2025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Stock abbreviation: Semcorp Stock code: 002812 Announcement No.: 2026-052
Yunnan Energy NewMaterial (Group) Co. Ltd.2025 Annual Report
April 2026
12025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2025 Annual Report
Section 1 Important Notes Contents and Definitions
The Board of Directors and its members and the senior management
warrant that the contents of the Annual Report are truthful accurate and
complete without any false statement misrepresentation or major omission and
that they are jointly and severally liable for the contents.Paul Xiaoming Lee (the Company’s person in charge) Li Xiangl in (the
person in charge of finance) and Deng Jinhuan (the person in charge of the
accounting department) hereby declare and warrant that the contents of the
financial statements in this Annual Report are truthful accurate and complete.All Directors were present at the Board meeting to consider and approve this
Annual Report.The future plans development strategies and other forward-looking descriptions
in this report do not constitute material commitments of the Company to investors.Investors and related persons shall be fully aware of the risks in connection
therewith and should understand the difference between plan forecast and
commitment. Investors are advised to pay attention to investment risks.For details please refer to the “3. Risks the Company may face” under the “XI.Outlook of the Company” in the Section 3 “Management Discussion and Analysis”
of this report.The Company plans to pay no cash dividend and no bonus shares and no share
will be converted from reserve into share capital.
22025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Contents
Section 1 Important Notes Contents and Definitions... 2
Section 2 Company Profile & Key Financial Indicato....7
Section 3Management Discussion and Analysis .........11
Section 4 Corporate Governance Environment and Soc.. 37
Section 5 Significant Events ........................55
Section 6 Share Changes and Shareholder Details .....98
Section 7 Details about Bonds ......................107
Section 8 Financial Report ........................ 110
32025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Documents Available for Inspection
I. Financial statements signed and sealed by the legal representative the person in charge of finance and the person in charge
of the accounting department of theCompany.II. The original copies of all documents and announcements of the Companywhich have been publicly disclosed in newspapers
designated by the China Securities Regulatory Commission during the ReportingPeriod.III. The original text of the 2025 annual report signed by the Chairman of the Board of Directors.IV.The place where the above documents are maintained: the Company’s Securities Department.
42025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Definitions
Terms Definitions
Energy Technology this Company the Company Yunnan Energy New Material Co. Ltd.Actual controller Paul Xiaoming Lee family Paul Xiaoming Lee Li Xiaohua Yan Ma Yanyang Hui Sherry Lee Jerry Yang Li
Hongta Plastic Yunnan Hongta Plastic Co. Ltd. a wholly-owned subsidiary of the Company
Chengdu Hongta Plastic Hongta Plastic (Chengdu) Co. Ltd. a subsidiary of the Company
Hongchuang Packaging Yunnan Hongchuang Packaging Co. Ltd. a controlled subsidiary of the Company
Anhui Hongchuang Hongchuang Packaging (Anhui) Co. Ltd. a subsidiary of the Company
Shanghai Energy Shanghai Energy New Material Technology Co. Ltd. a controlled subsidiary of the Company
Zhuhai Energy Zhuhai Energy New Material Technology Co. Ltd. a subsidiary of the Company
Wuxi Energy Wuxi Energy New Material Technology Co. Ltd. a subsidiary of the Company
Jiangsu Energy Jiangsu Energy New Material Technology Co. Ltd. a subsidiary of the Company
Chongqing Energy Chongqing Energy New Material Technology Co. Ltd. a subsidiary of the Company
Yuxi Energy Yuxi Energy New Materials Co. Ltd. a subsidiary of the Company
Xiamen Energy Xiamen Energy New Material Co. Ltd. a subsidiary of the Company
Newmi Tech Chongqing Energy Newmi Technological Co. Ltd. a subsidiary of the Company
Jiangxi Tonry Jiangxi Tonry New Energy Technology Development Co. Ltd. a subsidiary of the Company
Jiangsu Ruijie Jiangsu Ruijie New Material Technology Co. Ltd. a subsidiary of the Company
Jiangxi Ruijie Jiangxi Ruijie New Material Technology Co. Ltd. a subsidiary of the Company
Jiangxi Energy Jiangxi Energy New Material Technology Co. Ltd. a subsidiary of the Company
Jiangxi Enpo Jiangxi Enpo New Materials Co. Ltd. a subsidiary of the Company
Hubei Energy Hubei Energy New Material Technology Co. Ltd. a subsidiary of the Company
Suzhou GreenPower Suzhou GreenPower New Energy Materials Co. Ltd. a subsidiary of the Company
Shanghai En'erjie Shanghai En'erjie Trading Co. Ltd. a subsidiary of the Company
Yunnan Jiechen Yunnan Jiechen Packaging Materials Co. Ltd. a wholly-owned subsidiary of the Company
SEMCORP Hungary KFT SEMCORP Hungary Korlátolt Felelsség Társaság (Hungary) a subsidiary of the Company
Heyi Investment Yuxi Heyi Investment Co. Ltd. a party acting in concert with actual controllers of the Company
Heli Investment Yuxi Heli Investment Co. Ltd. an employee stock ownership platform of the Company
General Meeting The general meeting of shareholders of Yunnan Energy New Material Co. Ltd.Board of Directors The Board of Directors of Yunnan Energy New Material Co. Ltd.Supervisory Committee The supervisory committee of Yunnan Energy New Material Co. Ltd.CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
Company Law Company Law of the People’s Republic of China
Securities Law Securities Law of the People’s Republic of China
Articles of Association Articles of Association of Yunnan Energy New Material Co. Ltd.China Securities Journal Shanghai Securities News Securities Times Securities Daily and Cninfo
Designated information disclosure media (www.cninfo.com.cn)
RMB RMB10 thousand RMB100 million RMB RMB10 thousand RMB100 million
Reporting Period this Reporting Period January 1 2025 to December 31 2025
Same period last year January 1 2024 to December 31 2024
Rechargeable battery which mainly depends on the lithium ion moving between the positive and
Lithium-ion battery lithium battery negative electrodes. It generally uses materials containing lithium as the electrodes and is the
representative of modern high-performance batteries
In the structure of lithium battery the separator is one of the key inner components. Its main function
Lithium-ion battery separator lithium battery is to separate the positive and negative electrodes of the battery preventing the short circuit arising
separator the separator from the contact between the two electrodes current conduction and overheating
Base film base separator The separator immersed in the electrolyte of lithium battery is widely distributed with nano-scalemicropores on its surface for lithium ions to move freely between the positive and negative electrodes
Coating film coated separator The separator with coating treatment
A process technique of lithium battery separator also known as phase separation process or
thermally induced phase separation process is to add small molecules with high boiling point as
Wet-process wet-processing porogen to polyolefin heat and melt them into a uniform state extrude the casting sheet by screwextract the porogen with organic solvent after simultaneous or sequential biaxial stretching and then
obtain microporous separator material through post-processing such as stretching heat setting
process
52025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Also known as melt-stretching process including unidirectional stretching process biaxial
stretching process and blow molding process. It refers to a preparation process of melting and
Dry-process dry-processing extruding polyolefin resin into crystalline thin polymer film which is crystallized and annealed to
obtain a high crystallinity structure and then further stretching at high temperature to peel off the
crystalline interface to form porous structure
Cigarette label Cigarette packaging commonly known as “cigarette pack”
Aseptic packaging Composite packaging materials for aseptic filling of dairy products or non-carbonated soft drinks
Specialty paper refers to the paper with special functions a general term for all kinds of special
Specialty paper purpose paper or art paper. The term “specialty paper” in this report mainly refers to special
packaging paper
BOPP film The separator made by stretching and processing (such as corona coating etc.) the thick filmmade
of polymer polypropylene melt at a certain temperature and speed in a special stretcher
Aluminum laminated film Aluminum laminated composite film for lithium-ion pouch cell a packaging material for lithium-
ion batteries which protects the internal materials of lithium-ion batteries
Convertible Bonds Energy Convertible Bonds The convertible corporate bonds of RMB1.6 billion issued on February 11 2020 with a code of
128095
62025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 2 Company Profile & Key Financial Indicators
I. Corporate Information
Stock Name Energy Technology Stock Code 002812
The Stock Exchange Where the Shares Are Listed Shenzhen Stock Exchange
Name of the Company in Chinese 云南恩捷新材料（集团）股份有限公司
Short Name of the Company in Chinese 恩捷股份
Name of the Company in English Yunnan Energy New Material (Group) Co. Ltd.Short Name of the Company in English ENERGY TECHNOLOGY
Legal Representative of the Company Paul Xiaoming Lee
Registered Address No.125 Fuxian Road High-tech Zone Yuxi City Yunnan Province
Postal Code for Registered Address 653100
Historical Changes of the Registered Address of the No
Company
Office Address No.125 Fuxian Road High-tech Zone Yuxi City Yunnan Province
Postal Code for Office Address 653100
Official Website www.semcorp.com
Email groupheadquarter@cxxcl.cn
II. Contact Information
Board Secretary Securities Affairs Representative
Name Bai Yunfei Tang Yitong
Correspondence Address No.125 Fuxian Road High-tech Zone Yuxi City Yunnan No.125 Fuxian Road High-tech Zone Yuxi
Province City Yunnan Province
Telephone 0877-8888661 0877-8888661
Fax 0877-8888677 0877-8888677
Email groupheadquarter@cxxcl.cn groupheadquarter@cxxcl.cn
III.Information Disclosure and the Place Where the Annual Report is Kept
The website of the stock exchange where the Company
Shenzhen Stock Exchange (www.szse.cn)
discloses its annual report
The names and websites of the media where the Securities Times China Securities Journal Shanghai Securities News Securities Daily
Company discloses the annual report and Cninfo (www.cninfo.com.cn)
The place where the annual report is kept Securities Department of the Company
72025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
IV.Changes of Registration
Unified social credit code 91530000727317703K
When the Company was listed its main businesses were divided into two categories:
Changes of main businesses since the Company’s listing (1) packaging materials: BOPP films (cigarette film and flat film) and specialty paper
products (laser transfer anti-counterfeiting paper direct plating paper and cellophane);
(2) packaging printing products: mainly including cigarette label products and aseptic
packaging products. Upon the completion of major asset restructuring in 2018 the
Company’s main businesses were divided into three categories: (1) film products
(lithium battery separator and BOPP film etc.); (2) packaging printing products
(cigarette label and aseptic packaging); and (3) packaging products (specialty papers
holographic anti-counterfeiting electrochemical aluminum and other products).Mr. Paul Xiaoming Lee and Ms. Sherry Lee who are shareholders and actual controllers
of the Company and members of Xiaoming Lee’s family signed the Power of Attorney
for Shareholding on January 14 2020. Pursuant to the Power of Attorney Ms. Sherry
Lee fully delegated the shareholders’ rights such as the right to inquire the right to make
Changes of controlling shareholders suggestions and the voting right in connection with all the shares she held in the
Company to her father Mr. Paul Xiaoming Lee. After the signing of the above-
mentioned Power of Attorney for Shareholding Mr. Paul Xiaoming Lee has become
the single shareholder of the Company with the largest number of shares with voting
right and the controlling shareholder of the Company changed from Heyi Investment
to Mr. Paul Xiaoming Lee. At present Mr. Paul Xiaoming Lee is still the controlling
V. Other Relevant Information
The accounting firm engaged by the Company
The name of the accounting firm Da Hua Certified Public Accountants (Special General Partnership)
The office address of the accounting firm Room 1101 Building 7 Courtyard 16 West Fourth Ring Middle Road HaidianDistrict Beijing
The names of the accountants Kang Wenjun Duan Liwei
The sponsor engaged by the Company to perform continuous supervision duties during the Reporting Period
□Applicable □Not applicable
Name of sponsor Office address of sponsor Name of sponsor representative Supervision duration
CITIC Securities Company 21/F CITIC Securities Tower The statutory supervision duration
Limited No. 48 Liangmaqiao Road Wang Jiaji and Peng Chunyi
was from June 20 2023 to
Chaoyang District Beijing December 31 2024. AfterDecember 31 2024 ongoing
supervision will continue in respect
of matters relating to the unused
proceeds.The financial adviser engaged by the Company to perform continuous supervision duties during the Reporting Period
□Applicable□Notapplicable
82025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
VI.Key Accounting Data and Financial Indicators
Whether the Company is required to retroactively adjust or restate prior years’ accounting data
□Yes□ No
Increase or decrease in
2025 2024 this year compared to last 2023
year
Operating income (RMB) 13632727136.01 10163655793.70 34.13% 12042229789.30
Net profit attributable to the
142548339.91 -556317501.09 125.62%shareholders of the listed 2526688570.92
Ncoemt ppraonfyit(RneMtBof) the non-
recurring gains or losses 110802429.81 118.07%
attributable to the -613297983.45 2461257928.99
sNheatrechasohldfelroswogf ethneeralitsetded
1143637807.97
from the operating activities 1158249055.10
-1.26%2667453259.32
(BRaMsicBe)arnings per share
(RMB/share) 0.15 -0.57 126.32% 2.68
Diluted earnings per share
(RMB/share) 0.15 -0.87 117.24% 2.58
Weighted average return on
equity 0.58% -2.17% 2.75% 11.87%
Increase or decrease at the
At the end of 2025 At the end of 2024 end of this year compared At the end of 2023
to the end of last year
Total assets (RMB) 48747236745.37 47199637500.22 3.28% 47200916635.69
Net assets attributable to the
25466749522.2024471229555.064.07%26926495494.24
shareholders of the listed
company (RMB)
The lowest of the Company’s net profits before and after the deduction of non-recurring gains or losses for the last three fiscal years are negative and
the audit report for the latest year shows that Company’s ability to continue as a going concern is uncertain
□Yes□No
The lowest of the Company’s audited total profit net profit and net profit after deducting non-recurring gains or losses during the Reporting Period is negative
□Yes□No
VII. Accounting Data Differences under Chinese and Overseas Accounting Standards
1. Difference between the net profits and net assets of the financial report disclosed in accordance with the
international accounting standards and the Chinese accounting standards
□Applicable□Notapplicable
There was no difference between the net profits and net assets of the financial report disclosed in accordance with the international accounting
standards and the Chinese accounting standards during the Reporting Period of the Company.
2. Difference between the net profits and net assets of the financial report disclosed in accordance with the
overseas accounting standards and the Chinese accounting standards
□Applicable□Notapplicable
There was no difference between the net profits and net assets of the financial report disclosed in accordance with the overseas accounting standards and the
Chinese accounting standards during the Reporting Period of the Company.
92025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating income 2728626155.64 3034254903.63 3780403628.27 4089442448.47
Net profit attributable to the shareholders of the listed 25986601.51 -119100411.48 6790825.59 228871324.29
company
Net profit net of the non-recurring gains or losses 29195738.48 -123733951.02 10173008.05 195167634.30
attributable to the shareholders of the listed company
Net cash flow generated from the operating activities 124302344.45 85983290.29 667041722.08 266310451.15
Whether the above financial indicators or their sums are materially different from those disclosed in the quarterly and interim reports of the Company
□Yes □ No
IX. Items and Amounts of Non-Recurring Gains or Losses
□ Applicable □Not applicable
Unit: RMB
Item 2025 Amount 2024 Amount 2023 Amount Remarks
Gains and losses from the disposal of non-current -8203684.96 -636682.57 -2635244.01
assets (including the write-down of the provision for
impairment of assets)
Government subsidies recognized in current profit
or loss (except for those closely related to the
Company’s normal business and are in line with 63927360.69 86288377.95 91546051.06
national policies and in accordance with defined
criteria that have a continuing impact on the
CGoaminpsaonryl’ossspersoffirtoomr lcohsasn)ges in fair value arising from
financial assets and financial liabilities held by non-
financial corporation and gains or losses from
124692.6315433062.02
disposal of financial assets and financial liabilities
excluding the effective hedging business related to the
Company’s normal business operations
Gains or losses on entrusted investments or -6706147.71
assets management
Reversal of the provisions for impairment of 1844977.96
2384991.32102906.06
receivables subject to separate impairment test
One-off share-based payment recognized as a result of
-21942152.71
cancellation and modification of the share incentive
Nscohne-mopeerating income and expenses other than -10156736.59
-2924642.41-44249.00
above- mentioned items
Other items within the definition of non-recurring 1129596.00
461445.22589416.97
gains or losses
Less: Effect of the income tax 4979244.69 21424545.54 12614212.47
Effect of minority equities (after tax) 5110210.60 7293154.24 5004935.99
Total 31745910.10 56980482.36 65430641.93 --
Details of other profit or loss items that fall within the meaning of non-recurring gain or loss:□Applicable □Not applicable Mainly arising from the refund of
individual income tax handling fees
The reason for the Company to define the non-recurring profit or loss items illustrated in the Information Disclosure and Presentation Rules for
Companies Making Public Offering of Securities No.1 – Non-recurring Profit or Loss as recurring profit or loss items
□Applicable □Not applicable
102025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 3Management Discussion and Analysis
I. Main Businesses of the Company during the Reporting Period
The Company shall comply with the disclosure requirements for the chemical industry set forth in the Self-Regulatory Guidelines No. 3
for Companies Listed on Shenzhen Stock Exchange – Industry Information Disclosure
Procurement model for major raw materials
Unit: RMB
Proportion in total Whether there are Average price in theMajor raw materials Procurement model procurement amount significant changes in
Average price in the
second half of the
settlement methods first half of the year year
Raw material A Market procurement 17.73% No 27.17 24.92
Raw material B Market procurement 13.79% No 10.87 10.33
Raw material C Market procurement 0.95% No 10.42 8.64
Raw material D Market procurement 3.30% No 6.60 6.80
Reasons for significant changes in raw material prices compared with the previous reporting period: Not applicable
Energy procurement costs account for over 30% of total production costs:
□Applicable □Not applicable
Reasons for significant changes in major energy types: Not applicable
Production technology for major products
Major products Phase inproduction Information about keytechnology Patent technology Strengths in product R&Dtechnical personnel
The Company’s R&D team The Company has built a well-established R&D team
for lithium battery separators over the years responsible for the R&D of forward-
has achieved a series of looking technological reserve projects such as
accomplishments in improving separator and coating production equipment
All are employees of production efficiency and improvements in separator preparation processes and
the Company who lithium battery separator raw materials coating processes slurry formulations
continue to carry out business. Currently there are a recycling and energy-saving technologies as well asLithium battery Industrialization R&D of projects and total of 525 valid patents semi-solid and solid-state batteries. The Company’sseparator proactively respond to including 264 invention pioneering online coating technology has further
the needs of patents (covering 46 enhanced the quality and production efficiency of
downstream customers international patents). coating film products. Additionally the Company’sAdditionally 299 patents are lithium battery separator R&D team not only
currently under application. customizes the development of various new products
for downstream customers to meet diverse customer
needs but also collaborates with them to develop
products and enhance the customer loyalty.The Company has accumulated thirty years of
All are employees of Currently there are 71 valid experience in technical R&D. Leveraging a well-
the Company who patents including 7 invention established R&D team within the Company’s research
BOPP film develop relevantIndustrialization patents and 64 utility model institute system the Company can develop relatedproducts in proactive patents; 10 patents are products according to customer needs. It is one of the
response to the needs of currently under application. few Chinese enterprises capable of producing anti-
downstream customers counterfeiting printed cigarette films
All are employees of the Currently there are 55 valid
Aseptic Company who develop patents including 3 invention
Leveraging a well-established R&D team within the
packaging Industrialization relevant products based on patents 43 utility model patents
Company’s research institute system the Company
demands of the market and 9 design patents; 26 patents can develop related products according to customer
and downstream customersare currently under application. needs to meet diverse customer needs
112025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Production capacity of major products
Major products Designed capacity Capacity utilizationrate Capacity under construction Investment in construction
During the Reporting Period Chongqing
Yuxi Energy USA Energy (Phase II) and Hungary Energy
Lithium battery separator 94.91 % Energy Production Base were put into production; Yuxi Energy14.4 billion m2 and USA Energy were under
construction.BOPP film 100000 tons 60.50%
It was put into production during
Aseptic packaging 6.933 billion units 80.56 % Anhui Hongchuang AsepticPackaging Production Base the Reporting Period.Note: The production capacity of the parent roll of the lithium battery separator in the above table was calculated by the rotational speed width and
normal wear and tear during shutdown maintenance as well as the weighted duration of the production lines put into production. In addition before being
sold different products may need to experience different processes such as cutting and coating. For different processes wears and tears may be
different leading to certain difference in production volume between the products and their parent rolls.Product categories in major chemical parks
Major chemical parks Product category
Shanghai Energy Zhuhai Energy Wuxi Energy Jiangxi Tonry Suzhou
GreenPower Chongqing Energy Newmi Tech Jiangsu Energy Hubei Lithium battery separator
Energy Hungary Energy Jiangxi Enpo
Hongta Plastic Chengdu Hongta Plastic BOPP film
Hongchuang Packaging Anhui Hongchuang Aseptic packaging
Note: Chemical park refers to the chemical area which features with defined geological boundary and management entities complete infrastructure
and management system and is established after being approved by the government for developing chemical industry. The Company operates in the
rubber and plastic products manufacturing sector. None of the production bases listed in the above table are located within chemical parks.Environmental Impact Assessment (EIA) approvals being applied for or newly obtained during the Reporting Period:
□Applicable Not applicable
Abnormal production shutdowns occurring in the listed company during the Reporting Period:
□Applicable□Notapplicable
Relevant approvals permits qualifications and their validity periods:
□Applicable□Notapplicable
Conducting petroleum processing and petroleum trading business:
□Yes □No
Conducting fertilizer business:
□Yes □No
Conducting pesticide business:
□Yes □No
Conducting chlor-alkali and soda ash businesses:
□Yes □No
II. Industry Overview of the Company during the Reporting Period
The Company shall comply with the disclosure requirements for chemical industry set out in the Self-Regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange–Industry Information Disclosure.The Company is a leading global player in the lithium battery separator industry with lithium battery separators as its core strategic
product. The relevant industry conditions are as follows:
1. Industry development status and overall supply and demand trends
With increasing global attention on green low-carbon and sustainable development more than 150 countries set ambitious goals for
carbon neutrality. At the United Nations Climate Change Conference nearly 200 countries reached a milestone agreement–“UAE Consensus”
marking the first consensus in nearly three decades on transitioning the energy system from fossil fuels to clean energy. Countries have
intensified efforts to promote the development of the new energy industry. As one of the four key materials of lithium batteries lithium
122025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
battery separators are widely used in electric vehicles consumer electronics energy storage batteries and other fields playing a pivotal role
in driving the development of China’s and even global new energy industries.Guided by China’s national strategic goals of “carbon neutrality” and “carbon peaking” the new energy vehicle and energy storage
industries continue to perform well driving positive prospects for the lithium battery separator industry. However due to the concentrated
release of supply in the lithium battery separator industry in recent years demand growth has slowed. Since 2023 fierce competition within
the industry has led to a decline in separator product prices putting pressure on the industry’s overall profitability. According to third-party
statistics the downward trend in the lithium battery separator industry began to bottom out in the fourth quarter of 2024. In 2025 as the
industry’s supply-demand dynamics improved capacity utilization rates rose gradually. On the supply side following a period of profound
industry restructuring in recent years outdated capacity has been rapidly phased out and orders have become concentrated among leading
enterprises. By 2025 the market concentration of the top four companies in the separator industry exceeded 72% signaling an optimization of
the competitive landscape. On the demand side demand for power batteries continued to grow while demand for energy storage batteries has
surged driven by policy support and the expansion of application scenarios such as data center backup storage. The supply-demand structure
of the lithium battery separator market improved in the second half of 2025 with market prices stabilizing and showing signs of a gradual
recovery.The development of the lithium battery separator industry is closely linked to downstream lithium battery end-use applications. Global
demand for power batteries and energy storage batteries continues to grow. According to EV Tank’s data total global lithium battery
shipments in 2025 reached 2280.5 GWh representing a year-on-year increase of 47.6%. Of this power battery shipments amounted to
1495.2 GWh up 42.2% year-on-year while energy storage battery shipments reached 651.5 GWh surging by as much as 76.2% year-on-
year. Benefiting from the increase in new energy vehicle models and the rise in battery capacity per vehicle global demand for power
batteries is expected to continue growing. Global electricity demand growth-particularly from applications such as AI data centers-combined
with domestic and international policy support is expected to drive sustained growth in the global energy storage battery market.The continued growth in global demand for power and energy storage batteries will significantly boost demand for separators.Furthermore following a period of extensive industry consolidation the capacity of small and medium-sized separator manufacturers has
been rationalized leading to a continuous optimization of the industry’s supply landscape. At the same time the construction commissioning
and customer validation cycles for separator production lines are lengthy. Coupled with the previously intense industry competition which
has led to a general slowdown in the pace of capacity expansion among separator manufacturers the release of new high-quality capacity in
the short term will be limited. Furthermore the shift towards higher-capacity energy storage cells is raising product technical barriers making
it even more difficult to rapidly establish effective supply of separators that meet high-end requirements. These multiple factors are expected
to collectively drive the separator industry’s supply and demand towards a gradually tightening balance.
2. Market competition landscape
From the perspective of technological pathways and product structure high-end separator products-which offer greater safety and
consistency as well as thinner profiles (effectively enhancing the energy density of lithium batteries)-will become the core driver of future
industry growth. (1) In terms of technological pathways according to data from GGII and EV Tank wet-process separators accounted for
over 80% of the Chinese market by 2025 representing a further increase from 2024. This is primarily due to upgrading downstream demand
and the transition of energy storage cells towards higher capacities which places greater demands on the stability and consistency of separator
products; consequently the market share of wet-process separators is expected to rise further. (2) In terms of product structure coating
inorganic ceramic materials PVDF aramid and other materials on the base film can effectively enhance the puncture resistance and heat
resistance of lithium battery separators improving the safety and service life of batteries. Compared with base films coating films are better
able to meet the key performance requirements of lithium batteries for separators offering higher product added value. (3) Regarding base
film products themselves those with superior key characteristics-such as strength and ionic conductivity-and thinner thicknesses are more
competitive. While helping to improve the safety and service life of lithium batteries they also provide more space for electrode materials
thereby contributing to enhanced battery energy density and energy efficiency.From the perspective of production capacity the effective supply of mid-to-high-end separator products is becoming increasingly tight.As downstream demands for key product performance become ever more stringent separator manufacturers must possess strong R&D and
innovation capabilities continuously driving technological iteration and performance upgrades. They must continually develop new products
with superior safety and better overall performance while being able to provide customized solutions tailored to the needs of lithium battery
customers. Consequently companies that master core technologies and possess independent R&D and continuous innovation capabilities will
enjoy broader development prospects. At the same time to ensure the security and stability of their supply chains leading global battery
manufacturers-while prioritizing product quality and technical services-are increasingly inclined to select core suppliers whose production
capacity aligns with their own requirements. Furthermore in overseas markets the penetration rate of new energy vehicles continues to rise
suggesting that the demand for power batteries abroad is likely to maintain its growth trajectory. Additionally growing demand for energy
storage in overseas data centers coupled with the need for flexible resources to address power shortages is expected to drive significant
growth in overseas energy storage demand. Downstream battery manufacturers are actively expanding their global outreach which in turn
requires separator manufacturers to actively pursue global development. By establishing localized production capacity they can better adapt
to overseas policy environments respond swiftly to customer demands and ensure stable supply and localized service provision.From the perspective of sustainability against the backdrop of ongoing global efforts towards low-carbon environmental protection and
carbon neutrality leading downstream clients are placing ever-greater emphasis on green and low-carbon supply chains with a universal
focus on carbon reduction across the entire product life-cycle. Separator manufacturers equipped with green manufacturing systems and
capable of achieving low-carbon production-or even carbon-neutral supply-will better align with the sustainability requirements of key
downstream clients. This will enable them to form a differentiated advantage in the market competition and secure a more favorable
competitive position.
3. The industry position of the Company
132025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
According to EV Tank’s data as of the end of the Reporting Period the Company’s market share has ranked first in the lithium battery
separator market for several consecutive years. As a leading company in the lithium battery separator industry the Company not only
possesses significant competitiveness in global production capacity product quality cost-effectiveness and technological R&D but also has
successfully entered the supply chain systems of the world’s mainstream lithium battery manufacturers. Our products cover the three major
fields of power battery consumer battery and energy storage battery with abundant application scenarios.
4. Industry policies
The Company’s main product is lithium battery separator an indispensable core component in lithium battery manufacturing. The
industry chain of new energy lithium battery in which the Company is engaged is highly valued and supported by governments around the
world. Relevant industry policies introduced in China since 2025 that have had a direct or indirect impact on the Company are detailed below:
Issuing Issuing Name of Policy
Date Authority or Regulation Main Content
Impact on Separator
Industry
GB 38031-2025 is the mandatory national
standard for the safety of power batteries
used in electric vehicles replacing the It drives the upgrade of separators
Safety Requirements 2020 version. The standard raises safety towards higher safety heat resistance
March MIIT for Power Batteries requirements by introducing new tests and greater consistency increasing
2025 (SAC) Used in Electric including fast charging safety and bottom demand for coating separators andVehicles (GB 38031- impact while strengthening thermal leading to industry consolidation
2025) runaway and thermal spread protection. It around technologically leading
standardizes various safety testing enterprises.protocols and establishes uniform type-
approval rules.It drives increased demand for
separators accelerates the shift in
Special Action Plan for product structure towards higher
Large-Scale The Plan aims to promote the large-scale
August NDRC Deployment of New application of new energy storage
safety longer cycle life and lower
technologies raise technical standards cost and propels the industry away2025 NEA Energy Storage and enhance market-oriented from price-driven competitionTechnologies (2025– development. towards a high quality growth2027) cycle characterized by a
simultaneous increase in both
volume and price.It drives growth in demand for
Notice on Deepening All new energy power generation will be
Market-Oriented fully integrated into the electricity market
separators with the market shifting
Reform of Feed-in with feed-in tariffs market-oriented.towards energy storage applications
Existing projects will retain stable returns leading to both volume and priceJanuary NDRC Tariffs for New Energy while new projects will be awarded increases in the separator industry.2025 NEA and Promoting the through competitive bidding. This will Coating separators and high-stabilityHigh-Quality
Development of New shift energy storage from passively
base films will become mainstream.allocated capacity to active profit Market consolidation among leadingEnergy generation. players will intensify andtechnological barriers will deepen.Furthermore since 2025 numerous countries worldwide have rolled out a series of policies to support new energy: the European
Commission has successively published the European Automotive Industry Action Plan the National Energy and Climate Plans and the Grid
Package driving the development of electrification and energy storage from multiple angles including electric vehicle subsidies the
refinement of energy storage market mechanisms and grid upgrades; Australia has raised its benchmark electricity prices and introduced
AUD2.3 billion in subsidies for household energy storage spurring a rush to install home storage systems; the UK has significantly boosted
solar and storage installations through measures such as the Warm Homes Scheme-which offers billions in subsidies-and the mandatory
installation of solar panels in new-build homes; meanwhile several European nations including the UK Germany France Italy and Spain
have continued to stimulate demand for electric vehicles by reintroducing or expanding purchase subsidies targeted grants and eco-bonuses.These policies will strongly drive growth in global demand for power batteries and energy storage batteries thereby fueling sustained growth
in demand within the lithium battery separator industry.III. Analysis of Core Competitiveness
1. Scale advantage
As of the end of the Reporting Period the Company is a world leader in terms of the production scale of wet-process lithium-ion battery
separator and has the largest separator production and supply capacity in the world. The Company is the world’s largest supplier of lithium-
ion battery separator ranking No. 1 globally in terms of market share.The scale advantage of the Company is mainly reflected in cost control and market expansion enabling it to consistently take large-scale
orders from leading global battery manufacturers and major automotive manufacturers including CATL LGES Panasonic CALB EVE
Gotion High-tech ACC and Ultium Cells.On the cost side the Company effectively reduces its raw material costs through large-scale centralized procurement and optimizes
production scheduling based on ample orders thereby minimizing downtime and changeover losses. As a result the Company leads its peers
142025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
in terms of operating rate and capacity utilization rate. On the market side as the lithium battery industry becomes more concentrated and
downstream customers intensify their requirements for energy density cycle life safety and fast-charging performance large-scale supply
capacity product consistency and stability have become key competitive factors. Leveraging its outstanding scale and quality advantages the
Company continues to solidify its leading position in the industry.
2. Cost advantage
In addition to optimizing procurement costs and production losses through economies of scale the Company has long been dedicated to
the R&D and iterative improvement of advanced manufacturing technologies for wet-process lithium battery separators. Thanks to the
continuous optimization of equipment and process technique by the Company’s production management and technical teams the Company
leads its industry peers in terms of output from a single production line of separators and effectively reduces unit depreciation energy
consumption and labor costs. Moreover thanks to its refined production management and technical control the Company also leads its peers
in terms of yield coefficient and first pass yield of products. The Company also continuously improves the recycling rate of auxiliary
materials with per- unit consumption of auxiliary materials below the industry average. On the whole by relying on continuous
improvements in equipment and processes investment in R&D refined production management and market development capabilities the
Company has established a significant comprehensive cost advantage.
3. Product advantage
Current industry demand is gradually shifting towards mid-to-high-end separator products which feature higher technical barriers
stricter customer standards and more rigorous certification and validation processes. The Company has long focused on R&D and innovation
in lithium battery separators creating value for customers through high-quality products and professional services. As a core battery material
lithium battery separators directly impact battery capacity cycle life and safety. Leading downstream enterprises impose extremely high
requirements on indicators such as the uniformity of separator micro-pores and product consistency and suppliers must undergo rigorous and
long-term system validation. The Company has obtained certification from most Chinese and foreign mainstream battery manufacturers
successfully entering the overseas high-end power battery supply chain with its product quality widely recognized. Concurrently the
Company continues to advance new product R&D and forward-looking technical reserve. With a comprehensive product portfolio we are
able to efficiently meet customers’ customized and various demands.
4. R&D advantage
The Company has established a R&D team with a sound system through years of accumulation. Our R&D scope covers separator and
coating equipment base film preparation process improvement of raw & auxiliary materials coating process slurry formula recovery and
energy saving technologies as well as multiple forward-looking technical reserve projects. As of December 31 2025 the Company has made
rich achievements in improving production efficiency enhancing quality and developing new products. The Company now has 725 effective
patents (including 46 international patents) and 342 ongoing patent applications (including 92 international patent applications). In addition
our R&D team can not only customize the development of a variety of new products for downstream customers but also collaborate with
downstream customers for innovation to meet diverse application requirements. At the same time the Company continues to monitor industry
technology trends and implements forward-looking R&D deployment in line with market directions having already established technological
reserves in fields related to semi-solid and all-solid state battery materials.
5. Talent advantage
The lithium battery separator industry is a relatively new technology-intensive sector that emerged relatively late resulting in a general
shortage of specialized talent across the industry. Building on years of talent accumulation in related thin-film fields the Company has
established a comprehensive talent incentive mechanism. We recruit high-caliber professionals globally and have assembled a core technical
team with an international perspective. At the same time the Company places great emphasis on the development and optimization of its
workforce. We continuously recruit high-caliber talent across various fields refine the division of responsibilities and implement specialized
management. This effectively enhances organizational synergy and decision-making efficiency providing robust talent and management
support for the Company’s long-term development and global expansion. Through sustained development the Company has established a
comprehensive pipeline of professional talent in areas such as R&D production management quality control market expansion and
equipment operation and maintenance. These teams work in concert to help the Company maintain its leading international competitiveness.
6. Market and customer resource advantages
During the Reporting Period the Company continued to maintain its leading position in the wet-process lithium battery separator market.We have successfully entered the supply chain systems of the world’s mainstream lithium battery manufacturers covering leading domestic
enterprises such as CATL BYD EVE CALB Gotion High-tech and Cornex as well as international battery giants and major overseas
automotive manufacturers including Panasonic LGES ACC and Ultium Cells. While key major clients provide the Company with stable
substantial orders the Company also engages in deep cooperation and close coordination with downstream clients. Through continuous and
in-depth technical exchanges we accurately identify and efficiently respond to client needs providing tailored products and professional
services. Furthermore we effectively align market demand with our strengths in scale cost efficiency and R&D innovation thereby creating
a virtuous cycle of development. As the industry continues to grow the Company’s global production capacity is gradually released and its
technical capabilities are continuously enhanced the Company will achieve synergistic growth and mutual development with its key clients.IV. Analysis on Main Businesses
1. Overview
The Company has consistently focused on its main business. During the Reporting Period our core lithium battery separator business
saw significant year-on-year growth while businesses such as aseptic packaging and BOPP film maintained steady growth showing a
152025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
positive overall business trend. During the Reporting Period the Company achieved operating revenue of RMB13.633 billion with a year-on-
year increase of 34.13% and a net profit attributable to shareholders of the listed company of RMB143 million marking a return to
profitability.
162025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
The Company’s strategic core product is lithium battery separator. During the Reporting Period the operating revenue from this product
accounted for 85.31% of the Company’s total operating revenue. In recent years amidst intensifying industry competition and overall profit
pressures in the lithium battery separator industry the Company has actively adjusted its market strategies to consolidate and expand its
market share. We have continued to strengthen market expansion both domestically and internationally while optimizing our product mix.Consequently revenue from the Company’s overseas operations has shown steady growth year-on-year and the proportion of coating film
products-which generally command higher value-added margins-has further increased compared to last year. During the Reporting Period the
operating revenue from lithium battery separator products reached RMB11.63 billion representing a significant year-on-year increase of
40.89%; sales volume reached 12.84 billion square meters up 45.50% year-on-year. According to data from GGII and EV Tank the
Company’s market share for lithium battery separators remains the highest in the industry. Furthermore benefiting from an improved industry
supply-demand situation coupled with the Company’s multi-pronged approach of expanding global market development optimizing product
mix and strengthening internal management and cost control the gross margin for the Company’s lithium battery separator products
improved overall during the Reporting Period rising by 10.62 percentage points year-on-year resulting in a significant increase in the overall
gross margin level.In terms of R&D and innovation the Company has consistently placed a high priority on these areas and maintained a significant level of
investment continuously iterating and upgrading existing products while developing new ones. Focusing on base film innovation while
enhancing the safety and performance metrics of separators the Company launched several new products during the Reporting Period such as:
the high-safety X-series base films which utilize molecular chain modification technology to raise the rupture temperature from 150°C in
traditional separators to 230°C while reducing the rupture area by 60% thereby providing a more robust safeguard for lithium battery safety;
the high-wetting I-series base films which utilize inter-facial wetting entropy regulation technology to enhance the separator’s wetting value
and ionic conductivity resulting in a significant improvement in battery charging speed and meeting the growing demand for fast charging;
the new generation of flame-retardant separators preventing combustion under open flame using the Company’s proprietary flame-retardant
formula and processes effectively enhancing cell energy density and battery lifespan by reducing the coating layer density and moisture
content thereby achieving simultaneous improvements in safety and performance; the cold-pressed high-adhesion separator products with
low energy consumption and high efficiency resolving the industry’s challenges associated with high hot-pressing temperatures; and the
semi-solid state coating separator products significantly reducing electrolyte consumption and markedly improving lithium-ion transport
efficiency. The Company has also launched its performance-leading second-generation 5μm high-strength base film product; with its ultra-
thin high-strength characteristics it reduces the volume proportion of inactive materials within the battery thereby increasing energy storage
capacity. Furthermore the Company maintains a constant focus on and exploration of forward-looking technologies having proactively
established a presence in the field of key materials for solid-state batteries. During the Reporting Period the Company’s 10-ton-scale pilot
production line for sulfide solid-state electrolytes was successfully commissioned establishing a continuous film formation process. The
Company’s ultra-pure lithium sulfide sulfide electrolytes and sulfide electrolyte membranes have achieved breakthroughs in core metrics
such as purity conductivity particle size control and strength placing them at the forefront of the industry.In terms of client partnerships the Company has established a high-quality client base encompassing leading domestic and international
lithium battery manufacturers and automotive manufacturers with stable cooperative relationships. During the Reporting Period the
Company also signed long-term cooperation agreements or strategic partnership agreements with several major domestic and international
lithium battery manufacturers including LGES and ARKEMA as well as leading automotive manufacturers. This has further strengthened
the Company’s deep ties with high-quality international clients and increased its market share in the mid-to-high-end separator market.In terms of sustainable development the Company is committed to building core competitiveness in low-carbon and environmental
protection. During the Reporting Period the Company’s lithium battery separator business segment completed several technical renovation
projects aimed at energy conservation and consumption reduction achieving significant results in energy saving and carbon reduction. The
Company actively established a clean energy supply system by procuring green electricity through partnerships with major green electricity
suppliers and purchasing green certificates to offset carbon emissions while vigorously promoting the construction of distributed photovoltaic
power generation projects. By 2025 the proportion of green electricity used at the Company’s domestic production bases had reached 100%.Thanks to our advanced green development philosophy and efficient production and operational management we currently operate two
national-level green factories five provincial-level green factories and one municipal-level green factory. The Company is also continuing to
encourage several subsidiaries to pursue green factory and near-zero carbon factory certifications. The Company’s MSCI ESG rating has been
maintained at “A” for three consecutive years while its Wind ESG rating successfully rose to “AA” during the Reporting Period.In terms of digital transformation during the Reporting Period the Company introduced the AI-powered intelligent monitoring and
grading systems Customer Relationship Management (CRM) system Project Management System (PMS) contract management and human
resources management system. We have also continued to optimize core management systems such as the Enterprise Resource Planning (ERP)
system Manufacturing Execution System (MES) Quality Management System (QMS) Warehouse Management System (WMS) and
Business Intelligence (BI) analysis system thereby establishing a comprehensive digital management system covering operations R&D
manufacturing and warehousing. Leveraging Programmable Logic Controller (PLC) and Supervisory Control and Data Acquisition (SCADA)
technologies the Company has achieved 100% connectivity and data collection for all equipment. Through real-time monitoring and analysis
of equipment operating status and key performance indicators in the central control room the Company has strengthened and enhanced multi-
site collaboration efficiency and technological innovation capabilities accelerated the digital and intelligent upgrading of separator
manufacturing and driven a shift in operations from transactional tasks to data-driven decision-making.
172025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2. Revenue and cost
(1) Breakdown of operating revenue
Unit: RMB
2025 2024 Year-on-year increase
Amount Proportion inoperating revenue Amount
Proportion in or decrease
operating revenue
Total operating revenue 13632727136.01 100% 10163655793.70 100% 34.13%
By industry
Manufacturing 13274496027.30 97.37% 9815794907.87 96.58% 35.24%
Other business 358231108.71 2.63% 347860885.83 3.42% 2.98%
By product
BOPP film
568339572.294.17%565613743.825.57%0.48%
Lithium battery separator 11629830053.43 85.31% 8254655982.64 81.22% 40.89%
Cigarette label 2018322.00 0.01% 14865512.42 0.15% -86.42%
Aseptic packaging 968736188.13 7.11% 865382993.75 8.51% 11.94%
Specialty paper 30342231.61 0.22% 75937714.53 0.75% -60.04%
Other product 75229659.84 0.55% 39338960.71 0.39% 91.23%
Other business 358231108.71 2.63% 347860885.83 3.42% 2.98%
By region
Southwest China 3218308322.11 23.61% 1360528831.04 13.39% 136.55%
East China 5732862218.53 42.05% 3627958348.90 35.70% 58.02%
North China 327144086.35 2.40% 182479840.79 1.80% 79.28%
South Central China 1870711049.08 13.72% 2727132318.26 26.83% -31.40%
Northwest China 174363349.17 1.28% 28108418.95 0.28% 520.32%
Northeast China 20594127.63 0.15% 24173501.59 0.24% -14.81%
Overseas regions 2288743983.14 16.79% 2213274534.17 21.78% 3.41%
(2) Industries products regions and sales models that account for more than 10% of the Company’s operating revenue or
operating profit
□ Applicable□Not applicable
The Company shall comply with the disclosure requirements for the chemical industry set forth in the Self-Regulatory Guidelines No. 3
for Companies Listed on Shenzhen Stock Exchange – Industry Information Disclosure Unit: RMB
Year-on-year Year-on-year
increase or Year-on-year increase
Operating revenue Operating cost increase orGross margin decrease in or decrease in decrease in gross
operating revenue operating cost margin
By industry
Manufacturing 13274496027.30 10926185433.75 17.69% 35.24% 21.72% 9.14%
By product
Lithium battery
separator 11629830053.43 9535243814.83 18.01% 40.89% 24.73% 10.62%
Aseptic packaging 968736188.13 750605568.94 22.52% 11.94% 13.24% -0.89%
By region
Southwest China 3218308322.11 2682631349.03 16.64% 136.55% 122.45% 5.28%
East China 5732862218.53 4749570989.32 17.15% 58.02% 35.83% 13.53%
South Central China 1870711049.08 1707406343.10 8.73% -31.40% -38.90% 11.21%
Overseas regions 2288743983.14 1488329906.96 34.97% 3.41% 9.46% -3.60%
Under the circumstances that the statistic specifications for the Company’s data on main business were adjusted during the Reporting Period the
Company’s data on main business of this past year is calculated based on the adjusted statistic specifications at the end of the Reporting Period.□Applicable □Not applicable
Unit: RMB
182025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Movement in sales
Product name Output Sales Revenue achieved price during the Reason for change
Reporting Period
Lithium battery 11.824 billion m2 12.840 billion m2 The market supplyseparator 11629830053.43 The downward trend and demand
narrowed and balance improved
gradually stabilized during the
Reporting Period
Operating revenue or net profit arising from offshore operations accounted for 10% or above of the Company’s audited operating revenue or net profit in
the most recent fiscal year
□Yes □No
Name of overseas Details of the commencement Impact of tax policy on overseas business duringbusiness Company’s responsethe Reporting Period
Lithium battery Sales of lithium battery separator There was no material change in tax policy Continuously exploring overseas markets to
separator products to overseas customers during the Reporting Period as compared with increase market sharethrough direct sales the same period last year
(3) Whether the Company’s revenue from the sale of physical products is higher than the revenue from service charges
□ Yes □No
Year-on-year
Industry category Item Unit 2025 2024
increase or decrease
Sales m2 12840188618.78 8824704621.61 45.50%
Lithium battery
Output m2
separator 11824141482.70
9280478278.1727.41%
Inventory m2 1408773368.75 2424820504.84 -41.90%
Sales Ton 61409.38 57550.32 6.71%
BOPP film Output Ton 60923.31 57190.25 6.53%
Inventory Ton 5369.45 5855.52 -8.30%
Sales 10 000 boxes 3.36 7.08 -52.54%
Cigarette label Output 10 000 boxes 2.72 6.94 -60.81%
Inventory 10 000 boxes 0.17 0.81 -78.57%
Sales 10 000 524916.09 463121.97 13.34%
Aseptic packaging Output 10 000 558515.77 467287.44 19.52%
Inventory 10 000 76225.11 42625.42 78.83%
Specialty paper Sales Ton 4868.26 5423.25 -10.23%
Output Ton 5051.80 4935.95 2.35%
Inventory Ton 1482.69 1299.15 14.13%
Reasons for a year-on-year change of more than 30% in the relevant data
□Applicable □Not applicable
* In 2025 the sales and inventory of lithium battery separator products fluctuated significantly mainly due to the Company’s expansion of domestic and
overseas markets improved market supply and demand conditions and increased sales;
* The sales output and inventory of cigaret te labels decreased significantly due to business reduction;
* The significant fluctuation in inventory of aseptic packaging products was mainly attributable to advance stocking for the Spring Festival as requested
by customers.
(4) Execution of material sales contracts and material procurement contracts signed by the Company as of the Reporting Period
□Applicable □Not applicable
192025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(5) Breakdown of operating cost
Product category
Unit: RMB
2025 2024 Year-on- year
Product
Item Percentage of the Percentage of the increase orcategory Amount Amount
operating cost operating cost decrease
Raw material 4466353785.55 46.84% 3520191153.08 46.05% 26.88%
Labor 527000391.23 5.53% 501436242.83 6.56% 5.10%
Lithium
Manufacturing
battery 2691310776.38 28.22% 1992370456.00 26.06% 35.08%
cost
separator
Energy and
1850578861.6619.41%1630540708.4221.33%13.49%
power
Raw material 437912262.04 86.04% 420713716.67 85.15% 4.09%
Labor 23368284.59 4.59% 25997717.76 5.26% -10.11%
Manufacturing
BOPP film 26838243.03 5.27% 27229894.23 5.51% -1.44%
cost
Energy and 20816396.58 4.09% 20154896.35 4.08% 3.28%
power
Raw material 192067.31 6.85% 8045520.34 37.55% -97.61%
Labor 1433438.45 51.14% 3364475.30 15.70% -57.39%
Cigarette Manufacturing
1028494.8036.69%9645711.9345.02%-89.34%
label cost
Energy and
149145.065.32%368652.551.72%-59.54%
power
Raw material 658649739.22 87.75% 587265769.36 88.60% 12.16%
Labor 48801404.37 6.50% 43244970.96 6.52% 12.85%
Aseptic Manufacturing
31807365.284.24%21857030.863.30%45.52%
packaging cost
Energy and 11347060.06 1.51% 10468097.63 1.58% 8.40%
power
Raw material 22363351.79 81.80% 58248137.17 89.38% -61.61%
Labor 2786861.43 10.19% 2406303.96 3.69% 15.82%
Specialty Manufacturing
1198674.584.38%3486536.325.35%-65.62%
paper cost
Energy and
990580.103.62%1026611.861.58%-3.51%
power
Raw material 53225282.70 52.56% 34925903.04 39.64% 52.39%
Labor 6285786.28 6.21% 9315047.16 10.57% -32.52%
Other
Manufacturing
products 36677698.30 36.22% 38111439.12 43.25% -3.76%
cost
Energy and
power 5069482.97 5.01% 5765567.52 6.54% -12.07%
202025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Explanations:
* “Other products” refer to those in the “Breakdown of operating revenue” and “Breakdown of operating cost” in Section 3 of this report mainly
include holographic hot stamping foils film products packaging films for wrapping by hand aluminum laminated films water treatment
membranes other miscellaneous products and substandard products. These products account for a small volume of business and the percentage of
the sales of such products in the total sales is low. Thus such products belong to the category of other products of main businesses.* “Other businesses” refer to in the “Breakdown of operating revenue” in Section 3 of this report mainly refers to the Company’s revenue
from the sale of materials leased assets and the sale of leftover bits and pieces. Other businesses do not belong to the category of the
Company’s main businesses.
(6) Whether the scope of the consolidated financial statements changed during the Reporting Period
□ Yes □No
During the Reporting Period compared to the previous period the Company added 2 new entities into and eliminated 1 entity from its
consolidated financial statements. These 2 new entities are HONGCHUANG PACKAGING MALAYSIA SDN. BHD and Yuxi Energy
Frontier New Material Technology Co. Ltd.which wereestablishedduringtheReportingPeriod.Theeliminated1entityisYunnan Dexin Paper Co.Ltd. whichwascancelledduringtheReportingPeriod.
(7) Major changes or adjustments in the Company’s businesses products or services during the Reporting Period
□Applicable□Notapplicable
(8) Key customers and suppliers
The Company’s key customers
Total sales of the top five customers (RMB) 6257775322.12
Proportion of total sales of the top five customers over total sales for the year 45.90%
Proportion of sales of related parties in the top five customers over total sales for the year 0.00%
Information on the Company’s top five customers
No. Customer name Sales (RMB) Percentage of total sales for the year
1 Customer 1 2042571871.63 14.98%
2 Customer 2 1562938923.57 11.46%
3 Customer 3 1461094050.71 10.72%
4 Customer 4 602211706.00 4.42%
5 Customer 5 588958770.21 4.32%
Total -- 6257775322.12 45.90%
Other information on key customers
□Applicable □Not applicable
The Company had no affiliated relationship with the top five customers. The Company’s directors supervisors senior executives key technical
personnel shareholders holding more than 5% of shares actual controllers and other related parties do not directly or indirectly hold any equity in the top
five customers.
212025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
The Company’s key suppliers
Total sales of the top five suppliers (RMB) 2762265814.12
Proportion of total sales of the top five suppliers over total sales for the year 27.07%
Proportion of sales of related parties in the top five suppliers over total sales for the year
4.02%
Information on the Company’s top five suppliers
No. Supplier name Purchase amount (RMB) Percentage of the total purchase
amount for the year
1 Supplier 1 939127997.52 9.20%
2 Supplier 2 546849783.81 5.36%
3 Supplier 3 490158827.44 4.80%
4 Supplier 4 410534938.82 4.02%
5 Supplier 5 375594266.53 3.68%
Total -- 2762265814.12 27.07%
Other information on key suppliers
□Applicable□Notapplicable
In the table above except for Supplier 4 which is an affiliate controlled by the Company’s actual controller (with the procurement amount consolidated)
the Company has no affiliated relationship with the other suppliers in the top five. The Company’s directors supervisors senior executives key
technical personnel shareholders holding more than 5% of shares actual controllers and other related parties do not directly or indirectly hold any
equity in the other suppliers in the top five.During the Reporting Period the revenue generated from the Company’s trading business accounted for more than 10% of its operating revenue
□Applicable□Notapplicable
3. Expenses
Unit: RMB
2025 2024 Year-on-year increase Explanations of
or decrease material changes
Selling expenses 147404516.19 145263407.26 1.47%
Mainly due to the
Company’s efforts to
Administrative expenses 756451722.60 600164938.14 26.04% strengthen talent teambuilding and the resulting
increase in employee
compensation
Financial expenses 320247123.18 314263613.89 1.90%
R&D expenses 689619013.14 662843179.69 4.04%
222025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. Investment in R&D
□Applicable □Not applicable
Names of key R&D Project purposes Project progress Objectives to be Expected impacts on the Company’s
projects achieved future development
Improving the sales volume of the
Development of base films Company’s separator products
with high safety by using Volume orders from a top Japanese Mass production and Mass production and enhancing the stickiness of overseas
simultaneous biaxial customer shipment achieved shipment high- quality key customers and
stretching process establishing stable cooperative
relations
As of the disclosure date of
this Report the third-
generation development of Improving the competitiveness and
Ultra-thin high-strength Developing ultra-thin 5μm separator ultra-thin 5μm separator for Mass sales volume of the Company’s
separators for high energy density lithium battery high energy density lithium productionbattery has been completed. and shipment separator products and increasing the
The second-generation 5μm Company’s market share
product has been delivered in
small batches
With the aid of technological
Mass production of semi- Developing high energy density and Small batch production and innovation meeting the demand for
solid-state lithium-ion high safety lithium battery separator awaiting customer’s mass Mass production and lithium batteries with high energy
separators with an energy density of above 250 production notice shipment density and high safety enhancingwh/kg the Company’s technical leadership
and overall competitiveness
Design and development
of the third-generation Improving the competitiveness and
base films with low Reducing the shutdown temperature Mass production and Mass production and sales volume of the Company’s
shutdown temperature and and improving the safety of separators shipment achieved shipment separator products and increasing the
high safety Company’s market share
Addressing the high energy density Improving the competitiveness and
High puncture strength and and fast charging Mass production and Mass production and sales volume of the Company’s
high-porosity base film capabilities demand of terminal shipment achieved shipment separator products and increasing the
batteries Company’s market share
Development of high-
hardness long-cycle low-
expansion lithium battery Over 30% increment for the adhesive Improving the competitiveness and
separators (development strength between separator and Mass production and Mass production and sales volume of the Company’s
of high-adhesion strength cathode compared to the same-type shipment achieved shipment separator products and increasing the
at low-temperature separator Company’s market share
adhesive-coated
separators)
Development of low-cost
high-heat resistant lithium Improving ionic conductivity of Optimization of With the aid of technological
battery separators separator by 5% while maintaining Sample development in physical properties innovation enhancing the Company’s
(development of wet- high strength progress to improve product technical leadership and overall
process PP separators) cost performance competitiveness
Improving the ionic
conductivity by
Development of high- more than 5%
wettability and long-cycle Improving the electrolyte contact compared with With the aid of technological
lithium battery separators angle and conventional base innovation enhancing the Company’s
(development of high- wettability by 20% Market promotion stagecompared with the membranes technical leadership and overallwettability modified PE
separators) conventional base film
improving the competitiveness
multiplication rate
and cycling
performance
Development of ultra-thin Project initiated sample Replacing existing
0.5μm heat-resistant Improving battery energy density building phase and sample thick coating Improving product competitiveness
coating separators delivering to customers separators and increasing market share
Mass production of
Project initiated pilot trial technically
Flame-retardant separators Improving battery safety and customer validating distinctive products
Enhancing the Company’s technical
and independent leadership and overallphase supply to certain competitiveness
customers
Meeting
environmental
Fluorine-free functional Meeting environmental regulations Project initiated sample regulations Improving product competitiveness
coating separators providing high-adhesion performance building phase and sample replacing existingdelivering to customers PVDF coating and increasing market share
products
maintaining and
232025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
expanding market
share
Combining high-heat resistant and Project initiated sample Replacing existingThinned PMMA
mixed- coating separators high-adhesion performance while building phase sample
thick Improving product competitiveness
increasing battery energy density delivering to customers mixed- coating and increasing market shareseparators
Mass production and Comprehensively
Stable mass production and shipment improving product
shipment achieved volume continuously performance to reach the globallyDevelopment of
aluminum laminated films Expanding the Company’s business steadily ramping up; samples
improving product advanced level
passed testing by top performance and laying a good foundation for entering
overseas customers entering supply the high-end market and enhancingchains of high-end the Company’s overall
customers competitiveness
Production line
modification and Expanding separator
Basic development of Expanding the Company’s business
ultra-small pore size and increasing Small batch mass production
upgrading application scenarios and the
specialty filtration film separator application scenarios and shipment achieved
completed Company’s business scope and
mass production and enhancing the Company’s overall
shipment of roll competitiveness
samples achieved
Development of water Expanding separator
treatment film for Expanding the Company’s business
Operating model
and increasing Small batch mass production defined mass
application scenarios and the
municipal sewage and Company’s business scope and
industrial wastewater separator application scenarios
and shipment achieved production and
shipment achieved enhancing the Company’s overallcompetitiveness
Developing products with high
smoothness and high anti-static
properties to meet the adaptability We have developed
needs of high- speed printing a series of highly
machines smooth and anti-
R&D of highly smooth and high-speed packaging Pilot trial and customer static film products Enhancing the product
anti-static film machines effectively validating phase for food competitiveness of the Company in
improving the quality of pharmaceutical the market
prints and production cosmetics and other
efficiency and improving the quality packaging areas
of product
packaging
The initial heat-
sealing temperature
Meeting the core requirements of of this product is
Development of downstream industries for high-speed 20–30°C lower than Driving BOPP film transformation
low- heat- sealing- temp bag-making and the packaging of Formulation and process that of conventional from commodity to
erature heat-sensitive contents and resolving design completed; sample BOPP film making high- performance differentiated
high- heat- sealing- stre issues such as seal leaks and building and customer it suitable for high- high- added- value products and
ngth film products insufficient seal strength encountered validating phase speed packaging enhancing the Company’s marketin traditional high-speed film production competitiveness
packaging. lines while
providing high-heat-
sealing strength
Addressing the key challenges
associated with traditional liquid
condiment packaging—namely its
High barrier corrosion- fragility heavy weight and significant Filling equipment jointly Expanding into the condiment
resistant condiment environmental concerns regarding developed with Taolin packaging sector diversifying the
packing materials with Al- recycling and developing an Machinery; product
Mass production and
alternative packaging solution using completed and customer shipment
Company’s product range and further
PE enhancing the Company’s technical
paper complex structure materials with Al-PE cooperation established leadership to increase market sharepaper complex structure to meet high
barrier acid/alkali resistance and
green requirements
Replacing screw
Aseptic packaging with Replacing high- cost screw caps with caps for Broadening business areas enriching
guided drainage and puncture caps reducing Samples ready and market large- capacity product portfolio and improving the
anti- spring- back manufacturing costs and total usage promotion underway packaging materials competitiveness of the Company’s
secondary sealing function cost for B2B customers and reducing products
manufacturing costs
Information on the Company’s R&D personnel
2025 2024 Year-on-year change (%)
Number of R&D employees 514 533 -3.56%
R&D employees as a percentage 4.82% 5.60% -0.78%
242025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
of total employees
Educational background structure of R&D personnel
Bachelor’s degree and below 374 377 -0.80%
Master’s degree and above 140 156 -10.26%
Age structure of R&D personnel
Under 30 189 207 -8.70%
Aged 30-40 243 238 2.10%
Information on investment in R&D
2025 2024 Year-on-year change (%)
Amount of investment in R&D (RMB) 689619013.14 662843179.69 4.04%
Investment in R&D as a percentage of
5.06%6.52%-1.46%
operating revenue
Capitalized investment in R&D (RMB) 0.00 0.00 0.00%
Capitalized investment in R&D as a
0.00%0.00%0.00%
percentage of total investment in R&D
Reasons for and impacts of significant changes in the composition of the Company’s R&D personnel: □Applicable Not applicable
Reasons for significant year-on-year changes in investment in R&D as a percentage of operating revenue: □Applicable Not applicable
Reasons and justification for significant changes in the capitalization rate of investment in R&D: □Applicable Not applicable
5. Cash flow
Unit: RMB
2025 Year-on-year increase orItem 2024 decrease
Subtotal of cash inflows from operating activities 9957135649.35 9244960014.86 7.70%
Subtotal of cash outflows from operating activities 8813497841.38 8086710959.76 8.99%
Net cash flows from operating activities 1143637807.97 1158249055.10 -1.26%
Subtotal of cash inflows from investment activities 738718165.02 1379089146.09 -46.43%
Subtotal of cash outflows from investment activities 2091830611.61 4011404413.06 -47.85%
Net cash flows from investment activities -1353112446.59 -2632315266.97 48.60%
Subtotal of cash inflows from financing activities 12863011841.19 14092315361.77 -8.72%
Subtotal of cash outflows from financing activities 12130682112.67 13678642439.98 -11.32%
Net cash flows from financing activities 732329728.52 413672921.79 77.03%
Net increase in cash and cash equivalents 504687432.26 -1055573518.71
Main reasons for significant year-on-year changes in the relevant data
□Applicable□Notapplicable
(1) The significant year-on-year change in net cash flows from investment activities was mainly due to a significant decrease in cash payments for the
acquisition of fixed assets intangible assets and other long-term assets during the Reporting Period;
(2) The significant year-on-year change in net cash flows from financing activities was mainly due to no cash dividends paid during the Reporting Period;
(3) The significant year-on-year change in the net increase in cash and cash equivalents was mainly due to higher cash outflows during the Reporting Period.
Reasons for the marked difference between net cash flow from operating activities during the Reporting Period and net profit for the year
□Applicable□Notapplicable
The primary reason for the Company’s high net cash flows during the Reporting Period was that it operates in an asset-intensive industry with significant
non-cash expenditures such as depreciation and amortization resulting in cash flow from operating activities significantly higher than net profit. At the same
time the Company has optimized inventory turnover and intensified its efforts to reduce inventory levels achieving remarkable results in capital recovery.
252025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
V. Analysis of Non-main Businesses
□Applicable□Notapplicable
Unit: RMB
Percentage of Whether it is
Amount Explanation of reasons
total profit sustainable
Mainly due to gains from long-term equity investments
accounted for using the equity method gains from
Investment income -8853490.56 -2.02% No
derecognition of financial assets measured at amortized cost
and gains from wealth management products
Profit and loss from
0.000.00%
the fair value changes
Mainly due to the provision of impairment for certain
Asset impairment -298705532.41 -68.27% No
inventories in accordance with the principle of prudence
Mainly due to compensation income from breach of contract
Non-operating income 32688163.83 7.47% No
etc.Non-operating Mainly due to compensation expenses external donations and
49148177.89 11.23% No
expenses damage to non-current assets etc.VI. Analysis of Assets and Liabilities
1. Significant changes in the composition of assets
Unit: RMB
End of 2025 Beginning of 2025
Amount As a percentage of As a percentage of
Percentage Reasons for significant
total assets Amount total assets change changes
Monetary funds 2909444845.80 5.97% 2574141019.53 5.45% 0.52%
Accounts receivable 7411536913.76 15.20% 6102048232.51 12.93% 2.27% Mainly due to the increasein operating revenue
Contract assets 0.00% 0.00% 0.00%
Inventories 2279681961.17 4.68% 2963026794.82 6.28% -1.60%
Investment properties 8439623.86 0.02% 9051579.82 0.02% 0.00%
Long-term equity
investments 14100157.24 0.03% 0.00% 0.03%
Mainly due to production
lines at Hungarian factory
Fixed assets 28257962277.25 57.97% 22928507627.21 48.58% 9.39% and other bases reachingtheir usable conditions and
being transferred to fixed
assets
Mainly due to production
lines at Hungarian factory
Construction
in progress 1530563029.64 3.14% 5863245023.13 12.42% -9.28%
and other bases reaching
their usable condition and
being transferred to fixed
assets
Right-of-use assets 481651.57 0.00% 1752245.09 0.00% 0.00%
Short-term borrowings 7913611937.50 16.23% 8136897962.50 17.24% -1.01%
Contract liabilities 49593104.39 0.10% 45640854.47 0.10% 0.00%
Long-term borrowings 4992559411.66 10.24% 5070029111.30 10.74% -0.50%
Overseas assets accounted for a high percentage of the Company’s total assets
□Applicable□Notapplicable
262025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2. Assets and liabilities measured at fair value
□Applicable□Not applicable
Unit: RMB
Accumulated
Amount as at Profit and loss fair value Impairment Amount of
the beginning of from the fair value changes provided purchase during Amount of Amount as atItem theReporting changes during the recognized during the theReporting sale during
Other the end of the
Period Reporting Period through Reporting theReporting
changes
Period Reporting
equity Period Period Period
Financial assets
1. Other investment in -5000000.00
equity instruments 78000000.00 73000000.00
Sub-total of -5000000.00
financial assets 78000000.00 73000000.00
Others 408092531.80 1213767926.87 408092531.80 1213767926.87
Including: Bank
acceptance bills 408092531.80 1213767926.87 408092531.80 1213767926.87
-5000000.00
Total 486092531.80 1213767926.87 408092531.80 1286767926.87
Financial liabilities 0.00 0.00
Are there any significant changes in the measurement attributes of the Company’s major assets during the Reporting Period;
□Yes □No
3. Restriction of asset rights as of the end of the Reporting Period
Item
Book balance (RMB) Book value (RMB) Restriction type Reason for restriction
Monetary funds Margin and account deposits under bank667132525.30 667132525.30 Pledged regulation
Accounts receivable Pledged Pledged loan964697.30 964697.30
Other current assets 50149722.24 50149722.24 Pledged Margin
Fixed assets 2302569908.75 1876316484.36 Mortgaged Mortgaged loan mortgage-backed government subsidy
Intangible assets 161789525.59 149203471.43 Mortgaged Mortgaged loan
Total 3182606379.18 2743766900.63
272025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
VII. Analysis of Investments
1. Summary
□Applicable□Notapplicable
Total investment amount during the Total investment amount during the same
Reporting Period (RMB) period of last year (RMB) Change (%)
2068421367.254090743792.62-49.44%
2. Substantial equity investments obtained during the Reporting Period
□Applicable □Not applicable
3. Substantial ongoing non-equity investments during the Reporting Period
□Applicable □Not applicable
Unit: RMB
Whether it Industries Amount of Accumulated
Accumulate Reasons for
actual Estim d realized failing to make Disclo
Project name Investment
is an related to investment investment as Project ated revenue as planned progress sure
model investment the during the Source of fundsin fixed investment Reporting of the end of progress reve
at the end and generate date (if Disclosure index (if any)of the
assets project Period the Reporting nue estimated any)Period ReportingPeriod revenue
* Self-owned Please refer to the Announcement on Capital
Wuxi Energy Lithium and self-raised Increase by Shanghai Energy to WuxiNew Material
Industrial Base Self-construction Yes battery 0.00
2409502311. funds;* Raised 100.00% - 15578723. N/A July 2 Energy and Investment in Wuxi Energy New
Phase II separator
18 funds by way of 21 2019 Material Industrial Base Phase II - Lithium
non-public Battery Separator (Announcement No.:
offering in 2020 2019-076) disclosed at www.cninfo.com.cn
Please refer to the
Announcement on
Hungary Lithium Nove Construction of Wet-processLithium Self-construction Yes battery 385365592.21 3489355020 Self-owned and self- 100.00% - -49132159.75 N/A mber Lithium Battery SeparatorBattery separator .13 raised funds 11 Project inSeparator 2020 Hungary(Announcement No.:
2020-204) disclosed at
www.cninfo.com.cn
Chongqing
Energy High- * Self-owned
performance Lithium and self-raised Nove Please refer to the Announcement on Plan
Lithium Battery Self-construction Yes battery 69526677.47 1922456981 funds;* Raised.26 funds by way of 95.00% -
105452704.
80 N/A
mber for Non- public Offering of A Shares in
Micropore separator 23 2021(Announcement No.: 2021-188)
Separator non- public 2021 disclosed at www.cninfo.com.cn
(Phase II) offering in 2021
282025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Jiangsu Energy * Self-owned Please refer to the Announcement
EV Lithium
Battery Lithium
and self-raised on Plan for Non- public Offering
Self-construction Yes battery 55645305.39 3566298948.64 funds;* Raised 100.00% - -136517424.69 N/A November of A Shares inSeparator separator funds by way of 23 2021 2021(Announcement No.: 2021-
Industrialization non-public 188) disclosed at
Project offering in 2021 www.cninfo.com.cn
Please refer to the
Jiangsu Ruijie * Self-owned Announcement on
EV Lithium and self-raised Plan for Non-
Battery Aluminum public Offering of A
Aluminum Self-construction Yes 34899398.23 571824013.76
funds;* Raised
laminated film 52.00% - -101700583.50 N/A
November
funds by way of 23 2021
Shares in 2021
Laminated Film (Announcementnon-public
Industrialization No.: 2021-188)offering in 2021
Project disclosed atwww.cninfo.com.cn
Suzhou
GreenPower Please refer to the
Annual * Self-owned Announcement on
Production of Lithium and self-raised Plan for Non-
200 million battery public Offering of A
Square Meters Self-construction Yes separator 4699621.25 617117568.98
funds;* Raised 100.00% - 392701214.88 N/A November Shares in 2021
funds by way of 23 2021
(Coating films) (Announcementof Lithium-ion non-public No.: 2021-188)
Battery Coating offering in 2021 disclosed at
Separators www.cninfo.com.cn
Project
Yuxi Energy
lithium
battery
separator Announcement on the Progress
production on Yuxi Municipal People’s
line LithiumSelf-construction Yes battery 997361839.01 2002745632.91 Self-owned and 54.73% - -44770269.21 N/A March
Government Signing the
construction self-raised funds 302022 Strategic Cooperation
project with separator Framework Agreement
an annual (Announcement No.: 2022-044)
production disclosed at www.cninfo.com.cn
capacity
of1.6 billion
Dry-process Announcement on Gao’an
Lithium-ion Lithium Municipal People’s
Battery Self-construction Yes
battery 71102675.97 1153781407.46 Self-owned and 80.00% - -87443757.87 N/A Februaryself-raised funds 12021 Government in Jiangxiseparator (Dry-
Separator Films Province Signing the Contractprocess) for the Construction of Dry-
292025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
process Lithium-ion Battery
Separators Project
Project (Announcement No.: 2021-
018) disclosed at
www.cninfo.com.cn
Announcement on the Plan
Hubei Energy to Set Up a Joint Venture
EV Lithium with EVE to Construct a
Battery Lithium Self-owned and August Wet- Processing Lithium
Separator Self-construction Yes battery 136663802.50 2380453603.68 -self-raised funds 98.26% -130296613.57 N/A 32021 Battery Separator Project
Industrialization separator (Announcement No.: 2021-
Project 128) disclosed at
www.cninfo.com.cn
Announcement to Construct a
Lithium Lithium Battery Separator Film
USA Energy Self-construction Yes battery 212467610.02 535049768.16 Self-owned and May 5
separator self-raised funds
44.07% - -16416588.21 N/A Project in USA (Announcement
2022 No.: 2022-077) disclosed at
(Coating films) www.cninfo.com.cn
Announcement on
Anhui Energy Liquid
Hongchuang Packaging Box
Liquid Drinking
Packaging Box Lithium
Project Investment
and Cooperation
Project with an battery
annual Self-construction Yes separator 141018853.24 488531567.96
Self-owned and - December80.17% -19704250.46 N/A Agreement Entered
(Coating self-raised funds 21 2021production into by and between
capacity of12 films) Hongchuang
billion Packaging and
packaging boxes Jiangsu Jintan
Economic
Development Zone
Total -- -- -- 2108751375.29 19137116824.12 -- -- - -72249004.37 -- -- --
302025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. Financial asset investments
(1) Investments in securities
□Applicable□Not applicable
No investments in securities during the Reporting Period.
(2) Investments in derivatives
□Applicable□Notapplicable
No investments in derivatives during the Reporting Period
VIII. Sale of Significant Assets and Equity Interests
1. Sale of significant assets
□Applicable□Notapplicable
The Company did not sell any significant assets during the Reporting Period.
2. Sale of significant equity interests
□Applicable□Notapplicable
IX. Analysis of Major Companies in Which the Company Has a Stake or a Controlling
Stake
□Applicable□Not applicable
Major subsidiaries and companies in which the Company has a stake with each contributing to over 10% of the Company’s net profit
Unit: RMB
Company Company Main Registered Operating Operating
name Type Business Capital Total Assets Net Assets revenue Profit Net Profit
Lithium
Shanghai Subsidiary battery RMB3892108 4569870666 11467327367 12013331066.34 6.15 .70 70 112090688.46 -80248451.46Energy separator
Subsidiary Aseptic
Hongchuang packaging RMB1533568 1982467382.0 1245637331.4 1000596212.3Packaging 2 1 5 110480038.28 100531929.5800
Acquisition and disposal of subsidiaries during the Reporting Period
□Applicable□Notapplicable
Way of acquisition or disposal of subsidiaries Impact on the Company’s overall production
Company name during the Reporting Period operation and earnings
HONGCHUANG PACKAGINGMALAYSIA
SDN. BHD New establishment by investment No impact so far
Yuxi Energy Frontier New Material
Technology Co. Ltd. New establishment by investment No impact so far
Yunnan Dexin Paper Co. Ltd. Cancellation No impact
Explanation on major companies in which the Company has a stake or a controlling stake
Shanghai Energy is a holding subsidiary of the Company. Its major product is lithium battery separator and its major subsidiaries include
Zhuhai Energy Wuxi Energy Jiangxi Tonry Suzhou GreenPower Newmi Tech and Chongqing Energy. During the Reporting Period the
Company intensified market expansion and R&D efforts and adopted various measures to improve operational and management
efficiency. Coupled with an improved supply-demand structure in the separator market Shanghai Energy achieved an operating revenue of
RMB12.013 billion in 2025 representing a significant year-on-year increase of 39.42%.Hongchuang Packaging is a holding subsidiary of the Company. Its major product is aseptic packaging and its subsidiary is Anhui
Hongchuang. During the Reporting Period Hongchuang Packaging intensified market expansion. Following the completion and
commissioning of Anhui Hongchuang Hongchuang Packaging recorded an operating revenue of RMB1.001 billion in 2025 representing
a year-on-year increase of 13.83% with an operating profit of RMB110 million and a net profit of RMB101 million.
312025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
X. Structured Bodies Controlled by the Company
□Applicable□Notapplicable
XI. Outlook of the Company
1. Corporate strategy
The Company specializes in the lithium battery separator sector. With a vision to become a world-class materials researchdevelopment and production enterprise and a mission to “create exceptional quality and build a national brand" we are committed tocreating value for customers through high-quality products competitive pricing and professional services.To realize this vision and mission the Company consistently adopts a customer-centric and market-oriented approach actively
expanding into overseas markets to drive leapfrog growth in its business. Building on this foundation the Company is comprehensively
enhancing operational efficiency and overall competitiveness by establishing customer-oriented collaborative mechanisms strengthening
internal coordination to reduce costs and improve efficiency and advancing digital transformation.We will continue to focus on nine key dimensions including supply chain optimization and inventory management enhancement; labor
productivity improvement and organizational capacity building; equipment utilization rate improvement and cleaning efficiency
optimization; production efficiency improvement and process standardization; continuous improvement in slurry utilization; targeted
promotion of high-end products and organizational support; safety compliance and comprehensive risk prevention and control systems;
financial guidance and improvement in operational quality; and assurance of production capacity and thickness consistency providing
comprehensive support for high-quality development continuously consolidating and enhancing our global core competitiveness.
2. Operating plan for 2026
In 2026 the global new energy sector has been thriving. As a leader in the wet-process lithium battery separator sector the
Company will remain firmly committed to high-quality development comprehensively advancing its global expansion technological
innovation lean operations and sustainable development while steadily enhancing its core competitiveness and market position within the
industry.Capacity deployment and market expansion: The Company will steadily advance domestic and overseas capacity deployment and
project construction in accordance with established plans continuously expand domestic and international markets accelerate the pace of
global operations and further consolidate its leading position in the industry. The Company will comprehensively consider factors such as
downstream customer demand the Company’s financial position and gross margins of key products when planning capacity expansion
thereby providing high-quality and reliable separator supplies to global customers.Technological innovation and breakthroughs in high-end products: The Company will continue to increase investment in R&D
adhering to innovation-driven high-quality development. We will prioritize the specialized R&D market promotion and organizational
support for high-end separator products enhancing profitability and market share with new products and technologies. At the same
time the Company will closely monitor and actively lay out cutting-edge technologies accelerate the industrialization of semi-solid state
battery separator projects and continue R&D into key materials for all-solid-state batteries thereby continuously refining its strategic
layout in the new energy sector.Operational efficiency enhancement and sustainable development: The Company will continue to comprehensively enhance
operational efficiency across dimensions outlined in its established strategy including supply chain optimization organizational capacity
building equipment efficiency production efficiency process standardization slurry utilization safety compliance and risk management
financial and operational quality and the assurance of production capacity and thickness consistency. Furthermore the Company will
deepen energy-saving technical upgrades and green transformation continue to establish national and provincial-level green factories and
advance sustainable supply chain audits and carbon footprint management. While consolidating the foundations of internal
sustainability the Company aims to create favorable conditions for overseas market expansion and enhanced international competitiveness.Digital “intelligent manufacturing” of separators: Leveraging industrial big data artificial intelligence and intelligent control
technologies the Company has rolled out the Intelligent Control System for Multi-parameter Automatic Optimization of Base Film
Thickness across production bases in Wuxi Yuxi and Jingmen. By integrating raw material characteristics these systems enable process
forecasting and proactive risk management. Utilizing an AI algorithm platform we monitor production status in real time rapidly identify
anomalies and propose solutions. Leveraging knowledge graphs and big data technologies to uncover potential for process optimization
and through the implementation of on-line adaptive control of separator thickness and real-time quality inspection we effectively ensure
product consistency. Concurrently we are accelerating the implementation of AI visual inspection classification system at our Wuxi
Suzhou and Jingmen bases. Adopting a cloud-edge-device collaborative architecture we are building an AI-driven quality management
system encompassing system architecture intelligent algorithms and defect scenarios. By establishing a separator defect database and
utilizing technologies such as self-supervised pre-training ultra-lightweight model and low-contrast minor defect recognition we are
significantly enhancing defect classification accuracy recognition precision and inspection efficiency. We will elevate the level of
“intelligent manufacturing” for separators driving the Company’s high-quality development through new quality productive forces.Looking ahead the Company will leverage technological innovation digital empowerment green manufacturing and lean
management to vigorously develop new quality productive forces thereby continuously driving steady improvements in operational quality
and global core competitiveness.
3. Risks and countermeasures
(1) National regulatory risk relating to lithium battery separator business
In recent years various countries have intensively introduced industry policies to support the development of the new energy vehicle
industry. Benefiting from policy support the production value of the new energy vehicle industry quickly increased driving the rapid
development of the upstream lithium battery industry. If there are significant adverse changes in carbon emissions renewable energy
application and other relevant industry policies in the future the relevant policies may have a negative impact on the development of the
entire industry chain of new energy vehicle thus having an adverse impact on the upstream lithium battery separator industry and the
Company’s operation result.
322025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Countermeasures: By actively investing in the R&D of new applications of separator the Company will explore its new commercial
application market. At the same time the Company also invests resources to distribute new product projects to diversify business risks and
reduce the impact of policy fluctuations on the Company to a certain extent.
(2) Intensified market competition risk
In recent years the rapid growth of the new energy vehicle industry has significantly propelled the swift development of the upstream
lithium-ion battery separator industry. The promising outlook for in the lithium battery separator industry have attracted numerous Chinese
enterprises to enter this sector. Substantial capital investments have led to a rapid increase in production capacity. Currently competition in
the Chinese lithium-ion battery separator industry is becoming increasingly fierce. If the Company fails to accurately grasp the patterns of
industry development continuously innovate in technology and improve operational management to enhance product quality and reduce
production costs the increasingly competitive market will have an adverse impact on the Company’s performance.Countermeasures: The Company’s lithium-ion battery separator business has formed industry leading advantages in production
capacity R&D capacity product quality lean management customer and market and other aspects. The Company will continue to reduce
costs and increase efficiency improve the product quality and reduce the production costs through technological innovation intensify R&D
efforts to develop new products particularly those with high added value in response to market demands and trends thereby optimizing
our product mix and boosting profitability. Furthermore the Company will develop diversified customer groups in Chinese and overseas
markets to reduce the impact of Chinese and foreign market fluctuations on the Company’s performance.
(3) Risk of price fluctuation of major raw materials
The major raw materials used by the Company are subjected to price fluctuation to some extent especially polypropylene and
polyethylene whose prices are affected by the strong fluctuations of the international crude oil price. If the prices of the main raw materials
fluctuate significantly due to factors such as macroeconomic volatility and supply-demand conditions in the upstream and downstream
industries it may still have a certain impact on the Company’s gross margin and thus have an adverse effect on the Company’s
performance.Countermeasures: The Company has established long-term and stable cooperative relations with major suppliers established a
strategic purchase system as a whole and improved the bargaining power and reduced the cost of raw materials by means of large-scale
purchase. The Company will also reduce the proportion of raw material cost in production cost through technological innovation process
and equipment flow transformation production efficiency improvement and loss reduction.
(4) Risk relating to construction in progress
Current construction in progress includes Yuxi Energy USA Energy and other production bases which require a large amount of
capital. If the Company fails to raise funds in time complete and put into operation on schedule it will have a negative impact on the
subsequent production and operation and future profits.Countermeasures: The Company will continue to utilize equity financing bank loans and other diversified financing methods
strengthen cooperation with financial institutions and take various measures to ensure that the construction of the project has sufficient
sources of funds so as to ensure that the project can be completed smoothly and on schedule.
(5) Risk of technical leakage and loss of core personnel
An enterprise engaging in lithium battery separator requires advanced technology and process rich management experience and in-
depth understanding of the industry. To ensure the ability of constant innovation and the steady growth of business the Company should
have teams consisting of steady high-quality employees in scientific research management and sales. The Company constantly improves
the mechanisms for talent cultivation incentive promotion and restriction but there is still the possibility of the outflow of core employees
from the Company. In case of leakage of the core technology or the departure of core employees the production and operation of the
Company may be adversely affected.Countermeasures: The Company has implemented equity incentive to the core employees so that the employees can share the value of
the growth of the enterprise but also make the interests of the Company and the interests of employees deeply tied. The Company will
continue to increase the introduction and training of core technical personnel further maintain the stability of core employees continue to
maintain the company’s industry-leading technical level.
(6) Technological progress and product substitution risk
Lithium battery is mainly used for mobile phones computers new energy vehicles power station for energy storage and other
industries. After development for many years lithium batteries have been superior to traditional storage batteries such as nickel-cadmium
batteries nickel-metal hydride batteries lead-acid batteries in terms of volumetric specific energy gravimetric specific energy gravimetric
specific power cycle life charge/discharge efficiency etc. becoming a new energy industry with priority support and key development
from national governments. Although the lithium battery is the first choice for electronic products and pure electric vehicles and it will
take quite a long time to commercialize other emerging batteries such as all-solid-state batteries which are immature technically the market
demands for lithium batteries will be affected when emerging batteries such as all-solid-state batteries break the technical bottleneck
achieve mass production and are fully commercialized and the lithium battery separator in the industry chain will also be affected
adversely.Countermeasures: After years of R&D investment and technology accumulation the Company has strong capabilities in research on
new products and prospective technology reserves. The R&D Department of the Company continues to pay attention to the market
development trend and organizes a discussion group on film technology development develops project development plans for R&D and
actively develops other new products and technologies of functional film. In addition the Company will strengthen strategic cooperation
with well-known lithium battery manufacturers at home and abroad develops products together with customers in-depth cooperation
timely grasps the technical development trend and complies with the market demand.
(7) Risk of exchange rate fluctuation
The export sales volume of the Company increases constantly as the Company expands its business scale and gradually strengthens
the development in the international market. If the RMB exchange rate and the foreign exchange rate in the countries where our products
were sold fluctuate sharply in the future the results of the Company may be affected to some extent.Countermeasures: The Company will minimize the exchange risk with such measures as closely watching the exchange rate adjusting
the product prices in time based on the exchange rate to guarantee the product profit strengthening cost control and conducting the foreign
exchange derivatives trading for the purpose of hedging.
(8) Risks arising from changes in the international business and trade environment
332025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
The international business and trade environment landscape is fraught with such fluctuations ranging from shifts in the global
economic climate to policy adjustments. Nevertheless the Company’s globalization strategy remains paramount. However with increasing
complexity of the international competitive landscape major regions represented by Europe and America are progressively introducing
policies to support the development of Chinese manufacturing industries. Failing to swiftly align with these policies and execute our
globalization agenda could potentially impede the Company’s market penetration and overall performance.Countermeasures: While paying close attention to the relevant policies of Europe and America the Company will continuously pay
attention to the R&D efforts and technical improvement of products of various business systems improve product quality and production
efficiency constantly consolidate and strengthen its competitive advantages in technological R&D capacity scale product quality cost
efficiency and other aspects and reduce costs and increase efficiency on the premise of ensuring product quality. We will also continuously
expand market development in Chinese and overseas regions actively establish stable cooperative relations with global customers and
advance our global production capacity layout to meet the localized supply needs of our overseas customers.
(9) Management risk after expansion of business scale
With the development of the Company’s business the scale of the Company’s assets and business will be further expanded which
raises higher requirements for the management level of the Company. The management risk arises if the capabilities of the Company to
manage the production sales quality control and risks cannot meet the requirements for scale expansion and the systems for talent
cultivation organization pattern and management are not further improved.Countermeasures: The Company will continuously improve the management system ensure the efficient operation of production
quality control sales management and other business links establish an effective incentive system attract talents through the Company’s
broad development platform and effective incentive systems strengthen talent training and deliver talents for the Company’s development
through targeted training and training measures for employees and managers at all levels.XII. Reception of Visitors to the Company for Purposes of Research Communication
and Interview during the Reporting Period
□ Applicable □Not applicable
Reception Reception Type of Major Discussions
Date Reception Venue Mode Visitors Visitors and Materials
Index to Main
Provided Enquiry Information
The safety of solid-
state batteries the
Meeting room of CITIC Securities GF Fund Company's solid- Record of Investor
March 11 Shanghai Institutional Management HongShan state battery Relations Activities
2025 Energy on the fourth Field research investors SWS MU Fund Management deployment and on March 11 2025
floor Junhe Capital etc. solid-state battery disclosed at
application www.cninfo.com.cn
scenarios etc.Panorama Network Online Institutional Record of InvestorApril 23 “Investor RelationsInteractive Communication investors Investors participating in the
Presentation of the Relations Activities
2025 on network individual meeting via network platforms Company’s annual on April 23 2025Platform”
(http://ir.p5w. net) platform investors
results for 2024 disclosed at
www.cninfo.com.cn
Panorama Network Record of InvestorMay 6 “Investor RelationsOnline Institutional
Interactive Communication investors Investors participating in the
Presentation of the Relations Activities
2025 Company’s results on May 6 2025Platform” on network individual meeting via network platforms for Q1 2025 disclosed
(http://ir.p5w. net) platform investors at www.cninfo.com.cn
FIDELITY
INTERNATIONAL
INVESCO GLOBAL
ALLIANZ GLOBAL Introduction to the
INVESTORS JP MORGAN Company's solid-
Meeting room of ASSET MANAGEMENT state battery Record of Investor
May 19 Jiangsu Institutional SANDS CAPITAL deployment and Relations Activities
2025 Energy on the third Field research investors MANAGEMENT LLC progress all-solid on May 19 2025
floor HIMALAYA CAPITAL state electrolyte disclosed at
MANAGEMENT LLC preparation methods www.cninfo.com.cn
ROTHSCHILD & COASSET and performance
MANAGEMENT EUROPE metrics etc.SCS J.P. Morgan Chase &
Co. etc.CITIC Securities Southwest The Company's Record of Investor
June 25 China Construction Field research Institutional Securities Huatai-PB
patent deployment Relations Activities
2025 Building investors Investments Jiaxin Fund and advantages in on June 25 2025
Management etc. the sulfide products disclosed atetc. www.cninfo.com.cn
342025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Huatai-PB Investments
Morgan Stanley Huaxin Fund
Management SWS MU Fund The Company's
Meeting room of Management Zhong Ou Asset
production capacity Record of Investor
July 16 Hunan Institutional Management CITIC Asset
progress for sulfide Relations Activities
2025 Energy on the third Field research investors Management Guotai Asset
solid-state on July 16 2025
floor Management CICC Asset
electrolytes and the
Management Changjiang role of sulfide solid-
disclosed at
state electrolytes www.cninfo.com.cnSecurities Huachuang
Securities Sinolink Securities etc.etc.The Company's
Meeting room of current progress inoverseas expansion Record of Investor
July 17 Shanghai Energy
New Material Field research Institutional China Securities Changjiang overseas bases
Relations Activities
2025
Research Institute investors Pension Insurance etc. supplying customers
on July 17 2025
on the fourth floor and competitive
disclosed at
barriers to overseas www.cninfo.com.cn
market expansion.Bosera Funds Penghua Fund
Fullgoal Fund CITIC
Prudential Fund Management
CITIC Asset Management
China Universal Asset
Management GMG-SDIC Introduction to the
Capital Junhe Capital CITIC process flow for
Meeting room of Securities CICC China solid-state Record of Investor
August 1 Yuxi Field research Institutional Securities Changjiang
electrolyte materials Relations Activities
2025 Energy on the investors Securities Soochow application on August 1 2025
second floor Securities China Merchants characteristics by disclosed at
Securities Sinolink Securities model type and www.cninfo.com.cn
China Galaxy Securities development
Guolian Minsheng Securities pathways etc.Industrial Securities Caitong
Securities Huafu Securities
Zheshang Securities Sealand
Securities etc.Panorama Network Record of InvestorAugust “Investor RelationsOnline Institutional
Interactive Communication investors Investors participating in the
Presentation of the Relations Activities
19 2025 on network individual meeting via network platforms Company’s results on August 19 2025Platform” for H1 2025 disclosed at
(http://ir.p5w. net) platform investors www.cninfo.com.cn
Yinhua Fund Management The Company's
Ping An Asset Management capacity utilization Record of Investor
September Energy Technology rate product price Relations Activities
11 2025 Jinqiao New Energy Field research
Institutional BOCOM Schroder HSBC
investors Jintrust Fund Management trends and progress on September 11
Headquarters Sinolink Securities China in solid-state battery 2025 disclosed at
Securities etc. material deployment www.cninfo.com.cnetc.The Company's
Harvest Fund Bernstein advantages in
Administration Qatar Investment Authority overseas markets
Record of Investor
September Institutional Capital International Investors downstream industry Relations Activities
16 2025 Building of Field research
Shanghai Energy investors Munro lnvestment Carrhae demand and supply-
on September 16
Capital LLP Springs Capital demand situation in 2025 disclosed at
(Hong Kong) Ltd. etc. the separator www.cninfo.com.cn
industry etc.Huatai-PB Investments
Taiping Pension Insurance
AEGON-INDUSTRIAL
FUND HFT Investment The performance of
Energy Technology Management Maxwealth the Company's ultra-
Record of Investor
September
Jinqiao New Energy Field research Institutional Fund DeBon Fund Guotai thin separator
Relations Activities
262025
Headquarters investors Fund Amundi BOC Wealth products and the
on September 26
Management Rosefinch Fund advantages of solid- 2025 disclosed at
Boyu Capital Golden Trust state materials etc. www.cninfo.com.cn
Sinopac Fund Intewise
Capital Western Leadbank
FMC CICC Shenwan
352025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Hongyuan Securities
Guosheng Securities etc.China Southern Asset The Company's
Meeting room of Management Huatai separator technologyadvantages industry Record of Investor
October Yuxi Energy’s Institutional Securities T. Rowe Price supply-demand Relations Activities
17 2025 Administration Field research
Building on the investors
Point 72 China Orient
International Asset situation and the
on October 17 2025
disclosed at
second floor Management Symmetry impact of solid-statebatteries on www.cninfo.com.cnCapital etc. separators etc.Panorama Network Online Institutional Record of InvestorOctober “Investor Relations Communication investors Investors participating in the Presentation of the Relations Activities
30 2025 InteractivePlatform” on network individual meeting via network platforms
Company’s results on October 30 2025
for Q3 2025 disclosed at
(http://ir.p5w. net) platform investors www.cninfo.com.cn
E Fund Management CITIC The competitivelandscape and Record of Investor
November Energy Technology
Prudential Fund Management
Jinqiao New Energy Field research Institutional Penghua Fund Bank of
supply-demand Relations Activities
20 2025 outlook for the on November 20
Headquarters investors America UBS ChinaSecurities CITIC Securities separator industry 2025 disclosed at
etc. and the Company's www.cninfo.com.cnorder status etc.XIII. Development and Implementation of Market Value Management System and
Valuation Enhancement Plan
Whether the Company has a market value management system in place.□ Yes □No
Whether the Company has disclosed plans for valuation enhancement.□Yes□ No
The Company held the thirty-fifth meeting of the Fifth Board of Directors on December 27 2024 and considered and approved the Proposal
on the Formulation of the Market Value Management System. To strengthen the market value management of the Company further standardize the
Company’s market value management and safeguard the legitimate rights and interests of the Company investors and other stakeholders the
Company formulated the Market Value Management System. The purpose of the market value management is to achieve the dynamic equilibrium
between the Company’s market value and its intrinsic value by formulating correct development strategies perfecting corporate governance
improving operation and management fostering core competitiveness as well as through the tools of capital operation. Based on the systematic
scientific normative and normal principles the Company will focus on its main business and enhance its operational efficiency and profitability.In addition we will take into account our own actual situation and comprehensively utilize mergers and acquisitions and reorganization equity
incentives and employee stock ownership plans cash dividends investor relations management information disclosure share repurchases and
other legal and compliant methods to enhance the value of the Company’s investment.XIV. Implementation of the Action Plan for “Dual Improvements in Quality and Returns”
Whether the Company has disclosed the announcement on action plan for “Dual Improvements in Quality and Returns”.□ Yes □No
To safeguard the interests of all shareholders enhance investor confidence and promote the long-term healthy and sustainable development of
the Company we have formulated the action plan for “Dual Improvements in Quality and Returns.” Actions have been formulated in the plan
focusing on such aspects as “focusing on the main business and driving high-quality development with innovation” “consolidating competitiveadvantages and realizing globalization” “consolidating governance and improving standardized operation” “investor-oriented and valuing investorreturns” “improving information disclosure and adhering to an investor demand-oriented approach.” For details please refer to the Announcement
on the Action Plan for “Dual Improvements in Quality and Returns” (Announcement No. 2024-039) disclosed by the Company on February 27
2024 in the designated information disclosure media.During the Reporting Period the Company proactively advanced the implementation of the action plan for “Dual Improvements in Qualityand Returns”. In terms of production and operations the Company adhered to its established strategy by maintaining its lithium battery separator
business as its core focus continuously expanding into domestic and international markets and strengthening new product R&D to optimize its
product and customer portfolio thereby enhancing the Company’s profitability. During the reporting period the Company’s lithium battery
separator products maintained an industry-leading market share with both sales volume and revenue achieving significant year-over-year growth.Concurrently the Company continued its R&D efforts and launched several new separator products with superior performance and enhanced
safety during the reporting period. In terms of investor relations management the Company attaches importance to investor relations management.During the Reporting Period the Company strengthened its communication with investors by more frequent in-depth and targeted
communications. By multiple channels such as organizing investor on-site visits and investigations holding result briefings making response via
irm.cninfo.com.cn and answering investor hotline calls we proactively conveyed our long-term investment value to the market which increased
the information communication efficiency and transparency. We focus on investors’ expectations and suggestions and construct an ecology for
good interactions with investors with an aim to create long-term value for investors.
362025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 4 Corporate Governance Environment and Social
I. Basic Information of Corporate Governance
The Company strictly adheres to the requirements of laws regulations and normative documents such as the Company Law the Securities
Law the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange the Code of Corporate Governance for Listed Companies in
China and constantly optimizes the corporate governance structure refines the internal control system to promote the Company’s standardized and
efficient operation. During the Reporting Period the Company formulated the ESG Management System the Public Opinion Management Systemand the Information Disclosure Management System for Debt Financing Instruments of Non-Financial Enterprises” in accordance with the
Company Law the Securities Law the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange the Self-regulatory Guideline No. 1
for Listed Companies of the Shenzhen Stock Exchange – Standardized Operation of Companies Listed on the Main Board and other relevant laws
regulations and normative documents and taking into account the actual situation of the Company; and revised the Articles of Association the
Information Disclosure Management System the Code of Conduct for Controlling Shareholders and Actual Controllers Independent Director
System Rules of Procedures for General Meetings Rules of Procedure for Board Meetings the Regulations for the Implementation of Cumulative
Voting the System of Connected Transactions the Management System of Foreign Investments the Management System of Raised Funds the
Authorization Management System the External Guarantee System the Internal Control System and other relevant systems. During the Reporting
Period the Company held 10 General Meetings 16 Board meetings 9 meetings of the Supervisory Committee and 4 special meetings of
independent directors. The procedures for holding the meetings are legal and the resolutions are legal and effective.Were there any significant differences between the Company’s actual governance status and laws administrative regulations and the regulations
issued by CSRC on listed company governance
□Yes □No there was no difference between the Company’s actual governance status and laws administrative regulations and the regulations
issued by CSRC on listed company governance.II. Details of the Company’s Separation from the Controlling Shareholder and Actual
Controller with Respect to Corporate Assets Personnel Finance Organization Business
etc.The Company is independent of its shareholders in terms of business assets personnel institutions financial affairs etc. has an independent
and complete business system and market-oriented independent operation ability and has a complete supply production and sales system.
1. Assets integrity: The Company has independent and complete business assets that can be used for business activities. The Company has
complete sites facilities instruments and equipment trademarks patents etc. required for production independent of shareholders and other
related parties. The Company’s assets are strictly separated from the shareholders and actual controller and there is no case that the shareholders
and actual controller encroach on the Company’s assets.
2. Personnel independence: The General Manager Vice General Manager Chief Financial Officer Secretary of the Board and other senior
executives of the Company are all full- time working in the Company and receiving remuneration and there is no case that they hold any post other
than director or supervisor at the controlling shareholder actual controller and other enterprises under their control or hold any position in other
enterprises with the same or similar business with the Company. The Company’s financial personnel are not doing part-time job in the controlling
shareholders actual controllers and other enterprises under their control. The Company is completely independent in terms of social security and
salary.
3. Financial independence: The Company has set up an independent financial department and established an independent and complete
financial accounting system according to the current accounting standards and relevant laws and regulations which can help make financial
decisions independently. The Company has a standardized financial accounting system and financial management system. The Company has set up
an independent bank account and as an independent taxpayer has gone through tax registration with the tax bureau of Yuxi High-tech Zone. The
Company does not guarantee the debts of shareholders or other related parties with the Company’s assets interests or reputation. The Company has
complete control over all assets and there is no case that monetary funds or other assets are occupied by shareholders and damage the Company’s
interests.
4. Institutional independence: The Company has a production and operation place and organization independent of the controlling shareholder
and there is no mixed operation or joint office with the controlling shareholder. There is no interference of the controlling shareholder and any
other units or individuals in the Company’s organizational structure. In accordance with the requirements of the Company Law the Company has
established and improved the organizational structure system of the General Meeting the Board of Directors the Supervisory Committee and the
management and is completely independent of the affiliated enterprises in terms of institutional setting. The shareholder unit nominates directors
to participate in the management of the Company in accordance with the provisions of the Company Law and the Articles of Association and does
not directly interfere with the production and operation activities of the Company.
5. Business independence: The Company has an independent production supply and marketing system and independently carries out various
businesses. There is no case of relying on or entrusting shareholders or other related parties to sell products or relying on or entrusting
shareholders or other related parties to purchase raw materials. There is no horizontal competition with the controlling shareholder actual
controller and the enterprises under their control.III. Horizontal Competition
372025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
□Applicable□Not applicable
382025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
IV. Details on Directors and Senior Management
1. Basic information
Quantit
y of Quantity
Shares held at shares of shares Other Quantity of
Name Gender Age Title Service the beginning increase
decrease increased or
status Start date End date of the period d in the d in the decreased
shares held at Reason for share
current changes the end of the increase/decrease(share) current period (share) period (share)period
(share) (share)
Paul Xiaoming
Lee Male 68 Chairman Incumbent April 20 2011 March 22 2029 128443138 128443138
Li Xiaohua Male 64 Vice chairman andgeneral manager Incumbent April 20 2011 March 22 2029 68766089 11983790 80749879 Share repurchase
Zhai Jun Male 52 Director Incumbent August 7 2023 March 22 2029 0 0
Xiang Ming Male 63 Director Departure August 7 2023 March 23 2026 0 0
Repurchase of restricted shares
Mai Weihua Male 59 Director Departure November 22 2021 March 23 2026 143500 6000 137500 under 2024 Restricted Share
Incentive Plan for cancellation
Feng Jie Male 62 Director Departure January 4 2017 September 4 2025 82000 82000
Li Zhe Male 39 Independent Director Incumbent December 29 2023 March 22 2029 0 0
Pan Siming Male 49 Independent Director Incumbent March 24 2023 March 22 2029 0 0
Zhang Jing Female 65 Independent Director Incumbent March 24 2023 March 22 2029 0 0
Employee
Kang Wenting Female 39 Representative Departure April 8 2020 September 4 2025 0 0
Supervisor
Kang Wenting Female 39 EmployeeRepresentative Director Incumbent September 4 2025 March 22 2029 0 0
Repurchase of restricted shares
under 2022 Share Option and
Board Secretary and Restricted Share Incentive Plan
Yu Xue Female 39 Securities Affairs Departure November 4 2021 May 13 2025 242400 57600 184800 for cancellation repurchase of
Representative restricted shares under 2024
Restricted Share Incentive Plan
for cancellation
Yu Xue Female 39 Vice General Manager Departure November 4 2021 March 27 2026
Repurchase of restricted shares
Li Jian Male 48 Chief Financial Officer Departure September 30 2020 April 28 2025 236900 44200 60000 132700 under 2024 Restricted ShareIncentive Plan for cancellation
shareholding decrease
Bai Yunfei Male 42 Board Secretary Incumbent May 13 2025 March 22 2029 0 0
Li Xianglin has served as the
Company's Chief Financial
Li Xianglin Male 47 Chief Financial Officer Incumbent April 28 2025 March 22 2029 1900 Officer since April 28 2025; as ofthe end of the Reporting Period
the shares he held were those he
held prior to his appointment.Total -- -- -- -- -- -- 197914027 0 44200 12107390 209731917 --
392025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Whether there was any departure of Directors and senior management during the term of office during the Reporting Period
□ Yes □No
（1）On April 28 2025 Mr. Li Jian the Company’s former Chief Financial Officer submitted his resignation from the position of Chief Financial
Officer for personal reasons and simultaneously requested to resign from all other positions he held within the Company. Following his resignation Mr. Li
Jian no longer holds any position with the Company.
（2）On May 13 2025 Ms. Yu Xue the Company’s former Board Secretary and Securities Affairs Representative submitted her resignation from the
positions of Board Secretary and Securities Affairs Representative due to a change in her work arrangements. Following her resignation from the
aforementioned positions Ms. Yu Xue continues to serve as the Company’s Vice General Manager Chairman of the Company’s subsidiary Chairman of
Hubei Energy and Director of the Company’s subsidiary Jiangxi Ruijie; On March 27 2026 Ms. Yu Xue ceased to serve as the Company’s Vice General
Manager.
（3）On September 4 2025 Mr. Feng Jie the Company’s former director submitted his resignation from his positions as a director of the Board a
member of the Strategy Committee and a member of the Nomination Committee due to personal reasons. Following his resignation from the aforementioned
positions Mr. Feng Jie continued to serve as General Manager and Head of the Sales Department of the Company’s subsidiary Chengdu Hongta Plastic.Changes in Directors and senior management of the Company
□Applicable □Not applicable
Name Title Status Date Reason
Feng Jie Director Departure September 4 2025 Personal Reasons
Yu Xue Board Secretary Dismissal May 13 2025 Work Reassignment
Li Jian Chief Financial Officer Dismissal April 28 2025 Personal Reasons
Employee Representative September 4 2025 Work Reassignment
Kang Wenting Elected
Director
Bai Yunfei Board Secretary Appointment May 13 2025 Work Reassignment
Li Xianglin Chief Financial Officer Appointment April 28 2025 Work Reassignment
2. Positions Held
Professional background main working experience and main duties in the Company of current directors and senior executives of the Company
(I) Members of the Board of Directors
1. Paul Xiaoming Lee Chairman of the Company male born in 1958 American nationality with the right of residence in foreign country and master’s
degree. He joined Kunming Plastic Research Institute of China in 1982 acted as the Vice President from 1984 to 1989 graduated from the polymer material
discipline at the University of Massachusetts of America in December 1992 and served as the Manager of the Technical Department of Inteplast Corporation
in America from 1992 to 1995. Since April 1996 he has successively served as the Vice General Manager General Manager Vice Chairman and Chairman of
Hongta Plastic Chairman and General Manager of Dexin Paper and Chairman of Chengdu Hongta Plastic. Mr. Lee joined Innovative Color Printing as the
Chairman in 2006. He is currently the Chairman of Hongchuang Packaging the Chairman of Shanghai Energy the Chairman of Hongta Plastic the Chairman
of Jiangxi Enpo and the Chairman of the Company.
2. Li Xiaohua Vice Chairman of the Company male born in 1962 Chinese nationality with the right of residence in foreign country and master’s
degree. He graduated from the polymer material discipline at the University of Massachusetts of America in February 1993 and worked at World-Pak
Corporation in the US from 1993 to 1996. Since April 1996 he has successively served as the Vice General Manager and Vice Chairman of Hongta Plastic
the Vice Chairman of Dexin Paper and the General Manager and Vice Chairman of Chengdu Hongta Plastic and joined Innovative Color Printing as the
General Manager and Vice Chairman in 2006. He is currently the Director of Hongchuang Packaging the Vice Chairman of Shanghai Energy the Director of
Jiangxi Enpo and the General Manager and Vice Chairman of the Company.
3. Zhai Jun Director of the Company male born in 1974 Chinese nationality and master’s degree. He graduated from Wuhan University of Technology
majoring in Vehicle Engineering in June 2000 and served as project manager in State Development and Investment Corporation from April 2000 to January
2006. Mr. Zhai worked for Valeo Automotive Air Conditioning Hubei Co. Ltd. as a Director and Vice General Manager from January 2006 to March 2009;
he served as a project manager of State Development and Hi-tech Investment Corporation from March 2009 to July 2009; and he also serves as a Managing
Director of SDIC Investment Management Co. Ltd. from July 2009 to present. He is currently the Director of the Company.
4. Wang Xingguang Director of the Company male born in 1981 Chinese nationality without the right of permanent residence in foreign
countries and junior college degree. He served as Technical Section Chief at NEC Dongjin Electronic Technology Co. Ltd. from 2002 to 2008; he
served as Technical Manager at Nantong Tianfeng Electronic Material Co. Ltd. from 2010 to 2012; he served as Vice General Manager of Jiangsu Anreda
New Material Co. Ltd. from 2012 to 2017; he successively served as Assistant to the General Manager and Director of Technology R&D Department of
Suzhou Green Power and General Manager of Newmi Tech from July 2017 to May 2025. He is currently the Chairman of Newmi Tech Director and
Manager of Suzhou Green Power Manager of Yuxi Energy and Director and Vice General Manager of the Company.
5. Bai Yunfei Director of the Company male born in 1984 graduated from Northwest University of Political Science and Law with a master’s
degree in Law. He is a Certified Public Accountant and holds a Legal Professional Qualification Certificate. He successively served as Vice General
Manager (acting head) and General Manager of the Legal Compliance Department Consumer Rights Protection Department and Asset Preservation
Department of China Minsheng Bank Kunming Branch from May 2017 to January 2021. He successively served as Vice General Manager Secretary to
the Board of Directors and Director of QuakeSafe Technologies Co. Ltd. from April 2021 to December 2024. He served as Assistant to the Chairman of
the Company from December 2024 to May 2025. He is currently the Director and Secretary to the Board of Directors of the Company.
6. Kang Wenting Employee Representative Director of the Company born in 1987 Chinese nationality and bachelor’s degree. She served as the
Personnel Supervisor of Kunming Xinghe Spa Resort & Hotel from 2013 to 2014. From 2015 to 2019 she served as the Personnel Supervisor of the
Human Resources Department of the Company. From October 2019 to present she served as the director of the Operation Support Department and the
Administrative Department of the Company. From March 16 2020 to September 4 2025 she served as Employee Representative Supervisor of the
Company. She is currently the Employee Representative Director of the Company.
7. Li Zhe Independent Director of the Company male born in 1987 Chinese nationality without the right of permanent residence in foreign countries
and doctoral candidate. He is currently the professor of the School of Accounting the tutor of doctoral candidate the deputy director of the Finance
Department of Central University of Finance and Economics. He has been an independent director of Leyard Optoelectronic Co. Ltd. from January 2023 to
present. Mr. Li serves as an independent director of Genertec Kunming Machine Tool Co. Ltd. from July 2023 to present. He is currently an Independent
Director of the Company.
8. Pan Siming Independent Director of the Company male born in 1977 Chinese nationality and bachelor’s degree. He served as a financial analyst of
Huachen Automotive Group from July 2001 to December 2009. He served as financial manager of Zhejiang Longsheng Group Co. Ltd. from December 2009
to August 2012. Mr. Pan was appointed as the director of post-loan management of the small and medium-sized department of Minsheng Bank from August
402025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2012 to April 2016 and has been appointed as the director of post-investment management of Yang Yue Shanghai Investment Management Ltd. from April
2016 to present. He is currently an Independent Director of the Company.
9. Zhang Jing female born in 1961 Chinese nationality professor and doctoral tutor of Applied Physics in the College of Science of Donghua
University. She served as executive vice president of the College of Science of Donghua University and Secretary of the Party Committee of the College of
Science. She was a director of Shanghai Energy from 2016 to 2018. She was a director of the Plasma Science and Technology Committee of the CSTAM
from 2015 to 2020. Ms. Zhang has been a director of Shanghai Sunshine Esailchem Technology Corp. Ltd. since 2018. Ms. Zhang is an associate editor of
the journal Plasma Science and Technology from 2021 to present. She is currently an Independent Director of the Company.(II) Senior Management
1. Li Xiaohua male born in 1962 Chinese nationality with the right of residence in foreign country and master’s degree. He graduated from the
polymer material discipline at the University of Massachusetts in February 1993 and worked at World-Pak Corporation in the US from 1993 to 1996. Since
April 1996 he has successively served as the Vice General Manager and Vice Chairman of Hongta Plastic the Vice Chairman of Dexin Paper and the
General Manager and Vice Chairman of Chengdu Hongta Plastic. Joined Innovative Color Printing as the General Manager and Vice Chairman in 2006. He is
currently the Chairman of Hongchuang Packaging the Chairman of Shanghai Energy the Director of Jiangxi Enpo and the General Manager and the Vice
Chairman of the Company.
2. Wang Xingguang male born in 1981 Chinese nationality without the right of permanent residence in foreign countries and junior college degree.
He served as Technical Section Chief at NEC Dongjin Electronic Technology Co. Ltd. from 2002 to 2008; he served as Technical Manager at Nantong
Tianfeng Electronic Material Co. Ltd. from 2010 to 2012; he served as Vice General Manager of Jiangsu Anreda New Material Co. Ltd. from 2012 to 2017;
he successively served as Assistant to the General Manager and Director of Technology R&D Department of Suzhou Green Power and General Manager of
Newmi Tech from July 2017 to May 2025. He is currently the Chairman of Newmi Tech Director and Manager of Suzhou Green Power Manager of Yuxi
Energy and Director and Vice General Manager of the Company.
3. Bai Yunfei male born in 1984 graduated from Northwest University of Political Science and Law with a master’s degree in Law. He is a Certified
Public Accountant and holds a Legal Professional Qualification Certificate. He successively served as Vice General Manager (acting head) and General
Manager of the Legal Compliance Department Consumer Rights Protection Department and Asset Preservation Department of China Minsheng Bank
Kunming Branch from May 2017 to January 2021. He successively served as Vice General Manager Secretary to the Board of Directors and Director of
QuakeSafe Technologies Co. Ltd. from April 2021 to December 2024. He served as Assistant to the Chairman of the Company from December 2024 to May
2025. He is currently the Director and Secretary to the Board of Directors of the Company.
4. Li Xianglin male born 1979 Chinese nationality without the right of residence in foreign countries. He graduated from Hunan University majoring in
International Finance with a bachelor’s degree in Economics and is a non-practicing member of the Chinese Institute of Certified Public Accountants. From
July 2005 to May 2006 he served as Financial Manager of Dongjiang Environmental Company Limited. From June 2006 to April 2021 he successively
served as Financial Manager and Head of Finance for Country and Regional Departments at Huawei Technologies Co. Ltd. He joined Opple Lighting Co.Ltd. in April 2021 and served as Chief Financial Officer of Opple Lighting Co. Ltd. from June 2021 to October 2022. He joined Hundsun Technologies Inc. in
October 2022 and served as Chief Financial Officer of Hundsun Technologies Inc. from June 2023 to May 2024. From May 2024 to October 2024 he served
as Chief Financial Officer of AUX Group Co. Ltd. He is currently the Chief Financial Officer of the Company.The controlling shareholder and the actual controller simultaneously serve as the Chairman of the Board and the General Manager of the listed
company.□Applicable□Not applicable
Positions held at the shareholder’s entity
□Applicable □Not applicable
Receiving
Position held in
End remuneration and
Name of person Name of shareholder’s entity shareholder’s Start date
date allowance at
entity
shareholder’s entity
Li Xiaohua Yuxi Heyi Investment Co. Ltd. Chairman February 4 2024 No
Managing
Zhai Jun CMG-SDIC Capital Co. Ltd. October 31 2017 Yes
director
Positions held at other entities
□Applicable □Not applicable
Receiving
Positions in other End remuneration and
Name of person Other Entity Names Start date
organizations date allowance at other
entities
Paul Xiaoming Lee Shanghai Ruiji New Material Technology Co. Director November 19 2024 No
Shanghai Ruiji New Material Technology Co. Chairman January 20 2020 No
Zhuhai Chenyu New Material Technology Chairman April 19 2024 No
Co. Ltd.Zhuhai Hanchen New Material Technology Chairman November 15 2024 No
Li Xiaohua
Co. Ltd.Changshu Chenyu New Material Technology Chairman May 7 2024 No
Co. Ltd.JOT Automation Oy President August 2 2025 No
Professor Ph.D. May 15 2023 Yes
Advisor Deputy
Central University of Finance and Economics
Director of the Finance
Li Zhe
Division
Leyard Optoelectronic CO. LTD. Independent Director January 16 2023 Yes
Genertec Kunming Machine Tool Co. Ltd. Independent Director July 14 2023 Yes
412025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
SDIC Fund Managing director July 31 2009 Yes
Kelong New Energy Director December 13 2016 No
HXF Saw Co. Ltd. Director October 22 2012 No
Zhai Jun
China Intelligent Vehicle Innovation Platform Director November 30 2021 No
(Shanghai) Co. Ltd.Jingci Material Science Co. Ltd. Director June 11 2018 No
Professor Doctoral January 30 1989 Yes
College of Science Dong Hua University
Supervisor
Zhang Jing
Shanghai Sunshine Esailchem Technology December 11 2017 Yes
Director
Co. Ltd.Director of Post- April 11 2016 Yes
Shanghai Yangyue Investment Management
Pan Siming Investment
Co. Ltd.Management
Penalties to the current directors and senior management of the Company and those leaving office during the Reporting Period by securities regulatory
agencies in the past three years:
□Applicable□Not applicable
3. Remuneration for Directors and Senior Management
Decision-making procedures determination basis and actual payment of remuneration for directors and senior management
1. Decision-making procedure for remunerations of directors and senior management: The Remuneration & Evaluation Committee of the Board of
Directors of the Company studies and establishes the evaluation standard remuneration policy and plan for the directors General Manager and other senior
management members of the Company the Board of Directors reviews the remunerations for the senior management the General Meeting reviews the
remunerations of the directors and the Human Resources Department and the Finance Department of the Company assist the Remuneration & Evaluation
Committee of the Board of Directors to implement the remuneration plan for the directors and the senior management of the Company.
2. Basis for determining the remunerations of directors and senior management. The remunerations for the directors are determined in line with the actual
working status of the Company and in combination of the current market situation. The remunerations of the senior management are determined in line with
related provisions of the Company and in combination of the operating objectives of the Company in 2025 and specific job responsibilities the senior
management members of the Company take to complete the annual operating objectives.
3. Actual payment of remunerations to the directors and senior management. The remunerations of the Independent Directors are paid to personal
accounts based on the standard and schedule every quarter or every month. The remunerations of other people are paid based on respective evaluation result
on a monthly basis or at the time specified by the remuneration payment policy.Remuneration for Directors and senior management during the Reporting Period
Service Total pre-tax remunerations received Whether remuneration was received
Name Gender Age Title
status from the Company (RMB'0000) from related parties of the Company
Paul No
Xiaoming Male 68 Chairman Incumbent 204.28
Lee
Li Xiaohua Male 64 Director Incumbent 175.27 No
Mai Weihua Male 59 Director Departure 73.95 No
Feng Jie Male 62 Director Departure 16.6 No
Xiang Ming Male 63 Director Departure 0 No
Zhai Jun Male 52 Director Incumbent 0 No
Li Zhe Male 39 Independent Director Incumbent 10 No
Pan Siming Male 49 Independent Director Incumbent 10 No
Zhang Jing Female 65 Independent Director Incumbent 10 No
Kang Employee Representative No
Female 39 Incumbent 18.57
Wenting Director
Board Secretary and Vice No
Yu Xue Female 39 Departure 86.8
General Manager
Li Jian Male 48 Chief Financial Officer Departure 35.05 No
Bai Yunfei Male 42 Board Secretary Incumbent 60.86 No
Li Xianglin Male 47 Chief Financial Officer Incumbent 202.67 No
Total -- -- -- -- 904.05 --
Basis for evaluating the actual compensation received by all directors and senior Company policies and procedures regarding compensation
management at the end of the Reporting Period and performance evaluation.In 2025 the performance evaluation requirements did not
apply to the allowances received by independent directors;
Status of performance evaluation for all directors and senior management
non-independent directors and senior management completed
regarding actual compensation received as of the end of the Reporting Period
their performance evaluations in accordance with the
Company’s performance evaluation regulations.Deferred payment arrangements for the actual compensation received by all
No
directors and senior management as of the end of the Reporting Period
422025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Status of payment stoppage and clawback of the actual compensation received
No
by all directors and senior management as of the end of the Reporting Period
Additional notes: □Applicable□Not applicable
V. Performance of Directors during the Reporting Period
1. Details of directors’ attendance at board meetings and General Meetings
Details of directors’ attendance at board meetings and General Meetings
Meetings
Attendance by Whether non-
required to Entrusted Attendance in
Name of Attendance in way of Absence attendance in person
attend during presence General
director person (times) telecommunica (times) for two consecutive
the Reporting (times) Meetings
tion (times) times or not
Period (times)
Paul Xiaoming No
161600010
Lee
Li Xiaohua 16 15 1 0 0 No 10
Feng Jie 11 11 0 0 0 No 8
Mai Weihua 16 16 0 0 0 No 10
Zhai Jun 16 1 15 0 0 No 10
Xiang Ming 16 1 15 0 0 No 10
Kang Wenting 5 5 0 0 0 No 10
Li Zhe 16 0 16 0 0 No 10
Pan Siming 16 0 16 0 0 No 10
Zhang Jing 16 1 15 0 0 No 10
2. Details on directors’ objection to relevant matters
Whether Directors object to relevant matters of the Company
□Yes□No
During the Reporting Period no Directors objected to relevant matters of the Company.
3. Other details about the performance of directors
Whether advice to the Company from Directors adopted
□ Yes □No
Explanation on advice to the Company from Directors being adopted or not adopted
During the Reporting Period directors of the Company were diligent conscientious honest and self-disciplined and faithfully performed the responsibilities
as directors. On important matters such as corporate strategic planning project development profit distribution redemption of convertible bonds mergers and
acquisitions the establishment of internal control systems the selection and appointment of senior management and the selection of external audit firms the
Board of Directors carefully reviews management’s reports and actively provides professional deliberative opinions. The independent directors strictly adhere
to laws and regulations upholding a stance of independence objectivity and impartiality. Through participation in Board meetings and General Meetings as
well as by convening special meetings the independent directors conduct prudent deliberations on major related-party transactions financial assistance and
other matters. The independent directors also conduct on-site investigations into the Company’s operations engage in in-depth discussions with management
and other directors provide professional advice on the Company’s development and effectively fulfill their supervisory and advisory duties thereby
safeguarding the lawful rights and interests of the Company and all shareholders.
432025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
VI. Details on Specialized Committees under the Board of Directors during the Reporting Period
Number Important
Committee of Date Opinions Other Duty Details on
Name Members Meeting convened Meeting Content and Performance Objection
s Suggestions Information to MattersProposed
The meeting considered and approved the Proposal on the Company’s Compliance with the Relevant Laws and Regulations in
Relation to the Issuance of Shares for the Purchase of Assets and the Raising of Supporting Funds the Proposal on the Plan for
the Company’s Issuance of Shares for the Purchase of Assets and the Raising of Supporting Funds the Proposal on the Draft
Plan of Yunnan Energy New Material Co. Ltd. for the Issuance of Shares for the Purchase of Assets and the Raising of
Supporting Funds and Its Summary the Proposal on the Expected Non-constituting of a Connected Transaction Major Asset
Restructuring or Backdoor Listing in Respect of This Transaction the Proposal on the Signing by the Company and the
Counterparties of the Transaction Agreement with Conditions Precedent to Its Effectiveness the Proposal on This
Paul Transaction’s Compliance with Article 11 Article 43 and Article 44 of the Administrative Measures for Major Asset
Strategy XiaomingLee Restructuring of Listed Companies the Proposal on This Transaction’s Compliance with Article 4 of the Regulatory Guidelines
Commthittee of Li Xiaohua 1 December 8 for Listed Companies No. 9 — Regulatory Requirements for the Planning and Implementation of Major Asset Restructuring by Unanimouslythe 5 Board KangWenting 2025 Listed Companies the Proposal on the Absence of Any Circumstance under Article 11 of the Administrative Measures for the adopted None None
of Directors Li Zhe Pan Registration of Securities Issuance by Listed Companies Where Shares May Not Be Issued to Specific Targets in Respect of
Siming This Transaction the Proposal on the Absence of Any Circumstance under Article 12 of the Regulatory Guidelines for Listed
Companies No. 7 — Regulation of Abnormal Trading in Shares Relating to Major Asset Restructuring of Listed Companies and
Article 30 of the Self-Regulatory Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 8 — Major Asset
Restructuring in Respect of the Relevant Parties to This Transaction the Proposal on the Completeness and Compliance of the
Statutory Procedures Performed for This Transaction and the Validity of the Legal Documents Submitted the Proposal on the
Fluctuations in the Company’s Share Price Prior to the Initial Disclosure of This Transaction the Proposal on the Purchases
and Disposals of Assets within the 12 Months Prior to This Transaction and the Proposal on the Confidentiality Measures and
Confidentiality System Adopted for This Transaction
The meeting considered and approved the Proposal on the Company’s 2024 Annual Financial Report the Proposal on the
Provision for Asset Impairment for 2024 the Report on the Evaluation of the Performance of Duties by the Accounting Firm
April 3 2025 for 2024 and the Performance of Supervisory Duties the Proposal on the 2024 Internal Control Evaluation Report the UnanimouslyProposal on the 2024 Work Report of the Audit Department and the 2025 Work Plan the Proposal on the Renewal of the adopted None None
Appointment of RSM CHINA (Special General Partnership) as the Company’s Financial Audit Institution and Internal
Control Audit Institution for 2025 and the Proposal on the 2024 Financial Final Accounts Report of the Company
April 24
2025 The meeting considered and approved the Proposal on the Appointment of the Company’s Chief Financial Officer
Unanimously
adopted None None
April 25 The meeting considered and approved the Proposal on the Company’s Financial Report for the First Quarter of 2025 and the Unanimously
2025 Proposal on the 2025 First Quarterly Internal Audit Report of the Company adopted None None
August The meeting considered and approved the Proposal on the Interim Report for 2025 and the Proposal on the Interim Internal Unanimously
82025 Audit Report for 2025 adopted None None
Audit Li Zhe Xiang October
The meeting considered and approved the Proposal on the Company’s Financial Report for the Third Quarter of 2025 the
Committee of 252025 Proposal on the 2025 Third Quarterly Internal Audit Report of the Company and the Proposal on the Provision for Asset
Unanimously None None
the 5th Board Ming Pan 9 Impairment for the First Three Quarters of 2025
adopted
of Directors Siming The meeting considered and approved the Proposal on the Company’s Compliance with the Relevant Laws and Regulations inRelation to the Issuance of Shares for the Purchase of Assets and the Raising of Supporting Funds the Proposal on the Plan for
the Company’s Issuance of Shares for the Purchase of Assets and the Raising of Supporting Funds the Proposal on the Draft
Plan of Yunnan Energy New Material Co. Ltd. for the Issuance of Shares for the Purchase of Assets and the Raising of
Supporting Funds and Its Summary the Proposal on the Expected Non-constituting of a Connected Transaction Major Asset
Restructuring or Backdoor Listing in Respect of This Transaction the Proposal on the Signing by the Company and the
December Counterparties of the Transaction Agreement with Conditions Precedent to Its Effectiveness the Proposal on This Unanimously
82025 Transaction’s Compliance with Article 11 Article 43 and Article 44 of the Administrative Measures for Major Asset adopted None None
Restructuring of Listed Companies the Proposal on This Transaction’s Compliance with Article 4 of the Regulatory Guidelines
for Listed Companies No. 9 — Regulatory Requirements for the Planning and Implementation of Major Asset Restructuring by
Listed Companies the Proposal on the Absence of Any Circumstance under Article 11 of the Administrative Measures for the
Registration of Securities Issuance by Listed Companies Where Shares May Not Be Issued to Specific Targets in Respect of
This Transaction the Proposal on the Absence of Any Circumstance under Article 12 of the Regulatory Guidelines for Listed
Companies No. 7 —Regulation of Abnormal Trading in Shares Relating to Major Asset Restructuring of Listed Companies and
442025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Article 30 of the Self-Regulatory Guidelines for Listed Companies of the Shenzhen Stock Exchange No. 8 — Major Asset
Restructuring in Respect of the Relevant Parties to This Transaction the Proposal on the Completeness and Compliance of the
Statutory Procedures Performed for This Transaction and the Validity of the Legal Documents Submitted the Proposal on the
Fluctuations in the Company’s Share Price Prior to the Initial Disclosure of This Transaction the Proposal on the Purchases
and Disposals of Assets within the 12 Months Prior to This Transaction and the Proposal on the Confidentiality Measures and
Confidentiality System Adopted for This Transaction
December
122025 The meeting considered and approved the Proposal on the Selection and Appointment Plan for the Auditor
Unanimously
adopted None None
December
152025 The meeting considered and approved the Proposal on the Proposed Change of Auditor
Unanimously
adopted None None
The meeting considered and approved the Proposal on the Application to Banks for Comprehensive Credit Facilities for 2026
the Proposal on the Guarantee Limit for 2026 for Entities within the Scope of the Company’s Consolidated Financial
December Statements the Proposal on the Provision of Financial Assistance to the Company’s Controlled Subsidiaries and Their Unanimously
272025 Subsidiaries the Proposal on the Investment Limit for the Purchase of Bank Wealth Management Products with Part of the adopted None None
Company’s Idle Self-owned Funds the Proposal on the Carrying Out of Foreign Exchange Hedging Business and the
Proposal on the Repurchase and Cancellation of Part of the Restricted Shares under the 2024 Restricted Shares Incentive Plan
The meeting considered and approved the Proposal on the Company’s Directors’ Remuneration for 2024 and the Proposed
Remuneration Plan for 2025 the Proposal on the Company’s Senior Management’s Remuneration for 2024 and the Proposed
Remuneration Plan for 2025 the Proposal on the Non-fulfilment of the Exercise Conditions for the Third Exercise Period of the
Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan the Proposal on the Non-fulfilment of the
The April 32025 Unlocking Conditions for the Third Unlocking Period of the Restricted Shares under the 2022 Stock Option and Restricted
Unanimously None None
Remuneration Share Incentive Plan the Proposal on the Non-fulfilment of the Unlocking Conditions for the First Unlocking Period of the
adopted
and Appraisal Li Zhe Paul Initial Grant under the 2024 Restricted Share Incentive Plan the Proposal on the Repurchase and Cancellation of Part of the
Committee of Xiaoming Lee 4 Restricted Shares and the Proposal on the Cancellation of Part of the Stock Options under the 2022 Stock Option and
the 5th Board Zhang Jing Restricted Share Incentive Plan
of Directors May 102025 The meeting considered and approved the Proposal on the Repurchase and Cancellation of Part of the Restricted Shares Unanimouslyadopted None None
July 1 2025 The meeting considered and approved the Proposal on the Purchase of Directors’ Supervisors’ and Senior Management UnanimouslyLiability Insurance adopted None None
December 27 The meeting considered and approved the Proposal on the Repurchase and Cancellation of Part of the Restricted Shares under Unanimously
2025 the 2024 Restricted Share Incentive Plan. adopted None None
The April 24
Nomination Pan Siming 2025 The meeting considered and approved the Proposal on the Appointment of the Company’s Chief Financial Officer.Unanimously
adopted None None
Committee of Kang Wenting 2
the 5th Board Zhang Jing May 9 2025 The meeting considered and approved the Proposal on the Appointment of the Company’s Secretary to the Board and Unanimously
of Directors Securities Affairs Representative. adopted
None None
Environment February 9
Social and 2025 The meeting considered and approved the Proposal on the Adoption of the ESG Management System.Unanimously
adopted None None
Governance Li Xiaohua
(ESG)Committ Zhang Jing 2
ee of the 5th Zhai Jun April 3 2025 The meeting considered and approved the Proposal on the Company’s 2024 Environmental Social and Governance Report Unanimously
Board of (ESG Report). adopted
None None
Directors
VII. Details on the Work of the Audit Committee
Whether there were any risks in the Company according to the Audit Committee during the Reporting Period:□Yes □No The Audit Committee raised no objection to matters under supervision during the
Reporting Period.
452025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
VIII. Employees of the Company
1. Number of employees composition by profession and educational level
Incumbent staff of parent company at the end of the Reporting Period
(person) 17
Incumbent staff of major subsidiary at the end of the Reporting Period
(person) 9220
Total incumbent staff at the end of the Reporting Period (person) 10664
Total staff receiving remunerations in current period (person) 15571
Number of retirees whose expenses shall be borne by the parent
company and major subsidiaries (person) 0
Composition by profession
Category of profession Number of persons by profession
Production staff 8869
Sales people 146
Technician 514
Financial staff 121
Administrative staff 1014
Total 10664
Educational level
Category of educational level Number (person)
Doctor’s degree and above 18
Master’s degree 251
Bachelor’s degree 1353
Junior college 2589
Technical secondary school and below 6453
Total 10664
2. Remuneration policy
During the Reporting Period the Company observed the principles of distribution based on labor efficiency priority combining fairness and
sustainable development and on this basis the Company made detailed policies in respect of staff’s remuneration fringe benefit performance
evaluation and other aspects. The Company built a new salary architecture featuring a wide range and “hierarchical ladder” and
implemented the two-level salary distribution mechanism. At the same time the Company has linked the salary and bonus to the working
time at the Company output cost fixed staff of every position equipment maintenance and other factors and established a reasonable
evaluation mechanism. The Company has taken multifaceted measures including diversification of internal remuneration structure to motivate
employees and attract high-quality human resources. These measures have helped the Company improve the overall performance realized a
sustainable development of the Company and made the Company more competitive in the market. The Company has actively explored and
continuously deepened the income distribution system. In future the Company will make a moderate adjustment to the remuneration system
based on its performance market situation and industry trend.
3. Training plan
In 2025 the Company kept taking in excellent talents actively strengthened internal personnel training established a sound training
system and enhanced the professional development ability of employees. The Company has recorded a total of 9888 training events including 7073
internal training session and 2815 external training sessions and recorded a total of about 150000 class hours. These trainings have benefited a total
of about 170000 people. These trainings cover new employee training job skill training risk management training quality and safety management
training food safety training product knowledge training anti-fraud training general management training certification training safety training and
reserve talent training.
4. Labor outsourcing
□Applicable Not applicable
Total hours of labour outsourcing (hours) 1338698
Total remuneration paid for labour outsourcing (RMB) 32772375.00
IX. Profit Distribution and Conversion of Capital Reserve into Share Capital
Formulation execution or adjustments of profit distribution policy especially cash dividend policy during the Reporting Period
□Applicable□Notapplicable
During the Reporting Period in accordance with the Company Law the relevant laws regulations and normative documents including the China
Securities Regulatory Commission’s Transitional Arrangements for the Implementation of Ancillary Institutional Rules to the New Company Law and the
Guidelines for the Articles of Association of Listed Companies and taking into account the actual circumstances of the Company and its operational and
management needs the Company ceased to establish the Supervisory Committee and made corresponding amendments to the Articles of Association. The
provisions in the Articles of Association relating to profit distribution were also amended accordingly. For details of such amendments please refer to theannouncement of the Company dated August 19 2025 published on the designated information disclosure media titled “Announcement on theCancellation of the Supervisory Committee and the Amendments to the Articles of Association and the Handling of Industrial and Commercial ChangeRegistration” (Announcement No. 2025-137). According to the Articles of Association as amended the Company’s profit distribution policy is as follows:
1. Principles of profit distribution: The Company’s profit distribution policy shall focus on the reasonable investment return to investors take into
442025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
account the sustainable development of the Company reflect the strong awareness of rewarding shareholders and maintain continuity and stability.
2. Form of profit distribution proportion of cash dividends: The Company pays dividends in cash or by shares in a positive manner.
In particular the cash dividend policy target is low normal dividend plus extra dividend. Where the Company’s audited net profit is positive with no
significant investment plan or significant cash expenditure in a year the Company shall include the cash distribution in its profit distribution scheme for that
year. The annual cash dividend of the Company shall not be less than 20% of the distributable profit realized in the current year (excluding the undistributed
profit at the beginning of the year). Where available the Company may distribute interim cash dividends. If the Company’s revenue grows rapidly and the
Board of Directors considers that the stock price of the Company does not match the size of the Company’s share capital it may plan for dividend
distribution by stock while satisfying the above requirement for cash dividend distribution.
3. Interval for profit distribution: subject to the satisfaction of the cash dividend conditions stipulated in paragraph 4 below the Company shall
in principle pay cash dividends once a year and the Board of Directors of the Company may propose interim cash dividends based on the profit status
and capital demands of the Company. The Board of Directors of the Company shall taking into account the characteristics of the industry in which it
operates its development stage its own business model its profitability level and any plan of its significant capital expenditure distinguish the following
circumstances and propose a differentiated cash dividend policy in accordance with the procedures set forth in the Articles of Association of the Company:
(1) If the Company is in a maturity stage and has no plan of significant expenditure the proportion of cash dividends in the overall profit distribution
shall account for at least 80%;
(2) If the Company is in a maturity stage and has any plan of significant expenditure the proportion of cash dividends in the overall profit distribution
shall account for at least 40%;
(3) If the Company is in a growth stage and has any plan of significant expenditure the proportion of cash dividends in the overall profit distribution
shall account for at least 20%;
If it is difficult to distinguish the development stage of the Company and there are major capital expenditure arrangements the profit distribution may be
dealt with pursuant to the preceding item III.The proportion of cash dividend in this profit distribution shall be the cash dividend divided by the sum of cash dividend and share dividend.
4.Conditions for distributing cash dividends
(1) The remaining distributable profit of the Company is positive after the profit achieved in the current year is used for making up for the losses
of previous years and making provision for surplus reserves.
(2) The auditor of the Company issues a standard unqualified audit report on the financial statements of the Company in the current year.
(3) The Company has no significant investment plans or significant cash expenditure.
Significant investment plan or significant cash expenditure means that the accumulative expenditure of the Company for the proposed
external investment assets acquisition or equipment purchase within the next twelve months reaches or exceeds 30% of the Company’s latest audited
net assets and exceeds RMB300 million.
5.Conditions for distributing stock dividends: where the Company is well-run with rapid growth of operating revenue and net profit and the
Board of Directors believes that the Company is in the growth stage the level of the Company’s net assets is high and the stock price does not
match the size of the share capital it may propose a Plan for stock dividend distribution subject to the consideration and approval at the
General Meeting of the Company. Stock dividend may be distributed separately or in conjunction with cash dividend.
6. The Company can refrain from distributing profits when any of the following circumstances exist:
(1) The most recent year’s audit report was unqualified or unqualified with a paragraph on material uncertainties related to going concern;
(2) Data from the most recent financial statements showed a gearing ratio of more than 70%;
(3) Net cash flows from operating activities for the period were negative;
(4) Other cases in which profit distribution is not appropriate.
Special explanation on cash dividend distribution policy
Whether or not the policy is in compliance with the provisions of the Articles of Association
or requirements of the resolutions of the General Meeting of the Company: Yes
Whether or not the standard and proportion of dividends are clear and defined: Yes
Whether or not the relevant decision-making process and mechanism are complete: Yes
Whether or not the Independent Directors fully perform their duties and play their roles: Yes
452025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
In case of not conducting cash dividend distribution the Company shall disclose the As the lithium battery separator industry remains in a
specific reasons and the next steps to be adopted to enhance investor return level: period of profound adjustment and market
competition is intense the Company needs to make
overall funding arrangements to cope with industry
fluctuations and ensure stable operations. The
Company is currently at a critical stage of its global
expansion and continuous capital investment is
required for capacity expansion research and
development innovation and equipment upgrades. In
addition as the Company only turned losses into
profits during the current year and its profit scale
remains limited in order to promote the sustained and
healthy development of the Company enhance its
risk resistance capability and safeguard the long-term
interests of all shareholders and having taken into
account the actual circumstances of the Company’s
operation and development the Company proposes to
retain the accumulated undistributed profits which
will be mainly used for capacity deployment
technological research and development digital
transformation and replenishment of working capital
so as to ensure the steady operation and long-term
development of the Company.In order to enhance returns to investors the
Company proposes that the General Meeting
authorise the Board to formulate and implement the
2026 interim profit distribution plan subject to the
satisfaction of the conditions for cash dividend
distribution and provided that it will not affect the
normal operation and sustainable development of the
Company after taking into account various factors
including the results for the relevant period and
undistributed profits. The relevant proposal will be
submitted together with this annual report to the
2025 Annual General Meeting of the Company for
Whether or not minority shareholders have the opportunity to voice their opinions and Ycoenssideration.demands and whether or not their legitimate rights and interests are fully protected:
If the cash dividend policy is adjusted or amended whether or not the conditions and Yes
procedures are compliant and transparent:
The Company made a profit during the Reporting Period and the profit distributable to the shareholders of the parent Company was positive but it did not
put forward a plan for cash dividend distribution to shareholders
□Applicable□Notapplicable
Reasons for not proposing a cash dividend distribution plan despite the profit recorded during the
Reporting Period and positive profits available for distribution to shareholders at the parent Proposed use and plan for utilisation of the
company level Company’s undistributed profits
As the lithium battery separator industry remains in a period of profound adjustment and market
competition is intense the Company needs to make overall funding arrangements to cope with
industry fluctuations and ensure stable operations. The Company is currently at a critical stage of The Company proposes to retain the
its global expansion and continuous capital investment is required for capacity expansion accumulated undistributed profits which
research and development innovation and equipment upgrades. In addition as the Company only will be mainly used for capacity deployment
turned losses into profits during the current year and its profit scale remains limited in order to technological research and development
promote the sustained and healthy development of the Company enhance its risk resistance digital transformation and replenishment of
capability and safeguard the long-term interests of all shareholders and having taken into account working capital so as to ensure the steady
the actual circumstances of the Company’s operation and development the Board has formulated operation and long-term development of the
the 2025 profit distribution plan: no cash dividend will be distributed no bonus shares will be Company.issued and no capitalisation issue will be made from the capital reserve.Profit distribution and conversion of capital reserve to share capital during the Reporting Period □Applicable □Not applicable
There will be no cash dividends no bonus shares and no conversion of capital with provident fund for the year.X. Implementation of any Equity Incentive Plan Employee Stock Ownership Scheme or Other
Incentive Measures for Employees
□Applicable□Not applicable
1. Equity Incentive
As of the end of the Reporting Period the Company’s 2022 Share Option and Restricted Share Incentive Plan had been fully implemented while the 2024
Restricted Share Incentive Plan remained in operation. Details are set out below:
(I) 2022 Share Option and Restricted Share Incentive Plan
1. On January 24 2022 the 41st meeting of the Fourth Board of Directors of the Company considered and approved the Proposal on the 2022
Stock Option and Restricted Share Incentive Plan (Draft) and its Summary the Proposal on the Formulation of the Measures for the Administration of the
Implementation and Evaluation of the 2022 Stock Option and Restricted Share Incentive Plan and the Proposal on Requesting the General Meeting to
Authorize the Board of Directors to Handle Matters Relating to Equity Incentives. The independent directors expressed a concurring independent opinion
with respect to the Incentive Plan and solicited proxy votes from all shareholders with respect to the Incentive Plan.
462025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
On January 24 2022 the 35th meeting of the Fourth Supervisory Committee of the Company considered and approved the Proposal on the 2022 Stock
Option and Restricted Share Incentive Plan (Draft) and its Summary the Proposal on the Formulation of the Measures for the Administration of the
Implementation and Evaluation of the 2022 Stock Option and Restricted Share Incentive Plan and the Proposal on Verifying the List of Incentive
Recipients of the Company’s 2022 Stock Option and Restricted Share Incentive Plan.For details please refer to the Announcement on Resolutions of the Forty-first Meeting of the Fourth Board of Directors (Announcement
No. 2022-012) the Announcement on Resolutions of the Thirty-fifth Meeting of the Fourth Supervisory Committee (Announcement No. 2022-018) and
the Announcement on the 2022 Share Option and Restricted Share Incentive Plan (Draft) (Corrected) of the Company published by the Company on January
25 2022 in the designated information disclosure media.
The Company published the names and titles of the incentive recipients under the Incentive Plan from January 26 2022 to February 6 2022 on its
intranet OA system. The Supervisory Committee of the Company did not receive any objections from any organization or individual during the public
announcement period. For details please refer to the Supervisory Committee’s Verification Opinion on the List of Incentive Recipients under the 2022 Stock
Option and Restricted Share Incentive Plan and Explanation of Public Announcement (Announcement No. 2022-022) which was disclosed in the designated
media for information disclosure on February 7 2022.On February 14 2022 the second extraordinary general meeting of the Company for 2022 considered and approved the Proposal on the 2022 Stock
Option and Restricted Share Incentive Plan (Draft) and its Summary the Proposal on the Formulation of the Measures for the Administration of the
Implementation and Evaluation of the 2022 Stock Option and Restricted Share Incentive Plan and the Proposal on Requesting the General Meeting to
Authorize the Board of Directors to Handle Matters Relating to Equity Incentives. The Company’s implementation of the 2022 Stock Option and Restricted
Share Incentive Plan was approved and the Board of Directors was authorized to set the grant date to grant stock options and restricted shares to incentive
recipients when they become eligible and to handle all matters necessary for the grant. For details please refer to the Announcement on the Resolutions of the
Second Extraordinary General Meeting of 2022 (Announcement No. 2022-026) disclosed by the Company on February 15 2022 in the designated information
disclosure media.The Company conducted a self-inspection on the trading of the Company’s shares by the persons who have knowledge of the insider information of the
Incentive Plan and the incentive recipients during the six months (i.e. from July 23 2021 to January 24 2022) prior to the public disclosure of the draft
Incentive Plan (Draft). For details please refer to the Self-Investigation Report on the Trading of the Company’s Shares by Incentive Recipients and
Informants with Insider Information under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2022-027) disclosed by the
Company in the designated information disclosure media on February 15 2022.
2. On March 7 2022 the Company held the 43rd Meeting of the Fourth Board of Directors and the 37th Meeting of the Fourth Supervisory
Committee which considered and approved the Proposal to Adjust the List of Stock Option Incentive Recipients and the Number of Equity Granted
under the 2022 Stock Option and Restricted Share Incentive Plan and the Proposal to Grant Stock Options to Incentive Recipients under the 2022 Stock
Option and Restricted Share Incentive Plan. The independent directors of the Company expressed an independent opinion of “Agree.” The Supervisory
Committee of the Company reviewed the list of incentive recipients on the date of grant of stock options and issued a verification opinion. For details please
refer to the Announcement on Adjustment of the List of Stock Option Incentive Recipients and the Number of Equity Granted under the 2022 Stock Option and
Restricted Share Incentive Plan (Announcement No. 2022-034) the Announcement on Grant of Stock Options to Incentive Recipients under the 2022 Stock
Option and Restricted Share Incentive Plan (Announcement No. 2022-035) and the Verification Opinion of the Supervisory Committee on the List of
Incentive Recipients on the Date of Grant of Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2022-037)
disclosed by the Company in the designated information disclosure media on March 8 2022.On March 14 2022 the Company completed the registration of stock option grants under the 2022 Stock Option and Restricted Share Incentive
Plan granting 1595437 stock options to 877 incentive recipients. For details please refer to the Announcement on Completion of Registration of Stock
Option Grants under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2022-040) disclosed by the Company on March 15
2022 in the designated information disclosure media.
3. Pursuant to the authorization of the Board of Directors by the General Meeting in the Proposal on Requesting the General Meeting to
Authorize the Board of Directors to Handle Matters Relating to the Equity Incentive which was considered and approved by the Second Extraordinary
General Meeting of 2022 on May 9 2022 at the 49th meeting of the 4th Board of Directors and the 42nd meeting of the 4th Supervisory Committee of
the Company the Proposal on the Adjustment of Matters Relating to Restricted Shares under the 2022 Stock Option and Restricted Share Incentive Plan
and the Proposal on the Granting of Restricted Shares to Incentive Recipients under the 2022 Stock Option and Restricted Share Incentive Plan were
considered and approved. The independent directors of the Company expressed an independent opinion of “Agree.” The Supervisory Committee of the
Company reviewed the list of incentive recipients on the date of grant of restricted shares and issued a verification opinion. For details please refer to the
Announcement Regarding Adjustment of Matters Related to Restricted Shares under the 2022 Stock Option and Restricted Share Incentive Plan
(Announcement No. 2022-085) the Announcement on Grant of Restricted Shares to Incentive Recipients under the 2022 Stock Option and Restricted Share
Incentive Plan (Announcement No. 2022-086) and the Verification Opinion of the Supervisory Committee on the List of Incentive Recipients on the
Date of Grant of Restricted Shares under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2022-087) disclosed by the
Company on May 10 2022 in the designated information disclosure media.On May 23 2022 the Company completed the registration of restricted share grants under the 2022 Stock Option and Restricted Share Incentive
Plan granting 1595437 restricted shares to 826 incentive recipients. For details please refer to the Announcement on Completion of Registration of
Restricted Share Grants under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2022-098) disclosed by the Company on May
24 2022 in the designated information disclosure media.
4. On June 25 2023 pursuant to the authorization of the second extraordinary meeting of 2022 the seventh meeting of the Fifth Board of
Directors and the seventh meeting of the Fifth Supervisory Committee of the Company considered and approved the Proposal on the Compliance with the
Exercise Conditions of the First Exercise Period of the Company’s 2022 Stock Option and Restricted Share Incentive Plan for Stock Options and the
Proposal to Adjust the Exercise Prices of Stock Options and Cancel Certain Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan
approving to cancel 123477 stock options granted but not yet authorized for exercise for 90 persons. The independent directors of the Company expressed an
independent opinion of “Agree.” For details please refer to the Announcement on Adjustment of Stock Option Exercise Prices and Cancellation of Certain
Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2023-102) and the Announcement Regarding
Compliance with Exercise Conditions for the First Exercise Period of Stock Options under the Company’s 2022 Stock Option and Restricted Share Incentive
Plan (Announcement No. 2023-103) disclosed by the Company on June 26 2023 in the designated information disclosure media.On July 3 2023 the Company’s cancellation of certain stock options was completed upon the examination and confirmation by CSDC Shenzhen
Branch and the total number of stock options cancelled this time was 123477 units. For details please refer to the Announcement on the Completion of
Cancellation of Certain Stock Options under the Company’s 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2023-116) disclosed
by the Company on July 4 2023 in the designated information disclosure media.
5. On June 25 2023 the seventh meeting of the Fifth Board of Directors and the seventh meeting of the Fifth Supervisory Committee of the Company
considered and approved the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2022
472025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Stock Option and Restricted Share Incentive Plan and the Proposal Regarding the First Unlocking Period of Restricted Shares under the Company’s
2022 Stock Option and Restricted Stock Incentive Plan Meeting the Conditions for Unlocking. The conditions for unlocking the restricted shares
during the first unlocking period of the Company’s 2022 Stock Option and Restricted Share Incentive Plan were satisfied. It was approved to
unlock 598537 restricted shares held by 765 incentive recipients; and the Company was approved to repurchase and cancel 88630 restricted
shares held by 68 incentive recipients in aggregate. The independent directors of the Company expressed an independent opinion of “Agree.” For
details please refer to the Announcement on Repurchase and Cancellation of Certain Restricted Shares under the 2022 Stock Option and Restricted Share
Incentive Plan (Announcement No. 2023-104) and the Announcement Regarding the First Unlocking Period of Restricted Shares under the Company’s
2022 Stock Option and Restricted Stock Incentive Plan Meeting the Conditions for Unlocking (Announcement No. 2023-105) disclosed by the
Company on June 26 2023 in the designated information disclosure media. The aforesaid repurchase and cancellation was considered and approved by
the second extraordinary general meeting of the Company for 2023.On June 30 2023 the Company disclosed the Suggestive Announcement on the Listing and Circulation of Shares in the First Unlocking
Period of Restricted Shares under the Company’s 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2023-114) in the
designated information disclosure media. The 598537 restricted shares unlocked during the first unlocking period of the Incentive Plan were listed on
July 3 2023.On July 20 2023 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted
Shares under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2023-123) in the designated information disclosure
media. The Company completed the procedures for the repurchase and cancellation of 88630 restricted shares at the CSDC Shenzhen Branch.
6. On March 18 2024 the twenty-first meeting of the Fifth Board of Directors and the seventeenth meeting of the Fifth Supervisory Committee of
the Company considered and approved the Proposal on Cancellation of Part of the Stock Options under the 2022 Stock Option and Restricted Share
Incentive Plan approving the Company to cancel 584593 stock options granted to 794 incentive recipients but not exercised as of the expiration of the
first exercise period. For details please refer to the Announcement on Cancellation of Certain Stock Options under the 2022 Stock Option and Restricted
Share Incentive Plan (Announcement No. 2024-047) disclosed by the Company on March 19 2024 in the designated information disclosure media.On March 26 2024 the Company disclosed the Announcement on the Completion of Cancellation of Certain Stock Options under the 2022 Stock
Option and Restricted Share Incentive Plan (Announcement No. 2024-050) in the designated information disclosure media. The Company completed the
procedures for the cancellation of 584593 stock options at CSDC Shenzhen Branch.
7. On June 6 2024 the twenty-sixth meeting of the Fifth Board of Directors and the twenty-second meeting of the Fifth Supervisory Committee of
the Company considered and approved the Proposal on the Repurchase and Cancellation of Certain Restricted Shares and Adjustment of Repurchase
Prices under the 2022 Stock Option and Restricted Share Incentive Plan and the Proposal on the Cancellation of Certain Stock Options under the 2022
Stock Option and Restricted Share Incentive Plan. It was approved to repurchase and cancel an aggregate of 166541 restricted shares held by 100
incentive recipients who have separated or demoted and to cancel an aggregate of 152320 stock options held by 103 incentive recipients who have
separated or demoted. As the performance assessment requirements at the corporate level for the second unlocking period/exercise period of the
Company’s 2022 Stock Option and Restricted Share Incentive Plan were not met it was agreed to repurchase and cancel an aggregate of 365858
restricted shares held by 665 incentive recipients and to cancel an aggregate of 362513 stock options that had been granted to 691 incentive recipients but
had not yet been exercised. Meanwhile in view of the Company’s 2022 annual equity distribution 2023 semi-annual equity distribution and 2023 annual
equity distribution the repurchase price of the Company’s restricted shares was adjusted accordingly in accordance with the relevant regulations
and the Company’s 2022 Stock Option and Restricted Share Incentive Plan. For details please refer to the Announcement on Cancellation of
Certain Stock Options under the 2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2024-127) and Announcement on the
Repurchase and Cancellation of Certain Restricted Shares under the 2022 Stock Option and Restricted Stock Incentive Plan and Adjustment of the
Repurchase Price (Announcement No. 2024-128) disclosed by the Company on June 7 2024 in the designated information disclosure media. The
restricted share repurchases and cancellation was considered and approved by the fifth extraordinary general meeting of the Company for 2024.On June 18 2024 the Company disclosed the Announcement on the Completion of Cancellation of Certain Stock Options under the 2022 Stock
Option and Restricted Share Incentive Plan (Announcement No. 2024-133) in the designated information disclosure media. The Company completed
the procedures for the cancellation of 514833 stock options at CSDC Shenzhen Branch.On September 10 2024 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted
Shares (Announcement No. 2024-202) in the designated information disclosure media. The Company completed the procedures for the repurchase and
cancellation of 532399 restricted shares at the CSDC Shenzhen Branch.
8. On December 13 2024 at the 34th meeting of the Fifth Board of Directors and the 28th meeting of the Fifth Supervisory Committee of
the Company the Proposal on the Repurchase and Cancellation of Certain Restricted Shares and the Proposal on the Cancellation of Certain Stock
Options under the 2022 Stock Option and Restricted Share Incentive Plan were considered and approved. It was approved to repurchase and cancel an
aggregate of 18638 restricted shares held by 37 departed incentive recipients and to cancel an aggregate of 18638 stock options granted but not yet
authorized for exercise. For details please refer to the Announcement on Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2024-243) and the Announcement on Cancellation of Certain Stock Options under the 2022 Stock Option and Restricted Stock
Incentive Plan (Announcement No. 2024-244) disclosed by the Company on December 14 2024 in the designated information disclosure media. The
restricted share repurchases and cancellation was considered and approved by the tenth extraordinary general meeting of the Company for 2024.On January 10 2025 the Company disclosed the Announcement on the Completion of the Cancellation of Certain Stock Options under the
2022 Stock Option and Restricted Share Incentive Plan (Announcement No. 2025-009) in the designated information disclosure media. The Company
completed the procedures for the cancellation of 18638 stock options at CSDC Shenzhen Branch.On March 22 2025 the Company disclosed the Announcement on the Completion of Repurchase and Cancellation of Certain Restricted
Shares (Announcement No. 2025-037) in the designated information disclosure media. The Company completed the procedures for the repurchase and
cancellation of 18638 restricted shares at CSDC Shenzhen Branch.
9. On January 2 2025 at the 36th meeting of the Fifth Board of Directors and the 30th meeting of the Fifth Supervisory Committee of the
Company the Proposal on the Repurchase and Cancellation of Certain Restricted Shares and the Proposal on the Cancellation of Certain Stock Options
under the 2022 Stock Option and Restricted Share Incentive Plan were considered and approved. It was approved to repurchase and cancel an aggregate
of 17197 restricted shares being all or part of the restricted shares granted to 13 incentive recipients but not yet released from lock-up and to cancel an
aggregate of 14877 stock options granted but not yet authorized for exercise. For details please refer to the Announcement on Repurchase and
Cancellation of Certain Restricted Shares (Announcement No. 2025-003) and the Announcement on Cancellation of Certain Stock Options under the
2022 Stock Option and Restricted Stock Incentive Plan (Announcement No. 2025-004) disclosed by the Company on January 3 2025 in the designated
information disclosure media. The restricted share repurchases and cancellation was considered and approved by the second extraordinary general
meeting of the Company for 2025.On January 10 2025 the Company disclosed the Announcement on the Completion of Cancellation of Certain Stock Options under the 2022 Stock
Option and Restricted Share Incentive Plan (Announcement No. 2025-009) in the designated information disclosure media. The Company completed the
procedures for the cancellation of 14877 stock options at CSDC Shenzhen Branch.On March 22 2025 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2025-037) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 17197 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
10. On April 22 2025 at the 40th meeting of the Fifth Board of Directors and the 33rd meeting of the Fifth Supervisory Committee of the Company
482025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
the Proposal on the Repurchase and Cancellation of Certain Restricted Shares and the Proposal on the Cancellation of Certain Stock Options under the
2022 Stock Option and Restricted Share Incentive Plan were considered and approved. As the performance assessment requirements at the corporate level
for the third unlocking period of the Company’s 2022 Stock Option and Restricted Share Incentive Plan were not met it was agreed to repurchase and
cancel an aggregate of 330036 restricted shares granted to 624 incentive recipients but not yet released from lock-up. As the performance assessment
requirements at the corporate level for the third exercise period of the Company’s 2022 Stock Option and Restricted Share Incentive Plan were not met it
was agreed to cancel an aggregate of 329019 stock options that had been granted to 650 incentive recipients but had not yet been exercised. For details
please refer to the Announcement on Repurchase and Cancellation of Certain Restricted Shares (Announcement No. 2025-058) and the Announcement on
Cancellation of Certain Stock Options under the 2022 Stock Option and Restricted Stock Incentive Plan (Announcement No. 2025-059) disclosed by the
Company on April 23 2025 in the designated information disclosure media. The restricted share repurchases and cancellation was considered and approved
by the annual general meeting of the Company for 2024.On May 15 2025 the Company disclosed the Announcement on the Completion of the Cancellation of Certain Stock Options under the 2022 Stock
Option and Restricted Share Incentive Plan (Announcement No. 2025-083) in the designated information disclosure media. The Company completed the
procedures for the cancellation of 329019 stock options at CSDC Shenzhen Branch.On August 2 2025 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2025-121) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 330036 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.(II) 2024 restricted share incentive plan
1. On February 2 2024 the 19th meeting of the Fifth Board of Directors of the Company considered and approved the Proposal on the 2024
Restricted Share Incentive Plan (Draft) and its Summary the Proposal on the Formulation of the Measures for the Administration of the Implementation
and Evaluation of the 2024 Restricted Share Incentive Plan and the Proposal on Requesting the General Meeting to Authorize the Board of Directors to
Handle Matters Relating to Equity Incentives. The relevant proposals were considered and approved by the Remuneration and Appraisal Committee of
the Board of Directors of the Company and the Special Meeting of Independent Directors.On February 2 2024 the 15th meeting of the Fifth Supervisory Committee of the Company considered and approved the Proposal on the 2024
Restricted Share Incentive Plan (Draft) and Its Summary the Proposal on the Formulation of the Measures for the Administration of the
Implementation and Evaluation of the 2024 Restricted Share Incentive Plan and the Proposal on Verifying the List of Incentive Recipients of the
Company’s 2024 Restricted Share Incentive Plan. The Supervisory Committee of the Company verified and issued a verification opinion on matters
relating to the Incentive Plan.For details please refer to the Announcement on Resolutions of the 19th Meeting of the Fifth Board of Directors (Announcement No. 2024-019)
the Announcement on Resolutions of the 15th Meeting of the Fifth Supervisory Committee (Announcement No. 2024-024) and the Announcement on the
2024 Restricted Share Incentive Plan of Yunnan Energy New Material Co. Ltd (Draft) published by the Company on February 3 2024 in the
designated information disclosure media.From February 6 2024 to February 16 2024 the names and positions of certain incentive recipients of the initial grant under the Restricted
Share Incentive Plan were posted on the Company’s bulletin board. During the public announcement period the Supervisory Committee did not receive
any objections to the list of incentive recipients under the Restricted Share Incentive Plan. On February 20 2024 the Company disclosed in the
designated information disclosure media the Verification Opinion of the Supervisory Committee on the List of Incentive Recipients of the 2024 Restricted
Share Incentive Plan and Explanation of Public Announcement (Announcement No. 2024-034). On February 27 2024 the Company disclosed the
Self-Investigation Report on the Trading of the Company’s Shares by Incentive Recipients and Informants with Insider Information under the
Restricted Share Incentive Plan (Announcement No. 2024-037).On February 26 2024 the first extraordinary general meeting of the Company for 2024 considered and approved the Proposal on the 2024
Restricted Share Incentive Plan (Draft) and Its Summary the Proposal on the Formulation of the Measures for the Administration of the Implementation
and Evaluation of the 2024 Restricted Share Incentive Plan and the Proposal on Requesting the General Meeting to Authorize the Board of Directors to
Handle Matters Relating to Equity Incentives. For details please refer to the Announcement on the Resolutions of the First Extraordinary General
Meeting for 2024 (Announcement No. 2024-038) disclosed by the Company on February 27 2024 in the designated information disclosure media.
2. Pursuant to the authorization of the Board of Directors by the General Meeting in the Proposal on Requesting the General Meeting to
Authorize the Board of Directors to Handle Matters Relating to the Equity Incentive which was considered and approved by the First Extraordinary General
Meeting of 2024 on May 16 2024 at the 24th meeting of the 5th Board of Directors and the 20th meeting of the 5th Supervisory Committee of the Company
the Proposal on the Adjustment of Matters Relating to Restricted Shares under the 2024 Restricted Share Incentive Plan and the Proposal on the
Granting of Restricted Shares to Incentive Recipients under the 2024 Restricted Share Incentive Plan were considered and approved. The Supervisory
Committee of the Company verified the foregoing reviewed the list of incentive recipients on the first grant date and expressed its verification opinion.Grandall Law Firm issued a legal opinion. For details please refer to the Announcement Regarding Adjustment of Matters Related to Restricted Shares
under the 2024 Restricted Share Incentive Plan (Announcement No. 2024-105) the Announcement on Grant of Restricted Shares to Incentive Recipients
under the 2024 Restricted Share Incentive Plan (Announcement No. 2024-106) and the Verification Opinion of the Supervisory Committee on the
List of Incentive Recipients on the Date of Grant of Restricted Shares under the 2024 Restricted Share Incentive Plan (Announcement No. 2024-109)
disclosed by the Company on May 17 2024 in the designated information disclosure media.On May 22 2024 the Company completed the registration of the initial grant of restricted shares under the 2024 Restricted Share Incentive Plan
granting 5034316 restricted shares to 140 incentive recipients. For details please refer to the Announcement on Completion of Registration of the
First Grant under the 2024 Restricted Share Incentive Plan (Announcement No. 2024-113) disclosed by the Company on May 23 2024 in the designated
information disclosure media.
3. On June 21 2024 at the twenty-eighth meeting of the Fifth Board of Directors and the twenty-fourth meeting of the Fifth Supervisory
Committee the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Stock Incentive Plan and Adjustment
of the Repurchase Price was considered and adopted approving to repurchase and cancel the 40700 restricted shares held by the two separated
incentive recipients. Meanwhile in view of the Company’s 2023 annual equity distribution the repurchase price of the Company’s restricted shares was
adjusted accordingly in accordance with relevant regulations and the Company’s 2022 Stock Option and Restricted Share Incentive Plan. For details
please refer to the Announcement on Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Share Incentive Plan and
Adjustment of Repurchase Price (Announcement No. 2024-143) disclosed by the Company on June 22 2024 in the designated information disclosure
media. The matter was approved by the seventh extraordinary general meeting of the Company in 2024.On September 10 2024 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted
Shares (Announcement No. 2024-202) in the designated information disclosure media. The Company completed the procedures for the repurchase and
cancellation of 40700 restricted shares at the CSDC Shenzhen Branch.
492025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. On December 13 2024 the Proposal on the Repurchase and Cancellation of Certain Restricted Shares was considered and approved at the
thirty-fourth meeting of the Fifth Board of Directors and the twenty-eighth meeting of the Fifth Supervisory Committee of the Company. It was agreed that a
total of 45600 restricted shares held by nine departed incentive recipients would be repurchased and cancelled. For details please refer to the Announcement
on Repurchase and Cancellation of Certain Restricted Shares (Announcement No. 2024-243) disclosed by the Company on December 14 2024 in the
designated information disclosure media. The matter was approved by the tenth extraordinary general meeting of the Company in 2024.On March 22 2025 the Company disclosed the Announcement on the Completion of Repurchase and Cancellation of Certain Restricted
Shares (Announcement No. 2025-037) in the designated information disclosure media. The Company completed the procedures for the repurchase and
cancellation of 45600 restricted shares at CSDC Shenzhen Branch.
5. On January 2 2025 at the 36th meeting of the Fifth Board of Directors and the 30th meeting of the Fifth Supervisory Committee of the Company
the Proposal on the Repurchase and Cancellation of Certain Restricted Shares was considered and approved. It was approved to repurchase and cancel an
aggregate of 1689882 restricted shares being part of the restricted shares granted to 11 incentive recipients but not yet released from lock-up. For details
please refer to the Announcement on Repurchase and Cancellation of Certain Restricted Shares (Announcement No. 2025-003) disclosed by the Company on
January 3 2025 in the designated information disclosure media. The matter was considered and approved by the second extraordinary general meeting of the
Company for 2025.On March 22 2025 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2025-037) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 1689882 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
6. On April 22 2025 at the 40th meeting of the Fifth Board of Directors and the 33rd meeting of the Fifth Supervisory Committee of the Company
the Proposal on the Repurchase and Cancellation of Certain Restricted Shares was considered and approved. As the performance assessment requirements at
the corporate level for the first unlocking period of the Company’s 2024 Restricted Share Incentive Plan in respect of the first grant of restricted shares were
not met it was agreed to repurchase and cancel an aggregate of 580946 restricted shares granted to 115 incentive recipients under the first grant but not yet
released from lock-up. As 14 incentive recipients among the incentive recipients of the first grant of restricted shares under the Company’s 2024 Restricted
Share Incentive Plan had resigned or been demoted it was agreed to repurchase and cancel an aggregate of 341400 restricted shares granted to the 14
incentive recipients but not yet released from lock-up. For details please refer to the Announcement on Repurchase and Cancellation of Certain Restricted
Shares (Announcement No. 2025-058) disclosed by the Company on April 23 2025 in the designated information disclosure media. The matter was
considered and approved by the annual general meeting of the Company for 2024.On August 2 2025 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2025-121) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 922346 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
7. On May 13 2025 at the 43rd meeting of the Fifth Board of Directors and the 35th meeting of the Fifth Supervisory Committee of the Company
the Proposal on the Repurchase and Cancellation of Certain Restricted Shares was considered and approved. As 4 incentive recipients among the incentive
recipients of the first grant of restricted shares under the Company’s 2024 Restricted Share Incentive Plan had resigned or had changes in position it was
agreed to repurchase and cancel an aggregate of 108000 restricted shares granted to the 4 incentive recipients but not yet released from lock-up. For details
please refer to the Announcement on the Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Share Incentive Plan
(Announcement No. 2025-076) disclosed by the Company on May 14 2025 in the designated information disclosure media. The matter was considered and
approved by the fourth extraordinary general meeting of the Company for 2025.On August 2 2025 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2025-121) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 108000 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.
8. On December 30 2025 at the 51st meeting of the Fifth Board of Directors of the Company the Proposal on the Repurchase and Cancellation of
Certain Restricted Shares under the 2024 Restricted Share Incentive Plan was considered and approved. As 11 incentive recipients among the incentive
recipients of the first grant of restricted shares under the Company’s 2024 Restricted Share Incentive Plan had resigned it was agreed to repurchase and
cancel an aggregate of 88240 restricted shares granted to the 11 incentive recipients but not yet released from lock-up. For details please refer to the
Announcement on the Repurchase and Cancellation of Certain Restricted Shares under the 2024 Restricted Share Incentive Plan (Announcement No. 2025-
221) disclosed by the Company on December 31 2025 in the designated information disclosure media. The matter was considered and approved by the first
extraordinary general meeting of the Company for 2026.On March 27 2026 the Company disclosed the Announcement on the Completion of the Repurchase and Cancellation of Certain Restricted Shares
(Announcement No. 2026-042) in the designated information disclosure media. The Company completed the procedures for the repurchase and cancellation
of 88240 restricted shares at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited.Equity incentives granted to the Company’s Directors and senior management
□Applicable□Notapplicable
502025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Unit: Share
The number of The exercise price The market The number of
The number of The number of The number of The number The number of The number The grant The number
newly granted of the number of price at the end newly granted
stock options exercisable exercised of stock restricted of unlocked price of of restricted
stock options options exercised of the restricted shares
Name Post held at the options during options during options held shares held at shares during restricted shares held at
during the during the Reporting during the
beginning of the Reporting the Reporting at the end of the beginning the current shares (RMB the end of the
Reporting Reporting Period Period (RMB Reporting
the year Period Period the period of the period period per share) period
Period (RMB per share) per share) Period
Ma
Director 0 0 0 0 0 30000 0 0 24.59 24000
Weihua
Vice
Yu Xue General 12000 0 0 0 0 72000 0 0 24.59 14400
Manager
Chief
Financial
Li Jian 0 0 0 0 0 60000 0 0 24.59 0
Officer
(former)
Total -- 12000 0 0 0 -- 0 -- 162000 0 0 -- 38400
(1) As the performance assessment requirements at the corporate level for the first unlocking period of the Company’s 2024 Restricted Share Incentive Plan in respect of the first grant of restricted shares were not met
6000 restricted shares held by Ma Weihua were repurchased and cancelled during the Reporting Period. As at the end of the Reporting Period all restricted shares held by Ma Weihua were granted under the Company’s
2024 Restricted Share Incentive Plan at the grant price of RMB24.59 per share.
(2) As the assessment requirements at the corporate level for the third unlocking period under the Company’s 2022 Share Option and Restricted Share Incentive Plan were not fulfilled the performance assessment
requirements at the corporate level for the first unlocking period in respect of the first grant of restricted shares under the Company’s 2024 Restricted Share Incentive Plan were not fulfilled and due to a change in
Remarks (if any)
position 57600 restricted shares held by Yu Xue were repurchased and cancelled during the Reporting Period. As at the end of the Reporting Period all restricted shares held by Yu Xue were granted under the
Company’s 2024 Restricted Share Incentive Plan at the grant price of RMB24.59 per share.
(3) All restricted shares held by Li Jian were granted under the Company’s 2024 Restricted Share Incentive Plan at the grant price of RMB24.59 per share. As the performance assessment requirements at the corporate
level for the first unlocking period in respect of the first grant of restricted shares under the 2024 Restricted Share Incentive Plan were not fulfilled and due to resignation 60000 restricted shares held by Li Jian were
repurchased and cancelled during the Reporting Period.Evaluation mechanism and incentive of senior management
The Company has established a complete performance evaluation system and the income of senior management is linked to the overall operating performance. During the Reporting Period
the Board of Directors of the Company evaluated the work performance of senior management according to the annual operating performance of the Company the job responsibilities of senior
management and the completion of annual work objectives and prepared incentive compensation plans for senior management according to the evaluation results. Such plans were submitted for review in
accordance with regulations. The Company encouraged senior management with the equity incentive plan. The Company formulated implementation check-up management measures for all of the
Company’s equity incentive plans. The Company’s check-up indicators are related to the Company’s medium and long- term development strategies and annual business objectives. According to the
relevant check-up methods the Company conducted individual level performance assessment on the incentive recipients according to the key work performance work ability work attitude and other
indicators and finally determined the number of restricted shares or options that shall be unlocked by the incentive recipients based on the Company level and individual level assessment results.
2. Implementation of Employee Stock Ownership Plan
□Applicable□Notapplicable
3. Other Employee Incentives
□Applicable□Not applicable
512025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
XI. Internal Control System Construction and Implementation during the Reporting Period
1. Internal control construction and implementation
During the Reporting Period the Company in accordance with the Basic Norms for the Internal Control of Enterprises and related guidelines
updated and perfected its internal control system in due time and established an internal control system featuring scientific design simplicity
applicability and effective running. The Audit Committee of the Board of Directors and internal audit department jointly formed the Company’s risk
management and internal control organization system to supervise and evaluate the internal control management of the Company. Through the
operation analysis and evaluation of the internal control system the Company effectively prevented risks in operational management and promoted
the fulfillment of internal control objectives.During the Reporting Period the Company organized and carried out the internal control evaluation for 2025 in accordance with the procedures
prescribed under the enterprise internal control regulatory framework and the Company’s internal control evaluation methodology. Based on the
identification of material weaknesses in the Company’s internal control as at the reference date of the internal control evaluation report the Company
had no material weakness in internal control over financial reporting or non-financial reporting. The Board is of the view that the Company has
maintained effective internal control over financial reporting and non-financial reporting in all material respects in accordance with the requirements of
the enterprise internal control regulatory framework and the relevant provisions.
2. Details on material weakness in the Company’s internal control during the Reporting Period
□Yes □No
XII. The Company’s Management and Control of Subsidiaries during the Reporting Period
The Company will continue to exercise management and supervision over the standardized operations information disclosure financial
matters and business operations of its subsidiaries in accordance with relevant laws regulations and institutional requirements such as the Company
Law and the Articles of Association. This includes timely monitoring of significant events such as the financial status of subsidiaries to ensure
lawful and compliant operations asset security the authenticity and completeness of financial reports and related information thereby further
enhancing the subsidiaries’ operational management and risk management capabilities.Whether there were any irregularities in the management and control over subsidiaries
□Yes □No
XIII. Internal Control Assessment Report or Internal Control Audit Report
1. Assessment report on internal control
Disclosure date of the assessment report on
internal control April 23 2026
Disclosure index of the assessment report on
internal control 2025 Assessment Report on Internal Control disclosed at www.cninfo.com.cn on April 23 2026
Ratio of total assets of the unit included in the
assessment scope to the total assets on the 100.00%
Company’s consolidated financial statements
Ratio of operating revenue of the unit included
in the assessment scope to the operating
revenue on the Company’s consolidated 100.00%
financial statements
Defect identification criteria
Type Financial report Non-financial report
General defects: There is little possibility that a General defects: There is little possibility that a
failure to take any action will result in potential failure to take any action will result in potential
misstatement economic loss or unachieved misstatement economic loss or unachieved
business objectives. Material defects: There is business objectives. Material defects: There is
some possibility that a failure to take any action some possibility that a failure to take any action
Qualitative criteria will result in potential misstatement economic will result in potential misstatement economic
loss or unachieved business objectives. Major loss or unachieved business objectives. Major
defects: There is the possibility that a failure to defects: There is the possibility that a failure to
take any action will result in potential take any action will result in potential
misstatement economic loss or unachieved misstatement economic loss or unachieved
business objectives. business objectives.General defects: < 0.25% of Total Assets < General defects: < 0.25% of Total Assets <
0.5% of Operating revenue; material defects: 0.5% of Operating revenue; material defects:
≥ 0.25% of Total Assets and < 1% of Total ≥ 0.25% of Total Assets and <1% of Total
Quantitative criteria Assets ≥ 0.5% of Operating revenue and < Assets ≥ 0.5% of Operating revenue and <
1.5% of Operating revenue; major defects: ≥ 1.5% of Operating revenue; major defects: ≥
1% of Total Assets ≥ 1.5% of Operating 1% of Total Assets ≥ 1.5% of Operating
revenue. revenue.Number of major defects in the financial
report 0
Number of major defects in the non-financial
report 0
Number of material defects in the financial
report 0
Number of material defects in the non-financial
report 0
522025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2. Audit report on internal control
□Applicable□Not applicable
Audit opinion in the audit report on internal control
In our opinion Energy Technology maintained in all material respects effective internal control over financial reporting as of December 31 2025
in accordance with the Basic Norms for the Internal Control of Enterprises and related provisions.Disclosure of the audit report on internal control Disclosed
Disclosure date of the full audit report on internal control April 23 2026
The Audit Report on Internal Control of Yunnan Energy New Material
Disclosure index of the audit report on internal control (Group) Co. Ltd. (Da Hua Nei Zi [2026] No. 0011000064) disclosed
by the Company at www.cninfo.com.cn on April 23 2026
Type of opinion in the audit report on internal control Unqualified opinion
Whether there was any major defect in the non-financial report No
Whether the accounting firm issued a qualified audit report on internal control or not: □Yes □No
Whether the audit report on internal control issued by the accounting firm is consistent with the self-assessment report from the Board of
Directors or not:□Yes□No
Whether a non-standard audit opinion on internal control was issued for the Reporting Period or the previous year: □Yes □No
XIV. Rectification of Problems Found in Self-Inspection of the Special Operation on Improving
Corporate Governance of Listed Companies
Not applicable
XV. Disclosure of Environmental Information
Whether the listed company and its major subsidiaries are included in the list of enterprises whose environmental information has
been disclosed in accordance with the law
□Yes □No
Number of enterprises included in the list of enterprises
whose environmental information has been disclosed in Seven
accordance with the law
No. Name of enterprise Inquiry index of reports on legal disclosure of environmental information
Shanghai Energy New Material Technology Enterprise Environmental Information Disclosure System (Shanghai)
Co. Ltd. https://e2.sthj.sh.gov.cn/jsp/view/hjpl/index.jsp
Enterprise Environmental Information Disclosure System (Jiangsu)
Wuxi Energy New Material Technology Co. http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
Ltd. webapp/web/viewRunner.htmlviewId=http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/sps/views/yfpl/views/yfplHomeNew/index.js
Jiangxi Tonry New Energy Technology Enterprise Environmental Information Disclosure System (Jiangxi)
Development Co. Ltd. http://qyhjxxyfpl.sthjt.jiangxi.gov.cn:15004/pilouxiangqingid=1243953665132343296
Department of Ecology and Environment of Guangdong Province -Enterprise Environmental
Zhuhai Energy New Material Technology
4 Information Disclosure System
Co. Ltd.https://gdee.gd.gov.cn/gdeepub/front/dal/dal/newindex
Enterprise Environmental Information Disclosure System (Yunnan)
5 Yunnan Hongchuang Packaging Co. Ltd.
http://183.224.17.39:10097/ynyfpl/frontal/index.html#/home/overview
Enterprise Environmental Information Disclosure System (Chongqing)
Chongqing Energy New Material http://183.66.66.47:10001/eps/index/enterprise-
6
Technology Co. Ltd. morecode=91500115MA61C9JG0H&uniqueCode=541a39dac7a44d25&date=2024&type=t
rue&isSearch=true
Enterprise Environmental Information Disclosure System (Chongqing)
Chongqing Energy Newmi Technological http://183.66.66.47:10001/eps/index/enterprise-
7
Co. Ltd. morecode=91500115699296852F&uniqueCode=595ee1ee4f758e81&date=2025&type=true
&isSearch=true
The Company shall comply with the disclosure requirements for the chemical industry set forth in the Self-Regulatory Guidelines No. 3 for
Companies Listed on Shenzhen Stock Exchange – Industry Information Disclosure
532025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Information about environmental accidents occurring in the listed company: None
XVI. Social Responsibility
For details please refer to the Environmental Social and Governance Report 2025 (ESG report) disclosed by the Company at
www.cninfo.com.cn on April 23 2026.XVII. Information about Efforts to Consolidate and Extend the Achievements of Poverty
Alleviation and Rural Revitalization
Through a range of public welfare initiatives we have actively engaged in rural development connecting urban and rural areas with goodwill and
making a steady contribution to the revitalization of rural areas. Providing stable employment opportunities for rural workers is a vital means of
consolidating the achievements of poverty alleviation stimulating the development of county-level economies and supporting the national rural
revitalization strategy. We have actively carried out targeted recruitment assistance. As of the end of the Reporting Period we had recruited a total
of 149 employees whose registered residence is in former nationally designated poverty-stricken counties (60 in Yunnan 48 in Hubei 5 in Jiangxi
and 36 in Chongqing). This has not only brought a diverse workforce to us but has also consolidated the achievements of poverty alleviation and
strengthened the endogenous momentum of these counties achieving an effective integration of corporate development with rural revitalization.
542025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 5 Significant Events
I. Performance of commitments
1. Commitments of the Company’s actual controller shareholders related parties and acquirer as well as the Company and other commitment
makers performed during the Reporting Period or ongoing at the end of the Reporting Period
□Applicable □Not applicable
Commitment Commitment Type of Details of commitment Time of Term of
Performance
made by commitment commitment commitment ofcommitment
1. There are no false records misleading statements or major omissions in the information disclosed and application
documents submitted by Energy Technology and those making the commitments shall be jointly and severally liable for
the authenticity accuracy and integrity of such documents 2. If the information provided or disclosed for this major assets
restructuring contains false records misleading statements or major omissions and is put on file by the judicial organ for
investigation or by the CSRC for investigation before the conclusion of the investigation is made those making the
The Company Commitment to commitments will not transfer the shares with interests in Energy Technology and will submit the application for
and all directors submit true suspending the transfer and share accounts to the Board of Directors of the Energy Technology within two trading days
supervisors and accurate and after receiving the notice of the investigation and the Board of Directors shall apply for lockup to the stock exchange and June 13 Strictly
senior complete the registration and clearing company on behalf of those making the commitments; if the Board of Directors fails to 2017
Long term performed
management information submit the lockup application within two trading days it will authorize the Board of Directors to directly submit theidentity and account information of those making the commitments to the stock exchange and the registration and clearing
company after verification and apply for lockup; if the Board of Directors fails to submit the identity and account
information of those making the commitments to the stock exchange and the registration and clearing company those
making the commitments will authorize the stock exchange and the registration and clearing company to directly lock up
the related shares. If the investigation found that there is any violation of laws or regulations those making the
commitments promise to use voluntarily the shares locked up to compensate the related investors.
1. The Company and its controlling shareholder and actual controller have not been investigated by judicial authorities for
Commitments suspected crimes or investigated by the CSRC for suspected violations of laws and regulations in recent 3 years; 2. the
made during asset The Company Commitment on Company and its controlling shareholders and actual controllers have not been publicly censured by the stock exchange June 13 Strictly
restructuring legal compliance and have no other major acts of dishonesty in the past 12 months; 3. The Company and its incumbent directors and senior 2017
Long term performed
management have not been investigated by judicial authorities for suspected crimes or investigated by the CSRC for
suspected violations of laws and regulations.
1. I hereby commit neither to tunnel to other units or individuals without compensation or under unfair conditions nor to
damage the Company’s interests in other ways. 2. I hereby commit to restrict my position-related consumption activities.
3. I hereby commit not to use the Company’s assets for investment and consumption activities not related to execution of
Directors and Commitment ondilution of my duties. 4. I hereby commit to link the remuneration system formulated by the Board of Directors or the Remunerationsenior current return Committee or Assessment Committee of the Company with the execution of the return recovery measures. 5. I hereby May 25 Strictlymanagement of and remedial commit to link the vesting conditions with the implementation of the return recovery measures if the Company will 2017
Long term performed
the Company measures implement any share incentive scheme in the future. 6. Since the date of this commitment up to completion of this majorasset restructuring if the CSRC imposes other new regulatory requirements in relation to the return recovery measures and
its commitments and such commitments cannot meet such rules of the CSRC I commit to issue supplemental
undertakings in accordance with the latest requirements of the CSRC.Commitment to The counterparty will timely provide Energy Technology with information related to restructuring and guarantee the
submit true authenticity accuracy and completeness of the information provided. In case of any false record misleading statement or
Counterparty accurate and major omission of the information provided resulting in any loss to Energy Technology or investors it shall be liable for June 13 Strictly
complete compensation according to law. In case of any false record misleading statement or major omission in the information 2017
Long term performed
information provided or disclosed in this material assets restructuring which is put on file by the judicial organ for investigation or bythe CSRC for investigation the counterparty will suspend the transfer of the shares with interests in Energy Technology
552025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
until the case investigation conclusion is clear.
1. Gao Xiang was the CFO of Shanghai Lvxin Packaging Materials Co. Ltd. (Shunhao). Due to Shunhao’s failure to
disclose related party transactions with related natural persons according to law in violation of the relevant provisions on
information disclosure in the Securities Law and the Administrative Measures for Information Disclosure of Listed
Companies on July 27 2016 Shanghai Securities Regulatory Bureau issued a warning to Shunhao and related parties
including Gao Xiang and imposed an administrative penalty of RMB30000 on Gao Xiang; on January 5 2017 Shenzhen
Stock Exchange made the Decision on Criticism to Shanghai Shunhao New Material Technology Co. Ltd. and Related
Commitment on Parties through Circulating Notices and circulated notification of criticism to Shunhao and related parties including GaoCounterparty legal compliance Xiang. In addition other counterparties have not been subject to administrative or criminal penalties related to the
June 13 Long term Strictly
securities market in the past five years and have not involved in major civil litigation or arbitration related to economic 2017 performed
disputes. 2. Counterparties are eligible to purchase shares not publicly offered by Energy Technology and are not under
any circumstances where they are not allowed to purchase shares not publicly offered by Energy Technology as stipulated
by laws regulations rules or normative documents. 3. Over the last five years the counterparties have not failed to repay
a large amount of debts as scheduled failed to fulfill their declaration been subject to administrative measures by the
CSRC or disciplined by the stock exchange and there are no ongoing or threatened administrative or judicial proceedings
for investigation against my material violation of laws or regulations.
1. Shares of Shanghai Energy held by counterparties according to law. The counterparty has performed its contribution
obligation to Shanghai Energy in accordance with the law and there is no false contribution delayed contribution
Commitment on withdrawal of capital and other acts in violation of its obligations and responsibilities as a shareholder and there is no
Counterparty integrity of asset situation that may affect the legal survival of Shanghai Energy. 2. The equity of Shanghai Energy held by the counterparty June 13 Long term Strictly
ownership is actually legally owned. There is no ownership dispute there is no trust entrusted shareholding or similar arrangement 2017 performed
and there is no pledge freezing sealing property preservation or other rights restrictions on the equity of Shanghai
Energy held by the counterparty.I/the enterprise and its main management do not leak any insider information of Energy Technology or leverage insider
Counterparty Commitment onno insider trading information to conduct insider trading. If the above commitments are violated all losses caused to the listed company will
June 13 Long term Strictly
be borne. 2017 performed
After the completion of the major asset restructuring the enterprises that are controlled by those making the commitments
will avoid and reduce the related party transactions with Energy Technology as far as possible. For those related party
transactions that cannot be avoided or have reasonable reasons the enterprises that are controlled by those making the
commitments will sign agreements with Energy Technology and perform legal procedures in accordance with the
principles of justice fairness and compensation for equal value and shall in accordance with the provisions of relevant
Heyi Investment Commitment to laws regulations other normative documents and the Articles of Association of Yunnan Energy New Material Co. Ltd.Paul Xiaoming regulate related perform relevant internal decision-making approval procedures in accordance with the law and timely perform information June 13 Long term Strictly
Lee family party transactions disclosure obligations guarantee not to trade with Energy Technology under unfair conditions compared with the market 2017 performed
guarantee not to illegally transfer the funds and profits of Energy Technology by using related party transactions and do
not use such transactions to engage in any behavior that damages the legitimate rights and interests of Energy Technology
and other shareholders. If a breach of the above commitment results in damage to the interests of Energy Technology
those making the commitments will compensate the Energy Technology for the losses caused by the above acts to Energy
Technology.
1. At present those making the commitments are not directly or indirectly engaged in the same or similar business with
the existing business of Energy Technology or Shanghai Energy through other operating entities directly or indirectly
controlled by it or in the name of natural person and do not hold any position or act as any kind of consultant in any
operating entity with the main business same as or similar to that in Energy Technology or Shanghai Energy or engage in
any other competition with Energy Technology or Shanghai Energy. 2. The commitment maker guarantees that after the
Heyi Investment Commitment to completion of this major asset restructuring it will not carry out or operate the same or similar business with the main
Paul Xiaoming avoid horizontal business of Energy Technology or Shanghai Energy in its own way directly or indirectly through other business entities June 13 Long term Strictly
Lee family competition under its direct or indirect control; do not hold any position or act as any kind of consultant in any operating entity with 2017 performed
the same or similar business with Energy Technology or Shanghai Energy; do not provide technical services for existing
customers of Energy Technology or Shanghai Energy in the name of other than Energy Technology or Shanghai Energy;
avoid any horizontal competition. 3. If any loss is caused to Energy Technology or Shanghai Energy due to the
commitment maker’s breach of the above commitments the operating profit obtained shall be owned by Energy
Technology and all losses suffered by Energy Technology or Shanghai Energy shall be compensated.Heyi Investment Commitment on Before this major asset restructuring Energy Technology has been completely separated from other enterprises controlled
Paul Xiaoming ensuring the by the commitment maker in terms of business assets institutions personnel and finance. Energy Technology’s business June 13 Strictly
Lee family independence of assets institutions personnel and finance are independent. After the completion of this major asset restructuring the 2017
Long term performed
the listed commitment maker undertakes not to use the identity of the controlling shareholder or actual controller of Energy
562025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
company Technology to affect the independence of Energy Technology and to ensure the independence of Energy Technology in
business assets institutions personnel and finance as far as possible.There were administrative punishments in fire control and water affairs in Shanghai Energy. As of the date of this letter of
commitment Shanghai Energy and its subsidiaries do not have any administrative penalty that has not been implemented
or rectified. In November 2015 Shanghai Pudong New Area Administration of Work Safety ordered Shanghai Energy to
Commitment on rectify the three dichloromethane storage tanks within a time limit. Shanghai Energy has completed the rectification but
Paul Xiaoming the existence of has not completed the safety acceptance after the rectification. If the relevant competent departments in the local place
Lee family previous where Shanghai Energy and its subsidiaries are located in have made administrative punishment to Shanghai Energy and
May 25 Long term Strictly
administrative its subsidiaries for fire control water service or the three dichloromethane tanks at any time the commitment maker 2017 performed
penalty promises to make cash compensation for all economic losses suffered by Shanghai Energy or its subsidiaries within 30
days after the actual punishment or loss amount is determined so as to ensure that it will not have a material impact on the
production operation and financial situation of Shanghai Energy and its subsidiaries. Joint and several liability shall be
borne by those making the commitments.Commitment on Although I hold the certificate of permanent residence right of the United States I have not changed my nationality I am
Li Xiaohua capital source of still a Chinese nationality; my own investment in Shanghai Energy is all China’s income and does not involve the June 13 Long term Strictly
Shanghai Energy contribution of foreign exchange or foreign assets. 2017 performed
Shanghai
Hengzou
Enterprise
Management Commitment of This enterprise is the employee stock ownership platform of Shanghai Energy and the enterprise does not exist to raise
Firm (Limited the enterprise not funds in a non-public way to qualified investors. There is no asset management by the fund manager or general partner
Partnership belonging to nor does it serve as the manager of any private equity fund. Therefore the enterprise does not belong to the private
(formerly known private investment fund or a private fund manager in the Interim Measures for the Supervision and Administration of Private June 13 Strictly
as Zhuhai investment funds Investment Funds and the Measures for the Registration and Filing of Private Investment Fund Managers (for Trial 2017
Long term performed
Hengjie or a private fund Implementation) and does not need to follow the Interim Measures for the Supervision and Administration of Private
Enterprise manager Investment Funds and the Measures for the Registration and Filing of Private Investment Fund Managers (for Trial
Management Implementation) and other relevant laws and regulations to fulfill the registration and filing procedures.Firm (Limited
Partnership)
Commitment of The Company is not established by raising funds from qualified investors in a non-public way or doesn’t have the assets
the enterprise not managed by the fund manager or the general partner or act as the manager of any private investment fund. Therefore theKunming belonging to Company does not belong to the private investment funds or a private fund manager in the Interim Measures for theHuachen
Investment Co. private
Supervision and Administration of Private Investment Funds and the Measures for the Registration and Filing of Private June 13 Strictly
investment funds Investment Fund Managers (for Trial Implementation) and does not need to follow the Interim Measures for the 2017
Long term performed
Ltd or a private fund Supervision and Administration of Private Investment Funds and the Measures for the Registration and Filing of Private
manager Investment Fund Managers (for Trial Implementation) and other relevant laws and regulations to fulfill the registrationand filing procedures.During the term of office of Shanghai Energy or within 2 years after the resignation of Shanghai Energy it will not
directly or indirectly operate the same or similar business with Energy Technology or Shanghai Energy on its own or in
the name of others nor will it hold any post or provide any service in entities with the same or similar business with
Paul Xiaoming Non-competition Energy Technology or Shanghai Energy; if they violate the aforesaid non-competition commitment they shall pay a May 2 Strictly
Lee Li Xiaohua commitment penalty of RMB5 million to Energy Technology and shall turn over all the operating profits wages remuneration and 2017 Long term performed
other income earned by them due to the violation of the commitment to Energy Technology. If the aforesaid compensation
still cannot make up for Energy Technology Energy Technology has the right to request the breach party to be liable for
the loss suffered by Energy Technology.Paul Xiaoming Commitment on During the term of office at Shanghai Energy without the consent of Energy Technology it is not allowed to work part-
Lee Li Xiaohua no part-time time (except for directors and supervisors) in other companies and the income violating the prohibition of concurrent
May 2 Long term Strictly
work operation shall be owned by Energy Technology. 2017 performed
Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual
controller of the Company I as one of the heirs inherited 10416022 shares of the Company held by her according to her
Commitment to will and the contribution of the Company’s controlling shareholder Heyi Investment of RMB17.955 million. After
Jerry Yang Li ensure the succession I directly and indirectly hold 54655167 shares of the Company through Heyi Investment accounting for October 25 Strictlyindependence of 11.53% of the total share capital of the Company. My directly held shares are acquired by Ms. Wang Yuhua as one of 2018 Long term performed
listed companies counterparties through purchasing the equity of Shanghai Energy through issuing shares of the Company. Therefore with
regard to the independence of listed companies involved in this restructuring I hereby make the following confirmation
and commitment: before this restructuring Shanghai Energy has been completely separated from other enterprises under
572025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
my control in terms of business assets institutions personnel and finance and Shanghai Energy’s business assets
institutions personnel and finance are independent. After the completion of this restructuring I promise not to use the
identity of the actual controller of the listed company to affect the independence of the listed company and to ensure the
independence of the listed company in business assets institutions personnel and finance as far as possible.Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual
controller of the Company I as one of the heirs inherited 10416022 shares of the Company held by her according to her
will and the contribution of the Company’s controlling shareholder Heyi Investment of RMB17.955 million. After
succession I directly and indirectly hold 54655167 shares of the Company through Heyi Investment accounting for
11.53% of the total share capital of the Company. My directly held shares are acquired by Ms. Wang Yuhua as one of
counterparties through purchasing the equity of Shanghai Energy through issuing shares of the Company. To reduce and
standardize the related party transactions that may occur with the listed company I hereby make the following
commitments: after the completion of this restructuring the enterprises under my control will avoid and reduce the related
Commitment on party transactions with the listed company as much as possible. For the related party transactions that cannot be avoided or
Jerry Yang Li regulating related have reasonable reasons the enterprises under my control will follow the principles of justice fairness equal value and October 25 Long term Strictly
party transactions compensation with the listed company in accordance with the law sign the agreement perform the legal procedures and in 2018 performed
accordance with the provisions of relevant laws regulations other normative documents and the Articles of Association of
Yunnan Energy New Material Co. Ltd. perform the relevant internal decision-making approval procedures in accordance
with the law and timely perform the obligation of information disclosure ensure that transactions with listed companies
will not be conducted in an unfair manner compared with the market and that the funds and profits of listed companies
should not be transferred illegally by related party transactions nor will they engage in any act that damages the legitimate
rights and interests of listed companies and other shareholders. If there is any violation of the above commitments
resulting in damages to the interests of the listed company I will compensate the listed company for the losses caused by
the foregoing behavior to the listed Company.Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual
controller of the Company I as one of the heirs inherited 10416022 shares of the Company held by her according to her
will and the contribution of the Company’s controlling shareholder Heyi Investment of RMB17.955 million. After
succession I directly and indirectly hold 54655167 shares of the Company through Heyi Investment accounting for
11.53% of the total share capital of the Company. My directly held shares are acquired by Ms. Wang Yuhua as one of
counterparties through purchasing the equity of Shanghai Energy through issuing shares of the Company. Therefore To
protect the legitimate rights and interests of the listed company and other shareholders and avoid horizontal competition
with the listed company I hereby make the following solemn commitment: 1. At present I have not directly or indirectly
Commitment on engaged in the same or similar business with the existing business of the listed company or Shanghai Energy through other
Jerry Yang Li avoiding business entities directly or indirectly controlled by me or in the name of natural persons have not held any position or October 25 Strictlyhorizontal acted as any kind of consultant in any business entity with the same or similar main business as the listed company or 2018 Long term performed
competition Shanghai Energy or any other situation of horizontal competition with the listed company or Shanghai Energy. 2. I
guarantee that after the completion of this transaction I will not carry out or operate the same or similar business with the
main business of the listed company and Shanghai Energy through other business entities directly or indirectly controlled
by myself directly or indirectly; I will not hold any position or serve as any form of consultant in any business entity with
the same or similar business with the listed company or Shanghai Energy; do not provide technical services for listed
companies or existing customers of Shanghai Energy in the name of listed companies or other than Shanghai Energy;
avoid any horizontal competition. 3. If any loss is caused to the listed company or Shanghai Energy due to my violation of
the above commitments the operating profit obtained shall be owned by the listed company and all losses suffered by the
listed company or Shanghai Energy shall be compensated.(I). Company’s commitment: 1. there are no false records misleading statements or major omissions in the prospectus of
the Company’s initial public offering. 2. If any competent authority finds that the initial prospectus issued by the Company
The Company has false records misleading statements or major omissions which will make a significant and substantial impact on
controlling Commitment on judging whether it meets the requirements of the law the Company will repurchase all the new shares of the IPO in
Commitments shareholders and authenticity accordance with the law. 3. Within 10 trading days after the competent authority determines that the prospectus of the
made at the time the actual accuracy and Company has false records misleading statements or major omissions that have a significant and substantial impact on the
of IPO or controller completeness of judgment of whether the Company complies with the issuance conditions stipulated by the law the Board of Directors of
September Long term Strictly14 2016 performed
refinancing directors documents the Company shall formulate the share repurchase plan and submit it to the General Meeting for consideration andsupervisors and related to IPO approval and after it is approved reviewed or filed by the relevant competent department (if necessary) share repurchasesenior measures will be started and all new shares of the initial public offering will be repurchased according to law; the
management repurchase price (in case of ex-right and ex-dividend due to cash dividend share distribution conversion to share capital
and new share issuance the right shall be restored in accordance with the relevant provisions of Shenzhen Stock
Exchange the same below) shall be determined according to relevant laws and regulations and shall not be lower than the
582025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
issuance price of the initial public offering shares. 4. If the prospectus of the Company’s initial public offering contains
false records misleading statements or major omissions which causes investors to suffer losses in securities trading the
Company will compensate investors for losses according to law. (II). Commitment of the controlling shareholder and
actual controller of the Company: 1. there are no false records misleading statements or major omissions in the prospectus
of the Company’s initial public offering. 2. If any competent authority determines that there are false records misleading
statements or major omissions in the prospectus of the Company’s initial public offering which have a significant and
substantial impact on the judgment of whether it meets the issuance conditions prescribed by law Heyi Investment and the
family will buy back the transferred original restricted shares according to law; Heyi Investment and the family will
formulate the share repurchase plan within 10 trading days after the above matters are identified the original restricted
shares issued by the Company’s shareholders at the time of initial public offering shall be repurchased in accordance with
the law by means of centralized bidding transaction in secondary market bulk transaction agreement transfer tender
offer etc. The repurchase price is determined according to the negotiated price or secondary market price but not lower
than the original transfer price and the price determined according to relevant laws and regulations and regulatory rules. If
Heyi Investment and the family buy back the original restricted shares that have been transferred to trigger the tender offer
conditions Heyi Investment and the family will perform the tender offer procedures in accordance with the law and
perform the corresponding information disclosure obligations. 3. If the prospectus of the Company’s initial public offering
contains false records misleading statements or major omissions which causes investors to suffer losses in securities
trading Heyi Investment and the family will compensate investors for losses according to law. (III). Commitment of
directors supervisors and senior managers of the Company: 1. the prospectus of the issuer’s initial public offering doesn’t
contain false records misleading statements or major omissions and I am jointly and severally liable for its authenticity
accuracy and completeness. 2. If the prospectus of the issuer’s initial public offering contains false records misleading
statements or major omissions which causes investors to suffer losses in securities trading I will compensate investors for
losses according to law.(I). Commitment of controlling shareholders and actual controllers’ shareholding intention and reduction intention: 1. as
the controlling shareholder and actual controller of the Company Heyi Investment and the family hold the Company’s
shares in strict accordance with the provisions of laws regulations normative documents and regulatory requirements and
abide by the share locking period; after the expiration of the locking period the Company’s shares held by Heyi
Investment and the family’s reduction shall comply with the requirements of relevant laws regulations normative
documents and rules of the stock exchange; 2. Heyi Investment and the family shall not reduce the shares of the Company
directly held within three years after the Company’s listing; after the Company’s listing for three years the shares of the
Company directly or indirectly held by Heyi Investment and the family transferred each year shall not exceed 25% of the
total shares of the Company directly or indirectly held by them. 3. Within two years after the expiration of the equity lock-
in period promised by Heyi Investment and the family the shares of the Company shall be reduced at a price not lower
than the issue price of the Company’s initial public offering shares (in case of ex-right and ex-dividend matters the issue
Controlling price shall be treated as ex-right and ex-dividend accordingly). Within two years after the expiration of the lock-up period
shareholder the total number of shares held by Heyi Investment and the family shall not exceed 30% of the total shares held by Heyi
actual controller Investment and the family directly or indirectly before the issuance. 4. Within two years after the expiration of the
and Shanghai About shareholding lock-in period of Heyi Investment and the family’s commitment the price of shares of the Company reduced Within the
Guohe Modern shareholding by Heyi Investment and the family through the secondary market will be determined according to the market price at that performance
Services Equity intention and time on the premise of meeting the commitments made by Heyi Investment and the family and the specific reduction plan
September Share holding period
Investment Fund reduction will be formulated according to the market situation at that time. 5. Heyi Investment and the family promise to make an
14 2016 period strictly
Partnership intention announcement through the Company three trading days in advance when carrying out the reduction and complete the performed
(Limited announcement within six months and fulfill the obligation of information disclosure accurately and completely in
Partnership) accordance with the rules of the stock exchange. (II). Shanghai Guohe’s commitment to shareholding intention andreduction intention: 1. Within two years after the expiration of the shareholding locking period promised by the Company
the Company intends to reduce its shareholding by means of including but not limited to centralized competitive trading
in the secondary market block trading agreement-based transfer etc. The reduction price will not be lower than the price
of net assets per share and the specific reduction price will be determined according to the market price at the time of the
reduction on the premise of meeting the commitments made by the Company; the specific reduction plan will be based on
the market conditions at that time. The specific reduction plan will be formulated in accordance with the market conditions
and the operating condition of the Company. 2. The enterprise commits that it will make an announcement through the
Company three days ahead of schedule in the implementation of the reduction. At the same time it will fulfill the
obligation of information disclosure accurately and completely in accordance with the rules of the stock exchange except
when it holds shares less than 5% equity of the Company. 3. The enterprise will strictly fulfill the above commitments
and promise to abide by the following binding measures: (1) if it fails to fulfill the above commitments the Company’s
cash dividends I should receive will be withheld by the Company and owned by the Company; (2) if it fails to fulfill the
592025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
above commitments it will bear relevant legal liabilities according to laws and regulations.Paul Xiaoming Lee Li Xiaohua Xu Ming (resigned) Ma Weihua and Wang Xiaolu (resigned) directors and senior
management of the Company have made the following commitments: Within 36 months from the date of listing of the
Company’s shares I will not transfer or delegate the management of the Company’s shares directly or indirectly held prior
to this offering nor will I cause the Company to repurchase such shares. After the expiration of the lockup period of the
About above commitment during the period when I am a director or senior management of the Company the number of shares During the periodDirectors and shareholding of the Company directly or indirectly held by me to be transferred each year shall not exceed 25% of the total number of of shareholding
Within the
senior intention and shares of the Company held by me. I will not transfer the shares of the Company directly or indirectly held by me within 6 September and serving as a
performance
management of reduction months after my departure. If I reduce my holding of the Company’s shares within two years after the expiration of the 14 2016 director and senior
period
Company intention lock-up period the price of the reduction shall not be lower than the issue price of the Company’s initial public offering. If management of
strictly
the closing price of the Company’s shares is lower than the issue price for 20 consecutive trading days within 6 months the Company performed
after the listing of the Company or if the closing price is lower than the issue price at the end of the 6-month period after
the listing of the Company the lock-up period of the Company’s shares will be automatically extended for 6 months. I will
not affect the effectiveness of the commitment due to the change of position or resignation and I will continue to fulfill
the above commitment.
1. If the Company fails to take the specific measures as promised to stabilize the stock price the Company undertakes to
accept the following binding measures: (1) the Company will publicly explain the specific reasons for not taking the above
measures in the General Meeting and the newspapers designated by the CSRC and apologize to the shareholders of the
Company and the public investors; (2) If the investor suffers losses in the securities trading due to the failure to fulfill the
commitments the Company will compensate the investor for the losses according to law after being recognized by the
CSRC the stock exchange or the judicial organ; (3) The commitment of stock price stability is the true meaning of the
Company. The responsible parties voluntarily accept the supervision of the regulatory body self-discipline organization
and the public. In case of the violation of the relevant commitments the main body will bear corresponding
responsibilities according to law. 2. If the controlling shareholder and the actual controller have delivered the notice of
increase to the Company but fail to fulfill the obligation of increasing the holdings the Company has the right to detain
the equal amount of the cash dividends payable to the controlling shareholder and the actual controller until the controlling
Commitment on shareholder and the actual controller fulfill their obligation to increase. 3. If a director or senior manager fails to fulfill his
The Company remedial obligation to increase his or her holdings the Company shall have the right to detain salaries and cash dividends of September Strictlymeasures for directors and senior management until the directors and senior managers fulfill their obligations to increase their holdings. 14 2016 Long term performed
breaking faith 4. If there are any false records misleading statements or major omissions in the prospectus of this public offering of
shares the Company will make a timely announcement and the Company will disclose in its regular report that the
Company its controlling shareholders actual controllers and its directors supervisors and senior management buy back
shares due to information disclosure violations performance of commitments such as acquisition of shares and
compensation for losses as well as remediation and correction in case of failure to perform commitments. 5. If the
Company fails to perform has failed to perform or fails to perform on schedule due to objective reasons beyond the
control of the Company such as changes in relevant laws and regulations policies natural disasters and other force
majeure the Company shall take the following measures: (1) Timely and fully disclose the specific reasons for the
Company’s failure failure to fulfill its commitments or failure to fulfill its commitments on schedule; (2) make
supplementary or alternative commitments to the investors of the Company (relevant commitments shall be subject to
relevant approval procedures in accordance with laws regulations and the articles of association) so as to protect the
rights and interests of investors as much as possible.
1. If the controlling shareholder and the actual controller have delivered the notice of increase to the Company but failed
to fulfill the obligation of increasing the holdings the Company has the right to detain the equal amount of the cash
dividends payable to the controlling shareholder and the actual controller until the controlling shareholder and the actual
controller fulfill their obligation to increase. 2. The controlling shareholder and the actual controller have signed the
commitment letter of false record misleading statement or major omission in the prospectus of this public offering of
Commitment on shares. The controlling shareholder and the actual controller take the profit distribution enjoyed by the controllingControlling remedial shareholder and the actual controller in the Company’s profit distribution plan of the current year and the following yearsshareholder measures for as the performance guarantee of the above commitment and if the controlling shareholder and the actual controller fail to
September Long term Strictly
actual controller breaking faith fulfill the above-mentioned obligation of acquisition or compensation the shares of the Company held by the controlling
14 2016 performed
shareholder and the actual controller shall not be transferred before fulfilling the above-mentioned commitment. 3. The
controlling shareholder and the actual controller have signed the promise of controlling shareholder and actual controller’s
shareholding intention and reduction intention. The controlling shareholder and the actual controller will strictly carry out
the above commitments and promise to abide by the following restraint measures: (1) If the above commitments are not
performed the cash dividends to be obtained by the controlling shareholder and the actual controller shall be withheld by
the Company and owned by the Company; (2) if the above commitments are not performed the controlling shareholder
602025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
and the actual controller shall extend the lock-in period for six months after the lock-in period they promised; (3) The
remuneration that the employees in the Company should receive from the Company shall be withheld by the Company and
owned by the Company; (4) if the above commitments are not performed and the investors suffer losses in the securities
trading the controlling shareholder and the actual controller will compensate the investors for the losses according to law.
4. If the Company fails to perform has failed to perform or fails to perform on schedule due to objective reasons beyond
the control of the Company such as changes in relevant laws and regulations policies natural disasters and other force
majeure the Company shall take the following measures: (1) Timely and fully disclose the specific reasons for the
Company’s failure failure to fulfill its commitments or failure to fulfill its commitments on schedule; (2) make
supplementary or alternative commitments to the investors of the Company (relevant commitments shall be subject to
relevant approval procedures in accordance with laws regulations and the articles of association) so as to protect the
rights and interests of investors as much as possible.
1. If any director or senior management of the Company fails to fulfill his obligation to increase the holdings the
Company shall have the right to detain directors and senior management salaries and cash dividends until the directors and
senior managers fulfill their obligations to increase their holdings. 2. The directors supervisors and senior managers have
made corresponding commitments on the information disclosure of IPO and listing. The directors supervisors and senior
managers take the dividend of the Company in the current year and the following years obtained by holding the
Directors Commitment on Company’s shares directly or indirectly and the salary received from the Company in the current year and the following
supervisors and remedial years as the performance guarantee of the above commitments. If the director supervisor or senior manager fails to September Strictly
senior managers measures for perform has failed to perform or fails to perform on schedule due to objective reasons beyond the control of the director 14 2016
Long term performed
breaking faith supervisor or senior manager such as changes in relevant laws and regulations policies natural disasters and other force
majeure the director supervisor or senior manager shall take the following measures: (1) Timely and fully disclose the
specific reasons for the Company’s failure failure to fulfill its commitments or failure to fulfill its commitments on
schedule; (2) make supplementary or alternative commitments to the investors of the Company (relevant commitments
shall be subject to relevant approval procedures in accordance with laws regulations and the articles of association) so as
to protect the rights and interests of investors as much as possible.
1. The undertaker does not and will not directly or indirectly engage in any activity that constitutes horizontal
competition with the existing and future business of the Company and its holding subsidiaries and is willing to assume
compensation liability for the economic losses caused to the Company due to violation of the above commitments. 2. For
other enterprises directly and indirectly controlled by the undertaker the undertaker will adopt the representative office
and personnel (including but not limited to directors general managers etc.) and the controlling position of the undertaker Effective during
in such enterprises to ensure that such enterprises perform the same obligations as the undertaker under this letter of the period in
Paul Xiaoming Commitment on commitment to ensure that such enterprises do not compete with the Company and its holding subsidiaries in the same which the
Lee family Heyi avoiding industry and the undertaker is willing to bear all compensation liabilities for the economic losses caused to the Company November undertaker and the Strictly
Investment and horizontal due to violation of the above commitments. 3. If the Company further expands its scope of business on the basis of its 10 2012 companies he/she performed
Heli Investment competition existing business and the undertaker and the enterprise controlled by the undertaker have carried out production and controls have
operation on this the undertaker promises to transfer the possible horizontal competition business or equity held by this relation with the
enterprise and agrees that the Company has the priority to acquire and operate under the same commercial conditions. 4. Company
Except for the investment in the Company the undertaker will not invest in or operate the products (or similar products or
products with alternative function) developed produced or operated by the Company and its holding subsidiaries in any
way in any place. 5. This commitment letter is effective during the period when the undertaker and the company
controlled by the undertaker are related parties of the Company.
1. The Company and its controlling shareholder and the actual controller make a commitment to the Company’s ability to
The Company The commitment fill in the return measures. It does not exceed the authority to interfere in the Company’s management activities and does
controlling that the not occupy the Company’s interests. 2. Directors and senior managers make a commitment to fulfill the Company’s return
shareholder and Company’s measures: (1) Promise not to transfer interests to other units or individuals free of charge or under unfair conditions and
actual controller compensation not to damage the interests of the Company in other ways; (2) Promise to restrict the post consumption behavior of September Strictly
director and measures can be directors and senior managers; (3) Promise not to use the Company’s assets to engage in investment and consumption 14 2016
Long term performed
senior effectively activities unrelated to the performance of its duties; (4) Commit that the remuneration system formulated by the board of
management performed directors or remuneration committee is linked to the implementation of the Company’s measures to fill the return; (5)Promise that the exercise conditions of the Company’s equity incentive to be announced are linked to the implementation
of the Company’s compensation measures.Heyi Investment The undertaker close relative and the affiliated enterprise under control strictly restrict the funds of the Company and its
a controlling Commitment onavoiding subsidiary companies in the operating capital transactions between the Company and its subsidiaries; the Company and itsshareholder and occupation of the subsidiaries shall not be required to pay wages welfare insurance advertising and other expenses; the Company and its
September Long term Strictly
family members Company’s funds subsidiary funds are not directly or indirectly provided to the undertaker close relatives and controlled affiliated
14 2016 performed
of Paul Xiaoming enterprises including: 1. to lend funds to the undertaker close relatives and controlled affiliated enterprises for use with
612025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Lee the actual compensation or free of charge; 2. to provide entrusted loans without commercial substance to the undertaker close
controllers of the relatives and controlled affiliated enterprises through banks or non-bank financial institutions; 3. to entrust the undertaker
Company close relatives and controlled affiliated enterprises to carry out investment activities without commercial substance; 4. to
issue commercial acceptance bills without real transaction background for the undertaker close relatives and controlled
affiliated enterprises; 5. to repay debts on behalf of the undertaker close relatives and controlled affiliated enterprises; 6.to provide funds to the undertaker close relatives and controlled affiliated enterprises in other ways without consideration
for goods and services; 7. Other methods recognized by China Securities Regulatory Commission.Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual
controller of the Company I as one of the heirs inherited 10416022 shares of the Company held by her according to her
will and the contribution of the Company’s controlling shareholder Heyi Investment of RMB17.955 million. I promise that
I will strictly fulfill the commitments disclosed in the initial public offering and listing prospectus of the controlling
shareholder and actual controller. If the commitments of the controlling shareholder and actual controller are not
performed cannot be performed or cannot be performed on schedule (except for objective reasons beyond the control of
controlling shareholders and actual controllers such as changes in relevant laws and regulations policies natural disasters
and another force majeure) I promise to strictly abide by the following measures: 1. If the controlling shareholder or the
actual controller has served the Company with the increase notice but failed to fulfill the increase obligation the Company
has the right to withhold the cash dividends payable to the same amount until the controlling shareholder or the actual
controller fulfills the increase obligation; 2. The controlling shareholder and the actual controller have signed the
commitment letter of false record misleading statement or major omission in the prospectus of this public offering of
shares. The controlling shareholder and the actual controller take the profit distribution enjoyed by the controlling
shareholder and the actual controller in the Company’s profit distribution plan of the current year and the following years
Commitment on as the performance guarantee of the above commitment and if the controlling shareholder and the actual controller fail to
remedial perform the above-mentioned acquisition or compensation obligations the shares of the Company held by the controllingJerry Yang Li measures for shareholder and the actual controller shall not be transferred before the above- mentioned commitments are performed; 3.October 25 Long term Strictly
breaking faith The controlling shareholder and the actual controller have signed the commitment of the controlling shareholder and the
2018 performed
actual controller’s shareholding intention and reduction intention. The controlling shareholder and the actual controller
will strictly perform the above commitments and promise to abide by the following binding measures: (1) If the above
commitments are not performed the cash dividends to be obtained by the controlling shareholder and the actual controller
shall be withheld by the Company and owned by the Company; (2) if the above commitments are not performed the
controlling shareholder and the actual controller shall extend the lock-in period for half a year; (3) The remuneration that
the employees in the Company should receive from the Company shall be withheld by the Company and owned by the
Company; (4) if the above commitments are not performed and the investors suffer losses in the securities trading the
controlling shareholder and the actual controller will compensate the investors for the losses according to law; 4. If the
Company fails to perform has failed to perform or fails to perform on schedule due to objective reasons beyond the
control of the Company such as changes in relevant laws and regulations policies natural disasters and other force
majeure the Company shall take the following measures: (1) Timely and fully disclose the specific reasons for the
Company’s failure failure to fulfill its commitments or failure to fulfill its commitments on schedule; (2) make
supplementary or alternative commitments to the investors of the Company (relevant commitments shall be subject to
relevant approval procedures in accordance with laws regulations and the articles of association) so as to protect the
rights and interests of investors as much as possible.
1. The undertaker does not and will not directly or indirectly engage in any activity that constitutes horizontal
competition with the existing and future business of the Company and its holding subsidiaries and is willing to assume
compensation liability for the economic losses caused to the Company due to violation of the above commitments. 2. For
other enterprises directly and indirectly controlled by the undertaker the undertaker will adopt the representative office
and personnel (including but not limited to directors general managers etc.) and the controlling position of the undertaker
Commitment on in such enterprises to ensure that such enterprises perform the same obligations as the undertaker under this letter of
avoiding commitment to ensure that such enterprises do not compete with the Company and its holding subsidiaries in the same
Jerry Yang Li horizontal industry and the undertaker is willing to bear all compensation liabilities for the economic losses caused to the Company October 25 Strictlycompetition with due to violation of the above commitments. 3. If the Company further expands its scope of business on the basis of its 2018 Long term performed
Energy existing business and the undertaker and the enterprise controlled by the undertaker have carried out production and
Technology operation on this the undertaker promises to transfer the possible horizontal competition business or equity held by this
enterprise and agrees that the Company has the priority to acquire and operate under the same commercial conditions. 4.Except for the investment in the Company the undertaker will not invest in or operate the products (or similar products or
products with alternative function) developed produced or operated by the Company and its holding subsidiaries in any
way in any place. 5. This commitment letter is effective during the period when the undertaker and the company
controlled by the undertaker are related parties of the Company.
622025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual
controller of the Company I as one of the heirs inherited 10416022 shares of the Company held by her according to her
will and the contribution of RMB17.955 million by Heyi Investment the Company’s controlling shareholder. With respect
to the Company’s shares indirectly held by me through Heyi Investment my shareholding intention and reduction
intention are as follows: 1. as the actual controller of the Company I hold the Company’s shares in strict accordance with
the provisions of laws regulations normative documents and regulatory requirements and abide by the share locking
period; after the expiration of the locking period I shall reduce my holding of the Company’s shares in accordance with
the requirements of relevant laws regulations normative documents and rules of the stock exchange; 2. within three years
after the listing of the Company I will not reduce the shares of the Company I directly hold; upon expiry of three years
after the listing of the Company I will transfer the shares of the Company I directly hold each year not more than 25% of
the total shares of the Company I directly hold; 3. within two years after the locking period I committed the Company’s
Commitment on shares will be reduced at a price not lower than the initial public offering price of the Company. If the Company’s shares
Within the
Jerry Yang Li reduction are subject to ex-right and ex-dividend during the period such as dividend distribution stock distribution capital reserve October 25
performance
intention converted to share capital the issue price shall be ex-right and ex- dividend accordingly; 4. After two years after the 2018
Holding period period
expiration of my commitment to hold shares the price at which I reduce my holdings of the Company’s shares through the strictly
secondary market will be determined based on the market price at the time of the reduction provided that all my performed
previously made commitments are fulfilled. The specific reduction plan will be drawn up according to the market situation
at that time; 5. I promise that I will announce the implementation of the reduction through the Company three trading days
in advance and complete the announcement within six months. At the same time I will fulfill the obligation of
information disclosure accurately and completely in accordance with the rules of the stock exchange; 6. I will strictly
fulfill the above commitments and promise to abide by the following binding measures: (1) if I fail to fulfill the above
commitments the Company’s cash dividends I should receive will be withheld by the Company and owned by the
Company; (2) the Company will own the profits I get from reducing the shares held in violation of the above
commitments; (3) The remuneration that the employees in the Company should receive from the Company shall be
withheld by the Company and owned by the Company; (4) if the above commitments are not performed and the investors
suffer losses in the securities trading I will compensate the investors for the losses in accordance with the law.
(1) Except for the capital occupation disclosed in writing to the relevant intermediary institutions there is no other capital
occupation that shall be disclosed but not disclosed in accordance with the laws and regulations and the relevant
provisions of the CSRC for the time being by the undertaker close relatives controlled affiliated enterprises and the
Company and its subsidiaries; (2) The undertaker close relatives and controlled affiliated enterprises will strictly limit the
occupation of funds of the Company and its subsidiaries in the operational capital transactions with the Company and its
subsidiaries; (3) The undertaker close relatives and controlled affiliated enterprises shall not require the Company and its
subsidiaries to advance wages welfare insurance advertising and other expenses or require the Company and its
subsidiaries to bear costs and other expenses on behalf of them; (4) The undertaker close relatives and controlled
affiliated enterprises do not seek to provide the funds of the Company and its subsidiaries directly or indirectly to the
undertaker close relatives and controlled affiliated enterprises in the following ways including: a. To lend funds to the
Commitment on undertaker close relatives and controlled affiliated enterprises for use with compensation or free of charge; b. Provide
avoiding capital entrusted loans without commercial substance to the undertaker close relatives and controlled affiliated enterprises
Jerry Yang Li occupation of through banks or non-bank financial institutions; c. Entrust the undertaker close relatives and controlled affiliated October 25 Long term Strictly
Energy enterprises to carry out investment activities without commercial substance; d. To issue commercial acceptance bills 2018 performed
Technology without real transaction background for the undertaker close relatives and controlled affiliated enterprises; e. Repay debts
on behalf of the undertaker close relatives and controlled affiliated enterprises; f. Provide funds to the undertaker close
relatives and controlled affiliated enterprises in other ways without consideration for goods and services; g. Other methods
recognized by China Securities Regulatory Commission; (5) If the undertaker close relatives and controlled affiliated
enterprises occupy the funds of the Company and its subsidiaries and require the Company and its subsidiaries to provide
guarantees in violation of laws and regulations the Company’s board of directors shall not transfer the shares of the
Company held and controlled before all the occupied funds are returned and all the illegal guarantees are released and
handle the procedures of share locking for the relevant parties. The board of directors of the Company shall within 5
trading days from the date of knowing the fact that the undertaker close relatives and controlled affiliated enterprises
occupy the funds of the Company and its subsidiaries and the Company and its subsidiaries provide guarantees in
violation of laws and regulations handle the locking procedures for the relevant parties.Due to the death of Ms. Wang Yuhua a member of Paul Xiaoming Lee’s family who is the shareholder and actual Within the
Commitment on controller of the Company I as one of the heirs inherited 15624033 shares of the Company held by her according to her performance
Sherry Lee reduction will and the contribution of the Company’s controlling shareholder Heyi Investment of RMB9.045 million. Before October 25 Share holding period
intention inheritance I have held 27593884 shares of the Company of which 15997000 shares were held at the time of IPO and 2018 period strictly
listing of the Company 11596884 shares of the Company acquired by the Company’s issuance of shares to purchase performed
632025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
shares of Shanghai Energy. After inheritance I hold directly and hold 65503802 shares of the Company indirectly
through Heyi Investment accounting for 13.82% of the total share capital of the Company. With respect to locking period
for the Company’s shares directly and indirectly held by me I commit as follows: 1. as the actual controller of the
Company I hold the Company’s shares in strict accordance with the provisions of laws regulations normative documents
and regulatory requirements and abide by the share locking period; after the expiration of the locking period I shall
reduce my holding of the Company’s shares in accordance with the requirements of relevant laws regulations normative
documents and rules of the stock exchange; 2. within three years after the listing of the Company I will not reduce the
shares of the Company I directly hold; upon expiry of three years after the listing of the Company I will transfer the
shares of the Company I directly hold each year not more than 25% of the total shares of the Company I directly hold; 3.within two years after the locking period I committed the Company’s shares will be reduced at a price not lower than the
initial public offering price of the Company. If the Company’s shares are subject to ex-right and ex-dividend during the
period such as dividend distribution stock distribution capital reserve converted to share capital the issue price shall be
ex-right and ex- dividend accordingly; 4. After two years after the expiration of my commitment to hold shares the price
at which I reduce my holdings of the Company’s shares through the secondary market will be determined based on the
market price at the time of the reduction provided that all my previously made commitments are fulfilled. The specific
reduction plan will be drawn up according to the market situation at that time; 5. I promise that I will announce the
implementation of the reduction through the Company three trading days in advance and complete the announcement
within six months. At the same time I will fulfill the obligation of information disclosure accurately and completely in
accordance with the rules of the stock exchange; 6. I will strictly fulfill the above commitments and promise to abide by
the following binding measures: (1) if I fail to fulfill the above commitments the Company’s cash dividends I should
receive will be withheld by the Company and owned by the Company; (2) the Company will own the profits I get from
reducing the shares held in violation of the above commitments; (3) The remuneration that the employees in the Company
should receive from the Company shall be withheld by the Company and owned by the Company; (4) if the above
commitments are not performed and the investors suffer losses in the securities trading I will compensate the investors for
the losses in accordance with the law.
1. Neither to tunnel to other units or individuals without compensation or under unfair conditions nor to damage the
Company’s interests in other ways; 2. to restrict my position-related consumption activities; 3. not to use the Company’s
assets for investment and consumption activities not related to execution of my duties; 4. to link the remuneration system
Commitment on formulated by the Board of Directors or the Remuneration Committee or Assessment Committee of the Company with the
dilution on execution of the return recovery measures; 5. to link the vesting conditions with the implementation of the return recovery
current returns as measures if the Company will implement any share incentive scheme in the future; 6. since the date of this commitment up
Directors and a result of the to completion of this public offering of convertible corporate bonds if the CSRC imposes other new regulatory
senior public offering of requirements in relation to the return recovery measures and its commitments and such commitments cannot meet such May 14 Strictly
management of convertible rules of the CSRC I commit to issue supplemental undertakings in accordance with the latest requirements of the CSRC. 2019 Long term performed
Company corporate bonds To ensure the proper implementation of the return recovery measures I commit to strictly perform the above
and the return commitments. If I breach or refuse to fulfill the above commitments I will perform obligations of interpretation and
recovery apology as required under the Guiding Opinions on Matters relating to the Dilution on Current Returns as a result of
measures Initial Public Offering Refinancing and Major Asset Restructuring (CSRC Announcement No. [2015] 31) and agree that
relevant regulatory or self-regulation measures shall be imposed or taken in accordance with the relevant provisions and
rules specified or published by CSRC and Shenzhen Stock Exchange; if the Company or investors suffered losses as a
result of my breach or refusal I am willing to assume relevant liability for compensation.Commitment on 1. Not interfere with the operation and management activities of the Company beyond the authority and not encroach on
dilution on the interests of the Company; 2. since the date of this commitment up to completion of the convertible corporate bonds if
current returns as the CSRC imposes other new regulatory requirements in relation to the return recovery measures and its commitments and
Company’s actual a result of the such commitments cannot meet such rules of the CSRC I commit to issue supplemental undertakings in accordance with
controller and public offering of the latest requirements of the CSRC. To ensure the proper implementation of the return recovery measures I commit to
controlling convertible strictly perform the above commitments. If I breach or refuse to fulfill the above commitments I will perform obligations
May 14 Long term Strictly
shareholder corporate bonds of interpretation and apology as required under the Guiding Opinions on Matters relating to the Dilution on Current
2019 performed
and the return Returns as a result of Initial Public Offering Refinancing and Major Asset Restructuring (CSRC Announcement No.recovery [2015] 31) and agree that relevant regulatory or self-regulation measures shall be imposed or taken in accordance with the
measures relevant provisions and rules specified or published by CSRC and Shenzhen Stock Exchange; if the Company or investorssuffered losses as a result of my breach or refusal I am willing to assume relevant liability for compensation.All directors of Commitment on
Energy the authenticity
All directors of the Company commit that the report on this offering and the announcement on listing don’t contain false
accuracy and records misleading statements or major omissions and they will jointly and severally liable for its authenticity accuracy
September Long term Strictly
Technology 3 2020 performedcompleteness of and completeness.
642025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
information
submitted in
connection with
the non-public
offering of A
shares in 2020
Commitment on
dilution on 1. I promise not to interfere with the operation and management activities of the Company beyond the authority and not
current returns as encroach on the interests of the Company; 2. I commit to proper implementation of the current return recovery measures
Controlling a result of the formulated by the Company and fulfill any commitment I make in relation to the current return recovery measures and
shareholder and non-public assume the liability for compensation to the Company or investors according to law if I violate such commitments and as a March 23 Strictly
actual controller offering of A result cause any loss to the Company or investors; 3. since the date of this commitment up to completion of this non-public 2020
Long term performed
shares in 2020 offering of shares by Energy Technology if the CSRC imposes other new regulatory requirements in relation to the return
and the return recovery measures and its commitments and such commitments cannot meet such rules of the CSRC I commit to issue
recovery supplemental undertakings in accordance with the latest requirements of the CSRC.measures
Commitment on 1. I promise not to tunnel to other units or individuals without compensation or under unfair conditions or to damage the
dilution on Company’s interests in other ways; 2. I commit to restrict my position-related consumption activities; 3. I commit to not
current returns as use the Company’s assets for investment and consumption activities not related to execution of my duties; 4. I commit to
Directors and a result of the link the remuneration system formulated by the Board of Directors or the Remuneration Committee or Assessment
senior non-public Committee of the Company with the execution of the return recovery measures; 5. I commit to link the vesting conditions November Strictly
management of offering of A with the implementation of the return recovery measures if the Company will implement any share incentive scheme in the 21 2021 Long term performed
Company shares in 2021 future; 6. since the date of this commitment up to completion of this non-public offering of shares if the CSRC imposes
and the return other new regulatory requirements in relation to the return recovery measures and its commitments and such commitments
recovery cannot meet such rules of the CSRC I commit to issue supplemental undertakings in accordance with the latest
measures requirements of the CSRC.Commitment on
dilution on I promise not to interfere with the operation and management activities of the Company beyond the authority and not
current returns as encroach on the interests of the Company; I commit to proper implementation of the current return recovery measures
Controlling a result of the formulated by the Company and fulfill any commitment I make in relation to the current return recovery measures and
shareholder and non-public assume the liability for compensation to the Company or investors according to law if I violate such commitments and as a Novemberoffering of A result cause any loss to the Company or investors; since the date of this commitment up to completion of this non- public 21 2021 Long term
Strictly
actual controller performedshares in 2021 offering of shares by the Company if the CSRC imposes other new regulatory requirements in relation to the return
and the return recovery measures and its commitments and such commitments cannot meet such rules of the CSRC I commit to issue
recovery supplemental undertakings in accordance with the latest requirements of the CSRC.measures
1. During the course of this transaction the listed company shall promptly provide relevant information to the
intermediaries providing professional services for this transaction including audit valuation legal and financial advisory
Letter of services. The listed company warrants that the information provided is true accurate and complete containing no false
Commitment records misleading statements or material omissions; that all signatures and seals on the documents are authentic; and
regarding the that all copies are consistent with the originals. If the listed company or investors suffer losses due to false representations
Listed company truthfulness
misleading statements or material omissions in information provided or disclosed in relation to this transaction the
accuracy and counterparty shall be responsible for the compensation in accordance with the law. 2. During the participation in this
December Long term Performed
completeness of transaction the listed company shall in accordance with relevant laws regulations rules and the provisions of the CSRC
12 2025 normally
information and the stock exchange timely disclose information concerning this transaction. The listed company warrants that such
provided information is true accurate and complete containing no false records misleading statements or material omissions. 3.The listed company warrants that it has the authority to execute this letter of commitment. Upon formal execution this
letter of commitment shall constitute a valid legal and binding commitment on the listed company which shall bear
corresponding legal liabilities.Listed company Letter of
statement and 1. During the past five years the listed company has not been subject to any administrative penalties or criminal penalties
commitment related to the securities market. 2. The listed company has maintained a good record of integrity over the past five years.regarding There are no circumstances involving failure to repay substantial debts on time or failure to fulfill commitments. 3. There December Performed
legality are no pending or foreseeable material litigations arbitrations or administrative penalties. The listed company is not 12 2025
Long term normally
compliance and currently under investigation by judicial authorities for suspected crimes nor under investigation by the CSRC for
integrity suspected violations of laws or regulations.
652025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Listed company Statement
regarding the
non-existence of
circumstances
stipulated in
Article 12 of the
Regulatory
Guidelines for
Listed
Companies No.
7– Regulation of
Abnormal Stock There are no circumstances where the listed company is currently under investigation or inquiry for suspected insider
Transactions trading related to this transaction. Furthermore within the past 36 months the listed company has not been subject to
Related to Major administrative penalties by the CSRC or criminal liability pursued by judicial authorities due to insider trading related to
Asset major asset reorganizations. Finally there are no circumstances under Article 12 of the Regulatory Guidelines for Listed
December Long term Performed
Restructurings of Companies No. 7 and Article 30 of the Shenzhen Stock Exchange Self-discipline Supervisory Guidelines for Listed
12 2025 normally
Listed Companies No.8 that would disqualify the listed company from participating in any major asset reorganization of listed
Companies and companies.Article 30 of the
Shenzhen Stock
Exchange Self-
discipline
Supervisory
Guidelines for
Listed
Companies No.8
– Material Asset
Reorganisations
Listed company 1. The Committing Party warrants that effective confidentiality measures have been taken and confidentiality obligations
Statement have been fulfilled regarding this transaction so as to prevent affiliates employees and other relevant entities or
regarding individuals of the Committing Party from engaging in illegal activities such as insider trading or securities market
confidentiality manipulation in connection with this transaction. 2. The Committing Party shall strictly abide by the confidentiality system
measures and the and fulfill confidentiality obligations. Prior to the lawful disclosure of inside information the Committing Party shall not
December Long term Performed
confidentiality disclose or leak such inside information to the public nor shall it trade the listed company's shares based on such inside
12 2025 normally
system information or advise others to trade such shares. 3. This Statement shall become effective as of the date of signature bythe Committing Party. Should the Committing Party violate the foregoing commitments and thereby cause losses to
investors it shall bear corresponding legal liabilities in accordance with the law.Listed company As of the date of the letter of commitment the listed company does not have any of the following circumstances stipulated
in Article 11 of the Measures for the Administration of Registration of Securities Issuance by Listed Companies that would
disqualify it from issuing shares to specific objects: (1) The use of the previous proceeds is changed and not corrected or
Letter of without the approval of the General Meeting; (2) The financial statements prepared and disclosed in the past year do not
commitment significantly comply with the provisions of the accounting standards for business enterprises or relevant information
regarding the disclosure rules. Additionally the financial accounting reports for the past year have received an adverse opinion or a
non-existence of disclaimer of opinion in the audit report. Furthermore the financial accounting reports have received a qualified opinion in
circumstances the audit report and the issues involved in the qualified opinion continue to have a significant adverse impact on the listed December Performed
disqualifying the company. Except for the issuance involving major asset restructuring; (3) Current directors and senior management 12 2025
Long term normally
issuance of personnel have been subject to administrative penalties by the CSRC in the past three years or have been publicly
shares to specific condemned by the stock exchange in the past year; (4) The listed company or its current directors and senior management
objects are under criminal investigation by judicial authorities or are being investigated by the CSRC for suspected violations oflaws and regulations; (5) The controlling shareholder or actual controller has committed major illegal acts that
significantly harm the interests of the listed company or the legitimate rights and interests of investors in the past three
years; (6) There have been major illegal acts in the past three years that seriously harm the legitimate rights and interests
of investors or the public interest.All directors and Letter of 1. During the course of this transaction the listed company shall promptly provide relevant information to the
senior Commitment intermediaries providing professional services for this transaction including audit valuation legal and financial advisory December Long term Performed
management of regarding the services. The listed company warrants that the information provided is true accurate and complete containing no false 12 2025 normally
662025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
the listed truthfulness records misleading statements or material omissions; that all signatures and seals on the documents are authentic; and
company accuracy and that all copies are consistent with the originals. If the listed company or investors suffer losses due to false representations
completeness of misleading statements or material omissions in information provided or disclosed in relation to this transaction the
information Committing Party shall be responsible for the compensation in accordance with the law. 2. If this transaction is placed
provided under investigation by judicial authorities or the CSRC due to suspected false records misleading statements or material
omissions in the information provided or disclosed the Committing Party shall not transfer the shares in the listed
company in which it holds interests prior to the clarification of the investigation conclusions. The Committing Party shall
submit a written application for suspension of transfer and its stock account information to the Board of Directors of the
listed company within two trading days after receiving the investigation notice. The Board of Directors shall on behalf of
the Committing Party apply to the Stock Exchange and the Securities Depository and Clearing Corporation to freeze the
relevant shares; If the Committing Party fails to submit the freezing application within the aforementioned two trading
days the Board of Directors is hereby authorized to verify the information and directly report the Committing Party’s
identity and account information to the Stock Exchange and the Securities Depository and Clearing Corporation to apply
for the freezing of shares; If the Board of Directors fails to report such information the Stock Exchange and the Securities
Depository and Clearing Corporation are hereby authorized to directly freeze the relevant shares. If the investigation
conclusion finds any illegal acts or violations of regulations the Committing Party agrees that the frozen shares shall be
voluntarily used for the compensation arrangement for relevant investors.Letter of 1. During the past five years the listed company has not been subject to any administrative penalties or criminal penalties
All directors and statement and related to the securities market nor has the listed company been involved in any material civil litigation or arbitration
senior commitment concerning economic disputes. 2. The listed company has maintained a good record of integrity over the past five years.management of regarding There are no circumstances involving failure to repay substantial debts on time or failure to fulfill commitments. 3. There December Long term Performed
the listed legality are no pending or foreseeable material litigations arbitrations or administrative penalties. The listed company is not 12 2025 normally
company compliance and currently under investigation by judicial authorities for suspected crimes nor under investigation by the CSRC for
integrity suspected violations of laws or regulations.Statement
regarding the
non-existence of
circumstances
stipulated in
Article 12 of the
Regulatory There are no circumstances where the listed company is currently under investigation or inquiry for suspected insider
All directors and Guidelines for trading related to this transaction. Furthermore within the past 36 months the listed company has not been subject to
senior Listed administrative penalties by the CSRC or criminal liability pursued by judicial authorities due to insider trading related to
management of Companies No. major asset reorganizations. Finally there are no circumstances under Article 12 of the Regulatory Guidelines for Listed December Long term Performed
the listed 7– Regulation of Companies No. 7 and Article 30 of the Shenzhen Stock Exchange Self-discipline Supervisory Guidelines for Listed 12 2025 normally
company Abnormal Stock Companies No.8 that would disqualify the listed company from participating in any major asset reorganization of listed
Transactions companies.Related to Major
Asset
Restructurings of
Listed
Companies and
Article 13 of
1. The Committing Party warrants that effective confidentiality measures have been taken and confidentiality obligations
Statement have been fulfilled regarding this transaction so as to prevent affiliates employees and other relevant entities orAll directors and regarding individuals of the Committing Party from engaging in illegal activities such as insider trading or securities marketsenior confidentiality manipulation in connection with this transaction. 2. The Committing Party shall strictly abide by the confidentiality systemmanagement of measures and the and fulfill confidentiality obligations. Prior to the lawful disclosure of inside information the Committing Party shall not
December Long term Performed
the listed confidentiality disclose or leak such inside information to the public nor shall it trade the listed company's shares based on such inside
12 2025 normally
company system information or advise others to trade such shares. 3. This Statement shall become effective as of the date of signature bythe Committing Party. Should the Committing Party violate the foregoing commitments and thereby cause losses to
investors it shall bear corresponding legal liabilities in accordance with the law.All directors and Letter of 1. As of the date of this letter of commitment I do not have any plans to actively dispose of the shares of the listed
senior commitment company. 2. During the period from the date of the announcement of the resolution of the first meeting of the Board of December Performed
management of regarding share Directors of the listed company to review the proposals related to this transaction until the completion of the 12 2025 Long term normally
the listed reduction plans implementation of this transaction (hereinafter referred to as the “Period of This Transaction”) if I have any plans to
672025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
company during the period dispose of the shares of the listed company during the period of this transaction I will strictly implement such plan in
of this accordance with relevant laws regulations and normative documents and timely fulfill the information disclosure
transaction obligations. The aforementioned shares include the shares of the listed company currently held by me and the derivative
shares of the listed company obtained during the period of this transaction due to reasons such as dividends bonus shares
and capitalization of capital reserve. 3. If the Committing Party violate this commitment and thereby cause losses to the
listed company or other investors the Committing Party commit to bear the corresponding compensation liability to the
listed company or other investors in accordance with the law. 4. If the Committing Party’s commitment on share reduction
is inconsistent with the relevant provisions and requirements of laws administrative regulations administrative rules
normative documents the CSRC the SZSE and other regulatory authorities the Committing Party commit to make
corresponding adjustments to the aforementioned commitment on share reduction to ensure compliance with such
provisions and requirements.
1. Commit not to tunnel to other units or individuals without compensation or under unfair conditions nor to damage the
listed company’s interests in other ways. 2. Commit not to restrict the Committing Party’s position-related consumption
activities. 3. Commit not to use the listed company’s assets for investment and consumption activities not related to
Letter of execution of the Committing Party’s duties. 4. Commit to exercise own authority to ensure that the remuneration system
commitment formulated by the Board of Directors or the Remuneration Committee or Assessment Committee of the listed company is
regarding the linked with the execution of the return recovery measures. 5. Commit to exercise own authority to ensure that the vesting
All directors and effective conditions of the share incentive plan are linked to the implementation of the listed company’s measures to compensate for
senior implementation the dilution of current returns if the listed company will implement any share incentive scheme in the future; 6. Commit to
management of of measures to faithfully and diligently perform the duties and to safeguarding the legitimate rights and interests of the Company and all December Long term Performed
the listed mitigate the Shareholders. 7.Since the date of this commitment up to completion of this transaction if the CSRC or the stock exchange 12 2025 normally
company dilution of imposes other new regulatory requirements in relation to the return recovery measures and its commitments and such
current returns in commitments cannot meet such rules of the CSRC or the stock exchange the Committing Party commits to issuing
connection with supplemental undertakings in accordance with the latest requirements of the CSRC or the stock exchange. 8.Commit to
this transaction undertake to faithfully implement the return recovery measures established by the listed company as well as any
commitments made by the Committing Party regarding such measures. If the Committing Party breaches the foregoing
commitments or refuses to fulfill them thereby causing losses to the listed company or investors the Committing Party
shall bear the corresponding legal liability in accordance with the law.
1. During the course of this transaction the listed company shall promptly provide relevant information to the
intermediaries providing professional services for this transaction including audit valuation legal and financial advisory
services. The listed company warrants that the information provided is true accurate and complete containing no false
records misleading statements or material omissions; that all signatures and seals on the documents are authentic; and
that all copies are consistent with the originals. If the listed company or investors suffer losses due to false representations
misleading statements or material omissions in information provided or disclosed in relation to this transaction the
Listed company’s Letter of
Committing Party shall be responsible for the compensation in accordance with the law. 2. If this transaction is placed
Commitment under investigation by judicial authorities or the CSRC due to suspected false records misleading statements or materialcontrolling regarding the omissions in the information provided or disclosed the Committing Party shall not transfer the shares in the listedshareholder truthfulness company in which it holds interests prior to the clarification of the investigation conclusions. The Committing Party shallactual controller accuracy and submit a written application for suspension of transfer and its stock account information to the Board of Directors of the
December Long term Performed
and parties acting completeness of listed company within two trading days after receiving the investigation notice. The Board of Directors shall on behalf of
12 2025 normally
in concert with information the Committing Party apply to the Stock Exchange and the Securities Depository and Clearing Corporation to freeze thethem provided relevant shares; If the Committing Party fails to submit the freezing application within the aforementioned two tradingdays the Board of Directors is hereby authorized to verify the information and directly report the Committing Party’s
identity and account information to the Stock Exchange and the Securities Depository and Clearing Corporation to apply
for the freezing of shares; If the Board of Directors fails to report such information the Stock Exchange and the Securities
Depository and Clearing Corporation are hereby authorized to directly freeze the relevant shares. If the investigation
conclusion finds any illegal acts or violations of regulations the Committing Party agrees that the frozen shares shall be
voluntarily used for the compensation arrangement for relevant investors. 3. Assume individual and joint legal liability for
the truthfulness accuracy and completeness of information provided.Listed company’s Letter of 1. During the past five years the listed company has not been subject to any administrative penalties or criminal penalties
controlling statement and related to the securities market nor has the listed company been involved in any material civil litigation or arbitration
shareholder commitment concerning economic disputes. 2. The listed company has maintained a good record of integrity over the past five years.actual controller regarding There are no circumstances involving failure to repay substantial debts on time or failure to fulfill commitments. 3. There December Long term Performed
and parties acting legality are no pending or foreseeable material litigations arbitrations or administrative penalties. The listed company is not 12 2025 normally
in concert with compliance and currently under investigation by judicial authorities for suspected crimes nor under investigation by the CSRC for
them integrity suspected violations of laws or regulations.
682025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Statement
regarding the
non-existence of
circumstances
stipulated in
Article 12 of the
Listed company’s Regulatory There are no circumstances where the listed company is currently under investigation or inquiry for suspected insider
controlling Guidelines for trading related to this transaction. Furthermore within the past 36 months the listed company has not been subject to
shareholder Listed administrative penalties by the CSRC or criminal liability pursued by judicial authorities due to insider trading related to
actual controller Companies No. major asset reorganizations. Finally there are no circumstances under Article 12 of the Regulatory Guidelines for Listed December Long term Performed
and parties acting 7– Regulation of Companies No. 7 and Article 30 of the Shenzhen Stock Exchange Self-discipline Supervisory Guidelines for Listed 12 2025 normally
in concert with Abnormal Stock Companies No.8 that would disqualify the listed company from participating in any major asset reorganization of listed
them Transactions companies.Related to Major
Asset
Restructurings of
Listed
Companies and
Article 13 of
1. The Committing Party warrants that effective confidentiality measures have been taken and confidentiality obligations
Listed company’s Statement have been fulfilled regarding this transaction so as to prevent affiliates employees and other relevant entities orcontrolling individuals of the Committing Party from engaging in illegal activities such as insider trading or securities market
shareholder regarding
actual controller confidentiality
manipulation in connection with this transaction. 2. The Committing Party shall strictly abide by the confidentiality system December Performed
and parties acting measures and the
and fulfill confidentiality obligations. Prior to the lawful disclosure of inside information the Committing Party shall not Long term
confidentiality disclose or leak such inside information to the public nor shall it trade the listed company's shares based on such inside
12 2025 normally
in concert with system information or advise others to trade such shares. 3. This Statement shall become effective as of the date of signature bythem the Committing Party. Should the Committing Party violate the foregoing commitments and thereby cause losses to
investors it shall bear corresponding legal liabilities in accordance with the law.
1. As of the date of this letter of commitment the Company/I has/have not any plans to actively dispose of the shares of
the listed company. 2. During the period from the date of the announcement of the resolution of the first meeting of the
Board of Directors of the listed company to review the proposals related to this transaction until the completion of the
implementation of this transaction (hereinafter referred to as the “Period of This Transaction”) if the Company/I has/have
Listed company’s Letter of any plans to dispose of the shares of the listed company during the period of this transaction the Company/I will strictly
controlling commitment implement such plan in accordance with relevant laws regulations and normative documents and timely fulfill the
shareholder regarding share information disclosure obligations. The aforementioned shares include the shares of the listed company currently held by
actual controller reduction plans the Company/me and the derivative shares of the listed company obtained during the period of this transaction due to December Long term Performed
and parties acting during the period reasons such as dividends bonus shares and capitalization of capital reserve. 3. If the Committing Party violate this 12 2025 normally
in concert with of this commitment and thereby cause losses to the listed company or other investors the Committing Party commit to bear the
them transaction corresponding compensation liability to the listed company or other investors in accordance with the law. 4. If the
Committing Party’s commitment on share reduction is inconsistent with the relevant provisions and requirements of laws
administrative regulations administrative rules normative documents the CSRC the SZSE and other regulatory
authorities the Committing Party commit to make corresponding adjustments to the aforementioned commitment on share
reduction to ensure compliance with such provisions and requirements.Listed company’s
controlling
shareholder The principle The transaction is in the best interests of the listed company and all its shareholders and will help promote the listed
actual controller opinions on this company’s future business development; therefore the Committing Party agrees in principle to the relevant matters December Long term Performed
and parties acting transaction pertaining to this transaction. 12 2025 normally
in concert with
them
Listed company’s Letter of 1. Commit to continue to maintain the independence of the listed company. 2. Commit not to interfere with the listed
controlling commitment company’s management and operational activities beyond own authority nor to infringe upon the listed company’s
shareholder regarding the interests. 3.Since the date of this commitment up to completion of this transaction if the CSRC or the stock exchange December Performed
actual controller effective imposes other new regulatory requirements in relation to the return recovery measures and its commitments and such 12 2025 Long term normally
and parties acting implementation commitments cannot meet such rules of the CSRC or the stock exchange the Committing Party commits to issue
in concert with of measures to supplemental undertakings in accordance with the latest requirements of the CSRC or the stock exchange. 4.Commit to
692025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
them mitigate the undertake to faithfully implement the return recovery measures established by the listed company as well as any
dilution of commitments made by the Committing Party regarding such measures. If the Committing Party breaches the foregoing
current returns in commitments or refuses to fulfill them thereby causing losses to the listed company or investors the Committing Party
connection with shall bear the corresponding legal liability in accordance with the law.this transaction
The period when
the Company’s
The Company Other Not to offer loans or any other form of financial aids to the incentive recipients for them to obtain related stock options or January 24
2022 Stock Fully
commitments restricted shares according to this incentive plan including guaranteeing the loans. 2022 Option andRestricted Share performed
Incentive Plan
was implemented
In case of any false record misleading statement or major omission in the information disclosed by the Company
Incentive objects Other resulting in incompliance with the arrangements for granting or exercising the interests the incentive recipients will upon January 24 StrictlyCommitment on commitments acknowledgment of any false record misleading statement or major omission existing in any related information 2022 Long term performed
stock ownership disclosure document return all interests obtained from the equity incentive plan.incentive scheme The period when
the Company’s
The Company Other Not to offer loans or any other form of financial aids to the incentive recipients for them to obtain related restricted shares February 2 2024 Restricted Strictlycommitments according to this incentive plan including guaranteeing the loans. 2024 Share Incentive performed
Plan was
implemented
In case of any false record misleading statement or major omission in the information disclosed by the Company
Incentive objects Other resulting in incompliance with the arrangements for granting or exercising the interests the incentive recipients will upon February 2 Strictlycommitments acknowledgment of any false record misleading statement or major omission existing in any related information 2024 Long term performed
disclosure document return all interests obtained from the equity incentive plan.Commitment to The actual controller of the Company and its acting-in-concert parties undertake to use their own and self-financed funds
repurchase in to repurchase the shares of Energy Technology that have been disproportionately reduced and reduced in violation of The repurchaseOther
commitments Actual controller case of reduction
regulations within the next 12 months subject to the permission of rules. The actual controller and its acting-in-concert July 23 period is from Strictly
in violation of parties undertake to surrender the proceeds arising from the repurchase of the shares that have been disproportionately 2024 July 23 2024 to performed
regulations reduced and reduced in violation of regulations to Energy Technology. The actual controller and its acting-in-concert July 22 2025parties undertake to strictly fulfill the aforesaid commitments and strictly fulfill the information disclosure obligations.Whether the commitment is performed on time Yes
If the commitments are overdue and have not been fulfilled
the specific reason for non-fulfilment and further work plan Not applicable
shall be explained in detail
2. Where any earnings forecast was made for any of the Company’s assets or projects and the Reporting Period is still within the forecast period
the Company shall explain whether the performance of the asset or project reaches the earnings forecast and the reason
□Applicable□Not applicable
3. The Company’s performance commitments
□Applicable□Not applicable
702025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
II. Occupation of the Listed Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□Applicable □Not applicable in the Reporting Period no controlling shareholder or its related party occupied capital of the listed company for non-operating
purposes.III. Illegal external guarantee
□Applicable □Not applicable the Company did not provide any illegal external guarantee during the Reporting Period.IV. Explanation of the Board of Directors Regarding the “Non-standard Audit Report” Issued for the Latest
Period
□Applicable □Not applicable
V. Explanation of the Board of Directors and Independent Directors (If Any) Regarding the
“Non-standard Audit Report” Issued by the Accounting Firm for the Reporting Period
□Applicable□Not applicable
VI. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to the
Financial Report for the Previous Fiscal Year
□Applicable □Not applicable
On December 6 2024 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 18 of the Enterprise Accounting Standards (Cai Kuai [2024] No.
24). In accordance with the relevant provisions the Company made corresponding changes to its accounting policies. The changes stipulate that for provisions arising
from assurance-type warranties the debit entry shall be recognized in “Cost of Sales” and “Other Operating Costs” and shall no longer be recognized in “SellingExpenses”. Pursuant to the above notice this accounting policy change takes effect from the date of issuance. The Company considered and approved the above
accounting policy change at the 37th meeting of the Fifth Board of Directors held on January 22 2025. This accounting policy change has no impact on the Company.VII. Reason for Changes in Scope of the Consolidated Financial Statements as Compared to the
Financial Report for the Previous Fiscal Year
□Applicable □ Not applicable
During the Reporting Period compared to the previous period the Company added 2 new entities into and eliminated 1 entity from its consolidated financial
statements. These 2 new entities are respectively HONGCHUANG PACKAGING MALAYSIA SDN. BHD and Yuxi Energy Frontier New Material Technology Co.Ltd. which were all established during the Reporting Period. The 1 eliminated entity is Yunnan Dexin Paper Co. Ltd. which was cancelled during the Reporting
Period.VIII. Engagement and Disengagement of CPA Firm
CPA firm engaged at present
Name of the domestic CPA firm Da Hua Certified Public Accountants
Remuneration of the domestic CPA firm (RMB0’000) 280
Consecutive years of audit services provided by the domestic auditor 1 year
Names of the certified public accountants from domestic accounting Kang Wenjun Duan Liwei
firm
Consecutive years of audit services provided by the Certified Public The years of consecutive audit services provided by Kang
Accountants from domestic accounting firm Wenjun and Duan Liwei are both one year.Name of overseas CPA firm (if any) Nil
Whether the CPA firm was changed in the current period:□Yes □No
Whether the accounting firm was replaced during the audit period: □Yes□No
Whether the approval process for changing accounting firms was carried out:□Yes □No
Explanation on the reappointment and change of accounting firms
To ensure the independence and objectivity of the audit work and taking into account the Company’s business development and overall audit needs
the Company appoints Da Hua Certified Public Accountants (hereinafter referred to as “Dahua”) as the auditor of the Company’s 2025 annual financial
statements and internal control. The Audit Committee of the Board of Directors of the Company fully reviewed the professional competence investor
protection integrity and independence of Dahua and appropriateness of the reasons for the change of accounting firm. They believed that Dahua is a large
reputable accounting firm with securities qualifications and high-quality practitioners and agreed to engage Dahua as the auditor of the Company’s financial
statements and internal control for 2025. The proposal was submitted to the Board of Directors and General Meeting for consideration. The Company held the
fiftieth meeting of the Fifth Board of Directors on December 15 2025 and the Ninth Extraordinary General Meeting on December 31 2025 to consider and
approve the change of accounting firm. The Company’s change of accounting firm was in compliance with the Measures for the Administration of Selection and
Engagement of Accounting Firms by State-Owned Enterprises and Listed Companies (Cai Kuai (2023] No. 4) issued by the Ministry of Finance the State-owned
Assets Supervision and Administration Commission of the State Council and the CSRC.The Company has communicated with the former and current accounting firms regarding the change of the accounting firm and all parties have clearly noted this
matter and confirmed that they have no objections.Engagement of any CPA firm financial advisor or sponsor for internal control and audit:
□Applicable □ Not applicable during the Reporting Period the Company engaged Da Hua Certified Public Accountants as the internal control audit accounting firm
and the audit fee was RMB600000.
712025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
722025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
IX. Possibility of Delisting after Disclosure of this Annual Report
□Applicable □Not applicable
X. Matters Related to Bankruptcy and Reorganization
□Applicable□Not applicable the Company was not bankrupt and reorganized during the Reporting Period.XI. Material Litigation and Arbitration
□Applicable □Not applicable
During the Reporting Period the Company had no significant litigation or arbitration matters. The total amount involved in other litigations was
RMB 140.5437 million (of which the amount for which the Company acted as plaintiff was RMB 108.3548 million and as defendant was RMB
32.1889 million). As of the end of the Reporting Period the total amount involved in the aforementioned cases that remained unresolved was RMB
68.2767 million. These litigation matters do not have a material adverse effect on the Company’s financial condition and ability to continue as a going
concern.XII. Punishments and Rectifications
□Applicable □Not applicable
Type of Disclo
Name Type Reason investigation Conclusion (if any) sure Disclosure index
penalty date
The fundraising management system was
unsound; part of the fundraising funds were
paid through non-fundraising special Announcement on Receipt of
accounts; certain fundraising projects Decision on Administrative
replaced self-raised funds with fundraising Supervisory Measures from
funds without fulfilling the required Administrative Ordering the Company to Yunnan Supervision Bureau
The Company Others deliberation procedures and information supervisory make corrections as an
April
19 of China Securities
disclosure obligations; some temporarily measures taken administrative regulatoryby the CSRC measure 2025
Regulatory Commission
idle fundraising funds were used as (Announcement No. 2025-
supplementary working capital without 050) disclosed in the
fulfilling the required deliberation designated information
procedures and information disclosure disclosure media
obligations.Paul Xiaoming Actualcontroller Inaccurate disclosure of persons acting in Impose a circular criticismLee Yan Ma s and concert and interests in the family of as disciplinary punishmentSherry Lee Li their actual controller of Energy Technology; Disciplinary to Paul Xiaoming LeeXiaohua respective Failure to timely disclose the required actions taken Yan Ma Sherry Lee LiYanyang Hui acting-in- short-form report of changes in equity and by the stock Xiaohua Yanyang Hui
----
Jerry YangLi concert to cease trading in the Company’s shares; exchange Jerry Yang Li HeyiHeyi Investment parties Reduction of shares disproportionally and Investment Yuxi Heli
Heli Investment Others in violation of regulations. Investment Co. Ltd.Explanations on rectification
□Applicable □Not applicable
During the Reporting Period the Company received from the Yunnan Bureau of the China Securities Regulatory Commission the administrative regulatory
measure decision letter titled Decision on Ordering Yunnan Energy New Materials Co. Ltd. to Make Corrections and from the Listing Company Management
Department I of the Shenzhen Stock Exchange the Supervisory Letter Regarding Yunnan Energy New Materials Co. Ltd.. The aforesaid administrative regulatory
measures and supervision letters mainly involve irregularities in the use and management of raised funds in previous years. The Company took these matters very
seriously has carried out corrective actions and disclosed the Corrective Action Report on the Administrative Regulatory Measure of Ordering Corrections Taken
by the Yunnan Bureau of the CSRC Against the Company (Announcement No.: 2025-075) on May 14 2025. Taking this as a lesson the Company will effectively
strengthen the compliance awareness of all directors supervisors and senior management in performing their duties enhance their duty performance capabilities
and the level of standardized operations reinforce the normativeness of internal governance duly safeguard the interests of the Company and all shareholders and
promote the healthy stable and high quality development of the Company.XIII. The Company made no punishment or rectification during the Reporting Period.□Applicable □ Not applicable
During the Reporting Period the Company and its controlling shareholder and the actual controller were in good standing and there were no
outstanding effective court judgments that have not been performed nor any significant debts owed.
732025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
XIV. Significant related party transactions
1. Related party transactions arising from routine operation
□Applicable □ Not applicable
Unit: RMB0’000
Whether Obtainable
Related Proportio then in the transacti market
Related transaction Type of related Details of Pricing principle of Related
transaction Approved Settlement price
amount total transaction on mode for for the Disclo Disclosure
party Relation transaction related the related transacti (inclusive of amount of limit exceede related transac suretransaction transaction on price tax) transactio (RMB0’000) d the transaction tion of date
index
(RMB0’000) n of the approvesame type d limit the
ornot sametype
It was an equity investee Purchase raw T/T or
subsidiary of the Company materials from Purchaseadditives -- 3043.28 56.76% 2000 -3500 No acceptance ——and the Company’s Chairman related parties bills
and Vice Chairman Sell products and
previously served as its Vice commodities to Sell raw -- 912.96 2.26% 1000 -2000 No T/T ——
Yuxi Kunshasi Chairman and director related parties materials
Plastic respectively. In December Agreed by both
Masterbatch Co. 2025 Yuxi Kunshasi Plastic parties based onSell products and
Ltd. Masterbatch Co. Ltd. ceased Sell plastic market pricecommodities to products -- 4178.33 33.89% 5000 -8000 No T/T ——to be an equity investee related parties Announcem
subsidiary of the Company ent on the
and the Company’s Chairman Expected
and Vice Chairman no longer Lease to related parties
Lease
workshop -- 10 5.43% 2.4 No T/T —— Routine
hold any positions in it. Febru Related
Yuxi Heyi An enterprise controlled by Agreed by both ary Transaction
Investment Co. the Company’s actual Lease to related parties Lease office parties based on -- 0.33 0.18% 0.33 No T/T —— 2620 s in 2025
Ltd. controller market price 25 (No.:2025-
Yuxi Heli The Company’s Agreed by both 030)disclose
Investment Co. employee stock Lease to related parties Lease office parties based on -- 0.24 0.14% 0.24 No T/T —— d at
Ltd. ownership platform market price www.cninfo
Suzhou Jiesheng Purchase .co m.cn
Technology Co. An enterprise controlled by the Purchase equipment and equipment Agreed by both Not T/T or
Ltd. and its Company’s actual controller spare parts from related and spare parties based on -- 32631.52 7.31% exceeding No acceptance ——
subsidiaries parties parts market price 60880.05 bills
Zhuhai Chenyu Purchase materials from Purchase Not T/T or
New Material -- 13308.07 8.00% exceeding No acceptance ——
Technology Co. An enterprise controlled by the
related parties materials Agreed by both
parties based on 23500 bills
Ltd. and its Company’s actual controller Sell packaging materials Sell T/T or
subsidiaries and others to related packaging
market price -- 7.5 0.02% Not
parties materials exceeding 18
No acceptance ——
bills
742025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Not
Total -- -- 54092.22 -- exceeding -- -- -- -- --
97901.02
Details of any sales return of a large amount No
Give the actual situation during the Reporting Period (if any) where a forecast had been made for the total amounts of routine The actual routine transaction amount between the Company and the related parties did not exceed the total amount of
related party transactions by type to occur in the current period routine related party transactions estimated by the Company by type.Reason for any significant difference between the transaction price and the market reference price (if applicable) Not applicable
2. Related party transactions relevant to acquisition and sales of assets or equities
□ Applicable□ Not applicable the Company did not acquire or sell assets or equities during the Reporting Period.
3. Related party transactions in connection with joint external investments
□ Applicable□ Not applicable the Company had no related party transaction in connection with joint external investments during the Reporting Period.
4. Credits and liabilities with related parties
□Applicable □ Not applicable whether there were any credits or liabilities with related parties for non-operating purposes: □Yes □ No the Company did not have any non-operating related-party debt or credit transactions during the
Reporting Period.
5. Dealing with related financial companies
□ Applicable□ Not applicable there was no deposit loan credit granting or other financial business between the Company and the related financial companies and the related parties.
6. Dealing between the financial companies controlled by the Company and the related parties
□ Applicable□ Not applicable there was no deposit loan credit granting or other financial business between the financial companies controlled by the Company and the related parties.
7. Other significant related party transactions
□Applicable□ Not applicable the Company has no other significant related party transactions during the Reporting Period.XV.Significant contracts and their execution
1. Trusteeships Contracts and Leases
(1) Trusteeships
□ Applicable□Not applicable there was no trusteeship during the Reporting Period.
(2) Contracts
□ Applicable□Not applicable there were no such cases during the Reporting Period.
(3) Leases
□ Applicable□Not applicable there are no lease projects during the Reporting Period whose profit or loss impact on the Company accounts for more than 10% of the Company’s total profit for the Reporting Period.
2. Significant guarantees
□Applicable □Not applicable
Unit: RMB0’000
External guarantees provided by the Company and its subsidiaries (excluding those for subsidiaries)
Disclosure date of related
Guaranteed party announcement of guarantee Guarantee Actual occurrence date Actual Type of Guarantee Perfor Guarantee for a
quota quota guarantee guarantee period med related party or not
amount or not
Nil
Guarantees provided by the Company to its subsidiaries
752025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Disclosure date of related
Guaranteed party announcement of guarantee Guarantee Actual occurrence date Actual Type of Guarantee Perfor Guarantee for a
quota quota guarantee guarantee period med related party or not
amount or not
Hongta Plastic December 31 2024 4400 June 11 2024 0 Joint-liability Indefiniteguarantee Period No No
Hongta Plastic December 31 2024 12900 July 7 2023 3184.22 Joint-liabilityguarantee 3 Years No No
Hongta Plastic December 31 2024 7000 January 2 2024 0 Joint-liabilityguarantee 3 Years No No.Hongta Plastic December 31 2024 5000 January 27 2025 2264.15 Joint-liabilityguarantee 1 Year No No
Hongta Plastic December 31 2024 5000 March 10 2025 4600 Joint-liabilityguarantee 1 Year No No
Hongta Plastic December 31 2024 6000 April 9 2025 0 Joint-liabilityguarantee 4 Years No No
Hongta Plastic December 31 2024 10000 April 8 2025 2123.98 Joint-liabilityguarantee 1 Year No No
Hongta Plastic December 31 2024 6000 July 25 2025 5413.48 Joint-liabilityguarantee 5 Years No No
Hongta Plastic December 31 2024 5000 November 18 2025 2000 Joint-liabilityguarantee 1 Year No No
Hongta Plastic December 31 2024 4100 December 23 2025 0 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 6600 June 11 2024 0 Joint-liability Indefiniteguarantee Period No No
Hongchuang Packaging December 31 2024 6000 September 22 2023 1515.23 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 9000 January 2 2024 0 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 2000 January 29 2024 0 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 10000 December 26 2024 9978.33 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 16200 March 25 2025 4879.46 Joint-liabilityguarantee 3 Years No No
Hongchuang Packaging December 31 2024 15000 April 24 2025 2152.44 Joint-liabilityguarantee 1 Year No No
Hongchuang Packaging December 31 2024 5000 May 9 2025 2496.18 Joint-liabilityguarantee 1 Year No No
Hongchuang Packaging December 31 2024 10000 March 20 2025 4882.76 Joint-liabilityguarantee 1 Year No No
Hongchuang Packaging December 31 2024 5000 November 18 2025 1100 Joint-liability 1 Year No No
762025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
guarantee
Chengdu Hongta Plastic December 31 2024 1000 April 9 2025 0 Joint-liabilityguarantee 4 Years No No
Chengdu Hongta Plastic December 31 2024 7500 May 20 2025 218.4 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 85600 September 28 2020 36600 Joint-liabilityguarantee 7 Years No No
Shanghai Energy December 31 2024 66000 February 7 2022 30000 Joint-liabilityguarantee 5 Years No No
Shanghai Energy December 31 2024 24000 June 5 2022 16000 Joint-liabilityguarantee 3 Years No No
Shanghai Energy December 31 2024 4622.59 June 10 2022 0 Joint-liabilityguarantee 5 Years No No
Shanghai Energy December 31 2024 30000 August 18 2022 20000 Joint-liabilityguarantee 5 Years No No
Shanghai Energy Wuxi Energy
Jiangsu Energy December 31 2024 39224.90 November 30 2020 0
Joint-liability
guarantee 8 Years No No
Shanghai Energy December 31 2024 120000 August 1 2023 52892.5 Joint-liability0 guarantee 5 Years No No
Shanghai Energy December 31 2024 21308.40 April 16 2024 0 Joint-liabilityguarantee 3 Years No No
Shanghai Energy December 31 2024 21358.49 June 24 2024 10000 Joint-liability Indefiniteguarantee Period No No
Shanghai Energy December 31 2024 90000 February 25 2025 82000 Joint-liabilityguarantee 3 Years No No
Shanghai Energy December 31 2024 25000 March 11 2025 25000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 20000 May 8 2025 19000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 25000 June 12 2025 16000 Joint-liability Indefiniteguarantee Period No No
Shanghai Energy December 31 2024 62500 July 30 2025 40000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 19600 August 14 2025 12000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 50000 August 28 2025 50000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 20900 September 9 2025 19000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 10000 September 10 2025 10000 Joint-liabilityguarantee 4 Years No No
772025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Shanghai Energy December 31 2024 20000 September 12 2025 17000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 20000 November 5 2025 15200 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 54600 November 14 2025 10500 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 20000 December 24 2025 20000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 50000 December 24 2025 10000 Joint-liabilityguarantee 1 Year No No
Zhuhai Energy December 31 2024 15000 May 29 2023 0 Joint-liabilityguarantee 3 Years No No
Zhuhai Energy December 31 2024 22000 December 1 2023 22000 Joint-liabilityguarantee 4 Years No No
Zhuhai Energy December 31 2024 3200 March 1 2024 0 Joint-liabilityguarantee 3 Years No No
Zhuhai Energy December 31 2024 27096.70 April 12 2024 0 Joint-liabilityguarantee 2 Years No No
Zhuhai Energy December 31 2024 35682 July 30 2024 0 Joint-liability Indefiniteguarantee Period No No
Zhuhai Energy December 31 2024 27000 January 3 2025 19410.0 Joint-liability5 guarantee 3 Years No No
Zhuhai Energy December 31 2024 40000 April 17 2025 17500 Joint-liabilityguarantee 5 Years No No
Zhuhai Energy December 31 2024 30000 May 8 2025 15200 Joint-liabilityguarantee 1 Year No No
Zhuhai Energy December 31 2024 20000 April 12 2024 3058 Joint-liabilityguarantee 2 Years No No
Zhuhai Energy December 31 2024 20000 August 19 2024 5520 Joint-liabilityguarantee 1 Year No No
Zhuhai Energy December 31 2024 20000 July 9 2025 6867.12 Joint-liabilityguarantee 5 Years No No
Zhuhai Energy December 31 2024 30000 July 16 2025 15000 Joint-liabilityguarantee 1 Year No No
Zhuhai Energy December 31 2024 44200 October 23 2025 26845.9 Joint-liability9 guarantee 10 Years No No
Zhuhai Energy December 31 2024 22000 December 22 2025 18500 Joint-liabilityguarantee 2 Years No No
Zhuhai Energy December 31 2024 20000 December 1 2025 0 Joint-liabilityguarantee 2 Years No No
Wuxi Energy December 31 2024 116000 December 1 2020 8581.29 Joint-liability 9 Years No No
782025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
guarantee
Wuxi Energy Jiangxi Tonry
Suzhou Jieli Chongqing Energy
Jiangxi Ruijie Jiangsu Energy
Jiangsu Ruijie Jiangxi Enpo December 31 2024 70000 May 6 2022 0 Joint-liability 4 Years No No
Hubei Energy Jiangsu Sanhe guarantee
Battery Material Technology Co.Ltd. Yuxi Energy
Wuxi Energy Jiangxi Tonry
Suzhou Jieli Chongqing Energy
Jiangxi Ruijie Jiangsu Energy
Jiangsu Ruijie Jiangxi Enpo
Hubei Energy Jiangsu Sanhe December 31 2024 200000 March 1 2024 0
Joint-liability
guarantee 1 Year No No
Battery Material Technology Co.Ltd. Yuxi Energy Xiamen
Energy Jiangxi Energy
Wuxi Energy Jiangxi Tonry
Suzhou Jieli Chongqing Energy
Jiangxi Ruijie Jiangsu Energy
Jiangsu Ruijie Jiangxi Enpo December 31 2024 150000 April 10 2024 0 Joint-liability 3 Years No No
Hubei Energy Yuxi Energy guarantee
Xiamen Energy Jiangxi Energy
Anhui Hongchuang
Wuxi Energy December 31 2024 10000 September 24 2024 0 Joint-liabilityguarantee 5 Years No No
Wuxi Energy December 31 2024 20000 September 2 2024 2300 Joint-liabilityguarantee 1 Year No No
Wuxi Energy December 31 2024 10000 March 24 2025 10000 Joint-liabilityguarantee 1 Year No No
Wuxi Energy December 31 2024 12000 October 20 2025 6890 Joint-liabilityguarantee 1 Year No No
Jiangxi Tonry December 31 2024 25000 June 25 2024 24700 Joint-liabilityguarantee 2 Years No No
Jiangxi Tonry December 31 2024 5000 June 25 2024 4850 Joint-liabilityguarantee 2 Years No No
Jiangxi Tonry December 31 2024 1000 October 9 2024 940 Joint-liabilityguarantee 2 Years No No
Jiangxi Tonry December 31 2024 4000 October 9 2024 2560 Joint-liabilityguarantee 2 Years No No
Jiangxi Tonry December 31 2024 13500 October 31 2024 10000 Joint-liabilityguarantee 3 Years No No
Jiangxi Tonry December 31 2024 10000 February 12 2025 10000 Joint-liabilityguarantee 1 Year No No
792025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Jiangxi Tonry December 31 2024 28000 March 27 2025 22999.2 Joint-liability0 guarantee 3 Years No No
Jiangxi Tonry December 31 2024 10000 October 13 2025 10000 Joint-liabilityguarantee 1 Year No No
Jiangxi Tonry December 31 2024 15000 November 12 2025 15000 Joint-liabilityguarantee 1 Year No No
Jiangxi Tonry Jiangxi Energy December 31 2024 25000 December 23 2025 21000 Joint-liabilityguarantee 4 Years No No
Suzhou Jieli December 31 2024 55000 May 23 2022 9349.79 Joint-liabilityguarantee 5 Years No No
Suzhou Jieli December 31 2024 10400 March 9 2022 0 Joint-liabilityguarantee 5 Years No No
Suzhou Jieli December 31 2024 18000 January 9 2024 13000 Joint-liabilityguarantee 5 Years No No
Suzhou Jieli December 31 2024 14000 March 5 2024 8000 Joint-liabilityguarantee 3 Years No No
Suzhou Jieli December 31 2024 20000 November 14 2024 19983.7 Joint-liability4 guarantee 1 Year No No
Suzhou Jieli December 31 2024 10000 December 10 2024 10000 Joint-liabilityguarantee 5 Years No No
Suzhou Jieli December 31 2024 5000 September 15 2025 5000 Joint-liabilityguarantee 3 Years No No
Suzhou Jieli December 31 2024 10000 September 23 2025 0 Joint-liabilityguarantee 1 Year No No
Suzhou Jieli December 31 2024 10000 November 27 2025 10000 Joint-liabilityguarantee 5 Years No No
Chongqing Energy December 31 2024 160000 April 26 2022 59103.3 Joint-liability5 guarantee 6 Years No No
Chongqing Energy December 31 2024 10000 February 23 2024 9850 Joint-liabilityguarantee 3 Years No No
Chongqing Energy December 31 2024 8000 August 26 2025 6300 Joint-liabilityguarantee 1 Year No No
Chongqing Energy December 31 2024 5000 September 22 2025 5000 Joint-liabilityguarantee 1 Year No No
Chongqing Energy December 31 2024 30000 November 28 2025 30000 Joint-liabilityguarantee 1 Year No No
Jiangxi Ruijie December 31 2024 40000 April 12 2023 29250 Joint-liabilityguarantee 7 Years No No
Jiangsu Energy December 31 2024 20000 November 18 2024 7495.05 Joint-liabilityguarantee 2 Years No No
Jiangsu Energy December 31 2024 30000 February 8 2025 24850 Joint-liability 1 Year No No
802025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
guarantee
Jiangsu Energy December 31 2024 10000 October 23 2025 10000 Joint-liabilityguarantee 1 Year No No
Jiangsu Energy December 31 2024 20000 November 27 2025 0 Joint-liabilityguarantee 3 Years No No
Jiangxi Enpo December 31 2024 43350 April 28 2024 83250 Joint-liabilityguarantee 8 Years No No
Hubei Energy December 31 2024 49500 May 24 2023 0 Joint-liabilityguarantee 5 Years No No
Hubei Energy December 31 2024 165000 May 24 2023 96595.4 Joint-liability7 guarantee 6 Years No No
Hubei Energy December 31 2024 20000 March 17 2025 15000 Joint-liabilityguarantee 3 Years No No
Yuxi Energy December 31 2024 100000 March 1 2023 0 Joint-liabilityguarantee 3 Years No No
Yuxi Energy December 31 2024 70000 April 10 2024 0 Joint-liabilityguarantee 3 Years No No
Yuxi Energy December 31 2024 100000 July 16 2024 46400 Joint-liabilityguarantee 10 Years No No
Yuxi Energy December 31 2024 350000 March 4 2025 85289.5 Joint-liability7 guarantee 9 Years No No
Yuxi Energy December 31 2024 3000 October 15 2025 2845 Joint-liabilityguarantee 4 Years No No
Newmi Tech December 31 2024 10000 August 13 2024 9900 Joint-liabilityguarantee 3 Years No No
Newmi Tech December 31 2024 3500 October 24 2024 1700 Joint-liabilityguarantee 2 Years No No
Shanghai Energy December 31 2024 1000 February 25 2025 1000 Joint-liabilityguarantee 3 Years No No
Shanghai Energy December 31 2024 1000 March 19 2025 1000 Joint-liabilityguarantee 1 Year No No
Shanghai Energy December 31 2024 1000 June 26 2025 1000 Joint-liabilityguarantee 5 Years No No
Shanghai Energy December 31 2024 1000 September 18 2025 1000 Joint-liabilityguarantee 1 Year No No
Anhui Hongchuang December 31 2024 55000 July 23 2024 17742.3 Joint-liability0 guarantee 5 Years No No
Anhui Hongchuang December 31 2024 2000 May 30 2025 0 Joint-liabilityguarantee 3 Years No No
Anhui Hongchuang December 31 2024 2900 September 25 2025 1000 Joint-liabilityguarantee 2 Years No No
812025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Anhui Hongchuang December 31 2024 5000 December 18 2025 0 Joint-liabilityguarantee 3 Years No No
Chuangxin New Material (Hong
Kong) Co. Ltd. December 31 2024 10160.01 February 1 2024 0
Joint-liability Indefinite
guarantee Period No No
Chuangxin New Material (Hong
Kong) Co. Ltd. December 31 2024 120643.90 April 12 2024 0
Joint-liability Indefinite
guarantee Period No No
Jiechen Packaging December 31 2024 2000 January 2 2025 0 Joint-liabilityguarantee 3 Years No No
Jiechen Packaging December 31 2024 1000 May 28 2025 90 Joint-liabilityguarantee 1 Year No No
Total line of guarantees granted to 5929343.38 Total actual amount of guarantees in favour of 1555648.89
subsidiaries during the Reporting Period subsidiaries during the Reporting Period
(B1) (B2)
Total line of guarantees granted to 5929343.38 Total actual amount of guarantees in favour of 1555648.89
subsidiaries as at the end of the Reporting subsidiaries as at the end of the Reporting Period (B4)
Period (B3)
Guarantees provided by subsidiaries for subsidiaries
Guaranteed Disclosure date of Guarantee quota Actual occurrence date Actual guarantee Type of guarantee Guarantee period Performed or not Guarantee for a related party
party related announcement amount or not
of guarantee quota
SEMCORP December 31 2024 656.62 November 28 2025 0 Joint-liability guarantee 3 years No No
Hungary KFT
Jiangsu Ruijie December 31 2024 70000 May 9 2024 17020 Joint-liability guarantee 8 years No No
Total line of guarantees granted to 70656.62 Total line of guarantees granted to subsidiaries during 17020
subsidiaries during the Reporting Period the Reporting Period (C2)
(C1)
Total line of guarantees granted to 70656.62 Total actual amount of guarantees in favour of 17020
subsidiaries as at the end of the Reporting subsidiaries as at the end of the Reporting Period
Period (C3) (C4)
Total guarantee amount provided by the Company (sum of the aforesaid three categories)
Total line of guarantees granted during the 6000000 Total actual amount of guarantees during the 1572668.89
Reporting Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total line of guarantees granted as at the end of 6000000 Total actual amount of guarantees as at the end of the 1495737.05
the Reporting Period(A3+B3+C3) Reporting Period (A4+B4+C4)
Total guarantee balance (A4+B4+C4) in proportion to net asset of the Company 58.73%
Including:
Balance of guarantees given for shareholders actual controllers and their related parties (D) 0
Balance of debt guarantees direct or indirectly given for guarantee parties with gearing ratio of over 70% (E) 2330371
Amount of total guarantees in excess of 50% of net assets (F) 2558866.13
Total of the above three guarantee amounts (D+E+F) 2558866.13
For unexpired guarantees descriptions about the guarantee liabilities or possible joint and several liabilities of repayment occurred during the Nil
Reporting Period (if any)
External guarantees in breach of procedural requirements (if any) Nil
Total line of guarantees granted to 70656.62 Total line of guarantees granted to subsidiaries during 17020
822025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
subsidiaries during the Reporting Period the Reporting Period (C2)
(C1)
Total line of guarantees granted to 70656.62 Total actual amount of guarantees in favour of 17020
subsidiaries as at the end of the Reporting subsidiaries as at the end of the Reporting Period
Period (C3) (C4)
Total guarantee amount provided by the Company (sum of the aforesaid three categories)
Total line of guarantees granted during the 6000000 Total actual amount of guarantees during the 1572668.89
Reporting Period (A1+B1+C1) Reporting Period (A2+B2+C2)
Total line of guarantees granted as at the end of 6000000 Total actual amount of guarantees as at the end of the 1495737.05
the Reporting Period(A3+B3+C3) Reporting Period (A4+B4+C4)
Total guarantee balance (A4+B4+C4) in proportion to net asset of the Company 58.73%
Including:
Balance of guarantees given for shareholders actual controllers and their related parties (D) 0
Balance of debt guarantees direct or indirectly given for guarantee parties with gearing ratio of over 70% (E) 2330371
Amount of total guarantees in excess of 50% of net assets (F) 2558866.13
Total of the above three guarantee amounts (D+E+F) 2558866.13
For unexpired guarantees descriptions about the guarantee liabilities or possible joint and several liabilities of repayment occurred during the Nil
Reporting Period (if any)
External guarantees in breach of procedural requirements (if any) Nil
832025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Circumstances in which composite guarantees are used: N/A
3. Entrusted cash assets management
(1) Entrusted wealth management
□Applicable □ Not applicable
Overview of entrusted wealth management during the Reporting Period
Balance of Entrusted Wealth Management
Overdue Unrecovered Amount
Product Category Risk Profile during the Reporting Period
(RMB’0000)
(RMB’0000)
Bank Wealth
Management Products Low Risk 36072.48 0
Specific information on the Company acting as a single entrusting party to entrust financial institutions with asset management or investing in high-risk entrusted wealth management products with lower safety and poor
liquidity.□Applicable□Not applicable
842025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
□ (2) Entrusted loans
□ Applicable Not applicable there were no entrusted loans during the Reporting Period.
4. Other major contracts
Applicable □ Not applicable
Contract Status of
Contracting ing Date Pricin
Related
party Related
implementa
tion as at Disclos
party (the party Contract of g Transaction content transact party
Company’s side) (the object signat princi relation
the end of ure Disclosure index
other ure ple ion or ship the date
side) not ReportingPeriod
Beijing Welion New
Energy Technology Co.Ltd. has designated that
80% of its procurement
volume of required
materials will be sourced
from Shanghai Energy and Announcement on
its affiliates with the Signing of
controlling stakes for the Purchase
purchase of electrolyte Framework
separators for semi-solid Agreement
Beijing Electrolyt batteries and electrolytes between a
Welion e and electrolyte membranes Majority
New separator Janua for all-solid-state batteries. Januar Controlled
Shanghai Energy Energy for semi- ry 13 Marke From 2025 to 2030 No None Ongoing as y 15 Subsidiary and
Technol solid and 2025 t price Beijing Welion New scheduled 2025 Beijing Welion
ogy Co. all-solid- Energy Technology Co. New Energy
Ltd. state Ltd. expects to place Technology Co.batteries purchase orders with Ltd.Shanghai Energy and its (Announcement
affiliates with controlling No. 2025-010)
stakes for electrolyte disclosed at
separators for semi-solid www.cninfo.com.and all-solid-state batteries cn
totaling no less than 300
million square meters and
for all-solid state battery
electrolytes totaling no less
than 100 tons subject to
actual purchase orders.Based on the long-term Announcement on
and stable global strategic Signing of
cooperation between the Significant
parties LGES expects to Contracts between
purchase approximately a Majority
LG Janua 3.55 billion square meters Januar Controlled
Shanghai Energy Energy
Lithium
battery ry 21 Marke of lithium battery No None Ongoing as y 22 Subsidiary andSolution
Ltd. separator
2025 t price separators from Shanghai scheduled 2025 LG Energy
Energy (including its Solution Ltd.affiliates with controlling (Announcement
stakes) in the global No. 2025-018)
market from 2025 to 2027 disclosed at
subject to actual purchase www.cninfo.com.orders. cn
The collaborating
customer expects to
A purchase approximately Announcement on
well- k 973 million square meters Signing of Supply
nown Agreements bySEMCORP Lithium April of lithium battery
Manufacturing US battery 2 Marke separators from Ongoing as
April Subsidiaries
automoti No None (AnnouncementUSA LLC separator 2025 t price SEMCORP Manufacturing scheduled
42025
ve USA LLC (including its No. 2025-045)
manufac affiliates with controlling disclosed at
turer stakes) from 2026 to 2030 www.cninfo.com.subject to actual purchase cn
orders.
852025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
XVI. Use of funds raised
Applicable □ Not applicable
1. Overall use of funds raised
Applicable □ Not applicable
Unit: RMB’0000
Total
cumulati
ve
amount
Total of funds
Proportion amount of Total raised AmountTotal of funds
Year Date of Net amount amount of
of proceeds funds cumulative with
Cumulative utilized at raised with amount of changes Total Use and raisedof Way of raising funds listing of Total amount funds usedraising of funds raised of funds raised during the amount of the end of changes of Funds of use as
Amount whereabouts of that have
funds securities (1) Reporting funds used (2) the Reporting use during raised with a
of unused been idle
funds unused funds for
Period Period the changes percentag(3)=(2)/(1) Reporting of use e of more than
Period the total two years
amount
of
funds
raised
Deposited in a
2016 Initial Public Offering September14 2016 78376.68 74776.7 787.93 66534.98 88.98% 0 10588.68 14.16% 9698.01
designated bank
account for 9698.01
fundraising
Offering of convertible
2020 corporate bonds to non- February28 2020 160000 158612.26 0 158612.26 100.00% 0 0 0.00% 0 N/A 0specific investors
2020 Offering of shares to September 4specific investors 2020 500000 498250.46 0 503663.58 101.09% 0 0 0.00% 0 N/A 0
Deposited in a
2023 Offering of shares to June 20specific investors 2023 750000 745354.61 32070.62 750418.94 100.68% 28430.24 28430.24 3.81% 0.35
designated bank
account for 0
fundraising
Total -- -- 1488376.68 1476994.03 32858.55 1479229.76 100.15% 28430.24 39018.92 2.64% 9698.36 -- 9698.01
862025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Explanations of the overall use of the funds raised:
I. Initial Public Offering
Upon the approval of the CSRC in Zheng Jian Xu Ke [2016] No. 1886 the Company made its initial public offering of 33.48 million RMB-
denominated ordinary shares. China Merchants Securities Co. Ltd. the main underwriter issued 33.48 million shares by combining offline
enquiry and allotment to investors and online subscription based on market value to public investors. All of the 33.48 million shares issued are
new shares with no transfer of old shares. Among them 3.348 million shares were allotted offline 30.132 million shares were issued online at
a price of RMB23.41 per share. After deducting RMB35.9998 million of newly increased external expenses directly related to the issuance of
equity securities such as online issuance fees prospectus printing fees accountancy fees relating to filing the relevant documents lawyer fees
and valuation fees the net amount of raised funds was RMB747.767 million. The availability of the above raised funds was verified by Dahua
CPAs (SGP) with the capital verification report titled “Da Hua Yan Zi [2016] No. 000897”. As of September 30 2016 the Company’s self-
owned funds invested in the fundraising projects reached RMB236.6591 million which was audited by Dahua CPAs (SGP) with the issuance
of the report titled “Da Hua He Zi No. [2016] No. 004562”. In 2017 the total amount of raised funds used was RMB26067736.89. In 2018
the total amount of raised funds used was RMB36288006.85. In 2019 the total amount of raised funds used was RMB24728775.11. In
April 2019 the Company held the 27th meeting of the Third Board of Directors and in May 2019 the 2018 Annual General Meeting during
which the Proposal on Adjustment of Certain Fundraising Investment Projects was considered and approved. The original investment projectsfinanced by the proceeds from IPO namely the “Reconstruction and expansion project of high-grade environmental-friendly specialty paperswith annual production output of 13000 tons” and the “R&D center construction project” were changed to the “Energy Technology ResearchInstitute Project” which is being implemented by the wholly-owned subsidiary Shanghai Energy New Materials Research Co. Ltd. In 2023
Shanghai Energy New Materials Research Co. Ltd. began operations. In 2023 the total amount of raised funds used was RMB13472295.56.In 2024 the total amount of raised funds used was RMB2117999.66. During the Reporting Period the total amount of raised funds used was
RMB7879274.34. As of December 31 2025 the balance of the special account was RMB96980139.09 (including the net interest income
from the special fundraising account after deducting handling fees amounting to RMB14562944.70).II. Public Offering of Convertible Corporate Bonds in 2020
Upon the approval of the CSRC with the Reply on Approving the Public Offering of Convertible Corporate Bonds of Yunnan Energy New
Material Co. Ltd. (Zheng Jian Xu Ke [2019] No. 2701) the Company publicly issued 1.6 million convertible corporate bonds on February 11
2020 with a face value of RMB100 each bond and a total amount of RMB1600000000. After deducting the underwriting and sponsorship
fees (pre-tax) of RMB9433962.26 and other offering expenses (pre-tax) of RMB4443396.23 from the total amount of proceeds from the
public offering of convertible corporate bonds the net amount of proceeds from the offering by the Company was RMB1586122641.51. Theavailability of funds raised this time was verified by Dahua CPAs (SGP) with the capital verification report titled “Da Hua Yan Zi [2020] No.
000047”. As verified by Dahua CPAs (SGP) the Company used the raised funds of RMB1586122641.51 for the complete replacement of
part of the self-raised funds that have been previously invested in the projects financed by the proceeds. As of December 31 2020 funds
raised from convertible corporate bonds issued by the Company were all used to replace self-raised funds the balance of the special account
was RMB0.00 and the Company had canceled the special fundraising account.III. Non-public Offering of Shares in 2020
Upon the approval of the CSRC with the Reply on Approving the Non-public Offering of Shares of Yunnan Energy New Material Co. Ltd.(Zheng Jian Xu Ke [2020] No. 1476) the Company non-publicly issued 69444444 RMB-denominated ordinary shares to 22 specific
investors on August 17 2020 with a face value of RMB1.00 each share at the offering price of RMB72.00 per share and the total amount of
the funds raised from this offering was RMB4999999968.00. After deducting the underwriting and sponsorship fees (pre-tax) of
RMB14150943.40 and other offering expenses (pre-tax) of RMB3344470.11 from the total amount of the funds raised from this offering
the net amount of funds raised from this offering by the Company was RMB4982504554.49. The availability of funds raised this time was
verified by Dahua CPAs (SGP) with the capital verification report titled “Da Hua Yan Zi [2020] No. 000460”. As verified by Dahua CPAs
(SGP) the Company used the raised funds of RMB254221260.11 for the replacement of the self-raised funds that have been previously
invested in the projects financed by the proceeds. The amount of raised funds used was RMB1999307646.21 in 2020. The amount of raised
funds used was RMB2637743136.15 in 2021. The amount of raised funds used was RMB145363757.34 in 2022. As of December 31 2022
the balance of the fundraising account was RMB0.00 and the Company had canceled the special fundraising account.IV. Non-public Offering of Shares in 2021
Upon the approval of the CSRC with the Reply on Approving the Non-public Offering of Shares of Yunnan Energy New Material Co. Ltd.(Zheng Jian Xu Ke [2022] No. 1343) the Company non-publicly issued 85421412 RMB-denominated ordinary shares to specific investors
on May 24 2023 with a face value of RMB1.00 each share at the offering price of RMB87.80 per share and the total amount of the funds
raised from this offering was RMB7499999973.60. After deducting the pre-tax offering expenses of RMB46453872.58 the actual amount
of funds raised from this offering by the Company was RMB7453546101.02. The availability of funds raised this time was verified by
Dahua CPAs (SGP) with the capital verification report titled “Da Hua Yan Zi [2023] No. 000250”. As verified by Dahua CPAs (SGP) the
Company used the raised funds of RMB3998086272.07 for the replacement of the part of self-raised funds that have been previously
invested in the projects financed by the proceeds. From June 14 2023 to December 31 2023 the Company used RMB2546795768.34 of the
raised funds. The amount of raised funds used was RMB638601104.38 in 2024. During the Reporting Period RMB320706232.50 of the
raised funds was used. As of December 31 2025 the balance of the raised funds is RMB3536.68.
872025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2. Projects in which the Company undertakes to invest the funds raised
Applicable □ Not applicable
Unit: RMB’0000
Whethe
r
the
project Whether
has Investme Investmen Cumulative the
Date of Projects in which the been Total amount Total nt Cumulative t progress Date on Benefits benefits Whether feasibility
Name of listing Company undertakes to Natur change of funds the investment amount investment as of the which the achieved achieved as the of the
financing of invest the funds raised and e ofproje d Company amount after during
amount as of end of the project will during the of the end of expected project
project securitie the whereabouts of the over ct includi undertakes to the adjustment the
the end of the
Reporting Reporting be ready for Reporting the
benefits has
s raised funds ng invest (1) Reportin Period (2) Period use Period Reporting
are
changes g Period (3)=(2)/(1) Period achieved
changed
significan
of some tly
parts of
the
project
Projects in which the Company undertakes to invest the funds raised
Reconstruction and Produ
expansion project of color ction
packaging boxes with constr No 28414.7 28414.7 0 28414.7 100.00% August 152019 12179.31 49552.17 Yes Noannual production output of uctio
3 billion pieces n
Reconstruction and
expansion project of high- Produ
grade environmental- ction
friendly specialty papers constr Yes 10684.57 3617.5 0 3617.5 100.00% N/A Yes
with annual production uctio
Initial Septemb output of 13000 tons n
Public er 14 R&D
Offering 2016 R&D center constructionproject proje Yes 4993.17 1471.56 0 1471.56 100.00% N/A Noct
Repa
Repayment of bank loans yment of No 20000 20000 0 20000 100.00% N/A No
loans
Reple
nishm
Addition to current capital ent of No 10684.26 10684.26 0 10684.26 100.00% N/A No
liquid
ity
Public Lithium-ion battery Produ
Offering of Februar separator project (phase I) ction
Convertible y 28 with an annual production constr No 58612.26 58612.26 0 58612.26 100.00% December 11724.09 154517.75 No No
Corporate 2020 output of 400 million uctio 31 2019
Bonds in square meters of Jiangxi n
882025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2020 Tonry New Energy
Technology
Development Co. Ltd.Produ
Wuxi Energy New Material ction
Industrial Base constr No 100000 100000 0 100000 100.00%
September
uctio 30 2020
-22671.91 55552.17 No No
n
Expansion project of
lithium-ion battery Produ
separator (phase I) of ction July 31
Jiangxi Tonry New Energy constr No 148250.46 148250.46 0 149909.24 101.12% 2022 19906.36 124093.62 No No
Technology uctio
Development Co. Ltd. n
Non-public
Offering of Septemb
Produ
er 4 Expansion of Wuxi Energy ctionShares in 2020 New Material Industrial constr No 200000 200000 0 203754.33 101.88%
October 31
2022 -37224.95 10606.84 No No2020 Base Phase II uctio
n
Reple
nishm
Addition to current capital ent of No 150000 150000 0 150000 100.00% N/A No
liquid
ity
Microporous membrane Produ
project of high-performance ction July 31
lithium-ion battery of constr No 41010 41010 0 41010 100.00% 2022 -50.93 18460.94 No No
Chongqing Energy (phase I) uction
Microporous membrane Produ
project of high-performance ction
lithium-ion battery of constr No 140630 140630 0 140630 100.00% December -110.65 12135.79 No No
Chongqing Energy (phase uctio 31 2025
II) n
Suzhou Green Power Produ
Non-public project with an annual ction
Offering of June 20 output of 200 million constr No 35160 35160 0 35160 100.00% November30 2023 7371.81 39521.44 No NoShares in 2023 square meters of lithium- uctio
20211 ion battery coated separator n
Produ
Jiangsu Energy EV Lithium ction
Battery Separator constr No 281250 281250 2147.02 284820.96 101.27% December
Industrialization Project uctio 31 2024
-5952.66 -13105.37 No No
n
Jiangsu Ruijie EV Lithium Produ
Battery ction
Aluminum constr Yes 76170 47739.76 0 47739.76 100.00% December31 2025 -6410.31 -10170.06 No YesLaminated Film uctio
Industrialization Project n
Addition to current capital Reple No 171134.61 171134.61 0 171134.61 100.00% N/A No
892025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
nishm
ent of
liquid
ity
Total of committed investment projects -- 1476994.03 1437975.11 2147.02 1446959.18 -- -- -21239.84 441165.29 -- --
Whereabouts of the over raised funds
None
Total -- 1476994.03 1437975.11 2147.02 1446959.18 -- -- -21239.84 441165.29 -- --The expected benefits refer to the annual profit after the project reaches a usable state and the full production capacity is released. The “Microporous membrane project of high-performance lithium-ion batteryof Chongqing Energy (phase II)” has been fully completed and put into production and is still in the capacity ramp-up phase as of the end of the Reporting Period. The following projects have reached
Explanation for each production capacity: “Lithium-ion battery separator project (phase I) with an annual production output of 400 million square meters of Jiangxi Tonry New Energy Technology Development Co. Ltd.”
project on the failure to “Expansion project of lithium-ion battery separator (phase I) of Jiangxi Tonry New Energy Technology Development Co. Ltd.” “Wuxi Energy New Material Industrial Base” “Expansion of Wuxi Energymeet planned progress New Material Industrial Base Phase II” “Microporous membrane project of high-performance lithium-ion battery of Chongqing Energy (phase I)” “Suzhou Green Power project with an annual output of 200expected returns and million square meters of lithium-ion battery coated separator” and “Jiangsu Energy EV Lithium Battery Separator Industrialization Project”. However due to the intensified market competition in the lithium
the reasons (including battery separator industry in recent years the price and gross margin of lithium battery separator products have declined significantly compared with the levels at the time of project initiation leading to the
the reasons for selecting failure to achieve the expected benefits this year.“N/A” for “Whether the Due to intensified competition in the industry chain in recent years and a decline in product prices across all segments the Company after prudent consideration has determined that continuing to implementexpected benefits are the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” at this stage may expose the Company to the risk that the project’s return on investment will fail to meetachieved”) expectations and therefore the project’s investment strategy needs to be adjusted. Accordingly taking into account the Company’s overall strategic planning and in order to mitigate the investment risk offundraising projects and enhance the efficiency of fund utilization the Company terminated the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” during the Reporting
Period and permanently supplemented its working capital with the remaining proceeds raised from the project to be used for daily operating activities related to the Company’s main businesses. In the future
the Company will decide whether to continue the project using its own funds based on the development of the industry and its business operations.I. Initial Public Offering
1. The “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” was planned by the Company based on the market situation
and the Company’s production capacity before listing. As time goes by the market has changed dramatically. Since 2016 the procurement model of downstream tobacco manufacturers for special paper
products has been adjusted from quantity allocation by cigarette manufacturers to the independent procurement mode through centralized bidding or commercial negotiation by cigarette label printing
enterprises. Cigarette-related enterprises can expand their bargaining range from region to the entire country by means of tendering or commercial negotiation through public market inquiry and bargaining by
themselves breaking the original competitive landscape featuring fixed share and region. As a result special paper manufacturers took active competition strategies like price cuts to snap up orders and the
industry pattern changed. As a result of the above industrial policy adjustments the special paper industry has formed a new pattern featuring full market competition with intensified market competition and
a sharp decline in prices. If the “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” went on as scheduled we may facerisks that the utilization rate of raised funds may decline and the expected investment objective may not be achieved. Therefore the Company terminated the implementation of the “Reconstruction andexpansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” in 2019.
2. The “R&D center construction project” was launched to meet the Company’s demand for R&D in its main businesses before listing. With the completion of major asset restructuring in 2018 the
Explanation for material Company’s main businesses included lithium battery separator which has high technological requirements. The manufacturing of lithium batteries has a high requirement for the characteristics of separator
changes in the materials especially consistency and the size and uniformity of distribution of separator micropores. Based on the Company’s business development plan and market demand to better implement its
feasibility of projects development strategy the Company intends to integrate the technology centers currently scattered in subordinate companies so as to ensure that the Company’s R&D technology can further improveproduction efficiency product quality and new product development capacity. The above change was considered and approved by the Company at the 27th meeting of the Third Board of Directors the 22nd
meeting of the Third Supervisory Committee and the 2018 Annual General Meeting.II. Non-public Offering of Shares in 2021
1. Since the proceeds raised were received in 2023 the Company has been actively advancing the implementation of the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film IndustrializationProject”. However due to intensified competition in the industry chain in recent years and a decline in product prices across all segments the Company after prudent consideration has determined that
continuing to implement the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” at this stage may expose the Company to the risk that the project’s return on investment
will fail to meet expectations and therefore the project’s investment strategy needs to be adjusted. Accordingly taking into account the Company’s overall strategic planning and in order to mitigate the
investment risk of fundraising projects and enhance the efficiency of fund utilization the Company terminated the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project”
during the Reporting Period and permanently supplemented its working capital with the remaining proceeds raised from the project to be used for daily operating activities related to the Company’s main
businesses. In the future the Company will decide whether to continue the project using its own funds based on the development of the industry and its business operations. The proposed termination of the
above-mentioned project and the permanent supplementation of working capital with the remaining proceeds were considered and approved by the 46th meeting of the Fifth Board of Directors and the 38th
meeting of the Fifth Supervisory Committee held by the Company on August 18 2025. This matter was also considered and approved by the Company at the Seventh Extraordinary General Meeting of 2025.Amount use and status
of over raised funds N/A
902025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Unauthorized change of
use of the proceeds
raised and improper use N/A
of the proceeds raised.Applicable
Occurred in the past
Upon the consideration and approval of the Proposal on Adjustment of Certain Fundraising Investment Projects at the 27th meeting of the Third Board of Directors of the Company it was agreed to terminate
the “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” and the “R&D center construction project” and invest theChanges in the location balance of the raised funds for these two projects totaling RMB105.8868 million and corresponding interest income in the new investment project financed by the proceeds “Energy Research Instituteto implement the Project”. The Company invested to establish a wholly-owned subsidiary as the entity to implement the “Energy Research Institute Project” and leased the experimental building in the factory area of Shanghai
projects financed by the Energy. The location to implement the project is changed to 155 Nanlu Road Pudong New Area Shanghai.proceeds Since the Company plans to establish its New Energy Shanghai Management Headquarters Energy Research Institute and other corporate management facilities in the Jinqiao Development Zone of the
Pudong New Area Shanghai and in order to meet the Company’s R&D needs and ensure the efficient progress of the “Energy Research Institute Project” the Company considered and approved the Proposal
on Adding a New Implementation Location and Extending the Timeline for Certain Fundraising Investment Projects at the 46th meeting of the Fifth Board of Directors and the 38th meeting of the Fifth
Supervisory Committee held by the Company on August 18 2025. The Company resolved to add “Lane 1851 Jinqiao Road Pudong New Area Shanghai China” as the implementation location for the
“Energy Research Institute Project”.Applicable
Occurred in the past
Upon the consideration and approval of the Proposal on Adjustment of Certain Fundraising Investment Projects at the 27th meeting of the Third Board of Directors of the Company it was agreed to terminate
the “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” and the “R&D center construction project” and invest thebalance of the raised funds for these two projects totaling RMB105.8868 million and corresponding interest income in the new investment project financed by the proceeds “Energy Research InstituteAdjustment to the Project”. The entity to implement the new investment project financed by the proceeds is the Company’s wholly-owned subsidiary-Shanghai Energy New Materials Research Co. Ltd.implementation method Upon the consideration and approval of the Proposal on Adjustment of Certain Fundraising Investment Projects at the 46th meeting of the Fifth Board of Directors of the Company it was agreed to terminate
of the projects financed the “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” and the “R&D center construction project” and invest theby the proceeds balance of the raised funds for these two projects totaling RMB105.8868 million and corresponding interest income in the new investment project financed by the proceeds “Energy Research InstituteProject”. The entity to implement the new investment project financed by the proceeds is the Company’s wholly-owned subsidiary-Shanghai Energy New Materials Research Co. Ltd.Occurred during the Reporting Period: At the 46th meeting of the Fifth Board of Directors and the 38th meeting of the Fifth Supervisory Committee held by the Company on August 18 2025 the Proposal onAdding a New Implementation Location and Extending the Timeline for Certain Fundraising Investment Projects was considered and approved. It was agreed to extend the date of “Energy Research InstituteProject” on which the project will be ready for use to December 31 2026 and to add “Lane 1851 Jinqiao Road Pudong New Area Shanghai China” as the implementation location for the “Energy ResearchInstitute Project”.Applicable
I. Initial Public Offering
Upon the consideration and approval of the Proposal on Replacing Self-raised Funds Previously Invested in Fundraising Investment Projects with the Funds Raised at the 18th meeting of the Second Board of
Directors of the Company it was agreed to replace the self-raised funds of RMB236.6591 million that had been invested in projects financed by the proceeds. RMB197.9357 million was previously invested
in the “Reconstruction and expansion project of color packaging boxes with annual production output of 3 billion pieces” RMB24.2138 million was previously invested in the “Reconstruction and expansionproject of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” and RMB14.5096 million was previously invested in the “R&D center construction project”.II. Public Offering of Convertible Corporate Bonds in 2020
Previous investment in At the 42nd meeting of the Third Board of Directors of the Company the Proposal on Replacing Self-raised Funds Previously Invested in Fundraising Investment Projects with the Funds Raised from
the projects financed by Convertible Corporate Bonds was considered and approved and it was agreed that the Company used the funds raised from this offering to replace some of the self-raised funds already invested in projects
the proceeds and financed by the proceeds. As of March 16 2020 the Company cumulatively invested self-raised funds of RMB1697.9844 million in projects financed by the proceeds and the net amount of funds raised
replacement with the from this offering of convertible corporate bonds was RMB1586.1226 million which was used fully to replace the previously invested self-raised funds. Specifically RMB586.1226 million of self-raised
funds raised funds invested in the “Lithium-ion battery separator project (phase I) with an annual production output of 400 million square meters of Jiangxi Tonry New Energy Technology Development Co. Ltd.” inwhich RMB596.8886 million was previously invested was replaced; RMB1000 million of self-raised funds invested in the “Wuxi Energy New Material Industrial Base” in which RMB1101.0959 million
was previously invested was replaced.III. Non-public Offering of Shares in 2020
At the 11th meeting of the Fourth Board of Directors and the 11th meeting of the Fourth Supervisory Committee the Proposal on Replacing Self-raised Funds Previously Invested in Fundraising Investment
Projects with the Funds Raised from the Non-public Offering of A Shares in 2020 was considered and approved and it was agreed to replace the self-raised funds of RMB254.2213 million already invested inthe projects with the funds raised. Specifically RMB157.1693 million was previously invested in the “Expansion project of lithium-ion battery separator (phase I) of Jiangxi Tonry New Energy TechnologyDevelopment Co. Ltd.” and RMB97.052 million was previously invested in the “Expansion of Wuxi Energy New Material Industrial Base Phase II”.IV. Non-public Offering of Shares in 2021
912025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
At the sixth meeting of the Fifth Board of Directors and the sixth meeting of the Fifth Supervisory Committee the Proposal on Replacing Self-raised Funds Previously Invested in Fundraising Investment
Projects with the Funds Raised from the Non-public Offering of A Shares in 2021 was considered and approved and it was agreed to replace part of self-raised funds already invested in the projects financed
by the proceeds with the funds raised. As of June 13 2023 the amount previously invested by the Company in the projects financed by the proceeds with self-raised funds was RMB4017576500.58 and theamount replaced with raised funds from this offering amounted to RMB3998086272.07. Specifically previously invested funds amounted to RMB411491379.33 for “Microporous membrane project ofhigh-performance lithium-ion battery of Chongqing Energy (phase I)” and RMB410100000.00 of such funds were replaced. Previously invested funds amounted to RMB1409367607.63 for “Microporousmembrane project of high-performance lithium-ion battery of Chongqing Energy (phase II)” and RMB1406300000.00 of such funds were replaced. Previously invested funds amounted to
RMB1421550504.48 for “Jiangsu Energy EV Lithium Battery Separator Industrialization Project” and RMB1421550504.48 of such funds were replaced. Previously invested funds amounted to
RMB408535767.59 for “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” and RMB408535767.59 of such funds were replaced. Previously invested funds amounted
to RMB366631241.55 for “Suzhou Green Power project with an annual output of 200 million square meters of lithium-ion battery coated separator” and RMB351600000.00 of such funds were replaced.Applicable
I. Initial Public Offering
On February 24 2020 at the 41st meeting of the Third Board of Directors and the 36th meeting of the Third Supervisory Committee the Proposal on Using Some Idle Funds Raised to Temporarily Replenish
Working Capital was considered and approved and it was agreed to use idle funds raised of no more than RMB110 million to temporarily replenish working capital within 12 months from the date of the
Use of idle funds raised approval of the above proposal. Both independent directors and sponsor expressed opinions of agreeing upon the proposal. On August 26 2020 the Company returned the aforementioned RMB110 million
to temporarily replenish that was temporarily used to replenish working capital to the Company’s special fundraising account and timely informed the sponsor CITIC Securities and sponsor representative of the return of the funds.working capital II. Non-public Offering of Shares in 2020On September 7 2020 at the 11th meeting of the Fourth Board of Directors and the 11th meeting of the Fourth Supervisory Committee the Proposal on Using Some Idle Funds Raised to Temporarily
Replenish Working Capital was considered and approved and it was agreed to use idle funds raised from the non-public offering of shares in 2020 of no more than RMB800 million to temporarily replenish
working capital for production and operation activities related to the Company’s main business within 12 months from the date on which the Sixth Extraordinary General Meeting of 2020 approved the
proposal. Both independent directors and sponsor expressed opinions of agreeing upon the proposal. As of June 1 2021 the Company returned the aforementioned RMB800 million that was temporarily used
to replenish working capital to the Company’s special fundraising account and timely informed the sponsor CITIC Securities and sponsor representative of the return of the funds.Applicable
Amount of and reasons Due to intensified competition in the industry chain in recent years and a decline in product prices across all segments the Company needs to adjust its project investment strategy. Taking into account thefor any balance of the Company’s overall planning and in order to mitigate the investment risks of fundraising projects and enhance the efficiency of fund utilization the Company terminated the “Jiangsu Ruijie EV Lithiumfunds raised after the Battery Aluminum Laminated Film Industrialization Project” financed by the proceeds from its Non-public Offering of Shares in 2021 during the Reporting Period. The remaining net proceeds from that
project implementation project of RMB284.3024 million together with related interest income (i.e. net income from wealth management products and bank deposit interest after deducting handing fees and other charges) werepermanently transferred to working capital for daily operating activities related to the Company’s main business. This matter was considered and approved by the Company at the 46th meeting of the Fifth
Board of Directors the 38th meeting of the Fifth Supervisory Committee and the Seventh Extraordinary General Meeting of 2025.Use and whereabouts of
unused proceeds Deposited in the designated bank account for fundraising
During the Reporting Period the Company used the proceeds raised in accordance with the provisions and requirements of relevant laws regulations and regulatory documents and disclosed the use of the
proceeds raised in a timely manner. There were no irregularities in the use or management of the proceeds raised.Problems and other On April 18 2025 the Company respectively received the administrative supervision measure decision document Decision on Ordering Yunnan Energy New Material Co. Ltd. to Rectify from the Yunnan
situations in the Regulatory Bureau of the China Securities Regulatory Commission and the Regulatory Letter regarding Yunnan Energy New Material Co. Ltd. from the Listed Company Management Department I of the
utilization and Shenzhen Stock Exchange. The aforementioned administrative supervision measure and regulatory letter primarily related to irregularities in the use and management of the proceeds raised in prior years. The
disclosure of the raised Company took these matters very seriously and has initiated corrective actions. On May 14 2025 the Company published the Corrective Action Report in Response to the Administrative Supervision Measure
funds of Ordering Rectification against the Company by the Yunnan Regulatory Bureau of the China Securities Regulatory Commission (Announcement No. 2025-075) in the designated information disclosuremedia. The Company will take this as a lesson to effectively enhance the compliance awareness of all directors supervisors and senior management in the performance of their duties enhance their
professional capabilities and the level of standardized operations strengthen the standardization of internal governance and effectively safeguard the interests of the Company and all shareholders thereby
promoting the healthy stable and high-quality development of the Company.Note: 1 The previously invested funds in the projects financed by the proceeds raised from this offering have been replaced with the proceeds raised. The cumulative benefits of the projects are
calculated from the year in which the replaced funds were invested.
3. Project with changed use of funds raised
Applicable □ Not applicable
922025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Unit: RMB’0000
Total
amount of Actual
intended Actual cumulative Investment Benefits Whether the
investment investment investment progress as Date on achieved Whether project
Name of financing of the end which the expected feasibility
project Way of raising funds Project after the change Project before the change
from the amount amount as
funds during the at the end of the project will
during
the benefits has changed
raised in Reporting of the Reporting be ready for Reportin are significantly
the project Period Reporting Period use g Period achieved after the
after the Period (2) (3)=(2)/(1) change
change (1)
1. Reconstruction and
expansion project of high-
grade environmental-friendly
Initial Public Offering Initial Public Offering Energy Technology specialty papers with annual DecemberResearch Institute Project production output of 13000 10588.68 787.93 2346.96 22.16% 31 2026 - N/A No
tons;
2. R&D center construction
project
Non-public Offering Offering of shares to Permanent replenishment of Jiangsu Ruijie EV Lithium
of Shares in 2021 specific investors working capital Battery Aluminum Laminated 28430.24 29923.6 29923.6 105.25% - N/A NoFilm Industrialization Project
Total -- -- -- 39018.92 30711.53 32270.56 -- -- - -- --
1. “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” and “R&D center construction project"
The “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” was planned by the Company based on the market situation
and the Company’s production capacity before listing. As time goes by the market has changed dramatically. Since 2016 the procurement mode of downstream tobacco manufacturers for special paper
products has been adjusted from quantity allocation by cigarette manufacturers to the independent procurement mode through centralized bidding or commercial negotiation by cigarette label printing
enterprises. Cigarette-related enterprises can expand their bargaining range from region to the entire country by means of tendering or commercial negotiation through public market inquiry and bargaining by
themselves breaking the original competitive landscape featuring fixed share and region. As a result special paper manufacturers took active competition strategies like price cuts to snap up orders and the
industry pattern changed. As a result of the above industrial policy adjustments the special paper industry has formed a new pattern featuring full market competition with intensified market competition and
a sharp decline in prices. If the “Reconstruction and expansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” went on as scheduled we may facerisks that the utilization rate of raised funds may decline and the expected investment objective may not be achieved. Therefore the Company terminated the implementation of the “Reconstruction andexpansion project of high-grade environmental-friendly specialty papers with annual production output of 13000 tons” during the Reporting Period. The “R&D center construction project” was launched to
Reason for change meet the Company’s demand for R&D in its main businesses before listing. With the completion of major asset restructuring in 2018 the Company’s main businesses included lithium battery separator
decision making which has high technological requirements. The manufacturing of lithium batteries has a high requirement for the characteristics of separator materials especially consistency and the size and uniformity of
procedure and distribution of separator micropores. Based on the Company’s business development plan and market demand to better implement its development strategy the Company intends to integrate the technology
information disclosure centers currently scattered in subsidiaries so as to ensure that the Company’s R&D technology can further improve production efficiency product quality and new product development capacity. The above
(by specific project) changes were considered and approved by the Company at the 27th meeting of the Third Board of Directors the 22nd meeting of the Third Supervisory Committee and the 2018 Annual General Meeting. Fordetails please refer to the Announcement on Adjustment of Certain Fundraising Investment Projects (Announcement No. 2019-041) published by the Company in the designated information disclosure media
on April 26 2019.At the 46th meeting of the Fifth Board of Directors and the 38th meeting of the Fifth Supervisory Committee held by the Company on August 18 2025 the Proposal on Adding a New Implementation
Location and Extending the Timeline for Certain Fundraising Investment Projects was considered and approved. It was agreed to extend the date of “Energy Research Institute Project” on which the project
will be ready for use to December 31 2026 and to add a new implementation location. For details please refer to the Announcement on Adding a New Implementation Location and Extending the Timeline
for Certain Fundraising Investment Projects (Announcement No. 2025-135) published by the Company in the designated information disclosure media on August 19 2025.
2. “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project”
Since the proceeds raised were received the Company has been actively advancing the implementation of the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project”.However due to intensified competition in the industry chain in recent years and a decline in product prices across all segments the Company after prudent consideration has determined that continuing to
implement the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” at this stage may expose the Company to the risk that the project’s return on investment will fail to
meet expectations and therefore the project’s investment strategy needs to be adjusted. Accordingly taking into account the Company’s overall strategic planning and in order to mitigate the investment risk
932025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
of fundraising projects and enhance the efficiency of fund utilization the Company decided to terminate the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated Film Industrialization Project” and
permanently supplement its working capital with the remaining proceeds raised from the project to be used for daily operating activities related to the Company’s main businesses. In the future the Company
will decide whether to continue the project using its own funds based on the development of the industry and its business operations. The above-mentioned change was considered and approved by the
Company at the 46th meeting of the Fifth Board of Directors the 38th meeting of the Fifth Supervisory Committee and the Seventh Extraordinary General Meeting of 2025. For details please refer to the
Announcement on Terminating Certain Fundraising Investment Projects and Permanently Supplementing Working Capital with the Remaining Proceeds (Announcement No. 2025-134) published by the
Company in the designated information disclosure media on August 19 2025.Status of and reason
for failing to make The main reason for the failure of the “Energy Technology Research Institute Project” to meet the planned schedule is that changes in the lithium battery separator market in recent years and rapid equipment
planned progress or upgrades made the Company more prudent in its R&D activities such as the purchase of experimental equipment for this project. In addition the industrial and commercial registration in the early stage of the
achieve expected implementing entity-Shanghai Energy New Materials Research Co. Ltd.-was slower than expected. Under these circumstances and out of prudence in order to ensure compliance in the use of the proceeds
returns (by specific raised the Company mainly used its own funds for R&D activities R&D investments equipment purchases and facility expenses incurred during the period before the completion of the industrial and
project) commercial registration procedures of the project implementing entity.Description of major As of the date of this Report the industrial and commercial registration of Shanghai Energy New Materials Research Co. Ltd the implementation body of the “Energy Technology Research Institute Project”
changes in project has been completed and the facility was put into use in 2023. The Company attaches great importance to R&D investment with relevant R&D activities primarily focusing on the Company’s main business
feasibility after the and forward-looking technology reserves based on related technical fields and has demonstrated that there has been no significant change in the feasibility of the project. In order to optimize the efficiency of
change the use of the proceeds raised ensure precise allocation of funds and avoid unnecessary expenditures that may arise from compressing the project timeline the Company has decided to extend the timeline ofthe “Energy Technology Research Institute Project” and postpone its expected date of readiness for use to December 31 2026.
942025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. Verification opinion of an intermediary institution regarding the deposit and use of raised
funds
Applicable □ Not applicable
During the period of ongoing supervision the sponsor verified the deposit use and implementation of the Company’s fundraising
investment projects through various methods including document review and on- site inspections. The main verification content
included: bank statements of the Company’s proceeds- raised deposits original vouchers for the use of the proceeds relevant
announcements and supporting documents regarding the use of the proceeds and project progress information among other
materials.After verification the sponsor is of the opinion that:
During the Reporting Period Yunnan Energy New Material (Group) Co. Ltd. did not experience any misappropriation of proceeds
raised by the controlling shareholder or the actual controller during the use of the proceeds and there was no serious violation of the
relevant rules on the use of proceeds raised.XVII. Explanation for Other Significant Events
Applicable □ Not applicable
1.As of January 22 2025 the Company’s convertible bond “Energy Convertible Bonds” triggered the clause of downward revision
of the conversion price. On January 22 2025 the Company held the 37th meeting of the Fifth Board of Directors at whichthe Proposal on the Board of Directors’ Proposal to Revise Downward the Conversion Price of the “Energy ConvertibleBonds” was considered and approved. The Board of Directors proposed to revise downward the conversion price of the “EnergyConvertible Bonds” and submitted the proposal to the General Meeting of the Company for approval. For details please refer tothe Announcement on the Board of Directors’ Proposal to Revise Downward the Conversion Price of the “Energy ConvertibleBonds”(Announcement No. 2025-020) published by the Company in the designated information disclosure media on January 23
2025. On February 10 2025 the Company held the Third Extraordinary General Meeting of 2025 which considered and approved
the above matter and authorized the Board of Directors to take full charge of all matters relating to the downward revision of the
conversion price of the “Energy Convertible Bonds” in accordance with the Prospectus for the Public Offering of Convertible
Corporate Bonds and other relevant regulations. On February 10 2025 the Company held the 38th meeting of the Fifth Board ofDirectors at which the Proposal on Revising Downward the Conversion Price of the “Energy Convertible Bonds “was consideredand approved. Pursuant to the authorization granted by the Third Extraordinary General Meeting of 2025 the Board of Directors
resolved to revise downward the conversion price of the “Energy Convertible Bonds” to RMB32.00 per share with the revised
conversion price taking effect from February 11 2025. For details please refer to the Announcement on Revising Downward the
Conversion Price of the “Energy Convertible Bonds” (Announcement No. 2025-027) published by the Company in the designated
information disclosure media on February 11 2025.
2. During the Reporting Period in order to achieve the coordinated and balanced development of the Company’s economic social
and environmental performance and its sustainable development strengthen environmental social and governance (ESG)
management actively fulfill corporate social responsibility and enhance the Company’s risk control capabilities and value creation
capacity in the areas of environment society and governance the Company formulated the Environmental Social and Governance
(ESG) Management System in accordance with relevant laws regulations rules and normative documents as well as the provisions
of the Articles of Association and in light of the Company’s actual circumstances. To enhance the Company’s capacity to address
various public opinion issues establish rapid response and emergency handling mechanisms and promptly and appropriately
manage the impact of such issues on the Company’s share price commercial reputation and normal production and business
operations while effectively safeguarding the legitimate rights and interests of investors the Company formulated the Public
Opinion Management System in accordance with relevant laws regulations normative documents and the provisions of the Articles
of Association and in light of the Company’s actual circumstances. The above-mentioned Environmental Social and Governance
(ESG) Management System and Public Opinion Management System were considered and approved at the 38th meeting of the Fifth
Board of Directors and the 40th meeting of the Fifth Board of Directors respectively.
3.On June 16 2025 the Company held the 44th meeting of the Fifth Board of Directors at which the Proposal on the Proposed
Registration and Issuance of Debt Financing Instruments of Non-Financial Enterprises in the Inter-Bank Bond Market was
considered and approved. Based on strategic development needs in order to broaden financing channels optimize the financing
structure and reduce financing costs the Company plans to apply to the National Association of Financial Market Institutional
Investors (NAFMII) for the registration and issuance of debt financing instruments of non-financial enterprises in the inter-bank
bond market with an aggregate amount not exceeding RMB1.0 billion. The types of instruments to be issued include medium-term
notes short-term commercial paper and ultra-short-term commercial paper to meet the Company’s funding requirements for its
rapid development. This matter was considered and approved by the Company at the Fifth Extraordinary General Meeting of 2025.At the same time in order to regulate the Company’s information disclosure practices regarding the issuance of debt financing
instruments of non-financial enterprises in the inter-bank bond market and to strengthen the management of information disclosure
matters the Company formulated the Information Disclosure Management System for Debt Financing Instruments of Non-Financial
Enterprises in the Inter-Bank Bond Market. On July 4 2025 the Company held the 45th meeting of the Fifth Board of Directors at
which the Proposal on Adjusting the Types of Debt Financing Instruments of Non-Financial Enterprises to Be Issued in the Inter-
Bank Bond Market was considered and approved. While keeping the total registered issuance amount unchanged the Company
adjusted the types of instruments to be issued from medium-term notes short-term commercial paper and ultra-short-term
commercial paper to medium-term notes only. For details please refer to the Announcement on the Proposed Registration and
Issuance of Debt Financing Instruments of Non-Financial Enterprises in the Inter-Bank Bond Market (Announcement No. 2025-094)
and the Announcement on Adjusting the Types of Debt Financing Instruments of Non-Financial Enterprises to Be Issued in the
Inter-Bank Bond Market (Announcement No. 2025-104) published by the Company in the designated information disclosure media
on June 17 2025 and July 5 2025 respectively.
4. On July 4 2025 the Company held the 45th meeting of the Fifth Board of Directors at which the Proposal on the Purchase of
Directors’ Supervisors’ and Senior Management’s Liability Insurance was considered and approved. In order to further improve
the risk management system reduce the Company’s operating risks and enable the relevant responsible persons to more fully
exercise their decision-making supervisory and management functions within their respective scopes of duties the Company
purchased liability insurance for its directors supervisors senior management and other relevant responsible persons in accordance
with the Corporate Governance Code for Listed Companies and other relevant regulations. The annual insurance limit is not more
952025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
than RMB80 million (subject to the terms of the insurance contract) the annual premium is not more than RMB400000 (subject to
the terms of the insurance contract) and the policy period is one year (renewable or replaceable annually thereafter). This matter
was considered and approved by the Company at the Sixth Extraordinary General Meeting of 2025. For details please refer to
the Announcement on the Purchase of Directors’ Supervisors’ and Senior Management’s Liability Insurance(Announcement No.
2025-105) published by the Company in the designated information disclosure media on July 5 2025.
5. On August 18 2025 the Company held the 46th meeting of the Fifth Board of Directors at which the following proposals were
considered and approved: The Proposal on Terminating Certain Fundraising Investment Projects and Permanently Supplementing
Working Capital with the Remaining Proceeds. In order to improve the efficiency of the use of the proceeds raised after prudentstudy the Company terminated the construction of the “Jiangsu Ruijie EV Lithium Battery Aluminum Laminated FilmIndustrialization Project” and permanently supplemented its working capital with the remaining proceeds from that project for daily
production and operation. This matter was considered and approved by the Company at the Seventh Extraordinary General Meeting
of 2025; The Proposal on Adding a New Implementation Location and Extending the Timeline for Certain Fundraising Investment
Projects. On a prudent basis and taking into account the actual progress of the “Energy Research Institute Project” (a fundraising
investment project) the Company extended the expected date of readiness for use of the “Energy Research Institute Project” to
December 31 2026 while keeping the implementing entity the use of the proceeds raised and the total investment amount
unchanged. In addition an additional implementation location “Lane 1851 Jinqiao Road Pudong New Area Shanghai China”
was added; The Proposal on Using Own Funds and Acceptance Bills to Finance Certain Fundraising Investment Projects and
Subsequently Replacing the Equivalent Amount with Funds Raised. The Company was agreed to during the implementation of the
“Energy Research Institute Project” use its own funds and acceptance bills to finance certain fundraising investment projects and
subsequently replace the equivalent amount with funds raised on a periodic basis transferring the funds from the proceeds-raised
special account to the Company’s non-proceeds-raised accounts. Such equivalent replacement amounts are deemed to be the funds
used for fundraising investment projects. For details please refer to the Announcement on Terminating Certain Fundraising
Investment Projects and Permanently Supplementing Working Capital with the Remaining Proceeds (Announcement No. 2025-134)
the Announcement on Adding a New Implementation Location and Extending the Timeline for Certain Fundraising Investment
Projects (Announcement No. 2025-135) the Announcement on Using Own Funds and Acceptance Bills to Finance Certain
Fundraising Investment Projects and Subsequently Replacing the Equivalent Amount with Funds Raised (Announcement No. 2025-
136) and the Announcement on the Resolutions of the Seventh Extraordinary General Meeting of 2025 (Announcement No. 2025-
146) published by the Company in the designated information disclosure media on August 19 2025.
6. On August 18 2025 the Company held the 46th meeting of the Fifth Board of Directors at which the Proposal on Canceling the
Supervisory Committee Amending the Articles of Association and Making Corresponding Changes to the Industrial and
Commercial Registration was considered and approved. In light of the Company’s actual circumstances and operational
management needs the Company will no longer have a Supervisory Committee. The relevant powers and functions of the
Supervisory Committee will be exercised by the Audit Committee of the Board of Directors. The provisions of the Company’s
policies relating to the Supervisory Committee including the Rules of Procedure for the Supervisory Committee will be repealed
accordingly. Simultaneously an Employee Representative Director will be added. For details please refer to the Announcement on
Canceling the Supervisory Committee Amending the Articles of Association and Making Corresponding Changes to the Industrial
and Commercial Registration (Announcement No. 2025-137) and the Announcement on Canceling the Supervisory
Committee (Announcement No. 2025-147) published by the Company in the designated information disclosure media on August 19
2025.
7. On September 4 2025 the Company held a Workers Congress at which Ms. Kang Wenting was democratically elected as the
Employee Representative Director of the Fifth Board of Directors. Mr. Feng Jie resigned from his positions as a Director of the
Board of Directors a member of the Strategic Committee and a member of the Nomination Committee due to personal reasons.After resigning from the above positions Mr. Feng Jie will continue to serve as the General Manager and the Head of the Sales
Department of Hongta Plastic (Chengdu) Co. Ltd. a subsidiary of the Company. On October 9 2025 the Company held the 47th
meeting of the Fifth Board of Directors at which the Proposal on Adjusting the Composition of Certain Special Committees of the
Board of Directors was considered and approved. Ms. Kang Wenting was elected as a member of the Strategic Committee and a
member of the Nomination Committee of the Board of Directors effective from the date of approval by the Board of Directors until
the expiry of the term of the Fifth Board of Directors. For details please refer to the Announcement on the Resignation of a Non-
Independent Director and the Election of an Employee Representative Director (Announcement No. 2025-148) and
the Announcement on Adjusting the Composition of Certain Special Committees of the Board of Directors (Announcement No.
2025-156) published by the Company in the designated information disclosure media on September 5 2025 and October 10 2025
respectively.
8. On October 9 2025 the “Energy Convertible Bonds” triggered the conditional redemption clause. On the same day the Companyheld the 47th meeting of the Fifth Board of Directors at which the Proposal on Early Redemption of the “Energy ConvertibleBonds” was considered and approved. The Board of Directors resolved to exercise the early redemption right in respect of the
“Energy Convertible Bonds”. October 27 2025 was the last trading day of the “Energy Convertible Bonds” and October 30 2025
was the last conversion day. As from October 31 2025 conversion of the “Energy Convertible Bonds” was suspended. October 31
2025 was the redemption date. The Company redeemed all 24163 “Energy Convertible Bonds” that had not been converted at a
redemption price of RMB101.44 per bond (including accrued interest for the current period with the current interest rate being
2.00% and such interest being inclusive of tax). The redemption price after tax was subject to the price approved by the China
Securities Depository and Clearing Corporation Limited (CSDC) and the total redemption payment amounted to RMB2451094.72
(excluding redemption handling fees). On November 10 2025 the “Energy Convertible Bonds” (Bond Code: 128095) issued by the
Company were delisted from the Shenzhen Stock Exchange. For details please refer to the Announcement on the Redemption
Results of the “Energy Convertible Bonds” (Announcement No. 2025-186) and the Announcement on the Delisting of the “EnergyConvertible Bonds” (Announcement No. 2025-187) published by the Company in the designated information disclosure media on
November 8 2025.
962025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
9. On December 12 2025 the Company held the 49th meeting of the Fifth Board of Directors at which the Proposal on the Plan
for Issuing Shares to Purchase Assets and Raising Supporting Funds by Yunnan Energy New Material Co. Ltd. and its
Summary and other proposals related to the transaction were considered and approved. The Company proposed to acquire 100% of
the equity interests in Qingdao Zhongkehualian New Material Co. Ltd. held by the transaction parties including Zhi Lipeng
Qingdao Zhongzhida Investment Co. Ltd. Chen Jichao Yang Bo and Yuan Jun by way of issuing shares and to raise supporting
funds by issuing shares to no more than 35 eligible specific investors. For details please refer to the relevant announcements
published by the Company on December 13 2025. The Company disclosed information regarding the material asset restructuring in
accordance with the Administrative Measures for Material Asset Restructuring of Listed Companies and other relevant regulations
and published a progress announcement on the transaction every thirty days. For details please refer to the Announcement on
Progress of Issuing Shares to Purchase Assets and Raising Supporting Funds (Announcement Nos. 2026-003 2026-014 2026-029
2026-046) published by the Company on January 10 2026 February 7 2026 March 7 2026 and April 4 2026 respectively.
10. On October 29 2025 the Company held the 48th meeting of the Fifth Board of Directors at which the Proposal on the
Proposed Change of the Company’s Name Amendment of the Articles of Association and Handling of Changes to Industrial andCommercial Registration was considered and approved. The Company resolved to change its name to “云南恩捷新材料（集团）股份有限公司” with the English name correspondingly changed to “Yunnan Energy New Material (Group) Co. Ltd.” This matter
was considered and approved by the Company at the Eighth Extraordinary General Meeting of 2025. On January 6 2026 the
Company completed the relevant filing procedures for changes to industrial and commercial registration and obtained the
new Business License issued by the Yuxi Municipal Administration for Market Regulation. For details please refer to
the Announcement on the Proposed Change of the Company’s Name Amendment of the Articles of Association and Handling of
Changes to Industrial and Commercial Registration (Announcement No. 2025-181) the Announcement on the Change of the
Company’s Full Name and Completion of Changes to Industrial and Commercial Registration (Announcement No. 2026-002) and
the Announcement on the Resolutions of the Eighth Extraordinary General Meeting of 2025 (Announcement No. 2025-191)
published by the Company in the designated information disclosure media on October 30 2025 and January 8 2026 respectively.XVIII. Significant Events of the Company’s Subsidiaries
Applicable □ Not applicable
1. On January 17 2025 Hubei Energy a subsidiary of the Company applied to the competent tax authority in accordance with the
relevant requirements of the Announcement of the Ministry of Finance and the State Taxation Administration on Further Stepping
up of the Application of End-of-Period Excess Input Value-Added Tax Credit Refund Policies (Announcement No. 14 2022) and
recently received a refund of end-of-period excess input value-added tax (VAT) credits in the amount of RMB27076059.55. For
details please refer to the Announcement on the Receipt of VAT Excess Input Credit Refund by a Subsidiary (Announcement No.
2025-014) published by the Company in the designated information disclosure media on January 18 2025.
2. On April 3 2025 Newmi Tech a subsidiary of the Company received the Decision on Taking Administrative Supervision
Measures of Corrective Action and Issuance of a Warning Letter on Chongqing Energy Newmi Technological Co. Ltd. (No. [2025]
21) from the Chongqing Regulatory Bureau of the China Securities Regulatory Commission for failing to promptly disclose the
progress of performance of commitments and for incomplete disclosure of related party transactions. The Chongqing Regulatory
Bureau of the China Securities Regulatory Commission imposed on the relevant responsible persons of Newmi Tech both regulatory
interviews and a warning letter as regulatory measures. Newmi Tech and the relevant responsible persons attached great importance
to the matter conducted a comprehensive review of the issues involved and diligently formulated rectification plans and
implemented corrective actions in an effort to comprehensively address Newmi Tech’s existing problems. For details please refer to
the Corrective Action Report in Response to the Administrative Supervision Measures of Corrective Action and Issuance of a
Warning Letter Imposed by the Chongqing Regulatory Bureau of the China Securities Regulatory Commission against the
Company (Announcement No. 2025-021) published by Newmi Tech on the National Equities Exchange and Quotations
(www.neeq.com.cn) on May 7 2025.
3. In light of its overall strategic development planning Newmi Tech intends to apply for the termination of listing of its shares on
the National Equities Exchange and Quotations (NEEQ). Newmi Tech held the 10th meeting of the Fourth Board of Directors on
September 19 2025 and the Fourth Extraordinary General Meeting of 2025 on October 10 2025 at which the Proposal on the
Proposed Application for the Termination of Listing of Newmi Tech’s Shares on the National Equities Exchange and
Quotations was considered and approved. Trading in Newmi Tech’s shares was suspended from September 25 2025. On October
21 2025 Newmi Tech submitted its application materials for the termination of listing to the NEEQ Company which upon review
decided to accept the application and issued to Newmi Tech the Acceptance Notice with number ZZGP2025100004. As of the date
of this Report the termination of listing of Newmi Tech has not yet been completed.
972025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 6 Share Changes and Shareholder Details
I. Changes in Shares
1. Changes in shares
Unit: Shares
Before the change Increase or decrease (＋－) After the change
Conversion
Number of Proportion New shares Bonus of reserve Others Subtotal Number Proportion
shares issued issuance into share of
shares
I. Shares subject 154167328 15.87% 5418571. 5418 159585restriction on sale .00 00 571 899 16.25%
1. Shares held
by state
2. Shares held
by state- owned
legal persons
3. Shares held
by other domestic 57787226 5430240. 5430 63217.00 5.95% 00 240 466 6.44%investors
Including:
Shares held by
domestic legal
persons
Shares held by
domestic natural 57787226.00 5.95%
5430240.543063217
persons 00 240 466
6.44%
4. Shares held
by overseas 96380102
--.009.92%11669.0116
96368
433 9.81%investors 0 69
Including:
Shares held by
overseas legal
persons
Shares held by - -
overseas natural 96380102 96368
persons .00
9.92%11669.0116
069433
9.81%
II. Shares not
subject to 817111828 552241 822634
restrictions on sale .00
84.13%5522410.00023883.75%
1. Renminbi
denominated 817111828.00 84.13% 5522410.00
55224182263483.75%
common shares 0 238
2.
Domestically-
listed foreign
shares
3. Foreign
shares listed
overseas
4. Others
III. Total shares 971279156.00100.00%
10940981.10940982220
00981137100.00%
Reason for Changes in Shares
□Applicable □Not applicable
1. Conversion of convertible corporate bonds into shares
Under the approval granted by the CSRC under the Reply on Approving the Public Offering of Convertible Corporate Bonds by Yunnan
Energy New Material Co. Ltd. (Zheng Jian Xu Ke [2019] No. 2701) the Company made a public offering of 16 million convertible corporate bonds (bond
abbreviation: Energy Convertible Bond bond code: 128095) on February 11 2020 and started trading at Shenzhen Stock Exchange on February 28
2020. The conversion period of “Energy Convertible Bonds” was from August 17 2020 to October 30 2025. During the Reporting Period a total
of 14072680 shares were converted from the bonds and by the end of the Reporting Period a total of 31705156 shares were converted from the
bonds.
2. 2022 Stock Option and Restricted Share Incentive Plan
During the Reporting Period pursuant to the Administrative Measures for Equity Incentives of Listed Companies and other relevant laws
regulations normative documents as well as the Company’s 2022 Stock Option and Restricted Share Incentive Plan due to the resignation or demotion of
50 incentive recipients under the restricted share grants of the 2022 Stock Option and Restricted Share Incentive Plan the Company repurchased and
cancelled 35835 restricted shares that had been granted but not subject to unlocking. On March 21 2025 the Company completed the repurchase and
cancellation of the aforementioned 35835 restricted shares. Due to the failure to meet the company-level performance assessment requirement for the
third vesting period of the 2022 Stock Option and Restricted Share Incentive Plan the Company repurchased and cancelled 330036 restricted shares that
had been granted but not subject to unlocking for all incentive recipients. On August 1 2025 the Company completed the repurchase and cancellation of
the aforementioned 330036 restricted shares
3. 2024 Restricted Share Incentive Plan
During the Reporting Period pursuant to the Administrative Measures for Equity Incentives of Listed Companies and other relevant laws
982025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
regulations normative documents as well as the Company’s 2024 Restricted Share Incentive Plan due to the resignation or demotion of 20 incentive
recipients under the initial grant of restricted shares of the 2024 Restricted Share Incentive Plan the Company repurchased and cancelled a total of
1735482 restricted shares that had been granted but not subject to unlocking. On March 21 2025 the Company completed the repurchase and
cancellation of the aforementioned 1735482 restricted shares. Due to the failure to meet the company-level performance assessment requirement for the
first vesting period of the initial grant under the 2024 Restricted Share Incentive Plan as well as the resignation or demotion of certain incentive recipients
the Company repurchased and cancelled 1030346 restricted shares that had been granted but not subject to unlocking. On August 1 2025 the Company
completed the repurchase and cancellation of the aforementioned 1030346 restricted shares.
4. Changes in the locked-up shares held by the senior management
The shares held by the Company’s directors supervisors and senior management are managed and locked up in accordance with the relevant
provisions of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange the Self-Regulatory Guidelines No. 18 for Companies Listed on
Shenzhen Stock Exchange - Shareholding Decrease by Shareholders Directors Supervisors and Senior Management the Self-Regulatory Guidelines No.
18 for Companies Listed on Shenzhen Stock Exchange - Shareholding Decrease by Shareholders Directors and Senior Management (2025 Revision) the
Administrative Measures for Shareholding Reduction by Shareholders of Listed Companies and the Administrative Measures for Shareholding Reduction
by Shareholders of Listed Companies (2025 Revision) among other relevant regulations.Approval of Changes in Shares
□Applicable □Not applicable
1. Conversion of convertible corporate bonds into shares
Under the approval granted by the CSRC under the Reply on Approving the Public Offering of Convertible Corporate Bonds by
Yunnan Energy NewMaterial Co. Ltd. (Zheng Jian Xu Ke [2019] No. 2701) the Company made a public offering of 16 million convertible
corporate bonds (bond abbreviation: Energy Convertible Bond bond code: 128095) on February 11 2020 and started trading at Shenzhen
Stock Exchange on February 28 2020. The conversion period of “Energy Convertible Bonds” started on August 17 2020.
2. Repurchase and cancellation of partial restricted shares under 2022 Stock Option and Restricted Share Incentive Plan
On January 2 2025 the 36th meeting of the 5th Board of Directors and the 30th meeting of the 5th Supervisory Committee of the
Company considered and approved the Proposal on the Repurchase and Cancellation of Certain Restricted Shares. On January 20
2025 the Company convened the Second Extraordinary General Meeting for 2025 which considered and approved the above proposal.
With the approval of CSDC Shenzhen Branch and the Shenzhen Stock Exchange the Company completed the repurchase and
cancellation procedures for the relevant restricted shares on March 21 2025. On April 22 2025 the 40th meeting of the 5th Board of
Directors and the 33rd meeting of the 5th Supervisory Committee considered and approved the Proposal on the Repurchase and
Cancellation of Certain Restricted Shares. On May 14 2025 the Company convened the 2024 Annual General Meeting which
considered and approved the above proposal. With the approval of CSDC Shenzhen Branch and the Shenzhen Stock Exchange the
Company completed the repurchase and cancellation procedures for the relevant restricted shares on August 1 2025.
3. Repurchase and cancellation of partial restricted shares under the 2024 Restricted Share Incentive Plan
On January 2 2025 the 36th meeting of the 5th Board of Directors and the 30th meeting of the 5th Supervisory Committee
considered and approved the Proposal on the Repurchase and Cancellation of Certain Restricted Shares. On January 20 2025 the
Company convened the Second Extraordinary General Meeting for 2025 which considered and approved the above proposal. With the
approval of CSDC Shenzhen Branch and the Shenzhen Stock Exchange the Company completed the repurchase and cancellation
procedures for the relevant restricted shares on March 21 2025. On April 22 2025 the 40th meeting of the 5th Board of Directors and
the 33rd meeting of the 5th Supervisory Committee considered and approved the Proposal on the Repurchase and Cancellation of
Certain Restricted Shares. On May 14 2025 the Company convened the 2024 Annual General Meeting which considered and
approved the above proposal. With the approval of CSDC Shenzhen Branch and the Shenzhen Stock Exchange the Company
completed the repurchase and cancellation procedures for the relevant restricted shares on August 1 2025. On May 13 2025 the 43rd
meeting of the 5th Board of Directors and the 35th meeting of the 5th Supervisory Committee considered and approved the Proposal on
the Repurchase and Cancellation of Certain Restricted Shares. On May 30 2025 the Company convened the 4th Extraordinary General
Meeting for 2025 which considered and approved the above proposal. With the approval of CSDC Shenzhen Branch and the Shenzhen
Stock Exchange the Company completed the repurchase and cancellation procedures for the relevant restricted shares on August 1
2025.
Transfer of share ownership
□Applicable □Not applicable
1. Conversion of convertible corporate bonds into shares
A total of 14072680 shares were converted from “Energy Convertible Bonds” during the Reporting Period and a total of 31705156 shares were
converted from “Energy Convertible Bonds” as of the end of the Reporting Period.
2. Repurchase and cancellation of partial restricted shares under the 2022 Stock Option and Restricted Stock Incentive Plan and the 2024 Restricted
Stock IncentivePlan
(1) The Company completed the repurchase and cancellation of a total of 1771317 restricted shares which were not released from restriction under the 2022 Stock
Option and Restricted Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan at the sum of the repurchase price plus the interest on deposits with
the bank for the same period. The repurchase and cancellation of certain restricted shares by the Company was verified by RSM CHINA (Special General
Partnership) which issued the Capital Verification Report (Rong Cheng Yan Zi [2025] No. 100Z0006. On March 21 2025 the aforesaid repurchase and
cancellation was reviewed and confirmed by CSDC Shenzhen Branch and the process was completed.
(2) The Company completed the repurchase and cancellation of 330036 restricted shares which were not released from restriction under the 2022
Stock Option and Restricted Share Incentive Plan and a total of 1030346 restricted shares which were not released from restriction under the
2024 Restricted Share Incentive Plan at the sum of the repurchase price plus the interest on deposits with the bank for the same period. The
repurchase and cancellation of certain restricted shares by the Company was verified by RSM CHINA (Special General Partnership) which
issued the Capital Verification Report (Rong Cheng Yan Zi [2025] No. 100Z0038. On August 1 2025 the aforesaid repurchase and
cancellation was reviewed and confirmed by CSDC Shenzhen Branch and the process was completed.Effects of change in shares on the basic EPS diluted EPS net assets per share attributable to ordinary shareholders of the Company and
other financial indicators for the prior year and the latest period.□Applicable □Not applicable
* During the Reporting Period the conversion of a small number of 14072680 shares from the “Energy Convertible Bonds” had small impact on the
Company’s basic earnings per share and diluted earnings per share and had an impact on the net assets per share attributable to ordinary shareholders of the
Company by RMB0.08/share;
* During the Reporting Period the Company repurchased and cancelled a total of 3131699 restricted shares under the stock incentive plan which
had a small impact on the Company’s basic earnings per share and diluted earnings per share and had an impact on the net assets per share attributable to
ordinary shareholders of the Company by approximately RMB0.01/share.Other contents that the Company considers it necessary to disclose or that are required by the security regulatory authorities to disclose
992025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
□Applicable□Not applicable
1002025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
2. Changes in restricted shares
□Applicable □Not applicable
Unit: Shares
Number of
Number of Increase of restricted
Name of restricted restricted shares
Number of
restricted Reason for
shareholder shares at the shares in unlocked Date of unlockingbeginning of the current in the shares at the restriction
period period current end of period
period
Locked-up
Paul Xiaoming 96332352 1 96332353 shares held by A director can unlock 25% of the total shares he holdsLee senior every year
executives
Locked-up
Li Xiaohua 52034039 8528370 60562409 shares held by A director and general manager can unlock 25% of thesenior total shares he holds every year
executives
He resigned from the position of the director on
Locked-up September 4 2025. Within six months after resignation
Feng Jie 61500 20500 82000 shares held by he shall not reduce his holdings of the Company’s shares.senior Until the expiration of six months after the term of office
executives confirmed at the time of appointment 25% of his total
shareholdings may be unlocked each year.* Locked-up * A director can unlock 25% of the total shares he or she
shares held by holds every year;* The restricted shares under the 2024
senior Restricted Stock Incentive Plan of the Company will be
executives released in three installments 12 months after theMa Weihua 115125 13500 101625 Restricteds completion of the first grant registration during the*
hares for Reporting Period the company-level performance
equity requirement for the first vesting period was not met and
incentive 6000 shares of the incentive restricted shares held by himwere repurchased and cancelled by the Company.She resigned from the position of the independent
Locked-up director on December 31 2023. As of the end of the
Shou Chunyan 450 450 0 shares held by Reporting Period more than six months have passed sincesenior her resignation and the total number of shares held in the
executives Company does not exceed 1000 shares which may be
transferred in full at one time.He resigned from the position of the supervisor on
Locked-up September 4 2025. Within six months after resignation
Zhang Tao 23100 7700 30800 shares held by he shall not reduce his holdings of the Company's shares.senior Until six months after the expiration of the term of office
executives confirmed at the time of appointment 25% of his total
shareholdings may be unlocked each year.Resigned as supervisor on September 4 2025. Within six
Locked-up months after resignation he shall not reduce his holdings
Li Bing 16800 6224 23024 shares held by of the Company’s shares. Until six months after thesenior expiration of the term of office confirmed at the time of
executives appointment 25% of his total shareholdings may be
unlocked each year
Locked-up
Li Xianglin 0 1425 1425 shares held by As Chief Financial Officer 25% of his totalsenior shareholdings may be unlocked each year.executives
1 A Deputy General Manager can unlock 25% of the
total shares he or she holds every year; * The
restricted shares held under the 2022 Stock Option
and Restricted Stock Incentive Plan of the
Locked-up Company will be released in three installments 12*
shares held by months after the completion of the first grant
senior registration. During the Reporting Period the
Yu Xue 193800 63600 130200 executives; company-level performance requirement for the*
Restrictedshar third vesting period was not met and all 12000
es for equity incentive restricted shares held by her were
incentive repurchased and cancelled by the Company; * Therestricted shares held under the Company’s 2024
Restricted Share Incentive Plan are subject to three
vesting tranches starting 12 months after the
completion of the initial grant registration. Due to
the failure to meet the company-level performance
1012025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
requirement for the first vesting period during the
Reporting Period and her job adjustment 45600
incentive restricted shares held by her were
repurchased and cancelled by the Company.
1 Resigned as Chief Financial Officer on April 28
2025. Within six months after resignation he shall
not reduce his holdings of the Company’s shares.Locked-up Until six months after the expiration of the term of*
shares held by office confirmed at the time of appointment 25% of
senior his total shareholdings may be unlocked each year;
Li Jian 192675 60000 132675 executives; * The restricted shares held under the Company’s*
Restrictedshar 2024 Restricted Share Incentive Plan are subject to
es for equity three vesting tranches starting 12 months after the
incentive completion of the initial grant registration. As he nolonger qualifies as an incentive recipient after
resignation all 60000 incentive restricted shares
held by him were repurchased and cancelled by the
Company.Other incentive The restricted shares held under the 2022 Stock Option
recipients under and Restricted Stock Incentive Plan of the Company will
2022 Stock be released in three installments 12 months after the
Option and Restricted completion of the first grant registration; During the
Restricted Stock 353871 353871 0 shares for Reporting Period 353871 shares were repurchased and
Incentive Plan equity cancelled by the Company for the reason of failure to
(other than incentive meet the performance assessment requirement in the
directors and company level in the third unlocking period and also for
senior executives) the reason of resignation or demotion of some granteesthereunder.Other incentive The restricted shares held under the 2024 Restricted
recipients under Stock Incentive Plan of the Company will be released in
2024 Restricted Restricted three installments 12 months after the completion of the
Stock Incentive 4843616 2654228 2189388 shares for first grant registration. During the Reporting PeriodPlan (other than equity 2654228 shares were repurchased and cancelled due to
directors incentive the failure to meet the company-level performance
supervisors and requirement for the first vesting period and the resignation
senior executives) or demotion of certain incentive recipients.Total 154167328 8564220 3145649 159585899 -- --
II. Issuance and Listing of
Securities
1. Issuance of securities (excluding preferred shares) during the Reporting Period
□Applicable□Not applicable
2. Statement on changes in total shares and shareholder structure of the Company and changes in assets
and liabilities of the Company
□Applicable □Not applicable
At the beginning of the Reporting Period the Company recorded a total share capital of 971279156 shares (of which 154167328 shares wererestricted shares and the remaining 817111828 shares were unrestricted shares) and a gearing ratio of 44.48%. During the Reporting Period the “EnergyConvertible Bonds” were converted into 14072680 shares. The Company repurchased and cancelled a total of 365871 restricted shares not meeting the
unlocking conditions under the 2022 Stock Option and Restricted Stock Incentive Plan. The Company also repurchased and cancelled a total of 2765828
restricted shares not meeting the incentive conditions under the 2024 Restricted Stock Incentive Plan. As at the end of the Reporting Period the Company
recorded a total share capital of 982220137 (of which 159585899 shares were restricted shares and the remaining 822634238 shares were unrestricted
shares) and a gearing ratio of 44.17%.
1022025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
3. Existing shares held by internal employees of the Company
□Applicable□Not applicable
III. Details of Shareholders and Actual Controllers
1．Number of shareholders and their shareholdings
Unit: Shares
Total
ordinary Total preferred
Total ordinary shareholders shareholders Total preferred shareholders
shareholders at at the end of resuming resuming voting right at the
the end of the 111670 the previous 122165 voting right at 0 end of the previous month 0
Reporting Period month before the end of the before annual reportannual report Reporting disclosure date
disclosure Period
date
Shareholders holding more than 5% of shares or shareholdings of the top 10 shareholders (excluding shares lent through securities lending and refinancing)
Number of Increase or Pledged tagged or frozenshares held
Name of Nature of Shareholding at the end of decrease of Number of Number of
shareholder shareholder ratio the shares during restricted unrestricted Status of Number of
Reporting the Reporting shares held shares held shares shares
Period Period
PAUL Overseas
XIAOMING natural 13.08% 128443138 0 96332353 32110785 Pledged 65000000
LEE person
Yuxi Heyi Domestic
Investment Co. non-state-
Ltd. owned legal
12.16% 119449535 0 0 119449535 Pledged 76960600
person
Domestic
Li Xiaohua natural 8.22% 80749879 11983790 60562409 20187470 Pledged 40970000
person
Overse
SHERRY LEE asnatural 7.26% 71298709 0 0 71298709
Not
applicable 0
person
Hong Kong
Clearing Company Overseas legal 4.17% 40984924 14949869 0 40984924 Not applicable 0
Limited Securities person
China Merchants
Bank Co. Ltd. –
Origin Xuyuan
three-year mixed Others 2.09% 20552267 -6459913 0 20552267
Not
applicable 0
securities
investment fund
JERRY YANG Overseas
LI natural person 1.50% 14735754 0 0 14735754 Pledged 14735754
Zhang Yong Domesticnatural person 1.24% 12175707 0 0 12175707 Not applicable 0
Kunming Huachen Domestic
Investment Co. non-state-
Ltd. owned legal
1.20% 11767995 -4233018 0 11767995 Not applicable 0
person
Huang Shuhua Domesticnatural person 0.73% 7150000 594155 0 7150000 Not applicable 0
Strategic investors or general The Company issued 85421412 A shares to specific investors in 2021 and these shares were listed on the
legal persons who have become Shenzhen Stock Exchange on June 20 2023. Of these Origin Asset Management Co. Ltd. subscribed 3416856
top 10 shareholders due to new shares in cash which were locked up for a period of 6 months and were released from restriction and listed for trading
share allotment on December 20 2023. The shareholdings of China Merchants Bank Co. Ltd - Origin Xuyuan three- year mixed securitiesinvestment fund are shown in the table above.Statement on related party PAUL XIAOMING LEE Sherry Lee Li Xiaohua and Jerry Yang Li are all the family members of the Company’s
relationship or concerted action actual controller Paul Xiaoming Lee and Heyi Investment represents the person acting in concert with the actual
between above-mentioned controller. The other shareholders are not known as to whether they have the related party relationships between them
shareholders or constitute the persons acting in concert.Explanation of
delegation/acceptance of voting Not applicable
1032025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
right and waiver of voting right
involving the above shareholders
Special explanation on the
existence of designated
repurchase account among the top Not applicable
10 shareholders
Top 10 shareholders holding unrestricted shares (excluding shares lent through securities lending and refinancing and locked-up shares held by senior
executives)
Name of shareholder Number of unrestricted shares held at the
Types of shares
end of the Reporting Period Type of shares Number ofshares
Yuxi Heyi Investment Co. Ltd. 119449535 Renminbi denominated common shares 119449535
SHERRY LEE 71298709 Renminbi denominated common shares 71298709
Hong Kong Securities Clearing
Company Limited 40984924 Renminbi denominated common shares 40984924
PAUL XIAOMING LEE 32110785 Renminbi denominated common shares 32110785
China Merchants Bank Co. Ltd. –
Origin Xuyuan three-year mixed 20552267 Renminbi denominated common shares 20552267
securities investment fund
Renminbi
Li Xiaohua 20187470 denominatedcommon 20187470
shares
Renminbi
JERRY YANG LI 14735754 denominated 14735754
common shares
Renminbi
Zhang Yong 12175707 denominated 12175707
common shares
Renminbi
Kunming Huachen Investment Co. 11767995 denominatedLtd. common 11767995
shares
Renminbi
Huang Shuhua 7150000 denominated 7150000
common shares
Statement on related party
relationships or concerted action
between top 10 shareholders PAUL XIAOMING LEE Sherry Lee Li Xiaohua and Jerry Yang Li are all the family members of the Company’s
holding unrestricted outstanding actual controller Paul Xiaoming Lee and Heyi Investment represents the person acting in concert with the actual
shares and between top 10 controller. The other shareholders are not known as to whether they have the related party relationships between them or
shareholders holding unrestricted constitute the persons acting in concert.outstanding shares and top 10
shareholders
Statement on top 10 ordinary
shareholders’ participation in Not applicable
securities margin trading business
Shares lent through securities lending and refinancing by shareholders holding more than 5% of shares the top 10 shareholders and the top 10
holding unrestricted outstanding shares: □Applicable□Not applicable
Change in the top 10 shareholders and the top 10 shareholders holding unrestricted outstanding shares from the previous period for shares lent or
returned through securities lending and refinancing: □Applicable□Not applicable
Did any of the top 10 ordinary shareholders or top 10 unrestricted ordinary shareholders of the Company conduct any transactions on agreed
repurchase during the Reporting Period
□Yes□No
The Company’s top 10 ordinary shareholders and the top 10 unrestricted ordinary shareholders did not conduct any transactions on agreed repurchase
during the Reporting Period.
2. Details about the controlling shareholder of the Company
Nature of controlling shareholder: The nature of the controlling entity is unclear
Type of controlling shareholder: Natural person
1042025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Acquisition of right of residence in other
Controlling shareholder’s name Nationality countries or regions
Paul Xiaoming Lee American Yes
Major occupation and position Paul Xiaoming Lee serves as the Chairman of the Company
Equities in other Chinese and overseas
listed companies under its control or in Not applicable
which it participated during the Reporting
Period
Change of controlling shareholder during the Reporting Period: □Applicable□Not applicable the controlling shareholder of the Company has not changed
during the Reporting Period
3. Details about the actual controller and persons acting in concert
Nature of actual controller: Domestic natural person overseas natural person other domestic organizations
Type of actual controller: Natural person
Relationship with actual Acquisition of right of residence
Name of actual controller controller Nationality in other countries or regions
Paul Xiaoming Lee Self American Yes
Yan Ma Self American Yes
Sherry Lee Self American Yes
Li Xiaohua Self Chinese Yes
Yanyang Hui Self American Yes
Jerry Yang Li Self American Yes
Act in concert (including
Yuxi Heyi Investment Co. Ltd. agreement kinship and common
control) Chinese No
Paul Xiaoming Lee serves as the Chairman of the Company. Li Xiaohua serves as the Vice Chairman and
Major occupation and position General Manager of the Company. YanMa YanyangHui Sherry Lee and JerryYang Li take no positions at
the Company.Control over Chinese and
overseas listed companies over
past 10 years None
Change of actual controller during the Reporting Period: □Applicable□Not applicable the actual controller of the Company has not changed during the
Reporting Period.A block diagram of the property rights and control relationship between the Company and the actual controller
12.16%13.08%8.22%7.26%1.50%
The actual controller controls the Company through trust or other asset management methods
□Applicable□Not applicable
1052025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. The accumulated number of pledged shares of the Company’s controlling shareholder or the
largest shareholder of the Company and its persons acting in concert accounted for 80% of the
Company’s shares held
□Applicable□Not applicable
5. Other corporate shareholders holding more than 10% of the shares
□Applicable □Not applicable
Name of legal person Legal Date of incorporation Registered capital Major operating activities or
shareholder representative/principal of management activities
organization
Yuxi Heyi Investment Co. Li Xiaohua November 10 2010 RMB30.00 million Conduct venture capital
Ltd. activities with free capital;
make project investment and
manage investment project;
investment management
investment consulting and
social and economic
consultation.
6. Details about restrictions on reduction of shareholdings of controlling shareholders actual
controllers restructuring parties and other entities making commitments
□Applicable□Not applicable
IV. Information on implementation of share repurchase during the Reporting Period
Progress in implementation of share repurchase
□Applicable□Not applicable
Progress of centralized bidding for reduction of shares repurchased
□Applicable□Not applicable
V. Details about Preferred Shares
□Applicable □Not applicable
During the Reporting Period there were no preferred shares in the Company.
1062025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 7 Details about Bonds
□Applicable □Not applicable
I. Corporate bonds
□Applicable□Not applicable during the Reporting Period there were no corporate bonds of the Company.II. Debentures
□Applicable □Not applicable during the Reporting Period there were no debentures of the Company.III. Debt financing instruments of non-financial enterprises
□Applicable □Not applicable during the Reporting Period there were no non-financial enterprise debt financing tool of the Company.IV. Convertible corporate bonds
□Applicable □Not applicable
1. Issuance of Convertible Bonds
Upon the approval of the file “Zheng Jian Xu Ke [2019] No. 2701” promulgated by China Securities Regulatory Commission the Company issued
16000000 convertible corporate bonds in a public offering on February 11 2020 with a par value of RMB 100 per bond an aggregate issue size of
RMB 1600000000 and a term of 6 years. On October 9 2025 “Energy Convertible Bonds” triggered the conditional redemption clause. On the same
day the Company convened the 47th meeting of the 5th Board of Directors which considered and approved the Proposal on Early Redemption of
“Energy Convertible Bonds”. The Board resolved to exercise the early redemption right in respect of “Energy Convertible Bonds”. October 27 2025
was the last trading day of “Energy Convertible Bonds”; October 30 2025 was the last conversion date; bond conversion was suspended starting
October 31 2025. October 31 2025 was the redemption date. The Company redeemed all 24163 outstanding unconverted bonds at a redemption price
of RMB 101.44 per bond (including accrued interest for the current period at a coupon rate of 2.00% before tax). The after tax redemption price shall
be subject to the price approved by China Securities Depository and Clearing Corporation Limited. The total redemption payment amounted to RMB
2451094.72 (excluding redemption handling fees). On November 10 2025 “Energy Convertible Bonds” (bond code: 128095) was delisted on the
Shenzhen Stock Exchange.
2. Guarantor and Top 10 Holders of Convertible Bonds During the Reporting Period
Name of Convertible Corporate Bonds Energy Convertible Bonds
Number of bondholders at the end of Reporting Period 0
Guarantor of the Company’s convertible bonds Not applicable
Material changes in profitability asset position and credit standing of the guarantor Not applicable
3. Changes in Convertible Bonds During the Reporting Period
□Applicable □ Not applicable
Unit: RMB
Name of Convertible Corporate Bonds Before This Change Increase or Decrease in This Change After This Change
Conversion Redemption Put
Energy Convertible Bonds 452910900.00 450494600.00 2416300.00 0.00 0.00
4. Cumulative Bond Conversion
□Applicable □ Not applicable
Ratio of the
number of Ratio of
Total shares
Name of Start and volume of Cumulative Amount of
amount of
Convertible end date of bond Total amount of Cumulative number of
converted to
the total issued shares not
shares not
yet
Corporate share issuance issuance (RMB) conversion shares shares of the yet converted to
Bonds conversion (number of amount (RMB) converted Company converted(shares) the totalbonds) before the start (RMB) amount of
of the issuance
conversion
Energy August 17
Convertible 2020 toFebruary 16000000 1600000000.00 1597580700.00 31705156 3.94% 0.00 0.00%Bonds 11 2026
5. Historical Adjustments and Revisions of Conversion Price
Name of Conversion
Convertible Price Adjusted
Latest Conversion
Conversion DisclosureCorporate Adjustment Date Description of Conversion Price Adjustment
Price as at the end
Price (RMB) of the ReportingBonds Date Period (RMB)
Energy
Convertible May 21 2020 64.49 May 152020 Implementation of 2019 annual profit distributionBonds
1072025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Name of Conversion
Convertible Price Adjusted
Latest Conversion
Corporate Adjustment Conversion
Disclosure
Date Description of Conversion Price Adjustment
Price as at the end
Bonds Date Price (RMB)
of the Reporting
Period (RMB)
Approved by the China Securities Regulatory Commission in its
Reply on Approving the Non-public Issuance of Shares by
Energy September 4 September Yunnan Energy New Materials Co. Ltd. (Zheng Jian Xu KeConvertible 2020 65.09 3 2020 [2020] No. 1476) the Company privately issued 69444444Bonds RMB ordinary shares (A-shares) to 22 specific investors by way
of private placement. The newly issued shares were listed on the
Shenzhen Stock Exchange on September 4 2020.Energy
Convertible April 302021 64.92
April 23 The Company implemented its 2020 annual profit distribution
Bonds 2021 plan.Energy
Convertible May 16 2022 64.62 May 10 The Company implemented its 2021 annual profit distribution
Bonds 2022 plan.Approved by the China Securities Regulatory Commission in its
Reply on Approving the Non-public Issuance of Shares by
Energy June 19 Yunnan Energy New Materials Co. Ltd. (Zheng Jian Xu KeConvertible June 20 2023 66.64 2023 [2022] No. 1343) the Company privately issued 85421412Bonds RMB ordinary shares (A-shares) to 21 specific investors by way
of private placement. The newly issued shares were listed on the
Shenzhen Stock Exchange on June 20 2023.Energy
Convertible August 21 66.46 August 15 The Company implemented its 2022 annual profit distribution
Bonds 2023 2023 plan.Energy
Convertible September 66.26 September The Company implemented its 2023 interim profit distribution
Bonds 21 2023 15 2023 plan.Energy
Convertible June 3 2024 64.73 May 28 The Company implemented its 2023 annual profit distribution
Bonds 2024 plan.Energy
Convertible November 6 64.92 November The Company completed the cancellation formalities for
Bonds 2024 6 2024 5905097 repurchased shares.On January 22 2025 the Company’s share triggered the
downward adjustment clause for the conversion price of
Energy “Energy Convertible Bonds”. Upon consideration and approvalFebruary 11 February at the 37th meeting of the 5thConvertible 32.00 Board of Directors the 3
rd
Bonds 2025 11 2025 Extraordinary General Meeting 2025 and the 38
th meeting of the
5th Board of Directors the conversion price of “EnergyConvertible Bonds” was adjusted downward to RMB 32.00 per
share.Energy The Company completed the repurchase and cancellation of a
Convertible March 24 32.01 March 22 total of 1771317 restricted shares under the 2022 Stock Option
Bonds 2025 2025 and Restricted Share Incentive Plan and the 2024 RestrictedShare Incentive Plan.
6. The Company’s Liabilities and Credit Changes at the End of the Reporting Period and Cash Arrangements for Debt
Repayment in Future Years
(1) The Company’s liabilities: relevant indicators such as the asset-liability ratio interest coverage multiple and loan repayment rate at the end of theReporting Period and year-on-year changes are detailed in the “VIII. Major Accounting data and financial indicators of the Company in the recent two yearsas at the end of the Reporting Period.”
(2) Changes in the Company’s credit standing: According to the Regular Follow-up Rating Report on Public Offering of Convertible Corporate Bonds by
Yunnan Energy New Material Co. Ltd. (No. Follow-up Rating on Corporate Bonds by Shanghai Brilliance (2020) 100053 Follow-up Rating on Corporate
Bonds by Shanghai Brilliance (2021) 100043 Follow-up Rating on Corporate Bonds by Shanghai Brilliance (2022) 100280) Follow-up Rating on
Corporate Bonds by Shanghai Brilliance (2023) 100005) Follow-up Rating on Corporate Bonds by Shanghai Brilliance (2024) 100211) and Follow-up
Rating on Corporate Bonds by Shanghai Brilliance (2025) 100099) issued by the credit rating agency - Shanghai Brilliance Credit Rating & Investors
Service Co Ltd. the credit rating of the Company on the whole was AA the credit rating of “Energy Convertible Bonds” was AA and the said bonds were
affirmed with a “stable” outlook. The above-mentioned follow-up rating results have not changed compared with the previous rating results. In view of the
full redemption of all “Energy Convertible Bonds” in accordance with relevant regulatory provisions and the relevant business rules of Shanghai Brilliance
Credit Rating & Investors Service Co Ltd. Shanghai Brilliance terminated the credit rating on Yunnan Energy New Material Co. Ltd. and its issued
“Energy Convertible Bonds” on November 8 2025. The aforesaid ratings will no longer be updated. The regular follow-up rating reports and the
Announcement of Shanghai Brilliance Credit Rating & Investors Service Co Ltd. on Terminating the Credit Rating of Yunnan Energy New Material Co.Ltd. as an Issuer and Its Issued “Energy Convertible Bonds” are available on www.cninfo.com.cn.
1082025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
V. Losses in the scope of consolidated statements during the Reporting Period exceeding 10% of the net
assets as at the end of the prior year
□Applicable □Not applicable
VI. Overdue repayment of interest-bearing debt other than bonds as at the end of the ReportingPeriod
□Applicable □Not applicable
VII. Violation of rules and regulations during the Reporting Period
□Yes □No
VIII. Major accounting data and financial indicators of the Company in the recent two years as at the
end of the Reporting Period
Unit: RMB’0000
Increase or decrease at the end of
Item At the end of the Reporting At the end of the prior year the current Reporting PeriodPeriod compared with the end of prior
year
Current ratio 1.0541 1.0132 4.04%
Asset-liability ratio 44.17% 44.48% -0.31%
Quick ratio 0.8466 0.6951 21.80%
Increase or decrease of the
The Reporting Period The corresponding period of Reporting Period compared withprior year the corresponding period of prior
year
Net profit after deduction of non-
recurring gains and losses 11080.24 -61329.8 118.07%
Debt-to-EBITDA ratio 13.55% 6.23% 7.32%
Interest coverage ratio 1.98 -1.27 255.91%
Cash interest coverage ratio 4.47 3.77 18.57%
EBITDA interest coverage ratio 7.41 3.37 119.88%
Loan repayment rate 100.00% 100.00% 0.00%
Interest coverage rate 100.00% 100.00% 0.00%
1092025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Section 8 Financial Report
I. Audit Report
Type of audit opinion Unqualified opinion
Signature date of audit report April 22 2026
Audit organization name Dahua CPAs (SGP)
Audit report number Da Hua Shen Zi [2026] No. 0011004247
Name of the certified public accountants (CPAs) Kang Wenjun Duan Liwei
Body of the audit report To
all shareholders of Yunnan Energy New Material (Group) Co. Ltd.:
I.Audit Opinions
We have audited the financial statements of Yunnan Energy New Material ( G r o u p ) Co. Ltd. (“Energy Technology”) including the
consolidated and the parent company’s balance sheets as of December 31 2025 the consolidated and parent company’s income statement the consolidated
and the parent company’s cash flow statement the consolidated and the parent company’s statement of changes in equity for 2025 and the relevant notes
to financial statements.In our opinion the enclosed financial statements were prepared in accordance with the Accounting Standards for Business Enterprises in all
material aspects and fairly reflected the Energy Technology’s consolidated and the parent company’s financial positions as of December 31 2025 as
well as the consolidated and the parent company’s operation results and cash flow for 2025.II. Basis for Audit Opinions
We carried out the audit work according to the Auditing Standards for Chinese CPA. Our responsibilities under the Standards are further
described under the section titled “responsibilities of CPA for auditing financial statements” in this audit report. We are independent from Energy
Technology and have complied with the independence requirements applicable to the audit of financial statements of public interest entities and
fulfilled the obligations in terms of professional ethics according to the Standards on Independence for Certified Public Accountants No. 1 –
Independence Requirements for Financial Statement Audit and Review Engagements and Code of Professional Ethics Conduct for
Chinese CPAs. We believe that the evidences we obtained are adequate and proper and lay a solid foundation for the audit opinion.III. Key Audit Matters
Key audit matters are those that we believe are of most significance in the audit of the financial statements of the current period based on professional
judgment. These matters are addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon and we do
not provide a separate opinion on these matters.We have identified the following matters as key audit matters to be communicated in the auditor’s report.
1. Revenue recognition
2. Provision for impairment of accounts receivable
3. Provision for inventory write-down
(I) Revenue recognition matters
1. Description of matters
Please refer to Note III-(35) “Revenue recognition principles and measurement methods” and Note V-45 “Operating revenue and operatingcosts” of the financial statements for the relevant information disclosure.The operating revenue of Energy Technology in 2025 amounted to RMB13632727100 which was the main source of its profit and affected
its key performance indicators. In addition according to the industry practice after signing the sales order with customer Energy Technology arranges
production based on customer’s requirements delivers it to customers pursuant to the agreed delivery method obtains the customer’s evidence on the
transfer of the ownership of goods and then recognizes the sales revenue. Since the time of revenue recognition is later than the product delivery and the
delivery time and delivery document recognition are all dependent on the customer there may be significant risk of misstatement if the sales revenue is
fully included in the appropriate accounting period. Therefore we recognize revenue as a key audit matter.
2. Audit Response
Our key audit procedures for revenue recognition include:
(1) Understand and evaluate the design of internal control of revenue recognition by the management and test the effectiveness of key control
implementation;
(2) Obtain a major business contract identify terms and conditions related to the transfer of commodity ownership and assess whether the
income recognition policy of Energy Technology is in line with the relevant provisions of the enterprise accounting standards;
(3) Perform analytical review procedures on revenue and gross profit based on the product types and customer conditions of Energy Technology
and determine the reasonableness of the changes in sales revenue and gross profit margin;
(4) Understand the background and basic information of the main customers identify whether they are related parties and confirm the accounts
receivable balance and sales amount of the main customers by confirmation letters;
(5) Select samples from the sales revenue ledger check the relevant documents such as contracts (orders) invoices delivery documents
pay attention to the delivery time and check the revenue recognition time point;
(6) Check the sales revenue recognized before and after the balance sheet date with supporting documents of sales revenue recognition
and implement the cut-off test and subsequent inspection procedures for revenue recognition;
(7) Assess whether the management’s disclosure of income statement is appropriate.
(II) Provision for bad debts of accounts receivable
1. Description of matters
Please refer to Note III-(11) “Financial instruments” (13)“Accounts receivable” and Note V-3 “Accounts receivable” of the financial statements for the
relevant information disclosure.On December 31 2025 the original book value of accounts receivable of Energy Technology was RMB7545033400 the bad debt provision was
RMB133496500 and the net value was RMB7411536900 accounting for 15.20% of the total assets at the end of the period.Based on the financial situation of the counterparty the management evaluates the guarantee obtained to the accounts receivable the aging of
the accounts receivable the credit rating and historical repayment record of the counterparty and with reference to the historical credit loss
1102025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
experience combined with the current situation and the forecast of the future economic situation the management considers to accrue bad debt for the
accounts receivable according to the expected credit loss in the whole duration. As the determination of the amount of bad debt provision requires the
management to use significant accounting estimates and judgments and accounts receivable is important to the financial statements therefore we
regard the bad debt provision of accounts receivable as a key audit matter.
2. Audit response
Our key audit procedures for the bad debt provision include:
(1) Understand and evaluate the management’s key internal control over the daily management and provision for accounts receivable
and carry out the corresponding walk-through test;
(2) For accounts receivable with significant single amount and credit impairment occurred after initial recognition the bases for the management’s
assessment of the expected future available cash flow shall be reviewed to analyze whether it is reasonable;
(3) For the accounts receivable of bad debt provision withdrawn by the management according to the combination of credit risk characteristics
combined with the credit risk characteristics the impact of migrat ion rate and aging analysis evaluate the rationality of the withdrawal of bad debt
provision by the management;
(4) Evaluated the adequacy of the management’s provision for bad debt in combination with the check of payment collection after the period;
(5) Assess whether the management’s disclosure of accounts receivable financial statements is appropriate.
(III) Provision for inventory impairment
1. Description of matters
Please refer to Note III-(16) “Inventories” and Note V-7 “Inventories” of the financial statements for the relevant information disclosure.As of December 31 2025 the carrying amount of inventory was RMB2900946544.50 with a provision for inventory impairment of
RMB621264583.33 resulting in a net carrying value of RMB2279681961.17 accounting for 4.68% of the total assets at the end of the period.The recognition of inventory impairment provision depends on the estimation of the net realizable value (NRV) of inventory which is determined
as the estimated selling price less estimated selling expenses and related taxes. In assessing NRV management must consider the actual condition
of inventory aging market value (or comparable market data) and reasonably estimate selling expenses and taxes required to realize the sale.These assessments involve significant management judgment and estimation. Therefore we identified the inventory impairment provision as a key
audit matter.
2. Audit Response
Our key audit procedures for the inventory impairment provision include:
(1) ) Evaluate and test the design and operating effectiveness of internal controls related to inventory impairment recognition;
(2) Perform physical inventory observation at the Company’s production bases to verify year-end inventory quantities; inspect inventory
conditions and examine aged inventory items;
(3) Obtain inventory aging reports and impairment calculation worksheets to verify compliance with accounting policies and analyzing
changes in prior-year provisions to assess adequacy;
(4) Recalculate NRV by comparing management’s estimated selling prices against actual transaction prices considering market
demand/supply and industry trends and benchmarking estimated selling expenses/taxes against historical data;
(5) Evaluate the appropriateness of financial statement disclosures about inventory.
IV. Other Information
Energy Technology’s management 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.If based on the work we have performed we conclude that there is a material misstatement of the other information we are required to report that
fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for Financial Statements
Energy Technology’s management is responsible for the preparation of the financial statements that give a fair view in accordance with CAS and
for designing implementing and maintaining such internal control as the management determines is necessary to enable the preparation of financial
statements that are free from material misstatement whether due to fraud or error.In preparing the financial statements the Energy Technology’s management is responsible for assessing the Energy Technology’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 Energy Technology or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing Energy Technology’s financial reporting process.VI. Responsibilities of CPA for Auditing 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 CAS 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 CAS 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 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. Based on the audit evidence obtained
conclude on whether a material uncertainty exists related to events or conditions that may cast significant doubt on Energy Technology’s ability to
continue as a going concern. If we conclude that a material uncertainty exists we are required by CAS to draw users’ attention in our auditor’s report to
the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However future events or conditions may cause Energy Technology to cease to continue as a
going concern.
5. Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent the
1112025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
underlying transactions and events in a manner that achieves fair presentation.
6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within Energy
Technology to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the Company audit
and remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant
audit findings including any noteworthy deficiencies in internal control that we identify during our audit.We have also provided a statement to those charged with governance regarding compliance with the provisions of Chinese Independence Standard
for Certified Public Accountants No. 1 — Independence Requirements for Financial Statement Audit and Review Engagements and communicate with them
all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance in the audit of the
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.II． Financial Statements
The unit of notes to financial statements is: RMB
1. Consolidated balance sheet
Prepared by: Yunnan Energy New Material (Group) Co. Ltd.December 31 2025
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 2909444845.80 2574141019.53
Settlement reserves
Loans to banks and other financial institutions
Held-for-trading financial assets
Derivative financial assets
Notes receivable 704206557.87 370653110.87
Accounts receivable 7411536913.76 6102048232.51
Receivable financing 1213767926.87 408092531.80
Prepayments 161187270.70 160423760.33
Premiums receivable
Reinsurance premium receivable
Reinsurance contract provision receivable
Other receivables 31987776.97 28221493.60
Including: Interest receivable
Dividends receivable 1347859.55
Financial assets held under resale agreements
Inventories 2279681961.17 2963026794.82
Including: Data resources
Contractual assets
Held-for-sales assets
Non-current assets due within one year 53345618.06 215940873.29
Other current assets 513955313.47 1001879072.11
Total current assets 15279114184.67 13824426888.86
Non-current assets:
Loans and advances to customers
Debt investment
Other debt investment
Long-term receivables 4457531.97
Long-term equity investments 14100157.24
Investments in other equity instruments 73000000.00 78000000.00
Other non-current financial assets
Investment properties 8439623.86 9051579.82
Fixed assets 28257962277.25 22928507627.21
Construction in progress 1530563029.64 5863245023.13
1122025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Productive biological assets
Oil and gas assets
Right-of-use assets 481651.57 1752245.09
Intangible assets 1129342622.28 1130776649.65
Including: Data resources
Development expenditures
Including: Data resources
Goodwill 519105553.36 519105553.36
Long-term unamortized expenses 3752.82 1280992.77
Deferred income tax assets 617230519.38 632495685.27
Other non-current assets 1313435841.33 2210995255.06
Total non-current assets 33468122560.70 33375210611.36
Total assets 48747236745.37 47199637500.22
Current liabilities:
Short-term borrowings 7913611937.50 8136897962.50
Borrowings from the central bank
Placements from banks and other financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 766213912.36 514689404.62
Accounts payable 2310176867.17 2009858521.55
Advances from customers
Contractual liabilities 49593104.39 45640854.47
Financial assets sold under repurchase agreements
Customer bank deposits and due to banks and other
financial institutions
Customer brokerage deposits
Securities underwriting brokerage deposits
Employee benefits payable 108107139.24 88966332.21
Taxes payable 146345287.75 116901868.52
Other payables 202661162.23 212623069.42
Including: Interest payable
Dividends payable 9778239.09 9778239.09
Fees and commissions payable
Reinsurance amounts payable
Held-for-sale liabilities
Non-current liabilities due within one year 2195475127.69 1781854472.71
Other current liabilities 802265358.18 736298107.85
Total current liabilities 14494449896.51 13643730593.85
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 4992559411.66 5070029111.30
Bonds payable 440251699.82
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables 384054475.96 172792328.77
Long-term payroll payable
Estimated liabilities
Deferred income 1560932525.15 1382766781.07
Deferred income tax liabilities 54516722.08 22264253.52
Other non-current liabilities 44800000.00 262804248.10
Total non-current liabilities 7036863134.85 7350908422.58
Total liabilities 21531313031.36 20994639016.43
1132025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Owners’ equity:
Share capital 982220137.00 971279156.00
Other equity instruments 50222020.25
Including: Preferred shares
Perpetual bonds
Capital reserve 15092205964.08 14596889137.16
Less: treasury stock 251416856.93 337939102.37
Other comprehensive income 212614276.27 -97799317.85
Special reserve
Surplus reserve 439767694.05 421806734.33
General risk provision
Undistributed profits 8991358307.73 8866770927.54
Total owners’ equity attributable to parent company 25466749522.20 24471229555.06
Minority interests 1749174191.81 1733768928.73
Total owners’ equity 27215923714.01 26204998483.79
Total liabilities and owners’ equity 48747236745.37 47199637500.22
Legal Representative: Paul Xiaoming Lee Chief Financial Officer: Li Xianglin Financial Manager: Deng Jinhuan
2. Balance sheet of the parent company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 8761775.59 82426833.46
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable 1860284.42
Receivable financing
Prepayments 200000.00
Other receivables 14383072876.64 13698147397.56
Including: Interest receivable
Dividends receivable 781539232.73 786539232.73
Inventories 3558054.82 3428717.82
Including: Data resources
Contractual assets
Held-for-sales assets
Non-current assets due within one year
Other current assets 252775000.00
Total current assets 14397252991.47 14036977948.84
Non-current assets:
Debt investment
Other debt investment
Long-term receivables
Long-term equity investments 4836309722.90 4971553501.90
Investments in other equity instruments 67000000.00 72000000.00
Other non-current financial assets
Investment properties
Fixed assets 36681844.65 15676027.90
Construction in progress 441037.74 38178294.59
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 20085014.13 35933713.42
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
1142025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Long-term unamortized expenses
Deferred income tax assets 10857706.78 9542089.43
Other non-current assets
Total non-current assets 4971375326.20 5142883627.24
Total assets 19368628317.67 19179861576.08
Current liabilities:
Short-term borrowings 134894981.89 103633690.22
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 15633070.00 11036560.48
Advances from customers
Contractual liabilities
Employee benefits payable 124583.62 113900.14
Taxes payable 20215162.89 14543612.91
Other payables 407497057.76 530573265.87
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one year 7403847.66
Other current liabilities
Total current liabilities 578364856.16 667304877.28
Non-current liabilities:
Long-term borrowings
Bonds payable 440251699.82
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 440251699.82
Total liabilities 578364856.16 1107556577.10
Owners’ equity:
Share capital 982220137.00 971279156.00
Other equity instruments 50222020.25
Including: Preferred shares
Perpetual bonds
Capital reserve 17145715715.77 16650858056.65
Less: treasury stock 251416856.93 337939102.37
Other comprehensive income -32250000.00 -28500000.00
Special reserve
Surplus reserve 412015183.06 394054223.34
Undistributed profits 533979282.61 372330645.11
Total owners’ equity 18790263461.51 18072304998.98
Total liabilities and owners’ equity 19368628317.67 19179861576.08
1152025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
3. Consolidated income statement
Unit: RMB
Item 2025 2024
I. Total operating revenue 13632727136.01 10163655793.70
Including: Operating revenue 13632727136.01 10163655793.70
Interest income
Earned premium
Fee and commission incomes
II. Total operating cost 13117079162.76 10857553669.18
Including: operating cost 11073555705.48 9038746050.98
Interest expense
Fee and commissions expenses
Cash surrender amount
Net payments for insurance claims
Net provision for insurance liability contract
reserves
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges 129801082.17 96272479.22
Selling expenses 147404516.19 145263407.26
Administrative expenses 756451722.60 600164938.14
R&D expenses 689619013.14 662843179.69
Financial expenses 320247123.18 314263613.89
Including: Interest expense 341745309.21 353090934.03
Interest income 45913869.63 61700514.83
Add: Other income 277632423.11 306039826.91
Investment income (loss is indicated with “-”) -8853490.56 1412808.29
Including: Income from investment in associates
and joint ventures -2147342.85 1347859.55
Derecognized financial assets measured
by amortized cost -20942756.34 -13173229.23
Exchange gain (loss is indicated with “-”)Net exposure hedging income (loss is indicated with “-”)
Income from changes in fair value (loss is indicated
with “-”)
Credit impairment losses (loss is indicated with “-”) -29813021.03 7366782.82
Asset impairment losses (loss is indicated with “-”) -298705532.41 -462221619.95
Income from disposal of assets (loss is indicated with
“-”)-1900407.492755562.94
III. Operating profit (loss is indicated with “-”) 454007944.87 -838544514.47
Add: Non-operating revenue 32688163.83 5473245.96
Less: Non-operating expenses 49148177.89 11730389.99
IV. Total profit (total loss is indicated with “-”) 437547930.81 -844801658.50
Less: Income tax expense 296644888.37 -184904499.33
V. Net profit (net loss is indicated with “-”) 140903042.44 -659897159.17
(I) Classified according to operating continuity
1. Net profit from continuing operations (net loss is
indicated with “-”) 140903042.44 -659897159.17
2. Net profit from discontinuing operations (net loss is
indicated with “-”)
(II) Classified according to attribution of the ownership
1. Net profit attributable to shareholders of the parent
company 142548339.91 -556317501.09
2. Profit or loss of minority interest -1645297.47 -103579658.08
VI. Other comprehensive income net of tax 326201950.68 -178927768.79
Other comprehensive income attributable to owners of
parent company net of tax 310413594.12 -187710715.88
(I) Other comprehensive income that cannot be
reclassified to profit or loss -3750000.00 -12750000.00
1162025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive income that cannot be
reclassified into profit or loss under the equity method
3. Changes in fair value of other equity instrument
investments -3750000.00 -12750000.00
4. Changes in fair value of the enterprise’s credit risk
5. Others
(II) Other comprehensive income that will be reclassified
subsequently to profit or loss 314163594.12 -174960715.88
1. Other comprehensive income that can be reclassified
into profit or loss under the equity method
2. Changes in fair value of other debt investments
3. Amount of the financial asset reclassified into other
comprehensive income
4. Provision for credit impairment of other debt
investment
5. Cash flow hedging reserve
6. Exchange differences from translation of statements
denominated in foreign currencies 314163594.12 -174960715.88
7. Others
Other comprehensive income attributable to minority
interests net of tax 15788356.56 8782947.09
VII. Total comprehensive income 467104993.12 -838824927.96
Total comprehensive income attributable to owners of
parent company 452961934.03 -744028216.97
Total comprehensive income attributable to minority
interests 14143059.09 -94796710.99
VIII. Earnings per share:
(I) Basic earnings per share 0.15 -0.57
(II) Diluted earnings per share 0.15 -0.87
Legal Representative: Paul Xiaoming Lee Chief Financial Officer:Li Xianglin Financial Manager: Deng Jinhuan
4. Income statement of parent company
Unit: RMB
Item 2025 2024
I. Operating revenue 3897523.84 4921856.56
Less: Operating cost 5389637.82 3817079.74
Taxes and surcharges 3523289.72 2641575.31
Selling expenses 4300.56
Administrative expenses 74884882.73 109229825.51
R&D expenses
Financial expenses -321562669.87 -350793346.89
Including: Interest expense 23216718.32 29724498.01
Interest income 344780908.01 380539036.00
Add: Other income 242494.29 653663.13
Investment income (loss is indicated with “-”) 34816119.69 47775000.00
Including: Income from investment in associates and
joint ventures
Derecognized financial assets measured by
amortized cost (loss is indicated with “-”)Net exposure hedging income (loss is indicated with “-”)
Income from changes in fair value (loss is indicated
with “-”)
Credit impairment losses (loss is indicated with “-”) -262469.40 90215.80
Asset impairment losses (loss is indicated with “-”)
Income from disposal of assets (loss is indicated with
“-”)-3504711.76-98230.98
II. Operating profit (loss is indicated with “-”) 272953816.26 288443070.28
Add: Non-operating revenue 0.33 950479.05
Less: Non-operating expenses 11753835.49 76623.88
III. Total profit (total loss is indicated with “-”) 261199981.10 289316925.45
Less: Income tax expense 81590383.88 61397612.07
IV. Net profit (net loss is indicated with “-”) 179609597.22 227919313.38
(I) Net profit from continuing operations (net loss is 179609597.22 227919313.38
1172025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
indicated with “-”)
(II) Net profit from discontinuing operations (net loss is
indicated with “-”)
V. Other comprehensive income net of tax -3750000.00 -12750000.00
(I) Other comprehensive income that cannot be
reclassified to profit or loss -3750000.00 -12750000.00
1. Changes arising from re-measurement of the defined
benefit plan
2. Other comprehensive income that cannot be
reclassified into profit or loss under the equity method
3. Changes in fair value of other equity instrument
investments -3750000.00 -12750000.00
4. Changes in fair value of the enterprise’s credit risk
5. Others
(II) Other comprehensive income that will be reclassified
subsequently to profit or loss
1. Other comprehensive income that can be reclassified
into profit or loss under the equity method
2. Changes in fair value of other debt investments
3. Amount of the financial asset reclassified into other
comprehensive income
4. Provision for credit impairment of other debt
investment
5. Cash flow hedging reserve
6. Exchange differences from translation of statements
denominated in foreign currencies
7. Others
VI. Total comprehensive income 175859597.22 215169313.38
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item 2025 2024
I. Cash flows from operating activities:
Cash received from the sale of goods or rendering of
services 9249369738.17 8385508715.46
Net increase in deposits from customers and placements
from corporations in the same industry
Net increase in borrowings from the central bank
Net increase in placements from other financial institutions
Cash received from premium of original insurance
conNtreatcctash received from reinsurance business
Net increase in deposits of the insured and investment
Cash received from interests fees and commissions
Net increase in placements from banks and other financial
institutions
Net increase in repurchasing
Net cash received from agency sale of securities
Receipts of tax refunds 434003373.44 325570298.59
Other cash receipts related to operating activities 273762537.74 533881000.81
Subtotal of cash inflows from operating activities 9957135649.35 9244960014.86
Cash payments for goods purchased and services received 5762908405.15 5239581120.39
Net increase in loans and advances
Net increase in deposits in the Central Bank and other
financial institutions
Cash paid for claim settlements on original insurance
conNtreatcitncrease in placements to banks and other financial
institutions
Cash paid for interests fees and commissions
Cash paid for policy dividends
Cash paid to and on behalf of employees 1637732344.62 1458936664.56
Payments of all types of taxes 772815815.17 730297460.12
Other cash payments relating to operating activities 640041276.44 657895714.69
Subtotal of cash outflows due to operating activities 8813497841.38 8086710959.76
1182025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Net cash flows from operating activities 1143637807.97 1158249055.10
II. Cash flows from investment activities:
Cash received from disposal of investments 685000000.00 1271927500.00
Cash received from procuring investment income 31526844.21 69705379.85
Net amount of cash received from disposal of fixed assets
intangible assets and other long-term assets 20392170.81 37456266.24
Net cash received from disposals of subsidiaries and other
business units 1799150.00
Other cash received relating to investment activities
Subtotal of cash inflows from investment activities 738718165.02 1379089146.09
Cash paid for acquisition of fixed assets intangible assets
and other long-term assets 1734935342.20 2858791026.20
Cash paid for acquisition of investments 311970269.41 1107449569.44
Net increase in pledge loans
Net cash payments for acquisitions of subsidiaries and other
business units
Other cash paid relating to investment activities 44925000.00 45163817.42
Subtotal of cash outflows due to investment activities 2091830611.61 4011404413.06
Net cash flows from investment activities -1353112446.59 -2632315266.97
III. Cash flows from financing activities:
Cash received from absorbing investment 101128824.21 200628666.09
Including: Cash received from subsidiaries’ absorbing
minority shareholder investment 1100000.00 91912750.86
Cash received from borrowings 12321623205.87 13731686695.68
Other cash received relating to financing activities 440259811.11 160000000.00
Subtotal of cash inflows from financing activities 12863011841.19 14092315361.77
Cash paid for debt repayment 11122360329.71 10856843142.85
Cash paid for distributing dividends and profits or paying 334648985.85 1911093566.49
interests
Including: Dividends and profits paid to minority
shareholders by subsidiaries
Cash payments relating to other financing activities 673672797.11 910705730.64
Subtotal of cash outflows from financing activities 12130682112.67 13678642439.98
Net cash flows from financing activities 732329728.52 413672921.79
IV. Effect of changes in exchange rate on cash and cash
equivalents -
18167657.644819771.37
V. Net increase in cash and cash equivalents 504687432.26 -1055573518.71
Add: Opening balance of cash and cash equivalents 1733460483.14 2789034001.85
VI. Closing balance of cash and cash equivalents 2238147915.40 1733460483.14
6. Cash flow statement of parent company
Unit: RMB
Item 2025 2024
I. Cash flows from operating activities:
Cash received from the sale of goods or rendering of
services 6685739.89 20018970.93
Receipts of tax refunds 127596.89
Other cash receipts related to operating activities 9717429.33 57140549.04
Subtotal of cash inflows from operating activities 16403169.22 77287116.86
Cash payments for goods purchased and services received 1617095.57 15328134.69
Cash paid to and on behalf of employees 2696392.58 4642314.82
Payments of all types of taxes 98593394.78 96043205.00
Other cash activities 40493405.73 160138345.40
Subtotal of cash outflows due to operating activities 143400288.66 276151999.91
Net cash flows from operating activities -126997119.44 -198864883.05
II. Cash flows from investment activities:
Cash received from disposal of investments 250000000.00
Cash received from procuring investment income 10214053.13 1269500767.27
Net amount of cash received from disposal of fixed assets
intangible assets and other long-term assets 66654311.43 34862.09
Net cash received from disposals of subsidiaries and other 11928284.33
1192025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
business units
Other cash activities 201233143.28 729915831.56
Subtotal activities 540029792.17 1999451460.92
Cash paid for acquisition of fixed assets intangible assets
and other long-term assets 41319945.90 1626660.66
Cash paid for acquisition of investments 31247500.00 299235709.57
Net cash payments for acquisitions of subsidiaries and other
business units
Other cash paid relating to investment activities 568310055.44 1186964114.48
Subtotal of cash outflows due to investment activities 640877501.34 1487826484.71
Net cash flows from investment activities -100847709.17 511624976.21
III. Cash flows from financing activities:
Cash received from absorbing investment 100028824.21 140029540.01
Cash received from borrowings 134800000.00 103500000.00
Other cash activities 273759811.11 196000000.00
Subtotal of cash inflows from financing activities 508588635.32 439529540.01
Cash paid for debt repayment 105916300.00 59500000.00
Cash paid for distributing dividends and profits or paying
interests 11046701.52 1509256418.75
Cash payments relating to other financing activities 232743652.49 488785366.91
Subtotal of cash outflows from financing activities 349706654.01 2057541785.66
Net cash flows from financing activities 158881981.31 -1618012245.65
IV. Effect of changes in exchange rate on cash and cash
equivalents -195.19
V. Net increase in cash and cash equivalents -68963042.49 -1305252152.49
Add: Opening balance of cash and cash equivalents 76622554.85 1381874707.34
VI. Closing balance of cash and cash equivalents 7659512.36 76622554.85
1202025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
7. Consolidated statement of changes in owners’ equity
Amount of current period
Unit: RMB
2025
Minority Total owners’
Owners’ equity attributable to parent company
interests equity
Item
Other equity instruments Other General
Share Capital Less: treasury Special Surplus Undistributed
Preferred Perpetual comprehensive risk Others Subtotal
capital Others reserve stock reserve reserve profits
stock bonds income provision
I. Closing balance of the 971279156.0 14596889137 24471229 1733768928. 26204998483.7
50222020.25337939102.37-97799317.85421806734.338866770927.54
previous year 0 .16 555.06 73 9
Add: Effects of
changes in accounting
policies
Effects of
correction of prior year
errors
Others
II. Opening balance of 971279156.0 14596889137 24471229 1733768928. 26204998483.7
50222020.25337939102.37-97799317.85421806734.338866770927.54
the current year 0 .16 555.06 73 9
III. Increase/decrease for
995519967
the period (decrease is 10940981.00 -50222020.25 495316826.92 -86522245.44 310413594.12 17960959.72 124587380.19 15405263.08 1010925230.22.14
indicated with “-”)
(I) Total
452961934
comprehensive 310413594.12 142548339.91 14143059.09 467104993.12.03
income
(II) Contribution and
542558033
withdrawal of capital by 10940981.00 -50222020.25 495316826.92 -86522245.44 1262203.99 543820237.10.11
owners
1. Common shares 100157698
100157698.101137748.15101295446.25
invested by owner .10
2. Capital invested by
446557149
other equity instrument 14072680.00 -49954083.51 482438552.86 446557149.35.35
holders
3. Amount of share -
payment credited to -3131699.00 -87279424.04 -86522245.44 3888877.6 124455.84 -3764421.76
owners’ equity 0
1212025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
4. Others -267936.74 -267936.74 -267936.74
(III)
Profit 17960959.72 -17960959.72
distributi
on
1. Withdrawal 17960959.72 -
of surplus 17960959.72
2re.sPerrovveision
for general
3. Distribution
to owners (or
shareholders)
4. Others
(IV) Internal
carry- forward
of owners’
1. Conversion of
capital reserve
into capital (or
2. Conversion of
surplus reserve
into capital (or
3. Making good
of loss with
surplus reserve
4. Carry-forward
of changes in the
defined benefit
plan for retained
5. Carry-forward
of other
comprehensive
income for
retained
6. Others
(V) Special
r1e.sAermveount
withdrawn in
the period
(2V. AI)m. Ootuhnetrs
IV. Closing 982220137.00 15092205964.08 251416856.93 212614276.27 439767694.05 8991358307.73 25466749522.20 1749174191.81 27215923714.01
balance for the
1222025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Amount of previous period
Unit: RMB
2024
Owners’ equity attributable to parent company
Item Other equity instruments
Less: Other Spe G Undistribut
Share capital Preferred Perpetual Others
stock bonds
I. Closing balance
of the previous year 977754217.00 50242778.3 15070954107.72 6 607261671.95 89911398.03
399014802.910945879862.026926495494.21755739643.4828682235137.79942
Add: Effects of
changes in
accounting policies
Effects of
correction of prior
year errors
Others
II. Opening balance
of the current year 977754217.00 50242778.3 15070954107.7 607261671.95 89911398.03 399014802.9 10945879862.0 26926495494.22 6 9 9 4 1755739643.48
28682235137.7
2
III.Increase/decrease
for the period -6475061.00 -20758.07 -474064970.60
-----
269322569.58187710715.8822791931.342079108934.552455265939.18-21970714.752477236653.93
(decrease is
indicated with “-”)
(I) Total
comprehensive -
187710715.88 -556317501.09 -744028216.97 -94796710.99 -838824927.96income
(II) Contribution
and withdrawal of -6475061.00 -20758.07 -474064970.60
-
269322569.58-211238220.0972825996.24-138412223.85
capital by owners
1. Common shares 3584059.30 3584059.30 74459563.62 78043622.92
invested by owner
2. Capital invested
by other equity
instrument holders 2791.00 -20758.07 202223.94 184256.87 184256.87
1232025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
3. Amount of share
payment credited to
owners’ equity -572755.00 -278551196.83 -269322569.58 -9801382.25 -1633567.38 -11434949.63
4. Others -5905097.00 -199300057.01 -205205154.01 -205205154.01
(III) Profit - - -
distribution 22791931.34 1522791433.46 1499999502.12 1499999502.12
1. Withdrawal of 22791931.34 -22791931.34 0.00
surplus reserve
2. Provision for
general risk
3. Distribution to
owners (or - - -
shareholders) 1499999502.12 1499999502.12 1499999502.12
4. Others
0.00
(IV) Internal carry-
forward of owners’
equity
1. Conversion of
capital reserve into
capital (or shares)
2. Conversion of
surplus reserve into
capital (or shares)
3. Making good of
loss with surplus
reserve
4. Carry-forward of
changes in the defined
benefit plan for
retained earnings
1242025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
5. Carry-forward of
other comprehensive
income for retained
earnings
6. Others
(V) Special reserve
1. Amount
withdrawn in the
period
2. Amount utilized in
the period
(VI) Others
IV. Closing balance
for the period
971279156.0050222020.214596889137.156337939102.37-97799317.85421806734.338866770927.54
24471229555.01733768928.26204998483.7
6739
1252025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
8. Statement of changes in owners’ equity of parent company
Amount of current period
Unit: RMB
Item 2025
Share Other equity instruments Capital reserve Less: treasury stock Other Special Surplus reserve Undistributed profits Others Total owners’ equity
capital Preferred Perpetual Others comprehen reserve
stock bonds sive
income
I. Closing balance of
971279156.0050222020.2516650858056.65337939102.37-28500000.00394054223.34372330645.1118072304998.98
the previous year
Add: Effects of
changes in accounting
policies
Effects of correction of
prior year errors
Others
II. Opening balance of
971279156.0050222020.2516650858056.65337939102.37-28500000.00394054223.34372330645.1118072304998.98
the current year
III. Increase/decrease
for the period
10940981.00-50222020.25494857659.12-86522245.44-3750000.0017960959.72161648637.50717958462.53
(decrease is indicated
with “-”)
(I) Total
-3750000.00179609597.22175859597.22
comprehensive income
(II) Contribution and
withdrawal of capital 10940981.00 -50222020.25 494857659.12 -86522245.44 542098865.31
by owners
1. Common shares
100157698.10100157698.10
invested by owner
2. Capital invested by
other equity 14072680.00 -49954083.51 482438552.86 446557149.35
instrument holders
3. Amount of share
payment credited to -3131699.00 -87738591.84 -86522245.44 -4348045.40
owners’ equity
4. Others -267936.74 -267936.74
(III) Profit distribution 17960959.72 -17960959.72
1. Withdrawal of
17960959.72-17960959.72
surplus reserve
2. Distribution to
owners (or
shareholders)
3. Others
(IV) Internal carry-
forward of owners’
equity
1262025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
1. Conversion of
capital reserve into
capital (or shares)
2. Conversion of
surplus reserve into
capital (or shares)
3. Making good of loss
with surplus reserve
4. Carry-forward of
changes in the
defined benefit plan
for retained earnings
5. Carry-forward of
other comprehensive
income for retained
earnings
6. Others
(V) Special reserve
1. Amount withdrawn
in the period
2. Amount utilized in
the period
(VI) Others
IV. Closing balance
for the period 982220137.00 17145715715.77 251416856.93 -32250000.00 412015183.06 533979282.61 18790263461.51
Amount of previous period
Unit: RMB
2024
Other equity instruments
Item
Capital reserve Less: treasury stock Other comprehensiv Special reserve Surplus reserve Undistributed profits Others Total owners’ equityShare capital Preferred stock Perpetual bonds Others
e income
I. Closing balance 977754217. 50242778.3
00217125627483.84
607261671.9
5 -15750000.00 371262292.00 1667202765.19 19569077864.40of the previous year
Add: Effects of
changes in
accounting policies
Effects of
correction of prior year
errors
Others
II. Opening balance of
the current year 977754217.00 50242778.32 17125627483.84 607261671.95 -15750000.00 371262292.00 1667202765.19 19569077864.40
III. Increase/decrease
for the period
(decrease is indicated -6475061.00 -20758.07 -474769427.19 -269322569.58 -12750000.00 22791931.34 -1294872120.08 -1496772865.42
with “-”)
(I) Total -12750000.00 227919313.38 215169313.38
1272025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
comprehensive income
(II) Contribution and
withdrawal of capital -6475061.00 -20758.07 -474769427.19 -269322569.58 -211942676.68
by owners
1. Common shares
invested by owner
2. Capital invested by
other equity 2791.00 -20758.07 202223.94 184256.87
instrument holders
3. Amount of
share payment
credited to -572755.00 -280879494.58 -269322569.58 -12129680.00
owners’ equity
4. Others -5905097.00 -194092156.55 -199997253.55
22791931.34-1522791433.46-1499999502.12
(III) Profit distribution
1. Withdrawal of 22791931.34 -22791931.34
surplus reserve
2. Distribution to
owners (or -1499999502.12 -1499999502.12
shareholders)
3. Others
(IV) Internal carry-
forward of owners’
equity
1. Conversion of
capital reserve into
capital (or shares)
2. Conversion of
surplus reserve into
capital (or shares)
3. Making good of loss
with surplus reserve
4. Carry-forward of
changes in the defined
benefit plan for
retained earnings
5. Carry-forward of
other comprehensive
income for retained
earnings
6. Others
(V) Special reserve
1. Amount withdrawn
in the period
2. Amount utilized in
the period
(VI) Others
IV. Closing balance 971279156.00 50222020.25 16650858056.65 337939102.37 -28500000.00 394054223.34 372330645.11 18072304998.98
for the period
1282025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
III.Corporate Information
1. Registered Place Organizational Form and Headquarters Address of the Company
Yunnan Energy New Material (Group) Co. Ltd. (hereinafter referred to as the “Company” or “our Company”) was formerly
Yunnan Yuxi Innovation Color Printing Co. Ltd. With the approval of Department of Commerce of Yunnan Province document YSZ
[2011] No.50 the shareholders of the Company signed the sponsor agreement on March 28 2011 unanimously agreed to change
the Company as a whole into a company limited by shares and obtained the business license of enterprise legal
person No.530400400000009 issued by Yunnan Provincial Administration for Industry and Commerce which is now changed to the
unified social credit code 91530000727317703K. In accordance with the Approval of Initial Public Offering of Shares of Yunnan
Innovative New Materials Co. Ltd. (Zheng Jian Xu Ke [2016] No. 1886) issued by China Securities Regulatory Commission the
Company issued RMB-denominated ordinary shares (A shares) of 33480000 to the public. It was priced and issued to the public
investors on September 6 2016 with a par value of RMB1.00 per share a subscription price of RMB23.41 per share and the actual net
amount of raised funds is RMB747767000.00. The shares of the Company were listed on Shenzhen Stock Exchange on September 14
2016.
After several changes and capital increases the Company’s current total registered capital is RMB982220137.00. The
headquarters is located at No.125 Fuxian Road High-tech Zone Yuxi City Yunnan Province. The Company’s legal representative is
PAUL XIAOMING LEE. The actual controller of the Company is the Li Xiaoming family.On January 6 2026 the Company’s name was changed from “Yunnan Energy New Material Co. Ltd.” to “Yunnan Energy NewMaterial (Group) Co. Ltd.”.
2. Business Nature and Principal Business Activities of the Company
The Company belongs to the rubber and plastic products industry with its main products and services divided into three categories:
(1) film products mainly including lithium-ion separator BOPP film and specialty paper. Lithium-ion separator products include base
film and coating film and BOPP film products include smoke film and flat film; (2) packaging and printing products mainly including
cigarette label and aseptic packaging; (3) paper products packaging mainly including specialty paper products holographic anti-
counterfeiting electrified aluminum transfer film and other products. Specialty paper products include laser transfer anti-
counterfeiting paper direct plating paper and coated paper.
3. Scope of Consolidated Financial Statements
A total of 40 subsidiaries of the Company is included in the consolidation scope for the current period see Note X –Interests in
Other Entities for details. Compared with the previous period 2 entities have been added and 1 entity has been removed from the scope
of consolidated financial statements in the current period. For specific information on entities with changes in the consolidation scope
see Note IX –Changes in the Consolidation Scope.
4. Approval Date of Financial Statements
These financial statements were approved for issuance by the Company’s Board of Directors on April 22 2026.IV. Basis for Preparation of Financial Statements
1. Basis for preparation
The Company recognizes and measures items based on actual transactions and events in accordance with the Enterprise
Accounting Standards – Basic Standard specific enterprise accounting standards application guides to enterprise accounting
standards interpretations of enterprise accounting standards and other relevant provisions issued by the Ministry of Finance
(hereinafter collectively referred to as the “enterprise accounting standards”). On this basis the financial statements have
been prepared in accordance with the provisions of the Compilation Rule for Information Disclosure by Companies Offering
Securities to the Public No. 15 - General Provisions on Financial Reports (2023 revised) issued by the China Securities
Regulatory Commission.
2. Going concern basis
The Company has evaluated the ability to continue as a going concern for 12 months from the end of the Reporting Period
and has not identified any events or circumstances that would impact its ability to continue as a going concern. Therefore
these financial statements are prepared on the going concern basis.
3. Bookkeeping Basis and Measurement Principle
The Company adopts the accrual basis for accounting. Except for certain financial instruments measured at fair value the
financial statements adopt historical cost as the measurement basis. Where any asset is impaired corresponding impairment
provisions shall be made in accordance with relevant provisions.V. Significant Accounting Policies and Accounting Estimates
1. Statement of compliance with the accounting standards for business enterprises
The financial statements are in compliance with the requirements of accounting standards for business enterprises and truly
and completely reflect the financial status operating results cash flow and other relevant information of the Company during
the Reporting Period.
2. Accounting period
The accounting year starts on January 1 and ends on December 31.
3. Operating cycle
Operating cycle refers to the period from the purchase of assets for processing to the realization of cash or cash equivalents.The Company takes 12 months as its operating cycle and uses this as the criterion for classifying assets and liabilities as
current or non-current.
4. Functional currency
1292025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Renminbi (RMB) is adopted as the functional currency.Overseas subsidiaries take the currency in the main economic environment in which they operate as the functional currency. When
preparing the financial statements the amounts are translated into Renminbi (RMB).
5. Methods for determination and basis for selection of the materiality criteria
□Applicable □Not applicable
Items Materiality Criteria
Significant receivables for allowance for bad debts provided on
individual basis ≥RMB1 million
Significant receivables written off ≥RMB1 million
Significant other receivables written off ≥RMB1 million
Significant construction in progress Top 10 engineering projects in book value of construction in progress
Significant payables ageing over 1 year ≥RMB5 million
Significant other payables ageing over 1 year or overdue ≥RMB5 million
Significant other gains ≥RMB5 million
6. Accounting treatments for business combination under common control and not under common control
(1) Where the terms conditions and economic effects of the transactions in the process of achieving a business combination in stages meet one or
more of the following circumstances the multiple transactions shall be accounted for as a package transaction:
* these transactions are entered into simultaneously or with consideration of their mutual effects;
* these transactions can achieve a complete commercial result only when considered as a whole;
* the occurrence of one transaction depends on the occurrence of at least one other transaction;
* one transaction is not economical when considered separately but is economical when considered together with other transactions.
(2) Business combination 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 combination and that control is not transitory.The assets and liabilities acquired by the Company in a business combination are measured at the carrying amounts of the assets and liabilities of
the acquired company on the combination date including goodwill arising from the acquisition of the acquired company by the ultimate controlling
party in the consolidated financial statements of the ultimate controlling party. Any difference between the carrying amount of the net assets acquired
in the combination and the carrying amount of the combination consideration paid or the total nominal value of the shares issued is adjusted against
the share premium in capital reserve. If the share premium in capital reserve is insufficient to offset the difference retained earnings are adjusted.If contingent consideration exists and a provision or asset needs to be recognised the difference between the amount of such provision or asset
and the subsequent settlement amount of the contingent consideration is adjusted against the capital reserve (capital premium or share premium). If the
capital reserve is insufficient retained earnings are adjusted.In case multiple transactions for the business combination are considered as a package transaction these transactions shall be regarded as a
transaction for the acquisition of control for accounting treatment; if they are not considered as a package transaction the difference between the
initial investment cost of long-term equity investment at the date when the control is acquired and the sum of carrying amount of the long-term equity
investment before the combination and the carrying amount of the consideration paid at the combination date for further acquisition of shares shall be
used to adjust capital reserve; if the capital reserve is insufficient for offset the retained earnings shall be adjusted. The equity investment held prior to
the combination date and recognized as other comprehensive income due to calculation by equity method or calculation as per recognition and
measurement criteria of financial instruments will not be subject to accounting treatment temporarily and will be subject to accounting treatment on
the same basis as that adopted by the investee for direct disposal of related assets or liabilities at the time of disposal. If it is recognized as other
changes in owner’s equity (excluding net profit/ loss other comprehensive income and profit distribution) in the net assets of the investee due to
calculation by equity method it will not be subject to accounting treatment temporarily and will be transferred to current profits and losses at the time
of disposal.
(3) Business combination not under common control
A business combination involving enterprises not under common control refers to a business combination in which the enterprises participating in
the combination are not ultimately controlled by the same party or the same group of parties both before and after the combination.The Company measures the assets paid and liabilities incurred or assumed as consideration for a business combination at fair value on the
purchase date and the difference between the fair value and the carrying amount is recognized in profit or loss for the current period.The Company recognizes as goodwill the excess of the combination cost over the share of the fair value of the identifiable net assets of the
acquiree obtained in the combination. Where the combination cost is less than the share of the fair value of the identifiable net assets of the acquiree
obtained in the combination the measurement of the fair value of the identifiable assets liabilities and contingent liabilities of the acquiree obtained
and the combination cost is first reviewed. If after the review the combination cost is still less than the share of the fair value of the identifiable net
assets of the acquiree obtained in the combination the difference is recognized in profit or loss for the current period.For a business combination not under common control achieved in stages through multiple exchange transactions if it is a package transaction
each transaction is accounted for as a single transaction to obtain control. If it is not a package transaction where the equity investment held before the
combination date was accounted for using the equity method the sum of the carrying amount of the equity investment in the acquiree held before the
purchase date and the cost of the additional investment on the purchase date is taken as the initial investment cost of such investment. Other
comprehensive income recognized in respect of the equity investment held before the purchase date as a result of applying the equity method is
accounted for on the same basis as that adopted by the investee for the direct disposal of the relevant assets or liabilities when such investment is
disposed of. Where the equity investment held before the combination date was accounted for in accordance with the standards on recognition and
measurement of financial instruments the sum of the fair value of such equity investment on the combination date and the cost of the additional
1302025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
investment is taken as the initial investment cost on the combination date. The difference between the fair value and the carrying amount of the
originally held equity interest and the accumulated changes in fair value previously included in other comprehensive income shall all be transferred to
investment income for the current period of the combination date.
(4) Relevant expenses incurred for a combination
The audit legal services valuation and consulting and other intermediary fees as well as other directly related expenses incurred for a business
combination are recognized in profit or loss for the current period when incurred. Transaction costs of equity securities issued for a business
combination that are directly attributable to equity transactions are deducted from equity.
7. Criteria for judgement of control and methods for preparation of the consolidated financial statements
(1) Criteria for judgement of control
Control refers to the investor’s power over the investee the variable returns it can obtain through participation in the investee’s relevant activities
and the ability to use its power over the investee to affect the amount of returns.The Company makes a judgment on whether to control the investee based on comprehensive consideration of all relevant facts and circumstances.The Company will reassess once the relevant facts and circumstances change which leads to changes in the relevant elements involved in the
definition of control. The relevant facts and circumstances mainly include:
* Purpose of establishment of the investee.* Relevant activities of the investee and how to make decisions on relevant activities.* Whether the rights enjoyed by the investor currently enable it to dominate the relevant activities of the investee.* Whether the investor enjoys variable returns by participating in the investee’s activities.* Whether the investor has the ability to use its power over the investee to affect the amount of its return.* Relationship of the investor with other parties.
(2) Consolidation scope
The consolidation scope of the Company’s consolidated financial statements is determined on the basis of control and all subsidiaries (including
individual entity controlled by the Company) are included in the consolidated financial statements.
(3) Consolidation procedure
The Company prepares consolidated financial statements based on the financial statements of itself and its subsidiaries and other relevant
information. While preparing consolidated financial statements the Company treats the entire enterprise group as an accounting entity and in
accordance with the requirements for confirmation measurement and presentation of relevant enterprise accounting standards and based on unified
accounting policies reflects the overall financial status operating results and cash flow of the enterprise group.All the subsidiaries within the consolidation scope of consolidated financial statements shall adopt the same accounting policies and accounting
periods as those of the Company. If the accounting policies or accounting periods of a subsidiary are different from those of the Company the
consolidated financial statements of the subsidiary upon preparation of consolidated financial statements shall be adjusted according to the
accounting policies and accounting periods of the Company.When consolidating financial statements the impact of internal transactions between the Company and subsidiaries and between subsidiaries on the
consolidated balance sheet consolidated income statement consolidated cash flow statement and consolidated statement of changes in shareholders’
equity shall be offset. If the recognition of the same transaction from the perspective of the consolidated financial statements of the enterprise group is
different from that of the Company or the subsidiary as the accounting subject the transaction shall be adjusted from the perspective of the enterprise
group.The owner’s equity current net profit or loss and share attributable to minority shareholders in current comprehensive income of subsidiaries shall be
separately presented under the owner’s equity in the consolidated balance sheet net profit and total comprehensive income in the consolidated income
statement. The balance resulting from the excess of the minority shareholders’ share of the current loss of a subsidiary over the minority’s share of the
subsidiary’s owners’ equity at the beginning of the period is eliminated to reduce the minority equity.For subsidiaries acquired from business combination under the same control adjustments shall be made to the financial statements based on the book
value of its assets and liabilities (including the goodwill formed by the acquisition of the subsidiary by the ultimate controller) in the financial
statements of the ultimate controller.For subsidiaries acquired from business combinations not under common control the financial statements will be adjusted on the basis of the fair
value of the identifiable net assets on the purchase date.* Increase in subsidiary or business
During the Reporting Period if there is a new subsidiary or business due to the business combination under the same control the opening balances of
the consolidated balance sheet shall be adjusted; the revenue expenses and profits of the subsidiary or business from the beginning of the period to
the end of the Reporting Period shall be included in the consolidated income statement; the cash flows of the subsidiary or business from the
beginning of the period to the end of the Reporting Period shall be included in the consolidated cash flow statement. Also adjust the relevant items of
the comparative financial statements treating the combined reporting entity as if it has existed since the point when the ultimate controlling party
started controlling.Where the Company can exercise control over the investee under common control due to additional investment or other reasons adjustments shall be
made as if all parties involved in the combination exist at the beginning of the control by the ultimate controller. For equity investments held by the
parent company before the acquisition of control all relevant profits and losses other comprehensive income and other changes in net assets that have
been recognized from the date the parent and the subsidiary were under common control until the consolidation date shall be adjusted in the opening
retained earnings for the comparative period or profits and losses for the current period.During the Reporting Period if there is a new subsidiary or business due to business combination not under the same control the opening balances of
the consolidated balance sheet will not be adjusted. The revenue expenses and profits of the subsidiary or business from the purchase date to the end
of the Reporting Period shall be included in the consolidated income statement. The cash flow of the subsidiaries or business from the purchase date to
the end of the Reporting Period shall be included in the consolidated cash flow statement.Where the Company can exercise control over the investee not under common control due to additional investment or other reasons the Company
shall re-measure the equity of the acquiree held before the purchase date at the fair value of the equity on the purchase date and the difference
between the fair value and the book value shall be included in the current investment income. If the equity of the acquiree held before the purchase
date involves the other comprehensive income under the accounting by equity method and changes in owners’ equity other than net profit or loss
other comprehensive income and profit distribution other comprehensive income and other changes in owners’ equity shall be transferred to the
investment income of the period to which the purchase date belongs except for other comprehensive income arising from the investee’s re-
measurement of changes in net liabilities or net assets under defined benefit plans.
1312025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
* Disposal of subsidiary or business
A. General method of disposal
During the Reporting Period if the Company disposes of subsidiaries or business the revenues expenses and profits of such subsidiaries or business
shall be included in the consolidated income statement from the beginning of the period to the disposal date. The cash flow from the beginning period
of the subsidiaries or business to the disposal date shall be included in the consolidated cash flow statement.When the Company loses the right of control over the investee due to disposal of part of the equity investments or other reasons the remaining equity
after disposal shall be remeasured by the Company at its fair value on the date of loss of control. The difference between the disposal consideration
and the fair value of the remaining equity minus the net asset portion and goodwill from the original subsidiary shall be recognized as investment
income in the period of losing control. Other comprehensive incomes related to the original equity investments in subsidiaries or changes in owner’s
equity other than net profit or loss other comprehensive income and profit distribution are transferred to the current investment income at loss of
control except for other comprehensive income arising from the investee’s re-measurement of changes in net liabilities or net assets under defined
benefit plans
B. Dispose of subsidiary step by step
Where the equity investments in subsidiaries are disposed of step by step through multiple transactions until the loss of control and the terms
conditions and economic impact of the disposal on various transactions of the equity investments in subsidiaries meet one or more of the following
circumstances it generally indicates that multiple transactions shall be taken as a package of transactions for accounting treatment:
(a). The transactions are entered into simultaneously or with consideration of each other’s impact;
(b). The transactions as a whole are aimed at achieving a complete business result;
(c). The occurrence of one transaction depends on the occurrence of at least one other transaction;
(d). A single transaction is uneconomical on its own but it is economical when considered with other transactions.If the disposal of equity investments in subsidiaries until the loss of control belongs to a package of transactions the company will treat each
transaction as a disposal of subsidiaries and the loss of control transaction for accounting treatment; however before loss of control the difference
between each disposal price and the share of the subsidiary’s net assets corresponding to the disposal investment is recognized as other comprehensive
income in consolidated financial statements and is transferred into the current profit or loss on the loss of control.Where the disposal of various transactions from the equity investments in subsidiaries until the loss of control are not a package of transactions
before the loss of control accounting treatment shall be carried out according to the relevant policies on partial disposal of equity investments of
subsidiaries without loss of control; when loss of control the accounting treatment shall be carried out in accordance with the general treatment of the
disposal of subsidiaries.* Purchase of minority interests in subsidiaries
The equity premium in the capital reserves in the consolidated balance sheet shall be adjusted at the difference between the long-term equity
investments acquired by the Company for the purchase of minority interests and the share of net assets of the subsidiaries calculated continuously
from the purchase date (or combination date) according to the newly increased shareholding ratio; if the equity premium in the capital reserves is
insufficient to be offset the retained earnings shall be adjusted.* Partial disposal of equity investments to the subsidiaries without loss of control
The equity premium in the capital reserves in the consolidated balance sheet will be adjusted at the difference between the disposal price obtained
from partial disposal of long-term equity investments to the subsidiaries without loss of control and the share of net assets of the subsidiaries
calculated continuously from the purchase date or combination date corresponding to the disposal of the long-term equity investments; if the equity
premium in the capital reserves is insufficient to be offset the retained earnings will be adjusted.
8. Classification of joint venture arrangements and accounting treatment method for joint operations
（1）. Classification of joint venture arrangements
The Company classifies joint venture arrangements into joint operations and joint ventures based on the structure and legal form of the joint venture
arrangements the terms agreed in the joint venture arrangements other relevant facts and circumstances. Joint operation refers to a joint arrangement
in which the joint venturer enjoys the relevant assets of the arrangement and assumes the relevant liabilities of the joint venture arrangements. Joint
venture refers to the joint venture arrangements in which the joint venturer only has rights to the net assets of the arrangement.
（2）. Accounting treatment methods of joint operation
The Company recognizes the following items related to the share of interests in joint operations and makes accounting treatment according to the
relevant ASBE:
* Recognizes the assets held separately and the assets held jointly according to its proportion;
* Recognizes the liabilities assumed separately and the liabilities assumed jointly according to its proportion;
* Recognizes the income from the sales of its share in the outputs of joint operation;
* Recognizes the income from the sales of the outputs of joint operation according to its proportion;
* Recognizes the expenses incurred separately and recognize the expenses incurred jointly according to its proportion.
9. Determination standards for cash and cash equivalents
For the purpose of preparing the statement of cash flows the Company’s on-hand cash and deposits that can be used for payment at any time are
recognized as cash. Cash equivalents refer to investments that are of short duration (generally those due within three months from the date of
purchase) highly liquid easily convertible into known amounts of cash and with minimal risk of value fluctuation.
10. Foreign currency business and foreign currency statement translation
（1）． Foreign currency business
At the initial recognition of foreign currency transactions the spot exchange rate on the date of transaction is used as the conversion exchange rate to
convert it into RMB for bookkeeping.On the balance sheet date the foreign currency monetary item shall be converted according to the spot exchange rate on the balance sheet date and
the exchange differences arising therefrom shall be included in the current profit or loss except that the exchange differences arising from the special
foreign currency borrowings related to the acquisition and construction of assets eligible for capitalization shall be treated according to the principle of
capitalization of borrowing costs. Foreign currency non-monetary items measured at historical cost shall still be translated at the spot exchange rate on
the date when the transaction occurs and the amount in recording currency shall remain unchanged.Foreign currency non-monetary items measured at fair value shall be translated at the spot exchange rate on the date when the fair value is
determined. The difference between the amount in recording currency after translation and the amount in recording currency before translation shall
be treated as profit or loss from changes in fair value (including fluctuation in exchange rate) and shall be included in the current profit or loss or
recognized as other comprehensive income.
（2）.Foreign currency statement translationThe assets and liabilities items in the balance sheet shall be treated at the spot exchange rate on the balance sheet date. Except for the “undistributed
1322025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.profit” items other owners’ equity items shall be translated at the spot exchange rate at the time of occurrence. The income and expense items in the
income statement shall be translated using the spot exchange rate at the transaction date. The difference arising from the translation of foreign-
currency financial statements arising from the above translation shall be included in other comprehensive income.When disposing of overseas operation the difference arising from the translation of foreign-currency financial statements listed in other
comprehensive income items in the balance sheet and related to the overseas operation shall be transferred from other comprehensive income items to
the current profit or loss on disposal; when the proportion of the overseas operation interests held decreases due to the partial disposal of equity
investments or for other reasons without the loss of control over the overseas operation the translation differences of foreign currency statements
related to the disposal of the overseas operation shall be attributable to minority interests and shall not be transferred to the current profit or loss.Where the Company disposes of part of the equity of an overseas operation as associates or joint ventures the translation differences of foreign
currency statements related to the overseas operation shall be transferred to the current profit or loss at the proportion of disposal of the overseas
operation.
11. Financial instruments
The Company recognizes a financial asset or financial liability when it becomes a party to a financial instrument contract.Effective interest method refers to the method of calculating the amortized costs of financial assets or financial liabilities and allocating interest
income or interest expenses to each accounting period.Effective interest rate refers to the interest rate used to discount the estimated future cash flows of a financial asset or financial liabilities during
its expected duration to the book balance of the financial assets or the amortized costs of the financial liabilities. In determining the effective interest
rate the estimated cash flows are based on consideration of all contract terms of the financial assets or financial liabilities (e.g. prepayment extension
call option or other similar options) but not expected credit loss.The amortized costs of a financial asset or financial liability is the initial recognition amount of the financial asset or financial liability less the
principal repaid plus or minus the accumulated amortization formed by using the effective interest method to amortize the difference between the
initial recognition amount and the amount at maturity and then less the accumulated loss provision (only applicable to financial assets).
（1）Classification recognition and measurement of financial assets
The Company classifies financial assets into the following three categories based on the business model of the financial assets under management
and the contractual cash flows characteristics of the financial assets:
* Financial assets measured by amortized costs.* Financial assets measured at fair value through other comprehensive income.* Financial assets measured at fair value with changes recognized in current profit or loss.Financial assets are measured at fair value at initial recognition but if accounts receivable or notes receivable arising from the sale of goods or
the provision of services do not contain a significant financing component or do not take into account a financing component of less than one year
they are initially measured at transaction prices.For financial assets measured at fair value with changes recognized in profit or loss the related transaction costs are directly included in the
current profit or loss. For other categories of financial assets transaction costs are included in the initial recognition amount.Subsequent measurement of financial assets depends on their classification and all affected related financial assets are reclassified only when and
if the Company changes the business model of managing financial assets.* Financial assets classified as those measured at amortized costs
The contract terms of the financial assets provide that the cash flows generated on a specific date are only the payment of the principal and interest
based on the outstanding principal amount and the business model for managing the financial assets is aimed at collecting contractual cash flows then
the Company classifies the financial assets as financial assets measured at amortized costs. Financial assets classified by the Company as those
measured at amortized costs include monetary funds certain notes receivable measured at amortized costs and accounts receivable other receivables
etc.The Company recognizes interest income of such financial assets by effective interest method and subsequently measures them at amortized costs.Gains or losses arising from impairment or derecognition or modification are included in the current profit or loss. Except for the following
circumstances the Company determines the interest income based on the book balance of the financial assets multiplied by the effective interest rate:
A. For purchased or originated financial assets with credit impairment the Company shall from the initial recognition calculate and determine the
interest income according to the amortized costs and credit-adjusted effective interest rate of the financial assets.B. For purchased or originated financial assets that have not experienced credit impairment but become credit impairment in subsequent periods the
Company shall calculate and determine their interest income in subsequent periods according to the amortized costs and effective interest rate of the
financial assets. If the financial instruments no longer have credit impairment due to the improvement of its credit risk in subsequent periods the
Company shall calculate and determine the interest income by multiplying the effective interest rate by the book balance of the financial assets.* Financial assets classified as measured at fair value with changes recognized in other comprehensive income
If the contract terms of the financial assets stipulate that the cash flow generated on a specific date is only the payment of the principal and the
interest based on the outstanding principal amount and the business model of managing the financial assets aims at both collecting contractual cash
flows and selling the financial assets the Company classifies the financial assets as the financial assets measured at fair value with changes recognized
in other comprehensive income.The Company recognizes interest income on such financial assets using the effective interest method. Except for interest income impairment losses
and exchange differences recognized as current profit or loss other changes in fair value are included in other comprehensive income. When the
financial assets are derecognized the accumulated gains or losses previously included in the other comprehensive income shall be transferred from
other comprehensive income and included in the current profit or loss.Notes receivable and accounts receivable measured at fair value through other comprehensive income are presented as receivables financing and
other such financial assets are presented as other debt investments of which: other debt investments maturing within one year from the balance sheet
date are presented as non-current assets maturing within one year and other debt investments with original maturity date within one year are presented
as other current assets.* Financial assets designated to be measured at fair value with changes recognized in other comprehensive income
At the time of initial recognition the Company may irrevocably designate non-trading equity instruments investments as financial assets measured at
fair value with changes recognized in other comprehensive income on an individual financial asset basis
Changes in the fair value of such financial assets are included in other comprehensive income without provision for impairment. When the financial
assets are derecognized the accumulated gains or losses previously included in other comprehensive income are transferred from other comprehensive
income to retained earnings. During the period when the Company holds the investments in equity instruments when the Company’s right to receive
dividends has been established the economic benefits related to the dividends are likely to flow into the Company and the amount of the dividends
1332025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
can be measured reliably the dividend revenue is recognized and included in the current profit or loss. The Company lists such financial assets in the
investments in other equity instruments.If the investments in equity instruments meets one of the following conditions they belong to the financial assets measured at fair value with changes
recognized in current profit or loss: the purpose of obtaining the financial assets is mainly for sale in the near future; it is part of the portfolio of
identifiable financial assets instruments under centralized management at the time of initial recognition and there is objective evidence that a short-
term profit model actually exists in the near future; they belong to derivative instruments (except for derivative instruments that meet the definition of
financial guarantee contract and are designated as effective hedging instruments).* Financial assets classified as measured at fair value with changes recognized in current profit or loss
Financial assets that do not meet the conditions for classification as amortized costs measured or measured at fair value with changes recognized in
other comprehensive income and are not designated as financial assets measured at fair value with changes recognized in other comprehensive
income are classified as financial assets measured at fair value with changes recognized in current profit or loss.The Company adopts fair value for subsequent measurement of such financial assets and includes the gains or losses arising from changes in fair
value and the dividends and interest income related to such financial assets into the current profit or loss.The Company presents such financial assets in the items of financial assets held for trading and other non-current financial assets according to their
liquidity.* Financial assets designated to be measured at fair value with changes recognized in current profit or loss
At the time of initial recognition in order to eliminate or significantly reduce the accounting mismatch the Company may irrevocably designate the
financial assets as the financial assets measured at fair value with changes recognized in current profit or loss on an individual financial asset basis.If a mixed contract contains one or more embedded derivative instruments and its master contract does not belong to the above financial assets the
Company may designate it as a financial instrument measured at fair value with changes recognized in current profit or loss. However the following
conditions are excluded:
A. Embedded derivative instrument does not significantly change the cash flow of the mixed contract.B. When initially determining whether similar mixed contracts need to be split it is almost clear that the embedded derivative instruments contained
therein should not be split without analysis. For example the embedded prepayment right allows the holder to prepay the loan in an amount close to
the amortized costs. The prepayment right does not need to be split.The Company adopts fair value for subsequent measurement of such financial assets and includes the gains or losses arising from changes in fair
value and the dividends and interest income related to such financial assets into the current profit or loss.The Company presents such financial assets in the items of financial assets held for trading and other non-current financial assets according to their
liquidity.
（2）Classification recognition and measurement of financial liabilities
The Company classifies the financial instrument or its components as financial liabilities or equity instruments at initial recognition based on the
contract terms of the financial instruments issued and the economic substance reflected therein rather than solely in legal form in combination with
the definitions of financial liabilities and equity instruments. Financial liabilities are classified at initial recognition as: financial liabilities measured at
fair value with changes recognized in current profit or loss other financial liabilities and derivative instruments designated as effective hedging
instruments.Financial liabilities are measured at fair value at initial recognition. For financial liabilities measured at fair value with changes recognized in current
profit or loss the relevant transaction costs are directly included in the current profit or loss; for other types of financial liabilities the relevant
transaction costs are included in the initial recognition amount.The subsequent measurement of financial liabilities depends on their classification:
* Financial liabilities measured at fair value with changes recognized in current profit or loss
This type of financial liability includes trading financial liabilities (including derivative instruments that are financial liabilities) and financial
liabilities designated at fair value through profit or loss at initial recognition.Trading financial liabilities are those that meet one of the following conditions: the purpose of assuming the relevant financial liabilities is mainly to
sell or repurchase in the near future; they belong to the part of the portfolio of identifiable financial instruments under centralized management and
there is objective evidence that the enterprise has recently adopted a short-term profit model; they belong to derivative instrument except for
derivative instrument designated as effective hedging instrument and derivative instrument in compliance with financial guarantee contract. Trading
financial liabilities (including derivative instruments belonging to financial liabilities) shall be subsequently measured at fair value. Except for those
related to hedge accounting changes in fair value shall be included in the current profit or loss.At the time of initial recognition in order to provide more relevant accounting information the Company irrevocably designates the financial
liabilities meeting one of the following conditions as the financial liabilities measured at fair value with changes recognized in current profit or loss:
A. Eliminate or significantly reduce accounting mismatch.B. According to the enterprise risk management or investment strategies stated in formal written documents the Company manages and evaluates the
performance of the financial liabilities portfolio or the portfolio of financial assets and financial liabilities on the basis of the fair value and reports to
the key officers within the enterprise on this basis.The Company adopts fair value for subsequent measurement of such financial liabilities. Except for the changes in fair value caused by the
Company’s own changes in credit risk which are included in other comprehensive income other changes in fair value are included in the current
profit or loss. Unless the inclusion of fair value changes caused by the Company’s own credit risk changes in other comprehensive income would
cause or enlarge the accounting mismatch in the profit or loss the Company will include all fair value changes (including the amount affected by its
own credit risk changes) in the current profit or loss.* Other financial liabilities
Except for the following items the Company classifies financial liabilities as financial liabilities measured at amortized costs. For such financial
liabilities the effective interest method is adopted and subsequent measurement is carried out according to the amortized costs. Gains or losses arising
from derecognition or amortization are included in the current profit or loss:
A. Financial liabilities measured at fair value through current profit or loss.B. The transfer of financial assets does not meet the conditions for derecognition or continues to be involved in the financial liabilities formed by the
transferred financial assets.C. Financial guarantee contracts that do not fall under the first two categories of this article and loan commitments that do not fall under 1) category
of this article and have loans at below-market interest rates.A financial guarantee contract refers to a contract where in the event that a specific debtor fails to repay the debt according to the original or modified
terms of the debt instrument the issuer is required to compensate the contract holder for a specific amount of loss. Financial guarantee contracts not
belonging to the financial liabilities designated to be measured by fair value through the current profit or loss shall be measured at the amount of loss
provision or the balance of the initial recognition amount deducting the accumulated amortization amount within the guarantee period after initial
recognition whichever is higher.
（3）Derecognition of financial assets and financial liabilities
* If a financial asset meets one of the following conditions the financial asset shall be derecognized that is it shall be written off from its account
and balance sheet:
A. The contractual right to receive the cash flows of the financial assets is terminated.B. The financial assets have been transferred and the transfer meets the requirements for derecognition of the financial assets.* Derecognition criteria of financial liabilities
1342025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
If the present obligations of the financial liabilities (or part thereof) have been discharged the financial liabilities (or part thereof) shall be
derecognized.If the Company enters into an agreement with the lender to replace the original financial liabilities by assuming new financial liabilities and the
contract terms of the new financial liabilities are substantially different from those of the original financial liabilities or the contract terms of the
original financial liabilities (or part thereof) are substantially modified the original financial liabilities shall be derecognized and a new financial
liability shall be recognized at the same time. The difference between the book value and the consideration paid (including non-cash assets transferred
out or liabilities assumed) shall be included in the current profit or loss.If the Company repurchases part of the financial liabilities the book value of the financial liabilities as a whole shall be allocated according to the
proportion of the fair value of the continuously recognized part and the derecognized part on the repurchase date to the overall fair value. The
difference between the book value allocated to the derecognized part and the consideration paid (including non-cash assets transferred out or liabilities
assumed) shall be included in the current profit or loss.
(4)．Recognition basis and measurement method of transfer of financial assets
When a financial asset is transferred the Company assesses the extent of the risks and rewards associated with the ownership of the financial assets it
retains and deals with them according to the following circumstances:
* Where the Company transfers substantially all the risks and rewards related to the ownership of a financial assets the financial assets shall be
derecognized and the rights and obligations arising from or retained in the transfer shall be separately recognized as assets or liabilities.* If the Company retains nearly all the risks and rewards related to the ownership of the financial assets the financial assets shall continue to be
recognized.* Neither transfer nor retain substantially all the risks and rewards of ownership of the financial assets (i.e. circumstances other than* and * of
this article) it shall be handled according to the following circumstances based on whether it retains the control over the financial assets:
A. If the Company doesn’t retain the control over the financial assets the financial assets shall be derecognized and the rights and obligations arising
from or retained in the transfer shall be separately recognized as assets or liabilities.B. If the Company retains the control over the financial assets it shall continue to recognize the relevant financial assets according to the extent of its
continuous involvement in the transferred financial assets and recognize the relevant liabilities accordingly. The degree of continuous involvement in
the transferred financial assets refers to the degree of the risk or reward of changes in the value of transferred financial assets undertaken by the
Company.The principle of substance over form shall be adopted when judging whether the transfer of financial assets satisfies the above-mentioned
derecognition criteria of financial assets. The Company divides the transfer of financial assets into the overall transfer and the partial transfer of
financial assets.* If the overall transfer of the financial assets meets the derecognition criteria the difference between the following two amounts shall be included
in the current profit or loss:
A. The book value of the transferred financial assets on the derecognition date.B. The sum of the consideration received from the transfer of financial assets and the amount corresponding to the derecognized part of the
accumulated amount of changes in fair value originally and directly included in the other comprehensive income (the financial assets involved in the
transfer are classified as the financial assets measured at fair value through the other comprehensive income).* If the financial assets are partially transferred and the transferred portion satisfies the derecognition criteria as a whole the entire book value of
the financial assets before the transfer shall be amortized between the derecognized portion and the continuously recognized portion (in this case the
retained service assets shall be deemed as part of the continuously recognized financial assets) according to their respective relative fair values on the
transfer date and the underrecognized part according to their respective relative fair values on the transfer date and then the difference between the
following two amounts shall be recorded into the current profit or loss:
A. The book value of the derecognized part on the derecognition date.B. The sum of the consideration received from the derecognized part and the corresponding amount of derecognized part in the accumulated amount
of changes in fair value originally included in the other comprehensive income (the financial assets involved in the transfer are classified as the
financial asset measured at fair value through other comprehensive income).If the transfer of financial assets does not satisfy the derecognition criteria the financial assets shall continue to be recognized and the consideration
received shall be recognized as a financial liabilities.
(5)．Determination method of fair value of financial assets and financial liabilities
The fair value of financial assets or financial liabilities with an active market is determined by the quoted price of the active market unless there is a
restricted period for the asset itself. For financial assets with restricted sales for the asset itself the compensation amount required by the market
participant for bearing the risk of not being able to sell the financial assets in the open market within the specified period shall be deducted from the
quoted price in the active market. Quotations in active markets include quotations for the relevant assets or liabilities that are readily and regularly
available from exchanges traders brokers industry groups pricing agencies or regulatory authorities and represent actual and frequent market
transactions on an arm’s length basis.The fair value of financial assets initially acquired or derived or financial liabilities assumed shall be determined on the basis of market transaction
prices.For financial assets or financial liabilities without active market the fair value shall be determined by valuation techniques. In the valuation the
Company adopts the valuation techniques that are applicable in the current situation and supported by sufficient available data and other information
selects the inputs that are consistent with the characteristics of the assets or liabilities considered by market participants in the transaction of the
relevant assets or liabilities and gives priority to the use of relevant observable inputs as much as possible. When relevant observable inputs cannot be
obtained or are impracticable to obtain unobservable inputs are used.
(6)．Impairment of financial instruments
The Company shall conduct impairment accounting and recognize loss provisions on the basis of expected credit losses for financial assets measured
at amortized costs financial assets classified as measured at fair value through other comprehensive income.Expected credit loss refers to the weighted average of the credit losses of financial instruments weighted by the risk of default. Credit loss refers to
the difference between all contractual cash flows discounted at the original effective interest rate and receivable according to the contract and all cash
flows expected to be collected of the Company i.e. the present value of all cash shortfalls. Among them credit-impaired purchased or originated
financial assets of the Company shall be discounted at the credit-adjusted effective interest rate of such financial assets.The Company measures the loss provision for all contract assets notes receivable and accounts receivable arising from transactions regulated by the
revenue standards at an amount equivalent to the expected credit loss during the entire duration.For financial assets purchased or originated that have incurred credit impairment only the cumulative change in expected credit loss during the entire
duration since initial recognition is recognized as loss provision on the balance sheet date. On each balance sheet date the amount of changes in
expected credit loss during the entire duration is included in the current profit or loss as an impairment loss or gain. The favorable change in expected
credit loss is recognized as impairment gain even if the expected credit loss during the entire duration determined on the balance sheet date is less than
the expected credit loss reflected in the estimated cash flows at the time of initial recognition.For financial assets other than those subject to simplified measurement and purchased or originated that have suffered from credit impairment the
Company assesses whether the credit risk of the relevant financial instruments has increased significantly since initial recognition on each balance
sheet date and measures its loss provisions recognizes expected credit losses and their changes respectively according to the following circumstances:
* If the credit risk of the financial instruments has not increased significantly since the initial recognition and is in the first stage the loss provision
is measured at an amount equal to the expected credit loss of the financial instruments over the next 12 months and the interest income is calculated
based on the book balance and effective interest rate.
1352025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
* If the credit risk of the financial instruments has increased significantly since the initial recognition but has suffered from credit impairment it is
in the second stage and its loss provision is measured at an amount equivalent to the expected credit loss of the financial instruments during the entire
duration and the interest income is calculated according to the book balance and the effective interest rate.* If the financial instruments have suffered from credit impairment since its initial recognition which is in the third stage the Company measures
its loss provision at an amount equal to the expected credit loss of the financial instruments during the entire duration and calculates interest income
based on amortized costs and effective interest rate.The increase or reversal of the provision for credit loss of financial instruments shall be included in the current profit or loss as impairment loss or
gain. Except for financial assets classified as measured at fair value through other comprehensive income the provision for credit loss offsets the book
balance of financial assets. For financial assets classified as measured at fair value through other comprehensive income the Company recognizes the
provision for credit loss in other comprehensive income without reducing the book value of the financial assets presented in the balance sheet.In the previous accounting period the Company has measured the loss provision according to the amount equivalent to the expected credit loss of the
financial instruments during the entire duration. However on the current balance sheet date the financial instruments no longer belong to the situation
where the credit risk has increased significantly since the initial recognition. On the current balance sheet date the Company measures the loss
provision of the financial instruments according to the amount equivalent to the expected credit loss in the next 12 months and the reversal amount of
the resulting loss provision is included in the current profit or loss as impairment gains.* Significant increase of credit risk
The Company uses reasonable and well-founded forward-looking information available to determine whether the credit risk of the financial
instruments has increased significantly since initial recognition by comparing the risk of default on the balance sheet date with the risk of default on
the initial recognition date. For financial guarantee contracts the Company applies the impairment of financial instruments regulations and the date
on which the Company becomes a party to the irrevocable commitment is the initial recognition date.The Company will consider the following factors when assessing whether the credit risk has increased significantly:
A. Whether the actual or expected operating results of the debtor have changed significantly;
B. Whether the regulatory economic or technological environment of the debtor has undergone significant adverse changes;
C. Whether the following items have changed significantly: the value of collateral as debt mortgage or the guarantee provided by a third party or the
quality of credit enhancement; these changes will reduce the debtor’s economic motivation to repay the loan within the time limit stipulated in the
contract or impact the probability of default;
D. Whether the debtor’s expected performance and repayment behavior have changed significantly;
E. Whether there is any change in the Company’s credit management method for financial instruments etc.On the balance sheet date if the Company judges that the financial instruments only have low credit risk the Company assumes that the credit risk of
the financial instruments has not increased significantly since the initial recognition. If the default risk of the financial instruments is low the
borrower’s ability to fulfill its contractual cash flow obligation in the short term is strong and even if there are adverse changes in the economic
situation and operating environment in a longer period of time it may not necessarily reduce the borrower’s ability to fulfill its contractual cash flow
obligation then the financial instruments is considered to have a low credit risk.* Financial assets with credit impairment
If one or more events have adverse effects on the expected future cash flow of a financial asset the financial asset will become a financial asset that
has suffered credit impairment. The following observable information can be regarded as evidence of credit impairment of financial assets:
A. The issuer or debtor is in serious financial difficulties;
B. The debtor breaches the contract such as default or overdue payment of interest or principal etc.;
C. The creditor gives concessions to the debtor due to economic or contractual considerations related to the debtor’s financial difficulties; the
concessions will not be made under any other circumstances;
D. There is a great possibility of bankruptcy or other financial restructuring of the debtor;
E. The financial difficulties of the issuer or debtor cause the disappearance of the active market for the financial asset;
F. The purchase or origin of a financial asset at a substantial discount that reflects the fact that a credit loss has occurred.The credit impairment of financial assets may be caused by the joint action of multiple events not necessarily by separately identifiable events.* Determination of expected credit loss
The Company assesses the expected credit loss of financial instruments based on individual and portfolio and considers reasonable and well-founded
information about past events current conditions and future economic conditions when assessing the expected credit loss.The Company divides financial instruments into different portfolios based on common credit risk characteristics. The common credit risk
characteristics adopted by the Company include: type of financial instruments credit risk rating aging portfolio contract settlement cycle debtor’s
industry etc. The individual assessment criteria and portfolio credit risk characteristics of the relevant financial instruments are detailed in the
accounting policies of the relevant financial instruments.The Company determines the expected credit loss of the relevant financial instruments according to the following methods:
A. For financial assets the credit loss is the present value of the difference between the contractual cash flows receivable by the Company and the
cash flows expected to be received.B. For lease accounts receivable the credit loss is the present value of the difference between the contractual cash flows receivable by the Company
and the cash flows expected to be received.C. For financial guarantee contracts the credit loss is the present value of the difference between the expected payment to be made by the Company
to the holder of such contract for credit losses incurred by the holder of such contract less the amount the Company expects to collect from the holder
of such contract the debtor or any other party.D. For financial assets that have incurred credit impairment on the balance sheet date but not those purchased or originated that have incurred credit
impairment the credit loss is the difference between the book balance of the financial assets and the present value of the estimated future cash flows
discounted at the original effective interest rate.The method of measuring the expected credit loss of financial instruments of the Company reflects the following factors: the weighted average
amount of unbiased probability determined by evaluating a series of possible results; time value of money; reasonable and well-founded information
about past events current conditions and projections of future economic conditions that can be obtained without unnecessary additional cost or effort
on the balance sheet date.* Write-down of financial assets
When the Company no longer reasonably expects that the contractual cash flows of the financial assets can be recovered in whole or in part the
book balance of the financial assets shall be directly written down. Such write-downs constitute the derecognition of the relevant financial assets.
（7）．Offset of financial assets and financial liabilities
In the balance sheet financial assets and financial liabilities are shown separately without offsetting each other. However if the following conditions
are met at the same time the net amount after offset will be listed in the balance sheet:
* The Company has the legal right which is currently enforceable to offset the confirmed amount;
* The Company plans to settle on a net basis or realize the financial assets and settle the financial liabilities at the same time.
12. Notes receivable
For the determination method of expected credit losses on notes receivable and accounting treatment method please refer to Note 11(6)
“Impairment of Financial Instruments” herein.
1362025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
When it is not possible to obtain sufficient evidence to estimate expected credit losses at a reasonable cost on an individual instrument basis the
Company refers to historical credit loss experience combined with current conditions and forecasts of future economic conditions and classifies notes
receivable into several portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis. The basis for the Portfolio is
as follows:
Portfolio Name Basis forPortfolio Measurement Method
Bank Acceptance Type of Referring to historical credit loss experience measures expected credit losses in light of current conditions
Bill Portfolio notes and expectations for future economic conditions.Commercial Type of Referring to historical credit loss experience combined with current conditions and forecasts of futureAcceptance Bill notes economic conditions prepares an aging schedule matched with expected credit loss rates based on lifetimePortfolio expected credit losses and calculates expected credit losses on this basis.
13. Accounts receivable
For the determination method of expected credit losses on accounts receivable and accounting treatment method please refer to Note 11(6)
“Impairment of Financial Instruments” herein.For accounts receivable whose credit risk is significantly different from that of the portfolio the Company recognizes expected credit losses on an
individual basis. The Company separately determines credit losses for accounts receivable that are individually significant and have experienced credit
impairment since initial recognition.When it is not possible to obtain sufficient evidence to estimate expected credit losses at a reasonable cost on an individual instrument basis the
Company refers to historical credit loss experience combined with current conditions and forecasts of future economic conditions and classifies accounts
receivable into several portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis. The basis for the portfolio is
as follows:
Portfolio Name Basis for Portfolio Measurement Method
Related Party within Accounts receivable from
Consolidation Scope companies within the No expected credit losses are accrued with reference to historical credit loss experience.Portfolio consolidation scope
Accounts receivable with Referring to historical credit loss experience combined with current conditions and
Aging Portfolio similar credit risk forecasts of future economic conditions prepares an aging schedule matched withcharacteristics classified by expected credit loss rates based on lifetime expected credit losses and calculates
aging expected credit losses on this basis.
14. Accounts receivable financing
Notes receivable classified as measured at fair value through other comprehensive income with maturity within one year (including one year) from
initial recognition are presented as accounts receivable financings; those with maturity over one year from initial recognition are presented as other debt
investments the relevant accounting policies are detailed in Note 18.For the determination method of expected credit losses on accounts receivable financings and accounting treatment method please refer to Note 11(6)
“Impairment of Financial Instruments” herein.For accounts receivable financings whose credit risk is significantly different from that of the portfolio the Company recognizes expected credit
losses on an individual basis. The Company separately determines credit losses for accounts receivable financings for which sufficient evidence to estimate
expected credit losses can be obtained at a reasonable cost on an individual instrument basis.When it is not possible to obtain sufficient evidence to estimate expected credit losses at a reasonable cost on an individual instrument basis the
Company refers to historical credit loss experience combined with current conditions and forecasts of future economic conditions and classifies accounts
receivable financings into several portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis. The basis for the
portfolio is as follows:
Portfolio Name Basis forPortfolio Measurement Method
Bank Acceptance Bill Type of notes Referring to historical credit loss experience measures expected credit losses in light of currentPortfolio conditions and expectations for future economic conditions.
15. Other Receivables
For the determination method of expected credit losses on other receivables and accounting treatment method please refer to Note 11(6)
“Impairment of Financial Instruments” herein.For other receivables whose credit risk is significantly different from that of the portfolio the Company recognizes expected credit losses on an
individual basis. The Company separately determines credit losses for other receivables for which sufficient evidence to estimate expected credit losses
can be obtained at a reasonable cost on an individual instrument basis.When it is not possible to obtain sufficient evidence to estimate expected credit losses at a reasonable cost on an individual instrument basis the
Company refers to historical credit loss experience combined with current conditions and forecasts of future economic conditions and classifies other
receivables into several portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis. The basis for the portfolio
is as follows:
Portfolio Name Basis for Portfolio Measurement Method
Related Party within Other receivables from
Consolidation Scope companies within the No expected credit losses are accrued with reference to historical credit loss experience.Portfolio consolidation scope
Other receivables with similar With reference to historical credit loss experience combined with current conditions
Aging Portfolio credit risk characteristics and forecasts of future economic conditions the expected credit loss is calculated based
classified by aging on the exposure at default and the credit loss rate for the next 12 months or the entirelifetime.
16. Inventories
1372025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(I) Inventory categories valuation method for inventory issuance inventory system amortization method for low-value consumables and packaging
materials
(1) Inventory classification
Inventories refer to finished products or goods held by the Company for sale as part of its daily operations work-in-progress items in various stages
of production as well as materials and supplies used in manufacturing or providing labor services. They mainly include raw materials turnover materials
work-in-progress items self-produced finished products finished goods (inventory stock) goods in transit and others.
(2) Pricing method for inventory issuance
Inventories are initially measured at cost upon acquisition including procurement cost processing cost and other costs. Inventories issued are
valued using the month-end weighted average method.
(3) Inventory management system
The Company adopts the perpetual inventory management system.
(4) Amortization method for low-value consumables and packaging materials
1) Low-value consumables are amortized using the one-off write-off method;
2) Packaging materials are amortized using the one-off write-off method;
3) Other turnover materials are amortized using the one-off write-off method.
(II) Standards for recognizing and calculating the provision for inventory impairment
After a comprehensive inventory inspection at the end of the period inventory write-down provisions are accrued or adjusted on the lower of cost or
net realizable value basis. For merchandise inventory directly held for sale such as finished goods inventory stock and materials for sale the net realizable
value is determined as the estimated selling price minus estimated selling expenses and relevant taxes and fees in the normal business operation. For raw
materials requiring further processing the net realizable value is determined as the estimated selling price of the finished products to be produced minus
the estimated costs to completion estimated selling expenses and relevant taxes and fees. For inventories held to fulfill sales contracts or service contracts
their net realizable value is calculated based on the contract price. If the quantity of inventory held exceeds the contracted quantity under sales contracts
the net realizable value of the excess portion is determined based on the general market selling price.Inventory write-down provisions are accrued on an individual item basis at the end of the period. For inventories with large quantity and low unit
price provisions are accrued by inventory category. For inventories associated with product lines produced and sold in the same region with identical or
similar end use or purpose and incapable of separate measurement inventory write-down provisions are accrued on a combined basis.If the factors that previously caused inventory impairment cease to exist the impaired amount shall be reversed within the scope of the originally
accrued inventory write-down provision and the reversed amount shall be recognized in current profit or loss.
17. Debt investments
Please refer to Note 11 (6) “Impairment of Financial Instruments” for the determination method and accounting treatment of expected credit losses
on debt investments of the Company.
18. Other Debt Investments
Please refer to Note 11 (6) “Impairment of Financial Instruments” for the determination method and accounting treatment of expected credit losses
on other debt investments of the Company.
19. Long-term Receivables
Please refer to Note 11 (6) “Impairment of Financial Instruments” for the determination method and accounting treatment of expected credit losses
on long-term receivables of the Company.The Company separately assesses and recognizes credit losses for long-term receivables for which sufficient evidence of expected credit loss can be
evaluated at a reasonable cost on an individual instrument basis.When sufficient evidence of expected credit loss cannot be evaluated at a reasonable cost on an individual instrument basis the Company refers to
historical credit loss experience combines current conditions and judgments on future economic conditions classifies long-term receivables into several
portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis.
20. Long-term Equity Investments
I. Determination of Initial Investment Cost
(1) Long-term equity investments arising from business combinations
Please refer to Note (VI) “Accounting treatments for business combination under common control and not under common control”.
(2) Long-term equity investments acquired by other means
Long-term equity investments acquired by cash payment are measured at the actual purchase price paid as the initial investment cost including
expenses taxes and other necessary expenditures directly attributable to the acquisition.Long-term equity investments acquired by issuing equity securities are measured at the fair value of the issued equity securities as the initial
investment cost. Transaction costs incurred in issuing or acquiring own equity instruments that are directly attributable to equity transactions are deducted
from equity.Under the premise that a non-monetary asset exchange has commercial substance and the fair value of either the assets received or assets given up
can be reliably measured the initial cost of the long-term equity investment obtained is determined based on the fair value of the assets given up unless
conclusive evidence indicates that the fair value of the assets received is more reliable. If the above premise is not satisfied the initial investment cost is
determined based on the carrying amount of the assets given up plus relevant taxes payable.The initial investment cost of long-term equity investments obtained through debt restructuring is determined based on fair value.II. Subsequent measurement and profit or loss recognition
(1) Cost Method
1382025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
For long-term equity investments over which the Company is able to exercise control over the investee the cost method is adopted. Such
investments are measured at initial investment cost and the cost of long-term equity investments is adjusted for additional investments or recoveries of
investments.Except for cash dividends or profits that have been declared but not yet distributed and are included in the actual consideration paid or the
consideration transferred at the time of investment the Company recognizes the cash dividends or profits declared and distributed by the investee in
proportion to its share as investment income in the current period.
(2) Equity Method
The Company accounts for long-term equity investments in associates and joint ventures under the equity method. For equity interests in associates
indirectly held through venture capital institutions mutual funds trust companies or similar entities including investment-linked insurance funds such
investments are measured at fair value with changes recognized in profit or loss.If the initial investment cost of a long-term equity investment is greater than the Company’s share of the fair value of the investee’s identifiable net
assets at the acquisition date no adjustment is made to the initial investment cost. If the initial investment cost is less than the Company’s share of the fair
value of the investee’s identifiable net assets at the acquisition date the difference is recognized in current profit or loss.After acquiring the long-term equity investment the Company recognizes investment income and other comprehensive income respectively in
proportion to its share of the investee’s net profit or loss and other comprehensive income and adjusts the carrying amount of the long-term equity
investment accordingly. The carrying amount is reduced in proportion to the dividends or profit distributions declared by the investee. For other changes in
the investee’s owner’s equity excluding net profit or loss other comprehensive income and profit distribution the Company adjusts the carrying amount of
long-term equity investments and recognizes the amount in owner’s equity.When recognizing its share of the investee’s net profit or loss the Company adjusts the investee’s net profit based on the fair value of the investee’s
identifiable assets and liabilities at the acquisition date. Unrealized gains and losses from internal transactions between the Company and its associates and
joint ventures are eliminated to the extent of the Company’s share and investment profit or loss is recognized on this basis.When recognizing its share of losses incurred by the investee the Company proceeds in the following order: first reduce the carrying amount of the
long-term equity investment. Second if the carrying amount of the long-term equity investment is insufficient to absorb the share of losses continue to
recognize investment losses up to the carrying amount of other long-term interests that substantially constitute net investment in the investee and reduce
the carrying amount of long-term receivables accordingly. Finally if the Company still assumes additional obligations under investment contracts or
agreements after the above treatments a provision is recognized for the estimated obligations and charged to current investment losses.If the investee achieves profits in subsequent periods the Company reverses the above processing in reverse order after deducting unrecognized
share of losses: write down the carrying amount of estimated provisions restore other long-term interests and long-term equity investments that
substantially constitute net investment and then recognize investment income.
3. Conversion of Accounting Methods for Long-term Equity Investments
(1) Change from fair value measurement to equity method
Where the Company originally holds an equity investment in an investee over which it has no control joint control or significant influence and which is
accounted for under the financial instrument recognition and measurement standards and subsequently due to additional investment or other reasons it is
able to exercise significant influence or joint control over the investee but does not constitute control the sum of the fair value of the originally held equity
investment determined in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial
Instruments and the cost of the additional investment shall be taken as the initial investment cost for the equity method accounting.If the initial investment cost under the equity method is less than the Company’s share of the fair value of the investee’s identifiable net assets on the date
of additional investment calculated based on the new shareholding ratio after the additional investment the difference shall be adjusted against the
carrying amount of the long-term equity investment and recognized in current profit or loss as non-operating income.
(2) Change from fair value measurement or equity method to cost method
Where the Company originally holds an equity investment in an investee over which it has no control joint control or significant influence and which is
accounted for under the financial instrument recognition and measurement standards or originally holds a long-term equity investment in an associate or a
joint venture and subsequently due to additional investment or other reasons it obtains control over the investee (not under common control) the sum of
the carrying amount of the originally held equity investment and the cost of the additional investment shall be taken as the initial investment cost under the
cost method in preparing the individual financial statements.Other comprehensive income recognized before the acquisition date in respect of the originally held equity investment accounted for using the equity
method shall be accounted for upon disposal of that investment based on the same basis as if the investee had directly disposed of the related assets or
liabilities.Where the originally held equity investment before the acquisition date was accounted for in accordance with Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments the cumulative fair value changes previously recognized in other
comprehensive income shall be reclassified to profit or loss when changing to the cost method.
(3) Change from Equity Method to Fair Value Measurement
If the Company loses joint control or significant influence over an investee due to partial disposal of an equity investment or other reasons the remaining
equity investment after disposal shall be accounted for under Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of
Financial Instruments. The difference between the fair value of the remaining investment on the date of losing joint control or significant influence and its
carrying amount shall be recognized in current profit or loss.Other comprehensive income previously recognized in respect of the original equity investment accounted for using the equity method shall upon
termination of the equity method be accounted for based on the same basis as if the investee had directly disposed of the related assets or liabilities.
(4) Change from cost method to equity method
If the Company loses control over an investee due to partial disposal of an equity investment or other reasons and the remaining equity investment after
disposal is able to exercise joint control or significant influence over the investee the Company shall change to the equity method in preparing the
individual financial statements. The remaining equity investment shall be adjusted as if the equity method had been applied from the date of its initial
acquisition.
1392025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(5) Change from cost method to fair value measurement
If the Company loses control over an investee due to partial disposal of an equity investment or other reasons and the remaining equity investment after
disposal does not enable the Company to exercise joint control or significant influence over the investee the Company shall account for the remaining
investment in accordance with Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments in
preparing the individual financial statements. The difference between the fair value of the remaining investment on the date of losing control and its
carrying amount shall be recognized in current profit or loss.
4. Disposal of long-term equity investments
Upon disposal of long-term equity investments the difference between the carrying amount and actual disposal proceeds is recognized in
current profit or loss. For long-term equity investments accounted for under the equity method the portion originally recognized in other
comprehensive income shall be reclassified to profit or loss proportionately on the same basis as if the relevant assets or liabilities were directly disposed
of by the investee.Transactions involving disposal of equity interests in subsidiaries are accounted for as a basket transaction if one or more of the following conditions are
met:
(1) The transactions are entered into simultaneously or with mutual consideration;
(2) The transactions as a whole achieve a complete commercial outcome;
(3) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(4) A single transaction is uneconomical on its own but economical when combined with others.
If loss of control over an existing subsidiary arises from partial disposal of equity investment and the transactions are not basket transactions accounting
treatment shall be made separately in the separate financial statements and consolidated financial statements:
(1) In the separate financial statements the difference between the carrying amount of the disposed equity interest and the actual consideration received is
recognized in profit or loss for the current period. Where the remaining equity interest after disposal enables the Company to exercise joint control or
significant influence over the investee such remaining interest shall be subsequently accounted for under the equity method and adjusted as if the equity
method had been applied since the initial acquisition. Where the remaining equity interest after disposal does not enable the Company to exercise joint
control or significant influence over the investee it shall be accounted for in accordance with Accounting Standards for Business Enterprises No. 22 -
Recognition and Measurement of Financial Instruments. The difference between its fair value and carrying amount at the date of loss of control is
recognized in profit or loss for the current period.
(2) In the consolidated financial statements for transactions occurring prior to the loss of control over a subsidiary the difference between the disposal
consideration and the Company’s corresponding share of the subsidiary’s net assets continuously calculated from the acquisition date or combination date
shall be adjusted against capital reserve (share premium); where the capital reserve is insufficient to offset the difference retained earnings shall be
adjusted accordingly. Upon loss of control over the subsidiary the remaining equity interest shall be remeasured at its fair value on the date when control
is lost. The difference between the sum of the consideration received for the disposed equity interest plus the fair value of the remaining equity interest
and the Company’s original share of the net assets of the former subsidiary continuously calculated from the acquisition date based on the original
shareholding ratio shall be recognized as investment income in the period when control is lost and goodwill shall be written down simultaneously. Other
comprehensive income arising from the original equity investment in the subsidiary shall be reclassified to investment income in the period when control
is lost.Where a series of transactions involving the disposal of equity interests in a subsidiary result in the loss of control and such transactions constitute a
basket transaction the transactions shall be accounted for as a single transaction that results in the disposal of the subsidiary and loss of control with
separate accounting treatment applied in the separate financial statements and consolidated financial statements respectively:
(1) In the separate financial statements the difference between the disposal consideration and the carrying amount of the long-term equity investment
attributable to the disposed equity interest in each transaction prior to the loss of control shall be recognized in other comprehensive income and shall be
reclassified in full to profit or loss in the period when control is lost.
(2) In the consolidated financial statements the difference between the disposal consideration in each transaction prior to the loss of control and the
Company’s share of the subsidiary’s net assets attributable to the disposed investment shall be recognized in other comprehensive income and shall be
reclassified in full to profit or loss in the period when control is lost.
5. Judgment criteria for joint control and significant influence
The Company is deemed to jointly control an arrangement with other parties if the arrangement is collectively controlled by the Company and other parties
in accordance with agreements and decisions on activities that significantly affect the returns of the arrangement require unanimous consent of the parties
sharing control. Such arrangement is a joint arrangement.Where a joint arrangement is structured through a separate vehicle the separate vehicle shall be classified as a joint venture and accounted for using the
equity method if the Company has rights to the net assets of the separate vehicle in accordance with the relevant agreements. If the Company is not entitled
to the net assets of the separate vehicle under the relevant agreements the separate vehicle shall be classified as a joint operation. The Company shall
recognize its share of assets liabilities revenue and expenses arising from the joint operation and conduct accounting treatment in accordance with the
provisions of the relevant enterprises accounting standards.Significant influence means the investor has the power to participate in the financial and operating policy decisions of the investee but cannot control or
jointly control such policies with other parties. The Company judges the existence of significant influence by considering one or more of the following
circumstances together with all relevant facts: (1) Appointing representatives to the board of directors or similar governing body of the investee; (2)
Participating in the formulation of the investee’s financial and operating policies; (3) Conducting material transactions with the investee; (4) Sending
management personnel to the investee; (5) Providing key technical information to the investee.
21. Investment Property
Measurement Model of Investment Property
Measured under the cost model
Depreciation and amortization method
Investment properties refer to land use rights leased out land use rights held for capital appreciation and buildings leased out held to earn rental
income capital appreciation or both. In addition vacant buildings held for operating lease are classified as investment properties if the board of directors
has made a written resolution confirming the intention to lease for operating purposes with no short-term change in holding intention.Investment properties are initially measured at cost. The cost of purchased investment properties includes purchase price relevant taxes and other
expenditures directly attributable to the asset. The cost of self-constructed investment properties consists of necessary expenditures incurred until the asset
reaches its intended usable condition.
1402025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
The Company adopts the cost model for subsequent measurement of investment properties. Buildings and land use rights are depreciated or
amortized based on estimated useful life and net residual value rate. The estimated useful life net residual value rate and annual depreciation (amortization)
rate are as follows:
Category Estimated Useful Life (Year) Estimated Net Residual Value Rate (%) Annual Depreciation (Amortization) Rate (%)
Land Use Right Legal usable life of land right 1/ Legal usable life*100
Buildings 20 5-10 4.50-4.75
For impairment test and provision method of investment properties please refer to Note 27 Impairment of Long-term Assets.When an investment property is reclassified for owner-occupation the Company shall transfer such investment property to property plant and
equipment or intangible assets as from the date of change. When an owner-occupied property is reclassified to generate rental income or capital
appreciation the Company shall transfer the relevant property plant and equipment or intangible assets to investment property as from the date of change.Upon reclassification the carrying amount immediately before the transfer is taken as the carrying amount after conversion.An investment property shall be derecognized when it is disposed of or permanently withdrawn from use and no future economic benefits are
expected to arise from its disposal. The amount derived from the disposal proceeds of investment properties through sale transfer retirement or damage
after deducting their carrying amounts and relevant taxes and fees shall be recognized in the current profit or loss.
22. Fixed assets
(1) Recognition Criteria
Fixed assets represent tangible assets held for the production of goods provision of services rental or administrative purposes with a useful life exceeding
one accounting year. Fixed assets shall be recognized when all the following conditions are satisfied simultaneously:
* It is probable that future economic benefits associated with the item will flow to the Company;
* The cost of the item can be measured reliably.
(2) Initial Measurement
The Company initially measures fixed assets at cost.* The cost of purchased fixed assets includes the purchase price import duties and other relevant taxes and fees as well as other expenditures directly
attributable to bringing the asset to its intended usable condition.* The cost of self-constructed fixed assets consists of all necessary expenditures incurred until the asset reaches its intended usable condition.* Fixed assets contributed by investors are carrying amount stipulated in the investment contract or agreement; where the contractual or agreed value is
not fair the assets shall be measured at fair value.* Where payment for the purchase of property plant and equipment is deferred beyond normal credit terms and the arrangement is essentially of a
financing nature the cost of the asset is determined based on the present value of the total purchase consideration. The difference between the total amount
paid and the present value of the purchase consideration except for the portion eligible for capitalization shall be recognized in profit or loss over the
credit period.
(3) Subsequent Measurement and Disposal
* Depreciation of Fixed Assets
Depreciation of fixed assets is calculated based on their carrying amount minus estimated net residual value over their estimated useful lives. For fixed
assets with impairment provisions recognized depreciation expense for future periods is determined according to the carrying amount after deducting
impairment provisions and the remaining useful life. Fixed assets that have been fully depreciated but are still in use shall not be subject to further
depreciation.The Company determines the useful lives and estimated net residual values of fixed assets based on their nature and usage. At the end of each year the
useful lives estimated net residual values and depreciation methods of fixed assets are reviewed. If any changes from previous estimates are identified
appropriate adjustments are made.The depreciation methods useful lives and annual depreciation rates for various categories of fixed assets are as follows:
Category Depreciation method Depreciationperiod (Years) Residual value rate (%)
Annual depreciation
rate (%)
Buildings and structures Straight-line method 20 5-10 4.50-4.75
Machinery and equipment Straight-line method 6-13 5-10 6.92-15.83
Transportation equipment Straight-line method 5 5-10 18.00-19.00
Electronic equipment Straight-line method 5 5-10 18.00-19.00
Office equipment Straight-line method 5 5-10 18.00-19.00
Other equipment Straight-line method 5 5-10 18.00-19.00
* Subsequent Expenditures of Fixed Assets
Subsequent expenditures related to fixed assets that meet the recognition criteria for fixed assets are included in the cost of the fixed assets; those that do
not meet the recognition criteria are recognized in profit or loss as incurred.* Impairment of Fixed Assets
For the impairment testing method and provision accrual method of fixed assets please refer to Note 27 Impairment of Long-term Assets.* Disposal of Fixed Assets
A fixed asset shall be derecognized when it is disposed of or when no future economic benefits are expected to be generated from its use or disposal. The
amount of disposal proceeds from the sale transfer retirement or damage of a fixed asset after deducting its carrying amount and related taxes and
expenses is recognized in profit or loss.
23． Construction in progress
The Company shall comply with the disclosure requirements in the chemical industry set forth in the Self-Regulatory Guidelines No. 3 for Companies
Listed on the Shenzhen Stock Exchange – Industry Information Disclosure.Construction in progress carried out by the Company is measured at actual cost. The actual cost consists of all necessary expenditures incurred before the
asset is ready for its intended use including costs of construction materials labor costs relevant taxes and fees paid borrowing costs eligible for
capitalization and allocable indirect expenses.For a construction in progress project the total expenditures incurred before the asset is ready for its intended use are recognized as the initial carrying
value of the related fixed asset. Where a self-constructed project under construction is ready for its intended use but the final settlement has not yet been
1412025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
completed it shall be transferred to fixed assets at an estimated value based on project budget construction cost or actual project cost starting from the
date when it is ready for its intended use and depreciation shall be provided in accordance with the Company’s fixed asset depreciation policy. After the
completion of final settlement the original estimated value shall be adjusted according to the actual cost while the depreciation already accrued shall not
be adjusted.For the impairment testing method and provision accrual method of construction in progress please refer to Note 27 Impairment of Long-term Assets.
24. Borrowing Costs
(1) Recognition principle for capitalization of borrowing costs
Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production of assets meeting capitalization
conditions shall be capitalized and included in the cost of the relevant asset. All other borrowing costs shall be recognized as expenses in profit or loss for
the period in which they are incurred.An asset meeting capitalization conditions refers to a fixed asset investment property inventory and other assets that necessarily take a substantial period
of time to get ready for their intended use or sale through acquisition construction or production activities.Capitalization of borrowing costs shall commence when all the following conditions are satisfied simultaneously:
* Asset expenditure has been incurred including expenditures for the acquisition construction or production of an asset meeting capitalization conditions
in the form of cash payment transfer of non-monetary assets or incurrence of interest-bearing liabilities;
* Borrowing costs have been incurred;
* Necessary acquisition construction or production activities to prepare the asset for its intended use or sale have commenced.
(2) Capitalization period of borrowing costs
The capitalization period refers to the period from the commencement date to the cessation date of borrowing cost capitalization excluding any period
during which capitalization is suspended.When the purchase construction or production of assets meeting capitalization conditions reaches the intended usable or saleable state capitalization of
borrowing expenses shall cease.When partial items of assets under purchase construction or production that meet capitalization conditions are completed separately and can be used
independently capitalization of borrowing expenses for such partial assets shall cease.If each part of the purchased constructed or produced asset is completed separately but can only be used or sold externally after the overall completion
capitalization of borrowing expenses shall cease upon the overall completion of the asset.
(3) Suspension period of capitalization
If an abnormal interruption occurs during the purchase construction or production of assets meeting capitalization conditions and the interruption lasts for
more than 3 consecutive months capitalization of borrowing expenses shall be suspended; if such interruption is a necessary procedure for the purchased
constructed or produced assets meeting capitalization conditions to reach the intended usable or saleable state capitalization of borrowing expenses shall
continue. Borrowing expenses incurred during the interruption period shall be recognized as current profit and loss and capitalization of borrowing
expenses shall resume until the purchase construction or production activities of the asset restart.
(4) Calculation method for capitalized amount of borrowing expenses
Interest expenses of special borrowings (deducting interest income obtained from depositing unused borrowing funds in banks or investment income
obtained from temporary investment) and their auxiliary expenses shall be capitalized before the purchased constructed or produced assets meeting
capitalization conditions reach the intended usable or saleable state.The interest amount to be capitalized for general borrowings is determined by multiplying the weighted average of asset expenditures exceeding special
borrowings by the capitalization rate of occupied general borrowings. The capitalization rate is determined based on the weighted average interest rate of
general borrowings.If there is discount or premium on borrowings the amount of discount or premium to be amortized in each accounting period shall be determined in
accordance with the effective interest rate method to adjust the interest amount of each period.
25. Right-of-Use Assets
The Company initially measures right-of-use assets at cost and such cost includes:
* The initial measurement amount of lease liabilities;
* Lease payments paid on or before the commencement date of the lease; if there are lease incentives deduct the relevant amount of lease incentives
already enjoyed;
* Initial direct expenses incurred by the Company;
* Costs expected to be incurred by the Company for dismantling and removing the leased asset restoring the site where the leased asset is located or
restoring the leased asset to the state agreed in the lease terms (excluding costs incurred for the production of inventories).After the commencement date of the lease the Company adopts the cost model for subsequent measurement of right-of-use assets.If it can be reasonably determined that ownership of the leased asset will be obtained upon the expiration of the lease term the Company shall accrue
depreciation within the remaining useful life of the leased asset. If it cannot be reasonably determined that ownership of the leased asset will be obtained
upon the expiration of the lease term the Company shall accrue depreciation within the shorter period of the lease term and the remaining useful life of the
leased asset. For right-of-use assets for which impairment provisions have been accrued depreciation shall be accrued in future periods with reference to
the above principles based on the carrying value after deducting impairment provisions.The Company determines whether impairment has occurred to right-of-use assets in accordance with the provisions of Accounting Standards for Business
Enterprises No. 8 – Asset Impairment and conducts accounting treatment for identified impairment losses. For details please refer to Note (27)
Impairment of Long-term Assets.
26. Intangible Assets
(1) Initial Measurement
Intangible assets refer to identifiable non-monetary assets without physical substance owned or controlled by the Company including land use rights
patents and non-patented technologies.The cost of externally purchased intangible assets includes the purchase price relevant taxes and fees and other expenditures directly attributable to
bringing the asset to its intended use. If the payment for intangible assets is deferred beyond normal credit terms and is essentially of a financing nature
the cost of the intangible asset is determined based on the present value of the purchase price.Intangible assets obtained through debt restructuring from the debtor for debt settlement shall be measured at fair value for initial recognition; the
difference between the carrying value of the restructured debt and the fair value of the intangible asset used for debt settlement shall be included in current
profit and loss.Under the premise that the non-monetary asset exchange has commercial substance and the fair value of the asset exchanged in or the asset exchanged out
can be reliably measured the intangible asset acquired in the non-monetary asset exchange is based on the fair value of the asset exchanged out to
determine its recorded value unless there is conclusive evidence that the fair value of the asset exchanged in is more reliable; for a non-monetary asset
exchange that does not satisfy the above premise the carrying amount of the asset exchanged out and the relevant taxes payable are used as the cost of the
intangible asset exchanged in and no gain or loss is recognized.
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Intangible assets obtained through business merger under the same control shall be recognized at the carrying value of the merged party. Intangible assets
obtained through business merger under different controls shall be recognized at fair value.The cost of internally self-developed intangible assets includes: materials consumed in developing the intangible asset labor costs registration fees
amortization of other patents and franchises used in the development process interest expenses meeting capitalization conditions and other direct
expenses incurred before bringing the intangible asset to its intended use.
(2) Subsequent Measurement
The Company analyzes and judges the useful life when acquiring intangible assets and classifies them into intangible assets with finite useful life and
intangible assets with indefinite useful life.* Intangible assets with finite useful life
For intangible assets with finite useful life they shall be amortized by the straight-line method within the period of bringing economic benefits to the
enterprise. The estimated useful life and basis of intangible assets with finite useful life are as follows:
Item Expected useful life Basis
Determine the service life based on the period during which it provides
Software 10 years economic benefits to the Company
Land use rights 50 years Legal use period
Determine the service life based on the period during which it provides
Patent rights 10 years economic benefits to the Company
Determine the service life based on the period during which it provides
Non-proprietary technology 10 years economic benefits to the Company
At the end of the period the useful life and amortization method of intangible assets with finite useful life shall be reviewed and adjusted when necessary.* Intangible assets with indefinite useful life
If the period during which intangible assets bring economic benefits to the enterprise cannot be foreseen they shall be regarded as intangible assets with
indefinite useful life.At the end of the period the useful life of intangible assets with indefinite useful life shall be reviewed. If there is evidence showing that the period for
such intangible assets to bring economic benefits to the enterprise is foreseeable its useful life shall be estimated and amortized in accordance with the
amortization policy for intangible assets with finite useful life.For the impairment test method and impairment provision accrual method of intangible assets please refer to Note 27 Long-term Asset Impairment.
(3) Specific Criteria for Dividing the Research Stage and Development Stage of Internal Research and
Development Projects of the Company
Research Stage: The stage of original and planned investigation and research activities carried out to acquire and understand new scientific or technical
knowledge.Development Stage: The stage of applying research achievements or other knowledge to a certain plan or design before commercial production or use so
as to produce new or substantially improved materials devices and products.Expenditures in the research stage of internal research and development projects shall be included in current profit and loss when incurred.
(4) Specific Criteria for Capitalization of Expenditures in the Development Stage
Expenditures in the development stage of internal research and development projects shall be recognized as intangible assets when all of the following
conditions are simultaneously met:
* It is technically feasible to develop the intangible asset to the point where it can be used or sold;
* It aims to complete the intangible asset for use or sale;
* The manner in which the intangible asset generates economic benefits including demonstrating the existence of a market for the products created using
the asset or for the asset itself. It also involves confirming that the intangible asset will be used internally and providing evidence of its usefulness;
* It possesses adequate technical financial and other resources to complete the development of the intangible assets and has the capacity to effectively
utilize or sell them;
* The costs associated with the development stage of the intangible asset can be reliably determined.Expenditures in the development stage that do not meet the above conditions shall be included in current profit and loss when incurred. If research stage
expenditures and development stage expenditures cannot be distinguished all incurred research and development expenditures shall be included in current
profit and loss. The cost of intangible assets formed by internal development activities only includes the total expenditures incurred from the time of
meeting capitalization conditions to the time before the intangible asset reaches its intended use. The expenditures of the same intangible asset that have
been expensed and included in profit and loss before meeting capitalization conditions during the development process shall not be adjusted again.
27. Impairment of long-term assets
The Company checks at each balance sheet date whether there are signs of possible impairment on long-term equity investment investment property
measured by cost method fixed assets construction in progress intangible assets with definite useful life and other assets. If there are impairment signs on
long-term assets the recoverable amount shall be estimated on the basis of individual asset; if it is difficult to estimate the recoverable amount of a single
asset the recoverable amount of the asset group shall be determined on the basis of the asset group to which the asset belongs.The estimation of the asset recoverable amount is determined based on the higher of the net fair value minus disposal costs and the present value of
the asset’s estimated future cash flows.If the measurement result of the recoverable amount indicates that the recoverable amount of a long-term asset is lower than its carrying value the
carrying value of the long-term asset shall be written down to the recoverable amount. The written-down amount shall be recognized as asset impairment
loss and included in current profit and loss and the corresponding asset impairment provision shall be accrued at the same time. Once an asset impairment
loss is recognized it shall not be reversed in subsequent accounting periods.After the recognition of asset impairment loss the depreciation or amortization expense of the impaired asset shall be adjusted accordingly in future
periods so that the adjusted carrying value of the asset (less estimated net residual value) can be systematically allocated within the remaining useful life
of the asset.Goodwill arising from business combination and intangible assets with indefinite useful life shall be subject to impairment test every year regardless
of whether there are impairment signs.When conducting impairment test on goodwill the carrying value of goodwill shall be allocated to the asset group or combination of asset groups
expected to benefit from the synergy effect of business combination. When conducting impairment test on the relevant asset group or combination of asset
groups containing goodwill if there are impairment signs on the asset group or combination of asset groups related to goodwill firstly conduct impairment
test on the asset group or combination of asset groups without goodwill calculate the recoverable amount compare it with the relevant carrying value and
confirm the corresponding impairment loss. Then conduct impairment test on the asset group or combination of asset groups containing goodwill compare
the carrying value of these relevant asset groups or combination of asset groups (including the allocated carrying value of goodwill) with their recoverable
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amount. If the recoverable amount of the relevant asset group or combination of asset groups is lower than its carrying value the impairment loss of
goodwill shall be confirmed.
28. Long-term deferred expenses
(1) Amortization method
Long-term deferred expenses refer to various expenses incurred by the Company but to be borne by the current period and subsequent periods with an
amortization period of more than one year. Long-term deferred expenses shall be amortized in installments by the straight-line method within the benefit
period.
(2) Amortization period
Item Amortization period Remark
Technical services fee Agreed in the contract
Renovation fee 3 to 5 years
Power grid access fee 10 years
Software system implementation fee 5 years
29. Contract liabilities
The Company recognizes the obligation to transfer goods to customers for the consideration received or receivable from customers as contract liabilities.
30. Employee compensation
(1) Accounting treatment method of short-term compensation
Employee compensation refers to all forms of remuneration the Company provides in exchange for employees’ services or upon the termination of
employment. This includes short-term compensation post-employment benefits termination benefits and other long-term employee benefits.Short-term compensation refers to employee compensation that the Company needs to pay in full within twelve months after the end of the annual
reporting period in which employees provide relevant services excluding post-employment benefits and termination benefits. The Company recognizes
the payable short-term benefits as liabilities in the accounting period when employees provide services and includes them in the cost of relevant assets and
expenses according to the beneficiary objects of the services provided by employees.
(2) Accounting treatment method of post-employment benefits
Post-employment benefits refer to various forms of remuneration and benefits provided by the Company after employees retire or terminate labor
relations with the enterprise for obtaining services provided by employees excluding short-term benefits and termination benefits.All post-employment benefit plans of the Company are defined contribution plans.The post-employment benefit defined contribution plans mainly include participation in basic endowment insurance unemployment insurance and
other social insurance organized and implemented by local labor and social security institutions. In the accounting period when employees provide services
for the Company the payable contribution amount calculated according to the defined contribution plan shall be recognized as liabilities and included in
current profit and loss or the cost of relevant assets.After the Company regularly pays the above amounts in accordance with national prescribed standards and annuity plans there shall be no other
payment obligations.
(3) Accounting treatment for termination benefits
Termination benefits refer to the compensation granted by the Company to employees when the Company terminates the labor relationship with
employees before the expiration of their labor contracts or encourages employees to voluntarily accept redundancy. The liability arising from the
compensation for termination of labor relationships with employees shall be recognized at the earlier of the date when the Company can no longer
unilaterally withdraw the labor relationship termination plan or redundancy proposal and the date when the costs and expenses related to the restructuring
involving the payment of termination benefits are recognized and shall be included in the current profit or loss simultaneously.The Company provides early retirement benefits to employees who accept the internal retirement arrangement. Early retirement benefits refer to
salaries paid and social insurance premiums contributed by the Company to employees who have not reached the statutory retirement age and voluntarily
leave their posts upon approval by the Company’s management. The Company shall pay internal retirement benefits to eligible employees from the
commencement date of the internal retirement arrangement until the employees reach the normal retirement age. For early retirement benefits the
Company shall apply accounting treatment by reference to termination benefits. When the relevant recognition conditions for termination benefits are
satisfied the estimated salaries to be paid and social insurance premiums to be contributed for early retirement employees from the date when employees
cease to provide services to the date of normal retirement shall be recognized as liabilities and included in the current profit or loss in a lump sum.Differences arising from changes in actuarial assumptions and adjustments to benefit standards of early retirement benefits shall be included in the current
profit or loss when incurred.
(4) Accounting treatment for other long-term employee benefits
Other long-term employee benefits refer to all employee benefits other than short-term employee benefits post-employment benefits and termination
benefits.For other long-term employee benefits that meet the conditions of defined contribution plans the amount payable shall be recognized as a liability
and included in the current profit or loss or the cost of related assets during the accounting period in which employees render services to the Company. For
other long-term employee benefits other than the above circumstances an independent actuary shall conduct actuarial valuation using the projected unit
credit method at the balance sheet date. The benefit obligations arising from defined benefit plans shall be attributed to the periods during which
employees render services and shall be included in the current profit or loss or the cost of related assets.
31. Estimated Liabilities
(1) Recognition criteria of estimated liabilities
When an obligation arising from contingent events such as product quality guarantees is a present obligation of the Company it is probable that an outflow
of economic benefits will be required to settle the obligation and the amount of the obligation can be reliably measured such obligation shall be
recognized as a provision.
(2) Measurement of estimated liabilities
The Company initially measures provisions at the best estimate of the expenditure required to settle the relevant present obligations.When determining the best estimate the Company comprehensively takes into account factors such as risks uncertainties and the time value of money
associated with contingent events. Where the impact of the time value of money is material the best estimate is determined by discounting the relevant
future cash outflows.The best estimate shall be dealt with in accordance with the following circumstances:
If the required expenditure falls within a continuous range (or interval) and all possible outcomes within such range are equally probable the best estimate
shall be determined as the midpoint of the range namely the average amount of the upper and lower limits.If the required expenditure does not fall within a continuous range (or interval) or falls within a continuous range but the probabilities of various outcomes
within such range are not identical: where the contingent event involves a single item the best estimate shall be determined based on the most probable
1442025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
amount; where the contingent event involves multiple items the best estimate shall be determined by reference to all possible outcomes and their relevant
probabilities.Where all or part of the expenditure required to settle a provision is expected to be reimbursed by a third party the reimbursement is recognized as a
separate asset when it is virtually certain to be received. The amount recognized for the reimbursement shall not exceed the carrying amount of the
provision.
32. Lease liabilities
The Company initially measures lease liabilities at the present value of the unpaid lease payments at the commencement date of the lease. When
calculating the present value of lease payments the Company adopts the interest rate implicit in the lease as the discount rate; if the interest rate implicit in
the lease cannot be determined the Company adopts its incremental borrowing rate as the discount rate. Lease payments include:
* .Fixed payments and in-substance fixed payments less the amount of lease incentives;
* .Variable lease payments that are dependent on an index or a rate;
* .The exercise price of the purchase option where the Company is reasonably certain to exercise such option;
* .Where the lease term reflects that the Company will exercise a termination option the lease payments include the payments required to exercise the
termination option;
* .Amounts expected to be paid based on the residual value guaranteed by the Company.The Company calculates the interest expense on the lease liability for each period during the lease term using a fixed discount rate and recognizes it in
profit or loss for the current period or as part of the cost of the relevant asset.Variable lease payments not included in the measurement of the lease liability shall be recognized in profit or loss for the current period or as part of the
cost of the relevant asset when they actually occur.
33. Share-based payments
(1) Categories of share-based payments
The Company classifies share-based payments into equity-settled share-based payments and cash-settled share-based payments.
(2) Method for determining the fair value of equity instruments
For options and other equity instruments granted that have an active market their fair value is determined based on the quoted price in the active market.For options and other equity instruments granted that do not have an active market their fair value is determined using an option pricing model etc. The
selected option pricing model takes into account the following factors:* exercise price of the option;* term of the option; * current price of the
underlying shares; * expected volatility of the share price;* expected dividends on the shares; * risk-free interest rate during the term of the option.When determining the fair value of equity instruments at the grant date the Company considers the impact of market conditions and non-vesting
conditions among the vesting conditions stipulated in the share-based payment agreements. Where non-vesting conditions exist for share-based payments
the corresponding costs and expenses for services received shall be recognized as long as employees or other parties satisfy all non-market conditions
(such as service periods) among the vesting conditions.
(3) Basis for determining the best estimate of exercisable equity instruments
On each balance sheet date during the vesting period the Company shall make the best estimate and revise the estimated number of exercisable equity
instruments based on the latest subsequent information such as changes in the number of eligible employees. On the exercisable date the final estimated
number of exercisable equity instruments shall be consistent with the actual exercisable quantity.
(4) Accounting treatment methods
* Accounting treatment of share-based payments settled by equity and settled by cash
A share-based payment settled by equity instruments shall be measured at the fair value of the equity instruments granted to employees. If the equity
instruments are immediately exercisable upon grant the fair value of the equity instruments shall be recognized into relevant costs or expenses on the grant
date with a corresponding increase in capital reserve. If the equity instruments can only be exercised upon completion of services within the vesting period
or satisfaction of specified performance conditions on each balance sheet date during the vesting period based on the best estimate of the number of
exercisable equity instruments and at the fair value of the equity instruments on the grant date the services obtained in the current period shall be
recognized into relevant costs or expenses and capital reserve. No further adjustment shall be made to the recognized relevant costs or expenses and the
total owner’s equity after the exercisable date.A share-based payment settled in cash shall be measured at the fair value of the liabilities borne by the Company which are determined on the basis of
shares or other equity instruments. If the share-based payment is immediately exercisable upon grant the fair value of the liabilities borne by the Company
shall be recognized into relevant costs or expenses on the grant date with a corresponding increase in liabilities. For cash-settled share-based payment that
can only be exercised after completion of services within the vesting period or satisfaction of specified performance conditions on each balance sheet date
during the vesting period based on the best estimate of the exercisable status and at the fair value amount of the liabilities borne by the Company the
services obtained in the current period shall be recognized into costs or expenses and corresponding liabilities. The fair value of the liabilities shall be
remeasured on each balance sheet date prior to settlement of relevant liabilities and on the settlement date and the changes therein shall be recognized in
current profit or loss.* Accounting treatment for modifications to terms and conditions of share-based payment
For adverse modifications the Company shall treat such changes as never occurred and continue the accounting treatment for the acquired services.For favorable modifications the Company shall conduct accounting treatment in accordance with the following provisions: If the modification increases
the fair value of the granted equity instruments the enterprise shall recognize the increase in acquired services corresponding to the increase in fair value
of the equity instruments. If the modification occurs during the vesting period when recognizing the fair value of services obtained from the modification
date to the modified exercisable date it shall include both the service amount determined based on the fair value of the original equity instruments on the
grant date within the remaining original vesting period and the increase in fair value of the equity instruments. If the modification occurs after the
exercisable date the increase in fair value of the equity instruments shall be recognized immediately. If the share-based payment agreement requires
employees to complete a longer period of service to obtain the modified equity instruments the enterprise shall recognize the increase in fair value of the
equity instruments throughout the vesting period.If the modification increases the number of granted equity instruments the enterprise shall recognize the fair value of the increased equity instruments as a
corresponding increase in acquired services. If the modification occurs during the vesting period when recognizing the fair value of services obtained from
the modification date to the vesting date of the increased equity instruments it shall include both the service amount determined based on the fair value of
the original equity instruments on the grant date within the remaining original vesting period and the increase in fair value of the equity instruments.If the enterprise modifies the vesting conditions in a manner favorable to employees such as shortening the vesting period changing or canceling
performance conditions (excluding market conditions) the enterprise shall adopt the modified vesting conditions in handling vesting conditions.* Accounting Treatment for Cancellation of Share-based Payment
If the granted equity instruments are cancelled during the vesting period the Company shall treat the cancellation of the granted equity instruments as
accelerated vesting immediately recognize the amount to be confirmed in the remaining vesting period into current profit or loss and recognize capital
reserve simultaneously. Where employees or other parties can choose to satisfy non-vesting conditions but fail to satisfy them during the vesting period
the Company shall treat such circumstances as cancellation of granted equity instruments.
34. Other financial instruments such as preferred shares and perpetual bonds
In accordance with the provisions of the Financial Instruments Standards the Company classifies the issued financial instruments or their components as
financial liabilities or equity instruments upon initial recognition based on the contractual terms of financial instruments such as preferred shares and
1452025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
perpetual bonds issued as well as the economic substance reflected thereby rather than merely the legal form in combination with the definitions of
financial liabilities and equity instruments:
(1) The issued financial instruments shall be classified as financial liabilities if any of the following conditions is met:
* A contractual obligation to deliver cash or other financial assets to another party;
* A contractual obligation to exchange financial assets or financial liabilities with another party under potentially unfavorable conditions;
* A non-derivative instrument contract that will or may be settled in the entity’s own equity instruments in the future under which the entity will deliver a
variable number of its own equity instruments;
* A derivative instrument contract that will or may be settled in the entity’s own equity instruments in the future excluding a derivative instrument
contract settled by exchanging a fixed number of the entity’s own equity instruments for a fixed amount of cash or other financial assets.
(2) The issued financial instruments shall be classified as equity instruments if all of the following conditions are satisfied simultaneously:
* The financial instrument does not contain any contractual obligation to deliver cash or other financial assets to another party or to exchange financial
assets or financial liabilities with another party under potentially unfavorable conditions;
* Where the financial instrument will or may be settled with the entity’s own equity instruments in the future: if the financial instrument is a non-
derivative instrument it does not contain a contractual obligation to settle by delivering a variable number of the entity’s own equity instruments; if it is a
derivative instrument the entity shall settle the financial instrument only by exchanging a fixed number of its own equity instruments for a fixed amount of
cash or other financial assets.
(3) Accounting treatment methods
For financial instruments classified as equity instruments interest expenses or dividend distributions thereof shall be treated as profit distribution of the
issuing entity; repurchase cancellation and other transactions thereof shall be treated as changes in equity; transaction costs such as handling fees and
commissions shall be deducted from equity;
For financial instruments classified as financial liabilities interest expenses or dividend distributions thereof shall in principle be accounted for as
borrowing costs; gains or losses arising from repurchase or redemption thereof shall be recognized in profit or loss for the current period; transaction costs
such as handling fees and commissions shall be included in the initial measurement amount of the issued instruments.
35. Revenue
Disclose the accounting policies adopted for revenue recognition and measurement by business type.
(1) General principles of revenue recognition
The Company recognizes revenue at the transaction price allocated to the performance obligation when it satisfies the performance obligation under the
contract i.e. when the customer obtains control of the relevant goods or services. A performance obligation refers to a promise in a contract for the
Company to transfer distinct goods or services to a customer. Obtaining control of relevant goods means having the ability to direct the use of the goods
and obtain substantially all economic benefits therefrom.The Company assesses a contract at contract inception identifies each separate performance obligation contained in the contract and determines whether
each separate performance obligation is satisfied over time or at a point in time. A performance obligation shall be regarded as satisfied over time if any of
the following conditions is met and the Company recognizes revenue over time based on the progress of performance: * The customer simultaneously
obtains and consumes the economic benefits derived from the Company’s performance as the Company performs;* The customer can control the goods
in the course of the Company’s performance; * The goods produced by the Company in the course of performance have no alternative use to the
Company and the Company has an enforceable right to receive payment for performance completed to date throughout the contract period. Otherwise the
Company recognizes revenue at the point in time when the customer obtains control of the relevant goods or services.For performance obligations satisfied over time the Company adopts the input method to determine the appropriate progress of performance according to
the nature of goods and services. The output method determines the progress of performance based on the value of goods transferred to the customer.When the progress of performance cannot be reasonably determined if the incurred costs are expected to be recoverable the Company recognizes revenue
at the amount of costs incurred until the progress of performance can be reasonably determined.
(2) Specific Methods of Revenue Recognition
Domestic Sales: The specific revenue recognition methods of the Company are as follows: * BOPP tobacco film tobacco label and sterile packaging
products: Revenue is recognized when goods are delivered to the designated delivery location of the customer delivery is completed and evidence of
transfer of control of goods to the customer is obtained. * BOPP plain film and lithium battery separator products: Except for consignment mode revenue
is recognized when goods are delivered in the manner agreed with the customer and evidence of transfer of control of goods from the customer or the
carrier designated by the customer is obtained. Under consignment mode after the Company delivers goods to the warehouse designated by the customer
revenue is recognized at the time when the customer issues collection and settlement documents as the point of control transfer. * Specialty paper
products: Revenue is recognized when goods are delivered to the designated delivery location of the customer delivery is completed and relevant evidence
confirming that the goods meet the customer’s usage requirements is obtained.Overseas Sales: After completing export customs declaration procedures and shipping products offshore the Company recognizes revenue at the time of
obtaining customs declaration forms and other relevant export documents as the point of control transfer.Circumstances where similar businesses adopt different business models involving different revenue recognition methods and measurement methods
The Company shall comply with the disclosure requirements for the chemical industry specified in the Guideline for Self-Regulation and Supervision of
Listed Companies of Shenzhen Stock Exchange No.3 — Industry Information Disclosure.
36. Contract Cost
(1) Contract performance cost
The company recognizes as an asset the cost of performing a contract that it incurs to perform the contract that is outside the scope of accounting standards
for enterprises other than revenue standards and that simultaneously meets the following conditions:
* The cost is directly related to a current or expected contract including direct labor direct materials manufacturing costs (or similar) costs that are
clearly attributable to the customer and other costs that are incurred solely as a result of the contract;
* The cost increases the resources that the enterprise will use to fulfill its performance obligations in the future;
* The cost is expected to be recovered.The asset is presented in inventory or other non-current assets based on whether the amortization period at initial recognition exceeds a normal operating
cycle.
(2) Contract acquisition cost
Incremental costs incurred by the company in obtaining a contract that are expected to be recovered are recognized as contract acquisition costs as an asset.Incremental costs are costs that the company would not have incurred without obtaining a contract such as sales commissions. Where the amortization
period does not exceed one year it is included in the current profit or loss when incurred.
(3) Amortization of contract costs
The above assets relating to contract costs are amortized at the point in time when the performance obligation is satisfied or in accordance with the
progress of the performance obligation on the same basis as the recognition of income from goods or services relating to the asset and are included in the
1462025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
profit or loss of the current period.
(4) Impairment of contract costs
Where the carrying value of the above assets relating to contract costs is higher than the difference between the remaining consideration expected to be
obtained by the Company from the transfer of the commodities related to the assets and the cost estimated to be incurred for the transfer of the related
commodities the excess shall be provided for impairment and recognized as an asset impairment loss.After the provision for impairment is made if the difference between the above two items is higher than the carrying amount of the asset due to changes in
the factors of impairment in previous periods the original provision for impairment of the asset is reversed and included in the current profit or loss but
the carrying amount of the asset after the reversal does not exceed the carrying amount of the asset on the reversal date assuming no provision for
impairment is made.
37. Government subsidies
(1) Classification
Government subsidies refer to monetary and non-monetary asset received from the government without compensation. Government subsidies are divided
into subsidies related to assets and subsidies related to revenue.According to the subsidy object stipulated in the documents of relevant government government subsidies are divided into subsidies related to assets and
subsidies related to revenue. Government subsidies obtained by the Company for the acquisition construction or other formation of long-term assets are
defined as government subsidies related to assets; all other government subsidies are defined as government subsidies related to income. If the government
document does not clearly specify the grant object the grant funds shall be classified into government subsidies related to income and government
subsidies related to assets in the following manners:* If the government document specifies a specific project targeted by the subsidies classification
shall be made according to the relative proportion of expenditure amount forming assets and expenditure amount charged to expenses in the budget of the
specific project; such classification proportion shall be reviewed at each balance sheet date and revised when necessary;* If the government document
only gives a general description of the purpose without specifying a specific project the subsidies shall be regarded as government subsidies related to
income.
(2) Recognition of government subsidies
Where evidence shows that the company complies with relevant conditions of policies for financial supports and are expected to receive funds at the end
of the period the amount receivable is recognized as the government subsidies. Otherwise the government subsidy is recognized upon receipt.Government subsidies in the form of monetary assets are stated at the amount received or receivable. Government subsidies in the form of non-monetary
assets are measured at fair value; if fair value cannot be reliably obtained a nominal amount (RMB1) is used. Government subsidies that are measured at
nominal amount shall be recognized in profit or loss for the period directly.
(3) Accounting treatment
The Company determines whether a class of government subsidy business should be accounted for using the gross method or the net method based on the
substance of the economic business. Generally the company selects only one approach for same or similar government-subsidized business and applies
that approach consistently to that business.Government subsidies related to assets should be written down against the carrying amount of the related assets or recognized as deferred income.Government subsidies relating to assets that are recognized as deferred income are credited to profit or loss in a reasonable and systematic manner over the
useful lives of the assets constructed or purchased.Government subsidies related to revenue aimed at compensating for relevant expenses or losses to be incurred by the enterprise in subsequent periods are
recognized as deferred income once received and are recognized in the current profit or loss or offset against related costs in the periods when relevant
expenses or losses are recognized. Government subsidies aimed at compensating for relevant expenses or losses the enterprise that are already incurred are
directly included in the current profit or loss or offset against related costs once received.Government subsidies related to daily activities of enterprises are included in other income or offset against related costs and expenses; government
subsidies that are not related to daily activities of enterprises are included in non-operating income and expenditure.The government subsidy related to the discount interest received from policy-related preferential loans offsets the relevant borrowing costs; if the policy-
based preferential interest rate loan provided by the lending bank is obtained the borrowing amount actually received shall be taken as the recording value
of the borrowings and borrowing cost should be calculated using the preferential interest rate according to the loan principal and the policy.When it is required to return recognized government subsidy the carrying amount of the relevant assets is written down on initial recognition and the
carrying amount of the assets is adjusted. If there is relevant balance of deferred income it shall be written down to relevant book value of relevant
deferred income and the excess is included in current profit or loss; where there is no relevant deferred income it shall be directly included in current
profit or loss.
38. Deferred income tax assets / deferred income tax liabilities
Deferred income tax assets and deferred income tax liabilities are measured and recognized based on the difference (temporary difference) between the
taxable base of assets and liabilities and book value. On the balance sheet date the deferred income tax assets and deferred income tax liabilities are
measured at the applicable tax rate during the period when it is expected to recover such assets or repay such liabilities.
(1) Criteria for recognition of deferred income tax assets
The company recognizes deferred income tax assets arising from deductible temporary difference to the extent it is probably that future taxable amount
will be available against which the deductible temporary difference can be utilized and deductible losses and taxes can be carried forward to subsequent
years. However the deferred income tax assets arising from the initial recognition of assets or liabilities in transactions with the following features are not
recognized:* the transaction is not a business combination; * neither the accounting profit or the taxable income or deductible losses is affected when
the transaction occurs.For deductible temporary difference in relation to investment in the associates corresponding deferred income tax assets are recognized in the following
conditions: the temporary difference is probably reversed in a foreseeable future and it is likely that taxable income is obtained for deduction of the
deductible temporary difference in the future.
(2) Criteria for recognition of deferred income tax liabilities
The company recognizes deferred income tax liabilities on the temporary difference between the taxable but not yet paid taxation in the current and
previous periods excluding:
* temporary difference arising from the initial recognition of goodwill;
* transactions or events arising from no business combination and neither the accounting profit or the taxable income (or deductible losses) is affected
when the transaction or event occurs;
* for taxable temporary difference in relation to investment in subsidiaries or associates the time for reversal of the difference can be controlled and the
difference is probably not reversed in a foreseeable future.
(3) Deferred income tax assets and deferred income tax liabilities are presented net of offset when the following conditions are met:
* The enterprise has the legal right to settle the current income tax assets and current income tax liabilities on a net basis;
* Deferred income tax assets and deferred income tax liabilities are related to income taxes levied by the same tax administration department on the same
1472025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
taxable entity or different taxable entities however in the future period when each significant deferred income tax asset and deferred income tax liability
are transferred back the taxable entities involved intend to settle the current income tax assets and current income tax liabilities on a net basis or acquire
assets and settle debts simultaneously.
39. Leasing
(1) Separation of lease contracts
At inception of a contract the company 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 or group of identified assets for a period of time in exchange for consideration.For a contract that contains multiple separate lease components the company separates the components of the contract and accounts for each separate lease
component.
(2) Consolidation of lease contracts
Two or more contracts containing leases signed by the Company and the same counterparty or its related parties at the same or similar times are combined
into one contract for accounting purposes when one of the following conditions is met:
* The two or more contracts are signed based on an overall business purpose and constitute a package transaction the overall business purpose of which
cannot be understood if not considered as a whole.* The amount of consideration for one of the two or more contracts depends on the pricing or performance of the other contracts
* The rights to use the assets transferred by the two or more contracts taken together constitute a single lease
(3) Accounting treatment of the Company as a lessee
At the commencement date of the lease term the Company recognizes right-of-use assets and lease liabilities for leases except for short-term leases and
low-value asset leases to which simplified treatment is applied.* Short-term leases and leases of low-value assets
Short-term leases are leases that do not contain purchase options and have a lease term less than 12 months. Low-value asset leases are leases with a lower
value when the individual leased asset is a brand-new asset.* The accounting policies for right-of-use assets and lease liabilities are detailed in notes 25 and 32.
(4) Accounting treatment of the Company as a lessor
* Classification of leases
The Company classifies leases as finance leases and operating leases at the commencement date of the lease. A finance lease is a lease that transfers
substantially all the risks and rewards associated with the ownership of the leased asset and the ownership of which may or may not be transferred
eventually. Operating leases refer to leases other than finance leases.A lease is usually classified as a finance lease by the Company if one or more of the following circumstances exist:
A. At the expiration of the lease term ownership of the leased asset is transferred to the lessee.B. The lessee has an option to purchase the leased asset and the purchase price agreed is sufficiently low compared with the fair value of the leased asset at
the time the option is expected to be exercised so that it is reasonably certain that the lessee will exercise the option at the inception date of the lease.C. Although ownership of the asset does not pass the lease term represents most of the useful life of the leased asset.D. At the lease commencement date the present value of the lease receipt amount is almost equal to the fair value of the leased asset.E. The leased asset is special in nature and can only be used by the lessee if no major alterations are made.A lease may also be classified as a finance lease by the Company if one or more of the following indications exist:
A. If the lessee revokes the lease the loss to the lessor caused by the revocation is borne by the lessee.B. Gains or losses arising from fluctuations in the fair value of the residual value of the asset are attributed to the lessee.C. The lessee has the ability to continue the lease to the next period at a rent much lower than the market level.* Accounting for finance leases
At the commencement date of the lease term the Company recognizes finance lease receivables for finance leases and derecognizes assets that will be
leased.When the finance lease receivable is initially measured the sum of the unguaranteed residual value and the present value of the outstanding amount of
lease receipts at the commencement date discounted at the interest rate embedded in the lease as the recorded value of the finance lease receivable. The
amount of lease receipts includes:
A. fixed payments deduct amounts related to lease incentives and in-substance fixed payments;
B. variable lease payments that depend on an index or rate;
C. the amount of lease receipts including the exercise price of the purchase option if it is reasonably certain that the lessee will exercise the purchase option;
D. where the lease term reflects that the lessee will exercise the option to terminate the lease the lease receipt amount includes the amount to be paid by
the lessee to exercise the option to terminate the lease; and
E. the residual value of the guarantee provided to the lessor by the lessee a party related to the lessee and an independent third party with the financial
ability to meet the guaranteed obligation.The Company calculates and recognizes interest income for each period of the lease term at a fixed interest rate embedded in the lease. Variable lease
payments received that are not included in the amount of net lease investment are recognized in profit or loss when they are actually incurred.* Accounting for operating leases
The Company recognizes lease receipts from operating leases as rental income using the straight-line method or other systematic and reasonable method in
each period of the lease term; the initial direct costs incurred in connection with operating leases are capitalized and amortized over the lease term on the
same basis as rental income is recognized recognized in profit or loss in the current period; variable lease payments received in connection with operating
leases that are not included in the lease receipts are recognized in profit or loss in the current period when they are actually incurred.
40. Discontinued operations
The Company recognizes the component that meets one of the following conditions and has been disposed of or classified as held for sale and can be
separately distinguished as the component of discontinued operations:
(1) The component represents an independent major business or a separate major operating area.
(2) The component is a part of an associated plan to dispose of an independent major business or a separate major business area.
(3) The component is a subsidiary acquired for resale.
Operating profit or loss such as impairment loss and reversal amount of discontinued operations and disposal profit or loss are presented in the income
statement as gain or loss from discontinued operations.The Company lists the assets in the non-current assets held for sale or the disposal group held for sale separately from other assets in the balance sheet and
the liabilities in the disposal group held for sale separately from other liabilities. The assets in the non-current assets held for sale or the disposal group
held for sale shall not be offset against the liabilities in the disposal group held for sale and shall be presented as current asset and current liabilities
respectively. The Company presents the profit or loss from continued operations and the profit or loss from discontinued operations in the income
1482025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
statement separately. For the discontinued operations presented in the current period the Company will re-present the information originally presented as
profit or loss from continued operation in the current financial statements as profit or loss from discontinued operations in the comparable accounting
period. If the discontinued operations no longer meet the conditions for classification as held for sale the Company will re-present the information
originally presented as profit or loss from discontinued operations as profit or loss from continued operation in the comparable accounting period in the
current financial statements.
41. Hedge accounting
According to the hedging relationship the company divides hedging into fair value hedging cash flow hedging and hedging of net investments in foreign
operations.
(1) The hedge accounting method is applied for hedging instruments that meet the following conditions at the same time
* The hedging relationship consists only of qualified hedging instruments and hedged items.* At the beginning of hedging the company officially designated the hedging instrument and the hedged item and prepared written documents on the
hedging relationship the risk management strategy and objectives of the hedging.* The hedging relationship meets the requirements for hedging effectiveness.If the hedging meets the following conditions at the same time the hedging relationship is deemed to meet the requirements of hedging effectiveness:
A. There is an economic relationship between the hedged item and the hedging instrument. The economic relationship makes changes in the opposite
direction in the value of the hedging instrument and the hedged item due to their exposure to the same hedged risk.B. The effect of credit risk does not dominate the value changes arising from the economic relationship between the hedged item and the hedging
instrument.C. The hedge ratio of the hedging relationship is equal to the ratio of the quantity of hedged items actually hedged by the company to the actual quantity of
hedging instruments used to hedge them which however does not reflect an imbalance in the relative weights of hedging items and hedging instruments
which will lead to ineffective hedging and may produce accounting results that are inconsistent with the objectives of hedge accounting.
(2) Fair value hedge accounting
* Gain or loss from hedging instruments is included in profit and loss for the period. If the hedging instrument is used to hedge a non-trading equity
instrument investment (or its component) that is measured at fair value through other comprehensive income the gain or loss arising from the hedging
instrument is included in other comprehensive income.* The gain or loss of the hedged item due to the hedged risk exposure is included in profit or loss for the period and the carrying amount of the
recognized hedged item that is not measured at fair value is adjusted at the same time. If the hedged item is a financial asset (or its component) measured at
fair value through other comprehensive income the gain or loss arising from the hedged risk exposure is included in profit or loss for the period and its
carrying amount has been measured at fair value and no adjustment is required. If the hedged item is a non-trading equity instrument investment (or its
component) that the company chooses to measure at fair value through other comprehensive income the gain or loss arising from the hedged risk exposure
is included in other comprehensive income and its carrying amount has been measured at fair value and no adjustment is required.If the hedged item is an unrecognized firm commitment (or its component) the cumulative changes in fair value caused by the hedged risk exposure after
the hedging relationship is designated is recognized as an asset or liability and the related gain or loss is included in profit or loss for each respective
period. When an asset is acquired or a liability is assumed for the performance of the firm commitment the initially recognized amount of the asset or
liability is adjusted to include the accumulated changes in the fair value of the hedged item that has been recognized.* If the hedged item is a financial instrument (or its component) measured at amortized cost the adjustment to the carrying amount of the hedged item
shall be amortized according to the actual interest rate recalculated on the date when the amortization starts and included in profit or loss for the period.The amortization can start from the adjustment date but not later than the time point of termination of the adjustment to hedging gain and loss on the
hedged item. If the hedged item is a financial asset (or its component) measured at fair value through other comprehensive income the accumulated
hedging gain or loss recognized shall be amortized in the same way and included in profit or loss for the period but the carrying amount of the financial
asset (or its component) will not be adjusted.
(3) Cash flow hedge accounting
* The part of gain or loss generated by the hedging instrument that is effective in hedging is included in other comprehensive income as the cash flow
hedging reserve. The amount of cash flow hedging reserve shall be determined at the lower of absolute amounts of the following:
A. The cumulative gain or loss of the hedging instrument since the beginning of hedging;
B. The cumulative changes in the present value of estimated future cash flow of the hedged item since the beginning of hedging. The amount of cash flow
hedge reserve included in other comprehensive income in each period is the change in cash flow hedging reserve for the period.* The part of the gain or loss generated by the hedging instrument that is ineffective in hedging (that is other gain or loss after deducting other
comprehensive income) shall be included in profit or loss for the period.* The amount of cash flow hedging reserve shall be accounted for in accordance with the following requirements:
A. The hedged item is an expected transaction and the expected transaction causes the company to subsequently recognize a non-financial asset or non-
financial liability or the expected transaction of a non-financial asset or a non-financial liability forms a firm commitment applicable to fair value hedge
accounting the cash flow hedging reserve amount originally recognized in other comprehensive income shall be transferred out and included in the
initially recognized amount of the asset or liability.B. For cash flow hedges that are not involved in the previous requirement during the same period when the hedged expected cash flow affects profit and
loss the cash flow hedging reserve amount originally recognized in other comprehensive income is transferred out and included in profit and loss for the
period.C. If the cash flow hedging reserve amount recognized in other comprehensive income is a loss and all or part of the loss is not expected to be covered in
future accounting periods in such case the part that is not expected to be covered will be transferred out from other comprehensive income and included
in profit and loss for the period.
(4) Hedging of net investments in foreign operations
Hedging of a net investment in a foreign operation including a hedge of a monetary item that is accounted for as part of the net investment shall be
accounted for similarly to cash flow hedges:
* The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognized in other comprehensive income.The gain or loss of the hedging instrument in other comprehensive income shall be reclassified to profit or loss on the disposal or partial disposal of the
foreign operation.* The ineffective portion shall be recognized in profit or loss.
(5) Termination of hedge accounting
In case of any of the following circumstances the application of hedge accounting shall be terminated:
* The management objective has changed and the hedging relationship no longer meets the risk management objective;
* The hedging instrument or instruments have expired sold or terminated or executed;
* There is no longer an economic relationship between the hedged item and the hedging instrument or the effect of credit risk starts to dominate the value
changes that result from that economic relationship;
* The hedging relationship does not satisfy other conditions of undertaking hedge accounting. If rebalancing of the hedging relationship applies the
Company shall consider the rebalancing the hedging relationship first and subsequently assess whether the hedging relationship satisfies the conditions of
undertaking hedge accounting.The termination of hedge accounting may affect the hedging relationship or part of it if only part of it is affected hedge accounting still applies to the
1492025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
remaining.
(6) Option to designate a credit exposure as measured at fair value
When the credit risk exposure of a financial instrument (or its components) is managed by using a credit derivative instrument measured at fair value
through current profit and loss the financial instrument (or its components) can be designated as a financial instrument measured at fair value with its
changes included in the current profit and loss at before or after the time of initial recognition and written records shall be kept at the same time while the
following conditions shall be met simultaneously:
* The subject of the financial instrument’s credit exposure (for example the borrower or the holder of a loan commitment) matches the subject of the
credit derivative;
* The repayment level of financial instruments is consistent with the repayment level of the instruments to be delivered according to the terms of credit
derivatives.
42. Repurchase of shares
For capital reduction by means of repurchase of the shares of the Company under statutory approval the capital is reduced by the total nominal value of
the shares cancelled. The difference between the consideration paid for the repurchase of shares (including the transaction costs) and the nominal value of
the shares is adjusted in the shareholders’ equity. The excess of consideration paid over the total nominal value is adjusted in the capital reserve (share
premium) surplus reserve and retained profits in sequence. The shortfall from the total nominal value is credited to capital reserve (share premium).Prior to cancellation or transfer of shares repurchased the Company recognizes all expenditures arising from share repurchase as cost of treasury shares in
the treasury share account.Upon the transfer of treasury shares the excess of proceeds from the transfer over the cost of treasury shares is credited to capital reserve (share premium);
whereas the shortfall from the cost of treasury shares is adjusted in the capital reserve (share premium) surplus reserve and retained profits in sequence.When a company repurchases its ordinary shares to form treasury stock such treasury stock shall not participate in the company’s profit distribution and
the company shall present it as a contra-equity item under shareholders’ equity in the balance sheet.
43. Debt restructuring
(1) Recording debt restructuring obligations as a creditor
A debt restructuring in which the debt is settled by assets is derecognized when the relevant assets and the settled debt meet the conditions for
derecognition and the difference between the book value of the settled debt and the book value of the transferred assets is recognized in the current profits
and losses
A debt restructuring that converts a debt into an equity instrument is derecognized when the settled debt meets the conditions for derecognition. The equity
instrument is measured by the Company at its fair value upon initial recognition and if the fair value cannot be reliably measured it is measured at the fair
value of the settled debt. The difference between the book value of the settled debt and the amount recognized for the equity instrument is recognized in
the current profits and losses.For a debt restructuring in the form of modifying other terms the restructured debt shall be recognized and measured by the Company in accordance with
the Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments and Accounting Standards for
Business Enterprises No. 37 – Presentation of Financial Instruments.If a debt restructuring is carried out by using multiple assets to pay off debts or by means of a combination equity instruments and restructured debts shall
be recognized and measured according to the above-mentioned methods. The difference between the book value of the settled debts and the book value of
the transferred assets and the sum of the recognized amounts of the equity instruments and restructured debts shall be included in the current profits and
losses.
(2) Recording debt restructuring obligations as a creditor
For a debt restructuring in which assets are used to pay off debts assets other than the transferred financial assets are initially recognized at cost. The cost
of inventory includes the fair value of the abandoned creditors’ rights and other costs directly attributable to the assets such as taxes transportation costs
handling charges insurance premiums etc. incurred to enable the assets to reach their current position and state. The cost of an investment in an associate
or joint venture includes the fair value of the abandoned creditors’ rights and other costs directly attributable to the asset such as taxes. The cost of
investment properties includes the fair value of the abandoned creditor’s rights and other costs such as taxes that are directly attributable to the assets. The
cost of a fixed asset includes the fair value of the abandoned creditors’ rights and other costs directly attributable to the asset such as taxes transportation
costs handling charges installation costs and professional services fees incurred before making the asset available for the intended use. The cost of an
intangible asset includes the fair value of the abandoned creditors’ rights and other costs that are directly attributable to the asset such as taxes incurred
before making the asset available for the intended use. The difference between the fair value and the book value of the abandoned creditors’ rights should
be recognized in the current profits and losses
When a debt restructuring that converts debt into an equity instrument results in the Company converting creditors’ rights into an equity investment in an
associate or joint venture the Company measures the cost of its initial investment at the fair value of the abandoned creditors’ rights and other costs
directly attributable to the asset such as taxes. The difference between the fair value and the book value of the abandoned creditors’ rights is recognized in
the current profits and losses.For a debt restructuring in the form of modifying other terms the creditor’s rights restructured shall be recognized and measured by the Company in
accordance with the Accounting Standards for Business Enterprises No. 22 – Recognition and Measurement of Financial Instruments.If a debt restructuring is carried out by using multiple assets to pay off debts or by means of a combination firstly the transferred financial assets and
creditor’s rights restructured are recognized and measured in accordance with the Accounting Standards for Business Enterprises No. 22 –Recognition and
Measurement of Financial Instruments and then the net amount of the fair value of the abandoned creditors’ rights after deducting the recognized amounts
of the transferred financial assets and the creditor’s rights restructured are allocated in proportion to the fair value of each asset other than the transferred
financial assets and on this basis the cost of each asset is determined separately in accordance with the above method. The difference between the fair
value and the book value of the abandoned creditors’ rights is recognized in the current profits and losses.
44. Changes in critical accounting policies and accounting estimates
(1) Changes in critical accounting policies
□ Applicable □ Not applicable
The Company has implemented the Notice on Issues related to Financial Handling after the Implementation of the Company Law and the Law on Foreign
Investment with effect from June 27 2025. The implementation of this Notice has no material impact on the financial statements for the Reporting Period.
(2) Changes in critical accounting estimates
□ Applicable□ Not applicable
VI. Taxation
1. Main Tax Types and Tax Rates
Tax type Taxation basis Tax rate
1502025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Value added tax Sales of goods taxable sales service income intangible assets or real
(“VAT”) estate
13%9%6%
City maintenance Amount of VAT paid
7%5%1%
and construction tax
Corporate income Taxable Income
25%15%16.5%9%20%
tax
Based on 70% of the original value of the property (or rental income)
Property tax 1.2% 12%
as the tax benchmark
1512025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Explanation of disclosure for taxpayers with different corporate income tax rates
Taxpayer Income tax rate
The Company 25%
Yunnan Dexin Paper Co. Ltd.(Cancellation of this Period) 25%
Yunnan Jiechen Packaging Materials Co. Ltd. 15%
Yunnan Hongchuang Packaging Co. Ltd. 15%
Yunnan Hongta Plastic Co. Ltd. 15%
Hongta Plastic (Chengdu) Co. Ltd. 15%
Yuxi Feiermu Trading Co. Ltd. 25%
Shanghai Energy New Material Technology Co. Ltd. 15%
Zhuhai Energy New Material Technology Co. Ltd. 15%
Wuxi Energy New Material Technology Co. Ltd. 15%
Jiangxi Tonry New Energy Technology Development Co. Ltd. 15%
Jiangsu Ruijie New Material Technology Co. Ltd. 25%
Jiangxi Ruijie New Material Technology Co. Ltd. 15%
Suzhou GreenPower New Energy Materials Co. Ltd 15%
Chongqing Energy Newmi Technological Co. Ltd. 15%
Jiangxi Enpo New Material Technology Co. Ltd. 15%
Jiangxi Energy New Material Technology Co. Ltd. 25%
Jiangsu Energy New Material Technology Co. Ltd. 15%
Hunan Energy Frontier New Material Technology Co. Ltd. 25%
Yuxi Energy Frontier New Materials Co. Ltd. 25%
Ningbo Energy New Material Co. Ltd. 25%
Xiamen Energy New Material Co. Ltd. 25%
Chongqing Energy New Material Technology Co. Ltd. 15%
Hubei Energy New Material Technology Co. Ltd. 15%
Jiangsu Sanhe Battery Material Technology Co. Ltd. 25%
Hongchuang Packaging (Anhui) Co. Ltd. 25%
Shanghai Energy New Materials Research Co. Ltd. 25%
Zhuhai Economic and Technological Development Zone
Energy Technology Co. Ltd. 25%
Yuxi Energy New Material Co. Ltd. 25%
Shanghai Energy Trading Co. Ltd. 25%
Jiangsu Energy New Materials Research Co. Ltd. 25%
Shanghai Jiezhiyuan New Material Technology Co. Ltd. 25%
Shanghai Hengjieyuan New Material Technology Co. Ltd. 25%
Hainan Energy Investment Co. Ltd. 25%
Chuangxin New Material (Hong Kong) Co. Ltd. 16.5%
SEMCORPGlobalHoldingsKft. 9%
SEMCORPHungaryKft. 9%
SEMCORP Properties Kft. 9%
SEMCORP America Inc. 20%
SEMCORP Manufacturing USA LLC 20%
HONGCHUANGPACKAGINGMALAYSIASDN.BHD 24.00%
2. Preferential tax treatment
In accordance with the Announcement on Enterprise Income Tax Issues Related to the In-depth Implementation of the Western Development
Strategy (Announcement No. 12 2012 of the State Taxation Administration) the subsidiary Yunnan Jiechen Packaging Materials Co. Ltd. the subsidiary
Yunnan Hongchuang Packaging Co. Ltd. the subsidiary Yunnan Hongta Plastic Co. Ltd. the sub-subsidiary Hongta Plastic (Chengdu) Co. Ltd. and
the sub-subsidiary Chongqing Energy New Material Technology Co. Ltd. continue to enjoy the preferential tax policies for the western development
during this period. The enterprise income tax shall be paid at the reduced tax rate of 15%.According to the Enterprise Income Tax Law of the People's Republic of China (2018 Amendment) and the Notice of the Ministry of Science and
Technology the Ministry of Finance the State Taxation Administration on the Revision and Printing of the Administrative Measures for the
Recognition of High and New Technology Enterprises (Guo Ke Fa Huo [2016] No. 32) the subsidiary Shanghai Energy New Material Technology Co.Ltd. the sub-subsidiary Zhuhai Energy New Material Technology Co. Ltd. the sub-subsidiary Jiangxi Tonry New Energy Technology Development Co.Ltd. the sub-subsidiary Jiangxi Enpo New Materials Co. Ltd. the sub-subsidiary Jiangsu Energy New Material Technology Co. Ltd. the sub-subsidiary
Wuxi Energy New Material Technology Co. Ltd. the sub-subsidiary Suzhou GreenPower New Energy Materials Co. Ltd. the sub-subsidiary
Chongqing Energy Newmi Technological Co. Ltd. the sub-subsidiary Hubei Energy New Material Technology Co. Ltd. and the four tier subsidiary
Jiangxi Ruijie New Material Technology Co. Ltd. are recognized as high-tech enterprises upon application and the preferential tax rate for high-tech
enterprises shall be 15%.According to the Notice of the Ministry of Finance and the State Taxation Administration on the Policies of Value added Tax and Consumption
Tax on Exported Goods and Services the Company benefits from tax exemption offset and refund for its self-operated export goods and the tax refund rate
is mainly 13% depending on specific products. The subsidiary Yunnan Hongchuang Packaging Co. Ltd. the subsidiary Yunnan Hongta Plastic Co. Ltd.the subsidiary Shanghai Energy New Material Technology Co. Ltd. the sub-subsidiary Zhuhai Energy New Material Technology Co. Ltd. and the sub-
subsidiary Suzhou GreenPower New Energy Materials Co. Ltd. benefit from tax exemption offset and refund for their self-operated export goods. Their
tax refund rate is 13%.
1522025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
According to the Announcement on the Ministry of Finance and the State Taxation Administration on the Policy of Value added Tax Deduction for
Advanced Manufacturing Enterprises (Announcement No. 43 2023 of the Ministry of Finance and the State Taxation Administration) the
subsidiary Yunnan Hongchuang Packaging Co. Ltd. the subsidiary Yunnan Jiechen Packaging Materials Co. Ltd. the subsidiary Yunnan Hongta
Plastic Co. Ltd. the subsidiary Yunnan Dexin Paper Co. Ltd. the sub-subsidiary Hongta Plastic (Chengdu) Co. Ltd. the subsidiary Shanghai
Energy New Material Technology Co. Ltd. the sub-subsidiary Zhuhai Energy New Material Technology Co. Ltd. the sub-subsidiary Jiangxi Tonry New
Energy Technology Development Co. Ltd. the sub-subsidiary Jiangsu Energy New Material Technology Co. Ltd. the sub-subsidiary Jiangxi Enpo New
Materials Co. Ltd. the fourth tier subsidiary Jiangxi Ruijie New Material Technology Co. Ltd. the sub-subsidiary Wuxi Energy New Material Technology
Co. Ltd. the sub-subsidiary Suzhou GreenPower New Energy Materials Co. Ltd. the sub-subsidiary Chongqing Energy Newmi Technological Co.Ltd. and the sub-subsidiary Chongqing Energy New Material Technology Co. Ltd. enjoy the policy of additional tax deduction and their current
additional tax deduction amount is calculated at 5% of the deductible input tax for the current period.According to the Announcement of the Ministry of Finance the State Taxation Administration and the Department of Veterans Affairs on Further
Supporting the Entrepreneurship and Employment of Find-Jobs-on-Their-Own Retired Soldiers (Announcement No. 14 2023 of the Ministry of Finance the
State Taxation Administration and the Department of Veterans Affairs) in the event that an enterprise recruits find-jobs-on-their-own retired soldiers
signs a labor contract with them for more than one year and pays social insurance premiums in accordance with the applicable laws its value-added
tax urban maintenance and construction tax education surcharge local education surcharge and corporate income tax will be deducted in three years
from the month of signing the labor contract and paying for social insurance in a fixed amount based on the actual number of recruits and calculated
with RMB6000 per person per year which may be increased by up to 50%.According to the Announcement of the Ministry of Finance the State Taxation Administration the Ministry of Human Resources and Social Security the
Ministry of Agriculture and Rural Affairs on Taxation Policies concerning Further Supporting Key Groups' Entrepreneurship and Employment
(Announcement No. 15 2023 of the Ministry of Finance the State Taxation Administration the Ministry of Human Resources and Social Security the Ministry
of Agriculture and Rural Affairs) in the event that an enterprise recruits impoverished individuals who have been registered as unemployed for more than six
months at a public employment service agency under the Ministry of Human Resources and Social Security and hold an Employment and Entrepreneurship
Certificate or an Employment and Unemployment Registration Certificate (indicating "tax incentives for employment") and signs a labor contract with them
for a period of more than one year and pays social insurance premiums in accordance with the applicable laws its value-added tax urban maintenance and
construction tax education surcharge local education surcharge and corporate income tax will be deducted in three years from the month of signing the labor
contract and paying for social insurance in a fixed amount based on the actual number of recruits and calculated with RMB6000 per person per year which
may be increased by up to 30% as determined by the people’s governments of provinces autonomous regions and municipalities directly under
the central government based on their actual situations. The tax basis for urban maintenance and construction tax education
surcharge and local education surcharge is the value-added tax payable prior to this tax incentive.VII. Notes to Items in Consolidated Financial Statements
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 66061.33 92218.87
Bank deposit 2238081854.07 1733368264.27
Other monetary funds 667132525.30 838743097.78
Interest receivable that has not yet matured 4164405.10 1937438.61
Total 2909444845.80 2574141019.53
Including: total amount of funds deposited abroad 79090541.97 348118411.02
Other explanations:
The details of restricted monetary funds are as follows:
Item Closing balance Opening balance
Bank acceptance bill deposits 508005332.89 750566249.46
Letter of credit deposits 153607576.45 71506746.02
Letter of guarantee deposits 2889237.64 15995560.96
Deposits in bank regulated accounts 2630378.32 674541.34
Total 667132525.30 838743097.78
2. Notes receivable
(1) Notes receivable by types
Unit: RMB
Item Closing balance Opening balance
Bank acceptance 561756073.37 221135947.50
Commercial acceptance 142450484.50 149517163.37
Total 704206557.87 370653110.87
1532025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(2) Disclosure by bad debt provision methods
Unit: RMB
Closingbalance Openingbalance
Bookbalance Provision for bad debts Bookbalance Provision for bad debts
Type
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Including:
Notes 704678410.14 100.00% 471852.27 0.07% 704206557.87 373581947.50 100.00% 2928836.63 0.78% 370653110.87
receivable
with bad debt
reserve
withdrawn as
per the
portfolio of
credit risk
characteristics
Including:
Bank 561756073.37 79.72% 561756073.37 221135947.50 59.19% 221135947.50
acceptance
bill portfolio
Commercial 142922336.77 20.28% 471852.27 0.33% 142450484.50 152446000.00 40.81% 2928836.63 1.92% 149517163.37
acceptance
bill portfolio
Total 704678410.14 100.00% 471852.27 0.07% 704206557.87 373581947.50 100.00% 2928836.63 0.78% 370653110.87
Provision for bad debts by portfolio:
Unit: RMB
Closing balance
Description
Book balance Provision for bad debts Provision proportion
Commercial acceptance bill
portfolio 142922336.77 471852.27 0.33%
Total 142922336.77 471852.27
Note: As at 31 December 2025 the Company measured the loss allowance for notes receivable at an amount equal to lifetime expected credit losses. The
Company considers that the bank acceptance bills held do not have significant credit risk and will not result in material losses due to bank defaults.If provision was made for bad debts of notes receivable in accordance with the general expected credit loss model:
□ Applicable□Not applicable
(3) Provision for bad debts accrued recovered or reversed during the Reporting Period
Provision for bad debts during the Reporting Period:
Unit: RMB
Changes in amount for the period
Type Opening Recovery or Closing balance
balance Provision reversal Write-offs Others
Bad debt provision
made on individual
basis
Provision for bad
debts made on a 2928836.63 -2456984.36 471852.27
portfolio basis
Total 2928836.63 -2456984.36 471852.27
Among them the important amount of recovery or reverse of bad debt provision for the period:
□ Applicable□Not applicable
(4) Notes receivable endorsed or discounted by the Company which were not yet due on the balance
sheet date as at the end of the Reporting Period
Unit: RMB
1542025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Derecognized amount at the end of the Recognized amount at the end of the
Item Reporting Period Reporting Period
Bank acceptance notes 313018938.93
Total 313018938.93
3. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Book balance at the end of the Reporting Book balance at the beginning of the
Aging Period Reporting Period
Less than 1 year (inclusive) 6878364682.14 5116313235.17
1-2 years 416390211.38 898186547.87
2-3 years 145322062.30 101598939.51
Over 3 years 104956439.87 112499022.11
3-4 years 19211162.85 10249434.69
4-5 years 9718698.70 5706159.68
Over 5 years 76026578.32 96543427.74
Total 7545033395.69 6228597744.66
(2) Disclosure by bad debt provisionmethods
Unit: RMB
Closing balance Opening balance
Book balance Provision for baddebts Book balance Provision for baddebts
Type
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Provision for
bad debts by 100978151.42 1.34% 100978151.42 100.00% 97797292.18 1.57% 97797292.18 100.00%
individuals
Including:
Provision for
bad debts by 7444055244.27 98.66% 32518330.51 0.44% 7411536913.76 6130800452.48 98.43% 28752219.97 0.47% 6102048232.51
portfolio
Including:
Companies
outside 7444055244.27 98.66% 32518330.51 0.44% 7411536913.76 6130800452.48 98.43% 28752219.97 0.47% 6102048232.51
consolidation
Total 7545033395.69 100.00% 133496481.93 1.77% 7411536913.76 6228597744.66 100.00% 126549512.15 2.03% 6102048232.51
Provision for bad debts by individuals:
Unit: RMB
Opening balance Closing balance
Name Provision for Provision for Provision Provision
Book balance bad debts Book balance bad debts proportion reason
OptimumNano Energy Co. Ltd. 100.00% Estimated to be
32249003.26 32249003.26 32249003.26 32249003.26 uncollectible
eTrust Power Group Ltd. 100.00% Estimated to be
17481429.49 17481429.49 17481429.49 17481429.49 uncollectible
Shaanxi OptimumNano New
Energy Co. Ltd. 14847098.36 14847098.36 14847098.36 14847098.36 100.00% Estimated to be
uncollectible
Jiangsu Jeve Power Industry Co. 100.00% Estimated to be
5100387.085100387.08
Ltd. 5100387.08 5100387.08 uncollectible
E-power Tech Co. Ltd. 100.00% Estimated to be
3058731.42 3058731.42 3058731.42 3058731.42 uncollectible
Xinyu Eternal ENERGY Co. Ltd. 100.00% Estimated to be
2802263.94 2802263.94 2802263.94 2802263.94 uncollectible
1552025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Huaibei Jiaheyuan Technology Co. 100.00% Estimated to be
Ltd. 2530770.94 2530770.94 2530770.94 2530770.94 uncollectible
Hubei Yu Long New Energy Co. 100.00% Estimated to be
Ltd. 2177165.60 2177165.60 2177165.60 2177165.60 uncollectible
100.00% Estimated to be
Northvolt 1540340.80 1540340.80 1505951.49 1505951.49 uncollectible
Jiangxi Far East Battery Co. 100.00% Estimated to be
Ltd. 1515182.03 1515182.03 uncollectible
AnHui Teamsky New Energy
Technology Co. Ltd. 1477646.78 1477646.78 1477646.78 1477646.78 100.00% Estimated to be
uncollectible
Shenzhen Teamgiant New Energy
Technology Co. Ltd. 1470081.04 1470081.04 1470081.04 1470081.04 100.00% Estimated to be
uncollectible
Jingzhou OptimumNano Co. Ltd.
1175130.00 1175130.00 1175130.00 1175130.00 100.00% Estimated to be
uncollectible
Shenzhen Vision Lithium Battery
Co. Ltd. 1062626.69 1062626.69 879800.08 879800.08 100.00% Estimated to be
uncollectible
Shenzhen GRAND Power source
Group Co. Ltd. 1004401.76 1004401.76 1004401.76 1004401.76 100.00% Estimated to be
uncollectible
Shenzhen Lukewan Technology 100.00% Estimated to be
Co. Ltd. 1000000.00 1000000.00 1000000.00 1000000.00 uncollectible
Henan Ningfu Juwan New Energy
Technology Co. Ltd. 100.00% Estimated to be3170193.98 3170193.98 uncollectible
Gansu Jintuo Lithium Battery New
Energy Co. Ltd. 1565504.00 1565504.00 100.00%
Estimated to be
uncollectible
Sub-total of less than RMB1 100.00% Estimated to be
million 7305032.99 7305032.99 7482592.20 7482592.20 uncollectible
Total 97797292.18 97797292.18 100978151.42 100978151.42
Provision for bad debts by portfolio: aging combination
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision proportion
Less than 1 year 6877412291.18 8409004.98 0.12%
1-2 years 412367663.51 2837759.28 0.69%
2-3 years 136279935.46 6792497.79 4.98%
3-4 years 16584407.99 13068572.33 78.80%
4-5 years 1102663.10 1102213.10 99.96%
Over 5 years 308283.03 308283.03 100.00%
Total 7444055244.27 32518330.51
If provision was made for bad debts of accounts receivable in accordance with the general expected credit loss model:
□ Applicable□Not applicable
(3) Provision for bad debts accrued recovered or reversed during the Reporting Period
Provision for bad debts during the Reporting Period:
Unit: RMB
Changes in amount for the period
Opening
Type balance Recovery or Closing balance
Provision reversal Write-offs Others
Bad debt
provision made
on an individual 97797292.18 5883312.11 1844977.96 857541.29 66.38 100978151.42
basis
Bad debt
provision made
on a collective 28752219.97 28032900.36 24240588.14 -26201.68 32518330.51
basis
1562025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Total 126549512.15 33916212.47 1844977.96 25098129.43 -26135.30 133496481.93
(4) Actual write-off of accounts receivable for the period
Unit: RMB
Item Amount of write-off
Actual write-off of accounts receivable 25098129.43
Significant write-off of accounts receivable:
Unit: RMB
Nature of Write-off Reason of Write-off Generated from
Company name account amount write-off procedure associated
receivable performed transaction or not
Payment for Resolution of
Henan Jinhong Printing Co. Ltd.goods 23980581.38 Uncollectible the Board No
Total 23980581.38
Explanations about the write-off of accounts receivable: In respect of the trade receivable from Henan Jinhong Printing Co. Ltd. a provision for bad debt of
RMB23726629.84 had already been made in prior years and a provision for the period of RMB253951.54 was made with the impact on the current period's
profit or loss amounting to RMB253951.54.
(5) Accounts receivable and contract assets of top five closing balances by debtors
Unit: RMB
Closing balance of
Closing balance of Percentage of total
bad debt provision
Closing balance of Closing balance of of closing balance of
for accounts
Company name accounts receivable contract assets
accounts receivable accounts receivable receivable and
and contract assets and contract assets impairment
provision for
contract assets
Company 1 1298520511.92 1298520511.92 17.21% 1168621.50
Company 2 871680188.16 871680188.16 11.55% 6850153.06
Company 3 387736254.47 387736254.47 5.14% 454442.21
Company 4 240953195.57 240953195.57 3.19% 216857.88
Company 5 202833954.36 202833954.36 2.69% 1399554.29
Total 3001724104.48 3001724104.48 39.78% 10089628.94
4. Accounts receivable financing
(1) Accounts receivable financing by type
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 1213767926.87 408092531.80
Total 1213767926.87 408092531.80
(2) Accounts receivable financing endorsed or discounted by the Company which were not yet due on the
balance sheet date as at the end of the Reporting Period
Unit: RMB
Derecognized amount at the end of the Recognized amount at the end of the
Item Reporting Period Reporting Period
Bank acceptance bills 2316719605.26
Total 2316719605.26
5. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 1347859.55
Other receivables 31987776.97 26873634.05
1572025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Total 31987776.97 28221493.60
(1) Dividends receivable
1) Classification of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Yuxi Kunshasi Plastic Masterbatch Co. Ltd. 1347859.55
Total 1347859.55
(2) Other receivables
1) Other receivables by nature
Unit: RMB
Book balance at the end of the Reporting Book balance at the beginning of the
Nature of amount Period Reporting Period
Equity acquisition funds 1799150.09
Guarantees and deposits 6619053.19 12608454.57
Reserve fund 1249802.75 1913150.52
Substitute advance 6012532.25 5628114.10
Insurance Custody Fund 14999941.75
Others 4913387.47 6532918.46
Total 33794717.41 28481787.74
2) Disclosure by aging
Unit: RMB
Book balance at the end of the Reporting Book balance at the beginning of the
Aging Period Reporting Period
Less than 1 year (inclusive) 26865837.61 13413350.75
1-2 years 830511.96 5551295.87
2-3 years 3786447.62 8319139.32
Over 3 years 2311920.22 1198001.80
3-4 years 1491065.10 186620.90
4-5 years 62474.22 308000.00
Over 5 years 758380.90 703380.90
Total 33794717.41 28481787.74
3) Disclosure by bad debt provision methods
□Applicable □ Not applicable
Unit: RMB
Closingbalance Openingbalance
Bookbalance Provision for bad debts Bookbalance Provision for bad debts
Type
Provision Book value Provision Book value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Bad debt
provision made
110940.900.33%110940.90100.00%110940.900.39%110940.90100.00%
on individual
basis
Bad debt
provision made
33683776.5199.67%1695999.545.04%31987776.9728370846.8499.61%1497212.795.28%26873634.05
on a collective
basis
Including:
Aging
33683776.5199.67%1695999.545.04%31987776.9728370846.8499.61%1497212.795.28%26873634.05
combination
Total 33794717.41 100.00% 1806940.44 5.35% 31987776.97 28481787.74 100.00% 1608153.69 5.65% 26873634.05
1582025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Provision for bad debts by portfolio: aging combination
Unit: RMB
Closing balance
Description
Book balance Provision for baddebts Provision proportion
Aged less than 1 year 26865837.61 1135982.19 4.23%
Aged 1–2 years 830511.96 36127.26 4.35%
Aged 2–3 years 3786447.62 164710.47 4.35%
Aged 3–4 years 1491065.10 64861.33 4.35%
Aged 4–5 years 62474.22 2717.63 4.35%
Aged over 5 years 647440.00 291600.66 45.04%
Total 33683776.51 1695999.54
Bad debt provision assessed based on ECL model:
Unit: RMB
Stage I Stage II Stage III
Provision for bad debts Lifetime ECL (not credit- Lifetime ECL (credit- Total
12-month ECL impaired) impaired)
Balance of January 1 2025 1209062.79 288150.00 110940.90 1608153.69
Balance of January 1 2025 for the
period
Provision for the period 198380.88 390.00 198770.88
Other changes 15.87 15.87
Balance of December 31 2025 1407459.54 288540.00 110940.90 1806940.44
Changes in book balance with significant changes in loss reserves for the period
□ Applicable□Not applicable
4) Provision for bad debts accrued recovered or reversed during the Reporting Period
Provision for bad debts during the Reporting Period:
Unit: RMB
Changes in amount for the period
Type Opening balance Recovery or Closing balance
Provision reversal Write-offs Others
Bad debt provision made on individual basis
110940.90110940.90
Bad debt provision made on a collective basis
1497212.79198770.8815.871695999.54
Total 1608153.69 198770.88 15.87 1806940.44
5) Top five customers with closing balance of other receivables collected by arrearparty
Unit: RMB
Closing
Nature of other Closing Percentage of total of
Company name Aging balance ofreceivable balance closing balance of bad debt
other receivables provision
Ping An Health Insurance Company Ltd.Insurance 14999941.75 Less than 1 44.39% 652497.47
Custody Fund year
Advance
Pension Insurance payment on 2603145.43 Less than 7.70% 113236.83
behalf of others 1 year
Advance
Housing Provident Fund payment on Less than
behalf of 1776039.39 1 year 5.26% 77177.46
others
1592025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Deposit and
Special Account of Government Non-Tax security deposit Over 3
Revenue Jintan District Finance Bureau 1297600.00 years 3.84% 56445.60
Changzhou
Anhui Public Resources Trading Group Project Deposit and
Management Co. Ltd. security deposit 1000000.00 Less than 1year 2.96% 43500.00
Total 21676726.57 64.14% 942857.36
6. Prepayment
(1) Prepayments by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Less than 1 year
(inclusive) 155017515.66 96.17% 151744967.81 94.59%
1-2 years 5918796.22 3.67% 8594878.2 5.36%
0
2-3 years 242578.62 0.15%
Over 3 years 8380.20 0.01% 83914.32 0.05%
Total 161187270.70 160423760.33
Notes to reasons of significant prepayments over 1 year and not settled in time:
Company name Closing balance Aging Reasons of not settled in time
Guohong Xinye (Beijing)
Information Consulting Co. Ltd. 5660377.20 1-2 years Services Not Yet Completed
Total 5660377.20
(2) Top five suppliers with closing balance of prepayment collected by prepaid entity
Company name Closing balance Proportion (%) of the total amount of Prepayment date Reasons of not settledprepayments
Company 1 13338872.10 8.28 Less than 1 year unused
Company 2 13128064.64 8.14 Less than 1 year unused
Company 3 9457330.66 5.87 Less than 1 year unused
Company 4 8001204.30 4.96 Less than 1 year unused
Company 5 6300474.07 3.91 Less than 1 year unsettled
Total 50225945.77 31.16
7. Inventories
Did the Company need to comply with the disclosure requirements of the real estate industry
Yes
(1) Classification of inventories
The Company shall comply with the disclosure requirements for the real estate industry as set out in the Shenzhen Stock Exchange Self-regulatory
Supervision Guidelines for Listed Companies No. 3 – Industry Information Disclosure.Classified by nature:
Unit: RMB
Closing balance Opening balance
Inventory provision Inventory provision
Item Book balance reserve or contract Book value Book balance reserve or contractperformance cost performance cost Book value
depreciation reserve depreciation reserve
Raw materials 537983064.72 18689545.15 519293519.57 546202730.19 27199840.67 519002889.52
Goods in
process 464629.29 464629.29 5199678.09 5199678.09
Finished goods 1753187232.73 579061547.98 1174125684.75 2513508258.64 598721761.77 1914786496.87
Turnover
materials 150668772.01 150668772.01 179451015.62 179451015.62
Consumable
biological assets
Contract
performance costs
Goods in
transit 265416096.28 4531479.84 260884616.44 257753391.64 2496390.10 255257001.54
Consigned
processing 1756624.05 1756624.05 1758679.73 1758679.73
material
1602025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Semi-finished
goods 146891000.81 18982010.36 127908990.45 52932171.59 9589965.09 43342206.50
Materials in
transit 44579124.61 44579124.61 44228826.95 44228826.95
Total 2900946544.50 621264583.33 2279681961.17 3601034752.45 638007957.63 2963026794.82
(2) Inventory provision reserve and contract performance cost depreciationreserve
The provision for inventory impairment is disclosed in the following format:
Classified by nature:
Unit: RMB
Increase for the period Decrease for the period
Item Opening balance Closing balance
Provision Others Recovery or Others
reversal
Raw materials 27199840.67 15782839.84 24293135.36 18689545.15
Finished goods 598721761.77 264122258.76 283693975.10 88497.45 579061547.98
Goods in transit 2496390.10 4203934.97 2168845.23 4531479.84
Semi-finished
goods 9589965.09 14596498.84 5204453.57 18982010.36
Total 638007957.63 298705532.41 315360409.26 88497.45 621264583.33
8. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Large deposit certificate 50000000.00 200000000.00
Undue interest receivable 3345618.06 15940873.29
Total 53345618.06 215940873.29
9. Other current assets
Unit: RMB
Item Closing balance Opening balance
Prepayment of tax 10105483.22 6594972.18
Input tax to be deducted 443658858.01 692330332.81
Time deposit 60190972.24 302953767.12
Total 513955313.47 1001879072.11
1612025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
10. Other equity instrument investment
Unit: RMB
Reason for
Profit designating asa
recognized in Loss charged to Accumulated profit Accumulated losses Dividend financial asset
other other in other in other income measured at fair
Item Closing balance Opening balance comprehensive comprehensive comprehensive comprehensive recognized value and its
income for the income for the income at the end income at the end during the changes are
period period of the period of the period period included in other
comprehensive
income
Suzhou
Jiesheng
67000000.0072000000.005000000.00-43000000.00
Technology
Co. Ltd.Zhuhai
Chenyu
New
6000000.006000000.00
Material
Technology
Co. Ltd.Total 73000000.00 78000000.00 5000000.00 -43000000.0
Other explanations:
Note 1: According to the evaluation by Shanghai Zhonghua Asset Appraisal Co. Ltd. as of December 31 2025 the overall equity value of Suzhou
Jiesheng Technology Co. Ltd. is RMB670000000.00 and the Company holds 10% equity of Suzhou Jiesheng Technology Co. Ltd. corresponding to a
fair value of RMB67000000.00.Note 2: This period saw the Company’s subsidiary Shanghai Energy New Material Technology Co. Ltd. holding 8% of the equity of Zhuhai Chenyu New
Material Technology Co. Ltd.. The fair value at the end of the period was close to the book value.
11. Long-term receivables
(1) Details of Long-term receivables
Unit: RMB
Closing balance Opening balance Discount rate
Item range
Provision for bad Provision for bad
Book balance debts Book value Book balance debts Book value
Finance lease receivables
4457531.974457531.97
Including: Unearned
finance income -542468.03 -542468.03
Total 4457531.97 4457531.97
12. Long-term equity investment
Unit: RMB
Increase / decrease for the period
Closing
Opening Opening Investment Closing
Adjustments to Cash balance ofbalance balance of Decrease profit or loss Other balanceInvestees
(book provision for Increase in other dividends or Provision for
provision
in recognized changes in Others (book for
value) impairment investment comprehensive profit impairmentinvestment under equity equity value)
income declared impairment
method
I. Joint ventures
II. Associates
Shanghai
Taolin
14100157.
Packaging 16000000.00 -1899842.76
24
Technology
Co. Ltd.
1622025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Yunnan
Yijie
247500.00-247500.00
Lithium
Co. Ltd.
14100157.
Subtotal 16247500.00 -2147342.76
24
141001
Total 16247500.00 -2147342.76
57.24
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value:
□ Applicable□Not applicable
The recoverable amount is determined based on the present value of expected future cash flows:
□ Applicable□Not applicable
13. Investment properties
(1) Adoption of the cost measurement mode for investment properties
□Applicable □ Not applicable
Unit: RMB
Item Buildings and structures Total
I. Original book value
1. Opening balance 13599021.41 13599021.41
2. Increase for the period
(1) External purchase
(2) Transfer of inventory/fixed assets/construction in progress
(3) Increase in business combination
3. Decrease for the period
(1) Disposal
(2) Other transferred out
4. Closing balance 13599021.41 13599021.41
II. Accumulative depreciation and amortization
1. Opening balance 4547441.59 4547441.59
2. Increase for the period 611955.96 611955.96
(1) Provision or amortization 611955.96 611955.96
3. Decrease for the period
(1) Disposal
(2) Other transferred out
4. Closing balance 5159397.55 5159397.55
III. Provision for impairment
1. Opening balance
2. Increase for the period
(1) Provision
3. Decrease for the period
(1) Disposal
(2) Other transferred out
4. Closing balance
IV. Book value
1. Closing book value 8439623.86 8439623.86
2. Opening book value 9051579.82 9051579.82
The recoverable amount is determined based on the net amount after deducting disposal expenses from fair value
1632025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
□ Applicable□Not applicable
The recoverable amount is determined based on the present value of expected future cash flows
□ Applicable□Not applicable
(2) Investment properties with pending title certificates
Unit: RMB
Item Book value Reasons for Not Obtaining the Title
Certificates
Buildings and structures 6796607.18 delay in processing
14. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 28257962277.25 22928507627.21
Fixed assets pending for disposal
Total 28257962277.25 22928507627.21
(1) Fixed assets
Unit: RMB
Buildings and Machinery and Transportation Electronic
Item structures equipment equipment devices and Total
others
I. Original book value
1. Opening balance 5798391927.77 24045250821.53 55891074.35 850039590.97 30749573414.62
2. Increase for the period 2983317666.73 4241507945.75 6770766.96 255046383.01 7486642762.45
(1) Purchase 14345959.50 49707442.42 4479626.78 226032529.41 294565558.11
(2) Transfer of construction
in progress 2971121930.17 4223551180.41 2323083.54 44269551.09 7241265745.21
(3) Increase in business
combination
(4) Converted difference in
foreign currency statements -2150222.94 -31750677.08 -31943.36 -15255697.49 -49188540.87
3. Decrease for the period 4475300.58 34416536.35 1675261.16 4790754.54 45357852.63
(1) Disposal or
scrapping 8256.88 32667346.95 1675261.16 3797469.66 38148334.65
(2) Other decreases 4467043.70 1749189.40 993284.88 7209517.98
4. Closing balance 8777234293.92 28252342230.93 60986580.15 1100295219.44 38190858324.44
II. Accumulative depreciation
1. Opening balance 890146250.24 6372341605.83 30816020.19 236396393.11 7529700269.37
2. Increase for the period 321864817.53 1736278781.46 6499473.89 68919800.15 2133562873.03
(1) Provision 322863214.30 1737556687.23 6508333.55 69060401.45 2135988636.53
(2) Converted difference in
foreign currency statements -998396.77 -1277905.77 -8859.66 -140601.30 -2425763.50
3. Decrease for the period 101036.62 16736011.52 1521116.48 3154935.30 21513099.92
(1) Disposal or
scrapping 1640.88 16670650.56 1521116.48 3154935.30 21348343.22
(2) Other decreases 99395.74 65360.96 164756.70
4. Closing balance 1211910031.15 8091884375.77 35794377.60 302161257.96 9641750042.48
III. Provision for impairment
1. Opening balance 291340736.78 15759.89 9021.37 291365518.04
2. Increase for the period
(1) Provision
3. Decrease for the period 219513.33 219513.33
(1) Disposal or
scrapping 219513.33 219513.33
4. Closing balance 291121223.45 15759.89 9021.37 291146004.71
IV. Book value
1. Closing book value 7565324262.77 19869336631.71 25176442.66 798124940.11 28257962277.25
2. Opening book value 4908245677.53 17381568478.92 25059294.27 613634176.49 22928507627.21
1642025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(2) Fixed assets in temporary idle
Unit: RMB
Item Original book Accumulative Provision for Book value Remarks
value depreciation impairment
Buildings and
structures 2105695.50 1250844.34 854851.16
Machinery and
equipment 9135247.28 8221722.55 913524.73
Total 11240942.78 9472566.89 1768375.89
(3) Fixed assets not obtaining the title certificate
Unit: RMB
Item Book value Reason
Buildings and structures 2626863827.22 Preconditions for title Certificate not fulfilled
Total 2626863827.22
Other explanations:
15. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 1525364867.85 5852662936.95
Engineering materials 5198161.79 10582086.18
Total 1530563029.64 5863245023.13
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Item Book balance impairment Book value Book balance impairment Book value
Hungarian factory 3173726601.84 3173726601.84
American factory 241401384.42 241401384.42 33021712.10 33021712.10
Jiangxi Enpo New Material 218125812.12 218125812.12 587916982.98 587916982.98
Co. Ltd. Lithium-ion Battery
Dry Process Separator Film
Construction Project
Jiangxi Energy SRS Project 5046005.89 5046005.89 23069781.38 23069781.38
Microporous Membrane
Project of High-
performance Lithium-ion 8807138.67 8807138.67 297650631.72 297650631.72
Battery of Chongqing
Energy (Phase II)
Jiangsu Energy EV
Lithium Battery
55429327.4555429327.4544626237.6444626237.64
Separator
Industrialization Project
Jiangsu Ruijie EV Lithium
Battery Aluminum
3763808.993763808.9942381128.2742381128.27
Laminated Film
Industrialization Project
Hubei Energy EV
Lithium Battery
Separator 51490370.48 51490370.48 66260050.24 66260050.24
Industrialization
Project
Yuxi Energy 1.6 Billion m2/a
666185634.40666185634.401005383793.901005383793.90
Lithium Battery Project
Jinqiao Guopei Plot R&D
Project – Jinqiao Building B
(Floors 5–12)
Anhui Hongchuang Project
for Annual Production of 12
32445087.8632445087.86334535052.66334535052.66
billion Liquid Beverage
Cartons
Others 246899828.24 4229530.67 242670297.57 248320494.89 4229530.67 244090964.22
Total 1529594398.52 4229530.67 1525364867.85 5856892467.62 4229530.67 5852662936.95
1652025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(2) Changes in important projects in progress for the period
Unit: RMB
Capitaliz
Budget Transfer Decrease Proportion Progress Capitalized Including: ation rate Source
Increase
(in Opening to fixed in other Closing of total of the accumulated Capitalized of of
Item for theRMB10 balance assets amounts balance project project amount of amount of interest capit
period
000) for the for the investment (%) interest interest for for the al
period period in budget the period period
Self-owned
Hungarian factory 353828.1 317372 385365 3538281 20810815.2 100.00378.77 7 % 100% and self-4 6601.84 592.20 raised funds
330
193994. 217 212467 241401 44.07 Self-ownedAmerican factory 4087937.70 44.07%
88 12.1 610.02 384.42 % and self-
0 raised funds
Jiangxi Enpo New Material
Co. Ltd. Lithium-ion 3. Self-owned
Battery Dry Process 200000. 587916 71102 440893 218125 61.00 80.00% 30 and self-
Separator Film Construction 00 982.98 675.97 846.83 812.12 %
49015299.6222293524.53
% raised funds
Project
Jiangxi Energy SRS Self-owned23069 18623 198861 50460 75.00 100.00 and self-
Project 95000.00 781.38 70.60 46.09 05.89 % % raised funds
MicroporousMembrane Raised
Project of High- 2.performance Lithium-ion 300000. 297650 69526 358370 88071 95.00
funds Self-
% 95.00% 22974425.44 299229.47 6500 631.72 677.47 170.52 38.67 owned andBattery of Chongqing % self-raised
Energy (Phase II) funds
Raised
Jiangsu Energy EV Lithium
520000.0 446262 55645 44842 554293 78.00 100.00 funds Self-Battery Separator
IndustrializationProject 0 37.64 305.39 215.58 27.45 % %
23598457.77 owned and
self-raised
funds
Jiangsu Ruijie EV Lithium Raised
Battery Aluminum 160000. 423811 34899 47.00 8040159.5 funds Self-
Laminated Film 00 28.27 398.2
7351637638052.00%
717.51 8.99 % 5 owned and
Industrialization Project 3 self-raised
funds
Hubei Energy EV
100.00 11978144. Self-owned
Lithium Battery Separator 520000. 662600 136663 151433 514903 98.26%
00 50.24 802.50 482.26 70.48 % 46 and self-
IndustrializationProject raised funds
Yuxi Energy 1.6 Billion Self-owned
m2/a Lithium Battery 4450000.0 100538
997361336541.65
03793.901839.59998.
666185
% 54.73% 21347406.14 18297751.95 1.88% and self-
01 51 634.40 raised fundsProject
Jinqiao Guopei Plot R&D
6010685 6010685 Self-owned
Project – Jinqiao Building 60106.86 91.45 91.45 100.00% 100.00% 34759931.00 9538610.30 2.05% and self-raised funds
B (Floors 5–12)
Anhui Hongchuang
Project for Annual 33453 14101 44310 32445 80.17 Self-owned
70000.00 5052.6 8853. 8818. 087.8 80.17% 2181589.72 1388311.32 2.38% and self-
Production of 12 Billion %6 24 04 6 raised funds
Liquid Beverage Cartons
Others 248320 232765 233304 882194.75 246899494.89 907.75 379.65 828.24 52698210.97
Total 292292 585689
293977241225780947.715295
9.882467.6248623.65745.294398.
226593624.6
751817427.57832152
(3) Provision for impairment of construction in progress in this period
Unit: RMB
Opening Increase for the Decrease for
Item Closing balance Reason for provision
balance period the period
Jiangxi Tonry Lithium Battery Membrane Idle equipment expected to be
4229530.674229530.67
Project (Phase I Expansion) unusable
1662025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Total 4229530.67 4229530.67 --
(4) Impairment testing of construction in progress
□ Applicable□Not applicable
(5) Engineering materials
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Item Book balance impairment Book value Book balance impairment Book value
Equipment not
installed 5198161.79 5198161.79 10582086.18 10582086.18
Total 5198161.79 5198161.79 10582086.18 10582086.18
16. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Buildings and structures Others Total
I. Original book value
1. Opening balance 1990728.20 1376146.80 3366875.00
2. Increase for the period
3. Decrease for the period 1990728.20 1990728.20
Lease expiry 1990728.20 1990728.20
4. Closing balance 1376146.80 1376146.80
II. Accumulative depreciation
1. Opening balance 995364.12 619265.79 1614629.91
2. Increase for the period 995364.08 275229.44 1270593.52
(1) Provision 995364.08 275229.44 1270593.52
3. Decrease for the period 1990728.20 1990728.20
(1) Disposal
(2) Lease expiry 1990728.20 1990728.20
4. Closing balance 894495.23 894495.23
III. Provision for impairment
1. Opening balance
2. Increase for the period
(1) Provision
3. Decrease for the period
(1) Disposal
4. Closing balance
IV. Book value
1. Closing book value 481651.57 481651.57
2. Opening book value 995364.08 756881.01 1752245.09
17.Intangible assets
(1) Intangible assets
Unit: RMB
Non-patent
Item Land use rights Patent rights technology Software Total
I. Original book value
1. Opening balance 1159484344.46 67751860.27 23338200.00 66292226.13 1316866630.86
2. Increase for the period 1795648.56 16034829.29 25225686.94 43056164.79
(1) Purchase 1795648.56 16459389.77 24995629.90 43250668.23
(2) Internal R&D
(3) Increase in business
combination
(4) Converted difference in
foreign currency statements -424560.48 -364282.59 -788843.07
(5) Transfer of
construction in progress 594339.63 594339.63
3. Decrease for the period 87176.07 87176.07
(1) Disposal 87176.07 87176.07
4. Closing balance 1161279993.02 83786689.56 23338200.00 91430737.00 1359835619.58
II. Accumulative amortization
1. Opening balance 124379795.82 18868972.57 21603753.11 20033961.26 184886482.76
2. Increase for the period 23558686.62 8166957.19 189262.56 12575285.79 44490192.16
(1) Provision 23558686.62 8196421.05 189262.56 12689783.34 44634153.57
(2) Converted
difference in foreign currency -29463.86 -114497.55 -143961.41
1672025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
statements
3. Decrease for the period 87176.07 87176.07
(1) Disposal 87176.07 87176.07
4. Closing balance 147938482.44 27035929.78 21793015.67 32522070.96 229289498.85
III. Provision for impairment
1. Opening balance 1203498.45 1203498.45
2. Increase for the period
(1) Provision
3. Decrease for the period
(1) Disposal
4. Closing balance 1203498.45 1203498.45
IV. Book value
1. Closing book value 1013341510.58 56750759.78 341685.88 58908666.04 1129342622.28
2. Opening book value 1035104548.64 48882887.70 530948.44 46258264.87 1130776649.65
18. Goodwill
(1) Original book value of goodwill
Unit: RMB
Increase for the period Decrease for the
period
Events that may generate goodwill through investee Opening Closing
names balance Generated by Others Others
business Disposal
balance
combination
Jiangxi Tonry New Energy Technology Development
Co. Ltd. 34483188.64 34483188.64
Chongqing Energy Newmi Technological Co. Ltd. 15589757.32 15589757.32
Suzhou GreenPower New Energy Materials Co. Ltd. 470157733.69 470157733.69
Total 520230679.65 520230679.65
(2) Provision for impairment of goodwill
Unit: RMB
Increase for the Decrease for the period
Events that may generate goodwill through investee Opening period Closing
names balance balance
Provision Disposal
Jiangxi Tonry New Energy Technology Development
Co. Ltd.Chongqing Energy Newmi Technological Co. Ltd. 1125126.29 1125126.29
Suzhou GreenPower New Energy Materials Co. Ltd.Total 1125126.29 1125126.29
(3) Method for determining the recoverable amount
* Jiangxi Tonry New Energy Technology Development Co. Ltd.The recoverable amount of goodwill is calculated based on the present value of expected future cash flows which is derived from the
Company’s approved 5-year cash flow forecasts. The cash flow forecasts apply a discount rate of 12.36% and cash flows beyond the forecast period are assumed to
remain stable at the level for the final year. This growth rate is broadly consistent with the long-term average growth rate of the lithium battery industry.Key parameters
Company
name Growth rate for Growth rate
Forecast period the forecast for the stable Profit margin Discount rate (pre-tax weighted
period period average cost of capital WACC)
Indefinite: 2026-2030 Based on estimated
Jiangxi Tonry (followed by a stable Note 1 Flat revenues costs expenses 12.36%
period) etc.Note 1: Based on executed contracts and agreements the Company’s development plans historical operational trends and comprehensive analysis of
market competition factors combined with the asset group’s condition as of the valuation date cash flows for the asset group over the next five years were
forecasted.According to the valuation results in the Asset Appraisal Report on the Recoverable Amount of the Asset Group Related to Jiangxi Tonry New Energy
Technology Development Co. Ltd. for Goodwill Impairment Testing Purposes of Yunnan Energy New Material (Group) Co. Ltd. (for Financial Reporting)
1682025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
(Report No.: Hu Zhong Ping Bao Zi [2026] No. 0192) issued by Shanghai Zhonghua Asset Appraisal Co. Ltd. engaged by the Company the recoverable amount of
the asset group (including goodwill) was determined to be RMB921 million and its carrying amount was RMB899455900 indicating no need for goodwill
impairment provision.* Chongqing Energy Newmi Technological Co. Ltd.The recoverable amount of goodwill is calculated based on the present value of expected future cash flows which is derived from the
Company’s approved 5-year cash flow forecasts. The cash flow forecasts apply a discount rate of 12.34% and cash flows beyond the forecast period are assumed to
remain stable at the level for the final year. This growth rate is broadly consistent with the long-term average growth rate of the lithium battery industry.Key parameters
Company
name Growth rate for Growth rate
Forecast period the forecast for the stable Profit margin Discount rate (pre-tax weighted
period period average cost of capital WACC)
Indefinite: 2026-2030 Based on estimated
Newmi Tech (followed by a stable Note 1 Flat revenues costs expenses 12.34%
period) etc.Note 1: Based on executed contracts and agreements the Company’s development plans historical operational trends and comprehensive analysis of
market competition factors combined with the asset group’s condition as of the valuation date cash flows for the asset group over the next five years were
forecasted.According to the valuation results in the Asset Appraisal Report on the Recoverable Amount of the Asset Group Related to Chongqing Energy Newmi
Technological Co. Ltd. for Goodwill Impairment Testing Purposes of Yunnan Energy New Material Co. Ltd. (for Financial Reporting) (Report No.: Hu Zhong
Ping Bao Zi [2026] No. 0485) issued by Shanghai Zhonghua Asset Appraisal Co. Ltd. engaged by the Company the recoverable amount of the asset group
(including goodwill) was determined to be RMB576 million the carrying amount of the asset group (including goodwill) was RMB573747400 indicating no need
for a goodwill impairment provision.* Suzhou GreenPower New Energy Material Co. Ltd.The recoverable amount of goodwill is calculated based on the present value of expected future cash flows which is derived from the
Company’s approved 5-year cash flow forecasts. The cash flow forecasts apply a discount rate of 12.92% and cash flows beyond the forecast period are assumed to
remain stable at the level for the final year. This growth rate is broadly consistent with the long-term average growth rate of the lithium battery industry.Key parameters
Company
name Growth rate for Growth rate
Forecast period the forecast for the stable Profit margin Discount rate (pre-tax weighted
period period average cost of capital WACC)
Suzhou Indefinite: 2026-2030 Based on estimated
GreenPower (followed by a stable Note 1 Flat revenues costs expenses 12.92%period) etc.Note 1: Based on executed contracts and agreements the Company’s development plans historical operational trends and comprehensive analysis of
market competition factors combined with the asset group’s condition as of the valuation date cash flows for the asset group over the next five years were
forecasted.According to the appraisal results of the Asset Appraisal Report on the Recoverable Amount of the Asset Group Related to Suzhou GreenPower New Energy
Material Co. Ltd. for Goodwill Impairment Testing Purposes of Yunnan Energy New Material (Group) Co. Ltd. (for Financial Reporting) (Report No.: Hu
Zhong Ping Bao Zi [2026] No. 0319) issued by Shanghai Zhonghua Asset Appraisal Co. Ltd. engaged by the Company the recoverable amount of the asset
group (including goodwill) was RMB1703 million and its carrying amount was RMB783383000 and no goodwill impairment provision was required.
19. Long-term unamortized expenses
Unit: RMB
Item Opening balance Increase for the Amortized amount Decrease in otherperiod for the period amounts Closing balance
Renovation cost 1231011. 1231011.Software system 60 60
implementation fee 34968.51
34968.5
1
Power grid access fee 15012.6 11259.8 3752.82
Total 12809926. 12772394. 3752.82
7795
20. Deferred income tax assets/Deferred income tax liabilities
(1) Deferred income tax assets before offset
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income Deductible Deferred income
difference tax assets temporary difference tax assets
Asset impairment provision 1047636359.10 159298062.33 1063839230.22 162284314.81
Unrealized profit of internal transaction 362813022.58 71629477.47 422444452.67 72300918.97
Deductible losses 3057189475.84 473276837.39 3296761130.39 515190751.08
1692025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Government subsidy 1383095922.14 220212897.91 1410310952.03 221155547.01
Stock incentive 11996278.65 1799715.01 16104459.29 2415964.22
Changes in fair value of other equity 43000000.00 10750000.00
instrument investments 38000000.00 9500000.00
Provision for sales rebates 17546046.39 2631906.96 15464691.47 2319703.72
Others 19073181.01 3002081.08 37895959.39 7091331.93
Total 5942350285.71 942600978.15 6300820875.46 992258531.74
(2) Deferred income tax liabilities before offset
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Appraisal and appreciation of assets in mergers of 46033303.60 6904995.54 54932224.18 8239833.62
companies not under common control
Pre-tax deduction of equipment and instruments at one
time Note 1 and 2 2369513388.59 372982185.31 2381107385.93 371117097.18
Others 17801127.89 2670169.19
Total 2415546692.19 379887180.85 2453840738.00 382027099.99
(3) Net amount of offset deferred income tax assets or liabilities
Unit: RMB
Offsetting amount of Offsetting amount of
deferred income tax assets Closing balance of deferred income tax assets Opening balance of
Item and deferred income tax deferred income tax assets and deferred income tax deferred income tax assets
liabilities at the end of the or liabilities after offset liabilities at the beginning or liabilities after offset
Reporting Period of the Reporting Period
Deferred income tax assets 325370458.77 617230519.38 359762846.47 632495685.27
Deferred income tax
liabilities 325370458.77 54516722.08 359762846.47 22264253.52
(4) Details of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 463362.12 2053777.04
Deductible loss 910055021.50 108096935.27
Total 910518383.62 110150712.31
(5) Deductible losses for which deferred income tax assets were unrecognized will expire in the following years
Unit: RMB
Year Closing amount Opening amount Remarks
2026571908.69571908.69
202713040659.4813040659.48
202821681654.6711255602.35
202998287592.8014165911.37
2030176020899.52
2031
2032
2033
2034
2035562964001.34
No legal term 37488305.0 69062853.38
Total 910055021.50 108096935.27
0
1702025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
21. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item Provision Provision
Book balance for Book value Book balance for Book value
impairme impairmen
Advance payment for nt t430265101.47 430265101.47 720594841.55 720594841.55
project and equipment
Quality guarantee (Note 1) 1350000.00 1350000.00 1350000.00 1350000.00
Installment for sale 32746160.80 32746160.80 44219610.90 44219610.90
of equipment
A(Ndovtaen2c)e payment for 590113073.39 590113073.39 1139646320.70 1139646320.70
house and land
Time deposits 312307123.73 312307123.73 521125355.20 521125355.20
Less: Other non-current
assets due within one 53345618.06 53345618.06 215940873.29 215940873.29
yTeoatral 1313435841.33 1313435841.33 2210995255.06 2210995255.06
Other explanations:
Note 1: Guizhou Haoyiduo Dairy Co. Ltd. signed an agreement with the Company and the two parties entered into a long-term strategic partnership. The
Company provided Guizhou Haoyiduo Dairy Co. Ltd. with the above money as its quality guarantee. Guizhou Haoyiduo Dairy Co. Ltd. promised to
purchase no less than 13 million packaging boxes of products from the Company every year and return the above money after the termination of the
partnership. As long as the cooperation relationship is not terminated the agreement will automatically continue after expiration. During the Reporting
Period Guizhou Haoyiduo Dairy Co. Ltd. has a good cooperation relationship with the Company and the annual order quantity to the Company exceeds
the agreed quantity in the above agreement. The Company expects that the above agreement will continue.Note 2: The Company purchases filling machines and auxiliary equipment and sells them to customers by installment sales. The price of the equipment
shall be paid together with the payment for the Company’s products purchased by customers. Until the appointed time all the payments for equipment shall
be recovered invoices shall be issued and the property rights of the equipment shall be transferred to customers.
22. Assets with restricted ownership or use
Unit: RMB
Beginning of the period End of the period
Item Book Restriction Book Restriction
Book value Restriction Book value Restriction
balance type balance type
Margin and
account Pledged Margin bank-controlled
Monetary funds 667132525.3 667132525.3
0 0 Pledged deposits 838743097.78 838743097.78 regulation account deposits
under bank
regulation
Mortgaged
Fixed assets Mortgaged
Loan
230256990 18763164 mortgage- 1305145941. 1155206200. Mortgaged Mortgaged loan
8.75 84.36 backed 74 49
government
subsidy
Intangible 161789525.5 149203471.4 MortgagedMortgaged 140710834.3 130345642.4 Mortgaged Mortgaged loan
assets 9 3 loan 3 7
Account Pledged
receivable 964697.30 964697.30
Pledged
loan
Construction in 244204248.1 244204248.1 Mortgage- backedMortgaged
progress 0 0 government subsidy
1712025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Other current
50149722.24 50149722.24 Pledged Margin 50178767.12 50178767.12
assets Pledged
Margin
Total 318260637 27437669 25789828 2418677959.18 00.63 89.07 5.96
1722025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Other explanations: In addition to the items presented in the above table the Company’s subsidiary Shanghai Energy New Material Technology
Co. Ltd. has pledged its 100% equity interest in Suzhou GreenPower New Energy Material Co. Ltd. as collateral for bank borrowings. As a result the
aforementioned equity interest is classified as a restricted asset.
23. Short-term loans
(1) Classification of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Pledged loan 50878697.30 49875000.00
Guaranteed loan 7697944877.07 7873958503.74
Credit loan 152781917.24 192500000.00
Undue interest payables 12006445.89 20564458.76
Total 7913611937.50 8136897962.50
Explanations for classification of short-term borrowings:
Note 1: the subsidiary Shanghai Energy New Material Technology Co. Ltd. obtained a loan of RMB49914000.00 by pledging its own
certificate of deposit amounting to RMB50149722.24 as collateral; the subsidiary Yunnan Hongchuang Packaging Co. Ltd. pledged accounts
receivable of RMB964697.30 to obtain borrowings of RMB964697.30. See Note V-22 “Assets with restricted ownership” in this Section for
details of pledge.Note 2: Loans obtained through guarantees provided by the Company’s ultimate controlling shareholder the Company and its subsidiaries. For
details please refer to: Note XII of this Section “Related parties and related party transactions” (five). Related party transactions 3 Related party
guarantees.
24. Notes payable
Unit: RMB
Type Closing balance Opening balance
Commercial acceptance bills 3011635.55 5969550.46
Bank acceptance bills 763202276.81 508719854.16
Total 766213912.36 514689404.62
25. Accounts payable
(1) Accounts payable
Unit: RMB
Item Closing balance Opening balance
Materials payable 1175811711.47 717111406.43
Engineering equipment payable 750524687.45 959748795.64
Accessories and spare parts payable 97679486.22 68189620.27
Transportation fee payable 68040001.04 61583428.05
Other payable 218120980.99 203225271.16
Total 2310176867.17 2009858521.55
(2) Major accounts payable aged over one year
Unit: RMB
Item Closing balance Reasons for outstanding or carry-over
Changzhou No. 1 Construction Group Co. Ltd. 44506069.28 Not mature
Qingdao Huashijie New Material Technology 29553508.10 Not mature
Group Co. Ltd.Dalian Shengyu Air Conditioning and 11831231.17 Not mature
Purification Equipment Engineering Co. Ltd.Nanjing LiBu Machinery Co. Ltd. 11676097.73 Not mature
Yunnan Futong Air Conditioning & 11113610.85 Not mature
Purification Engineering Co. Ltd.Fuji Iron Works Co. Ltd. 11058559.20 Not mature
Nanjing LiBu Machinery Co. Ltd. 10902654.83 Not mature
Jintan Branch of Jiangxi Ruizhou Construction 5965203.30 Not mature
Group Co. Ltd.Suzhou RS Technology Co. Ltd. 5457676.00 Not mature
Nantong Runyuan Structural Parts Co. Ltd. 5150710.60 Not mature
Total 147215321.06
1732025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
（3） Whether there were overdue payments to small and medium-sized enterprises (SMEs)
Whether the Company is a large enterprise:□ Yes No
Whether there were overdue payments to SMEs: Yes□ No
26. Other payables
Unit: RMB
Item Closing balance Opening balance
Dividends payable 9778239.09 9778239.09
Other payables 192882923.14 202844830.33
Total 202661162.23 212623069.42
(1) Dividends payable
Unit: RMB
Item Closing balance Opening balance
Common share dividends 9778239.09 9778239.09
Total 9778239.09 9778239.09
(2) Other payables
1) Other payables listed by nature of payment
Unit: RMB
Item Closing balance Opening balance
Restricted stock repurchases obligations 51344699.54 135645573.37
Equity acquisition 42736010.00 42736010.00
Deposits and guarantees 12403739.75 15651753.56
Withholding employees’ social insurance 641332.78 2431817.90
Finance lease receivables 74535297.07
Reimbursement 3534276.62 2046262.01
Others 7687567.38 4333413.49
Total 192882923.14 202844830.33
2) Major other payables aged over one year or due
Unit: RMB
Item Closing balance Reasons for outstanding or carry-over
Gao’an Kewei investment partnership 22380000.00 Payment terms not been met
(limited partnership)
DENCOLIMITED 20356010.00 Payment terms not been met
Total 42736010.00
27. Contractual liabilities
Unit: RMB
Item Closing balance Opening balance
Advance receivable for goods 32047058.00 30176163.00
Rebate 17546046.39 15464691.47
Total 49593104.39 45640854.47
28. Employee benefits payable
(1) Employee benefits payable
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
I. Short-term remuneration 85709641.07 1536026587.01 1521885864.79 99850363.29
1742025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
II. Retirement pension
program- defined 3256691.14 123506707.03 118506622.22 8256775.95
contribution plan
III. Termination benefits 4785020.90 4785020.90
Total 88966332.21 1664318314.94 1645177507.91 108107139.24
(2) Short-term benefits
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
1. Wage bonus allowance and subsidies 81122275.33 1312275935.55 1300162557.25 93235653.63
2. Employee welfare 73979358.68 73979358.68
3. Social insurance 1754255.54 91924531.64 90227200.60 3451586.58
Including: Medical insurance 1652473.63 54951208.28 55241107.09 1362574.82
Labor injury insurance 48176.05 5123039.85 4885904.52 285311.38
Maternity insurance premium 53605.86 2719271.06 2772223.37 653.55
Supplementary medical insurance 1702621.94 1702621.94
4. Housing fund 1741323.00 50916819.40 51048218.05 1609924.35
5. Labor union budget and staff education fund 1091787.20 6929941.74 6468530.21 1553198.73
Total 85709641.07 1536026587.01 1521885864.79 99850363.29
(3) Defined contribution plans
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
1. Basic pension 3157909.96 119403160.14 114578930.91 7982139.19
2. Unemployment insurance 98781.18 4103546.89 3927691.31 274636.76
Total 3256691.14 123506707.03 118506622.22 8256775.95
29. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 16152293.61 19826033.7
Corporate income tax 295352572.17 70548724.88
Personal income tax 8046119.10 6300491.3
City maintenance and construction tax 32254800.75 963296.29
Property tax 14326042.75 9776242.18
Land using tax 3087167.31 3050650.0
Education surtax 21729362.46 926425.35
Stamp duty 4085521.80 5346531.9
Others 01311407.80 163472.85
Total 146345287.75 116901868.5
Other explanations: In the above table "Other payables" refers to other payables after deducting interest payable and dividends payable. 2
30. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Long-term loans due within 1 year 1960866458.28 1663741019.86
Bonds payable due within 1 year 7403847.66
Long-term payables due within 1 year 112908669.41
Lease liabilities due within 1 year 1009605.19
R&D project subsidy for lithium battery separator 700000.00 700000.00
Project subsidy for high-safety & high-reliability lithium batteries and high-strength separators 22000000.00 22000000.00for energy electronics applications
Lithium battery separator project investment funds 99000000.00 87000000.00
1752025 Annual Report of Yunnan Energy New Material (Group) Co. Ltd.
Total 2195475127.69 1781854472.71
31. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Output value-added tax payable 3292321.38 1775714.63
Endorsement of bank acceptance bill not derecognized 313018938.93 208570048.67
Endorsement for transfer of supply chain voucher not derecognized 485954097.87 525952344.5
Total 5802265358.18 736298107.85
32. Long-term borrowings
(1) Long-term borrowings by type
Unit: RMB
Item Closing balance Opening balance
Pledged loan (Note 1) 366000000.00 516000000.00
Mortgaged loan (Note 2) 1036135806.91 1241029140.62
Guaranteed loan (Note 3 Note 4) 4766943337.22 4622089982.32
Credit loan (Note 4) 601977288.90 349000000.00
Undue interest payables 4946469.22 5651008.22
Pledged + Guaranteed loan 177422967.69
Less: Long-term loans due within 1 year 1960866458.28 1663741019.86
Total 4992559411.66 5070029111.30
Description for long-term borrowings by type:
Description for long-term borrowings:
Note 1: the subsidiary Shanghai Energy New Material Technology Co. Ltd. will pledge its 100% equity in Suzhou GreenPower
New Energy Materials Co. Ltd. to obtain a loan of RMB366000000.00.Note 2: the subsidiary Yunnan Hongta Plastic Co. Ltd. the sub-subsidiaries Zhuhai Energy New Material Technology Co. Ltd.Wuxi Energy New Material Technology Co. Ltd. Hubei Energy New Material Technology Co. Ltd. Jiangsu Energy New Material
Technology Co. Ltd. Chongqing Energy New Material Technology Co. Ltd. obtained a loan of RMB1036135806.91 by pledging
their own fixed assets and intangible assets. See Note V-22 “Assets with restricted ownership” in this Section for details of pledge.Note 3: the sub-subsidiaries Hongchuang Packaging (Anhui) Co. Ltd. obtained fixed-asset syndicated loan borrowings of
RMB177422967.69 which were guaranteed by the Company and secured by a mortgage over its own real estate property. For details of
the collateral please refer to Note 22 “Assets with restricted ownership” in Section V of the Notes.Note 4: For details of loans obtained through the guarantee provided by actual controllers of the Company the Company andits subsidiaries please refer to “Note XIV Related parties and related party transactions - 5. Related parties and related party transactions –
4-(3). Related party guarantees” in this Section.
33. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Convertible corporate bonds 447655547.48
Less: Bonds payable due within one year 7403847.66
Total 440251699.82
1762025 Annual Report of Yunnan Energy New Material Co. Ltd.
(2) Changes in bonds payable: (excluding preferred shares classified as financial liabilities perpetual bonds
and other financial instruments)
Unit: RMB
Shares
Issued Interest Amortizatio Paid in converted
Name of bond Par value Coupo
provisione
Issue date Term Issue size Openin in n of the in the Closing Defauln g curren d by par discounts current current balance t or
rate balance t value and period period not
period premiums
Convertible 0.40% - -
corporate bonds 160000 Februar 160000000- 440251699.8 12659200.10 y 11 6 years 0.00 241630 45049460 No
of Yunnan 2 8000.0 2020 0.00 0.00
Energy 0 2.00
Total — - -1600000000440251699.8 12659200. ——241630 45049460.2180.000.00
00
(3) Explanation on convertible corporate bonds
According to the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange and the Prospectus of Yunnan Energy New Material
Co. Ltd. on the Public Issuance of Convertible Corporate Bonds the debt and share conversion period of Yunnan Energy commences from the
first trading day in the six months after the end of the issuance to the maturity date of the convertible corporate bonds that is from August 17 2020
to February 11 2026 and the initial conversion price is RMB64.61 per share.On May 21 2020 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
implements the 2019 annual equity distribution plan the conversion price of debts and shares of Yunnan Energy is adjusted from RMB64.61 per
share to RMB64.49 per share.On September 3 2020 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the
Company adopts the non-public issuance of new shares the conversion price of debts and shares of Yunnan Energy is adjusted to RMB65.09 per
share.As at September 28 2020 in accordance with the Announcement on the Non-adjustment of Convertible Corporate Bond Conversion
Price for the Repurchase and Cancellation of Some Restricted Shares the Company repurchased and cancelled the Company’s restricted shares
held by the four incentive recipients because the personal assessment grade of the four incentive recipients was “good” when the Company’s
2017 Restricted Stock Incentive Plan was unlocked for the third time. Due to the small proportion of the repurchased and cancelled shares in the
Company’s total share capital after the repurchase and cancellation the conversion price of debts and shares of Yunnan Energy remained unchanged
at RMB65.09 per share.On April 30 2021 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
implements the 2020 annual equity distribution plan the conversion price of debts and shares of Yunnan Energy is adjusted to RMB64.92 per share.On May 16 2022 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
Implemented the 2021 annual equity allocation plan the conversion price of debts and shares of Yunnan Energy is adjusted to RMB64.62 per share.On June 20 2023 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
implemented non-public issuance of Renminbi ordinary shares the conversion price of debts and shares of Yunnan Energy is adjusted to RMB66.64
per share.On July 20 2023 according to the Announcement on the Non-adjustment of Convertible Corporate Bond Conversion Price for the Repurchase
and Cancellation of Some Restricted Shares the Company repurchased and cancelled the Company’s certain restricted shares held by 2022
Stock Options and Restricted Stock Incentive Plan the conversion price of debts and shares of Yunnan Energy is adjusted to RMB64.64 per share.On August 21 2023 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
implements the 2022 annual equity distribution plan the conversion price of debts and shares of Yunnan Energy is adjusted to RMB64.46 per share.On September 21 2023 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the
Company implements the 2023 semi-annual equity distribution plan the conversion price of debts and shares of Yunnan Energy is adjusted to
RMB66.26 per share.On June 3 2024 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the Company
implements the 2023 annual equity distribution plan the conversion price of debts and shares of Yunnan Energy is adjusted to RMB64.73 per share.On June 6 2024 according to the Announcement on the Non-adjustment of Convertible Corporate Bond Conversion Price for the Repurchase
and Cancellation of Some Restricted Shares the conversion price of debts and shares of Yunnan Energy remained unchanged at RMB64.73 per
share due to the Company’s repurchase and cancellation of restricted shares.On November 6 2024 according to the Announcement on the Adjustment of the Conversion Price of Convertible Corporate Bonds as the
Company implements the repurchase and cancellation of shares the conversion price of debts and shares of Yunnan Energy was adjusted to
RMB64.92 per share.On February 10 2025 the Company completed the downward revision procedures for the conversion price of the debts and shares of Yunnan
Energy. As from February 11 2025 the conversion price of the debts and shares of Yunnan Energy was revised downward from RMB64.92 per share
to RMB32.00 per share.On March 21 2025 the Company completed the repurchase and cancellation of an aggregate of 35835 restricted shares held by 50 incentive
recipients under the 2022 Stock Option and Restricted Stock Incentive Plan and an aggregate of 1735482 restricted shares held by 20 incentive
recipients under the first grant of the 2024 Restricted Stock Incentive Plan. Pursuant to the relevant provisions on the adjustment of the conversion
price of convertible corporate bonds the Company made a corresponding adjustment to the conversion price of the debts and shares of Yunnan
Energy. As from March 24 2025 the conversion price of the debts and shares of Yunnan Energy was adjusted from RMB32.00 per share to
RMB32.01 per share.On August 1 2025 the Company completed the repurchase and cancellation of an aggregate of 330036 restricted shares held by 624 incentive
recipients under the 2022 Stock Option and Restricted Stock Incentive Plan an aggregate of 580946 restricted shares held by 115 incentive recipients
under the first grant of the 2024 Restricted Stock Incentive Plan an aggregate of 341400 restricted shares held by 14 incentive recipients and an
1772025 Annual Report of Yunnan Energy New Material Co. Ltd.
aggregate of 108000 restricted shares held by 4 incentive recipients. As the repurchased and cancelled shares accounted for a small proportion of the
Company's total share capital the conversion price of the debts and shares of Yunnan Energy remained unchanged at RMB32.01 per share.During the period from September 10 2025 to October 9 2025 the closing price of the Company's stock was not lower than 130% of the
then-current conversion price of the debts and shares of Yunnan Energy (i.e. RMB32.01 per share) (i.e. RMB41.61 per share) for fifteen
trading days. According to the terms of the Prospectus the conditional redemption clause for the debts and shares of Yunnan Energy was
triggered. The conditional redemption clause for the debts and shares of Yunnan Energy was triggered on October 9 2025. As of the close of
trading on the redemption record date (October 30 2025) there were 24163 bonds of the debts and shares of Yunnan Energy still unconverted
and the number of the debts and shares of Yunnan Energy redeemed this time was 24163 bonds. As from November 10 2025 the debts and
shares of Yunnan Energy issued by the Company were delisted from the Shenzhen Stock Exchange.
34. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease payments 1028571.48
Less: Unrecognized financing expenses 18966.29
Less: Lease liabilities due within one year 1009605.19
Total 0.00
35. Long-term payables
Unit: RMB
Item Closing balance Opening balance
Long-term payables 384054475.96 172792328.77
Total 384054475.96 172792328.77
a) Long-term payables by nature of the amount
Unit: RMB
Item Closing balance Opening balance
Finance lease payables 309770816.60
Equity repurchase obligation 187192328.77 172792328.77
Less: Long-term payables due within 1 year 112908669.41
Total 384054475.96 172792328.77
36. Deferred income
Unit: RMB
Increase for Decrease for the
Item Opening balance the period Closing balance Reason
period
Government subsidies Details of the Company's
related to assets government subsidies
are set out in Note 9 –
1367166321.73 308060488.10 130645511.52 1544581298.31 “GovernmentSubsidies” (II)
Liabilities related to
government subsidies
Government subsidies Details of the Company's
related to income government subsidies
are set out in Note 9 –
315355.87 940000.00 315355.87 940000.00 “GovernmentSubsidies” (II)
Liabilities related to
government subsidies
VAT deduction 15285103.47 51649687.10 51523563.73 15411226.84
Total 1382766781.07 360650175.20 182484431.12 1560932525.15 --
37.Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Investment subsidy for aseptic packaging production project (Note 1) 44800000.00 18600000.00
1782025 Annual Report of Yunnan Energy New Material Co. Ltd.
Investment subsidy for the Hungarian factory (Note 2) 244204248.10
Total 44800000.00 262804248.10
Other explanations:
Note 1: Hongchuang Packaging (Anhui) Co. Ltd. a third-level subsidiary of the Company constructed the Hongchuang
aseptic packaging production base project in Ma An Shan City Anhui Province with policy support from the local
government. According to the relevant provisions of the investment agreement the government disburses conditional fixed
asset investment subsidies in advance and after the commitments under the investment agreement are fulfilled the subsidy
shall be recognized in accordance with the government subsidy accounting standards.Note 2: SEMCORP Hungary Kft. a third-level subsidiary of the Company has built a factory in Hungary with policy
support from the local government. An initial subsidy for the factory investment is provided by the government in the form of
a grant.
38.Share capital
Unit: RMB
Increase or decrease (+
-)
Opening balance Closing balance
Bonus Conversion of
New issues issuance reserve into share Others Subtotal
Total amount of
shares 971279156.00
1407268
0.00-3131699.0010940981.00982220137.00
Description of changes in share capital:
1.The convertible bonds publicly issued by the Company entered the share transfer period on August 17 2020. As of
December 31 2025 the Company’s share capital increased by RMB14072680.00 due to the share transfer.
2.The Company repurchased and cancelled the restricted shares resulting in a decrease of share capital by
RMB3131699.00 during the current period.
39. Other equity instruments
(1) Outstanding preferred shares perpetual bonds and other financial instruments as at the end of the Reporting
Period
Under the Approval of the Issuance of Convertible Corporate Bonds by Yunnan Energy New Material Co. Ltd. (Zheng
Jian Xu Ke [2019] No. 2701) issued by the China Securities Regulatory Commission the Company publicly issued 16
million convertible corporate bonds on February 11 2020 which was calculated as the value of the debt instruments of the
convertible corporate bonds was RMB1408703126.08 and the value of the equity instruments was RMB177419515.43 by
referring to the interest rates of the credit bonds of similar enterprises with AA credit rating and similar maturities in the market
and deducting the bond issuanceexpenses.
(2) Table of changes in outstanding preferred shares perpetual bonds and other financial instruments
as at the end of the Reporting Period
Unit: RMB
Outstanding financial At the beginning of the period
Increase for the
period Decrease for the period At the end of the period
instruments
Number of Number Book Number of Number of
shares Book value of shares value shares Book value shares Book value
Equity instrument of 4529109.00 50222020.25 4529109.00 50222020
convertible corporate bonds .25
Total 4529109.00 50222020.25 4529109.00 50222020
Explanations on changes in other financial instruments and reasons thereof as at the end of the R.e2p5orting Period and the basis for
related accounting treatment
In 2025 the Company’s “Energy Convertible Bonds” decreased by RMB450494600.00 (4504946.00 bonds) due to the transfer of
14072680 shares and reduced the other equity instrument by RMB49954083.51; the early redemption of convertible bonds
decreased by RMB2416300.00 (24163 bonds redeemed) and reduced other equity instruments by RMB267936.74.
1792025 Annual Report of Yunnan Energy New Material Co. Ltd.
40. Capital reserve
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Capital premium (capital stock
premium) 14508514000.17 582816606.05 84266539.38 15007064066.84
Other capital reserve 88375136.99 621173.46 3854413.21 85141897.24
Total 14596889137.16 583437779.51 88120952.59 15092205964.08
Other explanations including changes and reasons thereof as at the end of the Reporting Period:
Description of Capital reserve:
1. The capital premium (capital stock premium) increased by RMB582816606.05 for the period mainlybecause:
(1) The convertible bonds publicly issued by the Company entered the share transfer period on August 17 2020. The
Company’s capital reserve increased by RMB482567426.75 due to the share transfer.
(2) The receipt of capital contributions from shareholders by the Company resulted in an increase in capital reserve by
RMB100157698.10.
(3) The subsidiary Shanghai Energy New Material Technology Co. Ltd. repurchased minority shareholders’ shares of
Chongqing Newmi resulting in an increase in capital reserve by RMB91481.20.
2. The capital premium (capital stock premium) decreased by RMB84266539.38 for the period mainly because:
(1) The change in the shareholding ratio of the subsidiary Yunnan Hongchuang Packaging Co. Ltd. resulted in a
decrease in capital reserve by RMB456358.76.
(2) The repurchase and cancellation of restricted shares by the Company resulted in a decrease in capital reserve by
RMB83681306.73.
(3) The full redemption of convertible bonds and the payment of zero bond proceeds to investors resulted in a decrease in capital reserve
by RMB128873.89.
3. The increase of other capital reserves was RMB621173.46 for the period mainly because:
(1) The subsidiary Yunnan Hongchuang Packaging Co. Ltd. implemented stock incentive for employees and recognized
related expenses for share-based payments resulting in an increase of RMB621173.46 in other capital reserves.
4.The decrease of other capital reserves was RMB3854413.21 for the period mainly because the Company recalculated
and recognized share-based payment expenses for the employee equity incentive due to the performance targets not being met
resulting in a decrease of RMB3854413.21 in other capital reserves.
41. Treasury stock
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Equity incentive repurchases 200072157.39 200072157.39
Restricted share-based payment 137866944.98 86522245.44 51344699.54
Total 337939102.37 86522245.44 251416856.93
Other explanations: Due to the repurchase and cancellation of restricted shares by the Company treasury shares decreased
by RMB86522245.44.
42. Other comprehensive income
Unit: RMB
Amount for the current period Closingbalance
Less:
Amount
included Less: Amount
into other included into
Amount comprehens other
Opening incurred ive income comprehensive Less: After-tax After-tax
Item balance before the in the prior income in the Income amount amount
income tax period and prior period and tax attributable attributable
in the current transferred transferred into expense to the parent to minority
period into the the retained company shareholders
profit and earnings in the
loss in the current period
current
period
1802025 Annual Report of Yunnan Energy New Material Co. Ltd.
I. Other comprehensive
income that cannot be - - - -
reclassified subsequently to -28500000.00 5000000.0 1250000.0 3750000.00 32250000.0
profit or loss 0 00
Changes in fair value of - - - -
other equity instrument -28500000.00 5000000.0 1250000.0 3750000.0 32250000.investments 0 0 0 00
II. Other comprehensive
income that will be
reclassified subsequently to -69299317.85
329933455.314163594.115769861.244864276
55243.27
profit or loss
Exchange differences
from translation of
statements denominated in -69299317.85
329933455.314163594.115769861.244864276
55243.27
foreign currencies
Total other comprehensive
-97799317.85324933455.-310413594.115769861.212614276
income 55 1250000.0 2 43 .27
0
43. Surplus reserve
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Statutory surplus reserve 399236371.96 17960959.72 417197331.68
Reserve fund 21153681.64 21153681.64
Enterprise development fund 1416680.73 1416680.73
Total 421806734.33 17960959.72 439767694.05
Explanations on surplus reserve: The statutory surplus reserve is provided at 10% of the net profit of the Company in accordance with the Company
Law and the Company’s Articles of Association.
44. Undistributed profit
Unit: RMB
Item Current period Previous period
Undistributed profit before adjustments at the end of the prior period 8866770927.54 10945879862.09
Undistributed profit adjusted at the beginning of the period
8866770927.5410945879862.09
Add: Net profit attributable to owners of parent company in the current period
142548339.91-556317501.09
Less: Withdrawal of statutory surplus reserve 17960959.72 22791931.34
Common share dividends payable 1499999502.12
Undistributed profits at the end of the period 8991358307.73 8866770927.54
45．Operating income and operating cost
Unit: RMB
Amount for the current period Amount for the previous period
Item
Income cost Income cost
Main businesses 13274496027.30 10926185433.75 9815794907.87 8976180560.42
Other businesses 358231108.71 147370271.73 347860885.83 62565490.56
Total 13632727136.01 11073555705.48 10163655793.70 9038746050.98
Whether the lowest of the audited total profit net profit and net profit after deducting non-recurring gains or losses for the Reporting Period is
negative: Yes No
1812025 Annual Report of Yunnan Energy New Material Co. Ltd.
Breakdown information of operating income and operating cost:
Unit: RMB
Segment 1 Total
Contract category
Operating income Operating cost Operating income Operating cost
Business type 13274496027.30 10926185433.75 13274496027.30 10926185433.75
Including:
Film products 12206226126.86 10051303105.58 12206226126.86 10051303105.58
Cigarette labels 2018322.00 2803145.61 2018322.00 2803145.61
Aseptic packaging 968736188.13 750605568.94 968736188.13 750605568.94
Specialty paper 30342231.61 27339467.89 30342231.61 27339467.89
Other products 67173158.70 94134145.73 67173158.70 94134145.73
By business region 13274496027.30 10926185433.75 13274496027.30 10926185433.75
Including:
Southwest China 3178356929.02 2667462030.74 3178356929.02 2667462030.74
East China 5449700634.73 4639717853.19 5449700634.73 4639717853.19
North China 324403382.67 280018509.11 324403382.67 280018509.11
Southcentral
China 1848042903.20 1695212064.03 1848042903.20 1695212064.03
Northwest China 174149259.60 148760614.04 174149259.60 148760614.04
Northeast China 19183282.73 15502342.41 19183282.73 15502342.41
Overseas region 2280659635.35 1479512020.23 2280659635.35 1479512020.23
46. Taxes and surcharges
Unit: RMB
Item Amount for current period Amount for previous period
City maintenance and construction tax 19072454.33 12061643.77
Education surcharge 14801927.39 10823595.22
Resource tax 3163024.87
Property tax 58097101.34 44807551.79
Land using tax 11409209.27 14868310.83
Vehicle and vessel usage tax 37291.40 10451.71
Stamp duty 20993254.37 13134014.58
Land appreciation tax 1442404.83
Others 784414.37 566911.32
Total 129801082.17 96272479.22
Other explanations:
47．Administrative expenses
Unit: RMB
Item Amount for current period Amount for previous period
Employee compensation 406062547.46 280348818.55
Share-based payment -3512533.25 -13025775.09
Depreciation and amortization 113953477.02 88583836.72
Agencies 104419384.65 138290456.03
Maintenance costs 8871746.39 5630388.12
Office expense 21597699.88 10720736.92
Travel expense 17381597.91 8597919.45
Entertainment expense 5513699.09 4950886.73
1822025 Annual Report of Yunnan Energy New Material Co. Ltd.
Environmental protection fee 26238273.21 18650827.87
Others 55925830.24 57416842.84
Total 756451722.60 600164938.14
48. Selling expense
Unit: RMB
Item Amount for current period Amount for previous period
Employee compensation 42376659.83 31752574.37
Sales agency expense 61038798.02 75057202.88
Depreciation and amortization 10857584.30 10969864.76
Entertainment expense 7492938.84 7380162.90
Travel expense 5527763.21 4788870.86
Share-based payment 806782.93 1618519.39
Others 19303989.06 13696212.10
Total 147404516.19 145263407.26
49. R&D expenses
Unit: RMB
Item Amount for current period Amount for previous period
Material costs 190657127.08 212097316.60
Employee compensation 266236108.99 271854330.56
Depreciation and amortization 86154672.82 56020419.29
Energy consumption costs 102658484.61 80684132.22
Others 43912619.64 42186981.02
Total 689619013.14 662843179.69
50. Financial expenses
Unit: RMB
Item Amount for current period Amount for previous period
Interest expenses 341745309.21 353090934.03
Less: Interest income 45913869.63 61700514.83
Net exchange gains or losses 16384941.09 15310920.82
Bank charges 8030742.51 7562273.87
Total 320247123.18 314263613.89
51.Other income
Unit: RMB
Sources of other income Amount for current period Amount for previous period
Government subsidy 208948295.38 221599426.46
Personal income tax withholding fee 1129596.00 461445.22
Additional deduction of input tax 64804478.86 83034083.97
Tax incentives for independent
entrepreneurship 2750052.87 944871.26
Total 277632423.11 306039826.91
52.Investment income
Unit: RMB
Item Amount for current period Amount for previous period
Gain from long-term equity investments under the equity method -2147342.85 1347859.55
Investment income from disposal of long-term equity investments -59743.89
Investment income from trading financial assets during the holding period -15436640.64
Investment income from derecognition of financial assets at amortized cost -20942756.34 -13173229.23
Investment income from disposal of financial assets at amortized cost through
the current profits or losses 1324200.00
1832025 Annual Report of Yunnan Energy New Material Co. Ltd.
Proceeds from wealth management products
14236608.6327410362.50
Total -8853490.56 1412808.29
53. Credit impairment losses
Unit: RMB
Item Amount for current period Amount for previous period
Bad debt losses on notes receivable 2456984.36 6124630.20
Bad debt losses on accounts receivable -32071234.51 1256441.23
Bad debt losses on other receivables -198770.88 -14288.61
Total -29813021.03 7366782.82
Other explanations: In the above table losses are presented with a “–” sign.
54. Asset impairment losses
Unit: RMB
Item Amount for current period Amount for previous period
I. Inventory depreciation losses and contract
performance cost impairment losses -298705532.41 -456866962.99
VI. Construction in progress impairment losses -4229530.67
X. Goodwill impairment losses -1125126.29
Total -298705532.41 -462221619.95
Other explanations: In the above table losses are presented with a “–” sign.
55.Gains on disposal of assets
Unit: RMB
Source Amount for current period Amount for previous period
Gains or losses from disposal of fixed assets -1900407.49 2755562.94
Total -1900407.49 2755562.94
56. Non-operating income
Unit: RMB
Amount of non-recurring gain or
Item Amount for current period Amount for previous period loss included in the current
period
Accepting donations 87105.25 52000.00 87105.25
Default compensation receipt 28918806.80 719483.46 28918806.80
Payments that do not need to be
made upon approval 1.13 1492605.45 1.13
Abandonment gains or losses of
non- current assets 61946.90 61946.90
Others 3620303.75 3209157.05 3620303.75
Total 32688163.83 5473245.96 32688163.83
57. Non-operating expenses
Unit: RMB
Amount of non-recurring gain or
Item Amount for current period Amount for previous period loss included in the current
period
Donation 452095.13 843660.42 452095.13
Abandonment losses of non-
current assets 6365224.37 3332501.62 6365224.37
Expenses on compensation and
fines 37418039.06 6346398.59 29458311.05
Others 4912819.33 1207829.36 12872547.34
Total 49148177.89 11730389.99 49148177.89
1842025 Annual Report of Yunnan Energy New Material Co. Ltd.
58. Income tax expense
(1) Table of income tax expenses
Unit: RMB
Item Amount for current period Amount for previous period
Current income tax expenses 248159825.94 296309291.77
Deferred income tax expenses 48485062.43 -481213791.10
Total 296644888.37 -184904499.33
(2) Adjustment process of accounting profit and income tax expense
Unit: RMB
Item Amount for current period
Total profit 437547930.81
Income tax expenses calculated based on the statutory/applicable tax rates 109348992.05
Impact of different tax rates applied to subsidiaries -29914256.12
Impact of adjusting income tax in previous periods 124490145.22
Impact of non-taxable revenue -14007255.04
Impact of non-deductible cost expense and loss 28588695.61
Impact of deductible temporary differences or deductible losses of the deferred income
tax assets not recognized in the current period 167094603.12
R&D expenses plus deduction -87902861.23
Allowed credit for investment in special equipment -492089.01
Deduction for wages of disabled employees
-583111.11
Others 22024.88
Income tax expenses 296644888.37
59.Items of cash flow statement
(1) Cash receipts related to operating activities
Other cash receipts related to operating activities
Unit: RMB
Item Amount for current period Amount for previous period
Interest income 46449698.02 60737542.17
Subsidy income 160245331.95 434555563.04
Recovered deposit 25876491.89 32336723.67
Petty cash receipts 1965097.14 1164957.00
Other accounts current 6286417.18 1105574.42
Income from penalty and liquidated
damages 28918806.80 719483.46
Others 4020694.76 3261157.05
Total 273762537.74 533881000.81
Other cash payments related to operating activities
Unit: RMB
Item Amount for current period Amount for previous period
Deposit payment 135009142.29 171384771.65
Payments for other accounts current 19563100.26 15886246.40
Administrative expenses and R&D
expenses 370127283.45 357674317.95
1852025 Annual Report of Yunnan Energy New Material Co. Ltd.
Operating expenses 87079419.02 96576091.88
Service charge 8030742.51 7562273.87
Penalty expenditure 18905443.47 6197090.59
Donation expenditure 452095.13 843660.42
Petty cash payments 124062.99 414124.58
Others 749987.32 1357137.35
Total 640041276.44 657895714.69
(2) Cash related to investment activities
Cash received from disposal of investments
Unit: RMB
Item Amount for current period Amount for previous period
Redemption of wealth management products
685000000.001271927500.00
Total 685000000.00 1271927500.00
Cash paid for investments
Unit: RMB
Item Amount for current period Amount for previous period
Purchase of wealth management products 295000000.00 1101449569.44
Investments in associates 16247500.00
Purchase of minority equity in Chongqing
Newmi 722769.41
Payments for investments in other equity
instruments 6000000.00
Total 311970269.41 1107449569.44
Other cash payments related to investment activities
Unit: RMB
Item Amount for current period Amount for previous period
Deposit for letter of credit and bill 30000000.00 24857122.38
Loss on foreign exchange locking 20306695.04
Ping An insurance custody fund 14925000.00
Total 44925000.00 45163817.42
(3) Cash related to financing activities
Other cash receipts related to financing activities
Unit: RMB
Item Amount for current period Amount for previous period
Fund investment receipts 160000000.00
Finance lease receivables 440259811.11
Total 440259811.11 160000000.00
1862025 Annual Report of Yunnan Energy New Material Co. Ltd.
Other cash payments related to financing activities
Unit: RMB
Item Amount for current period Amount for previous period
Forfaiting business deposit 525147861.40 672587862.20
Property lease payment 1028571.48 1601902.98
Share repurchase 199997253.55
Restricted stock repurchases 84591634.12 36518711.91
Finance lease payment 62904730.11
Total 673672797.11 910705730.64
Changes in liabilities arising from financing activities
□ Applicable □Not applicable
Unit: RMB
Increase for the period Decrease for the period
Item Opening balance Non-cash Non-cash Closing balance
Cash movements movements Cash movements movements
Short-term
borrowings 8136897962.50 10492447391.03 145079188.41 9664841401.30 1195971203.14 7913611937.50
Long-term
borrowings 6733770131.16 1829175814.84 181281712.45 1790801788.50 6953425869.95
Bonds
payable 447655547.48 9368424.72 10603490.92 446420481.28
Long-term
accounts 172792328.77 310000000.00 20170816.60 6000000.00 496963145.37
payable
Lease
liabilities 1009605.19 18966.29 1028571.48
Total 15492125575.10 12631623205.87 355919108.47 11473275252.20 1642391684.42 15364000952.82
60.Supplementary information of cashflow statement
(1) Supplementary information of cash flow statement
Unit: RMB
Amount for the Amount for the
Supplementary information current period previous period
1. Reconciliation of net profit to cash flows from operating activities
Net profit 140903042.44 -659897159.17
Add: Provision of impairment of assets 298705532.41 462221619.95
Losses of credit impairment 29813021.03 -7366782.82
Depreciation of fixed assets depreciation of oil and gas assets and depreciation of
productive biological assets 2136600592.49 1761236323.30
Depreciation of right-of-use assets 1270593.52 1618716.33
Amortization of intangible assets 44634153.57 32270899.40
Amortization of long-term deferred expenses 1277239.95 1090006.19
Losses from disposal of fixed assets intangible assets and other long-term assets
(gain is indicated with “-”) 1900407.49 -2755562.94
Losses from scrapping of fixed assets (gain is indicated with “-”) 6303277.47 3332501.62
Losses from change of fair value (gain is indicated with “-”)
Financial expenses (gain is indicated with “-”) 341745309.21 387091376.86
Investment losses (gain is indicated with “-”) 8853490.56 -1412808.29
Decrease in deferred income tax assets (increase is indicated with “-”) 16797737.90 -199626820.57
Increase in deferred income tax liabilities (decrease is indicated with “-”) 32252468.56 -281817774.64
1872025 Annual Report of Yunnan Energy New Material Co. Ltd.
Decrease in inventory (increase is indicated with “-”) 384639301.24 -419334904.17
Decrease in operating receivables (increase is indicated with “-”) -3416383584.83 -1008250349.46
Increase in operating payables (decrease is indicated with “-”) 1117434008.87 1110332472.51
Others -3108783.91 -20482699.00
Net cash flows from operating activities 1143637807.97 1158249055.10
2. Significant investment and financing activities not involving cash receipts and
payments
Conversion of debt into capital
Convertible corporate bonds due within one year
Fixed assets acquired under finance leases
3. Net changes in cash and cash equivalents:
Closing balance of cash 2238147915.40 1733460483.14
Less: Opening balance of cash 1733460483.14 2789034001.85
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents 504687432.26 -1055573518.71
(2) Lease related total cash outflows
Lease related total cash outflows for the current period were RMB1028571.48 (previous period: RMB1601902.98).
(3) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2238147915.40 1733460483.14
Including: Cash on hand 66061.33 92218.87
Cash at bank that can be
readily drawn on demand 2238081854.07 1733368264.27
III. Closing balance of the cash and cash
equivalents 2238147915.40 1733460483.14
(4) Monetary funds not included in the cash and cash equivalents
Unit: RMB
Amount for the previous Reason for it not to be included in the
Item Amount for the current period period cash and cash equivalents
Monetary funds 4164405.10 1937438.61 Interest receivable not due
Other monetary funds 667132525.30 838743097.78 Restricted
Total 671296930.40 840680536.39
Other explanations:
61.Monetary items denominated in foreign currencies
(1) Monetary items denominated in foreign currencies
Unit: RMB
Closing balance of foreign Closing balance of converted
Item currency Exchange rate RMB
Monetary funds 561660440.21
Including: USD 73372882.42 7.0288 515723295.00
Euro 911563.55 8.2355 7507181.61
HKD 11.50 0.9035 10.39
JPY 566182364.44 0.0448 25365095.09
HUF 567330248.98 0.0213 12106118.65
MYR 553576.69 1.7319 958739.47
Accounts receivable 381656568.76
Including: USD 48536382.17 7.0288 341152523.23
1882025 Annual Report of Yunnan Energy New Material Co. Ltd.
Euro
HKD
JPY 904168706.17 0.0448 40504045.53
Other receivables 14894.34
Including: MYR 8600.00 1.7319 14894.34
Accounts payable 425852244.84
Including: USD 57298338.03 7.0288 402738558.46
JPY 497836177.62 0.0448 22301567.25
Euro 98612.00 8.2355 812119.13
(2) Notes to overseas business entity including disclosures of significant principal place of business functional
currency and basis for determining the functional currency as well as reasons for changes in functional currency for
those significant overseas business entity
Applicable□Not applicable
62.Lease
(1) The Company as the lessor
□ Applicable □Not applicable
The variable lease payments that are not included in the measurement of the lease liabilities
□ Applicable Not applicable
The lease expense of the short-term leases and low-value assets that are simplified in accounting treatment: Applicable □Not applicable
Lease related total cash outflows: RMB1028571.48
VIII. R&D Expenses
Unit: RMB
Item Amount for current period Amount for previous period
Material costs 190657127.08 212097316.60
Employee compensation 266236108.99 271854330.56
Depreciation and amortization 86154672.82 56020419.29
Energy consumption costs 102658484.61 80684132.22
Others 43912619.64 42186981.02
Total 689619013.14 662843179.69
Including: Expensed R&D expenditure 689619013.14 662843179.69
IX. Changes in the Consolidation Scope
1. Changes in the consolidation scope for other reasons
Explain the changes in the scope of consolidation caused by other reasons (such as the establishment of new subsidiaries liquidation of
subsidiaries etc.) and relevant information:
Subsidiaries newly included in the consolidation scope in the current period:
Company name Reason for change
HONGCHUANG PACKAGINGMALAYSIA SDN. BHD New investment
Yuxi Energy Frontier New Materials Co. Ltd. New investment
Subsidiary not included in the consolidation scope in the current period:
Company name Reason for change
Yunnan Dexin Paper Co. Ltd. Cancellation
X. Interests in Other Entities
1. Interests in subsidiaries
(1) Constitution of the enterprise group
Unit: RMB
Principal Shareholding
Name of subsidiaries Registered capital place of Place ofregistration Nature of business proportion
Method of
business Direct Indirect acquisition
Yunnan Jiechen Packaging 150000000.00 Yuxi Yuxi Yunnan Production and salesMaterials Co. Ltd. Yunnan of packaging materials 100.00% Newly established
Yunnan Hongchuang Yuxi Production and sales
Packaging Co. Ltd. 153356819.00 Yunnan Yuxi Yunnan of aseptic packaging 52.17% Newly establishedbox
Hongchuang Packaging 300000000.00 Ma An Shan Ma An Shan Production and sales 100.00% Newly established
1892025 Annual Report of Yunnan Energy New Material Co. Ltd.
(Anhui) Co. Ltd. Anhui Anhui of aseptic packaging
box
HONGCHUANG
PACKAGING Production and
MALAYSIA SDN. Malaysia Malaysia sales of aseptic 52.00% Newly established
BHD packaging box
Yunnan Hongta Plastic Co. Ltd. 330723617.77 YuxiYunnan Yuxi Yunnan BOPP film productionand sales 100.00% Newly established
Hongta Plastic (Chengdu)
Co. Ltd. 172581213.03
Chengdu Chengdu BOPP film
Sichuan Sichuan production and sales 100.00% Newly established
Yuxi Feiermu Trading Co. Ltd. 39907500.00 Yuxi Yunnan Yuxi Yunnan Trading 100.00% Newly established
Ningbo Energy New 10000000.00 Ningbo NingboMaterial Co. Ltd. Zhejiang Zhejiang Trading 100.00% Newly established
Xiamen Energy New 1600000000.00 Xiamen Fujian Xiamen Fujian Production and salesMaterials Co. Ltd. of new materials 100.00% Newly established
Shanghai Energy New Material
Research Co. Ltd. 100000000.00 Shanghai Shanghai Technical services 100.00% Newly established
Shanghai Energy New Material Production and sales Merger of enterprises
Technology Co. Ltd. 389210834.00 Shanghai Shanghai of lithium battery 95.22%separator under common control
Zhuhai Energy New Material Zhuhai Zhuhai Production and sales
Technology Co. Ltd. 1600000000.00 Guangdong Guangdong of lithium battery 100.00% Newly establishedseparator
Wuxi Energy New Material Production and sales
Technology Co. Ltd. 1600000000.00
Wuxi
Jiangsu Wuxi Jiangsu of lithium battery 100.00% Newly establishedseparator
Jiangxi Tonry New Energy Production and sales Business combination
Technology Development 1200000000.00 Yichun YichunJiangxi Jiangxi of lithium battery 100.00% not under the commonCo. Ltd. separator control
Jiangxi Ruijie New Material 8000000.00 Yichun Yichun Production and sales Business combinationTechnology Co. Ltd. Jiangxi Jiangxi of packaging materials 82.00% not under the common
Suzhou GreenPower New 421741780.69 Suzhou Suzhou
Production and sales
Energy Materials Co. Ltd. Jiangsu Jiangsu of lithium battery 100.00%
Business combination
separator not under the common
Chongqing Energy Newmi Production and sales
Technological Co. Ltd. 291000000.00 Chongqing Chongqing of lithium battery 76.36%
Business combination
separator not under the common
Jiangxi Enpo New Material Yichun Yichun Production and
Co. Ltd. 600000000.00 Jiangxi Jiangxi sales of lithium 51.00% Newly establishedbattery separator
Jiangxi Energy New Material Yichun Yichun Production and sales
Technology Co. Ltd. 100000000.00 Jiangxi Jiangxi of lithium battery 100.00% Newly establishedseparator
Chongqing Energy New Production and sales
Material Technology Co. Ltd. 1600000000.00 Chongqing Chongqing of lithium battery 100.00% Newly establishedseparator
Hainan Energy Investment Chengmai Chengmai
Co. Ltd. 390000000.00 County Hainan County Hainan
Investment and
Province Province technology service
100.00% Newly established
Chuangxin New
Material(Hong Kong) Co. Hong Kong Hong Kong Trading 100.00% Newly established
Ltd.SEMCORP Global Holdings Hungary Hungary Investment andKft. technology service 100.00% Newly established
Production and sales
SEMCORP Hungary Kft. Hungary Hungary of lithium battery 100.00% Newly established
separator
SEMCORP Properties Kft. Hungary Hungary Sales of self-ownedreal estate 100.00% Newly established
SEMCORP America Inc. USA USA Investment andtechnology services 100.00% Newly established
SEMCORPManufacturing Production and sales
USA LLC USA USA of lithium battery 100.00% Newly establishedseparator
SEMCOMALAYSIA SDN. Production and sales
BHD. Malaysia Malaysia of lithium battery 100.00% Newly establishedseparator
Jiangsu Energy New Material Changzhou Changzhou Production and sales
Technology Co. Ltd. 550000000.00 Jiangsu Jiangsu of lithium battery 100.00% Newly establishedseparator
Jiangsu Ruijie New Material 200000000.00 Changzhou Changzhou Production and salesTechnology Co. Ltd. Jiangsu Jiangsu of packaging materials 100.00% Newly established
Hunan Energy Frontier New
Material Technology Co. 25000000.00 Changsha Changsha Production and sales
Ltd. Hunan Hunan of new materials
52.00% Newly established
1902025 Annual Report of Yunnan Energy New Material Co. Ltd.
Yuxi Energy Frontier New Technology
Materials Co. Ltd. 20000000.00 Yuxi Yunnan Yuxi Yunnan promotion and 100.00% Newly establishedapplication services
Hubei Energy New Material
Technology Co. Ltd. 1600000000.00 Jingmen Hubei Jingmen Hubei
Production and sales
of new materials 55.00% Newly established
Jiangsu Sanhe Battery
Material Technology Co. 100000000.00 Liyang Liyang Production and salesJiangsu Jiangsu of new materials 51.00% Newly establishedLtd.Energy (Zhuhai Economic and
Technological Development
Zone) New Material 5000000.00
Zhuhai Zhuhai
Guangdong Guangdong Trading 100.00% Newly established
Technology Co. Ltd.Yuxi Energy New Materials Co.Ltd. 500000000.00 Yuxi Yunnan Yuxi Yunnan
Production and sales
of new materials 100.00% Newly established
Shanghai Energy Trading Co.Ltd. 30000000.00 Shanghai Shanghai Trading 100.00% Newly established
Jiangsu Energy New Material
Research Co. Ltd. 200000000.00
Changzhou Changzhou Trading/technology
Jiangsu Jiangsu services 100.00% Newly established
Shanghai Jiezhiyuan New
Material Technology Co. Ltd. 20000000.00 Shanghai Shanghai Trading 100.00% Newly established
Shanghai Hengjieyuan
New Material 5000000.00 Shanghai Shanghai Trading 100.00%Newly established
Technology Co. Ltd.Explanation of the difference between shareholding ratio in subsidiaries and voting right ratio:
Basis for holding half or less of the voting rights but still controlling the investee and for holding more than half of the voting rights but not controlling
the investee:
For significant structured entities included in the consolidation scope the basis of control:
Basis for identifying whether the Company is the agent or the trustee:
Other explanation:
(2) Key non-wholly owned subsidiaries
Unit: RMB
Profit or loss attributable
Percentage of shares to minority shareholders Dividends declared to Closing balance ofName of subsidiaries held by minority in the current period minority shareholders in minority interests
shareholders the current period
Shanghai Energy New
Material Technology 4.78% -2206801.28 506724924.74
Co. Ltd.
(3) Main financial information of key non-wholly owned subsidiaries
Unit: RMB
Closing balance Opening balance
Name of Non- Non- Non- Non-
subsidiaries Current Total Current Total Current Total Current Totalcurrent current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Shanghai
Energy
New 140432 31655481 456987 439430
Material 25374.8 291.34 06666.1
276058456625533553423137912218743172433260777506642836327205867
15747.510.94298.458855.220678.36
79533.5
8162.33623.8686.19
Technology
Co. Ltd.Unit: RMB
Amount for current period Amount for previous period
Name of Total Cash flow from Total Cash flow from
subsidiaries Operating Operating
income Net profit comprehensive operating income Net profit comprehensive operating
income activities income activities
Shanghai Energy
New Material 12013331 -80248451.46 249664967.69 1039909485.45 8616878965.4 -976813990.69 -1160557653.66 1143914431.56Technology Co. 066.70 7
Ltd.XI. Government grants
1. Government subsidies recognised at the end of the reporting period at receivable amounts
1912025 Annual Report of Yunnan Energy New Material Co. Ltd.
□Applicable□Not applicable
2. Liability items relating to government grants
□Applicable □ Not applicable
Unit: RMB
Amount of Amount Amount Other changes Relation
Item related to accounting Opening balance new grants recognized in transferred to for the Closing balance with
for the period non-operating other income period assets/revenue
income for the
period for the period
Deferred income 1367481677.60 309000488.10 152828799.43 21867932.0 1545521298.4 31Related to assets
High-performance lithium-ion battery
separator project with an output of 90 5442278.64 2696405.76 2745872.88 Related to
million square meters assets
Technological transformation project
of the production line of lithium-ion 5844463.78 1080781.56 4763682.22 Related to
battery separator assets
Technological transformation project
of the second batch of industrial 4650000.00 900000.00 3750000.0 Related to assets
transformation in 2020 0
Municipal technological
transformation project for high-quality 6656250.00 1125000.00 5531250.00 Related to assetsdevelopment
Boiler upgrading and reconstruction
projects 1771477.12 196830.72 1574646.40
Related to
assets
Support subsidies of cleaner
production 1375000.00 1375000.00
Related to
assets
Talent leading 519148.93 51063.84 468085.09 Related to assets
National-level subsidy for new 152741.60 12907.80 139833.80 Related toenergy projects assets
Industrial Foundation Strengthening 1392040.00 1392040.0 Related toProject 0 assets
Subsidy for Smart Factory 1000000.00 1000000.0 Related to0 assets
Subsidies from the special fund for
high-quality economic development 105254153.(advanced equipment manufacturing 119562448.82 14308295.40 42 Related to assets
industry)
Provincial Enterprise Technology –
Industrial Innovation Capacity 500000.00 8351.82 491648.18 Related to
Building assets
Provincial-level special funds for high
quality development of manufacturing 592200.00 5434.50 586765.50 Related to
industry in 2023 assets
Subsidy from the Bureau of Industry
and Information Technology of
Zhuhai City for the Technological 1739900.0 1603279. Related to
Transformation Project of the 0 136620.40 60 assets
Lithium ion Battery Separator
Coating Production Line
Equipment Renewal and Technical
Transformation in Key Industrial 14190000.00 474861.10
1371513
Sectors 8.90
Related to assets
Subsidies for equipment of Wuxi 252250352.02 26628197. 225622154.Energy 50 52 Related to assets
National import discount for Wuxi
Energy 14369341.30 1420703.10
12948638.2
0 Related to assets
Special funds for the development of
provincial strategic emerging 21923076.96 2307692.31 19615384.65 Related to assetsindustries
Core technical know- how for 891332.35 1000000.industrialization 00 163225.00
1728107.
35 Related to assets
Fund for the development of digital 2456521.economy and digital transformation 2717391.30 260869.57 73 Related to assets
Technical transformation guidance
funds 584615.26 61538.47
523076.7
9 Related to assets
Subsidies for infrastructure
construction 20109000.40 1340599.92
1876840
0.48 Related to assets
Subsidies for equipment of Jiangxi
Tonry 609489610.07 66291525.00
543198085.
07 Related to assets
Special funds for basic projects 2467948.03 307692.48 2160255.55 Related to assets
Special funds for basic projects 615385.40 76922.88 538462.5Related to assets
1922025 Annual Report of Yunnan Energy New Material Co. Ltd.
2
Funds for the preparation 233066.53 14720.04 218346.49 Related to assets
National import discount for Jiangxi
Tonry 17677762.00 1744839.48
1593292
2.52 Related to assets
Special fund for the development of
small and medium-sized enterprises 2821932.90 500000.00 275711.94 3046220. Related to assets
at the provincial level 96
Technical transformation funds 5315935.36 2400000.0 755603.06 6960332.0 30 Related to assets
Special fund for the industrial 1600000.0 5115940.development at the provincial level 3816497.95 0 300557.07 88 Related to assets
Enterprise support funds 13797273.16 815097.96 12982175.20 Related to assets
Fund for the development of digital 595332.economy and digital transformation 600000.00 4667.34 66 Related to assets
Low-nitrogen transformation project
subsidy 614672.56 128442.48
486230.0
8 Related to assets
Enterprise development support funds
allocated by Gao’an Industrial Park
Management Committee – Land 9481234.85 200494.68
9280740.
17 Related to assets
Subsidy
Subsidies for infrastructure
construction 4769563.53 264975.72
4504587.
81 Related to assets
National import discount for Jiangxi 1488703.31 136981.56 1351721.Energy 75 Related to assets
Special fund for the industrial
development at the provincial 1986224.06 165311.28 1820912.78 Related to assetslevel
National import discount for 6892793.40 667044.48 6225748.Chongqing Energy 92 Related to assets
Investment subsidies for high-
performance lithium-ion battery 878923.microporous separator key project 932735.50 53811.60 90 Related to assets
(Phase I)
Special financial subsidy for the
lithium ion battery microporous 6697846.09 373833.24 6324012.separator production digitalized 85 Related to assets
workshop B
Ultra-long-term Special Government
Bonds for Equipment Renewal 16590000.00 98388.01
1649161
1.99 Related to assetsProjects
Affordable Housing Subsidy 490000.00 16028.04 473971.96 Related to assets
Subsidies for equipment of Jiangsu
Energy 13836120.15 1178719.92
1265740
0.23 Related to assets
Special funds for the development of
provincial strategic emerging 11011620.21 929097.00 10082523.21 Related to assetsindustries
Subsidies for buildings 67652101.57 3608112.12 64043989.45 Related to assets
Land subsidy 3525496.32 74503.68 3450992.64 Related to assets
Subsidies for equipment of Jiangsu 34649372.77 2765321.40 31884051.3Ruijie 7 Related to assets
Support fund for imported equipment
industry of Gao’an Municipal 15017548.35 1545796.08 13471752.27 Related to assetsPeople’s Government
Reward for Suzhou to build an
intelligent demonstration workshop of 197802.20 65934.12 131868.advanced manufacturing base in 2020 08
Related to assets
Key industrial technology 700000.innovation project funds of Suzhou 700000.00 00 Related to assets
National import discount for Suzhou 225083.GreenPower – RMB322100 265242.53 40159.39 14 Related to assets
National import discount for Suzhou
GreenPower – RMB1614800 1480233.34 124215.38 1356017.96 Related to assets
Financial rewards for effective
investment by industrial enterprises – 7418853.59 645799.99 6773053.RMB8000000 60
Related to assets
Strategic Emerging Industry Cluster 7774600.Demonstration 8425284.96 650684.65 31Related to assets
Industrial High-quality Development
Policy Project - 5G Construction and 415298.36 66746.83 348551.53Related to assetsApplication Project
Diaphragm Intelligent Manufacturing 424909.15 69358.75 355550.4Related to assets
1932025 Annual Report of Yunnan Energy New Material Co. Ltd.Project Based on “5G+Industrial 0Internet”
Highly Environmentally Adaptable
Sulfide Electrolyte Materials and 600000.00 600000. Related to assets
Electrolyte Membrane Research 00
District-level administrative approval 410631.pre-intermediary service project 432827.90 22196.28 62Related to assets
Provincial-level special funds for
high quality development of 3358968.95 6350000.00 608753.84 9100215.11Related to assetsmanufacturing industry
Financial rewards for promoting
scientific and technological 200000.0 200000. Related to assets
innovation and development 0 00
Fixed asset investment subsidies 4000000.00 130112.47 3869887.53 Related to assets
Land subsidy 14311329.82 299713.68 14011616.14 Related to assets
Subsidies for equipment of Jiangsu
Sanhe 2356975.89 233476.40
2123499.
49 Related to assets
Subsidies for buildings 17326872.50 1443906.00 15882966.50 Related to assets
Subsidy under the Special Fund for
High-Quality Economic Development
(Development of Advanced 10000000.0 192307.68 9807692. Related to assets
Equipment Manufacturing Industry) 0 32
Project
Hungarian Government Subsidy 244204248.10 8741103.29 21867932.0 257331076.4 85 Related to assets
35kV Cable trench subsidy 1501667.25 339999.96 1161667.29Related to assets
Special government appropriation
(Project with annual output of 70000 4239999.97 530000.00 3709999.97Related to assetstons)
Subsidies for the renovation of power
supporting projects 66666.33 50000.04
16666.2
9 Related to assets
Special funds for the construction of
municipal industrial park 399327.20 34977.60
364349.6
0 Related to assets
Subsidies of finance for the first
major technical equipment 188679.44 113207.52
75471.9
2 Related to assets
Subsidy for the annual Production of
1 Billion liquid packaging boxes 6618051.65 485008.44 6133043.21 Related to assetsproject
Special fund for the development of
small and medium-sized enterprises at 1953903.79 142728.72 1811175.the provincial level 07
Related to assets
VOCs subsidies for project governance 873064.36 120422.76 752641.60Related to assets
Application development of
asymmetric bonded separators for safe 712100.00 14052.46 698047.Related to assets
fast-charging lithium batteries 54
2. Related to income
National-level subsidy for new
energy projects 315355.87 315355.87 Related to income
Subsidy for the joint enterprise
scientific and technological 200000.0
breakthrough action 200000.00 Related to income促进科技创新 0发展奖励
Financial rewards for promoting
scientific and technological 300000.00 300000.0Related to income
innovation and development 0
Research on Preparation Technology
of Polymer Composite Electrolyte 440000.0
Membranes and Electrode 440000.00 0Related to income
Solidification
3. Government grants recognized in profit or loss for the period
□Applicable □ Not applicable
Unit: RMB
Item related to accounting Amount incurred in the current period Amount incurred in the previous period
Other income 71923269.83 71436581.31
Other income 26628197.50 26432286.25
Other income 14308295.40 14308295.40
1942025 Annual Report of Yunnan Energy New Material Co. Ltd.
Other income 5802187.32 5802187.32
Other income 8741103.29
Other income 13000000.00
Other income 12300000.00
Other income 3886708.00 10595080.00
Other income 20000000.00 10000000.00
Other income 8566400.00
Other income 5330000.00
Other income 5058500.00
Other income 5640000.00
Other income/financial expenses 65381656.89 41882008.46
Total 222311418.23 224711338.74
Other explanations:
4. Government grants to offset cost expenses
Item related to accounting Amount incurred in the current period Amount incurred in the previousperiod Cost expense items offset
Loan Interest Subsidy 7492508.87 3111912.28 Financial Expenses - InterestExpense
Loan Interest Subsidy 5870613.98 Construction in progress
Total 13363122.85 3111912.28
XII. Risks Related to Financial Instruments
(1). Categories of risks arising from financial instruments
The Company’s major financial instruments include monetary funds notes receivable accounts receivable accounts payable and
convertible bonds. etc. Exposure to various financial instruments in daily activities mainly including credit risk liquidity risk and market
risk. The risks associated with these financial instruments and the Company’s risk management policies to mitigate these risks are described
below:
The Board is responsible for planning and establishing the Company’s risk management structure formulating the Company’s risk
management policies and relevant guidelines and overseeing the implementation of risk management measures. The Company has formulated
risk management policies to identify and analyze the risks faced by the Company. These risk management policies specify specific risks and
cover various aspects such as market risk credit risk and liquidity risk management. The Company regularly assesses changes in the market
environment and the Company’s operating activities to determine whether to update its risk management policies and systems. The
Company’s risk management is carried out by the Investment Department in accordance with policies approved by the Board of Directors.The Investment Department identifies evaluates and mitigates related risks through close cooperation with other business units of the
Company. The Company’s internal audit department conducts regular audit on the risk management control and procedures and reports the
audit results to the Company’s audit Committee. The Company diversified its exposure to financial instruments through an appropriate mix of
diversified investments and businesses and reduced its exposure to a single industry specific region or specific counterparty by developing
appropriate risk management policies.
1. Credit risk
Credit risk is the risk that the Company will incur financial losses as a result of a counterparty’s failure to meet its contractual obligations
the management has established appropriate credit policies and continuously monitors exposure to credit risk.The Company has adopted a policy of dealing only with creditworthy counterparties. In addition the Company assesses the customer’s
credit worthiness and sets a corresponding credit period based on the customer’s financial position the likelihood of obtaining a guarantee
from a third party credit history and other factors such as current market conditions. The Company monitors bills receivable balances of
accounts receivable and collection status on an on-going basis For customers with poor credit records the Company applies written
reminders shortens the credit period or cancels the credit period to ensure that the Company does not face significant credit losses. In addition
the Company reviews the recovery of financial assets at each balance sheet date to ensure that adequate provision for expected credit losses is
made for the relevant financial assets.The Company’s other financial assets include monetary funds notes receivable accounts receivable etc. The credit risk of these
financial assets arises from the default of the counterparty and the maximum credit risk exposure is the carrying amount of each financial
asset in the balance sheet. Except for the financial guarantees provided by the Company as described in Note 12/(v)/5 the Company does not
provide any other guarantees that may expose the Company to credit risk.The monetary funds held by the Company are mainly deposited in financial institutions such as state-owned holding banks and other
large and medium-sized commercial banks. The management believes that these commercial banks have high reputation and asset status do
not have significant credit risk and will not cause any significant loss due to the default of the counterparty. The Company’s policy is to limit
the amount of credit risk to any individual financial institution by controlling the amount of deposits placed with each reputable financial
institution based on its market reputation scale of operations and financial background.As part of the Company’s credit risk asset management the Company assesses impairment losses on accounts receivable and other
receivables based on aging analysis. The Company’s accounts receivable and other receivables involve a large number of customers whose
aging information reflects their solvency and bad debt risk on accounts receivable and other receivables . The Company calculated the
historical actual bad debt rates for different aging periods based on historical data and adjusted the expected loss rate by taking into account
the forecast of current and future economic conditions such as the national GDP growth rate total infrastructure investment national
monetary policy and other forward-looking information. For long-term receivables the Company makes a reasonable assessment of the ECL
after adjusting for the settlement period contractual payment period the financial position of the debtor and the economic situation of the
industry in which the debtor is located taking into account the above forward-looking information.As of 31 December 2025 the carrying amounts and expected credit impairment losses of the relevant assets are as follows:
Item Book balance Impairment allowance
1952025 Annual Report of Yunnan Energy New Material Co. Ltd.
Notes receivable 704678410.14 471852.27
Accounts receivable 7545033395.69 133496481.93
Other receivables 33794717.41 1806940.44
Receivable financing 1213767926.87
Long-term receivables 4457531.97
Total 9501731982.08 135775274.64
The Company’s principal customers have reliable and good reputation and therefore the Company does not consider these customers to
have significant credit risk. There is no significant concentration of credit risk as the Company has a wide range of customers.As of December 31 2025 39.78% of the Company’s accounts receivable (December 31 2024: 42.93%) were attributable to the top five
customers by balance as the Company’s accounts receivable risks are spread across multiple business partners and customers. Therefore the
Company does not have any significant concentration of credit risk.The Company’s maximum credit risk exposure is the carrying amount of each financial asset on the balance sheet.
2. Liquidity risk
Liquidity risk refers to the risk of a shortage of funds when the Company fulfills its obligation to settle by delivering cash or other
financial assets. The member enterprises under the Company are responsible for their own cash flows forecast. The financial department
under the Company continuously monitors the short-term and long-term capital requirements of the Company at the company level based on
the cash flow forecast results of each member enterprise to ensure that sufficient cash reserves are maintained; at the same time it has
continuously monitored whether the provisions of the borrowing agreement are met and obtain commitments from major financial
institutions to provide sufficient standby funds to meet the needs of short-term and long-term funding. In addition the Company enters into a
credit line facility agreement with its principal correspondent bank to support the Company’s performance of its obligations in relation to
commercial paper.As of December 31 2025 the Company’s financial liabilities and off-balance sheet guarantee items are presented by remaining contract
period based on undiscounted contractual cash flows as follows:
Closing balance
Item
Less than 1 year 1-5 years Total
Non-derivative financial
liabilities
Short-term borrowings 7913611937.50 7913611937.50
Notes payable 766213912.36 766213912.36
Accounts payable 2310176867.17 2310176867.17
Other payables 192882923.14 192882923.14
Long-term borrowings 4992559411.66 4992559411.66
Long-term payables 384054475.96 384054475.96
Non-current liabilities
due within one year 2195475127.69 2195475127.69
Subtotal of non-
derivative financial 13378360767.86 5376613887.62 18754974655.48
liabilities
Derivative financial
liabilities -
Total 13378360767.86 5376613887.62 18754974655.48
3. Market risk
(1) Foreign exchange risk
The principal operations of the Company are located in the PRC and the principal operations are settled in RMB. However foreign
currency assets and liabilities recognised by the Company and future foreign currency transactions in which the currencies of valuation of
foreign currency assets and liabilities and foreign currency transactions are mainly HKD JPY USD EUR RMB or HUF remain subject to
exchange rate risk. The financial department of the Company is responsible for monitoring the scale of the Company’s foreign currency
transactions and foreign currency assets and liabilities to minimise the exposure to foreign exchange risk; To this end the Company will sign
forward foreign exchange contracts or currency swap contracts to avoid exchange rate risk.
1) As of 31 December 2025 the amounts of foreign currency financial assets and foreign currency financial liabilities held by the Company
translated into RMB are as follows:
Closing balance
Item
USD JPY EUR HUF Other Total
Foreign currency
financial assets:
Monetary funds 515723295.00 25365095.09 7507181.61 12106118.65 958749.86 561660440.21
Accounts receivable 341152523.23 40504045.53 381656568.76
Other receivables 14894.34 14894.34
Subtotal 856875818.23 65869140.62 7507181.61 12106118.65 973644.20 943331903.31
Foreign currency
financial liabilities:
1962025 Annual Report of Yunnan Energy New Material Co. Ltd.
Accounts payable 402738558.46 22301567.25 812119.13 425852244.84
Subtotal 402738558.46 22301567.25 812119.13 425852244.84
2) Sensitivity analysis:
As of 31 December 2025 the Company would decrease or increase net profit by approximately RMB43.9858 million (approximately RMB65.8987
million for 2024) for various types of foreign currency financial assets and foreign currency financial liabilities of the Company if RMB appreciated or
depreciated by 10% against foreign currencies with other factors held constant.
（2）Interest rate risk
The Company’s interest rate risk mainly arises from bank loans. Financial liabilities with floating interest rates expose the Company to cash flow
interest rate risk while financial liabilities with fixed interest rates expose the Company to fair value interest rate risk. The Company determines the
relative proportion of fixed rate and floating rate contracts based on the current market environment.The finance department of the Company continuously monitors the level of interest rate. The increase in interest rates will increase the cost of new
interest-bearing debts and the interest expenses of the Company’s interest-bearing debts with floating interest rates that have not been fully paid and will
have a significant adverse impact on its financial performance so the management will make timely adjustments based on the latest market conditions.As of December 31 2025 if the loan interest rate calculated based on floating rates increases or decreases by 50 basis points with other factors
remaining constant the net profit of the Company for that year will decrease or increase by RMB41.2688 million (approximately RMB53.6756 million
for 2024).The sensitivity analysis described above assumes that interest rate changes have occurred as of the balance sheet date and have been applied to all of
the Company’s borrowings with floating interest rates.
（3）Price risk
Price risk represents the risk of fluctuations in market prices other than exchange rate risk and interest rate risk arising primarily from changes in
commodity prices stock market indices equity instrument prices and other risk variables.XIII. Disclosure of Fair Value
1. Fair value of assets and liabilities measured at fair value at the end of the period
Unit: RMB
Closing fair value
Fair value Fair value Fair value
Item
measured at the measured at the measured at the Total
first level second level third level
I. Continuous fair value
--------
measurement
(I). Receivables financing 1213767926.87 1213767926.87
(III) Investments in other equity
73000000.0073000000.00
instruments
Total assets measured at fair
1286767926.871286767926.87
value on a continuous basis
II. Non-continuous fair value
--------
measurement
2. Determination basis of the market price of the item measured using the first-level continuous and non-
continuous fair value measurement: None
3. Valuation techniques and qualitative and quantitative information on important parameters adopted for
the second-level continuous and non-continuous fair value measurement: None
4. Valuation techniques and qualitative and quantitative information on important parameters adopted for
the third-level continuous and non-continuous fair value measurement
The receivables financing held by the Company were the bank acceptance bills held by the Company whose remaining life is short and book value is
close to their fair value.The non-trading equity instruments at fair value through other comprehensive income held by the Company whose fair value is measured at the third
level are mainly the equity investment projects that are not available for verification by data in observable active markets for which the financial forecast
is made using their own information.
5. Continuous third-level fair value measurement items adjustment information between the opening and
closing book values and sensitivity analysis of unobservable parameters
Total gains or losses for
the period Purchases issues sales and settlements
Changes in
unrealized
gains or
Opening Transfer Transfer Charged to Closing losses forItem balance into out of ChargedLevel 3 Level 3 to profit other
the period
comprehensive Purchase Issue Sales Settlement
balance included in
or loss income profit orloss for
assets held
1972025 Annual Report of Yunnan Energy New Material Co. Ltd.
at the end
of the
Reporting
Period
Receivables
408092531.801213767926.87408092531.801213767926.87
financing
Investments
in other
equity 78000000.00 -5000000.00 73000000.00
instruments
Total 486092531.80 -5000000.00 1213767926.87 408092531.80 1286767926.87
6. For the continuous fair value measurement items if there is a conversion between levels in the current
period describe the reason for the conversion and the policy for determining the time point of the
conversion
The fair value measurement of the Company’s aforesaid items on a continuing basis has not undergone any transfer between levels during the year.
7. Changes in valuation techniques and the cause of changes in the current period
The fair value valuation techniques of the Company’s financial instruments have not changed during this year.
8. Fair value of financial assets and financial liabilities that are not measured at fair value
The Company’s financial assets and liabilities not measured at fair value mainly include: monetary funds notes receivable accounts receivable other
receivables short-term borrowings notes payable accounts payable other payables long-term borrowings due within one year long-term borrowings
and bonds payable.The carrying amounts of the aforesaid financial assets and liabilities not measured at fair value do not differ significantly from their fair values.
1982025 Annual Report of Yunnan Energy New Material Co. Ltd.
XIV. Related Parties and Related Party Transactions
1. Actual controller of the Company
The actual controller of the Company was the Paul Xiaoming Lee family.As of December 31 2025 the actual controller of the Company was the Paul Xiaoming Lee family. The Paul Xiaoming Lee family held 42.22% of the
Company’s shares directly and indirectly. The shareholding of the Paul Xiaoming Lee’s family is as follows: family member Paul Xiaoming Lee holds
13.08% of the shares directly family member Li Xiaohua holds 8.22% of the shares directly family member Sherry Lee holds 7.26% of the shares
directly and family member Jerry Yang Li holds 1.50% of the shares directly. The family members indirectly hold 12.16% equity of the Company
through Yuxi Heyi Investment Co. Ltd.
2. Subsidiaries of the Company
Please refer to Note X-(1). “Interest in subsidiaries” for details about the subsidiaries of the Company.
3 Joint ventures and associates of the Company
The Company’s significant joint ventures and associates are detailed in the notes.Information on other associates or joint ventures which have related-party transactions with the Company in the current period or
whose related-party transactions with the Company produced balance in previous years is as follows:
Name of joint venture or associate Relationship with the Company
Yuxi Kunshasi Plastic Masterbatch Co. Ltd. An associate of the Company for the previous period
4. Other related parties
Name of other related party Relationship with the Company
Yuxi Heli Investment Co. Ltd. Shareholder
Yuxi Heyi Investment Co. Ltd. A company controlled by the actual controller
Zhuhai Chenyu New Material Technology Co. Ltd. A company controlled by the actual controller
Zhuhai Hanchen New Materials Technology Co. Ltd. A company controlled by the actual controller
Suzhou Jiesheng Technology Co. Ltd. A company controlled by the actual controller
Suzhou Fuqiang Technology Co. Ltd. A company controlled by the actual controller
Suzhou Fuqiang Jianeng Machinery Co. Ltd. A company controlled by the actual controller
Changshu Juxing Machinery Co. Ltd. A company controlled by the actual controller
Paul Xiaoming Lee A main member of the actual controller’s family
Li Xiaohua A main member of the actual controller’s family
Yan Ma A main member of the actual controller’s family
Yan Yang Hui A main member of the actual controller’s family
Sherry Lee A main member of the actual controller’s family
Jerry Yang Li A main member of the actual controller’s family
Other explanations: In addition to the related parties listed in the table above other related parties of the Company include: the Company’s employee
stock ownership platform; other directors supervisors senior executives of the Company and their close relatives; as well as enterprises controlled by
them or where they serve as directors or senior executives. Other related parties have not engaged in related party transactions with the Company during
the year.
5. Related party transactions
（1） Related party transactions on purchase and sales of goods and rendering and receiving of services
Statement of purchase of goods/acceptance of services
Unit: RMB
Whether
Particulars of
Amount for the current exceeding the Amount for the
Related party related party Approved transaction limit
period transaction previous period
transaction
limit
Yuxi Kunshasi
Purchase of 20000000.00-
Plastic Masterbatch 26931637.17
additives 35000000.00
No 27786128.30
Co. Ltd.Zhuhai Chenyu New
Procurement of
Material Technology 117770528.24 No more than235000000.00 No 94070099.94
materials
Co. Ltd.Suzhou Jiesheng Purchase of 292764410.58 No more than No 430180054.32
1992025 Annual Report of Yunnan Energy New Material Co. Ltd.
Technology Co. Ltd. equipment and 608800500.00
and its subsidiaries spare parts
Total 437466575.99 552036282.56
Statement of sales of goods / rendering of services
Unit: RMB
Particulars of related Amount for the current Amount for the previous
Related party
party transactions period period
Yuxi Kunshasi Plastic Masterbatch Sales of raw materials
45055700.139520584.86
Co. Ltd. Plastic products
Zhuhai Chenyu New Material
Sales of packaging materials 66345.13 104867.27
Technology Co. Ltd.Total 45122045.26 9625452.13
(2) Leases with related parties
The Company as the lessor:
Unit: RMB
Rental income recognized for the Rental income recognized for the
Lessee’s name Type of leased assets
current period previous period
Yuxi Heli Investment Co. Ltd. Office 2285.74 2285.72
Yuxi Heyi Investment Co. Ltd. Office 3027.50 3027.52
Yuxi Kunshasi Plastic
Workshop 91743.13 22018.34
Masterbatch Co. Ltd.Total 97056.37 27331.58
(3) Related party guarantees
1) The Company as the guarantor-guarantees provided by the parent company for its subsidiaries.
Secured party Guarantee amount Commencement Expiry date of Whether the guarantee has beendate of guarantee guarantee fully fulfilled
Yunnan Hongta Plastic Co. Ltd. 44000000.00 June 11 2024 Indefinite period No
Yunnan Hongta Plastic Co. Ltd. 129000000.00 July 7 2023 April 6 2026 No
Yunnan Hongta Plastic Co. Ltd. 70000000.00 January 2 2024 January 2 2027 No
Yunnan Hongta Plastic Co. Ltd. 50000000.00 January 27 2025 January 27 2026 No
Yunnan Hongta Plastic Co. Ltd. 50000000.00 March 10 2025 March 9 2026 No
Yunnan Hongta Plastic Co. Ltd. 60000000.00 April 9 2025 April 8 2029 No
Yunnan Hongta Plastic Co. Ltd. 100000000.00 April 8 2025 April 8 2026 No
Yunnan Hongta Plastic Co. Ltd. 60000000.00 July 25 2025 July 25 2030 No
Yunnan Hongta Plastic Co. Ltd. 50000000.00 November 18 November 22025 2026 No
Yunnan Hongta Plastic Co. Ltd. 41000000.00 December 23 December 222025 2028 No
Yunnan Hongchuang Packaging Co. Ltd. 66000000.00 June 11 2024 Indefinite period No
Yunnan Hongchuang Packaging Co. Ltd. 60000000.00 September 22 September 222023 2026 No
Yunnan Hongchuang Packaging Co. Ltd. 90000000.00 January 2 2024 January 2 2027 No
Yunnan Hongchuang Packaging Co. Ltd. 20000000.00 January 29 2024 January 29 2027 No
Yunnan Hongchuang Packaging Co. Ltd. 100000000.00 December 26 December 262024 2027 No
Yunnan Hongchuang Packaging Co. Ltd. 162000000.00 March 25 2025 March 24 2028 No
Yunnan Hongchuang Packaging Co. Ltd. 150000000.00 April 24 2025 April 24 2026 No
Yunnan Hongchuang Packaging Co. Ltd. 50000000.00 May 9 2025 May 8 2026 No
Yunnan Hongchuang Packaging Co. Ltd. 100000000.00 March 20 2025 March 19 2026 No
Yunnan Hongchuang Packaging Co. Ltd. 50000000.00 November 18 November 62025 2026 No
Hongta Plastic (Chengdu) Co. Ltd. 10000000.00 April 9 2025 April 8 2029 No
Hongta Plastic (Chengdu) Co. Ltd. 75000000.00 May 20 2025 May 19 2026 No
Shanghai Energy New Material Technology
Co. Ltd. 856000000.00
September 28 September 27
2020 2027 No
Shanghai Energy New Material Technology 660000000.00 February 7 2022 February 7 2027Co. Ltd. No
Shanghai Energy New Material Technology 240000000.00 June 5 2022 June 4 2025Co. Ltd. Yes
Shanghai Energy New Material Technology
Co. Ltd. 46225860.00
June 10 2022 June 10 2027 No
2002025 Annual Report of Yunnan Energy New Material Co. Ltd.
Shanghai Energy New Material Technology 300000000.00 August 18 2022 August 18 2027Co. Ltd. No
Shanghai Energy New Material Technology
Co. Ltd. 1200000000.00
August 1 2023 August 1 2038 No
Shanghai Energy New Material Technology
Co. Ltd. 213084000.00
April 16 2024 April 16 2027 No
Shanghai Energy New Material Technology 213584910.00 June 24 2024 Indefinite periodCo. Ltd. No
Shanghai Energy New Material Technology February 25 2025 August 8 2027
Co. Ltd. 900000000.00 No
Shanghai Energy New Material Technology 250000000.00 March 11 2025 February 25Co. Ltd. 2026 No
Shanghai Energy New Material Technology 200000000.00 May 8 2025 May 7 2026Co. Ltd. No
Shanghai Energy New Material Technology 250000000.00 June 12 2025Co. Ltd. Indefinite period No
Shanghai Energy New Material Technology 625000000.00 July 30 2025 July 28 2026Co. Ltd. No
Shanghai Energy New Material Technology 196000000.00 August 14 2025 July 25 2026Co. Ltd. No
Shanghai Energy New Material Technology 500000000.00 August 28 2025 August 27 2026Co. Ltd. No
Shanghai Energy New Material Technology September 9 January 16 2026
Co. Ltd. 209000000.00 2025 No
Shanghai Energy New Material Technology 100000000.00 September 10 September 9Co. Ltd. 2025 2029 No
Shanghai Energy New Material Technology 200000000.00 September 12 September 10Co. Ltd. 2025 2026 No
Shanghai Energy New Material Technology
Co. Ltd. 200000000.00
November 5 November 4
2025 2026 No
Shanghai Energy New Material Technology 546000000.00 November 14 October 21 2026Co. Ltd. 2025 No
Shanghai Energy New Material Technology 200000000.00 December 24 December 23Co. Ltd. 2025 2026 No
Shanghai Energy New Material Technology
Co. Ltd. 500000000.00
December 24 September 24
2025 2026 No
Zhuhai Energy New Material Technology
Co. Ltd. 150000000.00
May 29 2023 May 29 2026 No
Zhuhai Energy New Material Technology December 1 2023 December 31
Co. Ltd. 220000000.00 2027 No
Zhuhai Energy New Material Technology 32000000.00 March 1 2024 March 1 2027Co. Ltd. No
Zhuhai Energy New Material Technology April 12 2024 March 31 2026
Co. Ltd. 270967000.00 No
Zhuhai Energy New Material Technology 356820000.00 July 30 2024 Indefinite periodCo. Ltd. No
Zhuhai Energy New Material Technology
Co. Ltd. 270000000.00
January 3 2025 January 2 2028 No
Zhuhai Energy New Material Technology 400000000.00 April 17 2025 April 17 2030Co. Ltd. No
Zhuhai Energy New Material Technology 300000000.00 May 8 2025 May 7 2026Co. Ltd. No
Zhuhai Energy New Material Technology 200000000.00 April 12 2024 May 11 2026Co. Ltd. No
Zhuhai Energy New Material Technology August 19 2024 August 19 2025
Co. Ltd. 200000000.00 Yes
Zhuhai Energy New Material Technology 200000000.00 July 9 2025 July 9 2030Co. Ltd. No
Zhuhai Energy New Material Technology July 16 2025 July 16 2026
Co. Ltd. 300000000.00 No
Zhuhai Energy New Material Technology 442000000.00 October 23 2025 October 22 2035Co. Ltd. No
Zhuhai Energy New Material Technology 220000000.00 December 22 December 8Co. Ltd. 2025 2027 No
Zhuhai Energy New Material Technology
Co. Ltd. 200000000.00
December 1 2025 November 30
2027 No
Wuxi Energy New Material Technology Co. 1160000000.00 December 1 2020 December 1Ltd. 2029 No
Wuxi Energy New Material Technology Co. 100000000.00 September 24 September 24Ltd. 2024 2029 No
Wuxi Energy New Material Technology Co.Ltd. 200000000.00
September 2 September 1
2024 2025 Yes
Wuxi Energy New Material Technology Co. 100000000.00 March 24 2025 March 23 2026Ltd. No
Wuxi Energy New Material Technology Co.Ltd. 120000000.00
October 20 2025 September 10
2026 No
Jiangxi Tonry New Energy Technology 250000000.00 June 25 2024 June 20 2026Development Co. Ltd. No
Jiangxi Tonry New Energy Technology
Development Co. Ltd. 50000000.00
June 25 2024 June 20 2026 No
2012025 Annual Report of Yunnan Energy New Material Co. Ltd.
Jiangxi Tonry New Energy Technology 10000000.00 October 9 2024 September 21Development Co. Ltd. 2026 No
Jiangxi Tonry New Energy Technology
Development Co. Ltd. 40000000.00
October 9 2024 September 21
2026 No
Jiangxi Tonry New Energy Technology
Development Co. Ltd. 135000000.00
October 31 2024 October 30 2027 No
Jiangxi Tonry New Energy Technology 100000000.00 February 12 2025 February 11Development Co. Ltd. 2026 No
Jiangxi Tonry New Energy Technology March 27 2025 March 27 2028
Development Co. Ltd. 280000000.00 No
Jiangxi Tonry New Energy Technology 100000000.00 October 13 2025 October 13 2026Development Co. Ltd. No
Jiangxi Tonry New Energy Technology
Development Co. Ltd. 150000000.00
November 12 November 11
2025 2026 No
Suzhou GreenPower New Energy Materials
Co. Ltd. 550000000.00
May 23 2022 May 23 2027 No
Suzhou GreenPower New Energy Materials
Co. Ltd. 104000000.00
March 9 2022 March 9 2027 No
Suzhou GreenPower New Energy Materials 180000000.00 January 9 2024 January 8 2029Co. Ltd. No
Suzhou GreenPower New Energy Materials March 5 2024 March 5 2027
Co. Ltd. 140000000.00 No
Suzhou GreenPower New Energy Materials 200000000.00 November 14 November 13Co. Ltd. 2024 2025 Yes
Suzhou GreenPower New Energy Materials
Co. Ltd. 100000000.00
December 10 December 10
2024 2029 No
Suzhou GreenPower New Energy Materials 50000000.00 September 15 September 15Co. Ltd. 2025 2028 No
Suzhou GreenPower New Energy Materials September 23 September 22
Co. Ltd. 100000000.00 2025 2026 No
Suzhou GreenPower New Energy Materials 100000000.00 November 27 November 27Co. Ltd. 2025 2030 No
Chongqing Energy New Material Technology April 26 2022 May 10 2028
Co. Ltd. 1600000000.00 No
Chongqing Energy New Material Technology 100000000.00 February 23 2024 February 22Co. Ltd. 2027 No
Chongqing Energy New Material Technology August 26 2025 August 25 2026
Co. Ltd. 80000000.00 No
Chongqing Energy New Material Technology 50000000.00 September 22 September 21Co. Ltd. 2025 2026 No
Chongqing Energy New Material Technology
Co. Ltd. 300000000.00
November 28 November 27
2025 2026 No
Jiangxi Ruijie New Material Technology Co.Ltd. 400000000.00
April 12 2023 April 12 2030 No
Jiangsu Energy New Material Technology
Co. Ltd. 200000000.00
November 18 March 25 2026
2024 No
Jiangsu Energy New Material Technology 300000000.00 February 8 2025 February 8 2026Co. Ltd. No
Jiangsu Energy New Material Technology 100000000.00 October 23 2025 August 13 2026Co. Ltd. No
Jiangsu Energy New Material Technology 200000000.00 November 27 November 27Co. Ltd. 2025 2028 No
Jiangxi Enpo New Materials Co. Ltd. 433500000.00 April 28 2024 April 27 2032 No
Hubei Energy New Material Technology Co.Ltd. 495000000.00
May 24 2023 May 23 2028 No
Hubei Energy New Material Technology Co. 1650000000.00 May 24 2023 November 21Ltd. 2029 No
Hubei Energy New Material Technology Co. 200000000.00 March 17 2025 March 31 2028Ltd. No
Yuxi Energy New Materials Co. Ltd. 1000000000.00 March 1 2023 December 312026 No
Yuxi Energy New Materials Co. Ltd. 700000000.00 April 10 2024 April 10 2027 No
Yuxi Energy New Materials Co. Ltd. 1000000000.00 July 16 2024 October 30 2034 No
Yuxi Energy New Materials Co. Ltd. 3500000000.00 March 4 2025 October 19 2034 No
Yuxi Energy New Materials Co. Ltd. 30000000.00 October 15 2025 October 14 2029 No
Chongqing Energy Newmi Technological August 13 2024 August 12 2027
Co. Ltd. 100000000.00 No
Chongqing Energy Newmi Technological 35000000.00 October 24 2024 February 9 2026Co. Ltd. No
Shanghai Energy Trading Co. Ltd. 10000000.00 February 25 2025 September 192027 No
Shanghai Energy Trading Co. Ltd. 10000000.00 March 19 2025 October 18 2025 Yes
Shanghai Energy Trading Co. Ltd. 10000000.00 June 26 2025 June 26 2030 No
Shanghai Energy Trading Co. Ltd. 10000000.00 September 18 September 172025 2026 No
Hongchuang Packaging (Anhui) Co. Ltd. 550000000.00 July 23 2024 February 1 2029 No
Hongchuang Packaging (Anhui) Co. Ltd. 20000000.00 May 30 2025 May 30 2028 No
Hongchuang Packaging (Anhui) Co. Ltd. 29000000.00 September 25 September 242025 2027 No
Hongchuang Packaging (Anhui) Co. Ltd. 50000000.00 December 18 December 18 No
2022025 Annual Report of Yunnan Energy New Material Co. Ltd.
20252028
Chuangxin New Material (Hong Kong) Co.Ltd. 101600070.00
February 1 2024 Indefinite period No
Chuangxin New Material (Hong Kong) Co. April 12 2024 Indefinite period
Ltd. 1206439000.00 No
Yunnan Jiechen Packaging Materials Co. 20000000.00 January 2 2025 January 2 2028Ltd. No
Yunnan Jiechen Packaging Materials Co. 10000000.00 May 28 2025 May 27 2026Ltd. No
Wuxi Energy New Material Technology Co. May 6 2022 April 10 2026
Ltd. No
Jiangxi Tonry New Energy Technology May 6 2022 April 10 2026
Development Co. Ltd. No
Suzhou GreenPower New Energy Materials May 6 2022 April 10 2026
Co. Ltd. No
Chongqing Energy New Material Technology May 6 2022 April 10 2026
Co. Ltd. No
Jiangxi Ruijie New Material Technology Co. May 6 2022 April 10 2026
Ltd. No
Jiangsu Energy New Material Technology 700000000.00 May 6 2022 April 10 2026
Co. Ltd. No
Jiangsu Ruijie New Material Technology May 6 2022 April 10 2026
Co. Ltd. No
Jiangxi Enpo New Materials Co. Ltd. May 6 2022 April 10 2026 No
Hubei Energy New Material Technology Co. May 6 2022 April 10 2026
Ltd. No
Jiangsu Sanhe Battery Material Technology May 6 2022 April 10 2026
Co. Ltd. No
Yuxi Energy New Materials Co. Ltd. May 6 2022 April 10 2026 No
Yunnan Hongchuang Packaging Co. Ltd. November 30 May 30 20282020 Yes
Shanghai Energy New Material Technology November 30 May 30 2028
Co. Ltd. 2020 No
Wuxi Energy New Material Technology Co. 392249000.00 November 30 May 30 2028
Ltd. 2020 No
Jiangsu Energy New Material Technology November 30 May 30 2028
Co. Ltd. 2020 No
Wuxi Energy New Material Technology Co. April 10 2024 April 10 2027
Ltd. No
Jiangxi Tonry New Energy Technology April 10 2024 April 10 2027
Development Co. Ltd. No
Suzhou GreenPower New Energy Materials April 10 2024 April 10 2027
Co. Ltd. No
Chongqing Energy New Material Technology April 10 2024 April 10 2027
Co. Ltd. No
Jiangxi Ruijie New Material Technology Co. April 10 2024 April 10 2027
Ltd. No
Jiangsu Energy New Material Technology 1500000000.00 April 10 2024 April 10 2027Co. Ltd. No
Jiangsu Ruijie New Material Technology April 10 2024 April 10 2027
Co. Ltd. No
Jiangxi Enpo New Materials Co. Ltd. April 10 2024 April 10 2027 No
Hubei Energy New Material Technology Co. April 10 2024 April 10 2027
Ltd. No
Yuxi Energy New Materials Co. Ltd. April 10 2024 April 10 2027 No
Xiamen Energy New Material Co. Ltd. April 10 2024 April 10 2027 No
Jiangxi Energy New Material Technology April 10 2024 April 10 2027
Co. Ltd. No
Hongchuang Packaging (Anhui) Co. Ltd. April 10 2024 April 10 2027 No
Wuxi Energy New Material Technology Co. April 11 2022 April 11 2025
Ltd. Yes
Jiangxi Tonry New Energy Technology April 11 2022 April 11 2025
Development Co. Ltd. Yes
Suzhou GreenPower New Energy Materials April 11 2022 April 11 2025
Co. Ltd. Yes
Chongqing Energy New Material Technology April 11 2022 April 11 2025
Co. Ltd. Yes
Jiangxi Ruijie New Material Technology Co. April 11 2022 April 11 2025
Ltd. Yes
Jiangsu Energy New Material Technology 1500000000.00 April 11 2022 April 11 2025
Co. Ltd. Yes
Jiangsu Ruijie New Material Technology April 11 2022 April 11 2025
Co. Ltd. Yes
Jiangxi Enpo New Materials Co. Ltd. April 11 2022 April 11 2025 Yes
Hubei Energy New Material Technology Co. April 11 2022 April 11 2025
Ltd. Yes
Jiangsu Sanhe Battery Material Technology April 11 2022 April 11 2025
Co. Ltd. Yes
Yuxi Energy New Materials Co. Ltd. April 11 2022 April 11 2025 Yes
Xiamen Energy New Material Co. Ltd. April 11 2022 April 11 2025 Yes
2032025 Annual Report of Yunnan Energy New Material Co. Ltd.
Jiangxi Energy New Material Technology April 11 2022 April 11 2025
Co. Ltd. Yes
Wuxi Energy New Material Technology Co. March 1 2024 December 31
Ltd. 2025 Yes
Jiangxi Tonry New Energy Technology March 1 2024 December 31
Development Co. Ltd. 2025 Yes
Suzhou GreenPower New Energy Materials March 1 2024 December 31
Co. Ltd. 2025 Yes
Chongqing Energy New Material Technology March 1 2024 December 31
Co. Ltd. 2025 Yes
Jiangxi Ruijie New Material Technology Co. March 1 2024 December 31
Ltd. 2025 Yes
Jiangsu Energy New Material Technology March 1 2024 December 31
Co. Ltd. 2025 Yes
Jiangsu Ruijie New Material Technology March 1 2024 December 31
Co. Ltd. 2000000000.00 2025 Yes
Jiangxi Enpo New Materials Co. Ltd. March 1 2024 December 312025 Yes
Hubei Energy New Material Technology Co. March 1 2024 December 31
Ltd. 2025 Yes
Jiangsu Sanhe Battery Material Technology March 1 2024 December 31
Co. Ltd. 2025 Yes
Yuxi Energy New Materials Co. Ltd. March 1 2024 December 312025 Yes
Xiamen Energy New Material Co. Ltd. March 1 2024 December 312025 Yes
Jiangxi Energy New Material Technology March 1 2024 December 31
Co. Ltd. 2025 Yes
Zhuhai Energy New Material Technology July 30 2024 Indefinite period
Co. Ltd. No
Shanghai Energy New Material Technology 356820000.00 July 30 2024 July 30 2025
Co. Ltd. Yes
Jiangxi Tonry New Energy Technology December 23 December 31
Development Co. Ltd. 2025 2029 No
Jiangxi Energy New Material Technology 250000000.00 December 23 December 31
Co. Ltd. 2025 2029 No
Zhuhai Energy New Material Technology
Co. Ltd. 200000000.00
February 21 2023 February 21
2028 Yes
Zhuhai Energy New Material Technology 270000000.00 February 7 2022 February 6 2025Co. Ltd. Yes
Zhuhai Energy New Material Technology July 13 2023 July 14 2025
Co. Ltd. 300000000.00 Yes
Zhuhai Energy New Material Technology 300000000.00 January 15 2024 July 15 2025Co. Ltd. Yes
Zhuhai Energy New Material Technology
Co. Ltd. 200000000.00
April 12 2024 April 11 2025 Yes
Zhuhai Energy New Material Technology 200000000.00 April 24 2024 April 23 2029Co. Ltd. Yes
Zhuhai Energy New Material Technology April 25 2024 April 24 2025
Co. Ltd. 300000000.00 Yes
Chongqing Energy New Material Technology
Co. Ltd. 80000000.00
August 2 2024 August 1 2025 Yes
Chongqing Energy New Material Technology November 8 October 29 2025
Co. Ltd. 300000000.00 2024 Yes
Yunnan Hongta Plastic Co. Ltd. 40000000.00 November 9 October 23 20252020 Yes
Yunnan Hongta Plastic Co. Ltd. 51650000.00 May 5 2022 May 4 2025 Yes
Yunnan Hongta Plastic Co. Ltd. 60000000.00 July 15 2023 July 15 2025 Yes
Yunnan Hongta Plastic Co. Ltd. 80000000.00 January 12 2024 January 11 2028 Yes
Yunnan Hongta Plastic Co. Ltd. 100000000.00 April 19 2024 April 19 2025 Yes
Yunnan Hongta Plastic Co. Ltd. 50000000.00 November 15 May 15 20262024 Yes
Yunnan Hongchuang Packaging Co. Ltd. 50000000.00 February 23 2022 February 232027 Yes
Yunnan Hongchuang Packaging Co. Ltd. 162000000.00 March 21 2022 March 20 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 120000000.00 January 15 2024 January 14 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 7258788.30 March 29 2024 March 28 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 130000000.00 April 26 2024 April 26 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 40000000.00 April 30 2024 April 2 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 13667784.90 August 21 2024 August 20 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 40000000.00 September 29 September 172024 2025 Yes
Yunnan Hongchuang Packaging Co. Ltd. 100000000.00 November 13 November 132024 2025 Yes
Yunnan Dexin Paper Co. Ltd. 20000000.00 January 2 2024 January 2 2027 Yes
Yunnan Dexin Paper Co. Ltd. 10000000.00 January 12 2024 January 11 2028 Yes
Yuxi Energy New Materials Co. Ltd. 800000000.00 October 26 2023 October 25 2032 Yes
Wuxi Energy New Material Technology Co.Ltd. 100000000.00
January 5 2024 January 4 2028 Yes
2042025 Annual Report of Yunnan Energy New Material Co. Ltd.
Wuxi Energy New Material Technology Co.Ltd. 100000000.00
July 12 2024 June 16 2025 Yes
Wuxi Energy New Material Technology Co. 150000000.00 August 21 2024 August 4 2025Ltd. Yes
Shanghai Energy New Material Technology October 27 2023 October 26 2025
Co. Ltd. 165000000.00 Yes
Shanghai Energy New Material Technology
Co. Ltd. 500000000.00
December 22 December 21
2023 2027 Yes
Shanghai Energy New Material Technology 800000000.00 March 20 2024 August 25 2025Co. Ltd. Yes
Shanghai Energy New Material Technology April 18 2024 April 17 2025
Co. Ltd. 200000000.00 Yes
Shanghai Energy New Material Technology
Co. Ltd. 200000000.00
April 24 2024 April 23 2025 Yes
Shanghai Energy New Material Technology 200000000.00 June 17 2024 June 16 2025Co. Ltd. Yes
Shanghai Energy New Material Technology August 9 2024 August 8 2027
Co. Ltd. 900000000.00 Yes
Shanghai Energy New Material Technology 196000000.00 August 20 2024 July 22 2025Co. Ltd. Yes
Shanghai Energy New Material Technology 500000000.00 August 22 2024 August 21 2025Co. Ltd. Yes
Shanghai Energy New Material Technology
Co. Ltd. 875000000.00
August 27 2024 July 22 2025 Yes
Shanghai Energy New Material Technology 209000000.00 September 2 May 31 2025Co. Ltd. 2024 Yes
Shanghai Energy New Material Technology
Co. Ltd. 150000000.00
September 6 September 6
2024 2027 Yes
Shanghai Energy New Material Technology
Co. Ltd. 200000000.00
September 11 September 9
2024 2025 Yes
Shanghai Energy New Material Technology
Co. Ltd. 546000000.00
December 3 2024 September 22
2025 Yes
Shanghai Energy New Material Technology
Co. Ltd. 50000000.00
December 30 December 30
2024 2025 Yes
Shanghai Energy Trading Co. Ltd. 10000000.00 September 20 September 192024 2027 Yes
Jiangxi Tonry New Energy Technology 200000000.00 October 8 2024 October 7 2025Development Co. Ltd. Yes
Jiangxi Tonry New Energy Technology
Development Co. Ltd. 100000000.00
November 11 November 11
2024 2025 Yes
Jiangxi Tonry New Energy Technology 200000000.00 December 2 2024 December 2Development Co. Ltd. 2025 Yes
Hongta Plastic (Chengdu) Co. Ltd. 30000000.00 January 12 2024 January 11 2028 No
Hongchuang Packaging (Anhui) Co. Ltd. 210000000.00 November 15 February 1 20252023 Yes
Total 50287866413.20
2） The Company as the guarantor – guarantees provided by a subsidiary for another subsidiary
Guarantor Secured party Guarantee amount Commencement Expiry date of Whether the guarantee hasdate of guarantee guarantee been fully fulfilled
Shanghai Energy New Wuxi Energy New December 1 2020 December 1 2029
Material Technology Material Technology 1160000000.00 No
Co. Ltd. Co. Ltd.Shanghai Energy New Suzhou GreenPower May 24 2022 May 24 2027
Material Technology New Energy Materials 550000000.00 No
Co. Ltd. Co. Ltd.Shanghai Energy New Chongqing Energy New April 26 2022 May 10 2028
Material Technology Material Technology 1600000000.00 No
Co. Ltd. Co. Ltd.Shanghai Energy New SEMCORP Hungary November 28 2025 November 28
Material Technology Korlátolt Felelsség 6566240.00 2028 No
Co. Ltd. Társaság（Hungary）
Shanghai Energy New Jiangsu Ruijie New May 9 2024 November 8
Material Technology Material Technology 700000000.00 2032 No
Co. Ltd. Co. Ltd.Shanghai Energy New Jiangsu Energy New June 30 2022 June 29 2025
Material Technology Material Technology 1600000000.00 Yes
Co. Ltd. Co. Ltd.Total 5616566240.00
3) The Company as the guarantor – guarantees provided jointly with subsidiaries.
Guarantor Secured party Guarantee Commencement date Expiry date of Whether the guarantee hasamount of guarantee guarantee been fully fulfilled
Yunnan Energy New Zhuhai Energy New September 6 2023 September 6
Material Co. Ltd. Material Technology 200000000.00 2026 Yes
2052025 Annual Report of Yunnan Energy New Material Co. Ltd.
Shanghai Energy New Co. Ltd.Material Technology
Co. Ltd.Yunnan Energy New May 24 2022 May 24 2027
Material Co. Ltd. Suzhou GreenPower
Shanghai Energy New New Energy Materials 550000000.00 No
Material Technology Co. Ltd.Co. Ltd.Yunnan Energy New August 1 2019 August 1 2025
Material Co. Ltd. Zhuhai Energy New
Shanghai Energy New Material Technology 750000000.00 Yes
Material Technology Co. Ltd.Co. Ltd.Yunnan Energy New April 26 2022 May 10 2028
Material Co. Ltd. Chongqing Energy New
Shanghai Energy New Material Technology 1600000000.00 No
Material Technology Co. Ltd.Co. Ltd.Yunnan Energy New December 1 2020 December 1 2029
Material Co. Ltd. Wuxi Energy New
Shanghai Energy New Material Technology 1160000000.00 No
Material Technology Co. Ltd.Co. Ltd.Total 4260000000.00
(4) Remuneration for key management
Unit: RMB
Item Amount for the current period Amount for the previous period
Remuneration for key management
9445670.177417913.45
personnel
6. Amounts due to and due from related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Item Related party Provision for bad Provision for
Book balance Book balance
debt bad debt
Other non-current
assets
Changshu Juxing
4266962.20
Machinery Co. Ltd.Suzhou Fuqiang
Jianeng Machinery 8325353.98 6331858.41
Co. Ltd.Suzhou Jiesheng
94546169.67
Technology Co. Ltd.Dividends receivable
Yuxi Kunshasi
Plastic Masterbatch 1347859.55
Co. Ltd.
(2) Payables
Unit: RMB
Book balance at the end of the Book balance at the beginning of
Item Related party
Reporting Period the Reporting Period
Accounts payable
Chenyu (Zhuhai Hengqin) New
17700.00
Material Technology Co. Ltd.Suzhou Fuqiang Technology Co.
8409189.232136686.00
Ltd.
2062025 Annual Report of Yunnan Energy New Material Co. Ltd.
Changshu Juxing Machinery Co.
341600.00
Ltd.Suzhou Jiesheng Technology Co.
16795909.26
Ltd.Yuxi Kunshasi Plastic
2401471.87
Masterbatch Co. Ltd.Zhuhai Chenyu New Material
27429230.36
Technology Co. Ltd.XV. Share-based Payment
1. General information about share-based payment
□Applicable □Not applicable
Unit: RMB
Category of Grant for the period Exercise for the period Unlock for the period Lapse for the period
grantee Number Amount Number Amount Number Amount Number Amount
Sales 90000.00 495000.00 188600.00 4637674.00
Management 280000.00 1544500.00 2284626.00 53506353.34
R&D 360.00 8852.40
Production 504882.00 11846848.38
Total 370000.00 2039500.00 2978468.00 69999728.12
Options or other equity instruments outstanding at the end of the period
□Applicable□Not applicable
Other explanations：
2. Information on equity-settled share-based payment
□Applicable □Not applicable
Unit: RMB
(1) The fair value of restricted shares is recognized at the closing price
Determination method of the fair value of equity instruments on the on the grant date;
grant date (2) The fair value of stock options is recognized by Black-Scholes
model
Important parameters of fair value of equity instruments on the grant
date Historical volatility risk-free return rate dividend yield
Basis for determining the number of vested equity On each balance sheet date of lock-up periods the estimation shall be
made according to the latest number of people whose stock options are
Instruments vested performance indicators and other follow-up information
Reasons for significant differences between the
Nil
current estimates and the previous estimates
Accumulated amount of equity-settled share-based
88375137.00
payment included in capital reserve
Total expenses recognized for equity-settled share-
-3108783.91
based payment in the current period
3. Information on cash-settled share-based payment
□Applicable□Not applicable
4、Share-based payment for the period
□Applicable □Not applicable
Unit: RMB
Information on equity-settled share- based Information on cash-settled share-based
Category of grantee
payment payment
Sales personnel 806782.93
Management personnel -3511930.59
2072025 Annual Report of Yunnan Energy New Material Co. Ltd.
R&D personnel -602.66
Production personnel -403033.59
Total -3108783.91
XVI. Commitments and Contingencies
1 Significant commitments
Significant commitments on the balance sheet date
(1) Mortgage of assets
As of December 31 2025 the Company has obtained a bank comprehensive credit line of RMB2.2201552 billion with the mortgage of buildings
and machinery and equipment under fixed assets land use right under intangible assets and construction in progress. See Note V 22 for details.
(2) Pledge of assets
As of December 31 2025 the Company obtained a bank loan of RMB416.8787 million by pledging certificate of deposit and 100% equity interest
in its sub-subsidiary Suzhou GreenPower New Energy Materials Co. Ltd. See Notes V 22 23 and 32 for details.
(3) Signed M&A Agreements Being Performed or to Be Performed
On December 13 2025 the Company disclosed the “Proposal for Purchase of Assets through Issuance of Shares and Raising of Matching Funds”
under which it intends to acquire 100% equity interest in Qingdao Zhongkehualian New Material Co. Ltd. by means of share issuance. As of the date of
this report the transaction is still in progress and the relevant audit and valuation work has not yet been completed. This transaction is subject to the
approval of the Company’s General Meeting and registration with the China Securities Regulatory Commission and there exist uncertainties.Except for the above commitments as of December 31 2025 the Company has no other significant commitments that should be disclosed but have
not been disclosed.
2. Contingencies
(1) Significant contingencies on the balance sheet date
The Company had no important contingencies to disclose.
(2) If the Company had no important contingencies to disclose it is also required to specify it
The Company had no important contingencies to disclose.XVII. Events Subsequent to the Balance Sheet Date
1. Details of other events subsequent to the balance sheet date
As at the date of approval of the financial statements the Company had no other significant events subsequent to the balance sheet date that should
be disclosed but have not been disclosed.XVIII. Other Significant Events
1. Segment information
(1) Determination basis and accounting policy of reporting segments
The Company classifies its businesses into two reporting segments based on its internal organizational structure management requirements and
internal reporting system. These reporting segments are determined based on the financial information as required under the Company’s daily internal
management. The Company’s management level regularly evaluates these reporting segments in terms of their operating results in order to decide the
resources to allocate to them and evaluate their performance.The Company’s reporting segments include:
* Lithium battery separator business segment: It is responsible for production and sale of lithium battery separator which product is mainly used
for EV battery and 3C product battery production;
* BOPP film business segment: This product is mainly used for outer packaging for cigarette box food and other products.The segment reporting information should be disclosed in line with the accounting policies and measurement standards used by respective segment
for reporting to the management. These accounting policies and measurement basis should be consistent with those used for preparing the financial
statements
2082025 Annual Report of Yunnan Energy New Material Co. Ltd.
（2） Financial Information of Reportable Segments
Unit: RMB
Lithium battery BOPP film business Others Elimination Total
Item separation film segment
business segment
I. Operating income 1201333.11 58691.99 109663.29 -6415.68 1363272.72
Including: Income
1201333.1158673.20103266.401363272.72
from external trade
Income from inter-
18.796396.89-6415.68
segment trade
II. Operating cost 975515.04 52436.86 85803.22 -6399.55 1107355.57
III. Operating
10414.07889.393436.9914740.45
expense
IV. Total profits 10888.26 1474.87 35570.49 -4178.82 43754.79
V. Total assets 4569870.67 93849.30 2174570.66 -1963566.95 4874723.67
VI. Total liabilities 3423137.93 35764.93 151935.77 -1457707.33 2153131.30
XIX. Notes to Major Items of Financial Statements of the Parent Company
1. Accounts receivable
(1) Disclosure by aging
Unit: RMB
Aging Closing book balance Opening book balance
1-2 years 129425.40
2-3 years 2014295.99
Total 2143721.39 0.00
(2) Disclosure by provision for bad debt
Unit: RMB
Closing balance Opening balance
Provision for bad
Book balance Book balance Provision for bad debts
Category debts Book Book
Amo Percentag Proportio value Percentag Proportio value
Amount Amount Amount
unt e n e n
Including:
Accounts
receivable
subject to 2143
283436.1860284
provision for 721. 100.00% 13.22%
97.42
bad debt made 39
on a portfolio
basis
Including：
2143
283436.1860284
Aging portfolio 721. 100.00% 13.22%
97.42
39
2143
283436.1860284
Total 721. 100.00% 13.22% 0.00
97.42
39
Provision for bad debt made on a portfolio basis: aging portfolio
Unit: RMB
Closing balance
Name
Proportion Provision for bad debt Proportion
2092025 Annual Report of Yunnan Energy New Material Co. Ltd.
1-2 years 129425.40 6471.27 5.00%
2-3 years 2014295.99 276965.70 13.75%
Total 2143721.39 283436.97
Explanation of the basis for determining this portfolio:
If provision was made for bad debts of accounts receivable in accordance with the general expected credit loss model:
□Applicable□Not applicable
(3) Provision for bad debts accrued recovered or reversed during the Reporting Period
Provision for bad debts during the Reporting Period:
Unit: RMB
Changes in amount for the period
Type Closing balance
Opening balance Recovery orProvision Write-offs Others
reversal
Provision for bad
debt made on a 283436.97 283436.97
portfolio basis
Total 283436.97 283436.97
（4）Top five customers with closing balance of accounts receivable and contract assets collected by
arrear party
Unit: RMB
Closing balance of
Percentage of the provision for bad
Closing balance of Closing balance of Closing balance of total closing balance
debts of accounts
Company name accounts receivable contract assets accounts receivable of accounts
receivable and
and contract assets receivable and Closing balance of
contract assets provision forimpairment of
contract assets
Yunnan Jiake
Packaging 2143721.39 2143721.39 100.00% 283436.97
Technology Co. Ltd.Total 2143721.39 2143721.39 100.00% 283436.97
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 781539232.73 786539232.73
Other receivables 13601533643.91 12911608164.83
Total 14383072876.64 13698147397.56
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Item (investee) Closing balance Opening balance
Shanghai Energy New Material Technology
666539232.73666539232.73
Co. Ltd.Yunnan Hongta Plastic Co. Ltd. 115000000.00 120000000.00
Total 781539232.73 786539232.73
2) Disclosure by provision for bad debt
□Applicable□ Not applicable
2102025 Annual Report of Yunnan Energy New Material Co. Ltd.
(2) Other receivables
1) Other receivables by nature
Unit: RMB
Nature of amount Closing book balance Opening book balance
Capital lending 13598292754.74 12907906230.22
Other 3388279.32 3870292.33
Total 13601681034.06 12911776522.55
2) Disclosure by aging
Unit: RMB
Aging Closing book balance Opening book balance
1 year or below 936016102.71 1563908800.83
1-2 years 1563868917.35 5851547826.80
2-3 years 5643240607.41 382813869.07
Over 3 years 5458555406.59 5113506025.85
3-4 years 382813869.07 5113506025.85
4-5 years 5075741537.52
Total 13601681034.06 12911776522.55
3) Disclosure by provision for bad debt
Unit: RMB
Closing balance Opening balance
Book balance Provision for bad debts Book balance Provision for bad debts
Type Provision Book value Provision Book value
Amount Percentage Amount percentag Amount Percentage Amount
percentage
e
Including:
Provision for bad
1360168136015331291177612911608
debts made on a 100.00% 147390.15 0.00% 100.00% 168357.72 0.00%
1034.06643.91522.55164.83
portfolio basis
Including：
33882793240889.13870292.33701934.6
Aging portfolio 0.02% 147390.15 4.35% 0.03% 168357.72 4.35%.32731
Portfolio of related
parties included in 1359829 13598292 12907906 12907906
99.98%99.97%
the 2754.74 754.74 230.22 230.22
consolidated scope
1360168136015331291177612911608
Total 100.00% 147390.15 0.00% 100.00% 168357.72 0.00%
1034.06643.91522.55164.83
Provision for bad debt made on a portfolio basis: aging portfolio
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision percentage
Less than 1 year 6666.67 290.00 4.35%
1-2 years 77435.57 3368.45 4.35%
2-3 years 3304177.08 143731.70 4.35%
3-4 years
4-5 years
Above 5 years
Total 3388279.32 147390.15
2112025 Annual Report of Yunnan Energy New Material Co. Ltd.
Provision for bad debts made on a portfolio basis: Portfolio of related parties included in the consolidated scope
Unit: RMB
Closing balance
Name
Book balance Provision for bad debts Provision percentage
Less than 1 year 936009436.04
1-2 years 1563791481.78
2-3 years 5639936430.33
3-4 years 382813869.07
4-5 years 5075741537.52
Total 13598292754.74
If provision was made for bad debts in accordance with the general expected credit loss model:
Unit: RMB
Stage I Stage II Stage III
Provision for bad debts Lifetime ECL (not credit- Lifetime ECL (credit- Total
12-month ECL
impaired) impaired)
Balance on January 1
168357.72168357.72
2025
Balance on January 1
2025 for
the current period
Provision for the period -20967.57 -20967.57
Balance on December 31
147390.15147390.15
2025
Movement of book balance of significant change in provision for loss for the period
□Applicable□Not applicable
4) Provision for bad debts accrued recovered or reversed during the period
Provision for bad debts during the period:
Unit: RMB
Changes in amount for the period
Type Opening balance Recovery or Transfer or write- Closing balance
Provision Others
reversal off
Provision for bad
debts
made on an
individual
basis
Provision for bad
debts made on a
portfolio basis
Including：
168357.72-20967.57147390.15
ageing portfolio
Portfolio of
related parties
included in the
consolidated
scope
Total 168357.72 -20967.57 147390.15
5) Top five customers with closing balance of other receivables collected by arrear party
Unit: RMB
As a percentage of Closing
Nature of
Company name Closing balance Aging total closing balance balance of
amount
of provision
2122025 Annual Report of Yunnan Energy New Material Co. Ltd.
other receivables for bad
debts
Shanghai Energy
Less than 1 year1-
New Material Capital lending 5604708048.18 41.21%
2years、2-3years
Technology Co. Ltd.Wuxi Energy New Less than 1 year1-
Material Technology Capital lending 3622495053.70 2years、2-3years3- 26.63%
Co. Ltd. 4years4-5years
Jiangxi Tonry New
Less than 1 year1-
Energy Technology
Capital lending 2384661661.23 2years2-3years3- 17.53%
Development Co.
4years4- 5years
Ltd.Jiangsu Energy New
Less than 1 year1-
Material Technology Capital lending 1520084311.35 11.18%
2years2-3years
Co. Ltd.Jiangsu Ruijie New
Less than 1 year 1-
Material Technology Capital lending 375006342.31 2.76%
2years
Co. Ltd.Total 13506955416.77 99.31%
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
4836309722.904836309722.904971553501.904971553501.90
subsidiaries
Total 4836309722.90 4836309722.90 4971553501.90 4971553501.90
(1) Investments in subsidiaries
Unit: RMB
Opening Increase/Decrease for the period
balance Prov Closing
Name of investee Opening balance
of ision
(book value) provision Increase in Decrease in for
Closing balance balance of
for investment investment imp Others (book value) provision for
impairme airm impairment
nt ent
Yunnan Dexin Paper
Co. Ltd. 162135598.40 162135598.40
Yunnan Hongta
Plastic Co. Ltd. 418898313.03 418898313.03
Yunnan Hongchuang
Packaging Co. Ltd. 441809808.43 441809808.43
Shanghai Energy New
Material Technology 3680815466.35 4410588.64 3676404877.71
Co. Ltd.Zhuhai Energy New
Material Technology 7011885.18 44552.80 6967332.38
Co. Ltd.Jiangxi Tonry New
Energy Technology 6753997.03 64001.09 6817998.12
Development Co. Ltd.Jiangxi Enpo New
Materials Co. Ltd. 183394.49 183394.49
Energy (Zhuhai
Economic and
Technological
Development Zone) 5012050.32 5012050.32
New Material
Technology Co. Ltd.Jiangxi Ruijie New
Material Technology 2226992.08 2226992.08
Co. Ltd.Suzhou GreenPower 7941842.27 103190.62 8045032.89
2132025 Annual Report of Yunnan Energy New Material Co. Ltd.
New Energy Materials
Co. Ltd.Wuxi Energy New
Material Technology 11094566.01 68889.74 11163455.75
Co. Ltd.Chongqing Energy
Newmi Technological 7853923.24 77682.75 7776240.49
Co. Ltd.Chongqing Energy
New Material 49518.03 6361.94 55879.97
Technology Co. Ltd.Jiangsu Energy New
Material Technology 697240.65 156846.17 854086.82
Co. Ltd.Shanghai Energy New
Materials Research 100001968.75 602.66 100001366.09
Co. Ltd.Yunnan Jiechen
Packaging Materials 119000000.00 31000000.00 150000000.00
Co. Ltd.Hubei Energy New
Material Technology 65953.26 25574.98 91528.24
Co. Ltd.Jiangsu Ruijie New
Material Technology 656.25 254.48 910.73
Co. Ltd.Shanghai Energy
Trading Co. Ltd. 328.13 127.23 455.36
Total 4971553501.90 31425246.25 166669025.25 4836309722.90
(2) Investment in associates and joint ventures
Unit: RMB
Increase/Decrease for the period
Adjust
Opening Share of ment Closing
Openin balance profit or of Cash balance
Name of g of Increase Decrea loss
other Other
compre change dividen Provisi
Closing
balance of
investee balance provision in se in recognize ds or on for Othe provision(book for investme invest d under hensive s in profits impair rs (book for
value) impairme nt ment the income equity value)under declare ment impairment equity d nt
method theequity
method
I. Joint ventures
II. Associates
Yunnan
Yijie -
Lithium 247500.00 247500.Industry 00
Co. Ltd.Sub-total 247500.-
00247500.00
247500. -Total 00 247500.00
Recoverable amount determined based on fair value less costs of disposal
□Applicable□Not applicable
Recoverable amount determined based on the present value of expected future cash flows
□Applicable□Not applicable
4. Operating income and operating cost
Unit: RMB
Amount for the current period Amount for the previous period
Item
Income Cost Income Cost
2142025 Annual Report of Yunnan Energy New Material Co. Ltd.
Main businesses 1257706.70 1666195.21
Other businesses 3897523.84 5389637.82 3664149.86 2150884.53
Total 3897523.84 5389637.82 4921856.56 3817079.74
5. Investment income
Unit: RMB
Item Amount for the current period Amount for the previous period
Gain from long-term equity investment
45000000.00
under the cost method
Gain from long-term equity investment under
-247500.00
the equity method
Gain from disposal of long-term equity
32624566.56
investments
Gain from wealth management products 2439053.13 2775000.00
Total 34816119.69 47775000.00
XX. Supplementary Information
1. Breakdown of non-recurring gain or loss for the current period
□Applicable □Not applicable
Unit: RMB
Item Amount Remarks
Gains and losses from the disposal of non-current assets -8203684.96
Government subsidies recognized in current profit or loss (except
for those closely related to the Company’s normal business and are
63927360.69
in line with national policies and in accordance with defined criteria
that have a continuing impact on the Company’s profit or loss)
Gains and losses from the entrusted investment or management of
assets -6706147.71
Reversal of the provisions for impairment of receivables subject to
1844977.96
separate impairment test
Non-operating income and expenses other than above-mentioned
-10156736.59
items
Other items within the definition of non-recurring gains or losses 1129596.00
Less: Effect of the income tax 4979244.69
Effect of minority equities (after tax) 5110210.60
Total 31745910.10 --
Details of other profit or loss items that fall within the meaning of non-recurring gain or loss:□Applicable □Not Applicable
Mainly attributable to the refund of individual income tax handling fees.The reason for the Company to define the non-recurring profit or loss items illustrated in the Information Disclosure and Presentation Rules for
Companies Making Public Offering of Securities No. 1 – Non-recurring Profit or Loss as recurring profit or loss items.□Applicable□Not applicable
2. Return on equity and earnings per share
Weighted Earnings per share
Profit during the Reporting Period average return Basic earnings per share Diluted earnings per share
on equity (RMB/share) (RMB/share)
Net profits attributable to common
0.58%0.150.15
stockholders of the Company
Net profits attributable to common
stockholders of the Company
0.45%0.120.12
after the deduction of non-recurring
gains and losses
2152025 Annual Report of Yunnan Energy New Material Co. Ltd.
3. Accounting data differences under Chinese and overseas accounting standards
(1) Difference between the net profit and net assets of the financial report disclosed in accordance
with the international accounting standards and the Chinese accounting standards
□Applicable□Not applicable
(2) Difference between the net profit and net assets of the financial report disclosed in accordance
with the overseas accounting standards and the Chinese accounting standards
□Applicable□Not applicable
(3) Specifications of the reason for the accounting data difference under Chinese and overseas
accounting standards. In the case of any difference adjustment made to any data audited by overseas
auditor the name of this overseas auditor should be specified.
216
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