service life
Energy saving up to 30
Only 2 people are needed to operate the whole
line
Integrated
corrugated DONGFANG STAR II TOP PRINTING OPEN-CLOSE TYPE FFG Vacuum adsorption roller transfer;
box printing Computerized adjustment easy to operate;
and High speed and stable operation; Patented
packaging folding structure; Improve carton molding
lines effect
Only 2-3 persons are needed to operate the
whole line
Suitable for shaped box machine box and
Asia-Pacific STAR I BOTTOM PRINTING DIE CUTTER STRIPPER VACUUM STACKER CONVERTING LINE pre-printed box etc. with one point and
multiple die-cutting.Mature down-printing die-cutting technology;
Clean chip removal and accurate counting
Efficient production; Uninterrupted feeding;
No-speed down output of bundles flexible
palletizing methods
Configurable for double-sided printing; 2-3
28Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Product type Brand Product image Main characteristics
person operation
Vacuum adsorption roller transfer
Asia-Pacific STAR II BOTTOM PRINTING OPEN-CLOSE TYPE FFG INLINE
Computerized adjustment of the whole
machine easy to operate
Good effect of clearing waste can realize one
opening and two die-cutting line gluing
Integrated
carton.corrugated
Patented folding structure improves carton
box printing
molding effect.and
The whole line is operated by 2-3 persons
packaging
Design concept of down-printing type gluing
lines Asia-Pacific STAR III BOTTOM PRINTING OPEN-CLOSED TYPE/FFG & STITCHER
and nailing as a whole
Multi-purpose machine to meet the
production needs of different orders
Saving space reducing process greatly
reducing labor cost.Multiple pre-pressure to enhance folding and
molding effect precise control of molding
accuracy.High-end down-printing fixed in-line
Spindle servo drive
Quick order change
Complete pre-press and post-press supporting
units
29Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Primary Product Portfolio of Dongfang Precision’s intelligent packaging Equipment Business – Digital Printers
Product Brand Product image Main characteristics
type
WONDER INNO PRO SINGLE PASS - Print reference accuracy: 1200 NPI
- Speed: up to 150 m/min
- Printing thickness: 1.2 mm – 20 mm
- Maximum printing width: 2500 mm
- Printing materials: yellow/white kraft liner honeycomb panel
coated paper
- Modular freely combinable linked production line
- Adaptable to diverse customer requirements
A cost-effective tool for bulk orders
Adopts Epson's latest HD industrial printheads.Printing width up to 2500mm
Speed up to 700㎡/h - 1400 ㎡/h
Digital Printing thickness 1.2mm-35mm
Printers Coated paper and honeycomb board can also be easily printed.WD250++ Series Scanning Wide Format
Base accuracy 1200dpi.High Quality Carton Digital Printer
30Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Product Brand Product image Main characteristics
type
- Fully automatic feeder and material handling system
- Exquisite vivid and realistic printing quality
- Color effect comparable to offset printing
- Printing thickness: 0.2 mm – 20 mm
- Printing materials: card paper / art paper coated paper
WD250 PRINT MASTER MULTI PASS yellow/white kraft liner
Digital inkjet color printing equipment
\
- Print reference accuracy: 1200 NPI – 1800 NPI
- Maximum printing line speed: 150 meters per minute
- 4-color or 6-color configuration available
Digital - Suitable for digital pre-printing of corrugated base paper vehicle
Printers wraps light box fabric PVC color film and decorative paper thin
Industrial SINGLE PASS Roll-To-Roll aluminum sheets etc.high-speed digital pre-printing machine - Printing quality surpasses flexography and is comparable to offset
printing
- Print reference accuracy: 360 NPI
- Maximum printing speed: 700 m2/h
- Equipped with 18 industrial-grade print heads
- Accurately reproduces design colors even on non-white base
materials such as yellow board and gray board
- “White + color” combined printing delivers an effect
MULTI PASS-SINGLE PASS All-in-One approximating 80% of traditional spot colors
Digital Printing Machine - Dedicated water-based pigment ink
31Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
C. Industrial Internet solutions businessDongfang Digicom a subsidiary of Dongfang Precision serves as the primary business entity for “industrialInternet industry solutions”.Based on the extensive industry experience of Dongfang Precision spanning over three decades in the field of
corrugated packaging equipment as well as guided by the Group’s strategies the subsidiary Dongfang Digicom
leveraging cutting-edge technologies such as the Internet of Things (IoT) cloud computing big data 5G and
artificial intelligence (AI) has developed iDataPioneer an industrial Internet platform for the packaging industry
in a broad sense.One-Stop Digital Factory Overall Solution Architecture Diagram
Dongfang Digicom focused on product innovation and scenario deepening in 2025 launching new offerings
including "Micro-MES" "InterLink" and "Equipment After-Sales Service Management System". Adhering to a
product strategy of precise customer positioning differentiated solution design and flexible business models
these products can be integrated as value-added modules into Dongfang Precision's own-brand corrugated box
printing and packaging equipment. Through functional iteration and empowerment they enhance the market
competitiveness of printing and packaging equipment. Alternatively they can be promoted as independent
solutions fully compatible with the upgrading and transformation needs of multi-brand existing equipment to
meet the increasingly diversified application requirements of industry customers.“Micro Mes” is an integrated application solution based on the intelligent production management system
32Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
and enterprise ERP achieving closed-loop management from order creation scheduling production issuance to
reporting. It enhances the digitalization level of production process control.“InterLink” is an intelligent production
management system designed for Dongfang Precision’s corrugated box printing and packaging equipment. It fully
utilizes the ecological resource advantages of Dongfang Precision's corrugated packaging equipment improving
machine operation efficiency order processing capacity reducing order management costs and enhancing the
market competitiveness of machine products. The “Equipment After-Sales Service Management System” focuses
on the after-sales service of packaging printing equipment. It enables the reuse of underlying technologies and
realizes the digitalization of equipment “points rounds inspections” and maintenance through systematic after-
sales services online spare parts management full lifecycle management of equipment records and remote
maintenance.Dongfang Digicom also provides digital diagnostic consulting services for large packaging industry clients.Through digital transformation consulting it drives product sales creating a “service solution-driven product sales”
closed loop.In the context of the rapid development of new-quality productive forces represented by technologies such as
AI and robotics Dongfang Digicom proactively captures and responds to new demands in the industry market—
namely tapping into new market growth space restructuring production processes and integrating supply chain
collaboration mechanisms by virtue of AI robotics and other technologies. It actively promotes the in-depth
integration of AI algorithms robotic hardware and digital systems deepens the AI capabilities of its solutions and
products and relies on the implementation of a series of projects to polish and continuously improve the
standardization and modularization level of digital products.D. The operational model of the intelligent packaging equipment business
R&D model: The Company has industry-leading independent design and R&D capabilities continually
establishing high-level R&D innovation management mechanisms. The R&D team spearheaded by industry
experts employs a blend of long and short-term product R&D planning supported by a market-oriented R&D
mechanism. Additionally a robust R&D talent incentive mechanism enhances the Company’s overall technical
proficiency cementing its leadership position in the industry.Procurement and production model: The Company procures raw materials such as steel plates metal
components and electrical parts (such as motors and PLCs) from external suppliers while producing some core
components and corrugated rollers in-house.The majority of the Company’s equipment products adhere to a
“made-to-order production” model. Upon receiving orders and partial deposits from customers the Company
purchases raw materials from suppliers based on specific customer requirements and inventory levels and
develops production plans and schedules. The Company advocates a “lean production” model for production and
operational management ensuring precise control over BOM costs and manufacturing expenses while
continuously enhancing operational efficiency.The delivery period for orders of corrugated board production lines under the Fosber Group was around 6
months. The delivery period for orders of corrugated box printing and packaging complete machine equipment
under the Dongfang Precision brand was 3 to 6 months and the delivery period for orders of digital printing
equipment under the Wonder Digital brand was 1 to 3 months.
33Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Marketing Model: The Company employs a “direct selling + distribution” marketing model. It utilizes a
direct sales approach for the domestic market and a combination of direct sales and agent distribution for overseas
markets tailoring the strategy to suit the unique needs of different countries and regions. This approach not only
widens the scope of sales channels and increases sales volume but also reduces market expansion and sales costs.The Company’s complete production line and single machine products are typically one-time sales with
more significant transaction amounts. However accessories software and services can be sold multiple times
throughout the life-cycle of complete production line or single machine products. The growing number of existing
equipment sold in the downstream industry market presents a steady stream of sales opportunities for accessories
software and services. Additionally providing high-quality technical support and services helps to promote the
sales of complete production line products. In terms of the settlement of orders the Company collects down
payment in advance and payment by stages for the sales of corrugated cardboard production lines and corrugated
box printing and packaging equipment.(II) The Water Powersports Equipment Business Division
The main products of Parsun Power a subsidiary are outboard motors of various specifications and series.The product power range is broad covering from 2 horsepower to 300 horsepower. The products are of stable
quality and reliable performance with some products offering comprehensive performance comparable to
internationally renowned brands and emissions meeting European and American standards. Most models have
passed the China Classification Society (CCS) certification European CE certification and U.S. EPA certification.These products are widely used in water leisure sports fisheries water transportation emergency rescue coastal
landing maritime patrol and other fields and are exported globally.
(1) Outboard motors
Parsun Power has achieved a complete product line layout of “gasoline — diesel — electric” outboard
motors. Leveraging its years of experience and leading market share in the gasoline outboard motor sector the
company is now advancing towards high-power diesel and electric outboard motors. In the future Parsun Power's
outboard motor products will gradually focus on mid-to-high power while expanding the electric outboard motor
product line to continue solidifying its position as a leading domestic outboard motor brand.Gasoline outboard motors are the most diverse product range in Parsun Power’s portfolio covering from 2
horsepower to 300 horsepower including two-stroke and four-stroke models. Parsun Power has accumulated
extensive experience in this field over many years developing proprietary technologies that are applied to its
products. In 2021 Parsun Power achieved mass production and sales of a 115-horsepower gasoline outboard
motor successfully breaking the long-standing monopoly of internationally renowned brands in this power
segment. In 2023 it achieved mass production and sales of a 130-horsepower gasoline outboard motor. In 2024 it
released a 300-horsepower gasoline outboard motor and mass production and delivery of 300-horsepower
gasoline outboard motors were achieved in the first half of 2025.The 300-horsepower outboard motor belongs to the high-power segment with application scenarios covering
recreational commercial and other professional fields including sea fishing surfing marine cruising fisheries
water transportation as well as maritime law enforcement patrols maritime search and rescue etc. It employs a
range of advanced technologies such as four-stroke engines electronic fuel injection (EFI) lightweight materials
34Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
and integrated electronic control systems. It is the representative of high-end positioning and high-value-added
products in the global outboard motor market.As a Chinese manufacturer Parsun Power’s breakthrough in the large-horsepower model allows it to directly
target high-value markets competing globally with the core advantages of Chinese manufacturing. Parsun Power
is poised to become one of the core competitors in the global high-end outboard motor market laying the
foundation for its entry into the global high-end leisure yacht market and becoming a key driver of future revenue
growth.In recent years Parsun Power has continuously broken through the ceiling of domestic gasoline outboard
motors. On the premise of maintaining independent control over core technologies and localizing production
manufacturing and supply chains it has been committed to building milestones for China's high-end
manufacturing in the outboard motor sector. This marks the official entry of Chinese enterprises into the global
high-end mainstream market for outboard motors.Electric outboard motors use rechargeable batteries as an energy source and convert electrical energy into
kinetic energy via an electric motor. Compared with fuel-powered outboard motors they feature zero emissions
lower noise and are easier to operate. Parsun Power’s electric outboard motors primarily focus on small to
medium horsepower mainly used in environmentally sensitive areas such as tourist resorts.Diesel outboard motors retain the advantages of gasoline outboard motors such as ease of installation
maintenance and operation while also offering greater fuel efficiency lower emissions higher torque enhanced
safety and easier maintenance mainly used in commercial transport offshore oil extraction and public law
enforcement fields.. The development of Parsun Power’s own-brand diesel outboard motors is advancing rapidly.
(2) Electric trolling motors
In March 2025 Parsun Power officially launched its first intelligent electric trolling motor product at the
CIBS2025. This product is Parsun Power’s first electric trolling motor and also China’s first electric trolling
motor product with a folding structure. During the development process of this product Parsun Power has adhered
to the “high-end positioning positive R&D” philosophy and performed over 40 rounds of shape optimization
more than 70 structural adjustments over 100 software version iterations and nearly a thousand water tests
achieving core technology and production manufacturing independence and control. The product has now entered
the mass production and delivery phase.
(3) General machines
General machines refer to versatile power solutions and associated end-user items featuring primarily
general utility small gasoline motors general utility small diesel motors and generator sets using them as
supporting power (like emergency power kits and field operation power supplies) agricultural equipment (e.g.water pumps cultivators) gardening machinery (e.g. lawnmowers chainsaws) compact construction tools (e.g.cutters tampers concrete mixers and levelers) among other miscellaneous applications. These products find
extensive usage across various sectors.Parsun Power’s general machine products mainly include gasoline motors gasoline generator sets and
gasoline water pump sets. Gasoline motors primarily single-cylinder four-stroke units utilize gasoline as fuel and
are adaptable for use in agricultural machinery gardening equipment and other small machinery applications.Gasoline generator sets combine these motors with generators functioning as standby power sources. The
35Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
gasoline water pump sets feature centrifugal pumps driven by gasoline motors and are extensively utilized in
agricultural irrigation livestock watering and similar domains.Parsun Power’s general machine products are mainly sold to Africa and Western Asia. With a leading market
layout and relying on excellent product quality and stable performance Parsun Power has established a significant
brand advantage and a good market reputation in these regions.
(4) Operational model
The operational model of the water powersports equipment business: In terms of sales Parsun Power follows
a global industry-standard sales model that primarily relies on distribution supplemented by direct selling. The
demand for outboard motors which are the company’s main product is mainly distributed overseas with end
customers scattered throughout the world. Adopting a distribution-centric sales model enables Parsun Power to
reach end customers to the fullest extent possible. In terms of production Parsun Power produces outboard motor
products independently utilizing sales demand forecasts customer orders product inventory status material
delivery progress and product production cycles to formulate production plans. The company then organizes the
production of components in accordance with specialized processes and procedures. In procurement following
the principle of “sales determine production production determines procurement” Parsun Power determines the
procurement requirements for its outboard motor business while also taking into account reasonable safety stock.The operational model of the general machine business: Based on its strategic positioning of “becoming aworld-class provider of comprehensive water powersports equipment” Parsun Power has adjusted its general
machine business from the early independent production model to an OEM outsourcing model to focus its
resources on water powersports equipment. According to the principle of “sales determine procurement” while
also taking into account reasonable safety stock Parsun Power provides design drawings technical specifications
and quality requirements to the OEM manufacturers. These manufacturers directly purchase raw materials carry
out customized production and deliver finished products for Parsun Power’s confirmation before shipment.
36Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Primary Product Portfolio of Parsun Power
Brand Product type Product image Main characteristics
High-Efficiency Power System
300-hp(four-stroke)
4.2L V6 DOHC engine delivers powerful power output
gasoline
Electronic Fuel Injection (EFI) technology precisely controls the
outboard motor
fuel-air mixture enabling more complete combustion and
reducing fuel consumptionand Variable Valve Timing (VVT)
technology enhances mid-to-low speed torque and improves
acceleration performance.mid-to-high Enhanced Structural Strength
power outboard Hydrodynamic exterior design reduces water resistance
motors delivering more stable and efficient power transmission.High-flow water pump impeller design increases cooling water
pressure to ensure reliable operation.
130/115-hp(four- High-grade marine-grade materials improve corrosion resistance
stroke) gasoline and durability of components lowering maintenance and
outboard motor replacement costs. Multi-layer anti-corrosion coatings and anode
protection further upgrade the corrosion protection level.Reliable Power Transmission
The classic 1.8L L4 DOHC engine provides stable power output
with high reliability.Electronic Fuel Injection (EFI) technology precisely controls the
fuel-air mixture for more complete combustion reducing fuel
Intelligent control
consumption and emissions.system
Mature and robust throttle and shift mechanisms with low
maintenance costs.
37Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Brand Product type Product image Main characteristics
Electronic control system Electronic Control System: One-button start/stop cruise
control berthing and automatic tilt enabling seamless switching
Marine-grade
between multiple working conditions and human-machine
touch screen
interaction; Electronic throttle/shift with extreme response
control low maintenance costs and improved handling feel and
safety；
Marine-grade Touch Screen:Real-time display of engine speed
tilt angle steering angle water temperature oil pressure fault
Electric outboard alarms etc. to ensure navigation safety.motors High-Efficiency Power System:Sensor-less&brush-less
motor technology featuring anti-interference high
efficiency low noise and long service life. It provides
instantaneous torque output with fast response.Intelligent Energy Management: High-density lithium
battery pack ensures long endurance aand supports
multiple charging modes.The BMS (Battery Management System) monitors
temperature voltage and current in real time and is
Electric trolling equipped with multiple protection mechanisms.motors Precise Control Experience:Electronic throttle and
direct-drive transmission structure enable millisecond-
level power response.
38Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Brand Product type Product image Main characteristics
Efficient Powertrain
Sensorless brushless motor technology offers strong anti-
interference performance high efficiency low noise and
long service life. It provides instantaneous torque output
for faster response.Intelligent Energy Management
High-density lithium battery packs ensure reliable
endurance and support multiple charging modes.The BMS system monitors temperature voltage and
current in real time with multiple built-in protection
mechanisms.Precise Handling Experience
Electronic throttle and direct-drive transmission structure
enable millisecond-level power response.High rotation speed simple structure and stable operation.General Portable cost-effective lightweight and easy to use and
maintain.Machines Widely used in agriculture landscaping engineering
operations and other scenarios.
39Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
III Core Competitiveness Analysis
(I) Industry-leading technology and strong capabilities of R&D and innovation
1. The water powersports equipment business
Parsun Power is a national-level “Little Giant” with specialties refined management unique technologies
and innovation and a high-tech enterprise. It has long focused on the research and development of domestic
outboard motors accumulating rich innovative achievements. By the end of 2025 Parsun Power had accumulated
165 intellectual property rights and participated in the formulation of several industry standards. It has also won
the second prize of the China Machinery Industry Science and Technology Award twice. In 2021 and 2023
Parsun Power successfully achieved mass production of 115-horsepower and 130-horsepower gasoline outboard
motors. In March 2024 Parsun Power released its first domestically produced 300-horsepower gasoline outboard
motor and in 2025 Parsun Power released its first domestically produced electric trolling motors. The core
technologies of the aforementioned new products are independently controllable and their manufacturing supply
chains have been localized. This has become an important milestone for China's high-end manufacturing in the
field of water powersports equipment.In 2025 Parsun Power’s High-power Outboard Motor Emission Testing Center Laboratory received the
CNAS Laboratory Accreditation Certificate from the China National Accreditation Service for Conformity
Assessment (CNAS). This made Parsun Power the first company in the Chinese outboard motor industry to obtain
CNAS certification for a professional laboratory filling the gap in China’s specialized testing platform for high-
horsepower gasoline outboard motors. This certification has further solidified Parsun Power’s position as an
industry benchmark in the domestic gasoline outboard motor field. It also signifies that Parsun Power’s
professional testing in this specialized field is now on par with international top-level standards and the testing
reports will be globally recognized.The CNAS laboratory accreditation received by Parsun Power in the domestic gasoline outboard motor field
helps shorten R&D cycles and reduce R&D costs for Parsun Power in the development and testing of high-
horsepower outboard motors thus creating a more competitive core advantage. It also provides strong localized
support for other domestic companies in the same field for the R&D production and certification of high-
performance large-power outboard motors. This contributes to the green transformation of China’s shipbuilding
industry and the achievement of the “dual carbon” goals.In 2025 Parsun Power was awarded the “National Postdoctoral Research Workstation” certificate by the
Ministry of Human Resources and Social Security and the National Postdoctoral Affairs Management Committee
which means Parsun Power’s research capabilities in the frontier field of water powersports equipment and its
ability to nurture top talent and foster industry-academia-research collaboration has gained national recognition
and marks a new milestone in the company’s scientific research strength and talent development as well as further
enhancement of the company’s technological image and brand influence.
2. The smart corrugated packaging equipment business
40Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
The high-end corrugated cardboard production lines under the Fosber Group a subsidiary is industry-
leading in terms of speed width accuracy reliability and level of intelligence. It has earned global recognition
from customers for its high quality reliability and intelligent software systems. Based on Industry 4.0 technology
Fosber Group has launched a corrugated cardboard production line control system which includes modules such
as Pro/Syncro Pro/Care and Pro/Quality. Using sensors AR AI analytics big data and cloud computing
technologies it enables high precision and intelligent management of production lines. Among them Pro/Syncro
achieves high-speed high-quality and low-energy consumption production; Pro/Care provides intelligent
diagnostics to reduce equipment downtime; and Pro/Quality performs real-time defect detection and quality
traceability. Fosber also offers remote services such as Pro/Visionair and Remote Control significantly reducing
after-sales costs and improving customer efficiency. Fosber Asia a subsidiary has introduced and applied the
“Instant Set” dual-module slitter in corrugated cardboard production lines. By independently controlling the
cutting blades and creasers with servo motors it reduces the order changeover time from the industry average of
8-15 seconds to under 3 seconds making it particularly suitable for China’s “small batch diverse product” order
characteristics.Wonder Digital a holding subsidiary is a national high-tech enterprise and a “Little Giant” Enterprise with
specialties refined management unique technologies and innovation. It connects the physical and digital worlds
through a complete digital printing matrix offering comprehensive solutions. Wonder Digital’s brand UV digital
color printers and high-speed digital printers achieve a printing accuracy of 1800 NPI with color printing quality
comparable to traditional offset printing. The new product WONDER INNO PRO SINGLE PASS launched in
2024 represents a technological breakthrough in digital printing extending from color to high-definition colors. Its
large-width roll-to-roll high-speed digital printing machine is leading in China offering advantages in size
energy consumption and cost-effectiveness.(II) Complete layout in the corrugated packaging machinery industry chain and the most complete
and richest product portfolio in the industry
Among domestic companies in the corrugated packaging equipment sector Dongfang Precision is the
enterprise with the most complete and comprehensive industrial chain layout. Its products cover the fields of
corrugated cardboard production carton printing and packaging and digital printers. The company's business
encompasses all key links in the corrugated packaging production and processing value chain and it possesses the
most comprehensive and diverse product portfolio of corrugated packaging production line equipment in the
industry. This enables the company to meet the needs of different market segments and various types of customers
offering dozens of different specifications and models of full-line and standalone products making it the leader in
the domestic market.
1. Corrugated cardboard production linesIn the field of “High-End Intelligent Corrugated cardboard production lines “: Fosber Group a subsidiaryoffers three major series of products of corrugated cardboard production lines: S/Line Pro/Line and Quantum
Line along with key components for corrugated cardboard production lines such as corrugating rolls and pressure
rolls. These products are designed for medium to large-sized enterprises in the global corrugated cardboard
41Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
production and processing industry providing mid-to-high-end corrugated cardboard production lines in various
specifications types and different positioning levels.The S/Line and Pro/Line are primarily suitable for the production of corrugated cardboard with a thickness of
2mm to 13mm. This type of corrugated cardboard is known for its strong load-bearing capacity excellent shock
resistance high plasticity and environmental friendliness. It is widely used in logistics and express delivery
furniture and home appliances and electronics packaging. The Quantum Line is mainly suitable for the
production of solid fiberboard under 2mm thick and micro-corrugated cardboard. This type of cardboard is
lightweight high in strength moisture-resistant and environmentally friendly. It is widely used in packaging for
color boxes high-end products electronics and cultural and artistic items. The Tiru?a brand’s corrugating rolls
and pressure rolls are compatible with various brands and different specifications of corrugated cardboard
production lines. They can be customized based on the type of corrugated line coating requirements and
applicable paper types.
2. Corrugated box printing and packaging production lines
Dongfang Precision (China) and Dongfang Precision (Europe) offer high-quality corrugated box printing and
packaging production lines and standalone equipment for both the Chinese and overseas markets. They offer
dozens of different specifications and market positioning products covering fixed/open-close type top-
print/bottom-print full-line (line)/standalone models making them the most comprehensive and diverse suppliers
of products in this field globally.
3. Digital printers
Wonder Digital offers four major series of digital printing machines covering a wide range of types and
specifications from post-printing to pre-printing from water-based inks to dyes and pigments from water-based
spot colors to UV spot colors and from cartons and color boxes to coiled materials. The machines support various
application modes and scenarios including single-sheet printing to variable data seamless job changeoverstandalone printing to ERP integration among others. Wonder Digital positions itself as a “digital printersupermarket” meeting the needs of different markets and industry customers at various levels for digital printing
production.(III) Profound Know-How experience and experienced team in the industry
Dongfang Precision has a team with deep industry Know-how and extensive experience. With over 20 years
of experience in both domestic and international markets the team has a profound understanding of the industry
layout development planning R&D roadmap production operations marketing and team management in the
field; The core management team has a broad vision and is able to deeply grasp the overall development trends of
the smart corrugated packaging equipment manufacturing industry. Through forward-looking strategic planning
and layout the steady and sustainable development of the Company is achieved. Furthermore the Company
practices a professional manager management model continuously improving organizational structure
management authority incentive systems and cultural development. These measures help the Company attract
talent and enhance the team’s combat effectiveness.(IV) High brand popularity and customer recognition worldwide
42Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Water Powersports Equipment Sector: Parsun Power a subsidiary is a leading company in the domesticoutboard motor industry. The Parsun Power brand has received numerous honors including “Jiangsu ProvinceFamous Brand Product” and “Suzhou Famous Brand Product”. Overseas Parsun Power’s sales network covers
more than 100 countries and regions establishing business partnerships with numerous customers worldwide.Intelligent Packaging Equipment Sector: Dongfang Precision brand corrugated box printing and packaging
lines and Wonder Digital brand digital printers are well-known and influential both domestically and
internationally. Dongfang Precision brand’s corrugated box printing and packaging lines are sold in more than 60
countries and regions. The holding subsidiary Wonder Digital is in the top tier of the domestic digital printer field
with its products sold in over 80 countries and regions and a market stock of over 1600 units.(V) Strong capabilities of strategic control and integration
Since going public Dongfang Precision has continuously expanded upstream and downstream in its core
industries. Over many years of practice the Company has developed strong strategic control and deep integration
capabilities across its business segments accumulating rich experience and practical knowledge. Strategic
management capabilities have become the Company's core strength in successfully managing its various business
entities.In practice the Company has developed a set of effective post-investment integration management methods
by deeply understanding the industry forecasting industry trends and focusing on strategic goals. These methodsinclude corporate governance standardization policy the “Board of Directors-Supervisory Committee-GeneralMeeting” operation mechanism the strategic and financial control system decentralized authorization
management complete audits and management incentives forming a set of measures for effective controls for
post-investment integration with the Company’s own characteristics to secure the effective implementation of the
strategic plan.* Water powersports equipment: Parsun Power’s compound annual growth rate (CAGR) of operating
revenue and net profit achieved 24% over the past six years
Since acquiring the controlling stake in Parsun Power in 2015 Dongfang Precision has helped Parsun Power
enhance its R&D marketing supply chain and manufacturing through strategic adjustments and the introduction
of outstanding talent. Between 2020 and 2025 Parsun Power achieved a compound annual growth rate of 24% in
both revenue and net profit.* Corrugated cardboard production lines: Fosber Group recorded a double-digit CAGR of operating
revenue and net profit over the past decade.Since acquiring the controlling stake in Fosber Italy in 2014 Dongfang Precision and its management team
have implemented a series of effective integration measures including optimizing strategic planning business
strategies standardizing the management systemestablishing management incentive mechanism and
strengthening financial controlwhich have effectively revitalized the operational performance of the Fosber
Group.From 2015 to 2025 Fosber Group delivered a CAGR of approximately 12% in total operating revenue and
a 25% CAGR in overall net profit.
43Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
IV Analysis of Principal Operations
(I) Overview
In 2025 China’s economy progressed steadily with new achievements in high-quality development. The
intelligent upgrading of the manufacturing sector continued to deepen and new quality productive forces
developed actively. Under the strong leadership of the Board of Directors and the management team all
employees worked diligently and strove for progress in 2025 achieving steady growth in the Company’s
operating performance.In 2025 the Company recorded total operating revenue of RMB5229 million representing a year-on-year
increase of 9.43%; and net profit attributable to its shareholders was approximately RMB725 million representing
a year-on-year increase of 44.88%.(II) Performance of principal operations during the Reporting Period
1.The business division of water powersports equipment
In 2025 Parsun Power a controlled subsidiary recorded total operating revenue of RMB1016 million
exceeding RMB1 billion for the first time representing a year-on-year increase of 34%; net profit reached
RMB108 million representing a year-on-year increase of 33%. Both annual operating revenue and net profit
reached record highs while the year-on-year growth rates of revenue and net profit (YOY) also marked the best
performance in the past three years. Since 2021 Parsun Power has entered a phase of accelerated growth with
operating revenue in 2025 increasing by more than 110% compared with 2021.Breaking into the High-End Outboard Motor Market Domestic 300-Horsepower Gasoline Outboard
Motors Achieves Mass Production and Delivery: Following the launch of China’s first 300-horsepower
gasoline outboard motor the F300 in 2024 Parsun Power undertook extensive work to enable mass production.In 2025 the product completed market validation and design optimisation officially entered mass production and
achieved sales and delivery of over 200 units throughout the year. This marked a critical leap for domesticallyproduced outboard motors in the 300-horsepower high-power segment transitioning from “technologicalbreakthrough” to “market delivery”. Parsun Power became the first Chinese enterprise to mass-produce 300-
horsepower gasoline outboard motors breaking the long-standing dominance of American and Japanese brands in
the high-end market. This positioned China as the third country globally after the United States and Japan to
successfully mass-produce such motors supporting the domestic outboard motor industry’s transition from a
“follower” to a “co-runner” in the manufacturing and sales of high-horsepower gasoline outboard motors. With
the ramp-up in mass production and delivery of the F300 high-horsepower outboard motors are becoming a key
driver for Parsun Power to enter the global mainstream outboard motor market and drive performance growth.“Gasoline–diesel–electric” Outboard Motor Product Matrix Continues to be Upgraded with Product
Competitiveness Across All Application Scenarios Steadily Improving: Parsun Power is committed to
developing a “gasoline–diesel–electric” outboard motor product matrix covering a wide range of end-use
applications and spanning low- medium- and high-power segments to meet diverse customer needs. Parsun
Power continued to drive the overall upgrade of its outboard motor product matrix steadily advancing towards
higher horsepower multi-fuel capability and electrification. In 2025 alongside the mass production and delivery
of its flagship F300 high-horsepower gasoline outboard motor Parsun Power achieved a significant milestone in
the R&D of its proprietary 200-horsepower diesel outboard motor which has entered the small-batch production
stage. Once officially launched this product will become China’s first 200-horsepower diesel outboard motor
filling the gap in the domestic industry for high-horsepower diesel products. High-horsepower diesel outboard
motors will form an important part of Parsun Power’s product portfolio in commercial and governmental
application scenarios. A new intelligent control system designed to complement high-end and electric outboard
motors was successfully launched and delivered in mass production enhancing the intelligent operation of ships.In end-use applications such as water leisure sports and consumer-grade gasoline outboard motors Parsun Power
optimised and enhanced the performance of multiple outboard motor products further consolidating its
competitive advantage in terms of cost-effectiveness within this segment.Building a Second Growth Curve with the Mass Production of the First Electric Trolling Motor
44Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Leading Category Expansion: While consolidating its competitive advantages in the outboard motor sectorParsun Power leveraged its years of accumulated expertise in this field to expand towards becoming “a supplier ofcomprehensive water powersports solutions”. By developing new product lines it has established a new growth
curve. In March 2025 Parsun Power officially launched its first electric trolling motor at the 2025 Shanghai
International Boat Show. This product represents both Parsun Power’s first electric trolling motor and the first
domestically developed electric trolling motor featuring a foldable structure. During the R&D process of the
electric trolling motor Parsun Power adhered to a “high-end positioning and forward development” philosophy
undergoing more than 40 design optimisations over 70 structural adjustments more than 100 software iterations
and nearly 1000 on-water tests thereby achieving independent control over core technologies and manufacturing.The product has now entered the stage of mass production and delivery. The first electric trolling motor marks a
significant milestone for Parsun Power leveraging its R&D and manufacturing expertise in outboard motors to
expand into new application areas such as auxiliary marine power and precise positioning control.Approved as the First CNAS-accredited Laboratory in the Domestic Industry Further Strengthening
the Technological Foundation: In June 2025 the high-power outboard motor emissions testing centre laboratory
of Parsun Power obtained CNAS laboratory accreditation from the China National Accreditation Service for
Conformity Assessment (CNAS) becoming the first specialised laboratory in China’s outboard motor industry to
receive such certification and filling the gap in professional testing platforms for high-horsepower gasoline
outboard motors in China. The acquisition of this accreditation signifies that Parsun Power has established a
domestically leading nationally accredited independent R&D verification system providing strong assurance for
performance emissions and reliability testing of high-horsepower and various new products. In addition during
the Reporting Period Parsun Power was approved to establish a national-level postdoctoral research workstation
receiving national recognition in terms of research capability high-end talent cultivation and industry–academia–
research collaboration further enhancing its corporate technological image and brand influence.New Headquarters Put into Operation Ushering in the “2.0 Era”: Parsun Power’s new headquarters in
Suzhou Jiangsu Province was officially put into operation in May 2025. The newly constructed production
workshops for high-horsepower outboard motors and electric outboard motors have been put into operation
laying a solid foundation for Parsun Power’s future performance growth. According to the project plan once the
new workshops reach their target production capacity in the future Parsun Power will increase its annual
production capacity by over 76000 outboard motors. From 2021 to 2025 Parsun Power achieved leapfrog growth
in operating revenue and net profit successively launching 115-horsepower 130-horsepower and 300-horsepower
gasoline outboard motors filling numerous gaps in China’s gasoline outboard motor sector and achieving
remarkable results. Building on the rapid development of the past five years the completion and commissioning
of Parsun Power‘s new headquarters marks the beginning of Parsun Power’s “2.0 era”. Going forward Parsun
Power will continue to focus on the development trends of “high horsepower electrification and intelligence” in
the shipping power sector providing comprehensive water powersports solutions and products for customers
across multiple industries and application scenarios. Building on its position as a domestic industry benchmark it
will benchmark against leading international enterprises driven by innovation and supported by full industrial
chain collaboration striving to become a world-class comprehensive service provider in the water powersports
sector and achieve high-quality development.Digital and Intelligent Operations Driving Efficiency Improvements Enhancing Both Operational
Efficiency and Quality: In 2025 Parsun Power completed the full deployment and integration of the U9 ERPsystem and CRM system achieving full-process digital connectivity from “sales order → production planning →manufacturing execution → product delivery”. This enabled the automatic conversion of sales orders into
production orders significantly improved process automation substantially reduced work order processing time
and enhanced delivery efficiency for both machines and components. Through budget management and cost
optimisation period expenses in 2025 decreased by 3.3% compared with 2024 achieving a relative reduction in
costs alongside rapid overall revenue growth. Meanwhile the capacity utilisation rate of high-horsepower fuel-
powered model production lines continued to improve with production capacity steadily ramping up.Innovating Diversified Marketing Approaches with Parallel Progress in Domestic and International
45Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Markets: During the Reporting Period Parsun Power participated in major domestic exhibitions including the
2025 Shanghai International Boat Show the 2025 China Import and Export Fair (Canton Fair) and the 2025
Shanghai International Emergency and Rescue Expo. In overseas markets the Company focused on Asia Africa
and Latin America while continuously strengthening expansion in the European market and further developing
markets in Latin America and Africa. In 2025 sales of Parsun Power’s outboard motor products in Asia Africa
and Latin America increased by more than 60% compared with 2024 while sales in Europe (excluding the
Commonwealth of Independent States) increased by over 30% year on year. In 2025 Parsun Power launched live-
streaming e-commerce collaborating with business partners to host multiple live-streaming sessions on the
Douyin platform. This enabled more direct engagement with end consumers and gradually established a
marketing closed loop of “online traffic acquisition offline experience and full-channel conversion”. The number
of followers on Douyin platform exceeded 6000 and user community building progressed steadily gradually
taking shape. Parsun Power also promoted its top-tier engine products by sponsoring lure fishing competitions
precisely targeting high-end water sports and angling customer segments thereby enhancing brand awareness and
reputation in the leisure fishing sector.In addition revenue from the General Machine business increased by 80% year on year in 2025 becoming a
strong support for the growth and expansion of Parsun Power’s core water powersports equipment business.
2. The business division of intelligent packaging equipment
A. The segment of corrugated cardboard production lines
* Overseas business unit: Under overall pressure in overseas markets both revenue and order
intake achieved growth demonstrating strong resilience
In 2025 Fosber Group a subsidiary recorded total operating revenue of RMB3144 million representing an
increase of approximately 5.66% compared with 2024. During the Reporting Period orders for corrugated line
machinery of Fosber Group also achieved notable growth compared with 2024. Fosber Group whose core market
spans Europe and North America has achieved counter-cyclical growth despite industry-wide pressures of overall
production lines for high-end corrugated cardboard in Europe and America. These pressures stem from the
consolidation of leading downstream paper packaging conglomerates and slowing capital expenditure trends in
the sector since 2024. By leveraging superior product capabilities strong team execution a solid customer base
high brand recognition industry-leading machine intelligence control systems and exceptional product upgrade
and technical support services Fosber has demonstrated remarkable market resilience and robust competitiveness
in the global mid-to-high-end corrugated cardboard production line industry. In 2025 Fosber America a
subsidiary achieved growth in both revenue and profit reaching record highs and further consolidating its leading
position in the North American market.Industrial Synergy and Operational Efficiency Enhancement: During the Reporting Period Fosber Group
continued to deepen collaboration among its three major product line series—Fosber-branded corrugated lines
Quantum-branded corrugated lines and domestically manufactured corrugated lines of Fosber Asia. Fosber Group
made progress in collaboration with its subsidiary Qcorr in areas such as operations and after-sales services. In
2025 both the overall inventory level and inventory turnover rate of Fosber Group improved compared with 2024.
* Domestic business unit: Strong growth in orders and revenue alongside simultaneous capacity
expansion and operational optimisation
Fosber Asia a subsidiary is positioned as a specialised domestic supplier of mid-to-high-end corrugated
cardboard production lines focusing on China and radiating across Asia. In 2025 Fosber Asia delivered
outstanding performance in the domestic mid-to-high-end corrugated paperboard production line market with
strong sales of complete line machinery orders and substantial order intake in the domestic market. Annual
operating revenue and net profit both increased by more than 50% year on year achieving the best annual
performance since 2021.In 2025 Fosber Asia further optimised the average delivery cycle of complete line machinery orders
continuing the trend of shortened delivery cycles from 2024. The total production man-hours for complete line
machinery were optimised compared with 2024 resulting in a significant improvement in operational efficiency.The expense ratio decreased by nearly 5% maintaining strong management efficiency alongside revenue growth.
46Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
In June 2025 Fosber Asia’s new plant was officially put into operation with a designed annual capacity of 40
production lines providing strong support for future development.B. The segment of corrugated box printing and packaging line equipment
Overseas markets: Against the backdrop of domestic peer enterprises expanding overseas Dongfang
Precision’s corrugated box printing and packaging equipment has continued to achieve progress in overseas
market expansion supported by its long-established reputation advanced technological capabilities reliable
product quality and well-developed sales and service system. Dongfang Precision (China) adopted a combined
model of “distribution + direct sales” for its overseas business. In 2025 the proportion of direct sales overseas
increased significantly with a focus on expanding direct sales in countries along the “Belt and Road Initiative”
and strengthening localised customer service support. The Company achieved multipoint breakthroughs across
several countries in Asia and Africa secured dozens of printing and packaging integrated line orders in overseas
markets during the year and made notable progress in the Indian market.Operation management: Dongfang Precision (China) has continuously promoted energy conservation
consumption and cost reduction and efficiency improvement. Through the construction of “digital workshops”
and the implementation of intelligent logistics projects the level of production intelligence automation and
standardisation was enhanced. In 2025 both overall procurement costs and order delivery cycles were optimised.In 2025 multiple intelligent logistics projects were successfully delivered and accepted providing customers with
integrated smart factory solutions.Digital printer business: Wonder Digital a controlled subsidiary launched an upgraded “MULTI PASS-SINGLE PASS Digital Hybrid Printer” in 2025. Leveraging its innovative “dual-mode integration technology”
the product meets diversified size printing requirements helping customers reduce costs and improve efficiency.With stable product performance and quality it secured a substantial number of orders and became a new growth
driver for digital printer sales. Sales of inks consumables and spare parts compatible with the company’s own
brand of digital printers also achieved strong growth during the Reporting Period with the complementary
product effect continuing to materialise. The Company further strengthened overseas market expansion exploring
new opportunities in countries along the “Belt and Road Initiative” and in emerging markets. In 2025 revenue
from overseas markets accounted for more than 50% of Wonder Digital’s annual revenue with notable
breakthroughs achieved in multiple markets across Asia and Latin America.C. Industrial Internet industry solution business
In 2025 Dongfang Digicom a subsidiary achieved a turnaround from loss to profit for the first time.Benefiting from the effective implementation of its digital transformation strategy and the accurate capture of
external market opportunities Dongfang Digicom launched a range of digital products in 2025 including
Equipment After-sales Service Management System Micro Mes and InterLink. Leveraging their precise
alignment with the equipment manufacturing industry and differentiated functional design these solutions made
positive progress in the market with overall revenue increasing significantly compared with 2024. The
“Digitalisation +” business also achieved breakthroughs and was applied across relevant industry sectors. Driven
by high workforce efficiency operational input costs were reduced resulting in a year-on-year decrease in
operating expenses.
3. The business division of strategic emerging industries
In July 2025 the Company entered into a Strategic Cooperation Agreement with Leju Robot. Both parties
will initiate cooperation through project collaboration and complementary advantages leveraging Leju Robot’
strengths in technology R&D and application as well as Dongfang Precision’s advantages in intelligent
manufacturing and resources to carry out in-depth collaboration. The scope of cooperation includes but is not
limited to the manufacturing and services of intelligent equipment products application expansion and market
development and promotion.In September 2025 Dongfang Precision and Leju Robot jointly established DF Primo Robotic in which
Dongfang Precision holds an 80% equity interest. DF Primo Robotic will serve as the primary platform for the
listed company to develop strategic emerging industries leveraging Dongfang Precision’s accumulated experience
and resource advantages in high-end equipment manufacturing together with Leju Robot’ strengths in technology
47Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
R&D and application to advance the large-scale development of intelligent equipment products.As at the disclosure date of this report DF Primo Robotic has completed the establishment of its team and
production lines and is expected to complete final commissioning and acceptance of the production lines and
commence mass production in the first quarter of 2026. As at present DF Primo Robotic has secured orders on
hand amounting to approximately RMB35 million has completed trial production and commenced small-batch
supply of core component products and has generated operating revenue of RMB1.9 million (data as at February
2026).
(III) Analysis of key financial indicators
1. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20252024
As a % of total As a % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 5228536554.75 100% 4777855602.69 100% 9.43%
By operating division
Intelligent
5228536554.75100%4777855602.69100%9.43%
manufacturing
By product category
Corrugated
cardboard 3521133520.49 67.34% 3210447782.10 67.19% 9.68%
production lines
Corrugated box
printing and
packaging 691697924.87 13.23% 810207423.62 16.96% -14.63%
production line
equipment
Water powersports
products and 1015705109.39 19.43% 757200396.97 15.85% 34.14%
General Machines
Mainland China 1091961375.03 20.88% 551722648.45 11.55% 97.92%
Other countries and
4136575179.7279.12%4226132954.2488.45%-2.12%
regions
Direct selling 4165834673.76 79.67% 3900868714.41 81.64% 6.79%
48Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
A combination of
distribution and 1062701880.99 20.33% 876986888.28 18.36% 21.18%
consignment sales
(2) Operating Division Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY change
YoY change YoY change
Gross profit in gross
Operating revenue Cost of sales in operating in cost of
margin profit
revenue (%) sales (%)
margin (%)
By operating division
Intelligent manufacturing 5228536554.75 3797940497.42 27.36% 9.43% 13.69% -2.72%
By product category
Corrugated cardboard
3521133520.492477823019.9129.63%9.68%11.46%-1.12%
production lines
Corrugated box printing
and packaging production 691697924.87 498786414.03 27.89% -14.63% -5.51% -6.95%
line equipment
Water powersports
products and general 1015705109.39 821331063.48 19.14% 34.14% 39.32% -3.01%
machines
By operating segment
Mainland China 1091961375.03 889541829.20 18.54% 97.92% 101.37% -1.40%
Other countries and
4136575179.722908398668.2229.69%-2.12%0.33%-1.72%
regions
By sales mode
Direct selling 4165834673.76 2979271648.33 28.48% 6.79% 9.57% -1.81%
A combination of
distribution and 1062701880.99 818668849.09 22.96% 21.18% 31.75% -6.18%
consignment sales
Under the circumstances that the statistical caliber of the Company's main business data is adjusted in the Reporting Period the
Company's main business data that adjusted according to the caliber at the end of the Reporting Period
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
49Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Operating division Item Unit 2025 2024 Change (%)
Corrugated Unit sales Unit 194.00 191.00 1.57%
cardboard Output Unit 197.00 192.00 2.60%
production line
Inventory Unit 8.00 5.00 60.00%
Corrugated Box Unit sales Unit 261.00 393.00 -33.59%
Printing and Output Unit 249.00 393.00 -36.64%
Packaging
Equipment Inventory Unit 37.00 49.00 -24.49%
Water power-sports Unit sales Unit 10000 95.62 52.84 80.96%
product_General Output Unit 10000 95.53 52.84 80.79%
Machine
Inventory Unit 10000 0.02 0.11 -81.82%
Water power-sports Unit sales Unit 10000 6.51 7.41 -12.15%
product_Outboard Output Unit 10000 6.66 6.53 1.99%
Motor
Inventory Unit 10000 0.72 0.57 26.32%
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
1. Inventory of corrugated board production lines increased by 60% year on year mainly due to higher inventory stocking during the
reporting period.
2. Sales production and inventory of corrugated board printing and packaging equipment decreased year on year. This was mainly
because in 2025 the production and sales of high-end digital printing equipment models increased compared with 2024 while those
of low-end models decreased.
3. Production and sales of General Machinery products under the Water Power-sports product line rose year on year mainly driven
by increased market expansion for such products in 2025.
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□Applicable √ Not applicable
(5)Breakdown of Cost of Sales
Unit: RMB
20252024
Industry
Item As a % of total As a % of total Change (%)
Category Cost of sales cost of sales Cost of sales cost of sales
(%)(%)
Intelligent Raw materials 2472296182.92 65.10% 2176929041.06 65.17% 13.57%
manufacturing Labor cost 608573451.95 16.02% 526866025.31 15.77% 15.51%
50Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Other 717070862.55 18.88% 636700760.57 19.06% 12.62%
Unit: RMB
20252024
Product
Item As a % of As a % of Change (%)
category Cost of sales total cost of Cost of sales total cost of
sales (%) sales (%)
Corrugated Raw materials 1340677262.49 35.28% 1239323918.09 37.10% 8.18%
cardboard Labor cost 508374180.18 13.39% 430426579.74 12.89% 18.11%
production lines
Other 628771577.28 16.56% 553326549.36 16.56% 13.63%
Corrugated box Raw materials 367142992.92 9.67% 402926438.37 12.06% -8.88%
printing and Labor cost 63291531.98 1.67% 64773023.81 1.94% -2.29%
packaging
production line Other 68351889.09 1.80% 60198136.68 1.80% 13.54%
equipment
Water power Raw materials 764475927.51 20.13% 534678684.60 16.01% 42.98%
sports products Labor cost 36907739.79 0.97% 31666421.76 0.95% 16.55%
and General
machines Other 19947396.18 0.53% 23176074.53 0.69% -13.93%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
? Yes □ No
1. During the year the Company newly established the following subsidiaries: Suzhou Chaoju International Trading Co. Ltd.
Suzhou Xuanliu International Trading Co. Ltd. Suzhou Yuanqi International Trading Co. Ltd. Suzhou Cangshu International
Trading Co. Ltd. Suzhou Xunce International Trading Co. Ltd. Beijing Lanfengyin Trading Co. Ltd. Dongfang Primo Robotics
(Guangdong) Co. Ltd. Grandvoyage Holdings (Singapore) Pte. Ltd. and Starlight Precision Technology (Singapore)Co. Ltd. All
these entities have been included in the consolidation scope from their respective dates of establishment.During the reporting period the Company participated in the capital contribution to Changzhou Xinchen No.2 Venture Capital
Partnership (Limited Partnership) which has been included in the consolidated financial statements from the date of completion of
the capital contribution.
2. Tianjin Hangchuang Zhijin Investment Partnership (Limited Partnership) completed its liquidation and deregistration procedures
during the reporting period and has therefore been excluded from the consolidation scope as of its liquidation base date.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□Applicable √Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 1415745329.31
Total sales to top five customers as a % of total sales of the 27.08%
51Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Reporting Period (%)
Total sales to related parties among top five customers as a %
0.00%
of total sales of the Reporting Period (%)
Top five customers:
Sales revenue contributed for As a % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 533253398.00 10.20%
2 Customer B 305734589.44 5.85%
3 Customer C 230315951.74 4.40%
4 Customer D 189753546.28 3.63%
5 Customer E 156687843.85 3.00%
Total -- 1415745329.31 27.08%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 580820321.91
Total purchases from top five suppliers as a % of total
21.79%
purchases of the Reporting Period (%)
Total purchases from related parties among top five suppliers as
0.00%
a % of total purchases of the Reporting Period (%)
Top five suppliers:
Purchase in the Reporting
No. Supplier As a % of total purchases (%)
Period (RMB)
1 Supplier A 419645344.05 15.74%
2 Supplier B 52746718.78 1.98%
3 Supplier C 38187565.05 1.43%
4 Supplier D 35594692.76 1.34%
5 Supplier E 34646001.27 1.30%
Total -- 580820321.91 21.79%
Other information about major suppliers:
□ Applicable √ Not applicable
During the reporting period revenue from the Company’s trading business accounted for more than 10% of its total operating
revenue.□ Applicable √ Not applicable
2. Expenses
52Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Unit: RMB
2025 2024 Change (%) Reason for any significant change
Selling expenses 179857242.48 192404149.61 -6.52% No significant change.Administrative
390410185.18 360042388.32 8.43% No significant change.
expenses
Mainly due to the impact of exchange
Finance costs -13225605.47 -24492820.88 -46.00% rate fluctuations during the reporting
period.R&D expenses 98382572.86 105524488.70 -6.77% No significant change.
3. R&D Investments
√ Applicable □ Not applicable
Objectives to be Expected impact on the
Main R&D projects Purpose Project progress
achieved Company
Internationally
The 300HP gasoline outboard advanced with
Meet the demand for
To make up the blank motor has completed development independent and
high-horsepower
market of high- and entered mass production and controllable core
horsepower outboard sales. technologies and
outboard motors in
High-horsepower domestic and
motors and further Significant milestone progress has supply chain.outboard motors international markets
enhance the been achieved in the development
becoming a new profit
competitiveness of of the 200HP diesel outboard Mass production growth point for the
products. motor which has entered small- and sales in the Company.batch production. global industry
market.To develop a battery-
powered outboard
Mass production Meet market demand
motor to further The electric outboard motor has
Electric outboard and sales in the and become a new
enhance product been developed and put into mass
motors global industry profit growth point for
competitiveness in the production for sales.market. the Company.new energy outboard
motor market.Details about R&D personnel:
2025 2024 Change (%)
Number of R&D personnel 337 314 7.32%
R&D personnel as a % of total
14.01%13.90%0.11%
employees
Educational background of R&D personnel
Bachelor’s degree 141 124 13.71%
Master’s degree 50 58 -13.79%
Other 146 132 10.61%
Age structure of R&D personnel
53Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Under 30 89 80 11.25%
30-401361304.62%
Other 112 104 7.69%
Details about R&D investments:
2025 2024 Change (%)
R&D investments (RMB) 98382572.86 105524488.70 -6.77%
R&D investments as a % of
1.88%2.21%-0.33%
operating revenue
Capitalized R&D investments
as a % of total R&D 0.00 0.00 0.00%
investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable ?Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable ? Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable ? Not applicable
4. Cash Flows
Unit: RMB
Item 2025 2024 Change (%)
Subtotal of cash generated
5378576600.734762527101.9912.94%
from operating activities
Subtotal of cash used in
4504362250.134059971721.7710.95%
operating activities
Net cash generated from/used
874214350.60702555380.2224.43%
in operating activities
Subtotal of cash generated
2852888560.321623611915.9675.71%
from investing activities
Subtotal of cash used in
3236113495.792165113284.3849.47%
investing activities
Net cash generated from/used
-383224935.47-541501368.42-29.23%
in investing activities
Subtotal of cash generated
230890005.96262788352.77-12.14%
from financing activities
Subtotal of cash used in
389054999.99418138867.37-6.96%
financing activities
Net cash generated from/used
-158164994.03-155350514.601.81%
in financing activities
54Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Net increase in cash and cash
342008329.60-20224063.291791.10%
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
(1) Net cash flow generated from operating activities was a net inflow of RMB 874214350.60 mainly due to increased collection
from sales in operating activities during the reporting period.
(2) Net cash flow used in investing activities was a net outflow of RMB 383224935.47 mainly as a result of the Company’ s
investment in financial assets during the reporting period.
(3) Net cash flow used in financing activities was a net outflow of RMB 158164994.03 mainly attributable to loan repayments and
dividend distributions made by the Company during the reporting period.
(4) Net increase in cash and cash equivalents was a net inflow of RMB 342008329.60 mainly driven by higher net inflow from
operating activities and lower net outflow from investing activities during the reporting period.Explanation of why the net cash generated from/used in operating activities varies significantly from the net profit of the reporting
Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
As a % of gross Recurrent or
Amount Primary source/reason
profit not
Mainly due to the change in investment
Return on investment income recognized from the147146138.79 15.38% Yes
implementation of securities investment
during the reporting period.Mainly due to the fluctuation in the fair
Gain/loss on changes in fair
101564872.39 10.62% value of the held trading financial assets Yes
value
during the reporting period.Mainly due to the provision for inventory
Asset impairment loss -67514458.14 -7.06% write-downs and impairment of Goodwill No
during the reporting period.Non-operating income 13023560.07 1.36% No significant impact. No
Non-operating expenses 1850678.81 0.19% No significant impact. No
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
55Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Unit: RMB
31 December 2025 1 January 2025 Change in
Reason for any
As a % of total As a % of total percentage
Amount Amount significant change
assets assets (%)
Cash and bank No significant
2078919027.4523.83%1729050383.3422.97%0.86%
balances change.Accounts Mainly due to the
952021236.78 10.91% 745862825.71 9.91% 1.00% increase in sales
receivable proceed collection..No significant
Contract assets 64541120.93 0.74% 52151171.92 0.69% 0.05%
change.No significant
Inventories 1119277121.91 12.83% 1031899593.02 13.71% -0.88%
change
Long-term Mainly due to the
equity 302857592.30 3.47% 113469148.58 1.51% 1.96% increase in equity
investments investment.Mainly due to the
increased investment
Fixed assets 1084142895.08 12.43% 681980621.79 9.06% 3.37% in long-term assets
during the reporting
period.Mainly due to the
Construction in transfer to fixed
195841811.752.24%404826595.025.38%-3.14%
progress assets during the
reporting period.Right-of-use No significant
69324297.360.79%64147198.310.85%-0.06%
assets change.Mainly due to the
increase in short-
Short-term
185516009.83 2.13% 85390128.99 1.13% 1.00% term borrowings
borrowings
during the reporting
period.Mainly due to the
Contract
458557878.31 5.26% 373931068.16 4.97% 0.29% increase in sales
liability
shipments.Long-term No significant
110985297.601.27%125482485.311.67%-0.40%
borrowings change.No significant
Lease liabilities 53367241.87 0.61% 47666801.96 0.63% -0.02%
change.Overseas assets that take up a large percentage of the Company’s net asset value:
√ Applicable □ Not applicable
Control measures As a % of the Any material
Asset value Management
Asset Source Location to protect asset Return Company’s net impairment risk
(RMB) model
safety asset value or not
56Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Control measures As a % of the Any material
Asset value Management
Asset Source Location to protect asset Return Company’s net impairment risk
(RMB) model
safety asset value or not
100%
Producing and
interest of Operation
M&A 1638134659.45 Italy marketing by Good 27.15% Not
Fosber management
itself
S.p.A.
100% Producing and
Operation
interest of M&A 27256952.57 Italy marketing by Good 0.45% Not
management
EDF S.R. L itself
57Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
2. Assets and Liabilities at Fair Value
√Applicable □ Not applicable
Unit: RMB
Cumulative
Impairment
fair-value
Gain/loss on fair-value allowance
Item Opening amount changes Purchased in the period Sold in the period Other changes Closing amount
changes in the period for the
recognized
period
in equity
Financial assets
1. Financial assets
held for trading
(exclusive of 788649332.18 16299739.97 2335683282.18 2374077876.84 766554477.49
derivative financial
assets)
2. Derivative
2755081.171384678.154038758.57101000.75
financial assets
3.Other non-current
539449588.6376849471.25370411675.58169362857.36817347878.10
financial assets
Subtotal of financial
1330854001.9894533889.372706094957.762547479492.771584003356.34
assets
Non-current assets
10579534.25330000.0010909534.25
due within one year
Total of the above 1341433536.23 94863889.37 2706094957.76 2547479492.77 1594912890.59
Financial liabilities 213789778.20 431238.73 115947971.68 98273045.24
Particulars about other changes: Other changes are mainly exchange movements.
58Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting Period. □ Yes √ No
3. Assets to which the Company’s Rights Were Restricted as at the Period-End
Unit: RMB
Item Closing carrying amount Reason for restriction
Cash and bank balances 84620149.30Deposits used for obtaining bank acceptance bills and guarantees etc.Fixed assets 63466811.34For bank loans obtained by subsidiaries
Total 148086960.64
VII Investments Made
1. Total Investment Amount
√Applicable □ Not applicable
Total investment amount in 2025(RMB) Total investment amount in 2024 (RMB) Change (%)
789003153.131002404107.56-21.29%
2. Significant Equity Investments Acquired in the Reporting Period
□Applicable √Not applicable
3. Significant Non-Equity Investments of which the Acquisition Was Uncompleted in the Reporting Period
□Applicable √ Not applicable
59Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Cumulative
Gain/loss on
Opening fair-value Closing Fundin
Securit Security Initial Measurement fair-value Purchased in Sold in the Gain/loss in Accountin
Security type carrying changes carrying g
y code name investment cost method changes in the period period the period g title
amount recognized in amount source
the period
equity
Financial
Triumph
Domestically/overs 244990884. 243051668. assets Self-
600522 Science&Tec 0.00 Fair value 0.00 5421583.79 7360800.00 5828181.79
eas listed stocks 61 40 held for funded
hnology
trading
Financial
Shanghai
Domestically/overs 28763128.5 30010000.0 assets Self-
600835 Mechanical 0.00 Fair value 0.00 1246871.44 1446871.44
eas listed stocks 6 0 held for funded
&Electrical
trading
Financial
Domestically/overs 187638899. 318016652. 646869622. 150915311. assets Self-
Others 187638899.00 Fair value -3782285.00 9701240.74
eas listed stocks 00 64 75 85 held for funded
trading
Financial
Trust products Fair value 20153767.7 35080000.0 40251027.1 15214791.5
assets Self-
20153767.72231050.90231050.90
2 0 0 2 held for funded
trading
Funds 347067239.36 Fair value 347067239. 12617741.0 326272850. 565183840. 7696211.99 115852461.3 Financial Self-
60Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
36 3 67 64 8 assets funded
held for
trading
Financial
Others Fair value 233788426. 138255976 126643183 352724315.assets Self-
233788426.10564777.812807955.34
10 5.70 1.69 45 held for funded
trading
Other securities investments held at the end of
0.000.000.000.000.000.000.000.00
the period
Total 788648332. 16299739.9 233568328 252609712 168925583. 766554477.788648332.18 0.00 -- --
1872.182.183149
Disclosure date of the board announcement
March 18 2025
approving the securities investments
Disclosure date of the general meeting
announcement approving the securities April 8 2025
investments
(2) Investments in Derivative Financial Instruments
√ Applicable □Not applicable
1) Derivative Investments for Hedging Purposes in the Reporting Period
√ Applicable □Not applicable
Unit: RMB'0000
Initial Gain/loss on fair- Cumulative fair-value Purchased in the Sold in the Closing amount as %
Opening Closing
Type of derivative investment value changes in changes recognized in Reporting Reporting of the Company’s
amount amount
amount the period equity Period Period closing equity
Forward Foreign Exchange 0.00 20337.25 -284.21 0.00 15150.24 8995.97 26495.57 4.39%
Total 0.00 20337.25 -284.21 0.00 15150.24 8995.97 26495.57 4.39%
Description of significant changes in No significant change
61Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
accounting policies and specific financial
accounting principles in respect of the
Company's hedges for the Reporting Period as
compared to the prior reporting period
Actual gains/losses in the Reporting Period During the Reporting Period the actual Profit on derivative contracts for hedging purposes stood at RMB 2842.1 thousand.Results of hedges During the reporting period the Company conducted derivative investments for hedging purposes and achieved favorable hedging results.Funding source Self-funded
Risk analysis of positions held in derivatives The above-mentioned hedging transactions are mainly intended to avert and prevent risks arising from fluctuations in exchange rates. In the Rules on the
during the Reporting Period and description of Management of Financial Derivative Transaction Business formulated by the Company the operating rules review and approval authority routine
control measures (Including but not limited to management and risk control mechanisms on the financial derivative transaction business have been prescribed to standardize business operation as well as
market risk liquidity risk credit risk prevent and control related risks. The Company will strengthen the understanding and mastering of national policies and requirements of relevant governing
operational risk legal risk etc.) bodies to avoid related credit and legal risks.Changes in market prices or fair value of
derivative products during the Reporting
Period specific methods used and relevant Undue forward forex settlement and sale contracts are measured at fair value i.e. the difference between the signing price of an undue forward forex
assumption and parameter settings shall be settlement and sale contract held at the period-end and the bank’s forward forex rates at the period-end.disclosed for analysis of fair value of
derivatives
Legal matter (if applicable) N/A
Disclosure date of the announcement about the
board’s consent for the derivative investment March 18 2025
(if any)
Disclosure date of the announcement about the
general meeting’s consent for the derivative April 8 2025
investment (if any)
2) Derivative Investments for Speculative Purposes in the Reporting Period
√ Applicable □Not applicable
Unit: RMB'0000
Closing
Actual
Purchased investment
Relationship Initial Opening Sold in the Impairment Closing gain/loss in
Related Type of Start End in the amount as %
Counterparty with the investment investment Reporting allowance (if investment the
transaction derivative date date Reporting of the
Company amount amount Period any) amount Reporting
Period Company’s
Period
closing equity
62Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
China Foreign 1st 24th
Merchants N/A No Exchange 8479.74 Jan July 710.00 10721.00 11589.46 0 0.00 0.00% 158.46
Bank Options 2025 2025
Total 8479.74 -- -- 710.00 10721.00 11589.46 0 0.00 0.00% 158.46
Funding source Self-funded
Legal matter (if applicable) N/A
Disclosure date of the announcement about the board’s consent March 18 2025
for the derivative investment (if any)
Disclosure date of the announcement about the general April 8 2025
meeting’s consent for the derivative investment (if any)
Risk analysis:
1. Decision-making risk: The Company's involvement in derivatives trading is influenced by a variety of factors including international and
domestic economic policies economic conditions fluctuations in exchange rates and interest rates. Furthermore this type of trading is
inherently complex and requires a high level of specialisation thus carrying a certain degree of risk in trading decision-making processes.
2. Market risk: Financial markets are susceptible to macroeconomic conditions industry cycles and numerous other influences. Exchange
rate movements are bi-directional; in the context of forward exchange rates there's a possibility that locked-in forward exchange
transactions may lead to settlement exchange rates below the company's book rate on the delivery date potentially generating foreign
exchange losses.
3. Liquidity risk: A sudden and extreme shift in the relevant price index or managing excessively large positions could potentially result in
untimely margin calls and force the liquidation of positions thereby exposing the Company to liquidity risks.
4. Policy and legal risks: The Company may suffer losses due to alterations in the legal framework non-compliance with relevant laws
regulations or contractual breaches by counterparties leading to improper execution of contracts.Risk analysis of positions held in derivatives during the 5. Other risks: During transaction execution failing to adhere to standard procedures for derivatives trading or inadequate comprehension
Reporting Period and description of control measures (Including of derivative product information can introduce operational risks potentially leading to losses stemming from non-compliant actions or
but not limited to market risk liquidity risk credit risk unforeseen legal contingencies.operational risk legal risk etc.) Description of control measures:
1. In the Rules on the Management of Financial Derivative Transaction Business formulated by the Company the operating rules review
and approval authority routine management and risk control mechanisms on the financial derivative transaction business have been
prescribed to standardise business operation as well as prevent and control related risks.
2. The Company will diligently select qualified financial institutions for partnership and may engage experienced external professionals
when needed to offer advisory services. This ensures thorough and methodical research and analysis prior to investments thereby
minimising operational risks and performance uncertainties.
3. Throughout its business operations the Company and its associates rigorously comply with applicable national laws and regulations to
avert legal hazards. They conduct regular supervision and inspections to ensure the derivatives business's standardisation internal control
efficacy and information disclosure accuracy. They closely monitor shifts in domestic and international regulatory policies and changes to
relevant rules proactively adjusting hedging strategies accordingly to mitigate potential policy risks well ahead of time.
4. The Company will steadfastly uphold cautious investment principles consistently enhancing its analysis and research on economic
policies market conditions and environmental shifts promptly adjusting its investment strategies and scales as needed. Moreover it will
63Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
continuously fortify the professional education of its team members elevating the proficiency of its practitioners.
5. The Company’s Board of Directors has authorized the Audit Committee of the Board to review the necessity feasibility and risk control
measures of derivative transactions. The internal audit department of the Company is responsible for supervising and verifying the
implementation of derivative transactions and reports to the Audit Committee of the Board of Directors.Changes in market prices or fair value of derivative products
during the Reporting Period specific methods used and
Based on market value changes
relevant assumption and parameter settings shall be disclosed
for analysis of fair value of derivatives
Description of significant changes in accounting policies and
specific financial accounting principles in respect of the
No significant change
Company's derivatives for the Reporting Period as compared to
the prior reporting period
64Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□Applicable √ Not applicable
No such cases in the Reporting Period.
3.Explanation of the implementation of the Company’s major asset sale project in 2025
On 28 November 2025 the Company convened a Board meeting and approved the Proposal for Major Asset
Sale and related matters and on 29 November disclosed the major asset sale for the first time. The Company
intends to sell by way of cash consideration its 100% equity interest in Guangdong Fosber Intelligent Equipment
Co. Ltd. (Fosber Asia) and 100% equity interest in Tiru?a (Guangdong) Intelligent Equipment Manufacturing Co.Ltd. (Tiru?a Asia) to Foresight US BidCo Inc. (hereinafter referred to as Foresight US). Meanwhile its wholly-
owned subsidiary Dong Fang Precision (Netherland) Co?peratief U.A. (hereinafter referred to as Dongfang
Precision (Netherlands)) intends to sell by way of cash consideration its 100% equity interest in Fosber S.p.A.and its subsidiaries (Fosber Group) to Foresight Italy BidCo S.p.A. (hereinafter referred to as Foresight Italy).On 30 January 2026 the Company convened a Board meeting and approved the Major Asset Sale Report
(Draft) prepared based on the audit report and valuation report relating to this transaction along with other
relevant matters and disclosed the corresponding announcements.On 12 March 2026 the Company completed its response to the Letter of Inquiry Regarding the Major Asset
Sale of the Guangdong Dongfang Precision Science & Technology Co. Ltd. and disclosed the written reply
verification opinions from relevant intermediary institutions and the updated and revised Major Asset Sale Report
(Draft) (Revised Version). The Company will convene a general meeting of shareholders on 27 March 2026 to
consider matters related to this major asset sale.As at the disclosure date of this report the major asset sale has not yet been completed. The target companies
involved are operating normally with all business activities proceeding in an orderly manner. The Company and
relevant parties are proceeding with the major asset sale in an orderly manner.IX Principal Subsidiaries and Joint Stock Companies
√ Applicable □ Not applicable
Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:
Unit: RMB
Name Relations Principal Register Total assets Net assets Operating Operating Net profit
65Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
hip with activities ed revenue profit
the capital
Company
R&D
processing
manufacturi
ng and
marketing
of
corrugated EUR1.5
Fosber Subsidiar 2914774595 1638134659 3143661441 552468613 443511352
cardboard 6
Group y .12 .45 .09 .43 .14
production million
lines and
parts as
well as
provision of
after-sales
services
Shunyi
Investment
is
principally
engaged in
business
Shunyi entity and
Subsidiar RMB10 927369576.5 454124976.4 1015705109 124801994 105566372
Investm project
y million 7 2 .39 .80 .72
ent investments
etc. It is
the direct
controlling
shareholder
of Parsun
Power.Changes in subsidiaries acquired or disposed of during the reporting period:
□ Applicable ? Not applicable
Information regarding major holding and affiliated companies:
□ Applicable ? Not applicable
X Structured Bodies Controlled by the Company
√ Applicable □ Not applicable
1. In March 2022 Hainan Yinen Investment Co. Ltd. a wholly-owned subsidiary of the Company participated in the
capital contribution to Changzhou Xinchen Venture Capital Partnership (Limited Partnership) for the purpose of
indirectly investing in Sinoscience Fullcryo Technology Co. Ltd. (referred to as "Fullcryo" in this Report) and
Sinoscience Fullcryo (Zhongshan) Equipment Manufacturing Co. Ltd. by making a capital contribution to a limited
partnership and obtained non-controlling interests of the two companies.
2. In December 2025 Hainan Yinen Investment Co. Ltd. a wholly-owned subsidiary of the Company participated in
the capital contribution to Changzhou Xinchen No.2 Venture Capital Partnership (Limited Partnership). The purpose of
this partnership is to make equity investments in Sinoscience Fullcryo Technology Co. Ltd. through investing in a
66Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
special fund.As the limited partners of the above-mentioned 2 partnership Yineng Investment accounts for 94.86% of the total
capital contributions in both of the 2 partnership. Considering the partnership's agreements on investment orientation
investment decisions operation and management income apportionment and loss bearing and the fact that Yineng
Investment accounts for the majority of the capital contributions to the partnership the above-mentioned 2 partnership
is included in the consolidated statements of Dongfang Precision as a "structured body controlled by the Company"
from the perspective of commercial substance and after complying with the Accounting Standard for Business
Enterprises and referring to the professional opinions of the independent auditor.XI Prospects
(I) The Company's development strategy
Business purposes of the Company: To become an industrial group with high influence in its areas trust from
customers and shareholders and respect from employees; uphold the business philosophies of "Integrity
Innovation and Excellence" and achieve mutual benefits with customers shareholders employees and the society.
1. Corporate strategy
* Technology transformation and upgrading strategy:
The State attaches great importance to the development of new quality productive forces. In September 2023
General Secretary Xi Jinping firstly proposed the concept of “new quality productive forces” during an inspection
in Heilongjiang and emphasised during a collective study session of the Political Bureau of the CPC CentralCommittee that “developing new quality productive forces is an intrinsic requirement and a key focus forpromoting high-quality development”. In July 2024 the Third Plenary Session of the 20th CPC Central
Committee adopted the Decision of the Central Committee of the Communist Party of China on Further
Deepening Reform Comprehensively to Advance Chinese Modernisation which clarified the need to improve
institutional mechanisms for developing new quality productive forces in accordance with local conditions. In
October 2025 the Fourth Plenary Session of the 20th CPC Central Committee deliberated and adopted the
Proposal of the Central Committee of the Communist Party of China for Formulating the 15th Five-Year Plan for
National Economic and Social Development establishing the cultivation and development of new quality
productive forces as a strategic priority and promoting the transition of the economy from traditional factor-driven
growth to an innovation-led advanced productive system.Since 2020 Dongfang Precision has proposed and actively advanced its “technology transformation andupgrading strategy”. Through continuous technological innovation and industrial upgrading the Company has in
recent years continuously broken through the limitations of domestically produced high-horsepower gasoline
outboard motors and has now become the first enterprise in China to mass-produce 300-horsepower gasoline
outboard motors filling a gap in China’s manufacturing of high-horsepower gasoline outboard motors. In addition
the Company has proactively laid out and cultivated strategic emerging industries that represent the future
direction of manufacturing and possess significant growth potential positioning them as a strategic driver for its
long-term sustainable development. It remains firmly committed to the national strategy for developing new
quality productive forces and proactively carries out forward-looking strategic transformation and resource
restructuring.* “1+N” strategic development model
(2) Boundary-breaking ecosystem co-creation: strategic investment to jointly build “new qualityproductive forces clusters” in strategic emerging industries
67Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
The Company focuses on “new quality productive forces” as the core theme of national strategic emerging
industries and future industries closely aligning with the national strategic direction for developing new quality
productive forces. Centring on the main front and two key directions for building new quality productive forces—
strategic emerging industries and future industries—the Company has defined two focal areas for its external
development strategy: “AI + robotics” and “key structural materials for controllable nuclear fusion + nuclearpower equipment” establishing an industrial chain investment layout in these priority areas. In 2025 the
Company’s external business development was primarily centred on “strategic investment” as detailed below:
* “AI + robotics” sector
In the 2025 Government Work Report China included “embodied intelligence” and “intelligent robots” for
the first time as key directions for cultivating future industries presenting new opportunities for the intelligent
upgrading of China’s manufacturing sector. Dongfang Precision has deepened its industrial layout in robotics and
embodied intelligence by implementing a “clustered strategic investment” approach in this field.From 2025 to the disclosure date of submission and disclosure of this report the Company’s strategic
investments have focused on the “AI + robotics” track. Multiple equity investments have been made in this field
forming a clustered strategic investment portfolio and establishing an ecosystem layout across the embodied
intelligence industrial chain including intelligent brains core components body manufacturing and application
scenarios as detailed in the table below:
Industrial Chain
Segment No. Name of Invested Enterprise
Principal Products of the Invested
Enterprise
1 Shenzhen Ruoyu Technology Co. Ltd. Large Multi-modal models artificialintelligence system
Intelligent brain 2 Shanghai Junao Panshi TechnologyCo. Ltd. Brain-inspired embodied brain system
3 X-Era AI (Shenzhen) Technology Co.Ltd. Physical space intelligence engine
4 Hangzhou Heiman Technology Co.Ltd. Waterproof dexterous hand
5 Beijing Huixi Intelligent InformationCore Technology Co. Ltd. High-computing-power AI chips
components 6 Linkerbot (Beijing) Technology Co.Ltd. High-degree-of-freedom dexterous hand
7 Shenzhen Heju Intelligent ControlTechnology Co. Ltd. Intelligent controllers
Body 8 Leju (Shenzhen) Robotics Co. Ltd. Humanoid robots
manufacturing 9 DongFang Primo Robotic(Guangdong) Co. Ltd Humanoid robots and components
Application 10 Guangdong Jaten Robot & Automationscenarios Co. Ltd. Automated guided vehicles (AGV)
Note: Dongfang Precision strictly complies with the Accounting Standards for Business Enterprises in accounting
for equity investments in the above-mentioned enterprises within the Company’s consolidated financial statements. In
accordance with the relevant provisions of the Accounting Standards for Business Enterprises except for DF Primo
Robotic (in which Dongfang Precision holds an 80% equity interest) the other enterprises listed above were not
included in the scope of consolidation for the Reporting Period.Dongfang Precision’s clustered strategic investments in the “AI + robotics” field are centred on “building afull-industry-chain ecosystem for embodied intelligent robots and empowering the intelligent upgrading oftraditional industries”. The Company focuses on developing a “strategic investment + industrial collaboration”
model integrating its own resource endowment and accumulated capabilities in equipment manufacturing with
the industry-leading technologies products and application experience of target enterprises in robotics and AI
large models thereby achieving efficient integration. It seeks collaboration in manufacturing application
scenarios and market expansion promoting co-creation of value and win-win outcomes across the industrial chain.
68Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
In 2025 Dongfang Precision made an equity investment in Leju Robot holding a 6.3165% equity interest
(Note: The shareholding ratio is based on the latest industrial and commercial registration information of the
invested enterprises. Any differences in decimal places are due to rounding to four decimal places). Leju Robot
focuses on core robotics technology research and the R&D and manufacturing of intelligent robot products. It is a
national-level specialised and sophisticated “little giant” enterprise possessing fully independent intellectual
property rights in both hardware and control systems. It has mastered a series of advanced technologies ranging
from overall robot structural design and core component manufacturing to AI algorithm development. And it has
successively launched multiple intelligent robot products and derivatives and continues to focus on the
application of robotics across diverse scenarios including industrial intelligent manufacturing commercial
services scientific research and education and household services.In July 2025 Dongfang Precision and Leju Robot entered into a Strategic Cooperation Agreement under
which both parties carried out in-depth collaboration in areas including the manufacturing and services of
intelligent equipment products application expansion and market development and promotion. In September
2025 Dongfang Precision and Leju Robot jointly established DF Primo Robotic in which Dongfang Precision
holds an 80% equity interest. DF Primo Robotic will serve as the primary platform for Dongfang Precision as a
listed company to develop strategic emerging industries leveraging Dongfang Precision’s accumulated
experience and resource advantages in high-end equipment manufacturing together with Leju Robot’ strengths in
technology R&D and application to advance the large-scale development of intelligent equipment products.(II) The Company’s main business plan for 2026
1. Promoting the successful completion of the Company’s major asset sale project
On 28 November 2025 the Company convened a Board meeting and approved the Proposal for Major Asset
Sale and related matters and on 29 November disclosed the major asset sale for the first time. The Company
intends to sell by way of cash consideration its 100% equity interest in Guangdong Fosber Intelligent Equipment
Co. Ltd. (Fosber Asia) and 100% equity interest in Tiru?a (Guangdong) Intelligent Equipment Manufacturing Co.Ltd. (Tiru?a Asia) to Foresight US BidCo Inc. Meanwhile its wholly-owned subsidiary Dong Fang Precision
(Netherland) Co?peratief U.A. (hereinafter referred to as Dongfang Precision (Netherlands)) intends to sell by
way of cash consideration its 100% equity interest in Fosber S.p.A. and its subsidiaries (Fosber Group) to
Foresight Italy BidCo S.p.A.On 30 January 2026 the Company convened a Board meeting and approved the Major Asset Sale Report
(Draft) prepared based on the audit report and valuation report relating to this transaction along with other
relevant matters and disclosed the corresponding announcements.On 12 March 2026 the Company completed its response to the Letter of Inquiry Regarding the Major Asset
Sale of the Guangdong Dongfang Precision Science & Technology Co. Ltd. and disclosed the written reply
verification opinions from relevant intermediary institutions and the updated and revised Major Asset Sale Report
(Draft) (Revised Version). The Company will convene a general meeting of shareholders on 27 March 2026 to
consider matters related to this major asset sale.As at the disclosure date of this report the target companies involved in this major asset restructuring are
operating normally with all business activities proceeding in an orderly manner. The Company and relevant
parties are proceeding with the major asset restructuring in an orderly manner.In 2014 based on its development strategy of “high-end intelligent equipment manufacturing” Dongfang
Precision extended and integrated the upstream and downstream of its industrial chain and obtained a controlling
interest in Fosber Group through cross-border acquisitions. Over the past decade Dongfang Precision has fully
unlocked the operational potential of Fosber Group contributing considerable profits to the Company. However
in recent years the international geopolitical environment has undergone profound changes. Amid increasingly
complex global conditions the difficulty and complexity of maintaining the current market scale of the corrugated
line business or achieving further breakthroughs will increase significantly while geopolitical risks and
uncertainties associated with the related business have also risen rapidly.With the continuous expansion of Fosber Group’s business scale and under the overall strategic deployment
of continuously consolidating the existing water powersports equipment business while prioritising the
69Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
implementation and commercialisation of strategic emerging industries the Company has faced increasing cross-
border management pressure. Dispersed resource allocation and management focus have objectively constrained
the Company’s strategic focus on transformation and upgrading as well as its operational efficiency. In light of
this in order to optimise and focus resource allocation strengthen development foundations and closely align
with the national strategic direction of new quality productive forces the Company has prudently decided to
reduce its international management radius sell the target assets and shift its strategic focus towards more
sustainable and higher-growth strategic emerging industries thereby promoting high-quality development of the
listed company.This transaction represents a market-oriented asset sale by Dongfang Precision. Following multiple rounds of
negotiations with the counterparty the transaction consideration was ultimately agreed at a price significantly
higher than the carrying amount of the target company’s net assets which will generate substantial investment
returns for the Company. Upon completion of this transaction the Company’s current assets total assets and net
assets in the consolidated financial statements will increase significantly while the asset-liability ratio will
decrease markedly and risk resilience will be substantially enhanced laying a solid foundation for accelerating
industrial transformation and upgrading and achieving high-quality development. Taking into full consideration
future strategic development plans investment returns and other factors the Company has after prudent
deliberation determined that the timing for selling the target companies is appropriate and will help safeguard the
interests of the Company and all shareholders.Upon completion of this transaction the Company will no longer operate the corrugated cardboard
production line (including corrugated rollers) business. However corrugated box printing and packaging lines
digital printers and industrial Internet industry solutions within the intelligent packaging equipment business will
remain important components of the listed company’s business. This transaction will not have a material impact
on the industrial chain synergies or production and operations of the Company’s other intelligent packaging
equipment businesses in terms of intellectual property customer resources sales channels or procurement costs. It
will not result in restrictions on technology qualifications or market access for intelligent packaging equipment
businesses nor will it affect the Company’s competitive position in its industry.
2. Water powersports equipment business: Breakthroughs in global markets and enhancement of
R&D and production capacity
Parsun Power a controlled subsidiary will focus on three key areas—market expansion product R&D and
capacity building—to enhance its core competitiveness in the global outboard motor market.Market side: a) aligning with leisure and entertainment consumption demand such as the yacht economy
further deepening presence in and strengthening the domestic market while reinforcing a dual-driven model of
distribution and direct sales; b) further improving the global sales and service network strengthening penetration
of mid-to-high horsepower and electric products in mature markets such as Europe and North America andcontinuously developing emerging markets including Africa Southeast Asia and countries along the “Belt andRoad Initiative.”
Product side: further increasing Parsun Power’s global market share and supporting its growth into a world-
class water powersports equipment supplier. Following the completion of the aforementioned major asset sale
Dongfang Precision intends to allocate more resources to the water powersports equipment industrial chain
focusing on the R&D production and sales of new products such as high-horsepower gasoline outboard motors
electric outboard motors mixed-fuel outboard motors and related products. By applying advanced production
management models and intelligent manufacturing technologies the Company will build core capabilities and
achieve continuous improvement of equipment. Parsun Power will build a strong technological moat through its
“fuel + electric” dual-track technologies and its “gasoline–diesel–electric” outboard motor product matrix. It will
horizontally expand its product lines through breakthroughs in high-horsepower fuel-powered models and
vertically enhance its product portfolio through R&D breakthroughs in electric models strengthening the
application of self-developed core technologies and increasing the technological premium of its products.Capacity side: In May 2025 Parsun Power’s new headquarters in Suzhou Jiangsu Province was officially
put into operation. According to the project plan once the new workshops reach their target production capacity
70Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
in the future Parsun Power will increase its annual production capacity by over 76000 outboard motors. As
market demand increases Parsun Power will focus on building an ecosystem for the water powersports equipment
industry further enhancing the market share and influence of Chinese brands in this field in the international
market.
3. Fully advancing the strategic emerging industries segment
DF Primo Robotic a controlled subsidiary jointly established by Dongfang Precision and Leju Robot with
Dongfang Precision holding an 80% equity interest will serve as the primary platform for the listed company to
develop strategic emerging industries. Leveraging Dongfang Precision’s accumulated experience and resource
advantages in high-end equipment manufacturing together with Leju Robot’ strengths in technology R&D and
application it will advance the large-scale development of intelligent equipment products.Following the completion of the aforementioned major asset sale Dongfang Precision will take DF Primo
Robotic as the development platform for strategic emerging industries with a focus on investment in product
iterative R&D and manufacturing capability development (including plant construction procurement of
production equipment inventory funding and working capital). Meanwhile the listed company will actively
expand the intelligent equipment industrial chain ecosystem making key breakthroughs in software core
components and complete machine manufacturing strengthening industrial chain collaboration and ensuring
supply chain security and autonomy.
4. Deeply exploring “AI + smart factories”
Product side: As the transformation and upgrading of domestic industrial enterprises continues to deepen
and AI and robotics are progressively applied in industrial enterprises Dongfang Digicom will continue to
upgrade its “factory-wide intelligent logistics system” specifically by: a) introducing robotic inspection and
robotic return-and-labelling functions into the logistics system to further increase the level of automation; b)
embedding vertical large models for the packaging industry into the Interlink Micro Mes system of printing
machines leveraging AI technologies to achieve intelligent and automated printing machine set-up; c) further
enhancing the intelligence level of the plant-wide Mes system to gradually realise fully unmanned intelligent and
digital management across the entire process from production to delivery for packaging industry customers; d)
further developing after-sales service management systems remote diagnostics platforms and predictivemaintenance platforms to support robotics-related business; e) planning the establishment of a “data trainingground” to address industry data bottlenecks forming effective datasets through data collection of training ground
training industry-specific scenario models and embedding them into existing digital platforms to extend the AI
capabilities of traditional digital platforms.Market side: Industrial Internet industry solutions will not be limited to Dongfang Precision’s intelligent
packaging equipment products but will also be applicable to packaging equipment of other companies within the
industry. The Company will provide a broader range of industry customers with products and services covering
production line intelligence integrated production and operations and intelligent business decision-making.Through digital transformation consulting it will drive product sales enabling synergy between product sales and
consulting services and forming a closed loop in which “service solutions drive product sales”.
5. Intelligent packaging equipment business: Deepening core technologies and developing new growth
drivers
(1) Corrugated box printing and packaging lines
Product side: The Company will continue to strengthen collaboration in R&D design manufacturing and
supply chain coordination maintaining an integrated model covering R&D production procurement sales and
services. It will continue to optimise and upgrade mature products such as GT/GTS HBL and FD advance the
R&D and technological breakthroughs of new products such as HS and improve supporting equipment including
pre-feeding systems and vacuum stacking systems.Market side: The Company will continue to consolidate its market share in mature markets while focusing on
expanding into Latin America South America and countries along the “Belt and Road Initiative”: a) In Latin
America and South America Dongfang Precision (China) will collaborate with Dongfang Precision (Europe) for
71Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
market development; b) In the “Belt and Road Initiative” markets the Company will establish local sales and
service teams and gradually transition from an agency-based model to a direct sales model.
(2) Digital printers
Product side: The Company will continuously optimise mature products such as the Multi Pass series and
Single Pass increase investment in proprietary inkjet control systems strengthen the ink consumables business
optimise pre-press in-press and post-press processes and advance iterative upgrades of white ink and colour
printing technologies enabling environmentally friendly printing to benefit more box packaging enterprises and
users.Market side: a) The Company will continue to strengthen market expansion in high-definition colour printing
while optimising sales models and after-sales services to further increase market share; b) The Company will
maintain a dual approach of domestic direct sales and overseas agency partnerships completing UL/CE
certification and meeting the requirements for large-scale entry into European and North American markets.(III) Possible risks and countermeasures
1. Risk of operational performance fluctuations arising from the major asset sale
Upon completion of the aforementioned major asset sale the listed company Dongfang Precision will divest
its corrugated cardboard production line (including corrugated rollers) business. The revenue and net profit of the
target companies proposed for sale account for a relatively high proportion of the corresponding financial
indicators in the listed company’s consolidated financial statements. Although the listed company’s remaining
existing businesses (excluding those of the target companies) still maintain a certain scale and the strategic
emerging industries in manufacturing it has laid out are gradually being implemented a short-term decline in the
scale of operating revenue and net profit following the completion of the transaction cannot be avoided. In
addition although the listed company will obtain substantial cash and investment income from this transaction
such investment income from the transaction constitutes non-recurring gains or losses. Investors are advised to
pay attention to the risk of a decline or fluctuation in the listed company’s operating performance resulting from
the asset sale. Upon completion of this transaction there is a possibility that the Company’s earnings per share for
the current period may be diluted as a result of the transaction. Investors are hereby reminded to pay attention to
the risk of dilution of immediate returns resulting from this transaction.Countermeasures:
(1) Effectively utilising the cash proceeds recovered from the transaction increasing investment in the water
powersports equipment business and further focusing on strategic emerging industries in manufacturing to
achieve high-quality development of the listed company.Dongfang Precision will fully utilise the cash proceeds recovered from the transaction to provide stronger
financial support for the development of its existing businesses. Upon completion of this transaction the listed
company will concentrate its efforts on developing the water powersports equipment business further focusing on
strategic emerging industries in manufacturing achieving high-quality development and enhancing its market
competitiveness and profitability.
(2) Adhering to standardized operations improving corporate governance and providing institutional
safeguards for the company’s development. Dongfang Precision will strictly comply with the Company Law the
Securities Law and the Code of Corporate Governance for Listed Companies as well as other relevant laws
regulations and normative documents. It will continuously improve corporate governance to ensure that
shareholders can fully exercise their rights that the Company operates in a standardised manner with scientific
decision-making strong execution effective supervision and efficient operations safeguarding the overall
interests of the Company particularly the legitimate rights and interests of minority shareholders and providing
institutional guarantees for the company’s development.
(3) Further improving the company’s profit distribution system and strengthening investor returns. In
accordance with the Articles of Associations and the Guidelines for the Regulation of Listed Companies No. 3—
Cash Dividends of Listed Companies as well as other relevant laws regulations and normative documents the
Company has further clarified the specific conditions ratios distribution forms and conditions for stock dividends
72Guangdong Dongfang Precision Science & Technology Co. Ltd Annual Report 2025
in its profit distribution particularly cash dividends. It has also improved the decision-making procedures and
mechanisms for profit distribution and the principles for adjusting profit distribution policies thereby
strengthening the protection mechanism of the rights and interests of minority investors. Upon completion of the
transaction the Company will continue to strictly implement its existing dividend policy and where conditions
for profit distribution are met actively promote profit distribution to shareholders and strive to enhance
shareholder returns.
2. Potential risks of financial investment business
In recent years the Company has arranged some of its idle owned funds to carry out financial investment
business such as securities investment and entrusted wealth management in an appropriate manner based on the
actual and development needs. There are certain risks of carrying out the above business due to fluctuations in the
financial market and uncertainty of income; and the risk that the Company may suffer certain investment losses in
case of risk events in the process of wealth management activities in terms of investment strategies and use of
funds.Countermeasures:
On the premise that the funds required for the daily operation of the main business will not be affected the
Company reasonably controls the capital scale for financial investment; it establishes and improves the internal
control system and mechanism standards for securities investment and entrusted financial management and
strengthens the risk control management of securities investment business safeguard the safety of investment
funds and strictly control the risk exposure. In accordance with the economic situation and changes in the
financial market it continuously tracks and analyses the progress of securities investment and the investment of
funds the progress of project investment and the performance of the capital market and timely takes
corresponding preservation measures to control investment risks.
3. Risk that the development of the strategic emerging industries business division may fall short of
expectations
As a frontier field “AI + robotics” continues to attract widespread attention from the market industry
society and the media. DF Primo Robotic a controlled subsidiary of the Company established in September 2025
is positioned as Dongfang Precision’s platform for developing strategic emerging industries with a core focus on
advancing the large-scale development and industrial application of “AI + robotics” products.However the “AI + robotics” field remains in a stage of continuous technological breakthroughs exploration
of commercial application scenarios and rapid iteration. The large-scale commercialisation of such technologies
requires overcoming multiple barriers including technological reliability product quality stability market
acceptance cultivation and adaptation to legal and regulatory frameworks. If future progress in key technological
breakthroughs product quality stability and practical application scenarios falls short of expectations it may slow
the overall development of the sector. If the cultivation of downstream application market demand lags behind it
will directly affect the overall development of the industry and in turn adversely impact the Company’s business
expansion and revenue realisation in the strategic emerging industries segment. Meanwhile external factors such
as industry regulatory policies the development of industry standard systems and public acceptance may also
constrain the commercialisation of related products. If the overall progress in core technological breakthroughs
product quality and market cultivation falls short of expectations the commercial promotion of relevant products
may face a risk of material delay.Countermeasures:
The Company will dynamically adjust capital expenditure and the pace of industrialisation in line with
technological development application implementation and commercialisation progress and will reasonably
control the scale of investment in the strategic emerging industries segment to avoid operational risks arising from
blind and excessive investment. It will also conduct regular comprehensive assessments of factors such as the
industry development environment technological iteration market demand and policy changes adjust its business
development strategies in a timely manner optimise its business layout where necessary and mitigate the impact
of overall industry risks on the Company’s operations and development.
73Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
XII Communications with the Investment Community such as Researches Inquiries and Interviews
√Applicable □ Not applicable
Type of the Main discussions and
Way of Index to the relevant
Date Place communicat Communication party materials provided by the
communication information
ion party Company
Introduction of the Company's
HSK Asset Management Zhongyi Capital Constant Surplus
Company operation competitive cninfo.com
Fund Yunxi Fund FE Horizon Plum Ventures Guoling Asset
13 Feb 2025 Conference Field Research Institutes advantages and future
Zhiyuan Investment Dianrun Investment Huishang Bank http://www.cninfo.co
Room strategic planning and
Tebon Securities China Galaxy Zhongtai Securities CBN m.cn
answering questions
Introduction of the financial
Company GF Fund Lion Fund Bosera Fund Hongyi Asset results of FY2024 and the
Management CITIC Securities AIA Life Guoxin Securities cninfo.com
Conference Online Company's operation18 Mar 2025 Institutes Juzhou Investment Dacheng Fund ChinaAMC Duoxin
communication competitive advantages and http://www.cninfo.co
Investment China Universal CCB Pension Hony Yuanfang
Room future strategic planning and
m.cn
Fund BY Fund
answering questions
New Fortune Private Equity (Shenzhen) Blue Ocean Private
Fund (Guangzhou) Hongzhou Investment Management
Introduction of the Company's
(Shenzhen) Runyuan Private Fund (Shenzhen) Hexin Private
Company operation competitive cninfo.com
Fund (Shenzhen) Lianrun Oriental Equity Investment Fund
28 Mar 2025 Conference Field Research Institutes advantages and future
Shanyue Private Fund (Guangzhou) Qingping Private Fund http://www.cninfo.co
Room strategic planning and
(Hainan) China Guangfa Bank Chaoshang Investment m.cn
answering questions
Ruisheng International Capital Yuemin Investment Private
Fund Northeast Securities
Founder Securities SDIC Securities CICC CSC CITIC Introduction of the
Company
Online Securities BOC Securities Guohai Securities Kaiyuan background and objectives of
cninfo.com
30 Nov 2025 Conference Institutes
communication Securities SW Securities East Money Securities Cinda the Company's major asset http://www.cninfo.co
Room Securities Zheshang Securities TF Securities Western disposal projects the m.cn
Securities Industrial Securities Yongxing Securities BofA Company's future
74Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Type of the Main discussions and
Way of Index to the relevant
Date Place communicat Communication party materials provided by the
communication information
ion party Company
Securities; Penghua Fund Xinhua Fund Fullgoal Fund development plans and other
Fortune SG Fund Xiangcai Fund; Great Wall Fortune relevant matters as well as
Insurance Guofu Life Bohai Life; Dingtian Investment answering questions.(Shanghai) Deyuan Investment (Shenzhen) Chengshi Asset
Management (Shanghai) Xuanbu Investment (Shanghai)
Qingli Investment (Shanghai) Gentai Investment (Shenzhen)
Lianjun Asset Management Rongguo Investment (Dongguan)
Gao Teng International Asset Management Zhengyuan
Investment Duncheng Investment (Xi'an) Juzhou Investment
(Guangdong) Honghua Capital Management (Shenzhen)
Binghe Asset Management (Shanghai) Deruo Private Fund
(Zhuhai) Fengyi Investment (Shanghai) Rongguang Private
Fund (Beijing) Junrong Asset Management (Suzhou) Jinxi
Investment Everbright Pramerica Hongluo Private Fund
XIII Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□ Yes √ No
ⅪV. Implementation of the “Quality and Earnings Dual Improvement” Action Plan
whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□ Yes √ No
75Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part IV Corporate GovernanceEnvironmental and Social
Responsibilities
I General Information of Corporate Governance
During the Reporting Period the Company strictly abided by laws and regulations and rules and normative documents of
regulatory authorities including the Company Law the Securities Law the Code of Corporate Governance for Listed Companies
the Rules for Stock Listing of Shenzhen Stock Exchange and the Shenzhen Stock Exchange Guideline No. 1 for the Self-regulation
of Listed Companies - Standardized Operation of Listed Companies on the Main Board continued to improve the Company's
corporate governance structure refine internal management and control policies and further strengthen the Company's capability of
governance.(I) Shareholders and general meeting
During the Reporting Period the Company convened and held general meetings in a standard manner in strict accordance with
laws and regulations. The convening and holding procedures of general meetings the qualifications of attendants to the meetings and
the voting procedures of the meetings met the provisions of the Company Law Rules for the Shareholders' Meetings of Listed
Companies Articles of Associations and Rules of Procedure for General Meeting. Lawyers were engaged to witness the general
meetings of shareholders and issued legal opinions on their legitimacy to ensure fair treatment toward and fully execution of rights of
all shareholders especially minority shareholders.(II) The Company and controlling shareholders
During the Reporting Period the Company properly handled the relationship between it and the controlling shareholders in
accordance with the Company Law Securities Law Articles of Association and relevant provisions of the securities regulatory
authority. The controlling shareholders of the Company acted in a normative manner could exercise their rights and assume their
obligations according to law did not directly or indirectly interfere with the decision-making and business activities of the Company
beyond the general meeting of shareholders. The Company was independent of the controlling shareholders in terms of business
staffing assets organization and finance and had an independent and complete business system and capability to operate
independently. The Board of Directors and internal organs of the Company operated independently.(III) Directors and the Board of Directors
During the Reporting Period directors of the Company were elected in strict accordance with the director election procedure
specified in the Articles of Association. The Board of Directors of the Company was composed of seven directors including three
independent directors and the number of members and composition of it met legal and regulatory requirements. During the
Reporting Period all directors of the Company actively and strictly complied with the Company Law Articles of Association and
Rules of Procedure for the Board of Directors earnestly attended meetings of the Board of Directors and general meetings of
shareholders and took an active part in relevant training to improve their business skill and were diligent and responsible. The
convening holding and voting procedure and daily operation of the meetings of the Board of Directors of the Company complied
with relevant regulations.(IV) Independent directors and committees of the Board of Directors
During the Reporting Period independent directors of the Company honestly diligently and independently performed their
duties in accordance with the Company Law and regulations normative documents and implementation rules of other departments
actively attended relevant meetings earnestly deliberated Proposals of the Board of Directors gave independent advice about the
major issues of the Company effectively protected the interests of the Company and shareholders especially small and medium
shareholders and well played their role to supervise as independent directors. During the reporting period the Company strictly
implemented the latest version of the Measures for the Administration of Independent Directors of Listed Companies issued and
effective by the China Securities Regulatory Commission (CSRC) during the period. It further standardized the functions and
authorities of the special committees of the Board of Directors revised the Detailed Implementing Rules of the Audit Committee of
the Board of Directors the Detailed Implementing Rules of the Nomination Committee of the Board of Directors and the Detailed
76Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Implementing Rules of the Remuneration and Appraisal Committee of the Board of Directors which were reviewed and adopted by
the Board of Directors..(V) Adjustments to the governance structure the removal of the Supervisory Committee the establishment of employee
representative directors and revisions to related governance policies
During the Reporting Period in accordance with the Company Law the CSRC’s Transitional Arrangements for the
Implementation of Supporting Institutional Rules for the New Company Law and the Guidelines for Articles of Association of Listed
Companies and other relevant regulations to further enhance corporate governance efficiency and streamline management processesthe Company convened general meetings of shareholders and Board meetings approved matters including the “discontinuation of theSupervisory Committee and supervisory positions” and simultaneously amended the Articles of Association. In accordance with the
Company Law statutory powers previously exercised by the Supervisory Committee shall be undertaken by the Audit Committee of
the Board of Directors.During the Reporting Period in accordance with the Company Law the CSRC’s Guidelines for Articles of Association of
Listed Companies and other relevant regulations to further enhance standardised operations and improve and optimise the corporategovernance structure the Company convened general meetings of shareholders and Board meetings approved the “establishment ofone employee representative director on the Board of Directors” and simultaneously amended the Articles of Association. The
employee representative director shall be democratically elected by employees of the Company through the employee representatives’
congress the general employee meeting or other forms.Following approval of the above matters by the general meeting of shareholders the Company in accordance with the latest
laws regulations guidelines and the revised Articles of Association made corresponding amendments to certain governance policies
including the Rules of Procedure for the General Meeting the Rules of Procedure for the Board of Directors the Rules for
Independent Directors and the Rules of the Audit Committee of the Board of Directors.(VI) Information disclosure and transparency
During the Reporting Period the Company performed its obligation of information disclosure in strict accordance with laws
and regulations and the Management Measures for Information Disclosure and disclosed information in a true accurate complete
and timely manner and made no false records misleading statements or major omissions by which it ensured that all investors and
stakeholders had equal opportunities to obtain the Company's information increased the Company's information transparency and
effectively played its role in protecting the right to know of small and medium investors.During the reporting period in order to enhance the Company’s ability to respond to various public opinions establish a rapid
response and emergency disposal mechanism timely and properly address the impacts of various public opinions on the Company’s
stock price commercial reputation and normal production and operation activities and effectively protect the legitimate rights and
interests of investors the Company formulated the Public Opinion Management System in accordance with the Stock Listing Rules of
Shenzhen Stock Exchange the Self-Regulatory Guidelines for Listed Companies of Shenzhen Stock Exchange No. 1 – Standardized
Operation of Main Board Listed Companies and other rules guidelines and regulatory documents. The system took effect upon
approval by the Board of Directors.During the reporting period to further regulate the suspension and exemption of information disclosure by the Company and
relevant information disclosure obligors and protect the legitimate rights and interests of investors the Company formulated the
Management System for the Suspension and Exemption of Information Disclosure in accordance with the Measures for the
Administration of Information Disclosure by Listed Companies the Provisions on the Administration of Suspension and Exemption
of Information Disclosure by Listed Companies and other measures and provisions. The system took effect upon approval by the
Board of Directors.Were there any significant differences between the actual situation of the corporate governance and the applicable laws and
regulations as well as rules published by China Securities Regulatory Commission on the governance of listed companies
□ Yes √ No
There were not significant differences between the actual situation of the corporate governance and the applicable laws and
regulations as well as rules published by China Securities Regulatory Commission on the governance of listed companies.
77Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
II The Independence of the Company from Controlling Shareholders and Actual Controller
on Assets Personnel Finance Structure and Business
Since establishment the Company has been operating in strict accordance with the Company Law Securities Law and Articles
of Association and has established and improved its corporate governance structure. The Company is completely independent of its
controlling shareholders and actual controller in terms of business staffing assets organization and finance and has an independent
and complete business system and capability to operate independently in the market. All production operations and major issues of
the Company were discussed and determined by the Management the Board of Directors and the general meetings of shareholders in
accordance with the Articles of Association and relevant policies and none of them was controlled by any controlling shareholder or
the actual controller.
1. Asset independence
The Company was founded on the overall change of a limited liability company. All its assets and personnel before the share
restructuring joined the joint stock company. The Company has independent and complete operating assets. After the overall change
the Company owns all the production and operational assets needed for production and operation and there is no dispute over
property rights. The Company owns production systems auxiliary production systems and supporting facilities related to its
production and operation and has independent raw material procurement and product selling systems. Assets of the Company are
strictly separated from those of shareholders and the actual controller and no assets of the Company are being occupied by
shareholders or the actual controller.
2. Personnel independence
The Company has completely independent labour personnel and salary management systems and independent staff teams and
has signed labour contracts with its employees in accordance with the Labour Law and the Company's policies on labour
management. Directors and senior managers of the Company were elected in strict accordance with the Company Law and Articles
of Association and senior managers including general managers deputy general managers financial directors and secretaries to the
Board of Directors are working full time in the Company and getting paid by the Company. Mr Tang Zhuolin the actual controller of
the Company is serving as the Chairman of the Board of Directors and has been legally exercising its functions and powers
according to the Company Law and Articles of Association in engaging in the Company's management.
3. Finance independence
The Company has an independent financial department and full-time financial personnel and has established an independent
and fine financial accounting system and standardized financial policies. It has implemented an effective financial supervision and
management system and an internal control system and it is capable of making independent financial decisions carrying out
independent accounting and assuming sole responsibility for its profits and losses according to the Articles of Association and its
own situation. The Company has an independent bank account and is not sharing any account of controlling shareholders or the
actual controller and as an independent taxpayer declares taxes and fulfils tax payment obligations independently according to law
and has never paid taxes together with shareholders' companies.
4. Organization independence
The Company in accordance with the Company Law and Articles of Association has set up the General Meeting of
Shareholders as the highest authority the Board of Directors as the decision-making body and the Audit Committee of the Board of
Directors as the supervisory body and has a complete corporate governance structure. The Company has a complete internal
management system and corresponding offices and operating departments. The functional departments work according to respective
duties and cooperate with each other making the Company an organic and independent operating entity free from the intervention of
78Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
controlling shareholders and the actual controller.
5. Business independence
The Company has its business independent of controlling shareholders has independent and complete supply production and
sales systems and is capable of independent decision-making on business policies and business plans independent allocation and use
of personnel money and materials and successful organization and implementation of production and business activities. The
Company is completely independent in business and is not relying on the first majority shareholder and the actual controller. The
controlling shareholders are not conducting business of horizontal competition with that of the Company and have undertaken not to
conduct any business that may be of horizontal competition with that of the Company.III Horizontal Competition
□Applicable √ Not applicable
79Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
IV Directors and Senior Management
1. General Information
Opening Increase in Decrease in Other Closing
Incumbent Reason for
Name Gender Age Office title Start of tenure End of tenure shareholding the period the period increase/dec shareholding
/Former share change
(share) (share) (share) rease (share) (share)
Tang dispose of
Male 63 Chairman of the Board Incumbent 22 July 2010 15 November 2026 261424368 -2586800 258837568
Zhuolin shares
Director and General
Qiu Yezhi Female 54 Incumbent 22 July 2010 15 November 2026 23382388 23382388
Manager
Xie Director and Deputy
Male 52 Incumbent 16 June 2016 15 November 2026 564000 564000
Weiwei General Manager
Repurchase
Director Board Secretary
Feng Jia Female 40 Incumbent 12 August 2022 15 November 2026 700000 -560000 140000 and
and Vice President
Cancellation
Shao Chief Financial Officer 29 December
Male 51 Incumbent 15 November 2026 800000 800000
Yongfeng and Vice President 2020
Li Ketian Male 69 Independent Director Incumbent 12 August 2022 15 November 2026 0 0
Tu
Male 46 Independent Director Incumbent 12 August 2022 15 November 2026 0 0
Haichuan
Feng 2 September
Male 53 Independent Director Incumbent 15 November 2026 0 0
Zhidong 2024
Chen Employee Representative 29 September
Female 41 Incumbent 15 November 2026 480 480
Huiyi Director 2025
Total -- -- -- -- -- -- 286871236 0 -2586800 -560000 283724436 --
80Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Indicate whether any director or senior management resigned before the end of their tenure during the Reporting Period.? Yes □ No
On September 30 2025 the Company disclosed the Announcement on Resignation of a Director and Election of an Employee
Representative Director.Due to internal work adjustment of the Company Mr. Xie Weiwei resigned from his positions as Director of
the 5th Board of Directors and Deputy General Manager of the Company. His resignation took effect upon the delivery of his
resignation letter to the Board of Directors of the Company.Mr. Xie Weiwei remains in his positions as Vice President of DF Group
and General Manager of Dongfang Digicom a subsidiary of the Company.Changes in the Company’s Directors and Senior Management
?Applicable □ Not applicable
Name Office Title Types of Change Date of Chage Reason
Resigned due to internal
work adjustment of the
Company.Mr. Xie Weiwei
remains in his positions as
Director and Deputy
Xie Weiwei Resigned 29 September 2025 Vice President of DF
General Manager
Group and General
Manager of Dongfang
Digicom a subsidiary of
the Company
Resigned from the
position of supervisor due
to the adjustment of the
Company’s corporate
governance structure and
Employee the abolition of the board
Resigned and be
Chen Huiyi Representative 29 September 2025 of supervisors.elected
Director Elected as an Employee
Representative Director
of the 5th Board of
Directors of the Company
by the Employee
Representative Congress.
2. Biographical Information
Professional backgrounds major work experience and current posts in the Company of the incumbent directors and senior
management:
1. Members of the Board of Directors
Mr. Tang Zhuolin Chinese has no right of permanent residence abroad. He is a member of the 12th People's Political Consultative
Conference of Nanhai District Foshan City Guangdong Province Managing Director of the 9th Council of China Packaging
Federation Managing Director of Guangdong Food and Packaging Machinery Association Vice President of Foshan Machinery
Equipment Industry Association Honorary President of Foshan Nanhai District Machinery Equipment Trade Association Vice
President of Foshan High-tech Zone Chamber of Commerce and Vice President of Foshan Nanhai District Listed Company
Association. He once was Head of Nanhai Guichengdong Plastic and Textile Factory No. 2 Head of Nanhai Guichengdong Printing
Machinery Factory No. 2 and Supervisor of Shenzhen Zhiquan Venture Capital Co. Ltd. He used to serve as Dongfang Precision's
81Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
General Manager and Chief Engineer since 1996 and is currently Chairman of the Board of Dongfang Precision Director of Dong
Fang Precision (HK) Limited Director of Guangdong Fosber Intelligent Equipment Co. Ltd. Director of Suzhou Parsun Power
Machine Co. Ltd. Executive Director and General Manager of Suzhou Shunyi Investment Co. Ltd. Executive Director and General
Manager of Hainan Yineng Investment Co. Ltd. Supervisor of Dongfang Digicom Technology Co. Ltd. Supervisor of Dongfang
Digicom Technology (Guangdong) Co. Ltd. Executive Director and Manager of Dongfang Yineng International Holding Co. Ltd.Chairman of the Board of Shenzhen Wonder Digital Technology Co. Ltd. Chairman of the Board of Fosber S.p.A. Chairman of the
Board of EDF Europe S.r.l. Director of Fosber America Inc. Director of Tiru?a S.L.U. Director of QuantumCorrugated S.r.l.Executive Director and General Manager of Shenzhen Xianglin Venture Capital Co. Ltd. Supervisor of Shenzhen Shenghui Venture
Capital Co. Ltd. and Supervisor of Foshan Hengbao Taisheng Trade Co. Ltd.Ms. Qiu Yezhi Chinese has no right of permanent residence abroad MBA National Model Worker Member of the 12th People's
Political Consultative Conference of Foshan City Guangdong Province and Deputy to the 17th People’s Congress of Nanhai District
Foshan City Guangdong Province. She served successively as Dongfang Precision's Director of the General Manager's Office
General Manager of Operations and General Manager since 1996 and as Dongfang Precision's General Manager and Board
Secretary from July 2010 to October 2013. Currently she is Dongfang Precision's Director and General Manager Chairman of the
Board of DongFang Primo Robotic (Guangdong) Co. Ltdas well as its General Manager Director of Shenzhen Wonder Digital
Technology Co. Ltd. Supervisor of Hainan Yineng Investment Co. Ltd. Supervisor of Dongfang Yineng International Holding Co.Ltd. Chairman of the Board of Guangdong Fosber Intelligent Equipment Co. Ltd. Vice Chairman of the Board of Fosber S.p.A.Director of Fosber America Inc. Director of Tiru?a S.L.U. Director of Tiru?a America inc. Director of Dong Fang Precision
(Netherland) Cooperatief U.A. Director of EDF Europe S.r.l. Director of Dongfang Precision Lanke (HK) Co. Limited Director of
Grandvoyage Holdings (Singapore) Pte. Ltd and Director of Starlight Precision Technology (Singapore) Pte. Ltd Executive Director
and General Manager of Shenzhen Shenghui Venture Capital Co. Ltd. and Supervisor of Shenzhen Xianglin Venture Capital Co.Ltd.Ms. Feng Jia Chinese has no right of permanent residence abroad. She is Doctor of Engineering of Zhejiang University
Postdoctoral Fellow of Guangzhou Institute of Energy Conversion of Chinese Academy of Sciences and Intermediate Engineer. She
used to work as Associate Researcher at Guangzhou Institute of Energy Conversion of Chinese Academy of Sciences from 2014 to
2018 Senior Manager in the Research and Development Department of China Securities Co. Ltd. from 2018 to 2019 and Assistant
to President & Board Secretary of Tianjin LVYIN Landscape and Ecology Construction Co. Ltd. from 2019 to 2021. Joining the
Company in September 2021 she is now Director Vice President and Board Secretary of the Company the supervisor of Shenzhen
Wonder Digital Technology Co. and the joint-stock company Guangdong Jaten Robot & Automation Co. Ltd.Mr. Li Ketian Chinese has no right of permanent residence abroad. Graduated from South China University of Technology with a
doctoral degree and a professional title of professor of mechanical engineering. Once served as a worker technician and engineer at
the Wuhan Camera Factory from 1974 to 1989 and as a lecturer associate professor and professor at Guangdong University of
Technology from 1992 to 2020. Currently the Independent Director of Dongfang Precision.Mr. Feng Zhidong Chinese has no right of permanent residence abroad. Graduated from Renmin University of China with bachelor
of international accounting & economics and from South China University of Technology with master of business administration
holding an intermediate - level professional accounting qualification certificate. Once served asthe deputy general manager of the
Capital Operation Department of Yuexiu Enterprises (Group) Co. Ltd from 2009 to 2016 the general manager of the Investor
Relations Department of Yuexiu Property Co. Ltd. (Stock Code: 123.HK). from 2012 to 2016. Currently the chairman of Guangzhou
Airparking Network Technology Co. Ltd and the Independent Director of Dongfang Precision since 2 September 2024. In the last
five years he has served as the Independent Non Executive Director of Societe Generale IoT Services Group Co. Ltd. (Stock Code:
9916.HK) and the Independent Non Executive Director of Jianhong Group Holdings Co. Ltd. (Stock Code: 1557.HK) and and the
Independent Non Executive Director of Xinda Investment Holdings Co. Ltd. (Stock Code: 1281.HK).
82Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Mr. Tu Haichuan Chinese has no right of permanent residence abroad. Graduated from Shanghai University of Finance and
Economics. Bachelor degree. A certified public accountant. Once served as the Audit Manager of Guangdong Dahua Delv Certified
Public Accountants from 2004 to 2009 Investment Director of Guangxi Saifu Investment Co. Ltd. in 2010 Financial Manager
Chief Financial Officer and Assistant to the Chairman of Guangdong Dongfang Precision Science & Technology Co. Ltd. from
December 2010 to September 2016. Currently the Executive Director and General Manager of Shenzhen Changhe Capital
Management Co. Ltd. In the last five years he has been the Director of Guangzhou Shoulian Environment Group Co. Ltd. and
Shenzhen Aiwen Culture Development Co. Ltd. and Independent Director of Dongfang Precision.Ms. Chen Huiyi Chinese with a university degree has no right of permanent residence abroad. Once served as the assistant of the
Quality Control Department of Dongfang Plastic Products Co. Ltd. from September 2008 to December 2009 currently the
Employee Representative Director and Secretary to General Manager of Dongfang Precision as well as its Employee Representative
Director.
2. Senior management
Ms. Qiu Yezhi currently the Company's General Manager. Her resume is detailed in "1. Members of the Board of Directors".Ms. Feng Jia currently the Company’s Board Secretary and Vice President. Her resume is detailed in "1. Members of the Board of
Directors".Mr. Shao Yongfeng Chinese has no right of permanent residence abroad. Graduated with a bachelor's degree from Zhongnan
University of Economics and Law a PRC certified public accountant and PRC certified public assets estimator. Served as Financial
Manager and Financial Director of TCL Multimedia Technology Holdings Limited from 2001 to 2010 joined Haier Europe in 2015
and served successively as the company's Financial Director and CFO of Europe joined Shenzhen Smoore Technology Limited and
served as Financial Director from 2016 to 2017 served as Vice President Finance in Shenzhen CIMC Tianda from 2017 to 2020 and
joined Guangdong Dongfang Precision Science & Technology Co. Ltd. in April 2020. Currently the Company's Chief Financial
Officer and Vice President and the CFO of the subsidiaries including Dongfang Digicom Technology Co. Ltd. Dongfang Digicom
Technology (Guangdong) Co. Ltd Hainan Yineng Investment Co. Ltd. Dongfang Yineng International Holding Co. Ltd Tiru?a
(Guangdong) Intelligent Equipment Manufacturing Co. Ltd. and DongFang Primo Robotic (Guangdong) Co. Ltd.whether the controlling shareholder and actual controller concurrently serve as the chairman of the board and general manager of the
listed company
√ Applicable □ Not applicable
Mr. Tang Zhuolin the controlling shareholder and actual controller of the Company serves as the Chairman of the Board of the
Company.Offices held concurrently in shareholding entities:
□ Applicable √ Not applicable
Offices held concurrently in other entities:
√ Applicable □ Not applicable
Name Other entity Office held in the entity Start of End of Remuneration or allowance fromtenure tenure the entity or not
Tang Zhuolin Dongfang Precision (HK) Director 05 Feb 2013 No
Tang Zhuolin Fosber Italy Chairman of the Board 19 May 2023 Yes
Tang Zhuolin Dongfang Precision (Europe) Director 31 Jan 2024 Yes
Tang Zhuolin Fosber America Director 26 Jul 2022 Yes
Tang Zhuolin Tiru?a S.L.U. Director 03 Aug 2022 Yes
83Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Name Other entity Office held in the entity Start of End of Remuneration or allowance fromtenure tenure the entity or not
Tang Zhuolin QCorr Director 26 Jun 2023 Yes
Tang Zhuolin EDF Chairman of the Board 30 Dec 2025 Yes
Tang Zhuolin Fosber Asia Director 18 Apr 2016 Yes
Tang Zhuolin Parsun Power Director 24 May 2015 No
Executive DirectorGeneral
Tang Zhuolin Shunyi Investment 26 Oct 2020 No
Manager
Executive DirectorGeneral
Tang Zhuolin Yineng Investment 10 Oct 2020 Yes
Manager
Tang Zhuolin Dongfang Digicom Supervisor 26 Oct 2020 No
Tang Zhuolin Dongfang Digicom (Guangdong) Supervisor 26 Feb 2021 No
Tang Zhuolin Wonder Digital Chairman of the Board 01 Jun 2022 Yes
Dongfang Yineng International Executive DirectorGeneral
Tang Zhuolin 15 Feb 2022 No
Holding Co. Ltd. Manager
Shenzhen Xianglin Venture Executive DirectorGeneral
Tang Zhuolin 26 May 2016 No
Capital Co. Ltd. Manager
Shenzhen Shenghui Venture
Tang Zhuolin Supervisor 18 May 2016 No
Capital Co. Ltd.Foshan Hengbao Taisheng Trade
Tang Zhuolin Supervisor 06 Sep 2023 No
Co. Ltd.Qiu Yezhi Fosber Italy Vice Chairman of the Board 26 Mar 2014 Yes
Qiu Yezhi Fosber America Director 14 Dec 2017 Yes
Qiu Yezhi Tiru?a America Director 26 Jul 2022 Yes
Qiu Yezhi Tiru?a S.L.U. Director 30 May 2019 Yes
Qiu Yezhi EDF Director Dec 30 2025 Yes
Qiu Yezhi Fosber Asia Chairman of the Board 18 Apr 2016 Yes
Qiu Yezhi Dongfang Precision (Europe) Director 15 Jun 2016 Yes
Qiu Yezhi Yineng Investment Supervisor 10 Oct 2020 No
Qiu Yezhi Wonder Digital Director 31 Dec 2024 Yes
Dongfang Yineng International
Qiu Yezhi Supervisor 15 Feb 2022 No
Holding Co. Ltd.
84Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Name Other entity Office held in the entity Start of End of Remuneration or allowance fromtenure tenure the entity or not
Shenzhen Xianglin Venture
Qiu Yezhi Supervisor 26 May 206 No
Capital Co. Ltd.Shenzhen Shenghui Venture Executive DirectorGeneral
Qiu Yezhi 18 May 2016 No
Capital Co. Ltd. Manager
Qiu Yezhi Dongfang Precision (Netherland) Director 08 Nov 2023 Yes
DongFang Primo Robotic Chairman of the Board and
Qiu Yezhi 19 Sep 2025 No
(Guangdong) Co. Ltd General Manager
Dongfang Precision Lanke (HK)
Qiu Yezhi Director 25 Oct 2024 No
Co. Limited
Grandvoyage Holdings
Qiu Yezhi Director 25 Apr 2025 No
(Singapore) Pte. Ltd
Starlight Precision Technology
Qiu Yezhi Director 30 Apr 2025 No
(Singapore) Pte. Ltd
Feng Jia Wonder Digital Supervisor 21 Dec2023 Yes
Feng Jia Jaten Robot Supervisor 11 Jul 2024 No
Shenzhen Longriver Capital
Tu Haichuan Executive Director 06 Jan 2016 Yes
Management Co. Ltd.Shenzhen Ivan Culture
Tu Haichuan Director 02 Mar 2018 No
Development Co. Ltd.Guangzhou Airparking Network
Feng Zhidong Chairman of the Board 10 Jul 2015 Yes
Technology Co. Ltd.Societe Generale IoT Services Independent Non Executive
Feng Zhidong 17 Sep 2019 Yes
Group Co. Ltd. Director
Jianhong Group Holdings Co. Independent Non Executive
Feng Zhidong 01 June 2022 Yes
Ltd. Director
Xinda Investment Holdings Co. Independent Non Executive
Feng Zhidong 07 Oct 2022 Yes
Ltd. Director
Shao
Dongfang Digicom Financial Controller 26 Oct 2020 Yes
Yongfeng
Shao
Yineng Investment Financial Controller 10 Oct 2020 Yes
Yongfeng
Shao Dongfang Yineng International
Financial Controller 15 Feb 2025 No
Yongfeng Holding Co. Ltd.Shao
Dongfang Digicom(Guangdong) Financial Controller 17 Jan 2025 No
Yongfeng
Tiru?a (Guangdong) Intelligent
Shao
Equipment Manufacturing Co. Financial Controller 27 Feb 2025 No
Yongfeng
Ltd
Shao DongFang Primo Robotic
Financial Controller 19 Sep 2025 No
Yongfeng (Guangdong) Co. Ltd
Note Not applicable
Punishments imposed in the recent three years by the securities regulator on the incumbent directors and senior management as well
85Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
as those who left in the Reporting Period:
□ Applicable √ Not applicable
3. Remuneration of Directors and Senior Management
Following the approval of the Remuneration and Appraisal Committee the remunerations for directors and senior management
are submitted to the Board of Directors for further approval. The remunerations of directors and supervisors are subject to final
approval by the general meeting and those of senior management are subject to the Board of Directors. The decision-making
procedures are in compliance with the Company Law the Company’s Articles of Association and the Company’s Specific
Implementation Rules for the Remuneration and Appraisal Committee under the Board of Directors.Remuneration of directors and senior management for the Reporting Period
Unit: RMB'0000
Total before-tax remuneration Remuneration from any
Name Gender Age Office title Incumbent/Former
from the Company related party or not
Tang
Male 63 Chairman of the Board Incumbent 624.34 Yes
Zhuolin
Director and General
Qiu Yezhi Female 54 Incumbent 334.27 Yes
Manager
Director and Deputy
Xie Weiwei Male 52 Incumbent 73.83 注 Yes
General Manager
Director Board Secretary
Feng Jia Female 40 Incumbent 74.41 No
and Vice President
Shao Chief Financial Officer and
Male 51 Incumbent 62.68 No
Yongfeng Vice President
Li Ketian Male 69 Independent Director Incumbent 20.00 No
Tu
Male 46 Independent Director Former 20.00 No
Haichuan
Feng
Male 53 Independent Director Incumbent 20.00 No
Zhidong
Employee Representative
Chen Huiyi Female 41 Incumbent 24.07 No
Director
Total -- -- -- -- 1253.60 --
Note: Mr. Xie Weiwei resigned from his positions as Director of the Board of Directors and Deputy General Manager of the listed
company in September 2025. The total pre-tax remuneration received by Mr. Xie Weiwei from the Company during the reporting
period as stated in the table above covers the period from January to September 2025. Mr. Xie Weiwei remains in his positions as
Vice President of DF Group and General Manager of Dongfang Digicom a subsidiary of the Company.Remuneration of directors and senior management shall be
Basis for assessment of actual remuneration received by all
reviewed and adopted by the Remuneration and Appraisal
directors and senior management at the end of the reporting
Committee before being submitted to the Board of Directors for
period
deliberation. Remuneration of directors shall be subject to
86Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
approval by the shareholders' meeting and remuneration of
senior management shall be approved by the Board of Directors.Completion status of assessment for actual remuneration
received by all directors and senior management at the end of the Completed.reporting period
Deferred payment arrangements for actual remuneration received
by all directors and senior management at the end of the Not applicable
reporting period
Suspension and recovery of actual remuneration received by all
directors and senior management at the end of the reporting Not applicable
period
V Performance of Duty by Directors in the Reporting Period
1. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number Board
Board Board failed to
of board Board meetings
meetings meetings the attend two General
meetings the meetings attended by
Director attended director consecutive meetings
director was attended on way of
through a failed to board attended
eligible to site telecommuni
proxy attend meetings or
attend cation
not
Tang Zhuolin 9 3 6 0 0 Not 3
Qiu Yezhi 9 3 6 0 0 Not 3
Xie Weiwei 6 2 4 0 0 Not 3
Feng Jia 9 3 6 0 0 Not 3
Li Ketian 9 3 6 0 0 Not 3
Tu Haichuan 9 3 6 0 0 Not 3
Feng Zhidong 9 3 6 0 0 Not 3
Chen Huiyi 3 1 2 0 0 Not 0
Whether any director failed to attend two consecutive board meetings: Not Applicable
2. Objections Raised by Directors on Matters of the Company
Indicate whether any directors raised any objections on any matter of the Company.□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Directors
Indicate whether any suggestions from directors were adopted by the Company.
87Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
√ Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period the directors and independent directors of the Company worked in strict accordance with the
requirements of the Company Law the Securities Law Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies
No. 1 - Standardized Operation of Main Board Listed Companies the Articles of Association the Rules of Procedure for the Board
of Directors the Rules for Independent Directors and other relevant laws and regulations earnestly attended the Board meetings and
the General Meetings and were diligent and responsible. They have made relevant suggestions on the major governance and
operation decisions of the Company. The independent directors actively got to know the operation of the Company and delivered
different opinions on major matters of the Company giving better play to their supervisory role and effectively maintaining the
interests of the Company and its shareholders.
88Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
VI Performance of Duty by Special Committees under the Board in the Reporting Period
Particulars
Number of Important Other
Date of about
Committee Members meetings Contents opinion and performance
meeting objections (if
convened suggestions of duties
any)
1. Proposal on the 2024 Auditor’s Report of Guangdong Dongfang Precision
Science & Technology Co. Ltd. was approved.
2. Proposal on the 2024 Internal Control Self-Assessment Report was
Tu approved.Haichuan 3. Proposal on the Summary Report of the Audit Committee of the Board of17- Directors on the 2024 Annual Audit of Ernst & Young Hua Ming LLP was Not Not NotAudit Committee Li Ketian 1
and Feng Mar-25 approved.Applicable Applicable Applicable
Zhidong 4. Proposal on the Proposed Appointment of an Audit Institution for 2025
was approved.
5. Proposal on 2025 Estimated Quota of Futures and Derivatives
Transactions was approved.
1. Proposal on the Work Report of the Audit Department for Q4 2024 was
approved.
2. Proposal on the Work Report of the Audit Committee for Q4 2024 was
Tu approved.Haichuan 17- 3. Proposal on the Work Report of the Audit Department for 2024 was Not Not Not
Audit Committee Li Ketian 1
approved. Applicable Applicable Applicable
and Feng Mar-25
Zhidong 4. Proposal on the Work Report of the Audit Committee for 2024 was
approved.
5. Proposal on the Work Plan of the Audit Department for 2025 was
approved.
1. Proposal on the Work Report of the Audit Department for Q1 2025 was
approved.Tu 2. Proposal on the Work Report of the Audit Committee for Q1 2025 was
Haichuan 25-Apr- approved. Not Not Not
Audit Committee Li Ketian 1
and Feng 25 3. Proposal on the Work Plan of the Audit Department for Q2 2025 was
Applicable Applicable Applicable
Zhidong approved.
4. Proposal on the Audit Report for the Q1 2025 Financial Statements was
approved.
89Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Particulars
Number of Important Other
Date of about
Committee Members meetings Contents opinion and performance
meeting objections (if
convened suggestions of duties
any)
Tu
Haichuan 25-Apr- Not Not Not
Audit Committee Li Ketian 1 Proposal on the Financial Report of the Company for the Q1 of 2025
Applicable Applicable Applicable
and Feng 25
Zhidong
1. Proposal on the Work Report of the Audit Department for Q2 2025was
approved.Tu 2. Proposal on the Work Report of the Audit Committee for Q2 2025was
Haichuan 13- approved. Not Not Not
Audit Committee Li Ketian 1
Aug-25 3. Proposal on the Work Plan of the Audit Department for Q3 2025was Applicable Applicable Applicableand Feng
Zhidong approved.
4. Proposal on the Audit Report for the Q2 2025Financial Statements was
approved.Tu
Haichuan 13- Not Not Not
Audit Committee Li Ketian 1 Proposal on the Semi-Annual Financial Report of the Company for 2025
Aug-25 Applicable Applicable Applicableand Feng
Zhidong
1. Proposal on the Work Report of the Audit Department for Q3 2025was
approved.Tu 2. Proposal on the Work Report of the Audit Committee for Q3 2025was
Haichuan 22-Oct- approved. Not Not Not
Audit Committee Li Ketian 1
and Feng 25 3. Proposal on the Work Plan of the Audit Department for Q4 2025 was
Applicable Applicable Applicable
Zhidong approved.
4. Proposal on the Audit Report for the Q3 2025Financial Statements was
approved.Tu
Haichuan 22-Oct- Not Not Not
Audit Committee Li Ketian 1 Proposal on the Financial Report of the Company for the Q3 of 2025
and Feng 25
Applicable Applicable Applicable
Zhidong
90Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Particulars
Number of Important Other
Date of about
Committee Members meetings Contents opinion and performance
meeting objections (if
convened suggestions of duties
any)
1. Proposal on the Transaction Meeting the Conditions for Material Assets
Restructuring
2. Proposal on the Completeness and Compliance of Legal Procedures
Performed for the Transaction and the Validity of Submitted Legal
Documents
3. Proposal on the Plan for Material Assets Disposal by the Listed Company
(reviewed and adopted item by item)
4. Proposal on Signing the Material Assets Disposal Transaction Agreement
5. Proposal on the Pre-plan for Material Assets Disposal of Guangdong
Orient Precision Technology Co. Ltd. and Its Summary
6. Proposal on the Explanation of Fluctuations in the Company’s Stock
Price Prior to the Disclosure of Information Regarding the Transaction
7. Proposal on the Purchase and Sale of Assets in the Twelve Months Prior to
Tu the Material Assets Disposal
Haichuan 28- 8. Proposal on the Explanation of Confidentiality Measures and
Audit Committee Li Ketian 1 Confidentiality SystemAdopted for the Transaction
Not Not Not
and Feng Nov-25
Applicable Applicable Applicable
9. Proposal on the Transaction Complying with the Provisions of Article 11
Zhidong of the Measures for the Administration of Material Assets Restructuring of
Listed Companies
10. Proposal on the Transaction Complying with the Provisions of Article 4
of the Regulatory Guidelines for Listed Companies No. 9 – Regulatory
Requirements for Listed Companies in Planning and Implementing Material
Assets Restructuring
11. Proposal on the Absence of Circumstances Prohibiting Participation in
Material Assets Restructuring of Listed Companies as Specified in Article 12
of the Regulatory Guidelines for Listed Companies No. 7 – Supervision
over Abnormal Stock Trading Related to Material Assets Restructuring of
Listed Companies and Article 30 of the Self-Regulatory Guidelines for
Listed Companies of Shenzhen Stock Exchange No. 8 – Material Assets
Restructuring
12. Proposal on the Transaction Constituting Material Assets Restructuring
but Not Constituting a Backdoor Listing as Specified in Article 13 of the
91Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Particulars
Number of Important Other
Date of about
Committee Members meetings Contents opinion and performance
meeting objections (if
convened suggestions of duties
any)
Measures for the Administration of Material Assets Restructuring of Listed
Companies
Feng
Proposal on the Failure to Meet the Conditions for the Unlocking of the
Remuneration Zhidong 25-Apr- Third Unlocking Period of the Initial Grant Portion of the 2022 Restricted Not Not Not
and Appraisal Qiu Yezhi 1
25 Stock Incentive Plan and the Repurchase and Cancellation of Some Applicable Applicable ApplicableCommittee and Li
Restricted Stocks
Ketian
Feng
Remuneration Zhidong 17-Oct- Proposal on the Upcoming Expiration of the First Lock-up Period of the Not Not Not
and Appraisal Qiu Yezhi 1 2024 Employee Stock Ownership Plan and the Achievement of Unlocking
25 Applicable Applicable ApplicableCommittee and Li Conditions
Ketian
92Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
VII Performance of Duty by the Audit Committee of the Board of Directors
Indicate whether the Audit Committee of the Board of Directors found any risk to the Company during its supervision in the
Reporting Period.□ Yes √ No
No such cases in the Reporting Period.VIII Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
484
the period-end
Number of in-service employees of principal subsidiaries at the
1922
period-end
Total number of in-service employees at the period-end 2406
Total number of paid employees in the Reporting Period 2797
Number of retirees to whom the Company as the parent or its
9
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production&Operation 1468
Marketing 283
R&D and technical 337
Financial 83
Comprehensive 235
Total 2406
Educational backgrounds
Educational background Employees
Below junior college 786
Junior college 999
Bachelor’s degree 461
Master’s degree and above 160
Total 2406
2. Employee Remuneration Policy
The Company remuneration policy in 2025 continued to be based on posts and performance and subject to
total control. A comprehensive remuneration system was established and further improved to retain and attract
93Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
talents needed for the Company's sustainable development.
1. Paid remuneration based on posts: The relative value of a post was determined based on its duties and the
remuneration rage of the post was determined based on the relative value and according to the Company's value
orientation.
2. Paid remuneration based on performance: The Company determined the basic remuneration based on the
relative value of a post and personal competence determined the performance bonus in an employee's
remuneration based on his/her performance and adjusted the remuneration based on his/her personal competence
and overall performance.
3. Changed remuneration with the change in post: The remuneration was strictly fitted to the post and if the
post changed the remuneration changed so that the remuneration system can support the career development of
employees.
4. Total control: The total amount of remuneration was controlled within the scope recognized by the
Company and the growth rate of remuneration should be lower than that of sales revenue and profit. The
Company's affordability was taken into account so that the Company's business performance can support the
growth of the total labour cost.
5. The remuneration system of payment by piece is applied to first-line workers of domestic business entities
so that they could be paid more by being more profession and working harder so as to reflect an internally fair
remuneration policy based on differential skill scoring.
6. Overseas business entities strictly comply with the labor laws and other relevant laws of the country/region
where it is located abide by the provisions of the collective labor agreements of the country/region and gradually
improve and form a competitive comprehensive compensation system.
3. Training Plan
1. Actively introduce diversified training resources and innovative training organization forms such as sand
table simulations and workshops to empower core employees and share the group's training resources. Strengthen
the follow-up of the early communication return visits and feedback for key training projects to continuously
improve the implementation effect of training.The Company has established an online learning platform to create
a convenient and efficient learning environment and empower the career growth of employees.In 2025 the
Company completed the development of a tiered AI training system launched and operated training resources
including the AI Smart Sharing Workshop and AI Knowledge Sharing Platform to systematically enhance
employees’ practical AI skills.It also planned and implemented the first “AI-Enabled Office” application case
collection campaign encouraging employees to actively explore and apply AI tools share practical experiences
and promote the transformation of individual experience into organizational intelligence.
2. Optimize the internal training management system of the group make full use of the internal resources of
the group take inventory of and sort out the internal trainer teams of the group headquarters and its subsidiaries
and promote the accumulation and precipitation of the group's internal knowledge resources.
3. Implement customized individual training programs for employees to improve their professional skills and
comprehensive quality in a targeted manner..
4. Facilitate knowledge sharing and technical exchanges within the group and improve the overall technical
level and innovation ability of the group.
5. Overseas subsidiaries always attach great importance to employees' career development and personal
growth and actively carry out training programs including professional and technical training leadership training
94Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
safety and health training language training and soft skills training.
4. Labor Outsourcing
√ Applicable □ Not applicable
Total hours of labor outsourced 45608.5
Total payment for labor outsourcing (RMB'0000) 121.32
IX Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
The profit distribution policy for shareholders especially the formulation implementation and amendments to the cash
dividend policy in the Reporting Period:
√ Applicable □ Not applicable
The Articles of Association of Guangdong Dongfang Precision Science & Technology Co. Ltd. has specified the
method of profit distribution and the conditions schedule and proportion of cash dividend as well as the procedures to
decide and adjust or change profit distribution in order to fully protect the legitimate rights and interests of investors.The profit distribution policy of the Company remained unchanged in the Reporting Period.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
If the Company has no dividend plan it should disclose the
specific reasons and the next steps it intends to take to enhance Not applicable
investor returns
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or changing the cash dividend policy the
conditions and procedures involved are in compliance with Not applicable
applicable regulations and transparent
During the reporting period it was profitable and the profit available for distribution to shareholders of the parent company was
positive but no cash dividend distribution plan was proposed
□ Applicable √ Not applicable
Explanation on the Implementation of the 2025 First Quarter Dividend
On 12 May 2025 the Company held the First Extraordinary General Meeting of 2025 and considered and approved the profit
distribution plan for the first quarter of 2025. Based on 1217285908 shares (total share capital of 1217286340 shares less 432
shares held in the repurchase special account) the Company distributed a cash dividend of RMB 1.30 per ten shares (tax inclusive) to
95Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
all shareholders with an aggregate cash dividend of RMB 158247168.04 (tax inclusive). The record date for the 2025 first quarter
equity distribution is 4 June 2025 and the ex-rights and ex-dividend date is 5 June 2025. The aforementioned cash dividend has been
fully implemented during the reporting period.Whether the board of directors reviews and approves the profit distribution plan (including no dividend distribution and no share
capital conversion from reserve).? Applicable □ Not applicable
The situation of profit distribution and conversion of capital reserve into share capital during this reporting period.□ Applicable √ Not applicable
The company plans to do not distribute cash dividends issue bonus shares or convert capital reserve into share capital in the planned
year.X Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
1. Equity Incentives
1. The company held the 1st (Interim) shareholders’ meeting of 2024 on May 27 2024 which reviewed and approved the
"Proposal on the Failure to Meet the Unlocking Conditions for the Second Unlocking Period of the First Grant under the 2022
Restricted Stock Incentive Plan and the Repurchase and Cancellation of Some Restricted Stocks". On December 30 2024 the
company held the 5th (Interim) shareholders’ meeting of 2024 which reviewed and approved the "Proposal on the Repurchase and
Cancellation of Some Restricted Stocks". In accordance with the relevant provisions of the Measures for the Administration of Equity
Incentives of Listed Companies the company's 2022 Restricted Stock Incentive Plan and the Measures for the Assessment and
Administration of the Implementation of the 2022 Restricted Stock Incentive Plan the company decided to repurchase and cancel
1280000 restricted shares accounting for approximately 0.10% of the company's total share capital before the repurchase and
cancellation at a repurchase price of RMB 1 per share.On January 15 2025 the company disclosed the Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Stocks. China Securities Depository and Clearing Corporation Limited Shenzhen Branch confirmed that the procedures for
the repurchase and cancellation of 1280000 restricted shares have been completed.
2. On April 25 2025 the company held the 14th (Interim) Meeting of the Fifth Board of Directors and the 12th (Interim)
Meeting of the Fifth Supervisory Board which reviewed and approved the "Proposal on the Failure to Meet the Unlocking
Conditions for the Third Unlocking Period of the First Grant under the 2022 Restricted Stock Incentive Plan and the Repurchase and
Cancellation of Some Restricted Stocks". In view of the failure to achieve the company-level performance assessment target for the
third unlocking period resulting in the failure to meet the unlocking conditions for the third unlocking period in accordance with the
incentive plan the company shall repurchase and cancel 480000 restricted shares held by 5 incentive recipients corresponding to the
third unlocking period of the first grant under the 2022 Restricted Stock Incentive Plan at the grant price. On May 12 2025 the
company held the 1st (Interim) shareholders’ meeting of 2025 which reviewed and approved the aforesaid proposal.On May 28 2025 the company disclosed the Announcement on the Completion of Repurchase and Cancellation of Some
96Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Restricted Stocks. China Securities Depository and Clearing Corporation Limited Shenzhen Branch confirmed that the procedures for
the repurchase and cancellation of 480000 restricted shares have been completed.Exercise
Share
price for Marke Number of Restricte
options Exercis Unlock
Ope Exercisa exercised t price shares d shares
newly ed Closi ed Grant Closin
ning ble shares in at the Openin repurchase newly
grante shares ng shares price g
Office shar shares in the period g d and granted
Name d in in the share in the (RMB restrict
title e the Reportin -end restricte cancelled in
the Reporti optio Reporti yuan/sha ed
opti Reportin g Period (RMB d shares in the the
Report ng ns ng re) shares
ons g Period (RMB yuan/s current Reportin
ing Period Period
yuan/sha hare) period g Period
Period
re)
Director
Board
Feng
Secretary 560000 0 -560000 0 1 0
Jia
and Vice
President
Total -- -- -- 560000 0 -560000 0 -- 0
Evaluation Mechanism and Incentive Status of Senior Management
The Company has established a sound performance evaluation system and compensation system for senior management and
formulated key performance indicators (KPIs) corresponding to respective positions. The remuneration of the Company’s
management and staff at all levels is linked to their job performance.During the reporting period the Company assessed and evaluated the senior management in respect of their professional
competence performance of duties and completion of objectives in accordance with the key performance indicators. Their
compensation levels are closely linked to the Company’s operating results.
2. Implementation of Employee Stock Ownership Plans
?Applicable □ Not applicable
The situation of all effective employee stock ownership plans during the reporting period
Total Proportion of
Number
number of Change the total share
Scope of employees of Source of funds
shares held situation capital of the
employees
(shares) listed company
The long-term
Company directors (excluding independent incentive award
directors) senior managers who play important fund withdrawn by
roles and have significant impacts on the overall the company in
performance and medium to long-term accordance with
51 21330000 NA 1.75%
development of the company as well as core the systems
managers and core business (technical) personnel regarding salary
who are employed by the company or its management and
controlled subsidiaries performance
management.The shareholding of directors and senior management personnel in the employee stock ownership plan during the reporting period
97Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
The proportion of the
Opening shareholding Closing shareholding
Name Office title total share capital of the
(share) (share)
listed company.Director and General
Qiu Yezhi 4090000 4090000 0.34%
Manager
Director and Deputy
Xie Weiwei 900000 900000 0.07%
General Manager
Director Board
Feng Jia Secretary and Vice 700000 700000 0.06%
President
Chief Financial Officer
Shao Yongfeng 700000 700000 0.06%
and Vice President
Changes in asset management institutions during the reporting period
□ Applicable √ Not applicable
Changes in equity caused by holders' disposal of shares etc. during the reporting period
□ Applicable √ Not applicable
The situation of the exercise of shareholders' rights during the reporting period.During the reporting period the company implemented the equity distribution for the first quarter of 2025. In accordance with the
company's "2024 Employee Stock Ownership Plan Scheme" holders are entitled to the rights and interests of this employee stock
ownership plan in proportion to the share of the employee stock ownership plan they hold.During the reporting period the board of directors of the Company reviewed and approved the Proposal on the Expiration of the First
Lockup Period of the 2024 Employee Stock Ownership Plan and the Satisfaction of Vesting Conditions.The first lockup period of the
Company’s 2024 Employee Stock Ownership Plan expired on October 25 2025 and the vesting conditions for such period have
been satisfied.The number of shares eligible for vesting is 8532000 shares accounting for 0.70% of the Company’s current total
share capital.Other relevant matters regarding the employee stock ownership plan during the reporting period
□ Applicable √ Not applicable
Changes in the members of the management committee of the employee stock ownership plan
□ Applicable √ Not applicable
The financial impact of the employee stock ownership plan on the listed company during the reporting period and relevant
accounting treatments
? Applicable □ Not applicable
According to "Accounting Standards for Business Enterprises No. 11 - Share-based Payments" for equity-settled share-based
payments in exchange for employees' services that can only be exercised when the services during the waiting period are completed
or the stipulated performance conditions are met on each balance sheet date during the waiting period the services obtained in the
current period should be included in relevant costs or expenses and capital reserve based on the best estimate of the number of
exercisable equity instruments and in accordance with the fair value of the equity instruments on the grant date. The amortization
expense of the company's employee stock ownership plan in 2025 was 28.4391 million yuan which was included in relevant expense
accounts and capital reserve.The situation of the termination of the employee stock ownership plan during the reporting period.□ Applicable √ Not applicable
98Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
3. Other Incentive Measures for Employees
□ Applicable √ Not applicable
XI Formulation and Implementation of Internal Control System during the Reporting Period
1. Internal Control Formulation and Implementation
In accordance with the provisions of the Basic Code for Internal Control of Enterprises and its supporting guidelines and other
regulatory requirements for internal control the Company has set up a relatively complete corporate governance structure and
internal control management system in line with its actual operation which is in line with the needs of the Company's operation and
management. The Company has established internal control over the businesses and matters included in the scope of evaluation for
effective implementation. The objective of internal control has been basically achieved with no material weakness.The Board of Directors of the Company is responsible for establishing sound and effective internal controls and evaluating their
effectiveness in accordance with the provisions of the standard system for enterprise internal control. The Audit Committee of the
Board of Directors supervised the establishment and implementation of internal controls by the Board of Directors.The Company would ensure legal compliance in operation and management assets safety truthfulness and integrity of financial
reports and related information through the sound and effective implementation of internal controls to improve operational efficiency
and effect and promote the development strategy.
2. Significant Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
XII Subsidiary Management during the Reporting Period
Subsidiary Management plan Progress Problems Solutions Solution progress Subsequent plan
N/A N/A N/A N/A N/A N/A N/A
XIII Self-Assessment Report and Independent Auditor’s Report on Internal Control
1. Internal Control Self-Assessment Report
Date of disclosure of the
full internal control 24 March 2026
assessment report
Index to the full internal
control assessment Published on www.cninfo.com.cn
report disclosed
Ratio of the total assets
of the organizations
100.00%
included in the
assessment to the total
99Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
assets in the Company's
consolidated financial
report
Ratio of the revenue of
the organizations
included in the
assessment to the 100.00%
revenue in the
Company's consolidated
financial report
Defect identification criteria
Category Financial report Non-financial report
The identification of defects in non-financial reports
is mainly based on the degree of impact of the
defects on the effectiveness of business procedures
1) Indications of significant defects in financial and the possibility of their occurrence.
reports include: 1) Significant defect
a. Fraudulent conduct by directors and senior If the possibility of the defect is high it will
management of the Company; b. Correction of a seriously reduce the work efficiency or
published financial report by the Company; c. effectiveness seriously increase the uncertainty of
Significant misstatement in the current financial the effectiveness or make the work result seriously
report identified by a certified public account but not deviate from the expected goal the defect is a
identified during the Company's internal control significant defect. The following usually indicates a
audit; d. Invalid supervision of the Audit Committee significant defect in the internal control of non-
and audit department over the Company's external financial reports:
financial reports and internal control of financial a. Violation of national laws and regulations; b.reports. Outflow of managers or key technicians; c. Frequent
2) Indications of important defects in financial reports negative news from media; d. Failure to correct the
Qualitative criteria
included: results especially significant or important defects in
a. Failure to select or apply accounting policies in internal control assessment; e. Lack of system
accordance with GAAP; b. Failure to implement anti- control or systematic failure of system in important
fraud procedures and take control measures; c. Lack business.of corresponding control mechanism for accounting 2) Important defect
treatment of unconventional or special transactions or If the possibility of the defect is relatively high it
lack of corresponding compensatory control; d. One will significantly reduce the work efficiency or
or more defects in the control of the period-end effectiveness significantly increase the uncertainty
financial reporting process and failure to reasonably of the effectiveness or make the work result
ensure true and complete financial reports. significantly deviate from the expected goal the
3) General defects refer to the control defects other defect is an important defect. The following usually
than significant and important defects mentioned indicates an important defect in the internal control
above. of non-financial reports:
a. Defects in important business policies or systems;
b. Important mistakes in the decision-making
process; c. Serious outflow of business personnel in
100Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
key posts; d. Failure to timely remedy the important
defects identified in internal supervision of internal
control; e. Other circumstances that have a negative
impact on the Company. 3) General defects referred
to the control defects other than significant and
important defects mentioned above.The revenue and total assets were the measuring
indicators for the quantitative criteria. If the loss that
may result from or results from an internal control
defect is related to the profit report it was measured
by the revenue indicator. If the amount of
misstatement in the financial report that may result
from the defect alone or it together with other
defects is less than 0.5% of the revenue the defect
was determined as a general defect. If it exceeds
A quantitative judgment was made based on the
0.5% and is less than 1% of the revenue it was
pretax profit of the Company. The misstatement
determined as an important defect. If it exceeds 1%
exceeding 5% of the total pretax profit was
of the revenue it was determined as a significant
Quantitative criteria determined as a significant misstatement that
defect.exceeding 3% of the total pretax profit was
If the loss that may result from or results from an
determined as an important misstatement and others
internal control defect is related to asset
were determined as general misstatements.management it was measured by the total asset
indicator. If the amount of misstatement in the
financial report that may result from the defect alone
or it together with other defects is less than 0.5% of
the total assets the defect was determined as a
general defect. If it exceeds 0.5% and is less than 1%
of the total assets it was determined as an important
defect. If it exceeds 1% of the total assets it was
determined as a significant defect.Number of significant
defects in financial 0
reports
Number of significant
defects in non-financial 0
reports
Number of important
defects in financial 0
reports
Number of important
defects in non-financial 0
reports
101Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
2. Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
In the opinion of Ernst & Young Hua Ming LLP Guangdong Dongfang Precision Science & Technology Co. Ltd. maintained in
all material respects effective internal control over financial reporting as at 31 December 2025 based on the Basic Rules on
Enterprise Internal Control and other applicable rules.Independent auditor’s report on
Yes
internal control disclosed or not
Disclosure date 24 March 2026
Index to such report disclosed www.cninfo.com.cn
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal control.□ Yes √ No
Indicate whether the independent auditor’s report on the Company’s internal control is consistent with the internal control self-
evaluation report issued by the Company’s Board of Directors.√ Yes □ No
XIV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
Not applicable
XV Disclosure of Environment Information
□Applicable □ Not applicable
Whether the listed company and its major subsidiaries are included in the list of enterprises required to disclose environmental
information in accordance with the law
□Yes □ No
Number of companies included in the list of enterprises required to
disclose environmental information in accordance with the law (unit: 1
enterprise)
Query index for reports on environmental
No. Name
information disclosure in accordance with the
Jiangsu Provincial Department of Ecology and
Environment - "Environmental Protection
1 Parsun Power Facemask" for Jiangsu Enterprises (One Enterprise
One File)
https://sthjt.jiangsu.gov.cn/col/col83817/index.html
102Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
XVI Social Responsibilities
The Company attached importance to fulfilling social responsibility in daily operations intending to promote harmony and co-
prosperity between it and parties related to its interests. The Company also took active measures in the protection of the rights and
interests of shareholders creditors employees suppliers customers and consumers environmental protection sustainable
development public relations and social public welfare undertakings and strived to maximize comprehensive social benefits
including the sustainable development of itself.
(1) Corporate governance: During the Reporting Period the Company strictly abided by the Company Law the Securities Law
and Code of Corporate Governance for Listed Companies continued to refine the corporate governance structure improve the
internal control system formed the decision-making system comprising the Shareholders' General Meeting the Board of Directors
and the Management and timely fulfilled its obligation of information disclosure according to laws and regulations and effectively
safeguarded the rights and interests of all shareholders.
(2) Rights and interests of employees: The Company provided employees with welfare and care by providing holiday gifts and
holding employee birthday parties annual meetings and team-building activities improved employees' professional competence by
offering regular or irregular training to employees in the headquarters and domestic and foreign branches and subsidiaries and
continued to improve the competitive comprehensive remuneration system to retain and attract talents needed for the Company's
sustainable development.
(3) Relationship with customers and suppliers: Long adhering to the principle of "honest business" and "mutual benefit and
win-win" the Company took the initiative to construct and develop a strategic partnership with suppliers and customers and jointly
built a platform of trust and cooperation and earnestly fulfilled its social responsibilities to suppliers customers and consumers. The
Company has been well-performing contracts with suppliers and customers and ensuring that the rights and interests of all parties are
highly valued and duly protected.
(4) Production safety: The Company strictly abided by the Labour Law and the Labour Contract Law adhered to the "people-
oriented" principle attached importance to the needs of employeesstrived to improve the working and living environments of
employees and has set up a labour union to effectively protect the interests of employees. It also provided labour protection supplies
according to the risk factors of different posts organized occupational health examinations for employees (before taking the post on
the post and before leaving the post) and bought safety liability insurance for employees on highly risky posts. In 2020 Dongfang
Precision extended its Grade II Production Safety Standardization Certificate for Machinery Enterprises and Parsun Power and
Fosber Asia were granted the Grade III Production Safety Standardization Certificate for Machinery Enterprises.
(5) Environmental protection: Dongfang Precision was granted the National Pollutant Discharge Permit and regularly completes
the filling of data for post-license monitoring of the National Discharge License. It commissioned the qualified third-party
environmental protection agencies to compile the Contingency Plans for Environmental Emergencies and update it on a regular basis.The Company established the "Environmental Self-Monitoring Programme" entrusted a third party to install and operate 24-hour
sewage on-line flow monitoring equipment and entrusted a third-party monitoring organisation to carry out quarterly testing of
wastewater exhaust gas and noise and issue third-party test reports. Moreover the Company’s environmental protection facilities
passed the qualification re-examination on OHSAS18001:2007 Occupational Health and Safety Management Systems and
ISO14001:2005 Environmental Management System. .Subsidiary Parsun Power has obtained the National Pollutant Discharge
Permit and passed the ISO 14001:2015 environmental management system certification. It has purchased environmental protection
equipment including a 50000 m3/h organic waste gas treatment device and a waste gas recovery system which can meet the daily
requirements for pollutant treatment.
(6) Anti-fraud: The Group complied a thorough internal authorization manual that detailed provisions on internal authorization
process of major matters to ensure appropriate internal control and reduce the risk of fraud. In order to create a fair just honest and
non-corrupt internal business environment and strengthen internal monitoring the Company also established and launched the anti-
fraud reporting platform to encourage employees to report fraud findings.
103Guangdong Dongfang Precision Science & Technology Co. Ltd.
Annual Report 2025
XVII Efforts in Poverty Alleviation and Rural Revitalization
The Company did not conduct activities related to targeted poverty alleviation in the Reporting Year nor did it develop any
subsequent plan for targeted poverty alleviation.
104Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part V Significant Events
I Performance of Commitments
1. Commitments made by the Company’s actual controller shareholders related parties purchasers the Company and other relevant committing parties
that have been fully performed during the reporting period as well as those that remain unfulfilled as of the end of the reporting period.√Applicable □ Not applicable
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
Commitments
related to reform
of shareholder
structure
Commitments
made in
acquisition
report of change
of equity report
I. During the period when I serve as the actual controller / controlling
shareholder of the listed company I shall perform my obligations as
the actual controller / controlling shareholder of the listed company in
good faith fully respect the independent legal person status of the
listed company and ensure that the listed company maintains
independence from myself and my connected persons in respect of
business assets structure personnel financial affairs and other
Commitments Commitments on Non- aspects.made in asset Tang Zhuolin competition Related Long-term In normal progress
reorganization Tang Zhuomian Party Transactions and
II. During the period when I serve as the actual controller / controlling 28 Nov 2025 effective of fulfillment
Fund Occupation shareholder of the listed company I shall not by taking advantage of
my status as the actual controller / controlling shareholder violate the
standardized operation procedures of the listed company interfere
with the compliant operation and decision-making of the listed
company in accordance with the law or prejudice the legitimate rights
and interests of the listed company and other shareholders.III. During the period when I serve as the actual controller /
controlling shareholder of the listed company I and other enterprises
105Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
and entities under my control (excluding the listed company
including its holding subsidiaries and other enterprises and entities
controlled by the listed company) undertake not to illegally occupy
the funds or assets of the listed company in any form.IV. In case of any breach of the above commitments I shall bear
corresponding legal liabilities in accordance with the law.I. At present I (including companies and enterprises under my direct
or indirect control the same hereinafter) do not engage in any
business or operation that constitutes substantial competition in the
same industry with the listed company (including companies and
enterprises under its direct or indirect control the same hereinafter).II. In the future I will not conduct any activities in any region and in
any form (including but not limited to operating on my own or jointly
investing cooperating conducting joint operations investing in
merging or operating under entrustment with others inside or outside
the People’s Republic of China) that may constitute competition in
the same industry with the listed company as stipulated by laws
regulations and regulatory legal documents.Commitments on Non- III. In the future I will not provide trade secrets such as marketing
Tang Zhuolin competition Related channels and customer information to any companies enterprises
Tang Zhuomian Party Transactions and other institutions organizations or individuals that are the same as 28 Nov 2025
Long-term In normal progress
Fund Occupation similar to or competitive with the listed company in any respect.effective of fulfillment
IV. I will not use my controlling relationship over the listed company
to impair the legitimate rights and interests of the listed company and
its other shareholders (especially minority shareholders) and will
fully respect and ensure the independent operation and independent
decision-making of the listed company.V. This commitment shall remain in effect continuously until I no
longer control the listed company or the listed company is delisted
from the stock exchange. If I breach this commitment and cause
losses to the listed company during the valid term of this
commitment I shall timely compensate the listed company for such
losses. I warrant that this commitment is true and valid and agree to
be liable for compensating any losses caused to the listed company
and other stakeholders due to any false statement in this commitment.Commitments on Non- I. I and my controlled affiliated enterprises (including any affiliated
Tang Zhuolin competition Related companies or enterprises holding subsidiaries over which I have or Long-term In normal progress
Tang Zhuomian Party Transactions and will have direct or indirect control at present or in the future as well 28 Nov 2025 effective of fulfillment
Fund Occupation as any subordinate enterprises or entities of such affiliated companies
enterprises and holding subsidiaries) shall avoid and reduce related
106Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
party transactions with the listed company as much as possible. For
any related party transactions that are unavoidable or conducted for
reasonable causes we shall abide by the fair impartial and open
principles of market transactions sign agreements in accordance with
the law comply with statutory procedures fulfill information
disclosure obligations and complete relevant formalities pursuant to
applicable laws regulations and the Articles of Association of the
listed company. We warrant that we shall not directly or indirectly
misappropriate the funds or assets of the listed company by means of
transactions expense advances external investments guarantees or
other means nor shall we by taking advantage of our control right
manipulate or instigate the listed company its directors senior
management personnel or conduct any other acts that impair the
legitimate rights and interests of the listed company and its other
shareholders.II. This commitment shall remain valid continuously until I no longer
control the listed company or the listed company is delisted from the
stock exchange. If I breach this commitment and cause losses to the
listed company and other stakeholders during the valid term of this
commitment I shall timely assume corresponding compensation
liabilities to the listed company and other stakeholders.III. I warrant that this commitment is true and valid and agree to be
liable for compensating any losses caused to the listed company and
other stakeholders due to any falsehood in this commitment.# Letter of Commitment on the Authenticity Accuracy and
Completeness of Information Provided The period from
I. I warrant that I will promptly provide the listed company with the announcement
materials and information relating to this transaction and that all date of the first
materials and information supplied by me in the course of this resolution of the
transaction are true accurate and complete without any false records board of directors
misleading statements or material omissions. If any false records of the listed
Tang Zhuolin misleading statements or material omissions exist in the materials company
Tang Zhuomian Other Commitments
In normal progress
and/or information provided by me which cause losses to the listed 28 Nov 2025 approving the of fulfillment
company or investors I shall be liable for compensation in proposals in
accordance with the law. relation to this
II. I warrant that all materials and information provided to all transaction to the
intermediaries participating in this transaction are true accurate and date of full
complete; all such materials are original written documents or completion of the
duplicate copies and such duplicates or copies are consistent with the implementation of
original documents or originals. The signatures and seals on all this transaction.documents are authentic the signatories of such documents are duly
107Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
authorized and have validly executed such documents and there are
no false records misleading statements or material omissions.III. I warrant that I have fulfilled the statutory disclosure and
reporting obligations and there are no contracts agreements
arrangements or other matters that should be disclosed but remain
undisclosed.IV. In accordance with the progress of this transaction I will promptly
provide relevant information and materials pursuant to the provisions
of laws regulations rules the China Securities Regulatory
Commission and the Shenzhen Stock Exchange and warrant that the
information and materials to be continuously provided shall continue
to meet the requirements of authenticity accuracy completeness and
validity.V. If this transaction is subject to case-filing investigation by a
judicial authority or the China Securities Regulatory Commission on
suspicion that the information provided or disclosed by me contains
false records misleading statements or material omissions any shares
in the listed company in which I have an interest shall not be
transferred prior to the conclusion of the investigation. Within two
trading days upon receipt of the notice of case-filing inspection I
shall submit a written application for suspension of transfer and my
securities account to the board of directors of the listed company
which shall apply to the stock exchange and the securities depository
and settlement institution for the lock-up of such shares on my behalf.If I fail to submit the lock-up application within two trading days I
hereby agree to authorize the board of directors of the listed company
to directly submit my identity information and account information to
the stock exchange and the securities depository and settlement
institution for verification and apply for share lock-up. If the board of
directors of the listed company fails to submit my identity information
and account information to the stock exchange and the securities
depository and settlement institution I hereby agree to authorize the
stock exchange and the securities depository and settlement institution
to directly lock up the relevant shares. If any illegal or non-compliant
circumstances are found in the investigation conclusion I commit that
the locked-up shares shall be voluntarily used for relevant investor
compensation arrangements.VI. I shall bear legal liabilities in accordance with the law in the event
of any breach of the above commitments.# Letter of Commitment on Compliance and Good Credit Standing
I. I am a natural person with full capacity for civil conduct and civil
108Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
rights possessing and complying with the qualifications for office and
obligations prescribed by the Company Law the Listing Rules of the
Shenzhen Stock Exchange and other laws regulations regulatory
documents as well as the Articles of Association of the listed
company and my holding of office (if any) is appointed through
statutory procedures. I do not have any circumstances of holding
office or part-time employment prohibited by relevant laws
regulations regulatory documents the Articles of Association
relevant regulatory authorities or part-time employers (if any).II. I have not been subject to any administrative penalties (except
those clearly unrelated to the securities market) or criminal penalties
in the past five years nor have I been involved in any material civil
litigation or arbitration relating to economic disputes. As of the date
hereof there are no pending or potential material litigations
arbitrations or administrative penalties against me.III. I have maintained a good credit standing in the past five years. I
have not defaulted on the repayment of large-scale debts failed to
perform commitments been subject to administrative regulatory
measures by China’s securities regulatory authorities or disciplinary
sanctions by stock exchanges been listed as a joint disciplinary
offender or a dishonest judgment debtor or committed any serious
bad faith acts in the securities market. In the past three years I have
not committed any material violations been suspected of material
violations or been subject to material administrative penalties with
serious circumstances. I have not been subject to case-filing
investigation by a judicial authority on suspicion of committing a
crime or case-filing investigation by China’s securities regulatory
authorities or other competent authorities on suspicion of violation of
laws or regulations.IV. I shall bear legal liabilities in accordance with the law in the event
of any breach of the above commitments.# Commitment on Non-Disclosure of Inside Information and Non-
Participation in Insider Trading
I. Neither I nor enterprises under my control are subject to any
circumstances set forth in Article 12 of the Regulatory Guidelines for
Listed Companies No. 7 – Supervision of Abnormal Stock Trading
Related to Material Asset Restructuring of Listed Companies that is
neither I nor such enterprises are under case-filing investigation or
case-filing inspection in connection with suspected insider trading
relating to this transaction; nor have we been subject to administrative
109Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
penalties by the China Securities Regulatory Commission or criminal
liability pursued by judicial authorities for insider trading related to
material asset restructuring in the past thirty-six months.II. Neither I nor enterprises under my control have illegally disclosed
any inside information relating to this transaction or engaged in
insider trading by illegally using such inside information. I warrant to
take necessary measures to keep strictly confidential all materials and
information involved in this transaction.III. I shall bear legal liabilities in accordance with the law in the event
of any breach of the above commitments.# Explanation on Confidentiality Measures Adopted
I. I have strictly fulfilled my confidentiality obligations in respect of
the information relating to this transaction prior to its lawful
disclosure and adopted adequate and necessary confidentiality
measures for this transaction.II. I attach great importance to the administration of inside
information cooperate with the listed company to strictly control the
scope of insiders and fill in the insider registration form.III. I have not illegally disclosed any inside information relating to
this transaction and/or engaged in insider trading by illegally using
such inside information and I warrant to take necessary measures to
keep strictly confidential all materials and information involved in
this transaction.IV. I shall bear legal liabilities in accordance with the law in the event
of any breach of the above commitments.# Letter of Commitment on Measures to Offset Diluted Immediate
Returns in Respect of This Restructuring
I. I commit not to interfere ultra vires with the operation and
management of the listed company or encroach upon the interests of
the listed company.II. I commit not to convey interests to any other entity or individual
without compensation or on unfair terms nor to impair the interests of
the listed company by any other means.III. I commit to restrict my daily official consumption activities.IV. I commit not to use the assets of the listed company to engage in
any investment or consumption activities irrelevant to the
performance of my duties.V. I commit to within the scope of my duties and authority make best
efforts to promote the linkage between the remuneration system
110Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
formulated by the board of directors or the remuneration and
assessment committee of the listed company and the implementation
of the measures to offset diluted returns of the listed company.VI. I commit that if the listed company launches an equity incentive
plan in the future the proposed vesting conditions of such equity
incentive plan shall be linked to the implementation of the measures
to offset diluted returns of the listed company.VII. From the date hereof until the completion of this transaction if
the regulatory authority issues any new regulatory provisions
concerning measures to offset diluted returns and commitments
thereon and the relevant contents of this commitment fail to meet
such provisions of the regulatory authority I commit to issue a
supplementary commitment in accordance with the latest provisions
of the regulatory authority at that time.VIII. I will earnestly implement the relevant measures to offset
diluted returns formulated by the listed company and any
commitments made by me in respect thereof. If I breach the above
commitments and cause losses to the listed company or investors I
agree to bear corresponding compensation liabilities in accordance
with the law.# Statement and Commitment on the Absence of Related Party
Relationship with the Counter-party
I. As of the date of this statement and commitment letter I have no
related party relationship or relationship of acting in concert with the
transaction counter-party and the enterprises or entities controlling the
transaction counter-party. The transaction counter-party is not an
enterprise under my control.II. The contents of this statement and commitment letter are true
accurate and complete. I shall bear corresponding legal liabilities in
the event of any false records misleading statements or material
omissions.# Commitment on the Authenticity Accuracy and Completeness of The period from
Tang Zhuolin Qiu Information Provided the announcement
Yezhi Feng 1. I warrant that I will promptly provide the listed company with date of the first
Jia Li Ketian Tu materials and information in relation to this transaction and that all resolution of the
Haichuan Feng Other Commitments In normal progressmaterials and information supplied by me during this transaction are 28 Nov 2025 board of directors
Zhidong Chen of fulfillmenttrue accurate and complete without any false records misleading of the listed
Huiyi Shao statements or material omissions. In the event that any false records company
Yongfeng misleading statements or material omissions in the materials and/or approving the
information provided by me cause losses to the listed company or proposals in
111Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the Term of fulfillment of
Commitments Commitments Types of Commitments Contents of Commitments making ofCommitments Commitments Commitments
investors I shall be liable for compensation in accordance with the relation to this
law. transaction to the
2. I warrant that all materials and information provided to all date of full
intermediaries participating in this transaction are true accurate and completion of the
complete; all materials furnished are original written documents or implementation of
duplicate copies and such duplicates or copies are consistent with the this transaction.original documents or originals. The signatures and seals on all
documents are authentic the signatories of such documents are duly
authorized and have validly executed the documents and there exist
no false records misleading statements or material omissions.
3. I warrant that I have fulfilled my statutory disclosure and reporting
obligations and there are no contracts agreements arrangements or
other matters that are required to be disclosed but have not been
disclosed.
4. In accordance with the progress of this transaction I will promptly
provide relevant information and materials pursuant to the provisions
of laws regulations rules the China Securities Regulatory
Commission and the Shenzhen Stock Exchange and warrant that the
information and materials to be provided continuously shall continue
to meet the requirements of being true accurate complete and valid.
5. If this transaction is placed on file for investigation by a judicial
authority or the China Securities Regulatory Commission on the
ground that the information provided or disclosed by me is suspected
of containing false records misleading statements or material
omissions any shares in the listed company in which I have an
interest shall not be transferred prior to the issuance of the
investigation conclusion. Within two trading days after receiving the
notice of case-filing investigation I shall submit a written application
for the suspension of transfer and my securities account to the board
of directors of the listed company which shall apply to the stock
exchange and the securities depository and clearing corporation for
the lock-up of such shares on my behalf. If I fail to submit the lock-up
application within two trading days I hereby agree to authorize the
board of directors of the listed company to directly submit my identity
information and account information to the stock exchange and the
securities depository and clearing corporation for verification and
apply for the lock-up of shares. If the board of directors of the listed
company fails to submit my identity information and account
information to the stock exchange and the securities depository and
clearing corporation I hereby agree to authorize the stock exchange
and the securities depository and clearing corporation to directly lock
112Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
up the relevant shares. If any illegal or non-compliant circumstances
are identified in the investigation conclusion I commit that the
locked-up shares shall be voluntarily used for relevant investor
compensation arrangements.
6. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.# Commitment on No Disclosure of Inside Information or Insider
Trading
1. Neither I nor the enterprises under my control are subject to any of
the circumstances set forth in Article 12 of the *Regulatory
Guidelines for Listed Companies No. 7 – Supervision of Abnormal
Stock Trading Related to Material Asset Restructuring of Listed
Companies* that is neither I nor such enterprises are under case-
filing investigation or inspection in connection with suspected insider
trading relating to this transaction; nor have we been subject to
administrative penalties by the China Securities Regulatory
Commission or criminal liability pursued by judicial authorities for
insider trading related to material asset restructuring in the past thirty-
six months.
2. Neither I nor the enterprises under my control have illegally
disclosed any inside information relating to this transaction or
engaged in insider trading by illegally using such inside information; I
warrant to take necessary measures to keep strictly confidential all
materials and information involved in this transaction.
3. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.# Letter of Commitment on Compliance and Good Faith
1. I am a natural person with full capacity for civil conduct and civil
rights possessing and complying with the qualifications for holding
office and obligations prescribed by the *Company Law* the
*Listing Rules of the Shenzhen Stock Exchange* and other laws
regulations regulatory documents as well as the articles of association
of the listed company and my holding of office (if any) has been
appointed through statutory procedures. I do not engage in any
holding of office or part-time employment prohibited by relevant
laws regulations regulatory documents the articles of association
relevant regulatory authorities or part-time employers (if any).
2. I have not been subject to any administrative penalties (except
those obviously unrelated to the securities market) or criminal
penalties in the past five years nor have I been involved in any
113Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
material civil litigation or arbitration relating to economic disputes.As of the date hereof there are no pending or potential material
litigations arbitrations or administrative penalties against me.
3. I have maintained good credit standing in the past five years. I have
not defaulted on the repayment of large debts failed to perform
commitments been subject to administrative regulatory measures by
China’s securities regulatory authorities or disciplinary sanctions by
stock exchanges been listed as a joint disciplinary offender or a
dishonest judgment debtor or committed any serious bad faith acts in
the securities market. In the past three years I have not committed
any material violations been suspected of material violations or been
subject to material administrative penalties with serious
circumstances. I have not been placed on file for investigation by a
judicial authority on suspicion of committing a crime or placed on
file for investigation by China’s securities regulatory authorities or
other competent authorities on suspicion of violating laws or
regulations.
4. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.# Explanation on Confidentiality Measures Adopted
1. I have strictly fulfilled my confidentiality obligations in respect of
the information relating to this transaction prior to its lawful
disclosure and adopted adequate and necessary confidentiality
measures for this transaction.
2. I attach great importance to the administration of inside
information cooperate with the listed company to strictly control the
scope of insiders and fill in the insider registration form.
3. I have not illegally disclosed any inside information relating to this
transaction and/or engaged in insider trading by illegally using inside
information and I warrant to take necessary measures to keep strictly
confidential all materials and information involved in this transaction.
4. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.# Letter of Commitment on Measures to Mitigate Dilution of
Immediate Returns Arising from This Restructuring
1. I commit not to convey interests to any other entity or individual
without compensation or on unfair terms nor to impair the interests of
the listed company by any other means.
2. I commit to exercise restraint over my daily official consumption.
114Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
3. I commit not to use the assets of the listed company to conduct any
investment or consumption activities irrelevant to the performance of
my duties.
4. I commit to within the scope of my duties and authority make best
efforts to promote the linkage between the remuneration system
formulated by the board of directors or the Remuneration and
Evaluation Committee and the implementation of the listed
company’s return mitigation measures.
5. I commit that if the listed company launches an equity incentive
plan in the future the proposed vesting conditions of the listed
company’s equity incentive plan shall be linked to the
implementation of the listed company’s return mitigation measures.
6. From the date hereof until the completion of the implementation of
this transaction if the regulatory authority issues any new regulatory
provisions concerning return mitigation measures and commitments
thereon and the relevant contents of this commitment fail to meet
such provisions of the regulatory authority I commit to issue a
supplementary commitment in accordance with the latest provisions
of the regulatory authority at that time.
7. I will earnestly implement the relevant return mitigation measures
formulated by the listed company and any commitments made by me
in respect thereof. In the event that I breach the above commitments
and cause losses to the listed company or investors I am willing to
bear corresponding compensation liabilities in accordance with the
law.# Commitment on the Authenticity Accuracy and Completeness of The period from
Information Provided the announcement
1. The Company warrants that all materials and information supplied date of the first
in connection with this transaction are true accurate and complete resolution of the
without any false records misleading statements or material board of directors
omissions. In the event that any false records misleading statements of the listed
or material omissions in the materials and/or information provided by company
The Company Other Commitments In normal progressthe Company cause losses to investors the Company shall be liable 28 Nov 2025 approving the
for compensation in accordance with the law. proposals in
of fulfillment
2. The Company warrants that all materials and information provided relation to this
to all intermediaries participating in this transaction are true accurate transaction to the
and complete; all materials furnished are original written documents date of full
or duplicate copies and such duplicates or copies are consistent with completion of the
the original documents or originals. The signatures and seals on all implementation of
the aforementioned documents provided by the Company are this transaction.
115Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
authentic the signatories of such documents are duly authorized and
have validly executed the same and there exist no false records
misleading statements or material omissions.
3. The Company warrants that it has fulfilled its statutory disclosure
and reporting obligations and there are no contracts agreements
arrangements or other matters that are required to be disclosed but
have not been disclosed.
4. In accordance with the progress of this transaction the Company
will promptly provide relevant information and materials pursuant to
the provisions of laws regulations rules the China Securities
Regulatory Commission and the Shenzhen Stock Exchange and
warrants that the information and materials to be provided
continuously shall continue to meet the requirements of being true
accurate complete and valid.
5. The Company shall bear legal liabilities in accordance with the law
in case of any breach of the above commitments.# Statement on the Absence of Insider Trading in Connection with
This Material Asset Disposal
1. Neither the Company nor its directors senior management
controlling shareholder actual controller nor enterprises controlled
by any of the foregoing parties are subject to any of the circumstances
set forth in Article 12 of the *Regulatory Guidelines for Listed
Companies No. 7 – Supervision of Abnormal Stock Trading
Related to Material Asset Restructuring of Listed Companies*; that is
none of them are under case-filing investigation or inspection in
connection with suspected insider trading relating to this transaction
and none of them have been subject to administrative penalties by the
China Securities Regulatory Commission or criminal liability pursued
by judicial authorities for insider trading related to material asset
restructuring in the past thirty-six months.
2. Neither the Company nor its directors senior management
controlling shareholder actual controller nor enterprises controlled
by any of the foregoing parties have illegally disclosed any inside
information relating to this transaction or engaged in insider trading
by illegally using such inside information; the Company warrants to
take necessary measures to keep strictly confidential all materials and
information involved in this transaction.
3. Any breach of the above statements and commitments shall result
in legal liabilities being borne in accordance with the law.# Letter of Commitment on Compliance and Good Faith
116Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
1. The Company is a legal entity duly incorporated and validly
existing under the laws and regulations of the People’s Republic of
China and possesses the lawful qualification to participate in this
transaction execute transaction documents in connection with this
transaction and exercise and perform the rights and obligations under
the aforesaid relevant transaction documents.
2. The Company its directors and senior management have not been
subject to any administrative penalties (except those obviously
unrelated to the securities market) or criminal penalties in the past
five years nor have they been involved in any material civil litigation
or arbitration relating to economic disputes. As of the date hereof
there are no pending or potential material litigations arbitrations or
administrative penalties against the Company.
3. The Company its directors and senior management have
maintained good credit standing in the past five years. None of them
have defaulted on the repayment of large debts failed to perform
commitments illegally occupied funds provided illegal external
guarantees been subject to administrative regulatory measures by
China’s securities regulatory authorities or disciplinary sanctions by
stock exchanges been listed as a joint disciplinary offender or a
dishonest judgment debtor or committed any serious bad faith acts in
the securities market. The interests of the listed company or the
legitimate rights and interests of investors have not been seriously
impaired by the controlling shareholder or actual controller in a
manner that remains unresolved.
4. The Company its directors and senior management do not fall
under any of the following circumstances:
(1) Having been publicly reprimanded by a stock exchange in the
most recent year;
(2) Being under case-filing investigation by a judicial authority on
suspicion of committing a crime or under case-filing investigation by
securities regulatory authorities or other competent authorities on
suspicion of violating laws or regulations;
(3) Having been subject to measures by securities regulatory
authorities in connection with securities violations including being
identified as an inappropriate person having business activities
restricted or being banned from the securities market and such
measures remain in effect;
(4) Having been subject to measures by a stock exchange or other
legally approved national securities trading venues in connection with
117Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
securities violations including refusing to accept relevant documents
issued by such party for a specified period publicly determining such
party unfit to serve as a director or senior management of a listed
company or being identified by the Securities Association of China as
unfit to engage in relevant businesses and such measures remain in
effect;
(5) Having committed material violations being suspected of
material violations or having been subject to material administrative
penalties with serious circumstances in the past three years.
5. Any breach of the above commitments shall result in legal
liabilities being borne in accordance with the law.# Commitment on Clear Title to the Target Assets and Absence of
Disputes
1. The Target Company is an enterprise duly incorporated and validly
existing with no circumstances affecting its lawful existence. The
Company legally holds 100% equity interest in the Target Company
directly or indirectly through its Dutch subsidiary. The procedures for
the Company / the Dutch subsidiary to acquire the equity interest in
the Target Company are legal and compliant and all investment
consideration and/or transfer consideration have been fully paid; the
registered capital / share capital of the Target Company corresponding
to its equity interest has been fully contributed with no defects in
capital contribution such as under-capitalization unlawful withdrawal
of capital contributions or false capital contributions.
2. The Company legally owns full rights to the equity interest in the
Target Company directly or indirectly through its Dutch subsidiary.The title to the equity interest in the Target Company is clear with no
entrusted shareholding trust shareholding or any other form of
shareholding on behalf of others. No security interests such as
mortgage pledge or lien or any other third-party rights have been
created over such equity interest; there is no seal freeze custody or
other circumstances prohibiting or restricting its transfer; there are no
known or potential disputes or controversies in relation to such equity
interest nor any pending or foreseeable legal proceedings such as
litigation arbitration or judicial enforcement.
3. The Company warrants that the aforesaid status shall continue until
the date on which the equity interest in the Target Company is
transferred and delivered to the Buyer pursuant to the transaction
agreement reached by all parties to this transaction or the date on
which this transaction is terminated (whichever occurs earlier) and
that there are no material obstacles to the completion of the transfer
118Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
and delivery procedures for the equity interest in the Target Company
pursuant to the transaction agreement reached by all parties to this
transaction.
4. In the event of any breach of the above statements and
commitments the Company shall bear legal liabilities in accordance
with the law.# Explanation on Confidentiality Measures and Confidentiality
Systems Adopted
1. In connection with this transaction the Company has adopted
adequate and necessary confidentiality measures and established strict
and effective confidentiality systems in strict compliance with the
requirements of laws regulations and regulatory documents including
the *Securities Law* the *Measures for the Administration of
Material Asset Restructuring of Listed Companies* the *Measures
for the Administration of Information Disclosure by Listed
Companies* the *Regulatory Guidelines for Listed Companies No. 5
– Rules for the Registration of Inside Information Insiders of Listed
Companies* as well as the provisions of the Company’s articles of
association and internal management systems.
2. When conducting preliminary consultations and follow-up
communications with relevant parties regarding this transaction the
Company adopted necessary confidentiality measures limited the
scope of persons with knowledge of relevant sensitive information
and properly registered inside information insiders.
3. The Company has executed confidentiality agreements with the
securities service institutions involved in this transaction or included
confidentiality clauses in relevant agreements stipulating the
confidentiality responsibilities and obligations of all parties.
4. The Company has repeatedly reminded inside information insiders
to strictly abide by the confidentiality systems fulfill confidentiality
obligations and not disclose or divulge inside information or trade the
Company’s stocks using inside information before such inside
information is disclosed in accordance with the law.
5. The Company attaches great importance to the administration of
inside information. In accordance with the *Regulatory Guidelines for
Listed Companies No. 5 – Rules for the Registration of Inside
Information Insiders of Listed Companies* and other relevant
provisions it has strictly controlled the scope of inside information
insiders promptly recorded the list of inside information insiders and
the planning process at the stages of negotiation planning
119Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
demonstration and consultation strictly prepared inside information
insider files and transaction progress memoranda as required by the
Shenzhen Stock Exchange and submitted the same to the Shenzhen
Stock Exchange in a timely manner.# Statement and Letter of Commitment on the Absence of Related
Party Relationship with the Transaction Counterpart
1. As of the date of this statement and commitment letter the
Company its controlling shareholder actual controller directors
senior management and enterprises controlled by any of the
foregoing parties have no related party relationship with the
transaction counter-party and the enterprises or entities controlling the
transaction counter-party. The transaction counter-party does not hold
any shares in the Company directly or indirectly in any manner nor
has it recommended any directors or senior management to the
Company.
2. The contents of this statement and commitment letter are true
accurate and complete. In the event of any false records misleading
statements or material omissions the Company shall bear
corresponding legal liabilities.The period from
1. During the period from the announcement date of the first board the announcement
resolution of the listed company approving the proposals relating to date of the first
Tang Zhuolin this transaction to the completion of the implementation of this resolution of the
Tang transaction if I hold shares in the listed company I have no plan to board of directors
ZhuomianQiu reduce my holdings of such shares. of the listed
Yezhi Feng
Jia Li Ketian Tu Other Commitments 2. If the listed company undertakes any ex-rights events including
company In normal progress
Haichuan Feng capitalization of reserves bonus issues or rights issues from the date
28 Nov 2025 approving the of fulfillment
Zhidong Chen of signing this commitment letter until the completion of the
proposals in
Huiyi Shao implementation of this transaction any additional shares obtained by
relation to this
me therefrom shall also be subject to the above commitment. transaction to theYongfeng date of full
3. I shall bear legal liabilities in accordance with the law in the event completion of the
of any breach of the above commitments. implementation of
this transaction.# Letter of Commitment on the Authenticity Accuracy and The period from
Fosber S.p.A Completeness of Information Provided the announcement
Fosber Asia Other Commitments 1. The Company warrants that it will promptly provide the listed 28 Nov 2025 date of the first In normal progress
Tiru?a Asia company with materials and information relating to this transaction resolution of the of fulfillment
and that all materials and information supplied in the course of this board of directors
transaction are true accurate and complete without any false records of the listed
120Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
misleading statements or material omissions. In the event that any company
false records misleading statements or material omissions in the approving the
materials and/or information provided by the Company cause losses proposals in
to the listed company or investors the Company shall be liable for relation to this
compensation in accordance with the law. transaction to the
2. The Company warrants that all materials and information provided date of full
to all intermediaries participating in this transaction are true accurate completion of the
and complete; all materials furnished are original written documents implementation of
or duplicate copies and such duplicates or copies are consistent with this transaction.the original documents or originals. The signatures and seals on all
the aforementioned documents provided by the Company are
authentic the signatories of such documents are duly authorized and
have validly executed the same and there exist no false records
misleading statements or material omissions.
3. The Company warrants that it has fulfilled its statutory disclosure
and reporting obligations and there are no contracts agreements
arrangements or other matters that are required to be disclosed but
have not been disclosed.
4. In accordance with the progress of this transaction the Company
will promptly provide relevant information and materials pursuant to
the provisions of laws regulations rules the China Securities
Regulatory Commission and the Shenzhen Stock Exchange and
warrants that the information and materials to be provided
continuously shall continue to meet the requirements of being true
accurate complete and valid.
5. The Company shall bear legal liabilities in accordance with the law
in case of any breach of the above commitments.# Letter of Commitment on Compliance and Good Faith
1. The Company is a legal entity duly incorporated and validly
existing under the laws of its place of incorporation and possesses the
lawful qualification to participate in this transaction execute
transaction documents in connection with this transaction and
exercise and perform the rights and obligations under the aforesaid
relevant transaction documents.
2. The Company its directors and senior management have not been
subject to administrative penalties (except those obviously unrelated
to the securities market) or criminal penalties whether inside or
outside the People’s Republic of China in the past five years nor
have they been involved in any material civil litigation or arbitration
relating to economic disputes. As of the date hereof there are no
121Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
pending or potential material litigations arbitrations or administrative
penalties against the Company whether inside or outside the
People’s Republic of China.
3. The Company its directors and senior management have
maintained good credit standing in the past five years. None of them
have defaulted on the repayment of large debts failed to perform
commitments illegally occupied funds provided illegal external
guarantees been subject to administrative regulatory measures by
China’s securities regulatory authorities or disciplinary sanctions by
stock exchanges been listed as a joint disciplinary offender or a
dishonest judgment debtor or committed any serious bad faith acts in
the securities market. There are no circumstances that seriously impair
the legitimate rights and interests of investors and the public interests.
4. The Company its directors and senior management do not fall
under any of the following circumstances:
(1) Having been publicly reprimanded by a stock exchange whether
inside or outside the People’s Republic of China in the most recent
year;
(2) Being under case-filing investigation by a judicial authority
whether inside or outside the People’s Republic of China on
suspicion of committing a crime or under case-filing investigation by
securities regulatory authorities or other competent authorities
whether inside or outside the People’s Republic of China on
suspicion of violating laws or regulations;
(3) Having been subject to measures by securities regulatory
authorities whether inside or outside the People’s Republic of
China in connection with securities violations including being
identified as an inappropriate person having business activities
restricted or being banned from the securities market and such
measures remain in effect;
(4) Having been subject to measures by a stock exchange or other
legally approved national securities trading venues whether inside or
outside the People’s Republic of China in connection with
securities violations including refusing to accept relevant documents
issued by such party for a specified period publicly determining such
party unfit to serve as a director supervisor or senior management of
a listed company or being identified by a securities association
whether inside or outside the People’s Republic of China as unfit to
engage in relevant businesses and such measures remain in effect;
122Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
(5) Having committed material violations being suspected of material
violations or having been subject to material administrative penalties
with serious circumstances in the past three years.
5. Any breach of the above commitments shall result in legal
liabilities being borne in accordance with the law.# Commitment on Non-Disclosure of Inside Information and Non-
Participation in Insider Trading
1. Neither the Company nor its directors supervisors senior
management controlling shareholder actual controller nor
enterprises controlled by any of the foregoing parties are subject to
any of the circumstances set forth in Article 12 of the *Regulatory
Guidelines for Listed Companies No. 7 – Supervision of Abnormal
Stock Trading Related to Material Asset Restructuring of Listed
Companies*; that is none of them are under case-filing investigation
or inspection in connection with suspected insider trading relating to
this transaction and none of them have been subject to administrative
penalties by the China Securities Regulatory Commission or criminal
liability pursued by judicial authorities for insider trading related to
material asset restructuring in the past thirty-six months.
2. Neither the Company nor its directors supervisors senior
management controlling shareholder actual controller nor
enterprises controlled by any of the foregoing parties have illegally
disclosed any inside information relating to this transaction or
engaged in insider trading by illegally using such inside information;
the Company warrants to take necessary measures to keep strictly
confidential all materials and information involved in this transaction.
3. Any breach of the above statements and commitments shall result
in legal liabilities being borne in accordance with the law.# Explanation on Confidentiality Measures Adopted
1. The Company has strictly fulfilled its confidentiality obligations in
respect of the information relating to this transaction prior to its
lawful disclosure strictly controlled the scope of insiders with
knowledge of inside information in connection with this transaction
and adopted adequate and necessary confidentiality measures for this
transaction.
2. The Company attaches great importance to the administration of
inside information cooperates with the listed company to strictly
control the scope of insiders and fills in the insider registration form.
3. The Company has repeatedly reminded the relevant insiders to
fulfill their confidentiality obligations and responsibilities and
123Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
prohibited them from trading securities of the listed company
disclosing such inside information or advising others to trade
securities of the listed company prior to the public disclosure of such
inside information.
4. The Company has not illegally disclosed any inside information
relating to this transaction and/or engaged in insider trading by
illegally using inside information and warrants to take necessary
measures to keep strictly confidential all materials and information
involved in this transaction.
5. Any breach of the above statements shall result in legal liabilities
being borne in accordance with the law.Letter of Commitment on the Authenticity Accuracy and
Completeness of Information Provided
1. I warrant that I will promptly provide the listed company with the
necessary materials and information relating to this transaction and
that all materials and information supplied by me in the course of this
transaction are true accurate and complete without any false records
misleading statements or material omissions. In the event that any
false records misleading statements or material omissions in the The period from
materials and/or information provided by me cause losses to the listed the announcement
company or investors I shall be liable for compensation in date of the first
accordance with the law. resolution of the
2. I warrant that all materials and information provided to all board of directors
intermediaries participating in this transaction are true accurate and
He Baohua Zhao of the listedcomplete; all materials furnished are original written documents or
QingjunChen companyOther Commitments duplicate copies and such duplicates or copies are consistent with the In normal progressKeyu Chen 28 Nov 2025 approving theoriginal documents or originals. The signatures and seals on all the of fulfillment
Yingpeng proposals inaforementioned documents provided by me are authentic the relation to this
signatories of such documents are duly authorized and have validly transaction to the
executed the same and there exist no false records misleading date of full
statements or material omissions. completion of the
3. In accordance with the progress of this transaction I will promptly implementation of
provide relevant information and materials pursuant to the provisions this transaction.of laws regulations rules the China Securities Regulatory
Commission and the Shenzhen Stock Exchange and warrant that the
information and materials to be provided continuously shall continue
to meet the requirements of being true accurate complete and valid.
4. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.Letter of Commitment on Compliance and Good Faith
124Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
1. I am a natural person with full capacity for civil conduct and civil
rights possessing and complying with the qualifications for holding
office and obligations prescribed by the Company Law of the People's
Republic of China the Listing Rules of the Shenzhen Stock Exchange
and other laws regulations regulatory documents as well as the
constitutional documents of the Target Company. My holding of
office (if any) is appointed through statutory procedures; I do not
engage in any holding of office or part-time employment prohibited
by relevant laws regulations regulatory documents the Articles of
Association relevant regulatory authorities or part-time employers (if
any).
2. I have not been subject to any administrative penalties (except
those obviously unrelated to the securities market) or criminal
penalties in the past five years nor have I been involved in any
material civil litigation or arbitration relating to economic disputes.As of the date hereof there are no pending or potential material
litigations arbitrations or administrative penalties against me.
3. I have maintained good credit standing in the past five years. I have
not defaulted on the repayment of large debts failed to perform
commitments been subject to administrative regulatory measures by
China’s securities regulatory authorities or disciplinary sanctions by
stock exchanges been listed as a joint disciplinary offender or a
dishonest judgment debtor or committed any serious bad faith acts in
the securities market. In the past three years I have not committed
any material violations been suspected of material violations or been
subject to material administrative penalties with serious
circumstances. I have not been placed on file for investigation by a
judicial authority on suspicion of committing a crime or placed on
file for investigation by China’s securities regulatory authorities or
other competent authorities on suspicion of violating laws or
regulations.
4. I shall bear legal liabilities in accordance with the law in case of
any breach of the above commitments.Letter of Commitment on Non-Disclosure of Inside Information and
Non-Participation in Insider Trading
1. Neither I nor the enterprises under my control are subject to any of
the circumstances set forth in Article 12 of the Regulatory Guidelines
for Listed Companies No. 7 – Supervision of Abnormal Stock
Trading Related to Material Asset Restructuring of Listed Companies;
that is neither I nor such enterprises are under case-filing
investigation or inspection in connection with suspected insider
125Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
trading relating to this transaction and neither I nor such enterprises
have been subject to administrative penalties by the China Securities
Regulatory Commission or criminal liability pursued by judicial
authorities for insider trading related to material asset restructuring in
the past thirty-six months.
2. Neither I nor the enterprises under my control have illegally
disclosed any inside information relating to this transaction or
engaged in insider trading by illegally using such inside information; I
warrant to take necessary measures to keep strictly confidential all
materials and information involved in this transaction.
3. I shall bear legal liabilities in accordance with the law in case of
any breach of the above statements and commitments.Explanation on Confidentiality Measures Adopted
1. I have strictly fulfilled my confidentiality obligations in respect of
the information relating to this transaction prior to its lawful
disclosure and adopted adequate and necessary confidentiality
measures for this transaction.
2. I attach great importance to the administration of inside
information cooperate with the listed company to strictly control the
scope of insiders and fill in the insider registration form.
3. I have not illegally disclosed any inside information relating to this
transaction and/or engaged in insider trading by illegally using inside
information and I warrant to take necessary measures to keep strictly
confidential all materials and information involved in this transaction.
4. I shall bear legal liabilities in accordance with the law in case of
any breach of the above statements.Commitment Letter on the Truthfulness Accuracy and Completeness The period from
of Information Provided the announcement
1. The Company warrants that the Company and its directors/senior date of the first
management personnel will promptly provide the listed company with resolution of the
relevant materials and information in connection with this transaction board of directors
Foresight Italy and that all materials and information provided by the Company in the of the listed
BidCo S.p.A.; Other Commitments course of this transaction are true accurate and complete free from 28 Nov 2025 company In normal progress
Foresight US any false records misleading statements or material omissions. If the approving the
of fulfillment
provided materials and/or information contain false records proposals in
misleading statements or material omissions that cause losses to the relation to this
listed company or investors the Company shall bear compensation transaction to the
liability in accordance with the law. date of full
2. The Company warrants that all materials and information provided completion of the
by the Company to each intermediary institution participating in this implementation of
126Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
transaction are true accurate and complete. The provided materials this transaction.are either original written materials or duplicate materials and the
duplicate copies or photocopies of the materials are consistent with
the original materials or originals. The signatures and seals on all
documents provided by the Company are authentic the signatories of
such documents have been duly authorized and have validly signed
the documents and there are no false records misleading statements
or material omissions.
3. In accordance with the progress of this transaction the Company
and its directors/senior management personnel shall in accordance
with the relevant provisions of laws regulations rules the China
Securities Regulatory Commission (CSRC) and the Shenzhen Stock
Exchange (SZSE) promptly provide relevant information and
materials and ensure that the continuously provided information and
materials still meet the requirements of being true accurate complete
and valid.
4. If the Company violates any of the above commitments the
Company shall bear corresponding legal liabilities in accordance with
the law.Commitment Letter on Compliance and Good Faith
1. The Company is a legal entity legally established in accordance
with the laws of its place of incorporation and validly existing and
has obtained all necessary approvals and authorizations to participate
in and implement this transaction sign transaction documents in
connection with this transaction and exercise and perform the rights
and obligations under such transaction documents.
2. The directors and senior management personnel of the Company
are natural persons with full capacity for civil conduct and civil rights
who meet and comply with the qualifications and obligations
prescribed by applicable laws regulations and the constitutional
documents of the Company and their appointment is made through
legal procedures. The aforementioned personnel have no
circumstances that are prohibited by applicable laws regulations the
Company’s constitutional documents regulatory authorities or part-
time employers (if any) with respect to their tenure or concurrent
positions.
3. In the past five years neither the Company nor its directors and
senior management personnel have been subject to any administrative
penalties (except those obviously unrelated to the securities market)
or criminal penalties nor have they been involved in any major civil
litigation or arbitration related to economic disputes. As of the date of
127Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
this commitment letter the Company has no pending or potential
major litigation arbitration or administrative penalties at home or
abroad.
4. In the past five years the Company and its directors and senior
management personnel have maintained a good credit standing with
no defaults on large debts failure to fulfill commitments
administrative regulatory measures imposed by securities regulatory
authorities disciplinary sanctions by stock exchanges inclusion in the
list of joint disciplinary targets or dishonest persons subject to
enforcement or serious securities market misconduct. There are no
circumstances that harm the legitimate rights and interests of investors
or the public interest.
5. The Company and its directors and senior management personnel
do not fall under any of the following circumstances: (1) being
publicly reprimanded by a stock exchange at home or abroad in the
past year; (2) being subject to case-filing investigation by judicial
authorities at home or abroad on suspicion of a crime or being subject
to investigation by securities regulatory authorities at home or abroad
on suspicion of violating laws or regulations; (3) being subject to
measures such as being identified as an inappropriate person having
business activities restricted or being banned from the securities
market by securities regulatory authorities at home or abroad with
such measures still in effect; (4) being subject to measures such as the
stock exchange or other legally approved national securities trading
venues refusing to accept relevant documents issued by them within a
certain period publicly determining that they are unfit to serve as
directors supervisors or senior management personnel or being
identified by securities associations as unfit to engage in relevant
businesses with such measures still in effect; (5) having committed
major illegal acts being suspected of major illegal acts or being
subject to major administrative penalties with serious circumstances
in the past three years.
6. If the Company violates any of the above commitments it shall
bear corresponding legal liabilities in accordance with the law.Statement and Commitment on No Insider Trading and
Confidentiality
1. Neither the Company nor its directors supervisors senior
management personnel controlling shareholders actual controllers
nor the enterprises controlled by the aforementioned entities shall be
subject to the circumstances specified in Article 12 of the Regulatory
Guidelines for Listed Companies on Abnormal Trading Related to
128Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
Major Asset Restructurings. Specifically there shall be no case-filing
investigation or investigation by judicial authorities or securities
regulatory authorities at home or abroad due to suspected insider
trading in connection with this transaction and no administrative
penalties or criminal liability shall be imposed by the CSRC or
judicial authorities for insider trading related to major asset
restructurings in the past thirty-six months.
2. Neither the Company nor its directors supervisors senior
management personnel controlling shareholders actual controllers
nor the enterprises controlled by the aforementioned entities shall
have the act of illegally disclosing inside information related to this
transaction using such inside information for insider trading or
failing to keep the information confidential. The Company shall take
necessary measures to strictly keep confidential all materials and
information involved in this transaction.
3. The Company and its directors supervisors and senior management
personnel shall strictly perform their confidentiality obligations with
respect to the information related to this transaction prior to its legal
disclosure strictly control the scope of insiders of inside information
in this transaction and adopt sufficient and necessary confidentiality
measures.
4. The Company and its directors supervisors and senior management
personnel attach great importance to the management of inside
information cooperate with the listed company to strictly control the
scope of insiders and fill in the insider registration form.
5. The Company has repeatedly reminded and informed the relevant
insiders of their confidentiality obligations and responsibilities and
prohibited them from trading the securities of the listed company
disclosing inside information or advising others to trade the securities
of the listed company prior to the public disclosure of inside
information.
6. If the Company violates any of the above statements and
commitments it shall bear corresponding legal liabilities in
accordance with the law.Statement and Commitment on No Affiliated Relationship with the
Listed Company
1. As of the date of issuance of this statement and commitment letter
there is no affiliated relationship between the Company the
enterprises controlled by the Company the enterprises controlling the
Company and the listed company its controlling shareholders actual
129Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
controllers directors supervisors senior management personnel and
the enterprises controlled by the aforementioned entities of the listed
company. The Company does not hold any shares of the listed
company directly or indirectly in any form nor does it recommend
directors supervisors or senior management personnel to the listed
company.
2. If there is any change in the above circumstances the Company
shall promptly inform the listed company.
3. The contents of this statement and commitment letter are true
accurate and complete. If there are any false records misleading
statements or material omissions the Company shall bear
corresponding legal liabilities.Commitment Letter on the Source of Funds for the Transaction
1. The funds used by the Company to pay the consideration for this
transaction (the "Acquisition Funds") are derived from the
Company’s own funds and/or funds raised through legal means. The
source of the Acquisition Funds is legal and compliant and the funds
will be in place in a timely manner. There is no circumstance where
the Acquisition Funds are directly or indirectly derived from the listed
company no circumstance where the listed company provides
guarantees for the Company’s financing (if any) related to the
Acquisition Funds no relevant arrangements for short-term debt
repayment caused by the Acquisition Funds no circumstance where
the listed company directly or through related parties provides
financial assistance or compensation to the Company and its
investors and no arrangement for paying the Acquisition Funds on
behalf of other third parties or holding the equity of the target
company involved in this transaction on behalf of others.
2. The Company warrants that the above contents are true accurate
and complete without any false records misleading statements or
material omissions. If the Company violates the above statements and
commitments it shall bear corresponding legal liabilities in
accordance with the law.
1. Any related party transactions that are unavoidable or conducted for
Commitments on Non- reasonable reasons between myself / other enterprises under my
Tang Zhuolin competition Related control on the one hand and Dongfang Jingong and its holding Long-term In normal progress
Tang Zhuomian Party Transactions and subsidiaries on the other hand shall be carried out fairly and 25 April 2017 effective of fulfillment
Fund Occupation reasonably in strict compliance with market principles and the general
principles of equality mutual benefit and equal value for value. In
respect of related party transactions between myself / other enterprises
130Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
under my control and Dongfang Jingong and its holding subsidiaries
I shall enter into agreements in accordance with the law follow
statutory procedures and fulfill information disclosure obligations
pursuant to the provisions of applicable laws regulations regulatory
documents the articles of association of Dongfang Jingong and other
corporate governance rules so as to ensure that the legitimate rights
and interests of the listed company and the majority of minority
shareholders are not prejudiced through related party transactions.
2. When the authoritative bodies of Dongfang Jingong consider and
deliberate on related party transaction matters involving myself or
other enterprises under my control I shall take the initiative to fulfill
my obligation of withdrawal in accordance with the law and such
transactions shall only be implemented after being reviewed and
approved by the competent authorities.
3. I undertake not to obtain any improper benefits through related
party transactions or cause Dongfang Jingong and its holding
subsidiaries to assume any improper obligations. Should any breach
of the above commitments result in losses to Dongfang Jingong or its
holding subsidiaries I shall be liable for compensating all such losses.
1. The undertaker and companies controlled by it are not engaging in
any business the same as similar to or competing with the business of
the listed company and companies controlled by it and they will
neither in any way engage in or assist others in engaging in any
business that competes or may compete with the business of the listed
company and companies controlled by it nor merge or substantially
invest in (or jointly hold) directly or indirectly other companies
engaging in any business that competes or may compete with the
business of the listed company and companies controlled by it.Commitments on Non- 2. 2. If the listed company engages in a new business sector the
Tang Zhuolin competition Related undertaker will not engage in any business that competes with such a 25 November Long-term In normal progress
Tang Zhuomian Party Transactions and new business of the listed company except with the prior written 2019 effective of fulfillment
Fund Occupation consent of the listed company.
3. 3. If any business opportunity obtained by the undertaker from any
third party completes or may compete with the business of the listed
company and companies controlled by it the undertaker will
immediately inform and make every effort to deliver the business
opportunity to the listed company. 4. The undertaker will not in any
way use the information or other resources obtained from the listed
company to conduct any act that harms the interests of the listed
company. 5. In case of any losses to the listed company as a result of
breach of these undertakings by the undertaker the undertaker will
131Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
make thorough timely and full compensation for all such losses and
take active measures to eliminate the adverse effects caused thereby.
1. The undertaker will refrain from any illegal occupation of the
funds and assets of the listed company and will never require the
listed company to provide any form of guarantee to it or companies
controlled by it under any circumstances.
2. 2. The undertaker will to the extent possible avoid and minimize
related-party transactions with the listed company and for all related-
party transactions unavoidable or arising from a reasonable reason it
will conduct following the principle of voluntary fair and reasonable
market pricing and according to normal market trading conditions
Commitments on Non- sign agreements and go through procedures according to law abide by
Tang Zhuolin competition Related relevant laws regulations normative documents and articles of 25 November Long-term In normal progress
Tang Zhuomian Party Transactions and association of the listed company perform internal decision-making 2019 effective of fulfillment
Fund Occupation and approval procedures according to law and timely perform the
obligation of information disclosure so as to ensure that the related-
party transactions are fairly and reasonably priced and conducted
under fair trading conditions and that it will not damage the legitimate
rights or interests of the listed company and its shareholders through
related-party transactions.
3. 3. In case of any losses to the listed company as a result of breach
of these undertakings by the undertaker the undertaker will make
thorough timely and full compensation for all such losses and take
active measures to eliminate the adverse effects caused thereby.
1. I will not overstep my authority to intervene in the operation and
management of Dongfang Precision will not occupy the interests of
Dongfang Precision and will earnestly take corresponding measures
to fill up the diluted spot returns of Dongfang Precision. 2. After the
CSRC and Shenzhen Stock Exchange otherwise release the measures
to fill up diluted spot returns and opinions and implementation rules
Tang Zhuolin for its undertakings if Dongfang Precision's corresponding policies
Tang Zhuomian Other Commitments and undertakings fail to meet such provisions I will immediately
25 November Long-term In normal progress
submit a supplementary undertaking to the CSRC and Shenzhen 2019 effective of fulfillment
Stock Exchange as required in order to be compliant. 3. I undertake to
earnestly take the corresponding measures formulated by the listed
company to fill up diluted spot returns and to earnestly fulfil my
undertakings. If I violate such undertaking(s) and cause losses to the
Company or investors I am willing to bear the corresponding liability
for compensation according to law.Tang Zhuolin Other Commitments 1. After the relevant transaction the undertaker will continue to 25 November Long-term In normal progress
132Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of the
Commitments Commitments Types of Commitments Contents of Commitments making of
Term of fulfillment of
Commitments Commitments Commitments
Tang Zhuomian maintain the independence of the listed company in terms of staffing 2019 effective of fulfillment
asset business organization and finance in accordance with relevant
laws regulations and normative documents and will not conduct any
act that affects such independence or damages the interests of the
listed company and other shareholders and will effectively safeguard
the independence of the listed company in terms of staffing asset
business organization and finance. 2. This letter of undertaking shall
be effective and irrevocable as of the date when it is officially signed
by the undertaker. The undertaker warrants to fulfil the undertaking(s)
in good faith and the listed company has the right to supervise its
fulfillment. Where the undertaker fails to fulfil the undertaking(s) in
good faith of undertaking and thus cause actual losses to the listed
company the undertaker shall compensate the listed company for all
director or indirect losses caused thereby.I as a director/senior executive of the Company will faithfully and
diligently perform my duties safeguard the legitimate rights and
interests of the Company and all shareholders and make the
following undertakings to ensure that the Company's measures to fill
up returns will be effectively implemented.
1. I will not transfer benefits to other organizations or individuals for
free or under unfair conditions nor will I damage the interests of the
Company in other ways. 2. I will constrain my consumption
behaviour on the position. 3. I will not use the Company's assets to
He Weifeng Mai engage in any investment or consumption activities unrelated to my
Zhirong Peng performance of duties. 4. I will link the remuneration system
Xiaowei Qiu formulated by the Board of Directors or the Remuneration Committee
Yezhi Tang Other Commitments 25 November Long-term In normal progressto the implementation of the Company's measures to fill up returns. 5.Zhuolin Xie 2019 effective of fulfillmentIf the Company has an equity incentive program I will link the
Weiwei Zhou exercise conditions of the equity incentive program to be announced
Wenhui to the implementation of the Company's measures to fill up returns. 6.After this undertaking is given if the regulator puts forward other
requirements for the measures to fill up returns and the undertaking
and the undertaking fails to meet such requirements I will give a
supplementary undertaking according to the latest requirements of the
regulator. 7. I will effectively implement the Company's measures to
fill up returns and fully fulfil my corresponding undertakings and I
am willing to bear the corresponding liability for compensation
according to law if I violate such undertaking(s) and cause losses to
the Company or investors.Commitments Tang Zhuolin Commitments on Non- Before the fact that I am (or the Company is) a major shareholder of Long-term In normal progress
made in IPO or Tang Zhuomian
18 August 2011
competition Related the issuer is changed I (or the Company) will not directly or effective of fulfillment
133Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Cause of Parties of Date of theTypes of Commitments Contents of Commitments making of Term of fulfillment ofCommitments Commitments Commitments Commitments Commitments
refinancing Party Transactions and indirectly in any way (including but not limited to sole
Fund Occupation proprietorship joint venture and holding stocks or interests in other
companies or enterprises) engage in any business or activity that
competes or may compete with the business of the issuer. I (The
Company) shall compensate the issuer for any loss caused to it as a
result of the failure to fulfil the undertaking to avoid horizontal
competition.If relevant government or judicial authorities decide that Dongfang
Precision or Weike Dongmeng need to make a supplementary
Tang Zhuolin payment for employees' public housing provision or Dongfang
Tang Zhuomian Other Commitments Precision or Weike Dongmeng is subject to any late fee fine or loses 18 August 2011
Long-term In normal progress
for failing to pay the public housing provision for some employees I effective of fulfillment
will unconditionally and in full bear such supplementary payment
late fees and fines.Commitments
related to equity
incentives
Commitments
made to minority
shareholders of
the Company
Other
Commitments
Whether the
Commitments
were timely Yes
performed
Where the
Company failed
to fulfill an
commitments on
time it shall
explain in detail Not applicable
the reasons for
failing to do so
and the
subsequent plan
134Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still within the forecast period explain why the forecast
has been reached for the Reporting Period.□Applicable √ Not applicable
135Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□Applicable √ Not applicable
No such cases in the Reporting Period.III Irregularities in Provision of Guarantees
□Applicable √ Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Last “Modified Opinion” on
Financial Statements
□Applicable √ Not applicable
V Explanations Given by the Board of Directors and the Independent Directors (if any)
Regarding the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□Applicable √ Not applicable
VI YoY Changes to Accounting Policies and Estimates and Correction of Material
Accounting Errors
□Applicable √ Not applicable
During the reporting period the Company had no changes in accounting policies or accounting estimates nor any material
corrections of accounting errors.VII YoY Changes to the Scope of the Consolidated Financial Statements
? Applicable □ Not applicable
1. During the year the Company newly established the following subsidiaries: Suzhou Chaoju International Trading Co. Ltd.
Suzhou Xuanliu International Trading Co. Ltd. Suzhou Yuanqi International Trading Co. Ltd. Suzhou Cangshu International
Trading Co. Ltd. Suzhou Xunce International Trading Co. Ltd. Beijing Lanfengyin Trading Co. Ltd. Dongfang Primo Robotics
(Guangdong) Co. Ltd. Grandvoyage Holdings (Singapore) Pte. Ltd. and Starlight Precision Technology (Singapore)Co. Ltd. All
these entities have been included in the consolidation scope from their respective dates of establishment.During the reporting period the Company participated in the capital contribution to Changzhou Xinchen No.2 Venture Capital
Partnership (Limited Partnership) which has been included in the consolidated financial statements from the date of completion of
the capital contribution.
2. Tianjin Hangchuang Zhijin Investment Partnership (Limited Partnership) completed its liquidation and deregistration procedures
during the reporting period and has therefore been excluded from the consolidation scope as of its liquidation base date.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Ernst & Young Hua Ming LLP
The Company’s payment to the domestic independent auditor RMB 4.28 million
How many consecutive years the domestic independent auditor
has provided audit service for the Company 6 years
136Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Names of the certified public accountants from the domestic
independent auditor writing signatures on the auditor’s report Fu Jun and Lin Longqian
How many consecutive years the certified public accountants
have provided audit service for the Company 1 year for both Fu Jun and Liang Xinqi
Name of the overseas independent auditor (if any) Not applicable
The Company’s payment to the overseas independent auditor Not applicable
How many consecutive years the overseas independent auditor Not applicable
has provided audit service for the Company
Names of the certified public accountants from the overseas Not applicable
independent auditor writing signatures on the auditor’s report
How many consecutive years the overseas certified public Not applicable
accountants have provided audit service for the Company
Indicate whether the independent auditor was changed for the Reporting Period.□ Yes √ No
Independent auditor financial advisor or sponsor hired for the audit of internal control:
√ Applicable □ Not applicable
Ernst & Young Hua Ming LLP was appointed as the independent auditor of internal control for the Company for 2025 for a fee of
RMB 300000.IX Possibility of Delisting after the Disclosure of this Report
□Applicable √ Not applicable
X Insolvency and Reorganization
□Applicable √ Not applicable
No such cases in the Reporting Period.XI Significant Legal Matters
□Applicable √ Not applicable
No such cases in the Reporting Period.XII Punishments and Rectifications
□Applicable √ Not applicable
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□Applicable √ Not applicable
XIV Significant Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments
□Applicable √ Not applicable
137Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable √ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable √ Not applicable
No such cases in the Reporting Period.
5. Transactions between the Company and Related Financial Companies
□Applicable √ Not applicable
No such cases in the Reporting Period.
6. Transactions between Financial Companies Controlled by the Company and Related Parties
□Applicable √ Not applicable
No such cases in the Reporting Period.
7. Other Significant Related-Party Transactions
□Applicable √ Not applicable
No such cases in the Reporting Period.XV Significant Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
√ Applicable □ Not applicable
Unit: RMB'0000
138Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Guarantees provided by the Company as the parent and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure date Actual Actual Counter-
Guarantee
Obligor of the Line of
Having for a
guarantee line guarantee occurrence guarantee
Type of Security (if guarante Term of expired or related
announcement date amount
guarantee any) es (if guarantee
any) not party ornot
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure date Counter- Guarantee
Obligor of the Line of
Actual Actual Having for a
guarantee line guarantee occurrence guarantee
Type of Security (if guarante Term of
date amount guarantee any) es (if guarantee
expired or related
announcement any) not party ornot
From the
effective
date of the
security
28 April agreement
Tiru?a Asia 28 March 2024 10000 5904.18a Joint liability None None No No
2024 until three
years after
the
maturity of
the loan
Total approved line for such Total actual amount of such
guarantees in the Reporting 0 guarantees in the Reporting 5904.18
Period (B1) Period (B2)
Total approved line for such Total actual balance of such
guarantees at the end of the 10000 guarantees at the end of the 5904.18
Reporting Period (B3) Reporting Period (B4)
Guarantees provided between subsidiaries
Disclosure date Actual Actual Counter-
Guarantee
of the Line of Type of Security (if guarante Term of Having for aObligor guarantee line guarantee occurrence guaranteedate amount guarantee any) es (if guarantee
expired or related
announcement any) not party ornot
Two years
from the
date of
Parsun expiration
Power of the debt
Technology performanc
2025-04-26 30000 15 May 2025 7000 Joint liability None None No No
Baisheng e period
Internation stipulated
al in the
relevant
credit
agreement
Total approved line for such Total actual amount of such
guarantees in the Reporting 30000 guarantees in the Reporting 7000
Period (C1) Period (C2)
Total approved line for such Total actual balance of such
guarantees at the end of the 30000 guarantees at the end of the 7000
Reporting Period (C3) Reporting Period (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual guarantee
approved in the Reporting 30000 amount in the Reporting 12904.18
Period (A1+B1+C1) Period (A2+B2+C2)
Total approved guarantee Total actual guarantee
line at the end of the balance at the end of the
Reporting Period 40000 Reporting Period 12904.18
(A3+B3+C3) (A4+B4+C4)
Total actual guarantee amount (A4+B4+C4) as % of the
Company’s net assets 2.23%
139Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Of which:
Balance of guarantees provided for shareholders the
actual controller and their related parties (D) 0
Balance of debt guarantees provided directly or
indirectly for obligors with an over 70% debt/asset ratio 5904.18
(E)
Amount by which the total guarantee amount exceeds
50% of the Company’s net assets (F) 0
Total of the three amounts above (D+E+F) 5904.18
Joint liability possibly borne or already borne in the
Reporting Period for outstanding guarantees (if any) Not applicable
Guarantees provided in breach of prescribed procedures
(if any) Not applicable
a: The Company has provided a joint and several liability guarantee for the bank loan financing obtained by its subsidiary Tiru?a
Asia from an Asian bank.As of December 31 2025 the principal amount of the relevant bank loan was RMB 59.00 million with the
aggregate principal and interest amounting to RMB 59.0418 million.As stated in the Reply to the Inquiry Letter from the Shenzhen Stock Exchange Concerning the Material Asset Sale of Guangdong
Dongfang Precision Science & Technology Co. Ltd. disclosed by the Company on March 12 2026 the total outstanding principal
and interest of the bank loan payable by Tiru?a Asia was RMB 58.2857 million as of the date of such reply.Tiru?a Asia shall complete the repayment of the aforesaid principal and interest of the bank loan and release Dongfang Precision
from its joint and several liability guarantee obligations prior to the closing of the material asset sale project.
3. Cash Entrusted to Other Entities for Management
(1) Entrusted Wealth Management
√ Applicable □ Not applicable
Overview of the Entrusted Wealth Management in the Reporting Period
Unit: RMB’0000
Balance of Entrusted Wealth
Type Risk Characteristics Management Products during Overdue Uncollected Amount
the Reporting Period
Bank’s wealth management
product R2 35196.47 0
Securities firm’s wealth
management product R2、R3 6499.98 0
Trust product R3 1500 358.62
Specific circumstances where the Company as the sole principal entrusts financial institutions to conduct asset management or
invests in high-risk entrusted wealth management products with low security and poor liquidity.:
□ Applicable √ Not applicable
(2) Entrusted Loans
□Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□Applicable √ Not applicable
No such cases in the Reporting Period.XVI Use of Raised Funds
□Applicable √ Not applicable
No such cases in the Reporting Period.
140Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
XVII Other Significant Events
□Applicable √ Not applicable
No such cases in the Reporting Period.XVIII Significant Events of Subsidiaries
□Applicable √ Not applicable
141Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the period (+/-) After
Shares
as
Shares as
dividen
dividend
Percentage New d Percentage
Shares converted Other Subtotal Shares
(%) issues convert (%)
from
ed from
profit
capital
reserves
1. Restricted shares 223974533 18.37% 0 0 0 -8591378 -8591378 215383155 17.69%
1.1 Shares held by the
00.00%0000000.00%
government
1.2 Shares held by state-
00.00%0000000.00%
owned corporations
1.3 Shares held by other
22397453318.37%000-8591378-859137821538315517.69%
domestic investors
Including: Shares held by
00.00%0000000.00%
domestic corporations
Shares held by domestic
22397453318.37%000-8591378-859137821538315517.69%
individuals
1.4 Shares held by
00.00%0000000.00%
overseas investors
Including: Shares held by
00.00%0000000.00%
overseas corporations
Shares held by overseas
00.00%0000000.00%
individuals
2. Unrestricted shares 995071807 81.63% 0 0 0 6831378 6831378 1001903185 82.31%
2.1 RMB ordinary shares 995071807 81.63% 0 0 0 6831378 6831378 1001903185 82.31%
2.2 Domestically listed
00.00%0000000.00%
foreign shares
2.3 Overseas listed 0 0.00% 0 0 0 0 0 0 0.00%
142Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Before Increase/decrease in the period (+/-) After
Shares
as
Shares as
dividen
dividend
Percentage New d Percentage
Shares converted Other Subtotal Shares
(%) issues convert (%)
from
ed from
profit
capital
reserves
foreign shares
2.4 Others 0 0.00% 0 0 0 0 0.00%
3. Total shares 1219046340 100.00% 0 0 0 -1760000 -1760000 1217286340 100.00%
Reasons for share changes:
√ Applicable □ Not applicable
1. Repurchase and Cancellation of Restricted Shares under Equity Incentive
(1). The company held the 1st (Interim) shareholders’ meeting of 2024 on May 27 2024 which reviewed and approved the
"Proposal on the Failure to Meet the Unlocking Conditions for the Second Unlocking Period of the First Grant under the 2022
Restricted Stock Incentive Plan and the Repurchase and Cancellation of Some Restricted Stocks". On December 30 2024 the
company held the 5th (Interim) shareholders’ meeting of 2024 which reviewed and approved the "Proposal on the Repurchase and
Cancellation of Some Restricted Stocks". In accordance with the relevant provisions of the Measures for the Administration of Equity
Incentives of Listed Companies the company's 2022 Restricted Stock Incentive Plan and the Measures for the Assessment and
Administration of the Implementation of the 2022 Restricted Stock Incentive Plan the company decided to repurchase and cancel
1280000 restricted shares accounting for approximately 0.10% of the company's total share capital before the repurchase and
cancellation at a repurchase price of RMB 1 per share.On January 15 2025 the company disclosed the Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Stocks. China Securities Depository and Clearing Corporation Limited Shenzhen Branch confirmed that the procedures for
the repurchase and cancellation of 1280000 restricted shares have been completed.
(2). On April 25 2025 the company held the 14th (Interim) Meeting of the Fifth Board of Directors and the 12th (Interim)
Meeting of the Fifth Supervisory Board which reviewed and approved the "Proposal on the Failure to Meet the Unlocking
Conditions for the Third Unlocking Period of the First Grant under the 2022 Restricted Stock Incentive Plan and the Repurchase and
Cancellation of Some Restricted Stocks". In view of the failure to achieve the company-level performance assessment target for the
third unlocking period resulting in the failure to meet the unlocking conditions for the third unlocking period in accordance with the
incentive plan the company shall repurchase and cancel 480000 restricted shares held by 5 incentive recipients corresponding to the
third unlocking period of the first grant under the 2022 Restricted Stock Incentive Plan at the grant price. On May 12 2025 the
company held the 1st (Interim) shareholders’ meeting of 2025 which reviewed and approved the aforesaid proposal.On May 28 2025 the company disclosed the Announcement on the Completion of Repurchase and Cancellation of Some
Restricted Stocks. China Securities Depository and Clearing Corporation Limited Shenzhen Branch confirmed that the procedures for
the repurchase and cancellation of 480000 restricted shares have been completed..
2. Changes in Restricted shares of senior management
143Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
In early 2025 following changes to the shareholdings of Mr. Tang Zhuolin and Mr. Xie Weiwei both Directors and Senior
Executives of the Company in 2024 China Securities Depository and Clearing Corporation Limited calculated the statutory quota of
their transferable shares for the year 2025 at a rate of 25% based on their latest shareholding positions as of early 2025. The total
number of shares released from lock-up in the current period amounted to 7125900 shares.In September 2025 Mr. Xie Weiwei resigned from his positions as Director and Deputy General Manager of the Company. All of his
shareholdings in the Company were locked up and fully converted into restricted shares.In September 2025 Mr. He Baohua resigned from his position as Supervisor of the Company. All of his shareholdings in the
Company were locked up and fully converted into restricted shares.Approval of share changes:
√ Applicable □ Not applicable
During the reporting period for matters of share changes the Company has fulfilled the necessary approval procedures of the general
meeting of shareholders and the board of directors in accordance with laws regulations and the provisions of the Articles of
Association of the Company.Transfer of share ownership:
√ Applicable □ Not applicable
In the Reporting Period with respect to the transfers of share ownership involved in the “cancellation of some repurchased shares”
the Company completed the transfers with the Shenzhen branch of China Securities Depository and Clearing Co. Ltd. after they
were approved by the Shenzhen Stock Exchange.Effects of share changes on the basic earnings per share diluted earnings per share equity per share attributable to the
Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period
respectively:
□Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Increase in Repurchased
Opening Unlocked Closing
restricted and Reason for Date of
Shareholder restricted in the restricted
shares in the canceled in restriction unlocking
shares period shares
period the period
Restricted shares of 2 Jan
Xie Weiwei 564000 141000 141000 564000
senior management 2025
Restricted shares of
He Baohua Not460566 153522 614088
senior management applicable
Tang Zhuolin Restricted shares of 2 Jan203053176 0 6984900 196068276
senior management 2025
Participated in the Not
Feng Jia 560000 0 0 560000 0
Restricted Share applicable
144Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Increase in Repurchased
Opening Unlocked Closing
restricted and Reason for Date of
Shareholder restricted in the restricted
shares in the canceled in restriction unlocking
shares period shares
period the period
Incentive Plan
The other 4 awardees of the
Participated in the
reserved grant of the 2022
1200000 0 0 1200000 0 Restricted Share Not
Restricted Share Incentive applicable
Incentive Plan
Plan
Total 205837742 294522 7125900 1760000 197246364 -- --
3. Changes in Restricted Shares between the End of the Reporting Period and the Date of This Report
Disclosure
□Applicable √ Not applicable
II Issuance and Listing of Securities
1. Securities (Exclusive of Preference Shares) Issued in the Reporting Period
□Applicable √ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□Applicable √ Not applicable
3. Existing Staff-Held Shares
□Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
Number of
ordinary
Number of preference Number of preference shareholders
shareholders at
ordinary shareholders with with resumed voting rights at the
194513 the month-end 167770 0 0
shareholders at the resumed voting month-end prior to the disclosure
prior to the
period-end rights at the period- of this Report (if any)
disclosure of this
end (if any)
Report
5% or greater shareholders or top 10 shareholders(excluding lending of shares through the facility)
145Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Total shares Shares in pledge marked or
Name of Nature of Shareholding Increase/decrease in Restricted Unrestricted
held at the frozen
shareholder shareholder percentage the Reporting Period shares held shares held
period-end Status Shares
Domestic
Tang Zhuolin 21.26% 258837568 -2586800 196068276 62769292 In pledge 37290000
individual
Domestic
Tang Zhuomian 7.96% 96885134 0 0 96885134 NA 0
individual
Domestic
Qiu Yezhi 1.92% 23382388 0 17536791 5845597 NA 0
individual
Guangdong
Dongfang
Precision Science
& Technology Co. Others 1.75% 21330000 0 0 21330000 NA 0
Ltd. - 2024
Employee Stock
Ownership Plan
Hong Kong
Overseas
Securities Clearing 0.66% 8023395 -16771872 0 8023395 NA 0
corporation
Company Limited
China Merchants
Bank Co. Ltd. -
Southern CSI 1000
Exchange-Traded Others 0.64% 7816520 7816520 0 7816520 NA 0
Open-End Index
Securities
Investment Fund
China Merchants
Bank Co. Ltd. -
ChinaAMC CSI
1000 Exchange- Others 0.41% 4937300 4937300 0 4937300 NA 0
Traded Open-End
Index Securities
Investment Fund
Industrial and
Commercial Bank
of China Limited -
GF CSI 1000
Others 0.29% 3547700 3547700 0 3547700 NA 0
Exchange-Traded
Open-End Index
Securities
Investment Fund
Domestic
Zhang Jian 0.24% 2950000 -580000 0 2950000 NA 0
individual
Beixin Ruifeng Others 0.18% 2212177 0 0 2212177 NA 0
146Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Fund Management
Co. Ltd. -
Industrial and
Commercial Bank
of China Limited -
Beijing Hengyu
Tianze Investment
Management Co.Ltd.Strategic investor or general
corporation becoming a top-10
NA
shareholder in a rights issue (if
any)
Related or acting-in-concert parties Mr. Tang Zhuolin and Mr. Tang Zhuomian are brothers. On 18 August 2010 they signed the Agreement on Acting in Concert.among the shareholders above Apart from that the Company is not aware of any related or acting-in-concert parties among the other shareholders above.The holders of the Guangdong Dongfang Precision Science & Technology Co. Ltd. - 2024 Employee Stock Ownership Plan as a
Above shareholders entrusting or
whole waive the shareholder voting rights enjoyed by virtue of holding the underlying stocks through participation in this employee
entrusted with voting rights or
stock ownership plan while retaining other shareholder rights (including rights to asset returns such as dividend rights rights to
waiving voting rights
subscribe for new shares and rights to convert capital reserve into share capital).Top 10 shareholders including the
special account of repurchased NA
shares (if any)
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
Tang Zhuomian 96885134 RMB ordinary stock 96885134
Tang Zhuolin 62769292 RMB ordinary stock 62769292
Guangdong Dongfang Precision
Science & Technology Co. Ltd. -
21330000 RMB ordinary stock 21330000
2024 Employee Stock Ownership
Plan
Hong Kong Securities Clearing
8023395 RMB ordinary stock 8023395
Company Limited
China Merchants Bank Co. Ltd. -
Southern CSI 1000 Exchange-
7816520 RMB ordinary stock 7816520
Traded Open-End Index Securities
Investment Fund
Qiu Yezhi 5845597 RMB ordinary stock 5845597
China Merchants Bank Co. Ltd. -
ChinaAMC CSI 1000 Exchange-
4937300 RMB ordinary stock 4937300
Traded Open-End Index Securities
Investment Fund
Industrial and Commercial Bank of
3547700 RMB ordinary stock 3547700
China Limited - GF CSI 1000
147Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Exchange-Traded Open-End Index
Securities Investment Fund
Zhang Jian 2950000 RMB ordinary stock 2950000
Beixin Ruifeng Fund Management
Co. Ltd. - Industrial and
Commercial Bank of China 2212177 RMB ordinary stock 2212177
Limited - Beijing Hengyu Tianze
Investment Management Co. Ltd.Related or acting-in-concert parties
among top 10 unrestricted ordinary
Mr. Tang Zhuo Lin and Mr. Tang Zhuo Min are brothers and on August 18 2010 they entered into a "Letter of Agreement on
shareholders as well as between
Acting in Concert".The Company does not know whether there are any other related relationships or persons acting in concert
top 10 unrestricted ordinary
between the above shareholders.shareholders and top 10 ordinary
shareholders
Description of the participation of
the top 10 common shareholders in
Not applicable
the financing and securities
financing business (if any)
Shareholders holding more than 5% of shares the top 10 shareholders and the top 10 unrestricted tradable shareholders participating
in the refinancing shares lending business.□ Applicable √ Not applicable
The top 10 shareholders and the top 10 unrestricted tradable shareholders have changed compared with the previous period due to the
lending/returning reasons in the refinancing shares lending business.□ Applicable √ Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted
any agreed repurchase transactions during the Reporting Period.□ Yes √ No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by an individual
Type of the controlling shareholder: individual
Name of the controlling shareholder Nationality Residency in other countries or regions or not
Tang Zhuolin Chinese Not
Main occupation and position Chairman of the Board of Dongfang Precision
Interests held in other domestically and
overseas listed companies in the Reporting Not applicable
Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
148Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
No such cases in the Reporting Period.
3. Actual Controller and Acting-in-Concert Parties
Nature of the actual controller: domestic individual
Relationship with the actual Residency in other countries or
Name of the actual controller Nationality
controller regions or not
Tang Zhuolin Actual controller himself Chinese Not
Acting-in-concert party
Tang Zhuomian (contractual kinship-based and Chinese Not
common control-based)
Mr. Tang Zhuolin serves as the Chairman of the Board of Dongfang Precision as his main
Main occupation and position
occupation.Controlling interests in other
domestically and overseas listed Not applicable
companies in the past 10 years
The actual controller of the Company remained unchanged during the Reporting Period.Ownership and control relationship between the actual controller and the Company:
Tang Zhuolin Tang Zhuomian
21.26%7.96%
The Company
Indicate whether the actual controller controls the Company via trust or other ways of asset management.□ Applicable √ Not applicable
4. Shares Cumulatively Put in Pledge by the Company’s Controlling Shareholder or Biggest Shareholder
and Its Acting-in-Concert Parties Accounting for 80% of Their Shareholdings in the Company
□Applicable √ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable √ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□Applicable √ Not applicable
149Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
IV Share Repurchase in the Reporting Period
Share Repurchase in the Reporting Period
□ Applicable √ Not applicable
Progress on reducing the repurchased shares by way of centralized bidding:
□ Applicable √ Not applicable
V Preference Shares
□Applicable √ Not applicable
No preference shares in the Reporting Period.
150Guangdong Dongfang Precision Science & Technology Co. Ltd. Annual Report 2025
Part VII Corporate Bonds
□Applicable √ Not applicable
151Part VIII Corporate Financial Statement
Auditor’s Report
Type of Audit Opinion Standard Unreserved opinion
Signing date of the Auditor’s Report 23 March 2026
Name of the Audit Institution Ernst & Young Hua Ming LLP
Document number of the Auditor’s report Ernst & Young Hua Ming (2026) Auditor’s Report
No. 70022785_G01
Name of the Chinese Certified Public Accountant Fu Jun and Lin Longqian
Auditor’s Report
Ernst & Young Hua Ming (2026) Auditor’s Report No. 70022785_G01
Guangdong Dongfang Precision Science & Technology Co. Ltd.To the Shareholders of Guangdong Dongfang Precision Science & Technology Co. Ltd.:
I. Opinion
We have audited the financial statements of Guangdong Dongfang Precision Science & Technology
Co. Ltd. (hereinafter referred to as the “Company”) which comprise the consolidated and the
Company’s balance sheets as at 31 December 2025 the consolidated and the Company’s income
statements the consolidated and the Company’s statements of changes in equity and the consolidated
and the Company’s statements of cash flows for the year then ended and notes to the financial
statements.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and the Company’s financial position as at 31 December 2025 and the consolidated and
the Company’s financial performance and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises (“ASBEs”).II. Basis for Opinion
We conducted our audit in accordance with China’s Standards on Auditing “CSAs”. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company in
accordance with Chinese Certified Public Accountants Independence Standards No. 1 - Requirements
for Independence in Financial Statement Audit and Review Engagements and China Code of Ethics for
Certified Public Accountants (the “Code”) and we have fulfilled our other ethical responsibilities in
accordance with the Code. We complied with the independence requirements for audits of public
interest entities in our audit engagements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matter
Key audit matter is the matter that in our professional judgment was of most significance in our audit
of the financial statements of the current period. This matter was 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 this matter. For the matter below our description of how our audit addressed the
matter is provided in that context.
152We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report including in relation to these matters. Accordingly our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatements of the financial statements. The results of our audit procedures including procedures
performed to address the matter below provide the basis for our opinion on the accompanying financial
statements.III. Key Audit Matter (Cont’d)
Key audit matter: How our audit addressed the key audit
matter:
Impairment of goodwill
The carrying amount of goodwill amounted to The procedures performed to address this matter
RMB583170708.03 as at 31 December 2025 are as follows:
with an accumulated goodwill impairment
provision of RMB188852336.80 resulting in a (1) Performed internal control walk through and
net goodwill carrying value of executed control tests on identified critical
RMB394318371.23. control points;
(2) Assessed the identification of cash-generating
The Group's management performs goodwill unit by the Group's management and the
impairment testing at the end of each year. The goodwill allocated to the cash-generating
assessment of goodwill impairment testing was unit;
based on the recoverable amount of the relevant (3) Obtained reports on the assessment of
cash-generating unit to which the goodwill is goodwill impairment issued by the
allocated and the recoverable amount of such independent third-party asset appraisal
cash-generating unit was determined by the institution engaged by the management with
present value of the cash-generating unit's securities and futures-related business
expected future cash flows. In a goodwill qualifications;
impairment test the forecasting of future cash (4) Involved our internal valuation experts to
flows involved significant judgments and assess the rationality of the major
estimates including sales growth rate gross assumptions and assessment methods used
margin and discount rate. Because goodwill had by the Group's management when
a large carrying value and exerted a significant forecasting the recoverable amount of the
impact on the financial statements we identified cash-generating unit including the discount
goodwill impairment as a key audit matter. rate and long-term growth rate;
(5) Assessed the forecast revenue and operating
The accounting policies on and disclosures of performance for future years and comparing
goodwill were set out in Item 16 of Note III Item them with historical operating performance;
31 of Note III and Item 20 of Note V to the and
financial statements. (6) Evaluated the adequacy of the Group's
disclosures in the notes to the financial
statements.IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises all of the information included in the annual report other than the financial statements and
our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
153If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial
Statements
The management is responsible for the preparation and fair presentation of the financial statements in
accordance with ASBEs and for designing implementing and maintaining such internal control as the
management determines is necessary to ensure the preparation of financial statements to be free from
material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s
ability to continue as a going concern disclosing as applicable matters related to going concern and
using the going concern basis of accounting unless the management either intends to liquidate or to
cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with CSAs 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 CSAs we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. 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.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and based on the audit evidence obtained whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company’s ability to
continue as a going concern. If we conclude that a material uncertainty exists we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or
and 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.
(5) Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an audit opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We
remain solely responsible for our audit opinion.VI. Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)
154We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards (if applicable).From the matters communicated with those charged with governance we determine the matter that was
of most significance in the audit of the financial statements of the current period and is therefore the
key audit matter. We describe this matter in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when in extremely rare circumstances we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.Ernst & Young Hua Ming LLP Chinese Certified Public Accountant: Fu Jun
(Engagement Partner)
Chinese Certified Public Accountant: Lin Longqian
Beijing China 23 March 2026
Important Notice
This auditor’s report is an English translation of the auditor’s report for the audit
engagements which adopt CSAs. In case the English version does not conform to the
Chinese version the Chinese version prevails.
155Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Balance Sheet
31 December 2025 Expressed in Renminbi Yuan
Financial Statement
Assets Note V 31 December 2025 31 December 2024
Current assets
Cash and bank balances 1 2078919027.45 1729050383.34
Financial assets held for trading 2 766554477.49 788649332.18
Derivative financial assets 3 101000.75 2755081.17
Notes receivable 4 48393159.64 98048145.31
Accounts receivable 5 952021236.78 745862825.71
Receivables financing 6 19403276.39 16303982.64
Prepayments 7 37409930.97 28226195.35
Other receivables 8 31895695.08 40647410.48
Inventories 9 1119277121.91 1031899593.02
Contract assets 10 64541120.93 52151171.92
Current portion of non-current assets 11 24277934.25 8035336.42
Other current assets 12 114363170.02 60543096.49
Total current assets 5257157151.66 4602172554.03
Non-current assets
Long-term receivables 13 6212768.80 4047852.80
Long-term equity investments 14 302857592.30 113469148.58
Other non-current financial assets 15 817347878.10 539449588.63
Fixed assets 16 1084142895.08 681980621.79
Construction in progress 17 195841811.75 404826595.02
Right-of-use assets 18 69324297.36 64147198.31
Intangible assets 19 366942495.27 356564206.44
Goodwill 20 394318371.23 424989302.93
Long-term prepaid expenses 21 19601435.75 21718570.19
Deferred tax assets 22 180645019.96 222186749.21
Other non-current assets 23 29582694.40 93024609.05
Total non-current assets 3466817260.00 2926404442.95
Total assets 8723974411.66 7528576996.98
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
156Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Balance Sheet (Cont’d)
31 December 2025 Expressed in Renminbi Yuan
Liabilities and equity Note V 31 December 2025 31 December 2023
Current liabilities
Short-term borrowings 25 185516009.83 85390128.99
Derivative financial liabilities 26 93783840.98 206216239.00
Notes payable 27 241390245.31 144137609.00
Accounts payable 28 936107613.22 687235330.65
Contract liabilities 29 458557878.31 373931068.16
Employee benefits payable 30 163568530.12 139543012.38
Tax payable 31 46227078.24 69194598.03
Other payables 32 113131531.51 117617259.50
Current portion of non-current
liabilities 33 93012483.04 81630784.65
Other current liabilities 34 47297085.80 41832335.71
Total current liabilities 2378592296.36 1946728366.07
Non-current liabilities
Long-term borrowings 35 110985297.60 125482485.31
Lease liabilities 36 53367241.87 47666801.96
Long-term employee benefits
payable 37 13689047.85 13128052.34
Provisions 38 113899182.15 146820629.26
Deferred income 39 13073671.66 14790331.66
Deferred tax liabilities 22 2960791.33 2042929.48
Other non-current liabilities 40 4489204.26 7573539.20
Total non-current liabilities 312464436.72 357504769.21
Total liabilities 2691056733.08 2304233135.28
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
157Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Balance Sheet (Cont’d)
31 December 2025 Expressed in Renminbi Yuan
Liabilities and equity Note V 31 December 2025 31 December 2024
Equity
Share capital 41 1217286340.00 1219046340.00
Capital surplus 42 2970559555.17 2818982096.52
Less: Treasury stock 43 115233041.40 117233041.40
Other comprehensive income 44 105828969.82 29809317.74
Special reserve 45 19695621.80 18106386.75
Surplus reserves 46 77653941.80 51830974.45
Retained earnings 47 1498026493.81 956837409.23
Total equity attributable to owners of
the parent 5773817881.00 4977379483.29
Non-controlling interests 259099797.58 246964378.41
Total equity 6032917678.58 5224343861.70
Total liabilities and equity 8723974411.66 7528576996.98
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
158Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Income Statement
Year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
Operating revenue 48 5228536554.75 4777855602.69
Less: Cost of sales 48 3797940497.42 3340495826.94
Taxes and surcharges 49 20879424.92 15757643.21
Selling expenses 50 179857242.48 192404149.61
Administrative expenses 51 390410185.18 360042388.32
R&D expenses 52 98382572.86 105524488.70
Finance costs 53 (13225605.47) (24492820.88)
Including: Interest expenses 53 12261047.10 23820328.49
Interest income 53 (55024311.03) (45289702.90)
Add: Other income 54 22234227.79 14576461.93
Investment income 55 147146138.79 1284823.56
Including: Share of profit of 55
associates (6154351.32) (3722072.85)
Gain/loss on changes in fair value 56 101564872.39 (54273753.77
Credit impairment loss 57 (11191894.76) (2397239.39)
Asset impairment loss 58 (67514458.14) (24304048.87)
Gain on disposal of assets 59 (1108957.60) 5496048.68
Operating profit 945422165.83 728506218.93
Add: Non-operating income 60 13023560.07 6230006.52
Less: Non-operating expenses 61 1850678.81 793815.22
Profit before income taxes 956595047.09 733942410.23
Less: Income tax expenses 62 186956874.77 193824143.93
Net profit 769638172.32 540118266.30
Net profit classified by continuing
operations
Net profit from continuing
operations 769638172.32 540118266.30
Net profit classified by attribution of
ownership
Net profit attributable to owners of
the parent 725259219.97 500578449.68
Net profit attributable to non-
controlling interests 44378952.35 39539816.62
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
159Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Income Statement (Cont’d)
Year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
Other comprehensive income net of tax 44 76176353.13 (45156575.23)
Other comprehensive income attributable to
owners of the parent net of tax 76019652.08 (45312760.78)
Other comprehensive income that will not
be reclassified to profit or loss 33990.62 126738.95
Changes caused by remeasurements on
defined benefit schemes 33990.62 126738.95
Other comprehensive income that will be
reclassified to profit or loss 75985661.46 (45439499.73)
Differences arising from the translation of
foreign currency-denominated financial
statements 75985661.46 (45439499.73)
Other comprehensive income attributable to 44
non-controlling interests net of tax 156701.05 156185.55
Total comprehensive income 845814525.45 494961691.07
Including:
Total comprehensive income
attributable to owners of the parent 801278872.05 455265688.90
Total comprehensive income
attributable to non-controlling interests 44535653.40 39696002.17
Earnings per share
Basic earnings per share 63 0.61 0.43
Diluted earnings per share 63 0.60 0.43
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
160Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Statement of Changes in Equity
Year ended 31 December 2025 Expressed in Renminbi Yuan
2025
Non-controlling
Equity attributable to owners of the parent interest Total equity
Other
Less: Treasury comprehensive
Share capital Capital surplus stock income Special reserve Surplus reserves Retained earnings Subtotal
I. At 31 December 2024 1219046340.00 2818982096.52 117233041.40 29809317.74 18106386.75 51830974.45 956837409.23 4977379483.29 246964378.41 5224343861.70
II. At 1 January 2025 1219046340.00 2818982096.52 117233041.40 29809317.74 18106386.75 51830974.45 956837409.23 4977379483.29 246964378.41 5224343861.70
III. Changes for the year
(I) Total comprehensive
income
---76019652.08--725259219.97801278872.0544535653.40845814525.45
(II) Shareholders’
contributions and
reduction in capital
1. Shareholder
contributions in
common stock 20000000.00 20000000.00
2. Share-based
payments included
in equity - 28439111.53 - - - - - 28439111.53 - 28439111.53
3. Others (1760000.00) 123138347.12 (2000000.00) - - - - 123378347.12 (470213.00) 122908134.12
(III) Profit Distribution
1. Statutory SurplusReserve - - - - - 25822967.35 (25822967.35) - - -
2. Dividend Distribution - - - - - - (158247168.04) (158247168.04) (51930021.23-) (210177189.27)
(IV) Special reserve
1. Provision in the year - - - - 3654901.58 - - 3654901.58 - 3654901.58
2. Utilisation in the year - - - - (2065666.53) - - (2065666.53) - (2065666.53)
IV. At 31 December 2025 1217286340.00 2970559555.17 115233041.40 105828969.82 19695621.80 77653941.80 1498026493.81 5773817881.00 259099797.58 6032917678.58
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
161Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Statement of Changes in Equity (Cont’d)
Year ended 31 December 2025 Expressed in Renminbi Yuan
2024
Non-controlling Total equity
Equity attributable to owners of the parent interest
Other
Less: Treasury comprehensive Surplus Retained
Share capital Capital surplus stock income Special reserve reserves earnings Subtotal
I. At 31 December
2023
and 1 January
20241240618400.002889928997.21218298532.7975122078.5216229817.0351830974.45456258959.554511690693.97222517275.374734207969.34
II. Changes for the
year
(I) Total
comprehensive
income - - - (45312760.78) - - 500578449.68 455265688.90 39696002.17 494961691.07
(II) Shareholder’s
contributions
and reduction
in capital
1. Share-based
payments
included in
equity - 8256530.70 - - - - - 8256530.70 - 8256530.70
2. Others (21572060.00) (79203431.39) (101065491.39) - - - - 290000.00 (15248899.13) (14958899.13)
(III) Special reserve
1. Provision in the
year - - - - 3183215.00 - - 3183215.00 - 3183215.00
2. Utilisation in the
year - - - - (1306645.28) - - (1306645.28) - (1306645.28)
III. At 31 December
20241219046340.002818982096.52117233041.4029809317.7418106386.7551830974.45956837409.234977379483.29246964378.415224343861.70
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
162Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Statement of Cash Flows
Year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
I. Cash flows from operating activities
Proceeds from sale of goods and
rendering of services 5227879044.28 4639298827.54
Receipts of taxes and surcharges
refunds 66983185.04 63188406.26
Cash generated from other operating
activities 64 83714371.41 60039868.19
Subtotal of cash generated from
operating activities 5378576600.73 4762527101.99
Payments for goods and services 2982913087.09 2730066540.16
Cash payments to and on behalf of
employees 919867623.07 855502006.85
Payments of all types of taxes and
surcharges 283221592.17 216346898.40
Cash used in other operating activities 64 318359947.80 258056276.36
Subtotal of cash used in operating
activities 4504362250.13 4059971721.77
Net cash generated from operating
activities 65 874214350.60 702555380.22
II. Cash flows from investing activities
Proceeds from disinvestment 2528570669.48 1557866442.57
Investment income 178431260.95 16947074.94
Net proceeds from the disposal of
fixed assets intangible assets and
other long-lived assets 13123312.63 6363398.45
Cash generated from other investing
activities 64 132763317.26 42435000.00
Subtotal of cash generated from
investing activities 2852888560.32 1623611915.96
Payments for the acquisition of fixed
assets intangible assets and other
long-lived assets 210084056.14 358172446.66
Payments for investments 2901552407.50 1757308965.71
Cash used in other investing activities 64 124477032.15 49631872.01
Subtotal of cash used in investing
activities 3236113495.79 2165113284.38
Net cash generated used in investing
activities (383224935.47) (541501368.42)
The accompanying notes to the financial statements form an integral part of the financial statements.
163Guangdong Dongfang Precision Science & Technology Co. Ltd.
Consolidated Statement of Cash Flows (Cont’d)
Year ended 31 December 2025 Expressed in Renminbi Yuan
Note V 2025 2024
III. Cash flows from financing activities
Investing raised 20000000.00 -
Borrowings raised 210890005.96 155442846.07
Cash generated from other financing
activities 64 - 107345506.70
Subtotal of cash generated from
financing activities 230890005.96 262788352.77
Repayment of borrowings 127675791.00 364083772.95
Interest and dividends paid 225789707.81 23204859.65
Cash used in other financing activities 64 35589501.18 30850234.77
Subtotal of cash used in financing
activities 389054999.99 418138867.37
Net cash generated from/used in
financing activities (158164994.03) (155350514.60)
IV. Effect of foreign exchange rates
changes on cash and cash
equivalents 9183908.50 (25927560.49)
V. Net increase/(decrease) in cash and
cash equivalents 65 342008329.60 (20224063.29)
Add: Cash and cash equivalents
beginning of the year 65 1652290548.55 1672514611.84
VI. Cash and cash equivalents end of the
year 65 1994298878.15 1652290548.55
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
164Guangdong Dongfang Precision Science & Technology Co. Ltd.
Balance Sheet
31 December 2025 Expressed in Renminbi Yuan
Assets Note XVI 31 December 2025 31 December 2024
Current assets
Cash and bank balances 643401662.63 698349330.28
Financial assets held for trading 565880862.32 534553587.74
Note receivable 9552369.54 9765309.28
Accounts receivable 1 252268813.09 236125159.25
Receivables financing 9443762.10 5036303.55
Prepayments 3749452.16 5379122.23
Other receivables 2 497240689.48 504269264.02
Inventories 116995885.89 129915017.16
Contract assets 22397280.63 28814278.05
Current portion of non-current assets 8368000.00 8035336.42
Other current assets 289870.16 2107492.86
Total current assets 2129588648.00 2162350200.84
Non-current assets
Long-term receivables 4580755.20 4047852.80
Long-term equity investments 3 1165593852.19 877527583.14
Other non-current financial assets 506336188.59 226209705.10
Fixed assets 268972286.52 280406246.36
Construction in progress 75392337.50 5440950.00
Right-of-use assets 2873321.59 4610994.41
Intangible assets 57137335.21 60569947.92
Long-term prepaid expenses 2074594.65 3507201.55
Deferred tax assets 121001418.46 161058263.43
Other non-current assets 5262840.00 70238512.50
Total non-current assets 2209224929.91 1693617257.21
Total assets 4338813577.91 3855967458.05
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
165Guangdong Dongfang Precision Science & Technology Co. Ltd.
Balance Sheet (Cont’d)
31 December 2025 Expressed in Renminbi Yuan
Liabilities and equity 31 December 2025 31 December 2024
Current liabilities
Short term loans 134500000.00 1000000.00
Derivative financial liabilities - 116513.31
Notes payable 45620446.78 48838900.00
Accounts payable 69438714.01 76177615.41
Contract liabilities 30608762.32 29456102.15
Employee benefits payable 13009636.68 16248751.40
Tax payable 28290.81 118064.93
Other payables 44048811.95 41517747.95
Current portion of non-current liabilities 9088827.78 17452778.58
Other current liabilities 4854800.31 5736334.26
Total current liabilities 351198290.64 236662807.99
Non-current liabilities
Long term loans 10044000.00 16740000.00
Lease liabilities 1615902.77 3434210.61
Provisions 65444.68 1111329.09
Deferred income 13073671.66 14790331.66
Total non-current liabilities 24799019.11 36075871.36
Total liabilities 375997309.75 272738679.35
Equity
Share capital 1217286340.00 1219046340.00
Capital surplus 2701606083.95 2673989321.44
Less: Treasury stock 115233041.40 117233041.40
Special reserve 7343405.71 6850427.57
Surplus reserves 77653941.80 51830974.45
Retained earnings/Unutilized losses 74159538.10 (251255243.36)
Total equity 3962816268.16 3583228778.70
Total liabilities and equity 4338813577.91 3855967458.05
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
166Guangdong Dongfang Precision Science & Technology Co. Ltd.
Income Statement
Year ended 31 December 2025 Expressed in Renminbi Yuan
Note XVI 2025 2024
Operating revenue 4 383974319.61 509032572.25
Less: Cost of sales 4 236967972.55 279619163.19
Taxes and surcharges 8891911.73 6982825.01
Selling expenses 27446954.62 34689263.89
Administrative expenses 93721274.64 77755675.52
R&D expenses 22206746.06 20779949.03
Finance costs (21569091.33) (14016252.36)
Including: Interest expenses 2717979.25 2905626.71
Interest income (28772634.74) (16797232.63)
Add: Other income 2852552.34 2627538.81
Investment income 5 437743618.99 12688014.61
Including: Share of profit or loss of
associates (5299222.65) (2444335.91)
Loss on changes in fair value 94762270.67 (18748558.70)
Credit impairment loss (2562089.13) (788150.05)
Asset impairment loss 775725.13 (3960702.44)
Gain on disposal of assets 207644.69 146022.47
Operating profit 550088274.03 95186112.67
Add: Non-operating income 304767.61 74840.36
Less: Non-operating expenses 851279.82 14515.85
Profit before income taxes 549541761.82 95246437.18
Less: Income tax expenses 40056844.97 13558350.53
Net profit 509484916.85 81688086.65
Including: Net profit from continuing
operations 509484916.85 81688086.65
Total comprehensive income 509484916.85 81688086.65
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
167Guangdong Dongfang Precision Science & Technology Co. Ltd.
Statement of Changes in Equity
Year ended 31 December 2025 Expressed in Renminbi Yuan
2025
Less: Treasury Retained earnings/
Share capital Capital surplus stock Special reserve Surplus reserves Unutilized losses Total equity
I. At 31 December 2024 1219046340.00 2673989321.44 117233041.40 6850427.57 51830974.45 (251255243.36) 3583228778.70
II. At 1 January 2025 1219046340.00 2673989321.44 117233041.40 6850427.57 51830974.45 (251255243.36) 3583228778.70
III. Changes for the year
(I) Total comprehensive income - - - - - 509484916.85 509484916.85
(II) Shareholder’s contributions and
reduction in capital
1. Share-based payments included
in equity - 27616762.51 - - - - 27616762.51
2. Others (1760000.00) - (2000000.00) - - - 240000.00
(III) Profit Distribution
1. Statutory Surplus Reserve - - - - 25822967.35 (25822967.35) -
2. Dividend Distribution - - - - - (158247168.04) (158247168.04)
(IV) Special reserve
1. Provision in the year - - - 833931.60 - - 833931.60
2. Utilisation in the year - - - (340953.46) - - (340953.46)
IV. At 31 December 2025 1217286340.00 2701606083.95 115233041.40 7343405.71 77653941.80 74159538.10 3962816268.16
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
168Guangdong Dongfang Precision Science & Technology Co. Ltd.
Statement of Changes in Equity (Cont’d)
Year ended 31 December 2025 Expressed in Renminbi Yuan
2024
Less: Treasury Retained earnings/
Share capital Capital surplus stock Special reserve Surplus reserves Unutilized losses Total equity
At 31 December 2023 and 1
I. January 2024 1240618400.00 2745450997.27 218298532.79 6645318.98 51830974.45 (332943330.01) 3493303827.90
II. At 1 January 2025 1240618400.00 2745450997.27 218298532.79 6645318.98 51830974.45 (332943330.01) 3493303827.90
III. Changes for the year
(I) Total comprehensive income - - - - - 81688086.65 81688086.65
(II) Shareholder’s contributions and
reduction in capital
1. Share-based payments included
in equity - 7741755.56 - - - - 7741755.56
2. Others (21572060.00) (79203431.39) (101065491.39) - - - 290000.00
(III) Special reserve
1. Provision in the year - - - 787151.00 - - 787151.00
2. Utilisation in the year - - - (582042.41) - - (582042.41)
IV. At 31 December 2024 1219046340.00 2673989321.44 117233041.40 6850427.57 51830974.45 (251255243.36) 3583228778.70
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
169Guangdong Dongfang Precision Science & Technology Co. Ltd.
Statement of Cash Flows
Year ended 31 December 2025 Expressed in Renminbi Yuan
20252024
I. Cash flows from operating activities
Proceeds from sale of goods and
rendering of services 347169798.26 397362207.24
Receipts of taxes and surcharges
refunds 10501968.98 14996286.70
Cash generated from other operating
activities 46105296.20 50391217.39
Subtotal of cash generated from
operating activities 403777063.44 462749711.33
Payments for goods and services 201700988.24 198775741.45
Cash payments to and on behalf of
employees 97613499.78 100106284.64
Payments of all types of taxes and
surcharges 17000750.84 13875987.77
Cash used in other operating activities 70895129.76 34899435.51
Subtotal of cash used in operating
activities 387210368.62 347657449.37
Net cash generated from operating
activities 16566694.82 115092261.96
II. Cash flows from investing activities
Proceeds from disinvestment 1514096948.68 868730433.91
Investment income 465740644.58 49446958.11
Net cash proceeds from the disposal of
fixed assets intangible assets and
other long-term assets 1989532.77 -
Other cash receipts relating to
investing activities 145562479.59 103435000.00
Subtotal of cash generated from
investing activities 2127389605.62 1021612392.02
Payments for the acquisition of fixed
assets intangible assets and other
long-lived assets 10893699.26 6936264.70
Payments for investments 2054470525.84 880803895.71
Other cash payments relating to other
investing activities 80404116.00 49631872.01
Subtotal of cash used in investing
activities 2145768341.10 937372032.42
Net cash generated from investing
activities (18378735.48) 84240359.60
The accompanying notes to the financial statements form an integral part of the financial statements.
170Guangdong Dongfang Precision Science & Technology Co. Ltd.
Statement of Cash Flows (Cont’d)
Year ended 31 December 2025 Expressed in Renminbi Yuan
20252024
III. Cash flows from financing activities
Borrowings raised 134500000.00 1000000.00
Cash generated from other financing
activities - 107345506.70
Subtotal of cash generated from
financing activities 134500000.00 108345506.70
Repayment of borrowings 16696000.00 27696000.00
Interest and dividends paid 160685721.36 1541685.81
Cash used in other financing activities 2158260.70 3154388.60
Subtotal of cash used in financing
activities 179539982.06 32392074.41
Net cash generated from financing
activities (45039982.06) 75953432.29
IV. Effect of foreign exchange rates
changes on cash and cash
equivalents - -
V. Net increase/ (decrease) in cash and
cash equivalents (46852022.72) 275286053.85
Add: Cash and cash equivalents
beginning of the year 681128021.05 405841967.20
VI. Cash and cash equivalents end of the
year 634275998.33 681128021.05
The financial statements have been signed by:
Legal representative:Tang Zhuolin; Financial controller: Shao Yongfeng; Accounting supervisor: Chenlin
The accompanying notes to the financial statements form an integral part of the financial statements.
171Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements
2025 Expressed in Renminbi Yuan
I. Corporate Background
Guangdong Dongfang Precision Science & Technology Co. Ltd. (the "Company") a joint
stock company with limited liability registered in Guangdong Province of the People's
Republic of China and established on 9 December 1996 obtained a Business License for
Enterprise Legal Person with a registration number of 440682000040868.In August 2011 upon the approval by the China Securities Regulatory Commission (CSRC)
in the Reply on Approving the Initial Public Offering of Shares by Guangdong Dongfang
Precision Science & Technology Co. Ltd. (ZH.J.X.K. [2011] No. 1237) the Company issued
Renminbi-denominated ordinary shares to the public and was listed on the Shenzhen Stock
Exchange in the same month. The Company started to use the unified social credit code
(914406002318313119) in 2016. The Company is headquartered in 2 Qiangshi Road Shishan
Town Nanhai District Foshan City Guangdong Province China.The Group's main business includes four business sectors: smart corrugated packaging
equipment industrial internet industry solutions digital printers and water powerspots
equipment.The actual controllers of the Company are Tang Zhuolin and Tang Zhuomian.These financial statements were authorized for issue by the Board of Directors of the
Company on 23 March 2026.II. Basis of Preparation of the Financial Statements
1. Basis of preparationThese financial statements have been prepared in accordance with China’s “AccountingStandards for Business Enterprises — Basic Standards” promulgated by the Ministry of
Finance and the specific accounting standards interpretations and other relevant regulationsissued or amended thereafter (hereafter collectively referred to as “Accounting Standards forBusiness Enterprises” or “CAS”). In addition the financial statements also disclose relevant
financial information in accordance with the Rules No. 15 for the Preparation of Information
Disclosure by Companies Offering Securities to the Public - General Provisions on Financial
Reports.
2. Going concern
The financial statements are prepared on a going concern basis.
172Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates
The Group has formulated specific accounting policies and accounting estimates according to
the characteristics of its actual production and operation which is mainly embodied in the
provision for the bad debt of accounts receivable provision for write-down of inventories
depreciation of fixed assets provision for product warranties capitalization conditions for
expenditure on the development phase of research and development expenses and recognition
and measurement of revenue.
1. Statement of compliance
The financial statements present truly and completely the financial positions of the Group and
the Company as at 31 December 2025 and the financial performance and the cash flows for
the year then ended in accordance with Accounting Standards for Business Enterprises.
2. Accounting year
The accounting year of the Group is from 1 January to 31 December of each calendar year.
3. Functional currency
The Group’s functional currency and the currency used in preparing the financial statements
were Renminbi. The amounts in the financial statements were denominated in Renminbi
yuan unless otherwise stated.
4. Determination method and selection basis of materiality criteria to be followed
in the disclosure of financial statements
Materiality criteria
Significant construction in Budgeted amount for investment exceeds RMB50000000
progress
Significant cash flows from Amount exceeds RMB50000000
investing activities
Subsidiaries with significant Net assets of non-wholly owned subsidiaries account for
minority interests more than 10% of consolidated net assets
Significant associates The carrying amount of long-term equity investments in
associates accounts for more than 5% of the consolidated net
assets
173Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
5. Business combination
Business combinations are classified into business combinations involving entities under common
control and business combinations not involving entities under common control.A business combination involving entities under common control is a business combination in
which all of the combining entities are ultimately controlled by the same party or parties both
before and after the business combination and that control is not transitory. Assets and liabilities
obtained by combining party in the business combination involving entities under common control
(including goodwill arising from the acquisition of the merged party by the ultimate controller) are
recognized on the basis of their carrying amounts at the combination date recorded on the
financial statements of the ultimate controlling party. The difference between the carrying amount
of the consideration paid for the combination (or aggregate face values of the shares issued) and
the carrying amount of the net assets obtained is adjusted to capital surplus. If the capital surplus
are not sufficient to absorb the difference any excess is adjusted to retained earnings.A business combination not involving entities under common control is a business combination in
which all of the combining entities are not ultimately controlled by the same party or parties both
before and after the business combination. The acquiree’s identifiable assets liabilities and
contingent liabilities are recognized at their fair values at the acquisition date. The excess of the
sum of the consideration paid (or equities issued) for business combination and equity interests in
the acquiree held prior to the date of acquisition over the share of the attributable net identifiable
assets of the acquiree measured at fair value was recognized as goodwill which is subsequently
measured at cost less cumulative impairment loss. In case the fair value of the sum of the
consideration paid (or equities issued) and equity interests in the acquire held prior to the date of
acquisition is less than the fair value of the share of the attributable net identifiable assets of the
acquiree a review of the measurement of the fair values of the identifiable assets liabilities and
contingent liabilities the consideration paid for the combination (or equity issued) and the equity
interests in the acquiree held prior to the date of acquisition is conducted. If the review indicates
that the fair value of the sum of the consideration paid (or equities issued) and equity interests in
the acquiree held prior to the date of acquisition is indeed less than the fair value of the share of
the attributable net identifiable assets of the acquiree the difference is recognized in profit or loss.
6. Consolidated financial statements
The consolidation scope for consolidated financial statements is determined based on the concept
of control including the Company and all subsidiaries’ financial statements. Subsidiaries are those
enterprises or entities which the Company has control over (including enterprises separable
components of investee units and structured entities controlled by the Company). An investor
controls an investee when the investor is exposed or has rights to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the
investee.The financial statements of the subsidiaries are prepared for the same reporting period as the
Company using consistent accounting policies. Any inconsistent accounting policies have been
adjusted to become consistent with the Company’s accounting policies. All assets liabilities
equities revenues costs and cash flows arising from intercompany transactions are eliminated on
consolidation.
174Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
6. Consolidated financial statements (Cont’d)
The excess of current loss attributable to non-controlling shareholders of a subsidiary over their
entitlements to the opening balance of equity shall be charged to non-controlling interests.For subsidiaries obtained through a business combination not involving entities under common
control the operating results and cash flows of the acquirees will be recognized in consolidated
financial statements from the date the Group effectively obtains the control until the date that
control is terminated. When consolidated financial statement is prepared the subsidiaries’
financial statements will be adjusted based on the fair values of the identifiable assets liabilities
and contingent liabilities at the acquisition date.For subsidiaries acquired through combination of entities under common control the business
results and cash flows of the combined entities are included in the consolidated financial
statements from the beginning of the period in which the combination occurred. When preparing
and comparing the consolidated financial statements the Group makes adjustments to relevant
items of the financial statements of the previous period deeming the reporting entity formed
through combination as existing since initial implementation of control by the ultimate controlling
party.In the event of the change in one or more elements of control as a result of changes in relevant
facts and conditions the Group reassesses whether it has control over the investee.If the control right is not lost the change of minority shareholders' equity shall be regarded as
equity transaction.
7. Cash and cash equivalents
Cash comprises cash on hand and deposits readily available for payments. Cash equivalents
represent short-term highly liquid investments which are readily convertible to known amounts of
cash and subject to an insignificant risk of changes in value.
8. Foreign currency translation
For foreign currency transactions the Group translates the foreign currency into its functional
currency.Upon initial recognition foreign currency transactions are translated into the functional currency
using the spot exchange rate of the dates on which transactions occur. At the balance sheet date
foreign currency monetary items are translated using the spot exchange rate at the balance sheet
date. The translation differences arising from the settlement and foreign currency monetary items
are recognized in profit or loss. Also at the balance sheet date foreign currency non-monetary
items measured at historical cost continue to be translated using the spot exchange rate at the dates
of the transactions and it does not change its carrying amount in functional currency. Foreign
currency non-monetary items measured at fair value are translated using the spot exchange rate.The differences arising from the above translations are recognized in current profit or loss or other
comprehensive income according to the nature of foreign currency non-monetary items.
175Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
8. Foreign currency translation (Cont’d)
The Group translates the functional currencies of foreign operations into Renminbi when
preparing the financial statements. Asset and liability items in the balance sheet are translated at
the spot exchange rate prevailing at the balance sheet date. Equity items except for retained
earnings are translated at the spot exchange rates at the date when such items arose. Revenue and
expense items in the income statement are translated using the average exchange rate for the
periods when transactions occur. Translation differences arising from the aforesaid translation of
financial statements denominated in foreign currency shall be recognized as other comprehensive
income. When foreign operations are disposed other comprehensive income relating to the
foreign operation is transferred to current profit or loss. Partial disposal shall be recognized on a
pro-rata basis.Cash flows denominated in foreign currencies and foreign subsidiaries’ cash flows are translated
using the average exchange rate for the period when cash flows occur. The impact on cash by the
fluctuation of exchange rates is presented as a separate line item of reconciliation in the statement
of cash flows.
9. Financial instruments
Financial instruments refer to the contracts which give rise to a financial asset in one entity and a
financial liability or equity instrument in another entity.
(1) Recognition and derecognition of financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.A financial asset (or part of it or a part of a group of similar financial asset) is derecognized when
one of the following criteria is met that is when a financial asset previously recognized is
transferred out from balance sheet:
(1) The right of receiving the cash flow generated from the financial asset has expired;
(2) The right of receiving cash flow generated by the financial assets is transferred or an
obligation of paying the full amount of cash flow received to third parties in a timely
manner has been undertaken under “pass-through” agreements where (a) substantially all
risks and rewards of the ownership of such type of financial assets have been transferred
or (b) control over such type of financial assets has not been retained even though
substantially all risks and rewards of the ownership of such type of financial assets have
been neither transferred nor retained.If the obligation of financial liability has been fulfilled cancelled or expired the financial liability
is derecognized. If the present financial liability is substituted by the same debtee with another
liability differing in substance or the terms of the present liability have been substantially
modified this substitution or modification is treated as derecognition of a present liability and
recognition of a new liability with any arising differences recognized in profit or loss.Conventional dealings in financial assets are recognized or derecognized under the trade day
accounting method. Conventional dealings refer to the receipt or delivery of financial assets within
periods stipulated by the law and according to usual practices. The trade day is the date on which
the Group undertakes to buy or sell a financial asset.
176Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (Cont’d)
(2) Classification and measurement of financial assets
At initial recognition the Group classifies its financial assets into: financial assets at fair value
through profit or loss financial assets at amortized cost or financial assets at fair value through
other comprehensive income according to the Group’s business model for managing financial
assets and the contract cash flow characteristics of the financial assets. When and only when the
Group changes its business model of managing financial assets all relevant financial assets
affected will be re-classified.Financial assets are measured at fair value on initial recognition but if the accounts receivable or
notes receivable generated from the sales of goods or provision of services do not contain
significant financing components or do not consider financing components of no longer than one
year the initial measurement will be based on the transaction price.For financial assets at fair value through profit or loss the relevant transaction costs are directly
recognized in profit or loss; for other financial assets the relevant transaction costs are recognized
in their initial recognition amount.The subsequent measurement of financial assets is dependent on its classification:
Debt instruments measured at amortized cost
Financial assets fulfilling all of the following conditions are classified as financial assets at
amortized cost: the objective of the Group’s business management model in respect of such type
of financial assets is to generate contract cash flow; the contract terms of such type of financial
assets provide that cash flow generated on specific dates represents interest payment in relation to
principal amounts based on outstanding principal amounts only. Interest income from such type of
financial assets are recognized using the effective interest rate method and any profit or loss
arising from derecognition amendments or impairment shall be charged to current profit or loss.Debt instruments at fair value through other comprehensive income
Financial assets fulfilling all of the following conditions are classified as financial assets at fair
value through other comprehensive income: the objective of the Group’s business management
model in respect of such type of financial assets is both to generate contract cash flow and to sell
such type of financial assets; the contract terms of such type of financial assets provide that cash
flow generated on specific dates represents interest payment in relation to principal amounts based
on outstanding principal amounts only. Interest income from this type of financial assets is
recognized using the effective interest rate method. Other than interest income impairment loss
and exchange differences which shall be recognized as current profit or loss other fair value
changes shall be included in other comprehensive income. Upon derecognition of the financial
assets the cumulative gains or losses previously included in other comprehensive income shall be
transferred from other comprehensive income to current profit or loss.Financial assets at fair value through profit or loss
Other than financial assets measured at amortized cost and financial assets at fair value through
other comprehensive income as aforementioned all financial assets are classified as financial
assets at fair value through profit or loss which are subsequently measured at fair value any
changes of which are recognized in current profit or loss.
177Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (Cont’d)
(3) Classification and measurement of financial liabilities
The Group classifies its financial liabilities at initial recognition: financial liabilities at fair value
through profit or loss and other financial liabilities. For financial liabilities at fair value through
profit or loss the relevant transaction costs are directly recognized in profit or loss; for other
financial liabilities the relevant transaction costs are recognized in their initial recognition
amount.The subsequent measurement of financial liabilities is dependent on its classification:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include mainly financial liabilities held for
trading(comprising derivatives classified as financial liabilities). Financial liabilities held for
trading (comprising derivatives classified as financial liabilities) are subsequently measured at fair
value and all changes are recognized in current profit or loss.Other financial liabilities
Subsequent to initial recognition these financial liabilities are carried at amortized cost using the
effective interest method.
(4) Impairment of financial instruments
Determination and accounting treatment of expected credit losses
The Group performs impairment treatment on financial assets at amortized cost debt instruments
at fair value through other comprehensive income and contract assets based on expected credit
losses (ECL) and recognizes allowances for losses.For receivables notes receivable and contract assets that do not contain significant financing
components the Group adopts a simplified measurement method to measure allowances for losses
based on an amount equivalent to the lifetime expected credit losses.Financial assets other than those measured with simplified valuation methods the Group evaluates
at each balance sheet date whether its credit risk has significantly increased since initial
recognition. The period during which credit risk has not significantly increased since initial
recognition is considered the first stage at which the Group shall measure loss allowance based on
the amount of expected credit loss for the next 12 months and shall compute interest income
according to the book balance and effective interest rate; the period during which credit risk has
significantly increased since initial recognition although no credit impairment has occurred is
considered the second stage at which the Group shall measure loss allowance based on the
amount of expected credit loss for the entire valid period and shall compute interest income
according to the book balance and effective interest rate; The period during which credit
impairment has occurred after initial recognition is considered the third stage at which the Group
shall measure loss allowance based on the amount of the lifetime expected credit loss and shall
compute interest income according to the amortized cost and effective interest rate. If the credit
risk of financial instruments is low at the balance sheet date the Company assumes that the credit
risk has not increased significantly since initial recognition.
178Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (Cont’d)
(4) Impairment of financial instruments (Cont’d)
For the Group’s criteria for judging whether credit risks have significantly increased the
definition of assets subjected to credit impairment and assumptions underlying the measurement
of expected credit losses please refer to Note IX.1.The Group's approach to measuring ECLs on financial instruments reflects factors such as the
unbiased probability-weighted average amount determined by evaluating a range of possible
outcomes the time value of money and reasonable and supportable information about past
events current conditions and projections of future economic conditions available at the
balance sheet date without undue additional cost or effort.Classification and determination basis of impairment provision based on credit risk
characteristics
The Group considers the credit risk features of different customers and estimates ECLs of
financial instruments based on common risk characteristics and aging portfolio. The Group
estimates ECLs individually except for financial instruments for which the Group estimates
ECLs on a group basis.In estimating ECLs the Group considers reasonable and supportable information about past
events current conditions and projections of future economic conditions.Aging calculation method based on the combination of credit risk characteristics recognized
by aging
The Group determines the aging based on the invoicing date.Criteria for judging provision for impairment of bad debts made individually
If there is objective evidence that the credit risk of the individual accounts receivable or
contract assets is significantly different from the credit risk of other accounts receivable and
contract assets credit impairment losses are calculated based on the difference between the
present value of all contractual cash flows receivable under the individual contract and the
present value of all cash flows expected to be received.Write-off of impairment provision
When the Group no longer reasonably expects to be able to fully or partially recover the contract
cash flow of financial assets the Group directly writes down the book balance of such financial
assets.
179Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
9. Financial instruments (Cont’d)
(5) Derivative financial instruments
The Group uses derivative financial instruments. Derivative financial instruments are initially
recognized at fair value on the date on which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives are carried as assets when the fair value is
positive and as liabilities when the fair value is negative.Gains or losses arising from changes in the fair value of derivative instruments shall be directly
recognized in current profit or loss.
(6) Transfer of financial assets
If the Group has transferred substantially all the risks and rewards associated with the ownership
of a financial asset to the transferee the asset should be derecognized. If the Group retains
substantially all the risks and rewards of ownership of a financial asset the asset should not be
derecognized.When the Group has neither transferred nor retained substantially all the risks and rewards of
ownership of the financial asset it may either derecognize the financial asset and recognize any
associated assets and liabilities if control of the financial asset has not been retained; or recognizes
the financial asset to the extent of its continuing involvement in the transferred financial asset and
recognizes an associated liability if control has been retained.Assets formed by the continuing involvement by way of the provision of financial guarantee in
respect of the transferred financial assets shall be recognized as the lower of the carrying value of
the financial asset and the amount of financial guarantee. The amount of financial guarantee
means the maximum amount among considerations received to be required for repayment.
10. Inventories
Inventories include raw materials work-in-progress finished goods product deliveries semi-
finished goods materials consigned for processing etc.Inventories are initially recorded at costs. Inventories’ costs include purchasing costs processing
costs and other costs. Actual costs of product deliveries are recognized using the weighted average
method. Turnover materials include low-value consumables packaging materials etc. which are
expensed in full.The Group adopts the perpetual inventory system.Inventories on the balance sheet date are stated at the lower of cost or net realisable value.Inventory valuation allowance is made and recognized in profit or loss when the net realisable
value is lower than cost. Net realizable value is determined based on the estimated selling price in
the ordinary course of business less the estimated costs to completion and estimated costs
necessary to make the sale and related taxes. Valuation allowances for raw materials are
established by category and those for finished goods by individual item. For inventories that
relate to products produced and sold in the same region have the same or similar ultimate
purpose and are difficult to separate in measurement valuation allowances are established on a
combined basis.
180Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
11. Long-term equity investments
Long-term equity investments include equity investments in subsidiaries joint ventures and
associates.Long-term equity investments were recorded at initial investment cost on acquisition. For long-
term equity investments acquired through the business combination of entities under common
control the initial investment cost shall be the share of carrying value of the equity of the merged
party at the date of combination as stated in the consolidated financial statements of the ultimate
controlling party. Any difference between the initial investment cost and the carrying value of the
consideration for the combination shall be dealt with by adjusting the capital surplus(if the capital
surplus are insufficient for setting off the difference such difference shall be further set off against
retained earnings). Upon disposal of the investment other comprehensive income prior to the date
of combination shall be dealt with on the same basis as if the relevant assets or liabilities were
disposed of directly by the investee. Equity recognized as a result of changes in equity other than
the set-off of profit and loss other comprehensive income and profit allocation of the investee
shall be transferred to current profit and loss upon disposal of the investment. Items which remain
long-term equity investments after the disposal shall be accounted for on a pro-rata basis while
items reclassified as financial instruments following the disposal shall be accounted for in full. For
long-term equity investments acquired through the business combination of entities not under
common control the initial investment cost shall be the cost of combination (for business
combinations of entities not under common control achieved in stages through multiple
transactions the initial investment cost shall be the sum of the carrying value of the equity
investment in the acquired party held at the date of acquisition and new investment cost incurred
as at the date of acquisition). The cost of combination shall be the sum of assets contributed by the
acquiring party liabilities incurred or assumed by the acquiring party and the fair value of equity
securities issued. Upon disposal of the investment other comprehensive income recognized under
the equity method held prior to the date of acquisition shall be dealt with on the same basis as if
the relevant assets or liabilities were disposed of directly by the investee. Equity recognized as a
result of changes in equity other than the set-off of profit and loss other comprehensive income
and profit allocation of the investee shall be transferred to current profit and loss upon disposal of
the investment. Items which remain long-term equity investments after the disposal shall be
accounted for on a pro-rata basis while items reclassified as financial instruments following the
disposal shall be accounted for in full. The initial investment cost of long-term equity investments
other than those acquired through business combination shall be recognized in accordance with
the following: for those acquired by way of cash payments the initial investment cost shall be the
consideration actually paid plus expenses tax amounts and other necessary outgoings directly
related to the acquisition of the long-term equity investments.In the financial statements of the Company the cost method is used for long term equity
investments in investees over which the Company exercises control. Control is defined as the
power exercisable over the investee the entitlement to variable return through involvement in the
activities of the investee and the ability to influence the amount of return using the power over the
investee.When the cost method is used long-term equity investments are measured at initial cost on
acquisition. When additional investments are made or investments are recouped the cost of long-
term equity investments shall be adjusted. Cash dividend or profit distribution declared by the
investee shall be recognized as investment income for the period.
181Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
11. Long-term equity investments (Cont’d)
The equity method is used to account for long-term equity investments when the Group can jointly
control or has significant influence over the invested entity. Joint control is the contractually
agreed sharing of control of an arrangement which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Significant influence means
having the authority to take part in the decision over the financial and operational policies but not
the authority to control or jointly control with other parties the formulation of such policies.Under the equity method any excess of the initial investment cost over the Company’s share of
the net fair value of the investment’s identifiable assets and liabilities is included in the initial
investment cost of the long-term equity investment. When the carrying amount of the investment
is less than the Company’s share of the fair value of the investment’s identifiable net assets the
difference is recognized in profit or loss of the current period and debited to long-term equity
investments.Under the equity method after the long-term equity investments are acquired investment gains or
losses and other comprehensive income are recognized according to the entitled share of net profit
or loss and other comprehensive income of the investee and the carrying amount of the long-term
equity investment is adjusted accordingly. When recognising the Group’s share of the net profit or
loss of the invested entity the Group makes adjustments based on fair values of the investees’
identifiable assets and liabilities at the acquisition date in accordance with the Group’s accounting
policy and accounting period to investee’s net profits eliminating pro-rata profit or loss from
internal transactions with associates and joint ventures attributed to investor (except that loss from
inter-group transactions deemed as asset impairment loss shall be fully recognized) provided that
invested or sold assets constituting businesses shall be excluded. When the invested enterprise
declares profit distribution or cash dividends the carrying amount of investment is adjusted down
by the Group’s share of the profit distribution and dividends. The Group shall derecognize its
share of the losses of the investee after the long-term equity investment together with any long-
term interests that in substance forms part of the Group’s net investment in the investee are
reduced to zero except to the extent that the Group has incurred obligations to assume additional
losses. The Group also adjusts the carrying amount of long-term equity investments for other
changes in owner’s equity of the investees (other than the net-off of net profits or losses other
comprehensive income and profit distribution of the investee) and includes the corresponding
adjustment in equity.
12. Fixed assets
A fixed asset is recognized when and only when it is probable that future economic benefits that
are associated with the fixed asset will flow to the Group and the cost can be measured reliably.Subsequent expenditures related to a fixed asset are recognized in the carrying amount of the fixed
asset if the above recognition criteria are met and the carrying value of the replaced part is
derecognized; otherwise those expenditures are included in the current period's profit or loss or
the cost of the relevant asset when they occur in accordance with the beneficiary.Fixed assets are initially recognized at cost. Cost of purchased fixed assets includes purchasing
price relevant taxes and any directly attributable expenditure for bringing the asset to working
conditions for its intended use.
182Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
12. Fixed assets (Cont’d)
Except for those incurred by using the accrued expenses for safety production fixed assets are
depreciated on a straight-line basis and the respective estimated useful lives estimated residual
value ratios and annual depreciation rates are as follows:
Useful life Estimated residual Annualvalue ratio depreciation rate
Buildings and constructions 20-40 years 5.00% 2.38%-4.75%
Machinery 5-18 years 5.00% 5.28%-19.00%
Transportation equipment 5-10 years 5.00% 9.5%-19.00%
Electronic equipment 3-10 years 5.00% 9.5%-31.67%
Office equipment 3-10 years 5.00% 9.5%-31.67%
Other equipment 5-10 years 5.00% 9.5%-19.00%
The Group reviews at least at each year end useful lives estimated residual values and
depreciation methods of fixed assets and makes adjustments if necessary.
13. Construction in progress
Construction in progress is measured at the actual construction expenditures including necessary
project work expenses incurred during the period while construction is in progress and other
related fees.The criteria for construction in progress to be transferred to fixed assets when it is ready for
its intended use are as follows:
Criteria
Buildings and constructions Actual start of use
The earlier of actual start of use/completion
Machinery of installation and acceptance
14. Borrowing costs
The borrowing costs that are directly attributable to the acquisition construction or production of
a qualifying asset are capitalized. The amounts of other borrowing costs incurred are recognized
as an expense in the period in which they are incurred.The capitalisation of borrowing costs commences only when the expenditures for the asset and the
borrowing costs have been incurred and the activities that are necessary to acquire construct or
produce the asset for its intended use or sale have been undertaken.Capitalisation of borrowing costs ceases when the qualifying asset being acquired constructed or
produced gets ready for its intended use or sale. Any borrowing costs subsequently incurred are
recognized in profit or loss.
183Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
14. Borrowing costs (Cont’d)
During the capitalisation period the amount of interest capitalised for each accounting period is
determined as follows: For specific borrowings it is the actual interest expense incurred in the
current period minus the temporary deposit interest income or investment income; there were no
borrowing costs within the Group this year that met the capitalization conditions for general
borrowings.Capitalisation of borrowing costs is suspended during periods in which the acquisition
construction or production of a qualifying asset is suspended abnormally by activities other than
those necessary to get the asset ready for its intended use or sale when the suspension is for a
continuous period of more than 3 months. Borrowing costs incurred during these periods are
recognized as an expense in profit or loss until the acquisition construction or production is
resumed.
15. Intangible assets
(1). Research and development expenses
The Group classifies the expenses for internal research and development as research costs and
development costs. All research costs are charged to the current profit or loss as incurred.Expenditure incurred on projects to develop new products is capitalized and deferred only
when the Group can demonstrate the technical feasibility of completing the intangible asset so
that it will be available for use or sale its intention to complete and its ability to use or sell the
asset how the asset will generate future economic benefits (including demonstration that the
product derived from the intangible asset or the intangible asset itself will be marketable or in
the case of internal use the usefulness of the intangible asset as such) the availability of
technical and financial resources to complete the project and procure the use or sale of the
intangible asset and the ability to measure reliably the expenditure during the development.Development costs which do not meet these criteria is recognized in profit or loss when
incurred.After meeting the above conditions passing the technical feasibility and economic feasibility
study the corresponding projects of the Group enter the development stage and begin to be
capitalized after being reviewed and approved.
184Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
15. Intangible assets(Cont’d)
(2). Useful life of intangible assets
Overseas land use rights and trademark rights are intangible assets with indefinite useful
lives. Impairment tests shall be conducted annually regardless of whether there are indications
of impairment. Such intangible assets shall not be amortized and their useful life shall be
reviewed during each accounting period. If there is evidence suggesting that their useful life is
limited accounting treatment will be performed according to the above policy on intangible
assets with definite useful life.Other intangible assets are amortised on a straight-line basis over their useful lives as follows:
Useful life Determination basis
Land use rights 40-50 years Term of land use right
The shorter of the term of trademark
Trademark 5-10 years rights/expected term of use
Patent 5-10 years Expected benefit period
The land ownership of Fosber S.p.A. a subsidiary of the Company in Italy has a permanent
term and the Company believes that the land ownership will be used and will bring expected
inflows of economic benefits to the Company in the foreseeable future so its useful life is
regarded as indefinite. The trademarks registered by subsidiaries Fosber S.P.A. and Fosber
America Inc. ("Fosber America") have a useful life in accordance with the law but at the
expiration of the protection period Fosber S.P.A. and Fosber America can apply for an
extension at low service charges so the Company will benefit from the above trademarks in
the long term. Thus the Company recognized the trademark use right as intangible assets
with indefinite useful life. The useful life of intangible assets with indefinite useful life will
be reviewed at the end of each year. After review the useful life of the above intangible assets
is still uncertain.
16. Impairment
Impairment of assets (other than the impairment of inventories contract assets and contract cost
assets investment properties measured using the fair value model deferred tax assets and
financial assets ) is determined in the following way: the Group assesses at the balance sheet date
whether there is any indication that an asset may be impaired; if any indication exists that an asset
may be impaired the Group estimates the recoverable amount of the asset and performs
impairment testing; goodwill arising from a business combination intangible assets with indefinite
useful lives and intangible assets not yet available for use are tested for impairment at least at each
year end irrespective of whether there is any indication that the asset may be impaired.
185Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
16. Impairment (Cont’d)
The recoverable amount is the higher of the asset’s fair value less costs to sell and its present value
of estimated future cash flows. The Group estimates recoverable value for individual assets. When
it is difficult to estimate individually the recoverable value of the cash generating units which the
asset belongs to will be estimated. The definition of cash generating units is determined on the
basis of whether the cash generating units generate cash flows which are largely independent of
those from other cash generating units.Where the carrying amount of an asset or a cash generating unit exceeds its recoverable amount
the asset or cash generating unit is considered impaired and is written down to its recoverable
amount. The difference between the carrying amount and recoverable amount is recognized in
profit or loss and allowance for impairment is made accordingly.In connection with impairment tests for goodwill the carrying value of goodwill arising from
business combination is allocated to relevant cash generating units (“CGU”) from the date of
acquisition on a reasonable basis. If it is difficult to allocate such goodwill to a relevant CGU it
should be allocated to a relevant CGU group. A relevant CGU or CGU group is defined as one
which can benefit from the synergies of the business combination and is not larger than the
reporting segments determined by the Group.In connection with impairment tests for CGUs or CGU groups that comprise goodwill where
indications of impairment exists in a CGU or CGU group related to goodwill impairment tests
should be performed first on CGUs or CGU groups that do not comprise goodwill and recognize
impairment loss after estimating the recoverable amount. Then impairment tests on CGUs or CGU
groups that comprise goodwill should be performed and the carrying value and recoverable
amount should be compared. Where the recoverable amount is lower than the carrying value the
impairment loss should first be offset against the carrying value of the goodwill allocated to CGUs
or CGU groups and then against assets in the CGUs or CGU groups other than goodwill in
proportion to the weighting of these assets.Previously recognized impairment losses are not reversed in subsequent periods.
17. Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight-line method with the amortization
periods as follows:
Amortization period
Decoration expenditures 3-5 years
Amortization of moulds 3 years
Other expenditures 3-5 years
186Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
18. Employee benefits
Employee benefits include all kinds of rewards or compensation incurred by the Group in
exchange for service rendered by employees or in the termination of employment other than
share-based payment. Employee benefits include short-term benefits retirement benefits
dismission benefits and other long-term employees’ benefits. Benefits provided by the Group to
the spouses children and dependents of employees and families of deceased employees are also a
part of employee benefits.
(1) Short-term benefits
For accounting periods during which services are rendered by employees short-term benefits that
will incur is recognized as liability and included in profit and loss or related capital costs.
(2) Retirement benefits (defined contribution schemes)
Employees of the Group participated in pension insurance and unemployment insurance schemes
managed by the local government. The contribution costs are charged as asset cost or to profit or
loss when incurred.
(3) Retirement benefits (defined benefit schemes)
The Group operates a defined benefit pension scheme which requires payments to an
independently operated fund. No funds have been injected into the scheme. The cost of benefits
provided under the defined benefit scheme is calculated using the expected benefit accrual unit
approach.Remeasurement arising from defined benefit pension schemes including actuarial gains or losses
changes in the asset cap effect (deducting amounts included in net interest on net liabilities of the
defined benefit schemes) and return on scheme assets (deducting amounts included in net interest
on net liabilities of the defined benefit schemes) are instantly recognized in the balance sheet and
charged to equity through other comprehensive income for the period during which it is incurred.It will not be reversed to profit and loss in subsequent periods.Previous service costs are recognized as current expenses when: the defined benefit scheme is
revised or relevant restructuring costs or dismission benefits are recognized by the Group
whichever earlier.Net interest is arrived at by multiplying net liabilities or net assets of defined benefits with a
discount rate. Changes in net obligations of defined benefits are recognized as cost of sales
administrative expenses R&D expenses selling expenses and finance costs in the income
statement. Service costs included current services costs past service costs and settlement of profit
or loss. Net interest included interest income from scheme assets interest expenses for scheme
obligations and interest of the asset cap effect.
19. Provisions
Other than contingent consideration and assumed contingent liabilities in a business combination
not involving entities under common control the Group recognizes as provision an obligation that
is related to contingent matters when all of the following criteria are fulfilled:
187Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
19. Provisions (Cont’d)
(1) the obligation is a present obligation of the Group;
(2) the obligation would probably result in an outflow of economic benefits from the Group;
(3) the obligation could be reliably measured.
Provisions are initially measured according to the best estimate of expenses on fulfilling the
current liabilities in connection with the risk uncertainty and timing value of the currency. The
carrying value of the provisions would be reassessed on every balance sheet date. The carrying
value will be adjusted to the best estimated value if there is certain evidence that the current
carrying value is not the best estimate.The contingent liabilities obtained from a business combination not involving entities under
common control shall be measured at fair value at the time of initial recognition. After the initial
recognition according to the amount confirmed by provisions and the balance of the initial
recognition amount after deducting the accumulated amortization determined by the revenue
recognition principle the higher of the two shall prevail for subsequent measurements.
20. Share-based payments
Share-based payments can be distinguished into equity-settled share-based payments and cash-
settled share-based payments. Equity-settled share-based payments are transactions of the Group
settled through the payment of shares or other equity instruments in consideration for receiving
services.Equity-settled share-based payments made in exchange for services rendered by employees are
measured at the fair value of equity instruments granted to employees. Instruments which are
vested immediately upon the grant are charged to relevant costs or expenses at the fair value on
the date of grant and the capital surplus are credited accordingly. Instruments of which vesting is
conditional upon completion of services or fulfillment of performance conditions are measured by
recognising services rendered during the period in relevant costs or expenses and crediting the
capital surplus accordingly at the fair value on the date of grant according to the best estimates of
the number of exercisable equity instruments conducted by the Group at each balance sheet date
during the pending period. The fair value of equity instruments is determined using the closing
price of the Company’s stock on the date of grant
21. Revenue generating from contracts with customers
The Group recognizes its revenue upon the fulfilment of contractual performance obligations
under a contract namely when the customer obtains control over the relevant products or
services. The acquisition control over relevant products or services shall mean the ability to direct
the use of the products or the provision of the services and receive substantially all economic
benefits derived therefrom.
188Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
21. Revenue generating from contracts with customers (Cont’d)
(1) Contract for the sales of products
The product sales contract between the Group and its customers typically includes different
contractual performance obligations for the transfer of products and the rendering of services.With respect to the sales of products the Group typically recognizes its revenue at the time when
the customer takes control over the products taking into account the following factors: the
acquisition of the current right to receive payments for the products the transfer of major risks and
rewards of ownership the transfer of the legal title of the products the transfer of the physical
assets of the products and customers’ acceptance of the products.
(2) Contract for the rendering of installation services
The service contract between the Group and its customers includes contractual performance
obligations for installation services. As the customer is able to forthwith obtain and consume the
economic benefits brought by the Group’s contractual performance when the Group performs a
contract the Group considers such contractual performance obligations to be obligations
performed over a period of time and revenue shall be recognized on each balance sheet date
according to the progress of installation.
(3) Significant financing component
Where a contract contains a significant financing component the Group determines transaction
prices based on amounts payable assumed to be settled in cash by customers immediately upon the
acquisition of control over the products or services. The difference between such transaction price
and contract consideration is amortized over the contract period using the effective interest
method based on a ratio that discounts the nominal contractual consideration to the current selling
price of the products or services. The Group shall not give consideration to any significant
financing component in a contract if the gap between the customer’s acquisition of control over
the products or services and payment of consideration is expected to be less than 1 year.
(4) Warranty clauses
The Group provides quality assurance for products sold in accordance with contract terms and
laws and regulations. The accounting treatment of quality assurance in the form of warranty
assuring customers products sold are in compliance with required standards is set out in Note
III.20. Where the Group provides a service warranty for a standalone service in addition to the
assurance of compliance of products with required standards such warranty is treated as a
standalone contractual performance obligation and a portion of the transaction price shall be
allocated to the service warranty based on a percentage of the standalone price for the provision of
product and service warranty. When assessing whether a warranty is rendering a standalone
service in addition to providing guarantee to customers that all sold goods are in compliance with
required standards the Group will consider whether or not such warranty is a statutory
requirement the term of the warranty and the nature of the Group’s undertaking to perform its
obligations.
189Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
22. Contract assets and contract liabilities
The Group presents contract assets or contract liabilities on the balance sheet according to the
relationship between contractual performance obligations and customer payments.
(1) Contract assets
The right to receive consideration for the transfer of goods or services to a customer before the
customer actually pays the contract price or before the contract price is due (and such right is
dependent on factors other than the passage of time) is recognized as a contract asset; when an
unconditional right to receive payment is subsequently obtained it is reclassified as a receivable.For details of the Group’s determination and accounting treatment of expected credit losses from
contract assets please refer to Note III.9.
(2) Contract liabilities
Before transferring goods or services to a customer if the consideration from the customer has
been received or the right to receive the consideration unconditionally has been obtained but the
obligation to transfer the goods or services to the customer has not yet been fulfilled it shall be
recognized as a contract liability.
23. Assets relating to contract cost
The Group’s assets relating to contract costs include the contract acquisition costs and contract
performance costs. The costs are presented in inventory other current assets or other non-current
assets based on liquidity of the assets.Where the Group expects the incremental costs for acquiring a contract to be recoverable such
contract acquisition costs are recognized as an asset (unless the amortisation period of the asset is
not more than 1 year).Costs incurred by the Group for the performance of a contract are recognized as an asset as
contract performance costs if they do not fall under the scope of the relevant standards for
inventories fixed assets or intangible assets but meet all the following conditions:
(1) they are directly related to a current or anticipated contract including direct labour direct
materials manufacturing expenses (or similar expenses) to be borne by customers as
specifically stipulated and otherwise incurred solely in connection with the contract;
(2) they will increase the resources to be utilized in the Company’s future performance of its
contractual obligations;
(3) they are expected to be recoverable.
24. Government grants
Government grants are recognized when there is reasonable assurance that the grant will be
received and all attaching conditions will be complied with. The grant is measured as the amount
received or receivable where it takes the form of a cash asset or at fair value where it is not a cash
asset. Where the fair value cannot be reliably obtained it should be measured at the nominal
value.
190Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
24. Government grants (cont’d)
In accordance with the stipulations of the government instruments government grants applied
towards acquisition or the formation of long-term assets in other manners are asset-related
government grants; the instruments unspecifically refer to the exercise of judgement based on the
basic conditions for receiving the asset-related grant applied towards or the formation of long-term
assets in other manners. All other grants are recognized as income-related government grants.Government grants relating to income and applied to make up for related costs or losses in future
periods shall be recognized as deferred income and shall be recognized in profit or loss of the
period for which related costs or loss are recognized. Government grants specifically applied for
the reimbursement of incurred related costs and expenses shall be directly recognized in profit or
loss.Government grants relating to assets shall offset the carrying amount of related assets or be
recognized as deferred income and credited to profit or loss over the useful life of the asset
concerned by reasonable and systematic instalments (provided that government grants measured at
nominal value shall be directly recognized in profit or loss). Where the asset concerned is disposed
of transferred retired or damaged prior to the end of its useful life the balance of the deferred
income yet to be allocated shall be transferred to “asset disposal” under current profit or loss.
25. Deferred tax assets
The Group recognizes deferred tax assets and liabilities based on temporary differences using the
balance sheet liability method. Temporary differences are differences between the carrying
amount of assets or liabilities in the balance sheet and their tax base on the balance sheet date.Temporary differences also include the differences between the carrying values and tax bases of
items not recognized as assets or liabilities where the tax base can be calculated according to the
relevant tax regulations.Deferred tax liabilities are recognized for all taxable temporary differences except:
(1) where the taxable temporary difference arises from goodwill or the initial recognition of an
asset or liability in a transaction that is not a business combination and at the time of the
transaction affects neither the accounting profit nor taxable profit or loss;
(2) in respect of taxable temporary differences associated with investments in subsidiaries
associates and interests in joint ventures where the timing of the reversal of the temporary
differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.Deferred tax assets are recognized for all deductible temporary differences carryforward of
unused tax credits and unused tax losses to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carryforward of unused tax
credits and unused tax losses can be utilized except:
(1) where the deductible temporary difference arises from transaction that is not a business
combination and at the time of the transaction affects neither the accounting profit nor
taxable profit or loss;
(2) deductible temporary differences associated with investments in subsidiaries associates
and interests in joint ventures are recognized when all following conditions are met: it is
probable that the temporary differences will reverse in the foreseeable future it is probable
that taxable profit against the deductible temporary differences will be available.
191Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
25. Deferred tax assets (cont’d)
As at balance sheet date deferred tax assets and liabilities are measured in accordance with
relevant tax laws at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled and reflects the tax consequences that would follow the manner in which
the Group expects at the balance sheet date to recover the assets or settle the carrying amount of
its assets and liabilities.The carrying amount of deferred tax assets is reviewed at the end of each reporting period and
reduced to the extent that it is no longer probable that sufficient taxable profit will be available to
allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are
reassessed at the end of each reporting period and are recognized to the extent that it has become
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset
to be recovered.Deferred tax assets and liabilities are offset and presented as a net amount if all of the following
conditions are met: the Group has the legal right to set off the current income tax assets and
liabilities and the deferred tax assets and liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities provided that the
taxable entity concerned intends either to settle current income tax liabilities and assets on a net
basis or to realize the assets and settle the liabilities simultaneously in each future period in
which significant amounts of deferred tax liabilities or assets are expected to be settled or
recovered.
26. Leases
At inception of a contract the Group assesses whether the contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
(1) As lessee
The Group recognizes leases as the right-of-use asset and lease liabilities except for short-term
leases and leases of low-value assets.Right-of-use assets
At the commencement date of the lease the Group recognizes a right-of-use asset. The cost of
the right-of-use asset comprises: (1) the amount of the initial measurement of the lease
liability; (2) any lease payments made at or before the commencement date less any lease
incentives received; (3) any initial direct cost incurred; (4) an estimate of costs incurred by the
lessee in dismantling and removing the underlying asset restoring the site on which it is
located or restoring the underlying asset to the condition required by the terms and conditions
of the lease. The right-of-use assets are depreciated on a straight-line basis subsequently by
the Group. If ownership of the leased asset transfers to the Group at the end of the lease term
depreciation is calculated using the estimated useful life of the asset. Otherwise the right-of-
use assets are depreciated over the shorter of the lease term and the estimated useful lives of
the assets.
192Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
26. Leases (cont’d)
(1) As lessee (cont’d)
Lease liabilities
At the commencement date the Group measures the lease liability at the present value of the lease
payments that are not paid at that date except for short-term leases and low-value asset leases.Lease payments include constant payments and the substantial constant payments net of lease
incentives variable lease payments that depend on an index or ratio the estimated payables of
guaranteed residual value and also include the exercise price of the purchase option or the amount
to be paid upon vest of the termination option provided that the Group is reasonably certain that
the option will be vested or that the lease term reflects that the Group will exercise the termination
option.In calculating the present value of the lease payments the Group uses the interest rate implicit in
the lease as the discount rate. If that rate cannot be readily determined the Group uses the lessee’s
incremental borrowing rate. The Group calculates the interest expenses of the lease liability in
each period during the lease term using the constant periodic rate of interest and recognizes such
interest expenses in profit or loss except those that in the related asset costs as required. Variable
lease payments that are not included in the measurement of the lease assets are recognized in
profit or loss as incurred except those that shall be included in the related asset costs as required.After the commencement date the Group increases the book value of the lease liability when
interest is recognized and decreases the book value of the lease liability when lease payments are
made. In the event of any change to the substantial constant payments the estimated payables of
guaranteed residual value the index or ratio used to determine lease payments the assessment
results or actual vesting of the purchase option the renewal option or the termination option the
Group remeasures the lease liability at the present value of the modified lease payments.Short-term leases and leases of low-value assets
A short-term lease is a lease that at the commencement date has a lease term of 12 months or
less and does not contains any purchase option. The Group does not recognize the right-of-use
assets and lease liabilities for buildings short-term leases. The Group recognizes lease payments
on short-term leases and leases of low-value assets in the related asset costs or profit or loss on a
straight-line basis over the lease term.
(2) As lessor
A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset except that a lease is classified as an operating
lease at the inception date.As a lessor of operating leases
Rental income of operating leases is recognized in current profit or loss over the respective
periods during the lease term on a straight-line basis while variable lease payment not included in
lease receipts is charged to profit or loss as and when incurred. Initial direct costs are capitalized
and recognized over the lease term on the same basis as rental income through profit or loss.
193Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
27. Share repurchase
The consideration and transaction costs paid to repurchase equity instruments are charged against
owner’s equity. Except for share-based payments the issue (including refinancing) repurchase
disposal or retirement of the Company’s own equity instruments are accounted for as changes in
equity.
28. Expenses for safety production
The expenses for safety production set side as stipulated shall be included in the cost of relevant
products or current profits and losses and included in the special reserve at the same time. When
such expenses are used accounting treatment will be performed according to whether fixed assets
are formed. If identified as expense expenditures the special reserve will be written down directly;
if fixed assets are formed the expenses incurred will be collected fixed assets will be recognized
when they reach a predetermined usable state and the equivalent amount of special reserve will be
written down and the equivalent accumulated depreciation will be recognized.
29. Put option related to non-controlling interests
In the process of acquiring majority equity of subsidiaries the Group grants to minority
shareholders the option to sell the shares of subsidiaries held by them to the Group (put option).The Group recognizes the shares of subsidiaries held by minority shareholders as non-controlling
interests in its consolidated financial statements; for the put option the Group undertakes the
obligation to redeem the shares of the subsidiaries held by minority shareholders in cash. The
Group removes the present value of the amount payable to redeem the put option from its equity
(excluding non-controlling interests) and classifies it as financial liability which is remeasured in
subsequent periods at the present value of the the amount payable to redeem the put option and
recognized in profit or loss.
30. Fair value measurement
The fair value hierarchy to which an asset or liability measured or disclosed in the financial
statements at fair value will be determined on the basis of the lowest level of input which is
significant for the fair value measurement as a whole. Input at the first level represents unadjusted
quoted prices in an active market for the acquisition of the same asset or liability on the
measurement date. Input at the second level represents directly or indirectly observable assets or
liabilities apart from input at the first level. Input at the third level represents unobservable input
for the asset or liability.At each balance sheet date the Group reassesses assets and liabilities measured at fair value on an
ongoing basis recognized in the financial statements to determine whether the level of fair value
measurement should be changed.
194Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates
The preparation of financial statements requires judgement and estimation of the management.Such judgement and estimation will affect the reported amounts of revenue expenses assets and
liabilities and the disclosure of contingent liabilities as at the balance sheet date. However the
consequence arising from the uncertain nature of such estimation may result in significant
adjustment to the carrying value of the asset or liability affected in the future.
(1) Judgement
In the process of applying the Group’s accounting policies management has made the following
judgements which have the most significant effect on the amounts recognized in the financial
statements:
Determination of standalone contractual performance obligations
The intelligent packaging equipment (printers and corrugators) business of the Group includes
four kinds of product or service commitments i.e. the sale installation transportation and
insurance services of machinery. As the customer can benefit from the individual use of the four
kinds of products or services or their use together with other readily available resources and such
product or service commitments are distinctly separable from other products or service
commitments the aforesaid product or service commitments constitute standalone contractual
performance obligations respectively.Business model
The classification of financial assets at initial recognition is dependent on the Group’s business
model for managing the assets. Factors considered by the Group in judging the business model
include enterprise valuation the method of reporting the results of financial assets to key
management members risks affecting the results of financial assets and the method for managing
such risks as well as the form of remuneration received by the management personnel of the
businesses concerned. In assessing whether the business model is aimed at receiving contract cash
flow the Group is required to analyze and exercise judgment in respect of the reasons timing
frequency and values of any disposals prior to maturity.Characteristics of contract cash flow
The classification of financial assets at initial recognition is dependent on the characteristics of the
contract cash flow of such type of financial assets. Judgement is required to determine whether the
contract cash flow represents interest payment in relation to principal amounts based on
outstanding principal amounts only including judgement of whether it is significantly different
from the benchmark cash flow when assessing modifications to the time value of currencies and
judgement of whether the fair value of early repayment features is minimal where the financial
assets include such early repayment features.
(2) Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the
balance sheet date that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within subsequent financial years are discussed below.
195Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates (cont’d)
(2) Estimation uncertainty (cont’d)
Impairment of financial instruments and contract assets
The Group has adopted the expected credit loss model to evaluate the impairment of financial
instruments and contract assets. The application of the expected credit loss model requires
significant judgement and estimates and the consideration of all reasonable and soundly based
information including forward-looking information. In making such judgement and estimates the
Group estimates the projected movements of the debtor’s credit risk according to past repayment
records economic policies macro-economic indicators and industry risks. Different estimates
may affect impairment allowances and established impairment allowances may not equal the
actual impairment loss amount in the future.Impairment of non-current assets other than financial assets (exclusive of goodwill)
The Group assesses at each balance sheet date whether there is an indication that a non-current
asset other than financial assets may be impaired. For an intangible asset with an indefinite useful
life in addition to the annual impairment test it is also tested when there is an indication that it
may be impaired. Non-current assets other than financial assets are tested for impairment when
there is an indication that the carrying amount is irrecoverable. Where the carrying amount of an
asset or an asset group exceeds its recoverable amount—the higher of the asset or asset group’s
fair value less costs to sell and its present value of estimated future cash flows it is considered
impaired. The net amount of the fair value less costs to sell is determined based on the price of a
similar asset’s sales contract in a fair transaction or the observable market price less the
incremental cost directly attributable to the disposal of the asset. When estimating the present
value of future cash flows the management must choose a proper discount rate.Impairment of goodwill
Goodwill must be tested for impairment at least annually. It requires estimating the present value
of future cash flows of an asset group or asset group portfolio allocated with goodwill. When
estimating the present value of future cash flows the Group needs to estimate future cash flows
generating from the asset group or asset group portfolio and at the same time choose a proper
discount rate to determine the present value of future cash flows. For details see Note V.20.Fair value of unlisted equity investments
The unlisted equity investments have been valued based on a market-based valuation technique.This valuation requires the Group to determine the comparable listed companies select the price
multiple and make estimates about the discount for illiquidity and hence they are subject to
uncertainty.Deferred tax assets
Deferred tax assets are recognized for all unused tax losses to the extent that it is likely that
taxable profit will be available to utilize these unused tax losses. Significant judgments are needed
from management to estimate the timing and amount of taxable profit in the future with tax
planning strategies to determine the amount of the deferred tax assets that should be recognized.
196Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
III. Principal Accounting Policies and Accounting Estimates (Cont’d)
31. Significant accounting judgements and estimates (cont’d)
(2) Estimation uncertainty (cont’d)
Lessee’s incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined the Group measures the lease
liability at the present value of the lease payments that are not paid at that date. The Group
discounted the lease payments using the lessee’s incremental borrowing rate. The Group
determines the incremental borrowing rate based on the economic environment by reference to the
observable interest rate. Then the Group adjusts the reference interest rate based on its own
circumstances underlying assets lease terms and amounts of lease liabilities to determine the
applicable incremental borrowing rate.Provisions
The Group estimates and makes corresponding provision for product quality guaranty according to
contract terms existing knowledge and past experience. When such contingencies have formed a
present obligation and it is probable that an outflow of economic benefits from the Group will be
required to settle the obligation the Group recognizes the contingencies as provisions based on the
best estimate of the expenditure required to settle the related present obligation. The recognition
and measurement of provisions largely depend on the judgment of management. In the process of
making judgment the Group is required to assess the risks uncertainties time value of money and
other factors related to such contingencies.The Group will undertake the provisions for post-sale quality maintenance provided to customers
for the sale maintenance and renovation of the sold goods. The provisions have been made taking
into account the Group’s recent data of maintenance experience and taking into account the risks
uncertainties and other factors related to maintenance matters. Any increase or decrease in this
provision may affect the profit and loss in future years.
197Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
IV. Taxation
1. Principal tax items and tax rates
Tax basis Tax rate
Value-added tax The output tax: taxable income; 22% 13% and
(VAT) VAT: difference after deducting the input tax which is 6%
allowed to be deducted in the current year
City maintenance Turnover tax actually paid 7%
and construction
tax
Education surcharge Turnover tax actually paid 3%
Local education Turnover tax actually paid 2%
Surcharge
Property tax Ad valorem tax: remaining value after deducting 30% from 1.2% and 12%
the original value of the property;
Tax levied from rent: rental income.Corporate income Taxable income 15%-30%
tax
The taxpaying entities subject to different corporate income tax rates are as follows:
Income tax rate
Guangdong Dongfang Precision Science & Technology Co. Ltd. 15.0%
Suzhou Parsun Power Machine Co. Ltd. ("Parsun Power") 15.0%
Guangdong Fosber Intelligent Equipment Co. Ltd. ("Fosber Asia") 15.0%
Shenzhen Wonder Digital Technology Co. Ltd. . ("Wonder Digital") 15.0%
Dongfang Digicom Technology Co. Ltd. ( “Dongfang Digicom(Guangdong”) 15.0%
Dong Fang Precision (Hk) Limited (“Dongfang Precision (Hk)”) 16.5%Dong Fang Precision (Netherland) Cooperatief U.A.(“Dongfang Precision 20.0%(Netherland)”)
Fosber S.p.A. 24.0%
Fosber America Inc. (“Fosber America”) 21.0%
Edf Europe s.r.l. (“EDF”) 24.0%
Tiru?a America Inc. (“Tiru?a America”) 21.0%
Quantum Corrugated S.r.l. (“Qcorr”) 24.0%
Tiru?a S.L.U. 28.0%
Tiru?a France Sarl 15.0%
Sci Candan 15.0%
Fosber Mexico Corrugados S.De R.L (“Fosber Mexico”) 30.0%
Grandvoyage Holdings (Singapore) Pte. Ltd.(“Grandvoyage (Singapore)”) 17.0%Starlight Precision Technology (Singapore) Pte. Ltd.(“Starlight 17.0%Precision(Singapore)”)
2. Tax concessions
On 28 December 2023 the Company passed the high-tech enterprise review by the Department of
Science and Technology of Guangdong Province Department of Finance of Guangdong Province
Guangdong Provincial Tax Service of State Taxation Administration and Guangdong Provincial Local
Taxation Bureau and obtained a High-tech Enterprise Certificate (certificate no.: GR202344004676)
jointly issued by the above authorities with a validity of three years during which the Company paid
the corporate income tax at a reduced rate of 15% so the preferential tax rate of 15% was applicable to
the Company's corporate income tax as at 31 December 2025.
198Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
Parsun Power. a subsidiary of the Company passed the high-tech enterprise review by the Department
of Science and Technology of Jiangsu Province Department of Finance of Jiangsu Province and
Jiangsu Provincial Tax Service of State Taxation Administration on 18 November 2022 and obtained a
High-tech Enterprise Certificate (certificate no.: GR202232005866) jointly issued by the above
authorities with a validity of three years during which the subsidiary paid the corporate income tax at
a reduced rate of 15% and was re-examined and approved again as a High-tech Enterprise on
December 25 2025 (Certificate No.: GR202532001269) with a validity period of three years so the
preferential tax rate of 15% was applicable to the corporate income tax of Parsun Power as at 31
December 2025.Fosber Aisa a subsidiary of the Company passed the high-tech enterprise review by the Department of
Science and Technology of Guangdong Province Department of Finance of Guangdong Province and
Guangdong Provincial Tax Service of State Taxation Administration on 28 November 2024 and
obtained a High-tech Enterprise Certificate (certificate No.: GR202444004278) jointly issued by the
above authorities with a validity of three years during which the subsidiary paid the corporate income
tax at a reduced rate of 15%. so the preferential tax rate of 15% was applicable to the corporate income
tax of Fosber Asia as from 2024 to 2026.Shenzhen Wonder Digital Technology Co. Ltd. a subsidiary of the Company passed the high-tech
enterprise review by the Department of Science and Technology of Guangdong Province Department
of Finance of Guangdong Province and Guangdong Provincial Tax Service of State Taxation
Administration on 19 December 2022 and obtained a High-tech Enterprise Certificate (certificate no.:
GR202244206125) jointly issued by the above authorities with a validity of three years during which
the subsidiary paid the corporate income tax at a reduced rate of 15% and was re-examined and
approved again as a High-tech Enterprise on December 25 2025 (Certificate No.: GR202544202708)
with a validity period of three years， so the preferential tax rate of 15% was applicable to thecorporate income tax of Wonder Digital as at 31 December 2025.Dongfang Digicom Technology Co. Ltd. a subsidiary of the Company passed the high-tech enterprise
review by the Department of Science and Technology of Guangdong Province Department of Finance
of Guangdong Province and Guangdong Provincial Tax Service of State Taxation Administration on 28
November 2024 and obtained a High-tech Enterprise Certificate (certificate no.: GR202444005593)
jointly issued by the above authorities with a validity of three years during which the subsidiary paid
the corporate income tax at a reduced rate of 15% so the preferential tax rate of 15% was applicable to
the corporate income tax of Dongfang Digicom(Guangdong) as at 31 December 2025.
199Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements
1. Cash and bank balances
20252024
Cash on hand 388992.02 497855.11
Cash at banks 1929620404.45 1505877879.48
Other cash balances 148909630.98 222674648.75
2078919027.451729050383.34
Of which: Total amount deposited overseas 1011711436.77 661563660.12
Total restricted amount
as collateral pledge or frozen 84620149.30 76759834.79
As at 31 December 2025 the fund deposited abroad with restrictions on repatriation was
equivalent to RMB 72078021.83 (31 December 2024: RMB10859642.60).Current bank deposits earn interest income based on interest rates for current deposits.Note 1: Other cash balances include: 1) a total of RMB61758489.22 in guarantee deposits
for bank acceptance bill deposits and loan deposits; 2) Investments deposited with a book
value of RMB 64289481.68; 3) Frozen investments with a book value of RMB
22861660.08.
2. Financial assets held for trading
20252024
Financial assets at fair value through profit or loss
Investments in bank’s wealth management
products 352724315.45 233789426.10
Stocks and Funds 332768713.53 236797596.08
Asset management plans 65846656.99 297908542.28
Investments in trust products 15214791.52 20153767.72
766554477.49788649332.18
3. Derivative financial assets
20252024
Foreign currency derivatives 101000.75 2755081.17
101000.752755081.17
200Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
4 Notes receivable
(1) Notes receivable by categories
20252024
Bank acceptance notes 48393159.64 96695760.53
Commercial acceptance notes - 1352384.78
Less: impairment allowance - -
48393159.6498048145.31
(2) Notes receivable endorsed or discounted but undue at the balance sheet date
Derecognized Un-derecognized
Bank acceptance notes - 46374270.65
-46374270.65
As at 31 December 2025 the Group did not establish impairment allowance for the bank
acceptance notes after its estimation of impairment allowance based on the lifetime ECL. The
Group is of opinion that the held bank acceptance notes do not carry significant credit risk and
thus no significant losses may incur due to bank default.
5. Accounts receivable
(1) Aging analysis of accounts receivable
20252024
Within 1 year 892283895.51 671758354.04
1-2 years 50396371.70 64675802.44
2-3 years 22739742.02 26567589.98
3-4 years 14658385.94 7329163.57
4-5 years 4975011.73 2565796.54
Over 5 years 3201447.60 8675651.19
988254854.50781572357.76
Less: allowances for doubtful accounts
receivable 36233617.72 35709532.05
952021236.78745862825.71
201Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
(2) The accounts receivable by the method of establishing allowances
2025
Gross amount Allowance Carrying amount
Amount Percentage Amount Percentage
(%)(%)
Accounts receivable for which allowances are
established individually 4478756.48 0.45 4478756.48 100.00 -
Accounts receivable for which allowances are
established by group with similar credit risk
characteristics 983776098.02 99.55 31754861.24 3.23952021236.78
988254854.50100.0036233617.72952021236.78
2024
Gross amount Allowance Carrying amount
Amount Percentage Amount Percentage
(%)(%)
Accounts receivable for which allowances
are established individually 1250400.00 0.16 1250400.00 100.00 -
Accounts receivable for which allowances
are established by group with similar credit
risk characteristics 780321957.76 99.84 34459132.05 4.42 745862825.71
781572357.76100.0035709532.05745862825.71
202Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
5. Accounts receivable (cont’d)
(2) The accounts receivable by the method of establishing allowances (cont’d)
Accounts receivable for which allowances are established individually are as follows:
20252024
Gross
Gross amount Allowance ECL Reason for allowance amount Allowance
(%)
Customer 1 Customer’s inability to641600.00 641600.00 100.00 settle the amount due 641600.00 641600.00
Customer’s inability to
Customer 2 608800.00 608800.00 100.00 settle the amount due 608800.00 608800.00
Customer’s inability to
Customer 3 3228356.48 3228356.48 100.00 settle the amount due - -
4478756.484478756.481250400.001250400.00
As at 31 December 2025 accounts receivable for which allowances are established by group
with similar credit risk characteristics are as follows:
Gross amount Allowance ECL(%)
Within 1 year 892208148.21 9487049.68 1.06
1-2 years 50396371.70 3563864.97 7.07
2-3 years 22739742.02 6646630.39 29.23
3-4 years 11505776.76 5281325.80 45.90
4-5 years 4975011.73 4824942.80 96.98
Over 5 years 1951047.60 1951047.60 100.00
983776098.0231754861.24
203Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
5. Accounts receivable (cont’d)
(3) Allowances for doubtful accounts receivable
Recovery or Effect of
Provision in the reversal in the Written off in exchange rate
Opening balance year year the year movements Closing balance
202535709532.0512410262.16(1275406.48)(12515275.43)1904505.4236233617.72
As at 31 December 2025 the top five accounts receivable and contract assets were as follows:
Total closing
balance of
provision for bad
Total closing As a % of the debts of accounts
balance of closing balance receivable and
Closing balance of Closing accounts of total accounts provision for
accounts balance of receivable and receivable and impairment of
receivable contract assets contract assets contract assets contract assets
Customer 4 130032096.38 - 130032096.38 12.28 4031911.10
Customer 5 92658283.94 - 92658283.94 8.75 2109012.61
Customer 6 52333578.26 - 52333578.26 4.94 376051.35
Customer 7 40782404.00 - 40782404.00 3.85 815648.08
Customer 8 32864113.07 - 32864113.07 3.10 280120.28
348670475.65-348670475.6532.927612743.42
6. Receivables financing
20252024
Bank acceptance notes 19403276.39 16303982.64
19403276.3916303982.64
7. Prepayments
(1) Aging of prepayments
20252024
Carrying amount Percentage Percentage(%) Carrying amount (%)
Within 1 year 33316934.80 89.06 20658142.10 73.19
1-2 years 1757166.57 4.70 5496200.81 19.47
2-3 years 311127.83 0.83 1800946.41 6.38
Over 3 years 2024701.77 5.41 270906.03 0.96
37409930.97100.0028226195.35100.00
204Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
7. Prepayments (cont’d)
(2) Suppliers to which the of top 5 prepayments were paid
As a % of total
2025 prepayments
Supplier 1 4198398.18 11.22
Supplier 2 3314624.04 8.86
Supplier 3 2262703.63 6.05
Supplier 4 1954062.00 5.22
Supplier 5 1784248.39 4.77
13514036.2436.12
8. Other receivables
20252024
Other receivables 31895695.08 40647410.48
31895695.0840647410.48
Other receivables
(1) Aging of other receivables
20252023
Within 1 year 18354891.41 33526337.20
1-2 years 9763852.83 2775908.24
2-3 years 641457.00 2741627.11
3-4 years 2368064.07 676581.88
4-5 years 467519.13 1327408.54
Over 5 years 1706952.31 1042634.10
33302736.7542090497.07
Less: allowances for doubtful other receivables 1407041.67 1443086.59
31895695.0840647410.48
205Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
8. Other receivables (cont’d)
Other receivables (cont’d)
(2) Other receivables classified by nature
20252024
Security deposits 8180431.48 8642471.46
Employee loans and petty cash 6988083.81 5500800.82
Government grants 6000000.00 6000000.00
Export tax refunds 591747.36 1267848.43
Prepaid service charges - 9002675.21
Others 11542474.10 11676701.15
33302736.7542090497.07
(3) Allowances for doubtful other receivables
2025
Carrying
Gross amount Allowance amount
Amount Percentage Amount Percentage
(%)(%)
Other receivables for which
allowances are established by
group with similar credit risk
characteristics 33302736.75 100.00 1407041.67 4.23 31895695.08
206Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
8. Other receivables (cont’d)
Other receivables (cont’d)
(3) Allowances for doubtful other receivables (cont’d)
Movements in allowances for doubtful other receivables that are established based on the 12-
month ECL and the lifetime ECL are as follows:
Stage 1 Stage 2 Stage 3 Total
Financial assets
with credit
impairment
12-month ECL Lifetime ECL (lifetime ECL)
Opening balance 943086.59 500000.00 - 1443086.59
Provisions in the year 389928.43 - - 389928.43
Reversed in the year (425973.35) - - (425973.35)
Written off in the year - - - -
Other changes - - - -
Closing balance 907041.67 500000.00 - 1407041.67
(4) Entities from which the top 5 other receivables were due
As a % of Closing
total other Nature Age balance of
2025 receivables allowance
Entity 1 6000000.00 18.02 Government grants 1-2 year -
12.52 Transactions with third
Entity 2 4171128.80 parties Within 1 year -
7.65
Entity 3 Transactions with third 1-2 years
2546776.74 parties -
5.00 Transactions with third 1-2 years
Entity 4 1665958.47 parties -
4.82
Entity 5 Deposit security 2-3years，3-
1605000.00 deposit 4years -
15988864.0148.01-
207Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
9. Inventories
(1) Categories of inventories
20252024
Valuation Valuation
Gross amount allowance Carrying amount Gross amount allowance Carrying amount
Raw materials 647541935.43 28460878.05 619081057.38 589876070.44 22563941.37 567312129.07
Work-in-progress 369761978.91 21391350.19 348370628.72 374757086.69 20796033.51 353961053.18
Finished goods 72987686.14 8803128.59 64184557.55 70354471.23 4963028.38 65391442.85
Product deliveries 41042557.50 - 41042557.50 12920671.77 - 12920671.77
Semi-finished
goods 42568277.48 459377.88 42108899.60 30449965.16 594060.16 29855905.00
Materials consigned
for processing 4489421.16 - 4489421.16 2458391.15 - 2458391.15
1178391856.6259114734.711119277121.911080816656.4448917063.421031899593.02
208Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
9. Inventories (cont’d)
(2) Movements in inventory valuation allowances
Opening balance Provision inthe year Decrease in the year Closing balance
Reversed or written off Others
Raw materials 22563941.37 15968690.92 (10895461.17) 823706.93 28460878.05
Work-in-progress 20796033.51 92631.45 - 502685.23 21391350.19
Finished goods 4963028.38 4857423.94 (1017323.73) - 8803128.59
Semi-finished goods 594060.16 105935.65 (240617.93) - 459377.88
48917063.4221024681.96(12153402.83)1326392.1659114734.71
10. Contract assets
(1) Status of contract assets
20252024
Impairment Carrying Impairment Carrying
Gross amount allowance amount Gross amount allowance amount
Carrying amount 70210620.34 5669499.41 64541120.93 57810489.98 5659318.06 52151171.92
70210620.345669499.4164541120.9357810489.985659318.0652151171.92
209Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
10. Contract assets (cont’d)
(2) The contract assets by the method of establishing impairment allowances
2025
Impairment Carrying
Gross amount allowance amount
Amount Percentage Amount Percentage
(%)(%)
Contract assets for which
allowances are
established by group with
similar credit risk
characteristics 70210620.34 100.00 5669499.41 8.07 64541120.93
2024
Impairment Carrying
Gross amount allowance amount
Amount Percentage Amount Percentage
(%)(%)
Contract assets for which
allowances are established
by group with similar
credit risk characteristics 57810489.98 100.00 5659318.06 9.79 52151171.92
As at 31 December 2025 contract assets for which allowances are established by group with
similar credit risk characteristics are as follows:
Impairment
Gross amount allowance ECL (%)
Within 1 year 58271275.50 1191136.06 2.04
1-2 years 8221461.38 1036726.28 12.61
2-3 years 506038.46 229792.07 45.41
3-4 years 3211845.00 3211845.00 100.00
70210620.345669499.41
Movements in impairment allowances for contract assets are as follows:
Opening Provision in Reversed Other Closing
balance the year in the year decreases balance
20255659318.06786385.99(775725.13)(479.51)5669499.41
5659318.06786385.99(775725.13)(479.51)5669499.41
210Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
11. Current portion of non-current assets
20252024
Current portion of long-term receivables 13368400.00 8035336.42
Current portion of large-denomination
certificates of deposit 10909534.25 -
24277934.258035336.42
As at 31 December 2025 there’s no need to establish impairment allowances for the current
portion of non-current assets in the management’s opinion.
12. Other current assets
20252024
Input VAT to be deducted 57771294.63 24869036.74
Tax repayments 28946167.30 5707002.32
Overpaid value-added tax (VAT) 3623329.38 20900456.01
Others 24022378.71 9066601.42
114363170.0260543096.49
211Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
13. Long-term receivables
(1) Status of long-term receivables
20252024
Provision for Carrying Provision for Carrying
Gross amount bad debts amount Gross amount bad debts amount
Amounts receivable by
installment for
selling goods 6370000.00 157231.20 6212768.80 4112000.00 64147.20 4047852.80
6370000.00157231.206212768.804112000.0064147.204047852.80
(2) Allowances for doubtful long-term receivables
Gross amount Allowance Carrying amount
Amount Percentage Amount Percentage
(%)(%)
Long-term receivables for which
allowances are established by group
with similar credit risk
characteristics 6370000.00 100.00 157231.20 2.47 6212768.80
6370000.00100.00157231.202.476212768.80
212Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
13. Long-term receivables (cont’d)
(3) Movements in allowances for doubtful long-term receivables:
Transfer out in Reversed in Transfer out in Written off
Opening balance the year the year the year in the year Closing balance
202564147.2093084.00---157231.20
64147.2093084.00---157231.20
213Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
14. Long-term equity investments
Opening Change in the year Closing
balance Return on balance
Additional investment under the Other comprehensive
investment equity method income
Associates
Guangdong Jaten Robot & Automation Co.Ltd.(“Jaten Robot”) 88414913.65 - 805987.99 - 89220901.64
Talleres Tapre.S.L.(“Talleres Tapre”) 1685238.05 - - 158946.28 1844184.33
Nanjing Profeta Intelligent Technology Co.Ltd.(“Nanjing Profeta”) 23368996.88 - (3118890.98) - 20250105.90
Shenzhen Ruoyu Technology Co.Ltd.(“ Shenzhen Ruoyu”) - 100682147.68 (3841448.33) - 96840699.35
Guizhou Aerospace Xinli Technology Co. Ltd.(“Aerospace Xinli”) - 91701701.08 - - 91701701.08
Shenzhen Heju Intelligent Control Technology
Co. Ltd. (“Shenzhen Heju”) - 3000000.00 - - 3000000.00
113469148.58195383848.76(6154351.32)158946.28302857592.30
As at 31 December 2025 there’s no need to establish impairment allowances for long-term equity investments in the management’s opinion.
214Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
15. Other non-current financial assets
20252024
Financial assets at fair value through profit or loss 817347878.10 539449588.63
817347878.10539449588.63
Other non-current financial assets mainly refer to the Group’s investment in equity instrument
investments and long-term derivative financial assets.V. Notes to the Consolidated Financial Statements (cont’d)
16. Fixed assets
Buildings and Machinery Transportation Other Total
constructions facility equipment
Gross amount
Opening balance 684941295.72 576518555.14 34793257.90 73877754.43 1370130863.19
Purchases 4692738.65 18941288.21 2149753.80 10016435.32 35800215.98
Transfers from construction
in progress 380812858.13 35716680.75 - 8270277.63 424799816.51
Disposal or retirement (8583885.96) (8743913.52) (1350752.42) (2156983.03) (20835534.93)
Effect of exchange rate
movements 16028025.80 31489631.91 (12465.57) 43680.11 47548872.25
Closing
balance 1077891032.34 653922242.49 35579793.71 90051164.46 1857444233.00
Accumulated depreciation
Opening balance 234501979.99 378031510.56 21155407.95 54461342.90 688150241.40
Provision 21677998.98 31153460.32 3427141.25 8230656.51 64489257.06
Disposal or retirement (4189559.40) (4994486.67) (1179146.99) (1697368.03) (12060561.09)
Effect of exchange rate
movements 8405431.67 24201592.79 61728.85 53647.24 32722400.55
Closing balance 260395851.24 428392077.00 23465131.06 61048278.62 773301337.92
Carrying amount
Closing 817495181.10 225530165.49 12114662.65 29002885.84 1084142895.08
Opening 450439315.73 198487044.58 13637849.95 19416411.53 681980621.79
215Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
16. Fixed assets (cont’d)
As at 31 December 2025 no registration certificate for properties has been obtained for the new plant with carrying amount of RMB147266562.80.
17. Construction in progress
(1) Status of construction in progress
20252024
Gross amount Impairment Carrying Impairment Carryingallowance amount Gross amount allowance amount
Plants and buildings 171354681.25 - 171354681.25 379310179.88 - 379310179.88
Equipment installation 24487130.50 - 24487130.50 25516415.14 - 25516415.14
195841811.75-195841811.75404826595.02-404826595.02
216Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
17. Construction in progress (cont’d)
(2) Movements in substantial construction in progress
Budget Opening balance Increase in Transferred to Other decrease Closing balance Funding Input as
the year fixed assets in source a % of
the year budget
Self-funded
Dongfang Precision - Nanhai Water loans from
Conservancy Bureau Bafang Art financial
Center Project 80000000.00 5436233.02 69951387.50 - - 75387620.52 institutions 94.23%
Tiru?a Asian Tiru?a Asian - Plant
Construction Project 85745627.16 851247.29 1476618.26 2327865.55 - - Self-funded 100.00%
Parsun Power - High-End Marine Power
Digital-Intelligent Products Factory
and R&D Center Construction Project 256043300.00 124079449.51 39144941.04 149980796.75 - 13243593.80 Self-funded 63.75%
Self-funded
loans from
financial
Fosber Asian – Fosber Songgang Plant 300000000.00 88607893.45 46226088.08 134833981.53 - - institutions 100.00%
Tiru?a S.L.U.- Corrugated roller
production equipment 71697343.90 2486882.62 4226912.65 50186.06 307467.71 6971076.92 Self-funded 40.94%
Fosber S.P.A.-Plant Construction Project 334893650.00 160331144.63 20850505.41 112261032.38 13526161.22 82446778.88 Self-funded 55.46%
Others - 23033744.50 21969553.34 25345954.24 (1864601.97) 17792741.63 Self-funded N/A
1128379921.06404826595.02203846006.28424799816.5111969026.96195841811.75
217Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
18. Right-of-use assets
Buildings Vehicles Total
Cost
Opening balance 111772062.42 34640747.28 146412809.70
Increase 16490931.55 8346313.95 24837245.50
Lease modification (2076178.72) - (2076178.72)
Disposal - (1046722.20) (1046722.20)
Effect of exchange rate
movements 7470828.27 3390616.63 10861444.90
Closing balance 133657643.52 45330955.66 178988599.18
Accumulated depreciation
Opening balance 60216325.38 22049286.01 82265611.39
Provision 16631340.86 5171805.57 21803146.43
Disposal - (434933.90) (434933.90)
Effect of exchange rate
movements 3868742.13 2161735.77 6030477.90
Closing balance 80716408.37 28947893.45 109664301.82
Carrying amount
Closing 52941235.15 16383062.21 69324297.36
Opening 51555737.04 12591461.27 64147198.31
218Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
19. Intangible assets
Land use Land Patented Trademarks
rights ownership technologies and software Total
Gross amount
Opening
balance 177783228.49 16101261.87 124910055.82 211483366.81 530277912.99
Purchases 32077.75 - 9374119.66 8976463.31 18382660.72
Effect of
exchange rate
movements - 1518619.62 9919281.89 16260231.89 27698133.40
Closing
balance 177815306.24 17619881.49 144203457.37 236720062.01 576358707.11
Accumulated
depreciation
Opening
balance 32729685.75 - 86977196.91 54006823.89 173713706.55
Provision 3856248.67 - 6535442.84 14044933.78 24436625.29
Effect of
exchange rate
movements - - 7423034.23 3842845.77 11265880.00
Closing
balance 36585934.42 - 100935673.98 71894603.44 209416211.84
Carrying amount
Closing 141229371.82 17619881.49 43267783.39 164825458.57 366942495.27
Opening 145053542.74 16101261.87 37932858.91 157476542.92 356564206.44
As at 31 December 2025 the proportion of intangible assets formed through internal research
and development to the carrying amount of intangible assets at the end of the year was 2.49%.As of 31 December 2025 there were no intangible assets without property rights certificates.
219Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
20. Goodwill
(1) Original value of good will
Increase in the Decrease in the
Opening balance year year Closing balance
Exchange rate Disposal allocated
adjustments to disposal groups
held for sale
Fosber Group 154506980.87 14572605.20 - 169079586.07
Parsun Power 208031946.10 - - 208031946.10
EDF 66069650.95 6231478.57 - 72301129.52
QCorr 13100299.36 1235578.42 - 14335877.78
Wonder Digital 119422168.56 - - 119422168.56
561131045.8422039662.19-583170708.03
(2) Movements in impairment allowances for goodwill
Decrease in the
Opening balance Increase in the year year Closing balance
Allowance Exchange rate Disposal
adjustments allocated to
disposal groups
held for sale
Parsun
Power 61855054.35 - - - 61855054.35
EDF 66069650.95 - 6231478.57 - 72301129.52
Wonder
Digital 8217037.61 46479115.32 - - 54696152.93
136141742.9146479115.326231478.57-188852336.80
(3) Information about the asset groups
Corrugator line business asset group of Fosber Group
The corrugator line business asset group is an asset group owned by Fosber Group consistent
with the asset group combination determined on the purchase date and during impairment
tests of the previous years. The carrying amount of the corrugator line business asset group
was RMB585.23 million. The recoverable amount is determined using the present value of
the projected future cash flows of the asset group combination according to the cash flow
forecasting based on the financial budget over a five-year period approved by the
management. The perpetual cash flows are determined at the level of the last year of the
detailed forecast period and based on the industry development trend and other factors. The
discount rate used in cash flow forecasting was 17.51% (18.81% in 2024).
220Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
20. Goodwill (cont’d)
(3) Information about the asset groups (cont’d)
Power machine business asset group of Parsun Power
The power machine business asset group is an asset group owned by Parsun Power consistent
with the asset group combination determined on the purchase date and during impairment
tests of the previous years. The carrying amount of the power machine business asset group
was RMB313.57 million. The recoverable amount is determined using the present value of
the projected future cash flows of the asset group combination according to the cash flow
forecasting based on the financial budget over a five-year period approved by the
management. The perpetual cash flows will be determined at the level of the last year of the
detailed forecast period and based on the industry development trend and other factors. The
discount rate used in cash flow forecasting was11.60% (10.83% in 2024).Corrugator line business asset group of QCorr
The corrugator line business asset group of QCorr is the only asset group owned by QCorr
consistent with the asset group combination determined on the purchase date. The carrying
amount of the corrugator line asset group was RMB 52.88 million. The recoverable amount is
determined using the present value of the projected future cash flows of the asset group
combination according to the cash flow forecasting based on the financial budget over a five-
year period approved by the management. The perpetual cash flows will be determined at the
level of the last year of the detailed forecast period and based on the industry development
trend and other factors. The discount rate used in cash flow forecasting was 18.97% (21.27%
in 2024).Corrugated carton printer business asset group of EDF
For the corrugated carton printer business asset group of EDF impairment allowances for
goodwill were established in full amount in 2019.Corrugated digital printer business asset group of Wonder Digital
The digital printer business asset group is the only asset group owned by Wonder Digital
consistent with the asset group combination determined on the purchase date. The carrying
amount of the digital printer business asset group was RMB 239.07 million. The recoverable
amount is determined using the present value of the projected future cash flows of the asset
group combination according to the cash flow forecasting based on the financial budget over
a five-year period approved by the management and the industry development trend and other
factors. The perpetual cash flows are determined at the level of the last year of the detailed
forecast period and based on the industry development trend and other factors The discount
rate used in cash flow forecasting was 13.16% (11.88% in 2024).
221Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
20. Goodwill (cont’d)
Where the recoverable amount is determined according to the present value of the expected
future cash flows:
Impairment amount (Note Years of Key Key Basis for
1)budget/forecast parameters ofparametersdetermination
Recoverable periodbudget/forecast of stable of key
Carrying amount period period parameters of
amount stable period
Revenue Based on 0%
growth revenue
rate growth rate
Fosber Revenue for stable
Group 585228070.65 3127019350.00 - 5 years growth rate period
Revenue Revenue Based on 0%
growth rate growth revenue
rate growth rate
Parsun for stable
Power 313567341.55 1 056100000.00 - 5 years period
Revenue Revenue Based on 0%
growth rate growth revenue
rate growth rate
for stable
QCorr 52882421.69 444717000.00 - 5 years period
Revenue Revenue Based on 0%
growth rate growth revenue
rate growth rate
Wonder for stable
Digital 239065520.24 147930000.00 91135520.24 5 years period
1190743354.134775766350.0091135520.24
Note 1: The amount of goodwill impairment attributable to the shareholders of the parent
company in 2025 is RMB46479115.32.Goodwill acquired in business combinations is allocated to the following asset groups or asset
group portfolios for impairment testing:
Corrugator line business asset group of Fosber Group
Power machine business asset group of Parsun Power
Corrugator line business asset group of QCorr
Corrugated carton printer business asset group of EDF
Corrugated digital printer business asset group of Wonder Digital
222Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
20. Goodwill (cont’d)
The following describes the key assumptions made by the management in determining cash
flow forecasting for goodwill impairment testing:
Revenue growth rate Developed based on the revenue generated in the year prior to the
in forecast period forecast period taking into account the anticipated market
development.Budget gross margin - Developed based on the average gross margin of historical operating
results and expectations for market development.Discount rate - The discount rate used is the pre-tax discount rate that reflects the
specific risks of the relevant asset group or asset group combination.The amount of the key assumptions allocated to the above asset group or asset group portfolio
is consistent with the Group's historical experience and external information.
223Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
21. Long-term prepaid expenses
Opening Increase in Amortization in Closing
balance the year the year balance
Amortization of moulds 14477251.54 4432357.96 (4268869.82) 14640739.68
Office decoration expenditures 2639293.16 - (1030365.09) 1608928.07
Plant decoration expenditures 1172704.70 60610.28 (310438.47) 922876.51
Expenditures on supporting
engineering for plants 1031479.78 59500.00 (193670.46) 897309.32
CE certification fee 415804.08 21124.52 (120796.92) 316131.68
Others 1982036.93 73794.55 (840380.99) 1215450.49
21718570.194647387.31(6764521.75)19601435.75
22. Deferred tax assets/liabilities
(1) Deferred tax assets before offsetting
20252024
Deductible Deferred Deductible Deferred
temporary tax assets temporary tax assets
differences differences
Deferred tax assets
Financial assets measured at fair
value with changes recognized
in profit or loss 362634.46 87032.27 - -
Asset impairment allowances 53826064.24 11356429.16 47734216.35 8660456.54
Unrealized Profit from Internal
Transactions 30996877.84 7439250.68 48001485.88 11520356.61
Deductible loss 860769498.31 131218404.06 1048858286.21 158814236.91
Provisions—after-sales
maintenance service charges 140926695.31 37075641.76 138790149.48 36017710.44
Deferred income 13073671.66 1961050.75 14790331.66 2218549.75
Accrued Expenses 82816946.81 18934332.98 66952010.17 11858922.37
Share-based payment expenses 26132389.63 3919858.44 8039014.18 1205852.11
Credit impairment loss 37066001.20 8042261.63 36461019.37 7620555.43
Lease liabilities 71507596.87 18803539.96 66292896.00 15265968.52
Others 92394598.15 26027616.92 120546724.93 24174916.88
1409872974.48264865418.611596466134.23277357525.56
224Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
22. Deferred tax assets/liabilities (cont’d)
(2) Deferred tax liabilities before offsetting
20252024
Deductible Deferred Deductible Deferred
temporary tax liabilities temporary tax liabilities
differences differences
Deferred tax liabilities
Financial assets at fair value through
profit or loss 101116916.41 15213718.56 7897264.33 566246.42
Increase in value in asset valuation 30652458.94 5207662.83 36211780.48 6266802.33
Depreciation difference of fixed assets 64814194.19 11598415.74 54682485.61 9197111.97
Right-of-use assets 67737035.60 17867316.27 64040183.00 14687786.79
Others 154666171.68 37294076.58 112555579.09 26495758.32
418986776.8287181189.98275387292.5157213705.83
(3) Deferred tax assets or liabilities offset and presented as a net amount:
20252024
Offset amount Offset balance Offset amount Offset balance
Deferred tax assets 84220398.65 180645019.96 55170776.35 222186749.21
Deferred tax liabilities 84220398.65 2960791.33 55170776.35 2042929.48
(4) Schedule of deferred tax assets not recognized
20252024
Deductible temporary differences 11690059.28 2322421.40
Deductible losses 150015919.04 170662463.46
161705978.32172984884.86
225Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
22. Deferred tax assets/liabilities (cont’d)
(5) Analysis of expiration date of deductible tax losses not recognized as deferred tax assets
20252024
2025-13984168.64
20263731975.6412841957.31
202756537461.6573324757.62
202829186126.0546744666.65
20297085759.8023766913.24
203018781181.30-
20313966101.35-
203212910093.86-
203311660909.70-
20344162288.09-
20351994021.60-
150015919.04170662463.46
The Company has accrued deferred tax assets of RMB839739705.13 for the accumulated
deductible losses of RMB125960955.77 based on the forecast of its profits in the next five
years.(2024: accrued deferred tax assets of RMB155138840.62 for the accumulated
deductible losses of RMB1015146317.47)
23. Other non-current assets
20252024
Carrying amount Carrying amount
Prepayment for acquisition of long-term assets 29516058.00 82384181.65
Certificates of deposit - 10579534.25
Others 66636.40 60893.15
29582694.4093024609.05
226Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
24. Assets with restricted ownership or right of use
2025 2024 Limited type
Deposit Investment
Cash and bank balances 84620149.30 76759834.79 deposits
Fixed assets 63466811.34 61309010.26 Mortgage
148086960.64138068845.05
Note 1: At 31 December 2025 currency funds with carrying amount of RMB 61758489.22
were used to obtain deposits for bank acceptance bills letters of guarantee forward
settlement and sales of foreign exchange and other payments (31 December 2024:
RMB76759834.79); currency funds with carrying amount of RMB 22861660.08
were designated for fund investments. As the registration of the target fund remained
pending these investment funds were legally frozen.Note 2: At 31 December 2025 a carrying amount of RMB 63466811.34 (31 December
2024: RMB 61309010.26) of fixed assets was pledged for the Group to obtain bank
loans with a maturity until 2034.
25. Short-term borrowings
20252024
Credit loan 175365489.83 59829377.75
Bills discounted 10150520.00 25560751.24
185516009.8385390128.99
26. Derivative financial liabilities
20252024
Non-controlling interests put options 93739278.69 205222952.29
Foreign currency derivatives 44562.29 993286.71
93783840.98206216239.00
227Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
27. Notes payable
20252024
Bank acceptance notes 241390245.31 144137609.00
241390245.31144137609.00
As at 31 December 2025 outstanding notes payable upon maturity were nil (31 December
2024: nil).
28. Accounts payable
20252024
Purchases of inventories 936107613.22 687235330.65
936107613.22687235330.65
As at 31 December 2025 substantial accounts payable with aging over 1 year were nil (31
December 2024: nil).
29. Contract liabilities
(1) Contract liabilities
20252024
Contract liabilities 458557878.31 373931068.16
458557878.31373931068.16
As at 31 December 2025 there were no significant contract liabilities with aging over one
year (31 December 2024: nil).Information about contractual performance obligations is as follows:
Corrugator line corrugated case printing and packaging equipment and outboard engine sales
Fulfill the contractual performance obligations when relevant products are delivered to the
customers and the control over the equipment is transferred. For all customers the contract
price usually expires within 1 to 12 months after relevant products are delivered and the
control over the equipment is transferred.
228Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
30. Employee benefits payable
(1) Employee benefits payable
Opening balance Increase in Decrease inthe year the year Closing balance
Short-term benefits 125399088.91 819639418.36 796427780.95 148610726.32
Retirement benefits
(defined contribution
schemes) 14143923.47 124253722.45 123439842.12 14957803.80
139543012.38943893140.81919867623.07163568530.12
(2) Short-term benefits
Opening balance Increase in Decrease inthe year the year Closing balance
Salaries bonuses
allowances and
subsidies 118250534.10 727268108.17 704397102.90 141121539.37
Employee welfare 6000842.31 37369333.63 36976333.29 6393842.65
Social security
contributions 350467.84 45365720.05 45380101.73 336086.16
Including: Medical
insurance 217042.06 28071979.53 28110113.80 178907.79
Work injury insurance 117423.28 16547860.38 16525309.40 139974.26
Maternity insurance 16002.50 745880.14 744678.53 17204.11
Housing funds 624565.00 8147798.11 8146916.11 625447.00
Labour union funds and
employee education
funds 172679.66 1488458.40 1527326.92 133811.14
125399088.91819639418.36796427780.95148610726.32
(3) Defined contribution schemes
Opening balance Increase in Decrease inthe year the year Closing balance
Basic endowment
insurance 14126328.89 123353907.72 122540701.13 14939535.48
Unemployment insurance 17594.58 899814.73 899140.99 18268.32
14143923.47124253722.45123439842.1214957803.80
229Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
31. Tax payable
20252024
Corporate income tax 24069274.37 51562827.67
Individual income tax 15242513.30 13973593.51
Value-added tax 6127728.27 2649513.81
City maintenance and construction tax 238262.37 294045.12
Property tax 231627.07 265497.57
Education surcharge 170299.17 210001.65
Land use tax 54812.80 120185.89
Stamp duties 90981.14 118826.19
Others 1579.75 106.62
46227078.2469194598.03
32. Other payables
20252024
Other payables 113131531.51 117617259.50
113131531.51117617259.50
Other payables classified by nature
20252024
Accrued expenses 67281749.54 46653027.39
Equipment engineering 45315052.5014762746.26
Sales Rebate 7164208.60 5892690.94
Employee Expenses 3538481.22 3104774.75
Receivables and Payables 3132927.29 1522712.19
Equity acquisition 3000000.00 8000000.00
Others 14251418.60 7129001.73
Total 113131531.51 117617259.50
As at 31 December 2025 substantial other payables with aging over 1 year were nil.
230Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
33. Current portion of non-current liabilities
20252024
Current portion of long-term borrowings 36765023.03 61229428.22
Of which: Credit loan 22817219.66 37133116.15
Guaranteed loan 13612071.35 16787017.80
Mortgage loan 335732.02 7309294.27
Current portion of lease liabilities 19835134.48 20401356.43
Current portion of provisions 36412325.53 -
Total 93012483.04 81630784.65
34. Other current liabilities
20252024
Endorsed notes receivable 36223750.65 31544970.78
Output tax to be written off 11073335.15 10287364.93
Total 47297085.80 41832335.71
35. Long-term borrowings
20252024
Credit loan 41772090.29 91626403.51
Mortgage loan 38819431.24 61866952.89
Guaranteed loan 67158799.10 33218557.13
147750320.63186711913.53
Of which: Current portion of long-term
borrowings (36765023.03) (61229428.22)
Total 110985297.60 125482485.31
As at 31 December 2025 the annual interest rates of the above borrowings ranged from
0.80%-5.38% (31 December 2024: 0.0%-5.38%).
As at 31 December 2025 and 31 December 2024 the Group has no loans overdue.
231Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
36. Lease liabilities
20252024
Lease payments 73202376.35 68068158.39
Less: Current portion of non-current liabilities 19835134.48 20401356.43
Total 53367241.87 47666801.96
37. Long-term employee benefits payable
(1) Long-term employee benefits payable
20252024
Net liabilities of defined benefit schemes 13689047.85 13128052.34
Total 13689047.85 13128052.34
(2) Movements in defined benefit obligations
Movements in the present value of defined benefit obligations are as follows:
20252024
Opening balance 13128052.34 13964394.20
Included in profit or loss
Current service cost 653197.25 847235.35
Net interest 423246.28 417031.86
Included in other comprehensive income
Actuarial gains or losses (33990.62) (126738.95)
Other changes
Benefits paid (1708034.36) (1387765.63)
Effect of exchange rate movements 1226576.96 (586104.49)
Closing balance 13689047.85 13128052.34
232Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
37. Long-term employee benefits payable (cont’d)
(2) Movements in defined benefit obligations (cont’d)
Defined benefit schemes refer to retirement compensation (Trattamento di Fine Rapporto for
short “TFR”) of the Group according to Italian regulations. The latest actuarial valuation of
the scheme assets and the present value of the obligation associated with the defined benefit
scheme were determined as at 31 December 2025 by Italian actuarial institution Managers &
Partners – Actuarial Services S.p.A. using the expected accumulated benefit unit method.
(3) Key actuarial assumptions and results of sensitivity analysis of key assumptions
used for defined benefit schemes
Key actuarial assumptions used as at the balance sheet date are as follows:
20252024
Separation rate 3.00% 2.50%
Inflation rate 2.00% 2.00%
Discount rate 3.09% 3.18%
The quantitative sensitivity analysis of key assumptions used is as follows:
2025
Increase/(decrease) Increase/(decrease)
in obligations of in obligations of
Increase defined benefit Decrease defined benefit
% scheme % scheme
Separation rate 1.00 20279.51 1.00 (22113.47)
Inflation rate 0.25 81727.95 0.25 (80434.40)
Discount rate 0.25 (126809.98) 0.25 130735.27
2024
Increase/(decrease) Increase/(decrease)
in obligations of in obligations of
Increase defined benefit Decrease defined benefit
% scheme % scheme
Separation rate 1.00 23512.47 1.00 (25760.55)
Inflation rate 0.25 79317.72 0.25 (77996.96)
Discount rate 0.25 (122870.52) 0.25 126839.58
The above sensitivity analysis is based on an inference of the impact of key assumptions on
the defined benefit scheme obligation at a reasonable change on the balance sheet date.Sensitivity analysis is made according to the changes in major assumptions on the premise
that other assumptions remain unchanged. Since the changes in assumptions are often not
isolated from one another sensitivity analysis may not represent an actual change in the
defined benefit obligation.
233Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
38. Provisions
Opening Increase in Decrease in Classified Closing
balance the year the year as currentliabilities balance
Product quality
warranty 138790149.48 69415210.36 67278664.53 36412325.53 104514369.78
Others 8030479.78 1822218.03 467885.44 - 9384812.37
146820629.2671237428.3967746549.9736412325.53113899182.15
39. Deferred income
Opening balance Increase in Decrease inthe year the year Closing balance
Government grants 14790331.66 - (1716660.00) 13073671.66
Total 14790331.66 - (1716660.00) 13073671.66
40. Other non-current liabilities
20252024
Other Partner Interests 4085927.06 5679384.76
Other 403277.20 1894154.44
Total 4489204.26 7573539.20
234Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
41. Share capital
Opening balance Year-end change and fluctuation Closing balance
Others Total
Total
share
capital 1219046340.00 (1760000.00) (1760000.00) 1217286340.00
Total 1219046340.00 (1760000.00) (1760000.00) 1217286340.00
For the current year the total number of shares cancelled by the Company was 1760000
shares and the total number of shares of the Company changed from 1219046340 shares to
1217286340 shares after the cancellation.
42. Capital surplus
Increase in Decrease in
Opening balance the year the year Closing balance
(Note 1) (Note 2)
Share
premium 2673029158.52 123138347.12 - 2796167505.64
Others 145952938.00 28843111.53 404000.00 174392049.53
Total 2818982096.52 151981458.65 404000.00 2970559555.17
Note 1: The increase of 2025 in capital reserve is as follows:
（1）Share-based payment was included in shareholders' equity and the capital reserve was
increased by RMB28843111.53.
（2）The minority shareholder of the subsidiary Suzhou Baisheng waived the right to sell
back shares resulting in an increase of RMB 123138347.12 in capital reserve.Note 2: The decrease of 2025 in capital reserve is as follows:
Some of stocks did not meet the vesting conditions resulting in a reduction of capital reserve
by RMB 404000.00.
235Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
43. Treasury shares
Increase in Decrease in
Opening the year the year
balance (Note) (Note) Closing balance
Share
repurchase 117233041.40 - 2000000.00 115233041.40
Total 117233041.40 - 2000000.00 115233041.40
Note: Changes of 2025 in the year are as follows:
(1) The company canceled a total of 1760000 shares reducing the treasury stock amount by
RMB 1760000.00.
(2) 240000 restricted shares were vested reducing the treasury stock amount by RMB
240000.00.
44. Other comprehensive income
Cumulative balance of other comprehensive income attributable to shareholders of the
Company in the consolidated balance sheet:
2025
1 January 2025 Change 31 December 2025
Changes due to remeasurement
of defined benefit schemes 1291719.46 33990.62 1325710.08
Differences arising from the
translation of foreign
currency-denominated
financial statements 28561570.35 75985661.46 104547231.81
Others (43972.07) - (43972.07)
Total 29809317.74 76019652.08 105828969.82
2024
1 January 2024 Change 31 December 2024
Changes due to remeasurement
of defined benefit schemes 1164980.51 126738.95 1291719.46
Differences arising from the
translation of foreign currency
-denominated financial
statements 74001070.08 (45439499.73) 28561570.35
Others (43972.07) - (43972.07)
Total 75122078.52 (45312760.78) 29809317.74
236Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
44. Other comprehensive income (cont’d)
Other comprehensive income:
2025
Before tax Less: Attributable to Attributable to
Income tax owners of the parent non-controlling
interests
Other comprehensive income
that will not be reclassified
to profit or loss
Changes caused by
remeasurements on
defined benefit schemes 33990.62 - 33990.62 -
Other comprehensive income
that will be reclassified to
profit or loss
Differences arising from the
translation of foreign
currency-denominated
financial statements 76142362.51 - 75985661.46 156701.05
Total 76176353.13 - 76019652.08 156701.05
2024
Before tax Less: Attributable to Attributable to
Income tax owners of the parent non-controlling
interests
Other comprehensive income
that will not be reclassified
to profit or loss
Changes caused by
remeasurements on
defined benefit schemes 126738.95 - 126738.95 -
Other comprehensive income
that will be reclassified to
profit or loss
Differences arising from the
translation of foreign
currency-denominated
financial statements (45283314.18) - (45439499.73) 156185.55
Total (45156575.23) - (45312760.78) 156185.55
237Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
45. Special reserve
Opening balance Provision in Ultilisation inthe year the year Closing balance
Expenses for
Safety
Production 18106386.75 3654901.58 2065666.53 19695621.80
Total 18106386.75 3654901.58 2065666.53 19695621.80
46. Surplus reserves
Increase in Decrease in
Opening balance the year the year Closing balance
Statutory
surplus
reserves 51830974.45 25822967.35 - 77653941.80
51830974.4525822967.35-77653941.80
According to the Company Law when distributing the net profit of the current year
companies shall extract 10% of the net profit after offsetting losses from previous years as
the statutory surplus reserve. This company has extracted 10% of the net profit for the current
year in accordance with the provisions of the Company Law as the statutory surplus reserve.
47. Retained earnings
20252024
Opening retained earnings 956837409.23 456258959.55
Net profit attributable to owners of the parent 725259219.97 500578449.68
Less: Appropriation for statutory surplus
reserve 25822967.35 -
Less: Cash dividends payable to ordinary
shareholders 158247168.04 -
Closing retained earnings 1498026493.81 956837409.23
238Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
48. Operating revenue and costs
(1) Operating revenue and costs
20252024
Revenue Costs Revenue Costs
Principal operations 5179571114.72 3757389801.97 4730539700.76 3310269030.03
Other operations 48965440.03 40550695.45 47315901.93 30226796.91
Total 5228536554.75 3797940497.42 4777855602.69 3340495826.94
Operating revenue is as follows:
20252024
Revenue generating from contracts
with customers 5227200671.79 4776580603.72
Rental income 1335882.96 1274998.97
Total 5228536554.75 4777855602.69
(2) Breakdown of operating revenue
Breakdown of operating revenue arising from contracts with customers is as follows:
2025
Reporting segments Total
Principal product type
Goods 4914395848.97
Services 312804822.82
Total 5227200671.79
Principal operating segment
Mainland China 1074162688.81
Other regions 4153037982.98
Total 5227200671.79
Timing of revenue recognition
Transfer at a specific point in time 4914395848.97
Transfer over a specific period of time 312804822.82
Total 5227200671.79
239Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
48. Operating revenue and costs (cont’d)
(2) Breakdown of operating revenue (cont’d)
2024
Reporting segments Total
Principal product type
Goods 4486396868.05
Services 290183735.67
Total 4776580603.72
Principal operating segment
Mainland China 551722648.45
Other regions 4224857955.27
Total 4776580603.72
Timing of revenue recognition
Transfer at a specific point in time 4486396868.05
Transfer over a specific period of time 290183735.67
Total 4776580603.72
240Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
48. Operating revenue and costs (cont’d)
(3) Breakdown of operating cost
Reporting segments Total
Principal product type
Goods 3586299808.12
Services 211640689.30
Total 3797940497.42
Principal operating segment
Mainland China 924839763.19
Other regions 2873100734.23
Total 3797940497.42
By revenue recognition time
Transfer at a specific point in time 3586299808.12
Transfer over a specific period of time 211640689.30
Total 3797940497.42
(4) Performance obligations
The amount of revenue recognized from:
20252024
Contract liabilities at the beginning of the year 349554220.33 574535516.65
241Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
48. Operating revenue and costs (cont’d)
(4) Performance obligations (cont’d)
Information about the Group's performance obligations is as follows:
Timing of Significant Nature of goods Whether the Expected Types of
satisfaction of payment promised to principal refunds to warranties
performance terms transfer customers and related
obligations obligations
20-90%
payment Sales of machinery
Sales of Upon before and parts Statutory
goods delivery delivery Yes Nil warranties
Installation and
Provision During maintenance
of services service After service service Yes Nil Nil
Payment
based on
Provision During service Warranties for
of services service progress services Yes Nil Nil
(5) Allocation of total transaction price to outstanding performance obligations
The expected time for recognizing in revenue the total transaction price allocated to
outstanding contractual performance obligations as at the period-end is as follows:
20252024
Within 1 year 458557878.31 373931068.16
Total 458557878.31 373931068.16
49. Taxes and surcharges
20252024
Urban Maintenance and Construction Tax 7128882.15 5053277.11
Property Tax 5973235.16 5081416.95
Education surcharge 3064688.47 2202488.38
Local education surcharge 2043125.64 1468325.59
Stamp tax 1431771.28 1037733.78
Land use tax 723998.38 736737.76
Environmental protection tax 357363.20 2510.77
Vehicle and vessel tax 17249.27 13745.00
Others 139111.37 161407.87
Total 20879424.92 15757643.21
242Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
50. Selling expenses
20252024
(Restated)
Employee Compensation and Share-Based
Payment Expenses 76733716.77 71189012.20
Commissions and agency fees 53437693.46 66789221.95
Advertising and exhibition expenses 19051391.28 23422239.24
Travel expenses 13664660.47 14159930.73
Depreciation and amortization expenses 2279981.90 2161555.15
Freight charges and import/export
miscellaneous fees 459215.01 358459.73
Office expenses and other expenses 14230583.59 14323730.61
Total 179857242.48 192404149.61
51. Administrative expenses
20252024
Employee Compensation and Share-Based
Payment Expenses 212891113.90 183806306.45
Intermediary expenses 57136964.95 48237978.97
Depreciation and amortization expenses 26421091.92 27853560.60
Office expenses 15944145.22 18623645.94
Travel and reception expenses 15241916.53 15000563.55
Meeting expenses 13096127.21 15382145.16
Rental expenses 6870909.54 7521836.59
Property management expenses 6362189.10 3978693.08
Maintenance expenses 1193424.27 1491085.39
Car expenses 1037175.39 1502612.89
Materials consumption 746050.38 774799.54
Other expenses 33469076.77 35869160.16
Total 390410185.18 360042388.32
243Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
52. R&D expenses
20252024
Employee benefits and share-based payments
expenses 65643761.85 73833286.02
Material expenses 12316587.93 5257081.18
Depreciation and amortization expenses 10376384.14 17393986.62
Assembly testing and debugging expenses 1291604.46 308145.49
Utilities 1133221.36 739383.48
Other expenses 7621013.12 7992605.91
Total 98382572.86 105524488.70
53. Finance costs
20252024
Interest expenses 12261047.10 23820328.49
Less: Interest income 55024311.03 45289702.90
Exchange losses 23106858.21 (7822030.84)
Others 6430800.25 4798584.37
Total (13225605.47) (24492820.88)
54. Other income
20252024
Government grants related to routine activities 21969815.96 14143528.16
Refund of handling charges for individual income
tax withheld 264411.83 432933.77
Total 22234227.79 14576461.93
244Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
55. Investment income
20252024
Gain on disposal of financial assets held for
trading 152895840.86 (327887.32)
Interest income from certificates of deposit
during the holding period 248630.14 330904.11
Investment income from financial assets held
for trading during the holding period 261268.35 5006767.12
Investment income from long-term equity
investments accounted for using the equity
method (6154351.32) (3722072.85)
Discounting interest on bills (105249.24) (2887.50)
Total 147146138.79 1284823.56
56. Gains and losses on changes in fair value
20252024
Changes in fair value of non-controlling
interests call/put options 16125742.60 (2247359.65)
Financial assets held for trading 88198458.57 (30613618.63)
Derivative financial assets (2863935.33) (20255707.48)
Derivative financial liabilities 104606.55 (1157068.01)
Total 101564872.39 (54273753.77)
57. Credit impairment loss
20252024
Loss on doubtful accounts receivable 11134855.68 1961917.78
Allowances losses for other receivables (36044.92) 445478.41
Impairment loss on contract assets 93084.00 (10156.80)
Total 11191894.76 2397239.39
245Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
58. Asset impairment loss
20252024
Inventory valuation loss 46479115.32 8217037.61
Goodwill impairment loss 21024681.96 12234095.85
impairment loss on contract assets 10660.86 3852915.41
Total 67514458.14 24304048.87
59. Gains and losses on disposal of assets
20252024
Gain/(loss) on disposal of fixed assets (1108957.60) 5496048.68
Total (1108957.60) 5496048.68
60. Non-operating income
Recognized in
exceptional gains
2025 2024 and losses of 2024
Penalty income 4684373.18 63263.69 4684373.18
Litigation compensation 1167187.08 950000.00 1167187.08
Others 7171999.81 5216742.83 7171999.81
Total 13023560.07 6230006.52 13023560.07
61. Non-operating expenses
Recognized in
exceptional gains
2025 2024 and losses of 2025
Donations 297537.61 372152.23 297537.61
Penalty expense 590617.30 100987.20 590617.30
Loss on disposal of
non-current assets 531556.16 2205.15 531556.16
Others 430967.74 318470.64 430967.74
Total 1850678.81 793815.22 1850678.81
246Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
62. Income tax expenses
20252024
Current income tax expenses 137381855.85 168833714.71
Deferred tax expenses 49575018.92 24990429.22
Total 186956874.77 193824143.93
Reconciliation between income tax expenses and gross profit is as follows:
20252024
Gross profit 956595047.09 733942410.23
Income tax calculated at applicable tax rates
(Note 1) 143489257.06 110091361.53
Different tax rates for specific provinces or
enacted by local authority 65763938.99 65102485.56
Adjustment to current income tax in previous
periods 547748.82 871757.84
Tax credit (35595976.66) -
Over-deduction for R&D (5739987.51) (7853681.39)
Expenses not deductible for tax 16165550.06 10434065.31
Effect of utilizing or recognizing previously
unrecognized deductible temporary
differences or deductible losses for deferred
tax assets (6232023.66) -
Effect of deductible temporary differences or
deductible losses not recognized as deferred
tax assets of current year 8558367.67 15178155.08
Income tax expenses 186956874.77 193824143.93
Note 1: The provision for income tax of the Group was recognized based on the estimated
taxable income to be derived from mainland China and applicable tax rate.Taxable income derived from other jurisdictions shall be taxed based on
applicable tax rate in accordance with the current laws interpretations and
conventions in the country/jurisdiction where the Group operates.V. Notes to the Consolidated Financial Statements (cont’d)
247Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
63. Earnings per share
20252024
RMB/share RMB/share
Basic earnings per share
Continuing operations 0.61 0.43
Diluted earnings per share
Continuing operations 0.60 0.43
Basic earnings per share is computed by dividing the net profit attributable to ordinary
shareholders of the Company for the period by the weighted average number of ordinary
shares in issue.In the calculation of diluted earnings per share the numerator shall be determined based on
the net profit attributable to ordinary shareholders of the Company for the period after
adjusting the following factors: the interest of diluted potential ordinary shares that have been
recognized as expenses in the period; gains or expenses that will be incurred when the diluted
potential ordinary shares are converted; and the income tax impact related to the above
adjustments.In the calculation of diluted earnings per share the denominator shall be the sum of: weighted
average number of ordinary shares of the Company in issue adopted in the calculation of
basic earnings per share; and weighted average number of ordinary shares created assuming
conversion of potentially dilutive ordinary shares into ordinary shares.In calculating the weighted average number of ordinary shares created upon conversion of
potentially dilutive ordinary shares into ordinary shares potentially dilutive ordinary shares
issued in previous periods are assumed to have been converted at the beginning of the current
period whereas potentially dilutive ordinary shares issued in the current period are assumed
to have been converted on the date of issue.Calculations of basic and diluted earnings per share are as follows:
20252024
Earnings
Net profit attributable to ordinary shareholders of
the Company for the year
Continuing operations 725259219.97 500578449.68
Shares
Weighted average number of ordinary shares in
issue of the Company 1192362574.67 1175417191.33
Diluting effect——weighted average number of
ordinary shares 14385259.35 898243.37
Adjusted weighted average number of ordinary
shares in issue of the Company 1206747834.02 1176315434.70
V. Notes to the Consolidated Financial Statements (cont’d)
248Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
64. Notes to cash flow statement line items
(1) Cash related to operating activities
20252024
Cash generated from other operating activities
Government grants 15139886.66 12870707.26
Interest income 55085916.59 34472003.89
Current accounts and others 12078223.97 9822499.27
Guarantee deposit received - 2494430.48
Deposits 1410344.19 380227.29
Total 83714371.41 60039868.19
Cash used in other operating activities
Selling expenses in cash 131100942.09 107900992.58
Administrative expenses in cash 157548100.43 124881822.94
R&D expenses in cash 10716647.01 9040134.88
Security deposits 196126.60 -
Letter of guarantee paid - 1524841.60
Current accounts and others 18798131.67 14708484.36
Total 318359947.80 258056276.36
249Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
64. Notes to cash flow statement line items (Cont’d)
(2) Cash related to investing activities
20252024
Cash received relating to significant investing
activities
Disposal/redemption of financial assets held
for trading 2477767744.49 1547245820.06
Total 2477767744.49 1547245820.06
Cash payments relating to significant investing
activities
Purchase of financial assets held for trading 2442721521.77 1655620603.60
Purchase of equity investments 321361660.08 101688362.11
Acquisition of associate company 136911701.08 -
Total 2900994882.93 1757308965.71
20252024
Cash generated from other investing activities
Investment deposit 132763317.26 42435000.00
Total 132763317.26 42435000.00
Cash used in other investing activities
Investment deposit 124477032.15 49631872.01
Total 124477032.15 49631872.01
250Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
64. Notes to cash flow statement line items (cont’d)
(3) Cash related to financing activities
20252024
Cash generated from other financing activities
Receipt of deposits related to financial
instruments - 107345506.70
Total - 107345506.70
Cash used in other financing activities
Share repurchase 480000.00 6214252.00
Banker's Acceptance Bill Deposit 10175000.00 -
Cash payments related to leasing 24934501.18 24635982.77
Total 35589501.18 30850234.77
Changes in liabilities arising from financing activities:
Opening Changes in the current year Closing
Non-cash
balance Changes in cash changes balance
Short-term
borrowing 85390128.99 128071613.20 (27945732.36) 185516009.83
Long-term
borrowings
(Including current
portion of long-
term borrowings) 186711913.53 (44857398.24) 5895805.34 147750320.63
Lease liabilities
(Including current
portion of non-
current liabilities) 68068158.39 (24934501.18) 30068719.14 73202376.35
Total 340170200.91 58279713.78 8018792.12 406468706.81
251Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
64. Notes to cash flow statement line items (cont’d)
(4) Major non-cash transactions
20252024
Non-cash additions to right-of-use assets and
lease liabilities 24837245.50 8033853.08
65. Supplemental information on statement of cash flows
(1) Supplemental information on statement of cash flows
Reconciliation of net profit to net cash generated from/used in operating activities:
20252024
Net profit 769638172.32 540118266.30
Add: Asset impairment allowances 67514458.14 24304048.87
Credit impairment loss 11191894.76 2397239.39
Depreciation of fixed assets 64489257.06 50563780.06
Depreciation of right-of-use assets 21803146.43 21888314.22
Amortization of intangible assets 23917871.59 22662419.14
Amortization of long-term prepaid
expenses 6651181.47 13172647.86
Gain on disposal of fixed assets intangible
assets and other long-lived assets 1108957.60 (5496048.68)
Loss on retirement of fixed assets 531556.16 2205.15
Loss and gain on changes in fair value (101564872.39) 54273753.77
Finance costs (3102484.48) 25875971.23
Investment income (147146138.79) (1284823.56)
Decrease in deferred tax assets 18607124.33 21023342.37
Increase in deferred tax liabilities 23852466.77 5850953.38
(Increase)/ decrease in inventories (100689295.98) 135095029.28
(Increase)/ decrease in operating
receivables (221168127.11) 30910568.58
Increase/ (decrease) in operating payables 407888328.26 (248524797.35)
Others 30690854.46 9722510.21
Net cash generated from/used in operating
activities 874214350.60 702555380.22
252Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
65. Supplemental information on statement of cash flows (cont’d)
(1) Supplemental information on statement of cash flows (cont’d)
Net change in cash and cash equivalents:
20252024
Closing balance of cash 1994298878.15 1652290548.55
Less: Opening balance of cash 1652290548.55 1672514611.84
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase/(decrease) in cash and cash equivalents 342008329.60 (20224063.29)
(2) Cash and cash equivalents
20252024
Cash 1994298878.15 1652290548.55
Including: Cash on hand 388992.02 497855.11
Bank deposits readily available 1929620404.45 1505877879.48
Other cash and bank balances readily
available 64289481.68 145914813.96
Cash equivalents - -
Closing balance of cash and cash equivalents 1994298878.15 1652290548.55
253Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
66. Monetary items in foreign currencies
(1) Monetary items in foreign currencies
Original Exchange
currency rate RMB equivalent
Cash and bank balances
Including: USD 178932523.52 7.0288 1257680921.33
EUR 43270851.85 8.2355 356357100.37
HKD 2849687.34 0.9032 2573837.61
GBP 16044.24 9.4346 151370.96
AUD 491.76 4.6892 2305.94
MXN 4771017.36 0.3899 1860219.67
SGD 19144.87 5.4586 104504.20
Accounts receivable
Including: USD 10373038.36 7.0288 72910012.02
EUR 91409240.10 8.2355 752800796.81
AUD 24835.00 4.6892 116456.28
Contract assets
Including: USD 1617462.20 7.0288 11368818.32
EUR 545694.08 8.2355 4494063.60
Other receivables
Including: EUR 1683168.68 8.2355 13861735.66
Accounts payable
Including: EUR 63892105.81 8.2355 526183437.41
Current portion of non-current
liabilities
Including: EUR 7652612.04 8.2355 63023086.46
Short-term borrowings
Including: EUR 1530914.23 8.2355 12607844.14
Long-term borrowings
Including: EUR 1319931.71 8.2355 10870297.60
Lease liabilities
Including: EUR 6328683.34 8.2355 52119871.63
Other payables
Including: USD 288183.94 7.0288 2025587.28
EUR 2883790.72 8.2355 23749458.47
Other Notes: The aforementioned foreign currency monetary items refer to all
monetary items denominated in currencies other than the Chinese Renminbi (the
scope of which differs from that in Note 9.1.(3)).
254Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
V. Notes to the Consolidated Financial Statements (cont’d)
66. Monetary items in foreign currencies (cont’d)
(2) Overseas business entities
The principal places of business overseas the functional currencies and their determination
basis of the major overseas business entities included in the consolidated financial statements
are as follows:
Major overseas Principal place Functional Determination basis
business entities of business currency
Fosber Group Italy EUR Settlement currency for local
business activities
Fosber America America USD Settlement currency for local
business activities
EDF Italy EUR Settlement currency for local
business activities
Tiru?a Group Spain EUR Settlement currency for local
business activities
67. Leases
(1) As lessee
20252024
Short term lease expense through profit or loss
adopting simplified approach 8357581.51 8807492.27
Interest expense on lease liabilities 758488.39 1352356.96
Total cash outflows related to lease 33292082.69 33306127.23
Assets leased by the Group include houses and buildings and transportation equipment used
in the course of business the lease term of houses buildings and machinery is usually 8 years
and the lease term of transportation equipment is usually 3 years. The lease contract does not
contain terms such as renewal option termination option and variable rent. No effect of
variable rent terms on potential future cash outflows.For the right-of-use assets see Note V.18; for the simplified approach on short-term leases
and leases of assets of low value see Note III.26; for lease liabilities see Note V.33&36.
255Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
VI. R&D expenditure
1. R&D expenditure by nature
20252024
Employee benefits and share-based payments
expenses 65643761.85 73833286.02
Material expenses 12316587.93 5257081.18
Depreciation and amortization expenses 10376384.14 17393986.62
Assembly testing and debugging expenses 1291604.46 308145.49
Utilities 1133221.36 739383.48
Other expenses 7621013.12 7992605.91
Total 98382572.86 105524488.70
Of which: Capitalized R&D expenses 98382572.86 105524488.70
256Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
VII. Interests in Other Entities
1. Interests in subsidiaries
(1) Parent and subsidiaries
Principal place Place of Business Registered The Company’s
of business registration nature capita Interest (%)
Direct Indirect
Subsidiaries acquired by way of incorporation or investment
Dongfang Precision (Hk) HK HK Trading USD300000 100.00 -
Dongfang Precision (Netherland) Netherland Netherland Trading EUR40000 90.00 10.00
Fosber Asia Foshan Foshan
Guangdong China Guangdong China Manufacturing RMB29581.2 100.00 -
QCorr Italy Italy Manufacturing EUR375000 - 60.00
Suzhou High-Tech Zone Jinquan Business Management Partnership Suzhou Suzhou
(Limited Partnership) *(Note 1) (“High-Tech Zone Jinquan”) Jiangsu China Jiangsu China Investment RMB10553000 - 30.17Suzhou Parsun Power Technology Co. Ltd. (“Parsun Power Suzhou SuzhouTechnology”) Jiangsu China Jiangsu China Manufacturing RMB10 million - 71.14Suzhou Baisheng International Trade Co. Ltd. (“Baisheng Suzhou SuzhouInternational”) Jiangsu China Jiangsu China Trading RMB3 million - 71.14
Suzhou Chaoju International Trading Co. Ltd. (“Suzhou Chaoju”) Suzhou Suzhou
*(Note 2) Jiangsu China Jiangsu China Trading RMB500000 - 71.14
Suzhou Xuanliu International Trading Co. Ltd. (“Suzhou Xuanliu”) Suzhou Suzhou
*(Note 2) Jiangsu China Jiangsu China Trading RMB500000 - 71.14
Suzhou Yuanqi International Trading Co. Ltd. (“Suzhou Yuanqi”) Suzhou Suzhou
*(Note 2) Jiangsu China Jiangsu China Trading RMB500000 - 71.14
Suzhou Cangshu International Trading Co. Ltd. (“Suzhou Cangshu”) Suzhou Suzhou
*(Note 2) Jiangsu China Jiangsu China Trading RMB500000 - 71.14
Suzhou Xunce International Trading Co. Ltd. (“Suzhou Xunce”) *(Note Suzhou Suzhou
2) Jiangsu China Jiangsu China Trading RMB500000 - 71.14
Suzhou Suzhou
Beijing Lan Feng Yin Trading Co. Ltd. (“Beijing Lanfeng”) *(Note 2) Beijing China Beijing China Trading RMB 50000 - 71.14
257Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
VII. Interests in Other Entities (cont’d)
1. Interests in subsidiaries (cont’d)
(1) Parent and subsidiaries (cont’d)
Principal place Place of Business Registered The Company’s
of business registration nature capita Interest (%)
Subsidiaries Acquired In Business Combinations Not Under
Common Control
Haikou Hainan Haikou Hainan China Industrial
Dongfang Digicom Technology Co. Ltd.. (“Dongfang Digicom”) China Internet RMB100 million 100.00 -Dongfang Digicom Technology (Guangdong) Co. Ltd. (“Dongfang Foshan Foshan IndustrialDigicom (Guangdong)”) Guangdong China Guangdong China Internet RMB8 million 100.00 -
Haikou Hainan Haikou Hainan China
Hainan Yineng Investment Co. Ltd. (“Yineng Investment”) China Investment RMB100 million 100.00 -Dongfang Yineng International Holdings Co. Ltd. (“Yineng Foshan FoshanInternational”) Guangdong China Guangdong China Investment RMB50 million 100.00 -
Tianjin Hangchuang Zhijin Investment Partnership (Limited Partnership) Tianjin China Tianjin China
(“Tianjin Hangchuang”) *(Note 3) Investment RMB21 million 95.24 -
Changzhou Xinchen Investment Partnership (Limited Partnership) Changzhou Changzhou
(“Changzhou Xinchen”) Jiangsu China Jiangsu China Investment RMB50.6 million - 94.86
Changzhou Xinchen Investment Partnership (Limited Partnership) Changzhou Changzhou
Registration No.2 (“Changzhou Xinchen No.2”) Jiangsu China Jiangsu China Investment RMB24.1 million - 94.86
Dongfang Precision Lanke (Hk) Limited HK China HK China Investment HKD10000 - 100.00
Fosber Mexico Mexico Mexico Manufacturing MXN100000 - 100.00
DongFang Primo Robotic (Guangdong) Co. Ltd(“DF Primo Robotic”) Foshan Foshan
*(Note 2) Guangdong China Guangdong China Manufacturing RMB100 million 80.00Grandvoyage Holdings (Singapore) Pte. Ltd.(“Grandvoyage(Singapore)”) *(Note 2) Singapore Singapore Trading USD 3000 100.00Starlight Precision Technology (Singapore) Pte. Ltd.(“StarlightPrecision(Singapore)”) *(Note 2) Singapore Singapore Manufacturing USD 3000 100.00
*Note 1: According to the partnership agreement the general partner of the partnership shall execute partnership affairs and other partners shall not execute
partnership affairs. As the sole general partner the Company forms control over the partnership which is included in the scope of consolidation of the Group.*Note 2: The aforementioned subsidiary was established in 2025 and has been included in the consolidation scope since the date of establishment.*Note 3:The aforementioned subsidiary completed the liquidation and deregistration procedures in the 2025 fiscal year and has been excluded from the consolidation
scope as of the commencement of liquidation.
258Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
VII. Interests in Other Entities (cont’d)
1. Interests in subsidiaries (cont’d)
(1) Parent and subsidiaries (cont’d)
Principal place Place of Business Registered The Company’s
of business registration nature capita Interest (%)
Subsidiaries acquired in business combinations not under common
control
Fosber S.P.A. Italy Italy Manufacturing EUR1.56 million - 100.00
Fosber America America America Manufacturing USD1.10 million - 100.00
Forsberg (Machinery) Tianjin Co. Ltd. (“Fosber Tianjin”) Tianjin China Tianjin China Manufacturing USD500000 - 100.00
Suzhou Jiangsu Suzhou Jiangsu
Parsun Power China China Manufacturing RMB85.3 million 7.83 63.31
Suzhou Jiangsu Suzhou Jiangsu
Suzhou Shunyi Investment Co. Ltd. .(“Shunyi Investment”) China China Investment RMB10 million 100.00 -
EDF Italy Italy Manufacturing EUR100000 - 100.00
Tiru?a S.L.U. Spain Spain Manufacturing EUR1.44 million - 100.00
Tiru?a France Sarl France France Manufacturing EUR100000 - 100.00
Sci Candan France France Manufacturing EUR10000 - 100.00
Tiru?a America America America Manufacturing USD3 million - 100.00
Tiru?a (Guangdong) Intelligent Equipment Manufacturing Co. Ltd. Foshan Guangdong Foshan Guangdong
(“Tiru?a Asia”) China China Manufacturing RMB50 million 100.00 -
Shenzhou Shenzhou
Wonder Digital Guangdong China Guangdong China Manufacturing RMB31172000 51.00 -
Dongguan Dongguan
Dongguan Wonder Digital Machinery Co. Ltd. Guangdong China Guangdong China Manufacturing RMB5 million - 51.00
259Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d
2025 Expressed in Renminbi Yuan
VII. Interests in Other Entities (cont’d)
2. Interests in associates
(1) Associates insignificant to the Group
Principal place Place of Business The Company’s
of business registration nature interest (%)
Accounting
Direct Indirect method
Associates
Guangdong Jaten Robot & Equity
Automation Co. Ltd. Foshan Foshan Manufacturing 19.84 - method
Equity
Talleres Tapre. Spain Spain Manufacturing - 20.00 method
Nanjing Nanjing Equity
Nanjing Profeta Manufacturing 15.00 5.67 method
Equity
Shenzhen Ruoyu Shenzhen Shenzhen Manufacturing 23.31 - method
Equity
Aerospace Xinli Zunyi Zunyi Manufacturing 19.89 - method
Equity
Shenzhen Heju Shenzhen Shenzhen Manufacturing 15.00 - method
(2) Aggregate financial information of associates insignificant to the Group
20252024
Associates
Total carrying amount of investments 302857592.30 113469148.58
Total amounts based on the Company’s
interests:
Net loss (6154351.32) (3722072.85)
Total comprehensive loss (6154351.32) (3722072.85)
As there is no obligation to bear additional losses the net losses incurred by the investee are
recognized to the extent that the book value of the long-term equity investment and other long-
term interests that substantially constitute the net investment in the investee are reduced to zero.
260Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuannbi Yuan
VIII. Government grants
1. Government grants recognized at amounts receivable
The closing balance of government grants included in other receivables was RMB6000000.00.
2. Liabilities related to government grants
Liabilities related to government grants as at 31 December 2025 are as follows:
Recognized in
Opening other income Closing Related to
balance Increase during the year balance asset/income
Related to
Deferred income 14790331.66 - 1716660.00 13073671.66 assets
3. The government grants recognized in profit or loss
20252024
Government grants related to income
Recognized as other income 20253155.96 12976868.16
Government grants related to assets
Recognized as other income 1716660.00 1166660.00
21969815.9614143528.16
IX. Risks associated with financial instruments
1. Risks of financial instruments
The main risks arising from the Group's financial instruments are credit risk liquidity risk and
market risk. The Group’s policies are summarized below.
(1) Credit risk
The Group transacts only with recognized and reputable third parties. According to the Group's
policies credit checks are needed for all customers that require transactions should be conducted
by means of credit. Additionally the Group performs continuous monitoring of the balance of
accounts receivable to ensure that the Group will not face major bad debt risk. For transactions
not settled in the accounting standard currency of the relevant business unit unless specifically
approved by the credit control department of the Group the Group will not provide credit
transaction conditions.
261Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuannbi Yuan
IX. Risks related to financial instruments (cont’d)
1. Risks of financial instruments (cont’d)
(1) Credit risk (cont’d)
Since the counterparties of cash and bank balances and notes receivable are banks with a good
reputation and high credit rating the credit risk of such financial instruments is low.Other financial assets of the Group mainly include accounts receivable other receivables
contract assets and long-term accounts receivable the credit risk of which arises from
counterparty default and the maximum risk exposure is equal to the carrying value of these
instruments.The Group transacts only with recognized and reputable third parties so no collateral is
required. Credit risk concentration is managed by customer/counterparty geographic region and
industry. Because the customer base of accounts receivable of the Group is widely dispersed in
different departments and industries there is no major credit risk concentration within the
Group. The Group does not hold any collateral or other credit enhancement on the balance of
accounts receivable.Criteria for judging significant increases in credit risk
The Group assesses whether or not the credit risk of the relevant financial instruments has
increased significantly since the initial recognition at each balance sheet date. The Group's main
criteria for determining significant increase in credit risk are that the number of days past due
exceed 30 days or one or more of the following indicators have changed significantly:
significant adverse changes in the operating environment of the debtor internal and external
credit ratings and actual or expected operating results.Definition of credit-impaired financial assets
The Group's main criterion for determining that credit impairment has occurred is that the
number of days past due exceeds 90 days. However in some cases if internal or external
information indicates that the contract amount may not be recovered in full before considering
any credit enhancements held the Group will also consider that credit impairment has occurred.The credit impairment on a financial asset may be caused by the combined effect of multiple
events and may not be necessarily due to a single event.
(2) Liquidity risk
The Group aims to maintain sufficient cash and credit lines to meet its liquidity requirements.The Group finances its working capital requirements through a combination of funds generated
from operations and other borrowings.
262Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuannbi Yuan
1. Financial instrument risks (cont’d)
(2) Liquidity risk (cont’d)
The maturity profile of financial liabilities and lease liabilities based on undiscounted contractual cash flow is summarized as follows:
2025
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 186158786.29 - - 186158786.29
Notes payable 241390245.31 - - 241390245.31
Accounts payable 936107613.22 - - 936107613.22
Other payables 113131531.51 - - 113131531.51
Derivative financial liabilities 93783840.98 - - 93783840.98
Current portion of non-current
liabilities 96474825.92 - - 96474825.92
Long-term borrowings - 90968220.16 31282533.17 122250753.33
Lease liabilities - 53367241.87 - 53367241.87
Other current liabilities 36223750.65 - - 36223750.65
Other non-current liabilities - 4489204.26 - 4489204.26
1713270593.88148824666.2931282533.171883377793.34
263Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuannbi Yuan
IX. Risks Associated with Financial Instruments (cont’d)
1. Financial instrument risks (cont’d)
(2) Liquidity risk (cont’d)
2024
Within 1 year 1-5 years Over 5 years Total
Short-term borrowings 86393073.44 - - 86393073.44
Notes payable 144137609.00 - - 144137609.00
Accounts payable 687235330.65 - - 687235330.65
Other payables 117617259.50 - - 117617259.50
Financial liabilities held for 206216239.00
trading - - 206216239.00
Current portion of non-current 86155318.35
liabilities - - 86155318.35
Long-term borrowings - 123995771.10 16343486.62 140339257.72
Lease liabilities - 47666801.96 - 47666801.96
Other current liabilities 41832335.71 - - 41832335.71
Other non-current liabilities - 7573539.20 - 7573539.20
1369587165.65179236112.2616343486.621565166764.53
264Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
IX. Risks Associated with Financial Instruments (cont’d)
1. Financial instrument risks (cont’d)
(3) Market Risk
Interest rate risk
The Group’s exposure to risk of changes in market interest rates relates primarily to the
Group’s long-term liabilities with floating interest rates.The sensitivity analysis of interest rate risks is set out in the following table reflecting the
impact of reasonable and probable change in interest rates on net profit or loss (through the
impact on floating rate loans) and other comprehensive income (net of tax) assuming that
other variables remain constant
5
Increase/ Increase/ Increase/ Increase/
(decrease) in basis (decrease) in net (decrease) in other (decrease) in
points profit or loss comprehensive income total equity
net of tax
Loans 0.50 (611069.05) - (611069.05)
Loans (0.50) 611069.05 - 611069.05
4
Increase/ Increase/ Increase/ Increase/
(decrease) in basis (decrease) in net (decrease) in other (decrease) in
points profit or loss comprehensive income total equity
net of tax
Loans 0.50 (761230.54) - (761230.54)
Loans (0.50) 761230.54 - 761230.54
Exchange rate risk
The Group is exposed to trading exchange rate risks. Such exposures arise from sales or
purchases by business units in currencies other than the units’ functional currencies.The sensitivity analysis of exchange rate risks is set out in the following table reflecting the
impact of reasonable and probable change in the exchange rates of EUR and USD on net
profit or loss and other comprehensive income (net of tax) assuming that other variables
remain constant.
265Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
IX. Risks Associated with Financial Instruments (cont’d)
1. Financial instrument risks (cont’d)
(3) Market Risk (cont’d)
Exchange rate risk (cont’d)
5
Increase/ Increase/ Increase/ Increase/
(decrease) in (decrease) in (decrease) in (decrease) in
foreign currency net profit or loss other total equity
exchange rate comprehensive
(%) income net of
tax
RMB appreciation against
EUR 2.00 (26743697.11) - (26743697.11)
RMB depreciation against
EUR (2.00) 26743697.11 - 26743697.11
RMB appreciation against
USD 2.00 (22434396.08) - (22434396.08)
RMB depreciation against
USD (2.00) 22434396.08 - 22434396.08
4
Increase/ Increase/ Increase/ Increase/
(decrease) in (decrease) in (decrease) in (decrease) in
foreign currency net profit or loss other total equity
exchange rate comprehensive
(%) income net of
tax
RMB appreciation against
EUR 2.00 (23749786.71) - (23749786.71)
RMB depreciation against
EUR (2.00) 23749786.71 - 23749786.71
RMB appreciation against
USD 2.00 (16119960.12) - (16119960.12)
RMB depreciation against
USD (2.00) 16119960.12 - 16119960.12
266Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
IX. Risks Associated with Financial Instruments (cont’d)
2. Capital management
The primary objective of the Group’s capital management is to safeguard the Group’s ability
to continue as a going concern and to maintain healthy capital ratios in order to support its
business and maximize shareholders’ value.The Group manages its capital structure and makes adjustments in the light of changes in
economic conditions and in the risk profiles of relevant assets. To maintain or adjust the
capital structure the Group may adjust the dividend payment to shareholders return capital to
shareholders or issue new shares. The Group is not subject to any externally imposed capital
requirements. No changes were made in the objectives policies or processes for managing
capital during 2025 and 2024.
3. Transfer of financial assets
Transfer Nature of Amount of Derecognition Judgment basis for
method transferred transferred derecognition
financial assets financial assets
Retained the substantial
risks and rewards which
Notes include default risks
discounted/ Not relating to such
endorsed Notes receivable 46374270.65 derecognized endorsed/discounted notes
Notes Transferred substantially all
discounted/ Receivables risks and rewards relating to
endorsed financing 33687244.47 Derecognized the derecognized notes
80061515.12
Financial assets derecognized as a result of the transfer are as follows:
Amount of Gains or losses
derecognized related to
Transfer method financial assets derecognition
Financing of Notes discounted/
receivables endorsed 33687244.47 105249.24
267Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
IX. Risks Associated with Financial Instruments (cont’d)
3. Transfer of financial assets (cont’d)
Financial assets already transferred but not wholly derecognized
On 31 December 2025 the carrying value of the bank acceptance notes (BAs) discounted by
the Group was RMB10150520.00 (31 December 2024: RMB25560751.24). The Group
believed that the Group retained almost all their risks and rewards including the risk of
default associated therewith so the Group continued to confirm them and recognize in full its
and related bank borrowings. After the discounting the Group will no longer reserve the right
to use them including the right to sell transfer or pledge them to other third parties. On 31
December 2025 the carrying amount of bank borrowings recognized by the Group amounted
to RMB10150520.00 (31 December 2024: RMB25560751.24).On 31 December 2025 the carrying value of the BAs endorsed by the Group to suppliers for
the settlement of accounts payable was RMB36223750.65 (31 December 2024:
RMB31544970.78). The Group believed that the Group retained almost all their risks and
rewards including the risk of default associated therewith so the Group continued to confirm
them and the settled accounts payable associated therewith in full amount. After the
endorsement the Group will no longer reserve the right to use them including the right to
sell transfer or pledge them to other third parties. On 31 December 2025 the carrying value
of the accounts payable settled with them totaled RMB36223750.65 (31 December 2024:
RMB31544970.78).Transferred financial assets that have been wholly derecognized but continue to be involved
On 31 December 2025 the carrying value of the BAs endorsed by the Group to suppliers for
the settlement of accounts payable was RMB33687244.47 (31 December 2024:
RMB20397758.07). On 31 December 2025 their maturity varied from one to 12 months. As
stipulated in the Negotiable Instruments Law if the accepting bank refuses to pay their
holders have the right to recourse from the Group ("continue to be involved"). The Group
believed that the Group had transferred almost all their risks and rewards so the Group
derecognized the carrying value of them and the settled accounts payable associated
therewith. The maximum loss and undiscounted cash flows from continuing involvement and
repurchase were equal to their carrying value. The Group believed that it was insignificant to
continue to involve in fair value.In 2025 the Group recognized discounting expenses of RMB 105249.24 on the transfer date.The Group had no income or expenses recognized in the current year and cumulatively due to
continued involvement in derecognized financial assets. Endorsements occurred roughly
evenly during the year.
268Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values
1. Assets and liabilities measured at fair value
2025
Input applied in the measurement of fair value
Quoted prices Significant Significant
in active markets observable unobservable
inputs inputs
(Level 1) (Level 2) (Level 3) Total
Continuous
measurement of fair
value
Financial assets held
for trading 282762909.14 483791568.35 - 766554477.49
Derivative financial - 101000.75 - 101000.75
assets
Receivables
financing - 19403276.39 - 19403276.39
Non-current assets
due within one year - 10909534.25 - 10909534.25
Other non-current
financial assets 7851181.23 - 809496696.87 817347878.10
290614090.37514205379.74809496696.871614316166.98
Input applied in the measurement of fair value
Quoted prices Significant Significant
in active markets observable unobservable
inputs inputs Total
(Level 1) (Level 2) (Level 3)
Continuous
measurement of fair
value
Derivative financial - 44562.29 93739278.69 93783840.98
liabilities
Other non-current
liabilities - - 4489204.26 4489204.26
-44562.2998228482.9598273045.24
269Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
1. Assets and liabilities measured at fair value (cont’d)
2024
Input applied in the measurement of fair value
Quoted prices Significant Significant
in active markets observable unobservable
inputs inputs
(Level 1) (Level 2) (Level 3) Total
Continuous
measurement of fair
value
Financial assets held
for trading 187638899.00 601010433.18 - 788649332.18
Derivative financial
assets - 2755081.17 - 2755081.17
Receivables
financing - 16303982.64 - 16303982.64
Other non-current
financial assets 31258001.96 - 508191586.67 539449588.63
Other non-current
assets - 10579534.25 - 10579534.25
218896900.96630649031.24508191586.671357737518.87
Input applied in the measurement of fair value
Quoted prices Significant Significant
in active markets observable unobservable
inputs inputs Total
(Level 1) (Level 2) (Level 3)
Continuous
measurement of fair
value
Derivative financial
liabilities - 993286.71 205222952.29 206216239.00
Other non-current
liabilities - 1282812.01 5679384.78 6962196.79
-2276098.72210902337.07213178435.79
2. Level 1 fair value measurement
The fair value of the listed equity instrument investment is determined based on the market
quotation.
270Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
3. Level 2 fair value measurement
In a fair transaction the fair value of financial assets and financial liabilities is determined by
the amount of voluntary asset exchange or debt redemption between the parties to the
transaction rather than the amount in the case of force sale or liquidation.The fair value of receivable financing and other equity investment is determined by the
discounted future cash flow method the fair value is similar to their carrying value.The fair value of long-term receivables and long- and short-term borrowings is determined by
the discounted future cash flow method where the market yield of other financial instruments
with similar contract terms credit risks and remaining maturity serves as the discount rate. On
31 December 2025 the result of the self-default risk assessment of long- and short-term
borrowings was not significant.
4. Level 3 fair value measurement
The fair values of unlisted equity investments have been estimated using a market-based
valuation technique based on assumptions that are not supported by observable market prices
or rates. The valuation requires the Group to determine comparable listed companies based on
industry size leverage and strategy and to calculate an appropriate price multiple such as
enterprise value multipliers and P/E multipliers for each comparable company identified.They are adjusted for considerations such as illiquidity and size differences between the
comparable companies based on company-specific facts and circumstances. The Group
believes that the estimated fair values resulting from the valuation technique and the related
changes in fair values are reasonable and that they were the most appropriate values at the
balance sheet date. For the fair value of investments in unlisted equity instruments the Group
estimates the potential impact of using other reasonable and possible assumptions as inputs to
the valuation model.The fair value of equity resale rights in other non-current liabilities is assessed using a binary
tree model.Below is a summary of the significant unobservable inputs to the fair value measurement of
Level 3:
Closing Valuation Unobservable
fair value technique inputs Range
Other non-current Option pricing
financial assets 139440006.33 model Volatility 46.16%-58.69%
Other non-current Comparison Liquidity
financial assets 670056690.54 approach discount 6.00%-18.00%
Derivative
financial Discounted cash Volatility
liabilities 93739278.69 flow method 26.65%
Other non-current Discounted cash Liquidity
liabilities 4489204.26 flow method discount 13.00%
271Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
5. Reconciliation in fair value measurement
Reconciliation of continuous fair value measurements categorized within Level 3 of the fair value hierarchy:
2025
Change in
Opening Closing unrealized gains
balance Total current gains Purchase Sale Settlement balance for the period of assets
held at end of
Through period through
profit profit or loss
Other non-current
financial assets 508191586.67 69621110.20 296500000.00 (64816000.00) - 809496696.87 88744842.47
Change in
Transfer to unrealized losses
Opening derivative financial Transferred to other Closing for the period of liabi
balance liabilities Total current gains and losses balance lities
Through Through other held at end of
profit comprehensive period through
income profit or loss
-
Derivative
financial
liabilities 206216239.00 (123138347.12) 2898224.16 7807724.94 (44562.29) 93739278.69 3919703.43
Other non- -
current
liabilities 5679384.78 - (1190180.52) - 4489204.26 (1190180.50)
211895623.78(123138347.12)1708043.647807724.94(44562.29)98228482.952729522.93
272Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
5. Reconciliation in fair value measurement (cont’d)
2024
Opening Closing
balance Total current gains Purchase Sale Settlement balance Assets held at year-end
held at end of
Through period through
profit profit or loss
Other non-current
financial assets 429857708.04 15556100.63 77777778.00 (15000000.00) - 508191586.67 12303849.44
Transferred Change in current-period unrealiz
Opening Transfer to derivative to other Closing ed gains recognized in profit or
balance financial liabilities Total current gains and losses balance loss
Through Through other Change in current-period
profit comprehensive unrealized losses recognized in
income profit or loss
Derivative
financial
liabilities 115900827.21 81974773.81 8340637.98 - (993286.71) 205222952.29 8340637.98
Other non-current -
liabilities 22418854.80 (81974773.81) 67698121.27 (2462817.48) 5679384.78 67698121.27
138319682.01-76038759.25(2462817.48)(993286.71)210902337.0776038759.25
273Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
5. Reconciliation in fair value measurement (cont’d)
In the continuous fair value measurement at Level 3 gains and losses through profit or loss
relating to financial assets and non-financial assets is analyzed as follows:
2025
Gains and losses Gains and losses
relating to financial relating to non-
assets financial assets
Total gains through profit or loss 69621110.20 -
Change in unrealized gains for the period of assets held
at end of period through profit or loss 88744842.47 -
2024
Gains and losses Gains and losses
relating to financial relating to non-
assets financial assets
Total losses through profit or loss 15556100.63 -
Change in unrealized losses for the period of assets
held at end of period through profit or loss 12303849.44 -
274Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
X. Disclosure of Fair Values (cont’d)
5. Reconciliation in fair value measurement (cont’d)
In the continuous fair value measurement at Level 3 gains and losses through profit or loss
relating to financial assets and non-financial assets is analyzed as follows:
2025
Gains and losses Gains and losses
relating to relating to non-
financial liabilities financial liabilities
Total losses through profit or loss 1708043.64 -
Change in unrealized losses for the period of assets held
at end of period through profit or loss 2729522.93 -
2024
Gains and losses Gains and losses
relating to financial relating to non-
liabilities financial liabilities
Total losses through profit or loss 76038759.25 -
Change in unrealized losses for the period of assets
held at end of period through profit or loss 76038759.25 -
6. Transfers between levels of fair value measurement
Fair value hierarchy transition
In 2025 the Group used Level 3 valuation techniques to value some other non-current
financial assets for which observable inputs could not be reliably obtained. There was no
transfer of fair values of other non-current assets from Level 2 to Level 3 disclosures during
the year (2024: nil).
275Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XI. Relationships and Transactions with Related Parties
1. Controlling Shareholder
Relationship with the Company Interest in the Company
(%)
Tang Zhuolin One of the Company’s controlling
(individual) shareholders and actual controllers 21.26
Tang Zhuomian One of the Company’s controlling
(individual) shareholders and actual controllers 7.96
The ultimate controllers of the Company are Tang Zhuolin and Tang Zhuomian.
2. Subsidiaries
See Note VII.1.
3. Associates
See Note VII.2.
4. Other related parties
Relationship with the Company
Tang Zhuolin Chairman
Qiu Yezhi Director and General Manager
Feng Jia Director and Board Secretary
Xie Weiwei Director and Deputy General Manager
Feng Zhidong Independent Director
Tu Haichuan Independent Director
Li Ketian Independent Director
Chen Huiyi Employee Representative Director
Shao Yongfeng Chief Financial Officer and Vice President
Note: Xie Weiwei ceased to serve as Group Director and Deputy General Manager in
September 2025 continues to hold a position within the Group but no longer meets the
definition of other related parties under applicable accounting standard.
276Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
5. Related party transactions
(1) Related parties goods and services transactions
Purchase of Goods and Receipt of Services from Related Parties
Details of transactions 2025 2024
Jaten Robot Purchase of Fixed Assets 848672.57 -
(2) Other related party transactions
20252024
Salary of key management 13028414.60 10630077.80
Share-Based Payment Expenses 9441225.00 1923972.92
22469639.6012554050.72
6. Outstanding Balances of Receivables and Payables from/to Related Parties
（1） Accounts Receivable
Related 2025 2024
Parties
Gross amount Allowance Gross Allowance
amount
Other non-current
financial assets Jaten Robot 3079100.00 - - -
277Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XII. Share-based Payments
1. Equity instruments
On 21 March 2022 the Company convened the Board of Directors where the Proposal on
Granting Restricted Shares to Awardees was approved and the Board of Directors agreed to
grant stock options to 7 qualified senior managers and core technicians and agreed to grant
the right to purchase shares at RMB1 within the exercise validity period when the
corresponding performance assessment objectives are met within the lifting period. The
maximum period shall not exceed 60 months from the date of completion of registration of
the first grant of some restricted shares to the date when all restricted shares granted to the
incentive objects are lifted or repurchased and cancelled.On 9 October 2024 the Company convened the Board of Directors where the 2024
Employee Stock Ownership Plan of Guangdong Dongfang Precision Science & Technology
Co. Ltd. was approved and the Board of Directors agreed to grant stock options to 53
qualified senior managers and core technicians and agreed to grant the right to purchase
shares at RMB2.64 within the exercise validity period when the corresponding performance
assessment objectives are met within the lifting period. The duration of the employee stock
ownership plan is 48 months.The equity instruments granted are as follows:
Granted in the yearExercised in the year Unlocked in the year Expired in the year
Number Amount Number Amount Number Amount Number Amount
Sales
personnel - - - - 563200.00 1486848.00 - -
Management
personnel - - - -6904800.00 18228672.00358100.00 358100.00
R&D
personnel - - - - 844000.00 2228160.00 45900.00 45900.00
Production
personnel - - - - 220000.00 580800.00 - -
----8532000.0022524480.00404000.00404000.00
278Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XII. Share-based Payments (cont’d)
2. Equity-settled share-based payments
2025
Determination method of fair value of Based on the share price on the grant
equity instruments at grant date date minus the grant price
Important parameters of fair value of equity
instruments at grant date Share price at grant date grant price
Basis for determining the number of vested Make the best estimate of the number of
equity instruments vested employees based on the latest
information such as turnover rate and
substandard rate
Reasons for significant difference between
current year's estimate and prior year's
estimate None
Accumulated amount of equity-settled share
-based payment included in capital
reserve 38134280.41
3. Share-based payment expenses incurred during the year are as follows:
Equity-settled Cash-settled
share-based share-based
payment payment
expenses expenses
Sales personnel 487575.00 -
Management personnel 25136899.03 -
R&D personnel 2260575.00 -
Production personnel 554062.50 -
28439111.53-
XIII. Commitments and Contingent Events
1. Significant commitments
20252024
Capital commitments 11250516.51 58000411.49
2. Contingent Events
As at the balance sheet date the Group had no contingent events which were required
to be disclosed.
279Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XIV. Events after the Balance Sheet Date
As at the balance sheet date the Group had no events after the balance sheet date
which were required to be disclosed.XV. Other Significant Matters
1. Segment reporting
(1) Operating segment
For management purposes the Group is divided into business units based on products and
services. The Group has the following three reporting segments:
2025
Item Domestic entities Overseas entities Offset Total
Operating revenue 2061015712.64 3430216043.42 (262695201.31) 5228536554.75
Cost of sales 1506234541.47 2512808201.80 (221102245.85) 3797940497.42
Total assets 6711182623.76 3524066065.38 (1511274277.48) 8723974411.66
Total liabilities 1715749457.49 1745246184.11 (769938908.52) 2691056733.08
2024
Item Domestic entities Overseas entities Offset Total
Operating revenue 1804447341.61 3183988056.18 (210579795.10) 4777855602.69
Cost of sales 1229922542.40 2309319259.60 (198745975.06) 3340495826.94
Total assets 5958531935.65 2916263443.33 (1346218382.00) 7528576996.98
Total liabilities 1423006980.80 1535189236.35 (653963081.87) 2304233135.28
280Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements
1. Account Receivable
(1) By aging
20252024
Within 1 year 251717447.95 233762914.62
1-2 years 2601281.04 3910580.71
2-3 years 2494932.75 341011.00
3-4 years - 357849.03
4-5 years 357809.03 152470.04
Over 5 years 1250400.00 1250400.00
258421870.77239775225.40
Less: allowances for doubtful accounts
receivable 6153057.68 3650066.15
252268813.09236125159.25
(2) By method of provision for bad debts
Gross amount Allowance Carrying
Amount Percentage Amount Percentage amount
(%)(%)
Accounts
receivable for
which
allowances are
established
individually 1250400.00 0.48 1250400.00 100.00 -
Accounts
receivable for
which
allowances are
established by
group with
similar credit
risk
characteristics 257171470.77 99.52 4902657.68 1.91 252268813.09
258421870.77100.006153057.68252268813.09
281Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
1. Account Receivable (cont’d)
(2) By method of provision for bad debts (cont’d)
2024
Carrying
Gross amount Allowance amount
Amount Percentage Amount Percentage
(%)(%)
Accounts receivable
for which
allowances are
established
individually 1250400.00 0.52 1250400.00 100.00 -
Accounts receivable
for which
allowances are
established by
group with similar
credit risk
characteristics 238524825.40 99.48 2399666.15 1.01 236125159.25
239775225.40100.003650066.15236125159.25
As at 31 December 2025 accounts receivable for which allowances are established
individually are as follows:
20252024
Reason for
Gross amount Allowance ECL allowance Gross amount Allowance
(%)
Customer’s
inability to
settle the
Customer 1 641600.00 641600.00 100.00 amount due 641600.00 641600.00
Customer’s
inability to
settle the
Customer 2 608800.00 608800.00 100.00 amount due 608800.00 608800.00
1250400.001250400.001250400.001250400.00
282Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
1. Account Receivable (cont’d)
(2) By method of provision for bad debts (cont’d)
As at 31 December 2025 accounts receivable for which provision is made for bad debts
according to the combination of credit risk characteristics:
Gross amount Allowance ECL (%)
Within 1 year 251717447.95 3083878.15 1.23
1-2 years 2601281.04 328021.54 12.61
2-3 years 2494932.75 1132948.96 45.41
4-5 years 357809.03 357809.03 100.00
257171470.774902657.68
(3) Allowances
Movements in allowances for doubtful accounts receivable are as follows:
Opening Provision in Recovery Written off in Closing
balance the year or the year balance
reversal in
the year Transfer
20253650066.152502991.53---6153057.68
(4) Accounts receivable and contract assets of the top five debtors at the end of the year
Total closing
balance of
As a % of the provision for
closing bad debts of
balance of accounts
Total closing total accounts receivable and
Closing balance of balance of receivable provision for
accounts receivable Closing balance accounts receivable and contract impairment of
of contract assets and contract assets assets contract assets
Dongfang Precision
(Netherland) 134024146.40 - 134024146.40 47.44 -
Dongfang Precision
(HK) 76873899.85 - 76873899.85 27.21 -
Customer 9 9033800.00 73800.00 9107600.00 3.22 -
Customer 10 4652482.91 657192.80 5309675.71 1.88 -
Fosber Aisa 4531228.94 - 4531228.94 1.60 -
229115558.10730992.80229846550.9081.35-
283Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
1. Accounts receivable (cont’d)
2. Other receivables
20252024
Other receivables 311163587.33 319428138.72
Dividends receivable 186077102.15 184841125.30
497240689.48504269264.02
Other receivables
(1) By aging
20252024
Within 1 year 17436386.55 69165030.40
1-2 years 44856778.65 158655504.15
2-3 years 157906521.97 67930684.05
3-4 years 67733184.03 24323818.04
4-5 years 24266663.51 62225.66
Over 5 years 119077.16 445900.96
Less: allowances for doubtful other receivables 1155024.54 1155024.54
311163587.33319428138.72
(2) By nature
20252024
Internal transactions with related parties 301905443.63 308429032.05
Government Grants 6000000.00 6000000.00
Employee loans and petty cash 1956345.71 1991026.87
Security deposits 1321337.81 1128327.05
Performance compensation 500000.00 500000.00
Prepaid service charges - 1775693.02
Others 635484.72 759084.27
312318611.87320583163.26
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
284Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
2. Other receivables (cont’d)
Other receivables (cont’d)
(3) Provision made for bad debts
2025
Carrying
Gross amount Allowance amount
Amount Percentage Amount Percentage
(%)(%)
Other receivables for
which allowances are
established by group
with similar credit risk 311163587
characteristics 312318611.87 100.00 1155024.54 0.37 .33
2024
Carrying
Gross amount Allowance amount
Amount Percentage Amount Percentage
(%)(%)
Other receivables for
which allowances are
established by group
with similar credit risk
characteristics 320583163.26 100.00 1155024.54 0.36 319428138.72
As at 31 December 2025 and 31 December 2024 other receivables for which allowances for
doubtful is made according to the combination of credit risk characteristics:
Movements in allowances for doubtful other receivables that are established based on the 12-
month ECL and the lifetime ECL are as follows:
Stage 1 Stage 2 Stage 3
12-month Lifetime ECL Financial assets
ECL with credit
impairment
(lifetime ECL)
Opening and
closing balance 655024.54 500000.00 - 1155024.54
285Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
2. Other receivables (cont’d)
Other receivables (cont’d)
(4) Allowances
Movements in allowances for doubtful other receivables are as follows:
Opening Provision in Recovery or
balance the year reversal in the
Closing
year balance
20251155024.54--1155024.54
(5) Other receivables of the top five debtors at the end of the year
As a % of
total other Closing
receivables balance of
Opening balance Nature Age allowance
Within 1 year;
1-2 years; 2-3
Hainan Yineng years;
Investment Co. Current 3-4years;4-5ye
Ltd. 180510197.58 57.80 account ars -
Tiru?a (Guangdong) Within 1 year;
Intelligent 1-2 years; 2-3
Equipment years;
Manufacturing Co. Current 3-4years;4-
Ltd. 59780424.32 19.14 account 5years -
Dongfang Digicom Within 1 year;
Data Technology 1-2 years; 2-3
(Guangdong) Co. Current years;
Ltd. 34026493.70 10.89 account 3-4years; -
Within 1 year;
1-2 years; 2-3
years;
3-4years;4-5ye
Dongfang Precision Current ars;over 5year
(Netherland) 20577506.80 6.59 account s -
Governme
Company1 6000000.00 1.92 nt grants 1-2 years -
300894622.4096.34-
286Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
3. Long-term equity investments
(1) Long-term equity investments
Opening Opening Change in the year Closing Closing
Investment
Income (Loss)
impairment Additional Reduction Under the Equity Change in other
balance allowance investment in investment Method equity balance impairment allowance
Subsidiaries
-
Dong Fang Precision (Hk) Limited 1856010.00 - - - - 1856010.00 -
Dongfang Precision (Netherland) 1602394.30 - - - - - 1602394.30 -
Guangdong Fosber Intelligent Equipment Co. Ltd. 115620655.41 - - - - 3288028.40 118908683.81 -
Suzhou Shunyi Investment Co. Ltd. 341857375.01 (45303485.99) - - - 6464062.51 348321437.52 (45303485.99)
Tiru?a (Guangdong) Intelligent Equipment
Manufacturing Co. Ltd. 21940399.84 - - - - 147750.00 22088149.84 -
Dongfang Digicom Data Technology Co. Ltd. 4718918.74 - - - - 12535992.07 17254910.81 -
Dongfang Digicom Data Technology (Guangdong) Co.Ltd. 10916737.27 - - - - 249602.47 11166339.74 -
Hainan Yineng Investment Co. Ltd. 103440244.58 - - - - 5274675.00 108714919.58 -
Edf Europe s.r.l. 1832356.84 - - - - - 832356.84 -
Tianjin Hangchuang Zhijin Investment Partnership
(Limited Partnership) 10000000.00 - - 10000000.00 - - - -
Shenzhen Wonder Digital Technology Co. Ltd. 173800000.00 - - - - - 173800000.00 -
Yineng International Holdings Co. Ltd 28643514.63 - - - - - 28643514.63 -
Dongfang Primo Robotic (Guangdong) Co. Ltd - - 80000000.00 - - - 80000000.00 -
Grandvoyage Holdings (Singapore) Pte. Ltd. - - 21532.49 - - - 21532.49 -
816228606.62(45303485.99)80021532.4910000000.00-27960110.45914210249.56(45303485.99)
287Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
3. Long-term equity investments (cont’d)
(1) Long-term equity investments (cont’d)
Opening Opening Change in the year Closing Closing
balance impairment Additional Reduction Investment Change in balance impairment allowance
allowance investment in investment Income (Loss) other equity
Under the
Equity Method
Associates
Jaten Robot. 88414913.65 - - - 805987.99 - 89220901.64 -
Nanjing Profeta 18187548.86 - - - (2263762.31) - 15923786.55 -
Shenzhen Ruoyu - - 100682147.68 - (3841448.33) - 96840699.35 -
Aerospace Xinli - - 91701701.08 - - - 91701701.08 -
Shenzhen Heju - - 3000000.00 - - - 3000000.00 -
106602462.51-195383848.76-(5299222.65)-296687088.62-
922831069.13(45303485.99)275405381.2510000000.00(5299222.65)27960110.451210897338.18(45303485.99)
288Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
3. Long-term equity investments (cont’d)
(2) Impairment test of long-term equity investments
Opening Increase in Decrease in Closing
balance the year the year balance
Suzhou Shunyi
Investment Co. Ltd. (45303485.99) - - (45303485.99)
(45303485.99)--(45303485.99)
4. Operating revenue and costs
(1) Operating revenue and costs
2025
Revenue Costs Revenue Costs
(Restated)
Principal operations 358263457.30 231831212.99 486169708.35 273363807.83
Other operations 25710862.31 5136759.56 22862863.90 6255355.36
383974319.61236967972.55509032572.25279619163.19
Operating revenue is as follows:
20252024
Revenue generating from contracts with
customers 381006741.90 504770684.36
Rental income 2967577.71 4261887.89
383974319.61509032572.25
289Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
4. Operating revenue and costs (cont’d)
(2) Breakdown of operating revenue
Breakdown of operating revenue arising from contracts with customers is as follows:
2025
Reporting segments
Principal product type
Goods 358263457.30
Services 17965030.64
Interest income 1790420.29
Others 2987833.67
381006741.90
Principal operating segment
Mainland China 120890390.28
Other regions 260116351.62
381006741.90
Timing of revenue recognition
Revenue recognized at a point in time 361251290.97
Revenue recognized over time 19755450.93
381006741.90
290Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
4. Operating revenue and costs (cont’d)
(2) Breakdown of operating revenue (cont’d)
Breakdown of operating revenue arising from contracts with customers is as follows: (cont’d)
2024
Reporting segments
Product type
Goods 486050722.05
Services 12983947.77
Interest income 5004724.86
Others 731289.68
504770684.36
Principal operating segment
Mainland China 105821156.31
Other regions 398949528.05
504770684.36
Timing of revenue recognition
Revenue recognized at a point in time 486782011.73
Revenue recognized over time 17988672.63
504770684.36
291Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVI. Notes to Major Items in the Company Financial Statements (cont’d)
4. Operating revenue and costs (cont’d)
Breakdown of operating cost arising from contracts with customers is as follows:
Reporting segments
Product type
Goods 233035322.53
Services 1242169.77
Others 2690480.25
236967972.55
Principal operating segment
Mainland China 102919161.77
Other regions 134048810.78
236967972.55
Timing of revenue recognition
Transfer at a specific point in time 235725802.78
Transfer over a specific period of time 1242169.77
236967972.55
5. Investment income
20252024
Dividends under cost method 290092756.16 10200000.00
Investment income from disposal of financial
assets held for trading 150688868.97 -
Income from financial assets held for trading 2261216.51 4932350.52
Income from long-term equity investments
measured at equity method (5299222.65) (2444335.91)
437743618.9912688014.61
292Guangdong Dongfang Precision Science & Technology Co. Ltd.
Notes to the Financial Statements (Cont’d)
2025 Expressed in Renminbi Yuan
XVII. Supplementary Information
1. Schedule of exceptional gains and losses
2025
Gain or loss on disposal of non-current assets (inclusive of
impairment allowance write-offs) (1629657.69
Government grants through profit or loss (Except for
government grants that are closely related to normal
business comply with national policies and regulations
enjoy according to the recognition criteria and have a
sustained impact on profit and loss) 13298788.58
Profit or loss from changes in fair value of financial assets and
financial liabilities held by non-financial enterprises and
profit or loss from disposal of financial assets and financial
liabilities except for effective hedging business related to
normal business operations 256775110.29
Non-operating income and expenses other than the above 11693581.35
Other Items Meeting the Definition of Non-Recurring Gains
and Losses (33683634.10
Subtotal of non-recurring gain or loss 246454188.43
Income tax effects (38453892.24
Non-controlling interests effects (net of tax) (1654676.62
206345619.57
2. Return on equity (ROE) and earnings per share (EPS)
Weighted average ROE (%) EPS
Basic Diluted
Net profit attributable to ordinary
shareholders of the Company 13.39 0.61 0.60
Net profit attributable to ordinary
shareholders of the Company
before exceptional gains and losses 9.58 0.43 0.43
293
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