AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Avary Holding (Shenzhen) Co. Limited
2025 Annual Report
Chairman of the Board：Charles Shen
2026.03
1AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
2025 Annual Report
Section I Important Notice Table of Contents and Definitions
The Board of Directors directors and senior management of the Company hereby warrant that the
contents of this Annual Report are true accurate and complete without any false records misleading
statements or material omissions and assume individual and joint and several legal liability therefor.Charles Shen the person in charge of the Company Xiao Dewang the person in charge of accounting
work and Xiao Dewang the head of the accounting department (accounting supervisor) hereby declare that
they guarantee the truthfulness accuracy and completeness of the financial report contained in this Annual
Report. All directors attended the Board of Directors meeting at which this Report was reviewed.Forward-looking statements in this Report regarding future plans and other matters do not constitute
substantive commitments by the Company to investors. Investors and relevant parties should maintain an
adequate awareness of risks and understand the difference between plans forecasts and commitments.There are no material risk factors affecting the Company’s production operations financial condition or
sustained profitability. The Company has specifically described the risk factors it may face andcorresponding countermeasures in this Annual Report. Investors are advised to refer to “Section IIIManagement Discussion and Analysis—XI. Outlook for the Company’s Future Development—(III) Risksand Countermeasures”.The profit distribution proposal reviewed and approved by the Board is: based on 2317536658 shares a
cash dividend of RMB 10 (inclusive of tax) per 10 shares will be distributed to all shareholders with no bonus
shares (inclusive of tax) and no capitalization of capital reserves into share capital.THIS IS A TRANSLATION OF THE 2025 ANNUAL REPORT (THE "ANNUAL REPORT") OF AVARY
HOLDING (SHENZHEN) CO. LIMITED (THE "COMPANY"). THIS TRANSLATION IS INTENDED
FOR REFERENCE ONLY AND NOTHING ELSE THE COMPANY HEREBY DISCLAIMS ANY AND
ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE
ANNUAL REPORT SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE
INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN.
2AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Table of Contents
Section I Important Notice Table of Contents and D... 2
Section II Company Profile and Key Financial Indic... 7
Section III Management Discussion and Analysis ..... 11
Section IV Corporate Governance Environmental and .. 50
Section Ⅴ Important Matters ........................ 83
Section VI Changes in Shares and Shareholders ..... 109
Section VII Matters Relating to Bonds ............. 119
Section VIII Financial Statements ................. 120
3AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Documents Available for Inspection
I. Financial statements bearing the signatures and seals of the legal representative the person in charge of accounting work (Chief
Financial Officer) and the head of the accounting department of the Company.II. Original audit report bearing the seal of the accounting firm and the signatures and seals of the certified public accountants.III. Originals of all company documents and announcements publicly disclosed on the website designated by the China Securities
Regulatory Commission during the reporting period.
4AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Definitions
Refers
Definition Term Definition
to
Avary Holding the refers Avary Holding (Shenzhen) Co. Limited
Company this to
Company
Mayco/Controlling refers Mayco Industrial Limited
Shareholder to
Pacific Fair refers Pacific Fair International Limited
International to
Zhen Ding/Indirect refers Zhen Ding Technology Holding Limited (4958.TW)
Controlling to
Shareholder
Hon Hai Group refers Hon Hai Precision Industry Co. Ltd.to
Qingding Precision refers Qingding Precision Electronics (Huaian) Co. Ltd. a wholly-owned domestic subsidiary of the
to Company
Hongqisheng refers Hongqisheng Precision Electronics (Qinhuangdao) Co. Ltd. a wholly-owned domestic
to subsidiary of the Company
Avary Hong Kong refers Avary International Limited a wholly-owned subsidiary of the Company in Hong Kong China
to
Avary Taiwan refers Avary Technology Inc. a wholly-owned subsidiary of the Company in Taiwan China
to
Avary Singapore refers Avary Singapore Private Limited a wholly-owned subsidiary of the Company in Singapore
to
Avary India refers Avary Technology (India) Private Limited a wholly-owned subsidiary of the Company in India
to
Peng Shen refers Peng Shen Technology (Thailand) Co. Ltd. a subsidiary of the Company in Thailand
to
Avary Investment refers Avary Holding Investment (Shenzhen) Co. Ltd. a wholly-owned domestic subsidiary of the
to Company
Chengxin refers Huaian Chengxin Park Management Co. Ltd. a wholly-owned domestic subsidiary of the
to Company
Hong Heng Sheng refers Hong Heng Sheng Electronical Technology (Huaian) Co. Ltd. a wholly-owned domestic
to subsidiary of the Company
Guangdong refers Guangdong Zhanyang Intelligent Equipment Co. Ltd. a domestic associate of the Company
Zhanyang to
Yaoding Shenzhen refers Yaoding Environmental Energy Technology (Shenzhen) Limited formerly a wholly-owned
to domestic subsidiary of the Company
Yaoding Huaian refers Yaoding Environmental Energy Technology (Huaian) Limited a wholly-owned subsidiary of
to Yaoding Shenzhen
Yaoding refers Yaoding Environmental Energy Technology (Qinhuangdao) Limited a wholly-owned subsidiary
Qinhuangdao to of Yaoding Shenzhen
Wuxi Huayang refers Wuxi Huayang Science and Technology Co. Ltd. a controlling subsidiary acquired by the
to Company
Jiangsu Turnsor refers Jiangsu Turnsor Technology Co. Ltd. a controlling subsidiary of Wuxi Huayang
5AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
to
Wuxi Yongyang refers Wuxi Yongyang Electronic Technology Co. Ltd. an associate of Wuxi Huayang
to
Printed Circuit refers Printed Circuit Board a board formed on an insulating substrate according to a predetermined
Board / PCB to design providing point-to-point connections and printed components
Prismark refers Prismark Partners LLC a U.S.-based authoritative consulting firm in the PCB industry
to
IDC refers International Data Corporation a globally renowned professional provider of advisory consulting
to and event services for the information technology telecommunications and consumer technology
industries
FPC refers Flexible Printed Circuit
to
SMA refers Surface Mount Assembly or Surface Mount Technology
to
SLP refers Substrate-Like PCB a printed circuit board manufactured using the semi-additive process
to
HDI refers High Density Interconnect board
to
RPCB refers Rigid Printed Circuit Board
to
RigidFlex refers Rigid-Flex PCB a type of printed circuit board that combines the durability of rigid PCBs with
to the flexibility of flexible PCBs
IHDI refers Intelligent High Density Interconnect an evolution of PCB technology specifically designed to
to meet the high computing power demands of the AI era
HLC refers High Layer Count PCB a high-density high-complexity circuit board typically with more than
to 10 layers is widely used in AI servers data centers and high-end communications equipment
6AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company Information
Stock Abbreviation Avary Holding Stock Code 002938
Previous Stock Abbreviation N/A
(if any)
Stock Exchange Shenzhen Stock Exchange
Chinese Name of the 鹏鼎控股（深圳）股份有限公司
Company
Chinese Short Name 鹏鼎控股
Foreign Language Name (if Avary Holding(Shenzhen)Co.Limited
any)
Foreign Language Avary Holding
Abbreviation (if any)
Legal Representative Charles Shen
Registered Address 27/F Tower A Avary Times Building No. 2038 Haixiu Road Haibin Community Xin’an Sub-
district Bao’an District Shenzhen
Postal Code of Registered 518101
AddressIn June 2022 the company’s registered address was changed from “Buildings A1 to A3 AvaryIndustrial Park Songluo Road Yanchuan Community Yanluo Subdistrict Bao’ an District
History of changes to the
Shenzhen (with business premises located in Buildings 1 to 3 No.1 Yanshan Avenue Yanchuan
company’s registered addressCommunity)” to “27/F Tower A Avary Times Building No. 2038 Haixiu Road HaibinCommunity Xin’an Sub-district Bao’an District Shenzhen.”
Office Address 27/F Tower A Avary Times Building No. 2038 Haixiu Road Haibin Community Xin’an Sub-
district Bao’an District Shenzhen
Postal Code of Office Address 518101
Company Website http://www.avaryholding.com/
Email a-h-m@avaryholding.com
II. Contact Persons and Contact Information
Secretary of the Board Securities Affairs Representative
Name Zhou Hong Ma Limei
Contact Address 30/F Tower A Avary Times Building No. 30/F Tower A Avary Times Building No.
2038 Haixiu Road Haibin Community 2038 Haixiu Road Haibin Community
Xin’an Sub-district Bao’an District Xin’an Sub-district Bao’an District
Shenzhen Shenzhen
Telephone 0755-29081675 0755-29081675
Fax 0755-33818102 0755-33818102
Email a-h-m@avaryholding.com a-h-m@avaryholding.com
III. Information Disclosure and Location of Documents
Website of the stock exchange where the
Company discloses its Annual Report CNINFO (http://www.cninfo.com.cn/)
Media names and websites where the Shanghai Securities News Securities Times
7AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Company discloses its Annual Report
Location where the Company’s Annual Report 30/F Tower A Avary Times Building No. 2038 Haixiu Road Haibin Community
is available for inspection Xin’an Sub-district Bao’an District Shenzhen
IV. Changes in Registration
Unified Social Credit Code Unified Social Credit Code: 9144030070855050X9
Changes in principal business since listing (if any) No change
Historical changes in controlling shareholders (if
any) No change
V. Other Relevant Information
Accounting firm engaged by the Company
Name of accounting firm PricewaterhouseCoopers Zhong Tian LLP
Office address of accounting firm 42/F Qiantan Centre No. 588 Dongyu Road Pudong New Area Shanghai
Names of signing certified public accountants Guan Kun Hu Yihan
Sponsor engaged by the Company to perform continuous supervision obligations during the reporting period
□ Applicable □ Not Applicable
Financial adviser engaged by the Company to perform continuous supervision obligations during the reporting period
□ Applicable □ Not Applicable
VI. Key Accounting Data and Financial Indicators
Whether the Company needs to make retroactive adjustments or restatements to prior-year accounting data
□ Yes □ No
2025 2024 YoY Change 2023
Revenue (RMB) 39147009392.27 35140384498.03 11.40% 32066047781.90
Net profit attributable 3737843458.40 3620351391.33 3.25% 3286953204.23
to shareholders of the
listed company (RMB)
Net profit attributable 3534359318.87 3531375434.56 0.08% 3170101901.38
to shareholders of the
listed company after
deducting non-
recurring profit or loss
(RMB)
Net cash flows from 7285787285.05 7082423666.52 2.87% 7968561814.22
operating activities
(RMB)
Basic earnings per 1.61 1.56 3.21% 1.42
share (RMB/share)
Diluted earnings per 1.61 1.56 3.21% 1.42
share (RMB/share)
Weighted average 11.42% 11.73% -0.31% 11.38%
return on net assets
End of 2025 End of 2024 YoY Change End of 2023
Total assets (RMB) 48849582772.20 44542561839.93 9.67% 42278162758.58
8AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Net assets attributable 34136963183.17 32109843557.76 6.31% 29650687131.66
to shareholders of the
listed company (RMB)
Whether the lower of the net profits before and after deducting non-recurring gains and losses was negative for each of the most recent
three fiscal years and whether the audit report for the latest fiscal year indicated that material uncertainty exists regarding the
Company’s ability to continue as a going concern
□ Yes □ No
Whether the lowest of the audited total profit net profit and net profit after deducting non-recurring gains and losses for the Reporting
Period was negative.□ Yes □ No
VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in net profit and net assets between financial reports disclosed under International Financial
Reporting Standards and Chinese Accounting Standards
□ Applicable □ Not Applicable
During the reporting period there were no differences in net profit and net assets between financial reports disclosed under International
Financial Reporting Standards and Chinese Accounting Standards.
2. Differences in net profit and net assets between financial reports disclosed under overseas accounting
standards and Chinese Accounting Standards
□ Applicable □ Not Applicable
During the reporting period there were no differences in net profit and net assets between financial reports disclosed under overseas
accounting standards and Chinese Accounting Standards.VIII. Key Financial Indicators by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Revenue 8086837206.27 8288454418.38 10480141560.64 12291576206.98
Net profit attributable 488156707.96 744867178.00 1174536884.52 1330282687.92
to shareholders of the
listed company
Net profit attributable 477912388.81 670596275.06 1096212880.48 1289637774.52
to shareholders after
deducting non-
recurring profit or loss
Net cash flows from 2504703146.61 1772230360.23 -18379282.26 3027233060.47
operating activities
Whether the above financial indicators or their aggregate differ materially from the relevant financial indicators in the quarterly reports
and semi-annual report previously disclosed by the Company
□ Yes □ No
IX. Non-recurring Profit or Loss Items and Amounts
□ Applicable □ Not Applicable
9AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Unit: RMB
Item 2025 Amount 2024 Amount 2023 Amount Note
Gains/losses on
disposal of non-current
assets (including 14348695.97 6504015.86 11971819.01
reversal of impairment
provision)
Government subsidies
recognized in current
profit or loss (excluding
those closely related to
the Company’s normal
business operations in
compliance with
149696650.09136043573.52109251461.76
national policies
received on a fixed
standard basis and
having a sustained
impact on the
Company’s profit or
loss)
Fair value changes and
disposal gains/losses on
financial assets and
liabilities held by non-
financial enterprises 85242886.90 -39277221.73 11781496.00
excluding effective
hedges related to
normal business
operations
Gains/losses from
entrusted investment or 130613.55
asset management
Other non-operating
income and expenses -8195986.75 1146672.71 5929474.64
not listed above
Other profit or loss
items meeting the
913191.57
definition of non-
recurring profit or loss
Less: Income tax effect 37608106.68 16354275.16 22213562.11
Total 203484139.53 88975956.77 116851302.85 --
Details of other profit or loss items that meet the definition of non-recurring profit or loss:
□ Applicable □ Not Applicable
The Company has no other profit or loss items meeting the definition of non-recurring profit or loss.Explanation of classifying non-recurring profit or loss items listed in Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Securities to the Public—Non-recurring Profit or Loss as recurring profit or loss
□ Applicable □ Not Applicable
The Company has no items classified as recurring profit or loss that are listed as non-recurring profit or loss items in Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public—Non-recurring Profit or Loss.
10AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section III Management Discussion and Analysis
I. Principal Business during the Reporting Period
(I) Introduction to the Core Business Products and Applications
The Company is a large integrated manufacturer covering R&D design fabrication sales and services of various PCBs. The Company
provides full-range PCB products and end-to-end customized solutions across the whole industrial chain to premium customers in line
with bespoke specifications of downstream end products. By downstream application fields the Company’s PCB products are
categorized into communication PCBs consumer electronics & computer PCBs automotive server and other PCBs. These products
are widely adopted in smartphones network equipment tablet computers wearable devices laptops servers storage devices
automotive electronics and other terminal sectors.Communication PCBs refer to various printed circuit boards used in communication devices such as mobile phones routers and
switches. The Company’s communication PCBs are extensively deployed across a wide range of communication electronic terminals
with smartphones as the primary application scenario meeting the sustained industry demands for high transmission speed high
reliability and low latency amid advances in mobile communication technologies. Communication PCBs produced by the Company
cover flexible printed circuits rigid printed circuits high-density interconnect boards substrate-like PCBs (SLP) and other product
types and the Company’s clients include leading domestic and overseas electronic brands.Consumer electronics & computer PCBs are applied to consumer and computing devices closely linked to people’s daily life and
entertainment including tablets laptops wearables game consoles and smart home appliances.Automotive server and other PCBs are designed for traditional & new energy vehicles servers optical modules and related sectors.In recent years the Company has accelerated its market expansion in automotive electronics AI servers and optical modules for AI
data centers with relevant products having obtained or pending certifications from domestic and overseas clients.No material changes occurred to the Company’s core business and product lineup during the reporting period.(II) Market Position and Competitive Advantages of the Company’s Products
The Company is one of the few large-scale professional manufacturers worldwide that can conduct R&D design production sales and
service of all types of PCBs simultaneously. The Company owns a high-quality and diversified PCB product line covering FPC SMA
SLP HDI RPCB Rigid Flex and other product categories. The Company’s products are widely applied to communication electronic
products consumer electronics and computer products as well as automotive electronics AI servers optical modules high-speed
computers and other products. The Company possesses strong capabilities to supply comprehensive PCB electronic interconnection
products and services for various customers and has built an all-round one-stop service platform for PCB products.
11AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Company boasts solid technical R&D strength timely order response capacity and comprehensive quality assurance capacity to
provide customers with high-quality and cutting-edge products and services that fully meet customer demands. Supported by the
Company’s diversified product portfolio strategy outstanding rapid response capacity and mass delivery capacity leading domestic
and overseas downstream brand customers maintain long-term business cooperation with the Company.According to the China Printed Circuit Association (CPCA) China PCB Industry Ranking the Company has ranked first in China for
consecutive years. Meanwhile based on Prismark’s global ranking of PCB enterprises by revenue from 2018 to 2026 the Company
has been the world’s largest PCB manufacturer for nine consecutive years from 2017 to 2025.(III) Performance Drivers
1. Give full play to profound advantages accumulated by the Company in the consumer electronics sector and seize the
development boom of edge AI
Fluctuations in key components including global memory chips have brought certain pressure on smartphone sales in 2026. However
downstream brand owners are increasing investment in high-end models equipped with AI applications and foldable designs and high-
end smartphones are expected to become the growth segment within the smartphone market. As a key supplier of high-end smartphones
worldwide the Company will rely on the Company’s technical strengths and market insight to follow industrial development trends
deepen partnerships with downstream customers and consolidate and expand the leading position of the Company in the high-end
smartphone market.AI wearable products represented by smart glasses and headsets are expected to become major carriers for AI applications. According
to IDC forecasts global shipments of AI glasses exceeded 9.5 million units in 2025 up 255.5% from 2024. In the future continuous
innovation in product forms and expansion of application scenarios will make smart glasses the next-generation human-machine
interaction gateway and bring new growth momentum to the consumer electronics market. IDC predicts that global shipments of smart
glasses will surpass 27 million units by 2030 with a five-year compound annual growth rate of 23.33% from 2025 to 2030 ranking
12AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
first worldwide in growth rate. The Company has become an important global supplier of AI glasses and established stable cooperative
ties with many world-famous brand manufacturers. The Company will continue to benefit from the development trend of edge AI
products and create stable growth drivers for the performance growth of the Company.
2. Accelerate market development of server and optical module products to realize coordinated growth of cloud and edge
markets
In recent years AI technologies have fueled explosive growth in the server and optical module markets. According to research reports
from IDC global shipments of AI servers are expected to reach 2.15 million units in 2025 representing a 25% year-on-year increase
against 2024 and shipments of AI servers are projected to hit 2.67 million units in 2026. The rapid expansion of AI servers has unlocked
massive growth potential for the PCB industry especially the HDI and HLC segments. Meanwhile major AI server manufacturers are
speeding up innovation and R&D of new technologies to meet surging computing power demands which further drives continuous
upgrades of PCB materials and specifications. Against such backdrop leading PCB enterprises with robust technological innovation
and industrialization capabilities will secure more favorable market positions and stronger competitive advantages. Drawing on
extensive experience accumulated by the Company in HDI for consumer electronics the Company has acquired mass production
capacity for HDI products with six or more layers and holds leading technological strengths and mass production capabilities
particularly in high-end HDI and SLP products. Faced with market opportunities brought by PCB upgrading for AI servers the
Company further accelerated market expansion and customer certification procedures for AI server-related products in 2025. At present
high-end HDI products of the Company have successfully entered this sector and will achieve mass production in phases. Meanwhile
the Company is actively addressing insufficient production capacity for HLC products and continuously upgrading technical standards
of relevant products. HLC products of the Company have obtained certifications from major well-known cloud service providers or
are undergoing accelerated certification procedures comprehensively lifting the overall competitiveness of the Company in the AI
server market.As an indispensable core component for interconnection of computing clusters optical modules are growing increasingly important.Especially as internet cloud vendors push forward large-scale data center construction and expand AI computing clusters at a faster
pace market demand for 800G / 1.6T optical modules has witnessed explosive growth and the rhythm of technological iteration across
the whole industry keeps accelerating. In view of this SLP products of the Company have successfully penetrated the high-growth
800G / 1.6T optical module segment starting from 2024. In 2025 supported by the booming 800G / 1.6T optical module market
relevant businesses of the Company achieved rapid growth. At present the Company is actively planning for long-term development
and 3.2T products have entered the R&D and design stage. In the future as the market scale of 1.6T optical modules keeps expanding
relevant businesses of the Company will maintain sound momentum of rapid growth.
3. Accelerate Capacity Layout to Lay a Solid Production Foundation for Future Business Expansion
As a leading enterprise in the global PCB industry the Company has always adhered to the philosophy of sound operation. The
Company attaches great importance to financial stability and strives to maintain sound capital liquidity. As of December 31 2025
monetary funds held by the Company stood at RMB 12.032 billion with an asset-liability ratio of 28.86%. Such abundant capital
strength delivers strong support for the Company amid the new round of technological innovation cycle.Faced with the industrial development boom driven by AI the Company intensified strategic planning and implementation of capacity
layout in 2025. In terms of capacity expansion the Company plans to invest a total of RMB 8 billion from the second half of 2025 to
2028 to integrate and construct the Huaian PCB Industrial Park within the Huaian Industrial Zone. Meanwhile the Company signed
an investment agreement with Huaian Economic & Technological Development Zone in early 2026 proposing to invest RMB 11
billion in constructing a production base for high-end PCB projects in the coming years. For overseas deployment Phase I capacity
13AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
construction of the Company’s Thailand factory was fully completed and smoothly entered the trial production stage in the first half
of 2025 while Phase II and Phase III projects have commenced construction simultaneously. With the gradual completion and
implementation of all investment layouts of the Company the overall production capacity of products of the Company will be markedly
lifted in the future. In particular production capacity for high-end HDI SLP and HLC products required by high-growth sectors
including servers and optical modules will achieve substantial improvement. Such series of capacity expansions lay a solid foundation
for further expansion of cloud and edge AI businesses of the Company and bring new growth momentum for future business
development and performance improvement.II. Industry Overview during the Reporting Period
1. Current Status and Development Trend of Printed Circuit Boards
Printed circuit boards serve as critical interconnection components for assembling electronic parts. Printed circuit boards not only
provide electrical connections for electronic components but also undertake functions such as digital and analog signal transmission
power supply as well as transmission and reception of radio frequency and microwave signals for electronic devices. Printed circuit
boards are essential components for most electronic equipment and products hence known as “the Mother of Electronic Products”.Despite adverse impacts from shifts in international trade environments and sluggish global economy in 2025 the global printed circuit
board industry maintained a relatively rapid growth momentum against the backdrop of vigorous development of AI technologies and
surging investment in AI infrastructure represented by AI servers. According to statistics released by Prismark the global PCB market
size was estimated to reach USD 85.18 billion in 2025 representing a year-on-year increase of 15.8% compared with 2024. Looking
ahead to 2026 surging demand for AI servers together with the expansion and popularization of end-side AI application scenarios will
continuously fuel growth momentum of the industry. Per Prismark’s projections the global PCB market size is expected to hit USD
95.78 billion in 2026 with a year-on-year growth rate of 12.5%. From 2026 to 2029 the output value of the global PCB industry will
maintain a compound annual growth rate of 6.6% and the market scale is forecasted to exceed USD 116.02 billion by 2029.
2. Industrial Development Trends of Core Products
(1) Communications Electronics Industry
The communications electronics market downstream of PCB covers product categories including mobile phones base stations routers
and switches. Communications electronics products of the Company are mainly applied to terminal communications products such as
smartphones. Fluctuations in key components including global memory chips have brought certain pressure on smartphone sales in
2026. However downstream brand owners are increasing investment in high-end models equipped with AI applications and foldable
designs. High-end smartphones are expected to become the growth segment within the smartphone market and effectively drive up the
average selling price per unit across the smartphone market.As estimated by Prismark the output value of global communications electronics products reached USD 697 billion in 2025
representing an 8.1% year-on-year increase against 2024. The compound annual growth rate is projected to stand at 5% from 2026 to
2030 and the market size will hit USD 874 billion by 2030.
Output Value of Communications Electronics Market Products
USD Billion
14AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
1000
874
900
800697720
700631628632645
600
500
400
300
200
100
0
2021 2022 2023 2024 2025 2026F 2030F
Source: Prismark March 2026
As estimated by Prismark the output value of PCB products for communications electronics reached USD 27.3 billion in 2025
representing an 18% year-on-year increase compared with 2024. The compound annual growth rate is projected to be 6.7% from 2026
to 2030 and the corresponding PCB output value will reach USD 39.2 billion by 2030.
(2) Consumer Electronics Industry
The consumer electronics industry represented by PCs maintained a strong recovery momentum in 2025. The maturing and accelerated
popularization of AI technologies injected powerful new driving forces into industrial recovery. With continuous technological
upgrading and iteration AI terminal products represented by AI smart glasses are expected to witness market breakout growth
comparable to the launch of iPhone bringing new development opportunities to the PCB market for consumer electronics.As estimated by Prismark the global output value of consumer electronics products stood at USD 338 billion in 2025 a year-on-year
increase of 2.7% over 2024. The compound annual growth rate is projected to reach 2.4% from 2026 to 2030 and the output value will
hit USD 383 billion by 2030.Output Value of Consumer Electronic Products
USD Billion
15AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
450
400383366
337348
350329329
338
300
250
200
150
100
50
0
2021 2022 2023 2024 2025 2026F 2030F
Source: Prismark March 2026
As estimated by Prismark the output value of PCB products for consumer electronics reached USD 9.4 billion in 2025 representing a
year-on-year increase of 5.6% compared with 2024. The compound annual growth rate is projected to be 2.6% from 2026 to 2030 and
the corresponding PCB output value will reach USD 10.8 billion by 2030.
(3) Server Industry Segment
The rapid advancement of AI technologies has triggered explosive growth in computing power demand which directly fuels the rapid
expansion of AI servers. Meanwhile the rising complexity of AI servers and continuous emergence of new technologies impose stricter
requirements on printed circuit boards further driving steady growth in the value of server-use PCBs.As estimated by Prismark the global market size of servers and storage products reached USD 413 billion in 2025 representing a
substantial year-on-year increase of 41.9% against 2024. The compound annual growth rate is projected to hit 6.3% from 2026 to 2030
and the market size will reach USD 694 billion by 2030.Output Value of Electronic Products in Server and Storage Industry
USD Billion
16AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
800
694
700
600544
500
413
400
291
300
192210200
200
100
0
2021 2022 2023 2024 2025 2026F 2030F
Source: Prismark March 2026
As estimated by Prismark the output value of PCB products for servers and storage reached USD 15.6 billion in 2025 representing a
year-on-year increase of 43.6% compared with 2024. The compound annual growth rate is projected to be 12.6% from 2026 to 2030
and the corresponding PCB output value will reach USD 34.6 billion by 2030.
(4) Automotive Electronics Industry Segment
The global new energy vehicle industry maintained a growth momentum in 2025. The continuous advancement of automotive
electrification intelligence and connectivity has brought remarkable and continuously expanding growth space to the automotive
electronics market.As estimated by Prismark the global market size of automotive electronic products reached USD 278 billion in 2025 representing a
year-on-year increase of 3.7% compared with 2024. The compound annual growth rate is projected to be 4.4% from 2026 to 2030 and
the global market size of automotive electronic products is expected to hit USD 338 billion by 2030.Output Value of Automotive Electronic Products
USD Billion
17AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
400
338
350
282284300268278
240252
250
200
150
100
50
0
2021 2022 2023 2024 2025 2026F 2030F
Source: Prismark March 2026
As estimated by Prismark the market size of automotive-related PCB products reached USD 9.7 billion in 2025 representing a year-
on-year increase of 5.7% compared with 2024. The compound annual growth rate is projected to stand at 3.5% from 2026 to 2030 and
the corresponding PCB output value will reach USD 11.4 billion by 2030.III. Analysis of Core Competitiveness
(I) Product Advantages: Build an All-round One-stop Service Platform for PCB Products
The Company is one of the few large-scale professional manufacturers worldwide that integrate R&D design production sales and
service capabilities for all types of PCB products. The Company owns a high-quality and diversified PCB product portfolio covering
FPC SMA SLP HDI RPCB Rigid Flex and other product categories. Products of the Company are widely applied to communication
electronic products consumer electronics and computer products as well as automobiles servers optical modules high-speed
computers and other products. The Company boasts strong capabilities to deliver full-range PCB products and solutions for diverse
customers and has built an all-round one-stop service platform for PCB products.The Company possesses solid technical R&D strength and efficient order response capacity to guarantee timely mass delivery to
customers provide customers with premium and cutting-edge products and services and fully satisfy customer demands. Benefiting
from the diversified product strategy of the Company as well as outstanding rapid response and mass supply capabilities leading
domestic and overseas downstream brand customers maintain long-term business cooperation with the Company.(II) Customer Advantages: Serving World-leading Brand Customers and Electronic Manufacturing Service Enterprises
Supply chain management in the electronic information industry generally adopts a qualified supplier certification system which
requires PCB manufacturers to have a sound operation network efficient information management systems abundant industrial
experience and favorable brand reputation. In particular when selecting qualified suppliers certain world-leading brand customers not
only focus on production indicators such as product quality but also require suppliers to pass stringent audit procedures and meet
numerous soft assessment criteria including 6S management (Sort Set in Order Shine Standardize Sustain Safety) factory operation
specifications production procedures environmental protection employee welfare and social responsibility. Relying on robust R&D
strength mass production and on-time delivery capacity stable high-quality product performance excellent corporate management
18AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
comprehensive environmental protection arrangements and sound social image the Company has successfully been included in the
qualified supplier systems of numerous world-leading brand customers.Through long-term persistent efforts the Company has built up service capabilities covering rapid design prototype development fast
production ramp-up and mass manufacturing for downstream customers. Such capabilities help customers shorten product launch
cycles and seize market opportunities supporting customers to establish a successful operation model featuring Time to Market + Time
to Volume + Time to Money / Market Share. The above advantages enable the Company to forge close ties with leading downstream
brand customers and build long-term stable business partnerships.In addition the Company has maintained cooperation with world-class electronic brand customers since establishment. Brands the
Company has served in the past include global leading names such as Motorola Nokia and Sony Ericsson. At present the Company
has established in-depth cooperative relationships with top domestic and international brand customers. Continuous collaboration with
world-class clients allows the Company to capture product trends and market shifts and drive consistent improvements in technological
and management capabilities.(III) Technological Advantages: Participate in Pre-development Projects for World-leading Customers and Keep Pace with
Cutting-edge Technologies
The Company continuously focuses on and delves into technical R&D of electronic circuit products. The printed circuit boards
manufactured by the Company feature a minimum aperture of 0.025 mm and a minimum line width of 0.020 mm. The Company has
completed product development and process establishment with industrialization capacity for products covering high-frequency and
RF communication modules high-speed transmission and signal integrity modules dynamic bending and ultra-thin products high-end
camera modules automotive and energy storage products space communication equipment high-performance computers 1.6T optical
modules high-end rigid boards with embedded components and next-generation frame boards. The Company carries out product
development and technical planning for products to be launched within the next one to two years alongside international brand
customers and conducts advance technical reserves including research on new material application breakthrough research on new
process technologies quality verification of new products and construction of smart manufacturing production lines. In the next-
generation electronic information industry the Company conducts in-depth R&D layout covering artificial intelligence 5G & 6G
communication diversified micro-displays new energy foldable displays automotive electronics consumer electronics network
communication base stations optical communication low-orbit satellites AI servers energy storage robots smart medical devices
wearable equipment and brain-computer interfaces. Centered on five core pillars including new products new technologies new
processes new materials and new equipment the Company fully concentrates on key generic technologies and cutting-edge product
technologies to capture market trends of product development. As of December 31 2025 Avary Holding has filed a total of 2801
patent applications and obtained 1647 granted patents. The Company and its subsidiaries Hongqisheng and Qingding Precision have
all obtained intellectual property standard implementation certification and been recognized as high-tech enterprises. The Company
was accredited as a National Enterprise Technology Center in 2023.By laying out products and technologies that may emerge in the next three to five years in advance the Company directly participates
in forward-looking development of customers’ next-generation and future-generation products. Through collaborative R&D with
world-class customers and participation in early-stage product development and design the Company captures market trends and
business opportunities for new products and accurately identifies the direction of product and technology R&D. Apart from independent
R&D the Company has built an industry-university-research collaborative R&D platform and established an enterprise technology
center. The Company conducts research cooperation with many well-known universities and research institutes across Chinese
mainland Hong Kong and Taiwan to advance innovative projects and maintain a leading position in technological innovation and
market demand matching. Meanwhile the Company facilitates exchanges and cooperation with strategic partners along the industrial
19AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
chain to boost technical integration process development and process application among upstream and downstream industry
participants build a dedicated PCB technology platform and timely grasp the development trajectory of cutting-edge PCB technologies.(IV) Management Advantages: Sound Operation Philosophy and Experienced Management TeamFor many years the Company adheres to the mission of “Develop technologies for the betterment of human beings; protect theenvironment for a greener earth” and strives to realize the vision of “Develop PCB and other related industries to become a leader inthe industry”. The core values of “Integrity responsibility innovation excellence and profitability” are implemented throughout all
operational links of the Company. The forward-looking operation philosophy strengthens cohesion centripetal force and execution
capability of the management team of the Company. Such philosophy not only helps the Company foster a corporate culture and values
featuring pursuit of excellence people-oriented management and green development but also earns wide recognition from customers
partners and all sectors of society.The Company boasts an experienced and forward-looking management team covering elite talents with overseas educational
backgrounds industry professionals with profound electronics industry experience R&D specialists with abundant research
achievements and financial professionals proficient in investment and financing. The operation team of the Company possesses rich
industrial management experience and a global vision and supervisors of major product divisions have years of practical operation
experience in relevant fields. For middle and senior management as well as core key employees the Company implements equity
incentive plans and talent cultivation & promotion programs. Regular leadership training courses are held to improve leadership
capabilities of management staff. Combined with dual career track system promotion incentives and reward compensation mechanisms
such measures maximize the overall efficiency of the management team.(V) Environmental Advantages: Comprehensive and Forward-looking Environmental Protection Layout
The Company attaches great importance to internal green culture development and promotes the concept of “Avary Seven Green”
philosophy namely Green Innovation Green Procurement Green Production Green Logistics Green Service Green Reclamation and
Green Living to further generate green value and actively fulfill corporate social responsibilities. The Company has set up a dedicated
environmental protection and energy conservation department which develops proprietary green technologies covering pollution
prevention resource recovery circular economy energy saving and emission reduction. The department keeps track of the latest trends
in environmental protection energy conservation and emission reduction and actively carries out greenhouse gas inventory and cleaner
production audits. Since establishment the Company has made advance planning for environmental facilities construction in all
industrial parks and maintained continuous capital investment in environmental protection. The Company persistently advances energy
conservation and emission reduction work regards pollution prevention and resource recycling as the cornerstone of sustainable
development and has built demonstration production bases complying with upgraded environmental standards. Wastewater is
classified into 20 to 25 categories according to water quality characteristics while waste materials are sorted into more than 69
categories. All pollutant discharges meet or exceed government regulatory standards and the recycling rate of waste materials exceeds
90%.
20AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Green
Innovation
Green
Green
Chain
Existence
of Supply
Green
Green
Actions
Production
on Recycle
Green Green
Service Logistics
All industrial parks of the Company have repeatedly been awarded local green enterprise ratings. The Company was successively
recognized as one of the first and second batches of National Model Green Factories by the Ministry of Industry and Information
Technology (MIIT) in 2017 and 2018. Huaian Phase II Park and Qinhuangdao Park obtained the honor of Green Supply Chain
Management Enterprise under the National Green Manufacturing Program issued by MIIT in 2020 and 2021 respectively. In 2025 all
parks maintained Platinum certification under the Alliance for Water Stewardship (AWS) Standard and Platinum certification of UL
2799 Zero Waste to Landfill. Shenzhen Phase I Park was accredited as a MIIT Green Supply Chain Management Enterprise. Meanwhile
to support the national dual carbon goals the Company formulated a long-term carbon neutrality roadmap and actively rolled out low-
carbon operations to lay a solid foundation for scientific carbon reduction.No changes have taken place in the core competitiveness of the Company during the reporting period.IV. Analysis of Principal Business
1. Overview
In 2025 the rapid advancement of artificial intelligence technology triggered explosive growth in computing power demand fueling
rapid expansion of downstream markets represented by AI servers and driving robust development of the global printed circuit board
(PCB) industry. Faced with external uncertainties including shifts in the global trade landscape and strained supply chains the Company
maintained strategic resolve and accurately captured industrial trends. The Company achieved steady revenue growth by consolidating
market share among existing customers and expanding emerging business segments.Meanwhile continuous rises in raw material prices coupled with intensified exchange rate fluctuations created headwinds for cost
control and profit growth. To seize market opportunities in AI servers the Company ramped up capital expenditure and the resulting
increase in depreciation expenses exerted certain pressure on short-term earnings growth. Against such challenges the Company took
active measures to stabilize supply chains thoroughly push forward cost reduction and efficiency improvement capture market trends
and develop new customers and product lines thereby sustaining sound profitability.
21AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
In 2025 the Company recorded operating revenue of RMB 39.147 billion representing a year-on-year increase of 11.40%. Net profit
attributable to shareholders of the listed company reached RMB 3.738 billion up 3.25% year on year.
1. Seize Market Opportunities to Achieve Rapid Growth Across All Product Lines
All businesses of the Company posted steady and remarkable growth in 2025:
In terms of the communication board business supported by technological and capacity advantages in FPC products the Company
steadily expanded its market share took an active part in customers’ R&D of new products and technologies and maintained its leading
position in the industry. During the reporting period the communication board business generated operating revenue of RMB 25.437
billion representing a year-on-year increase of 4.95%. Its gross profit margin stood at 19.03% rising by 0.86 percentage points year
on year.For the consumer electronics and computer board business the Company captured the recovery cycle of consumer electronics and
vigorously pushed forward the development and mass production of edge AI products represented by AI glasses delivering robust
growth of relevant segments. During the reporting period operating revenue from consumer electronics and computer boards reached
RMB 11.287 billion up 15.72% year on year with a gross profit margin of 27.15% an increase of 0.13 percentage points over the
same period last year.Driven by skyrocketing demand for AI servers the automotive and server board business maintained ultra-high growth momentum.The Company actively advanced certification and prototype testing for new-generation products of well-known clients and deepened
R&D cooperation with cloud server manufacturers on AI ASIC-related products to strengthen the competitiveness of the Company’s
offerings in the AI server market. Relevant products have either obtained certifications or are undergoing certification procedures.During the reporting period the automotive and server board business achieved operating revenue of RMB 2.119 billion a year-on-
year surge of 106.67% with a gross profit margin of 21.55%.
2. Full Coverage of Cloud Network and End Applications in the AI Era and Active Layout of Forward-looking Technologies
AI technology has become the core driving force advancing the development of the PCB industry. To seize opportunities brought by
the new round of industrial growth relying on the One Avary full-spectrum PCB product platform the Company continuously increases
R&D investment innovation and strategic layout for AI-related products covering all cloud-network-end application scenarios in the
AI era. In 2025 the Company’s R&D expenditure reached RMB 2.459 billion accounting for 6.28% of operating revenue representing
a year-on-year increase of 5.79% in R&D spending.In terms of intelligent terminal devices with technological strengths in dynamically bendable FPC modules wide-band antenna
modules ultra-fine circuit FPC assemblies and N+M stacked antenna development the Company serves as a core supplier for terminal
devices including foldable phones AI smartphones and XR modules. In 2025 operating revenue generated by the Company’s AI
glasses business surged more than four times compared with 2024 making the Company the world’s largest PCB manufacturer for AI
glasses. Faced with the vast market potential of humanoid robots and their stringent technical requirements for PCBs the Company
actively develops PCB products for core functions such as main control systems sensor modules power management and joint drives.The Company has established cooperative ties with multiple domestic and international robot clients and conducts ongoing product
development and prototype testing to meet customers’ high-end PCB demands with high-precision and high-density wiring products.In the AI server segment relying on two major production bases in Huaian and Thailand the Company centers its core product lines
on IHDI and HLC focuses on customers’ demands for next-generation products and proactively expands market reach. The Company
22AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
accelerates R&D of AI server-related technologies and launches high-end HDI boards compatible with GPU modules and high-speed
transmission interfaces embedded component and embedded circuit technologies low-loss material development and back-drill stub
reduction technologies to satisfy the high computing power requirements of AI servers. The Company also conducts pre-technical
discussions and joint development with customers on products for the next two to three generations of platforms. In 2025 operating
revenue from the Company’s AI server products more than doubled year on year and robust growth is expected to continue in 2026.In optical communication leveraging leading technological and mass-production advantages in advanced mSAP processes the
Company targets the upgrade cycle of 800G and 1.6T optical communication and collaborates with customers to develop next-
generation 3.2T optical communication solutions. With the volume ramp-up of 1.6T optical modules the corresponding business is
projected to maintain rapid growth in the future.For automotive PCB products the Company has developed high-temperature-resistant and vibration-resistant HDI products to cater to
unique automotive PCB specifications.Driven by artificial intelligence in-depth AI application and digital transformation fuel the Company’s continuous layout of forward-
looking products. The Company consistently delivers comprehensive PCB product solutions for diverse clients and deepens customer
partnerships through advanced process technologies and superior product quality. The Company expands research and layout of
forward-looking technologies across emerging blue-chip PCB sectors including AI smart terminals AR / VR spatial computing
terminals intelligent automotive cockpits autonomous driving modules AI servers and edge computing low-altitude economy carriers
embodied intelligent robots and brain-computer interface modules so as to sustain technological leadership in relevant fields.
3. Accelerate Global Capacity Layout and Digital Transformation to Lay a Foundation for New Round of Expansion
In 2025 the Company further sped up the deployment of global production capacity. Domestically the Company plans to invest RMB
8 billion from the second half of 2025 to 2028 to expand high-end PCB capacity at the Huaian Park. It is expected that the IHDI and
HLC capacity of Huaian Park will double by the end of 2026 greatly boosting the supply capacity of the Company for AI server
products. Meanwhile the Company signed an investment agreement with Huaian Economic & Technological Development Zone in
early 2026 planning to invest RMB 11 billion in the construction of a production base for high-end PCB projects in the coming years.Overseas Phase I of the Company’s Thailand factory entered trial production in May 2025 mainly manufacturing high-end IHDI
HLC and optical communication module products. The mass production ramp-up is proceeding smoothly and the factory has obtained
certifications from multiple customers. Several world-leading clients in the server and optical communication sectors are actively
conducting certification processes. As capacity utilization rises the Company will continuously optimize its product mix to lift gross
profit margins. In addition four facilities including Thailand Phase II Phase III Phase V and a mechanical drilling center are under
simultaneous construction. The newly added capacity will effectively meet the growing customer demand for high-end AI products
and further consolidate the competitive edge of the Company in the global high-end electronics manufacturing industry.The Company attaches great importance to continuously improving production and management efficiency through smart
manufacturing and digital transformation. During the initial construction of new factories the Company made forward-looking plans
to build an in-depth integration and linkage mechanism between AI and production systems enabling data-driven operations and
forming a closed-loop smart factory system featuring “inspection-prediction-decision”. For the upgrading and renovation of existing
plants the Company formulated and implemented systematic upgrade solutions through on-site investigations precise pain point
analysis and scientific benefit evaluation and established a maturity management system for smart factories covering the whole
production process. At the group level the Company fully pushes forward digital transformation leverages artificial intelligence
23AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
technologies to empower production management and business decision-making and keeps optimizing operational workflows to secure
steady growth in per capita output thereby further strengthening overall profitability and market competitiveness.
4. Safeguard Secure and Stable Supply Chain Prioritize Sound Financial Status and Operational Safety
2025 marked a pivotal year of capacity expansion for the PCB industry during which major PCB manufacturers ramped up capital
expenditure to expand production capacity resulting in tight supply of upstream production equipment. Adhering to the philosophy of
“treating suppliers with sincerity” the Company has established friendly long-term partnerships with all suppliers. Backed by solid
business reputation and abundant capital strength the Company secured robust support from the supply chain ensuring the smooth
rollout of all capacity expansion plans. Meanwhile amid volatile prices of upstream raw materials the Company’s supply chain
management department delivered full play to its functions. On one hand its professional team conducted real-time analysis of the
impacts of global political and economic conditions on international bulk commodities such as copper and gold as well as supply status
of upstream material suppliers providing decision-making support for the Company’s raw material procurement. On the other hand
digital transformation of the supply chain boosted decision-making efficiency to enable faster responses to market fluctuations.Strategic alliances were formed with multiple key upstream suppliers to guarantee supply chain stability. In 2025 the Company’s
operating revenue rose by 11.40% year on year while operating costs grew by 10.37% driving a 0.74 percentage point year-on-year
increase in gross profit margin. Despite the overall price hike of upstream raw materials the Company achieved effective cost control
and sound profitability.The Company attaches high priority to sound financial conditions and operational safety maintaining all financial indicators at healthy
levels and sufficient cash flow. As of December 31 2025 the Company held monetary funds of RMB 12.032 billion with an asset-
liability ratio of 28.86%. The turnover days of accounts receivable (including bills receivable) stood at 56 days and inventory turnover
days at 43 days both ranking at favorable levels within the industry. Ample cash reserves a sound asset-liability structure and efficient
asset turnover reflect the outstanding execution capacity of the Company in financial management and business operations delivering
steady backing for long-term stable development and capital expansion and supporting sustainable and sound growth of the Company.
2. Revenue and Cost
(1) Breakdown of operating revenue
Unit: RMB
20252024
YoY
As % of operating As % of operating
Amount Amount change
revenue (%) revenue (%)
Total operating revenue 39147009392.27 100% 35140384498.03 100% 11.40%
By industry
Printed circuit boards 38842549642.22 99.22% 35015188542.33 99.64% 10.93%
Others 304459750.05 0.78% 125195955.70 0.36% 143.19%
By product
Communication boards 25436736536.74 64.98% 24235941642.49 68.97% 4.95%
Consumer electronics &
11286967768.2828.83%9754027353.3627.76%15.72%
computer boards
Automotive / server & other
2118845337.205.41%1025219546.482.92%106.67%
boards
Others 304459750.05 0.78% 125195955.70 0.36% 143.19%
24AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
By region
United States 31235667873.87 79.79% 28884852815.45 82.20% 8.14%
Greater China 6522040451.42 16.66% 5111118444.12 14.54% 27.60%
Other Asian Countries 1239539717.91 3.17% 1090941442.57 3.10% 13.62%
Europe 149761349.07 0.38% 53471795.89 0.15% 180.08%
By sales model
Direct sales 39071415588.45 99.81% 35083197509.24 99.84% 11.37%
Rental income 75593803.82 0.19% 57186988.79 0.16% 32.19%
(2) Industries products regions and sales models accounting for more than 10% of the Company’s operating revenue or
operating profit
□ Applicable □ Not applicable
Unit: RMB
Change in
Change in Change in
operating
operating cost gross margin
Gross revenue from
Operating revenue Operating cost from the same from the same
margin the same period
period of the period of the
of the previous
previous year previous year
yea
By industry
Printed circuit
38842549642.2230481034398.7621.53%10.93%9.89%0.74%
boards
By product
Communication
25436736536.7420596717935.3919.03%4.95%3.85%0.86%
boards
Consumer
electronics & 11286967768.28 8222062160.93 27.15% 15.72% 15.51% 0.13%
computer boards
By region
United States 31235667873.87 24577234463.86 21.32% 8.14% 7.04% 0.81%
Greater China 6522040451.42 5014056494.36 23.12% 27.60% 26.29% 0.80%
By sales model
Direct sales 39071415588.45 30696074716.04 21.44% 11.37% 10.40% 0.69%
Where the statistical basis for the Company’s principal business data changed during the reporting period the principal business data
for the most recent year is presented based on the adjusted basis as at the end of the reporting period.□ Applicable □ Not applicable
(3) Whether the Company’s revenue from physical product sales exceeded its revenue from service
□ Yes □ No
Industry Item Unit 2025 2024 YoY change
Sales
Printed circuit board volume RMB 30481034398.76 27737868160.19 9.89%
industry
Output RMB 30286115652.43 28147350942.94 7.60%
25AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Inventory RMB 1559485928.16 1754404674.49 -11.11%
Explanation of YoY changes of more than 30% in relevant data
□ Applicable □ Not applicable
(4) Performance of major sales contracts and major procurement contracts signed by the Company as at the end of the
reporting period
□ Applicable □ Not applicable
(5) Breakdown of operating costs
Industry
Unit: RMB
20252024
As % of YoY Industry Item As % of
Amount operating Amount chang
operating costs
costs
Printed
Direct Materials 17655672970.03 57.45% 16809593937.47 60.37% 5.03%
circuit board
Printed
Direct Labor 2160571699.52 7.03% 1825322190.66 6.56% 18.37%
circuit board
Printed Manufacturing
10914173772.5435.52%9208709277.3433.07%18.52%
circuit board Overhead
Explanation
No material changes occurred in the composition of the Company’s operating costs during the reporting period.
(6) Whether the scope of consolidation changed during the reporting period
□ Yes □ No
1) On 30 October 2025 the Company acquired a 53.68% equity interest in Wuxi Huayang at a consideration of RMB
356724164.00. Wuxi Huayang became a non-wholly-owned subsidiary of the Group and was included in the consolidation scope.
2) On 29 December 2025 the Company disposed of all equity interests held in Yaoding Shenzhen and its subsidiaries Yaoding
Huaian and Yaoding Qinhuangdao resulting in a disposal loss of RMB 7976623.70.
(7) Whether there were any material changes or adjustments to the Company’s business products or services during the
Reporting Period
□ Applicable □ Not applicable
(8) Major customers and suppliers
Major customers of the Company
Total sales to the top five customers (RMB) 35017196944.57
Total sales to the top five customers as a percentage of total
annual sales 89.45%
Sales to related parties among the top five customers as a 6.20%
26AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
percentage of total annual sales
Details of the Company’s top five customer
No. Customer Sales amount (RMB) As % of total annual sale
1 A 31181618986.77 79.65%
2 B 2428659568.58 6.20%
3 C 726710774.64 1.86%
4 D 375126100.42 0.96%
5 E 305081514.16 0.78%
Total -- 35017196944.57 89.45%
Other information about major customers
□ Applicable □ Not applicable
Major Customer B refers to Hon Hai Group and its subsidiaries under its control. Foxconn (Far East) Limited a wholly-owned
subsidiary of Hon Hai Group is the largest shareholder of Avary Holding the indirect controlling shareholder of the Company. In
accordance with the substance over form principle the Company identifies Hon Hai Group as a related party.All related transactions between the Company and Hon Hai Group as well as its controlled subsidiaries during the reporting period
were conducted on an arm’s length basis with fair transaction prices. In addition all relevant procedures governing related transactions
stipulated in the Articles of Association have been strictly complied with.Major suppliers of the Company
Total purchases from the top five suppliers (RMB) 6728693830.51
Total purchases from the top five suppliers as a percentage of
total annual purchases 21.28%
Purchases from related parties among the top five suppliers as a
percentage of total annual purchases 2.95%
Details of the Company’s top five supplier
As % of total annual
No. Supplier Purchase amount (RMB)
purchases
1 A 1843610096.21 5.83%
2 B 1841013356.30 5.82%
3 C 1121895896.84 3.55%
4 D 990106170.50 3.13%
5 E 932068310.66 2.95%
Total -- 6728693830.51 21.28%
Other information about major suppliers:
□ Applicable □ Not applicable
Major Supplier E is Hon Hai Group and its controlled subsidiaries. Foxconn (Far East) Limited a wholly-owned subsidiary of
Hon Hai Group is the largest shareholder of Avary Holding the Company’s indirect controlling shareholder. The Company classifies
Hon Hai Group as a related party based on the substance over form principle.All related transactions between the Company and Hon Hai Group together with its controlled subsidiaries during the reporting
period followed arm’s length market principles with fair pricing. Meanwhile all relevant procedures for related transactions set forth
in the Articles of Association have been strictly implemented.Revenue generated from the Company’s trading business accounted for more than 10% of total operating revenue during the
reporting period.□ Applicable □ Not applicable
27AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
3. Expenses
Unit: RMB
YoY
2025 2024 Explanation of material changes
change
Selling Mainly attributable to higher compensation for sales
expenses 272858591.14 215538088.04 26.59% staff resulting from the Company’s intensified sales
efforts.Administrative Mainly attributable to the increase in remuneration
expenses 1484265651.24 1204401327.56 23.24% of administrative personnel
Financial Not Mainly attributable to lower exchange gains caused
expenses -137072090.12 -736342413.09 applicable by exchange rate fluctuations
R&D
expenses 2458991706.79 2324474754.49 5.79% No material changes occurred
4. R&D expenses
□ Applicable □ Not applicable
Expected impact on
Project the future
R&D project Project purpose Target(s) to be achieved
progress development of the
Compan
Completed process development of
Development of Multi- Enhance product Enhance product
FPC with low-loss dielectric
layer FPC for Millimeter- performance and technical capabilities
Completed materials to meet performance
Wave RF Communication market and market
requirements of millimeter-wave
Modules competitiveness competitiveness
communication products
Enhance product Completed fine-pitch FPC process
Enhance product
Development of Fine-Pitch technical development to meet high-
technical capabilities
FPC for Next-Gen Camera capabilities and Completed performance and high-density
and market
Modules market packaging requirements of next-gen
competitiveness
competitiveness camera modules
Developed high dynamic bending &
Development of Next-Gen Enhance product Enhance product
high-frequency transmission FPC to
High-Flexibility High- performance and technical capabilities
Completed satisfy foldable smartphone
Frequency Transmission market and market
performance and improve user
FPC competitiveness competitiveness
experience
Enhance product
Enhance product
Development of New technical Completed process development of
technical capabilities
Energy Storage FPC capabilities and Completed FPC for energy storage to meet end-
and market
Products market product application requirements
competitiveness
competitiveness
Eliminated EMI under high-
Enhance product Enhance product
frequency transmission to ensure
Development of High- performance and technical capabilities
Completed signal integrity and
Shielding Automotive FPC market and market
manufacturability of automotive
competitiveness competitiveness
products
Development of Low Enhance product Developed low-power high-density Enhance product
Power Consumption performance and FPC to meet high-performance low- technical capabilities
Completed
Flexible Circuit Boards for market loss transmission demands of and market
Camera Modules competitiveness camera modules competitiveness
28AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Enhance product Realized flexible inner-layer
Research on EMI & SUS Enhance product
technical grounding and full EMI shielding
Ground Opening Process technical capabilities
capabilities and Completed design for multi-layer boards
Technology for Ultra-thin and market
market facilitating end-product design
Flexible Structures competitiveness
competitiveness optimization
Enhance product
Developed 150/350μm & 350μm Enhance product
Development of High- technical
BGA pitch technology to advance technical capabilities
Reliability Small-Pad HDI capabilities and Completed
high-density HDI and higher and market
Process market
product integration competitiveness
competitiveness
Enhance product
Adopted VOP technology combined Enhance product
Development of HDI technical
with pattern plating and selective technical capabilities
Technology with Selective capabilities and Completed
copper etching to meet fine-line and market
Plating VOP Process market
production requirements competitiveness
competitiveness
Expand product Adopted high-frequency substrates Enhance product
Development of HDI
applications and and improved alignment accuracy to technical capabilities
Products for Low Earth Completed
strengthen market enhance product signal transmission and market
Orbit Satellites
competitiveness performance competitiveness
Enhance product
Adopted cavity structure with Enhance product
Development of HDI technical
exposed solder mask at bottom to technical capabilities
Products with Solder Mask capabilities and Completed
expand inner space and boost and market
Opening at Cavity Bottom market
product performance competitiveness
competitiveness
Enhance product Researched material sets with Dk = Enhance product
Development of R-F
performance and 3.5 Df = 0.002 to develop technical capabilities
Transmission Technology In progress
market production process with 7.5% and market
Products
competitiveness impedance tolerance competitiveness
Development of Thick- Thick copper etching technology Enhance product
Enhance product
copper High-density HDI under development; various technical capabilities
quality and market In progress
Products for Consumer printing methods tested to improve and market
competitiveness
Electronics solder mask thickness uniformity competitiveness
Enhance product
Developed thin high-density cavity Enhance product
Process Development of technical
packaging boards; researched cavity technical capabilities
Thin-type Sensing HDI capabilities and In progress
structures solder mask coverage and market
Products for LED market
and full manufacturing workflows competitiveness
competitiveness
Enhance product
Enhance product
Development of Advanced technical
Green picosecond micro blind via technical capabilities
HDI Structure with Micro capabilities and Completed
technology successfully developed and market
Blind Vias for Main Boards market
competitiveness
competitiveness
Expand product Enhance product
1.6T optical modules developed and
Development of 1.6T applications and technical capabilities
Completed sampled with customer
Optical Module Products strengthen market and market
certification obtained
competitiveness competitiveness
Development of Advanced
Expand product Achieved 94.86% MLCC Enhance product
HDI Technology with
applications and embedding yield for camera technical capabilities
Embedded Passive Completed
strengthen market modules; samples delivered to and market
Components for Camera
competitiveness customers competitiveness
Modules
Development of Advanced Enhance product Completed K-type optical modules with Enhance product
29AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
HDI Technology with technical patterned Cavity bottom have technical capabilities
Circuit Layout on Cavity capabilities and passed customer certification and market
Area market competitiveness
competitiveness
Expand product Enhance product
Development of Advanced Sample fabrication completed;
applications and technical capabilities
RPCB with Embedded SiC In progress prototypes submitted to customers
strengthen market and market
MOSFET Chips for verification
competitiveness competitiveness
Enhance product
Development of Advanced Completed TLPS technology based Enhance product
technical
TLPS RPCB Technology on 12-layer 14.0mm substrates; technical capabilities
capabilities and In progress
for Multi-layer Thick resistance variation less than 5% and market
market
Boards after six reflow cycles competitiveness
competitiveness
Research on Transmission Enhance product Enhance product
78-layer TLPS samples fabricated
Loss Impact of TLPS performance and technical capabilities
In progress and loss tested meeting loss
Applied in Advanced market and market
specifications below 20GHz
RPCB competitiveness competitiveness
Enhance product Enhance product
Development of High-layer
performance and Testing completed for 30-layer 4N4 technical capabilities
HDI Boards for GPU OAM Completed
market HLC-HDI products and market
Modules
competitiveness competitiveness
Enhance product
Development of Multi- Enhance product
technical 22-layer PTFE hybrid-laminated
layer PTFE Hybrid- technical capabilities
capabilities and Completed boards developed and sampled to
laminated High-speed and market
market customers
Boards competitiveness
competitiveness
Enhance product
Enhance product
Development of High-layer technical 18-layer boards with stepped gold
technical capabilities
Boards with Step Gold capabilities and Completed fingers fabricated and samples
and market
Fingers market delivered
competitiveness
competitiveness
Enhance product
Enhance product
Development of Power technical Embedded copper block and plating
technical capabilities
Amplifier Products with capabilities and Completed trench filling technologies fully
and market
Embedded Copper Blocks market developed
competitiveness
competitiveness
R&D personnel of the Company
2025 2024 Change
Number of R&D personnel 7881 7035 12.03%
Proportion of R&D personnel 16.57% 16.31% 0.26%
By educational background
Bachelor’s degree 3480 2928 18.85%
Master’s degree 256 172 48.84%
Others 4145 3935 5.34%
By age group
Under 30 4009 3366 19.10%
30-40301029521.96%
Over 40 862 717 20.22%
30AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
R&D expenses of the Company
2025 2024 Change
R&D investment (RMB) 2458991706.79 2324474754.49 5.79%
R&D investment as a percentage of operating
revenue 6.28% 6.61% -0.33%
Capitalized R&D investment(RMB) 0.00 0.00 0.00%
Capitalized R&D investment as a percentage of
R&D investment 0.00% 0.00% 0.00%
Reasons for and impact of significant changes in the composition of the Company’s R&D personnel
□ Applicable □ Not applicable
Reasons for significant changes in the ratio of total R&D expenses to operating revenue compared with the previous year
□ Applicable □ Not applicable
Reasons for and reasonableness of significant changes in the capitalization rate of R&D expenses
□ Applicable □ Not applicable
5. Cash flows
Unit: RMB
Item 2025 2024 YOY change
Subtotal of cash inflows from operating
activities 42042366237.81 38141465663.46 10.23%
Subtotal of cash outflows from operating
activities 34756578952.76 31059041996.94 11.90%
Net cash flows from operating activities 7285787285.05 7082423666.52 2.87%
Subtotal of cash inflows from investing
activities 233773420.41 687092707.30 -65.98%
Subtotal of cash outflows from investing
activities 7378367926.49 3573497089.65 106.47%
Net cash flows from investing activities -7144594506.08 -2886404382.35 Not applicable
Subtotal of cash inflows from financing
activities 23387583259.10 19199346473.87 21.81%
Subtotal of cash outflows from financing
activities 24834249565.04 21026749178.74 18.11%
Net cash flows from financing activities -1446666305.94 -1827402704.87 Not applicable
Net increase in cash and cash equivalents -1528395963.30 2504934195.69 -161.02%
Explanation of the main factors contributing to significant YoY changes in relevant data
□ Applicable □ Not applicable
The decrease in cash inflows from investing activities was mainly attributable to lower cash received from maturing time deposits with
a term over three months compared with the prior year.The increase in cash outflows from investing activities was mainly due to higher cash payments for the acquisition and construction of
fixed assets and other long-term assets during the reporting period.The increase in cash inflows from financing activities was mainly driven by higher cash proceeds from borrowings.The increase in cash outflows from financing activities was mainly attributable to higher cash repayments of borrowings.Explanation of significant differences between net cash flows from operating activities during the reporting period and net profit for
31AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
the year
□ Applicable □ Not applicable
Net cash flows generated from operating activities of the Company during the reporting period amounted to RMB 7.286 billion while
net profit stood at RMB 3.713 billion. The difference between the two figures was mainly affected by combined factors including
depreciation of fixed assets amortization of intangible assets depreciation of right-of-use assets and inventory increase during the
reporting period. For details please refer to Note 55 Supplementary Information to the Cash Flow Statement under VII Notes to
Consolidated Financial Statements Section VIII Financial Reports of this report.V. Analysis of Non-Principal Business
□ Applicable □ Not applicable
Unit: RMB
As % of Whether
Amount Reason
total profit recurring
Investment income Mainly dividends derived from the Company’s 14524964.86 0.34% No
investment in Chenyi Fund
Gains or losses from Mainly fair value gains generated by other non-current
changes in fair value 78050851.71 1.82% financial assets including the Company’s investment in No
Chenyi Fund
Asset impairment Mainly asset impairments provisioned in accordance -50343999.45 -1.18% Yes
with the Company’s accounting policies
Non-operating
revenue 5479144.50 0.13% Mainly penalty income compensation and other items No
Non-operating
expenses 14485796.18 0.34% Mainly external donations and late payment surcharges No
Mainly government subsidies recognized under other
Other income 147346650.09 3.44% No
income
Credit impairment Mainly reversal of allowance for doubtful accounts on
-1685190.89 -0.04% No
losses trade receivables and others
Gains on disposal of Mainly gains arising from the Company’s disposal of
15159360.90 0.35% No
assets fixed assets
VI. Analysis of Assets and Liabilities
1. Significant changes in asset composition
Unit: RMB
End of 2025 Beginning of 2025
As % of As % of Change Explanation of
Amount total Amount total (%) material changes
assets assets
Mainly attributable to
Cash and cash increased cash
equivalents 12031994489.34 24.63% 13496952363.88 30.30% -5.67% payments for the
acquisition and
construction of fixed
32AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
assets intangible assets
and other long-term
assets.Trade
receivables 6073127859.07 12.43% 5768822058.27 12.95% -0.52% No significant changes
Mainly due to higher
Inventories 3806710623.33 7.79% 3355543367.59 7.53% 0.26% stockpiles of raw
materials
Investment
properties 557724115.50 1.14% 585467490.84 1.31% -0.17% No significant changes
Resulted from
recognizing Wuxi
Long-term Yoyong Sensing and
equity Technology Co. Ltd. 18780344.60 0.04% 5588808.50 0.01% 0.03%
investments an associate of acquired
Wuxi Huayang as
long-term equity
investments
Mainly due to transfer
Fixed assets 17494384350.63 35.81% 15738449342.88 35.33% 0.48% of construction in
progress to fixed assets
Construction Mainly driven by
in progress 2946557139.98 6.03% 1382440351.02 3.10% 2.93% increased investments
in new projects
Right-of-use Mainly attributable to
assets 70843868.30 0.15% 87221618.86 0.20% -0.05% depreciation provision
Short-term Mainly due to the
borrowings 3925334770.72 8.04% 3256896552.17 7.31% 0.73% growth of bank
borrowings
Mainly attributable to
Contract decreased advance
liabilities 32410207.62 0.07% 59832456.69 0.13% -0.06% payments from
customers
Long-term Mainly due to
borrowings 375720008.30 0.77% 179710003.01 0.40% 0.37% additional long-term
bank borrowings
Lease
liabilities 60032708.13 0.12% 72930502.99 0.16% -0.04% No significant changes
Whether overseas assets account for a relatively high proportion
□ Applicable □ Not applicable
33AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
2. Assets and liabilities measured at fair value
□ Applicable □ Not applicable
Unit: RMB
Gains or losses Cumulative fair
Impairment
from changes in value changes Purchases during Sales during the
Item Opening balance provided for the Other changes Closing balance
fair value for the recognized in the current period current period
current period
current period equity
Financial assets
1. Investments in
other equity 1301898858.01 470215948.19 198368740.41 -57628986.79 1912854559.82
instruments
2. Other non-
current financial 346717946.00 78050851.71 79891999.86 -21857474.71 482803322.86
assets
Total of the above
items 1648616804.01 78050851.71 470215948.19 278260740.27 -79486461.50 2395657882.68
Financial
liabilities 0 0
Other changes
Not applicable
Whether the measurement attributes of the Company’s major assets changed significantly during the reporting period
□ YES □ No
3. Restrictions on asset rights as at the end of the reporting period
As of the end of the reporting period no assets of the Company are subject to encumbrances.
34AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
VII. Investment Overview
1. Overall information
□ Applicable □ Not applicable
Investment amount in the reporting period (RMB) Investment amount in the same period of last year (RMB) Change (%)
7378367926.493573497089.65106.47%
35AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
2. Significant equity investments made during the reporting period
□ Applicable □ Not applicable
Unit: RMB
Whethe
Progress Investment
r
Investme Shareholdi Sourc as at the Expecte gains or Disclosur Disclosur
Investee Principal Amount Investme Product involve
nt ng e of Partner balance d losses for e date (if e index
company business Invested nt term type d in
method percentage funds sheet returns the current any) (if any)
litigatio
date period
n
Productio
n of
Wuxi automotiv
Huayang e Self- Equity
Not Not Not
Science modules 356724164. owne transfer 9149090. October
Others 53.68% applicabl applicabl applicabl 0.00 No 2025-067
and and R&D 00 d complete 72 31 2025
e e e
Technolog productio funds d
y Co. Ltd. n and
sales of
sensors
Total -- -- 356724164. -- -- -- -- -- -- 9149090.0.00 -- -- --
0072
3. Significant non-equity investments in progress during the reporting period
□ Applicable □ Not applicable
Unit: RMB
Total actual Cumulativ Reasons for
Whether Industries
Amount invested cumulative Sourc e realized failure to Disclosur Disclosur
Investment fixed asset covered by Project Expecte
Project in current investment as at e of return as at meet e date (if e index (if
method investmen investment progress d returns
reporting period end of reporting funds end of scheduled any) any)
t project
period reporting progress
36AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
period and
estimated
return
Huaian
industrial park
project
(including
phase II of the
expansion
Self-
project for
Printed circuit owned The project
high-end HDI Self-
board 2500273987.6 2500273987.6 or is under August
and SLP constructio Yes 31.25% -- -- 2025-056
manufacturin 1 1 self- constructio 20 2025
printed circuit n
g raised n
boards with an
funds
annual
capacity of
5.2675
million square
feet in Huaian
third park)
The
Company
plans to
invest and
build FPC
flexible
Phase I Self-
circuit and
investment Printed circuit owned
Self- module
plan for board 3174678607.2 or 115.91 Septembe
constructio Yes 812443373.91 -- -- assembly 2020-058
kaohsiung manufacturin 2 self- % r 10 2020
n production
FPC project in g raised
lines in
taiwan funds
Kaohsiung
Taiwan.The project
has been
completed
with no
37AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
separate
income
accounting
Self-
Digital
Printed circuit owned The project
transformatio Self-
board or is under December
n and constructio Yes 367330498.98 679262254.69 84.91% -- -- 2022-063
manufacturin self- constructio 7 2022
upgrading n
g raised n
project
funds
Phase I
plant of the
project has
been
completed
Self-
and put into
Printed circuit owned
Thailand Self- production
board 1435859507.8 1952073398.4 or 108.46 August 9
production constructio Yes -- -- without 2023-070
manufacturin 3 7 self- % 2023
base project n separate
g raised
accounting;
funds
phase II and
III are
under
constructio
n
Proposal on
the company’s Self-
2025 flexible Printed circuit owned The project
Self-
printed circuit board 1470508971.5 1470508971.5 or is under April 9
constructio Yes 79.66% -- -- 2025-011
board manufacturin 2 2 self- constructio 2025
n
expansion g raised n
investment funds
plan
Total -- -- -- 6586416339.8 9776797219.5 -- -- 0.00 0.00 -- -- --
51
38AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
4. Investment in financial assets
(1) Securities investments
□ Applicable □ Not applicable
Unit: RMB
Gains or
Accounti
Sec losses from Cumulative fair Sales Gains or
Securi Initial ng Opening Purchases Source
urit Abbreviati changes in value changes during the losses for the Closing carrying Accounting
ty investment measure carrying during the of
y on fair value for recognized in current Reporting amount item
code cost ment amount current period funds
type the current equity period Period
model
period
Li Ding
Semicondu
Investments
ctor Fair value Self-
Oth 945000000. 948190047. in other
-- Technolog measure 1394601.00 949584648.00 owned
ers 00 00 equity
y ment funds
instruments
(Shenzhen)
Co. Ltd.Beijing
Other non-
Chenyi Fair value - Self-
Fun 130000000. 220515116. 14141761. current
-- Merger and measure 1392047 220736403.00 owned
d 00 00 71 financial
Acquisitio ment 4.71 funds
assets
n Fund
Do
mes Jiangxi
tic Jiangnan Investments
Fair value Self-
and 60312 New 24999994.6 in other
measure 143365718.79 24999994.64 168365713.43 owned
over 4 Material 4 equity
ment funds
seas Technolog instruments
stoc y Co. Ltd.ks
Chunhua
Jingzhi
Other non-
(Beijing) Fair value - Self-
Oth 77731800.0 68482830.0 current
-- Equity measure 7384910.0 78890000.00 139987920.00 owned
ers 0 0 financial
Investment ment 0 funds
assets
Partnership
Enterprise
39AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Suzhou
Xinrui
Equity Investments
Fair value Self-
Oth Investment 60000000.0 in other
-- measure 71830280.00 60000000.00 131830280.00 owned
ers Partnership 0 equity
ment funds
(Limited instruments
Partnership
)
Partnership
interest in
Jingning
Dingqing
Other non-
Electronic Fair value - Self-
Oth 12690000.0 57720000.0 71294000. current
-- Technolog measure 7937000. 121077000.00 owned
ers 0 0 00 financial
y ment 00 funds
assets
Partnership
(Limited
Partnership
)
Do Equity
mes interest in
tic Jiangxi Investments
Fair value - Self-
and 68872 Aisen 30056000.0 102856000. in other
measure 67380986.79 5762898 112608000.00 owned
over 0 Semicondu 0 00 equity
ment 6.79 funds
seas ctor instruments
stoc Material
ks Co. Ltd.Do
mes
Suzhou
tic Investments
Xinguangy Fair value Self-
and 30168 29999998.7 in other
i measure 57808479.16 29999998.77 87808477.93 owned
over 7 7 equity
Electronics ment funds
seas instruments
Co. Ltd.stoc
ks
Do
mes
tic Sanying Investments
Fair value Self-
and 83922 Precision 15885798.6 28954895.0 in other
measure 41462827.89 70417722.90 owned
over 2 Instrument 4 1 equity
ment funds
seas s Co. Ltd. instruments
stoc
ks
Dongguan Fair value Self-
Oth 30000000.0 35448463.0 Investments
-- Sixpure measure 28925394.00 64373857.00 owned
ers 0 0 in other
Intelligent ment funds
40AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Technolog equity
y Co. Ltd. instruments
Other securities investments
225173812.186449453.
held at the end of the -- 58047660.56 84370746.86 328867860.42 -- --
9500
reporting period
-
15815374016486168078050851.278260740.22395657882.6
Total -- 470215948.19 7948646 -- --
5.004.017178
1.50
Disclosure date of board
announcement for securities Not applicable
investment approval
Disclosure date of
shareholders’ meeting
Not applicable
announcement for securities
investment approval (if any)
(2) Derivative investments
□ Applicable □ Not applicable
The Company had no derivatives investments during the reporting period.VIII. Sales of Major Assets and Equity Interests
1. Sale of major assets
□ Applicable □ Not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equity interests
□ Applicable □ Not applicable
IX. Analysis of Major Subsidiaries and Associated Companies
□ Applicable □ Not applicable
41AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Major subsidiaries and associated companies with impact of over 10% on the Company’s net profit
Unit: RMB
Company name Company type Principal business Registered capital Total assets Net assets Operating revenue Operating profit Net profit
Printed Circuit RMB
Hongqisheng Subsidiary 8967801698.26 6886103290.26 9748681805.07 1654150777.23 1458504072.70
Boards 2338456231.36
Qingding Printed Circuit RMB
Subsidiary 13023431988.31 9229126016.57 14023455577.72 1480798060.53 1327955292.04
Precision Boards 3401522135.86
Acquisition and disposal of subsidiaries during the reporting period
□ Applicable □ Not applicable
Method of acquisition and
Company name disposal of subsidiaries Impact on overall production operations and operating results
during the reporting period
Wuxi Huayang is mainly engaged in the production of automotive modules and the R&D production and sales of sensors. It
has an experienced team large-scale factories and sufficient production capacity. Within the automotive electronics industry
Wuxi HUAYANG maintains a high-quality customer base of vehicle OEMs and Tier 1 suppliers and has accumulated mature
Wuxi Huayang Science and
Equity acquisition operation and management experience. The Company’s acquisition of equity and capital contribution to Wuxi Huayang will
Technology Co. Ltd. further consolidate the Company’s strength in automotive electronics and enhance its capabilities in downstream application
and system integration of advanced automotive PCB manufacturing processes.The Company recognized investment income of RMB 9149090.72 from Wuxi Huayang in 2025.Yaoding Environmental
On December 29 2025 the Company disposed of all equity interests held in Yaoding Shenzhen and its subsidiaries Yaoding
Energy Technology Equity disposal
Huaian and Yaoding Qinhuangdao resulting in a disposal loss of RMB 7976623.70.(Shenzhen) Limited
Explanation of major Subsidiaries and Investees
Benefiting from the mass production of Phase I Project at the Company’s three Huaian campuses the expanded production capacity of subsidiary Qingding Precision drove revenue growth. In
2025 its operating revenue rose by 5.06% year-on-year. Meanwhile the capacity utilization rate of new production lines kept climbing continuously lifting its profitability. Its operating profit
increased by 30.15% year-on-year and net profit rose by 25.57% in 2025.
42AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
X. Structured Entities Controlled by the Company
□ Applicable □ Not applicable
XI. Outlook for the Company’s Future Development
(I) Corporate Development Strategy
The Company takes “Develop technologies for the betterment of human beings; protect the environment for a greener earth” as its
mission upholds the core values of “Integrity responsibility innovation excellence and profitability” and strives to fulfill its vision
of developing PCB-related industries and becoming an industry leader.Going forward the Company will continue to adopt the business strategy of “stabilizing growth adjusting structure controlling risksand boosting innovation”. Rooted in Chinese mainland and with a global footprint the Company will sustain its core strengths in
technological R&D and lean management focus on high-end product development deepen industrial chain collaboration and further
refine the industrial layout under the “One Avary” framework. The Company will step up key technological research and resource
investment centered on AI products speed up the improvement of weak links and accurately capture market trends. Faced with historic
opportunities brought by the AI era to the PCB industry the Company will leverage its full product portfolio to cover the entire AI
industrial chain including cloud network and terminal segments consolidate and expand its leading market position and achieve
sustainable and high-quality development.(II) Business Plan
The Company steadily advanced its overall business plan in 2025 and achieved remarkable results. Amid a volatile external
environment the Company maintained strategic focus ramped up digital transformation and upgrading in pursuit of established
development targets and delivered all-round improvement in operating performance.In 2026 the international landscape will remain volatile with heightened uncertainties in the global political and economic order.Escalating geopolitical tensions in the Middle East have severely disrupted the global energy supply system while shifts in global trade
conditions have introduced massive uncertainties to global supply chains. Meanwhile the AI technological revolution has unlocked
huge market opportunities for the industry yet it has also triggered shortages of key components including memory chips exerting
substantial impacts on downstream electronics sectors. Faced with the complex and volatile market landscape the Company will further
consolidate and expand its market share in AI edge devices foldable smartphones and other high-end products to strengthen its market
edge in the AI edge segment. In parallel the Company will accelerate capacity expansion projects in Huaian and Thailand to rapidly
scale up production capacity for AI servers optical modules and other related products expedite customer and product certification
for AI server businesses deliver leapfrog growth in relevant segments and drive overall revenue expansion. The Company will
systematically enhance its risk management system boost supply chain resilience and security and fully implement lean management.By optimizing resource allocation raising operational efficiency and rigorously controlling all expenses the Company will cut costs
and improve efficiency to secure steady and sustainable operating returns.
1. R&D Strategies and Plans
Adhering to the mission of “Develop technologies for the betterment of human beings; protect the environment for a greener earth”
and core values of “Integrity responsibility innovation excellence and profitability” the Company continuously develops advanced
43AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
process technologies and forward-looking product technologies aligned with industry trends expands its diversified product portfolio
and steadily strengthens its competitive edges.Driven by technological advances in artificial intelligence 6G communications diversified micro-displays new energy foldable
displays and third- and fourth-generation semiconductors sectors including automotive electronics consumer electronics
communication base stations optical communication low-orbit satellites AI servers High Bandwidth Memory (HBM) energy storage
robotics smart healthcare wearables and brain-computer interfaces are undergoing rapid iteration. These new growth drivers will
shape the future development of the industry.Accordingly the Company’s short-term R&D plan focuses on fast-growing AI cloud network and terminal markets. The Company
will develop core AI product technologies such as PCBs for AI chips and large-size high-layer PCBs while also researching and
developing promising forward-looking technologies.The Company will adopt a dual R&D center strategy covering Taiwan and the Chinese Mainland fully leveraging complementary
strengths in the electronics industry across both regions continuously boosting its capability for new technology development and
building a more competitive innovation ecosystem.
2. Capital Expenditure Plan
The estimated capital expenditure for 2026 is RMB 16.8 billion funded mainly by internal capital and self-raised funds. Key investment
projects include the Huaian Industrial Park Project Thailand Production Base Construction Project and the Company’s digital
transformation and upgrading project.
3. Production and Operation Plan
The Company formulates annual sales strategies based on customer groups and product categories. In terms of product layout the
Company seizes AI development opportunities to improve the full AI cloud-network-terminal industrial chain increases the revenue
proportion of core products such as AI servers and optical modules and realizes coordinated growth across cloud businesses. For
customer development the Company consolidates existing market share of mature products with long-term clients taps new demand
for new products from existing customers and actively explores incremental markets with new clients and new products. Under the
“One Avary” product platform the Company will consolidate its advantages in FPCs expand market share of HDI and MSAP products
address weak points of HLC products and realize coordinated complementary development across all product lines to deliver complete
ONE-STOP SHOPPING solutions for customers.In procurement management guided by the Chairman’s core philosophy of “Treat suppliers well” the Company pursues win-win
cooperation with strategic partners and deepens strategic alliances with more key suppliers. Amid fast-changing market conditions the
Company optimizes procurement decision-making processes to improve response efficiency and safeguard supply chain security and
stability.In production management the Company strengthens quality control elevates customer service advances smart manufacturing to
boost productivity and drives continuous improvement via CAPDCA to deliver premium products and services to customers.In operation management the Company will consistently uphold its core values of “Integrity responsibility innovation excellenceand profitability” adhere to long-termism and strive for sustainable corporate development. To this end the Company will further
44AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
advance digital transformation revitalize organizational vitality stimulate team innovation and collaboration embrace breakthroughs
and transformation and ensure the smooth delivery of long-term strategic targets.
4. Financial Strategies
(1) Maintain sound liquidity and cash flow to secure stable corporate operation;
(2) Mitigate exchange rate volatility risks through appropriate financial hedging instruments to reduce the impact of currency
fluctuations;
(3) Formulate scientific short-term and long-term financing plans rationally allocate domestic and overseas financing develop
diversified financing channels effectively cut financing costs and risks and improve capital utilization efficiency.
5. Talent Development Plan
The Company keeps close track of market trends. Aligned with corporate development strategies and differentiated functional demands
of businesses the Company focuses on cultivating core competencies of employees strengthens organizational culture fosters future
talents empowers overseas business expansion supports the delivery of strategic targets and drives sustainable corporate operation.To this end the Company has established a systematic talent development framework. It rolls out customized talent programs for
different job ranks and specialties integrates internal and external resources and trains core professionals required by the Group in a
targeted manner. A high-value talent supply chain is built through planning implementation resource introduction system
optimization and talent assessment.
(1) Right Talent Selection: Improve talent recruitment and selection mechanisms at all levels to match suitable employees with proper
positions deliver targeted training and upgrade their professional knowledge and skills.
(2) Professional Talent Cultivation: Develop diversified talents with international vision specialized expertise automation and smart
manufacturing capabilities. Leverage internal training platforms to strengthen professional training. The Technical Committee and
Quality & Management Institute formulate technical certification and assessment systems. Combined with industry-university
cooperation and internalized external training resources the Company builds an outstanding technical talent pipeline.
(3) Effective Talent Deployment: Implement a dynamic management mechanism for management cadres with flexible promotion
demotion recruitment and exit. A sound system will be formed where competent staff get promoted outstanding performers receive
rewards mediocre employees are demoted and underperformers eliminated. Succession planning will be advanced to realize orderly
talent inheritance across all levels.
(4) Talent Retention: Unblock career development paths build a high-value talent supply chain for the organization and provide
premium resources and support to facilitate steady growth of employees.
(5) Boost Human Resource Efficiency: Accelerate digital transformation of human resources continuously optimize HR management
systems provide manpower data support for corporate decision-making and improve talent quality and work efficiency.
(6) Cultural Development: Deepen corporate culture development build an innovative and international corporate culture and elevate
the soft power of the Company.(III) Potential Risks and Countermeasures
45AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
1. Risks Arising from Fluctuations in Global Macroeconomy
The strong resurgence of global trade protectionism in 2025 drew widespread attention and triggered chain reactions reshaping the
landscape of global supply chains trade flows and economic growth models. At the start of 2026 escalating geopolitical tensions in
the Middle East severely disrupted the international energy supply system and introduced new uncertainties to major global economies.Such circumstances may exert direct impacts on the electronic products industry and in turn affect the PCB sector.Countermeasures: The Company maintains long-term cooperation with top-tier customers and suppliers develops high-end products
including AI edge devices and foldable products and closely tracks market trends. The Company continuously raises awareness of
operational risk management ensures the safety and controllability of all financial indicators and proactively mitigates risks.Meanwhile the Company leverages artificial intelligence and big data analytics to strengthen market forecasting capabilities improve
the efficiency and accuracy of decision-making and consolidate its capacity to cope with uncertainties. Furthermore the Company
gives full play to its existing strengths to seize massive market opportunities driven by surging demand for AI computing power
accelerates market expansion of core products such as AI servers and optical modules so as to effectively offset the adverse impacts
of global macroeconomic volatility on consumer electronics businesses.
2. Exchange Rate Fluctuation Risks
The Company’s major customers and suppliers are overseas entities. Its export sales and raw material imports are mainly settled in US
dollars resulting in substantial US dollar assets (primarily US dollar cash and operating receivables) and US dollar liabilities (including
operating payables bank borrowings and other loans) held on a sustained basis. As production and sales scale expand the value of
imported raw materials and exported products will keep rising driving up the volume of foreign exchange settlements. Against an
increasingly complex global political and economic landscape the US dollar exchange rate has become far more volatile exposing the
Company to heightened exchange rate fluctuation risks.Countermeasures: The Company assigns dedicated professionals to monitor exchange rate movements and rationally adjust the
composition and volume of foreign exchange holdings. Meanwhile the Company conducts transactions in financial derivatives such
as forward foreign exchange contracts and foreign exchange swaps to hedge against exchange rate risks.
3. Risks Arising from Shifts in Global Trade Landscape
The Company’s primary customers are overseas enterprises. Since 2025 the international trade environment has grown more intricate
alongside reshuffling of the global trade landscape. As a large multinational enterprise the Company’s operating performance may be
adversely affected by shifts in global trade.Countermeasures: The Company mitigates potential negative impacts from trade changes through a global footprint and intensified
market development in mainland China and other regions worldwide.
4. Risks of Shortage and Price Hike of Raw Materials and Energy
The Company’s PCB products mainly consume raw materials including electronic components copper-clad laminates SUS stiffeners
adhesive films coverlays potassium gold cyanides prepregs inks copper balls and copper powder. Fluctuations in raw material prices
will exert certain impacts on the gross profit margin of the Company’s products. In addition production requires massive electricity
whose supply and price are subject to swings in energy supply and prices. At present escalating global geopolitical conflicts and
climate change have triggered drastic price volatility in global energy and commodity markets. Meanwhile the rapid expansion of
46AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
downstream electronics industries has driven a sharp surge in industrial demand which has been passed on to the upstream PCB supply
chain. Against such backdrop raw material and energy prices are highly uncertain exposing the Company to operational risks arising
from rising raw material and energy costs.Countermeasures: The Company strengthens communication and cooperation with upstream raw material suppliers adjusts raw
material inventory levels in a timely manner to secure stable material supply. Meanwhile through technological upgrading the
Company continuously optimizes its product mix and develops high value-added products to ease profit pressure caused by rising raw
material prices.
5. Risks Arising from Rapid Industry Changes and Intensified Market Competition
The Company’s products are mainly applied in communication consumer electronics and computer sectors which feature fast fashion
cycles frequent performance upgrades and numerous brands. Consumer preferences for various brands and products shift rapidly
resulting in shorter cycles of market share restructuring compared with traditional industries. The Company’s operating performance
may suffer adverse impacts if key clients fall into a disadvantageous position amid market competition if the Company’s technology
and production capacity fail to meet clients’ new product requirements if clients temporarily adjust delay or suspend new product
technical routes or if the Company fails to develop new clients in a timely manner.Countermeasures: Leveraging leading technological strengths the Company closely follows industry trends ramps up development of
new clients and new products and accelerates market share expansion in downstream segments such as automotive electronics and
data centers to mitigate risks brought by industry shifts.No new risk factors have emerged during the current year and there have been no material changes to the principal risks faced by the
Company.XII. Company-Hosted Research Communication and Interview Activities during the
Reporting Period
□ Applicable □ Not applicable
Reference
Topics and
Method of Attendee index for
Date Location Attendee materials
reception type research
provided
details
February Company On-site 22 institutional investors Daily Operation
Institution 2025-01
19 2025 conference room research including SDIC Securities of the Company
2024 Annual
April 9 281 investors including
Teleconference Phone call Institution Performance 2025-02
2025 Changsheng Fund
Exchange
All investors participating
Online 2024 Annual
April 17 Online online in the Company’s
performance Other Performance 2025-03
2025 exchange 2024 Annual Performance
briefing Exchange
Briefing
July 1 Company On-site 5 institutions including Daily Operation
Institution 2025-04
2025 conference room research China Merchants Securities of the Company
Company
July 16 On-site 51 institutions including Daily Operation
conference room & Institution 2025-05
2025 research Huatai Securities of the Company
teleconference
47AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
All investors participating
Online 2025 Half-year
August 26 Online online in the Company’s
performance Other Performance 2025-06
2025 exchange 2025 Half-year Performance
briefing Exchange
Briefing
104 institutional investors 2025 Q3
October 31
Teleconference Phone call Institution including China Asset Performance 2025-07
2025
Management Exchange
Investors attending the 2025
Online Collective Investor
November Online Reception for Listed Daily Operation
Online Exchange Other 2025-08
20 2025 exchange Companies in Shenzhen of the Company
hosted by Panorama
Network
XIII. Implementation of the Market Value Management System and Valuation Enhancement
Plan
Whether the Company has established a market value management system
□ Yes □ No
Whether the Company has disclosed a valuation enhancement plan
□ Yes □ No
The Company held the 13th meeting of the 3rd Board of Directors on December 25 2024 and reviewed and approved the Proposal
on Formulating the Company’s Market Value Management System.The Company’s Market Value Management System sets out systematic provisions covering market value management bodies and
personnel major market value management approaches monitoring and early warning mechanisms emergency response measures
and internal assessment and evaluation methods. It aims to effectively boost the Company’s investment value raise investor returns
and safeguard investors’ interests.For full text of the Market Value Management System please refer to Market Value Management System of Avary Holding
(Shenzhen) Co. Limited published on CNINFO (www.cninfo.com.cn) on December 26 2024.XIV. Implementation of the Action Plan for “Improvement in Both Quality and Earnings”
Whether the Company has disclosed the announcement on the action plan for “Improvement in Both Quality and Earnings”
□ Yes □ No
On March 6 2024 the Company disclosed the Announcement on the Action Plan for “Improvement in Both Quality and Earnings” of
Avary Holding on CNINFO. To implement the guiding principles set forth at the Political Bureau of the CPC Central Committee that
“we shall invigorate the capital market and boost investor confidence” and the State Council executive meeting that “we shallsubstantially improve the quality and investment value of listed companies adopt more powerful and effective measures to stabilizethe market and shore up confidence” and safeguard the interests of all shareholders the Company formulated the Action Plan for
“Improvement in Both Quality and Earnings”. Targeted measures will be rolled out across five dimensions: Focus on core business to
achieve competitive advantages; Pursue innovative development to stay ahead of industry trends; Adopt green and low-carbon practices
for sustainable operation; Advance digital transformation and standardized governance; Reward shareholders and enhance corporate
value to fully deliver the goals of the Action Plan for “Improvement in Both Quality and Earnings”.During the reporting period guided by its mission “Develop technologies for the betterment of human beings; protect the environmentfor a greener earth” and vision “Develop PCB and other related industries to become a leader in the industry” the Company kept pace
with trends in the electronics sector and remained focused on its core PCB business. By consolidating market share with existing clients
48AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
and expanding emerging business segments the Company further refined its industrial layout under the “One Avary” framework. In
2025 the Company recorded core operating revenue of RMB 38.843 billion representing a year-on-year increase of 10.93% compared
with 2024.In terms of R&D and innovation leveraging the full-spectrum PCB product platform under “One Avary” the Company ramped up
R&D investment and strategic layout for AI-related products covering all cloud network and terminal application scenarios in the AI
era. In 2025 the Company’s R&D expenditure reached RMB 2.459 billion accounting for 6.28% of total operating revenue with a
5.79% year-on-year rise in R&D spending. As of December 31 2025 Avary Holding had filed a total of 2801 patents and obtained
1647 granted patents.
For green development the Company consistently fosters internal green culture and actively responds to global demands for
environmental protection and sustainable development. The Company optimizes production processes adopts green energy and low-
carbon materials to effectively cut carbon emissions and resource consumption during manufacturing. During the reporting period
total Scope 1 and Scope 2 greenhouse gas emissions from the Company’s major production sites stood at 291699 tons CO2e with an
emission intensity of 0.07 tons CO2e per RMB 10000 revenue marking an 84% reduction against the 2013 baseline.Regarding digital transformation and standardized governance the Company prioritizes smart manufacturing and digital upgrading to
continuously lift production and management efficiency. By the end of 2025 the Company had built 17 smart factories. Elevating
corporate governance standards improving information disclosure quality and strengthening investor protection remain core priorities
for the Company. In 2025 in compliance with the latest regulatory requirements and internal development needs the Company
comprehensively revised over 30 governance documents including the Articles of Association Rules of Procedure for the Board of
Directors and Working Rules for Independent Directors. The Company also optimized its governance structure by abolishing the Board
of Supervisors and redefining the scope of responsibilities of the Audit Committee.The Company has built an investor protection system centered on standardized information disclosure and has been awarded Grade A
the highest rating for information disclosure assessment by the Shenzhen Stock Exchange for six consecutive years. In 2025 the
Company maintained a 100% response rate on the SZSE Investor Interactive Platform (IRM.cninfo.com.cn) and all online inquiries
submitted during the collective investor reception day activities received full replies.The Company attaches great importance to shareholder returns. In 2025 the Company formulated a three-year Shareholder Return
Plan covering 2025 to 2027 specifying clear criteria and ratios for cash dividends. In 2025 the Company distributed cash dividends
in strict accordance with the shareholder return plan and profit distribution policies and implemented the 2024 profit distribution
scheme. Total cash dividends distributed for 2024 amounted to RMB 2318051016 accounting for 64.03% of the net profit attributable
to shareholders of listed companies for 2024. Since its IPO the Company has distributed cumulative dividends of RMB 9.724 billion
with an average dividend payout ratio of 40.91%. This fully demonstrates the management’s strong commitment to safeguarding
shareholder interests and sharing operating gains with investors while sustaining corporate growth.
49AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section IV Corporate Governance Environmental and Social
Responsibility
I. Overview of Corporate Governance
In accordance with the Company Law the Securities Law and other relevant laws and regulations the Company has established a
corporate governance structure comprising the General Meeting of Shareholders the Board of Directors specialized committees of the
Board and senior management. Pursuant to the relevant laws and regulations and the Articles of Association the Company has
formulated rules and procedures including the Rules of Procedure of the General Meeting of Shareholders the Rules of Procedure of
the Board of Directors the Working System for Independent Directors the Working Guidelines for the Secretary of the Board of
Directors and the Working Guidelines for the Chief Executive Officer providing institutional support for the standardized operation
of the Company’s corporate governance structure.(I) Shareholders and General Meeting of Shareholders
The Company strictly complies with laws administrative regulations and the relevant provisions of the Articles of Association and the
Rules of Procedure of the General Meeting of Shareholders to regulate the convening holding and voting procedures of General
Meetings. The Company treats all shareholders equally and ensures that all shareholders are able to fully exercise their rights. During
the reporting period the convening and holding procedures of the General Meeting the qualifications of attendees and the voting
procedures all complied with the Company Law the Articles of Association and the Rules of Procedure of the General Meeting of
Shareholders.(II) Controlling Shareholders and the Listed Company
The Company maintains a complete business system and the capability to operate independently in the market. The Company is
independent from its controlling shareholder indirect controlling shareholder and other enterprises under their control in terms of assets
personnel finance organization and business. The Board of Directors and internal organizations of the Company are able to operate
independently. The controlling shareholder conducts itself in a strictly regulated manner without directly or indirectly interfering in
the Company’s decision-making and operations beyond the authority of the General Meeting of Shareholders. There are no acts that
harm the interests of the listed company such as non-operational occupation of the listed company’s funds or illegal guarantees.(III) Directors and Board of Directors
The Board of Directors comprises 9 directors including 1 Chairman 3 independent directors and 1 employee representative director.The Board has a well-balanced professional structure and its members possess the knowledge skills and qualities necessary to perform
their duties. The Board has established five specialized committees namely the Strategy and Risk Management Committee the Audit
Committee the Nomination Committee the Remuneration and Assessment Committee and the ESG Development Committee which
assist the Board in performing its functions in respect of strategic development planning and risk management internal and external
auditing the nomination of directors and senior management remuneration and assessment of directors and senior management and
ESG development respectively providing scientific and professional advisory opinions for Board decisions. During the reporting
period the Company convened and held Board meetings strictly in accordance with the Articles of Association and the Rules of
Procedure of the Board of Directors. Directors performed their duties faithfully honestly and diligently attended Board meetings on
time and expressed clear opinions on matters deliberated by the Board.
50AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(IV) Independent Directors
The Company has 3 independent directors of whom 1 is an accounting professional and the other 2 also have extensive backgrounds
and practical experience in the electronics industry. Independent directors perform their duties strictly in accordance with the
requirements of laws and regulations and normative documents such as the Company Law the Corporate Governance Code for Listed
Companies and the Measures for the Administration of Independent Directors of Listed Companies. They perform their duties diligently
and participate in Board decision-making in an independent and objective manner playing a key role in financial report review related-
party transaction examination and internal control supervision. They effectively oversee matters that may involve material conflicts of
interest with the controlling shareholder actual controller directors and senior management thereby strongly promoting Board
decisions that are in the overall interests of the listed company and effectively protecting the legitimate rights and interests of minority
shareholders.(V) Performance Evaluation and Incentive-Restraint Mechanism
The appointment of the Company’s directors and senior management is open transparent and in compliance with relevant laws
regulations and the Articles of Association. The responsibilities of the CEO and other senior management are clearly defined enabling
them to perform their duties in accordance with the Articles of Association the Working Guidelines for the CEO and other management
systems. The Company has formulated the Proposal on the Performance-based Remuneration Accrual Method for the Chairman Mid-
to-Senior Management and Core Technical Personnel linking the remuneration of the Chairman and senior management with the
Company’s performance and individual performance results thereby fully motivating senior management’s work initiative and
creativity improving the level of corporate management and promoting the Company’s healthy and sustainable development.The performance evaluation of the Company’s directors and senior management is the responsibility of the Remuneration and
Assessment Committee of the Board. Each year the CEO submits a work report to the Board; the Board reports to the General Meeting
of Shareholders on the performance of directors’ duties; and independent directors submit reports on their performance to the General
Meeting of Shareholders.(VI) StakeholdersWhile maintaining rapid growth the Company places great importance on corporate social responsibility. It regards “employeescustomers strategic partners shareholders and society” as the five pillars of Avary’s development fully respecting and protecting the
legitimate rights of employees and other stakeholders and strengthening communication and cooperation with all parties to jointlydrive the company’s sustainable and healthy development. Meanwhile guided by its corporate mission of “developing technologybenefiting humanity advancing environmental protection and making the earth a better place” the Company actively promotes a green
corporate culture advances environmentally friendly low-carbon and high-quality development actively participates in social welfare
activities and practices corporate social responsibility.(VII) Information Disclosure and Investor Protection
The Company strictly fulfills its information disclosure obligations in accordance with the Shenzhen Stock Exchange’s Rules for the
Listing of Stocks and other relevant laws and regulations ensuring that information disclosure is truthful accurate complete and timely.The Company has designated Shanghai Securities News Securities Times and CNINFO as its designated information disclosure media
ensuring that all shareholders have equal access to the Company’s operational information. To further standardize information
disclosure management and improve the internal control mechanism for information disclosure the Company has established the Avary
Holding Information Disclosure Committee and formulated the Working Procedures of the Information Disclosure Committee which
are strictly implemented.To protect the interests of minority investors and in accordance with the Company’s Information Disclosure Management System and
Investor Relations Management System the Company has designated the Secretary of the Board to be responsible for information
disclosure and investor relations work. The Office of the Secretary of the Board plans arranges and organizes various investor relations
management activities and day-to-day affairs. The Company has established unimpeded investor communication channels and
maintains comprehensive communication and exchange with investors through dedicated investor hotlines investor research visits and
the interactive platform of the investor relations website. After the disclosure of periodic reports the Company promptly holds
performance briefings. During the reporting period the Company held online performance briefings following the publication of the
Annual Report and Semi-annual Report enabling investors to gain a more comprehensive and in-depth understanding of the Company’s
operational performance and development strategy.
51AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Company has formulated a Market Capitalization Management System to effectively drive the enhancement of the Company’s
investment value strengthen investor returns and protect investor interests. The Company actively rewards shareholders and has
formulated a Three-Year Shareholder Return Plan sharing the fruits of the Company’s development with shareholders through stable
annual cash dividends.Whether there are material differences between the Company’s actual corporate governance and the provisions on listed company
governance issued by the laws administrative regulations and the CSRC
□ Yes □ No
The Company’s actual corporate governance does not materially differ from the provisions on listed company governance issued by
the laws administrative regulations and the CSRC.II. Independence of the Company from its Controlling Shareholder and Actual Controller in
Respect of Assets Personnel Finance Organization and Business
The Company has a complete business system and the ability to operate independently in the market and is independent from its
controlling shareholder indirect controlling shareholder and other enterprises under their control in terms of assets personnel finance
organization and business.(I) Independence of Assets
The Company has a complete business system and all assets related to production and operations with full control and disposal rights
over all assets. There are no instances of assets being occupied by the controlling shareholder indirect controlling shareholder or other
enterprises under their control that would harm the interests of the Company.(II) Independence of Personnel
The Company’s human resources management is completely independent from the controlling shareholder indirect controlling
shareholder and other enterprises under their control. Senior management including the CEO General Manager Deputy General
Managers CFO and Secretary of the Board are employed on a full-time basis by the Company and receive remuneration solely from
the Company. None of them hold any position other than director or supervisor or receive any remuneration other than director’s
allowance from the controlling shareholder indirect controlling shareholder or other enterprises under their control. None of them
holds a position in any other entity with the same or similar business as the Company or with other conflicts of interest. The Company’s
financial personnel do not hold concurrent positions at the controlling shareholder indirect controlling shareholder or other enterprises
under their control.(III) Independence of Finance
The Company has established an independent finance department staffed with dedicated financial personnel capable of making
independent financial decisions. The Company has established standardized corporate accounting systems financial management
systems and internal control systems. The Company maintains separate bank accounts and independently manages its operating funds
with no bank accounts shared with shareholders or any other entities or individuals. The Company files and pays taxes independently
in accordance with the law with no commingling of taxes with shareholders.(IV) Independence of Organization
In strict compliance with the Company Law the Company has established the General Meeting of Shareholders the Board of Directors
specialized Board committees senior management teams and relevant functional departments and has established a standardized
corporate governance structure and comprehensive internal rules and regulations exercising its management powers independently.
52AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(V) Independence of Business
The Company has an independent and complete R&D system independently procures raw materials required for production
independently organizes product manufacturing and independently sells products and provides services. The Company’s business is
independent from the controlling shareholder and other enterprises under its control. The Company independently generates business
revenue and profit without relying on shareholders or any other related parties.III. Competition with the Same Industry
□ Applicable □ Not Applicable
Issue Type Type of Company Company Cause of the Issue Resolution Measures Work Progress
Relationship Name Nature and Subsequent
with the Plan
Listed
Company
Horizontal Controlling Zhen Ding Overseas Zhen Ding Technology The Company and Zhen Ding The
Competition Shareholder Technology acquired Xianfeng Holding signed the Entrusted aforementioned
Holding Communications overseas in Management Cooperation Entrusted
Limited 2020. As the Company’s Agreement between Zhen Ding Management
business continues to expand Technology Holding Limited Cooperation
Xianfeng Communications and Avary Holding (Shenzhen) Agreement is
has certain business Co. Ltd. on January 1 2023. proceeding
similarities with the Zhen Ding Holding issued the normally.Company. However the Commitment Regarding the
company’s main operations Resolution of Business
are located in the Taiwan Similarities with Xianfeng
region and its scale is Communications Co. Ltd. on
relatively small; therefore March 14 2023.there is no horizontal
competition that would
constitute a material adverse
impact on the Company.IV. Directors and Senior Management
1. Basic Information
Name Gend Ag Position Status Term Ter Shares at Shares Shares Other Shares Reason
er e Start m Beginni Increase Decreas Chang at the for Share
Date End ng of d ed es End of Changes
Dat Period During During (shares Period
e (shares) the the ) (shares
Period Period )
(shares) (shares)
Charles Male 74 Chairman of Incumbent May Apri 01 0 0 0 0
Shen the Board 16 l 25
and CEO 2017 202
6
You Male 63 Director Incumbent May Apri 0 0 0 0 0
Zhehong 16 l 25
2017202
6
Huang Male 72 Director Incumbent April Apri 0 0 0 0 0
Chongxi 30 l 25
ng 2020 202
6
Lin Male 59 Director and Incumbent April Apri 02 0 0 0 0
Yihong General 25 l 25
Manager 2023 202
6
53AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Ke Male 74 Director Incumbent April Apri 0 0 0 0 0
Chengen 29 l 25
2025202
6
Miao Femal 40 Employee Incumbent April Apri 196238 0 0 0 19623
Chunna e Representati 29 l 25 8
ve Director 2025 202
6
Zhang Femal 43 Independent Incumbent April Apri 0 0 0 0 0
Milin e Director 18 l 25
2022202
6
Zhang Male 62 Independent Incumbent April Apri 0 0 0 0 0
Jianjun Director 25 l 25
2023202
6
Wei Male 56 Independent Incumbent April Apri 0 0 0 0 0
Xuezhe Director 25 l 25
2023202
6
Chen Male 62 General Incumbent Octob Apri 0 0 0 0 0
Guoshen Manager er 30 l 25
g 2023 202
6
Xiao Male 60 Deputy Incumbent May Apri 03 0 0 0 0
Dewang General 16 l 25
Manager and 2017 202
CFO 6
Zhou Femal 61 Deputy Incumbent May Apri 0 0 0 0 0
Hong e General 16 l 25
Manager and 2017 202
Secretary to 6
the Board of
Directors
Zhong Male 50 Deputy Incumbent Dece Apri 0? 0 0 0 0
Jiahong General mber l 25
Manager 27 202
20196
Gao Male 62 Deputy Incumbent Septe Apri 0 0 0 0 0
Guoqian General mber l 25
Manager 9 202
20206
Yang Femal 59 Deputy Incumbent April Apri 10300? 0 0 0 10300
Weizhen e General 25 l 25
Manager 2023 202
6
Luo Male 51 Deputy Incumbent Octob Apri 60000 0 0 -6000 54000 Repurcha
Anzhi General er 30 l 25 se and
Manager 2024 202 cancellati
6 on of
restricted
stock
under the
equity
incentive
plan
Total -- -- -- -- -- -- 266538 0 0 -6000 26053 --
8
Note: 1. As of the end of the reporting period Mr. Charles Shen indirectly holds 0.33% equity interest in Avary Holding through
Yuefeng Company.
2. As of the end of the reporting period Mr. Lin Yihong indirectly holds 0.03% equity interest in Avary Holding through Yuefeng
Company.
3. As of the end of the reporting period Mr. Xiao Dewang indirectly holds 0.03% equity interest in Avary Holding through Yuefeng
Company.
54AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
4. As of the end of the reporting period Mr. Zhong Jiahong indirectly holds 0.02% equity interest in Avary Holding through Dele
Investment.
5. As of the end of the reporting period Ms. Yang Weizhen indirectly holds 0.03% equity interest in Avary Holding through Dele
Investment.Whether any directors or senior management departed during their terms of office during the reporting period
□ Yes □ No
Changes in Directors and Senior Management of the Company
□ Applicable □ Not Applicable
Name Position Held Type Date Reason
Ke Chengen Director Elected April 29 2025 By-election of Director
Miao Chunna Employee Representative Elected April 29 2025 By-election of Director
Director
Charles Shen Chairman of the Board and Removal August 12 2025 Job Transfer
CEO
Chen Guosheng General Manager Removal August 12 2025 Job Transfer
2. Employment Details
Professional Background Principal Work Experience and Current Responsibilities of Current Directors and Senior Management of the
Company
Mr. Charles Shen: Born in 1952 graduated from the Department of Business Administration at Chinese Culture University (Taiwan)
with a bachelor’s degree. From 1979 to 1989 he served at the Export-Import Bank of the R.O.C. where he held the position of Section
Chief. From 1990 to 1993 he served at Asia Securities Co. Ltd. where he held the position of Deputy General Manager. From 1993
to 1994 he served at Chung Hsing Bank of Commerce (Taiwan) where he held the position of Special Assistant to the General Manager.From 1994 to 1996 he served at Pacific Securities Co. Ltd. (Taiwan) where he held the position of Executive Vice President. From
1996 to 1997 he served at Asia Financial Advisors Co. Ltd. where he held the position of General Manager. From 1997 to 1999 he
served at Ideal Land Co. Ltd. where he held the position of General Manager. From 1999 to 2004 he served at Yaowen Electronics
Industrial Co. Ltd. where he held the position of General Manager. In 2004 he served at Hongyang Venture Capital Co. Ltd. where
he held the position of Deputy General Manager. Since 2005 he has served as Chairman of Zhen Ding Holding. He currently serves
as Chairman of the Board and Chief Executive Officer of the Company.Mr. You Zhehong: Born in 1963 graduated from the Department of Law at National Chengchi University (Taiwan) with a bachelor’s
degree and later obtained a master’s degree from the Washington College of Law at American University (USA). From 1998 to 2002
he served at Hon Hai Group where he held the position of Legal Counsel in the Legal Department. From 2002 to 2010 he served at
Hongyang Venture Capital Co. Ltd. where he held the position of Senior Manager of the Investment and Legal Department. Since
February 2010 he has been employed at Hon Hai Group. He currently serves as a Director of the Company Senior Associate of the
Central Finance and Legal Affairs Division of Hon Hai Group and a Director of Zhen Ding Holding among other positions.Mr. Huang Chongxing: Born in 1954 graduated from the Department of Electrical Engineering at National Taiwan University with
a bachelor’s degree and later obtained a Ph.D. in Business Administration from the University of Texas (USA). From 1978 to 1982
he served at Texas Instruments (Taiwan) where he held the position of Engineering Department Manager. From 1987 to July 2018 he
served at the College of Management of National Taiwan University where he held the position of full-time Associate Professor. From
2017 to 2020 he served as an Independent Director of the Company. He currently serves as a Director of the Company and concurrently
serves as Distinguished Professor at Fudan University Independent Director and member of the Remuneration Committee at Yiying
55AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Co. Ltd. Independent Director at Chenbro Micom Co. Ltd. and Executive Director and full-time Professor at the College of Business
Chang Gung University (Taiwan).Mr. Lin Yihong: Born in 1967 graduated from Feng Chia University with a bachelor’s degree in International Trade and later obtained
a master’s degree from the Rotterdam School of Management. From 1992 to 1994 he served at Baoqiao Taiwan Co. Ltd. where he
held the position of Sales Representative. From 1997 to 2000 he served at IBM Taiwan Corporation where he held the position of
Specialist. From 2000 to 2006 he served at United Parcel Service (UPS) Taiwan where he held the position of Senior Manager. In
2007 he served at Yulon Motor Co. Ltd. where he held the position of Senior Manager. From 2007 to 2017 he served at Zhen Ding
Holding where he held the position of Deputy General Manager. From 2017 to 2023 he served as Deputy General Manager of the
Company. He currently serves as a Director and General Manager of the Company.Mr. Ke Chengen: Born in 1952 graduated from the Department of Business Administration at National Taiwan University with a
bachelor’s degree and subsequently obtained a Master’s degree in Business Administration from the University of Southern California
(USA) and a Ph.D. in Accounting from the University of Minnesota (USA). He previously served at the School of Accounting at the
University of Southern California as an Assistant Professor and at the Department of Accounting at National Taiwan University where
he served as Professor Department Chair and Dean of the College of Management. From 2017 to 2025 he served as a Supervisor of
the Company. He is currently an Emeritus Professor in the Department of Accounting at National Taiwan University and serves as a
Director of the Company. He concurrently serves as an Independent Director and member of the Remuneration Committee at Changtai
Industrial Co. Ltd. an Independent Director and member of the Remuneration Committee at Lianmao Electronics Co. Ltd. a member
of the Remuneration Committee at ATEN International Co. Ltd. a member of the Remuneration Committee at Yangcheng Technology
Co. Ltd. and a member of the Remuneration Committee at Zhen Ding Holding.Ms. Miao Chunna: Born in 1986 graduated from Northeastern University at Qinhuangdao with a bachelor’s degree in Marketing
and later obtained a Master’s degree in Business Administration from Tongji University. Since 2008 she has been employed at the
Company. From 2017 to 2025 she served as an Employee Representative Supervisor of the Company. She currently serves as an
Employee Representative Director of the Company and Chairperson of the Labor Union.Ms. Zhang Milin: Born in 1982 graduated from Tsinghua University with a bachelor’s and master’s degree in Electronic Science and
Technology and obtained a Ph.D. from the Hong Kong University of Science and Technology. She served as a Postdoctoral Researcher
at the University of Pennsylvania (USA). From 2016 to 2019 she served as an Assistant Professor at Tsinghua University. Since 2019
she has served as an Associate Professor in the Department of Electronic Engineering at Tsinghua University. She currently serves as
an Independent Director of the Company.Mr. Zhang Jianjun: Born in 1964 graduated from Anhui University of Finance and Economics with a bachelor’s degree in
Commercial Accounting a master’s degree in Accounting and a Ph.D. in Accounting from Shanghai University of Finance and
Economics. From 1985 to 1999 he taught at Jiangxi University of Finance and Economics successively serving as Teaching Assistant
in Accounting Associate Professor and Deputy Department Chair and Professor and Deputy Dean. From 1999 to 2001 he served as
Vice President of Pengyuan Credit Rating Co. Ltd. From 2001 to 2006 he served as Dean and Professor of the School of Economics
at Shenzhen University. Since 2003 he has concurrently served as a member of the Expert Committee for the Shenzhen Mayor’s
Quality Award. Since 2014 he has concurrently served as a Council Member of the Chinese Accounting Association. Since 2018 he
has concurrently served as Supervisor General of the Shenzhen Accounting Association. Since 2007 he has served as Director and
Professor of the Institute of Accounting and Finance at Shenzhen University. He currently serves as an Independent Director of the
Company and concurrently serves as an Independent Director of Sunwoda Electronic Co. Ltd. and an Independent Director of
Chongda Technology Co. Ltd.
56AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Mr. Wei Xuezhe: Born in 1970 graduated from the Department of Automation School of Electronics and Information Engineering
at Tongji University with a bachelor’s and master’s degree and obtained a Ph.D. in Vehicle Engineering from the School of Automotive
Studies at Tongji University. From 1997 to 2020 he taught at the School of Automotive Studies at Tongji University successively
serving as Teaching Assistant Associate Professor and Deputy Dean. Since 2011 he has served as a Professor at the School of
Automotive Studies at Tongji University and as Secretary General of the Hydrogen Energy Fuel Cell Branch of the China Battery
Industry Association. He currently serves as an Independent Director of the Company and concurrently serves as an Independent
Director of Ningbo Joyson Electronic Co. Ltd.Mr. Chen Guosheng: Born in 1964 graduated from the Department of Electrical Engineering at National Kaohsiung University of
Science and Technology (Taiwan) with a bachelor’s degree and later obtained a Master’s degree in Business Administration from I-
Shou University (Taiwan). From 1986 to 2020 he served at Nippon Mektron Ltd. (Taiwan) where he held the position of General
Manager. Since 2020 he has been employed at the Company. He currently serves as General Manager of the Company.Mr. Xiao Dewang: Born in 1966 graduated from the Department of Business Administration at National Taiwan University with a
bachelor’s degree and later obtained a master’s degree in Business Administration from Cornell University (USA). From 1991 to 1993
he served at Yuntong Trading Co. Ltd. where he held the position of Deputy Manager. From 1996 to 1997 he served at Xinqiao
Investment Co. Ltd. where he held the position of Specialist. From 1997 to 1998 he served at Xinyu Cogeneration Co. Ltd. where
he held the position of Associate Manager. In 1999 he served at Lianqiao Chemical Co. Ltd. where he held the position of Deputy
Manager. From 1999 to 2003 he served at Yaowen Electronics Industrial Co. Ltd. where he held the position of Manager/Special
Assistant. From 2004 to 2005 he served at Hongyang Venture Capital Co. Ltd. where he held the position of Deputy Manager. From
2006 to 2017 he served at Zhen Ding Holding where he held the position of Senior Associate. From 2015 to 2016 he served at
Yangcheng Technology Co. Ltd. where he held the position of Director. Since 2017 he has served as Deputy General Manager and
Chief Financial Officer of the Company.Ms. Zhou Hong: Born in 1965 graduated from Tsinghua University with a bachelor’s degree in Air Conditioning and Refrigeration
and later obtained a Master of Engineering from the School of Architecture at Tsinghua University an MBA from Massey University
(New Zealand) and a Master’s degree in Finance. From 1989 to 1992 she served as a Lecturer at Beijing University of Technology.From 1992 to 1997 she served as an Engineer at Shenzhen Architectural Design Institute. From 2001 to 2007 she served as an
Independent Director of EVOC Intelligent Technology Co. Ltd. From 2001 to 2002 she served as an Assistant to the President at
Shenzhen Jiyu Investment Management Co. Ltd. From 2002 to 2003 she served as a Director at Asia Global Securities Co. Ltd.Hong Kong. From 2003 to 2005 she served at Dongfang Yijian Health Industry Investment Co. Ltd. where she held the position of
Director. From 2005 to 2016 she served at CSG Holding Co. Ltd. where she held the position of Secretary to the Board of Directors.From 2016 to 2017 she served at Shenzhen Malian Technology Co. Ltd. where she held the position of Chief Executive Officer.Since 2017 she has served as Deputy General Manager and Secretary to the Board of Directors of the Company and concurrently
serves as an Independent Director of Chengtian Weiye.Mr. Zhong Jiahong: Born in 1976 graduated from the Department of Electronics at Southern Taiwan University of Science and
Technology. From 2003 to 2006 he served at Jialianyi Technology Co. Ltd. as an Overseas Sales Representative. From 2006 to 2017
he served at Zhen Ding Holding where he held the position of Associate in the Sales Department. Since 2017 he has been employed
at the Company. He currently serves as Deputy General Manager of the Company.Mr. Gao Guoqian: Born in 1964 graduated from the Department of Chemical Engineering at Chung Yuan Christian University
(Taiwan). From 1991 to 2003 he served as Deputy Plant Manager at Nan Ya PCB Co. Ltd. From 2003 to 2004 he served as Deputy
General Manager at Jiading Technology Co. Ltd. From 2005 to 2020 he served as Plant Manager at Nan Ya PCB Co. Ltd. Since
January 2020 he has been employed at the Company. He currently serves as Deputy General Manager of the Company.
57AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Ms. Yang Weizhen: Born in 1967 graduated from Tamkang University with a bachelor’s degree majoring in Japanese and minoring
in English. From 1989 to 1997 she served at Japan Airlines Co. Ltd. where she held the position of Senior Flight Attendant. From
1997 to 2002 she served at Proview Technology Co. Ltd. where she held the position of Deputy Manager in the Secretariat. Since
2005 she has served at Zhen Ding Holding where she held the positions of Senior Secretary of the Chairman’s Office / Director of
the Chairman’s Office / Director of Human Resources. Since 2017 she has been employed at the company. She currently serves as
Deputy General Manager of the company.Mr. Luo Anzhi: Born in 1975 graduated from the Department of Mechanical Engineering at Tamkang University (Taiwan). From
2000 to 2011 he served at Unimicron Technology Corporation where he held the position of Senior Manager. Since 2011 he has been
employed at Avary Holding. He currently serves as Deputy General Manager of the Company.Whether the controlling shareholder or actual controller simultaneously serves as both Chairman and General Manager of the listed
company
□ Applicable □ Not Applicable
Positions Held at Shareholder Entities
□ Applicable □ Not Applicable
Name of Whether Remuneration or
Name of Shareholder Position Held in
Office Start Date of Term End Date of Term Allowance Is Received from
Entity Shareholder Entity
Holder Other Entity
SHEN Qing- Zhen Ding Technology Chairman June 20 2006 May 29 2026 Yes
Fang Holding Limited
SHEN Qing- Mayco Industrial Co. Ltd. Director March 31 2008 — No
Fang
SHEN Qing- Pacific Fair International Director March 31 2008 — No
Fang Co. Ltd.YOU Zhe- Zhen Ding Technology Director February 1 2013 May 29 2026 Yes
Hong Holding Limited
KE Cheng- Zhen Ding Technology Member of the October 6 2011 May 29 2026 Yes
En Holding Limited Remuneration
Committee
HSIAO Te- Yuefeng Co. Ltd. Director October 20 2016 — No
Wang
Positions Held at Other Entities
□ Applicable □ Not Applicable
Whether Remuneration or
Name of Position Held in Other
Name of Other Entity Start Date of Term End Date of Term Allowance Is Received from
Office Holder Entity
Other Entity
YOU Zhe- Hon Hai Precision Senior Associate Vice February 1 2010 — Yes
Hong Industry Co. Ltd. President
HUANG Fudan University Distinguished July 1 2018 — Yes
Chung-Hsing Professor
HUANG Medical Imaging Co. Independent Director September 1 2017 — Yes
Chung-Hsing Ltd. and Member of the
Remuneration
Committee
HUANG Chenbro Micom Co. Ltd. Independent Director June 23 2020 — Yes
Chung-Hsing
HUANG College of Executive Director February 1 2022 — Yes
Chung-Hsing Management Chang and Full-time
Gung University Professor
ZHANG Mi- Department of Electronic Associate Professor March 1 2016 — Yes
Lin Engineering Tsinghua
58AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
University
ZHANG Institute of Accounting Director and Professor January 1 2007 — Yes
Jian-Jun and Finance Shenzhen
University
ZHANG Sunwoda Electronic Co. Independent Director May 20 2020 — Yes
Jian-Jun Ltd.ZHANG Suntak Technology Co. Independent Director November 28 — Yes
Jian-Jun Ltd. 2025
WEI Xue- School of Automotive Professor January 1 2011 — Yes
Zhe Studies Tongji University
WEI Xue- Ningbo Joyson Electronic Independent Director September 3 2021 — Yes
Zhe Corp.KO Cheng- Usun Technology Co. Member of the August 7 2024 — Yes
En Ltd. Remuneration
Committee
KO Cheng- Chang Tai Industrial Co. Independent Director June 27 2022 — Yes
En Ltd. and Member of the
Remuneration
Committee
KO Cheng- ATEN International Co. Member of the June 16 2020 — Yes
En Ltd. Remuneration
Committee
KO Cheng- Iteq Corporation Independent Director May 30 2024 — Yes
En and Member of the
Remuneration
Committee
KO Cheng- National Taiwan Professor Emeritus January 1 2012 — Yes
En University
ZHOU Hong Shenzhen Chengtian Independent Director December 19 — Yes
Weiye Technology Co. 2025
Ltd.Penalties imposed by securities regulatory authorities on current and departed directors and senior management within the past three
years
□ Applicable □ Not Applicable
3. Remuneration of Directors and Senior Management
Decision-making procedures basis of determination and actual payment of remuneration for directors and senior management
At the 2022 Annual General Meeting held on April 25 2023 the Company reviewed and approved the Proposal on the Accrual Method
for Performance-based Remuneration for the Chairman Middle and Senior Management and Core Technical Personnel of the
Company. In order to fully motivate professional managers enhance the sense of responsibility and cohesion of the Company’s
professional management team and core technical personnel maintain the stability of Avary Holding’s core management team and
core talent pool and promote the healthy and sustainable development of the Company the Company aligns the interests of the
professional management team represented by the Chairman and core technical personnel with the interests of the Company and has
established the following performance-based remuneration accrual plan: (i) After the end of each fiscal year the Company accrues a
performance bonus for its middle and senior management and core technical personnel at 5% to 12% of the profit for that year (the
above profit refers to the profit amount before accrual of the performance bonus). The total annual performance bonus amount is
confirmed by the Chairman as authorized by the Board of Directors and implemented upon deliberation and approval by the
Remuneration and Appraisal Committee of the Board of Directors. (ii) The Chairman’s remuneration is accrued at 0.5% of the pre-tax
net profit of the previous year. (iii) The performance and remuneration of the Company’s middle and senior management and technical
personnel are determined based on the performance appraisal results of the relevant personnel for the current year.
59AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
At the 2024 Annual Shareholders’ Meeting held on April 29 2025 the Company reviewed and approved the Proposal on Remuneration
of Directors of the Company: Based on the industry in which the Company operates taking into account the Company’s actual
circumstances and the duties and responsibilities of directors the Board of Directors approved the following director remuneration:
Directors who hold positions in the Company and concurrently serve as directors of the Company’s shareholders shall receive the
remuneration and benefits corresponding to their existing positions in the Company and the Company’s shareholders; directors who
do not hold any position in the Company shall receive remuneration of RMB 0.3 million (pre-tax); independent directors shall receive
an annual allowance of RMB 0.3 million (pre-tax) calculated on a pro rata daily basis for service periods of less than one full year.Necessary expenses incurred by directors in attending meetings of the Board of Directors and Shareholders’ Meetings and in exercising
their powers in accordance with the Company Law the Articles of Association and other relevant provisions shall be separately
reimbursed by the Company based on actual expenses incurred. The remuneration of the Chairman of the Company shall be calculated
and paid in accordance with the Company’s Accrual Method for Performance-based Remuneration for the Chairman Middle and
Senior Management and Core Technical Personnel.Remuneration of Directors and Senior Management During the Reporting Period
Unit: RMB 10000
Name Gender Age Position Status Total Pre-tax Remuneration Whether Remuneration Is
from the Company Received from Related Parties
of the Company
SHEN Male 74 Chairman of the Board and Incumbent 813 Yes
Qing- CEO
Fang
YOU Male 63 Director Incumbent 0 Yes
Zhe-
Hong
HUANG Male 72 Director Incumbent 30 No
Chung-
Hsing
LIN Yi- Male 59 Director and General Incumbent 313.34 No
Hong Manager
ZHANG Female 43 Independent Director Incumbent 30 No
Mi-Lin
ZHANG Male 62 Independent Director Incumbent 30 No
Jian-Jun
WEI Male 56 Independent Director Incumbent 30 No
Xue-Zhe
KO Male 74 Director Incumbent 20 Yes
Cheng-
En
MIAO Female 40 Employee Representative Incumbent 30.54 No
Chun- Director
Na
CHEN Male 62 General Manager Incumbent 507.51 No
Guo-
Sheng
HSIAO Male 60 Deputy General Manager Incumbent 289.73 No
Te- and CFO
Wang
ZHOU Female 61 Deputy General Manager Incumbent 243.32 No
Hong and Secretary to the Board
of Directors
ZHONG Male 50 Deputy General Manager Incumbent 299.03 No
Jia-
Hong
GAO Male 62 Deputy General Manager Incumbent 144.22 No
Guo-
Qian
60AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
YANG Female 59 Deputy General Manager Incumbent 252.87 No
Wei-
Zhen
LUO Male 51 Deputy General Manager Incumbent 293.28 No
An-Zhi
Total — — — — 3344.84 —
The remuneration of the Company’s directors is paid in accordance with
the Proposal on Remuneration of Directors of the Company approved at
the 2024 Annual Shareholders’ Meeting. The remuneration of the
Assessment Basis for Remuneration Actually Received by All Directors Chairman and senior management is determined based on the Accrual
and Senior Management at the End of the Reporting Period Method for Performance-based Remuneration for the Chairman Middle
and Senior Management and Core Technical Personnel of the Company
approved at the 2022 Annual General Meeting combined with
individual year-end performance appraisals.Completion Status of Assessment for Remuneration Actually Received
by All Directors and Senior Management at the End of the Reporting Completed
Period
Deferred Payment Arrangements for Remuneration Actually Received
by All Directors and Senior Management at the End of the Reporting Not applicable
Period
Clawback and Recovery of Remuneration Actually Received by All
Directors and Senior Management at the End of the Reporting Period Not applicable
Explanation of Other Circumstances
□ Applicable □ Not Applicable
V. Performance of Duties by Directors during the Reporting Period
1. Attendance of Directors at Board and Shareholder Meetings
Attendance of Directors at Board of Directors and General Meetings
Name of Number of Number of Number of Number of Number of Whether Failed
Director Board Board Board Board Board to Attend Two
Number of
Meetings Meetings Meetings Meetings Meetings Consecutive
Shareholders’
Required to Attended in Attended by Attended by Absent Board
Meetings
Attend During Person Telecommunic Proxy Meetings in
Attended
the Reporting ation Person
Period
SHEN Qing- No
Fang 9 3 6 0 0 1
YOU Zhe- No
Hong 9 3 6 0 0 1
HUANG No
Chung-Hsing 9 3 6 0 0 1
LIN Yi-Hong No
936001
ZHANG Mi- No
Lin 9 3 6 0 0 1
ZHANG Jian- No
Jun 9 3 6 0 0 1
WEI Xue-Zhe No
936001
KO Cheng-En No
725001
MIAO Chun- No
Na 7 2 5 0 0 1
61AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Explanation for failure to personally attend two consecutive Board meetings
Not applicable
2. Objections Raised by Directors on Company Matters
Whether any director raised objections to company matters
□ Yes □ No
During the reporting period no director raised any objection to company matters
3. Other Explanations on the Performance of Duties by Directors
Whether recommendations made by directors regarding the Company were adopted
□ Yes □ No
The board’s explanation regarding whether the relevant recommendations of the company have been adopted or not
In 2025 the Board of Directors strictly fulfilled the Board’s responsibilities entrusted by the General Meeting in accordance with the
Company Law the Shenzhen Stock Exchange’s Rules for the Listing of Stocks and other laws and regulations as well as the Articles of
Association the Rules of Procedure of the General Meeting the Rules of Procedure of the Board of Directors and other corporate rules.The Board strictly implemented all resolutions of the General Meeting actively promoted the implementation of all Board resolutions
continuously improved the Company’s corporate governance structure and ensured that the Board made decisions scientifically and
operated in a standardized manner. In terms of corporate management the Board diligently carried out all its work continuously
strengthened internal control management actively provided advice on major corporate decisions and promoted the development of
the Company’s various businesses.In 2025 in accordance with the latest regulatory requirements and the Company’s own development needs the Company
comprehensively revised over 30 governance systems including the Articles of Association the Rules of Procedure of the Board of
Directors and the Working System for Independent Directors. The governance structure was simultaneously optimized by abolishing
the Board of Supervisors and redefining the scope of responsibilities of the Audit Committee.VI. Specialized Committees under the Board of Directors during the Reporting Period
Number Details of
Important Opinions
Committee of Date of Other Duties Dissenting
Members Meeting Content and Suggestions
Name Meetings Meeting Performed Matters (if
Proposed
Held any)
The Audit Committee
strictly complied with
the estimation of the
Company’s 2025
Reviewed and adopted routine connected
two proposals: the transactions and the
Proposal on Estimating application for the
Zhang
The 3rd Board the Company’s 2025 2025 financial
Jianjun
of Directors’ Jan 17 Routine Connected derivative trading
Zhang 6 None None
Audit 2025 Transactions and the quota in accordance
Milin Wei
Committee Proposal on Applying with the Company Law
Xuezhe
for the 2025 Financial CSRC regulatory rules
Derivative Trading the Articles of
Quota Association and other
relevant provisions.After full
communication and
discussion the
62AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Committee adopted the
above proposals and
agreed to submit them
to the Board of
Directors for
deliberation.The Audit
Committee
heard a
presentation
Second Communication from the
Mar 28
Meeting on the 2024 None external audit None
2025
Annual Report Audit firm on matters
related to the
Company’s
2024 annual
report audit.Reviewed and adopted
seven proposals: the The Audit Committee
Proposal on the strictly complied with
Company’s 2024 the Company’s 2024
Annual Report and Its annual report internal
Summary the Proposal control report the
on the Company’s 2024 reappointment of the
Financial Settlement accounting firm for
The Audit
Report the Proposal on 2025 and the
Committee
the Company’s 2024 establishment of the
heard a report
Internal Control Self- accounting firm
on the 2024
Evaluation Report the selection and
work of the
Proposal on the appointment system in
external audit
Company’s 2024 accordance with the
Apr 7 firm and the
Internal Control Audit Company Law CSRC None
2025 Company’s
Report the Proposal on regulatory rules the
Internal Control
the Reappointment of Articles of Association
Audit
the Accounting Firm for and other relevant
Department’s
2025 the Proposal on provisions. After full
2024 annual
Establishing the communication and
internal audit
Company’s Accounting discussion the
work summary.Firm Selection and Committee
Appointment System unanimously adopted
and the Proposal on the all proposals and
Pre-Approval Policy for agreed to submit them
Non-Attestation to the Board of
Services Provided by Directors for
the Annual Audit deliberation.Accounting Firm
The committee strictly The Audit
complied with the Committee
Company Law CSRC communicated
Reviewed and adopted regulations and the via email to
Apr 28 the Proposal on the Articles of Association understand the
None
2025 Company’s 2025 First in reviewing the 2025 Company’s
Quarterly Report first quarterly report. It Internal Control
was approved and Audit
agreed to submit to the Department’s
Board of Directors for 2025 first
63AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
deliberation. quarter internal
audit work
status.The Audit
The committee strictly Committee
complied with the heard the
Reviewed and adopted
Company Law CSRC Company’s
the Proposal on the
regulations and the Internal Control
Company’s 2025 Semi-
Articles of Association Audit
Annual Report and its
in reviewing the 2025 Department’s
Aug 11 Summary and
semi-annual report and report on the None
2025 the Proposal on the
its summary as well as 2025 second
Estimated Amount of
the related party quarter internal
the Company’s 2025
transaction proposal. audit work and
Daily Related Party
Approved and agreed the internal
Transactions
to submit to the Board audit work plan
of Directors. for the second
half of the year.The Audit
Committee
heard the
Company’s
Internal Control
The committee strictly Audit
complied with the Department’s
Company Law CSRC 2025 third
regulations and the quarter internal
Reviewed and adopted Articles of Association audit work Oct 29
the Proposal on the in reviewing the 2025 status and None 2025
Company’s 2025 Third third quarterly report. It conducted
Quarterly Report was approved and preliminary
agreed to submit to the communication
Board of Directors for with the
deliberation. external audit
firm regarding
the Company’s
2025 annual
report audit
work.The Nomination
Committee reviewed
the qualifications and
Reviewed and adopted
personal background of
the Proposal on
Ke Chengen as a
Apr 07 Nominating Ke
candidate for Director None None
2025 Chengen as a
Wei Xuezhe of the Company and
The 3rd Board Candidate for Director
Zhang agreed to nominate Ke
of Directors’ of the Company
Jianjun 2 Chengen as a Director
Nomination
Huang candidate to the Board
Committee
Chongxing of Directors.Reviewed and adopted The Nomination
the Proposal on Committee reviewed
Aug 11 Adjusting the the qualifications of the
None None
2025 Organizational Company’s senior
Structure of Senior management personnel
Management and unanimously
64AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
adopted the relevant
proposal agreeing to
submit it to the Board
of Directors for
deliberation.The Remuneration and
Appraisal Committee
discussed and adopted
the Company’s 2024
Reviewed and adopted
performance-based
five proposals: the
remuneration accrual
Proposal on the
matters. It also
Company’s 2024
reviewed in
Market Value
accordance with the
Management Work and
Company’s 2021
Evaluation Report the
Restricted Stock
Proposal on the
Incentive Plan (Draft) The
Repurchase and
the fulfillment of Remuneration
Cancellation of Certain
conditions for lifting and Appraisal
Restricted Shares under
sales restrictions in the Committee
the 2021 Restricted
fourth lifting-of-sales- reviewed the
Stock Incentive Plan
restriction period of the Company’s
and the 2024 Restricted
2021 restricted shares 2024 market
Stock Incentive Plan
Apr 07 and reviewed in value
the Proposal on the None
2025 accordance with the management
Partial Fulfillment of
2021 Restricted Stock work evaluation
Lifting-of-Sales-
Incentive Plan (Draft) report and
Restriction Conditions
and the 2024 Restricted affirmed the
for the Fourth Lifting-
Zhang Stock Incentive Plan Company’s of-Sales-Restriction
The 3rd Milin (Draft) the repurchase market value Period under the
Remuneration Zhang and cancellation of management
2 Company’s 2021
and Appraisal Jianjun certain restricted work in 2024. Restricted Stock
Committee Huang shares. The Committee Incentive Plan the
Chongxing also fully discussed the Proposal on Accruing
proposal on
2024 Performance-
remuneration for the
Based Remuneration
Company’s Directors
and the Proposal on
unanimously agreed to
Remuneration for the
the relevant proposals
Company’s Directors
and agreed to submit
them to the Board of
Directors for
deliberation.The Company
reviewed in
Reviewed and adopted
accordance with the
the Proposal on the
2024 Restricted Stock
Partial Fulfillment of
Incentive Plan (Draft)
Lifting-of-Sales-
the partial fulfillment
Restriction Conditions
Aug 11 of conditions for lifting
for the First Lifting-of- None None
2025 sales restrictions in the
Sales-Restriction
first lifting-of-sales-
Period under the
restriction period under
Company’s 2024
the 2024 Restricted
Restricted Stock
Stock Incentive Plan
Incentive Plan
unanimously adopted
the proposal and
65AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
agreed to submit it to
the Board of Directors
for deliberation.The Strategy and Risk
Reviewed and adopted Management The Company’s
three proposals: the Committee fully risk
Proposal on the understood the relevant management
Company’s 2025 investment background group reported
Flexible Board and risks agreed to the to the Strategy
Capacity Expansion Company’s capital and Risk
Investment Plan the increase to subsidiaries Management
Apr 07
Proposal on Capital Taiwan Avary and Committee via None
2025
Increase to Wholly- Hong Heng Sheng and email on the
Owned Subsidiary the 2025 flexible board execution status
Taiwan Avary and the capacity expansion of 2024 risk
Proposal on Capital investment plan and management
Increase to Wholly- agreed to submit the and integrity in
Owned Subsidiary proposals to the Board business
Hong Heng Sheng of Directors for operations.deliberation.The Strategy and Risk
Management
Committee fully
Reviewed and adopted understood the relevant
the Proposal on the investment background
June 19 Wholly-Owned and risks agreed to
Charles 2025 Subsidiary’s subsidiary Hong Kong None None
The 3rd Board
Shen Huang Participation in Avary’s investment in of Directors’
Chongxing Subscribing for the CRPIF fund and
Strategy and
Lin Yihong 6 Investment Fund Units agreed to submit the
Risk
Zhang proposal to the Board
Management
Milin Wei of Directors for
Committee
Xuezhe deliberation.The Strategy and Risk
Management
Committee fully
understood the relevant
investment background
Reviewed and adopted
and risks agreed to the
the Proposal on Capital
Aug 11 Company’s capital
Increase to Wholly- None None
2025 increase to subsidiaries
Owned Subsidiary
Singapore Avary and
Singapore Avary
India Avary and agreed
to submit the proposal
to the Board of
Directors for
deliberation.
80
The Strategy and Risk
Reviewed and adopted Management
Aug 18 the Proposal on the Committee fully None None
2025 Company’s Huaian understood the relevant
Park Investment Plan investment background
and risks agreed to the
Company’s total
66AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
investment of RMB 8
billion for the
integrated construction
of the Huaian Industrial
Park within the Huaian
Park and agreed to
submit the proposal to
the Board of Directors
for deliberation.Based on a full
understanding of the
relevant investment
background and risks
the Strategy and Risk
Management
Committee after
careful deliberation
Reviewed and adopted agreed to the
two proposals: the Company’s capital
Proposal on Capital increase to subsidiary
Increase to Wholly- Hong Heng Sheng.Owned Subsidiary Meanwhile the
Oct 29 Hong Heng Sheng and Committee also
None None
2025 the Proposal on the reviewed and adopted
Acquisition of and the proposal on the
Capital Increase to the acquisition of and
Equity of Wuxi capital increase to the
Huayang Science and equity of Wuxi
Technology Co. Ltd. Huayang Science and
Technology Co. Ltd.After full discussion
the Committee
members unanimously
agreed to submit the
above two proposals to
the Board of Directors
for deliberation.The Strategy and Risk
Management
Committee fully
understood the relevant
Reviewed and adopted investment background
the Proposal on the and risks agreed to the
Dec 14
Company’s 2026 Company’s 2026 None None
2025
Thailand Park Thailand Park
Investment Plan investment plan and
agreed to submit the
proposal to the Board
of Directors for
deliberation.VII. Work of the Audit Committee
Whether the Audit Committee identified any risks in the Company during its supervisory activities in the reporting period
□ Yes □ No
67AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Audit Committee had no objections to the matters subject to supervision during the reporting period.VIII. Employees of the Company
1. Number of Employees Professional Composition and Education Level
Number of employees of the parent company at the end of the reporting
period 12164
Number of employees of major subsidiaries at the end of the reporting
period 35409
Total number of employees at the end of the reporting period 47573
Total number of employees receiving remuneration during the current
period 47573
Number of retired employees whose costs are borne by the parent
company and major subsidiaries 0
Professional Composition
Professional Category Number of Persons
Production personnel 29032
Sales personnel 491
Technical personnel 10982
Finance personnel 137
Administrative personnel 2454
Management personnel 4477
Total 47573
Education Level
Education Level Category Number of Persons
Master’s degree and above 542
Bachelor’s degree 8648
Associate degree (Junior college) 14570
Senior high school/ Vocational high school 13402
Junior high school 10411
Total 47573
2. Remuneration Policy
Based on the Company’s operational objectives and profitability performance and taking into consideration factors such as employees’
job responsibilities professional skills and performance results Avary provides a competitive overall compensation package. This
package includes incentive-based variable compensation such as base salary allowances year-end performance bonuses continuous
service bonuses innovation and R&D bonuses and proposal improvement bonuses designed to boost employee morale at appropriate
times and retain outstanding talent.To maintain the Company’s overall compensation competitiveness the Human Resources Department closely monitors changes in the
external economic environment coordinates planning and periodically reviews annual remuneration policies for each industrial park.When formulating policies in addition to referencing the minimum wage standards promulgated by local governments it also utilizes
68AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
market remuneration survey reports provided by professional consulting firms to accurately assess salary levels in the locations of each
industrial park and formulate salary adjustment plans in a timely manner.The Company ensures that employees’ base salary is not lower than the local statutory minimum wage standard to meet employees’
basic living needs and lawfully pays overtime compensation. In addition the Company implements a differentiated salary adjustment
mechanism based on employees’ individual seniority and work performance and provides corresponding seniority allowances and
performance bonuses thereby constructing a remuneration system that balances fairness and incentivization.For detailed content of the Company’s remuneration policy please refer to the “Talent Attraction and Retention” chapter of the
Company’s disclosed Avary Holding 2025 Sustainable Development Report.
3. Training Plan
The Company places great emphasis on the cultivation and development of key middle-level core talents. By bringing in senior expert
consultants the Company conducts in-depth interviews and comprehensive 360-degree functional assessments for core talents and
precisely formulates personalized job-matching plans and career development paths based on assessment results. For employees at
different ranks the Company has planned diversified learning programs and activities and constructed a tiered and categorized talent
cultivation system. In terms of building organizational key talent pipelines the Company has also invested substantial resources
covering multiple dimensions such as key position talent young cadre reserves and elite cadre class cultivation. The Company
particularly focuses on systematic enhancement of professional capabilities vigorously introducing cutting-edge technologies and
cultivating deep expertise in professional technical fields such as digital transformation data analytics intelligent manufacturing and
quality excellence thereby forming a solid and effective talent cultivation mechanism.In 2025 the average learning hours of the Company’s employees reached 92.5 hours and the total annual training expenditure exceeded
RMB 3447268.For detailed content of the Company’s talent training plan please refer to the “Talent Development and Empowerment” chapter of the
Company’s disclosed Avary Holding 2025 Sustainable Development Report.
4.Labor Outsourcing
□ Applicable □ Not Applicable
IX. Company Profit Distribution and Conversion of Capital Reserve into Share Capital
Profit distribution policy during the reporting period in particular the formulation implementation or adjustment of the cash dividend
policy
□ Applicable □ Not Applicable
To further strengthen the awareness of returning value to shareholders and provide shareholders with continuous stable and reasonable
investment returns Avary Holding (Shenzhen) Co. Ltd. in accordance with the Company Law of the People’s Republic of China
the Securities Law of the People’s Republic of China the CSRC’s Supervisory Guidelines for Listed Companies No. 3 — Cash
Dividends of Listed Companies and other relevant laws regulations normative documents and the relevant provisions of the Articles
of Association of Avary Holding (Shenzhen) Co. Ltd. has formulated the Company’s three-year (2025–2027) shareholder return plan
based on comprehensive consideration of various factors including the Company’s strategic development objectives business plans
profitability cash flow conditions and external financing environment.
69AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Avary Holding (Shenzhen) Co. Ltd. Three-Year (2025–2027) Shareholder Return Plan clearly stipulates the planning principles
for shareholder returns the specific content of the shareholder return plan (including profit distribution forms interval periods
conditions and proportions for cash dividends specific conditions for stock dividends etc.) the decision-making procedures and
mechanisms for profit distribution and the adjustment mechanisms for profit distribution policies.During the reporting period the Company implemented one profit distribution:
2024 Annual Profit Distribution: Based on the parent company’s distributable profit with the total share capital of 2318560816 shares
as of December 31 2024 after deducting the restricted shares proposed for repurchase and cancellation under the 2021 Restricted
Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan a cash dividend of RMB 10.00 per 10 shares (including tax) was
distributed to all shareholders with no bonus shares issued and no conversion of capital reserve into share capital.Cash Dividend Policy Special Explanation
Whether it complies with the provisions of the Articles of Association or the requirements of the shareholders’ meeting resolutions Yes
Whether the dividend standards and proportions are clear and well-defined Yes
Whether the relevant decision-making procedures and mechanisms are complete Yes
Whether the Independent Directors have fulfilled their duties and played their due role Yes
Where the Company has not made a cash dividend distribution the specific reasons shall be disclosed together with the measures Not Applicable
to be taken next to enhance the level of returns to investors
Whether minority shareholders have sufficient opportunities to express their opinions and demands and whether their legitimate Yes
rights and interests have been fully protected
Where the cash dividend policy has been adjusted or changed whether the conditions and procedures are compliant and Yes
transparent
The Company was profitable during the reporting period and the parent company’s profit available for distribution to shareholders was
positive but no cash dividend distribution proposal was made
□ Applicable □ Not Applicable
Profit Distribution and Conversion of Capital Reserve into Share Capital for the Current Reporting Period
□ Applicable □ Not Applicable
Number of bonus shares per 10 shares (shares) 0
Dividend per 10 shares (RMB) (including tax) 10
Share capital base for the distribution proposal (shares) 2317536658
Cash dividend amount (RMB) (including tax) 2317536658.00
Cash dividend amount through other means (e.g. share repurchase)
(RMB) 0.00
Total cash dividend (including other means) (RMB) 2317536658
Distributable profit (RMB) 17424872405.03
Proportion of total cash dividend (including other means) to total profit
distribution 100%
Current Cash Dividend Distribution
The Company is in a growth stage and has major capital expenditure arrangements; when making profit distributions the proportion of cash
dividends in the current profit distribution shall be at least 20%.Detailed Explanation of the Profit Distribution or Conversion of Capital Reserve into Share Capital Proposal
Based on the parent company’s distributable profit the Company proposes to distribute a cash dividend of RMB 10.00 per 10 shares (including tax)
to all shareholders based on the total share capital of 2318051016 shares as of December 31 2025 after deducting the restricted shares proposed
70AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
for repurchase and cancellation under the 2021 Restricted Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan with no bonus shares
issued and no conversion of capital reserve into share capital.X. Implementation of the Company’s Equity Incentive Plan Employee Stock Ownership Plan
or Other Employee Incentive Measures
□ Applicable □ Not Applicable
1. Equity Incentive
(I) 2021 Restricted Stock Incentive Plan
1. On April 20 2021 the Company convened the 2nd Board of Directors’ 11th meeting which reviewed and adopted the Proposal on
the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan (Draft) and Its Summary the Proposal on the Avary
Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan Implementation Assessment Management Measures and the
Proposal on Requesting the Shareholders’ General Meeting to Authorize the Board of Directors to Handle Matters Related to the
Equity Incentive. The Company’s Independent Directors issued independent opinions on the above matters and legal counsel issued
the corresponding legal opinion letter. On the same day the Company convened the 2nd Supervisory Board’s 5th meeting which
reviewed and adopted the Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan (Draft) and Its
Summary the Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan Implementation Assessment
Management Measures and the Proposal on Verifying the List of Incentive Targets under the Avary Holding (Shenzhen) Co. Ltd. 2021
Restricted Stock Incentive Plan.
2. The Company published the names and positions of the proposed incentive targets on its internal website with a public notice period
from April 21 2021 to April 30 2021. Upon expiration of the public notice period the Company’s Supervisory Board received no
objections and on May 7 2021 disclosed the Supervisory Board’s Explanation of the Public Notice Status and Verification Opinion
on the List of Incentive Targets under the Company’s 2021 Restricted Stock Incentive Plan (Announcement No.: 2021-030).
3. On May 12 2021 the Company convened the 2020 Annual Shareholders’ General Meeting which reviewed and adopted the
Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan (Draft) and Its Summary the Proposal on
the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan Implementation Assessment Management Measures and
the Proposal on Requesting the Shareholders’ General Meeting to Authorize the Board of Directors to Handle Matters Related to the
Equity Incentive. The Company’s 2021 Restricted Stock Incentive Plan was thereby approved. On the same day the Company disclosed
the Self-Check Report on the Trading of the Company’s Shares by Insider Information Knowers and Incentive Targets under the 2021
Restricted Stock Incentive Plan (Announcement No.: 2021-032).
4. Upon authorization by the Company’s Shareholders’ General Meeting on June 15 2021 the Company convened the 2nd Board of
Directors’ 13th meeting and the 2nd Supervisory Board’s 7th meeting respectively which reviewed and adopted the Proposal on
Adjusting Matters Related to the 2021 Restricted Stock Incentive Plan and the Proposal on Granting Restricted Shares to Incentive
Targets. The Board of Directors agreed to adjust the relevant matters of the 2021 Restricted Stock Incentive Plan as follows: Given
that 2 incentive targets no longer qualified as incentive targets due to resignation 11 incentive targets voluntarily waived subscription
of all restricted shares the Company intended to grant them for personal reasons and 3 incentive targets voluntarily waived subscription
of part of the restricted shares the Company intended to grant them for personal reasons the Company adjusted the proposed incentive
targets and the number of granted rights and interests under this incentive plan granting 10085000 restricted shares to 287 incentive
targets. Due to the implementation of the 2020 annual equity distribution the restricted share grant price was adjusted from RMB 16.94
per share to RMB 16.44 per share. Meanwhile the Board of Directors agreed that the grant date for the restricted shares under this plan
71AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
shall be June 15 2021. The Company’s Independent Directors issued independent opinions on the above matters and legal counsel
issued the corresponding legal opinion letter. From the grant date of the incentive plan to the registration date 1 incentive target
voluntarily waived subscription of 40000 restricted shares the Company intended to grant them for personal reasons; the Company’s
actual number of granted restricted shares was adjusted from 10085000 shares to 10045000 shares and the actual number of grantees
was adjusted from 287 to 286.
5. On March 16 2022 the Company convened the 2nd Board of Directors’ 17th meeting and the 2nd Supervisory Board’s 10th meeting
respectively which reviewed and adopted the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the
2021 Restricted Stock Incentive Plan. The Company decided to repurchase and cancel 320000 restricted shares that had been granted
to but not yet released from sales restrictions for 10 incentive targets who had resigned at a repurchase price of RMB 16.44 per share.The Company’s Supervisory Board expressed its approval the Independent Directors issued approving independent opinions and legal
counsel issued a legal opinion letter.
6. On April 18 2022 the Company convened the 2021 Annual Shareholders’ General Meeting which reviewed and adopted the
Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted Stock Incentive Plan approving
the repurchase and cancellation of 320000 restricted shares that had been granted to but not yet released from sales restrictions for 10
incentive targets who had resigned. On May 30 2022 the repurchase and cancellation of these partial A-share restricted shares was
completed.
7. On April 28 2022 the Company convened the 2nd Board of Directors’ 19th meeting and the 2nd Supervisory Board’s 11th meeting
respectively which reviewed and adopted the Proposal on the Fulfillment of Lifting-of-Sales-Restriction Conditions for the First
Lifting-of-Sales-Restriction Period under the Company’s 2021 Restricted Stock Incentive Plan agreeing that the Company shall in
accordance with the relevant provisions of the incentive plan handle the lifting of sales restrictions for the incentive targets who meet
the conditions. The Company’s Supervisory Board expressed its approval the Independent Directors issued approving independent
opinions and legal counsel issued a legal opinion letter. On July 11 2022 the restricted shares released from sales restrictions in the
first lifting-of-sales-restriction period under the 2021 Restricted Stock Incentive Plan became listed and tradable. A total of 274
incentive targets met the conditions for lifting sales restrictions and the number of restricted shares that could be released from sales
restrictions was 1931000 shares.
8. On March 28 2023 the Company convened the 2nd Board of Directors’ 25th meeting and the 2nd Supervisory Board’s 16th meeting
respectively which reviewed and adopted the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the
2021 Restricted Stock Incentive Plan. The Company decided to repurchase and cancel 718000 restricted shares that had been granted
to but not yet released from sales restrictions for 19 incentive targets who had resigned at a repurchase price of RMB 16.44 per share.The Company’s Supervisory Board expressed its approval the Independent Directors issued approving independent opinions and legal
counsel issued a legal opinion letter.
9. On April 25 2023 the Company convened the 2022 Annual Shareholders’ General Meeting which reviewed and adopted the
Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted Stock Incentive Plan approving
the repurchase and cancellation of 718000 restricted shares that had been granted to but not yet released from sales restrictions for 19
incentive targets who had resigned. On June 1 2023 the repurchase and cancellation of these partial A-share restricted shares was
completed.
10. On April 28 2023 the Company convened the 3rd Board of Directors’ 2nd meeting and the 3rd Supervisory Board’s 2nd meeting
respectively which reviewed and adopted the Proposal on the Fulfillment of Lifting-of-Sales-Restriction Conditions for the Second
Lifting-of-Sales-Restriction Period under the Company’s 2021 Restricted Stock Incentive Plan agreeing that the Company shall in
72AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
accordance with the relevant provisions of the incentive plan handle the lifting of sales restrictions for the incentive targets who meet
the conditions. The Company’s Supervisory Board expressed its approval the Independent Directors issued approving independent
opinions and legal counsel issued a legal opinion letter. On July 10 2023 the restricted shares released from sales restrictions in the
second lifting-of-sales-restriction period under the 2021 Restricted Stock Incentive Plan became listed and tradable. A total of 255
incentive targets met the conditions for lifting sales restrictions and the number of restricted shares that could be released from sales
restrictions was 1757000 shares.
11. On March 29 2024 the Company convened the 3rd Board of Directors’ 8th meeting and the 3rd Supervisory Board’s 6th meeting
respectively which reviewed and adopted the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the
2021 Restricted Stock Incentive Plan. The Company decided to repurchase and cancel: 150000 restricted shares that had been granted
to but not yet released from sales restrictions for 8 incentive targets who had resigned; 6000 restricted shares that had been granted to
but not yet released from sales restrictions for 1 incentive target who did not meet the lifting-of-sales-restriction conditions for the
second lifting-of-sales-restriction period; and 1721000 restricted shares corresponding to the third lifting-of-sales-restriction period
for 249 active incentive targets where the lifting-of-sales-restriction conditions were not met and therefore could not be released from
sales restrictions; totaling 1877000 restricted shares at a repurchase price of RMB 16.44 per share. The Company’s Supervisory
Board expressed its approval and legal counsel issued a legal opinion letter.
12. On April 24 2024 the Company convened the 2023 Annual Shareholders’ General Meeting which reviewed and adopted the
Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted Stock Incentive Plan approving
the repurchase and cancellation of: 150000 restricted shares that had been granted to but not yet released from sales restrictions for 8
incentive targets who had resigned; 6000 restricted shares that had been granted to but not yet released from sales restrictions for 1
incentive target who did not meet the lifting-of-sales-restriction conditions for the second lifting-of-sales-restriction period; and
1721000 restricted shares corresponding to the third lifting-of-sales-restriction period for 249 active incentive targets where the lifting-
of-sales-restriction conditions were not met and therefore could not be released from sales restrictions; totaling 1877000 restricted
shares. On June 3 2024 the repurchase and cancellation of these partial A-share restricted shares was completed.
13. On August 13 2024 the Company convened the 3rd Board of Directors’ 10th meeting and the 3rd Supervisory Board’s 8th meeting
respectively which reviewed and adopted the Proposal on Adjusting the 2024–2025 Performance Targets of the Company’s 2021
Restricted Stock Incentive Plan agreeing to the Company’s adjustment of the 2024–2025 performance targets of the 2021 restricted
stock incentive plan and the simultaneous adjustment of the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan
(Draft) and its summary and the Avary Holding (Shenzhen) Co. Ltd. 2021 Restricted Stock Incentive Plan Implementation Assessment
Management Measures. The Company’s Independent Directors’ Special Meeting unanimously adopted the above proposals and legal
counsel issued a legal opinion letter.
14. On September 9 2024 the Company convened the 2024 First Extraordinary Shareholders’ General Meeting which reviewed and
adopted the Proposal on Adjusting the 2024–2025 Performance Targets of the Company’s 2021 Restricted Stock Incentive Plan
agreeing to the Company’s adjustment of the 2024–2025 performance targets of the 2021 Restricted Stock Incentive Plan
15. On April 8 2025 the Company convened the 3rd Board of Directors’ 15th meeting and the 3rd Supervisory Board’s 11th meeting
which reviewed and adopted the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted
Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan. The Company decided to repurchase and cancel: 64000 restricted
shares that had been granted to but not yet released from sales restrictions for 6 incentive targets who had resigned; 10000 restricted
shares that had been granted to but not yet released from sales restrictions for 1 incentive target who did not meet the lifting-of-sales-
restriction conditions for the fourth lifting-of-sales-restriction period; and because the Company’s 2024 performance did not fully
achieve the Company-level performance assessment target conditions 335800 restricted shares corresponding to 20% of the shares
73AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
eligible for lifting of sales restrictions in the fourth lifting-of-sales-restriction period held by 242 active incentive targets; totaling
409800 restricted shares for repurchase and cancellation at a repurchase price of RMB 16.44 per share
16. On April 8 2025 the Company convened the 3rd Board of Directors’ 15th meeting and the 3rd Supervisory Board’s 11th meeting
which reviewed and adopted the Proposal on the Partial Fulfillment of Lifting-of-Sales-Restriction Conditions for the Fourth Lifting-
of-Sales-Restriction Period under the Company’s 2021 Restricted Stock Incentive Plan: Given that the lifting-of-sales-restriction
conditions for the fourth lifting-of-sales-restriction period under the Company’s 2021 Restricted Stock Incentive Plan have been
partially fulfilled the Company agreed to handle the lifting of sales restrictions for the incentive targets who meet the conditions in
accordance with the relevant provisions of the incentive plan. The Company’s Supervisory Board expressed its approval and legal
counsel issued a legal opinion letter. On July 10 2025 the restricted shares released from sales restrictions in the fourth lifting-of-
sales-restriction period under the 2021 Restricted Stock Incentive Plan became listed and tradable. A total of 241 incentive targets met
the conditions for lifting sales restrictions and the number of restricted shares that could be released from sales restrictions was
1336800 shares
17. On April 29 2025 the Company convened the 2024 Annual Shareholders’ Meeting which reviewed and adopted the Proposal on
the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted Stock Incentive Plan and the 2024 Restricted
Stock Incentive Plan approving the repurchase and cancellation of: 64000 restricted shares that had been granted to but not yet released
from sales restrictions for 6 incentive targets who had resigned; 10000 restricted shares that had been granted to but not yet released
from sales restrictions for 1 incentive target who did not meet the lifting-of-sales-restriction conditions for the fourth lifting-of-sales-
restriction period; and because the Company’s 2024 performance did not fully achieve the Company-level performance assessment
target conditions 335800 restricted shares corresponding to 20% of the shares eligible for lifting of sales restrictions in the fourth
lifting-of-sales-restriction period held by 242 active incentive targets; totaling 409800 restricted shares for repurchase and cancellation.On June 9 2025 the repurchase and cancellation of these partial A-share restricted shares was completed
(II) 2024 Restricted Stock Incentive Plan
1. On August 13 2024 the Company convened the 3rd Board of Directors’ 10th meeting which reviewed and adopted the Proposal
on the Avary Holding (Shenzhen) Co. Ltd. 2024 Restricted Stock Incentive Plan (Draft) and Its Summary the Proposal on the Avary
Holding (Shenzhen) Co. Ltd. 2024 Restricted Stock Incentive Plan Implementation Assessment Management Measures and the
Proposal on Requesting the Shareholders’ General Meeting to Authorize the Board of Directors to Handle Matters Related to the
Company’s 2024 Restricted Stock Incentive Plan. The Board of Directors’ Remuneration and Appraisal Committee unanimously
adopted the relevant proposals and legal counsel issued the corresponding legal opinion letter. On the same day the Company
convened the 3rd Supervisory Board’s 8th meeting which reviewed and adopted the Proposal on the Avary Holding (Shenzhen) Co.Ltd. 2024 Restricted Stock Incentive Plan (Draft) and Its Summary the Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2024
Restricted Stock Incentive Plan Implementation Assessment Management Measures" and the Proposal on Verifying the List of
Incentive Targets under the Avary Holding (Shenzhen) Co. Ltd. 2024 Restricted Stock Incentive Plan.
2. The Company published the names and positions of the proposed incentive targets on its internal website with a public notice period
from August 14 2024 to September 4 2024. Upon expiration of the public notice period the Company’s Supervisory Board received
no objections and on September 4 2024 disclosed the Avary Holding (Shenzhen) Co. Ltd. Supervisory Board’s Explanation of the
Public Notice Status and Verification Opinion on the List of Incentive Targets under the Company’s 2024 Restricted Stock Incentive
Plan (Announcement No.: 2024-053).
3. On September 9 2024 the Company convened the 2024 First Extraordinary Shareholders’ General Meeting which reviewed and
adopted the Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2024 Restricted Stock Incentive Plan (Draft) and Its Summary the
74AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Proposal on the Avary Holding (Shenzhen) Co. Ltd. 2024 Restricted Stock Incentive Plan Implementation Assessment Management
Measures and the Proposal on Requesting the Shareholders’ General Meeting to Authorize the Board of Directors to Handle Matters
Related to the Company’s 2024 Restricted Stock Incentive Plan. The Company’s 2024 Restricted Stock Incentive Plan was thereby
approved. On the same day the Company disclosed the Self-Check Report on the Trading of the Company’s Shares by Insider
Information Knowers and Incentive Targets under the 2024 Restricted Stock Incentive Plan (Announcement No.: 2024-056).
4. Upon authorization by the Company’s Shareholders’ General Meeting on September 13 2024 the Company convened the 3rd
Board of Directors’ 11th meeting and the 3rd Supervisory Board’s 9th meeting respectively which reviewed and adopted the Proposal
on Adjusting Matters Related to the 2024 Restricted Stock Incentive Plan and the Proposal on Granting Restricted Shares to Incentive
Targets. The Board of Directors agreed to adjust the relevant matters of the 2024 Restricted Stock Incentive Plan as follows: Given
that among the incentive targets proposed to be granted shares under this incentive plan 7 incentive targets voluntarily waived
subscription of all restricted shares the Company intended to grant them for personal reasons the Board of Directors redistributed and
adjusted the restricted share portions waived by the above employees for personal reasons among the remaining incentive targets. After
adjustment the number of incentive targets proposed to be granted restricted shares under this incentive plan changed from 388 to 381
and the total number of restricted shares proposed to be granted remained 9469900 shares. Meanwhile the Board of Directors agreed
that the grant date for the restricted shares under this plan shall be September 13 2024. The Board of Directors’ Remuneration and
Appraisal Committee unanimously adopted the above proposals and legal counsel issued the corresponding legal opinion letter. For
details please refer to Avary Holding’s Announcement on the Completion of Grant Registration for the 2024 Restricted Stock Incentive
Plan disclosed by the Company on October 16 2024 (Announcement No.: 2024-066). On October 15 2024 the grant registration for
the 2024 Restricted Stock Incentive Plan was completed.
5. On April 8 2025 the Company convened the 3rd Board of Directors’ 15th meeting and the 3rd Supervisory Board’s 11th meeting
which reviewed and adopted the Proposal on the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted
Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan. As of the current date 4 incentive targets under the Company’s
2024 Restricted Stock Incentive Plan have resigned for personal reasons and no longer qualify as incentive targets. In accordance with
the Company’s 2024 Restricted Stock Incentive Plan (Draft) the 2024 Restricted Stock Incentive Plan Implementation Assessment
Management Measures and relevant laws and regulations 100000 restricted shares that had been granted to but not yet released from
sales restrictions for the aforementioned 4 incentive targets will be repurchased and cancelled at a repurchase price of RMB 17.70 per
share.
6. On April 29 2025 the Company convened the 2024 Annual Shareholders’ Meeting which reviewed and adopted the Proposal on
the Repurchase and Cancellation of Certain Restricted Shares under the 2021 Restricted Stock Incentive Plan and the 2024 Restricted
Stock Incentive Plan approving the repurchase and cancellation of 100000 restricted shares that had been granted to but not yet
released from sales restrictions for 4 incentive targets who had resigned. On June 9 2025 the repurchase and cancellation of these
partial A-share restricted shares was completed.
7. On August 12 2025 the Company convened the 3rd Board of Directors’ 18th meeting which reviewed and adopted the Proposal
on the Partial Fulfillment of Lifting-of-Sales-Restriction Conditions for the First Lifting-of-Sales-Restriction Period under the
Company’s 2024 Restricted Stock Incentive Plan: Given that the lifting-of-sales-restriction conditions for the first lifting-of-sales-
restriction period under the Company’s 2024 Restricted Stock Incentive Plan have been partially fulfilled the Company agreed to
handle the lifting of sales restrictions for the incentive targets who meet the conditions in accordance with the relevant provisions of
the incentive plan. The Board of Directors’ Remuneration and Appraisal Committee expressed its approval and legal counsel issued a
legal opinion letter. On October 16 2025 the restricted shares released from sales restrictions in the first lifting-of-sales-restriction
period under the 2024 Restricted Stock Incentive Plan became listed and tradable. A total of 375 incentive targets met the conditions
for lifting sales restrictions and the number of restricted shares that could be released from sales restrictions was 2611412 shares.
75AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Equity Incentive for Directors and Senior Management
□ Applicable □ Not Applicable
Unit: Shares
Na Positi Stock Newly Exercis Exerci Exercise Stock Market Restric Shares Newly Grant Restric
me on Option Grante able sed Price of Optio Price at ted Unloc Grante Price of ted
s Held d Shares Shares Exercise ns End of Shares ked d Restricte Shares
at Stock during during d Shares Held Reportin Held at during Restric d Shares Held at
Beginn Option Reporti Report during at the g Period Beginn Curren ted (RMB/sh the
ing of s in ng ing Reportin End (RMB/sh ing of t Shares are) End of
Year Report Period Period g Period of are) Year Period in Year
ing (RMB/sh Year Report
Period are) ing
Period
Luo Deput 60000 24000 0 16.44 30000
Anz y
hi Gener
al
Mana
ger
Tot -- 0 0 0 0 -- 0 -- 60000 24000 0 -- 30000
al
Mr. Luo Anzhi Deputy General Manager held 60000 restricted shares under the Company’s 2021 Restricted Stock Incentive Plan
at the beginning of the period. As the performance targets for the current period were partially achieved 80% of the shares eligible
Notes (if any) for unlocking during the current period i.e. 24000 shares were unlocked; the remaining 20% of the shares eligible for unlocking
i.e. 6000 shares were repurchased and cancelled by the Company at the grant price of RMB 16.44 per share. As of the end of the
period he still held 30000 restricted shares under the equity incentive plan.Assessment and Incentive Mechanism for Senior Management
At the 2022 Annual Shareholders’ General Meeting convened on April 25 2023 the Company reviewed and adopted the Proposal on
the Performance-Based Remuneration Accrual Method for the Company’s Chairman Middle and Senior Management and Core
Technical Personnel. As the Company’s internationalization process continues to advance the Company should establish an
internationalized corporate governance system construct a professional manager incentive mechanism aligned with international
standards and link professional managers’ incentives to the Company’s operating performance. To fully motivate the professional
managers’ work enthusiasm enhance the sense of responsibility and cohesion of the Company’s professional manager team and core
technical personnel maintain the stability of Avary Holding’s core management team and core talent pool and promote the healthy
and sustainable development of the enterprise the Company has aligned the interests of the professional manager team represented by
the Chairman and core technical personnel with the interests of the enterprise and determined the following performance-based
remuneration accrual scheme: (1) After the end of each fiscal year the Company shall accrue performance bonuses for middle and
senior management and core technical personnel at 5%–12% of the current year’s profit (the above profit refers to the profit amount
before accrual of performance bonuses). The total annual performance bonus amount shall be confirmed by the Chairman upon
authorization by the Company’s Board of Directors and shall be implemented after being reviewed and adopted by the Company’s
Board of Directors’ Remuneration and Appraisal Committee. (2) The Chairman’s remuneration shall be accrued at 0.5% of the prior
year’s pre-tax net profit. (3) The performance and remuneration of the Company’s middle and senior management and technical
personnel shall be determined based on the performance assessment results of the relevant personnel for the current year.Based on the above proposal on April 7 2025 the Company convened the 3rd Remuneration and Appraisal Committee’s 5th meeting
which reviewed and adopted the Proposal on Accruing 2024 Performance-Based Remuneration. For 2024 the Company accrued
76AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
performance bonuses for middle and senior management and core personnel at 8% of the current year’s profit (the above profit refers
to the profit amount before accrual of performance bonuses).
2. Implementation of Employee Stock Ownership Plan
□ Applicable □ Not Applicable
3. Other Employee Incentive Measures
□ Applicable □ Not Applicable
XI. Internal Control System Construction and Implementation during the Reporting Period
1. Internal Control Construction and Implementation
In accordance with the Basic Standard for Internal Control its accompanying guidelines and other internal control regulatory
requirements and in combination with the Company’s actual circumstances the Company has established a sound internal control
system that has been effectively implemented encompassing shareholders’ meeting rules of procedure board of directors’ rules of
procedure board specialized committee rules of procedure supervision and management of subsidiaries seal management raised
funds management sales and collection procurement and payment inventory management fixed asset management fund management
investment and financing management human resource management information system management and information disclosure
management covering all business processes related to financial reporting and information disclosure in the Company’s business
activities.The Board of Directors has established an Audit Committee which is responsible for supervising and evaluating the work of the
internal audit department reviewing the annual internal control self-evaluation report and related materials issued by the Company’s
internal audit department and submitting them to the Board of Directors for deliberation.Based on the identification of material weaknesses in the Company’s internal control over financial reporting as of the base date of
the Internal Control Evaluation Report there were no material weaknesses in internal control over financial reporting. The Company
has maintained effective internal control over financial reporting in all material aspects in accordance with the requirements of the
enterprise internal control standards system and relevant regulations; based on the identification of material weaknesses in the
Company’s internal control over non-financial reporting as of the base date of the Internal Control Evaluation Report no material
weaknesses in internal control over non-financial reporting were identified.
2.Specific Circumstances of Material Weaknesses in Internal Control Identified during the Reporting Period
□ Yes □ No
XII. Management and Control of Subsidiaries during the Reporting Period
Company Integration Plan Integration Progress Problems Solutions Resolution Follow-up
Name Encountered Adopted Progress Resolution
in Plan
Integration
Wuxi The Company carried out integration and The board of directors of None None None None
77AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Huayang unified management and control of Wuxi Wuxi Huayang has been
Science and Huayang making decisions on Wuxi reorganized and the
Technology Huayang’s operations and management by management team
Co. Ltd. controlling its board of directors. While members confirmed; the
maintaining Wuxi Huayang’s operations listed company and
based on its existing business model and Wuxi Huayang have
flexible operations the Company ensured achieved integrated
that Wuxi Huayang continuously operations and
complied with the internal management management.system requirements of the listed
company including internal control
information disclosure connected
transactions fund management budget
management and audit systems. The
listed company and Wuxi Huayang
completed the integration of the
management team; Wuxi Huayang’s core
personnel continued to stay and remained
stable and the workforce did not undergo
significant changes.As of the end of the reporting period the Company had 17 subsidiaries. The Company has formulated the Subsidiary Management
Measures which regulate the standardized operations personnel management financial management business decision-making
management and information management of subsidiaries at the institutional level. As an investor the Company exercises supervision
and management over major matters of subsidiaries in the capacity of a shareholder or controlling person lawfully enjoys the rights to
investment returns selection of managers and equity disposal as major decision-making matters for invested enterprises and bears the
obligation to provide guidance supervision and relevant assistance services to subsidiaries. In terms of personnel management the
Company lawfully exercises shareholder rights and in accordance with the provisions of the subsidiary’s articles of association elects
or appoints directors supervisors and senior management personnel. In terms of financial management subsidiaries and the Company
implement a unified accounting system; subsidiaries accept the business guidance and supervision of the Company’s finance
department and may not lend funds externally (including entrusted loans) or provide external guarantees without the Company’s
consent. In terms of business decision-making management the subsidiary’s operations and development plans must comply with and
serve the Company’s development strategy and overall planning and within the framework of the Company’s development planning
the subsidiary shall refine and improve its own plans; if a subsidiary engages in external investment activities it must report to the
Company in accordance with the relevant provisions of the Company’s External Investment Management System and such activities
shall be approved by the Shareholders’ General Meeting the Board of Directors or the Chief Executive Officer within their respective
scopes of authority. In terms of information management the head of the subsidiary is the first responsible person for the management
and reporting of information disclosure affairs and shall promptly report major matters of the subsidiary to the Secretary to the Board
of Directors and the Office of the Secretary to the Board of Directors in accordance with the provisions of the Company’s Major
Information Internal Reporting System. In addition the Company periodically or from time to time implements audit supervision over
subsidiaries to ensure that subsidiaries operate in compliance with the Company’s various regulations.Whether there are abnormalities in the management and control of subsidiaries
□ Yes □ No
78AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XIII. Internal Control Evaluation Report or Internal Control Audit Report
1.Internal Control Evaluation Report
Full Disclosure Date of the Internal Control
March 31 2026
Evaluation Report
Full Disclosure Index of the Internal Control
CNINFOhttp://www.cninfo.com.cn
Evaluation Report
Proportion of Total Assets of Entities Included
in the Evaluation Scope to the Company’s 99.22%
Consolidated Financial Statement Total Assets
Proportion of Operating Revenue of Entities
Included in the Evaluation Scope to the
99.84%
Company’s Consolidated Financial Statement
Operating Revenue
Deficiency Identification Standards
Category Financial Reporting Non-Financial Reporting
Qualitative Standards Material Weakness: (1) Fraud by the
Company’s directors supervisors or senior
management personnel; (2) Correction of Material Weakness: (1) Serious violations of
previously published financial reports by the national laws and regulations; (2) Unscientific
Company; (3) Material misstatements in the decision-making procedures leading to major
current period’s financial report discovered by errors; (3) Lack of institutional control over
the certified public accountant but not important business activities or systematic
identified by the Company’s internal control; failure of such systems; (4) Large-scale
(4) The Audit Committee and the audit departure of key management personnel or
department’s supervision over the Company’s important talents; (5) Frequent negative media
internal control is ineffective. coverage.Significant Deficiency: (1) Ineffective control Significant Deficiency: (1) The Company
environment; (2) Failure to select and apply suffers significant property losses due to
accounting policies in accordance with management errors and control activities fail
generally accepted accounting standards; (3) to prevent such errors; (2) Although property
Failure to establish anti-fraud procedures and losses do not reach or exceed the materiality
control measures; (4) Failure to establish threshold the nature of the situation still
corresponding control mechanisms or warrants attention from the Board of Directors
implement them for the accounting treatment and management.of unusual or special transactions with no
General Deficiency: Other control deficiencies
corresponding compensating controls.beyond the above material weaknesses and
General Deficiency: Other control deficiencies significant deficiencies.beyond the above material weaknesses and
significant deficiencies.Quantitative Standards Material Weakness: Misstatements that have Material Weakness: Potential direct property
occurred or are estimated (likely) to occur due losses ≥ 1% of operating revenue (inclusive)
to internal control deficiencies ≥ 1% of or penalties from national-level government
operating revenue. departments causing significant negative
Significant Deficiency: 0.5% of operating impact on the Company.revenue ≤ misstatements that have occurred or Significant Deficiency: 0.5% of operating
are estimated (likely) to occur due to internal revenue ≤ potential direct property losses < 1%
control deficiencies < 1% of operating revenue. of operating revenue or penalties from
General Deficiency: Misstatements that have provincial-level government departments
occurred or are estimated (likely) to occur due causing negative impact on the Company.
79AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
to internal control deficiencies < 0.5% of
General Deficiency: Potential direct property
operating revenue.losses < 0.5% of operating revenue or
penalties from municipal-level government
departments causing negative impact on the
Company.Number of material weaknesses in internal
0
control over financial reporting
Number of material weaknesses in internal
0
control over non-financial reporting
Number of significant deficiencies in internal
0
control over financial reporting
Number of significant deficiencies in internal
0
control over non-financial reporting
2. Internal Control Audit Report
□ Applicable □ Not Applicable
Opinion Section of the Internal Control Audit Report
PricewaterhouseCoopers Zhong Tian LLP believes that: Avary Holding maintained effective internal control over financial reporting in all material
aspects as of December 31 2025 in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations.Internal Control Audit Report Disclosure Status Disclosed
Full Disclosure Date of the Internal Control Audit Report March 31 2026
Full Disclosure Index of the Internal Control Audit Report CNINFO http://www.cninfo.com.cn
Opinion Type of the Internal Control Audit Report Standard Unqualified Opinion
Whether there are material weaknesses in non-financial reporting No
Whether the accounting firm issued a non-standard opinion Internal Control Audit Report
□ Yes □ No
Whether the opinion in the Internal Control Audit Report issued by the accounting firm is consistent with the Board of Directors’ self-
evaluation report
□ Yes □ No
Whether a non-standard audit opinion on internal control was issued for the reporting period or the prior year
□ Yes □ No
XIV. Self-Inspection and Rectification of Issues under the Listed Company Governance Special
Action
In 2021 in accordance with the requirements of the China Securities Regulatory Commission (CSRC) the Company conducted a self-
inspection of its corporate governance from the time of listing through 2020. The self-inspection results showed that there was one
issue requiring rectification in the Company’s governance namely that a director was absent from the Company’s 2019 Annual
Shareholders’ General Meeting.In response to this issue the Company internally formulated the Shareholders’ Meeting Work Manual stipulating that when issuing
shareholders’ meeting notices as well as three days before and one day before the shareholders’ meeting all directors and senior
management personnel must be reminded via email or mobile phone to attend or be present at the shareholders’ meeting ensuring that
directors and senior management personnel attend the shareholders’ meeting on time. At the same time to facilitate directors and senior
80AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
management personnel’s attendance at shareholders’ meetings the Company has established dedicated video conference accounts for
directors and senior management personnel providing technical support for their video participation.Since the self-inspection and rectification all of the Company’s directors have attended the Company’s shareholders’ meetings on time
with no absences.XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises subject to statutory environmental
information disclosure
□ Yes □ No
Number of enterprises included in the list of enterprises subject to
4
statutory environmental information disclosure
No. Enterprise Name Query Index for Statutory Environmental Information Disclosure Report
Avary Holding (Shenzhen) Co. Ltd. Guangdong Provincial Department of Ecology and Environment Enterprise
Information Statutory Disclosure System
(https://gdee.gd.gov.cn/gdeepub/front/dal/ent/list/detailentId=381bf165-
0fcd-4ab8-a6d2-67595acbc673)
Qingding Precision Electronics (Huaian) Co. Jiangsu Provincial Department of Ecology and Environment Enterprise
Ltd. Environmental Information Statutory Disclosure System
2 (http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.htmlviewId=./sps/views/yfpl/views/yfplHomeNe
w/index.js)
Hong Heng Sheng Electronical Technology Jiangsu Provincial Department of Ecology and Environment Enterprise
(Huaian) Co. Ltd. Environmental Information Statutory Disclosure System
3 (http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-
webapp/web/viewRunner.htmlviewId=./sps/views/yfpl/views/yfplHomeNe
w/index.js)
Hongqisheng Precision Electronics Hebei Provincial Department of Ecology and Environment Enterprise
(Qinhuangdao) Co. Ltd. Environmental Information Statutory Disclosure System
4
(http://121.29.48.71:8080/#/fill/detailenpId=B77414D9-2E33-41BA-9855-
22E524656A6F&year=2024)
XVI. Social ResponsibilityAvary Holding takes “Developing technology benefiting humanity; Advancing environmental protection making the Earth a betterplace” as its development mission and “Integrity Responsibility Innovation Excellence and Benefiting Others” as its core values for
corporate development. Over the years while the company has been developing rapidly it has also attached great importance to
fulfilling its corporate social responsibility.Mr. Charles Shen Chairman of the Company takes “Never do things that keep you awake at night” as his basic principle for personal
conduct and business and has deeply embedded this philosophy into the DNA of the Company’s development. While achieving
standardized corporate governance he also attaches great importance to protecting the rights and interests of shareholders and creditors
employee rights and the interests of strategic partners. Meanwhile the Company regards environmental protection and sustainable
development as the cornerstone of its perpetual operations and actively participates in social welfare. For specific details on the
Company’s fulfillment of social responsibility please refer to the Avary Holding (Shenzhen) Co. Ltd. 2025 Sustainable Development
Report disclosed on CNINFO.
81AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XVII. Consolidating and Expanding Poverty Alleviation Achievements and Rural
Revitalization
In 2025 with a strong sense of social responsibility and mission the Company continued to pay close attention to and actively
participate in various efforts related to poverty alleviation and rural revitalization. The following are the major contributions and efforts
made in this area:
Poverty Alleviation Donation Projects:
The Company donated RMB 0.1 million to Yong’an Town Du’an County Guangxi for improving local road infrastructure
construction.Education Support Projects:
The Company donated books to three schools in Songkou Town Meixian District Meizhou City — Songkou Central Primary School
Songnan Central Primary School and Songnan Middle School with an amount of approximately RMB 0.105 million;
The Company continued to pay attention to the education of university students in poverty-stricken areas helping them successfully
complete their studies and realize their life dreams through the establishment of financial aid and scholarships. In 2025 the Company
continued its educational assistance visits to impoverished students in Ziyang Shaanxi and Daliangshan Sichuan raising a total of
RMB 0.8387 million;
Agricultural Benefit Projects:
The company purchased over 70000 Meizhou golden pomelos demonstrating its commitment to the concept of assisting and benefiting
farmers through concrete actions effectively solving local fruit farmers’ sales difficulties tangibly driving farmers’ income growth
and solidly safeguarding farmers’ livelihood security.For detailed content of the Company’s efforts in consolidating and expanding poverty alleviation achievements and promoting rural
revitalization please refer to the “Rural Revitalization Initiatives” chapter of the Company’s disclosed Avary Holding 2025 Sustainable
Development Report.
82AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section Ⅴ Important Matters
I. Status of Fulfillment of Commitments
1. Commitments fulfilled during the reporting period and commitments not yet fulfilled as of the end of the
reporting period by the Company’s actual controller shareholders related parties acquirers and the
Company itself as commitment-related partie.□ Applicable □ Not Applicable
Commitment Commitment Party Commitment Type Commitment Content Commitment Commitment Fulfillment
Origin Date Period Status
September Long-term Being
Company Share Reduction During my tenure as a
18 2018 Effective Fulfilled as
Directors: Charles Commitment Director or Senior Scheduled
Shen You Zhehong Management of the
Huang Chongxing; Company I will promptly
Company Senior report my holdings of the
Management: Lin Company’s shares and any
Yihong Xiao changes thereto in
Dewang Zhou accordance with the relevant
Hong regulations of the Shenzhen
Stock Exchange and the
number of Company shares I
transfer each year shall not
exceed 25% of the total
number of shares I directly
or indirectly hold in the
Company. Within six
months after my departure I
shall not transfer any shares
Commitments I directly or indirectly hold
made during in the Company; within the
the Initial twelve-month period after
Public Offering six months from the
or Refinancing declaration of departure the
proportion of Company
shares sold through the stock
exchange’s listed trading
shall not exceed 50% of the
total number of shares I hold
in the Company. 2. If I
reduce my holdings of the
Company’s shares through
centralized competitive
trading I shall fulfill the
relevant procedures
including reporting and
filing the share reduction
plan with the exchange and
making public
announcements at least 15
trading days prior to the first
sale of shares. 3. In addition
to the foregoing
83AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
commitments I commit that
my share reduction activities
will strictly comply with the
provisions of the Company
Law the Securities Law the
Several Provisions on the
Reduction of Shares by
Shareholders Directors
Supervisors and Senior
Management of Listed
Companies the Shenzhen
Stock Exchange Stock
Listing Rules the Shenzhen
Stock Exchange
Implementation Rules for
the Reduction of Shares by
Shareholders and Directors
Supervisors and Senior
Management of Listed
Companies and other
relevant laws regulations
and normative documents. 4.If relevant laws regulations
departmental rules
normative documents or
regulatory requirements of
the China Securities
Regulatory Commission and
its agencies / stock
exchanges (hereinafter
collectively referred to as
“Regulatory Requirements”)
no longer require the content
of a particular commitment
the corresponding portion
shall terminate
automatically. If Regulatory
Requirements introduce new
provisions regarding the
lock-up or reduction of
shares of listed companies I
shall comply with the latest
applicable rules when
locking up or reducing my
holdings of the Company’s
shares.September Long-term
Company Share Reduction During my tenure as a
18 2018 Effective
Supervisors: Ke Commitment Supervisor of the Company
Chengen Miao I will promptly report my
The company
Chunna holdings of the Company’s
abolished the
shares and any changes
Supervisory
thereto in accordance with
Board;
the relevant regulations of
commitment
the Shenzhen Stock
fulfilled
Exchange and the number
of Company shares I transfer
each year shall not exceed
84AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
25% of the total number of
shares I directly or indirectly
hold in the Company. Within
six months after my
departure I shall not transfer
any shares I directly or
indirectly hold in the
Company; within the
twelve-month period after
six months from the
declaration of departure the
proportion of Company
shares sold through the stock
exchange’s listed trading
shall not exceed 50% of the
total number of shares I hold
in the Company. 2. If I
reduce my holdings of the
Company’s shares through
centralized competitive
trading I shall fulfill the
relevant procedures
including reporting and
filing the share reduction
plan with the exchange and
making public
announcements at least 15
trading days prior to the first
sale of shares. 3. In addition
to the foregoing
commitments I commit that
my share reduction activities
will strictly comply with the
provisions of the Company
Law the Securities Law the
Several Provisions on the
Reduction of Shares by
Shareholders Directors
Supervisors and Senior
Management of Listed
Companies the Shenzhen
Stock Exchange Stock
Listing Rules the Shenzhen
Stock Exchange
Implementation Rules for
the Reduction of Shares by
Shareholders and Directors
Supervisors and Senior
Management of Listed
Companies and other
relevant laws regulations
and normative documents. 4.If relevant laws regulations
departmental rules
normative documents or
regulatory requirements of
the China Securities
Regulatory Commission and
85AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
its agencies / stock
exchanges (hereinafter
collectively referred to as
“Regulatory Requirements”)
no longer require the content
of a particular commitment
the corresponding portion
shall terminate
automatically. If Regulatory
Requirements introduce new
provisions regarding the
lock-up or reduction of
shares of listed companies I
shall comply with the latest
applicable rules when
locking up or reducing my
holdings of the Company’s
shares.September Long-term Being
Pacific Fair Share Reduction (I) Our enterprise and our
18 2018 Effective Fulfilled as
International Commitment concerted action parties Scheduled
Limited Mayco commit to comply with the
Industrial Co. following rules when
Limited reducing holdings of the
Company’s shares (except
for reducing shares acquired
through centralized
competitive trading by our
enterprise and our concerted
action parties): 1. When our
enterprise and our concerted
action parties reduce
holdings of the Company’s
shares through centralized
competitive trading we shall
fulfill the relevant
procedures including
reporting and filing the share
reduction plan with the
exchange and making public
announcements at least 15
trading days prior to the first
sale of shares and ensure
that the total number of
shares reduced by our
enterprise and our concerted
action parties calculated on
an aggregate basis within
any consecutive 90-day
period shall not exceed 1%
of the Company’s total
shares at the time; 2. When
our enterprise and our
concerted action parties
reduce holdings of the
Company’s shares through
block trading the total
number of shares reduced by
86AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
our enterprise and our
concerted action parties
calculated on an aggregate
basis within any
consecutive 90-day period
shall not exceed 2% of the
Company’s total shares at
the time; 3. When our
enterprise and our concerted
action parties reduce
holdings of the Company’s
shares through transfer by
agreement we shall ensure
that the proportion accepted
by a single transferee shall
be no less than 5% of the
Company’s total shares; 4.If after our enterprise and
our concerted action parties
reduce holdings through
transfer by agreement the
aggregate shareholding ratio
of our enterprise and our
concerted action parties falls
below 5% then our
enterprise and our concerted
action parties shall jointly
continue to comply with the
relevant commitments set
forth in Item 1 above for a
period of 6 months
following such reduction.(II) If relevant laws
regulations departmental
rules normative documents
or regulatory requirements
of the China Securities
Regulatory Commission and
its agencies / stock
exchanges (hereinafter
collectively referred to as
“Regulatory Requirements”)
no longer require the content
of a particular commitment
the corresponding portion
shall terminate
automatically. If Regulatory
Requirements introduce new
provisions regarding the
lock-up or reduction of
shares of listed companies
our enterprise and our
concerted action parties
shall comply with the latest
applicable rules when
locking up or reducing
holdings of the Company’s
shares. (III) Our enterprise
87AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
and our concerted action
parties shall bear the legal
liability arising from any
breach of this commitment
letter. If any party’s breach
of this commitment letter
causes another party to bear
legal liability the breaching
party shall compensate the
complying party for its
losses.Zhen Ding Commitments Commitment to Avoid
Technology regarding Horizontal Competition: 1.Holding Limited Horizontal As of the date of issuance of
Pacific Fair Competition this commitment letter our
International Connected Company and the
Limited Mayco Transactions and enterprises directly or
Industrial Co. Fund indirectly controlled by our
Limited Appropriation Company have not within
or outside the territory of
China directly or indirectly
engaged in any business that
constitutes horizontal
competition or potential
horizontal competition with
Avary Holding and its
subordinate enterprises; 2.Our Company and the
enterprises directly or
indirectly controlled by our
Company will not in any During the
form directly or indirectly period as the
engage in any business or Company’s
Being
activity that constitutes October 25 Controlling
Fulfilled as
horizontal competition or 2017 Shareholder /
Scheduled
potential horizontal Indirect
competition with the Controlling
business operated by Avary Shareholder
Holding and its subordinate
enterprises and will not
directly or indirectly control
acquire or merge with any
enterprise or other economic
organization whose business
constitutes competition or
may constitute competition
with the business operated
by Avary Holding and its
subordinate enterprises; 3. If
our Company and the
enterprises directly or
indirectly controlled by our
Company have any
commercial opportunity to
participate in or invest in any
business that may constitute
competition or may
88AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
potentially constitute
competition with the
business operated by Avary
Holding and its subordinate
enterprises our Company
shall within the scope
permitted by the relevant
laws and regulations to
which it is bound
immediately notify Avary
Holding and provide such
commercial opportunity to
Avary Holding and its
subordinate enterprises in an
appropriate manner on a
preferential basis enabling
Avary Holding and its
subordinate enterprises to
acquire the assets or equity
involved in such business on
a preferential basis under the
same conditions in order to
avoid horizontal competition
with Avary Holding and its
subordinate enterprises.Long-term Being
Zhen Ding Commitments Commitment to Avoid
Effective Fulfilled as
Technology regarding Connected Transactions: 1. Scheduled
Holding Limited Horizontal Provided that no adverse
Pacific Fair Competition effect is caused to the
International Connected interests of the Company
Limited Mayco Transactions and and other shareholders our
Industrial Co. Fund Company and the companies
Limited Appropriation directly or indirectly
controlled by our Company
(hereinafter referred to as“our Company andConnected Companies”)
will take measures to
regulate and minimize the
occurrence of connected
transactions with the October 25
Company; 2. For connected 2017
transactions within the
normal scope of business or
where there are other
reasonable reasons that
make such transactions
unavoidable our Company
and Connected Companies
will in accordance with
relevant laws regulations
normative documents and
the Company’s Articles of
Association follow the
approval procedures with
the Company and ensure
that all such connected
89AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
transactions are
implemented based on the
principle of fair pricing; 3.Our Company and
Connected Companies will
strictly comply with relevant
provisions to fulfill the
obligations of necessary
abstention from voting by
connected parties perform
the statutory approval
procedures for connected
transactions and fulfill
information disclosure
obligations; 4. We shall not
use connected transactions
to illegally transfer the
Company’s funds or profits
and shall not use connected
transactions to harm the
interests of the Company
and other shareholders; 5.Our Company is willing to
bear the corresponding
liability for compensation
arising from any breach of
the above commitments.Long-term Being
Pacific Fair Commitments Commitment to Avoid Fund
Effective Fulfilled as
International regarding Appropriation: 1. During the Scheduled
Limited Mayco Horizontal period when our Company
Industrial Co. Competition serves as the Company’s
Limited Zhen Ding Connected Indirect Controlling
Technology Transactions and Shareholder / Controlling
Holding Limited Fund Shareholder / Connected
Appropriation Party of the Controlling
Shareholder there shall be
no non-operating
appropriation of the
Company’s funds or assets
by our Company or other
enterprises controlled by our
Company; 2. In the October 25
operating fund transactions 2017
between our Company and
other enterprises controlled
by our Company and the
Company the appropriation
of the Company’s funds and
assets shall be strictly
restricted in accordance with
relevant laws and
regulations and the approval
procedures shall be strictly
performed in accordance
with the Company’s Articles
of Association and the
Connected Transactions
90AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Management System; 3. Our
Company and other
enterprises controlled by our
Company shall not abuse the
rights of the Controlling
Shareholder to encroach
upon the Company’s funds
or assets; 4. Our Company
agrees to bear the
corresponding liability for
compensation arising from
any breach of the above
commitments.Long-term Being
Avary Holding IPO Stock Price When the closing prices of
Effective Fulfilled as
(Shenzhen) Co. Stabilization the Company’s shares are Scheduled
Ltd. (the Commitment lower than the most recently
“Company”) Zhen audited net asset value per
Ding Technology share for 20 consecutive
Holding Limited trading days and the
Pacific Fair regulatory authorities’
International requirements for behaviors
Limited Mayco such as increasing holdings
Industrial Co. or repurchasing the
Limited; Company Company’s shares are
Directors: Charles simultaneously satisfied the
Shen You Zhehong Company the Company’s
Huang Chongxing; Controlling Shareholder
Company Senior Directors and Senior
September
Management: Lin Management shall take
182018
Yihong Xiao stock price stabilization
Dewang Zhou measures in the following
Hong Zhong order: (1) the Company
Jiahong Gao repurchasing shares; (2) the
Guoqian Chen Controlling Shareholder
Guosheng Yang increasing holdings of the
Weizhen Luo Company’s shares; (3)
Anzhi Directors (excluding
Independent Directors) and
Senior Management
increasing holdings of the
Company’s shares and shall
fulfill the corresponding
information disclosure
obligations.Long-term Being
Zhen Ding Commitment that If due to any
Effective Fulfilled as
Technology the Prospectus misrepresentation Scheduled
Holding Limited Contains No misleading statements or
Pacific Fair Misrepresentation material omission in the
International Misleading prospectus for Avary
Limited Mayco Statements or Holding’s initial public
September
Industrial Co. Material Omission offering and listing
182018
Limited investors suffer losses in
securities transactions Zhen
Ding Holding Mayco
Industrial and Pacific Fair
International shall after the
China Securities Regulatory
91AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Commission (hereinafter
referred to as “CSRC”) and
other competent authorities
make a final determination
regarding the relevant illegal
facts compensate investors
for their losses in accordance
with the law; 2. If due to any
misrepresentation
misleading statements or
material omission in the
prospectus for Avary
Holding’s initial public
offering and listing a
material and substantive
impact is caused on the
determination of whether
Avary Holding meets the
legal requirements for
issuance conditions Mayco
Industrial and Pacific Fair
International shall within 20
trading days after the CSRC
and other competent
authorities make a final
determination regarding the
relevant illegal facts
formulate a share repurchase
plan to repurchase the
originally restricted shares
publicly offered by our
Company at the time of
Avary Holding’s initial
public offering (if any) with
the repurchase price
determined based on the
issue price (adjusted
accordingly if Avary
Holding’s shares undergo
ex-dividend or ex-rights
events such as dividend
distribution bonus share
issuance or conversion of
capital reserve into share
capital during this period)
plus interest on bank
deposits for the
corresponding period and
such repurchase shall be
implemented in accordance
with the procedures
stipulated by relevant laws
regulations and the
Company’s Articles of
Association. In
implementing the foregoing
share repurchase if other
provisions exist in laws
92AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
regulations and the
Company’s Articles of
Association such provisions
shall prevail. Avary
Holding’s Indirect
Controlling Shareholder
Zhen Ding Holding shall
urge and assist Mayco
Industrial and Pacific Fair
International in fulfilling the
foregoing repurchase
obligations.Long-term Being
Company Commitment that
Effective Fulfilled as
Directors: Charles the Prospectus Scheduled
Shen You Zhehong Contains No
Guo Mingjian Misrepresentation
(resigned) Huang Misleading If due to any
Kuangjie Statements or misrepresentation
(resigned) Xu Material Omission misleading statements or
Renshou (resigned) material omission in the
Huang Chongxing prospectus for Avary
Zhang Bo Holding’s initial public
(resigned); offering and listing
Company investors suffer losses in
Supervisors: Ke securities transactions I September
Chengen Zang shall after the China 18 2018
Xiuqing (resigned) Securities Regulatory
Miao Chunna; Commission and other
Company Senior competent authorities make
Management: a final determination
Charles Shen Chen regarding the relevant illegal
Zhangyao facts compensate investors
(resigned) Lin for their losses in accordance
Yihong Fan with the law.Zhenkun
(resigned) Xiao
Dewang Zhou
Hong
Long-term Being
Avary Holding Restrictive If Avary Holding fails to
Effective Fulfilled as
(Shenzhen) Co. Measures for fulfill its public Scheduled
Ltd. (the Failure to Fulfill commitments (except where
“Company”) Zhen Commitments such failure is caused by
Ding Technology objective reasons beyond
Holding Limited Avary Holding’s control
Pacific Fair such as changes in relevant
International laws and regulations policy
Limited Mayco changes natural disasters
September
Industrial Co. and other force majeure
182018
Limited; Company events) Avary Holding
Directors: Charles shall within 2 trading days
Shen You Zhehong after the fact of failure to
Huang Chongxing; fulfill the commitment is
Ke Chengen Miao confirmed announce the
Chunna; Company relevant situation publicly
Senior explain the specific reasons
Management: Lin for the failure to fulfill the
Yihong Xiao commitment on the
93AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Dewang Zhou newspapers designated by
Hong Zhong the China Securities
Jiahong Gao Regulatory Commission
Guoqian Yang apologize to investors and
Weizhen Chen promptly study a treatment
Guosheng plan to minimize the losses
to investors’ interests so as
to protect the interests of the
Company’s investors as
much as possible; 2. If Zhen
Ding Holding Mayco
Industrial or Pacific Fair
International fails to fulfill
its public commitments
(except where such failure is
caused by objective reasons
beyond our Company’s
control such as changes in
relevant laws and
regulations policy changes
natural disasters and other
force majeure events) the
Company shall within 2
trading days after the fact of
failure to fulfill the
commitment is confirmed
announce the relevant
situation and Mayco
Industrial and Pacific Fair
International shall publicly
explain the specific reasons
for the failure to fulfill the
commitment on the
newspapers designated by
the China Securities
Regulatory Commission and
apologize to investors; in the
year when the fact is
determined and the
Company distributes
dividends to shareholders if
the commitment has still not
been fulfilled Mayco
Industrial and Pacific Fair
International voluntarily
entrust the dividends they
receive to the Company for
custody as a guarantee for
fulfilling the commitment; if
the dividends for the current
year have already been
distributed Mayco
Industrial and Pacific Fair
International voluntarily
entrust the dividends they
receive in the following year
to the Company for custody
as a guarantee for fulfilling
94AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
the commitment. Zhen Ding
Holding shall urge Mayco
Industrial and Pacific Fair
International to fulfill the
above commitments; 3. If
the Company’s Directors
Supervisors and Senior
Management fail to fulfill
their public commitments
(except where such failure is
caused by objective reasons
beyond the control of the
Company’s Directors
Supervisors and Senior
Management such as
changes in relevant laws and
regulations policy changes
natural disasters and other
force majeure events) prior
to the fulfillment of the
commitments the Company
shall not include them as
equity incentive targets;
depending on the severity of
the circumstances the
Company may impose
punitive measures on the
Directors Supervisors and
Senior Management who
fail to fulfill their public
commitments including
deduction of performance-
based remuneration salary
reduction and demotion; 4.The Company shall disclose
in its periodic reports the
fulfillment status of the
public commitments of the
Company Zhen Ding
Holding Mayco Industrial
Pacific Fair International
Directors Supervisors and
Senior Management as well
as the remedial and
corrective measures in case
of non-fulfillment; 5. If
Avary Holding fails to fulfill
its public commitments and
receives an investigation
filing from regulatory
authorities or is subject to
relevant penalties Avary
Holding agrees to bear the
corresponding legal liability
in accordance with relevant
laws and regulations and the
requirements of the
regulatory authorities and
95AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
will actively assist and
cooperate with the
regulatory authorities’
investigation or assist in the
execution of relevant
penalties.Long-term Being
Avary Holding Other The Company and all its
Effective Fulfilled as
(Shenzhen) Co. Commitment Directors and Supervisors Scheduled
Ltd. (the guarantee that the
“Company”) Company’s 2021 Restricted
Stock Incentive Plan and its
summary contain no
April 20
misrepresentation
2021
misleading statements or
material omission and shall
bear individual and joint
legal liability for the
authenticity accuracy and
completeness thereof.Long-term Being
All Incentive Other All incentive targets of the
Effective Fulfilled as
Targets under the Commitment Company commit that if the Scheduled
2021 Restricted Company fails to meet the
Stock Incentive conditions for granting or
Plan exercising equity rights due
to misrepresentation
misleading statements or
material omission in
information disclosure
documents the incentive April 20
targets shall after the 2021
Equity
relevant information
Incentive
disclosure documents are
Commitment
confirmed to contain
misrepresentation
misleading statements or
material omission return to
the Company all benefits
obtained from the equity
incentive plan.Long-term Being
Avary Holding The Company and all its
Effective Fulfilled as
(Shenzhen) Co. Directors and Supervisors
Other Scheduled
Ltd. (the guarantee that the
Commitment
“Company”) Company’s 2024 Restricted
Stock Incentive Plan and its
summary contain no
August 13
misrepresentation
2024
misleading statements or
material omission and shall
bear individual and joint
legal liability for the
authenticity accuracy and
completeness thereof.Long-term Being
All Incentive Other All incentive targets of the
Effective Fulfilled as
Targets under the Commitment Company commit that if the August 13 Scheduled
2024 Restricted Company fails to meet the 2024
Stock Incentive conditions for granting or
96AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Plan exercising equity rights due
to misrepresentation
misleading statements or
material omission in
information disclosure
documents the incentive
targets shall after the
relevant information
disclosure documents are
confirmed to contain
misrepresentation
misleading statements or
material omission return to
the Company all benefits
obtained from the equity
incentive plan.Whether the
commitments
were fulfilled Yes
on schedule
If any
commitments
have not been
fulfilled
beyond their
scheduled
period the
specific
reasons for the Not Applicable
incomplete
fulfillment and
the next-step
work plan
should be
explained in
detail
2. Description of Whether the Assets or Projects Have Achieved the Original Profit Forecasts and the
Underlying Reasons
□ Applicable □ Not applicable
3. Performance Commitments and the Achievement Thereof
□ Applicable ? Not applicable
II. Non-operating Appropriation of Funds of the Listed Company by Controlling Shareholders
and Other Related Parties
□ Applicable ? Not applicable
During the reporting period the Company had no non-operating appropriation of funds by controlling shareholders or other related
parties.
97AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
III. Non-compliance in External Guarantees
□ Applicable ? Not applicable
During the reporting period the Company had no non-compliance in external guarantees.IV. Explanation by the Board of Directors on the Latest “Non-standard Audit Report”
□ Applicable ? Not applicableV. Explanation by the Board of Directors and Independent Directors (if any) on the “Non-standard Audit Report” Issued by the Accounting Firm for the Reporting Period
□ Applicable ? Not applicable
VI. Changes in Accounting Policies Changes in Accounting Estimates and Correction of
Material Accounting Errors as Compared with the Prior Year’s Financial Statements
□ Applicable ? Not applicable
During the reporting period the Company had no changes in accounting policies changes in accounting estimates or correction of
material accounting errors.VII. Changes in the Scope of the Consolidated Financial Statements as Compared with the Prior
Year’s Financial Statements
? Applicable □ Not applicable
(1) On October 30 2025 the Company acquired a 53.68% equity interest in Wuxi Huayang Technology Co. Ltd. (“Wuxi Huayang”)
for a consideration of RMB 356724164.00. Wuxi Huayang became a non-wholly-owned subsidiary of the Group and was included in
the scope of consolidation.
(2) On December 29 2025 the Company disposed of its entire equity interest in Yaoding Technology (Shenzhen) Co. Ltd. (“YaodingShenzhen”) and its subsidiaries Yaoding Huai’an and Yaoding Qinhuangdao recognizing a disposal loss of RMB 7976623.70.VIII. Appointment and Dismissal of Accounting Firms
Currently Appointed Accounting Firm
Name of domestic accounting firm PricewaterhouseCoopers Zhong Tian LLP
Remuneration of domestic accounting firm (RMB million) 2.98
Consecutive years of audit services by the domestic accounting
8
firm
Names of certified public accountants of the domestic
GUAN Kun HU Yihan
accounting firm
Consecutive years of audit services by the certified public
GUAN Kun: 2 years; HU Yihan: 1 year
accountants of the domestic accounting firm
Whether the accounting firm was changed during the current period
□ Yes ? No
98AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Appointment of internal control audit accounting firm financial advisor or sponsor
? Applicable □ Not applicable
During the year the Company appointed PricewaterhouseCoopers Zhong Tian LLP as its internal control audit accounting firm with
internal control audit fees of RMB 0.30 million.IX. Delisting Risk After Annual Report Disclosure
□ Applicable ? Not applicable
X. Matters Relating to Bankruptcy and Reorganization
□ Applicable ? Not applicable
No bankruptcy or reorganization events occurred during the reporting period.XI. Material Litigation and Arbitration
□ Applicable ? Not applicable
No material litigation or arbitration occurred during the reporting period.XII. Penalties and Rectification
□ Applicable ? Not applicable
No penalties or rectification occurred during the reporting period.XIII. Integrity of the Company Its Controlling Shareholders and Actual Controller
□ Applicable ? Not applicable
XIV. Material Related Party Transactions
1. Related Party Transactions in the Ordinary Course of Business
? Applicable □ Not applicable
Appr
Trans
Type Detail Propo oved Whet
action
of s of Prici rtion Trans her
Amou Settle Comp
Relat Relat Relat ng Trans of action Exce Discl
Relati nt ment arable Disclosure
ed ed ed Prin action Simila Limit eding osure
onship (RM Meth Marke Index
Party Party Party cipl Price r (RM Appr Date
B od t Price
Trans Trans e Transa B oved
millio
action action ctions millio Limit
n)
n)
Hon Foxco Sale Sale Cninfo
Hai nn of of Mar Mark Bank Not Augu (www.cninf
Grou (Far goods PCB ket 2530.et 6.46% 2710 No transf applic st 13 o.com.cn):
p and East) produ pric 7940 price er able 2025 Announcem
its Limite equip cts e ent on
contr d a ment equip Increasing
99AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
olled wholl and ment the
subsi y- provis and Estimated
diarie owned ion of provis Amount of
s subsid servic ion of Daily
iary of es to servic Related
Hon relate es to Party
Hai d Hon Transaction
Group partie Hai s for 2025
is the s Grou (Announce
largest p and ment No.shareh its 2025-052)
older contr
of olled
Zhen subsi
Ding diarie
Techn s
ology
Holdi
ng
Limite
d the
indire
ct
contro
lling
shareh
older
of the
Comp
any
Foxco
nn
(Far
East) Purch
Limite ase of Purch
d a raw ase of
wholl materraw Cninfo
y- ials mater (www.cninf
owned equipHon ials o.com.cn):
Hai subsid
ment
machi Announcem
iary of and Grou nery ent on the
Hon servicp and and Mar Estimated
its Hai
es Mark Bank Not Janua
equip ket 948.2 Daily
Group from et 3.00% 1080 No transf applic ry 21 contr ment pric 997 Related
is the Hon price er able 2025 olled and e Party
largest Hai subsi servic Transaction
diarie shareh
Grou
es s for 2025
older p and s from (Announce
of its relate ment No.Zhen contrd 2025-003)
Ding olled partie
Techn subsis
ology diarie
Holdi s
ng
Limite
d the
100AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
indire
ct
contro
lling
shareh
older
of the
Comp
any
GIS
Holdi
ng
Co.Ltd. is
an
affiliat
e of Sale
Foxco of
nn goods
(Far Sale
Cninfo
East) of equip
(www.cninf
Limite goods ment
GIS o.com.cn):
d the and
Holdi Announcem
largest equip provis
ng ent on the
shareh ment ion of
and Mar Estimated
older and servic Mark Bank Not Janua
its ket 276.8 Daily
of provis es to et 0.71% 500 No transf applic ry 21
contr pric 468 Related
Zhen ion of GIS price er able 2025
olled e Party
Ding servic Holdi
subsi Transaction
Techn es to ng
diarie s for 2025
ology relate and
s (Announce
Holdi d its
ment No.ng partie contr
2025-003)
Limite s olled
d the subsi
indire diarie
ct s
contro
lling
shareh
older
of the
Comp
any
GIS Purch Purch Cninfo
GIS Holdi ase of ase of (www.cninf
Holdi ng raw goods o.com.cn):
ng Co. mater Announcem
and Ltd. is ials equip Mar Mark Bank Not Janua ent on the
its an machi ment ket 215.5et 0.68% 580 No transf applic ry 21 Estimated
contr affiliat nery and pric 295 price er able 2025 Daily
olled e of and servic e Related
subsi Foxco equip es Party
diarie nn ment from Transaction
s (Far and GIS s for 2025
East) servic Holdi (Announce
101AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Limite es ng ment No.d the from and 2025-003)
largest relate its
shareh d contr
older partie olled
of s subsi
Zhen diarie
Ding s
Techn
ology
Holdi
ng
Limite
d the
indire
ct
contro
lling
shareh
older
of the
Comp
any
Sale
of
goods
and
Zhen provis
Ding Zhen ion of
Techn Ding servic
Sale
ology Techn es to Cninfo
of
Holdi ology Zhen (www.cninf
goods
ng Holdi Ding o.com.cn):
Limit ng Techn Cost Announcem
equip
ed Limite ology - ent on the
ment Cost-
and d is Holdi plus Estimated
and plus / Bank Not Janua
its the ng / 338.8 Daily
provis Mark 0.87% 1000 No transf applic ry 21
contr indire Limit Mar 855 Related
ion of et er able 2025
olled ct ed ket Party
servic price
subsi contro and pric Transaction
es to
diarie lling its e s for 2025
relate
s shareh contr (Announce
d
(other older olled ment No.partie
than of the subsi 2025-003)
s
the Comp diarie
Comp any s
any) (other
than
the
Comp
any)
Zhen Zhen Purch Purch Mar Cninfo
Ding Ding ase of ase of Mark Bank Not Auguket 102.4 (www.cninf
Techn Techn raw goods et 0.32% 140 No transf applic st 13 pric 561 o.com.cn):
ology ology mater price er able 2025 e Announcem
Holdi Holdi ials equip ent on
102AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
ng ng machi ment Increasing
Limit Limite nery and the
ed d is and servic Estimated
and the equip es Amount of
its indire ment from Daily
contr ct and Zhen Related
olled contro servic Ding Party
subsi lling es Techn Transaction
diarie shareh from ology s for 2025
s older relate Holdi (Announce
(other of the d ng ment No.than Comp partie Limit 2025-052)
the any s ed
Comp and
any) its
contr
olled
subsi
diarie
s
(other
than
the
Comp
any)
4412.
Total -- -- -- 6010 -- -- -- -- --
8116
Details of material sales returns None
In accordance with the Proposal on the Estimated Daily Related Party Transactions for 2025
Actual fulfillment during the approved by the 14th Meeting of the Third Board of Directors and the 2024 Annual General
reporting period in the case of total Meeting and the Proposal on Increasing the Estimated Amount of Daily Related Party
estimated amount of daily related Transactions for 2025 approved at the 18th Meeting of the Third Board of Directors held on
party transactions by category (if August 12 2025 the Company estimated total daily related party transactions for 2025 at
any) RMB 6010 million. The actual amount incurred in 2025 was RMB 4412.8116 million which
did not exceed the limits approved by the Board of Directors and the General Meeting.Reasons for significant
discrepancy between transaction
None
price and market reference price (if
applicable)
2. Related Party Transactions Involving Asset or Equity Acquisitions and Disposals
□ Applicable ? Not applicable
3. Related Party Transactions Involving Joint External Investments
□ Applicable ? Not applicable
No joint external investments with related parties occurred during the reporting period.
103AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
4. Related Party Debts and Credits
□ Applicable ? Not applicable
No material related party debts and credits existed during the reporting period.
5. Transactions with Finance Companies with Related Party Relationships
□ Applicable ? Not applicable
No deposits loans credit facilities or other financial transactions existed between the Company and finance companies with related
party relationships.
6. Transactions Between the Company’s Controlled Finance Company and Related Parties
□ Applicable ? Not applicable
No deposits loans credit facilities or other financial transactions existed between the Company’s controlled finance company and
related parties.
7. Other Material Related Party Transactions
? Applicable □ Not applicable
Targeted Capital Reduction of Associated Company Leading Semiconductor
On January 12 2023 the Company convened the 23rd Meeting of the Second Board of Directors which approved the Proposal on
Investment in Related Company Leading Interconnect Semiconductor Technology (Shenzhen) Co. Ltd pursuant to which the Company
agreed to make an additional capital contribution of USD 136020151 to Leading Interconnect Semiconductor Technology (Shenzhen)
Co. Ltd (“Leading Semiconductor”) a related company of which USD 15113350 was credited to the registered capital of Leading
Semiconductor and the remaining amount was credited to capital reserve. Upon completion of the capital increase the Company held
an 8.47% equity interest in Leading Semiconductor (calculated on the basis of the subscribed capital contribution). For details please
refer to the Announcement of Avary Holding on External Investment and Related Party Transaction (Announcement No. 2023-003)
published in Securities Times Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on January 13 2023.On May 30 2025 Leading Semiconductor an associated company of the Company convened a general meeting and resolved to
implement a targeted capital reduction by canceling the unpaid capital contributions of certain shareholders reducing the total
subscribed registered capital from USD 178.464543 million to USD 110.13121 million. Following this capital reduction the
Company’s capital contribution to Leading Semiconductor remained unchanged and the Company’s equity interest in Leading
Semiconductor increased from 8.47% to 13.72%. For details please refer to the Announcement of Avary Holding on the Capital
Reduction of an Associated Company (Announcement No. 2025-035) published in Securities Times Shanghai Securities News and on
Cninfo (www.cninfo.com.cn) on June 3 2025.In July 2025 the capital reduction of Leading Semiconductor was completed.Website Links for Interim Announcements on Material Related Party Transactions
Date of Interim Announcement Website for Interim Announcement
Interim Announcement Title
Disclosure Disclosure
Announcement on External Investment
January 13 2023 Cninfo (www.cninfo.com.cn)
and Related Party Transaction
Announcement on the Capital Reduction
June 3 2025 Cninfo (www.cninfo.com.cn)
of an Associated Company
104AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XV. Material Contracts and Their Performance
1. Trusteeship Contracting and Leasing Arrangements
(1) Trusteeship
□ Applicable ? Not applicable
No trusteeship arrangements existed during the reporting period.
(2) Contracting
□ Applicable ? Not applicable
No contracting arrangements existed during the reporting period.
(3) Leasing
? Applicable □ Not applicable
Description of Leasing Arrangements
Assets Leased by the Company from Other Parties:
1. The subsidiary Avary Hong Kong leases one office from Chuk Kwan Kee Enterprises Limited for office purposes.
2. The Company and its subsidiaries lease a total of 2486 residential units from third parties within Mainland China for use as employee
dormitories and ancillary living facilities.
3. Avary India leases a factory building of 257000 square feet from S.N. Darmani Infra Private Limited in India for production purposes.
4. To comply with local government regulations Avary India leases 174240 square feet of green space from Ramakrishnan Rajagopal
and Ravindranath Rajagopal respectively.
5. The Vietnam Representative Office of Avary Hong Kong leases one office from Lê MINH C??NG ＆ NGUY?N TH? MAI for
office purposes.
6. Peng Shen leases one office from CORAL HOLDING CO. LTD. for office purposes.
7. Peng Shen leases a total of 244 rooms from Saha Pathanapibul PCL for use as employee dormitories and ancillary living facilities.
8. Peng Shen leases land of 8.38725 rai from Saha Pathana Inter-Holding PCL for industrial park construction.
Assets of the Company Leased by Other Parties:
Assets of the Company leased by other parties primarily consist of the leasing of office floors in the Company’s headquarters building
and ancillary employee service facilities in the Company’s various industrial parks the amounts of which are immaterial and do not
have a significant impact on the Company.Projects generating profit or loss amounting to 10% or more of the Company’s total profit for the reporting period
□ Applicable ? Not applicable
No leasing projects generated profit or loss amounting to 10% or more of the Company’s total profit for the reporting period.
2. Material Guarantees
□ Applicable ? Not applicable
No material guarantees existed during the reporting period.
105AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
3. Entrusted Cash Asset Management
(1) Entrusted Wealth Management
□ Applicable ? Not applicable
No entrusted wealth management existed during the reporting period.
(2) Entrusted Loans
□ Applicable ? Not applicable
No entrusted loans existed during the reporting period.
4. Other Material Contracts
□ Applicable ? Not applicable
No other material contracts existed during the reporting period.XVI. Use of Raised Proceeds
□ Applicable ? Not applicable
No proceeds were raised during the reporting period.XVII. Other Material Matters
? Applicable □ Not applicable
1. Capital Increase in Wholly-Owned Subsidiary Avary Taiwan
The Company convened the 5th Meeting of the Second Board of Directors on September 9 2020 which approved the Proposal on
Capital Increase in Wholly-Owned Subsidiaries pursuant to which the Board approved a capital increase of USD 0.1 billion by the
Company to Avary Hong Kong and then by Avary Hong Kong to Avary Taiwan in the amount of NTD 3 billion for the construction
of the Kaohsiung Taiwan FPC project. For details please refer to the Announcement of Avary Holding on Capital Increase in Wholly-
Owned Subsidiaries (Announcement No. 2020-059) published in China Securities Journal Securities Times Shanghai Securities News
Securities Daily and on Cninfo (www.cninfo.com.cn) on September 10 2020.On April 8 2025 the Company convened the 15th Meeting of the Third Board of Directors which approved the Proposal on Capital
Increase in Wholly-Owned Subsidiary Avary Taiwan pursuant to which the Company agreed to adjust the above capital increase
arrangement to a capital increase of NTD 3 billion (equivalent to approximately RMB 0.66 billion) by the wholly-owned subsidiary
Avary Hong Kong to Avary Taiwan. For details please refer to the Announcement of Avary Holding on Capital Increase in Wholly-
Owned Subsidiary Avary Taiwan (Announcement No. 2025-021) published in Securities Times Shanghai Securities News and on
Cninfo (www.cninfo.com.cn) on April 9 2025.This capital increase was completed in June 2025. For details please refer to the Announcement of Avary Holding on the Completion
of Capital Increase in Wholly-Owned Subsidiary Avary Taiwan (Announcement No. 2025-040) published in Securities Times Shanghai
Securities News and on Cninfo (www.cninfo.com.cn) on June 18 2025.
2. Capital Increase in Wholly-Owned Subsidiary Hong Heng Sheng
The Company convened the 15th Meeting of the Third Board of Directors on April 8 2025 which approved the Proposal on Capital
Increase in Wholly-Owned Subsidiary Hong Heng Sheng pursuant to which the Company agreed to make a capital increase of RMB
0.5 billion in Hong Heng Sheng Electronical Technology (Huaian) Co. Ltd. a wholly-owned subsidiary. For details please refer to
the Announcement of Avary Holding on Capital Increase in Wholly-Owned Subsidiary Hong Heng Sheng (Announcement No. 2025-
022) published in Securities Times Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on April 9 2025.
The related capital increase procedures were completed in April 2025. For details please refer to the Announcement of Avary Holding
on the Completion of Business Registration Changes of a Subsidiary (Announcement No. 2025-027) published in Securities Times
106AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on April 12 2025.The Company convened the 21st Meeting of the Third Board of Directors on October 30 2025 which approved the Proposal on
Capital Increase in Wholly-Owned Subsidiary Hong Heng Sheng pursuant to which the Company agreed to make a capital increase of
RMB 0.5 billion in Hong Heng Sheng Electronical Technology (Huaian) Co. Ltd. For details please refer to the Announcement of
Avary Holding on Capital Increase in Wholly-Owned Subsidiary Hong Heng Sheng (Announcement No. 2025-066) published in
Securities Times Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on October 31 2025.The related capital increase procedures were completed in December 2025. For details please refer to the Announcement of Avary
Holding on the Completion of Business Registration Changes of a Subsidiary (Announcement No. 2025-074) published in Securities
Times Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on December 18 2025.
3. Investment in Suzhou Xinrui Equity Investment Partnership (Limited Partnership)
In January 2025 the Company invested RMB 60040086 in Suzhou Xinrui Equity Investment Partnership (Limited Partnership) of
which RMB 60000000 was used to invest in King Long Technology (Suzhou) Co. Ltd. (“King Long Technology”). King Long
Technology is an independent IC testing house that provides customers with integrated back-end IC services including logic and analog
IC testing memory testing CMOS image sensor packaging and testing etc.
4. Investment in DCT Co. Ltd.
In February 2025 the Company invested RMB 24999996 to subscribe for 2976190 shares in a private placement by DCT Co. Ltd.(“DCT”) at a subscription price of RMB 8.40 per share. DCT is a company listed on the National Equities Exchange and Quotations
(NEEQ) and is an enterprise that develops and produces laser micro-machining equipment and rapid PCB prototyping equipment with
laser direct processing technology as its core business.
5. Investment in Jiangxi Jiangnan New Material Technology Co. Ltd.
In March 2025 the Company invested RMB 24999995 to participate in the IPO strategic placement of Jiangxi Jiangnan New Material
Technology Co. Ltd. (“Jiangnan New Material”) subscribing for a total of 2371916 shares. Jiangnan New Material is an enterprise
engaged in the development and production of copper balls copper oxide powder high-precision copper-based heat sinks and other
materials with copper-based new materials as its core business.
6. Investment in Dingqin Technology (Shenzhen) Co. Ltd.
In April 2025 the Company invested RMB 20000000 in Dingqin Technology (Shenzhen) Co. Ltd. (“Dingqin Technology”). Dingqin
Technology is an enterprise that provides automation equipment vertical chemical equipment and high-end electroplating equipment
for the PCB IC substrate and semiconductor sectors.
7. Investment in Subscription of Chunhua Jingzhi (Beijing) Equity Investment Partnership (Limited Partnership) Interests
On January 25 2021 the Company convened the 9th Meeting of the Second Board of Directors which approved the Proposal on
Participation of Wholly-Owned Subsidiary in Investment in a Private Equity Fund. The Board approved that Avary Holding Investment
(Shenzhen) Co. Ltd. a wholly-owned subsidiary as a limited partner would subscribe for up to 20% of the total fund capital of
Chunhua Jingzhi (Beijing) Equity Investment Partnership (Limited Partnership) not exceeding RMB 200 million and execute the
Limited Partnership Agreement of Chunhua Jingzhi (Beijing) Equity Investment Partnership (Limited Partnership).In September 2021 the Company contributed RMB 5 million to subscribe for the corresponding Chunhua Jingzhi fund interests. In
September 2022 the Company made an additional contribution of RMB 3.36 million. In November 2022 the Company made an
additional investment of RMB 16.72 million. In May 2023 the Company made an additional investment of RMB 12.6342 million. In
March 2024 the Company made an additional investment of RMB 9.6198 million. In June 2024 the Company made an additional
investment of RMB 31.556 million. In February 2025 the Company made an additional investment of RMB 31.556 million. In July
2025 the Company made an additional investment of RMB 47.334 million to subscribe for the corresponding Chunhua Jingzhi fund
interests.
8. Participation in Subscription of Investment Fund Interests
The Company convened the 17th Meeting of the Third Board of Directors on June 24 2025 which approved the Proposal on
Participation of Wholly-Owned Subsidiary in Subscription of Investment Fund Interests pursuant to which the subsidiary Avary Hong
Kong was approved to contribute an amount not exceeding USD 30 million to subscribe for interests in the China Renewable Power
Infrastructure LPF. For details please refer to the Announcement of Avary Holding on Participation of Wholly-Owned Subsidiary in
Subscription of Investment Fund Interests (Announcement No. 2025-042) published in Securities Times Shanghai Securities News and
on Cninfo (www.cninfo.com.cn) on June 25 2025. In August 2025 the Company completed the first installment payment of USD
142556.32.
9. Capital Increase in Wholly-Owned Subsidiary Avary Singapore
The Company convened the 18th Meeting of the Third Board of Directors on August 12 2025 which approved the Proposal on Capital
107AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Increase in Wholly-Owned Subsidiary Avary Singapore. To meet the working capital requirements of the wholly-owned subsidiary
Avary India the Company agreed to make a capital increase of USD 70 million to Avary Singapore which in turn would make a capital
increase of USD 70 million (equivalent amount in Indian Rupees) to Avary India. For details please refer to the Announcement of
Avary Holding on Capital Increase in Wholly-Owned Subsidiary (Announcement No. 2025-053) published in Securities Times
Shanghai Securities News and on Cninfo (www.cninfo.com.cn) on August 13 2025.As of the date of this report the related capital increase procedures are in progress.
10. Investment in Suzhou Xinguangyi Electronics Co. Ltd.
In December 2025 the Company invested RMB 29999998.77 to participate in the IPO strategic placement of Suzhou Xinguangyi
Electronics Co. Ltd. (“Xinguangyi”) subscribing for a total of 1367989 shares. Xinguangyi established in 2004 is a high-tech
enterprise specializing in the R&D production and sale of high-performance specialty functional materials. It is principally engaged
in the R&D and manufacturing of specialty electronic materials production of electronic components and sale of plastic and rubber
products. Its business covers the R&D and production of functional materials such as anti-overflow adhesive specialty films and high-
resistance specialty films which are used in consumer electronics automotive electronics new energy lithium batteries photovoltaics
and other sectors.
11. Investment in Chengdu Keyi Polymer Technology Co. Ltd.
In November 2025 and January 2026 the Company successively invested RMB 38368751 and RMB 19999984 totaling RMB
58368735 in Chengdu Keyi Polymer Technology Co. Ltd. (“Keyi Polymer”) through the acquisition of existing shares. Keyi Polymer
is a high-tech enterprise engaged in the R&D production and sale of new high-performance base resins serving as a key material
supplier for CCL manufacturers in the upstream of the PCB industry.XVIII. Material Events of Subsidiaries of the Company
? Applicable □ Not applicable
1. High and New Technology Enterprise Re-certification of Subsidiary Hongqisheng
Hongqisheng a wholly-owned subsidiary of the Company obtained the High and New Technology Enterprise Certificate (Certificate
No. GR201913001342) on October 30 2019 with a validity period of three years. In 2022 Hongqisheng passed the High and New
Technology Enterprise re-certification and obtained a certificate (Certificate No. GR202213000771) with a validity period of three
years. In October 2025 Hongqisheng again passed the High and New Technology Enterprise re-certification and obtained a certificate
(Certificate No. GR202513000044) with a validity period of three years.
108AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section VI Changes in Shares and Shareholders
I. Changes in Shares
1. Changes in Shares
Unit: Shares
Before Change Increase/Decrease (+/-) After Change
Issuan Capitaliza
Bon
Proporti ce of tion of Propor
Number us Others Subtotal Number
on New Capital tion
Issue
Shares Reserve
I. Shares
Subject to
8617791
Trading 13066803.00 0.56% -4449012.00 -4449012.00 0.37%.00
Moratoriu
m
1. State-
owned
shares
2. Shares
held by
state-
owned
legal
persons
3. Other
8114282
domestic 12067078.00 0.52% -3952796.00 -3952796.00 0.35%.00
shares
Including:
Shares
held by
domestic
legal
persons
Shares
held by
8114282
domestic 12067078.00 0.52% -3952796.00 -3952796.00 0.35%.00
natural
persons
4. Foreign 503509.0
999725.000.04%-496216.00-496216.000.02%
shares 0
Including:
Shares
held by
109AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
foreign
legal
persons
Shares
held by
503509.0
foreign 999725.00 0.04% -496216.00 -496216.00 0.02%
0
natural
persons
II. Shares
Not
Subject to 2305494013 2309433 99.63
99.44%3939212.003939212.00
Trading .00 225.00 %
Moratoriu
m
1. RMB
2305494013230943399.63
ordinary 99.44% 3939212.00 3939212.00.00225.00%
shares
2.
Domestica
lly listed
foreign
shares
3.
Overseas
listed
foreign
shares
4. Others
III. Total 2318560816 100.00 2318051 100.00
-509800.00-509800.00
Shares .00 % 016.00 %
Reasons for Changes in Shares
? Applicable □ Not applicable
The Company repurchased and cancelled 509800 restricted shares under the 2021 Restricted Share Incentive Plan and the 2024
Restricted Share Incentive Plan.Approval of Changes in Shares
? Applicable □ Not applicable
The 15th Meeting of the Third Board of Directors convened on April 8 2025 the 11th Meeting of the Third Board of Supervisors and
the 2024 Annual General Meeting held on April 29 2025 approved the Proposal on the Repurchase and Cancellation of Certain
Restricted Shares under the 2021 Restricted Share Incentive Plan and the 2024 Restricted Share Incentive Plan. The Company was
authorized to repurchase and cancel 509800 restricted shares held by 253 incentive recipients whose shares had been granted but had
not yet become tradable.Transfer Registration of Changes in Shares
? Applicable □ Not applicable
Upon confirmation by the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited the repurchase and
cancellation of certain A-share restricted shares was completed on June 9 2025. Following the repurchase and cancellation the total
share capital of the Company was reduced from 2318560816 shares to 2318051016 shares.Impact of Changes in Shares on Basic Earnings Per Share and Diluted Earnings Per Share Net Assets Per Share Attributable to Ordinary
110AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Shareholders of the Company and Other Financial Indicators for the Most Recent Year and Most Recent Period
? Applicable □ Not applicable
The repurchase and cancellation of shares resulted in a reduction in total share capital which will increase basic earnings per share and
diluted earnings per share as well as net assets per share attributable to ordinary shareholders of the Company. However given that
the repurchased and cancelled shares represented a very small proportion of total shares the impact was minimal.Other Information Required to Be Disclosed as Deemed Necessary by the Company or Securities Regulatory Authorities
□ Applicable ? Not applicable
2. Changes in Shares Subject to Trading Moratorium
? Applicable □ Not applicable
Unit: Shares
Restricted Increase in Release of
Restricted Date of Release
Shareholder Shares at Restricted Restricted Reason for
Shares at from
Name Period- Shares During Shares During Restriction
Period-End Restriction
Beginning the Period the Period
Restricted Restricted
shares under shares under
12911900.00 4458012.001 8453888.00 See Note 1
share incentive share incentive
plan plan
Shares subject Shares subject
to lock-up by to lock-up by
154903.00 9000.002 163903.00 Not applicable
senior senior
management management
Total 13066803.00 9000.00 4458012.00 8617791.00 -- --
Note:1 On June 9 2025 the Company repurchased and cancelled an aggregate of 509800 restricted shares under the 2021 Restricted
Stock Incentive Plan and the 2024 Restricted Stock Incentive Plan. On July 10 2025 the restricted shares under the 2021 Restricted
Stock Incentive Plan that met the conditions for the fourth lock-up release period were released from lock-up and listed for trading
totaling 1336800 shares. On October 16 2025 the restricted shares under the 2024 Restricted Stock Incentive Plan that met the
conditions for the first lock-up release period were released from lock-up and listed for trading totaling 2611412 shares.
2 The 24000 restricted shares held by Mr. Luo Anzhi Vice General Manager of the Company were released from lock-up on July 10
2025 of which 9000 shares were reclassified as shares subject to lock-up for senior management.
II. Securities Issuance and Listing
1. Securities Issuance During the Reporting Period (Excluding Preference Shares)
□ Applicable ? Not applicable
2. Description of Changes in Total Shares and Shareholder Structure and Changes in Asset and Liability
Structure of the Company
? Applicable □ Not applicable
During the reporting period the Company repurchased and cancelled 509800 restricted shares under the 2021 Restricted Share
Incentive Plan and the 2024 Restricted Share Incentive Plan resulting in a reduction in total shares.
111AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
3. Existing Internal Employee Shares
□ Applicable ? Not applicable
III. Shareholders and Actual Controller
1. Number of Shareholders and Shareholdings
Unit: Shares
Total
number of
ordinary Total number
Total Total number of
shareholde of preference
number of preference shareholders
rs as of the shareholders
ordinary with restored voting
end of the with restored
sharehold 88425 82295 0 rights as of the end of the 0
last month voting rights at
ers at last month prior to the
prior to the period-end (if
period- annual report disclosure
annual any) (see Note
end date (if any) (see Note 8)
report 8)
disclosure
date
Shareholdings of shareholders holding 5% or more of the shares or top 10 shareholders (excluding shares lent through securities
refinancing)
Number Status of Pledge
Increase/Decr of Marking or Freezing
Nature of Shareholdi Number of Number of
Sharehold ease During Restrict
Sharehol ng Shares Held Unrestricted
er Name the Reporting ed Status Number
der Percentage at Period-End Shares Held
Period Shares
Held
Mayco Foreign Not
15342421981534242198
Industrial legal 66.19% 0.00 0.00 applicab 0.00.00
Limited person le
Pacific
Fair Foreign Not
132402775.0132402775.0
Internatio legal 5.71% 0.00 0.00 applicab 0
00
nal person le
Limited
Hong
Kong
Foreign Not
Securities
legal 2.71% 62734091.00 17964949.00 0.00 62734091.00 applicab 0
Clearing
person le
Company
Limited
National
Social
Not
Security
Others 1.73% 39999981.00 5699981.00 0.00 39999981.00 applicab 0
Fund
le
Portfolio
103
112AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Industrial
and
Commerci
al Bank of
Not
China
Others 0.50% 11491235.00 -548265.00 0.00 11491235.00 applicab 0
Limited
le
— Huatai-
PineBridg
e CSI 300
ETF
Foreign Not
Yuefeng
legal 0.45% 10318217.00 -478800.00 0.00 10318217.00 applicab 0
Limited
person le
China
Constructi
on Bank Not
Corporati Others 0.35% 8200627.00 -88300.00 0.00 8200627.00 applicab 0
on — E le
Fund CSI
300 ETF
Industrial
and
Commerci
al Bank of
Not
China
Others 0.27% 6252400.00 749000.00 0.00 6252400.00 applicab 0
Limited
le
—
ChinaAM
C CSI 300
ETF
National
Social
Not
Security
Others 0.27% 6228600.00 5832300.00 0.00 6228600.00 applicab 0
Fund
le
Portfolio
416
Bank of
China
Limited Not
— Others 0.23% 5388988.00 171956.00 0.00 5388988.00 applicab 0
Harvest le
CSI 300
ETF
Strategic investors or
general legal persons
becoming top 10
shareholders through None
placement of new
shares (if any) (see
Note 3)
Description of Among the top 10 shareholders: 1. Mayco Industrial Limited and Pacific Fair International Limited are
113AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
affiliated relationships both wholly-owned subsidiaries indirectly controlled by Zhen Ding Technology Holding Limited (TW:
or acting-in-concert 4958); 2. Mayco Industrial Limited holds 11.82% of the equity interest in Yuefeng Limited; 3. Based on
among the above publicly available information National Social Security Fund Portfolio 103 and National Social Security
shareholders Fund Portfolio 416 are both investment portfolios of the National Social Security Fund. Save for the
above affiliations it is not known whether there are any other affiliated relationships or acting-in-concert
relationships among the top 10 shareholders or whether they are persons acting in concert.Description of
shareholders’
None
entrustment/waiver of
voting rights
Special remarks on
repurchase accounts
among top 10 None
shareholders (if any)
(see Note 10)
Shareholdings of top 10 unrestricted shareholders (excluding shares lent through securities refinancing and shares subject to lock-
up by senior management)
Class of Shares
Shareholder Name Number of Unrestricted Shares Held at Period-End
Class of Number
Shares
RMB
Mayco Industrial 1534242198
1534242198.00 ordinary
Limited .00
shares
RMB
Pacific Fair 132402775.0
132402775.00 ordinary
International Limited 0
shares
Hong Kong Securities RMB
Clearing Company 62734091.00 ordinary 62734091.00
Limited shares
National Social RMB
Security Fund Portfolio 39999981.00 ordinary 39999981.00
103 shares
Industrial and
Commercial Bank of RMB
China Limited — 11491235.00 ordinary 11491235.00
Huatai-PineBridge CSI shares
300 ETF
RMB
Yuefeng Limited 10318217.00 ordinary 10318217.00
shares
China Construction RMB
Bank Corporation — E 8200627.00 ordinary 8200627.00
Fund CSI 300 ETF shares
Industrial and RMB
Commercial Bank of 6252400.00 ordinary 6252400.00
China Limited — shares
114AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
ChinaAMC CSI 300
ETF
National Social RMB
Security Fund Portfolio 6228600.00 ordinary 6228600.00
416 shares
Bank of China Limited RMB
— Harvest CSI 300 5388988.00 ordinary 5388988.00
ETF shares
Description of
affiliated relationships Among the top 10 unrestricted shareholders: 1. Mayco Industrial Limited and Pacific Fair International
or acting-in-concert Limited are both wholly-owned subsidiaries indirectly controlled by Zhen Ding Technology Holding
among the top 10 Limited (TW: 4958); 2. Mayco Industrial Limited holds 11.82% of the equity interest in Yuefeng Limited;
unrestricted 3. Based on publicly available information National Social Security Fund Portfolio 103 and National
shareholders and Social Security Fund Portfolio 416 are both investment portfolios of the National Social Security Fund.between the top 10 Save for the above affiliations it is not known whether there are any other affiliated relationships or
unrestricted acting-in-concert relationships among the top 10 shareholders and the top 10 unrestricted shareholders
shareholders and the or whether they are persons acting in concert.top 10 shareholders
Description of top 10
ordinary shareholders
participating in margin
None
trading and securities
lending (if any) (see
Note 4)
Shareholdings of Shareholders Holding 5% or More of the Shares Top 10 Shareholders and Top 10 Unrestricted Shareholders
Participating in Securities Refinancing Business
□ Applicable ? Not applicable
Changes in Top 10 Shareholders and Top 10 Unrestricted Shareholders Due to Securities Refinancing Lending/Return as Compared
with the Prior Period
□ Applicable ? Not applicable
Whether Top 10 Ordinary Shareholders or Top 10 Unrestricted Ordinary Shareholders Entered into Agreed Share Repurchase
Transactions During the Reporting Period
□ Yes ? No
No top 10 ordinary shareholders or top 10 unrestricted ordinary shareholders entered into agreed share repurchase transactions during
the reporting period.
2. Controlling Shareholder of the Company
Nature of controlling shareholder: Foreign-controlled
Type of controlling shareholder: Legal person
Name of Controlling Legal Representative /
Date of Establishment Organization Code Principal Business
Shareholder Responsible Person
Mayco Industrial
Charles Shen November 14 2007 1185264 Investment holding
Limited
Equity interests held by
the controlling None
shareholder in other
115AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
domestic and overseas
listed companies
during the reporting
period
Change in Controlling Shareholder During the Reporting Period
□ Applicable ? Not applicable
No change in the controlling shareholder occurred during the reporting period.
3. Actual Controller of the Company and Its Concerted Parties
Nature of actual controller: No actual controller
Type of actual controller: Non-existent
Explanation of Why the Company Has No Actual Controller
The indirect controlling shareholder of the Company is Zhen Ding Technology Holding Limited a company listed in Taiwan. The
largest shareholder of Zhen Ding Technology Holding is Foxconn (Far East) Limited a wholly-owned subsidiary of Hon Hai Group.During the reporting period Hon Hai Group had no actual controller. Hon Hai Group held only one seat among the seven board
members of Zhen Ding Technology Holding. Hon Hai Group has never consolidated Zhen Ding Technology Holding and accounts for
it using the equity method only. Zhen Ding Technology Holding has no actual controller and therefore the Company also has no actual
controller.Whether Any Shareholder at the Ultimate Control Level Holds 10% or More of the Shares
? Yes □ No
? Legal person □ Natural person
Shareholdings at the Ultimate Control Level
Name of Shareholder
Legal Representative /
at the Ultimate Control Date of Establishment Organization Code Principal Business
Responsible Person
Level
Zhen Ding Technology
Charles Shen June 5 2006 168714 Investment holding
Holding Limited
Equity interests
controlled by the
shareholder at the
ultimate control level
None
in other domestic and
overseas listed
companies during the
reporting period
Change in Actual Controller During the Reporting Period
□ Applicable ? Not applicable
No change in the actual controller occurred during the reporting period.Property Rights and Control Relationship Chart Between the Company and Its Actual Controller
116AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Actual Controller Controls the Company through Trusts or Other Asset Management Arrangements
□ Applicable ? Not applicable
4. Pledged Shares of the Controlling Shareholder or Largest Shareholder and Their Concerted Parties as a
Percentage of Their Respective Shareholdings in the Company Reaching 80%
□ Applicable ? Not applicable
5. Other Legal Person Shareholders with Shareholdings of 10% or More
□ Applicable ? Not applicable
6. Restriction on Shareholding Reductions by the Controlling Shareholder Actual Controller Reorganization
Parties and Other Commitment Entities
□ Applicable ? Not applicable
IV. Specific Implementation of Share Repurchases During the Reporting Period
Progress of Share Repurchases
□ Applicable ? Not applicable
Progress on Repurchase Share Disposals through Centralized Bidding
□ Applicable ? Not applicable
V. Preference Share-Related Matters
□ Applicable ? Not applicable
117AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
No preference shares existed during the reporting period.
118AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section VII Matters Relating to Bonds
□ Applicable ? Not applicable
119AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Section VIII Financial Statements
I. AUDITOR’S REPORT
Type of audit opinion Standard unqualified opinion
Date of the auditor’s report March 30 2026
Name of the audit firm PricewaterhouseCoopers Zhong Tian LLP
Reference number of the auditor’s report PwC ZT Shen Zi (2026) No. 10008
Names of certified public accountants GUAN Kun HU Yihan
Text of the Auditor’s Report
To the Shareholders of Avary Holding (Shenzhen) Co. Ltd.:
I. Auditor’s Opinion
(i) What We Have Audited
We have audited the financial statements of Avary Holding (Shenzhen) Co. Limited (hereinafter referred to as “Avary Holding”)
which comprise the consolidated and company balance sheets as at December 31 2025 and the consolidated and company income
statements consolidated and company cash flow statements and consolidated and company statements of changes in shareholders’
equity for the year then ended and the notes to the financial statements.(ii) Our Opinion
In our opinion the accompanying financial statements are prepared in all material respects in accordance with the requirements of the
Accounting Standards for Business Enterprises and fairly present the consolidated and company financial position of Avary Holding
as at December 31 2025 and the consolidated and company results of operations and cash flows for the year then ended.II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further
described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.In accordance with the China Standards on Independence — Part 1: Independence Requirements for Audits and Reviews of Financial
Statements and the Code of Ethics for Chinese Certified Public Accountants we are independent of Avary Holding and have fulfilled
our other ethical responsibilities. We have complied with the independence requirements applicable to audits of public interest entities
throughout our audit.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements
of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and in forming
our opinion thereon and we do not provide a separate opinion on these matters. The key audit matters we have identified in our audit
are summarized as follows:
(i) Recognition of revenue from sales of goods
(ii) Provision for inventories
Key Audit Matters How our audit addressed the key audit matter
(I) Recognition of revenue from sales of goods We obtained an understanding of assessed and tested the internal
controls over revenue from sales of goods including the design
Refer to Note II(23) (Revenue) and Note IV(38) (Revenue and
and operating effectiveness of key controls throughout the
cost of sales) to the financial statements. Avary Holding
complete business process from product pricing customer credit
(Shenzhen) Co. Limited and its subsidiaries (hereinafter referred
management order management sales delivery sales
to as the “Avary Group”) recorded revenue of approximately
reconciliation revenue recognition to sales collection as well as
RMB 39147 million for the year ended 31 December 2025 of
120AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
which RMB 38843 million was revenue from sales of goods. the general controls over information systems relevant to the
The Avary Group manufactures various printed circuit board recognition of revenue from sales of goods. We selected the sales
products and sells them to customers in multiple regions. Its sales contracts and orders of the Avary Group’s major customers and
model is primarily divided into two types: the warehouse delivery reviewed the key contractual terms with such customers
model and the factory direct shipment model. The revenue including order placement product delivery invoicing and
recognition methods under these two models are as follows: collection to evaluate the Avary Group’s accounting policies
Under the warehouse delivery model the Avary Group produces relating to revenue recognition. Using sampling methods we
goods according to customer orders and delivers the finished performed the following procedures to test the recognition of
products to a warehouse. The Group usually engages a logistics revenue from sales of goods: Tested revenue from sales of goods
company to manage the inventory in the warehouse. Customers in different regions and from different customers by inspecting
pick up the goods from the warehouse upon their demand and supporting documents relevant to revenue recognition such as
with the Group’s consent. Revenue is recognized by the Group sales orders delivery notes shipping documents and goods
based on the pickup records when customers take possession of receipt acknowledgements; Sent confirmation requests to selected
the products. Under the factory direct shipment model in customers regarding transaction amounts and outstanding
accordance with the sales contracts and orders the Avary Group accounts receivable balances based on the transaction amounts
is required to deliver the printed circuit board products to the nature and customer characteristics; Tested revenue from sales of
delivery point designated by the customer. Revenue is recognized goods recorded around the balance sheet date by comparing the
upon customer acceptance and the signing of the goods delivery revenue recognition entries with supporting documents such as
note by both parties. The credit period granted by the Avary Group delivery notes shipping documents and goods receipt
to its customers is generally 45 to 90 days which is consistent acknowledgements to assess whether the relevant revenue from
with industry practice and there is no significant financing sales of goods was recognised in the appropriate accounting
component. Due to the large volume of sales transactions the period. Based on the audit procedures performed we concluded
wide variety of product models and the broad geographic that the recognition of revenue from sales of goods by the Avary
distribution of customers the recognition of revenue from sales Group is supported by the evidence we have obtained.of goods involves complexity. Accordingly we have identified
the recognition of revenue from sales of goods as a key audit
matter.(II) Provision for inventories We obtained an understanding of assessed and tested the internal
controls over the provision for inventories including the general
Refer to Note II(11) (Inventories) Note II(28) (Significant controls over the inventory-related reporting systems the
accounting estimates and judgements) and Note IV(7) reporting logic and the automated report calculations used by
(Inventories) to the financial statements. management in estimating the provision for inventories.As at 31 December 2025 the gross carrying amount of inventories We assessed the inherent risk of material misstatement by
and the provision for inventories in the consolidated financial considering the degree of estimation uncertainty and other
statements of the Avary Group amounted to RMB 3941 million inherent risk factors such as the complexity and subjectivity of
and RMB 134 million respectively. The Avary Group measures the estimate and management bias or fraud in making the
inventories at the lower of cost and net realisable value and estimate.recognises a provision for inventories against inventory items that We compared the actual write-offs and losses of inventories
have exceeded a certain ageing period as well as obsolete or during the current year with the provision for inventories
damaged items. Due to the significant magnitude of the Avary recognised in prior years to assess whether significant
Group’s inventories the estimation of the provision for management bias existed in the determination of the provision for
inventories involves inherent uncertainty. The assessment of inventories.future selling prices and the likelihood of sale is subjective and We obtained the inventory provision schedules prepared by the
requires significant management judgement and estimates. Avary Group’s management and performed the following
Accordingly we have identified the provision for inventories as a procedures:
key audit matter. - Using sampling methods we examined the net realisable value
used in the inventory provision schedules and compared it with
recent purchase prices of raw materials or recent selling prices of
finished goods contract fulfilment costs and selling expense
ratios;
- Using sampling methods we tested the accuracy of the inventory
ageing used by management in calculating the provision for
inventories;
- During the inventory count observation we paid attention to the
condition of inventories and observed whether there were any
slow-moving obsolete aged or damaged inventory items. We
compared such observed items with management’s inventory
provision list to assess the completeness of the provision for
inventories.Based on the audit procedures performed we concluded that the
provision for inventories of the Avary Group is supported by the
evidence we have obtained.
121AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
IV. Other Information
Management of Avary Holding is responsible for the other information. The other information comprises the information included in
the annual report of Avary Holding for the year ended December 31 2025 but does not include 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 this other information we are required to report that fact. In this regard we have nothing to report.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management of Avary Holding is responsible for the preparation of the financial statements that give a true and fair view in accordance
with the Accounting Standards for Business Enterprises and for such internal control as 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 management is responsible for assessing Avary Holding’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 management either
intends to liquidate Avary Holding or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing Avary Holding’s financial reporting process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement
whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance
but is not a guarantee that an audit conducted in accordance with the Standards on Auditing will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with the Standards on Auditing we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(i) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error; design and perform
audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of internal control.(ii) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.(iii) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.(iv) Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence
obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on Avary Holding’s ability
to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or 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 Avary
Holding to cease to continue as a going concern.(v) Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.(vi) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Avary
Holding to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the
group audit. We remain solely responsible for our audit opinion.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 significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence and where applicable related safeguards.
122AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
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 amounts in the accompanying financial statements and notes are presented in Renminbi Yuan (RMB).
1. Consolidated Balance Sheet
Prepared by: Avary Holding (Shenzhen) Co. Ltd.December 31 2025
Unit: RMB
Item Closing Balance Opening Balance
Current assets:
Cash and bank balances 12031994489.34 13496952363.88
Settlement deposit
Loans to banks and other financial
institutions
Financial assets held for trading
Derivative financial assets
Notes receivable 143979927.94 69974867.39
Accounts receivable 6073127859.07 5768822058.27
Accounts receivable financing 39453938.12
Advances to suppliers 238608572.18 207583834.54
Premiums receivable
Reinsurance accounts receivable
Reinsurance contract reserves
receivable
Other receivables 253354062.17 264542514.16
Incl.: Interest receivable
Dividends receivable
Financial assets held under resale
agreements
Inventories 3806710623.33 3355543367.59
123AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 546110900.45 471343061.39
Total current assets 23133340372.60 23634762067.22
Non-current assets:
Loans and advances to clients
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 18780344.60 5588808.50
Investments in other equity instruments 1912854559.82 1301898858.01
Other non-current financial assets 482803322.86 346717946.00
Investment properties 557724115.50 585467490.84
Fixed assets 17494384350.63 15738449342.88
Construction in progress 2946557139.98 1382440351.02
Productive biological assets
Oil and gas assets
Right-of-use assets 70843868.30 87221618.86
Intangible assets 1515665988.78 1197608242.64
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill 78563171.00 20406065.22
Long-term deferred expenses 2971997.93 1949340.94
Deferred tax assets 132144483.47 139522526.08
Other non-current assets 502949056.73 100529181.72
Total non-current assets 25716242399.60 20907799772.71
Total assets 48849582772.20 44542561839.93
Current liabilities:
124AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Short-term borrowings 3925334770.72 3256896552.17
Borrowings from the central bank
Borrowings from banks and other
financial institutions
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 5661602306.85 5079448457.17
Advances from customers
Contract liabilities 32410207.62 59832456.69
Financial liabilities held under
repurchase agreements
Deposits from customers and other
banks
Proceeds from agency securities
transactions
Proceeds from agency underwriting
Employee benefits payable 869029794.71 895842644.24
Taxes payable 225339164.74 310057442.65
Other payables 1903549987.03 1584470358.11
Incl.: Interest payable
Dividends payable
Fees and commissions payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
13921869.7117386791.31
year
Other current liabilities
Total current liabilities 12631188101.38 11203934702.34
Non-current liabilities:
Insurance contract reserves
Long-term borrowings 375720008.30 179710003.01
Bonds payable
125AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Incl.: Preference shares
Perpetual bonds
Lease liabilities 60032708.13 72930502.99
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 390483172.88 359277511.49
Deferred tax liabilities 560980431.42 405200536.34
Other non-current liabilities 80831200.00
Total non-current liabilities 1468047520.73 1017118553.83
Total liabilities 14099235622.11 12221053256.17
Equity:
Share capital 2318051016.00 2318560816.00
Other equity instruments
Incl.: Preference shares
Perpetual bonds
Capital reserve 12773381186.63 12705150135.49
Less: Treasury shares 171228311.37 257454835.82
Other comprehensive income 631667978.88 224357558.25
Special reserve
Surplus reserve 1160218908.00 1160218908.00
General risk reserve
Undistributed profit 17424872405.03 15959010975.84
Total equity attributable to owners of the
34136963183.1732109843557.76
parent company
Non-controlling interests 613383966.92 211665026.00
Total equity 34750347150.09 32321508583.76
Total liabilities and equity 48849582772.20 44542561839.93
Legal Representative: Charles Shen Chief Financial Officer: XIAO Dewang Head of Accounting Department: XIAO Dewang
2. Standalone Balance Sheet
Unit: RMB
126AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Item Closing Balance Opening Balance
Current assets:
Cash and bank balances 5597421634.33 6209487932.15
Financial assets held for trading
Derivative financial assets
Notes receivable 117749008.81 62884294.68
Accounts receivable 4502781730.43 4665438351.23
Accounts receivable financing
Advances to suppliers 62872843.08 66097241.01
Other receivables 748858189.35 1501375896.77
Incl.: Interest receivable
Dividends receivable
Inventories 1009385724.11 832412354.81
Incl.: Data resources
Contract assets
Assets held for sale
Non-current assets due within one year
Other current assets 67234353.15 51196766.24
Total current assets 12106303483.26 13388892836.89
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investment 10281909302.54 8709471186.54
Investments in other equity instruments 1450197119.36 1051046047.00
Other non-current financial assets 121077000.00 57720000.00
Investment properties 557726045.20 585467490.84
Fixed assets 3499273662.21 3487364625.80
Construction in progress 81662346.23 56674397.14
Productive biological assets
Oil and gas assets
127AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Right-of-use assets 45352349.59 64415057.24
Intangible assets 883346097.65 936186584.75
Incl.: Data resources
Development expenses
Incl.: Data resources
Goodwill
Long-term deferred expenses
Deferred tax assets
Other non-current assets 78231498.19 2808643.39
Total non-current assets 16998775420.97 14951154032.70
Total assets 29105078904.23 28340046869.59
Current liabilities:
Short-term borrowings 0.00 52999938.94
Financial liabilities held for trading
Derivative financial liabilities
Notes payable
Accounts payable 3017243846.51 2962595898.88
Advances from customers
Contract liabilities 7687886.71 11192054.10
Employee benefits payable 255123906.17 293620368.44
Taxes payable 31790654.65 117280508.12
Other payables 427751891.39 561969943.67
Incl.: Interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within
19971004.5018833153.64
one year
Other current liabilities
Total current liabilities 3759569189.93 4018491865.79
Non-current liabilities:
Long-term borrowings
128AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Bonds payable
Incl.: Preference shares
Perpetual bonds
Lease liabilities 83244956.12 103215960.68
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income 273762181.13 238084235.43
Deferred tax liabilities 186603308.95 81746343.24
Other non-current liabilities
Total non-current liabilities 543610446.20 423046539.35
Total liabilities 4303179636.13 4441538405.14
Equity:
Share capital 2318051016.00 2318560816.00
Other equity instruments
Incl.: Preference shares
Perpetual bonds
Capital reserve 12935530570.63 12874226346.68
Less: Treasury shares 171228311.37 257454835.82
Other comprehensive income 310048077.07 64591539.95
Special reserve
Surplus reserve 1160218908.00 1160218908.00
Undistributed profit 8249279007.77 7738365689.64
Total equity 24801899268.10 23898508464.45
Total liabilities and equity 29105078904.23 28340046869.59
3. Consolidated Income Statement
Unit: RMB
Item 2025 2024
I. Total operating revenue 39147009392.27 35140384498.03
129AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Incl.: Operating revenue 39147009392.27 35140384498.03
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 35057287141.15 31126235586.83
Incl.: Operating cost 30730418442.09 27843625405.47
Interest expenses
Fee and commission expenses
Surrenders
Net payments for insurance claims
Net insurance contract reserves
Policyholder dividends
Reinsurance expenses
Taxes and surcharges 247824840.01 274538424.36
Selling expenses 272858591.14 215538088.04
Administrative expenses 1484265651.24 1204401327.56
R&D expenses 2458991706.79 2324474754.49
Financial expenses -137072090.12 -736342413.09
Incl.: Interest expenses 125035367.53 113651755.74
Interest income -434880480.59 -445274282.35
Add: Other income 147346650.09 129893027.52
Investment income (loss
14524964.869631033.35
expressed with “-”)
Incl.: Investment income
from associates and joint -3087631.90 316617.13
ventures
Gain on derecognition of
financial assets at
amortised cost
Exchange gain (loss expressed
with “-”)
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value 78050851.71 -39277221.73
130AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(loss expressed with “-”)
Credit impairment loss (loss
-1685190.892145663.73
expressed with “-”)
Impairment loss on assets (loss
-50343999.45-79727256.39
expressed with “-”)
Gain on disposal of assets (loss
15159360.906675515.13
expressed with “-”)
III. Operating profit (loss expressed with
4292774888.344043489672.81
“-”)
Add: Non-operating revenue 5479144.50 8302724.37
Less: Non-operating expenses 14485796.18 7327550.93
IV. Profit before tax (loss expressed with
4283768236.664044464846.25
“-”)
Less: Income tax expenses 570463311.10 425417104.53
V. Net profit (loss expressed with “-”) 3713304925.56 3619047741.72
(I) Classified by continuity of
operation
1. Net profit from continuing
3713304925.563619047741.72
operations (loss expressed with “-”)
2. Net profit from discontinued
0.000.00
operations (loss expressed with “-”)
(II) Classified by attribution
1. Net profit attributable to owners of
3737843458.403620351391.33
the parent company
2. Profit attributable to non-
-24538532.84-1303649.61
controlling interests
VI. Other comprehensive income net
458179792.12-37768936.24
after tax
Other comprehensive income
attributable to owners of the parent 453379407.42 -38372652.23
company net after tax
(I) Other comprehensive
income that cannot be 387852435.74 -45835972.13
reclassified to profit or loss
1. Changes arising from
remeasurement of defined
benefit plans
2. Other comprehensive
income that cannot be
reclassified to profit or loss
131AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
under the equity method
3. Change in fair value of
investments in other equity 387852435.74 -45835972.13
instruments
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive
income that will be reclassified 65526971.68 7463319.90
to profit or loss
1. Other comprehensive
income that can be reclassified
to profit or loss under the
equity method
2. Change in fair value of other
debt investments
3. Financial assets reclassified
to other comprehensive
income
4. Provision for credit
impairment of other debt
investments
5. Reserves for cash flow
hedge
6. Differences in translation of
foreign currency financial 65526971.68 7463319.90
statements
7. Others
Other comprehensive income
attributable to non-controlling 4800384.70 603715.99
interests net after tax
VII. Total comprehensive income 4171484717.68 3581278805.48
Total comprehensive income
attributable to owners of the parent 4191222865.82 3581978739.10
company
Total comprehensive income
attributable to non-controlling -19738148.14 -699933.62
interests
VIII. Earnings per share
(I) Basic earnings per share 1.61 1.56
(II) Diluted earnings per share 1.61 1.56
132AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Legal Representative: Charles Shen Chief Financial Officer: XIAO Dewang Head of Accounting Department: XIAO Dewang
4. Standalone Income Statement
Unit: RMB
Item 2025 2024
I. Operating revenue 17245296355.77 15298191700.27
Less: Operating cost 14797600742.65 12835643864.53
Taxes and surcharges 65152551.74 45736743.17
Selling expenses 69175539.03 65370786.67
Administrative expenses 422226045.65 452507843.85
R&D expenses 762561231.11 735737702.68
Financial expenses -111711843.36 -360496134.55
Incl.: Interest expenses 6580439.40 15571910.71
Interest income -269094955.44 -249621078.34
Add: Other income 85573322.15 91208495.40
Investment income (loss
1509436941.452001307000.00
expressed with “-”)
Incl.: Investment income
from associates and joint
ventures
Gain on
derecognition of
financial assets at
amortised cost
(loss expressed
with “-”)
Net exposure hedging income
(loss expressed with “-”)
Gain on changes in fair value
71294000.00-27650000.00
(loss expressed with “-”)
Credit impairment loss (loss
2802183.934061608.67
expressed with “-”)
Impairment loss on assets (loss
1689157.97-21103924.04
expressed with “-”)
Gain on disposal of assets (loss
11442865.546156001.76
expressed with “-”)
II. Operating profit (loss expressed with
2922530559.993577670075.71
“-”)
133AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Add: Non-operating revenue 975977.00 1976022.86
Less: Non-operating expenses 4771394.21 5470778.55
III. Profit before tax (loss expressed with
2918735142.783574175320.02
“-”)
Less: Income tax expenses 135839795.44 138361558.57
IV. Net profit (loss expressed with “-”) 2782895347.34 3435813761.45
(I) Net profit from continuing
2782895347.343435813761.45
operations (loss expressed with “-”)
(II) Net profit from discontinued
operations (loss expressed with “-”)
V. Other comprehensive income net after
291525523.91-43766301.10
tax
(I) Other comprehensive
income that cannot be 291525523.91 -43766301.10
reclassified to profit or loss
1. Changes arising from
remeasurement of defined
benefit plans
2. Other comprehensive
income that cannot be
reclassified to profit or loss
under the equity method
3. Change in fair value of
investments in other equity 291525523.91 -43766301.10
instruments
4. Change in fair value of the
corporation’s credit risk
5. Others
(II) Other comprehensive
income that will be reclassified
to profit or loss
1. Other comprehensive
income that can be reclassified
to profit or loss under the
equity method
2. Change in fair value of other
debt investments
3. Financial assets reclassified
to other comprehensive
income
4. Provision for credit
134AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
impairment of other debt
investments
5. Reserves for cash flow
hedge
6. Differences in translation of
foreign currency financial
statements
7. Others
VI. Total comprehensive income 3074420871.25 3392047460.35
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 sale of goods and
39460977357.3436289350371.72
rendering of services
Net increase in deposits from
customers and other banks
Net increase in borrowings from the
central bank
Net increase in borrowings from other
financial institutions
Cash received from insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interest fees and
commissions
Net increase in borrowings from banks
and other financial institutions
Net increase in funds from repurchase
agreements
Net cash received from agency
135AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
securities transactions
Refund of taxes and levies 1948617740.64 1164317015.55
Cash received relating to other
632771139.83687798276.19
operating activities
Sub-total of cash inflows from operating
42042366237.8138141465663.46
activities
Cash paid for purchase of goods and
26381034140.2523482528578.60
receipt of services
Net increase in loans and advances to
clients
Net increase in deposits with the central
bank and other banks
Cash paid for insurance claims under
original insurance contracts
Net increase in loans to banks and other
financial institutions
Cash paid for interest fees and
commissions
Cash paid for policyholder dividends
Cash paid to and on behalf of
5686664632.925062438996.46
employees
Payments of various taxes and levies 822085901.53 746597644.79
Cash paid relating to other operating
1866794278.061767476777.09
activities
Sub-total of cash outflows from operating
34756578952.7631059041996.94
activities
Net cash flows from operating activities 7285787285.05 7082423666.52
II. Cash flows from investing activities:
Cash received from disposal of
158005715.44590349281.27
investments
Cash received from investment income 19363450.03 17669361.41
Net cash received from disposal of
fixed assets intangible assets and other 56404254.94 79074064.62
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
investing activities
136AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Sub-total of cash inflows from
233773420.41687092707.30
investing activities
Cash paid for acquisition of fixed
assets intangible assets and other long- 6626316438.75 2844036380.56
term assets
Cash paid for investments 435549677.77 729379050.00
Net increase in loans secured by pledge
Net cash paid for acquisition of
229233928.3281659.09
subsidiaries and other business units
Cash paid relating to other investing
87267881.650.00
activities
Sub-total of cash outflows from investing
7378367926.493573497089.65
activities
Net cash flows from investing activities -7144594506.08 -2886404382.35
III. Cash flows from financing activities:
Cash received from capital
196559053.9027647221.45
contributions
Incl.: Cash received from minority
shareholders’ capital contributions to 196559053.90 27647221.45
subsidiaries
Cash received from borrowings 23191024205.20 19004082022.42
Cash received relating to other
0.00167617230.00
financing activities
Sub-total of cash inflows from
23387583259.1019199346473.87
financing activities
Cash repayments of borrowings 22362820024.89 19700390119.71
Cash paid for distribution of dividends
2442681033.741277219417.81
and profits or payment of interest
Incl.: Dividends and profits paid by
subsidiaries to minority shareholders
Cash paid relating to other financing
28748506.4149139641.22
activities
Sub-total of cash outflows from financing
24834249565.0421026749178.74
activities
Net cash flows from financing activities -1446666305.94 -1827402704.87
IV. Effect of foreign exchange rate
-222922436.33136317616.39
changes on cash and cash equivalents
V. Net increase in cash and cash -1528395963.30 2504934195.69
137AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
equivalents
Add: Cash and cash equivalents at
13393976259.2410889042063.55
beginning of the period
VI. Cash and cash equivalents at end of
11865580295.9413393976259.24
the period
6. Standalone Cash Flow Statement
Unit: RMB
Item 2025 2024
I. Cash flows from operating activities:
Cash received from sale of goods and
17522361349.0815656629262.49
rendering of services
Refund of taxes and levies 613121575.75 331916306.73
Cash received relating to other
343359347.22368878901.28
operating activities
Sub-total of cash inflows from operating
18478842272.0516357424470.50
activities
Cash paid for purchase of goods and
14329693144.8211940463955.42
receipt of services
Cash paid to and on behalf of
1649658213.661445912303.51
employees
Payments of various taxes and levies 278035552.45 183454218.63
Cash paid relating to other operating
258042598.39106059963.64
activities
Sub-total of cash outflows from operating
16515429509.3213675890441.20
activities
Net cash flows from operating activities 1963412762.73 2681534029.30
II. Cash flows from investing activities:
Cash received from disposal of
1601258021.982683500000.00
investments
Cash received from investment income 1590107248.96 2095554142.13
Net cash received from disposal of
fixed assets intangible assets and other 18332583.35 11217625.03
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Cash received relating to other
138AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
investing activities
Sub-total of cash inflows from investing
3209697854.294790271767.16
activities
Cash paid for acquisition of fixed
assets intangible assets and other long- 972597111.14 656447542.54
term assets
Cash paid for investments 1956555993.41 1492100000.00
Net cash paid for acquisition of
356724164.000.00
subsidiaries and other business units
Cash paid relating to other investing
activities
Sub-total of cash outflows from investing
3285877268.552148547542.54
activities
Net cash flows from investing activities -76179414.26 2641724224.62
III. Cash flows from financing activities:
Cash received from capital
contributions
Cash received from borrowings 197501953.75
Cash received relating to other
167617230.00
financing activities
Sub-total of cash inflows from
365119183.75
financing activities
Cash repayments of borrowings 52501953.75 1190000000.00
Cash paid for distribution of dividends
2319584184.771165084880.66
and profits or payment of interest
Cash paid relating to other financing
28040248.8048364523.03
activities
Sub-total of cash outflows from financing
2400126387.322403449403.69
activities
Net cash flows from financing activities -2400126387.32 -2038330219.94
IV. Effect of foreign exchange rate
-103137894.7142004040.03
changes on cash and cash equivalents
V. Net increase in cash and cash
-616030933.563326932074.01
equivalents
Add: Cash and cash equivalents at
6193464200.962866532126.95
beginning of the period
VI. Cash and cash equivalents at end of
5577433267.406193464200.96
the period
139AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
7. Consolidated Statement of Changes in Equity
Current Period
Unit: RMB
2025
Equity Attributable to Owners of the Parent Company
Item
Minority
Other Total Equity
Less: Treasury Undistributed Interests
Share Capital Capital Reserve Comprehensive Surplus Reserve Subtotal
Shares Profit
Income
I. Balance at
the end of the 2318560816.00 12705150135.49 257454835.82 224357558.25 1160218908.00 15959010975.84 32109843557.76 211665026.00 32321508583.76
prior year
II. Balance at
the beginning 2318560816.00 12705150135.49 257454835.82 224357558.25 1160218908.00 15959010975.84 32109843557.76 211665026.00 32321508583.76
of the year
III.Movements
for the year
-509800.0068231051.14-86226524.45407310420.631465861429.192027119625.41401718940.922428838566.33
(decrease
expressed with
“-”)
(I) Total
comprehensive 453379407.42 3737843458.40 4191222865.82 -19738148.14 4171484717.68
income
(II) Capital
contributions -509800.00 76470882.17 -8858236.36 84819318.53 420632839.72 505452158.25
and reductions
140AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
by owners
1. Ordinary
shares
-509800.00-2351081.83-8858236.365997354.53420632839.72426630194.25
contributed by
owners
2. Capital
contributed by
holders of
other equity
instruments
3. Share-based
payments
78821964.000.0078821964.0078821964.00
recognized in
equity
(III) Profit
-2318051016.00-2318051016.00-2318051016.00
distribution
1.
Distributions
-2318051016.00-2318051016.00-2318051016.00
to owners (or
shareholders)
(IV) Internal
transfers -46068986.79 46068986.79 0.00
within equity
5. Transfer of
other
comprehensive
-46068986.7946068986.790.00
income to
retained
earnings
(VI) Others -8239831.03 -77368288.09 69128457.06 824249.34 69952706.40
141AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
IV. Balance at
the end of the 2318051016.00 12773381186.63 171228311.37 631667978.88 1160218908.00 17424872405.03 34136963183.17 613383966.92 34750347150.09
year
Prior Period
Unit: RMB
2024
Equity Attributable to Owners of the Parent Company
Item
Minority
Other Total Equity
Less: Treasury Undistributed Interests
Share Capital Capital Reserve Comprehensiv Surplus Reserve Subtotal
Shares Profit
e Income
I. Balance at
the end of the 2320437816.00 12702407870.49 288312715.82 262730210.48 1160218908.00 13493205042.51 29650687131.66 24717738.17 29675404869.83
prior year
II. Balance at
the beginning 2320437816.00 12702407870.49 288312715.82 262730210.48 1160218908.00 13493205042.51 29650687131.66 24717738.17 29675404869.83
of the year
III.Movements
for the year
-1877000.002742265.00-30857880.00-38372652.232465805933.332459156426.10186947287.832646103713.93
(decrease
expressed
with “-”)
(I) Total
comprehensiv -38372652.23 3620351391.33 3581978739.10 -699933.62 3581278805.48
e income
(II) Capital
contributions
-1877000.002742265.00-30857880.0031723145.00187647221.45219370366.45
and reductions
by owners
142AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
1. Ordinary
shares
-1877000.00-28980880.00-30857880.000.00187647221.45187647221.45
contributed by
owners
3. Share-based
payments
31723145.00
recognized in
equity
(III) Profit
-1154545458.00-1154545458.00-1154545458.00
distribution
3.
Distributions
-1154545458.00-1154545458.00-1154545458.00
to owners (or
shareholders)
IV. Balance at
the end of the 2318560816.00 12705150135.49 257454835.82 224357558.25 1160218908.00 15959010975.84 32109843557.76 211665026.00 32321508583.76
year
8. Standalone Statement of Changes in Equity
Current Period
Unit: RMB
2025
Item Other
Less: Treasury
Share Capital Capital Reserve Comprehensive Surplus Reserve Undistributed Profit Total Equity
Shares
Income
I. Balance at the
end of the prior 2318560816.00 12874226346.68 257454835.82 64591539.95 1160218908.00 7738365689.64 23898508464.45
year
143AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
II. Balance at the
beginning of the 2318560816.00 12874226346.68 257454835.82 64591539.95 1160218908.00 7738365689.64 23898508464.45
year
III. Movements for
the year (decrease
-509800.0061304223.95-86226524.45245456537.12510913318.13903390803.65
expressed with
“-”)
(I) Total
comprehensive 291525523.91 2782895347.34 3074420871.25
income
(II) Capital
contributions and
-509800.0070473527.64-8858236.3678821964.00
reductions by
owners
1. Ordinary shares
contributed by -509800.00 -8348436.36 -8858236.36 0.00
owners
2. Share-based
payments
78821964.00078821964.00
recognized in
equity
(III) Profit
-2318051016.00-2318051016.00
distribution
1. Distributions to
owners (or -2318051016.00 -2318051016.00
shareholders)
(IV) Internal
transfers within -46068986.79 46068986.79
equity
144AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(V) Others -9169303.69 -77368288.09 68198984.40
1. Transfer of
other
comprehensive -46068986.79 46068986.79
income to retained
earnings
IV. Balance at the
2318051016.0012935530570.63171228311.37310048077.071160218908.008249279007.7724801899268.10
end of the year
Prior Period
Unit: RMB
2024
Item Other
Less: Treasury
Share Capital Capital Reserve Comprehensive Surplus Reserve Undistributed Profit Total Equity
Shares
Income
I. Balance at the
end of the prior 2320437816.00 12871484081.68 288312715.82 108357841.05 1160218908.00 5457097386.19 21629283317.10
year
II. Balance at the
beginning of the 2320437816.00 12871484081.68 288312715.82 108357841.05 1160218908.00 5457097386.19 21629283317.10
year
III. Movements for
the year (decrease
-1877000.002742265.00-30857880.00-43766301.102281268303.452269225147.35
expressed with
“-”)
(I) Total
comprehensive -43766301.10 3435813761.45 3392047460.35
income
(II) Capital -1877000.00 2742265.00 -30857880.00 31723145.00
145AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
contributions and
reductions by
owners
1. Ordinary shares
contributed by -1877000.00 -28980880.00 -30857880.00 0.00
owners
2. Share-based
payments
31723145.0031723145.00
recognized in
equity
(III) Profit
-1154545458.00-1154545458.00
distribution
1. Others -1154545458.00 -1154545458.00
IV. Balance at the
2318560816.0012874226346.68257454835.8264591539.951160218908.007738365689.6423898508464.45
end of the year
146AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
III. COMPANY INFORMATION
1. Place of Registration Organizational Form and Headquarters AddressAvary Holding (Shenzhen) Co. Ltd. was formerly known as Fu Kui Precision Components (Shenzhen) Co. Ltd. (the “FormerCompany”) which was established with capital contributed by Coppertone Enterprises Limited (“Coppertone”) and approved by the
Shenzhen Municipal People’s Government under the approval document Wai Jing Mao Yue Shen Wai Zi Zheng Zi [1999] No. 0120.The Former Company was formally incorporated on April 29 1999. Pursuant to the resolution of the board of directors of the Former
Company dated April 28 2017 and the promoters’ agreement the Former Company resolved to be converted into a joint stock company.The Company was listed on the Shenzhen Stock Exchange on September 18 2018.As of December 31 2025 the Company had issued a total of 2318051016 shares with registered capital of RMB 2318.051016
million. Registered address: 27/F Block A Avary Times Tower No. 2038 Haixiu Road Haibin Community Xin’an Subdistrict Bao’an
District Shenzhen. Headquarters address: Block A Avary Times Tower No. 2038 Haixiu Road Haibin Community Xin’an Subdistrict
Bao’an District Shenzhen.The parent company of the Company is Mayco Industrial Limited and the ultimate controlling party is Zhen Ding Technology Holding
Limited.
2. Nature of Business and Principal Operating Activities
The approved business scope of the Company and its subsidiaries (collectively the “Group”) includes research production
development and sale of automation equipment and components precision molds and parts new electronic components new
instrument components various types of printed circuit boards and electronic information product boards; self-owned property leasing;
warehousing services; wholesale import and export of electronic information products and boards and related ancillary services
(excluding state-traded goods; for goods subject to quota license or other special regulatory requirements such shall be applied for in
accordance with relevant state regulations); water pollution control; environmental consulting services; real estate development and
operation etc.
3. Scope of Consolidation
Details of the principal subsidiaries included in the scope of consolidation for the year are set out in IX. Interests in Other Entities.
4. Approval of the Financial Statements for Issue
These financial statements were approved for issue by the Board of Directors of the Company on March 30 2026.IV. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
1. Basis of Preparation
These financial statements have been prepared in accordance with the Accounting Standards for Business Enterprises — Basic Standard
specific accounting standards and related regulations (collectively the “Accounting Standards for Business Enterprises”) promulgated
by the Ministry of Finance on February 15 2006 and subsequently as well as the disclosure requirements set out in the Preparation
Convention No. 15 for Information Disclosure by Companies Publicly Issuing Securities — General Provisions on Financial Reporting
issued by the China Securities Regulatory Commission.
2. Going Concern
These financial statements have been prepared on a going concern basis.V. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
Disclosure of Specific Accounting Policies and Accounting Estimates:
The Group has determined its specific accounting policies and accounting estimates based on the characteristics of its production and
operations which are mainly reflected in the measurement of expected credit losses on receivables the costing method for inventories
depreciation of fixed assets and investment properties amortization of intangible assets and right-of-use assets the criteria for
147AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
capitalization of development expenditure the point in time at which revenue is recognized etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company for the year ended December 31 2025 comply with the requirements of the Accounting
Standards for Business Enterprises and present truly and completely the consolidated and company financial position of the Company
as of December 31 2025 and the consolidated and company results of operations and cash flows for the year then ended and other
relevant information.
2. Accounting Period
The accounting year runs from January 1 to December 31 of the Gregorian calendar.
3. Functional Currency
The functional currency of the Company and its subsidiaries within Mainland China is Renminbi (RMB). Each of the Group’s
subsidiaries outside Mainland China determines its own functional currency based on the primary economic environment in which it
operates being principally the United States Dollar (USD) New Taiwan Dollar (NTD) Thai Baht (THB) and Indian Rupee (INR)
etc. These financial statements are presented in RMB.
4. Methods for Determining Materiality Thresholds and Selection Basis
? Applicable □ Not applicable
Item Materiality Threshold
Significant current account balances with aging exceeding 1 Individual current account balances with aging exceeding 1 year
year and overdue and overdue exceeding 5% of profit before tax
Non-controlling interests’ share of profit or loss exceeding 15%
Subsidiaries with significant non-controlling interests
of consolidated net profit
Carrying amount of individual long-term equity investment
Significant associates
exceeding 15% of the Group’s net assets
Budgeted amount of individual construction in progress project
Significant construction in progress projects
exceeding 0.5% of total assets
5. Accounting Treatment of Business Combinations Involving Enterprises Under Common Control and Not
Under Common Control
(a) Business Combinations Involving Enterprises Under Common Control
The consideration paid and net assets acquired by the Group are measured at carrying amounts. If the acquiree was previously acquired
by the ultimate controlling party from a third party the assets and liabilities of the acquiree (including goodwill arising from the
acquisition of the acquiree by the ultimate controlling party) are measured at their carrying amounts in the consolidated financial
statements of the ultimate controlling party. The difference between the carrying amount of the net assets acquired and the carrying
amount of the consideration paid is adjusted against capital reserve (share premium); where the capital reserve (share premium) is
insufficient to absorb the difference surplus reserve and undistributed profit are reduced successively. Directly attributable costs
incurred for the business combination are recognized in profit or loss for the period in which they are incurred. Transaction costs
associated with the issuance of equity securities or debt securities for the business combination are included in the initial recognition
amount of the equity securities or debt securities.(b) Business Combinations Not Involving Enterprises Under Common Control
148AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The cost of combination and the identifiable net assets acquired in a business combination are measured at fair value at the acquisition
date. The excess of the cost of combination over the Group’s share of the fair value of the identifiable net assets of the acquiree at the
acquisition date is recognized as goodwill. The excess of the Group’s share of the fair value of the identifiable net assets of the acquiree
over the cost of combination is recognized in profit or loss. Directly attributable costs incurred for the business combination are
recognized in profit or loss for the period in which they are incurred. Transaction costs associated with the issuance of equity securities
or debt securities for the business combination are included in the initial recognition amount of the equity securities or debt securities.
6. Criteria for Determining Control and Method of Preparing Consolidated Financial Statements
In preparing the consolidated financial statements the scope of consolidation includes the Company and all of its subsidiaries.The Group begins to include a subsidiary in the scope of consolidation from the date on which it obtains actual control over the
subsidiary and ceases to do so from the date on which it loses actual control. For a subsidiary acquired through a business combination
involving enterprises under common control it is included in the scope of consolidation from the date on which it and the Company
come under common control of the ultimate controlling party and its net profit realized prior to the date of the business combination
is presented as a separate line item in the consolidated income statement.In preparing the consolidated financial statements where the accounting policies or accounting periods of a subsidiary differ from
those adopted by the Company the financial statements of the subsidiary are adjusted as necessary in accordance with the accounting
policies and accounting period of the Company. For a subsidiary acquired through a business combination not involving enterprises
under common control the financial statements of the subsidiary are adjusted based on the fair value of the identifiable net assets at
the acquisition date.All significant intra-group balances transactions and unrealized profits are eliminated on consolidation. The portion of the shareholders’
equity net profit or loss for the period and total comprehensive income of a subsidiary not attributable to the Company is presented
separately as non-controlling interests profit attributable to non-controlling interests and total comprehensive income attributable to
non-controlling interests respectively under the headings of shareholders’ equity net profit and total comprehensive income in the
consolidated financial statements. Where the loss for the period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders’ share of the opening owners’ equity of that subsidiary the excess is charged against non-controlling interests.Unrealized profits or losses on internal transactions arising from sales of assets by the Company to a subsidiary are fully eliminated
against net profit attributable to owners of the parent company. Unrealized profits or losses on internal transactions arising from sales
of assets by a subsidiary to the Company are allocated and eliminated between net profit attributable to owners of the parent company
and profit attributable to non-controlling interests based on the Company’s allocation ratio in that subsidiary. Unrealized profits or
losses on internal transactions arising from sales of assets between subsidiaries are allocated and eliminated between net profit
attributable to owners of the parent company and profit attributable to non-controlling interests based on the parent company’s
allocation ratio in the selling subsidiary. When the relevant subsidiary is disposed of and control is lost the above internal transaction
profits or losses are realized and the Group adjusts the profit or loss for the current period in respect of the disposal of the subsidiary
accordingly.If the recognition of an identical transaction differs when the Group is used as the accounting entity compared with when the Company
or a subsidiary is used the transaction is adjusted from the Group’s perspective.Where the Group acquires all or part of the non-controlling interests held by the minority shareholders of a subsidiary the assets and
liabilities of the subsidiary continue to be reflected at the amounts calculated on a continuous basis from the acquisition date or the
date of the business combination. The difference between the additional long-term equity investment arising from the acquisition of
non-controlling interests and the share of the net assets of the subsidiary calculated on a continuous basis from the acquisition date or
the date of the business combination corresponding to the newly acquired shareholding percentage is adjusted against capital reserve
(capital premium or share premium). Where the capital reserve is insufficient to absorb the difference surplus reserve and undistributed
profit are reduced successively.
7. Criteria for Determining Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand deposits that are readily available for payment and short-term highly liquid
investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
8. Foreign Currency Transactions and Translation of Foreign Currency Financial Statements
(a) Foreign Currency Transactions
149AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.At the balance sheet date foreign currency monetary items are translated into the functional currency using the spot exchange rates
prevailing at the balance sheet date. Exchange differences arising from foreign currency borrowings specifically borrowed for the
acquisition or construction of assets qualifying for capitalization of borrowing costs are capitalized during the capitalization period. All
other exchange differences are recognized directly in profit or loss. Foreign currency non-monetary items measured at historical cost
are translated at the spot exchange rates at the dates of the transactions. The effect of exchange rate changes on cash is presented
separately in the cash flow statement.(b) Translation of Foreign Currency Financial Statements
The asset and liability items in the balance sheets of foreign operations are translated at the spot exchange rates prevailing at the balance
sheet date. Equity items other than undistributed profit are translated at the spot exchange rates at the dates on which they arose.Revenue and expense items in the income statements of foreign operations are translated at the average exchange rates for the period.The exchange differences arising from the above translation are recognized in other comprehensive income. The cash flow items of
foreign operations are translated at the average exchange rates for the period when the cash flows occurred. The effect of exchange rate
changes on cash is presented separately in the cash flow statement.
9. Financial Instruments
Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another
entity. The Group recognizes a financial asset financial liability or equity instrument when it becomes a party to the contractual
provisions of the financial instrument.(a) Financial Assets
(i) Classification and Measurement
Based on the business model for managing financial assets and the contractual cash flow characteristics of the financial assets the
Group classifies financial assets into: (1) financial assets measured at amortised cost; (2) financial assets measured at fair value through
other comprehensive income; and (3) financial assets measured at fair value through profit or loss.Financial assets are measured at fair value on initial recognition. For financial assets measured at fair value through profit or loss
related transaction costs are recognized directly in profit or loss. For financial assets of other categories related transaction costs are
included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of products or rendering of
services that do not contain or are not considered to contain a significant financing component the Group measures them initially at
the amount of consideration that it expects to be entitled to receive.Debt Instruments
Debt instruments held by the Group are instruments that meet the definition of a financial liability from the issuer’s perspective and
are measured using the following three methods:
Measured at Amortized Cost:
The Group’s business model for managing such financial assets is to hold the assets to collect contractual cash flows and the contractual
cash flow characteristics of such financial assets are consistent with a basic lending arrangement i.e. the contractual cash flows on
specified dates are solely payments of principal and interest on the principal amount outstanding. The Group recognizes interest income
on such financial assets using the effective interest method. Such financial assets mainly comprise cash and bank balances notes
receivable accounts receivable and other receivables.Measured at Fair Value Through Other Comprehensive Income:
The Group’s business model for managing such financial assets is both to hold the assets to collect contractual cash flows and to sell
the assets and the contractual cash flow characteristics of such financial assets are consistent with a basic lending arrangement. Such
financial assets are measured at fair value with changes recognized in other comprehensive income except for impairment gains or
losses exchange gains or losses and interest income calculated using the effective interest method which are recognized in profit or
loss. Such financial assets mainly comprise accounts receivable financing.Measured at Fair Value Through Profit or Loss:
Debt instruments that are not classified as measured at amortised cost or at fair value through other comprehensive income are measured
at fair value through profit or loss. On initial recognition to eliminate or significantly reduce an accounting mismatch the Group may
designate certain financial assets as measured at fair value through profit or loss. Those with a maturity exceeding one year from the
balance sheet date and expected to be held for more than one year are presented as other non-current financial assets and the remainder
are presented as financial assets held for trading.
150AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Equity Instruments
The Group measures investments in equity instruments over which it does not exercise control joint control or significant influence at
fair value through profit or loss presented as financial assets held for trading. Those expected to be held for more than one year from
the balance sheet date are presented as other non-current financial assets.In addition the Group irrevocably designates certain investments in non-trading equity instruments on initial recognition as financial
assets at fair value through other comprehensive income presented as investments in other equity instruments. Dividend income from
such financial assets is recognized in profit or loss.(ii) Impairment
The Group recognizes loss allowances for financial assets measured at amortised cost debt instrument investments measured at fair
value through other comprehensive income contract assets and lease receivables based on expected credit losses.The Group considers reasonable and supportable information including information about past events current conditions and forecasts
of future economic conditions that is available without undue cost or effort at the balance sheet date. The expected credit loss is
measured as the probability-weighted amount of the present value of the difference between the contractual cash flows receivable and
the cash flows expected to be received using the risk of default as the weight.For notes receivable accounts receivable and accounts receivable financing arising from ordinary course operating activities such as
the sale of goods and rendering of services irrespective of whether a significant financing component exists the Group measures the
loss allowance based on the expected credit losses over the entire lifetime.Other than the above notes receivable accounts receivable accounts receivable financing and lease receivables at each balance sheet
date the Group measures the expected credit losses separately for financial instruments in different stages. A financial instrument
whose credit risk has not increased significantly since initial recognition is classified as Stage 1 and the Group measures the loss
allowance based on the 12-month expected credit losses. A financial instrument whose credit risk has increased significantly since
initial recognition but has not become credit-impaired is classified as Stage 2 and the Group measures the loss allowance based on the
expected credit losses over the entire lifetime. A financial instrument that has become credit-impaired since initial recognition is
classified as Stage 3 and the Group measures the loss allowance based on the expected credit losses over the entire lifetime.For financial instruments with low credit risk at the balance sheet date the Group assumes that their credit risk has not increased
significantly since initial recognition and classifies them as Stage 1 measuring the loss allowance based on the 12-month expected
credit losses.For financial instruments in Stage 1 and Stage 2 the Group calculates interest income based on their gross carrying amounts before
deducting impairment provisions and the effective interest rate. For financial instruments in Stage 3 the Group calculates interest
income based on their amortised cost being the gross carrying amount less the impairment provision recognized and the effective
interest rate.For various types of financial assets for which expected credit losses are assessed on an individual basis their credit risk characteristics
are significantly different from those of other financial assets within the same category. When information for assessing expected credit
losses on an individual financial asset basis cannot be obtained at a reasonable cost the Group groups trade receivables into several
portfolios based on credit risk characteristics and calculates expected credit losses on a portfolio basis. The basis for determining the
portfolios is as follows:
Notes receivable portfolio Bank acceptance bills trade acceptance bills
Accounts receivable financing portfolio Bank acceptance bills
Accounts receivable portfolio Sales customers with the initial recognition date as the starting point for aging
Other receivables portfolio Deposits and guarantees etc.For accounts receivable and notes receivable arising from ordinary course operating activities such as the sale of goods and rendering
of services that are classified into portfolios the Group calculates expected credit losses with reference to historical credit loss
experience combined with current conditions and forecasts of future economic conditions by compiling a mapping table of overdue
days of accounts receivable against expected credit loss rates over the entire lifetime. For other notes receivable accounts receivable
financing and other receivables classified into portfolios the Group calculates expected credit losses with reference to historical credit
loss experience combined with current conditions and forecasts of future economic conditions by reference to the default risk exposure
and the 12-month or entire lifetime expected credit loss rates.The Group recognizes the provision or reversal of loss allowance in profit or loss. For debt instruments held by the Group and measured
at fair value through other comprehensive income the Group adjusts other comprehensive income while recognizing impairment loss
151AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
or gain in profit or loss.(iii) Derecognition
A financial asset is derecognized when one of the following conditions is met: (1) the contractual rights to receive the cash flows from
the financial asset expire; (2) the financial asset has been transferred and the Group transfers substantially all the risks and rewards of
ownership of the financial asset to the transferee; or (3) the financial asset has been transferred and although the Group neither transfers
nor retains substantially all the risks and rewards of ownership of the financial asset it relinquishes control over the financial asset.When an investment in other equity instruments is derecognized the difference between its carrying amount and the sum of the
consideration received and the cumulative amount of changes in fair value previously recognized in other comprehensive income is
recognized in retained earnings. When other financial assets are derecognized the difference between their carrying amount and the
sum of the consideration received and the cumulative amount of changes in fair value previously recognized in other comprehensive
income is recognized in profit or loss.(b) Financial Liabilities
Financial liabilities are classified on initial recognition as financial liabilities measured at amortised cost and financial liabilities
measured at fair value through profit or loss.The Group’s financial liabilities are primarily financial liabilities measured at amortised cost including accounts payable other
payables and borrowings. Such financial liabilities are initially measured at fair value less transaction costs and are subsequently
measured using the effective interest method. Those with a maturity of one year or less (inclusive) are presented as current liabilities.Those with a maturity of more than one year but maturing within one year (inclusive) from the balance sheet date are presented as non-
current liabilities due within one year. The remainder are presented as non-current liabilities.When the present obligation under a financial liability is discharged in whole or in part the Group derecognizes the financial liability
or the discharged part. The difference between the carrying amount of the derecognized part and the consideration paid is recognized
in profit or loss.(c) Determination of Fair Value of Financial Instruments
For financial instruments with an active market their fair value is determined using quoted prices in the active market. For financial
instruments without an active market their fair value is determined using valuation techniques. In conducting the valuation the Group
uses valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to
support selects inputs that are consistent with the characteristics of the assets or liabilities that market participants would consider in
a transaction for the relevant assets or liabilities and gives priority to the use of relevant observable inputs wherever possible.Unobservable inputs are used only when relevant observable inputs are not available or it is impracticable to obtain them.
10. Notes Receivable
Refer to 9. Financial Instruments.
11. Accounts Receivable
Refer to 9. Financial Instruments.
12. Accounts Receivable Financing
Refer to 9. Financial Instruments.
13. Other Receivables
Method for determining expected credit losses on other receivables and the accounting treatment thereof:
Refer to 9. Financial Instruments.
152AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
14. Inventories
(a) Classification
Inventories include raw materials work in progress finished goods and self-manufactured semi-finished products and are measured
at the lower of cost and net realizable value.(b) Costing Method for Inventories Issued
The cost of inventories upon issuance is calculated using the weighted average method. The cost of finished goods and work in progress
includes raw materials direct labor and an allocation of manufacturing overheads based on normal production capacity using a
systematic method.(c) Basis for Determining Net Realizable Value of Inventories and Method of Recognizing Provision for Impairment of Inventories
A provision for impairment of inventories is recognized for the amount by which the cost of inventories exceeds their net realizable
value. Net realizable value is determined based on the estimated selling price in the ordinary course of business less the estimated
costs to be incurred to completion estimated contract fulfillment costs selling expenses and related taxes and levies. For inventories
that are produced and sold in the same region and have similar or identical end uses the Group recognizes the provision for impairment
of inventories on an aggregated basis. The Group recognizes the provision for impairment of inventories based on factors such as aging
storage conditions historical sales discount situation and estimated future sales conditions.(d) The Group’s inventory counting system is the perpetual inventory system.
15. Debt Investments
Refer to 9. Financial Instruments.
16. Long-Term Equity Investments
Long-term equity investments comprise: the Company’s long-term equity investments in subsidiaries; and the Group’s long-term equity
investments in associates.Subsidiaries are investees over which the Company is able to exercise control. Associates are investees over which the Group is able
to exercise significant influence over their financial and operating policies.Investments in subsidiaries are measured using the cost method in the Company’s financial statements and are adjusted to the equity
method when preparing the consolidated financial statements. Investments in associates are accounted for using the equity method.(a) Determination of Investment Cost
For a long-term equity investment arising from a business combination involving enterprises under common control the investment
cost is the share of the owners’ equity of the acquiree in the consolidated financial statements of the ultimate controlling party at the
date of the business combination. For a long-term equity investment arising from a business combination not involving enterprises
under common control the investment cost is the cost of combination.For a long-term equity investment obtained by means other than a business combination: a long-term equity investment obtained by
payment of cash is initially measured at the actual purchase price paid; a long-term equity investment obtained through the issuance of
equity securities is initially measured at the fair value of the equity securities issued.(b) Subsequent Measurement and Method of Recognizing Profit or Loss
For a long-term equity investment accounted for using the cost method it is measured at the initial investment cost. Cash dividends or
profits declared by the investee are recognized as investment income in profit or loss.For a long-term equity investment accounted for using the equity method if the initial investment cost exceeds the Group’s share of
the fair value of the identifiable net assets of the investee at the time of the investment the initial investment cost is used as the cost of
the long-term equity investment. If the initial investment cost is less than the Group’s share of the fair value of the identifiable net
assets of the investee at the time of the investment the difference is recognized in profit or loss and the cost of the long-term equity
investment is adjusted upward accordingly.For a long-term equity investment accounted for using the equity method the Group recognizes its share of the net profit or loss of the
investee as investment income or loss for the period. If the investee incurs a net loss the carrying amount of the long-term equity
investment and other long-term interests that in substance form part of the net investment in the investee are reduced to zero unless
153AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
the Group has the obligation to assume additional losses and the conditions for recognizing a provision are met in which case the
Group continues to recognize the estimated amount of losses to be assumed. Other changes in the owners’ equity of the investee other
than net profit or loss other comprehensive income and profit distribution are adjusted against the carrying amount of the long-term
equity investment and recognized in capital reserve. Profits or cash dividends declared by the investee reduce the carrying amount of
the long-term equity investment by the Group’s share.Unrealized profits or losses on internal transactions between the Group and an investee are eliminated to the extent of the Group’s
shareholding percentage in the investee and the investment income or loss is recognized on this basis. In preparing the consolidated
financial statements for upstream transactions involving the Group selling assets to or contributing assets to an investee the unrealized
profit or loss attributable to the Group is eliminated on the basis of the elimination in the Company’s financial statements by eliminating
the corresponding portion of unrealized revenue and cost or asset disposal gain or loss and adjusting the investment income accordingly.For downstream transactions involving an investee selling assets to or contributing assets to the Group the unrealized profit or loss
attributable to the Group is eliminated on the basis of the elimination in the Company’s financial statements by eliminating the
corresponding portion of unrealized profit or loss included in the carrying amount of the relevant assets and adjusting the carrying
amount of the long-term equity investment accordingly. In respect of internal transaction losses between the Group and an investee
the corresponding unrealized loss to the extent of an asset impairment loss is not eliminated.(c) Basis for Determining Whether the Group Exercises Control or Significant Influence over an Investee
Control exists when the Group has power over the investee is exposed to or has rights to variable returns from its involvement with
the investee and has the ability to affect those returns through its power over the investee.Significant influence exists when the Group has the power to participate in the financial and operating policy decisions of the investee
but does not have control or joint control over the formulation of those policies.(d) Impairment of Long-Term Equity Investments
The carrying amounts of long-term equity investments in subsidiaries and associates are reduced to their recoverable amounts when
the recoverable amounts are lower than their carrying amounts.
17. Investment Properties
Measurement model for investment properties
Cost method
Depreciation or amortization method
Investment properties include buildings held for the purpose of earning rental income and are initially measured at cost. Subsequent
expenditure relating to investment properties is included in the cost of the investment properties when it is probable that the economic
benefits associated with the expenditure will flow to the Group and the cost can be measured reliably; otherwise it is recognized in
profit or loss in the period in which it is incurred.The Group adopts the cost model for the subsequent measurement of all investment properties with depreciation provided on buildings
based on their estimated useful lives and estimated net residual value rates. The estimated useful lives estimated net residual value
rates and annual depreciation rates of investment properties are set out below:
Estimated Net Residual Value
Estimated Useful Life Annual Depreciation Rate
Rate
Buildings and related land use rights 24.75 years - 4.04%
When the use of an investment property changes to owner-occupied the investment property is transferred to fixed assets or intangible
assets from the date of the change. When the use of an owner-occupied property changes to earning rental income or capital appreciation
the fixed asset or intangible asset is transferred to investment properties from the date of the change. Upon transfer the carrying amount
before the transfer is used as the carrying amount after the transfer.The estimated useful lives estimated net residual values and depreciation methods of investment properties are reviewed at the end of
each year and adjusted as appropriate.An investment property is derecognized when it is disposed of or permanently withdrawn from use and no future economic benefits
are expected from its disposal. The difference between the disposal proceeds net of the carrying amount and related taxes and levies
of the sale transfer retirement or destruction of an investment property is recognized in profit or loss.When the recoverable amount of an investment property is lower than its carrying amount the carrying amount is reduced to the
154AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
recoverable amount.
18. Fixed Assets
(1) Recognition Criteria
Fixed assets comprise land buildings and structures machinery and equipment transportation vehicles computer and electronic
equipment and other equipment.Fixed assets are recognised when it is probable that the economic benefits associated with the assets will flow to the Group and the
cost of the assets can be measured reliably. Fixed assets acquired or constructed are initially measured at cost at the time of acquisition
or construction.Subsequent expenditures relating to fixed assets are included in the cost of fixed assets when it is probable that the associated economic
benefits will flow to the Group and the cost can be measured reliably. The carrying amount of the replaced part is derecognised. All
other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
(2) Depreciation Method
Category Depreciation method Useful life Residual value rate Annual depreciation
rate
Land Straight-line method Indefinite - -
Buildings and Straight-line method 5-51 years 0% or 1% 1.94%-20.00%
structures
Machinery and Straight-line method 2-10 years 0% or 1% 9.90%-50.00%
equipment
Transportation vehicles Straight-line method 2-10 years 0% or 1% 9.90%-50.00%
Computer and Straight-line method 2-10 years 0% or 1% 9.90%-50.00%
electronic equipment
Other equipment Straight-line method 3-15 years 0% or 1% 6.60%-33.33%
Fixed assets are depreciated using the straight-line method over their estimated useful lives after taking into account their estimated
residual values. For fixed assets for which impairment provisions have been recognised depreciation is determined based on the
carrying amount net of impairment provision and the remaining useful life.The estimated useful lives estimated residual values and depreciation methods of fixed assets are reviewed and adjusted as appropriate
at the end of each financial year.When the recoverable amount of a fixed asset is less than its carrying amount the carrying amount is written down to the recoverable
amount.A fixed asset is derecognised when it is disposed of or when no future economic benefits are expected from its use or disposal. The
amount of disposal proceeds from the sale transfer scrapping or damage of a fixed asset net of its carrying amount and related taxes
and expenses is recognised in profit or loss for the period.
19. Construction in Progress
Construction in progress is measured at actual cost incurred. Actual cost comprises construction costs installation costs borrowing
costs eligible for capitalisation and other necessary expenditures incurred to bring the construction in progress to its intended condition
for use. Construction in progress is transferred to fixed assets when it is ready for its intended use and depreciation commences from
the following month. When the recoverable amount of construction in progress is less than its carrying amount the carrying amount is
written down to the recoverable amount.
155AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
20. Borrowing Costs
Borrowing costs incurred by the Group that are directly attributable to the acquisition or construction of an asset that necessarily takes
a substantial period of time to prepare for its intended use are capitalised as part of the cost of the asset when expenditures for the asset
and borrowing costs are incurred and the activities necessary to prepare the asset for its intended use have commenced. Capitalisation
of borrowing costs ceases when the asset is ready for its intended use and borrowing costs incurred thereafter are recognised in profit
or loss. If the construction activities of the asset are interrupted abnormally and the interruption period exceeds three consecutive
months capitalisation of borrowing costs is suspended until the construction activities recommence.For specific-purpose borrowings obtained for the acquisition or construction of assets eligible for capitalisation the amount of
borrowing costs to be capitalised is determined as the actual interest expense incurred on such borrowings during the period less any
interest income earned from depositing the unutilised borrowings in banks or any investment income earned from temporary investment
of such borrowings.For general borrowings used for the acquisition or construction of assets eligible for capitalisation the amount of borrowing costs to
be capitalised is determined by multiplying the weighted average of the capital expenditures in excess of specific-purpose borrowings
by the weighted average effective interest rate of the general borrowings utilised. The effective interest rate is the rate that discounts
the estimated future cash flows of the borrowings over their expected life or a shorter applicable period to the initially recognised
amount of the borrowings.
21. Intangible Assets
(1) Useful Lives Basis of Determination Estimates Amortisation Methods and Review Procedures
Intangible assets comprise land use rights software and customer relationships which are measured at cost.(a) Land Use Rights
Land use rights are amortised on a straight-line basis over the period of use.(b) Software
Software is amortised on a straight-line basis over the estimated useful life of 1-5 years.(c) Customer Relationships
Customer relationships are intangible assets recognised in the course of business combinations representing customer resources
acquired by the Group as a result of assuming the business of the acquiree. Customer relationships are initially recognised at fair value
at the acquisition date and subsequently amortised on a straight-line basis over the estimated beneficial period.(d) Periodic Review of Useful Lives and Amortisation Methods
The estimated useful lives and amortisation methods of intangible assets with finite useful lives are reviewed and adjusted as
appropriate at the end of each financial year.(e) Research and Development
The Group’s research and development expenditures primarily comprise materials consumed in conducting research and development
activities employee benefits expense of the R&D department depreciation and amortisation of assets such as equipment and software
used in R&D and repair and maintenance expenses related to R&D activities.
(2) Scope of R&D Expenditure Aggregation and Related Accounting Treatment
Expenditure incurred in the planned investigation evaluation and selection phase for the research of PCB production processes is
classified as research phase expenditure which is recognised in profit or loss as incurred. Expenditure incurred in the design and testing
phase for the final application of PCB production processes prior to mass production is classified as development phase expenditure
which is capitalised when all of the following conditions are satisfied:
The development of the PCB production process has been fully substantiated by the technical team;
Management has approved the budget for the development of the PCB production process;
The research and analysis from prior market surveys demonstrate that the products manufactured using the PCB production process
have market potential;
156AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Sufficient technical and financial resources are available to support the development of the PCB production process and the subsequent
mass production; and the expenditures on the development of the PCB production process can be reliably measured.Development phase expenditures that do not meet the above conditions are recognised in profit or loss as incurred. Development
expenditures previously recognised as expenses are not subsequently recognised as assets. Capitalised development phase expenditures
are presented as development expenditures in the balance sheet and are transferred to intangible assets from the date the project is ready
for its intended use.When the recoverable amount of an intangible asset is less than its carrying amount the carrying amount is written down to the
recoverable amount.
22. Impairment of Long-term Assets
Fixed assets construction in progress right-of-use assets intangible assets with finite useful lives investment properties measured
using the cost model and long-term equity investments in subsidiaries and associates are tested for impairment when there are
indications of impairment at the balance sheet date. Intangible assets not yet ready for use are tested for impairment at least annually
irrespective of whether there are indications of impairment. Where the result of an impairment test indicates that the recoverable amount
of an asset is less than its carrying amount an impairment provision is recognised for the difference and charged to asset impairment
loss. The recoverable amount is the higher of the asset’s fair value less costs of disposal and the present value of estimated future cash
flows of the asset. Impairment provisions are calculated and recognised on an individual asset basis. If it is difficult to estimate the
recoverable amount of an individual asset the recoverable amount of the asset group to which the asset belongs is determined. An asset
group is the smallest group of assets that is capable of generating cash inflows independently.Goodwill presented separately in the financial statements is tested for impairment at least annually irrespective of whether there are
indications of impairment. For impairment testing the carrying amount of goodwill is allocated to the asset groups or groups of asset
groups that are expected to benefit from the synergies of the business combination. If the test result indicates that the recoverable
amount of an asset group or group of asset groups to which goodwill has been allocated is less than its carrying amount the
corresponding impairment loss is recognised. The impairment loss is first applied to reduce the carrying amount of goodwill allocated
to the asset group or group of asset groups and then to reduce the carrying amounts of the other assets in the asset group or group of
asset groups on a pro rata basis based on the carrying amount of each asset.Once the above asset impairment loss is recognised it is not reversed in subsequent periods for any recovery in value.
23. Long-term Prepaid Expenses
Long-term prepaid expenses include improvements to right-of-use assets and other expenses that have been incurred but should be
borne over the current and subsequent periods with an amortisation period exceeding one year. They are amortised on a straight-line
basis over the estimated beneficial period and are presented net of actual expenditures less accumulated amortisation.
24. Contract Liabilities
The Company’s obligation to transfer goods or provide services to customers for which consideration has been received or is receivable
from customers is presented as contract liabilities.
25. Employee Benefits
(1) Accounting Treatment of Short-term Employee Benefits
Short-term employee benefits include wages bonuses allowances and subsidies employee welfare expenses medical insurance
premiums work-related injury insurance premiums maternity insurance premiums housing provident fund contributions trade union
and education funds and short-term paid absences. The Group recognises the actual short-term employee benefits incurred as a liability
in the accounting period in which the employees render services and charges them to profit or loss or the cost of related assets. Non-
monetary benefits are measured at fair value.
157AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Accounting Treatment of Post-employment Benefits
The Group classifies post-employment benefit plans into defined contribution plans and defined benefit plans. Defined contribution
plans are post-employment benefit plans under which the Group pays fixed contributions to an independent fund and has no further
payment obligations. Defined benefit plans are post-employment benefit plans other than defined contribution plans. During the
reporting period the Group’s post-employment benefits primarily comprise basic pension insurance and unemployment insurance
contributions for employees both of which are classified as defined contribution plans.The Group’s employees participate in the social basic pension insurance scheme organised and implemented by the local labour and
social security authorities. The Group makes monthly contributions to the local social basic pension insurance agencies based on the
contribution bases and percentages stipulated by the local authorities. After employees retire the local labour and social security
authorities are responsible for paying social basic pensions to retired employees. The Group recognises the amounts payable calculated
in accordance with the above social insurance regulations as a liability in the accounting period in which the employees render services
and charges them to profit or loss or the cost of related assets.
(3) Accounting Treatment of Termination Benefits
Where the Group terminates the employment relationship with an employee before the expiry of the employment contract or offers
compensation to encourage voluntary redundancy a liability for the compensation arising from termination of the employment
relationship is recognised and the amount is charged to profit or loss for the period on the earlier of the date when the Group can no
longer unilaterally withdraw the termination plan or redundancy offer and the date when the Group recognises the costs or expenses
related to a restructuring involving the payment of termination benefits.Termination benefits expected to be paid within one year from the balance sheet date are presented as employee benefits payable.
26. Share-based Payment
Share-based payment is classified into equity-settled share-based payment and cash-settled share-based payment. Equity-settled share-
based payment refers to a transaction in which the Group receives services and settles the transaction using shares or other equity
instruments as consideration.Equity-settled share-based payment transactions in exchange for services rendered by employees are measured at the fair value of the
equity instruments granted to the employees. For equity instruments that vest immediately upon grant the fair value at the grant date
is recognised in profit or loss for the period with a corresponding increase in capital reserve. For equity instruments that vest upon
completion of services within the vesting period or upon satisfaction of specified performance conditions at each balance sheet date
during the vesting period the Group makes its best estimate of the number of equity instruments expected to vest based on the latest
available information such as changes in the number of employees expected to meet the vesting conditions and whether the specified
performance conditions have been met and on this basis recognises the services received during the period in profit or loss at the fair
value at the grant date.For share-based payment ultimately not meeting the vesting conditions the Group does not recognise any cost or expense unless the
vesting conditions are market conditions or non-vesting conditions in which case vesting is deemed to have occurred as long as all
non-market conditions among all vesting conditions are satisfied irrespective of whether the market conditions or non-vesting
conditions are met.When the Group modifies the terms of a share-based payment arrangement if the modification increases the fair value of the equity
instruments granted the Group recognises the incremental services received based on the difference between the fair value of the equity
instruments before and after the modification at the modification date. If the Group modifies the vesting conditions in a manner
beneficial to employees the Group accounts for the modified vesting conditions. If the Group modifies the vesting conditions in a
manner detrimental to employees the modification is not taken into account in accounting unless the Group cancels some or all of the
equity instruments granted. If the Group cancels the equity instruments granted the cancellation is treated as an acceleration of vesting
and the amount that would otherwise have been recognised over the remaining vesting period is recognised immediately in profit or
loss with a corresponding recognition in capital reserve.If the Group is required to repurchase restricted shares that have not vested and become invalid or forfeited at a pre-agreed repurchase
price the Group recognises a liability and treasury shares based on the number of restricted shares and the corresponding repurchase
price.
158AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
27. Revenue
The accounting policies adopted for revenue recognition and measurement are disclosed by type of business.The Group recognises revenue at the amount of consideration to which it expects to be entitled when the customer obtains control of
the relevant goods or services.(a) Sale of Goods
The Group manufactures various PCB products and sells them to customers across different regions. The Group’s sales models are
primarily categorised into the shipment warehouse model and the factory direct delivery model and the revenue recognition methods
under each model are as follows:
Under the shipment warehouse model after producing products based on customer orders the Group delivers the finished goods to the
shipment warehouse. The Group typically engages logistics companies to manage the goods in the shipment warehouse. Customers
collect goods from the shipment warehouse based on their needs and upon the Group’s approval. The Group recognises revenue based
on the collection of goods by customers.Under the factory direct delivery model in accordance with the sales contracts and order terms the Group is required to deliver PCB
products to the delivery location designated by the customer. Revenue is recognised after the customer accepts the goods and both
parties sign the goods delivery confirmation.The credit period granted by the Group to customers is typically 45-90 days which is consistent with industry practice and there is no
significant financing component.(b) Rental Income
The Group leases out its own buildings and structures under operating leases. Rental income from operating leases is recognised on a
straight-line basis over the lease term.
28. Government Grants
Government grants are monetary or non-monetary assets obtained by the Group from the government without consideration including
tax refunds fiscal subsidies and the like.Government grants are recognised when the Group can satisfy the conditions attached to them and the grants can be received.Government grants in the form of monetary assets are measured at the amount received or receivable. Government grants in the form
of non-monetary assets are measured at fair value. Where fair value cannot be reliably obtained they are measured at nominal amount.Government grants related to assets are government grants obtained by the Group for the acquisition construction or other formation
of long-term assets. Government grants related to income are government grants other than those related to assets.Government grants related to assets are either offset against the carrying amount of the related assets or recognised as deferred income
and amortised to profit or loss over the useful lives of the related assets on a reasonable and systematic basis.Government grants related to income that are intended to compensate the Group for related costs expenses or losses in future periods
are recognised as deferred income and are recognised in profit or loss or offset against related costs in the period in which the related
costs expenses or losses are recognised. Government grants related to income that are intended to compensate the Group for related
expenses or losses already incurred are recognised directly in profit or loss or offset against related costs.The Group applies consistent presentation methods to government grants of the same nature.Government grants related to ordinary activities are included in operating profit. Government grants not related to ordinary activities
are recognised in non-operating income and expenses.For policy-based preferential interest rate loans received by the Group the actual amount of borrowings received is used as the initial
carrying amount of the borrowings and the related borrowing costs are calculated based on the principal of the borrowings and the
policy-based preferential interest rate. Fiscal interest subsidies received directly are offset against the related borrowing costs.
29. Deferred Tax Assets/Deferred Tax Liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the differences (temporary differences) between
the tax bases of assets and liabilities and their carrying amounts. Deferred tax assets are recognised for deductible losses that can be
carried forward against future taxable income in accordance with tax laws. No deferred tax liability is recognised for temporary
159AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
differences arising from the initial recognition of goodwill. No deferred tax assets or deferred tax liabilities are recognised for temporary
differences arising from the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither the accounting profit nor taxable income (or deductible losses) where the initially recognised assets and liabilities do not give
rise to equal amounts of taxable temporary differences and deductible temporary differences. At the balance sheet date deferred tax
assets and deferred tax liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised or the
liability is settled.Deferred tax assets are recognised only to the extent that it is probable that future taxable income will be available against which the
deductible temporary differences deductible losses and tax credits can be utilised.Deferred tax liabilities are recognised for taxable temporary differences related to investments in subsidiaries and associates unless
the Group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will
not reverse in the foreseeable future. Deferred tax assets are recognised for deductible temporary differences related to investments in
subsidiaries associates and joint ventures when it is probable that the temporary differences will reverse in the foreseeable future and
that future taxable income will be available against which the deductible temporary differences can be utilised.Deferred tax assets and deferred tax liabilities are presented on a net basis after offsetting when all of the following conditions are
satisfied:
The deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority on the same taxable entity
within the Group; and
The taxable entity within the Group has a legally enforceable right to settle current tax assets and current tax liabilities on a net basis.
30. Leases
(1) Accounting Treatment of Leases as a Lessee
The Group recognises a right-of-use asset at the commencement date of the lease and recognises a lease liability at the present value
of the lease payments not yet paid. Lease payments include fixed payments and amounts expected to be payable where it is reasonably
certain that a purchase option or a termination option will be exercised. Variable lease payments determined as a percentage of sales
are not included in lease payments and are recognised in profit or loss as incurred. The Group presents the lease liabilities due within
one year (inclusive) from the balance sheet date as non-current liabilities due within one year.The Group’s right-of-use assets comprise leased buildings and structures machinery and equipment and transportation vehicles. Right-
of-use assets are initially measured at cost which comprises the initial measurement amount of the lease liability lease payments made
at or before the commencement date initial direct costs incurred less any lease incentives received. Where the Group is reasonably
certain to obtain ownership of the leased asset at the end of the lease term depreciation is provided over the remaining useful life of
the leased asset. Where it is not reasonably certain to obtain ownership of the leased asset at the end of the lease term depreciation is
provided over the shorter of the lease term and the remaining useful life of the leased asset. When the recoverable amount is less than
the carrying amount of a right-of-use asset the Group writes down its carrying amount to the recoverable amount.For short-term leases with a lease term not exceeding 12 months and leases of low-value assets when the assets are new the Group
elects not to recognise right-of-use assets and lease liabilities and recognises the related rental expenses in profit or loss or the cost of
related assets on a straight-line basis over each period within the lease term.Where a lease modification occurs and all of the following conditions are met the Group accounts for the lease modification as a
separate lease: (1) the lease modification expands the scope of the lease by adding the right to use one or more underlying assets; and
(2) the increased consideration is commensurate with the stand-alone price for the expansion in scope adjusted to reflect the
circumstances of the contract.When a lease modification is not accounted for as a separate lease the Group redetermines the lease term at the effective date of the
lease modification remeasures the lease liability by discounting the modified lease payments using a revised discount rate. Where the
lease modification results in a reduction in the scope of the lease or a shortening of the lease term the Group correspondingly reduces
the carrying amount of the right-of-use asset and recognises the related gain or loss on partial or full termination of the lease in profit
or loss. For other lease modifications that result in remeasurement of the lease liability the Group correspondingly adjusts the carrying
amount of the right-of-use asset.
(2) Accounting Treatment of Leases as a Lessor
Leases in which the Group as lessor transfers substantially all the risks and rewards incidental to ownership of the leased asset are
160AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
classified as finance leases. All other leases are classified as operating leases.Operating Leases
When the Group leases out its own buildings and structures machinery and equipment and transportation vehicles under operating
leases rental income from operating leases is recognised on a straight-line basis over the lease term. Variable lease payments determined
as a percentage of sales are recognised as rental income when they are incurred.When a lease modification occurs the Group accounts for it as a new lease from the effective date of the modification and treats the
prepaid or receivable lease payments relating to the lease before the modification as the lease payments of the new lease.
31. Other Significant Accounting Policies and Accounting Estimates
During the reporting period the Company had no other significant accounting policies and accounting estimates.
32. Changes in Significant Accounting Policies and Accounting Estimates
(1) Changes in Significant Accounting Policies
□Applicable ?Not applicable
(2) Changes in Significant Accounting Estimates
□Applicable ?Not applicable
(3) Adjustments to the Relevant Items of the Financial Statements at the Beginning of the Year of First-time Adoption of New
Accounting Standards from 2025
□Applicable ?Not applicable
VI. TAXATION
1. Principal Tax Categories and Tax Rates
Tax Category Tax Basis Tax Rate
Taxable value-added amount (the tax
payable is calculated as taxable sales
Value-added tax (“VAT”) multiplied by the applicable VAT rate less 5% 6% 9% and 13%
the deductible input VAT for the current
period)
Urban maintenance and construction tax VAT paid and VAT credit refunded 7%
Corporate income tax (“CIT”) Taxable income 15% 16.5% 17% 20% 22% and 25%
Education surcharge VAT paid and VAT credit refunded 3%
Local education surcharge VAT paid and VAT credit refunded 2%
Disclosure of Taxpayers Subject to Different CIT Rates
Taxpayer CIT Rate
Avary International Limited (incorporated in Hong Kong China) 16.5%
161AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Avary Technology Co. Ltd. (incorporated in Taiwan China) 20%
Avary Singapore Private Limited (incorporated in Singapore) 17%
Avary Technology (India) Private Limited (incorporated in India) 22%
Peng Shen Technology (Thailand) Co. Ltd. (incorporated in Thailand) 20%
2. Tax Incentives
(a) The Company's subsidiary Pengding Property Management Services (Shenzhen) Co. Ltd. ("Pengding Property") is subject to the
preferential enterprise income tax rate applicable to small and micro enterprises. Pursuant to the Announcement on Policies Concerning
Further Support for the Development of Small and Micro Enterprises and Self-employed Businesses (Announcement 〔2023〕 No.
12 of the Ministry of Finance and the State Taxation Administration) the policy under which small and low-profit enterprises calculate
taxable income at a reduced rate of 25% and pay enterprise income tax at a rate of 20% has been extended to 31 December 2027.(b) Pursuant to the Announcement on Policies Concerning Deepening the Reform of the Value-Added Tax issued by the Ministry of
Finance the State Taxation Administration and the General Administration of Customs (Announcement 〔2019〕 No. 39 of the
Ministry of Finance the State Taxation Administration and the General Administration of Customs) from 1 April 2019 the Group's
subsidiaries located in Mainland China are subject to a VAT rate of 13% for VAT taxable sales activities or imports of goods.(c) In December 2024 the Company successfully renewed its certification as a High and New Technology Enterprise and obtained the
corresponding certificate (Certificate No. GR202444206929) jointly issued by the Shenzhen Municipal Innovation Committee the
Shenzhen Municipal Finance Committee the Shenzhen Municipal Bureau of the State Taxation Administration and the Shenzhen
Local Taxation Bureau. The certificate is valid for three years. Pursuant to Article 28 of the Enterprise Income Tax Law of the People's
Republic of China the Company is subject to an enterprise income tax rate of 15% for 2025 (2024: 15%).(d) In October 2022 the Company's subsidiary Hongqisheng renewed its certification as a High and New Technology Enterprise and
obtained the corresponding certificate (Certificate No. GR202213000771) jointly issued by the Department of Science and Technology
of Hebei Province the Department of Finance of Hebei Province and the Hebei Provincial Tax Service of the State Taxation
Administration. The certificate is valid for three years. In October 2025 Hongqisheng again passed the re-certification review and
obtained an updated High and New Technology Enterprise Certificate (Certificate No. GR202513000044) which is valid for three
years. Pursuant to Article 28 of the Enterprise Income Tax Law of the People's Republic of China Hongqisheng is subject to an
enterprise income tax rate of 15% for 2025 (2024: 15%).(e) In November 2023 the Company's subsidiary Qingding renewed its certification as a High and New Technology Enterprise and
obtained the corresponding certificate (Certificate No. GR202332000685) jointly issued by the Department of Science and Technology
of Jiangsu Province the Department of Finance of Jiangsu Province the Jiangsu Provincial Office of the State Taxation Administration
and the Jiangsu Local Taxation Bureau. The certificate is valid for three years. Pursuant to Article 28 of the Enterprise Income Tax
Law of the People's Republic of China Qingding is subject to an enterprise income tax rate of 15% for 2025 (2024: 15%).(f) In December 2025 the Company's subsidiary Wuxi Huayang Science and Technology Co. Ltd. ("Wuxi Huayang") renewed its
certification as a High and New Technology Enterprise and obtained the corresponding certificate (Certificate No. GR202532006160)
jointly issued by the Department of Science and Technology of Jiangsu Province the Department of Finance of Jiangsu Province the
Jiangsu Provincial Office of the State Taxation Administration and the Jiangsu Local Taxation Bureau. The certificate is valid for three
162AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
years. Pursuant to Article 28 of the Enterprise Income Tax Law of the People's Republic of China Wuxi Huayang is subject to an
enterprise income tax rate of 15% for 2025.VII. Notes to the Consolidated Financial Statements
1. Cash and Cash Equivalents
Unit: RMB
item closing balance opening balance
Cash on hand 39300.81 52982.81
Cash at banks 11997452291.53 13465553142.47
Other monetary funds 9639272.36 1323902.71
Interest 24863624.64 30022335.89
Total 12031994489.34 13496952363.88
Including:Total funds deposited
overseas 3211769908.44 5372007208.32
Other disclosures:
As at 31 December 2025 other monetary funds included customs security deposits of RMB974568.76 (31 December 2024:
RMB1069768.75) and securities investment funds deposited of RMB8664703.60 (31 December 2024: RMB254133.96).
2. Notes Receivable
(1) Notes receivable by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bills 131672304.37 69974867.39
Commercial acceptance bills 12307623.57 0.00
Total 143979927.94 69974867.39
163AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Disclosure by the method of provision for bad debts
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross carrying amount Gross carrying amount
Category accounts accounts Carrying
Carrying amount
Provision Provision amount
Amount Percentage Amount Amount Percentage Amount
ratio ratio
Notes
receivable
for which an
allowance
for doubtful 144413167.26 100.00% 433239.32 0.30% 143979927.94 70185423.65 100.00% 210556.26 0.30% 69974867.39
accounts is
provided on a
collective
basis
Total 144413167.26 100.00% 433239.32 0.30% 143979927.94 70185423.65 100.00% 210556.26 0.30% 69974867.39
Provision for bad debts on a collective basis:
Closing balance
Name
Gross carrying amount Allowance for doubtful accounts Provision ratio
Banker's acceptance bills 132068509.72 396205.35 0.30%
Commercial acceptance bills 12344657.54 37033.97 0.30%
Total 144413167.26 433239.32
If the allowance for notes receivable is measured under the general expected credit loss model:
□Applicable □ Not Applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful accounts Expected credit losses over the Lifetime expected credit losses (not Lifetime expected credit losses Total
next 12 months credit-impaired) (credit-impaired)
164AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Balance at 1 January 2025 210556.26 210556.26
Balance at 1 January 2025 during
the period
Provision during the current period 433239.32 433239.32
Reversal during the current period 210556.26 210556.26
Balance at 31 December 2025 433239.32 433239.32
165AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Movements in the allowance for doubtful accounts during the year
Provision for bad debts during the year:
Unit: RMB
Movements during the current period
Opening
Category Recovery or Closing balance balance Provision Write-off Other
reversal
Banker's
210556.26396205.35210556.26396205.35
acceptance bills
Commercial
37033.9737033.97
acceptance bills
Total 210556.26 433239.32 210556.26 433239.32
Including significant recoveries or reversals of bad debt allowances during the year:
□ Applicable □Not Applicable
3. Accounts Receivable
(1) Aging analysis
Unit: RMB
Aging Closing balance Opening balance
Within one year (inclusive) 6091308860.64 5786155915.60
Total 6091308860.64 5786155915.60
166AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Disclosure by the method of provision for bad debts
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross carrying amount Gross carrying amount
Category accounts accounts
carrying amount carrying amount
Provision Provision
Amount percentage Amount Amount percentage Amount
ratio ratio
Including:
Accounts
receivable
for which an
allowance
for doubtful 6091308860.64 100.00% 18181001.57 0.30% 6073127859.07 5786155915.60 100.00% 17333857.33 0.30% 5768822058.27
accounts is
provided on
a collective
basis
Including:
Total 6091308860.64 100.00% 18181001.57 0.30% 6073127859.07 5786155915.60 100.00% 17333857.33 0.30% 5768822058.27
Provision for bad debts on a collective basis:
Unit: RMB
Closing balance
Name
Gross carrying amount Allowance for doubtful accounts Provision ratio
Sales customers 6091308860.64 18181001.57 0.30%
Total 6091308860.64 18181001.57
167AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
If the allowance for doubtful accounts receivable is provided under the general expected credit loss model:
□Applicable □ Not Applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful Lifetime expected Lifetime expected
Total
accounts 12-month expected
credit losses (not credit losses (credit-
credit losses
credit-impaired) impaired)
Balance at 1 January
202517333857.3317333857.33
Balance at 1 January
2025 — transfers
during the period:
Charge for the year 18534354.26 18534354.26
Reversal for the year 17405112.35 17405112.35
Other changes 282097.67 282097.67
Balance at 31
December 18181001.57 18181001.57
168AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Movements in the allowance for doubtful accounts during the year
Provision for bad debts during the year:
Unit: RMB
Movements during the current period
Category Opening balance Recovery or Write- Closing balance
Provision Other
reversal off
Sales
17333857.3318534354.2617405112.35282097.6718181001.57
customers
Total 17333857.33 18534354.26 17405112.35 282097.67 18181001.57
(4) Top five accounts receivable and contract assets by debtor at period end
Unit: RMB
Closing balance of
Percentage of the
allowance for
Closing balance of total closing
Closing balance of doubtful accounts
Closing balance of accounts balance of
Name accounts receivable and
contract assets receivable and accounts
receivable impairment
contract assets receivable and
provision for
contract assets
contract assets
Total accounts
receivable from the 4048821109.53 0.00 4048821109.53 66.47% 12146463.33
top five debtors
Total 4048821109.53 0.00 4048821109.53 66.47% 12146463.33
4. Accounts Receivable Financing
(1) Accounts receivable financing by category
Unit: RMB
Item Closing balance Opening balance
Banker's acceptance bills 39453938.12
Total 39453938.12
5. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 253354062.17 264542514.16
Total 253354062.17 264542514.16
169AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(1) Other receivables
1) Other receivables by nature
Unit: RMB
Nature of amount Closing gross carrying amount Opening gross carrying amount
Production capacity deposits receivable 100000000.00 0
Amounts due from related parties 61747405.25 161721765.95
Tax refunds receivable 72452506.99 94447927.58
Receivables for scrap sales 13268025.79 6800074.18
Other 6131423.81 1602616.18
Total 253599361.84 264572383.89
2) Aging analysis
Unit: RMB
Aging Closing gross carrying amount Opening gross carrying amount
Within one year (inclusive) 253599361.84 264572383.89
Total 253599361.84 264572383.89
170AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
3) Disclosure by the method of provision for bad debts
□ Applicable □ Not Applicable
Unit: RMB
closing balance opening balance
Allowance for doubtful Allowance for doubtful
Gross carrying amount Gross carrying amount
Category accounts Carrying accounts Carrying
Provision amount Provision amount
Amount Percentage Amount Amount percentage Amount
ratio ratio
Allowance for
doubtful
accounts 172452506.99 68.00% 172452506.99 254447927.58 96.17% 254447927.58
provided on an
individual basis
Including:
Allowance for
doubtful
accounts 81146854.85 32.00% 245299.67 0.30% 80901555.18 10124456.31 3.83% 29869.73 0.30% 10094586.58
provided on a
collective basis
Including:
Total 253599361.84 100.00% 245299.67 -- 253354062.17 264572383.89 100.00% 29869.73 -- 264542514.16
Provision for bad debts on a collective basis:
Unit: RMB
Closing balance
Name
Gross carrying amount Allowance for doubtful accounts Provision ratio
Other receivables portfolio 81146854.85 245299.67 0.30%
Total 81146854.85 245299.67
171AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Significant changes in the carrying amount corresponding to movements in loss allowances during the year
□ Applicable □Not Applicable
4) Movements in the allowance for doubtful accounts during the year
Provision for bad debts during the year:
Unit: RMB
Movements during the current period
Opening
Category Recovery or Write-off or Closing balance balance Provision Other
reversal cancellation
Other
receivables 29869.73 246629.38 32081.62 882.18 245299.67
portfolio
Total 29869.73 246629.38 32081.62 882.18 245299.67
5) Top five other receivables by debtor at period end
Unit: RMB
Closing
balance of
Closing Percentage of total closing
Name Nature of amount Aging allowance for
balance balance of other receivables
doubtful
accounts
Honghe Electronic Production
Within one
Materials Technology capacity deposits 100000000.00 39.43% 0.00
year
Co. Ltd. receivable
Tax refunds Within one
Huai'an Tax Bureau 62348853.84 24.59% 0.00
receivable year
Yaoding
Environmental Energy Receivables for Within one
38403132.0015.14%115209.39
Technology (Huai'an) scrap sales year
Co. Ltd.Yaoding
Environmental Energy Receivables for Within one
13452691.845.30%40358.07
Technology scrap sales year
(Shenzhen) Co. Ltd.New Taipei National
Tax refunds Within one
Taxation Bureau Tax 10091845.22 3.98% 0.00
receivable year
Office
Total 224296522.90 88.44% 155567.46
172AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
6. Prepayments
(1) Prepayments by aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Percentage Amount Percentage
Within one year 236029758.23 98.92% 205522477.69 99.01%
1 to 2 years 902375.90 0.38% 1334224.27 0.64%
2 to 3 years 1037446.84 0.43% 1400.00 0.00%
Over 3 years 638991.21 0.27% 725732.58 0.35%
Total 238608572.18 207583834.54
Explanation of significant prepayments aged over one year that have not been settled in a timely manner:
As at 31 December 2025 prepayments aged over one year amounted to RMB 2578813.95 (31 December 2024: RMB 2061356.85)
mainly representing prepayments for purchase of materials that had not been settled because the purchased products had not yet arrived.
(2) Top five prepayments by prepaid counterparty at period end
The total prepayments to the top five prepaid counterparties amounted to RMB 102765792.43 accounting for 43.07% of total
prepayments.
173AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
7. Inventories
Whether the Company is required to comply with the disclosure requirements for the real estate industry
No
(1) Inventories by category
Unit: RMB
Closing balance Opening balance
Provision for decline in Provision for decline in
Item value of inventories or value of inventories or
Gross carrying amount impairment provision Carrying amount Gross carrying amount impairment provision Carrying amount
for contract fulfillment for contract fulfillment
costs costs
Raw materials 1031117499.40 33479293.76 997638205.64 760375360.89 38318728.22 722056632.67
Work in progress 917256937.66 20642926.18 896614011.48 676461238.24 24236907.47 652224330.77
Finished goods 1558179397.46 63193197.53 1494986199.93 1754404674.49 62646165.58 1691758508.91
Self-manufactured semi-
434434269.8816962063.60417472206.28316112772.7726608877.53289503895.24
Finished goods
Total 3940988104.40 134277481.07 3806710623.33 3507354046.39 151810678.80 3355543367.59
(2) Provision for decline in value of inventories and impairment provision for contract fulfillment costs
Unit: RMB
Increase during the current period Decrease during the current period
Item Opening balance Closing balance
Provision Other Reversal or write-off Other
Raw materials 38318728.22 33868083.46 38318728.22 388789.70 33479293.76
Work in progress 24236907.47 20671306.36 24236907.47 28380.18 20642926.18
Finished goods 62646165.58 59363245.05 58384760.63 431452.47 63193197.53
Self-manufactured semi- 26608877.53 16971633.38 26608877.53 9569.78 16962063.60
174AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
finished goods
Total 151810678.80 130874268.25 147549273.85 858192.13 134277481.07
175AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
8. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Input VAT to be deducted 545726255.91 465416039.20
Prepaid income tax 384644.54 5927022.19
Total 546110900.45 471343061.39
9. Investments in Other Equity Instruments
Unit: RMB
Reason for
Gains recognized in Losses recognized Accumulated losses Dividend designation as
Accumulated gains
other in other recognized in other income measured at
recognized in other
Project name Closing balance Opening balance comprehensive comprehensive comprehensive recognized fair value
comprehensive
income during the income during the income at period during the through other
income at period end
current period current period end current period comprehensive
income
Jiangxi
Jiangnan New
Materials 168365713.43 143365718.79 143365718.79 877608.92
Technology
Co. Ltd.Jiangsu Aisen
Semiconductor
112608000.00102856000.0067380986.79140180986.80
Materials Co.Ltd.Suzhou
Xinguangyi
87808477.9357808479.1657808479.16
Electronics
Co. Ltd.Tianjin 70417722.90 28954895.01 41462827.89 54531924.26
176AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Sanying
Precision
Instruments
Co. Ltd.Dezhong
(Tianjin)
Technology 14880950.00 10119046.00 10119046.00
Development
Co. Ltd.Liding
Semiconductor
Technology 949584648.00 948190047.00 1394601.00 4584648.00
(Shenzhen)
Co. Ltd.Suzhou Xinrui
Equity
Investment
131830280.0071830280.0071830280.00997297.34
Partnership
(Limited
Partnership)
Dongguan
Liuchun Co. 64373857.00 35448463.00 28925394.00 34373857.00 315376.00
Ltd.Kunshan
Hongshida
Intelligent 57163739.00 10049892.00 47113847.00 37163739.00
Technology
Co. Ltd.Wuxi Yingda
Juli
47249417.0073369332.0026119915.0027249417.00
Technology
Co. Ltd.Shanghai
Gantu 38857818.00 26750241.00 12107577.00 23795751.91
Network
177AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Technology
Co. Ltd.Chengdu Keyi
Polymer
38368751.00
Technology
Co. Ltd.Shenzhen
Yunbao
38292492.5630000000.008292492.568292492.56
Intelligent Co.Ltd.Guangdong
Deju
37724968.0024028329.0013696639.0012724968.00
Technology
Co. Ltd.Dingqin
Technology
21983039.001983039.001983039.00
(Shenzhen)
Co. Ltd.Sanying
Precision
Control
(Tianjin) 14678638.00 7306851.00 7371787.00 5178638.00
Instruments
and Equipment
Co. Ltd.Shenzhen
Hangsheng
10300967.006349464.003951503.003029033.00
Electronics
Co. Ltd.Hubei Aoma
Electronics
8365081.008595344.00230263.00454081.00
Technology
Co. Ltd.Total 1912854559.82 1301898858.01 506685172.19 36469224.00 623518020.48 13148079.00 2190282.26
178AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
10. Long-term Equity Investments
Unit: RMB
Movements during the current period
Opening Opening Investment Closing Closing
balance balance of income/loss Adjustment to Cash Reduction Other Provision balance balance of Investee
(carrying impairment Additional recognized other dividends in equity for Other (carrying impairment
amount) provision investment under the comprehensive or profits investment movements impairment amount) provision
equity income declared
method
I. Joint ventures
II. Associates
Guangdong
Zhanyang
-
Intelligent 5588808.50 1876405.13
3712403.37
Equipment
Co. Ltd.Wuxi
Yongyang
Electronic 16894296.61 9642.86 16903939.47
Technology
Co. Ltd.Subtotal -5588808.50 16894296.61 18780344.60
3702760.51
Total -5588808.50 16894296.61 18780344.60
3702760.51
179AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Recoverable amount determined based on fair value less costs of disposal
□ Applicable □Not Applicable
Recoverable amount determined based on the present value of estimated future cash flows
□ Applicable □Not Applicable
11. Other Non-current Financial Assets
Unit: RMB
Item Closing balance Opening balance
Beijing Chenyi M&A Fund (Limited
220736403.00220515116.00
Partnership)
Chunhua Jingzhi (Beijing) Equity
Investment Partnership (Limited 139987920.00 68482830.00
Partnership)
Jingning Dingqing Electronic Technology
121077000.0057720000.00
Partnership (Limited Partnership)
CHINA RENEWABLE POWER
1001999.86
INFRASTRUCTURE LPF
Total 482803322.86 346717946.00
12. Investment Properties
(1) Investment properties measured under the cost model
□Applicable □ Not Applicable
Unit: RMB
Buildings and Construction in
Item Land use rights Total
structures progress
I. Gross carrying
amount 712089300.52 712089300.52
1. Opening
balance 712089300.52 712089300.52
2.Increase during
the current period
(1) External
purchases
(2) Transfer
from inventories/fixed
assets/construction in
progress
(3) Increase
from business
combination
3.Decrease during
the current period 870344.65 870344.65
(1) Disposal
180AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Other
transfers out 870344.65 870344.65
4. Closing balance 711218955.87 711218955.87
II. Accumulated
depreciation and
amortization
1. Opening
balance 126621809.68 126621809.68
2.Increase during
the current period 26873030.69 26873030.69
(1) provision
or amortization 26873030.69 26873030.69
3.Decrease during
the current period
(1) Disposal
(2) Other
transfers out
4. Closing balance 153494840.37 153494840.37
Ⅲ. Impairment
provision
1. Opening
balance
2.Increase during
the current period
(1) provision
3.Decrease during
the current period
(1) Disposal
(2) Other
transfers out
4. Closing balance
IV. carrying amount
1.Closing carrying
amount 557724115.50 557724115.50
2.Opening
carrying amount 585467490.84 585467490.84
Recoverable amount determined based on fair value less costs of disposal
□ Applicable □Not Applicable
Recoverable amount determined based on present value of estimated future cash flows
□ Applicable □Not Applicable
181AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Investment properties measured under the fair value model
□ Applicable □Not Applicable
13. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
fixed assets 17494384350.63 15738449342.88
Disposal of fixed assets
Total 17494384350.63 15738449342.88
182AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(1) Fixed assets
Unit: RMB
Item Buildings and Machinery and Transportation Computers and land Other equipment Total
structures equipment equipment electronic equipment
I. Gross carrying
amount：
1. Opening
balance 200172722.92 9660719647.46 17735497823.10 8405032.88 407058252.22 6182648544.17 34194502022.75
2.Increase
during the current
period
(1) Purchases 5476217.50 109983.01 17476581.11 70487.95 982.50 3455012.30 26589264.37
(2) Transfer from
construction in 1015256688.17 2626159659.52 2668270.86 97815449.43 1067635922.09 4809535990.07
progress
(3) Increase from
business 22396373.11 83985908.34 3956190.24 4687690.29 2531998.13 117558160.11
combination
3.Decrease
during the current
period
(1) Disposal or
retirement -670192.01 -460311776.81 -981813.07 -5503397.51 -115662842.36 -583130021.76
Other decreases -4113602.34 -4113602.34
Translation
differences of
4792288.6541331509.30-455332.3926943.86497975.463500942.6049694327.48
foreign currency
financial statements
4. Closing
balance 210441229.07 10735030406.70 20002352862.87 14145112.72 504556952.39 7144109576.93 38610636140.68
II. Accumulated
183AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
depreciation
1. Opening
balance -2924177599.44 -10793512439.80 -6762528.82 -279720068.69 -4386500391.08 -18390673027.83
2. Increase
during the current
period
(1) provision -555961852.78 -1763841264.09 -1025490.00 -73566719.81 -820163378.84 -3214558705.52
3. Decrease during
the current period
(1) Disposal or
retirement 426773.19 411933251.96 981810.07 4300466.31 100464526.57 518106828.10
Translation
differences of
4951421.1711286086.714326.23396305.414993390.1921631529.71
foreign currency
financial statements
4. Closing
balance -3474761257.86 -12134134365.22 -6801882.52 -348590016.78 -5101205853.16 -21065493375.54
III. Impairment
provision
1. Opening
balance -49516192.58 -6287.49 -15857171.97 -65379652.04
2. Increase during the
current period
(1) provision -7917290.67 -716953.75 -8634244.42
3. Decrease during
the current period
(1) Disposal or
retirement 22727260.65 6287.49 521933.81 23255481.95
4. Closing
balance -34706222.60 -16052191.91 -50758414.51
IV. carrying amount
1. Closing carrying 210441229.07 7260269148.84 7833512275.05 7343230.20 155966935.61 2026851531.86 17494384350.63
184AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
amount
2. Opening carrying
amount 200172722.92 6736542048.02 6892469190.72 1642504.06 127331896.04 1780290981.12 15738449342.88
14. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 2946557139.98 1382440351.02
Total 2946557139.98 1382440351.02
(1) Construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Gross carrying amount Carrying amount Gross carrying amount Carrying amount
provision provision
Uncompleted projects - equipment
1103229837.681103229837.69606365004.91606365004.91
pending inspection
Pengding Technology Kaohsiung
895830833.71895830833.71298465270.10298465270.10
Park Project
Pengding Thailand - Phase II Project 244116902.76 244116902.75
Pengding Thailand - Phase I Project 153043078.69 153043078.69 303790639.43 303790639.43
Huai'an First Park Project 134601974.10 134601974.10
Huai'an Third Park Project 119309169.70 119309169.70
Huai'an Zhending Jiayuan 104755775.99 104755775.99
Qingding Huai'an Dormitory 153405887.71 153405887.71
Pengding Thailand PA06 Plant
83726071.5283726071.52
Project
Huai'an Second Park Project 62615893.64 62615893.64
Other 45327602.19 45327602.19 20413548.87 20413548.87
185AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Total 2946557139.98 2946557139.98 1382440351.02 1382440351.02
(2) Movements in significant construction in progress during the year
Unit: RMB
Cumulative
Amount transferred Other decrease Source
Opening Increase during Closing construction input Progress of
Project name Budget to fixed assets during during the of
balance the current period balance as a percentage of construction
the current period current period funds
budget
Uncompleted
projects -
606365004.91 4203007479.81 -3710524903.09 4382256.05 1103229837.68 other
equipment pending
inspection
Pengding
Technology
2631194733.21 298465270.10 640781896.18 -32912380.88 -10503951.69 895830833.71 94.75% 94.75% other
Kaohsiung Park
Project
Pengding Thailand
768458204.44 239282272.07 4834630.69 244116902.76 31.14% 31.14% other
- Phase II Project
Pengding Thailand
973776063.87 303790639.43 506851529.49 -668448768.95 10849678.72 153043078.69 83.25% 83.25% other
- Phase I Project
Huai'an First Park
312204291.68 161775416.12 -27173442.02 134601974.10 51.82% 51.82% other
Project
Huai'an Third Park
1708687414.52 175217034.22 -55907864.52 119309169.70 10.25% 10.25% other
Project
Huai'an Zhending
247531941.16 104755775.99 104755775.99 42.32% 42.32% other
Jiayuan
Pengding Thailand
640023356.79 82067912.54 1658158.98 83726071.52 12.82% 12.82% other
PA06 Plant Project
Huai'an Second
334257807.35 90658666.99 -28042773.35 62615893.64 27.12% 27.12% other
Park Project
Qingding Huai'an
177060982.80 153405887.71 21655095.09 -175060982.80 100.00% 100.00% other
Dormitory
Other 20413548.87 136306956.23 -111464874.46 71971.55 45327602.19 other
186AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Total 7793194795.82 1382440351.02 6362360034.73 -4809535990.07 11292744.30 2946557139.98
187AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Impairment testing of construction in progress
□ Applicable □Not Applicable
15. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Buildings and Machinery and Transportation Land use rights Total
structures equipment equipment
I. Gross carrying
amount
1.Opening balance 39223474.23 76579722.44 1688686.86 1430192.50 118922076.03
2.Increase during
the current period
New lease
5362209.415362209.41
contracts
3.Decrease during
the current period
Lease modification -5387646.57 -663117.41 -6050763.98
Translation
differences of
foreign currency -2598459.46 5878401.23 -3315.66 3276626.11
financial
statements
4.Closing balance 36599577.61 82458123.67 1688686.86 763759.43 121510147.57
II. Accumulated
depreciation
1.Opening balance -17486087.52 -12196326.75 -738715.16 -1279327.74 -31700457.17
2.Increase during
the current period
(1) Provision -13019889.69 -4879136.76 -253325.79 -128150.80 -18280503.04
3.Decrease during
the current period
(1) Disposal
Lease modification 1402758.18 663117.41 2065875.59
Translation
differences of
foreign currency 1702683.52 -4454972.06 1093.89 -2751194.65
financial
statements
4.Closing balance -27400535.51 -21530435.57 -992040.95 -743267.24 -50666279.27
III. Carrying
amount
1.Closing carrying
amount 9199042.10 60927688.10 696645.91 20492.19 70843868.30
188AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
2.Opening carrying
amount 21737386.71 64383395.69 949971.70 150864.76 87221618.86
(2) Impairment testing of right-of-use assets
□ Applicable □Not Applicable
16. Intangible Assets
(1) Intangible assets
Unit: RMB
Item Land use rights Customer Software Other Total
relationships
I. Gross carrying
amount
1.Opening balance 1424108334.17 461040810.82 1885149144.99
2.Increase during
the current period
(1) Purchases 226339105.54 64661002.78 169501.00 291169609.32
(2) Internal
research and
development
(3) Increase from
business 8992000.00 588405.69 128200000.00 4440362.99 142220768.68
combination
3.Decrease during
the current period
(1) Disposal -433999.44 -433999.44
Translation
differences of
foreign currency 905748.20 905748.20
financial
statements
4.Closing
balance 1659439439.71 526761968.05 128200000.00 4609863.99 2319011271.75
II. Accumulated
amortization
1.Opening
balance -317634026.52 -369906875.83 -687540902.35
2.Increase
during the current
period
(1) Provision -46415364.62 -68140428.95 -1068333.33 -38437.99 -115662564.89
3.Decrease
during the current
period
(1) Disposal 311985.32 311985.32
189AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Translation
differences of
foreign currency -453801.05 -453801.05
financial
statements
4.Closing
balance -364049391.14 -438189120.51 -1068333.33 -38437.99 -803345282.97
III. Carrying
amount
1.Closing carrying
amount 1295390048.57 88572847.54 127131666.67 4571426.00 1515665988.78
2.Opening
carrying amount 1106474307.65 91133934.99 1197608242.64
At the end of the period intangible assets generated from the Company's internal research and development represented 0.00% of the
balance of intangible assets.
17. Goodwill
(1) Original carrying amount of goodwill
Unit: RMB
Decrease
Increase during the during the
Name of investee or matter giving rise to current period current
Opening balance Closing balance
goodwill period
Arising from business
Disposal
combination
Wuxi Huayang 58157105.78 58157105.78
Honghengsheng 20406065.22 20406065.22
Total 20406065.22 58157105.78 78563171.00
Other disclosures
The increase in goodwill during the year mainly arose from the acquisition of a 53.68% equity interest in Wuxi Huayang and its
subsidiary Jiangsu Xuanggan. All goodwill of the Group has been allocated to the relevant asset groups or groups of asset groups at
the acquisition date. In 2025 there was no change in the allocation of goodwill.In performing impairment testing the Group determined revenue growth rates and gross profit margins based on historical experience
and forecasts of market development. Growth rates during the forecast period were based on the approved five-year budget while the
steady-state growth rate was the growth rate used after the forecast period which was consistent with forecast data contained in
authoritative industry reports and did not exceed the long-term average growth rates of the respective products. The discount rate was
a pre-tax discount rate reflecting the specific risks of the relevant asset group or group of asset groups. After comparing the fair value
less costs of disposal of the relevant asset groups with the present value of estimated future cash flows the Group determined the
recoverable amount based on the present value of estimated future cash flows. As the recoverable amount exceeded the carrying amount
no impairment provision was recognized.
18. Long-term Deferred Expenses
Unit: RMB
Item Opening balance Increase during the Amortization Other Closing balance
190AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
current period amount for the decreasesamount
current period
Leasehold
1949340.941718205.27695548.282971997.93
improvements
Total 1949340.94 1718205.27 695548.28 2971997.93
19. Deferred Tax Assets / Deferred Tax Liabilities
(1) Deferred tax assets before offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment
provision 175914101.93 31443327.77 228435202.22 38646254.24
Unrealized profit from
internal transactions 334565710.61 53999298.59 234520621.31 38297009.67
deductible losses 25473205.32 6368301.33
Accrued expenses and
558923986.9893709128.09508844441.6783563628.10
unpaid salaries
Deferred income 390483172.88 59714142.53 359277511.49 55744293.33
Depreciation of fixed
285808639.0743236233.0891813203.9313771980.59
assets
Changes in fair value of
30940159.007735039.7530502634.007625658.50
financial assets
Lease liabilities 3449478.77 524739.22 24667676.04 5688028.38
Unrealized exchange
136887.6422586.463696157.38729351.38
gains/losses
Total 1780222136.88 290384495.49 1507230653.36 250434505.52
(2) Deferred tax liabilities before offsetting
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Depreciation of fixed
2588372324.40388255848.661986033401.47297905010.22
assets
Changes in fair value of
778133227.22138499715.57234774971.1544643708.94
financial assets
Accrued profit
654542877.88163635719.47654542877.88163635719.47
distribution
Right-of-use assets 3335677.11 507506.07 23386871.41 5369416.27
Unrealized interest
20178223.603026733.54
receivable
191AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Business combination 184488775.13 28321653.67 6127709.36 1531927.34
Total 4208872881.74 719220443.44 2925044054.87 516112515.78
(3) Deferred tax assets or liabilities presented on a net basis after offsetting
Unit: RMB
Closing offset amount Closing balance of Opening offset amount Opening balance of
Item of deferred tax assets deferred tax assets or of deferred tax assets deferred tax assets or
and liabilities liabilities after offset and liabilities liabilities after offset
Deferred tax assets 158240012.02 132144483.47 110911979.44 139522526.08
Deferred tax liabilities 158240012.02 560980431.42 110911979.44 405200536.34
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 39688048.53 29348558.89
Deductible losses 1473927875.60 660430781.97
Total 1513615924.13 689779340.86
(5) Deductible losses for which deferred tax assets were not recognized will expire in the following years
Unit: RMB
Year Closing amount Opening amount Remarks
202436629229.07
2025134284248.50227420629.23
2026177642626.98177642626.98
20271615863.6819148552.72
2028371557129.73199589743.97
2029788828006.71
Total 1473927875.60 660430781.97
20. Other Non-current Assets
Unit: RMB
Closing balance Opening balance
Item Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount provision amount provision
Prepayments for
construction and 354010580.02 354010580.02 73612075.46 73612075.46
equipment
Long-term
148938476.71148938476.7126917106.2626917106.26
deposits
Total 502949056.73 502949056.73 100529181.72 100529181.72
192AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
21. Short-term borrowings
(1) Short-term borrowings by category
Unit: RMB
Item Closing balance Opening balance
Credit borrowings 3925334770.72 3256896552.17
Total 3925334770.72 3256896552.17
Description of short-term borrowings by category:
As at 31 December 2025 the Group had no overdue short-term borrowings and the interest rates ranged from 1.68% to 8.30% (31
December 2024: 1.98% to 8.50%).
22. Accounts Payable
(1) Accounts payable
Unit: RMB
Item Closing balance Opening balance
Payables for materials 5342766196.19 4735694399.53
Payables for maintenance services 209948321.18 231601231.63
Payables for processing services 61553713.52 58553870.93
Other 47334075.96 53598955.08
Total 5661602306.85 5079448457.17
(2) Significant accounts payable aged over one year or overdue
Unit: RMB
Item Closing balance Reason for non-payment or carry-forward
Payables for
14023601.11 The amount has not yet been finally settled
materials
Total 14023601.11
(3) Whether there are overdue unpaid amounts owed to small and medium-sized enterprises
Whether the Company is a large enterprise
□Yes □ No
Whether there are overdue unpaid amounts owed to small and medium-sized enterprises
□ Yes □No
23. Other Payables
Unit: RMB
Item Closing balance Opening balance
Other payables 1903549987.03 1584470358.11
193AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Total 1903549987.03 1584470358.11
(1) Other payables
1) Other payables by nature
Unit: RMB
Item Closing balance Opening balance
Payables for equipment and construction 1239987574.99 958027059.37
Accrued expenses 260123303.07 243621848.04
Equity repurchase payable 145389160.80 222759750.00
Deposits payable 102985897.81 87130220.55
Amounts payable to related parties 55083652.29 20586616.07
Other 99980398.07 52344864.08
Total 1903549987.03 1584470358.11
2) Significant other payables aged over one year or overdue
Unit: RMB
Reason for non-payment or carry-
Item Closing balance
forward
Equity repurchase payable 145389160.80 Repurchase payments for restricted shares
Total 145389160.80
24. Contract Liabilities
Unit: RMB
Item Closing balance Opening balance
Advances from customers 32410207.62 59832456.69
Total 32410207.62 59832456.69
25. Employee Benefits Payable
(1) Employee benefits payable
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
current period current period
I. Short-term employee
benefits 894013739.22 5139788443.28 -5166999285.17 866802897.33
II. Post-employment
benefits - defined 1828905.02 520373408.63 -519975416.27 2226897.38
contribution plans
Total 895842644.24 5660161851.91 -5686974701.44 869029794.71
194AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Short-term employee benefits
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
current period current period
1 、 Wages bonuses
873408317.004566763988.51-4599958479.13840213826.38
allowances and subsidies
2 、 Employee welfare
9632403.8568386464.85-63785148.6614233720.04
expenses
3 、 Social insurance
3568029.46244633698.22-244164389.004037338.68
premiums
Including: medical
1824810.12201589010.60-201747686.071666134.65
insurance premiums
Work injury
1743219.3427934454.79-27306470.102371204.03
insurance premiums
Maternity
15110232.83-15110232.83
insurance premiums
4、Housing provident fund 5698782.99 180767616.62 -179998640.11 6467759.50
5、 Trade union funds and
1706205.9279236675.08-79092628.271850252.73
employee education funds
Total 894013739.22 5139788443.28 -5166999285.17 866802897.33
(3) Defined contribution plans
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
current period current period
1、Basic pension
insurance 1828905.02 502070565.33 -501672572.97 2226897.38
2、Unemployment
insurance premiums 18302843.30 -18302843.30
3、Enterprise annuity
contributions
Total 1828905.02 520373408.63 -519975416.27 2226897.38
26. Taxes Payable
Unit: RMB
Item Closing balance Opening balance
VAT 3946534.74 2314494.46
Enterprise income tax 156461863.41 242197335.77
Individual income tax 6737646.41 6654587.50
Urban maintenance and construction tax 22388753.01 23809589.81
Education surcharge payable 15991966.46 17006849.93
Property tax payable 10690173.65 10242767.06
195AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Urban land use tax payable 998576.75 958559.38
Other 8123650.31 6873258.74
Total 225339164.74 310057442.65
27. Non-current Liabilities Due Within One Year
Unit: RMB
Item Closing balance Opening balance
Lease liabilities due within one year 13921869.71 17386791.31
Total 13921869.71 17386791.31
28. Long-term Borrowings
(1) Long-term borrowings by category
Unit: RMB
Item Closing balance Opening balance
Credit borrowings 375720008.30 179710003.01
Total 375720008.30 179710003.01
Other disclosures including the interest rate range:
As at 31 December 2025 the Group had no overdue long-term borrowings and the interest rates ranged from 2.50% to 7.04% (31
December 2024: 7.04%).
29. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 73954577.84 90317294.30
Less: non-current liabilities due within
-13921869.71-17386791.31
one year
Total 60032708.13 72930502.99
Other disclosures:
As at 31 December 2025 and 31 December 2024 matters not included in the Group's lease liabilities but that will give rise to potential
future cash outflows included the following:
As at 31 December 2025 lease payments under lease contracts signed by the Group but not yet commenced amounted to RMB
8185479.95 (31 December 2024: RMB 2153400.00).
As at 31 December 2025 the future minimum rentals payable under the Group's short-term leases and leases of low-value assets
accounted for under the simplified approach amounted to RMB 1715835.92 and RMB 3323120.59 respectively (31 December 2024:
RMB 3365249.09 and RMB 1372741.57) of which RMB 3358390.68 was payable within one year and RMB 1680565.83 was
payable after one year.
30. Deferred Income
Unit: RMB
Increase during the Decrease during
Item Opening balance Closing balance Cause of formation
current period the current period
196AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Government grants 359277511.49 132281900.00 101076238.61 390483172.88
Total 359277511.49 132281900.00 101076238.61 390483172.88 --
31. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Long-term income tax payable 80831200.00
Total 80831200.00
32. Share Capital
Unit: RMB
Increase/decrease in the current change (+/-)
Opening balance Conversion of Issuance of Bonus Closing balance
capital reserve into Other Subtotal
new shares shares
share capital
Total
number of - -2318560816.00 2318051016.00
shares 509800.00 509800.00
Other disclosures:
According to the resolution on the repurchase and cancellation of certain restricted shares under the 2021 Restricted Share Incentive
Plan and the 2024 Restricted Share Incentive Plan considered and approved at the 15th meeting of the third session of the Board and
the 11th meeting of the third session of the Supervisory Committee of the Company held on April 8 2025 the Company repurchased
and cancelled 74000 restricted shares held by six departed incentive recipients and one incentive recipient who failed to meet the
assessment conditions under the 2021 Restricted Share Incentive Plan that had been granted but had not yet been released from lock-
up as well as restricted shares held by 242 current incentive recipients that could not be released from lock-up during the fourth release
period because the Company's 2024 results did not meet the performance assessment targets. After completion of the repurchase the
total share capital of the Company changed accordingly.According to the resolution on the repurchase and cancellation of certain restricted shares under the 2021 Restricted Share Incentive
Plan considered and approved at the eighth meeting of the third session of the Board held on 29 March 2024 and the 2023 annual
general meeting held on 24 April 2024 the Company repurchased and cancelled 156000 restricted shares held by eight departed
incentive recipients and one incentive recipient who failed to meet the assessment conditions that had been granted but had not yet
been released from lock-up as well as 1721000 restricted shares held by 249 current incentive recipients that could not be released
from lock-up during the third release period because the Company's 2023 results did not meet the performance assessment targets.After completion of the repurchase the total share capital of the Company changed accordingly.
33. Capital Reserve
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
current period current period
Capital premium (share
premium) 11904803393.57 6926827.19 8348436.36 11903381784.40
197AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Other capital reserve 800346741.92 78821964.00 9169303.69 869999402.23
Total 12705150135.49 85748791.19 17517740.05 12773381186.63
Other disclosures including movements during the current period and reasons for changes:
(a) 2017 Restricted Share Incentive Plan
(i) Overview
Pursuant to the board resolution of the then Company dated 14 February 2017 and the Framework Agreement on the Employee
Shareholding Plan of Fukui Precision Component (Shenzhen) Co. Ltd. signed on 27 February 2017 (the "Grant Date") the Company
applied to increase its registered capital by USD26254888 (representing 9.9065% of the Company's equity as at the date of capital
increase). The newly increased registered capital was fully paid up before 28 February 2017 by Changyi Investment Zhenji Investment
Hengxiang Investment Yifu Investment Xinqun Investment Debang Investment Yuefeng and Dele Investment (collectively the
"Employee Shareholding Platforms") with the total capital contribution amounting to USD120.6456 million (equivalent to
RMB829438463.00). Based on RMB1.00 per unit of capital contribution the subscription price was equivalent to RMB4.60 per share
(the "Employee Subscription Price"). The portion by which the Employee Subscription Price was lower than the fair value of the
Company's equity units on the Grant Date constituted share?based payment.In June 2017 the Company introduced external investors through a capital increase at an investment price of RMB 8.5 per share. After
comprehensive consideration of factors including the income approach valuation without control and liquidity as of the Grant Date
the price-to-earnings ratios of comparable transactions in the same industry and the capital increase price paid by the external investors
the Group selected the external investors' investment price of RMB 8.5 as the fair value of the Company's equity units at the time the
Employee Shareholding Platforms made capital contributions to the Company on the Grant Date (the "fair value of granted equity
units").Pursuant to the Framework Agreement and related supplemental agreements shareholding employees were subject to strict service
period restrictions. After 36 months of continuous service from the day following the Grant Date 20% of their shareholding interests
could be released from restrictions and thereafter another 20% could be released for each additional 12 months of service until the
service period was completed. Accordingly the Group determined that the amortization periods for share-based payment expenses
corresponding to each 20% portion were three four five six and seven years respectively. At each balance sheet date during the
maximum seven-year service period commencing from 28 February 2017 the Group made the best estimate of the number of shares
expected to vest based on the latest subsequent information such as employee turnover rates and revised the number of shares expected
to vest.(ii) Movements in restricted shares during the year
20252024
Restricted shares outstanding at the beginning of the year
—36654411
(shares)
Restricted shares unlocked during the year (shares) — -36654411
Restricted shares outstanding at year-end (shares) — -
Share-based payment expenses for the current year — 3134844.00
Accumulated share-based payment expenses — 704004666.92
198AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
In 2024 the amounts of share-based payment expenses included in operating costs selling expenses administrative expenses and
research and development expenses were RMB1286154.09 RMB185007.03 RMB759989.77 and RMB903693.11 respectively.(iii) The Group determined the fair value of the restricted shares on the grant date based on the investment price paid by external
investors. On the grant date the fair value of each restricted share was RMB8.5 and the difference between such fair value and the
capital increase price of RMB4.6 per share paid by the incentive recipients was recognized as share-based payment expenses.(b) 2021 Restricted Share Incentive Plan
(i) Overview
Pursuant to the resolutions considered and approved at the 11th meeting of the second session of the Board of the Company held on 20
April 2021 and the 2020 annual general meeting held on 12 May 2021 the Company granted 10085000 restricted ordinary shares
denominated in Renminbi to 287 restricted share incentive recipients with 15 June 2021 as the grant date. During the grant registration
process one incentive recipient waived the subscription for 40000 restricted shares for personal reasons and such restricted shares
were cancelled. Therefore the number of restricted shares actually granted by the Company was adjusted accordingly.According to the Restricted Share Incentive Plan (Draft) of Avary Holding (Shenzhen) Co. Limited approved by the resolution of the
general meeting held on 12 May 2021 shareholding employees were subject to strict service period restrictions. For every 12 months
of continuous service from the grant date 20% of their shareholding interests could be released from restrictions until the service period
was completed. Under the incentive plan if an incentive recipient resigned before the end of the service period the shares could not
be unlocked and the Company was required to repurchase and cancel the corresponding restricted shares at the grant price. On 23 June
2021 the Company received capital contributions totaling RMB 165139800.00 and recognized a liability for the repurchase obligation
of the restricted shares.(ii) Movements in restricted shares during the year
20252024
Restricted shares outstanding at the beginning of the year
34080005199000
(shares)
Restricted shares unlocked during the year (shares) -1336800 -
Restricted shares cancelled during the year (shares) -413200 -1791000
Restricted shares outstanding at year-end (shares) 1658000 3408000
Share-based payment expenses for the current year 7356073.00 5303827.28
Accumulated share-based payment expenses 80413674.28 73057601.28
In 2025 share-based payment expenses included in operating costs selling expenses administrative expenses and research and
development expenses amounted to RMB3262537.82 RMB430103.59 RMB1382593.19 and RMB2280838.40 respectively
(2024 provisions: RMB2176037.84 RMB313012.48 RMB1285822.98 and RMB1528953.98 respectively).
(iii) As at 31 December 2025 the remaining term of the restricted share incentive plan was five and a half months ending on 15 June
2026.
(iv) The weighted average share price of restricted shares cancelled during the year calculated on the cancellation date was RMB29.95;
the weighted average share price of restricted shares unlocked during the year calculated on the unlocking date was RMB39.46.
199AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(v) Method for determining the fair value of restricted shares on the grant date
The Group determined the fair value of the restricted shares on the grant date based on the closing price of the Company’s shares on
the grant date. On the grant date the fair value of each restricted share was RMB29.13 and the difference between such fair value and
the capital increase price of RMB16.44 per share paid by the incentive recipients was recognized as share-based payment expenses.(c) 2024 Restricted Share Incentive Plan
(i) Overview
Pursuant to the resolutions considered and approved at the first extraordinary general meeting of 2024 held on 9 September 2024 and
the 11th meeting of the third session of the Board held on 13 September 2024 the Company granted 9469900 restricted ordinary
shares denominated in Renminbi to 388 restricted share incentive recipients with 13 September 2024 as the grant date. Since seven
intended incentive recipients voluntarily waived the subscription for all restricted shares proposed to be granted to them for personal
reasons the Board allocated and adjusted the restricted shares waived by such employees among the remaining incentive recipients.After the adjustment the number of restricted shares proposed to be granted under the incentive plan was adjusted accordingly.According to the proposal on the 2024 Restricted Share Incentive Plan (Draft) and its summary of Avary Holding (Shenzhen) Co.Limited approved by the resolution of the first extraordinary general meeting of 2024 held on September 9 2024 the restricted shares
granted under the incentive plan will be released from lock-up in three tranches after 12 months from the grant registration date with
release ratios of 30% 30% and 40% respectively. Shareholding employees are subject to strict performance assessment restrictions.Under the incentive plan the actual number of restricted shares to be released from lock-up each year is determined based on the
Company's performance assessment and individual performance assessment results. Restricted shares that cannot be released from
lock-up in a given assessment year may not be carried forward to subsequent years.(c) 2024 Restricted Share Incentive Plan (continued)
(ii) Movements in restricted shares during the year
20252024
Restricted shares outstanding at the beginning of
9419900-
the year (shares)
Restricted shares issued during the year (shares) - 9469900
Restricted shares unlocked during the year (shares) -2611412 -
Restricted shares cancelled during the year (shares) -312558 -50000
Restricted shares outstanding at year-end (shares) 6495930 9419900
Share-based payment expenses for the current year 71465891.00 23284473.72
Accumulated share-based payment expenses 94750364.72 23284473.72
In 2025 share-based payment expenses included in operating costs selling expenses administrative expenses and research and
development expenses amounted to RMB31696283.15 RMB4178552.38 RMB13432201.38 and RMB22158854.09
respectively (2024 provisions: RMB9553081.83 RMB1374164.46 RMB5644925.78 and RMB6712301.65 respectively).(iii) As at 31 December 2025 the remaining term of the restricted share incentive plan was one year and eight and a half months
ending on 13 September 2027.
200AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(iv) The weighted average share price of restricted shares cancelled during the year calculated on the cancellation date was RMB29.95;
the weighted average share price of restricted shares unlocked during the year calculated on the unlocking date was RMB48.99.(v) Method for determining the fair value of restricted shares on the grant date
The Group determined the fair value of the restricted shares on the grant date based on the closing price of the Company’s shares on
the grant date. On the grant date the fair value of each restricted share was RMB33.75 and the difference between such fair value and
the grant price of RMB17.70 per restricted share was recognized as share-based payment expenses.
34. Treasury Shares
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
current period current period
Treasury shares 257454835.82 86226524.45 171228311.37
Total 257454835.82 86226524.45 171228311.37
Other disclosures including movements during the current period and reasons for changes:
According to the proposal on the 2024 Restricted Share Incentive Plan (Draft) and its summary of Avary Holding (Shenzhen) Co.Limited approved by the resolution of the first extraordinary general meeting of 2024 held on September 9 2024 the restricted shares
granted under the incentive plan will be released from lock-up in three tranches after 12 months from the grant registration date with
release ratios of 30% 30% and 40% respectively. Shareholding employees are subject to strict performance assessment restrictions.Under the incentive plan the actual number of restricted shares to be released from lock-up each year is determined based on the
Company's performance assessment and individual performance assessment results. Restricted shares that cannot be released from
lock-up in a given assessment year may not be carried forward to subsequent years.
201AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
35. Other Comprehensive Income
Unit: RMB
Current period amount
Less: amounts
previously Less: amounts
included in previously
Amount incurred other included in other Attributable to Closing
Item Opening balance Attributable to the before income tax comprehensive comprehensive Less: income tax minority
parent company balance
during the current income income transferred expense shareholders
after tax
period transferred to to retained after tax
profit or loss earnings in the
in the current current period
period
I. Other comprehensive
income that will not be 112714499.66 470215948.19 -46068986.79 -82363512.45 341783448.95 454497948.61
reclassified to profit or loss
Changes in fair value
of investments in other 112714499.66 470215948.19 -46068986.79 -82363512.45 341783448.95 454497948.61
equity instruments
II. Other comprehensive
income that may be 111643058.59 70327356.38 65526971.68 4800384.70 177170030.27
reclassified to profit or loss
Translation
differences of foreign
111643058.5970327356.3865526971.684800384.70177170030.27
currency financial
statements
Total other comprehensive
224357558.25540543304.57-46068986.79-82363512.45407310420.634800384.70631667978.88
income
36. Surplus Reserve
Unit: RMB
Item Opening balance Increase during the current period Decrease during the current period Closing balance
202AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Statutory surplus reserve 1160218908.00 1160218908.00
Total 1160218908.00 1160218908.00
203AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Explanation of surplus reserve including movements during the current period and reasons for changes:
Pursuant to the Company Law of the People’s Republic of China and the Company’s Articles of Association the Company appropriates
10% of its annual net profit to the statutory surplus reserve. When the accumulated statutory surplus reserve reaches 50% or more of
the registered capital no further appropriation is required. Upon approval the statutory surplus reserve may be used to make up losses
or increase share capital. As resolved by the shareholders’ meeting the Company’s surplus reserve has reached 50% of its registered
capital and no statutory surplus reserve was appropriated in 2025 (2024: nil).
37. Undistributed Profits
Unit: RMB
Item Current period Prior period
Adjusted opening undistributed profits 15959010975.84 13493205042.51
Add: net profit attributable to owners of
the parent company for the current period 3737843458.40 3620351391.33
Transfer from other comprehensive
46068986.79
income
Distribution to shareholders -2318051016.00 -1154545458.00
Closing undistributed profits 17424872405.03 15959010975.84
38. Operating Revenue and Operating Costs
Unit: RMB
Current period amount Prior period amount
Item
Income Cost Income Cost
Principal business 38842549642.22 30481034398.76 35015188542.33 27737868160.19
Other business 304459750.05 249384043.33 125195955.70 105757245.28
Total 39147009392.27 30730418442.09 35140384498.03 27843625405.47
Whether the lowest of the audited total profit net profit and net profit after deducting non-recurring gains and losses for the reporting
period was negative
□ Yes □ No
Breakdown of operating revenue and operating costs:
Unit: RMB
Consolidated revenue Total
Contract category
Operating revenue Operating costs Operating revenue Operating costs
Business type 39147009392.27 30730418442.09 39147009392.27 30730418442.09
Including:
Boards for
25436736536.7420596717935.3925436736536.7420596717935.39
communications
Boards for consumer
electronics and 11286967768.28 8222062160.93 11286967768.28 8222062160.93
computers
Boards for automotive
2118845337.201662254302.442118845337.201662254302.44
servers and others
Other businessincome 304459750.05 249384043.33 304459750.05 249384043.33
Total 39147009392.27 30730418442.09 39147009392.27 30730418442.09
204AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Information related to the transaction price allocated to the remaining performance obligations:
As at the end of the reporting period the revenue corresponding to performance obligations under contracts that had been signed but
not yet performed or not yet fully performed amounted to RMB 18499311379.33 of which RMB 18499311379.33 is expected to
be recognized as revenue in 2026.
39. Taxes and Surcharges
Unit: RMB
Item Current period amount Prior period amount
Urban maintenance and construction tax 76961273.72 104096820.01
Education surcharge 55356981.30 74648978.72
Property tax 75595827.07 64126233.54
Land use tax 6822426.37 6510749.82
Stamp duty 24698708.34 22115540.62
Other 8389623.21 3040101.65
Total 247824840.01 274538424.36
40. Administrative Expenses
Unit: RMB
Item Current period amount Prior period amount
Employee benefit expenses 732036786.01 586740301.03
Depreciation and amortization expenses 363850573.94 305458645.01
Professional service fees 87100071.65 81058163.78
Utilities expenses 40864413.16 38057674.11
Repair expenses 30734513.00 24440551.97
Greening and environmental protection
30514773.5120238840.25
expenses
Security service fees 27768862.55 22647185.23
Property management fees 26888298.47 23926326.77
Material consumption 25004281.70 19610583.85
Lease expenses 24367195.36 7663511.31
Share-based payment expenses 14814794.57 7690738.53
Insurance expenses 11580810.38 4010982.75
Travel expenses 11431950.96 11890237.04
Amortization of low-value consumables 8184752.83 5452260.05
Depreciation of right-of-use assets 6926980.84 5958515.24
Postage and telecommunications
6119397.026111777.95
expenses
Employee recruitment 5309428.74 4068410.30
Office expenses 4335254.41 3945591.57
Inspection fees 1178919.00 795561.02
Other expenses 25253593.14 24635469.80
205AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Total 1484265651.24 1204401327.56
41. Selling Expenses
Unit: RMB
Item Current period amount Prior period amount
Employee benefit expenses 140420257.97 109633867.58
Professional service fees 59559332.51 46175994.19
Import and export expenses 26874968.94 26897276.99
Storage fees 9402316.82 10058389.74
Depreciation and amortization expenses 2079142.39 1670395.81
Travel expenses 5811897.04 5998034.80
Mold expenses 7670012.53 1747862.40
Share-based payment expenses 4608655.97 1872183.97
Material consumption 883236.70 2136961.54
Other 15548770.27 9347121.02
Total 272858591.14 215538088.04
42. Research and Development Expenses
Unit: RMB
Item Current period amount Prior period amount
Trial production and mold expenses 1087001054.07 1123154809.47
Employee benefit expenses 1031666644.46 886009705.53
Depreciation and amortization expenses 109566949.39 100431183.92
Packaging and material consumption 75372249.55 77322578.75
Repair expenses 73609374.25 72914200.97
Share-based payment expenses 24439692.49 9144948.74
Other 57335742.58 55497327.11
Total 2458991706.79 2324474754.49
43. Finance Expenses
Unit: RMB
Item Current period amount Prior period amount
Interest expense on borrowings 125974061.27 117125507.99
Add: interest expense on lease liabilities 1411306.26 2676793.75
Less: fiscal interest subsidies (Note
-2350000.00-6150546.00
IV(31))
Less: interest income -434880480.59 -445274282.35
Exchange (losses)/gains 170489568.23 -406679142.06
Handling charges 2283454.71 1959255.58
206AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Total -137072090.12 -736342413.09
44. Other Income
Unit: RMB
Sources of other income Current period amount Prior period amount
Technical renovation subsidies 71192163.83 49801695.63
Industrial investment subsidies 16534712.84 23137269.38
Industrial project subsidies 13349361.94 11727654.67
Enterprise support funds 25946136.02 21503123.00
Employment security subsidies 11752131.41 8383596.75
Maternity allowances 2514353.98 2055950.79
Refund of individual income tax
1457980.882017055.97
withholding handling fees
Other 4599809.19 11266681.33
45. Gains from Changes in Fair Value
Unit: RMB
Source of gains from changes in fair
Current period amount Prior period amount
value
Other non-current financial assets 78050851.71 -39277221.73
Total 78050851.71 -39277221.73
46. Investment Income
Unit: RMB
Item Current period amount Prior period amount
Investment income from long-term equity
investments accounted for under the -3087631.90 316617.13
equity method
Investment income from disposal of held-
for-trading financial assets 7192035.19
Dividend income from investments in
other equity instruments during the 18397185.27 9314416.22
holding period
Losses from disposal of subsidiaries -7976623.70
Total 14524964.86 9631033.35
47. Credit Impairment Losses
Unit: RMB
Item Current period amount Prior period amount
Bad debt losses on notes receivable -222683.06 -170355.26
Bad debt losses on accounts receivable -1129241.91 2307139.10
207AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Bad debt losses on other receivables -214547.76 8879.89
Bad debt losses on receivables financing -118718.16
Total -1685190.89 2145663.73
48. Asset Impairment Losses
Unit: RMB
Item Current period amount Prior period amount
I. Losses from decline in value of inventories and impairment of
contract fulfillment costs -41709755.03 -79459642.39
IV. Impairment losses on fixed assets -8634244.42 -267614.00
Total -50343999.45 -79727256.39
49. Gains from Disposal of Assets
Unit: RMB
Source of gains from disposal of assets Current period amount Prior period amount
Gains from disposal of assets 15159360.90 6675515.13
50. Non-operating income
Unit: RMB
Amount included in current
Item Current period amount Prior period amount non-recurring gains and
losses
Penalty income 4474107.24 3425745.71 4474107.24
Compensation income 685626.78 4536616.12 685626.78
Other 319410.48 340362.54 319410.48
Total 5479144.50 8302724.37 5479144.50
51. Non-operating Expenses
Unit: RMB
Amount included in current
Item Current period amount Prior period amount non-recurring gains and
losses
External donations 3482449.35 4409000.00 3482449.35
Late payment charges 8523584.41 330727.94 8523584.41
Losses on retirement of non-
810664.93171499.27810664.93
current assets
Liquidated damages 2086740.98
Other 1669097.49 329582.74 1669097.49
Total 14485796.18 7327550.93 14485796.18
208AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
52. Income Tax Expenses
(1) Income tax expenses
Unit: RMB
Item Current period amount Prior period amount
Current income tax expense 516189758.50 426149656.54
Deferred income tax expense 54273552.60 -732552.01
Total 570463311.10 425417104.53
(2) Reconciliation of accounting profit to income tax expense
Unit: RMB
Item Current period amount
Total profit 4283768236.66
Income tax expense calculated at statutory/applicable tax rate 1073232944.37
deductible temporary differences for which deferred tax assets were not recognized in prior years but
recognized in the current year -5087503.77
Effect of non-taxable income -83304834.81
Effect of non-deductible costs expenses and losses 30992456.54
Effect of deductible losses for which deferred tax assets were not recognized in prior periods but used
in the current period -27667265.42
Effect of deductible temporary differences or deductible losses for which deferred tax assets were not
recognized in the current period 169959113.16
Effect of preferential tax rates -362429320.85
Additional deductible expenses -272605525.96
Differences arising from final settlement of income tax for prior years 47373247.84
Income tax expense 570463311.10
Other disclosures
The Group falls within the scope of the Global Anti-Base Erosion Rules ("GloBE") under Pillar Two issued by the Organisation for
Economic Co-operation and Development ("OECD"). The Pillar Two rules have been enacted in certain jurisdictions where subsidiaries
are registered and became effective in Hong Kong Thailand and Singapore in 2025. Under these regulations if the Group's effective
tax rate in a tax jurisdiction is below the minimum tax rate of 15% the Group is required to pay top-up tax on the difference. In 2025
the Group recognized income tax expense related to Pillar Two in accordance with these regulations. The Group will continue to assess
the impact of these regulations.
53. Other Comprehensive Income
Please refer to Note VII (35).
54. Items in the Cash Flow Statement
(1) Cash related to operating activities
Other cash received relating to operating activities
Unit: RMB
209AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Item Current period amount Prior period amount
Interest income received 439072927.08 426109136.67
Government grant income received 180902311.48 249746102.34
other 12795901.27 11943037.18
Total 632771139.83 687798276.19
Other cash paid relating to operating activities
Unit: RMB
Item Current period amount Prior period amount
R&D expenditures 962093718.12 1149640037.81
Transportation expenses 271488768.47 228595194.89
Production capacity deposits 223837957.65 0.00
Lease payments 126604414.84 154305489.05
Greening and environmental protection
121635150.53105047752.17
expenditures
Import and export expenses 87151000.65 74764026.55
Property management fees 25048149.62 10628595.22
Office expenditures 19205270.58 11580223.10
Labor protection expenditures 16463880.83 19916160.63
Other 13265966.77 12999297.67
Total 1866794278.06 1767476777.09
(2) Cash related to financing activities
Other cash received relating to financing activities
Unit: RMB
Item Current period amount Prior period amount
Proceeds received from subscription of
0.00167617230.00
shares under equity incentives
Total 0.00 167617230.00
Other cash paid relating to financing activities
Unit: RMB
Item Current period amount Prior period amount
Payments for repayment of lease
19576901.6118810601.22
liabilities
Returned equity repurchase payments 9171604.80 30329040.00
Total 28748506.41 49139641.22
Changes in liabilities arising from financing activities
□Applicable □ Not Applicable
Unit: RMB
Increase during the current period Decrease during the current period
Opening
Item Non-cash Non-cash Closing balance balance Cash changes Cash changes
changes changes
210AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Bank
borrowing
s
(including 3436606555.18 23191024205.20 160874061.27 -22487450042.63 4301054779.02
those due
within one
year)
lease
liabilities
(including
90317294.303214185.15-19576901.6173954577.84
those due
within one
year)
Equity
repurchas
e payable
(including 222759750.00 -9171604.80 -68198984.40 145389160.80
those due
within one
year)
Total 3749683599.48 23191024205.20 164088246.42 -22516198549.04 -68198984.40 4520398517.66
55. Supplementary Information to the Cash Flow Statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Current
Supplementary information Prior periodamount
periodamount
1．Reconciliation of net profit to cash flows from operating activities
Net profit 3713304925.56 3619047741.72
Add: provision for asset impairment 50343999.45 79727256.39
Depreciation of fixed assets depletion of oil and gas assets and
depreciation of productive biological assets 3214558705.52 2955656729.67
Depreciation of right-of-use assets 18280503.04 16878043.81
Amortization of intangible assets 113208147.10 110154233.32
Amortization of long-term deferred expenses 695548.28 533120.02
Losses on disposal of fixed assets intangible assets and other long-term
assets (gains are presented with a minus sign) -14348695.97 -6504015.86
Losses on retirement of fixed assets (gains are presented with a minus sign)
Losses from changes in fair value (gains are presented with a minus sign) -78050851.71 39277221.73
Finance expenses (income is presented with a minus sign) 349341539.10 -24868943.97
Investment losses (income is presented with a minus sign) -14524964.86 -9631033.35
Decrease in deferred tax assets (increase is presented with a minus sign) 5775891.44 26328689.16
Increase in deferred tax liabilities (decrease is presented with a minus sign) 47964397.86 -25788524.44
Decrease in inventories (increase is presented with a minus sign) -428086203.23 -380947268.46
Decrease in operating receivables (increase is presented with a minus sign) -623018746.80 200612002.99
211AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Increase in operating payables (decrease is presented with a minus sign) 822962904.69 423208752.99
Other 107380185.58 58739660.80
Net cash flows from operating activities 7285787285.05 7082423666.52
2．Significant investing and financing activities not involving cash receipts and
payments
Land contribution by minority shareholders 161753722.00
Derecognition of receivables financing -12240567.10
Right-of-use assets added during the year 5362209.41 12548105.14
Final account adjustment decrease for headquarters building -2869870.03 -252852969.28
Unlocking of restricted shares -68198984.40
3．Net changes in cash and cash equivalents：
Closing balance of cash 11865580295.94 13393976259.24
Less: opening balance of cash 13393976259.24 10889042063.55
Add: closing balance of cash equivalents
Less: opening balance of cash equivalents
Net increase in cash and cash equivalents -1528395963.30 2504934195.69
(2) Net cash paid for acquisitions of subsidiaries during the year
Unit: RMB
Amount
Cash or cash equivalents paid during the current period for
business combinations occurring during the current period -262200000.00
Including:
Wuxi Huayang -262200000.00
Less: cash and cash equivalents held by the subsidiary on the
acquisition date -32966071.68
Including:
Wuxi Huayang -32966071.68
Including:
Net cash paid to acquire the subsidiary -229233928.32
(3) Net cash received from disposal of subsidiaries during the year
Unit: RMB
Amount
Cash or cash equivalents received during the current period from
disposal of subsidiaries 0.00
Including:
Yaoding Shenzhen 0.00
Less: cash and cash equivalents held by the subsidiary on the 87267881.65
212AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
date of loss of control
Including:
Yaoding Shenzhen 87267881.65
Including:
Net cash received from disposal of the subsidiary -87267881.65
(4) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 11865580295.94 13393976259.24
Including:Cash on hand 39300.81 52982.81
Cash at banks readily available for payment 11856876291.53 13393669142.47
Other monetary funds readily available for
payment 8664703.60 254133.96
III. closing balance of cash and cash equivalents 11865580295.94 13393976259.24
56. Foreign Currency Monetary Items
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing translated RMB
item Translation exchange rate
balance balance
Cash and cash equivalents
Including: USD 1361682901.83 7.0288 9570996780.49
Euro 424052.90 8.2355 3492287.65
HK dollar 5394733.20 0.9032 4872628.71
New Taiwan dollar 76743901.00 0.2236 17162504.98
Japanese yen 1172277771.00 0.0448 52516658.65
Thai baht 188407209.48 0.2225 41924167.66
Rupee 622718655.00 0.078 48550571.30
Singapore dollar 76522.90 5.4586 417706.66
Vietnamese dong 251960391.00 0.0003 66207.43
Accounts receivable
Including: USD 768541131.19 7.0288 5401921902.91
Euro
HK dollar
Rupee 263476137.56 0.078 20551138.73
Japanese yen 1142004.24 0.0448 51161.79
New Taiwan dollar 90543813.19 0.2236 20245596.63
213AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Long-term borrowings
Including: USD 25000000.00 7.0288 175720000.00
Euro
HK dollar
lease liabilities—
Including: NTD 260510220.53 0.2236 58250085.31
Thai baht 803091.42 0.2225 178687.84
HK dollar 195262.82 0.9032 176361.38
Short-term borrowings—
Including: NTD 10170218724.91 0.2236 2274060906.89
Rupee 5258238751.15 0.078 410142622.59
Thai baht 2353074747.10 0.2225 523559131.23
Payables—
Including: USD 327014648.64 7.0288 2298520562.36
Japanese yen 6023538206.03 0.0448 269854511.63
Thai baht 1325392787.51 0.2225 294899895.22
New Taiwan dollar 768784023.35 0.2236 171900107.62
HK dollar 8588277.57 0.9032 7756932.30
Euro 801859.04 8.2355 6603710.12
Rupee 67548573.33 0.078 5268788.72
Vietnamese dong 51839433.33 0.0003 15551.83
(2) Description of overseas operations including for significant overseas operations the principal place of
business functional currency and the basis for selection; if the functional currency changes the reasons
should also be disclosed.□Applicable □ Not Applicable
The Company's subsidiary Pengding International Limited has its principal place of business in Hong Kong and uses the US dollar as
its functional currency based on its operations;
The subsidiary of the Company's subsidiary Pengding International Limited Pengding Technology Co. Ltd. has its principal place of
business in Taiwan and uses New Taiwan dollars as its functional currency based on the currency of the primary economic environment
in which it operates.
57. Leases
(1) The Company as lessee
□Applicable □ Not Applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable □Not Applicable
Lease expenses for short-term leases or leases of low-value assets accounted for under the simplified approach
□Applicable □ Not Applicable
214AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
1. As at 31 December 2025 the future minimum rentals payable under the Group's short-term leases and leases of low-value assets
accounted for under the simplified approach amounted to RMB 1715835.92 and RMB 3323120.59 respectively (31 December 2024:
RMB 3365249.09 and RMB 1372741.57) of which RMB 3358390.68 was payable within one year and RMB 1680565.83 was
payable after one year.
2. The Group directly recognized rental expenses for short-term leases and low-value leases in current profit or loss amounting to
RMB 123119097.33 in 2025 (2024: RMB 141214943.44).
(2) The Company as lessor
Operating leases as lessor
□Applicable □ Not Applicable
Unit: RMB
Including: income relating to variable
Item Lease income lease payments not included in lease
receipts
Related-party leases 22521380.91
Third-party leases 53072422.91
Total 75593803.82
Finance leases as lessor
□ Applicable □Not Applicable
Undiscounted lease receipts for each of the next five years
□Applicable □ Not Applicable
Unit: RMB
Annual undiscounted lease receipts
Item
Closing amount Opening amount
Year 1 55412039.75 46998721.41
Year 2 49827028.56 47012979.22
Year 3 33641370.42 46901283.49
Year 4 22117335.87 30213060.48
Year 5 4366269.00 7866970.87
Total undiscounted lease receipts after
five years 985695.00 0.00
VIII. Changes in the Scope of Consolidation
1. Business Combinations Not Under Common Control
(1) Business combinations not under common control during the year
Unit: RMB
Basis for Revenue of Net profit Cash flows of
Percentag Method
Name determinin the acquiree of the the acquiree
Cost of equity e of of equity Acquisitio
of g the from the acquiree from the
acquisition equity acquisitio n date
acquiree acquisition acquisition from the acquisition
acquired n
date date to acquisition date to closing
215AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
closing date to
closing
Equity
Wuxi 30 Transfer
356724164.0 Cash 48987810.4 9149090.7 115656502.5
Huayan 53.68% October and Capital
0 purchase 3 2 9
g 2025 Increase
Agreement
(2) Combination cost and goodwill
Unit: RMB
Combination cost Wuxi Huayang
--Cash 356724164.00
--Fair value of non-cash assets
--Fair value of debt issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value at acquisition date of equity held before the
acquisition date
--Other
Total combination cost
Less: share of fair value of identifiable net assets acquired 298567058.22
Goodwill / amount by which combination cost is less than the
share of fair value of identifiable net assets acquired 58157105.78
(3) Identifiable assets and liabilities of the acquiree at the acquisition date
Unit: RMB
Wuxi Huayang
Fair value at acquisition date Carrying amount at acquisition date
Assets:
Cash and cash equivalents 32966071.68 32966071.68
Receivables 318406809.11 318406809.11
Inventories 68019500.47 60580427.30
fixed assets 117558160.11 89731689.59
Intangible assets 142220768.68 6198090.14
Other current assets 10206874.12 10206874.12
Long-term equity investments 16894296.61 7594190.91
Other non-current assets 7758504.97 7597713.05
Liabilities:
Borrowings -34900000.00 -34900000.00
Payables -86301525.78 -86301525.78
Deferred tax liabilities
Contract liabilities -16950.00 -16950.00
216AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Employee benefits payable -3276304.68 -3276304.68
Other liabilities -28497294.46 -1308463.44
Net assets 561038910.83 407478622.00
Less: minority interests 4852801.84 5041219.31
Net assets acquired 556186108.99 402437402.69
(4) Gains or losses arising from remeasurement of previously held equity interests at fair value at the acquisition date
Whether there were business combinations achieved in stages through multiple transactions and control was obtained during the
reporting period
□ Yes □No
2. Disposal of Subsidiaries
Whether there were transactions or events resulting in loss of control over subsidiaries during the year
□Yes □ No
Unit: RMB
Difference
between the
disposal
consideration
and the share of
Consideration Disposal Disposal Basis for net assets of the
Name of for disposal at percentage at method at the Time of loss of determining the subsidiary
subsidiary the time of loss the time of loss time of loss of control time of loss of corresponding
of control of control control control to the disposed
investment at
the
consolidated
financial
statement level
Yaoding 29 December Transfer
0.00 100.00% Disposal -7976623.70
Shenzhen 2025 agreement
Other disclosures:
On 29 December 2025 the Company disposed of all equity interests it held in Yaoding Shenzhen and its subsidiaries Yaoding Huai'an
and Yaoding Environmental Energy Technology (Qinhuangdao) Limited ("Yaoding Qinhuangdao") with a disposal loss of RMB
7976623.70.
Whether there were disposals of investments in subsidiaries in stages through multiple transactions resulting in loss of control during
the year
□ Yes □No
217AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
IX. Interests in Other Entities
1. Interests in Subsidiaries
(1) Composition of the Group
Unit: RMB
Principal Shareholding percentage
Name of Registered Place of Nature of Method of
place of
subsidiary capital registration business Direct Indirect acquisition business
Fubai Business
Industrial Leasing of combination
110069974.
(Shenzhen) Guangdong Guangdong self-owned 100.00% under
00
Co. Ltd. properties common
("Fubai") control
R&D
production Business
and sale of combination
233845623
Hongqisheng Hebei Hebei electronic 100.00% under
1.36
computers common
and control
components
R&D
Business
production
combination
Honghengsh 192648713 and sale of
Jiangsu Jiangsu 100.00% under
eng 0.00 electronic
common
components
control
and parts
R&D
production Business
and sale of combination
340152213
Qingding Jiangsu Jiangsu electronic 100.00% under
5.86
computers common
and control
components
Capital
Hong Kong Sale of Hong Kong contribution
Pengding Hong Kong Hong Kong electronic PengDing 100.00% and
China China components
Limited establishmenand parts
t
Capital
Sale of
contribution
Taiwan 452500000 Taiwan Taiwan electronic
100.00% and
Pengding 0.00 China China components
establishmen
and parts
t
Kuisheng Capital
Sale of
Technology contribution
20000000.0 electronic
(Shenzhen) Guangdong Guangdong 100.00% and
0 components
Co. Ltd. establishmen
and parts
("Kuisheng") t
Avary 270989537. Sale of Capital
Singapore Singapore 100.00%
Singapore 39 electronic contribution
218AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Private components and
Limited and parts establishmen
t
Avary Production Capital
Technology and sale of contribution
457646510
(India) India India electronic 100.00% and
0.00
Private components establishmen
Limited and parts t
Production Capital
Peng Shen
and sale of contribution
Technology 800000000
Thailand Thailand electronic 87.50% and
(Thailand) 0.00
components establishmen
Co. Ltd.and parts t
Investment in
industry
enterprise Capital
management contribution
Pengding 700000000.Guangdong Guangdong consulting 100.00% and
Investment 00
and establishmen
economic t
information
consulting
Capital
Property contribution
Pengding
5000000.00 Guangdong Guangdong management 100.00% and
Property
services establishmen
t
Investment
activities Business
with own combination
Pengding 16417200.0
Guangdong Guangdong funds and 0.61% 99.39% not under
Zhuhai 0
information common
consulting control
services
Real estate
Huaian development Capital
ChengXin and contribution
340000000.
Park Jiangsu Jiangsu operation 53.00% and
00
Management and park establishmen
Co. Ltd. management t
services
R&D
production Business
and sale of combination
Wuxi 69949912.0
Jiangsu Jiangsu automotive 53.68% not under
Huayang 0
parts and common
integrated control
circuits
Business
Production
combination
Jiangsu 16000000.0 and sale of
Jiangsu Jiangsu 27.38% not under
Xuanggan 0 electronic
common
components
control
219AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
2. Interests in Joint Ventures or Associates
(1) Aggregated financial information of individually immaterial joint ventures and associates
Unit: RMB
Closing balance/Current period amount Opening balance/Prior period amount
Associates：
Total carrying amount of investment 18780344.60 5588808.50
Total amounts of the following items
calculated based on shareholding
percentage
--Net profit -3702760.51 661549.72
--Other comprehensive income -3702760.51 661549.72
--Total comprehensive income
Other disclosures:
Net (Loss)/income has taken into account the effects of fair value adjustments to identifiable assets and liabilities at the time of
investment acquisition and the alignment of accounting policies.X. Government Grants
1. Government grants recognized as receivables at the end of the reporting period
□ Applicable □Not Applicable
Reasons for failure to receive the expected amount of government grants at the expected time
□ Applicable □Not Applicable
2. Liability items involving government grants
□Applicable □ Not Applicable
Unit: RMB
Amount transferred to
Accounting New grant amount for
Opening balance other income in the Closing balance
item the current period
current period
Deferred
income 359277511.49 132281900.00 -101076238.61 390483172.88
3. Government grants recognized in current profit or loss
□Applicable □ Not Applicable
Unit: RMB
Accounting item Current period amount Prior period amount
Other income 147346650.09 129893027.52
220AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XI. Risks Related to Financial Instruments
1. Various risks arising from financial instruments
The Group's operating activities expose it to various financial risks mainly including market risk (primarily foreign exchange risk and
other price risk) credit risk and liquidity risk. These financial risks and the Group's risk management policies adopted to mitigate such
risks are described below:
The Board is responsible for planning and establishing the Group's risk management framework formulating the Group's risk
management policies and related guidelines and supervising the implementation of risk management measures. The Group has
formulated risk management policies to identify and analyze the risks it faces. These policies specify particular risks and cover various
aspects including market risk credit risk and liquidity risk management. The Group regularly assesses changes in the market
environment and its operating activities to determine whether to update its risk management policies and systems. The Group conducts
risk management in accordance with policies approved by the Board and identifies evaluates and avoids relevant risks through close
cooperation with other business departments of the Group.
(1) Market risk
(a) Foreign exchange risk
The Group's principal operations are located in Mainland China and Hong Kong China. Operations in Mainland China are mainly
settled in Renminbi and US dollars while operations in Hong Kong China are mainly settled in US dollars. The Group is exposed to
foreign exchange risk arising from recognized assets and liabilities denominated in currencies other than the functional currency and
future transactions. The finance department at the Group headquarters is responsible for monitoring the scale of the Group's transactions
assets and liabilities denominated in currencies other than the functional currency to minimize foreign exchange risk. As at 31
December 2025 the Group's major foreign exchange risk arose from entities operating in Mainland China.As at 31 December 2025 and 31 December 2024 the amounts of foreign-currency financial assets and foreign-currency financial
liabilities held by companies within the Group whose functional currency is RMB translated into RMB are presented as follows:
31 December 2025
Other foreign currency
USD items JPY items Total
items
Foreign currency
financial assets —
Cash and cash
6943991399.7231820250.615011497.846980823148.17
equivalents
receivables 10161777703.65 - - 10161777703.65
other receivables 363684.56 - - 363684.56
17106132787.9331820250.615011497.8417142964536.38
Foreign currency
financial liabilities
—
Accounts payable 3167943173.62 9748381.44 298638.17 3177990193.23
221AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Other payables 135810404.71 210548038.40 3563464.10 349921907.21
3303753578.33220296419.843862102.273527912100.44
31 December 2024
Other foreign currency
USD items JPY items Total
items
Foreign currency
financial assets —
Cash and cash
5153766463.6210643862.912816186.225167226512.75
equivalents
Receivables 12048079337.83 12048079337.83
Other receivables 443973.12 443973.12
17202289774.5710643862.912816186.2217215749823.70
Foreign currency
financial liabilities
—
Short-term
69506411.1469506411.14
borrowings
Accounts payable 4607108757.78 4747671.69 496376.66 4612352806.13
Other payables 91029943.84 124864177.89 3578202.87 219472324.60
4767645112.76129611849.584074579.534901331541.87
As at 31 December 2025 for the USD financial assets and USD financial liabilities of companies whose functional currency is RMB
if the RMB appreciated or depreciated against the USD by 4% with all other factors remaining unchanged the Group’s total profit
would decrease or increase by approximately RMB552095000.00 (31 December 2024: decrease or increase by approximately
RMB497386000.00). For JPY financial assets and JPY financial liabilities if the RMB appreciated or depreciated against the JPY by
10% with all other factors remaining unchanged the Group’s total profit would increase or decrease by approximately
RMB18848000.00 (31 December 2024: increase or decrease by approximately RMB11897000.00).As at 31 December 2025 and 31 December 2024 the amounts of foreign-currency financial assets and foreign-currency financial
liabilities held by companies within the Group whose functional currency is USD translated into RMB are presented as follows:
31 December 2025
Other foreign
RMB HKD items NTD items Total
currency items
Foreign currency financial
assets —
Cash and cash equivalents 427729938.77 3312036.21 - 20186489.71 451228464.69
Accounts receivable 10591738.53 - - 51161.79 10642900.32
222AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
438321677.303312036.21-20237651.50461871365.01
Foreign currency financial
liabilities —
Accounts payable - 5266637.22 0.00 430.09 5267067.31
Other payables 0.00 1792683.69 8749447.57 27617.89 10569749.15
Lease liabilities - 176361.38 - - 176361.38
0.007235682.298749447.5728047.9816013177.84
31 December 2024
Other foreign
RMB HKD items NTD items Total
currency items
Foreign currency financial
assets —
Cash and cash equivalents 416245837.38 4639409.82 6384774.57 20556722.69 447826744.46
Accounts receivable 630384.50 - - 809471.64 1439856.14
416876221.884639409.826384774.5721366194.33449266600.60
Foreign currency financial
liabilities —
Accounts payable - 4523627.62 - 3853.70 4527481.32
Other payables - 1956332.30 - 266423.15 2222755.45
lease liabilities - 161361.18 - - 161361.18
6641321.10-270276.856911597.95
As at 31 December 2025 for the RMB financial assets and RMB financial liabilities of companies whose functional currency is USD
if the USD appreciated or depreciated against the RMB by 10% with all other factors remaining unchanged the Group’s total profit
would decrease or increase by approximately RMB43832000.00 (31 December 2024: decrease or increase by approximately
RMB41688000.00). For HKD financial assets and HKD financial liabilities of companies whose functional currency is USD if the
USD appreciated or depreciated against the HKD by 10% with all other factors remaining unchanged the Group’s total profit would
increase or decrease by approximately RMB392000.00 (31 December 2024: increase or decrease by approximately RMB200000.00).For NTD financial assets and NTD financial liabilities if the USD appreciated or depreciated against the NTD by 10% with all other
factors remaining unchanged the Group’s total profit would increase or decrease by approximately RMB875000.00 (31 December
2024: decrease or increase by approximately RMB638000.00).
As at 31 December 2025 and 31 December 2024 the amounts of foreign-currency financial assets and foreign-currency financial
liabilities held by companies within the Group whose functional currency is NTD translated into RMB are presented as follows:
31 December 2025
USD items Other foreign currency items Total
223AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Foreign currency financial
assets —
Accounts receivable 615174402.33 - 615174402.33
Cash and cash equivalents 143035687.51 1035214.73 144070902.24
758210089.841035214.73759245304.57
Foreign currency financial
liabilities —
Accounts payable 553806566.05 - 553806566.05
Other payables 150904703.42 - 150904703.42
704711269.47-704711269.47
31 December 2024
USD items Other foreign currency items Total
Foreign currency financial
assets —
Accounts receivable 531580559.09 531580559.09
Cash and cash equivalents 435256125.31 1091123.04 436347248.35
Other receivables 20744590.79 - 20744590.79
987581275.191091123.04988672398.23
Foreign currency financial
liabilities —
Accounts payable 493767625.08 - 493767625.08
Other payables 384439498.86 1354209.40 385793708.26
878207123.941354209.40879561333.34
As at 31 December 2025 for the USD financial assets and USD financial liabilities of companies whose functional currency is NTD
if the NTD appreciated or depreciated against the USD by 10% with all other factors remaining unchanged the Group’s total profit
would decrease or increase by approximately RMB5350000.00 (31 December 2024: decrease or increase by approximately
RMB10937000.00).As at 31 December 2025 and 31 December 2024 the amounts of foreign-currency financial assets and foreign-currency financial
liabilities held by companies within the Group whose functional currency is Indian rupee translated into RMB are presented as follows:
31 December 2025 31 December 2024
USD items USD items
Foreign currency financial assets —
Cash and cash equivalents 6672.09 1247778.43
Receivables 38746215.79 27088466.37
Other receivables - 2182967.49
224AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
38752887.8830519212.29
Foreign currency financial liabilities —
Long-term borrowings 175720008.30 179710003.01
Accounts payable 49850219.52 56880026.62
Other payables 35195966.14 143568.09
260766193.96236733597.72
As at 31 December 2025 for the USD financial assets and USD financial liabilities of companies whose functional currency is Indian
rupee if the Indian rupee appreciated or depreciated against the USD by 10% with all other factors remaining unchanged the Group’s
total profit would increase or decrease by approximately RMB22201000.00 (31 December 2024: increase or decrease by
approximately RMB20621000.00).As at 31 December 2025 and 31 December 2024 the amounts of foreign-currency financial assets and foreign-currency financial
liabilities held by companies within the Group whose functional currency is Thai baht translated into RMB are presented as follows:
31 December 2025
JPY items Other foreign currency
USD items Total
items
Foreign currency financial
assets —
Cash and cash equivalents 1379291.91 - - 1379291.91
Receivables 6093072.34 - - 6093072.34
7472364.25--7472364.25
Foreign currency financial
liabilities —
Payables 22776704.56 17903.98 22794608.54
Other payables 44455780.99 49545595.64 3421315.22 97422691.85
67232485.5549545595.643439219.20120217300.39
31 December 2024
JPY items Other foreign currency
USD items Total
items
Foreign currency financial
assets —
Cash and cash equivalents 580216.09 - - 580216.09
Foreign currency financial
liabilities —
Other payables 7330823.81 11927340.00 - 19258163.81
As at 31 December 2025 for the USD financial assets and USD financial liabilities of companies whose functional currency is Thai
baht if the Thai baht appreciated or depreciated against the USD by 10% with all other factors remaining unchanged the Group’s
total profit would increase or decrease by approximately RMB5976000.00 (31 December 2024: RMB675000.00). If the Thai baht
225AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
appreciated or depreciated against the JPY by 10% with all other factors remaining unchanged the Group’s total profit would increase
or decrease by approximately RMB4955000.00 (31 December 2024: RMB1193000.00).(b) Other price risk
The Group's other price risk mainly arises from various investments in equity instruments and other non-current financial assets which
are exposed to the risk of changes in the prices of equity instruments and other non-current financial assets.As at 31 December 2025 if the expected prices of the Group’s various equity instrument investments and other non-current financial
assets increased or decreased by 10% with all other factors remaining unchanged the Group’s total profit would increase or decrease
by approximately RMB48280000.00 and other comprehensive income would increase or decrease by approximately
RMB191146000.00 (31 December 2024: total profit would increase or decrease by approximately RMB34672000.00 and other
comprehensive income would increase or decrease by approximately RMB130190000.00).
(2) Credit risk
The Group's credit risk mainly arises from cash and cash equivalents notes receivable accounts receivable and other receivables. At
the balance sheet date the carrying amount of the Group's financial assets represented its maximum exposure to credit risk.The Group's monetary funds are mainly deposited with state-owned banks internationally renowned banks and other large and
medium-sized listed banks with good reputations and high credit ratings. The Group considers that there is no significant credit risk
and that significant losses due to bank default are highly unlikely.For notes receivable accounts receivable and other receivables the Group has established relevant policies to control credit risk
exposure. The Group evaluates customers' credit qualifications and sets corresponding credit periods based on customers' financial
condition the possibility of obtaining guarantees from third parties credit records and other factors such as current market conditions.The Group regularly monitors customer credit records. For customers with poor credit records the Group adopts measures such as
written collection notices shortening credit periods or cancelling credit periods to ensure that the Group's overall credit risk remains
within a controllable range.As at 31 December 2025 and 31 December 2024 the Group did not hold significant collateral or other credit enhancements arising
from pledges by debtors.
(3) Liquidity risk
Each subsidiary within the Group is responsible for its own cash flow forecasts. Based on consolidated cash flow forecasts from
subsidiaries the Group continuously monitors short-term and long-term funding needs at the Group level to ensure sufficient cash
reserves and readily realizable marketable securities. At the same time it continuously monitors compliance with borrowing agreements
and taking into account financing conditions such as interest rate levels borrowing terms and credit enhancement measures selects
different financial institutions to obtain commitments for sufficient standby funds while considering different types of supplier
financing arrangements to meet short-term and long-term funding needs.At the balance sheet date the Group's financial liabilities are presented below by maturity based on undiscounted contractual cash
flows.
2025/12/31
Within one year One to two years Two to five years Over five years Total
Accounts
5661602306.85---5661602306.85
payable
Short-term
3943060566.02---3943060566.02
borrowings
226AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Other
1903549987.03---1903549987.03
payables
Lease
17378727.586841416.794900070.6145037682.5274157897.50
liabilities
Long-term
17875195.1242484743.72360587544.70-420947483.54
borrowings
11543466782.6049326160.51365487615.3145037682.5212003318240.94
2024/12/31
Within one year One to two years Two to five years Over five years Total
Accounts
5079448457.17---5079448457.17
payable
Short-term
3273065833.79---3273065833.79
borrowings
Other
1584470358.11---1584470358.11
payables
Lease
18736757.3214485768.0215165792.9848343936.3696732254.68
liabilities
Long-term
12651584.2112651584.21193193472.21-218496640.63
borrowings
9968372990.6027137352.23208359265.1948343936.3610252213544.38
(i) At the balance sheet date cash flows under lease contracts signed by the Group but not yet commenced are presented below by
maturity:
2025/12/31
Within one year One to two years Two to five years Over five years Total
Future contractual cash flows not
4950499.973234979.97--8185479.94
included in lease liabilities
2024/12/31
Future contractual cash flows not
2153400.00---2153400.00
included in lease liabilities
XII. Fair Value Disclosures
1. Fair value of assets and liabilities measured at fair value at period end
Unit: RMB
Closing fair value
Item
Level 1 fair value Level 2 fair value Level 3 fair value Total
227AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
measurement measurement measurement
I. Recurring fair value
--------
measurement
Investments in other equity
454080864.26-1458773695.561912854559.82
instruments
Other non-current financial
0.00-482803322.86482803322.86
assets
II. Non-recurring fair value
--------
measurement
2. Basis for determining quoted prices for recurring and non-recurring Level 1 fair value measurements
Unadjusted quoted prices in active markets for identical assets or liabilities.
3. Valuation techniques and significant qualitative and quantitative inputs used for recurring and non-
recurring Level 2 fair value measurements
Inputs other than Level 1 inputs that are directly or indirectly observable for the relevant assets or liabilities.
4. Valuation techniques and significant qualitative and quantitative inputs used for recurring and non-
recurring Level 3 fair value measurements
Unobservable inputs for the relevant assets or liabilities.
228AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
5. Reconciliation between opening and closing carrying amounts for recurring Level 3 fair value measurements and sensitivity analysis of unobservable
inputs
Changes in
unrealized gains
Total current gains or losses or losses for
Business assets held as at
combination 31 December
Transfer into
Financial assets 31 December 2024 Purchase Disposal not under 31 December 2025 2025 included
Level 1
common in profit or loss
Gains or losses
control for 2025 -
Gains or losses included in
gains/losses
recognized in other
from changes in
profit or loss(a) comprehensive
fair value
income
Investments in other equity
instruments -
Liding Shenzhen 948190047.00 1394601.00 949584648.00
Wuxi Yingda 73369332.00 -26119915.00 47249417.00
Suzhou Xinrui 60000000.00 71830280.00 131830280.00
Kunshan Hongshida 10049892.00 47113847.00 57163739.00
Shenzhen Yunbao 30000000.00 8292492.56 38292492.56
Shanghai Gantu 26750241.00 12107577.00 38857818.00
Dongguan Liuchun 35448463.00 28925394.00 64373857.00
Guangdong Deju 24028329.00 13696639.00 37724968.00
Dingqin Technology 20000000.00 1983039.00 21983039.00
Sanying Precision Control 7306851.00 7371787.00 14678638.00
Hangsheng Electronics 6349464.00 3951503.00 10300967.00
Aoma Electronics 8595344.00 -230263.00 8365081.00
Chengdu Keyi 38368751.00 - 38368751.00
Other non-current
financial assets -
Chenyu Fund 220515116.00 -13920474.71 14141761.71 220736403.00 14141761.71
Chunhua Jingzhi 68482830.00 78890000.00 -7384910.00 139987920.00 -7384910.00
229AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Jingning Dingqing 57720000.00 -7937000.00 71294000.00 121077000.00 71294000.00
Green Energy Fund 1001999.86 1001999.86
Total 1516805909.00 198260750.86 -21857474.71 0.00 0.00 78050851.71 170316981.56 1941577018.42 78050851.71
230AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
6. For recurring fair value measurements reasons for transfers between levels during the period and the
policy for determining the timing of transfers
The Group recognizes transfers between fair value hierarchy levels at the date when the event causing the transfer occurs. During the
period there were no transfers between Level 1 and Level 2. For financial instruments traded in active markets the Group determines
fair value based on quoted prices in active markets. For financial instruments not traded in active markets the Group uses valuation
techniques to determine fair value. The valuation models used mainly include discounted cash flow models and market comparable
company models. Inputs to valuation techniques mainly include risk-free interest rates underlying equity values remaining term of
options expected volatility of equity values expected dividend rates exercise prices EBITDA multiples and equity value multiples.
7. Fair values of financial assets and financial liabilities not measured at fair value
The Group's financial assets and financial liabilities measured at amortized cost mainly include notes receivable accounts receivable
other receivables short-term borrowings payables long-term borrowings and lease liabilities.As at 31 December 2025 and 31 December 2024 the carrying amounts of the above financial assets and financial liabilities not
measured at fair value were not significantly different from their fair values.The fair values of long-term borrowings and lease liabilities are determined based on the present value of future contractual cash flows
discounted at interest rates that would be available in the market for substantially the same cash flows under the same conditions and
with comparable credit ratings and are classified as Level 3.XIII. Related Parties and Related-Party Transactions
1. Parent company of the Company
Parent company's Parent company's
Name of parent Place of shareholding voting rights
Nature of business Registered capital
company registration percentage in the percentage in the
Company Company
Mayco Industrial HKD932184193
Hong Kong China Equity investment 66.19% 66.19%
Limited 2
2. Subsidiaries of the Company
Details of the Company's subsidiaries are set out in Note VIII.
3. Joint ventures and associates of the Company
Details of the Company's significant joint ventures or associates are set out in Note IX.Other joint ventures or associates that had related-party transactions with the Company during the period or had balances arising from
related-party transactions with the Company in prior periods are as follows:
Name of joint venture or associate Relationship with the Company
Guangdong Zhanyang Associates
Wuxi Yongyang Associates
231AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
4. Other related parties
Otherrelated partyName Relationship between other related parties and the Company
Under common control with the Group by the same ultimate
Xianfeng Communications Co. Ltd.controlling party
Under common control with the Group by the same ultimate
Liding Semiconductor Technology (Shenzhen) Co. Ltd.controlling party
Under common control with the Group by the same ultimate
Liding Semiconductor Technology Qinhuangdao Co. Ltd.controlling party
Under common control with the Group by the same ultimate
Zhen Ding Technology Holding Limited
controlling party
Under common control with the Group by the same ultimate
Yaoding Environmental Energy Technology (Shenzhen) Limited
controlling party as at 29 December 2025
Yaoding Environmental Energy Technology (Qinhuangdao) Under common control with the Group by the same ultimate
Limited controlling party as at 29 December 2025
Yaoding Environmental Energy Technology (Shenzhen) Co. Under common control with the Group by the same ultimate
Ltd. controlling party as at 29 December 2025
Under common control with the Group by the same ultimate
Baidin Technology Co. Ltd.controlling party
Company that exercises significant influence over the ultimate
Hon Hai Precision Industry Co. Ltd.controlling party of the Group
Investee companies of companies that exercise significant
Yehong Technology Co. Ltd.influence over the ultimate controlling party of the Group
Investee companies of companies that exercise significant
Yehong Technology (Chengdu) Co. Ltd.influence over the ultimate controlling party of the Group
Investee companies of companies that exercise significant
Ye Cheng Technology (Chengdu) Co. Ltd.influence over the ultimate controlling party of the Group
Investee companies of companies that exercise significant
CyberTAN Technology Inc.influence over the ultimate controlling party of the Group
Investee companies of companies that exercise significant
Yingsheng Technology Co. Ltd.influence over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn EMS Inc.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Futaijie Technology Development (Shenzhen) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Youer Materials Industrial (Shenzhen) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Futaitong International Logistics Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Jinjihu Precision Machinery (Qinhuangdao) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Zhengzhou Zhunxuntong Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Jusda International Supply Chain Management Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Jusda International Limited
over the ultimate controlling party of the Group
232AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Electronics (Yantai) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Futaihua industrial (Shenzhen) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Fujun Materials Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn Precision Electronics (Taiyuan) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Electronics (Zhengzhou) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongbai Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Nanning Fulian Fugui Precision Industry Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Cloud Network Technology Singapore Pte.Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Fulian Fugui Precision Industry Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Sanying Technology (Shenzhen) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Industry (Wuhan) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Electronics (Chengdu) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fulian Precision Electronics (Tianjin) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfucheng Precision Electronics (Chengdu) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Futaihong Precision Industry Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fulian Precision Electronics (Guiyang) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fuyu Electronic Technology (Huai'an) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Mexus Solutions Inc.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn Interconnect Technology Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
FIH (HongKong) Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Electronics (Chongqing) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Zhunxuntong Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn (Kunshan) Computer Connector Co. Ltd.over the ultimate controlling party of the Group
Hongwan Technology Co. Ltd. Subsidiaries of companies that exercise significant influence
233AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Shenzhen Funeng New Energy Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn Japan Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fujian Precision Mould (Huai’an) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Henan Fuchi Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Taiyuan Fuchi Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Jusda Supply Chain Management (Huai'an) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Cybertan Far East Technology Consulting Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Xinyi Precision Technology (BeiJing) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Hongfujin Precision Industrial (Jincheng) Co. Ltd.over the ultimate controlling party of the Group
Foxconn HonHai Technology India Mega Development Private Subsidiaries of companies that exercise significant influence
Limited over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Langfang Futaitong Freight Services Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
INGRASYS (SINGAPORE) PTE.LTD
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fuzhikang Precision Electronics (Langfang) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn Technology Group Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Jusda NLB.V.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Cloud Intelligence (Chongqing) High-tech Services Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Foxconn Korea Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Peibo Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Xinyang Technology (Foshan) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fortunebay Technology Pte.Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Best Ever Industries Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Futaijing Precision Electronics (Beijing) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Cloud Network Technology Kft.over the ultimate controlling party of the Group
234AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Subsidiaries of companies that exercise significant influence
Hong Yi Interconnect Technology (India) Private Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fuxiang Precision Industry (Kunshan) Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Chang Yi Interconnect Technology (India) Private Limited
over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Xinwei Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Nengchuang Semiconductor Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Honghua Advanced Technology Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Qunmai Communications Co. Ltd.over the ultimate controlling party of the Group
Subsidiaries of companies that exercise significant influence
Fukang Technology Co. Ltd.over the ultimate controlling party of the Group
NEW WING INTERCONNECT TECHNOLOGY (BAC Subsidiaries of companies that exercise significant influence
GIANG) CO.LTD over the ultimate controlling party of the Group
Social organization for which a supervisor of the Company
Shenzhen Pengding Public Welfare Foundation
serves as chairperson
Saha Pathana Inter-holding Public Company Limited Minority shareholders of subsidiaries of the Company
Huai'an Jiawei industrial Development Co. Ltd. Minority shareholders of subsidiaries of the Company
5. Related-party transactions
(1) Related-party transactions involving purchase and sale of goods provision and receipt of services
Purchases of goods / receipt of services
Unit: RMB
Whether the
Content of related- Current period Approved Prior period
Related party transaction quota
party transaction amount transaction quota amount
was exceeded
Foxconn
Interconnect
Purchase of goods 694801160.19 688349967.78
Technology
Limited
Yehong
Technology Co. Purchase of goods 216549785.28 472274631.81
Ltd.Shenzhen Fujun
Materials
Purchase of goods 116309596.00 19844980.00
Technology Co.Ltd.Liding
Semiconductor
Technology Purchase of goods 63683610.08 0.00
Qinhuangdao Co.Ltd.
235AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Mexus Solutions
Receipt of services 53730028.64 39709911.82
Inc.Hongwan
Technology Co. Purchase of goods 24769112.64 31171607.90
Ltd.Fortunebay
Technology Purchase of goods 15668217.37 0.00
Pte.Ltd.Xianfeng
Communications Purchase of goods 13061222.35 0.00
Co. Ltd.Zhengzhou
Zhunxuntong
Receipt of services 8323335.11 8828541.89
Technology Co.Ltd.Jusda International
Receipt of services 7773513.49 8343170.58
Limited
Hon Hai Precision
Purchase of goods 3645405.54 1289931.13
Industry Co. Ltd.Liding
Semiconductor
Technology Purchase of goods 2823099.00 0.00
(Shenzhen) Co.Ltd.Shenzhen
Zhunxuntong
Receipt of services 1892426.00 1539148.00
Technology Co.Ltd.Best Ever
Purchase of goods 1871999.90 0.00
Industries Limited
Foxconn Japan
Receipt of services 1501641.63 1959270.73
Co. Ltd.Futaihua industrial
(Shenzhen) Co. Purchase of goods 1327880.00 4241159.92
Ltd.Jusda NLB.V. Receipt of services 1326333.82 1097997.33
Fuzhikang
Precision
Electronics Receipt of services 1181340.24 5213800.40
(Langfang) Co.Ltd.Receipt of
Guangdong
services/Purchase 1174276.00 3356069.00
Zhanyang
of goods
Cybertan Far East
Technology
Receipt of services 364462.98 486812.19
Consulting Co.Ltd.Wuxi Yongyang Purchase of goods 294038.14 0.00
Shenzhen Funeng Receipt of services 252466.57 429316.19
236AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
New Energy
Technology Co.Ltd.Foxconn
Technology Group Receipt of services 202136.00 0.00
Co. Ltd.Jusda International
Supply Chain
Receipt of services 179539.92 956228.01
Management Co.Ltd.Foxconn
Interconnect
Receipt of services 0.00 4576696.22
Technology
Limited
Liding
Semiconductor
Technology Receipt of services 0.00 758269.51
Qinhuangdao Co.Ltd.Futaijie
Technology
Development Purchase of goods 0.00 10000.00
(Shenzhen) Co.Ltd.Futaihua industrial
(Shenzhen) Co. Receipt of services 0.00 4791.22
Ltd.Foxconn EMS Inc. Receipt of services 0.00 6324.25
Purchase of
other goods/Receipt of 2698903.41 1614183.92
services
Sales of goods / provision of services
Unit: RMB
Content of related-party
Related party Current period amount Prior period amount
transaction
Hongfujin Precision
Sale of goods 587568518.28 168275696.75
Electronics (Yantai) Co. Ltd.INGRASYS (SINGAPORE)
Sale of goods 397406595.67 92358411.99
PTE. LTD
Shenzhen Futaihong Precision
Sale of goods 296264772.66 314112233.69
Industry Co. Ltd.Yehong Technology
Sale of goods 276730331.27 711422656.87
(Chengdu) Co. Ltd.
FIH (HongKong) Limited Sale of goods 232350750.39 106828233.38
Xianfeng Communications
Sale of goods 225485150.64 323375532.84
Co. Ltd.Fuxiang Precision Industry
Sale of goods 191224934.74 0.00
(Kunshan) Co. Ltd.Foxconn Precision Electronics Sale of goods 176781414.50 6361861.88
237AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(Taiyuan) Co. Ltd.Hongbai Technology Co. Ltd. Sale of goods 150387100.59 188068911.62
Cloud Network Technology
Sale of goods 126311151.48 186429166.05
Singapore Pte.Ltd.Foxconn Hon Hai Technology
India Mega Development Sale of goods 54462949.37 160412238.43
Private Limited
Fulian Precision Electronics
Sale of goods 41895529.21 56922186.61
(Tianjin) Co. Ltd.Fukang Technology Co. Ltd. Sale of goods 32731160.22 654534.36
Hongfujin Precision
Electronics (Chengdu) Co. Sale of goods 31780145.15 22198971.77
Ltd.Hongfujin Precision Industry
Sale of goods 28409261.61 38861108.40
(Wuhan) Co. Ltd.Futaihua Industrial
Sale of goods 26871100.90 19762490.63
(Shenzhen) Co. Ltd.Foxconn (Kunshan) Computer
Sale of goods 25683025.91 40216336.68
Connector Co. Ltd.Sanying Technology
Sale of goods 24417546.40 40277363.56
(Shenzhen) Co. Ltd.Qunmai Communications Co.Sale of goods 23583917.61 927399.07
Ltd.Hongfucheng Precision
Electronics (Chengdu) Co. Sale of goods 21353652.18 38786056.03
Ltd.Taiyuan Fuchi Technology
Sale of goods 20829982.62 6655276.77
Co. Ltd.Nanning Fulian Fugui
Sale of goods 10281246.38 5124074.76
Precision Industry Co. Ltd.Xinyang Technology (Foshan)
Sale of goods 5796237.46 1326834.30
Co. Ltd.Hon Hai Precision Industry
Sale of goods 5313017.16 2585848.52
Co. Ltd.Hongfujin Precision
Electronics (Zhengzhou) Co. Sale of goods 5011538.15 585500.92
Ltd.NEW WING
INTERCONNECT
Sale of goods 4563092.62 0.00
TECHNOLOGY (BAC
GIANG) CO. LTD
Cloud Network Technology
Sale of goods 3933129.20 0.00
Kft.Chang Yi Interconnect
Technology (India) Private Sale of goods 1853504.44 0.00
Limited
Henan Fuchi Technology Co.Sale of goods 901237.89 686736.13
Ltd.
238AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Ye Cheng Technology
Sale of goods 693618.82 37195246.08
(Chengdu) Co. Ltd.
CyberTAN Technology Inc. Sale of goods 417050.36 1453400.12
Shenzhen Fulian Fugui
Sale of goods 0.00 43417550.50
Precision Industry Co. Ltd.Yehong Technology Co. Ltd. Sale of goods 105359.21 27975516.01
Xinyi Precision Technology
Sale of goods 0.00 9653452.32
(BeiJing) Co. Ltd.
Fulian Precision Electronics
Sale of goods 0.00 3639088.71
(Guiyang) Co. Ltd.Liding Semiconductor
Technology (Shenzhen) Co. Sale of goods 0.00 1704450.14
Ltd.other Sale of goods 1129260.18 1036997.53
Explanation of related-party transactions involving purchase and sale of goods and provision and receipt of services
In 2025 the transaction amounts of the Group's purchases of goods and receipt of services did not exceed the transaction caps. The
specific transaction caps were: RMB 1080 million for related-party transactions with Hon Hai Group and its controlled subsidiaries;
RMB 580 million for related-party transactions with GIS Holding and its controlled subsidiaries; and RMB 140 million for related-
party transactions with Zhen Ding Technology Holding and its other controlled subsidiaries other than the Group.
(2) Related-party leases
The Company as lessor:
Unit: RMB
Lease income recognized Lease income recognized
Lessee name Type of leased asset
during the current period during the prior period
Baidin Technology Co. Ltd. Buildings 10056346.67 0.00
Xianfeng Communications
Buildings 7367555.88 0.00
Co. Ltd.Liding Semiconductor
Technology Qinhuangdao Co. Buildings 2150362.15 2435002.33
Ltd.Liding Semiconductor
Technology (Shenzhen) Co. Buildings 2316871.90 2817247.67
Ltd.Jusda Supply Chain
Management (Huai'an) Co. Buildings 266892.00 266892.00
Ltd.Futaihua Industrial
Buildings 174005.62 215110.51
(Shenzhen) Co. Ltd.Shenzhen Futaitong
International Logistics Co. Buildings 188988.91 313052.91
Ltd.Zhengzhou Zhunxuntong
Buildings 357.78 0.00
Technology Co. Ltd.
239AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
The Company as lessee:
Unit: RMB
Variable lease
Rental expenses for short-term
payments not
leases and leases of low-value
included in the Interest expense on lease Additions to right-of-
assets accounted for under the Rentals paid
Type of measurement of liabilities use assets simplified approach (if
Lessor name leased lease liabilities (if applicable)
asset applicable)
Current Prior Current Prior Current
Current period Prior period Current Prior period Prior period
period period period period period
amount amount period amount amount amount
amount amount amount amount amount
Saha Pathana Inter-
holding Public Company land 702474.26 489925.36 37520.91 39043.63 1870646.59
Limited
Fuyu Electronic
Technology (Huai'an) Co. Buildings 8515096.00 9686045.39 11633176.00 12804125.39 60576.64 169632.66 3002975.35
Ltd.Liding Semiconductor
Technology Qinhuangdao Buildings 1356090.96 332625.00
Co. Ltd.Jusda International Supply
Chain Management Co. Buildings 178589.59
Ltd.
(3) Asset transfers and debt restructuring with related parties
Unit: RMB
related party Content of related-party transaction Current period amount Prior period amount
Xianfeng Communications Co. Ltd. Purchase of equipment 53619134.83 0.00
Liding Semiconductor Technology
Purchase of equipment 13578138.65 0.00
(Shenzhen) Co. Ltd.Liding Semiconductor Technology Purchase of equipment 2200000.00 10120000.00
240AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Qinhuangdao Co. Ltd.Wuxi Yongyang Purchase of equipment 660601.99 0.00
Xianfeng Communications Co. Ltd. Sale of equipment 326695.12 0.00
Guangdong Zhanyang Purchase of equipment 179100.00 5007300.00
Futaihua Industrial (Shenzhen) Co. Ltd. Purchase of equipment 21917.54 0.00
Cloud Intelligence (Chongqing) High-tech
Purchase of equipment 4800.00 0.00
Services Co. Ltd.Zhen Ding Technology Holding Limited Purchase of equipment 0.00 664683.49
241AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(4) Remuneration of key management personnel
Unit: RMB
item Current period amount Prior period amount
Remuneration of key management
33926239.7330459496.36
personnel
(5) Other related-party transactions
(a) Environmental protection communications and other services
Content of related-party Pricing policy for related-party
related party 2025 2024
transaction transactions
Liding Semiconductor Technology Environmental protection and 9042543 8734938
cost plus
Qinhuangdao Co. Ltd. other services 7.22 5.97
Liding Semiconductor Technology Environmental protection and 2946429.cost plus
(Shenzhen) Co. Ltd. other services 59
Shenzhen Futaitong International Logistics Environmental protection and 230437.1
cost plus
Co. Ltd. other services 6
Environmental protection and 128921.1
Futaihua industrial (Shenzhen) Co. Ltd. cost plus
other services 2
Environmental protection and
Foxconn Technology Group Co. Ltd. cost plus 2000.00
other services
Shenzhen Funeng New Energy Technology Environmental protection and
cost plus 885.58
Co. Ltd. other services
(b) Donation expenses
20252024
Shenzhen Pengding Public Welfare Foundation 3000000.00 3000000.00
(c) Land contribution
20252024
Huai'an Jiawei Industrial Development Co. Ltd. 160000000.00
6. Receivables and payables due from/to related parties
(1) Receivables
Unit: RMB
Project name Related party Closing balance Opening balance
242AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Gross carrying Allowance for Gross carrying Allowance for
amount doubtful accounts amount doubtful accounts
Hongfujin
Accounts Precision
215215471.05-647231.58116578079.71-349734.24
receivable Electronics
(Yantai) Co. Ltd.Yehong
Accounts Technology
141121485.06-424403.88148212551.12-444637.65
receivable (Chengdu) Co.Ltd.Fuxiang Precision
Accounts Industry
129160763.91-388433.620.000.00
receivable (Kunshan) Co.Ltd.INGRASYS
Accounts
(SINGAPORE) 116012135.52 -348890.89 58200424.71 -174601.27
receivable
PTE.LTD
Accounts FIH (HongKong)
77754203.72-233835.3149144875.19-147434.63
receivable Limited
Xianfeng
Accounts
Communications 75318069.88 -226508.96 103698868.34 -311096.61
receivable
Co. Ltd.Foxconn Precision
Accounts
Electronics 46066196.42 -138537.89 1273574.29 -3820.72
receivable
(Taiyuan) Co. Ltd.Shenzhen
Accounts Futaihong
30031957.46-90317.0786835082.24-260505.25
receivable Precision Industry
Co. Ltd.Hongbai
Accounts
Technology Co. 22725507.11 -68343.91 57125485.18 -171376.46
receivable
Ltd.Cloud Network
Accounts
Technology 22128168.17 -66547.49 46881698.67 -140645.10
receivable
Singapore Pte.Ltd.Foxconn Hon Hai
Technology India
Accounts
Mega 12957587.33 -38968.20 35987703.23 -107963.11
receivable
Development
Private Limited
Sanying
Accounts Technology
10242602.77-30803.253233755.01-9701.27
receivable (Shenzhen) Co.Ltd.Fulian Precision
Accounts
Electronics 9520250.01 -28630.87 22753916.31 -68261.75
receivable
(Tianjin) Co. Ltd.Fukang
Accounts
Technology Co. 8973077.47 -26985.32 300299.51 -900.90
receivable
Ltd.Accounts Taiyuan Fuchi 8422722.47 -25330.20 1302920.93 -3908.76
243AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
receivable Technology Co.Ltd.Hongfujin
Precision
Accounts
Electronics 8081021.79 -24302.59 7513639.01 -22540.92
receivable
(Chengdu) Co.
Ltd.Hongfujin
Accounts
Precision Industry 7463442.53 -22445.30 11908690.68 -35726.07
receivable
(Wuhan) Co. Ltd.Qunmai
Accounts
Communications 7152273.55 -21509.50 134474.48 -403.42
receivable
Co. Ltd.Foxconn
(Kunshan)
Accounts
Computer 5261914.80 -15824.50 5410466.50 -16231.40
receivable
Connector Co.Ltd.Futaihua Industrial
Accounts
(Shenzhen) Co. 4235496.82 -12737.69 3743789.74 -11231.37
receivable
Ltd.Accounts Cloud Network
3869705.84-11637.620.000.00
receivable Technology Kft.Xinyang
Accounts
Technology 3404222.08 -10237.74 826942.47 -2480.83
receivable
(Foshan) Co. Ltd.
Hongfucheng
Precision
Accounts
Electronics 2670946.94 -8032.51 14796324.30 -44388.97
receivable
(Chengdu) Co.
Ltd.Accounts Hon Hai Precision
2139068.19-6432.96168576.61-505.73
receivable Industry Co. Ltd.Xinyi Precision
Accounts
Technology 950698.83 -2859.10 1422037.47 -4266.11
receivable
(BeiJing) Co. Ltd.
Shenzhen Fulian
Accounts
Fugui Precision 442672.71 -1331.28 7229522.03 -21688.57
receivable
Industry Co. Ltd.Nanning Fulian
Accounts
Fugui Precision 269842.29 -811.51 1550294.12 -4650.88
receivable
Industry Co. Ltd.Ye Cheng
Accounts Technology
134657.05-404.96167171.78-501.52
receivable (Chengdu) Co.Ltd.Yehong
Accounts
Technology Co. 0.00 0.00 161112.39 -483.34
receivable
Ltd.Accounts
other 1697244.30 -5104.26 422595.25 -1267.70
receivable
244AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Yaoding
Environmental
Energy
Other receivables 38403132.00 -115209.38 0.00 0.00
Technology
(Shenzhen)
Limited
Yaoding
Environmental
Energy
Other receivables 13452691.84 -40358.07 0.00 0.00
Technology
(Shenzhen) Co.Ltd.Baidin Technology
Other receivables 3764359.16 -11293.08 0.00 0.00
Co. Ltd.Yaoding
Environmental
Energy
Other receivables 3710582.38 -11131.75 0.00 0.00
Technology
(Qinhuangdao)
Limited
Liding
Semiconductor
Other receivables Technology 1067924.54 -3203.77 1173313.81 -3519.94
(Shenzhen) Co.Ltd.Xianfeng
Other receivables Communications 949609.20 -2848.83 0.00 0.00
Co. Ltd.Liding
Semiconductor
Other receivables Technology 308571.00 -925.71 402996.00 -1208.99
Qinhuangdao Co.Ltd.Jusda Supply
Chain
Other receivables 90405.00 -271.21 145456.14 -436.37
Management
(Huai'an) Co. Ltd.Huai'an Jiawei
industrial
Other receivables 0.00 0.00 160000000.00 0.00
Development Co.Ltd.Other receivables Other 130.13 -0.39 0.00 0.00
(2) Payables
Unit: RMB
Closing gross carrying Opening gross carrying
Project name related party
amount amount
Foxconn Interconnect
Accounts payable 188314810.13 218760095.41
Technology Limited
Accounts payable Yehong Technology Co. Ltd. 77334625.04 7945654.82
245AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Accounts payable Wuxi Yongyang 14317639.25 0.00
Hongwan Technology Co.Accounts payable 4556282.54 3925303.55
Ltd.Xianfeng Communications
Accounts payable 1932460.59 0.00
Co. Ltd.Shenzhen Fujun Materials
Accounts payable 1775173.50 1695316.40
Technology Co. Ltd.Fortunebay Technology
Accounts payable 1209440.07 0.00
Pte.Ltd.Accounts payable Best Ever Industries Limited 1103661.33 0.00
Liding Semiconductor
Accounts payable Technology (Shenzhen) Co. 589654.89 242456.16
Ltd.Futaihua Industrial
Accounts payable 318338.20 587833.08
(Shenzhen) Co. Ltd.Accounts payable Guangdong Zhanyang 263984.50 329510.92
Accounts payable Jusda International Limited 219302.85 189042.97
Hon Hai Precision Industry
Accounts payable 211333.63 0.00
Co. Ltd.Shenzhen Futaitong
Accounts payable International Logistics Co. 53762.88 143468.37
Ltd.Fuyu Electronic Technology
Accounts payable 0.00 135080.00
(Huai'an) Co. Ltd.Accounts payable other 79405.92 89000.24
Xianfeng Communications
Other payables 39099914.06 0.00
Co. Ltd.Other payables Mexus Solutions Inc. 4211814.83 2504599.58
Zhengzhou Zhunxuntong
Other payables 2872465.85 1691023.65
Technology Co. Ltd.Other payables Wuxi Yongyang 2599801.99 0.00
Fuyu Electronic Technology
Other payables 1912610.50 2052104.02
(Huai'an) Co. Ltd.Other payables Jusda International Limited 1206761.95 1187597.36
Fuzhikang Precision
Other payables Electronics (Langfang) Co. 399608.99 131491.96
Ltd.Yaoding Environmental
Other payables Energy Technology 379399.19 0.00
(Qinhuangdao) Co. Ltd.Yaoding Environmental
Other payables Energy Technology 356235.36 0.00
(Shenzhen) Co. Ltd.Shenzhen Zhunxuntong
Other payables 355339.56 252540.88
Technology Co. Ltd.Liding Semiconductor
Other payables 343350.00 11778950.00
Technology Qinhuangdao Co.
246AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Ltd.Yaoding Environmental
Other payables Energy Technology 275685.84 0.00
(Shenzhen) Limited
Other payables Jusda NLB.V. 98908.71 0.00
Shenzhen Funeng New
Other payables 64866.58 93394.19
Energy Technology Co. Ltd.Other payables Baidin Technology Co. Ltd. 27671.51 0.00
Shenzhen Futaitong
Other payables International Logistics Co. 25334.63 14532.64
Ltd.Other payables Foxconn Korea Limited 22923.38 22717.86
Jusda International Supply
Other payables 21637.16 53578.55
Chain Management Co. Ltd.Foxconn Technology Group
Other payables 3649.58 0.00
Co. Ltd.Futaihua Industrial
Other payables 759.25 12727.28
(Shenzhen) Co. Ltd.Other payables Guangdong Zhanyang 0.00 500025.00
Other payables Foxconn Japan Co. Ltd. 0.00 219323.43
Other payables other 804913.37 72009.67
7. Related-party commitments
The following are related-party commitments contracted by the Group as at the balance sheet date but not required to be presented on
the balance sheet:
Lease-in 31 December 2025 31 December 2024
Fuyu Electronic Technology (Huai'an) Co. Ltd. 0.00 3118080.00
8. Others
Contract liabilities 31 December 2025 31 December 2024
Liding Semiconductor Technology Qinhuangdao Co. Ltd. 450855.96 2192402.21
Prepayments 31 December 2025 31 December 2024
Liding Semiconductor Technology Qinhuangdao Co. Ltd. 2016701.39 0.00
247AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XIV. Share-based Payments
1. General information on share-based payments
□Applicable □ Not Applicable
Unit: RMB
Granted during the Exercised during Unlocked during the current Lapsed during the
Category of grantees current period the current period period current period
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Employees 3948212.00 725758
Total 3948212.00 725758
Share options or other equity instruments outstanding at period end
□ Applicable □Not Applicable
2. Equity-settled share-based payments
□Applicable □ Not Applicable
Unit: RMB
(1) Pursuant to the board resolution of the then Company dated 14 February 2017 and the
Framework Agreement on the Employee Shareholding Plan of Fukui Precision Component
(Shenzhen) Co. Ltd. signed on 27 February 2017 (the "Grant Date") the Company applied to
increase its registered capital by USD26254888 (representing 9.9065% of the Company's equity
as at the date of capital increase). The newly increased registered capital was fully paid up before
28 February 2017 by Changyi Investment Zhenji Investment Hengxiang Investment Yifu
Investment Xinqun Investment Debang Investment Yuefeng and Dele Investment (collectively
the "Employee Shareholding Platforms") with the total capital contribution amounting to
USD120.6456 million equivalent to RMB829438463.00. Based on RMB1.00 per unit of capital
contribution the subscription price was equivalent to RMB4.60 per share (the "Employee
Subscription Price"). The portion by which the Employee Subscription Price was lower than the
fair value of the Company's equity units on the Grant Date constituted share?based payment.
(2) Pursuant to the resolutions approved at the 11th meeting of the Company's 2nd Board of
Directors held on April 20 2021 and the 2020 Annual General Meeting of Shareholders held on
Method for determining the May 12 2021 the Company designated June 15 2021 as the grant date and granted 10085000
fair value of equity RMB?denominated restricted ordinary shares to 287 grantees under the restricted share incentive
instruments on grant date plan. During the registration process following the Board's determination of the grant date one
grantee voluntarily waived the subscription of 40000 restricted shares originally allocated to
him/her for personal reasons and such waived shares were treated as cancelled. Consequently the
actual number of restricted shares granted was adjusted from 10085000 to 10045000 and the
actual number of grantees was reduced from 287 to 286. The Company applied for an increase in
registered capital of RMB10045000.00 which was fully paid up by the 286 grantees before June
23 2021 with total proceeds of RMB165139800.00. Based on RMB1.00 per unit of capital
contribution the subscription price was equivalent to RMB16.44 per share. The portion by which
the employee subscription price was lower than the closing price of the Company's shares on the
grant date (RMB29.13 per share) constituted share?based payment.
(3) Pursuant to the resolutions approved at the Company's First Extraordinary General Meeting of
Shareholders held on September 9 2024 and the 11th meeting of the 3rd Board of Directors held
on September 13 2024 the Company designated September 13 2024 as the grant date and granted
9469900 RMB?denominated restricted ordinary shares to 388 grantees under the incentive plan.
During the process 7 of the originally designated grantees voluntarily waived their subscription to
all restricted shares allocated to them for personal reasons. The Board of Directors then reallocated
248AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
and adjusted the waived shares among the remaining grantees. After such adjustment the total
number of grantees under the plan was changed from 388 to 381 while the total number of
restricted shares to be granted remained at 9469900. The shares granted were A?share ordinary
shares repurchased by the Company from the secondary market. Based on RMB1.00 per share of
par value the repurchase price was equivalent to RMB21.21 per share. The grant price for the
restricted shares under this incentive plan was set at RMB17.70 per share and the portion by which
this price was lower than the closing price on the grant date (RMB33.75 per share) constituted
share?based payment
(1) In June 2017 the Company introduced external investors through a capital increase at an
investment price of RMB8.5 per share. After comprehensive consideration of factors including the
income approach valuation without control and liquidity as of the grant date the price-to-earnings
ratios of comparable transactions in the same industry and the capital increase price paid by the
external investors the Group selected the external investors' investment price of RMB8.5 as the
fair value of the Company's equity units at the time the Employee Shareholding Platforms made
capital contributions to the Company on the grant date (the "fair value of granted equity units").Key parameters for fair (2) The Group determined the fair value of the restricted shares on the grant date based on the
value of equity instruments closing price of the Company's shares on the grant date. On the grant date the fair value of each
on grant date restricted share was RMB29.13 and the difference between such fair value and the subscription
price of RMB16.44 per share paid by the incentive recipients was recognized as share?based
payment expense.
(3) The Company's A?share ordinary shares granted under this incentive plan were repurchased
from the secondary market. Based on RMB1.00 per share of par value the repurchase price was
equivalent to RMB21.21 per share. The grant price for the restricted shares under this incentive
plan was set at RMB17.70 per share and the portion by which this price was lower than the closing
price on the grant date (RMB33.75 per share) constituted share?based payment.
(1) Pursuant to the Framework Agreement and related supplemental agreements the shareholding
employees are subject to strict service period restrictions. After 36 months of continuous service
from the day following the grant date 20% of their shareholding interests may be released from
restrictions and thereafter an additional 20% may be released for each additional 12 months of
service until the service period is completed. Accordingly the Group determined that the
amortization periods for the share-based payment expenses corresponding to each 20% tranche are
three four five six and seven years respectively. At each balance sheet date during the maximum
seven-year service period commencing from 28 February 2017 the Group makes its best estimate
of the number of equity instruments expected to vest based on the latest available subsequent
information such as employee turnover rates and revises the estimated number of equity
instruments expected to vest. The employee services received in the current period are recognized
in the relevant costs or expenses at the fair value on the grant date with a corresponding adjustment
to capital reserves.
(2) Pursuant to the Draft 2021 Restricted Share Incentive Plan of Avary Holding (Shenzhen) Co.
Basis for determining the
Limited approved by the shareholders' resolution at the Annual General Meeting held on 12 May
number of exercisable
2021 the employee participants are subject to strict service period restrictions. For every full 12-
equity instruments
month period of continuous service from the grant date 20% of their restricted shares become
eligible for release until the full service period is completed. Under the incentive plan if an
incentive recipient leaves the Company before the end of the service period the shares shall not be
unlocked and the Company is required to repurchase and cancel the corresponding restricted shares
at the grant price. On 23 June 2021 the Company received total capital contributions of
RMB165139800.00 and concurrently recognized a liability of RMB165139800.00 for the
repurchase obligation with a corresponding increase in treasury stock of RMB165139800.00.Accordingly the Group determined that the amortization periods for the share-based payment
expenses corresponding to each 20% tranche are one two three four and five years respectively.At each balance sheet date during the maximum five-year service period commencing from 15 June
2021 the Group makes its best estimate of the number of shares expected to vest based on the latest
available subsequent information including employee turnover rates and revises the estimated
number of equity instruments expected to vest. The employee services received in the current
period are recognized in the relevant costs or expenses at the fair value on the grant date with a
corresponding adjustment to capital reserves.
249AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Pursuant to the Proposal on the Draft 2024 Restricted Share Incentive Plan of Avary Holding
(Shenzhen) Co. Limited and its Summary approved by the shareholders' resolution at the First
Extraordinary General Meeting held on 9 September 2024 the restricted shares granted under this
incentive plan become vested in three tranches after 12 months from the date of registration of the
grant with the vesting percentages being 30% 30% and 40% for each tranche respectively. The
employee participants are subject to strict performance-based vesting conditions. Under the
incentive plan the actual number of restricted shares that become vested for a grantee in a given
year is determined based on the Company's performance assessment results and the individual's
performance assessment results. Any restricted shares that fail to vest in the assessment year shall
not be deferred to the next period and shall be repurchased and cancelled by the Company at the
grant price. On 27 September 2024 the Company received total capital contributions of
RMB167617230.00 and concurrently recognized a liability of RMB167617230.00 for the
repurchase obligation. Accordingly the Group determined that the amortization periods for the
share-based payment expenses corresponding to the 30% 30% and 40% tranches are one two and
three years respectively. At each balance sheet date during the maximum three-year service period
commencing from 13 September 2024 the Group makes its best estimate of the number of equity
instruments expected to vest based on the latest available subsequent information including
employee turnover rates and performance assessment results and revises the estimated number of
equity instruments expected to vest. The employee services received in the current period are
recognized in the relevant costs or expenses at the fair value on the grant date with a corresponding
adjustment to capital reserves.Reason for significant
difference between current-
period estimates and prior- Nil
period estimates
Accumulated amount of
equity-settled share-based
payments included in 869999402.23
capital reserve
Total expenses recognized
for equity-settled share-
based payments during the 78821964.00
current period
3. Cash-settled share-based payments
□ Applicable □Not Applicable
4. Share-based payment expenses during the year
□ Applicable □Not Applicable
XV. Commitments and Contingencies
1. Significant commitments
Significant commitments existing as at the balance sheet date
The following are capital expenditure commitments contracted by the Group as at the balance sheet date but not required to be presented
on the balance sheet:
31 December 2025 31 December 2024
Equipment and construction payments 10720976485.67 2872046510.28
250AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
XVI. Events After the Balance Sheet Date
Profit distribution
Proposed dividend per 10 shares (RMB) 10.00
Pursuant to the Board resolution dated 30 March 2026 based on the distributable profits of
the parent company the Board proposed to use the total share capital of 2318051016
shares as at 31 December 2025 less the 2317536658 shares after deducting certain
Profit distribution plan
restricted shares proposed to be repurchased and cancelled under the 2021 Restricted Share
Incentive Plan and the 2024 Restricted Share Incentive Plan as the base and distribute a
cash dividend of RMB10.00 (tax inclusive) for every 10 shares to all shareholders.
2. Other events after the balance sheet date
As lessor the Group's undiscounted lease receipts receivable after the balance sheet date are summarized as follows:
31 December 2025
Within one year 55412039.75
One to two years 49827028.56
Two to three years 33641370.42
Three to four years 22117335.87
Four to five years 4366269.00
Over five years 985695.00
Total 166349738.60
XVII. Other Significant Matters
1. Segment Information
(1) Basis for determining reportable segments and accounting policies
The Group determines operating segments based on its internal organizational structure management requirements and internal
reporting system and determines and discloses reportable segments on the basis of operating segments.An operating segment refers to a component within the Group that satisfies all of the following conditions: (1) it can generate revenue
and incur expenses in its ordinary activities; (2) the Group's management can regularly evaluate its operating results to decide on
resource allocation and assess performance; and (3) the Group can obtain relevant accounting information on its financial position
operating results and cash flows. Two or more operating segments with similar economic characteristics may be combined into one
operating segment if certain conditions are met.
251AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) If the Company has no reportable segments or cannot disclose total assets and liabilities by reportable
segment the reasons should be explained
The Group is principally engaged in the research production development and sale of various printed circuit boards. The Group does
not distinguish the above business in terms of its internal organizational structure and management requirements. When reviewing
internal reports deciding on resource allocation and evaluating performance management also considers it unnecessary to distinguish
the operating results of the above business. The Group has not distinguished different operating segments and therefore no segment
report is presented.XVIII. Notes to Major Items in the Parent Company Financial Statements
1. Accounts Receivable
(1) Aging analysis
Unit: RMB
Aging Closing gross carrying amount Opening gross carrying amount
Within one year (inclusive) 4516330722.60 4679476781.57
Total 4516330722.60 4679476781.57
252AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(2) Disclosure by method of provision for bad debts
Unit: RMB
Closing balance Opening balance
Allowance for doubtful Allowance for doubtful
Gross carrying amount Gross carrying amount
Category accounts accounts
Carrying amount Carrying amount
Provision Provision
Amount Percentage Amount Amount Percentage Amount
ratio ratio
Including:
Accounts
receivable
for which
allowance
for doubtful 4516330722.60 100.00% 13548992.17 0.30% 4502781730.43 4679476781.57 100.00% 14038430.34 0.30% 4665438351.23
accounts is
provided on
a collective
basis
Including:
Total 4516330722.60 100.00% 13548992.17 4502781730.43 4679476781.57 100.00% 14038430.34 4665438351.23
If the allowance for doubtful accounts receivable is provided under the general expected credit loss model:
□Applicable □ Not Applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful accounts Expected credit losses over the Lifetime expected credit losses (not Lifetime expected credit losses Total
next 12 months credit-impaired) (credit-impaired)
Balance at 1 January 2025 14038430.34 14038430.34
Balance at 1 January 2025 during
the period
253AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Provision during the current period 13548992.17 13548992.17
Reversal during the current period 14038430.34 14038430.34
Balance at 31 December 2025 13548992.17 13548992.17
254AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Movements in allowance for doubtful accounts during the year
Provision for bad debts during the year:
Unit: RMB
Movements during the current period
Opening
Category Recovery or Closing balance balance Provision Write-off Other
reversal
Sales customers 14038430.34 13548992.17 14038430.34 13548992.17
Total 14038430.34 13548992.17 14038430.34 13548992.17
(4) Top five accounts receivable and contract assets by debtor at period end
Unit: RMB
Closing balance
Percentage of
Closing of allowance for
the total closing
balance Closing balance of doubtful accounts
Closing balance of balance of
Name of accounts receivable receivable and
accounts receivable accounts
contract and contract assets impairment
receivable and
assets provision for
contract assets
contract assets
Total accounts receivable from
4402314742.754402314742.7597.48%13206944.23
the top five debtors
Total 4402314742.75 4402314742.75 97.48% 13206944.23
2. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 748858189.35 1501375896.77
Total 748858189.35 1501375896.77
(1) Other receivables
1) Other receivables by nature
Unit: RMB
Nature of amount Closing gross carrying amount Opening gross carrying amount
Production capacity deposits receivable 100000000.00 0.00
Current accounts receivable from group
585164166.671448678223.61
companies
Receivables from disposal of fixed assets
29528731.549178994.97
within the Group
Receivables for scrap sales 18804103.31 1407209.60
Intra-group equipment rentals receivable 12839639.46 14989314.94
Utilities receivable 3645100.17 2293244.06
Tax refunds receivable 0.00 29050442.09
255AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
other 828880.17 208734.67
Total 750810621.32 1505806163.94
2) Aging analysis
Unit: RMB
Aging Closing gross carrying amount Opening gross carrying amount
Within one year (inclusive) 750810621.32 1505806163.94
Total 750810621.32 1505806163.94
256AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
3) Disclosure by method of provision for bad debts
Unit: RMB
closing balance opening balance
Allowance for doubtful Allowance for doubtful
Gross carrying amount Gross carrying amount
Category accounts Carrying accounts
Carrying amount
Provision amount Provision
Amount Percentage Amount Amount Percentage Amount
ratio ratio
Allowance
for doubtful
accounts
provided on 100000000.00 13.32% 100000000.00 29050442.09 1.93% 29050442.09
an individual
basis
Including:
Allowance
for doubtful
accounts
provided on a 650810621.32 86.68% 1952431.97 0.30% 648858189.35 1476755721.85 98.07% 4430267.17 0.30% 1472325454.68
collective
basis
Including:
Total 750810621.32 100.00% 1952431.97 748858189.35 1505806163.94 100.00% 4430267.17 1501375896.77
Provision for bad debts under the general expected credit loss model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowance for doubtful accounts Expected credit losses over the Lifetime expected credit losses (not Lifetime expected credit losses Total
next 12 months credit-impaired) (credit-impaired)
Balance at 1 January 2025 4430267.17 4430267.17
Balance at 1 January 2025 during
the period
257AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Provision during the current period 1952431.97 1952431.97
Reversal during the current period 4430267.17 4430267.17
Balance at 31 December 2025 1952431.97 1952431.97
258AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Significant changes in the carrying amount corresponding to movements in loss allowances during the year
□ Applicable □Not Applicable
4) Movements in allowance for doubtful accounts during the year
Provision for bad debts during the year:
Unit: RMB
Movements during the current period
Opening
Category Closing balance
balance Recovery or Write-off or provision Other
reversal cancellation
Portfolio of
receivables
4421567.281891319.584421567.281891319.58
from
subsidiaries
Other
receivables 8699.89 61112.39 8699.89 61112.39
portfolio
Total 4430267.17 1952431.97 4430267.17 1952431.97
5) Top five other receivables by debtor at period end
Unit: RMB
Percentage of total Closing balance of
Closing
Name Nature of amount Aging closing balance of allowance for
balance
other receivables doubtful accounts
Hong Heng Sheng Borrowings and
Within one
Electronical Technology interest 585220666.67 77.95% -1755662.00
year
(Huaian) Co. Ltd. receivable
Honghe Electronic Production
Within one
Materials Technology capacity deposits 100000000.00 13.32% 0.00
year
Co. Ltd. receivable
Qingding Precision
Equipment Within one
Electronics (Huai'an) 22010093.48 2.93% -66030.28
receivables year
Co. Ltd.Equipment
Kuisheng Technology rentals and Within one
14754968.851.97%-40358.07
(Shenzhen) Co. Ltd. utilities year
receivable
Yaoding Environmental
Receivables for Within one
Energy Technology 13452691.84 1.79% -44264.90
scrap sales year
(Shenzhen) Co. Ltd.Total 735438420.84 97.96% -1906315.25
3. Long-term Equity Investments
Unit: RMB
Closing balance Opening balance
Item Gross carrying Impairment Gross carrying Impairment
Carrying amount Carrying amount
amount provision amount provision
259AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Investments
in 10281909302.54 10281909302.54 8709471186.54 8709471186.54
subsidiaries
Total 10281909302.54 10281909302.54 8709471186.54 8709471186.54
260AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(1) Investments in subsidiaries
Unit: RMB
Opening balance Movements during the current period Closing balance
Opening balance Closing balance
Investee of impairment
(carrying amount) Additional Reduction in Provision for
of impairment
(carrying amount)
provision Other investment investment impairment provision
Qingding 3558139857.77 28028039.51 3586167897.28
Hongqisheng 2813996993.93 22280727.00 2836277720.93
Taiwan Pengding 465085151.56 2093743.49 467178895.05
Honghengsheng 428006217.89 1000000000.00 785039.00 1428791256.89
Avary Singapore
423707266.20423707266.20
Private Limited
Hong Kong
413629200.00413629200.00
Pengding
Pengding
460500000.00161556000.00622056000.00
Investment
Fubai 120518406.15 120518406.15
Kuisheng 20713583.04 741708.00 21455291.04
Pengding
5074510.00228695.005303205.00
Property
Pengding Zhuhai 100000.00 100000.00
Wuxi Huayang 0.00 356724164.00 356724164.00
Total 8709471186.54 1518280164.00 54157952.00 10281909302.54
4. Operating Revenue and Operating Costs
Unit: RMB
Current period amount Prior period amount
Item
Income Cost Income Cost
261AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Principal business 17150933592.65 14724365636.05 15217172075.31 12771274236.30
Other business 94362763.12 73235106.60 81019624.96 64369628.23
Total 17245296355.77 14797600742.65 15298191700.27 12835643864.53
262AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
Breakdown of operating revenue and operating costs:
Unit: RMB
The company
Contract category
Operating revenue Operating costs
Business type 17245296355.77 14797600742.65
Including:
Boards for communications 13268201451.68 11756854872.75
Boards for consumer electronics and
3673705592.052787584435.48
computers
Boards for automotive servers and others 209026548.92 179926327.82
Other business 94362763.12 73235106.60
Total 17245296355.77 14797600742.65
Information related to the transaction price allocated to the remaining performance obligations:
As at the end of the reporting period the revenue corresponding to performance obligations under contracts that had been signed but
not yet performed or not yet fully performed amounted to RMB 189616344.27 of which RMB 189616344.27 is expected to be
recognized as revenue in 2026.
5. Investment Income
Unit: RMB
Item Current period amount Prior period amount
Investment income from held-for-trading
financial assets during the holding period 370000.00 0.00
Dividend income from investments in
other equity instruments during the 1874906.26 1307000.00
holding period
Investment income from disposal of held-
for-trading financial assets 7192035.19 0.00
Dividend income distributed by
1500000000.002000000000.00
subsidiaries
Total 1509436941.45 2001307000.00
XIX. Supplementary Information
1. Details of Current Non-recurring Gains and Losses
□Applicable □ Not Applicable
Unit: RMB
Item Amount Description
Gains or losses from disposal of non-
current assets 14348695.97
Government grants recognized in current
profit or loss (excluding government
grants closely related to the Company’s 149696650.09
ordinary business operations in
compliance with national policies
263AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
enjoyed according to established
standards and having a continuing impact
on the Company’s profit or loss)
Gains or losses from changes in fair value
of financial assets and financial liabilities
held by non-financial enterprises and
gains or losses from disposal of financial 85242886.90
assets and financial liabilities except for
effective hedging activities related to the
Company’s ordinary business operations
Other non-operating income and expenses
other than the above items -8195986.75
Less: income tax effect 37608106.68
Total 203484139.53 --
Details of other gains and losses that meet the definition of non-recurring gains and losses:
□ Applicable □Not Applicable
The Company had no other gains or losses that meet the definition of non-recurring gains and losses.Explanation of items listed as non-recurring gains and losses in Explanatory Announcement No. 1 on Information Disclosure by
Companies Offering Securities to the Public - Non-recurring Gains and Losses that are classified as recurring gains and losses
□ Applicable □Not Applicable
2. Return on Net Assets and Earnings per Share
Earnings per share
Weighted average return on
Profit for the reporting period
net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributable to
ordinary shareholders of the 11.42% 1.61 1.61
Company
Net profit attributable to
ordinary shareholders of the
Company after deducting non- 10.80% 1.52 1.52
recurring gains and losses
3. Differences in Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences in net profit and net assets in financial statements disclosed under both International
Accounting Standards and Chinese Accounting Standards
□ Applicable □ Not Applicable
(2) Differences in net profit and net assets in financial statements disclosed under both overseas accounting
standards and Chinese Accounting Standards
□ Applicable □ Not Applicable
264AVARY HOLDING (SHENZHEN) CO. LTD. 2025 Annual Report
(3) Explanation of reasons for differences in accounting data under domestic and overseas accounting
standards; if adjustments are made to data audited by an overseas audit institution the name of such overseas
institution should be stated
□ Applicable □ Not Applicable
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