Shenzhen China Bicycle Company (Holdings) Limited

Semi-Annual Report 2026

August 2026

1Section I. Important Notice Contents and Interpretation

The Board of Directors Directors and Senior Executives of the Company hereby guarantees that there are no

misstatement misleading representation or important omissions in this report and shall assume joint and several

liability for the authenticity accuracy and completeness of the contents hereof.Wang Shenghong Principal of the Company Sun Longlong person in charge of accounting works and Tan

Ningjie person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of

2026 Semi-Annual Report is authentic accurate and complete.

All directors are attended the Board Meeting for report deliberation.The Company plans not to distribute cash dividends not to send bonus shares and no reserve Capitalizing.

2Table of Contents

Section I Important Notice Contents and Interpretation

Section II Company Profile and Main Financial Indexes

Section III Management Discussion and Analysis

Section IV Corporate Governance Environmental and Social Responsibility

Section V Important Events

Section VI Change of share capital and shareholding of Principal Shareholders

Section VII Corporate Bond

Section VIII Financial Report

3Documents Available for Reference

1. Accounting statement carrying the signatures and seals of the legal representative person in charge of accounting

and person in charge of accounting organ.

2. Originals documents of the Company and manuscripts of public notices that disclosed in the newspaper

designated by CSRC during the reporting period.

3. English version of the Semi-Annual Report 2026

4Interpretation

Item Refers to Contents

Company the Company the listed Shenzhen China Bicycle Company

Refers to

company CBC Group (Holdings)Limited

Wansheng Industrial Holdings (Shenzhen)

Wansheng Industrial Refers to

Co. Ltd

Shenzhen Guosheng Energy Investment

Guosheng Energy Refers to

Development Co. Ltd.SGE Refers to Shanghai Gold Exchange

CNY Refers to RMB/CNY

5Section II Company Profile and Main Financial Indexes

I. Company Profile

Short form of the stock Zhonghua A Zhonghua B Stock Code 000017200017

Short form of the Stock before

N/A

changed (if applicable)

Stock Exchange for listing Shenzhen Stock Exchange

Name of the Company (in

深圳中华自行车（集团）股份有限公司

Chinese)

Short form of the Company (in深中华

Chinese if applicable)

Foreign name of the Company

ShenzhenChina Bicycle Company (Holdings)Co. Ltd.(if applicable)

Short form of foreign name of

CBC

the Company (if applicable)

Legal representative Wang Shenghong

II. Person/Way to contact

Secretary of the Board Rep. of security affairs

Name Sun Longlong Yu Xiaomin Zhong Xiaojin

8/F Shuibei Jinzuo Building No.89 Beili 8/F Shuibei Jinzuo Building No.89 Beili

Contact Address North Road Cuizhu Street Luohu North Road Cuizhu Street Luohu

District Shenzhen District Shenzhen

Tel. 0755-28181688 0755-28181688

Fax 0755-28181009 0755-28181009

E-mail dmc@szcbc.com dmc@szcbc.com

III. Other

1. Way of contact

Whether registrations address offices address and codes as well as website and email of the Company changed in

reporting period or not

□ Applicable √ Not applicable

Registrations address offices address and codes as well as website and email of the Company has no change

in reporting period found more details in annual report 2025.

2. Information inquiry

Whether information disclosure and preparation place changed in reporting period or not

□ Applicable √ Not applicable

None of the official presses website and place of enquiry has been changed in the semi report period. found

more details in annual report 2025.

3. Other relevant information

Did any change occur to other relevant information during the reporting period

□ Applicable √ Not applicable

6IV. Main accounting data and financial indexes

Whether it has retroactive adjustment or re-statement on previous accounting data or not

□Yes □No

Changes in the current period

Current period Same period of last year over the same period of

previous year (+-)

Operation revenue(RMB) 300383869.76 319943616.63 -6.11%

Net profit attributable to

shareholders of the listed 10582965.53 18570777.64 -43.01%

company(RMB)

Net profit attributable to

shareholders of the listed

company after deducting non- 9113628.59 17935747.80 -49.19%

recurring gains and

losses(RMB)

Net cash flow arising from

-24482676.82-38503422.4936.41%

operating activities(RMB)

Basic EPS(RMB/Share) 0.0154 0.0269 -42.75%

Diluted EPS(RMB/Share) 0.0154 0.0269 -42.75%

Weighted average ROE 2.72% 5.26% -2.54%

Increase/decrease in current

End of current period End of last year report-end over that of last

period-end(+-)

Total assets(RMB) 482328886.59 478004242.28 0.90%

Net assets attributable to

shareholder of listed 394070784.90 384260187.21 2.55%

company(RMB)

V. Difference of the accounting data under accounting rules in and out of China

1. Difference of the net profit and net assets disclosed in financial report under both IAS (International

Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either IAS

(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the period.

2. Difference of the net profit and net assets disclosed in financial report under both foreign accounting

rules and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report under either foreign

accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.VI. Items and amounts of extraordinary profit (gains)/loss

□Applicable □Not applicable

7In RMB

Item Amount Note

Gain and loss from change of the fair

value arising from transactional

monetary assets transactional financial

liabilities as held as well as the

investment income arising from disposal

of the transactional monetary assets -10681.00

transactional financial liabilities and

financial assets available for sale

excluding the effective hedging

transaction in connection with the

Company’s normal business

Switch-back of provision of impairment

of account receivable which are treated 7400.00

with separate depreciation test

Net amount of non-operating income and

2835385.95

expense except the aforesaid items

Less :Influenced amount of income tax 707771.83

Influenced amount of minor

654996.18

shareholders’ equity (after tax)

Total 1469336.94

Details of other gains/losses items that meets the definition of non-recurring gains/losses:

□Applicable□Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in

Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---

Extraordinary Profit/loss

□Applicable□Not applicable

The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on

Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring)

Profit(gain)/lossdefined as recurring profit(gain)/loss

8Section III Management Discussion and Analysis

I. Main business of the Company during the reporting period

Main business of the Company during the reporting period including jewelry gold and silver business bicycle

and new energy lithium battery materials: (1) The gold jewelryand silver business-the company connected with

downstream gold jewelry brands purchased gold silver and diamonds according to their product needs and then

commissioned gold jewelry processing plants for processing made product certification for the processed finished

products after passing the inspection and downstream jewelry brand enterprises and distributors.Through the

integration of upstream supplier resources and downstream customer resources the turnover rate of gold jewelry

products in the upstream and downstream was improved the cost of circulation links was reduced and the overall

competitive advantage of the upstream and downstream was formed. (2) Bicycle and new energy lithium battery

materials including manufacturing assembling purchasing and selling bicycles & electric bicycles purchasing

selling and commissioning the lithium battery materials.The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen StockExchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

(1) Industry development

China is one of the most important jewelry producer and consumer in the world at present. With the growth of

national economy and the accumulation of residents' wealth people gradually increase their consumption of high-

end consumer goods after meeting the basic living needs. Jewelry with the property of preserving value and showing

personality has become a hot spot of consumer interest of Chinese residents. At the same time with the rise of young

consumers and emerging middle class the demand for quality personal consumption is gradually upgrading and

the young generation's consumption of jewelry tends to be more routine which can improve the repurchase rate of

jewelry products under various occasions providing greater development space for the jewelry industry.Under the background of slowdown in economic growth or increased uncertainty people tend to spend more

rationally and pay more attention to the safety and reliability of family asset allocation. Compared with other

consumer goods gold and silver jewelry can not only beautify our life but also be accepted by more and more

consumers for its strong functions of preserving wealth dispersing investment risks and protecting property safety.On the other hand the jewelry industry has continuously increased its efforts in style design craft materials cultural

marketing and consumption experience which has also become an important driving force for consumption growth.Based on the product demands by the market and customers the Company purchases gold silver and

diamonds then designs processes or commissions jewelry and precious metal processing factories for production.According to the latest statistics from the China Gold Association in the first half of 2026 China's gold consumption

reached 511.412 tons a YOY increase of 1.23%. Among that the gold jewelry accounted for 132.133 tons down

33.88% YOY while gold bars and coins totaled 339.336 tons up 28.42% YOY. With high volatility in gold prices

and the implementation of new gold tax policies the domestic gold consumption structure continues to differentiate.The gold investment demand is strong making gold bars and coins popular investment items and the phased

pullback in gold prices has boosted gold bar sales through bank channels.

(2) Industry development trend analysis

1. Intensified market segmentation and consumption tiering

9The jewelry market will witness further consumption tiering in the future with the high-end jewelry market

poised for sustained growth while competition in the mass jewelry market increasingly centers on cost-performance

ratios product diversity and personalized expression. On one hand the expanding new middle class and high-net-

worth individuals will drive growth in art investments and luxury consumption. Fine jewelry leveraging its

advantages as an asset-preservation vehicle cultural-artistic value and high liquidity will gain greater development

space in the high-end consumer market. On the other hand younger consumers guided by rational spending

principles prioritize cost performance design innovation and emotional resonance and favor jewelry products that

combine quality craftsmanship social attributes and personalized expression making fast-fashion jewelry a

potential new market hotspot.

2. Digitalization and artificial intelligence as new growth drivers

The accelerated development of AI and digital technologies is reshaping the jewelry industry's business models.AI empowers jewelry design and supply chains through intelligent algorithms to analyze consumption trends

accurately predict market demand and achieve efficient production with precise inventory management thus

significantly enhancing overall operational efficiency. Social commerce has become the primary purchasing channel

for younger consumers with short videos and livestream shopping emerging as critical brand touch points. By

leveraging digital social tools brands construct multi-dimensional interactive scenarios to amplify communication

and topic marketing further increasing brand visibility and influence while creating higher premium potential. The

proliferation of virtual try-on AR/VR experiences and other innovative technologies delivers more immersive

shopping experiences which not only boosts online conversion rates but also helps brands build digital assets and

strengthens market competitiveness.

3. Design and craftsmanship innovation as key drivers

Driven by technological advancement and growing consumer demand for high-quality intricate designs

innovation in design and craftsmanship has become a pivotal force propelling the gold jewelry industry forward.Brands are increasingly emphasizing artisanal techniques combining traditional goldsmithing skills with modern

aesthetics to preserve cultural heritage while infusing products with uniqueness. China's gold jewelry market is

undergoing a significant transformation with designs becoming younger and more avant-garde under the influence

of younger consumers' distinctive tastes. This demographic merges traditional values with contemporary fashion

trends creating strong demand for designs that balance modern fashion with cultural significance. Intellectual

property (IP) serves both as a protective shield for innovative achievements and a catalyst for new quality productive

forces. The protection and commercialization of IP not only incentivize gold jewelry enterprises to deepen product

R&D and creative design but also elevate the industry's overall design standards and brand value.

4. Channel strength will be regarded as the core competitiveness of enterprises for a long time

The internal competition in the jewelry industry is relatively large and the fierce market competition makes the

construction and control of sales channels for jewelry companies crucial. At the same time due to the high value of

jewelry consumers are often worried about the quality of the product and the reasonableness of the price when

purchasing which often prompts them to purchase through physical channels. There is a certain scarcity of high-

10quality physical channels and the number of high-quality shops in a region’s high-quality business districts is scarce.

Such high-quality shops can not only provide higher traffic improve the retail performance of jewelry but also

have the important value of brand promotion. Therefore in the fierce market competition it is very important for

jewelry enterprises to control high-quality physical channels which reflects the core competitiveness of enterprises

on the other side.

5. The rapid development of e-commerce market creates omni-channel marketing model

The Internet has provided more convenient and more widely spread way of information sharing guiding the

consumers' demands and choices. In recent years jewelry retail enterprises have further strengthened online layout

built new media matrix through various social communication platforms formed multi-channel customer sources

realized rapid spread of online brands and drainage and sales of offline stores and created a new mode of omni-

channel marketing. The development of sharing platforms and e-commerce platforms has changed the consumption

habits of consumers especially the young generation. Online consumers can more conveniently understand product

features and share user experience which has become an important trend of product promotion and future sales.Especially with the rise of live streaming platforms of e-commerce and social contact the market share of live

streaming e-commerce is increasing rapidly.

6. Supply chain management has become an important business method for jewelry enterprises

From the perspective of supply chain in the jewelry industry it mainly involves raw material mining processing

and smelting blank processing jewelry production warehousing distribution and sales. The jewelry enterprise

continue to optimize their supply chain management in order to shorten the supplying cycle and lower operating

costs while guarantee the quality. More and more well-known domestic jewelry brands have outsourced part or all

of the intermediate processing links with low gross profit and large investment over recent years focusing on

premium front-end design brand operation and back-end marketing network construction. Supply chain

management has become a major means for Jewelry enterprise to improving their operational efficiency.

(3) Competitive advantages of the company to engage in the jewelry and gold business

1. Superior quality of upstream supplier system

Currently The Company has established stable purchasing relationships with the Shanghai Gold Exchange and

qualified domestic silver suppliers and has relatively stable cooperation with major diamond suppliers and

processors both domestically and internationally. which has advantages in raw material procurement costs order

production cycles and product quality control and can continuously reduce supply costs and improveoperating

efficiency.

2. Diversified downstream market channels and customer resources

The Company actively expands gold and jewelry customers and has cooperated with many domestic jewelry

brands wholesalers and distributors with diversified customers.

3. Improve the industrial chain of production and design

The company has a one-stop industrial chain of design production processing testing and wholesale. Brand

owners can rely on our jewelry processing resources to hand over lower value-added links such as manufacturing

and distribution to the company so as to focus on the higher value-added brand operation and sales links.Outsourcing in the production and design process can improve the homogenization of gold jewelry products.

4. Closed-loop business process and risk control system

The company has formulated strict business internal control processes such as supplier admittance standards

customer evaluation system full-process order tracking system and procurement price comparison system and has

realized the closed-loop control of capital flow information flow and logistics and the multi-level risk control

11through the integrated service platform of supply system and the integrated solution of capital management.

(4) Main business models during the reporting period

1. Sales model

According to the market requirement customer's requirement and customer's annual order planning and regular

purchase requirement the company conducts raw material procurement product development and design

processing/outsourced processing etc. to provide goods for B-end customers meet customer's requirement and

continuously improve supply efficiency.Purchasing and processing: After the customer places an order with the company according to their own

requirements the company will purchase raw materials and perform outsourced processing to form finished

products for sale to the customer;

Customized development: The customer entrusts the company to develop and design product styles according

to the characteristics of the customer's own brand and future development requirements and deliver the processed

products to the customer.Group sales: Group the products by integrating the product styles and spot resources of suppliers such as

upstream factories and exhibition halls and provide corresponding product structure according to the brand

characteristics of customers and the requirements of the end market.

2.Procurement model

The Company's upstream raw material procurement mainly focuses on gold silver and diamonds with gold

primarily sourced from the Shanghai Gold Exchange silver mainly purchased from qualified suppliers and diamond

suppliers mainly from producers or wholesalers in places like India or Hong Kong as well as established domestic

diamond wholesalers (generally members of the Shanghai Diamond Exchange)..The company has established

professional procurement department and team to be responsible for the procurement of diamond products and

jewellery. The specific procurement models varied according to customer needs.

3. Production model

By integrating upstream commissioned processing plants the company outsourced the production of products

ordered by customers to professional jewelry manufacturers to give full play to their professional and scale effect.In view of the current situation and characteristics of domestic jewelry processing enterprises the company

established a set of effective supplier management mechanisms and evaluation standards to achieve a benign

interaction between the production system of outsourced manufacturers and the company's business development.

(5) Operation of the physical store during the reporting period

During the reporting period gold and jewelry business of the Company mainly provides supply chain

management and services in the vertical field of gold and jewelry it connects with the downstream gold jewelry

brand and does not have the physical stores.

（6）Operation of online sales of jewelry business during the reporting period

During the reporting period the company's online sales accounted for a relatively small proportion The

Company's jewelry business achieved sales revenue online through third-party platforms which accounts for less

than 1% of the total operating income.

（7）Inventory of jewelry business during the reporting period

As of the reporting period(2025.6.30) inventory of the jewelry business was 144544859.73 yuan an increase

of 21.71% from the beginning of the period. Type of the inventories including:

In RMB

12Item Types Amount Proportion

Jewelry 6465839.00 4.47%

Gold jewelry 51098567.72 35.35%

Finished goods Silver jewelry 5313406.02 3.68%

Other 5326807.41 3.69%

Total 68204620.15 47.19%

Gold 38645687.65 26.74%

Silver 28733391.50 19.87%

Raw materials

Diamond 3130962.57 2.17%

Total 70510041.72 48.78%

Goods in process 5830197.86 4.03%

Total 144544859.73 100.00%

II. Core Competitiveness Analysis

Jewelry and gold business is the core business of the Company. The Company pays attention to both the

economic situation and the fluctuation of raw material prices at home and abroad. During the reporting period the

Company strove to develop new customers maintain old customers select the superior and eliminate the inferior

and further enrich and expand the customer base; With subsidiaries including Xinsen Company and the Group

headquarters as core suppliers it pursued supplier qualification certification for jewelry brands to become their

multi-category approved suppliers; enhanced product development and quality management; promoted innovative

craftsmanship applications; strengthened IP protection and commercialization to boost differentiated advantages

and market competitiveness of the company; It strengthened product development and quality management; It

supplied raw materials such as gold purchased from Shanghai Gold Exchange and diamonds purchased from

qualified suppliers to brands wholesalers and distributors in batches through product design

processing/commissioned processing and quality inspection and acceptance. During the reporting period the

Company continued to operate the bicycle and electric bicycle businessand brand management etc.Competitive advantage of the Company in jewelry and gold business:

1. High-quality upstream supplier system

Currently the Company has formed a stable gold procurement business relationship with the Shanghai Gold

Exchange and has established a relatively stable cooperative relationship with major diamond suppliers and

processors at home and abroad which has advantages in raw material procurement costs order production cycles

and product quality control and can continuously reduce supply costs and improve operating efficiency.

2. Diversified downstream market channels and customer resources

The Company actively expands gold and jewelry customers and has cooperated with many domestic jewelry

brands wholesalers and distributors with diversified customers.

3. Industrial chain improvement of production and design links

The company has an industrial chain process coordinating design production processing inspection and wholesale.Brand owners can rely on our jewelry processing resource advantages and hand over low value-added links such as

manufacturing and distribution to the company so as to focus on the brand operation and sales links with higher

added value. Outsourcing of production and design can improve the homogeneity of gold and jewelry products.

134. Closed-loop business process and risk control system

The company has developed strict internal business control processes such as supplier admittance criterion

customer evaluation system whole-process order tracking system and purchase price comparison system. Through

integrated service platform of supply system and integrated solution of fund management the company has realized

closed-loop control of capital flow information flow and logistics and realized multi-level risk control.III. Main business analysis

Overview

See the “I-Main businesses of the Company during the reporting period”

Y-o-y changes of main financial data

In RMB

Current period Same period last year y-o-y changes (+ -) Reasons

Operation revenue 300383869.76 319943616.63 -6.11%

Operation cost 277463503.07 285089133.54 -2.67%

Sales expenses 3707350.02 3955043.06 -6.26%

The general and

administrative

Administration

4684735.39 6158206.48 -23.93% expenses decreased

expenses

during the current

period.The interest expenses

Finance expenses 521567.41 258062.61 102.11% increased during the

current period.The total profit

Income tax expenses 5056533.83 -42.69% decreased during the

2897828.97 current period.

Credit impairment loss 478629.07 -606085.62 178.97%

The Company

recognized the

impairment provision

Assets impairment loss -2716552.97 - -

for silver inventories

during the current

period.Income from

Non-operation income 3297041.21 840630.92 292.21% managed-on-behalf

assets

The operating revenue

edged down and the

Net Profit 10996499.99 18925199.69 -41.89% gross profit margin

edged down during the

current period.The operating revenue

edged down and the

Total profit 10582965.53 18570777.64 -43.01% gross profit margin

edged down during the

current period.Major changes on profit composition or profit resources in reporting period

□Applicable□Not applicable

No major changes on profit composition or profit resources occurred in reporting period.

14Constitution of operation revenue

In RMB

Current period Same period last year

Y-o-y changes (+

Ratio in operation Ratio in operation

Amount Amount -)

revenue revenue

Total operation

300383869.76100%319943616.63100%-6.11%

revenue

According to industries

Jewelry gold and

299060092.7499.56%318979752.5099.70%-6.24%

silver

Bicycle lithium

battery material 1323777.02 0.44% 963864.13 0.30% 37.34%

and others

According to products

Jewelry gold and

299060092.7499.56%318979752.5099.70%-6.24%

silver

Bicycle lithium

battery material 1323777.02 0.44% 963864.13 0.30% 37.34%

and others

According to region

Domestic 300383869.76 100.00% 319943616.63 100.00% -6.11%

Industries products or regions that account for more than 10% of the operating revenue or operating profit of the

Company

□Applicable □Not applicable

In RMB

Increase/decrea

Gross Increase/decrea Increase/decrea

se of gross

Operation revenue Operation cost profit se of operation se of operation

profit ratio y-o-

ratio revenue y-o-y cost y-o-y

y

According to industries

Jewelry gold

299060092.74276367099.487.59%-6.24%-2.84%-3.24%

silver

According to products

Jewelry gold

299060092.74276367099.487.59%-6.24%-2.84%-3.24%

silver

According to region

Domestic 299060092.74 276367099.48 7.59% -6.24% -2.84% -3.24%

Under circumstances of adjustment in reporting period for statistic scope of main business data adjusted main

business based on latest one year’s scope of period-end

□Applicable□Not applicable

IV. Analysis of the non-main business

□Applicable□Not applicable

15V. Assets and liability analysis

1. Major changes of assets composition

In RMB

End of current period End of last year

Ratio Notes of major

Ratio in total Ratio in total

Amount Amount changes (+-) changes

assets assets

Monetary

50358469.1310.44%75474633.6515.79%-5.35%

fund

Receivables

from the

jewelry

Account

272136274.75 56.42% 204782335.88 42.84% 13.58% business

receivable

increased

during the

current period.Inventory 144597210.54 29.98% 184690307.34 38.64% -8.66%

2. Main overseas assets

□Applicable □Not applicable

In RMB

Overseas

Control whether

assets

Specific measures to there is a

Reason of Operating Earnings proportion

content of Asset size location ensure significant

formation model status to the

the asset asset impairment

Company's

security risk

net assets

Its directors

and general

manager

are

appointed

The

by the

wholly-

Company

Shenhua Investment Hong owned

30400881. and daily 9332168.0

Internation establishme Kong subsidiary 7.71% No

55 business 8

al Co. Ltd nt China operates

activities

independen

are carried

tly

out in

accordance

with the

Company's

system

3. Assets and liability measured by fair value

□Applicable□Not applicable

164. Assets rights restricted as at the end of the period

1. Among the fixed total output value at the end of the current period the original value of six properties purchased

in 2016 in Lianxin Home Luohu District Shenzhen was 2959824.00 yuan. which were affordable housing

purchased from the Housing and Construction Bureau of Luohu District to provide to enterprise talents for living.The contract stipulated that the purchasing enterprise is not allowed to conduct any form of property rights

transaction with any units or individual other than the government.VI. Investment analysis

1. Overall situation

□Applicable □Not applicable

Investment at same period last year

Investment in the Period(RMB) Changes

(RMB)

65600000.0020700690.00216.90%

2. The major equity investment obtained in the reporting period

□Applicable□Not applicable

3. The major non-equity investment doing in the reporting period

□Applicable□Not applicable

4. Financial assets investment

(1) Securities investment

□Applicable□Not applicable

The Company has no securities investment in the Period

(2) Derivative investment

□Applicable□Not applicable

The Company has no derivatives investment in the Period

5. Application of raised proceeds

□Applicable □Not applicable

The Company has no application of raised proceeds in the Period

VII. Sales of major assets and equity

1. Sales of major assets

□Applicable □Not applicable

17The Company had no major assets sold in the Period.

2. Sales of major equity

□Applicable□Not applicable

VIII. Analysis of main holding company and stock-jointly companies

□Applicable □Not applicable

Particular about main subsidiaries and stock-jointly companies net profit over 10%

In RMB

Company Main Register Operation Operation

Type Total assets Net assets Net profit

name business capital revenue profit

Shenzhen

Xinsen

Jewelry

Jewelry

gold and 20000000 24249562 200008 14489648 142686 146890

Gold Subsidiary

silver

Supply 0 9.40 310.79 6.26 4.05 8.24

business

Chain Co.Ltd

Jewelry

Shenhua

gold and 30400881. 285991 30446896. 110179 933216

Internation Subsidiary 20700690

silver

al Co. Ltd 55 58.46 77 56.92 8.08

business

Particular about subsidiaries obtained or disposed in report period

□Applicable □Not applicable

Modes of acquiring and disposing of Impact on overall production operation

Company Name

subsidiaries during the reporting period and performance

During the reporting period the impact

Shenzhen Emmelle Cloud Technology

Deregistration on the Company’s overall production

Co. Ltd.operation and performance was limited.During the reporting period the impact

Fujian Jinshengming Brand Management

Newly-established sub-subsidiaries on the Company’s overall production

Co. Ltd.operation and performance was limited.No business activities had been

Shenzhen Amini Smart Data Technology

Newly-established sub-subsidiaries commenced during the reporting

Co. Ltd.period.Notes of holding and stock-jointly companies

IX. Structured vehicle controlled by the Company

□Applicable□Not applicable

X. Risks and countermeasures

1. Risks for the Company:

(1) Price fluctuation risk of major raw materials

The main raw materials of the company are gold silver and diamonds etc. In recent years affected by changes in the

international and domestic economic situation the listed price of gold at the gold exchange fluctuates greatly. The

market price of platinum is generally positively correlated with the market price of gold. In the long run the market

18price of diamond is in a moderate rising trend. The selling price of the company's gold products calculated by gram

is linked with the listed price of gold and platinum at the gold exchange. If the market prices of gold platinum

diamonds and other raw materials fall significantly during the inventory turnover period of the company on the one

hand the company has the risk of gross profit margin decline due to the decline in product selling price; on the other

hand the company will also face the risk of decline in operating performance due to the provision for inventory

write down. At the same time the rise in selling price caused by the sharp rise in the market price of raw materials

such as goldsilver and diamonds may lead to the decrease of consumers' willingness and the decline of sales volume

thus adversely affecting the business performance.

(2) The risk of intensifying market competition

In recent years the jewelry market in China has been developing continuously and the consumption demand of

jewelry has been developing in the direction of individuation and diversification. At present China's jewelry

industry has presented diversified competitions. Excellent enterprises in the industry have formed competitive

advantages in a certain segment by deeply exploring the consumption preferences of specific groups. The market

competition has gradually changed from price competition to comprehensive competition among brand business

model marketing channel product design and quality the competition tends to be fierce. In the future development

if the company cannot continue to give full play to its advantages there will be a risk of profitability decline due to

intensified competition in the industry.

(3) Risk of market demand decline

As an optional consumption jewelry is especially sensitive to market demand economic outlook and consumer

preference. China has become one of the countries with the most obvious growth in the jewelry and jade jewelry

industry in the world. If the economic growth rate declines in the future the growth of market consumption demand

may slow down accordingly which will adversely affect the company's business condition.For the above-mentioned potential risks the following countermeasures will be taken by the Company:

（1）Enhancing corporate governance standardize operations further reform and improve the internal operation

management system assessment mechanism strengthen the construction of management teams business teams and

technical teams. Perfected the development plan of the Company.

（2）In terms of gold silver and jewelry business further establish supplier systems and expand customer

resources the business cooperation between the well-known brands and listed company in particular expanding

international business improve internal business processes and internal control system construction promote the

construction of supply chain system platform improve operation quality and efficiency and promote business

development.

（3）In terms of bicycle electric bicycle and new energy business with the goal of brand maintenance and

national market expansion expanded sales networks strengthen brand management and promote the growth of

order business. Continue to follow up the development of new energy and new material of lithium battery.

（4）Continue to cooperate with the manager to carry out asset custody business and relevant litigation response

ensure asset safety and protect the rights and interests of interested parties. Continue to follow up the execution of

Guangshui Jiaxu's lawsuit.

（5）Strengthen the background management and office automation and improve the support of the back office

to the front desk business.

19XI. Formulation and implementation of market value management system and valuation boost plan

Whether the Company has established a market value management system

□Yes□No

Whether the Company has disclosed plans for valuation boost.□Yes□No

XII. The implementation of the action plan of "Double improvement of quality and return".Whether the Company has disclosed the action plan of "Double improvement of quality and return".□Yes□No

20Section IV Corporate Governance Enviornmental and Social Responsibility

I. Changes of directors supervisors and senior executives

□Applicable□Not applicable

There were no changes in the directors supervisors and senior executive of the Company during the Period found

more in the Annual Report 2024

II. Profit distribution plan and capitalizing of common reserves plan for the Period

□Applicable□Not applicable

The Company has no plans of cash dividend distributed no bonus shares and has no share converted from capital

reserve either for the semi-annual.III. Implementation of the company’s stock incentive plan employee stock ownership plan or other employee

incentives

□Applicable□Not applicable

The Company had no implementation of the company’s stock incentive plan employee stock ownership plan or

other employee incentives in the reporting period.IV. Environmental information disclosure situation

Whether the listed companies and their main subsidiaries are included in the list of enterprises that disclose

environmental information according to law

□Yes □No

V. Social responsibility

During the reporting period the company conscientiously fulfilled its corporate social responsibility paid attention

to protecting the interests of shareholders especially minority shareholders; Treated suppliers customers and

consumers with integrity; Earnestly fulfilled the responsibilities and obligations to the society shareholders

employees and other stakeholders created a harmonious environment for enterprise development and realized the

common development of the enterprise and stakeholders.

1. Protection of shareholders' rights and interests

The company strictly complies with the provisions of relevant laws and regulations such as the Company Law the

Securities Law and the Governance Code for Listed Companies continuously improves the corporate governance

structure adheres to handing over the important matters to the resolutions of the shareholders' meeting provides

convenience for medium and small investors to participate in the shareholders' meeting fully listens to the small

and medium-sized investors’ reasonable advice on the company's development and governance and safeguards the

legitimate rights and interests of shareholders.In the first half of 2026 the board of directors of the company convened 1 shareholders' meetings the meeting

adopted the combination of on-site voting and online voting the votes of small and medium investors were counted

separately provided convenience for the majority of investors to participate in the voting at the shareholders'

meeting and ensured the participation right and supervision right of the small and medium-sized investors.In the first half of 2025 the company strengthened communication with investors especially investors from the

21public answered questions about which the public and investors concerned and ensured the investors' right to know

in line with the Information Disclosure Affairs Management System and Reception and Promotion Work System

and by means of various forms such as the interactive platform of Shenzhen Stock Exchange hotline of the

company’s securities affairs department and so on.On 14 May 2026 the company held the 2025 annual performance briefing in which the company made online

communication with investors on the company's performance operating conditions and other issues of concern to

investors. A total of 11 questions were raised by investors during the briefing which were answered by directors

and senior management personnel.The company is committed to protecting the rights and interests of investors by improving the corporate governance

structure improving the level of information disclosure and investor relationship management and carrying out

investor education and guiding investors to form value investment concept through real and effective

communication. In order to effectively ensure smooth service channels for investors the company has arranged

full-time personnel to answer investors' hotline calls and answer questions on the interactive platform and relevant

staff has patiently analyzed the announcement information for investors to help investors understand the company's

situation in time.

2. Protection of workers' rights and interests

The company adheres to the people-oriented comprehensively implements the Labor Law and Labor Contract Law

attaches great importance to guarantee of the employees' rights and interests at the same time establishes good

communication channels throughout the whole process of staff management and care pays attention to staff growth

improves the staff overall quality cultivates excellent internal training culture system creates a good learning

environment. Meanwhile the company pays attention to enriching the spiritual life of employees regularly carries

out staff activities and improves team cohesion. In accordance with the Labor Contract Law of the People's

Republic of China and other relevant national and local labor laws and regulations the company signs labor

contracts with employees to protect their rights and interests. The company and its subsidiaries strictly implement

the national employment system labor protection system social security system and medical security system and

pay the housing provident fund medical insurance endowment insurance unemployment insurance work-related

injury insurance and maternity insurance for employees according to the state regulations. The company adheres to

corporate culture of efficient coordination people-oriented on-demand training training by level and echelon

training. The company establishes internal knowledge sharing system promotes information and knowledge

exchange among various modules of the company and improves team coordination ability. It encourages employees

to participate in continuing education and enhances the knowledge structure optimization and professional quality

promotion of workers at various positions.

3. Protection of rights and interests of suppliers customers and consumers

The company actively organizes and carries out customer management takes measures to ensure the rights and

interests of customers and actively promotes customer satisfaction and service excellence. It makes full use of the

rich social resources in the market and establishes a good partnership with suppliers. The company promises not to

abuse or misuse consumer information for the protection of rights and interests of consumers.

22Section V Important Events

I. Commitments completed in Period and those without completed till end of the Period from actual

controller shareholders related parties purchaser and companies

□Applicable □Not applicable

Commitment Implemen

Commitment Type Content Date Term

party tation

1. From the date when the

shares of the listed

company held by the

Company are no longer

subject to trading

restrictions until the day

prior to the fulfillment of

the performance

Wansheng

Commitment to commitment under the November

Industrial Performan

voluntarily not "Cooperation Agreement" November 72025 to

Other Holdings ce

reduce the Company will not 72025 April

(Shenzhen) completed

shareholdings reduce the shares held in 222028

Co. Ltd

the listed company; if the

performance compensation

is involved the Company

will not reduce the shares

held in the listed company

until the fulfillment of the

performance compensation

obligations.Whether

commitments

Yes

are fulfilled on

time

If any

commitments

remain

unfulfilled

beyond the

agreed period

Not applicable

the specific

reasons for no

fulfillment and

the next steps

shall be

detailed

II. Non-operational fund occupation from controlling shareholders and its related party

□Applicable □Not applicable

No non-operational fund occupation from controlling shareholders and its related party in period.

23III. External guarantee out of the regulations

□Applicable □Not applicable

No external guarantee out of the regulations occurred in the period.IV. Appointment and non-reappointment (dismissal) of CPA

Whether the semi-annual financial report had been audited

□Yes √ No

The semi-annual report was not audited

V. Explanation from Board of Directors and Supervisory Committee for “Qualified Opinion” that issued by

CPA

□Applicable□Not applicable

VI. Explanation from the BOD for “Qualified Opinion” of last year

□Applicable□Not applicable

VII. Bankruptcy reorganization

□Applicable □Not applicable

No bankruptcy reorganization for the Company in reporting period

VIII. Litigations and arbitrations

Significant litigations and arbitrations

□ Applicable √ Not applicable

No such cases in the reporting period.Other lawsuits

□Applicable □Not applicable

Amount

Whether an Litigation Disclo

Litigation involved Execution of Disclo

estimated Progress of litigation (arbitration) sure

(arbitration) (in 10 litigation sure

liability is (arbitration) ruling result refere

overview thousand (arbitration) date

recognized and impact nce

Yuan)

Other lawsuits The

and The first-instance Company

arbitrations(whe judgment was rendered; has made a

Not Not

re the Company the second-instance provision n

1103.5 Yes Not applicable applic applic

and its appeal has been accepted for

able able

controlled and no hearing has yet estimated

subsidiaries are been held. liability of

defendants) that 446600

24did not meet the yuan.

disclosure

thresholds for

material

litigation during

the reporting

period

IX. Penalty and rectification

□ Applicable √ Not applicable

During the reporting period the Company had no Penalty and rectification.X. Integrity of the company and its controlling shareholders and actual controllers

□ Applicable √ Not applicable

XI. Major related transaction

1. Related transaction with routine operation concerned

□ Applicable √ Not applicable

No such cases in the reporting period.

2. Related-party transactions arising from asset acquisition or sold

□Applicable √ Not applicable

No such cases in the reporting period.

3. Main related transactions of mutual investment outside

□Applicable □Not applicable

No main related transactions of mutual investment outside for the Company in reporting period.

4. Contact of related credit and debt

□Applicable □Not applicable

Whether exist non-operating contact of related credit and debt or not

□Yes □No

Claim receivable from related party

Whether Current

Balance Current Current Balance

has non- amount

at period- recovery( interest(1 at period-

Related Relations Causes of business increased( Interest

begin(10 10 0 end(10

party hip formation capital 10 rate

thousand thousand thousand thousand

occupyin thousand

Yuan) Yuan) Yuan) Yuan)

g or not Yuan)

Debts payable to related party

Balance at Current Current Current Balance at

Related Relationshi Causes of

period- amount amount Interest rate interest(10 period-

party p formation

begin(10 increased(1 returned thousand end(10

25thousand 0 thousand (10 Yuan) thousand

Yuan) Yuan) thousand Yuan)

Yuan)

Shenzhen

Guosheng Shareholde

Subsidiary

Energy r with over

Emmelle 650 0 0 0.00% 0 650

Investment 5% shares

loan

Developme held

nt Co. Ltd.Influence on operation

result and financial statue

Not applicable

of the Company from

related debts

5. Contact with the related finance companies

□Applicable □Not applicable

There are no deposits loans credits or other financial business between the finance companies with associated

relationship and related parties

6. Transactions between the finance company controlled by the Company and related parties

□Applicable □Not applicable

There are no deposits loans credits or other financial business between the finance companies controlled by the

Company and related parties

7. Other material related transactions

□Applicable □Not applicable

The company had no other material related transactions in reporting period.XII. Significant contract and implementations

1. Trusteeship contract and leasing

(1) Trusteeship

□Applicable □Not applicable

No trusteeship occurred in reporting period.

(2) Contract

□Applicable □Not applicable

No contract occurred in reporting period.

26(3) Leasing

□Applicable □Not applicable

No leasing occurred in reporting period.

2. Major guarantee

□Applicable □Not applicable

No major guarantee occurred in reporting period.

3.Trust financing

□Applicable□Not applicable

No trust financing for the Company in reporting period.

4. Other significant contracts

□Applicable□Not applicable

No other significant contract in reporting period.XIII. Reception of research communication and interview during the reporting period

□Applicable □Not applicable

Main content Basic situation

Reception

Time Way Reception type Object and information index of

location

provided investigation

Found more in“InvestorsThe investors

Relations

The on-line participated in Company

Online Activities

platform of the online operationscommunication Sheet”(No.:May 142026 “Value On- Other performance futureon the network 2026-001)Line” (www.ir- briefing for year development

platform released on

online.cn) of 2025 through plans etc.Juchao Website

the internet

(www.cninfo.co

m.cn)

XIV. Explanation of other important events

□Applicable □Not applicable

No explanation of other important events in reporting period.XV. Significant event of subsidiary of the Company

□Applicable □Not applicable

27Section VI Changes in Shares and Particular about Shareholders

I. Changes in Share Capital

1. Changes in Share Capital

In Shares

Before the Change Increase/Decrease in the Change (+ -) After the Change

Capitaliza

New

Proportio Bonus tion of Proportio

Amount shares Others Subtotal Amount

n shares public n

issued

reserve

I.Restricted 0 0.00% 0 0 0 0 0 0 0.00%

shares

1. State-

owned 0 0.00% 0 0 0 0 0 0 0.00%

shares

2. State-

owned

legal 0 0.00% 0 0 0 0 0 0 0.00%

person’s

shares

3. Other

domestic 0 0.00% 0 0 0 0 0 0 0.00%

shares

Including:

Domestic

legal 0 0.00% 0 0 0 0 0 0 0.00%

person’s

shares

Domestic

natural

00.00%0000000.00%

person’s

shares

4. Foreign

00.00%0000000.00%

shares

Including:

Foreign

legal 0 0.00% 0 0 0 0 0 0 0.00%

person’s

shares

Foreign

natural

00.00%0000000.00%

person’s

shares

II.

68918496891849

Unrestrict 100.00% 0 0 0 0 0 100.00%

ed shares 33 33

1. RMB

44082194408219

Ordinary 63.96% 0 0 0 0 0 63.96%

shares 51 51

2.

Domestic

24836292483629

ally listed 36.04% 0 0 0 0 0 36.04%

foreign 82 82

shares

3.

Overseas

listed 0 0.00% 0 0 0 0 0 0 0.00%

foreign

shares

284. Others 0 0.00% 0 0 0 0 0 0 0.00%

III. Total 6891849 6891849

100.00%00000100.00%

shares 33 33

Reasons for share changed

□Applicable□Not applicable

Approval of share changed

□Applicable□Not applicable

Ownership transfer of share changed

□Applicable□Not applicable

Progress of shares buy-back

□Applicable□Not applicable

Implementation progress of reducing holdings of shares buy-back by centralized bidding

□Applicable□Not applicable

Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable to

common shareholders of Company in latest year and period

□Applicable□Not applicable

Other information necessary to disclose or need to disclosed under requirement from security regulators

□Applicable□Not applicable

2. Changes of lock-up(restricted) shares

□Applicable□Not applicable

II. Securities issuance and listing

□Applicable□Not applicable

III. Number of shareholders and particular about share holding

In Shares

Total preferred shareholders with voting

Total common shareholders at end

44677 rights recovered at end of reporting 0

of the Period

period (if applicable) (found in note 8)

Particulars about shares held above 5% by shareholders or top ten shareholders(Excludes shares lent through refinancing)

Amount

Amount of Information of

of Amount of

Propor common shares pledged

Changes restricte common

Full name of Nature of tion of shares held at tagged or frozen

in report d shares held

Shareholders shareholder shares the end of

period common without

held reporting State of

shares restriction Amount

period share

held

Domestic

Wansheng Industrial Not

non-state- 20.00

Holdings 137836986 0 0 137836986 applicab 0

owned legal

(Shenzhen) Co. Ltd %

person le

Shenzhen Guosheng Domestic 9.22% 63508747 0 0 63508747 Pledge 635087

29Energy Investment non-state- 47

Development Co. owned legal

Ltd. person

Not

UOB Kay Hian

Foreign app

(Hong Kong) 5.92% 40817329 0 0 40817329 0

legal person lica

Limited

ble

Not

Funde P& C－self- 3399041 app

Other 4.93% 33990416 0 33990416 0

fund 6 lica

ble

Not

China Merchants

Foreign app

Securities (HK) Co. 4.23% 29135174 2710000 0 29135174 0

legal person lica

Ltd

ble

Not

Guosen Securities

Foreign app

(HK) Brokerage 3.04% 20983693 0 0 20983693 0

legal person lica

Co. Ltd.ble

Not

Shenwan Hongyuan

Foreign app

Securities (Hong 1.20% 8279256 0 0 8279256 0

legal person lica

Kong) Co. Ltd.ble

Not

Domestic

app

Li Huili nature 0.56% 3891124 0 0 3891124 0

lica

person

ble

Special account for

property disposal Domestic Not

of Shenzhen China non-state- app

0.38%26024020026024020

Bicycle owned legal lica

Company(Holding person ble

s) Co. Ltd.Domestic Not

app

Xu Shengli nature 0.37% 2536900 0 0 2536900 0

lica

person ble

Strategy investors or general

corporation comes top 10 common

stock shareholders due to placement N/A

of new shares (if applicable) (see

note 3)

Li Huili spouse of Ji Hanfei the actual controller of Shenzhen Guosheng Energy Investment

Development Co. Ltd. holding B-share of the Company on behalf of Shenzhen Guosheng

Explanation on associated

Energy Investment Development Co. Ltd. other than that the Company does not know

relationship among the aforesaid

whether the other outstanding shareholders are related and whether the shareholders belong

shareholders

to persons acting in concert regulated in the Administration of Disclosure of Information on

the Change of Shareholders in Listed Companies.Description of the above

shareholders in relation to

N/A

delegate/entrusted voting rights and

abstention from voting rights.Special note on the repurchase

account among the top 10

N/A

shareholders (if applicable) (see

note 11)

Shareholding of top 10 shareholders of unrestricted shares(Excluding shares lent through refinancing and Top management lock-in

stock)

Type of shares

Shareholders’ name Amount of un-restrict common shares held at Period-end

Type Amount

RMB

Wansheng Industrial Holdings 137836

137836986 common

(Shenzhen) Co. Ltd shares 986

Shenzhen Guosheng Energy 63508747 RMB 635087

30Investment Development Co. Ltd. common 47

shares

Domesti

cally

UOB Kay Hian (Hong Kong) 408173

40817329 listed

Limited[Note1] 29

foreign

shares

RMB

339904

Funde P& C－self-fund 33990416 common

shares 16

Domesti

cally

China Merchants Securities (HK) 291351

29135174 listed

Co. Ltd 74

foreign

shares

Domesti

cally

Guosen Securities (HK) Brokerage 209836

20983693 listed

Co. Ltd. 93

foreign

shares

Domesti

cally

Shenwan Hongyuan Securities 827925

8279256 listed

(Hong Kong) Co. Ltd. 6

foreign

shares

Domesti

cally

389112

Li Huili 3891124 listed

4

foreign

shares

RMB

138331

common

shares 3

Special account for property

disposal of Shenzhen China Domesti

2602402

Bicycle Company(Holdings) Co. cally

121908

Ltd. listed

9

foreign

shares

Domesti

cally

253690

Xu Shengli 2536900 listed

0

foreign

shares

Expiation on associated relationship Li Huili spouse of Ji Hanfei the actual controller of Shenzhen Guosheng Energy Investment

or consistent actors within the top Development Co. Ltd. holding B-share of the Company on behalf of Shenzhen Guosheng

10 un-restrict shareholders and Energy Investment Development Co. Ltd. other than that the Company does not know

between top 10 un-restrict whether the other outstanding shareholders are related and whether the shareholders belong

shareholders and top 10 to persons acting in concert regulated in the Administration of Disclosure of Information on

shareholders the Change of Shareholders in Listed Companies.Explanation on top 10 shareholders

involving margin business (if N/A

applicable) (see note 4)

Note 1: UOB Kay Hian (Hong Kong) Limited is a licensed corporation under the Hong Kong Securities and Futures Ordinance

providing securities brokerage services to retail and institutional clients. Its main business is brokerage of Hong Kong stocks and

it also provides securities brokerage and services in overseas markets. According to the email sent by UOB Kay Hian (Hong

Kong) Limited as of June 30 2026 UOB Kay Hian (Hong Kong) Limited held 40817329 B shares of Shenshen China Bicycle

for three retail customers. Although the shareholding ratio has reached 5.92% that of a single customer did not exceed 5% and

the three retail customers were not acting in concert an did not hold the shares of Shenzhen China Bicycle on other platforms.Information of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10

31shareholders of unrestricted tradable shares participating in the lending of shares in securities lending and

borrowing business

□ Applicable √ Not applicable

The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared with

the previous period due to the securities lending/returning

□ Applicable √ Not applicable

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-

back agreement dealing in reporting period.□ Yes √ No

The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company

have no buy –back agreement dealing in reporting period.IV. Changes of shares held by directors supervisors and senior executives

□Applicable□Not applicable

Shares held by directors supervisors and senior executives have no changes in reporting period found more

details in Annual Report 2025.V. Changes in controlling shareholders or actual controllers

Change of controlling shareholder during the reporting period

□Applicable□Not applicable

The Company had no change of controlling shareholder during the reporting period

Change of actual controller during the reporting period

□Applicable□Not applicable

The Company had no change of actual controller during the reporting period

VI. Preferred stock

□Applicable□Not applicable

The Company had no preferred stock in the Period.

32Semi-Annual Report 2026

Section VII Corporate Bonds

□Applicable□Not applicable

33Semi-Annual Report 2026

Section VIII Financial Report

I. Audit report

Whether the semi-annual report is audited

□Yes □No

The company's semi-annual financial report has not been audited

II. Financial Statement

Statement in Financial Notes are carried Unit: RMB/CNY

1. Consolidated Balance Sheet

Prepared by Shenzhen China Bicycle Company (Holdings) Limited

June 30 2026

In RMB

Item 2026-6-30 2026-1-1

Current assets:

Monetary fund 50358469.13 75474633.65

Settlement provisions

Capital lent

Trading financial assets

Derivative financial assets

Note receivable

Account receivable 272136274.75 204782335.88

Receivable financing

Accounts paid in advance 1150013.93 1095681.96

Insurance receivable

Reinsurance receivables

Contract reserve of reinsurance

receivable

Other account receivable 960894.71 818967.94

Including: Interest receivable

Dividend receivable

Buying back the sale of financial assets

Inventory 144597210.54 184690307.34

Including：Data resources

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 1250766.21 372060.27

Total current assets 470453629.27 467233987.04

Non-current assets:

Loans and payments on behalf

Debt investment

34Semi-Annual Report 2026

Other debt investment

Long-term account receivable

Long-term equity investment 325.34

Investment in other equity instrument

Other non-current financial assets

Investment real estate

Fix assets 3665394.79 2792361.64

Construction in progress

Productive biological asset

Oil and gas asset

Right-of-use assets 2092339.83 2299304.81

Intangible assets

Including：Data resources

Expense on Research and Development

Including：Data resources

Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 6117522.70 5678263.45

Other non-current asset

Total non-current asset 11875257.32 10770255.24

Total assets 482328886.59 478004242.28

Current liabilities:

Short-term loans 18800000.00 23450000.00

Loan from central bank

Capital borrowed

Trading financial liability

Derivative financial liability

Note payable

Account payable 6393219.53 3367256.93

Accounts received in advance

Contract liability 56953.17 67520.83

Selling financial asset of repurchase

Absorbing deposit and interbank deposit

Security trading of agency

Security sales of agency

Wage payable 998086.39 1428188.47

Taxes payable 6760900.11 9443636.36

Other account payable 36787467.45 43263973.18

Including: Interest payable

Dividend payable

Commission charge and commission

payable

Reinsurance payable

Liability held for sale

Non-current liabilities due within one

1472527.221432886.46

year

Other current liabilities 19189.72 8777.82

Total current liabilities 71288343.59 82462240.05

35Semi-Annual Report 2026

Non-current liabilities:

Insurance contract reserve

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 938451.88 1662092.35

Long-term account payable

Long-term wages payable

Accrual liability 446600.00

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 1385051.88 1662092.35

Total liabilities 72673395.47 84124332.40

Owner’s equity:

Share capital 689184933.00 689184933.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 797709204.77 797709204.77

Less: Inventory shares

Other comprehensive income -1402598.96 -630231.12

Reasonable reserve

Surplus public reserve 32673227.01 32673227.01

Provision of general risk

Retained profit -1124093980.92 -1134676946.45

Total owner’ s equity attributable to

384260187.21

parent company 394070784.90

Minority interests 15584706.22 9619722.67

Total owner’ s equity 409655491.12 393879909.88

Total liabilities and owner’ s equity 482328886.59 478004242.28

Legal Representative: Wang Shenghong

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Tan Ningjie

2. Balance Sheet of Parent Company

I n RMB

Item 2026-6-30 2026-1-1

Current assets:

Monetary fund 14536510.37 51969396.29

Trading financial assets

Derivative financial assets

Note receivable

Account receivable 86868227.53 77351682.63

Receivable financing

Accounts paid in advance 167862.35 60726.93

Other account receivable 30872305.84 47383281.34

36Semi-Annual Report 2026

Including: Interest receivable

Dividend receivable

Inventory 95759444.84 86834671.79

Including：Data resources

Contractual assets

Assets held for sale

Non-current asset due within one year

Other current assets 551843.05

Total current assets 228756193.98 263599758.98

Non-current assets:

Debt investment

Other debt investment

Long-term account receivable

Long-term equity investment 208665300.50 147696069.73

Investment in other equity instrument

Other non-current financial assets

Investment real estate

Fix assets 2101277.03 2199853.55

Construction in progress

Productive biological asset

Oil and gas asset

Right-of-use assets 713422.48 903638.19

Intangible assets

Including：Data resources

Expense on Research and Development

Including：Data resources

Goodwill

Long-term expenses to be apportioned

Deferred income tax asset 5376142.22 5128532.35

Other non-current asset

Total non-current asset 216856142.23 155928093.82

Total assets 445612336.21 419527852.80

Current liabilities:

Short-term loans 18800000.00 18800000.00

Trading financial liability

Derivative financial liability

Note payable

Account payable 717093.23 320838.71

Accounts received in advance

Contract liability 10518.03

Wage payable 353364.61 439896.05

Taxes payable 22838.30 5563506.55

Other account payable 66016091.76 34529910.61

Including: Interest payable

Dividend payable

Liability held for sale

Non-current liabilities due within one 462509.45 429865.94

37Semi-Annual Report 2026

year

Other current liabilities 1367.35

Total current liabilities 86371897.35 60095903.24

Non-current liabilities:

Long-term loans

Bonds payable

Including: Preferred stock

Perpetual capital securities

Lease liability 271470.97 498627.70

Long-term account payable

Long-term wages payable

Accrual liability

Deferred income

Deferred income tax liabilities

Other non-current liabilities

Total non-current liabilities 271470.97 498627.70

Total liabilities 86643368.32 60594530.94

Owner’s equity:

Share capital 689184933.00 689184933.00

Other equity instrument

Including: Preferred stock

Perpetual capital securities

Capital public reserve 809077277.12 809077277.12

Less: Inventory shares

Other comprehensive income

Reasonable reserve

Surplus public reserve 32673227.01 32673227.01

Retained profit -1171966469.24 -1172002115.27

Total owner’ s equity 358968967.89 358933321.86

Total liabilities and owner’ s equity 445612336.21 419527852.80

3. Consolidated Profit Statement

In RMB

Item Semi-annual of 2026 Semi-annual of 2025

I. Total operation revenue 300383869.76 319943616.63

Including: Operation revenue 300383869.76 319943616.63

Interest income

Insurance gained

Commission charge and commission income

II. Total operation cost 287086792.61 296194628.18

Including: Operation cost 277463503.07 285089133.54

Interest expense

Commission charge and commission expense

Cash surrender value

Net amount of expense of compensation

Net amount of withdrawal of insurance contract

reserve

Bonus expense of guarantee slip

Reinsurance expense

38Semi-Annual Report 2026

Tax and surcharge 253038.69 249823.72

Sales expenses 3707350.02 3955043.06

Administration expenses 4684735.39 6158206.48

R&D expenses 456598.03 484358.77

Finance expenses 521567.41 258062.61

Including: Interest expenses 515715.81 176043.87

Interest income 8997.84 5679.08

Add: Other income

Investment income (Loss is listed with “-”) -5682.12

Including: Investment income on affiliated company

and joint venture

The termination of income recognition for financial

assets measured by amortized cost

Exchange income (Loss is listed with “-”) 5471.88 -36.52

Net exposure hedging income (Loss is listed with “-”)

Income from change of fair value (Loss is listed with

“-”)

Loss of credit impairment (Loss is listed with “-”) 478629.07 -606085.62

Impairment loss on assets(Loss is listed with “-”) -2716552.97

Income from assets disposal (Loss is listed with “-”)

III. Operation profit (Loss is listed with “-”) 11058943.01 23142866.31

Add: Non-operating income 3297041.21 840630.92

Less: Non-operating expense 461655.26 1763.71

IV. Total profit (Loss is listed with “-”) 13894328.96 23981733.52

Less: Income tax expenses 2897828.97 5056533.83

V. Net profit (Net loss is listed with “-”) 10996499.99 18925199.69

(i) Classify by business continuity

1.Continuous operating net profit (net loss listed with

10996499.9918925199.69‘-”)

2.Termination of net profit (net loss listed with ‘-”)

(ii) Classify by ownership

1.Net profit attributable to shareholders of parent

10582965.5318570777.64company (net loss listed with ‘-”)

2.Minority shareholders’ gains and losses (net loss

413534.46354422.05listed with ‘-”)

VI. Net other comprehensive income after taxation -772367.84 -434799.12

Net other comprehensive income attributable to

-772367.84-434799.12

owners of parent company after taxation

(i) Other comprehensive income items which will not

be reclassified subsequently to profit of loss

1.Changes of the defined benefit plans that re-

measured

2.Other comprehensive income under equity method

that cannot be transfer to gain/loss

3.Change of fair value of investment in other equity

instrument

4.Fair value change of enterprise's credit risk

5. Other

(ii) Other comprehensive income items which will be

-772367.84-434799.12

reclassified subsequently to profit or loss

1.Other comprehensive income under equity method

that can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt

39Semi-Annual Report 2026

investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of

-772367.84-434799.12

foreign currency financial statements

7.Other

Net other comprehensive income attributable to

minority shareholders after taxation

VII. Total comprehensive income 10224132.15 18490400.57

Total comprehensive income attributable to owners of

9810597.6918135978.52

parent Company

Total comprehensive income attributable to minority

413534.46354422.05

shareholders

VIII. Earnings per share:

(i)Basic EPS 0.0154 0.0269

(ii)Diluted EPS 0.0154 0.0269

As for the enterprise combined under the same control net profit of 0.00Yuan achieved by the merged party

before combination while 0.00 Yuan achieved last period.Legal Representative: Wang Shenghong

Person in charge of Accounting Works: Sun Longlong

Person in charge of Accounting Institution: Tan Ningjie

4. Profit Statement of Parent Company

In RMB

Item Semi-annual of2026 Semi-annual of2025

I. Operation revenue 90983524.27 154121043.85

Less: Operation cost 87277944.38 140923708.46

Tax and surcharge 9345.07 122000.73

Sales expenses 1058378.06 171516.00

Administration expenses 2952213.97 3477287.62

R&D expenses 194554.02 186604.92

Finance expenses 422462.91 167981.11

Including: Interest expenses 419259.07 165003.87

Interest income 3151.17 3111.42

Add: Other income

Investment income (Loss is listed with “-”) 10681.00

Including: Investment income on affiliated company and

joint venture

The termination of income recognition for financial

assets measured by amortized cost(Loss is listed with “-”)

Net exposure hedging income (Loss is listed with “-”)

Income from change of fair value (Loss is listed with “-”)

Loss of credit impairment (Loss is listed with “-”) 282331.12 -726670.38

Impairment loss on assets(Loss is listed with “-”) -1277068.10

Income from assets disposal (Loss is listed with “-”)

II. Operation profit(Loss is listed with “-”) -1915430.12 8345274.63

Add: Non-operating income 1966432.00 775487.01

Less: Non-operating expense 2041.34 1079.13

III. Total profit (Total losses are listed with “-”) 48960.54 9119682.51

Less: Income tax expenses 13314.51 2069212.65

40Semi-Annual Report 2026

IV. Net profit (Net loss is listed with “-”) 35646.03 7050469.86

(i)Continuous operating net profit (net loss listed with

35646.037050469.86‘-”)(ii)Termination of net profit (net loss listed with ‘-”)

V. Net other comprehensive income after taxation

(i) Other comprehensive income items which will not be

reclassified subsequently to profit of loss

1.Changes of the defined benefit plans that re-measured

2.Other comprehensive income under equity method that

cannot be transfer to gain/loss

3.Change of fair value of investment in other equity

instrument

4.Fair value change of enterprise's credit risk

5. Other

(ii) Other comprehensive income items which will be

reclassified subsequently to profit or loss

1.Other comprehensive income under equity method that

can transfer to gain/loss

2.Change of fair value of other debt investment

3.Amount of financial assets re-classify to other

comprehensive income

4.Credit impairment provision for other debt investment

5.Cash flow hedging reserve

6.Translation differences arising on translation of foreign

currency financial statements

7.Other

VI. Total comprehensive income 35646.03 7050469.86

VII. Earnings per share:

(i)Basic EPS

(ii)Diluted EPS

5. Consolidated Cash Flow Statement

In RMB

Item Semi-annual of2026 Semi-annual of2025

I. Cash flows arising from operating

activities:

Cash received from selling commodities

266367913.53453006079.49

and providing labor services

Net increase of customer deposit and

interbank deposit

Net increase of loan from central bank

Net increase of capital borrowed from

other financial institution

Cash received from original insurance

contract fee

Net cash received from reinsurance

business

Net increase of insured savings and

investment

Cash received from interest commission

charge and commission

Net increase of capital borrowed

Net increase of capital from repurchase

business

Net cash received by agents in sale and

purchase of securities

Write-back of tax received

Other cash received concerning 3359478.51 21041416.67

41Semi-Annual Report 2026

operating activities

Subtotal of cash in-flow arising from

269727392.04474047496.16

operation activity

Cash paid for purchasing commodities

266654317.41489626365.63

and receiving labor service

Net increase of customer loans and

advances

Net increase of deposits in central bank

and interbank

Cash paid for original insurance contract

compensation

Net increase of capital lent

Cash paid for interest handling charge

and commission

Cash paid for bonus of guarantee slip

Cash paid to/for staff 5586710.50 5325697.91

Taxes paid 8197654.50 6578622.20

Other cash paid concerning operating

13771386.4511020232.91

activities

Subtotal of cash out-flow arising from

294210068.86512550918.65

operation activity

Net cash flow arising from operating

-24482676.82-38503422.49

activities

II. Cash flows arising from investing

activities:

Cash received from recovering

325.34

investment

Cash received from investment

income

Net cash received from disposal of

fixed intangible and other long-term

assets

Net cash received from disposal of

subsidiaries and other units

Other cash received concerning investing

activities

Subtotal of cash in-flow arising from

325.34

investment activity

Cash paid for purchasing fixed

1055579.8010358.00

intangible and other long-term assets

Cash paid for investment

Net increase of mortgaged loans

Net cash received from subsidiaries

and other units obtained

Other cash paid concerning investing

16363.12

activities

Subtotal of cash out-flow arising from

1071942.9210358.00

investment activity

Net cash flow arising from investment

-1071617.58-10358.00

activities

III. Cash flows arising from financing

activities:

Cash received from absorbing

14700000.00

investment

Including: Cash received from

absorbing minority shareholders’ 14700000.00

investment by subsidiaries

Cash received from loans 10000000.00 15000000.00

Other cash received concerning

18154754.41

financing activities

Subtotal of cash in-flow arising from

24700000.0033154754.41

financing activity

42Semi-Annual Report 2026

Cash paid for settling debts 14650000.00 650000.00

Cash paid for dividend and profit

467497.75176043.87

distributing or interest paying

Including: Dividend and profit of

minority shareholder paid by subsidiaries

Other cash paid concerning financing

9148550.9115025000.00

activities

Subtotal of cash out-flow arising from

24266048.6615851043.87

financing activity

Net cash flow arising from financing

433951.3417303710.54

activities

IV. Influence on cash and cash

equivalents due to fluctuation in 4178.54 -434835.64

exchange rate

V. Net increase of cash and cash

-25116164.52-21644905.59

equivalent

Add: Balance of cash and cash

75474633.6580799494.57

equivalents at the period -begin

VI. Balance of cash and cash equivalents

50358469.1359154588.98

at the period -end

6. Cash Flow Statement of Parent Company

In RMB

Item Semi-annual of2026 Semi-annual of2025

I. Cash flows arising from operating

activities:

Cash received from selling

commodities and providing labor 92350482.69 190591512.21

services

Write-back of tax received

Other cash received concerning

72272776.7135715006.34

operating activities

Subtotal of cash inflow arising from

164623259.40226306518.55

operating activities

Cash paid for purchasing commodities

108010791.88190494579.90

and receiving labor service

Cash paid to/for staff and workers 2269215.51 2193743.44

Taxes paid 4197015.11 2657025.08

Other cash paid concerning operating

26202740.9536625042.59

activities

Subtotal of cash outflow arising from

140679763.45231970391.01

operating activities

Net cash flow arising from operating

23943495.95-5663872.46

activities

II. Cash flows arising from investing

activities:

Cash received from recovering

4630769.23

investment

Cash received from investment

income

Net cash received from disposal of

fixed intangible and other long-term

assets

Net cash received from disposal of

subsidiaries and other units

Other cash received concerning

investing activities

Subtotal of cash inflow from investing

4630769.23

activities

Cash paid for purchasing fixed

intangible and other long-term assets

Cash paid for investment 65600000.00 20700690.00

43Semi-Annual Report 2026

Net cash received from subsidiaries

and other units obtained

Other cash paid concerning investing

activities

Subtotal of cash outflow from investing

65600000.0020700690.00

activities

Net cash flow arising from investment

-60969230.77-20700690.00

activities

III. Cash flows arising from financing

activities:

Cash received from absorbing

investment

Cash received from loans 10000000.00 10000000.00

Other cash received concerning

18154754.41

financing activities

Subtotal of cash inflow from financing

10000000.0028154754.41

activities

Cash paid for settling debts 10000000.00 600000.00

Cash paid for dividend and profit

407151.10165003.87

distributing or interest paying

Other cash paid concerning financing

activities

Subtotal of cash outflow from financing

10407151.10765003.87

activities

Net cash flow arising from financing

-407151.1027389750.54

activities

IV. Influence on cash and cash

equivalents due to fluctuation in

exchange rate

V. Net increase of cash and cash

-37432885.921025188.08

equivalents

Add: Balance of cash and cash

51969396.2943100182.78

equivalents at the period -begin

VI. Balance of cash and cash equivalents

14536510.3744125370.86

at the period -end

7. Statement of Changes in Owners’ Equity (Consolidated)

Current Amount

In RMB

Semi-annual of 2026

Owners’ equity attributable to the parent Company

Other equity

instrument

Les Pro

Per Other s: Rea visi O Minori

Item Sha compr Surplu Total pet Capital Inv sona on t ty

re OPre ual ehensi s Retained Subtota

owner’

t public ent ble of h

interes

capi ferr cap ve public profit l

s equity

reserve ory rese gen e ts

tal hed ital incom reserve

e sha rve eral r

sto sec e

r res risk

ck urit

ies

I. The 689

ending 18 79770 - 32673 - 38426 39387

balance 9619

499204.76302227.01134670187.29909.8

of the 722.67

previou 33. 7 31.12 1 6946.45 1 8

s year 00

Add:

Change

s of

accoun

44Semi-Annual Report 2026

ting

policy

Error

correcti

on of

the last

period

Other

II. The

beginni 689

ng 18 79770 - 32673 - 38426 39387

9619

balance 49 9204.7 6302 227.0 113467 0187.2 9909.8

of the 722.67 33. 7 31.12 1 6946.45 1 8

current 00

year

III.Increas

e/

Decrea

se in -

the 105829 98105 5964 15775

7723

period 65.53 97.69 983.55 581.24

(Decre 67.84

ase is

listed

with

“-”)

(i)

Total -

105829981054135310224

compre 7723

hensive 65.53 97.69 4.46 132.15 67.84

income

(ii)

Owner

s’

devote 5551 55514

d and 449.09 49.09

decreas

ed

capital

1.Com

mon

shares

555155514

investe

d by 449.09 49.09

shareh

olders

2.

Capital

investe

d by

holders

of

other

equity

instrum

ents

3.

Amoun

t

reckon

ed into

owners

equity

with

share-

45Semi-Annual Report 2026

based

payme

nt

4.

Other

(iii)

Profit

distribu

tion

1.

Withdr

awal of

surplus

reserve

s

2.

Withdr

awal of

general

risk

provisi

ons

3.

Distrib

ution

for

owners

(or

shareh

olders)

4.

Other

(iv)

Carryin

g

forwar

d

internal

owners

’ equity

1.

Capital

reserve

s

conver

sed to

capital

(share

capital)

2.

Surplus

reserve

s

conver

sed to

capital

(share

capital)

3.

Remed

ying

loss

with

surplus

reserve

4.

Carry-

46Semi-Annual Report 2026

over

retaine

d

earning

s from

the

defined

benefit

plans

5.

Carry-

over

retaine

d

earning

s from

other

compre

hensive

income

6.

Other

(v)

Reason

able

reserve

1.

Withdr

awal in

the

report

period

2.

Usage

in the

report

period

(vi)

Others

IV. 689

Balanc -18 79770 32673 - 39407 15584 40965

e at the 1402

499204.7227.01124090784.9706.25491.1

end of 598.9

the 33. 7 1 3980.92 0 2 2 6

period 00

Amount of the previous period

In RMB

Semi-annual of2025

Owners’ equity attributable to the parent Company

Other equity

instrument

Les Pro

Per Other Capita s: Reas Surpl visi Minor Total

Item petu comprl Inve onab us on Ot ity owner’

Share Pref al ehensi Retaine Subtot

Ot public ntor le public of he

intere s

capital erre capi ve d profit al reserv y reser reserv gen r sts equity he

d tal incom

r e shar ve e eral

stoc sec e es risk

k uriti

es

I. The -

ending 68918 79770 3267 34376 2437 36813

11758

balanc 4933. 9204. 3227. 1246. 7913. 9160.e of 06118.00 77 01 16 97 13

the 62

47Semi-Annual Report 2026

previo

us

year

Add:

Chang

es of

accou

nting

policy

Error

correct

ion of

the

last

period

Other

II. The

beginn

ing -68918 79770 3267 34376 2437 36813

balanc 11758

4933.9204.3227.1246.7913.9160.

e of 06118.the 00 77 01 16 97 13 62

curren

t year

III.Increa

se/

Decre

ase in -- 18135

the 18570 1467 3465

43479978.5

period 777.64 0577. 400.57

(Decre 9.12 2 95

ase is

listed

with

“-”)

(i)

Total

compr - 18135 18490

185703544

ehensi 43479 978.5 400.5

ve 777.64 22.05 9.12 2 7

incom

e

(ii)

Owner

s’ - -

devote 1502 15025

d and 5000. 000.0

decrea 00 0

sed

capital

1.Com

mon - -

shares

150215025

invest

ed by 5000. 000.0

shareh 00 0

olders

2.

Capita

l

invest

ed by

holder

s of

other

48Semi-Annual Report 2026

equity

instru

ments

3.

Amou

nt

reckon

ed into

owner

s

equity

with

share-

based

payme

nt

4.

Other

(iii)

Profit

distrib

ution

1.

Withdr

awal

of

surplu

s

reserv

es

2.

Withdr

awal

of

genera

l risk

provisi

ons

3.

Distrib

ution

for

owner

s (or

shareh

olders)

4.

Other

(iv)

Carryi

ng

forwar

d

interna

l

owner

s’

equity

1.

Capita

l

reserv

es

conver

sed to

capital

(share

49Semi-Annual Report 2026

capital

)

2.

Surplu

s

reserv

es

conver

sed to

capital

(share

capital

)

3.

Reme

dying

loss

with

surplu

s

reserv

e

4.

Carry-

over

retaine

d

earnin

gs

from

the

define

d

benefit

plans

5.

Carry-

over

retaine

d

earnin

gs

from

other

compr

ehensi

ve

incom

e

6.

Other

(v)

Reaso

nable

reserv

e

1.

Withd

rawal

in the

report

period

2.

Usage

in the

report

period

50Semi-Annual Report 2026

(vi)

Others

IV.Balanc -

e at 68918 79770 - 3267 36189 9707 37160

11572

the 4933. 9204. 43479 3227. 7224. 336.0 4560.end of 35340.00 77 9.12 01 68 2 70

the 98

period

8. Statement of Changes in Owners’ Equity (Parent Company)

Current Amount

In RMB

Semi-annual of 2026

Other equity

instrument

Less:

Perpe Other

Item Capital Inven Reaso Surplus Total Share tual compreh Retained Otpublic tory nable public owner’ s

capital Prefe capit Ot ensive profit her reserve share reserve reserve equity

rred al her income s

stock secur

ities

I. The

ending -

balance 689184 809077 326732 358933

1172002

of the 933.00 277.12 27.01 321.86

previous 115.27

year

Add:

Changes

of

accounti

ng policy

Erro

r

correctio

n of the

last

period

Other

II. The

beginnin -

g balance 689184 809077 326732 358933

1172002

of the 933.00 277.12 27.01 321.86

current 115.27

year

III.Increase/

Decrease

in the 35646.0

35646.03

period 3

(Decreas

e is listed

with “-”)

(i) Total

compreh 35646.0

35646.03

ensive 3

income

(ii)

Owners’

devoted

51Semi-Annual Report 2026

and

decrease

d capital

1.Comm

on shares

invested

by

sharehol

ders

2.

Capital

invested

by

holders

of other

equity

instrume

nts

3.

Amount

reckoned

into

owners

equity

with

share-

based

payment

4. Other

(iii)

Profit

distributi

on

1.

Withdra

wal of

surplus

reserves

2.

Distribut

ion for

owners

(or

sharehol

ders)

3. Other

(iv)

Carrying

forward

internal

owners’

equity

1.

Capital

reserves

converse

d to

capital

(share

capital)

2.

Surplus

reserves

converse

d to

capital

52Semi-Annual Report 2026

(share

capital)

3.

Remedyi

ng loss

with

surplus

reserve

4. Carry-

over

retained

earnings

from the

defined

benefit

plans

5. Carry-

over

retained

earnings

from

other

compreh

ensive

income

6. Other

(v)

Reasona

ble

reserve

1.

Withdra

wal in

the

report

period

2. Usage

in the

report

period

(vi)

Others

IV.Balance -

at the 689184 809077 326732 358968

1171966

end of 933.00 277.12 27.01 967.89

the 469.24

period

Amount of the previous period

In RMB

Semi-annual of2025

Other equity

instrument

Less:

Perp Other Reaso

Item Capital Inven Surplus Total Share etual compreh nable Retained Otpublic tory public owner’ s

capital Prefe capit Ot ensive reserv profit her reserve share reserve equity

rred al her income e s

stock secur

ities

I. The -

68918480907732673338735

ending 1192199

balance 933.00 277.12 227.01 784.27 652.86

53Semi-Annual Report 2026

of the

previous

year

Add:

Changes

of

accounti

ng

policy

Error

correctio

n of the

last

period

Other

II. The

beginnin

g -

68918480907732673338735

balance 1192199

of the 933.00 277.12 227.01 784.27 652.86

current

year

III.Increase

/

Decreas

e in the

7050469705046

period

(Decreas .86 9.86

e is

listed

with

“-”)

(i) Total

compreh 7050469 705046

ensive .86 9.86

income

(ii)

Owners’

devoted

and

decrease

d capital

1.Comm

on

shares

invested

by

sharehol

ders

2.

Capital

invested

by

holders

of other

equity

instrume

nts

3.

Amount

reckone

d into

owners

equity

with

54Semi-Annual Report 2026

share-

based

payment

4. Other

(iii)

Profit

distribut

ion

1.

Withdra

wal of

surplus

reserves

2.

Distribut

ion for

owners

(or

sharehol

ders)

3. Other

(iv)

Carrying

forward

internal

owners’

equity

1.

Capital

reserves

converse

d to

capital

(share

capital)

2.

Surplus

reserves

converse

d to

capital

(share

capital)

3.

Remedy

ing loss

with

surplus

reserve

4.

Carry-

over

retained

earnings

from the

defined

benefit

plans

5.

Carry-

over

retained

earnings

from

other

compreh

55Semi-Annual Report 2026

ensive

income

6. Other

(v)

Reasona

ble

reserve

1.

Withdra

wal in

the

report

period

2. Usage

in the

report

period

(vi)

Others

IV.Balance -

at the 689184 809077 32673 345786

1185149

end of 933.00 277.12 227.01 254.13

the 183.00

period

III. Basic information

1. Company Profile

According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen

Shenzhen China Bicycle Company (Holdings) Co. Ltd. (hereinafter referred to as the CBC) was reincorporated as

the company limited by shares in November 1991. On 28 December 1991 upon the Approval Document

SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China the

Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689184933.00 Yuan.Legal representative: Wang Shenghong

Location: No. 3008 Buxin Road Luohu District Shenzhen

Office address: 8/F Shuibei Jinzuo Building No.89 Beili North Road Cuizhu Street Luohu District Shenzhen

Certificate for Uniform Social Credit Code: 914403006188304524。

2. Business nature and main operation activities

Main business activities: Research & development of the bicycles electric bicycles electric motorcycles

motorcycles electric tricycles electric four-wheeler children's bicycles exercise bikes sports equipment

mechanical products toys electric toys electronic products new energy equipment and storage equipment (lithium

batteries batteries etc.) household appliances and spare parts and electronic components; wholesale retail import

and export and related supporting business of above-mentioned products (excluding commodities subject to state

trade management handling the application according to the relevant national regulations for commodities

involving quotas license management and other special provisions and management); fine chemical products

(excluding dangerous goods) wholesale and retail of carbon fiber composite materials; technology development of

computer software transfer of self-developed technological achievements and providing relevant technical

information consultation; own property leasing; property management. (The above projects do not involve special

56Semi-Annual Report 2026

administrative measures for the implementation access of national regulations and those involving restricted

projects and pre-existing administrative licenses must obtain the pre-existing administrative licensing documents

before operation.) Purchase and sale of gold products platinum jewelry palladium jewelry K-gold jewelry silver

jewelry inlaid jewelry jewelry jade ware gem-and-jade products clocks and watches precious metal materials

diamonds jadeite crafts (except ivory and its products) calligraphy and painting collection (except for antiques

cultural relics and items prohibited by national laws and administrative regulations).Main products or services currently offered are: Gold jewelry EMMELLE bicycles and electrical bicycles lithium

battery material.

3.Actual controller of the Company

Actual controller of the Company is Wang Shenghong The controlling shareholder is Wansheng Industrial Holding

(Shenzhen) Co. Ltd.who held or controlled 20% shares of the Company.

4. Release of the financial report

The Financial Report was approved to report at the 27th Session of 11th BOD of CBC on August 21 2026.IV. Compilation Basis of Financial Statement

1. Compilation Basis

On the basis of going concern the Company recognizes and measures according to the actual transactions and

events the Accounting Standards for Business Enterprises-Basic Standards and other specific accounting standards

application guidelines standard interpretation and other relevant provisions (hereinafter referred to as the

Accounting Standards for Business Enterprises) and on this basis it compiles the financial statements in

combination with the provisions of the No.15 Rules on Information Disclosure and Compilation of Companies

Offering Securities to the Public - General Provisions on Financial Reports (revised in 2023) issued by China

Securities Regulatory Commission.

2. Going concern

The Company has the ability to continue to operate for at least 12 months from the end of this reporting period

and there is no major issue affecting its ability to continue to operate.V. Main accounting policy and Accounting Estimate

Tips for specific accounting policy and estimate:

None

1. Declaration on compliance with accounting standards for business enterprise

The financial statements prepared by the Company meet the requirements of the Accounting Standards for

Business Enterprises and truly and completely reflect the Company's financial status operating results changes in

owners' equity and cash flow and other relevant information.

57Semi-Annual Report 2026

2. Accounting period

Calendar year is the accounting period for the CBC which is starting from 1 January to 31 December.

3. Business cycles

The Company takes 12 months as a business cycle.

4. Book-keeping currency

The CBC takes RMB as the standard currency for bookkeeping.

5.Determination method and selection basis of importance standard

□Applicable □Not applicable

Item Criterion of importance

Commercial acceptance bills receivable accounts receivable

Material receivables with bad debt provision accrued

and other receivables with a single amount exceeding RMB 5

individually

million (inclusive)

Material amount recovered or reversed from bad debt provision

The single amount exceeds RMB 5 million (inclusive)

of receivables in the current period

Write-off of Important material receivables in the current

The single amount exceeds RMB 5 million (inclusive)

period

Material prepayments with an age of more than one year The single amount exceeds RMB 5 million (inclusive)

Material accounts payable with an age of over 1 year The single amount exceeds RMB 5 million (inclusive)

Material contractual liabilities with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)

Material other payables with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)

Construction in progress with a single amount exceeding RMB

Material construction in progress

5 million (inclusive)

Commitments involving an amount of more than 10% of the

Material commitments

total profit and more than RMB 5 million (inclusive)

Contingencies involving an amount of more than 10% of the

Material contingencies

total profit and more than RMB 5 million (inclusive)

Matters after the balance sheet date involving an amount

Material matters after the balance sheet date exceeding 10% of the total profit and exceeding RMB 5 million

(inclusive)

The total assets of non-wholly-owned subsidiaries shall not be

less than 10% of the total assets in the consolidated statement

Material non-wholly-owned subsidiaries of the Group or the operating income shall not be less than

10% of the Group's operating income or the net profit shall not

be less than 10% of the absolute value of the Group's net profit.

6. Accounting treatment for business combinations under the same control and those not under the same

control

1. Business merger under the same control: The assets and liabilities acquired by the Company in business merger

are measured according to the book value of the assets and liabilities of the merged party (including the goodwill

formed by the acquisition of the merged party by the ultimate controlling party) in the consolidated financial

statements of the ultimate controlling party on the date of merger. For the difference between the book value of the

net assets obtained in the merger and the book value of the merger consideration paid (or the total face value of the

issued shares) adjust the capital premium or share capital premium in the capital reserve. If the capital premium or

share capital premium in the capital reserve is insufficient to offset adjust the retained income.

58Semi-Annual Report 2026

2. Business merger not under the same control: The assets paid liabilities incurred or assumed by the Company as

the consideration for business merger are measured at fair value on the date of purchase and the difference between

fair value and book value is included in the current profits and losses. The Company recognizes the difference

between the merger cost and the fair value share of the net identifiable assets of the acquiree obtained in the merger

as goodwill; For the difference between the merger cost and the fair value share of the net identifiable assets of the

acquiree (which is larger than the merger cost) it reviews the fair values of the assets and liabilities obtained in the

merger the non-cash assets as the merger consideration or the equity securities issued and the review results show

that the determination of the fair values of the determined identifiable assets and liabilities is appropriate. The

difference between the business merger cost and the fair value share of the net identifiable assets of the acquiree

(which is larger than the business merger cost) is included in the non-operating income in the current merger period.The business merger not under the same control is realized step by step through multiple transactions and the

merger cost is the sum of the consideration paid on the date of purchase and the fair value of the equity of the

acquiree held before the date of purchase; The equity of the purchased party held before the date of purchase shall

be re-measured according to the fair value on the date of purchase and the difference between the fair value and its

book value shall be included in the current investment income. Other comprehensive income of the long-term equity

investment of the acquiree held before the date of purchase under the accounting by equity method shall be subject

to accounting treatment on the same basis as the direct disposal of relevant assets or liabilities by the investee.Changes in other shareholders' equity except net profits and losses other comprehensive income and profit

distribution shall be converted into current profits and losses on the date of purchase. For other equity instrument

investments of the acquiree held before the date of purchase the changes in fair value of the equity instrument

investments accumulated in other comprehensive income before the date of purchase are transferred to retained

profits and losses.

3. Disposal of related expenses in business merger: Intermediary expenses such as audit legal services evaluation

and consultation and other related management expenses incurred for business merger are included in current profits

and losses when incurred; The transaction costs of equity securities or debt securities issued as the merger

consideration are included in the initial recognition amount of equity securities or debt securities.

7. Criteria for control and preparation method of consolidated financial statements

1. Criteria for control and preparation scope of consolidated statements

Control means that the investor has the power over the investee enjoys variable returns by participating in the

related activities of the investee and has the ability to influence the amount of returns by using the power over the

investee. As for whether to control the investee the Company's criterion factors include:

(1) Have the power over the investee and the ability to lead the related activities of the investee;

(2) Be entitled to variable returns to the investee;

(3) Have the ability to use the power over the investee to influence its return amount.

59Semi-Annual Report 2026

Unless there is conclusive evidence that the Company cannot lead the related activities of the investee the

Company has the power over the investee if:

(1) It holds more than half of the voting rights of the investee;

(2) It holds half or less of the voting rights of the investee but controls more than half of the voting rights

through agreements with other voting rights holders.If the Company holds half or less of the voting rights of the investee but after comprehensive consideration

of the following facts and circumstances it is judged that the voting rights held are sufficient to lead the relevant

activities of the investee it is deemed that the Company has power over the investee:

(1) The size of the voting rights held relative to the voting rights held by other investors and the degree of

dispersion of the voting rights held by other investors;

(2) The potential voting rights of the investee held by other investors such as convertible corporate bonds and

executable warrants;

(3) Other contractual rights;

(4) Other relevant facts and circumstances such as the past voting rights of the investee.

The Company evaluates the variability of returns based on the nature of contractual arrangements rather than

the legal form of returns.If the Company exercises the decision-making power as the main responsible person or if other parties have

the decision-making power and other parties exercise the decision-making power as the agents of the Company it

shows that the Company controls the investee.Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved in the

definition of control the Company will re-evaluate.The scope of consolidation of the consolidated financial statements is determined on the basis of control

including not only subsidiaries determined by voting rights (or similar rights) themselves or in combination with

other arrangements but also structured entities determined by one or more contractual arrangements.

2. Merger procedure

The consolidated financial statements are based on the financial statements of the Company and its

subsidiaries and are prepared according to other relevant information.The Company unifies the accounting policies and accounting periods adopted by its subsidiaries so that the

accounting policies and accounting periods adopted by its subsidiaries are consistent with those adopted by the

Company. When preparing consolidated financial statements it follows the principle of materiality to offset the

internal exchanges internal transactions and equity investment projects between the parent company and the

subsidiaries and between the subsidiaries.The equity and profit and loss attributable to minority shareholders of the subsidiaries are listed separately

under the item of the owners' equity in the consolidated balance sheet and under the item of net profit in the

consolidated income statement. The current loss shared by minority shareholders of a subsidiary exceeds the balance

60Semi-Annual Report 2026

formed by minority shareholders' share in the initial owners' equity of the subsidiary thus offsetting minority

shareholders' equity.

(1) Increase of subsidiaries and businesses

During the reporting period when preparing the consolidated balance sheet due to the business merger under

the same control and the subsidiaries and businesses increased the opening balance of the consolidated balance

sheet is adjusted; When preparing the income statement the income expenses and profits of the subsidiary and

business merger from the beginning of the current period to the end of the reporting period are included in the

consolidated income statement; When the cash flow statement is consolidated the cash flows of the subsidiary and

the business combination from the beginning of the current period to the end of the reporting period are included in

the consolidated cash flow statement; At the same time the relevant items of the comparative statements shall be

adjusted as if the merged reporting entity had existed since the ultimate controlling party started to control.During the reporting period when preparing the consolidated balance sheet for subsidiaries and businesses

increased due to business merger not under the same control or other means the opening balance of the consolidated

balance sheet will not be adjusted. When preparing the income statement the income expenses and profits of the

subsidiary and the business from the date of purchase to the end of the reporting period shall be included in the

consolidated income statement. When preparing the cash flow statement the cash flow of the subsidiary from the

date of purchase to the end of the reporting period shall be included in the consolidated cash flow statement.The Company prepares consolidated financial statements based on the amount of identifiable assets liabilities

and contingent liabilities determined on the basis of the fair value on the date of purchase reflected in the individual

financial statements of subsidiaries at the current balance sheet date. The difference between the merger cost and

the fair value share of the net identifiable assets of the acquiree obtained in the merger shall be recognized as

goodwill. The difference between the merger cost and the fair value share of the net identifiable assets of the

acquiree obtained in the merger shall be included in the current profits and losses after review.If the business merger not under the same control is realized step by step through multiple transactions in the

consolidated financial statements the equity of the acquiree held before the date of purchase shall be re-measured

according to the fair value of the equity on the date of purchase and the difference between the fair value and its

book value shall be included in the current investment income. Other comprehensive income of the long-term equity

investment of the acquiree held before the date of purchase under the accounting by equity method shall be subject

to accounting treatment on the same basis as the direct disposal of relevant assets or liabilities by the investee.Changes in other shareholders' equity except net profits and losses other comprehensive income and profit

distribution shall be converted into current profits and losses on the date of purchase. For other equity instrument

investments of the acquiree held before the date of purchase the changes in fair value of the equity instrument

investments accumulated in other comprehensive income before the date of purchase are transferred to retained

profits and losses.

(2) Disposal of subsidiaries and businesses

61Semi-Annual Report 2026

A. General disposal methods

During the reporting period if the Company disposes of its subsidiaries and businesses the income expenses

and profits of the subsidiaries and businesses from the beginning to the disposal date will be included in the

consolidated income statement; The cash flow of the subsidiaries and businesses from the beginning to the disposal

date will be included in the consolidated cash flow statement.If the Company loses control of its original subsidiaries due to the disposal of some equity investments the

remaining equity shall be re-measured according to its fair value on the date of loss of control in the consolidated

financial statements. The sum of the consideration obtained from the disposal of the equity and the fair value of the

remaining equity minus the difference between the share of the net assets that should be continuously calculated

by the original subsidiary from the date of purchase or the date of merger according to the original shareholding

ratio is included in the current investment income when the control right is lost and the goodwill is also offset.Other comprehensive income related to the original subsidiary's equity investment shall be subject to accounting

treatment on the same basis as the subsidiary's direct disposal of relevant assets or liabilities when it loses control.Shareholders' equity recognized due to changes in other shareholders' equity related to the original subsidiary except

net profit and loss other comprehensive income and profit distribution shall be converted into current profits and

losses when it loses control.B. Dispose of equity step by step until loss of control

If the enterprise disposes of its equity investment in a subsidiary step by step through multiple transactions

until it loses control if the transaction of disposing of its equity investment in a subsidiary until the loss of control

is a package transaction it shall treat each transaction as a transaction of disposing of the subsidiary and loss of

control; However the difference between the price of each disposal before the loss of control and the share of the

subsidiary's net assets corresponding to the disposal investment shall be recognized as other comprehensive income

in the consolidated financial statements and transferred to the current profits and losses when the control is lost.The terms conditions and economic impact of various transactions dealing with equity investment in

subsidiaries meet one or more of the following conditions which usually indicates that multiple transactions shall

be subject to accounting treatment as a package transaction:

(A) These transactions are concluded at the same time or under the consideration of mutual impact;

(B) These transactions as a whole can achieve a complete commercial result;

(C) The occurrence of one transaction depends on the occurrence of at least one other transaction;

(D) A transaction is uneconomical when considered alone but it is economical when considered together

with other transactions.

(3) Purchase of minority shares of the subsidiaries

The Company shall adjust the capital premium or share capital premium in the capital reserve in the

consolidated balance sheet for the difference between the newly acquired long-term equity investment due to the

purchase of minority shares and the share of net identifiable assets that should be continuously calculated by the

62Semi-Annual Report 2026

subsidiaries from the date of purchase (or date of merger) according to the new shareholding ratio. If the capital

premium or share capital premium in the capital reserve is insufficient to offset the retained income shall be adjusted.

(4) Partial disposal of equity investment in subsidiaries without loss of control

For the difference between the disposal price obtained from the partial disposal of the long-term equity

investment in the subsidiary and the share of the net assets of the subsidiary that is continuously calculated from the

date of purchase or the date of merger corresponding to the disposal of the long-term equity investment adjust the

capital premium or share capital premium in the capital reserve in the consolidated balance sheet. If the capital

premium or share capital premium in the capital reserve is insufficient to offset adjust the retained income.

8. Classification of joint venture arrangement and accounting treatment for joint control

A joint venture arrangement refers to an arrangement controlled jointly by two or more participants. Joint

venture arrangements are divided into joint operation and joint ventures.

1. Joint operation refers to the joint venture arrangement in which the Company is entitled to the assets related to

the arrangement and undertakes the liabilities related to the arrangement. The Company recognizes the following

items related to the share of interests in joint operation:

(1) Recognize the assets held separately and recognize the assets held jointly according to their shares;

(2) Recognize the liabilities undertaken separately and recognize the liabilities jointly undertaken according to

their shares;

(3) Recognize the income generated from the sale of its share of joint operation output;

(4) Recognize the income generated by the sale of output in the joint operation according to its share;

(5) Recognize the expenses incurred separately and recognize the expenses incurred in joint operation according

to their shares.

2. Joint venture refers to a joint venture arrangement in which the Company has rights only to the net assets of the

arrangement. The Company shall carry out accounting treatment for the investment of the joint venture in

accordance with the provisions on accounting by equity method for long-term equity investment.

9. Recognition of cash and cash equivalents

When preparing the cash flow statement the Company will recognize the cash on hand and the deposits that

can be used for payment at any time as cash. An investment with short term (usually due within three months from

the date of purchase) strong liquidity easy conversion into known cash and little risk of value change will be

determined as a cash equivalent. Restricted bank deposits will not be regarded as cash and cash equivalents in the

cash flow statement.

10. Foreign currency transaction and financial statement conversion

1. Foreign currency business

63Semi-Annual Report 2026

When foreign currency business occurs the amount of foreign currency is converted into RMB for recording

according to the spot exchange rate on the date of transaction and foreign currency monetary items and foreign

currency non-monetary items are treated in the following ways at the end of the period:

(1) Foreign currency monetary items are converted at the spot exchange rate on the balance sheet date. Exchange

differences arising from the difference between the spot exchange rate on the balance sheet date and the initial

recognition or the spot exchange rate on the previous balance sheet date are included in the current profits and losses.

(2) Foreign currency non-monetary items measured at historical cost are still converted at the spot exchange rate on

the date of transaction and the amount of their recording currency will not be changed.

(3) Foreign currency non-monetary items measured at fair value shall be converted at the spot exchange rate on the

fair value determination date and the resulting exchange gains and losses shall be included in the current profits

and losses or other comprehensive income.

(4) Foreign currency exchange gains and losses except the exchange gains and losses arising from foreign currency

special borrowing related to the purchase construction or production of assets eligible for capitalization are

included in the cost of assets eligible for capitalization before the assets reach the scheduled serviceable or saleable

state and the rest are included in the current profits and losses.

2. Conversion in foreign currency financial statements

(1) Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date;

Except for the "undistributed profit" other items of owners' equity are converted at the spot exchange rate at the

time of occurrence.

(2) The income and expenses in the income statement are converted at the approximate exchange rate of the spot

exchange rate on the date of transaction.

(3) The conversion difference of foreign currency financial statements generated according to the above conversion

is included in other comprehensive income. When disposing of overseas operations the conversion difference of

foreign currency financial statements related to the overseas operations shall be transferred from the owners' equity

to the current profits and losses.

(4) The cash flow statement is converted by the approximate exchange rate of the spot exchange rate on the date of

cash flow occurrence. As a reconciliation item the influence of exchange rate changes on cash is listed separately

in the cash flow statement.

11. Financial instruments

When the Company becomes a party to the financial instrument contract it recognizes a financial asset or

financial liability related to it.

1. Classification recognition basis and measurement method of financial assets

According to the business model of financial assets under management and the contractual cash flow

characteristics of financial assets the Company divides financial assets into three categories: financial assets

measured by amortized cost financial assets measured by fair value with its changes included in other

64Semi-Annual Report 2026

comprehensive income and financial assets measured by fair value with its changes included in current profits and

losses.Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value

with its changes included in the current profits and losses relevant transaction costs are directly included in the

current profits and losses; For financial assets of other types relevant transaction costs are included in the initial

recognition amount. If the accounts receivable initially recognized by the Company do not contain significant

financing components as defined in the Accounting Standards for Business Enterprises No.14-Income or the

financing components in contracts with a duration of no more than one year are not considered according to the

provisions of Accounting Standards for Business Enterprises No.14-Income the initial measurement shall be made

according to the transaction price of the consideration expected to be charged.

(1) Financial assets measured in amortized cost

The Company's business model of managing such financial assets is to collect contract cash flow and the cash

flow generated on a specific date is only for the payment of principal and interest based on the unpaid principal

amount. For such financial assets the Company adopts the effective interest rate method for subsequent

measurement according to amortized cost and the gains or losses arising from amortization or impairment are

included in the current profits and losses.

(2) Financial assets measured at fair value with changes included in other comprehensive income

The Company's business model of managing such financial assets is to collect contract cash flow and sell it

and the cash flow generated on a specific date is only for the payment of principal and interest based on the unpaid

principal amount. Such financial assets are measured at fair value with changes included in other comprehensive

income but impairment losses or gains exchange gains and losses and interest income calculated according to the

effective interest rate method are included in current profits and losses.For the investment in non-transactional equity instruments the Company can irrevocably designate it as a

financial asset measured at fair value with changes included in other comprehensive income at the initial recognition.The designation is made on the basis of a single investment and the relevant investment conforms to the definition

of equity instrument from the issuer's point of view. The Company includes the relevant dividend income of such

financial assets in the current profits and losses and the changes in fair value in other comprehensive income. When

the financial asset is derecognized the accumulated gains or losses previously included in other comprehensive

income will be transferred from other comprehensive income to retained income and will not be included in the

current profits and losses.

(3) Financial assets measured at fair value with changes included in the current profits and losses

Except for the above financial assets measured in amortized cost and the financial assets measured at fair

value with changes included in other comprehensive income the Company classifies all other financial assets as

financial assets measured at fair value with changes included in current profits and losses. In addition at the time

of initial recognition in order to eliminate or significantly reduce the accounting mismatch the Company designated

65Semi-Annual Report 2026

some financial assets as the financial assets measured at fair value with changes included in the current profits and

losses. Such financial assets are subsequently measured at fair value with changes in fair value included in current

profits and losses.

2. Classification recognition basis and measurement method of financial liabilities

The Company's financial liabilities are classified into financial liabilities measured at fair value with changes

included in current profits and losses and other financial liabilities at initial recognition. For financial liabilities

measured at fair value with changes included in the current profits and losses the related transaction costs are

directly included in the current profits and losses and the related transaction costs of other financial liabilities are

included in their initial recognition amount.

(1) Financial liabilities measured at fair value with changes included in the current profits and losses

Financial liabilities measured at fair value with changes included in current profits and losses include

transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities

designated as measured at fair value with changes included in current profits and losses.Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently

measured at fair value and changes in fair value are included in current profits and losses except those related to

hedging accounting.For financial liabilities that are designated as being measured at fair value with changes included in current

profits and losses at the time of initial recognition the changes in fair value caused by changes in the Company's

own credit risk are included in other comprehensive income and when the liability is derecognized the accumulated

changes in its fair value caused by changes in its own credit risk included in other comprehensive income are

transferred to retained income. Other changes in fair value are included in current profits and losses. If the

accounting mismatch in profit and loss will be caused or enlarged by handling the impact of the changes in credit

risk of these financial liabilities in the above way the Company will include all the gains or losses of the financial

liabilities (including the amount affected by the changes in the enterprise's credit risk) in the current profits and

losses.

(2) Other financial liabilities

Other financial liabilities except those caused by the transfer of financial assets and financial guarantee

contracts that do not meet the conditions for derecognition or continue to be involved in the transferred financial

assets are classified as financial liabilities measured in amortized cost and subsequently measured in amortized cost.The gains or losses arising from derecognition or amortization are included in the current profits and losses.

3. Methods for determining the fair value of financial assets and financial liabilities

The fair value of financial instruments with an active market shall be determined by the quotation in the active

market. The fair value of financial instruments without active market shall be determined by valuation technology.At the time of valuation the Company adopts the valuation technology that is applicable in the current situation and

supported by sufficient available data and other information selects the input values that are consistent with the

66Semi-Annual Report 2026

characteristics of assets or liabilities considered by market participants in the transaction of relevant assets or

liabilities and gives priority to the relevant observable input values. Unobservable input values can only be used if

the relevant observable input values are unavailable or impracticable.

4. Recognition basis and measurement method for transfer of financial assets

Recognition for transfer of financial assets

Circumstances Recognition results

Almost all risks and rewards in the ownership of financial assets are

transferred The financial assets are derecognized (new

The control of financial assets is given assets/liabilities are recognized)

Almost all risks and up

rewards in the ownership of

The relevant assets and liabilities is recognized

financial assets are neither The control of financial assets is not

according to the extent of continuing involvement in the

transferred nor retained given up

transferred financial assets

Almost all risks and

Continue to recognize the financial assets and recognize the received consideration as financial

rewards in the ownership of

liabilities

financial assets are retained

The Company divides the transfer of financial assets into the overall transfer and partial transfer of financial assets.

(1) If the overall transfer of financial assets meets the conditions for derecognition the difference between the

following two amounts shall be included in the current profits and losses: the book value of the transferred financial

assets on the derecognition date; The sum of the consideration received for the transfer of financial assets and the

cumulative amount of changes in fair value that were originally directly included in other comprehensive income

(the financial assets involved in the transfer are those classified as financial assets measured at fair value with

changes included in other comprehensive income in Article 18 of Accounting Standards for Business Enterprises

No.22-Recognition and Measurement of Financial Instruments).

(2) If a part of the financial assets is transferred and the transferred part as a whole meets the conditions for

derecognition the book value of the whole financial assets before the transfer shall be allocated between the

derecognition part and the continued recognition part (in this case the retained service assets shall be regarded as

part of continued recognition of financial asset) according to their respective relative fair values on the date of

transfer and the difference between the following two amounts shall be included in the current profits and losses:

the book value of the derecognition part on the derecognition date; The sum of the consideration received for the

derecognition part (including all new assets acquired minus all new liabilities assumed) and the corresponding

derecognition amount in the accumulated amount of changes in fair value originally included in other

comprehensive income (the financial assets involved in partial transfer are those classified as financial assets

measured at fair value with changes included in other comprehensive income in Article 18 of Accounting Standards

for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).If the transfer of financial assets does not meet the conditions for derecognition the whole transferred financial

assets shall be continuously recognized and the received consideration shall be recognized as a financial liability.

5. Conditions for derecognition of financial liabilities

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If the current obligations of financial liabilities(or part of them) have been discharged the financial liabilities

(or part of them) shall be derecognized. If the following conditions exist:

(1) If the Company transfers the assets used to pay financial liabilities to an institution or establishes a trust and the

obligation of debt payment still exists it shall not derecognize the financial liabilities.

(2) The Company (the borrower) and the lender sign an agreement to replace the original financial liabilities (or

part of them) by taking on new financial liabilities and the contractual terms are essentially different. The Company

shall derecognize the original financial liabilities (or part of them) and recognize a new financial liability at the

same time.If the financial liabilities (or part of them) are derecognized the Company will record the difference between

the book value and the consideration paid (including the transferred non-cash assets or liabilities) into the current

profits and losses.

6. Impairment of financial assets

(1) Recognition method of impairment provision

The Company conducts impairment accounting treatment on financial assets (including receivables) measured

in amortized cost debt instrument investment and lease receivables measured at fair value with changes included

in other comprehensive income on the basis of expected credit losses and recognizes the loss provisions. In addition

for contract assets loan commitments and financial guarantee contracts impairment provisions are also accrued and

impairment losses are recognized in accordance with the accounting policies described in this section.Expected credit loss refers to the weighted mean of credit loss of financial instruments weighted by the risk

of default. Credit loss refers to the difference between all contracted cash flows that the Company discounted at the

original actual interest rate and all cash flows that it is expected to receive that is the present value of all cash

shortages.Except for the purchased or originated financial assets with credit impairment the Company evaluates whether

the credit risk of relevant financial assets has increased significantly since the initial recognition on each balance

sheet date. If the credit risk has not increased significantly since the initial recognition. it is in the first stage and

the Company will measure the loss provision according to the amount equivalent to the expected credit loss of the

financial asset in the next 12 months; If the credit risk has increased significantly since the initial recognition but

with no credit impairment it is in the second stage and the Company will measure the loss provision according to

the amount equivalent to the expected credit loss of the financial asset during the whole duration; If the financial

asset has suffered credit impairment since its initial recognition it is in the third stage and the Company will

measure the loss provision according to the amount equivalent to the expected credit loss of the financial asset in

the whole duration. When evaluating the expected credit loss the Company considers the reasonable and well-

founded information including forward-looking information about past events current situation and future

economic situation prediction that can be obtained on the balance sheet date without unnecessary extra cost or effort.

68Semi-Annual Report 2026

The expected credit loss in the next 12 months refers to the expected credit loss caused by financial asset

default events that may occur within 12 months after the balance sheet date (if the expected duration of financial

assets is less than 12 months within the expected duration) which is a part of the expected credit loss in the whole

duration.For financial instruments with low credit risk on the balance sheet date the Company assumes that the credit

risk has not increased significantly since the initial recognition and chooses to measure the loss provision according

to the expected credit loss in the next 12 months.For the financial assets in the first and second stages and with low credit risk the Company calculates the

interest income according to the book balance without deducting the impairment provision and the actual interest

rate. For the financial assets in the third stage the interest income shall be calculated according to the book balance

minus the amortized cost and the actual interest rate after the impairment provision has been accrued.

(2) Financial asset with impairment

When the Company anticipates that one or more events that have an adverse effect on the future cash flow of

a financial asset occur the financial asset becomes a financial asset with credit impairment. Evidence of credit

impairment of financial assets includes the following observable information:

A. The issuer or the debtor has major financial difficulties;

B. The debtor has breached the contract such as default or overdue payment of interest or principal;

C. The creditor makes concessions to the debtor that it will not make under any other circumstances due to economic

or contractual considerations related to its financial difficulties;

D. The debtor is likely to go bankrupt or carry out other financial restructuring;

E. The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial

asset;

F. A financial asset is purchased or originated at a large discount which reflects the fact that credit loss has occurred.Credit impairment of financial assets may be caused by the joint action of multiple events not necessarily by

an event that can be identified separately.

(3) Financial assets with credit impairment purchased or originated

For the purchased or originated financial assets with credit impairment the Company only recognizes the

cumulative change of expected credit loss in the whole duration after initial recognition as loss provision on the

balance sheet date. On each balance sheet date the change amount of expected credit loss during the whole duration

is included in the current profits and losses as impairment loss or gain. Even if the expected credit loss determined

on the balance sheet date is less than the amount of the expected credit loss reflected by the estimated cash flow at

the time of initial recognition the favorable change of expected credit loss will be recognized as impairment gain.

(4) Criteria for judging significant increase in credit risk

If the default probability of a financial asset in the estimated duration determined on the balance sheet date is

significantly higher than that in the estimated duration determined at the initial recognition it indicates that the

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credit risk of the financial asset is significantly increased. Except in special circumstances the Company uses the

change of default risk in the next 12 months as a reasonable estimate of the change in default risk in the whole

duration to determine whether the credit risk has increased significantly since the initial recognition.

(5) Method of evaluating the expected credit loss of financial assets

The Company evaluates the expected credit loss of financial assets based on individual and combined items.It individually evaluates the credit risk of financial assets with significantly different credit risks such as:

receivables from related parties; accounts receivable from government agencies and units; and receivables with

obvious signs that the debtor is likely to be unable to fulfill the repayment obligations.Except for financial assets whose credit risks are individually evaluated the Company divides financial assets

into different groups based on common risk characteristics and evaluates the credit risks on the basis of combination.

(6) Accounting treatment method for impairment of financial assets

The Company calculates the expected credit losses of various financial assets on the balance sheet date and

the resulting increase or reversal amount of loss provision is included in the current profits and losses as impairment

losses or gains.If the Company actually suffers from credit losses and the relevant financial assets are determined to be

irrecoverable and approved for write-off the book balance of the financial assets will be directly written down. If

the financial assets written down are recovered later they will be included in the current profits and losses of

recovery as the reversal of impairment losses.

7. Financial guarantee contract

A financial guarantee contract refers to a contract in which the issuer pays a certain amount to the contract

holder who has suffered losses when the debtor fails to repay the debt according to the original or revised terms of

the debt instrument at maturity. The financial guarantee contract shall be measured at fair value upon initial

recognition. For the financial guarantee contract for a financial liability not designated as being measured at fair

value with changes included into the current profits and losses after the initial recognition subsequent measurement

shall be made according to the higher of the expected credit loss provision amount determined on the balance sheet

date and the balance of the initial recognition amount after deducting the accumulated amortization amount

determined according to the income recognition principle.

8. Offset of financial assets and financial liabilities

Financial assets and financial liabilities are listed separately in the balance sheet without mutual offset.However if the following conditions are met at the same time the net amount after mutual offset shall be listed in

the balance sheet:

(1) The Company has the legal right to offset the recognized financial assets and financial liabilities and such legal

right is now enforceable;

(2) The Company plans to settle accounts by netting or realize the financial assets and pay off the financial

liabilities at the same time.

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9. Equity instruments

Equity instruments refer to contracts that can prove that the Company has residual interests in assets after

deducting all liabilities. The issuance (including refinancing) repurchase sale or cancellation of equity instruments

by the Company are treated as changes in equity. The Company does not recognize changes in the fair value of

equity instruments. Transaction costs related to equity transactions are deducted from equity.Various distributions (excluding stock dividends) made by the Company to holders of equity instruments are

used as profit distribution to reduce the owners' equity. The stock dividends distributed do not affect the total owners'

equity.The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen StockExchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

12. Note receivable

The Company measures the loss provision for notes receivable according to the expected credit loss amount

of the whole duration.Except for the notes receivable whose credit risk is evaluated individually the Company divides the notes

receivable into different portfolios based on the credit risk of their acceptors as a common risk characteristic and

calculates the expected credit loss on the basis of the portfolios. The basis for determining the portfolios is as follows:

Portfolio name Basis for determining the portfolio

Management evaluation has low credit risk and the expected credit

Bank acceptance bill

loss is generally not recognized

Commercial acceptance bill Same as "Accounts Receivable" portfolio

The Company individually tests the impairment of the notes receivable with objective evidence and other

notes that are suitable for individual evaluation recognizes the expected credit loss and calculates the individual

impairment provision.

13. Account receivableThe CBC adopts the simplified model of expected credit loss for accounts receivables specified in “AccountingStandards for Business Enterprises No.14 - Revenue” and without containing significant financing components

(including the case that the financing components in contracts that do not exceed one year are not considered

according to the standards) that is always measures their loss provisions according to the amount of expected credit

loss during the entire duration and the resulting increased or reversed amount of the loss provision is included in

the current profit and loss as an impairment loss or gain.Based on common risk characteristics the Company divides accounts receivable into different groups

according to common credit risk characteristics such as customer categories:

Portfolio name Basis for determining the portfolio

Commercial acceptance bills receivable accounts receivable

Individual identification portfolio

and other receivables with significant single amount

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(receivables with an ending balance of more than RMB 5

million (including RMB 5 million)) or accounts receivable with

insignificant individual amount but high risk

Aging portfolio Taking the aging of receivables as the credit risk characteristic

Related-party portfolio receivable Receivables from related parties

(1) Individual identification portfolio: For receivables with an ending balance of more than RMB 5 million

(including RMB 5 million) or accounts receivable with insignificant individual amount but high risk impairment

test shall be conducted separately for each customer. Impairment test shall be conducted separately for accounts

receivable with objective evidence indicating impairment and other accounts receivable applicable to individual

evaluation (such as accounts receivable in dispute with the other party or involving litigation and arbitration;

accounts receivable with obvious signs that the debtor is likely to be unable to fulfill the repayment obligations

etc.) to recognize expected credit loss and calculate individual impairment provision.

(2) Aging portfolio: For accounts receivable that have not been impaired after individual testing or whose individual

amount is not significant but with low risk the Company evaluates the expected credit loss of various accounts

receivable based on the actual loss rate of the same or similar accounts receivable portfolio with similar credit risk

characteristics in previous years. The Company determines the aging of accounts receivable based on the period

from the entry date to the balance sheet date.

(3) Associated portfolio: Unless there is conclusive evidence indicating an impairment the accounts receivable

formed between related parties shall not be accrued for bad debt provision.

14. Receivable financing

Receivable financing reflects notes receivable and accounts receivable that are measured at fair value on the

balance sheet date with changes included in other comprehensive income. For the accounting treatment method

please refer to the related treatment of the financial assets measured at fair value with changes included in other

comprehensive income classified in Item (XI) Financial Instrument of this accounting policy.

15. Other account receivable

Determination method and accounting treatment of the expected credit loss of other account receivable

For other receivables the expected credit loss is determined according to historical data and forward-looking

information. Based on whether the credit risk of other receivables has increased significantly since the initial

recognition the Company adopts the amount equivalent to the expected credit loss in the next 12 months or the

whole duration to measure the impairment loss. For specific accounting treatment methods please refer to Item

(XIII) Accounts Receivable of this accounting policy.

16. Contractual assets

Contract assets refer to the right that the Company has transferred the goods to customers and has the right to

receive consideration and such right depends on other factors besides the passage of time.

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17. InventoryThe Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen StockExchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

18. Assets held for sale

1. Basis for classification as non-current assets held for sale or disposal group

If the book value of an non-current asset is recovered mainly through sales (including the exchange of non-

monetary assets with commercial substance) rather than continuous use or disposal group the Company will classify

it as held for sale. The specific standard is to meet the following conditions at the same time:

(1) According to the practice of sales of such assets or disposal groups in similar transactions they can be sold

immediately under the current situation;

(2) The Company has made a resolution on a sale plan and obtained a firm purchase commitment. It is expected

that the sale will be completed within one year (if the relevant regulations require the approval of the relevant

authority or regulatory department of the Company before the sale such approval has been obtained).If the control right of the subsidiary is lost due to the sale of the investment in the subsidiary regardless of

whether part of the equity investment is retained after the sale and the conditions for classification of the held-for-

sale category are met the investment in the subsidiary as a whole will be classified as held-for-sale category in the

individual financial statements of the parent company and all assets and liabilities of the subsidiary will be classified

as held-for-sale category in the consolidated financial statements.

2. Accounting treatment of non-current assets or disposal groups held for sale

When the Company initially measures or re-measures the non-current assets or disposal groups held for sale

on the balance sheet date if the book value is higher than the net amount of fair value minus the sale expenses the

book value will be written down to the net amount of fair value minus the sale expenses and the written-down

amount will be recognized as asset impairment loss and included in the current profits and losses and impairment

provision of assets held for sale will be accrued at the same time. If the net amount of the fair value of non-current

assets held for sale on the subsequent balance sheet date is increased after deducting the sale expenses the previously

written-down amount will be restored and reversed within the amount of asset impairment loss recognized after

being classified as held for sale and the reversed amount will be included in the current profits and losses. Assets

impairment losses recognized before being classified as held for sale shall not be reversed.For the amount of asset impairment loss recognized by the disposal group held for sale the book value of

goodwill in the disposal group shall be deducted first and then the book value of non-current assets in the disposal

group shall be deducted proportionally according to the proportion of the book value of non-current assets in the

disposal group. For the subsequent reversal amount of asset impairment losses recognized by the disposal group

held for sale the book value will be increased in proportion according to the proportion of the book value of non-

current assets except goodwill in the disposal group.Non-current assets held for sale or non-current assets in disposal group are not depreciated or amortized and

interest and other expenses of liabilities in disposal group held for sale continue to be recognized.When the Company derecognizes the non-current assets held for sale or disposal groups the unrecognized

gains or losses will be included in the current profits and losses.When non-current assets or disposal groups are no longer classified as held for sale because they no longer

meet the classification conditions of held for sale or non-current assets are removed from the disposal groups held

for sale the measurement shall be based on the lower of the following two amounts:

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(1) For the book value before being classified as held for sale the adjusted amount based on depreciation

amortization or impairment that should have been recognized if it is not classified as held for sale;

(2) Recoverable amount.

3. Determination standard and presentation method of discontinued operation

Discontinued operations refers to a component that meets any of the following conditions and can be

distinguished separately and has been disposed of by the Company or classified as a component held for sale:

(1) This component represents an independent main business or a single main business area;

(2) This component is part of an associated plan to dispose of an independent main business or a separate

main business area;

(3) This component is a subsidiary acquired exclusively for resale.

For the discontinued operation listed in the current period the Company separately lists the profit and loss of

continuing operation and the profit and loss of discontinued operation in the current income statement and re-lists

the information originally listed as the profit and loss of continuing operation as the profit and loss of discontinued

operation in comparable accounting period in the income statement of the comparative period.

19. Debt investment

For debt investment the Company determines the expected credit loss on each balance sheet date according

to the types of counterparties and risk exposures and in consideration of historical default and industry forward-

looking information or various external actual and expected economic information. For the determination method

and accounting treatment method of expected credit loss please refer to the provisions of Item (XI) Financial

Instruments of this accounting policy.

20. Other debt investment

For Other debt investment the Company determines the expected credit loss on each balance sheet date

according to the types of counterparties and risk exposures and in consideration of historical default and industry

forward-looking information or various external actual and expected economic information. For the determination

method and accounting treatment method of expected credit loss please refer to the provisions of Item (XI)

Financial Instruments of this accounting policy.

21. Long-term account receivable

The Company's long-term receivables include receivable financial lease and other long-term receivables.For the receivable financial lease formed by the transactions regulated in Accounting Standards for Business

Enterprises No.21-Lease the loss provision shall be measured according to the amount equivalent to the expected

credit loss during the whole duration.For other long-term receivables the Company determines the expected credit loss on each balance sheet date

according to the types of counterparties and risk exposures and in consideration of historical default and reasonable

forward-looking information or various external actual and expected economic information.Based on whether the credit risk has increased significantly since the initial recognition the Company adopts

the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measure the

impairment loss of long-term receivables. Except for the long-term receivables whose credit risk is evaluated

individually they are divided into different portfolios based on their credit risk characteristics:

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Portfolio name Basis for determining the portfolio

Normal long-term receivables This portfolio is a long-term receivable with no overdue risk

Overdue long-term receivables This portfolio is a long-term receivable with high overdue risk

22. Long-term equity investment

1. Basis for determining joint control and significant influence on the investee

Joint control refers to the common control of an arrangement according to the relevant agreement and that

the related activities of the arrangement must be unanimously agreed by the participants who share the control rights

before making decisions. When judging whether there is joint control firstly it is judged whether all participants

or a group of participants collectively control the arrangement. If all participants or a group of participants must act

in concert to decide the related activities of an arrangement it is considered that all participants or a group of

participants collectively control the arrangement. Secondly it is judged whether the decision of the related activities

of the arrangement must be unanimously agreed by the participants who collectively control the arrangement and

joint control can only be formed if and only if the decision of the related activities requires the unanimous consent

of the participants who collectively control the arrangement. If there are two or more participants who can

collectively control an arrangement it does not constitute joint control. When judging whether there is joint control

the protective rights enjoyed are not considered.Significant influence refers to that the investor has the right to participate in the decision-making of the

financial and operating policies of the investee but it cannot control or jointly control the formulation of these

policies with other parties. When determining whether a significant influence can be exerted on the investee

consider the influence of the investor's direct or indirect holding of the voting shares of the investee and the potential

voting rights held by the investor and other parties in the current period after it is assumed to be converted into the

equity of the investee including the influence of the current convertible warrants stock options and convertible

corporate bonds issued by the investee. When foreign investment meets the following conditions it is generally

determined that it has a significant impact on the investing unit: * It is represented in the Board of Directors or

similar authority of the investee; * It participates in the formulation of the financial and business policies of the

investee; * Important transactions with the investee occur; * Management personnel are sent to the investee; *

Key technical data is provided to the investee. When directly or indirectly owning more than 20% but less than 50%

of the voting shares of the investee it is generally considered to have a significant impact on the investee.

2. Determination of initial investment cost

(1) Long-term equity investment formed by business merger

A. In the case of business merger under the same control if cash payment transfer of non-cash assets or taking

on debts and issuance of equity securities are adopted as the merger consideration the initial investment cost of

long-term equity investment shall be the share of the book value of the owners' equity of the merged party in the

consolidated financial statements of the final controlling party on the date of merger. If the investee under the same

control can be controlled due to additional investment and other reasons the initial investment cost of long-term

equity investment shall be determined according to the share of the net assets of the merged party in the book value

of the consolidated financial statements of the final controlling party on the date of merger. For the difference

between the initial investment cost of the long-term equity investment on the date of merger and the book value of

the long-term equity investment before the merger plus the book value of the newly paid consideration for the shares

on the date of merger adjust the capital premium or share capital premium. If the capital premium or share capital

premium is insufficient to offset the retained income will be offset.

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B. For the business merger not under the same control the merger cost shall be determined as the initial

investment cost of long-term equity investment on the date of purchase in accordance with the relevant provisions

of the Accounting Standards for Business Enterprises No.20-Business Merger. If the investees not under the same

control can be controlled due to additional investment and other reasons the sum of the book value of the original

equity investment plus the new investment cost shall be taken as the initial investment cost calculated by the cost

method.

(2) In addition to the long-term equity investment formed by business merger the initial investment cost of

long-term equity investment obtained by other means shall be determined in accordance with the following

provisions:

A. For long-term equity investment obtained by paying cash the initial investment cost shall be the actual

purchase price. The initial investment cost includes expenses taxes and other necessary expenses directly related to

obtaining long-term equity investment.B. For long-term equity investment obtained by issuing equity securities the initial investment cost shall be

the fair value of issuing equity securities.C. For long-term equity investment obtained by exchange of non-monetary assets the initial investment cost

shall be determined in accordance with the Accounting Standards for Business Enterprises No.7-Exchange of Non-

monetary Assets.D. For long-term equity investment obtained by debt restructuring its initial investment cost shall be

determined in accordance with the Accounting Standards for Business Enterprises No.12-Debt Restructuring.

3. Subsequent measurement and profit and loss recognition method

(1) Accounting by cost method: Long-term equity investment that can be controlled by the investee shall be

accounted by cost method. When accounting by cost method the cost of long-term equity investment is adjusted by

adding or recovering investment. For the long-term equity investment accounted by the cost method except for the

declared but undistributed cash dividends or profits included in the price or consideration actually paid at the time

of investment the Company shall recognize the investment income according to the cash dividends or profits

declared by the investee and no longer distinguish whether it belongs to the net profit realized by the investee before

and after the investment.

(2) Accounting by equity method: For the long-term equity investment jointly controlled or significantly

influenced by the investee except for the equity investment in the associated enterprise part of it is indirectly held

by venture capital institutions mutual funds trust companies or similar entities including investment with insurance

funds regardless of whether the above entities have a significant influence on this part of the investment the

Company to measure this part of the indirectly held investment at fair value with its changes included in profits and

losses in accordance with the relevant provisions of Accounting Standards for Business Enterprises No.22-

Recognition and Measurement of Financial Instruments and adopts the equity method for accounting. When

accounting by equity method after the Company obtains the long-term equity investment the investment income

and other comprehensive income are recognized respectively according to the share of the net profit and loss and

other comprehensive income realized by the investee and the book value of the long-term equity investment is

adjusted; The Company shall calculate its share according to the profit or cash dividend declared by the investee

and correspondingly reduce the book value of long-term equity investment; The Company shall adjust the book

value of the long-term equity investment and include it in the owners' equity for other changes in the owners' equity

of the investee except the net profit and loss other comprehensive income and profit distribution. The Company

recognizes the net loss of the investee to the extent that the book value of the long-term equity investment and other

long-term rights and interests that substantially constitute the net investment of the investee are written down to

zero unless the Company has the obligation to bear additional losses. If the investee realizes the net profit in the

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future the Company will resume the recognition of the income share after the income share makes up for the

unrecognized loss share. When recognizing the share of the net profit and loss of the investee the Company will

adjust the net profit of the investee based on the fair value of the identifiable assets of the investee at the time of

investment and offset the gains and losses of internal transactions between the Company and associated enterprises

and joint ventures and recognize the investment profit and loss on this basis. The internal transaction losses between

the Company and the investee shall be recognized in full if they belong to asset impairment losses according to the

Accounting Standards for Business Enterprises No.8-Asset Impairment. If the accounting policies and accounting

periods adopted by the investee are inconsistent with those of the Company the financial statements of the investee

shall be adjusted according to the accounting policies and accounting periods of the Company so as to recognize

the investment profits and losses.Long-term equity investments in associated enterprises and joint ventures held before the first execution date

if there is any debit difference of equity investments related to the investment shall be amortized by the original

remaining term straight-line method and the amortized amount shall be included in the current profits and losses.

(3) When disposing of long-term equity investment the difference between its book value and the actual

purchase price is included in the current profits and losses. If the long-term equity investment accounted by equity

method is included in the owners' equity due to other changes in the owners' equity of the investee except the net

profit and loss the part originally included in the owners' equity will be transferred to the current profits and losses

in proportion when disposing of the investment except for other comprehensive income arising from the investee's

re-measurement of the changes in defined benefit plan net liabilities or net assets.

23. Investment real estate

Measurement mode

Measured by cost method

Depreciation or amortization method

Investment real estate refers to real estate held to earn rent or capital appreciation or both. It includes leased

land use rights land use rights held and ready to be transferred after appreciation and leased buildings. When the

Company can obtain rental income or value-added income related to investment real estate and the cost of

investment real estate can be measured reliably the Company will initially measure it according to the actual

expenditure of purchase or construction.The Company adopts the cost model to measure the investment real estate on the balance sheet date. Under

the cost model the Company measures the investment real estate and makes depreciation or amortization in

accordance with the provisions of Item (23) Fixed Assets and Item (26) Intangible Assets of this accounting policy.When the investment real estate is disposed of or permanently withdrawn from use and it is not expected to obtain

economic benefits from its disposal the recognition of the investment real estate shall be terminated. When the

Company sells transfers scraps or damages the investment real estate the amount of disposal income after

deducting its book value and relevant taxes shall be included in the current profits and losses.

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24. Fixed assets

(1) Recognition conditions

Fixed assets refer to tangible assets with a service life of more than one fiscal year which are held for

producing goods providing labor services leasing or managing.

(2) Depreciation methods

Yearly depreciation

Category Method Years of depreciation Scrap value rate

rate

Straight-line

Houses and buildings 20 10% 4.5%

depreciation

Straight-line

Machinery equipment 10 10% 9%

depreciation

Transportation Straight-line

510%18%

equipment depreciation

Electronic equipment Straight-line

510%18%

and others depreciation

25. Construction in progress

26. Borrowing expenses

1. Recognition principle of capitalization of borrowing costs

Borrowing costs include interest incurred by borrowing amortization of discount or premium and auxiliary

expenses as well as exchange difference incurred by borrowing in foreign currency. If the borrowing costs incurred

by the Company can be directly attributed to the purchase construction or production of assets that meet the

capitalization conditions they shall be capitalized and included in the cost of relevant assets; Other borrowing costs

shall be recognized as expenses when incurred according to the amount incurred and included in the current profits

and losses.Assets eligible for capitalization include fixed assets investment real estate inventory and other assets that

need to go through a long period of purchase construction or production activities to reach the predetermined

serviceable or saleable state.Borrowing costs shall be capitalized when the following conditions are met at the same time:

(1) Asset expenditure has occurred including the expenditure occurred in the form of paying cash transferring non-

cash assets or undertaking interest-bearing debts for purchasing constructing or producing assets that meet

capitalization conditions;

(2) Borrowing costs have been incurred;

(3) The purchase construction or production activities necessary to make the assets reach the expected serviceable

or saleable state have started.

2. Period of capitalization of borrowing costs

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Borrowing expenses incurred for purchasing constructing or producing assets that meet the capitalization

conditions if they meet the above capitalization conditions and occur before the assets reach the predetermined

serviceable or saleable state shall be included in the cost of the assets; If the purchase construction or production

activities of the assets are abnormally interrupted for more than 3 months the capitalization of borrowing costs shall

be suspended and recognized as current expenses until the purchase construction or production activities of the

assets resume; When the purchased constructed or produced assets reach the predetermined serviceable or saleable

state the capitalization of their borrowing costs will be stopped. Borrowing costs incurred after reaching the

intended serviceable or saleable state are directly included in financial expenses in the current period.

3. Calculation method of capitalized amount of borrowing costs

During the capitalization period the capitalization amount of interest (including amortization of discount or

premium) in each accounting period shall be determined in accordance with the following provisions:

(1) Where a special borrowing is borrowed for the purpose of purchasing constructing or producing assets that meet

the capitalization conditions it shall be determined by the actual interest expenses incurred in the current period of

the special borrowing minus the interest income obtained by depositing unused borrowing funds in the bank or the

investment income obtained by temporary investment.

(2) If the general borrowing is occupied for the purpose of purchasing constructing or producing assets that meet

the capitalization conditions the interest amount that should be capitalized on the general loan shall be calculated

and determined according to the weighted mean of the accumulated asset expenditure exceeding the special

borrowing portion multiplied by the capitalization rate of the occupied general borrowing.

27. Biological assets

None

28. Oil and gas asset

None

29. Intangible assets

(1) Service life and its determination basis estimation amortization method or review procedure

1. Service life and its determination basis estimation amortization method or review procedure

Intangible assets are measured at actual cost. The cost of outsourced intangible assets includes the purchase

price relevant taxes and other expenses directly attributable to making the assets reach the intended use. If

intangible assets are purchased by installment and the purchase price of intangible assets exceeds the normal credit

conditions and actually with financing nature the cost of intangible assets is the present value of the purchase price.

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The cost of intangible assets invested by investors shall be determined according to the value agreed in the

investment contract or agreement. If the value agreed in the investment contract or agreement is unfair it shall be

recorded according to the fair value of intangible assets. For intangible assets obtained by exchange of non-monetary

assets the initial investment cost shall be determined in accordance with the Accounting Standards for Business

Enterprises No.7-Exchange of Non-monetary Assets. For intangible assets obtained by debt restructuring its initial

investment cost shall be determined in accordance with the Accounting Standards for Business Enterprises No.12-

Debt Restructuring. For intangible assets acquired by merger of enterprises under the same control their entry value

shall be determined according to the book value of the merged party; For intangible assets acquired by merger of

enterprises not under the same control their entry value shall be determined at the fair value.The Company analyzes and judges the service life of intangible assets when acquiring them and divides them

into intangible assets with limited service life and intangible assets with uncertain service life. Intangible assets with

limited service life shall be amortized within the expected service life by adopting the amortization method that can

reflect the expected realization mode of economic benefits related to such assets from the time when the intangible

assets are available for use; If the expected realization mode cannot be reliably determined straight-line

amortization method shall be adopted.Amortization method service life determination basis and residual rate of various intangible assets with

limited service life:

Category Amortization method Service life (year) Determination basis Residual rate (%)

Statutory

Land use right Straight-line method 40-50 years term/registration term of 0.00

land use certificate

Trademark right Straight-line method 10 years Statutory term 0.00

Benefit period/contract

Software Straight-line method 2-10 years 0.00

period

Benefit period/contract

Patent Straight-line method 5-10 years 0.00

period

Benefit period/contract

Non-patent technology Straight-line method 5-10 years 0.00

period

Industrial property rights

Benefit period/contract

and proprietary Straight-line method 10 years 0.00

period

technology

Benefit period/contract

Others Straight-line method 5-10 years 0.00

period

At the end of each year the Company reviews the service life and amortization method of intangible assets

with limited service life. If the service life and amortization method of intangible assets are different from those

previously estimated the amortization period and amortization method shall be changed.The Company regards intangible assets with unpredictable future economic benefits as intangible assets with

uncertain service life and does not amortize intangible assets with uncertain service life. The Company reviews the

service life of intangible assets with uncertain service life in each accounting period. If there is evidence that the

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service life of intangible assets is limited its service life shall be estimate and treatment shall be carried out

according to the above provisions.Please refer to Item (27) Impairment of Long-term Assets in this accounting policy for details on the

impairment test method and accrual method for impairment provision of intangible assets.

(2) Collection scope of R&D expenditure and related accounting treatment methods

R&D expenditure is directly related to R&D activities of the enterprise including R&D employee

compensation direct input expenses depreciation expenses and long-term deferred expenses design expenses

equipment debugging expenses intangible assets amortization expenses commissioned external R&D expenses

and other expenses. The collection and calculation of R&D expenditure is based on the fact that relevant resources

are actually invested in R&D activities. R&D expenditure includes expensed R&D expenditure and capitalized

development expenditure.The division standard of research stage expenditure and development stage expenditure of R&D projects:

Research stage expenditure refers to the expenditure incurred by original planned investigation for acquiring and

understanding new scientific or technical knowledge; Development stage expenditure refers to the expenditure

incurred by applying research results or other knowledge to a plan or design to produce new or substantially

improved materials devices and products before commercial production or use.Expenditures of intangible assets developed by the Company itself during the research stage of R&D projects

are included in the current profits and losses when incurred. Expenditure in the development stage of the

development project can only be recognized as intangible assets if the following conditions are met at the same time:

(1) It is technically feasible to complete the intangible assets so that they can be used or sold;

(2) It has the intention to complete the intangible assets and use or sell them;

(3) For the ways in which intangible assets generate economic benefits including the ability to prove that the

products produced by using the intangible assets exist in the market or the intangible assets themselves exist in the

market if the intangible assets will be used internally their usefulness shall be proved;

(4) It has sufficient technical financial and other resources to support the development of the intangible assets and

has the ability to use or sell the intangible assets;

(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.

The expenditure in the development stage that has been expensed in the previous period is no longer adjusted.

30. Impairment of long-term assets

None

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31. Long-term expenses to be apportioned

Long-term deferred expenses refer to the expenses that have been incurred by the Company but should be

borne by the current period and subsequent periods with an amortization period of more than 1 year including the

improvement expenses of fixed assets rented by operating lease. Long-term deferred expenses shall be amortized

evenly during the benefit period of relevant projects.Category Amortization years

Decoration and maintenance fee 3-6 years

32. Contractual liability

Contractual liabilities reflect the Company's obligation to transfer goods to customers for received or

receivable consideration from customers. If the customer has paid the contract consideration or the Company has

obtained the unconditional right to receive the contract consideration before the Company transfers the goods to the

customer the contractual liabilities shall be recognized according to the amount received or receivable when the

customer actually issues the payment or the payment is due whichever is earlier.Contract assets and contractual liabilities under the same contract are listed on a net basis and contract assets

and contractual liabilities under different contracts are not offset.

33. Employee compensation

(1) Accounting treatment for short-term compensation

Short-term salary refers to the employee's salary that the Company needs to pay in full within 12 months after

the end of the annual report period when employees provide relevant services except post-employment benefits

and dismissal benefits. During the accounting period when employees provide services the Company recognizes

the actual short-term salary as a liability and includes it into relevant asset costs and expenses according to the

beneficiaries of employees' services.

(2) Accounting treatment for post-employment benefit

Post-employment benefits refer to various forms of remuneration and benefits provided by the Company after

employees retire or terminate labor relations with the Company in order to obtain services provided by employees

except short-term remuneration and dismissal benefits. Post-employment benefit plans include defined contribution

plan and defined benefit plans. Defined contribution plan refers to the post-employment benefit plan in which the

Company will not undertake further payment obligations after paying a fixed fee for an independent fund; Defined

benefit plan refers to the post-employment benefit plan except the defined contribution plan.

(1) Defined contribution plan

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Defined contribution plan includes basic old-age insurance and unemployment insurance. During the

accounting period when employees provide services for the Company the amount payable shall be calculated

according to the local payment base and proportion recognized as liabilities and included in the current profits and

losses or related asset costs.During the accounting period when employees provide services the amount payable calculated according to

the defined contribution plan is recognized as a liability and included in the current profits and losses or related

asset costs.

(2) Defined benefit plan

According to the formula determined by the expected cumulative benefit unit method the Company attributes

the benefit obligations generated by defined benefit plan to the period when employees provided services and

includes them in the current profits and losses or related asset costs. The employee compensation cost caused by

defined benefit plan of the Company includes the following components:

A. Service costs including current service costs past service costs and settlement gains or losses. Current service

costs refer to the increase in the present value of defined benefit plan obligations caused by employees' provision

of services in the current period; Past service costs refer to the increase or decrease of the present value of defined

benefit plan obligations related to employee service in the previous period caused by the revision of the defined

benefit plan.B. Net interest of net liabilities or net assets in defined benefit plan including the interest income of planned assets

the interest expense of defined benefit plan obligations and the interest affected by the asset ceiling.C. Changes arising from re-measurement of net liabilities or net assets in defined benefit plan.Unless other accounting standards require or allow employee benefit costs to be included in the asset costs

the Company will include the above items A and B in the current profits and losses and include Item C in other

comprehensive income which will not be transferred back to profit or loss in subsequent accounting periods but

these amounts recognized in other comprehensive income can be transferred within the scope of equity.

(3) Accounting for retirement benefits

Dismissal benefits refer to the compensation provided to employees by the Company for terminating the labor

relationship with employees before the expiration of their labor contracts or for encouraging employees to

voluntarily accept layoffs. If the Company provides dismissal benefits to employees the employee compensation

liabilities arising from the dismissal benefits shall be recognized at the earlier of the following two dates and

included in the current profits and losses: when the Company cannot unilaterally withdraw the dismissal benefits

provided by the plan to terminate labor relations or the proposal to cut back; When the Company recognizes the

costs or expenses related to the reorganization involving the payment of dismissal benefits.

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(4) Accounting for other long-term employee benefits

Other long-term employee benefits refer to all employee compensation except short-term salary post-

employment benefits and dismissal benefits including long-term paid absences long-term disability benefits and

long-term profit sharing plans. Other long-term employee benefits provided by the Company to employees if they

meet the requirements of the defined contribution plan shall be handled in accordance with the relevant provisions

of the defined contribution plan; For other long-term employee benefits other than the above the net liabilities or

net assets of other long-term employee benefits shall be recognized and measured according to the relevant

regulations of the defined benefit plan. At the end of the reporting period the Company attributed the benefit

obligations arising from other long-term employee benefits to the period when employees provided services and

included them in the current profits and losses or related asset costs.

34. Accrual liability

If the Company's obligation related to contingencies meet the following conditions at the same time it will be

recognized as a liability: (1) This obligation is the current obligation undertaken by the Company; (2) The

performance of this obligation may lead to the outflow of economic benefits; (3) The amount of the obligation can

be measured reliably.All or part of the expenditures required for the estimated liabilities are expected to be compensated by the

third party or other parties and the compensation amount is recognized as an asset separately when it is basically

determined that it can be received and the recognized compensation amount does not exceed the book value of the

recognized liabilities. The estimated liabilities are initially measured according to the best estimate of the

expenditure required to perform the relevant current obligations with the factors related to contingencies such as

risks uncertainties and time value of money comprehensively considered. If the time value of money has a

significant impact the best estimate shall be determined by discounting the relevant future cash outflows.On the balance sheet date the Company reviews the book value of the estimated liabilities. If there is

conclusive evidence that the book value cannot truly reflect the current best estimate such book value will be

adjusted according to the current best estimate.

35. Share-based payment

1. Types of share-based payment

Share-based payment of the Company is divided into cash-settled share-based payment and equity-settled

share-based payment.Equity-settled share-based payment shall be measured at the fair value of equity instruments granted to

employees. If it is exercisable immediately after the grant it will be included in the relevant costs or expenses

according to the fair value of the equity instrument on the grant date and the capital reserve will be increased

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accordingly. If it is exercisable only after the service within the waiting period is completed or the specified

performance conditions are met on each balance sheet date within the waiting period the service obtained in the

current period shall be included in the relevant costs or expenses and capital reserve based on the best estimate of

the number of exercisable equity instruments and according to the fair value on the grant date of the equity

instruments. After the vesting date the recognized related costs or expenses and the total owners' equity will not be

adjusted.Cash-settled share-based payment shall be measured at fair value of liabilities calculated and determined based

on shares or other equity instruments undertaken by the Company. If it is exercisable immediately after the grant it

will be included in the relevant costs or expenses at the fair value of the liabilities undertaken by the Company on

the grant date and the liabilities will be increased accordingly. For cash-settled share-based payment exercisable

after the service in the waiting period is completed or the specified performance conditions are met the service

obtained in the current period shall be included in the costs or expenses and corresponding liabilities on each balance

sheet date during the waiting period based on the best estimate of the vesting situation and according to the fair

value of the liabilities undertaken by the Company. On each balance sheet date and settlement date before the

settlement of related liabilities the fair value of liabilities is re-measured and its changes are included in the current

profits and losses.

2. Accounting treatment related to implementation modification and termination of share-based payment plan

No matter how the terms and conditions of the granted equity instruments are modified or even the grant of

the equity instruments is cancelled or the equity instruments are settled the Company shall at least recognize that

the corresponding services obtained are measured according to the fair value of the granted equity instruments on

the grant date unless the vesting conditions of the equity instruments (except market conditions) cannot be met.If the Company cancels the granted equity instruments or settles the granted equity instruments within the

waiting period (except those cancelled due to failure to meet the conditions of vesting conditions) the treatment is

as follows:

(1) The cancellation or settlement will be treated as accelerated vesting and the amount that should have been

recognized in the remaining waiting period will be recognized immediately.

(2) All the money paid to employees at the time of cancellation or settlement shall be treated as the repurchase of

equity and the part paid for repurchase that is higher than the fair value of the equity instrument on the repurchase

date shall be included in the current expenses.

(3) If a new equity instrument is granted to employees and it is determined that the new equity instrument granted

is used to replace the cancelled equity instrument on the grant date of the new equity instrument the Company shall

handle the granted alternative equity instrument in the same way as the modification of the terms and conditions of

the original equity instrument.

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36. Other financial instruments including preferred stock and perpetual bonds

None

37. Revenue

Disclosure of accounting policies adopted in income recognition and measurement according to business types

The Company has fulfilled its contractual obligations that is to recognize the income when the customer

obtains the control right of relevant goods. Performance obligation refers to the commitment to transfer clearly

distinguishable goods to customers in the contract. The Company evaluates the contract on the contract start date to

identify each individual performance obligation contained in the contract. If the following conditions are met at the

same time it is clearly distinguishable goods:

(1) Customers can benefit from the goods itself or from the use of the goods along with other easily available

resources;

(2) The commitment to transfer the goods to customers can be distinguished separately from other commitments in

the contract.The following situations usually indicate that the commitment to transfer the goods to customers cannot be

distinguished separately from other commitments in the contract:

(1) Significant services need to be provided to integrate the goods and other goods promised in the contract into the

combined output agreed in the contract and transfer it to customers;

(2) The goods will make major modifications or customizations to other goods promised in the contract;

(3) The goods are highly correlated with other goods promised in the contract.

The transaction price is the amount of consideration that the Company is expected to receive for transferring

the goods to customers excluding the payment collected on behalf of third parties and the payment that the Company

is expected to return to customers. When determining the transaction price of the contract if there is a variable

consideration the Company will determine the best estimate of the variable consideration according to the expected

value or the most likely amount and include it in the transaction price at an amount not exceeding the amount that

is unlikely to be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing

component in the contract the Company will determine the transaction price according to the amount payable in

cash when the customer obtains the goods control right and the difference between the transaction price and the

contract consideration will be amortized by the effective interest rate method during the contract period. If the

interval between the customer obtaining the goods control right and the customer paying the price is less than one

year the Company will not consider the financing component. When the consideration that the Company has the

right to collect from the customer due to the transfer of goods is in the form of non-cash the Company will determine

the transaction price according to the fair value of the non-cash consideration on the contract start date. If the fair

value of the non-cash consideration cannot be reasonably estimated the Company will indirectly determine the

86Semi-Annual Report 2026

transaction price with reference to the individual selling price of the goods it promised to transfer to customers. For

the payment that the Company expects to return to customers except for obtaining other clearly distinguishable

goods from customers the consideration payable shall be used to offset the transaction price. If the consideration

payable to customers exceeds the fair value of clearly distinguishable goods obtained from customers the excess

amount shall be used as the consideration payable to customers to offset the transaction price. If the fair value of

clearly distinguishable goods obtained from customers cannot be reasonably estimated the Company will fully

offset the transaction price from the consideration payable to customers. When carrying out accounting treatment

on the transaction price offset by the consideration payable to customers the Company will offset the current income

at the later time of recognizing the relevant income and paying (or promising to pay) the customer consideration.If the contract contains two or more performance obligations the Company will allocate the transaction price

to each individual performance obligation according to the relative proportion of the individual selling price of the

goods promised by each individual performance obligation on the contract start date and measure the income

according to the transaction price allocated to each individual performance obligation. In case of subsequent changes

in the transaction price the Company will allocate the subsequent changes to the performance obligations in the

contract according to the basis adopted on the contract start date. The transaction price will not be re-allocated due

to the change of individual selling price after the contract start date.If any of the following conditions is met the Company will perform its obligations within a certain period of

time; Otherwise it is a fulfillment of performance obligation at a certain time point:

(1) Customers gain and consume the economic benefits brought by the Company's performance at the same time;

(2) Customers can control the goods under construction during the performance of the Company;

(3) The goods produced during the performance of the Company have irreplaceable uses and the Company has the

right to collect payment for the accumulated part of the performance completed so far during the whole contract

period.For the performance obligations performed in a certain period of time the Company shall recognize the

income according to the performance progress during that period except that the performance progress cannot be

reasonably determined. The Company determines the performance progress of provided services according to the

input method. When the performance progress cannot be reasonably recognized if the cost already incurred by the

Company is expected to be compensated the revenue will be recognized according to the cost amount already

incurred until the performance progress can be reasonably recognized.For the performance obligations fulfilled at a certain time point the Company recognizes the income when

the customer obtains the control right of relevant goods. When judging whether the customer has obtained the

control of the goods the Company will consider the following signs:

(1) The Company is entitled to the right of real time payment collection for the goods that is the customer has the

real time payment collection obligation for the goods;

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(2) The Company has transferred the legal ownership of the goods to the customer that is the customer has the

legal ownership of the goods;

(3) The Company has transferred the goods in kind to the customer that is the customer has occupied the goods in

kind;

(4) The Company has transferred the main risks and rewards on the ownership of the goods to the customer that

is the customer has obtained the main risks and rewards on the ownership of the goods;

(5) The customer has accepted the goods.

According to whether the Company has control over the goods or services before transferring them to

customers the Company judges whether it is the main responsible person or the agent when engaging in transactions.If the Company can control the goods or services before transferring them to customers the Company is the main

responsible person and the income is recognized according to the total consideration received or receivable;

Otherwise the Company is an agent and will recognize the income according to the expected amount of

commission or handling fee which is determined according to the net amount of the total consideration received or

receivable after deducting the price payable to other interested parties or according to the established commission

amount or proportion.The situations in which the Company can control the goods before transferring them to customers include the

following:

(1) The enterprise transfers the control right of goods or other assets to the customer after it obtains it from a third

party;

(2) The enterprise can lead the third party to provide services to customers on behalf of the enterprise;

(3) After the enterprise obtains the control right of the goods from the third party it integrates the goods with other

goods into a combined output and transfers it to the customer by providing significant services.When judging whether it has control over the goods before transferring them to customers the Company

comprehensively considers all relevant facts and circumstances including:

(1) The enterprise bears the main responsibility for transferring goods to customers;

(2) The enterprise bears the inventory risk of the goods before or after their transfer;

(3) The enterprise has the right to decide the prices of the goods for trade independently;

(4) Other relevant facts and circumstances.

Different income recognition methods and measurement methods involved in different business models adopted by

similar businesses

(1) Sales merchandise business

The Company's commodity sales mainly include circulation sales shopping mall joint operation and proprietary e-

commerce and the recognition methods of sales revenue these three ways are as follows:

(1) Circulation sales refers to that the Company recognizes the sales revenue when the goods are delivered to the

customer and the authorized representative or the first carrier recognized by the customer at the designated place

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and the customer and the authorized representative or the first carrier have signed for it and the Company has

received the payment or obtained delivery documents.

(2) Proprietary e-commerce refers to that the Company retails through third-party e-commerce platforms (such as

Tmall and JD.COM) and recognizes the sales revenue when the customer signs for the goods and obtains the

payment or payment right.

(2)Provision of labor services

The Company's provision of labor services mainly includes processing with supplied materials and entrusted

consignment sales. The methods of revenue recognition are as follows:

* For the processing of supplied materials after completing the processing of the relevant goods and delivering

them to the customer the processing fee income is recognized when the processing fee has been received or

the right to receive the processing fee has been obtained.* For consignment sales the Company as the entrusted party acts as an agent in consignment sales business and

recognizes agency service income at the net amount upon receiving the sales list confirmed by the downstream

customers.The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen StockExchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

38.Contract cost

Contract costs include incremental costs incurred in obtaining contract and contract performance costs.The incremental costs incurred to obtain the contract refer to the costs that the Company would not have

incurred if the contract had not been obtained (e.g. sales commission etc.). If the cost is expected to be recovered

the Company recognizes it as an asset for the costs of acquiring the contract. Expenses incurred by the Company in

obtaining the contract other than the incremental costs that are expected to be recovered are included in profit or

loss for the current period when incurred.If the costs incurred for the performance of the contract are not subject to the scope of the relevant standards

such as inventory fixed assets or intangible assets and the following conditions are met at the same time the

Company recognizes them as an asset for contract performance costs:

(1) the cost is directly related to a current or an anticipated contract including direct labor direct materials

manufacturing expenses (or similar expenses) costs expressly borne by the customer and other costs incurred solely

as a result of the contract;

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(2) the cost increases the resources that the enterprise will use to fulfill its performance obligations in the future;

(3) the cost is expected to be recovered.

The asset as recognized by the cost of acquiring the contract and the asset as recognized by the cost of

performance of the contract are amortized on the same basis as the revenue recognition of the goods or services

related to the assets and are included in profit or loss for the current period.If the carrying amount of an asset related to the contract cost is higher than the following two differences the

Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:

(1) The residual consideration that the enterprise is expected to receive as a result of the transfer of commodities

related to the asset;

(2) An estimate of the costs to be incurred for the transfer of the relevant goods.

If the factors of impairment in the previous period change subsequently so that the difference by (1) minus

(2) is higher than the carrying amount of the asset the original provision for impairment of the asset shall be reversed

and included in the profit or loss for the current period but the carrying amount of the reversed asset shall not exceed

the carrying amount of the asset on the reversal date assuming that no provision for impairment is made.

39. Government subsidies

1. Types of government subsidies

Government subsidies refer to the monetary assets or non-monetary assets obtained by the company from the

government free of charge including government subsidies related to assets and government subsidies related to

income.Asset-related government subsidies refer to government subsidies obtained by a company for the acquisition

construction or other formation of long-term assets.Income-related government subsidies refer to government subsidies other than asset-related government subsidies.

2. The principle and timing of recognition of government subsidies

Recognition principle of government subsidies:

(1) The company is able to meet the conditions attached by the government subsidy;

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(2) The company is able to receive government subsidies.

The government subsidy can only be recognized if the above conditions are met at the same time.

3. Measurement of government subsidies

(1) If the government subsidy is a monetary asset the company shall measure it according to the amount received

or receivable;

(2) If the government subsidy is a non-monetary asset the company shall measure it at fair value and if the fair

value cannot be reliably obtained it shall be measured at the notional amount (the notional amount is RMB 1).

4. Accounting treatment of government subsidies

(1) Asset-related government subsidies are written off the carrying amount of the underlying assets or recognized

as deferred income upon acquisition. If it is recognized as deferred income it shall be included in profit or loss in

installments in accordance with a reasonable and systematic method during the useful life of the relevant asset.Government subsidies measured in notional amounts are directly included in profit or loss for the current period.

(2) Government subsidies related to income shall be handled as follows:

A. If it is used to compensate the company for the relevant costs expenses or losses in subsequent periods it shall

be recognized as deferred income at the time of acquisition and shall be included in the profit or loss for the current

period or offset the relevant costs during the period when the relevant costs expenses or losses are recognized.B. If it is used to compensate for the relevant costs expenses or losses incurred by the company it shall be directly

included in the current profit or loss or offset the relevant costs when acquired.

(3) For government subsidies that are included in both the asset-related part and the income-related part if they can

be distinguished they shall be accounted for separately in different parts and if it is difficult to distinguish they

shall be classified as income-related government subsidies as a whole.

(4) Government subsidies related to the company's routine operations shall be included in other income or offset

related costs and expenses according to the economic business substance. Government subsidies unrelated to the

company's routine activities are included in non-operating income and expenditure. If the finance department

directly allocates the discount funds to the company the company will offset the relevant borrowing costs with the

corresponding discount.

(5) If the confirmed government subsidy needs to be returned it shall be handled according to the following

circumstances:

A. If the carrying amount of the relevant asset is reduced at the time of initial recognition the carrying amount

of the asset shall be adjusted.

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B. If there is relevant deferred income the carrying amount of the relevant deferred income shall be written off

and the excess part shall be included in the profit or loss for the current period.C. If it belongs to other circumstances it shall be directly included in the profit or loss for the current period.

40. Deferred tax assets/deferred tax liabilities

When the company acquires assets and liabilities it determines its tax base. If there is a temporary difference

between the carrying amount of assets and liabilities and their tax base the deferred tax assets or deferred tax

liabilities arising from them shall be recognized in accordance with the regulations.

1. Recognition of deferred tax assets

(1) The company recognizes deferred tax assets arising from deductible temporary differences to the extent that it

is likely to obtain taxable income that can be used to offset deductible temporary differences. However deferred

tax assets arising from the initial recognition of assets or liabilities are not recognized in transactions that (1) is not

a business combination and (2) the transaction does not affect either accounting profits or taxable income (or

deductible losses) at the time of the transaction.

(2) The Company recognizes the corresponding deferred tax assets for deductible temporary differences related to

investments in subsidiaries associates and joint ventures that meet the following conditions at the same time: (1)

the temporary differences are likely to be reversed in the foreseeable future and (2) the taxable income used to

offset the deductible temporary differences is likely to be obtained in the future.

(3) For deductible losses and tax credits that can be carried forward to subsequent years in accordance with the

provisions of the tax law they shall be treated as deductible temporary differences and the corresponding deferred

tax assets shall be recognized to the extent that the future taxable income that is likely to be used to offset the

deductible losses and tax credits.

2. Recognition of deferred tax liabilities

(1) The company recognizes all deferred tax liabilities arising from taxable temporary differences except for the

deferred income tax liabilities arising from the following transactions: (1) the initial recognition of goodwill and

(2) the initial recognition of assets or liabilities arising from transactions that satisfy both the following

characteristics: the transaction is not a business combination and the transaction does not affect either the

accounting profit or the taxable income (or deductible loss) at the time of the transaction.

(2) The Company recognizes the corresponding deferred tax liabilities for taxable temporary differences related to

investments in subsidiaries associates and joint ventures but other than those with the following conditions are met

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at the same time: (1) the investment enterprise can control the time for the reversal of the temporary difference and

(2) the temporary difference is likely not to be reversed in the foreseeable future.

3. Presentation of net offsets of deferred tax assets and deferred tax liabilities

When the company has the legal right to settle on a net basis and intends to settle on a net basis or acquire

assets and settle liabilities at the same time the company's current income tax assets and current income tax

liabilities are presented on a net basis after offset.When there is a legal right to settle the current income tax assets and current income tax liabilities on a net

basis and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax

collection and administration department on the same taxpayer or levied by the same tax collection and

administration department to different tax subjects but in each period of reversal of deferred tax assets and liabilities

of material nature in the future the taxpayer involved intends to settle the current income tax assets and liabilities

on a net basis or acquire the assets and settle liabilities at the same time the deferred tax assets and deferred tax

liabilities of the Company are presented on a net basis after offset.

41. Leasing

(1) Accounting treatment as a lessee lease

(1) Right-of-use assets

On the commencement date of the lease term the Company as the lessee recognizes the right to use the leased

asset during the lease term as right-of-use asset except for short-term leases and leases of low-value assets.Right-of-use assets are initially measured at cost which includes:

A. Initial measurement amount of the lease liability;

B. If there is a lease incentive for the lease payment paid on or before the start date of the lease term the relevant

amount of the lease incentive already enjoyed shall be deducted;

C. Initial direct costs incurred;

D. Costs expected to be incurred to dismantle and remove the leased asset restore the site on which the leased asset

is located or restore the leased asset to the condition agreed in the lease terms except for the production of inventory.The Company adopts the cost model for the subsequent measurement of right-of-use assets and adopts the

straight-line method for depreciation of various types of right-of-use assets.

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If the Company is able to reasonably determine that the ownership of the leased assets will be acquired at the

expiration of the lease term the depreciation shall be accrued during the remaining useful life of the leased assets

and if it cannot be reasonably determined that the ownership of the leased assets can be acquired at the expiration

of the lease term the depreciation shall be accrued during the period which is shorter from the lease term and the

remaining useful life of the leased assets. If the right-of-use asset is impaired the Company will carry out subsequent

depreciation based on the carrying amount of the right-of-use asset after deducting the impairment loss.When the Company remeasures lease liabilities based on the present value of the changed lease payments and

adjusts the carrying amount of right-of-use assets accordingly if the carrying amount of right-of-use assets has been

reduced to zero but the lease liabilities still need to be further reduced the remaining amount will be included in

profit or loss for the current period.The impairment test method and impairment provision method of right-of-use assets are detailed in (XXVII)

Impairment of long-term assets of this accounting policy.

(2) Lease liabilities

At the commencement date of the lease term the Company recognizes the present value of unpaid lease

payments as lease liabilities excluding short-term leases and leases of low-value assets.When calculating the present value of the lease payment the Company as the lessee uses the interest rate

implicit in the lease as the discount rate and if the interest rate implicit in the lease cannot be determined the

incremental borrowing rate of the Company is used as the discount rate.The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed

periodic interest rate and includes them in profit or loss for the current period. Variable lease payments that are not

included in the measurement of lease liabilities are recognized in profit or loss for the current period when they are

actually incurred.After the commencement date of the lease term the Company will remeasure the lease liability based on the

present value of the changed lease payment in the event of a change in the amount of the substantial fixed payment

a change in the estimated amount payable for the residual value of the guarantee a change in the index or ratio used

to determine the amount of the lease payment a change in the evaluation result or actual exercise of the option to

purchase renew or terminate the option.

(3) Short-term leases and leases of low-value assets

A short-term lease is a lease with a lease period of not more than 12 months on the start date of the lease term

and does not include an option to purchase. A lease of a low-value asset refers to a lease with a low value when a

single leased asset is a brand-new asset. If the Company subleases or expects to sublease the leased assets the

original lease is not a low-value asset lease.

94Semi-Annual Report 2026

The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and leases

of low-value assets and to include the relevant lease payments in profit or loss or the cost of related assets on a

straight-line basis for each period of the lease term.

（2） Accounting treatment as a lessor's lease

On the lease commencement date the Company divides the lease into the finance lease and the operating lease.A financial lease refers to a lease that substantially transfers almost all of the risks and rewards associated with the

ownership of the leased asset regardless of whether the ownership is ultimately transferred. Operating leases refer

to leases other than financial leases. When the Company acts as a subleaselessor it classifies the sublease based on

the right-of-use assets generated from the original lease.

(1) Accounting treatment of operating leases

Lease receipts from operating leases are recognized as rental income on a straight-line basis for each period

of the lease term. The Company capitalizes the initial direct expenses incurred in connection with the operating

lease and apportion them to profit or loss for the current period on the same basis as the rental income recognition

during the lease term. Variable lease payments that are not included in lease receipts are recognized in profit or loss

for the current period when they are actually incurred.

(2) Accounting treatment of financial leases

On the lease commencement date the Company recognizes the financial lease receivables for the financial

lease and terminates the recognition of the financial lease assets. When the Company initially measures the financial

lease receivables the net lease investment is recorded as the entry value of the financial lease receivables. The net

lease investment is the sum of the unsecured residual value and the present value of lease receipts not yet received

at the start date of the lease term discounted at the interest rate implicit in the lease.The Company calculates and recognizes interest income for each period of the lease term at a fixed periodic

interest rate. The derecognition and impairment of financial lease receivables are described in (Xl) Financial

instruments of this accounting policy.Variable lease payments that are not included in the net measurement of lease investments are recognized in

profit or loss for the period when they are actually incurred.

95Semi-Annual Report 2026

42. Other important accounting policy and estimation

None

43. Changes of important accounting policy and estimation

(1) Changes of important accounting policy

□Applicable □Not applicable

(2)Changes of important accounting estimation

□Applicable □Not applicable

（3）The Company started implementing the updated accounting standards commencing from 2025 and

adjusted the relevant items in the financial statements at the beginning of the very year involved in the initial

implementation of the said standards

□Applicable □Not applicable

44.Other

None

VI. Taxes

1. Main tax and tax rate

Type of tax Tax calculation evidence Tax rate

Sales of goods taxable labor service

revenue taxable income intangible

Value added tax 5%6%9%13%

assets income and income from property

leasing

City maintenance & construction tax VAT payable 7%

Enterprise income tax Taxable income See below for details

Education Fee Surcharge VAT payable 3%

Local education fee surcharge VAT payable 2%

Disclose reasons for different taxpaying body

Taxpaying body Income tax rate

Shenzhen China Bicycle Company (Holdings) Co. Ltd. 25%

Shenzhen Xinsen Jewelry Gold S Co. Ltd 25%

Shenzhen Xinsen Precision Manufacturing Co.Ltd. 20%

Shenzhen Jiucheng Culture Technology Co. Ltd. 20%

Shenzhen Jinjiucheng Intangible Cultural Heritage Inheritance

20%

Co. Ltd.Dongguan Xinsen Jewelry Co. Ltd. 20%

Shenzhen Emmelle Industrial Co. Ltd. 20%

Shenzhen Emmelle Cloud Technology Co. Ltd. 20%

Fujian Huaxinbao Jewelry Co. Ltd. 20%

96Semi-Annual Report 2026

PutianKaipu Technology Partnership(LP) Divide first and then tax

Shenzhen Huabao Zhenxuan Jewelry Co. Ltd. 20%

Hainan Shenhua Industrial Co. Ltd. 20%

Shenzhen Cloud Preferred Jewelry Technology Co. Ltd. 20%

Hangzhou Huabaohui Digital Culture Co. ltd. 20%

Tibet Jinyaya Trading Co. Ltd. 20%

Zhenhua International Co. Ltd. 16.50%

Fujian Jinshengming Brand Management Co. Ltd. 25%

2. Tax preference

The subsidiaries Shenzhen Xinsen Precision Manufacturing Co. Ltd. Shenzhen Jiucheng Culture Technology

Co. Ltd. Shenzhen Jinjiucheng Intangible Cultural Heritage Inheritance Co. Ltd.Dongguan Xinsen Jewelry Co.Ltd.Shenzhen Emmelle Industrial Co. Ltd. Shenzhen Emmelle Cloud Technology Co. Ltd. Fujian Huaxinbao

Jewelry Co. Ltd. Shenzhen Cloud Preferred Jewelry Technology Co. Ltd. Hainan Shenhua Industrial Co. Ltd.Shenzhen Cloud Preferred Jewelry Technology Co. Ltd.Hangzhou Huabaohui Digital Culture Co. Ltd. and Tibet Jinyaya

Trading Co. Ltd.. meet the conditions of "small and low-profit enterprises" and according to the regulations of No.

12[2023] announcement of the State Administration of Taxation of the Ministry of Finance "Announcement on

Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial

Households" for small enterprises with small profit the income tax policy for the taxable income will be reduced

to be 25% to calculate and the enterprise income tax paid at the rate of 20% will be extended until December 312027.

3.Other

None

VII. Notes to Items in the Consolidated Financial Statements

1. Monetary fund

In RMB

Item Ending balance Opening balance

Cash on hand 24116.90 52322.40

Bank deposit 50310574.13 75413663.68

Other monetary fund 23778.10 8647.57

Total 50358469.13 75474633.65

Including: total amount deposited in

30400881.5535075.75

overseas

Other note：

The funds stored abroad are the monetary funds held overseas by the foreign subsidiary Shenhua International Co.Ltd.

97Semi-Annual Report 2026

2. Trading financial assets

In RMB

Item Ending balance Opening balance

Including:

Including:

Other note：

3. Derivative financial assets

In RMB

Item Ending balance Opening balance

Other note：

4. Note receivable

(1) Notes receivable listed by category

In RMB

Item Ending balance Opening balance

（2）By accrual of bad debt provision

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Balance Bad debt provision

Category Book Book

Amount Proporti Amount Proporti Amount Proporti Amount Proporti

value value

on(%) on(%) on(%) on(%)

Of which

Of which

Total 0.00

If the provision for bad debts of notes receivable is made in accordance with the general model of expected credit

losses please refer to the disclosure of other account receivable to disclose related information about bad-debt

provisions:

□Applicable □Not applicable

(3) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

In RMB

Current changes

Opening

Category Ending balance

balance Collected or Accrual Write off Other

reversal

Including important amount of bad debt provision collected or reversal in the period:

□Applicable □Not applicable

98Semi-Annual Report 2026

(4) Note receivable pledged at period-end

In RMB

Item Amount pledged at period-end

(5) Note receivable which have endorsed and discount at period-end and has not expired on balance sheet

date

In RMB

Item Amount derecognition at period-end Amount not derecognition at period-end

(6) Note receivable actually written-off in the period

In RMB

Item Amount written off

Including important note receivable written-off:

In RMB

Amount cause by

Amount written related

Enterprise Nature Causes Procedure

off transactions or not

(Y/N)

Explanation on note receivable written-off:

5. Account receivable

（1）Disclosure according to the aging of account

In RMB

Aging Balance in year-end Balance Year-beginning

Within one year(one year included) 272103225.88 205252446.94

1-2 years 667259.16 710689.79

2-3 years 281000.00 438098.60

Over 3 years 26504880.11 26261354.02

3-4 years 6877131.08 12171870.69

4-5 years 15817406.69 10764196.13

Over 5 years 3810342.34 3325287.20

Total 299556365.15 232662589.35

（2）According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Category Book Balance Bad debt provision Book Book Balance Bad debt provision Book

Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

99Semi-Annual Report 2026

on(%) on(%) on(%) on(%)

Accrual of

bad debt 263022 263022 263096 262660 43589.2

8.78%100.00%0.0011.31%99.83%

provision 37.31 37.31 37.31 48.03 8

by single

Including

：

Single

26302226302226309626266043589.2

identificati 8.78% 100.00% 0 11.31% 99.83%

37.3137.3137.3148.038

on

Accrual of

bad debt

273254111785272136206352161420204738

provision 91.22% 0.41% 88.69% 0.78%

127.843.09274.75952.045.44746.60

by

portfolio

Including

：

Aging 273254 111785 272136 206352 161420 204738

91.22%0.41%88.69%0.78%

portfolio 127.84 3.09 274.75 952.04 5.44 746.60

299556274200272136232662278802204782

Total 100.00% 9.15% 100.00% 11.98%

365.1590.40274.75589.3553.47335.88

Bad debt provision accrual on single basis: Single identification

In RMB

Opening balance Ending balance

Name Bad debt Bad debt Reason for

Book balance Book balance Accrual ratio

provision provision accrual

Guangshui

Expected to be

Jiaxu Energy

22019832.63 22019832.63 22019832.63 22019832.63 100.00% difficult to

Technology

recover

Co. Ltd.Suzhou

Daming Expected to be

Vehicle 867634.42 824045.14 866234.42 866234.42 100.00% difficult to

Industry Co. recover

Ltd.Suzhou Jiaxin Expected to be

Economic 888757.00 888757.00 888757.00 888757.00 100.00% difficult to

Trade Co. Ltd. recover

Dongguan

Expected to be

Daxiang New

521734.00 521734.00 515734.00 515734.00 100.00% difficult to

Energy Co.recover

Ltd.Ningbo

Fanxing New Expected to be

Energy 457112.34 457112.34 457112.34 457112.34 100.00% difficult to

Technology recover

Co. Ltd.Shijiazhuang Expected to be

Dasong Tech. 497064.00 497064.00 497064.00 497064.00 100.00% difficult to

Co. Ltd recover

Guangdong

Expected to be

Xinlingjia New

348136.00 348136.00 348136.00 348136.00 100.00% difficult to

Energy Co.recover

Ltd.Shanghai Swen Expected to be

250197.50250197.50250197.50250197.50100.00%

Electric Vehicle difficult to

100Semi-Annual Report 2026

Co. Ltd. recover

Fuzhou Dayang Expected to be

Commercial 147804.28 147804.28 147804.28 147804.28 100.00% difficult to

Co. Ltd. recover

Tianjin Huiju Expected to be

Electric Vehicle 116840.14 116840.14 116840.14 116840.14 100.00% difficult to

Co. Ltd. recover

Expected to be

Other 194525.00 194525.00 194525.00 194525.00 100.00% difficult to

recover

Total 26309637.31 26266048.03 26302237.31 26302237.31

Bad debt provision accrual on portfolio: Aging portfolio

In RMB

Ending balance

Name of the Company

Book balance Bad debt provision Accrual ratio

Within 1 year 272103225.88 43969.46 0.02%

1-2 years 667259.16 595747.45 89.28%

2-3 years 281000.00 275493.38 98.04%

3-4 years 180342.80 180342.80 100.00%

4-5 years 22300.00 22300.00 100.00%

Over 5 years

Total 273254127.84 1117853.09

Explanation on portfolio basis:

None

If the provision for bad debts of account receivable is made in accordance with the general model of expected credit

losses please refer to the disclosure of other account receivable to disclose related information about bad-debt

provisions:

□Applicable□Not applicable

(3) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

In RMB

Current changes

Opening

Category Collected or Ending balance balance Accrual Write off Other

reversal

Accounts

receivable with

individual 26266048.03 36189.28 26302237.31

provision for

bad debts

Provision for

bad debts based

on a portfolio 1614205.44 496352.35 1117853.09

of credit risk

characteristics

Total 27880253.47 36189.28 496352.35 27420090.40

Including important amount of bad debt provision collected or reversal in the period:

101Semi-Annual Report 2026

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

(4)Account receivables actually write-off during the reporting period

In RMB

Item Amount written off

Including major account receivables write-off:

In RMB

Amount cause by

Amount written related

Enterprise Nature Causes Procedure

off transactions or not

(Y/N)

Explanation on account receivable write-off:

（5）The top five accounts receivable and contract assets at the end of the period aggregated according to

debtor

In RMB

Ending balance of

Proportion to the

accounts

Ending balance of total ending

Ending balance of receivable bad

Name of the Ending balance of accounts balance of

accounts debt provision and

organization contract assets receivable and accounts

receivable contract asset

contract assets receivable and

impairment

contract assets

provision

Fuzhou Rongrun

53925980.4953925980.4918.00%5392.60

Jewelry Co. Ltd

Shenzhen

Yunshang Jewelry 48772266.82 48772266.82 16.28% 4877.23

Co. Ltd

Fuzhou

Zhuanjinsen 44202155.52 44202155.52 14.76% 5299.18

Jewelry Co. Ltd.Fuzhou Congshan

Dingjue Jewelry 33750941.10 33750941.10 11.27% 3369.09

Company

Shenzhen

Hualenglong

Jewelry Culture 25638825.34 25638825.34 8.56% 16567.30

Technology Co.Ltd.Total 206290169.27 0.00 206290169.27 68.87% 35505.40

102Semi-Annual Report 2026

6. Contract assets

(1) Information of contract assets

In RMB

Ending balance Opening balance

Item Bad debt Bad debt

Book balance Book value Book balance Book value

provision provision

Total

(2) The significant amount change in book value during the reporting period and its reason

In RMB

Item The amount of change Reason for change

（3） According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Book Balance Bad debt provision Book

Category

Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Inducing

Including

Provision for bad debts is made according to the general model of expected credit losses

□Applicable □Not applicable

(4) Bad debt provision accrual collected or reversal in the period

In RMB

Item Accrual Collected or reversal Write off Reason

Thereinto the important amount of bad debt provision recovered or reversed in the current period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note：

（5） Contract assets actually written off in the current period

In RMB

Item Amount written off

Including important Contract asset written-off:

In RMB

103Semi-Annual Report 2026

Whether the

Write-off payment is

Reason for write-

Name Nature of amount Write-off amount procedures for generated by a

off

fulfillment related party

transaction

Write-off explanation:

Other note：

7. Receivable financing

（1） Classification of receivables financing

In RMB

Item Ending balance Opening balance

（2） According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Book Balance Bad debt provision Book

Category

Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Inducing

Including

Provision for bad debts is made according to the general model of expected credit losses

In RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

January 1 2026

balance in the current

period

The basis for the division of each stage and the proportion of bad debt provision

Explanation of the significant changes in the book balance of receivables financing with changes in loss

provisions in the current period:

（3） Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category

balance Collected or

Ending balance

Accrual Write off Other

reversal

In RMB

Name of the Amount recovered or Reason for reversal Recovery method The basis and

104Semi-Annual Report 2026

organization reversed rationality for

determining the

provision ratio of

original bad debt

provision

Other note：

（4）Financing of accounts receivable pledged by the Company at the end of the period

In RMB

Item Pledged amount at the end of the period

（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the end

of the period and have not yet matured on the balance sheet date

In RMB

The amount of derecognition at the end The amount not derecognized at the end

Item

of the period of the period

（6） Financing situation of accounts receivable actually written off in this period

In RMB

Item Write-off amount

The write off information of important accounts receivable financing thereinto

In RMB

Whether the

Write-off payment is

Reason for write-

Name Nature of amount Write-off amount procedures for generated by a

off

fulfillment related party

transaction

Write-off explanation:

(7) Changes in accounts receivable financing and fair value changes in the current period

（8）Other note

None

8. Other account receivable

In RMB

Item Ending balance Opening balance

Other account receivable 960894.71 818967.94

Total 960894.71 818967.94

105Semi-Annual Report 2026

(1) Interest receivable

1) Category

In RMB

Item Ending balance Opening balance

2) Important overdue interest

In RMB

Impairment (Y/N) and

Borrower Ending balance Overdue time Overdue reason

judgment basis

Other note:

3) Accrual of bad debt provision

□Applicable □Not applicable

4） Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category Collected or Ending balance balance Accrual Write off Other

reversal

Including important amount of bad debt provision collected or reversal in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note：

5)Interest receivable actually written off in the current period

In RMB

Item Write-off amount

Important Interest receivables write-offs thereinto

In RMB

Whether the

Write-off payment is

Name Nature of amount Write-off amount Write-off reason procedures for generated by a

fulfillment related party

transaction

106Semi-Annual Report 2026

Note：

Other note：

(2) Dividend receivable

1) Category

In RMB

Item (or the invested entity) Closing balance Opening balance

2) Important dividend receivable with over one year aged

In RMB

Item (or the invested Causes of failure for Impairment (Y/N) and

Ending balance Account age

entity) collection judgment basis

3) Accrual of bad debt provision

□Applicable □Not applicable

4） Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category Ending balance

balance Collected or Accrual Write off Other

reversal

Including important amount of bad debt provision collected or reversal in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note：

5) Dividends receivable actually written off in the current period

In RMB

Item Write-off amount

Important dividend receivables write-offs thereinto

In RMB

Whether the

Write-off

payment is

Name Nature of amount Write-off amount Write-off reason procedures for

generated by a

fulfillment

related party

107Semi-Annual Report 2026

transaction

Note：

Other note：

（3） Other accounts receivable

1) Other accounts receivable classified by the nature of accounts

In RMB

Nature Closing book balance Opening book balance

Deposit or margin 800697.86 827683.86

Personal loan of employees 171236.27 18087.32

Payment for equipment 311400.00 311400.00

Current account 135768.43 88786.79

Other 28973.64 82147.83

Total 1448076.20 1328105.80

2）By account aging

In RMB

Aging Ending book balance Opening book balance

Within one year(one year included) 551708.07 314322.50

1-2 years 210000.00 329068.00

2-3 years 316358.33 279484.30

Over 3 years 370009.80 405231.00

3-4 years 9109.80 28500.00

4-5 years 360900.00 376731.00

Over 5 years 1448076.20 1328105.80

Total

3) Accrual of bad debt provision

□Applicable □Not applicable

In RMB

Amount in year-end Balance Year-beginning

Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book

y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Including

Accrual

of bad

debt 144807 487181. 960894. 132810 509137. 818967.

100.00%33.64%100.00%38.34%

provisio 6.20 49 71 5.80 86 94

n by

portfolio

Including

Aging 144807 487181. 960894. 132810 509137. 818967.

100.00%33.64%100.00%38.34%

portfolio 6.20 49 71 5.80 86 94

144807487181.960894.132810509137.818967.

Total 100.00% 33.64% 100.00% 38.34%

6.2049715.808694

Bad debt provision accrual on portfolio: Aging portfolio

108Semi-Annual Report 2026

In RMB

Ending balance

Name of the Company

Book balance Bad debt provision Accrual ratio

Within one year(one year

551708.0734150.736.19%

included)

1-2 years( Two years

210000.0023709.0011.29%

included)

2-3 years(Three years

316358.3359311.9618.75%

incl8ded)

3－4 years(Four years

9109.809109.80100.00%

included)

4－5 years(Five years

included)

Over 5 years included ) 360900.00 360900.00 100.00%

Total 1448076.20 487181.49

Provision for bad debts is made according to the general model of expected credit losses

In RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

Balance on January 1

509137.86509137.86

2026

January 1 2026

balance in the current

period

Reversal in Current

21956.3721956.37

Year

Balance on June 30

487181.49487181.49

2026

The basis for the division of each stage and the proportion of bad debt provision

Explanation of the significant changes in the book balance of receivables financing with changes in loss

provisions in the current period:

□Applicable □Not applicable

4）Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

In RMB

Current changes

Opening

Category

balance Collected or

Ending balance

Accrual Write off Other

reversal

Provision for

bad debts

according to the 509137.86 21956.37 487181.49

combination of

credit risk

Total 509137.86 21956.37 487181.49

109Semi-Annual Report 2026

Important amount of bad debt provision switch-back or collection in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

5） Other account receivables actually write-off during the reporting period

In RMB

Item Amount written off

Including major other account receivables write-off:

In RMB

Amount cause by

Amount written related

Enterprise Other Nature Causes Procedure

off transactions or not

(Y/N)

Other Note on account receivable write-off:

6） Top 5 other account receivable collected by arrears party at ending balance

In RMB

Proportion in total

other account Ending balance of

Enterprise Nature Ending balance Account age

receivables at bad bet provision

period-end

Shenzhen Luwei

Mechatronic Payment for

300000.00 Over 5 years 20.72% 300000.00

Equipment Co. equipment

Ltd

Shenzhen Luohu

City Within 1 year/2-3

Margin or deposit 285257.66 19.70% 34970.21

Development years

Co. Ltd.Zhou Liu Fu E-

Margin or deposit 100000.00 1-2 years 6.91% 11286.12

commerce Co. Ltd

Chow Tai Seng

Margin or deposit 100000.00 1-2 years 6.91% 11286.12

Jewelry Co. Ltd.Alipay Payment

Technology Co. Margin or deposit 70000.00 Within 1 year 4.83% 4811.25

Ltd

Total 855257.66 59.07% 362353.70

7) Reported in other receivables due to centralized management of funds

Other note：

110Semi-Annual Report 2026

9. Accounts paid in advance

(1) Accounts paid in advance by ageing

In RMB

Ending balance Opening balance

Account age

Amount Ratio Amount Ratio

Within one year 1150013.93 100.00% 1094841.65 99.92%

1-2 years 840.31 0.08%

Total 1150013.93 1095681.96

Explanation on un-settlement in time for advance payment with over one year account age and major amounts:

None

(2) Top 5 advance payment at ending balance by prepayment object

Name Ending balance Ratio in total advance e payment(%)

Zhou Liu Fu E-commerce Co. Ltd 729530.00 63.44

Shenzhen Cuilu Gold Business 305508.95 26.57

Shenzhi Shield Security Group Co. Ltd. – Shenzhen Branch 111750.00 9.72

Longgang Zhongxing Printing Co. Ltd. 2400.00 0.21

Dongguan Jinhaoxuan Jewelry Co. Ltd. 57.27 0

Total 1149246.22 99.93

Other note：

10. Inventory

Whether companies need to comply with the disclosure requirements of the real estate industry

No

(1)Category

In RMB

Ending balance Opening balance

Provision for Provision for

inventory inventory

depreciation or depreciation or

Item contract contract

Book balance Book value Book balance Book value

performance performance

cost cost

impairment impairment

provision provision

Raw materials 73198111.26 2688069.54 70510041.72 94528913.32 1248584.67 93280328.65

Goods

70063423.541806452.5868256970.9658132804.56529384.4857603420.08

inventory

Consigned

5830197.865830197.8633806558.6133806558.61

processing

111Semi-Annual Report 2026

materials

Total 149091732.66 4494522.12 144597210.54 186468276.49 1777969.15 184690307.34The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen StockExchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”

（2）Data resources recognized as inventory

In RMB

Inventory of Inventory of self Inventory of data

Item outsourced data processed data resources obtained by Total

resources resources other means

(3)Provision for inventory depreciation or contract performance cost impairment provision

In RMB

Current increased Current decreased

Opening

Item Switch back or Ending balance balance Accrual Other Other

charge-off

Raw materials 1248584.67 1439484.87 2688069.54

Goods

529384.484450987.843173919.741806452.58

inventory

Total 1777969.15 5890472.71 3173919.74 4494522.12

Provision for inventory price decline that is made on a portfolio basis

In RMB

End of period Beginning of period

Portfolio Name Proportion of Proportion of Provision for Opening Provision for

Ending balance provision for provision for

price decline balance price decline

price decline price decline

The standard for accruing the provision for inventory price decline by portfolio

(4) The explanation of the ending balance of the inventory contains the capitalized amount of borrowing

costs

(5) Explanation of the amortization amount of contract performance costs for the current period

11. Assets held for sale

In RMB

Expected

Ending book Impairment Ending book Expected

Item Fair value disposal

balance provision value disposal time expenses

Other note:

112Semi-Annual Report 2026

12. Non-current asset due within one year

In RMB

Item Ending balance Opening balance

（1） Debt investment due within one year

□Applicable □Not applicable

（2）Other Debt investment due within one year

□Applicable □Not applicable

13. Other current assets

In RMB

Item Ending balance Opening balance

Input tax to be deducted 238604.61 270698.32

To be certified input tax 2830.19

Advance payment of enterprise income

261797.7198531.76

tax

Tax amount to be received 750363.89

Total 1250766.21 372060.27

Other note：

14. Debt investment

（1）Debt investment

In RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Changes in impairment provisions for debt investments in the current period

In RMB

Increase in the current Decrease in the current

Item Opening balance Ending balance

period period

（2）Important debt investment

In RMB

Ending balance Opening balance

Debt

investment Coupon Coupon Face value Actual rate Due date Face value Actual rate Due date

rate rate

（3）Accrual of impairment provision

In RMB

Phase I Phase II Phase III

Bad debt provision Total

Expected credit losses Expected credit losses Expected credit losses

113Semi-Annual Report 2026

over next 12 months for the entire duration for the entire duration

(without credit (with credit impairment

impairment occurred) occurred)

January 1 2026

balance in the current

period

The basis for the division of each stage and the proportion of bad debt provision

(4) Information of debt investment actually written off in the current period

In RMB

Item Write-off amount

Information of write-off of important debt investments thereinto

Debt Investment Write-off Explanation:

Change of book balance of loss provision with amount has major changes in the period

□Applicable □Not applicable

Other note：

15. Other debt investment

（1）Other debt investment

In RMB

Cumulative

loss

Change of impairment

Cumulative

Opening Accrued fair value Ending recognized

Item Cost changes of Note

balance interest in the balance in other fair value

period comprehen

sive

income

Changes in provision for impairment of other debt investments in the current period

In RMB

Increase in the current Decrease in the current

Item Opening balance Ending balance

period period

（2）Important debt investment

In RMB

Ending balance Opening balance

Debt

investment Coupon Coupon Face value Actual rate Due date Face value Actual rate Due date

rate rate

（3）Accrual of impairment provision

In RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

January 1 2026

114Semi-Annual Report 2026

balance in the current

period

The basis for the division of each stage and the proportion of bad debt provision

（4）Other debt investments actually written off during the period

In RMB

Item Write-off amount

Other important debt investment write-offs thereinto

Explanation for write-off of other debt investments:

Change of book balance of loss provision with amount has major changes in the period

□Applicable □Not applicable

Other note：

16. Investment in other equity instrument

In RMB

Reason for

Accumulat Accumulat designated

Gains Loss ed gains ed losses in fair

recognized recognized recognized recognized Dividend value

in other in other in other in other income measureme

Ending Opening comprehen comprehen comprehen comprehen recognized nt with

Item name

balance balance sive sive sive sive in the changes

income for income for income at income at current recognized

the current the current the end of the end of period in other

period period the current the current comprehen

period period sive

income

Derecognition incurred in the current period

In RMB

Accumulated gains Accumulated losses

Item name transferred to retained transferred to retained Reason for derecognition

earnings earnings

Itemized disclosure of investments by non-trading equity instruments for the current period

In RMB

Reason for

Amount of designated in Reason for

other fair value other

Recognized comprehensive measurement comprehensive

Item name dividend Accrued gains Accrued losses income with changes income

income transferred to recognized in transferred to

retained other retained

earnings comprehensive earnings

income

Other note：

115Semi-Annual Report 2026

17. Long-term account receivable

(1)Long-term account receivable

In RMB

Ending balance Opening balance

Discount rate

Item Bad debt Bad debt

Book balance Book value Book balance Book value interval

provision provision

（2） According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Book Balance Bad debt provision Book

Category

Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Inducing

Including

Provision for bad debts is made according to the general model of expected credit losses

In RMB

Phase I Phase II Phase II

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

January 1 2026

balance in the current

period

The basis for the division of each stage and the proportion of bad debt provision

(3) Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category

balance Collected or

Ending balance

Accrual Write off Other

reversal

The important amount of bad debt provisions reversed or recovered in the current period thereinto:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note：

(4)Long-term receivables actually written off in the current period

In RMB

116Semi-Annual Report 2026

Item Write-off amount

Important long-term accounts receivable write-off status thereinto:

In RMB

Whether the

Write-off payment is

Name of

Amount Nature Write-off amount Write-off reason procedures for generated by a

Organization

fulfillment related party

transaction

Explanation of write-off of long-term receivables:

18. Long-term equity investment

In RMB

Changes in the period (+ -)

Impair

Ending

ment Other Invest Cash Ending balanc

Investe Beginn provisi compr Accruament divide

Additi ehensi l of balanc e of d ing on Capital gains Other nd or e(Boo impair

enterpr balanc begin- onal ve impairreducti recogn equity profit Other k ment

ise e year invest incom ment on ized change annou

balanc ment e provisi

value) provisi

under nced to

e adjust on

on

equity issued

ment

I. Joint venture

II. Associated enterprise

Shenz

hen

Xinxu

an

325.34325.340.00

Techn

ology

Co.Ltd.Subtot

325.34325.340.00

al

Total 325.34 325.34 0.00

The recoverable amount is determined on the basis of the net amount of fair value less disposal costs

□Applicable □Not applicable

The recoverable amount is determined by the present value of the projected future cash flows

□Applicable □Not applicable

The reason for the obvious discrepancy between the foregoing information and the information used in the

impairment test of previous years or the external information

The reason for the obvious discrepancy between the information used in the Company's impairment test in

previous years and the actual situation in the current year

Other note

19. Other non-current financial assets

In RMB

117Semi-Annual Report 2026

Item Ending balance Opening balance

Other note：

20. Investment real estate

(1)Investment real estate measured at cost

□Applicable □Not applicable

(2)Investment real estate measured at fair value

□Applicable □Not applicable

(3) Converted to investment real estate and measured at fair value

In RMB

Accounting Impact on other

Reason for Approval Impact on

Item accounts before Amount comprehensive

conversion procedures profit and loss

conversion income

（4）Investment real estate without property rights certificate

In RMB

Reasons for failing to complete the

Item Book value

property rights certificate

Other note:

21.Fixed assets

In RMB

Item Ending balance Opening balance

Fixed assets 3665394.79 2792361.64

Total 3665394.79 2792361.64

（1） Fixed assets

In RMB

Electronic

Houses and Machinery Means of

Item equipment and Total

buildings equipment transportation

others

I. Original book

value:

1.Opening balance 2959824.00 1540963.30 1513248.07 372040.87 6386076.24

2.Current

146376.26909203.541055579.80

increased

(1)Purchase 146376.26 909203.54 1055579.80

(2)Construction in

progress transfer-

118Semi-Annual Report 2026

in

(3)The increase in

business

combination

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance 2959824.00 1687339.56 2422451.61 372040.87 7441656.04

II. Accumulated

depreciation

1.Opening balance 1265324.76 426043.14 961876.83 210864.12 2864108.85

2.Current

55496.7049803.5155237.1522009.29182546.65

increased

(1)Accrual 55496.70 49803.51 55237.15 22009.29 182546.65

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance 1320821.46 475846.65 1017113.98 232873.41 3046655.50

III. Impairment

729605.75729605.75

provision

1.Opening balance

2.Current

increased

(1)Accrual

3.Current

decreased

(1) Disposal or

scrap

4.Ending balance 729605.75 729605.75

IV. Book value

1.Ending book

1639002.54481887.161405337.63139167.463665394.79

value

2.Opening book

1694499.24385314.41551371.24161176.752792361.64

value

(2)Fixed assets temporary idle

In RMB

Original book Accumulated Impairment

Item Book value Note

value depreciation provision

Machinery 1044247.81 314642.06 729605.75 The lithium battery

119Semi-Annual Report 2026

equipment equipment stored

in the Guangshui

Jiaxu factory is in

an idle state

(3)Fixed assets leasing-out by operational lease

In RMB

Item Ending book value

(4)Fixed assets without property rights certificate

In RMB

Reasons for failing to complete the

Item Book value

property rights certificate

The six properties of Lianxin Garden 7-

20F with original value of 2959824.00

Yuan. The property purchasing refers to

the indemnificatory housing for

enterprise talent buying from Shenzhen

Housing and Construction Bureau of

Six properties in Lianxin Garden 1639002.54

Luohu District. According to the

agreement the enterprise shall not

carrying any kind of property trading

with any units or individuals except the

government and the company has no

property certification on the above

Other note：

(5) Information of impairment test of fixed assets

□Applicable □Not applicable

（6） liquidation of fixed assets

In RMB

Item Ending balance Opening balance

Other note：

22. Construction in progress

In RMB

Item Ending balance Opening balance

（1）Construction in progress

In RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

120Semi-Annual Report 2026

（2）Changes in significant construction in progress

In RMB

includi

Accum

Fixed Propor ng: Interes

Other ulated

Openi Curren assets tion of interes t

decrea Ending amounproject t capital

ng t transfe Progre t of Source of

Item Budget sed in balanc invest capital ization

balanc increas r-in in ss interes funds

the e ment ized rate of

e ed the t

Period in amoun the capital

Period budget t of the year

ization

year

(3)Provision for impairment of construction in progress in the current period

In RMB

Item Opening balance Increase Decrease Ending balance Reason

Other note：

（4） Information of impairment test of construction in progress

□Applicable □Not applicable

(5)Engineering materials

In RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Other note:

23. Productive biological asset

(1)Productive biological assets measured by cost

□Applicable □Not applicable

（2） Impairment test of productive biological assets using cost measurement mode

□Applicable □Not applicable

（3）Productive biological assets measured by fair value

□Applicable□Not applicable

24. Oil and gas asset

□Applicable□Not applicable

121Semi-Annual Report 2026

25.Right-of-use assets

（1）Right-of-use assets

In RMB

Item Houses and buildings Total

I. Original book value

1.Opening balance 6220679.84 6220679.84

2.Current increased

3.Current decreased

4.Ending balance 6220679.84 6220679.84

II. Accumulated depreciation

1.Opening balance 3921375.03 3921375.03

2.Current increased 206964.98 206964.98

(1)Accrual 206964.98 206964.98

3.Current decreased

(1) Disposal

4.Ending balance 4128340.01 4128340.01

III. Impairment provision

1.Opening balance

2.Current increased

(1)Accrual

3.Current decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending book value 2092339.83 2092339.83

2.Opening book value 2299304.81 2299304.81

（2） Information of impairment test of right-of-use assets

□Applicable □Not applicable

Other note：

26. Intangible assets

(1)Intangible assets

In RMB

Item Land use right Patent Non-patent Total

122Semi-Annual Report 2026

technology

I. Original book

value

1.Opening balance

2.Current

increased

(1)Purchase

(2) Internal R & D

(3)The increase in

business

combination

3.Current

decreased

(1) Disposal

4.Ending balance

II. Accumulated

depreciation

1.Opening balance

2.Current

increased

(1)Accrual

3.Current

decreased

(1) Disposal

4.Ending balance

III. Impairment

provision

1.Opening balance

2.Current

increased

(1)Accrual

3.Current

decreased

(1) Disposal

4.Ending balance

IV. Book value

1.Ending book

value

2.Opening book

value

Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end

123Semi-Annual Report 2026

(2)Data resources recognized as intangible assets

□Applicable □Not applicable

(3)Land use right without certificate of title completed

In RMB

Reasons for failing to complete the

Item Book value

property rights certificate

Other note：

（4）Information of impairment test of intangible assets

□Applicable □Not applicable

27. Goodwill

(1)Original book value of goodwill

In RMB

Current increased Current decreased

The invested Opening Resulted by Ending balance

entity or items balance enterprise Dispose

combination

Total

(2)Goodwill Impairment provision

In RMB

The invested Opening Current increased Current decreased

Ending balance

entity or items balance Accrual Dispose

Total

（3）Information about the asset group or asset group portfolio to which the goodwill belongs

The composition and basis of

Affiliated business segments Whether it is consistent with

Name the asset group or portfolio to

and basis previous years

which it belongs

Changes in the asset group or portfolio of asset groups

Composition before the Objective facts and basis for

Name Composition after the change

change change

Other note

(4) The specific method of determining the recoverable amount

The recoverable amount is determined on the basis of the net amount by fair value less disposal costs

124Semi-Annual Report 2026

□Applicable □Not applicable

The recoverable amount is determined by the present value of the projected future cash flows

□Applicable □Not applicable

The reason for the obvious discrepancy between the foregoing information and the information used in the

impairment test of previous years or the external information

The reason for the obvious discrepancy between the information used in the Company's impairment test in

previous years and the actual situation in the current year

(5) Status of completion of performance commitment and corresponding goodwill impairment

When goodwill is formed there is a performance commitment and the reporting period or the previous period in

the reporting period is within the performance commitment period

□Applicable □Not applicable

Other note：

28. Long-term expenses to be apportioned

In RMB

Amortized in the

Item Opening balance Current increased Other decrease Ending balance

Period

Other note：

29. Deferred income tax asset /Deferred income tax liabilities

(1) Deferred income tax assets without offset

In RMB

Ending balance Opening balance

Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax

difference asset difference asset

Asset impairment

24151451.526037862.8821917379.765479344.95

provision

Lease Liabilities 2410979.10 602744.78 3094978.81 773744.70

Total 26562430.62 6640607.66 25012358.57 6253089.65

(2) Deferred income tax liabilities without offset

In RMB

Ending balance Opening balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

differences liabilities differences liabilities

Right to use assets 2092339.83 523084.96 2299304.81 574826.20

Total 2092339.83 523084.96 2299304.81 574826.20

(3) Deferred income tax assets and deferred income tax liabilities listed after off-set

In RMB

125Semi-Annual Report 2026

Ending balance of Trade-off between the Opening balance of

Trade-off between the

deferred income tax deferred income tax deferred income tax

Item deferred income tax

assets or liabilities after assets and liabilities at assets or liabilities after

assets and liabilities

off-set period-begin off-set

Deferred income tax

523084.966117522.70574826.205678263.45

asset

Deferred income tax

523084.96574826.20

liabilities

(4) Details of deferred income tax assets without recognized

In RMB

Item Ending balance Opening balance

Deductable temporary difference 9446500.56 9446500.56

Deductable loss 4453133.02 4453133.02

Total 13899633.58 13899633.58

(5) Deductible losses of un-recognized deferred income tax assets expired on the followed year

In RMB

Year Ending amount Opening amount Note

2025 501170.19 Deductable loss in 2020

2026 303110.98 303426.68 Deductable loss in 2021

2027 391287.51 391287.51 Deductable loss in 2022

2028 5645.86 5645.86 Deductable loss in 2023

2029 1029806.57 1669632.68 Deductable loss in 2024

2030 2718149.08 Deductable loss in 2025

No Expiration date

5133.02（Hongkong Enterprise）

Total 4453133.02 2871162.92

Other note：

30. Other non-current assets

In RMB

Ending balance Opening balance

Item Impairment Impairment

Book balance Book value Book balance Book value

provision provision

Other note：

31. Assets with restricted ownership or right to use

In RMB

End of period Beginning of period

Item Restricted Restricted Book Restricted Book Restricted

Book value circumstan Book value circumstan

balance type balance type

ce ce

For the For the

talent talent

housing housing

Fixed 2959824.0 1639002.5 2959824.0 1694499.2

Other purchased Other purchased

assets 0 4 at a low 0 4 at a low

price price

Shenzhen Shenzhen

126Semi-Annual Report 2026

China China

cannot cannot

apply for a apply for a

certificate certificate

and the and the

disposal disposal

can only be can only be

repurchase repurchase

d by the d by the

governmen governmen

t t

2959824.01639002.52959824.01694499.2

Total

0404

Other note：

32. Short-term loans

(1)Category

In RMB

Item Ending balance Opening balance

Credit loans 18800000.00 23450000.00

Total 18800000.00 23450000.00

Explanation on short-term loans category:

Note 1：Shenzhen China Bicycle Company (Holdings) Limited entered into a working capital loan agreement with

the Bank of Communications Shenzhen Branch on November 172025 with a loan term from November 25 2025

to November 17 2026 and an loan balance of RMB 8800000.00 as of June 30 2026. The purpose is to repay

the loan from Bank of Communications.Note 2：Shenzhen China Bicycle Company (Holdings) Limited entered into a working capital loan agreement with

the China CITIC Bank of Shenzhen Branch on March 272026 with a loan term from June 27 2026 to December

16 2026 and an loan balance of RMB 10000000.00 as of December 31 2025. This loan is a credit loan The

purpose is to pay for the goods.

(2) Overdue outstanding short-term loans

Total 0.00 Yuan overdue outstanding short-term loans at period-end including the followed significant amount:

In RMB/

Borrower Ending balance Lending rate Overdue time Overdue rate

Other note:

33. Transactional financial liabilities

In RMB/

Item Closing balance Opening balance

Including：

Including：

127Semi-Annual Report 2026

Total 0 0

Other note:

34. Derivative financial liability

In RMB

Items Closing balance Opening balance

Total 0 0

Other note:

35. Note payable

In RMB

Category Ending balance Opening balance

Notes expired at period-end without paid was 0.00 Yuan.

36. Account payable

(1)Account payable

In RMB

Item Ending balance Opening balance

Within one year(one year included) 6057787.53 1446101.39

1-2 years (2 years included) 106791.28

2-3 years (3 years included) 1362525.33

Over 3 years 335432.00 451838.93

Total 6393219.53 3367256.93

(2)Important account payable with account age over one year

In RMB

Reasons for non-reimbursement or carry-

Item Ending balance

forward

Other note:

37.Other account payable

In RMB

Item Ending balance Opening balance

Other account payable 36787467.45 43263973.18

Total 36787467.45 43263973.18

(1) Interest payable

In RMB

Item Ending balance Opening balance

128Semi-Annual Report 2026

Important overdue interest

In RMB

Unit Overdue amount Overdue reason

Other note:

(2) Dividend Payable

In RMB

Item Ending balance Opening balance

Other explanation:including dividends payable with over one year age and disclosure un-payment reasons

（3）Other account payable

1) By nature

In RMB

Item Ending balance Opening balance

Custodian and common benefit debts 27699416.46 29193228.46

Warranty and guarantee money 1468660.00 1468660.00

Intercourse funds 6500000.00 11090285.30

Payment 794544.96 1404616.54

Collection and payment 87581.87 81610.29

Other 237264.16 25572.59

Total 37237467.45 43263973.18

2)Significant other payable with over one year age

In RMB

Reasons for non-reimbursement or carry-

Item Ending balance

forward

Custodian and common benefit debts 27699416.46

Shenzhen Guocheng Energy Investment

6500000.00 Intercourse funds

Development Co. Ltd.Total 34199416.46

Other note:

38. Accounts received in advance

(1) Accounts received in advance

In RMB

Item Ending balance Opening balance

(2) Account received in advance with over one year book age

In RMB

Item Ending balance Reasons for non-reimbursement or carry-

129Semi-Annual Report 2026

forward

Other note:

39. Contractual liability

In RMB

Item Ending balance Opening balance

Sales contract-related matters 56953.17 67520.83

Total 56953.17 67520.83

Contractual liability in advance with over one year book age

In RMB

Reasons for non-reimbursement or carry-

Item Ending balance

forward

Book value has major changes in the period and causes

In RMB

Item Amount changes Reason for change

40. Wage payable

(1) Wage payable

In RMB

Item Opening balance Current increased Current decreased Ending balance

I. Short-term

1428188.474847821.475277923.55998086.39

compensation

II. Post-employment

benefit-Defined 479189.52 479189.52

contribution plan

Total 1428188.47 5327010.99 5757113.07 998086.39

(2) Short-term compensation

In RMB

Item Opening balance Current increased Current decreased Ending balance

1. Wages bonus

1422905.894430867.614860969.69992803.81

allowances and subsidy

2. Employee benefits 13888.00 13888.00

3. Social insurance 177817.88 177817.88

Including: Medical

155224.43155224.43

insurance

Work injury insurance 15594.24 15594.24

Maternity insurance 18450.12 18450.12

130Semi-Annual Report 2026

4. Housing

193722.60193722.60

accumulation fund

5. Labor union

expenditure and

5282.5831525.3831525.385282.58

personnel education

expense

Total 1428188.47 4847821.47 5277923.55 998086.39

(3) Defined contribution plan

In RMB

Item Opening balance Current increased Current decreased Ending balance

1. Basic endowment

459844.80459844.80

insurance

2. Unemployment

19344.7219344.72

insurance

Total 479189.52 479189.52

Other note:

41. Taxes payable

In RMB

Item Ending balance Opening balance

VAT 3411311.79 3185110.99

Consumption tax 3668.16 3668.14

Enterprise income tax 3166864.12 5825705.49

Individual income tax 36150.48 40105.99

City maintenance & construction tax 59264.27 196433.82

Stamp tax 41303.61 52339.47

Educational surtax 42337.68 140272.46

Total 6760900.11 9443636.36

Other note：

42. Liability held for sale

In RMB

Item Ending balance Opening balance

Other note:

43. Non-current liabilities due within one year

In RMB

Item Ending balance Opening balance

Lease liabilities due within one year 1472527.22 1432886.46

Total 1472527.22 1432886.46

Other note:

131Semi-Annual Report 2026

44. Other current liabilities

In RMB

Item Ending balance Opening balance

VAT received in advance 19189.72 8777.82

Total 19189.72 8777.82

Changes of short-term bond payable:

In RMB

Accru

Issuin Openi

Premi

al Endin Whet

Relea Issued um/di Paid

Face Intere Bond g ng intere g her

Bond se in the scount in the

value st rate period amou balanc st by date Period amorti Period balanc defaul

nt e face zation e t

value

Total

Other note:

45. Long-term loans

(1)Category

In RMB

Item Ending balance Opening balance

Explanation on category of long-term loans:

Other note: including interest rate section

46. Bonds payable

(1) Bonds payable

In RMB

Item Ending balance Opening balance

(2) Changes of bonds payable (not including the other financial instrument of preferred stock and

perpetual capital securities that classify as financial liability)

In RMB

Accru

Issuin Openi

Premi

al Endin Whet

Relea Issued um/di Paid

Face Intere Bond g ng intere g her

Bond se in the scount in the

value st rate period amou balanc st by date Period amorti Period balanc defaul

nt e face zation e t

value

Total —— ——

132Semi-Annual Report 2026

(3) Convertible conditions and time for shares transfer for the convertible bonds

(4) Other financial instruments classify as financial liability

Outstanding other financial instruments as preferred stock and perpetual bonds at period-end

Changes of the outstanding financial instruments as preferred stock and perpetual bonds at period-end

In RMB

Outstandin Period-begin Current increased Current decreased Period-end

g financial

instrument Amount Book value Amount Book value Amount Book value Amount Book value

Basis for financial liability classification for other financial instrument

Other note:

47. Lease liability

In RMB

Item Ending balance Opening balance

Lease payment amount 2484835.22 3218151.98

Including：Within 1 year 1549272.43 1520877.84

1-2 years 935562.79 1566422.00

2-3 years 130852.14

Over 3 years

Unrecognized financing charges -73856.12 -123173.17

Including：Within 1 year -62497.96 -87991.38

1-2 years -11358.16 -34790.40

2-3 years -391.39

Over 3 years

Reclassified to lease liabilities due within

1472527.22-1432886.46

one year

Total 938451.88 1662092.35

Other note:

48. Long-term account payable

In RMB

Item Ending balance Opening balance

(1) Nature of long-term account payable

In RMB

Item Ending balance Opening balance

Other note:

(2) Special payable

In RMB

Item Opening balance Current increased Current decreased Ending balance Causes

133Semi-Annual Report 2026

Other note:

49. Long-term wages payable

(1) Long-term wages payable

In RMB

Item Ending balance Opening balance

(2) Changes of defined benefit plans

Present value of the defined benefit plans:

In RMB

Item Current period incurred Prior period incurred

Scheme assets:

In RMB

Item Current period incurred Prior period incurred

Net liability (assets) of the defined benefit plans

In RMB

Item Current period incurred Prior period incurred

Content of defined benefit plans and relevant risks impact on future cash flow of the Company as well as times

and uncertainty:

Major actuarial assumption and sensitivity analysis:

Other note:

50. Accrual liability

In RMB

Item Ending balance Opening balance Causes

Pending litigation 446600.00

Total 446600.00

Other explanation including relevant important assumptions and estimation:

51. Deferred income

In RMB

Item Opening balance Current increased Current decreased Ending balance Causes

Other note:

52. Other non-current liabilities

In RMB

Item Ending balance Opening balance

Other note:

134Semi-Annual Report 2026

53. Share capital

In RMB

Changes in the period (+ -)

Opening Shares Ending

balance New shares transferred Bonus share Other Subtotal balance

issued from capital

reserve

689184933.689184933.

Total shares

0000

Other note:

54. Other equity instrument

(1) Outstanding other financial instruments as preferred stock and perpetual bonds at period-end

(2) Changes of the outstanding other financial instruments as preferred stock and perpetual bonds at

period-end

In RMB

Outstandin Period-begin Current increased Current decreased Period-end

g financial

instrument Amount Book value Amount Book value Amount Book value Amount Book value

Changes of other equity instrument change reasons and relevant accounting treatment basis:

Other note:

55. Capital public reserve

In RMB

Item Opening balance Current increased Current decreased Ending balance

Capital premium(Share

169874906.92169874906.92

capital premium)

Other capital public

627834297.85627834297.85

reserve

Including: Debt

482580588.23482580588.23

restructuring income

Other 145253709.62 145253709.62

Total 797709204.77 797709204.77

Other note:including changes and reasons for changes

56. Inventory shares

In RMB

Item Opening balance Current increased Current decreased Ending balance

Other note: including changes and reasons for changes

135Semi-Annual Report 2026

57. Other comprehensive income

In RMB

Current period incurred

Less: Less:

written in written in

other other

comprehen comprehen

sive sive

Opening Account income in income in Belong to Belong to

Item Less:

Ending

balance before previous previous parent minority Income tax balance

income tax period and period and company after shareholders

expense

in the period carried carried tax after tax

forward to forward to

gains and retained

losses in earnings in

current current

period period

II. Reclassify

other

-

comprehensi - - -

1402598.9

ve income 630231.12 772367.84 772367.84

6

into profit or

loss

Total of other -

---

comprehensi 1402598.9

630231.12772367.84772367.84

ve income 6

Other note: including the active part of the hedging gains/losses of cash flow transfer to initial recognition

adjustment for the arbitraged items

58. Reasonable reserve

In RMB

Item Opening balance Current increased Current decreased Ending balance

Other note: including changes and reasons for changes

59. Surplus public reserve

In RMB

Item Opening balance Current increased Current decreased Ending balance

Statutory surplus

32673227.0132673227.01

reserves

Total 32673227.01 32673227.01

Explanation: including changes and reasons for changes

60. Retained profit

In RMB

Item Current period Prior period

Retained profit at period-end before

-1134676946.45-1175806118.62

adjustment

136Semi-Annual Report 2026

Retained profit at period-begin after

-1134676946.45-1175806118.62

adjustment

Add: net profit attributable to

shareholders of parent company for this 10582965.53 41129172.17

year

Retained profit at period-end -1124093980.92 -1134676946.45

Adjustment for retained profit at period-begin:

1) Retroactive adjustment due to the Accounting Standards for Business Enterprise and relevant new regulations

retained profit at period-begin has 0.00 Yuan affected;

2) Due to the accounting policy changes retained profit at period-begin has 0.00 Yuan affected;

3) Due to the major accounting errors correction retained profit at period-begin has 0.00 Yuan affected;

4) Consolidation range changed due to the same control retained profit at period-begin has 0.00 Yuan affected;

5) Total other adjustment impacts 0.00 Yuan retained profit at period-begin

Detailed explanation of using capital reserves to cover losses:

61. Operation revenue and operation cost

In RMB

Current period incurred Prior period incurred

Item

Revenue Cost Revenue Cost

Main business 298715756.15 276367029.36 313790466.16 284503069.22

Other business 1668113.61 1096473.71 6153150.47 586064.32

Total 300383869.76 277463503.07 319943616.63 285089133.54

Breakdown of operating income and operating costs:

In RMB

Contract 1# Division 2# Division Total

type Revenue Cost Revenue Cost Revenue Cost Revenue Cost

Business

type

Including:

Jewelry go

29906009276367092990600927636709

ld and

2.749.482.749.48

silver

Bicycles

electric 1323777.0 1096403.5 1323777.0 1096403.5

vehicles 2 9 2 9

and others

Classificati

on by

business

area

Including:

30038386277463503003838627746350

Domestic

9.763.079.763.07

Market or

customer

type

Including:

137Semi-Annual Report 2026

Contract

type

Including:

Classificati

on by time

of goods

transfer

Including:

Classificati

on by

contract

duration

Including:

Classificati

on by sales

channel

Including:

30038386277463503003838627746350

Total

9.763.079.763.07

Information related to performance obligations:

The types of

The nature of The expected quality

The time to Whether it is

the goods that refunds to assurance

fulfill the Important the main

Item the company customers provided by the

performance payment terms responsible

promises to borne by the company and

obligation person

transfer company related

obligations

Other note:

Information relating to the transaction price assigned to the remaining performance obligation:

The amount of revenue corresponding to performance obligation that have been signed but have not been fulfilled

or have not been fulfilled at the end of the period was 0.00 Yuan including 0.00 Yuan is expected to be recognized

as revenue in subsequent years 0.00 Yuan is expected to be recognized as revenue in subsequent years 0.00 Yuan

is expected to be recognized as revenue in subsequent years. Other explanation:

Significant contract changes or significant transaction price adjustments

In RMB

Item Accounting treatment method The impacted amount on revenue

Other note:

62. Tax and surcharge

In RMB

Item Current period incurred Prior period incurred

138Semi-Annual Report 2026

Employee remuneration 69472.32 15369.40

Educational surcharge 49623.09 10846.59

Stamp tax 133841.66 223607.73

Water Resources Fund 101.62

Total 253038.69 249823.72

Other note:

63. Administrative expenses

In RMB

Item Current period incurred Prior period incurred

Employee remuneration 2981631.66 3630016.53

Daily administrative expenses 1703103.73 2528189.95

Total 4684735.39 6158206.48

Other note:

64. Sales expenses

In RMB

Item Current period incurred Prior period incurred

Employee compensation 1698626.35 2328835.37

Marketing promotion fees 979181.52 896564.49

Online marketing fee 176477.36 310598.24

Other 853064.79 419044.96

Total 3707350.02 3955043.06

Other note:

65. R&D expenses

In RMB

Item Current period incurred Prior period incurred

Employee remuneration and benefits 382604.75 416542.20

Other 73993.28 67816.57

Total 456598.03 484358.77

Other note:

66. Finance expenses

In RMB

Item Current period incurred Prior period incurred

Interest expenses 515715.81 253787.54

Including：Financing expenses

47419.4177743.67

recognized by lease liabilities

Interest income -8997.84 -5679.08

Commission charge etc. 14849.44 9954.15

Total 521567.41 258062.61

Other note:

139Semi-Annual Report 2026

67. Other income

In RMB

Sources Current period incurred Prior period incurred

68. Net exposure hedge gains

In RMB

Item Current period incurred Prior period incurred

Other note:

69. Income from change of fair value

In RMB

Sources Current period incurred Prior period incurred

Other note:

70. Investment income

In RMB

Item Current period incurred Prior period incurred

Disposition of the investment income

generated by the long-term equity -16363.12

investment

Gains from silver extended trading 10681.00

Total -5682.12

Other note:

71. Loss of credit impairment

In RMB

Item Current period incurred Prior period incurred

Bad debt loss of other account receivable 460163.07 -603703.04

Bad debt losses of other accounts

18466.00-2382.58

receivable

Total 478629.07 -606085.62

Other note:

72. Impairment loss on assets

In RMB

Item Current period incurred Prior period incurred

I. Loss of inventory falling price and loss

-2716552.97

of contract performance cost impairment

Total -2716552.97

140Semi-Annual Report 2026

Other note:

73. Income from assets disposal

In RMB

Sources Current period incurred Prior period incurred

74. Non-operating income

In RMB

Amount reckoned in current

Item Current period incurred Prior period incurred

non-recurring gains/losses

Other 3297041.21 840630.92

Total 3297041.21 840630.92

Other note:

75. Non-operating expense

In RMB

Amount reckoned in current

Item Current period incurred Prior period incurred

non-recurring gains/losses

Other 461655.26 1763.71

Total 461655.26 1763.71

Other note

76. Income tax expense

(1) Income tax expense

In RMB

Item Current period incurred Prior period incurred

Current income tax expense 3441762.80 5273188.95

Deferred income tax expense -543933.83 -216655.12

Total 2897828.97 5056533.83

(2) Adjustment on accounting profit and income tax expenses

In RMB

Item Current period incurred

Total profit 13694328.96

Income tax expense 2897828.97

Other note:

77. Other comprehensive income

Refer to the Note

141Semi-Annual Report 2026

78.Items of Cash flow statement

（1）Cash related to operating activities

Other cash received from business operation

In RMB

Item Current period incurred Prior period incurred

Interest rent utilities etc. 1323163.07 1019585.40

Deposits and guarantees received 41542.00

Government subsidy and individual tax

handling fee refund

Other 2036315.44 19980289.27

Total 3359478.51 21041416.67

Explanation on other cash received in relation to operation activities:

Other cash paid in relation to operation activities

In RMB

Item Current period incurred Prior period incurred

Payment period expenses operating

13771386.4511020232.91

expenses and mutual debt etc

Judicial freeze 13771386.45 11020232.91

Total

Explanation on other cash paid in relation to operation activities:

（2）Cash related to Investment activities

Cash receivable related to other Investment activities

In RMB

Item Current period incurred Prior period incurred

Receivable for important cash related to investment activities

In RMB

Item Current period incurred Prior period incurred

Explanation on other cash received from investment activities:

Cash paid related with investment activities

In RMB

Item Current period incurred Prior period incurred

Other 16363.12

Total 16363.12

Payable for important cash related to investment activities

In RMB

Item Current period incurred Prior period incurred

142Semi-Annual Report 2026

Explanation on cash paid related with investment activities

(3)Cash related to Financing activities

Other cash received in relation to financing activities

In RMB

Item Current period incurred Prior period incurred

Received the performance commitment

payment from the controlling

18154754.41

shareholder Received the private

placement deposit

Total 18154754.41

Explanation on other cash received in relation to financing activities:

Other cash paid related with financing activities

In RMB

Item Current period incurred Prior period incurred

Acquisition of minority shareholders of

9148550.9115025000.00

its subsidiary

Total 9148550.91 15025000.00

Explanation on other cash paid related with financing activities:

Changes in various liabilities arising from fund-raising activities

□Applicable □Not applicable

(4) Statement of cash flows on a net basis

Relevant factual The basis for the use of net

Item Financial impact

circumstances presentation

(5) Major activities and financial impacts that do not involve cash receipts and expenditures in the current

period but affect the financial position of the enterprise or may affect the cash flow of the enterprise in the

future

79. Supplementary information to statement of cash flow

(1) Supplementary information to statement of cash flow

In RMB

Supplementary information Current amount Amount of the previous period

1．Net profit adjusted to cash flow of

operation activities:

Net profit 13424959.64 18925199.69

Add: Assets impairment provision 2237923.90 606085.62

Depreciation of fixed assets

consumption of oil assets and 182546.65 169469.86

depreciation of productive biology assets

Depreciation of right-of-use assets 206964.98 622068.00

143Semi-Annual Report 2026

Amortization of intangible assets

Amortization of long-term deferred

expenses

Loss from disposal of fixed assets

intangible assets and other long-term

assets (gain is listed with “-”)

Losses on scrapping of fixed assets (gain

is listed with “-”)

Gain/loss of fair value changes (gain is

listed with “-”)

Financial expenses (gain is listed with

521567.41258062.61

“-”)

Investment loss (gain is listed with “-”) 5682.12

Decrease of deferred income tax asset

-439259.25-216655.12

(increase is listed with “-”)

Increase of deferred income tax liability

(decrease is listed with “-”)

Decrease of inventory (increase is listed

40093096.80-159283018.54

with “-”)

Decrease of operating receivable

-68428903.5556358857.09

accounts (increase is listed with “-”)

Increase of operating payable accounts

-6116937.2244328648.93

(decrease is listed with “-”)

Other -3741858.65 -272140.63

Net cash flow arising from operating

-24482676.82-38503422.49

activities

2. Material investment and financing not

involved in cash flow

Conversion of debt into capital

Switching Company bonds due within

one year

Financing lease of fixed assets

3. Net change of cash and cash

equivalents:

Balance of cash at period end 50358469.13 59154588.98

Less: Balance of cash equivalent at

75474633.6580799494.57

year-begin

Add: Balance at year-end of cash

equivalents

Less: Balance at year-begin of cash

equivalents

Net increased amount of cash and cash

-25116164.52-21644905.59

equivalent

(2) Net cash paid for obtaining subsidiary in the Period

In RMB

Amount

Including:

Including:

Including:

Other note:

（3）Net cash received by disposing subsidiary in the Period

In RMB

Amount

144Semi-Annual Report 2026

Including:

Including:

Including:

Other note:

(4) Constitution of cash and cash equivalent

In RMB

Item Ending balance Opening balance

I. Cash 50358469.13 75474633.65

Including: Cash on hand 24116.90 52322.40

Bank deposit available for payment at

50310574.1375413663.68

any time

Other monetary funds that may be paid

23778.108647.57

for at any time

III. Balance of cash and cash equivalents

50358469.1375474633.65

at the period -end

(5) Situations where the scope of use is limited but still classified as cash and cash equivalents

In RMB

Reason for still being

Amount of the previous

Item Amount of the current period classified as cash and cash

period

equivalents

( 6) Monetary funds that do not belong to cash and cash equivalents

In RMB

Amount of the Amount of the

Item Reason for not belonging to cash and cash equivalents

current period previous period

Other monetary funds 0.00 566435.02 Litigation frozen funds

Total 0.00 566435.02

Other note:

(7) Description of other major activities

80. Notes of changes of owners’ equity

Explain the name and adjusted amount in “Other” at end of last period:

145Semi-Annual Report 2026

81. Foreign currency monetary items

（1）Foreign currency monetary items

In RMB

Ending foreign currency Ending RMB balance

Item Convert rate

balance converted

Monetary fund

Including: USD

EURO

HKD

Account receivable

Including: USD

EURO

HKD

Long-term loans

Including: USD

EURO

HKD

Other note:

(2) Explanation on foreign operational entity including as for the major foreign operational entity

disclosed main operation place book-keeping currency and basis for selection; if the book-keeping

currency changed explain reasons

□Applicable □Not applicable

(3) Note to overseas operating entities including important overseas operating entities which should be

disclosed about its principal business place function currency for bookkeeping and basis for the choice. In

case of any change in function currency the cause should be disclosed.□ Applicable √ Not applicable

（4）The situation where the accounting currency of an overseas operation lacks convertibility with the

reporting currency of the enterprise

□Applicable □Not applicable

82. Leasing

(1) The Company acts as the lessee

□Applicable □Not applicable

(2) The Company acts as the lessor

Operating lease as a lessor

□Applicable □Not applicable

In RMB

Item Rental income Thereinto: income related to variable

146Semi-Annual Report 2026

lease payments that are not included in

lease receipts

lease of houses 24153.81

Total 24153.81

Financial lease as a lessor

□Applicable □Not applicable

Annual undiscounted lease receipts for the next five years

□Applicable □Not applicable

Adjustment table for undiscounted lease receipts and net lease investments

(3) Recognition of financial lease sales gains and losses as a producer or distributor

□Applicable □Not applicable

83. Data resources

84.Other

VIII. R&D expenditure

In RMB

Item Amount incurred in the current period Amount incurred in the previous period

Employee remuneration and benefits 382604.75 416542.20

Other 73993.28 67816.57

Total 456598.03 484358.77

Thereinto: expensed R&D expenditure 456598.03 484358.77

1. R&D projects that meet the conditions for capitalization

In RMB

Amount increased in the current period Amount decreased in the current period

Internal Transferred

Opening Recognized

Project developme to profit or

Ending

balance as nt Others loss for the balance

intangible

expenditure current

assets

s period

Total

Significant capitalized R&D projects

Expected way of The point at which The specific basis

Estimated

Project R&D progress generating capitalization for starting

completion time

economic benefits begins capitalization

Provision for impairment of development expenditure

In RMB

Increase in the Decrease in the Impairment test

Item Opening balance Ending balance

current period current period situation

2.Important outsourcing projects under research

Name of project Expected way of generating economic Criteria and specific basis for

147Semi-Annual Report 2026

benefits determining capitalization or expensing

Other note:

IX. Changes of consolidation scope

1. Enterprise combined under different control

(1) Enterprise combined under different control in the Period

In RMB

Income of Net profit

Standard to

Acquired acquiree of acquiree

Time point Cost of Ratio of determine

way Equity Purchasing from from

Acquiree for equity equity equity the

obtained date purchasing purchasing

obtained obtained obtained purchasing

way date to date to

date

period-end period-end

Other note:

(2) Combination cost and goodwill

In RMB

Consolidation cost

--Cash

--Fair value of non-cash assets

--Fair value of debts issued or assumed

--Fair value of equity securities issued

-- Fair value of contingent consideration

--Fair value of the equity prior to the purchasing date

--Other

Total combination cost

Less: shares of fair value of identifiable net assets acquired

The amount by which the goodwill/cost of consolidation is less

than the share of fair value of identifiable net assets acquired

Determination method for fair value of the combination cost：

Contingent consideration and changes:

Main reasons for large goodwill resulted:

Other note:

(3) Identifiable assets and liability on purchasing date under the acquiree

In RMB

Fair value on purchasing date Book value on purchasing date

Assets:

Monetary fund

Account receivable

Inventory

Fixed assets

148Semi-Annual Report 2026

Intangible assets

Liability:

Loan

Account payable

Deferred income tax liabilities

Net assets

Less: Minority interests

Net assets acquired

Determination method for fair value of the identifiable assets and liabilities:

Contingent liability of the acquiree bear during combination:

Other note:

(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date

Whether it is a business combination realized by two or more transactions of exchange and a transaction of

obtained control rights in the Period or not

□Yes□No

(5) On purchasing date or period-end of the combination combination consideration or fair value of

identifiable assets and liability for the acquiree are un-able to confirm rationally

(6) Other Note:

2. Enterprise combine under the same control

(1) Enterprise combined under the same control in the Period

In RMB

Income of Net profit

the of the

Income of Net profit

combined combined

Equity ratio Basis of Standard to the of the party from party from

combined determine combined combined

Combined obtained in Combinatio period- period-

under the the party party

party combinatio n date begin of begin of same combinatio during the during the

n combinatio combinatiocontrol n date comparison comparison

n to the n to the

period period

combinatio combinatio

n date n date

Other note:

(2) Combination cost

In RMB

Consolidation cost

--Cash

-- Book value of non-cash assets

- Book value of debts issued or assumed

149Semi-Annual Report 2026

-- The face value of the equity securities issued

--Contingent consideration

Explanation on contingent consideration and its changes:

Other note:

(3) Book value of the assets and liability of the combined party on combination date

In RMB

Consolidation date End of last period

Assets:

Monetary fund

Account receivable

Inventory

Fixed assets

Intangible assets

Liability:

Loan

Account payable

Net assets

Less: Minority interests

Net assets acquired

Contingent liability of the combined party bear during combination:

Other note:

3. Counter purchase

Basic transaction information basis of counter purchase whether making up business due to the assets and liability

reserved by listed company and basis determination of combination cost amount and calculation on adjusted equity

by equity transaction:

4. Subsidiary disposal

Whether lost controlling rights while dispose subsidiary on one time or not

□Yes □No

Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not

□Yes□No

5. Other reasons for consolidation range changed

Reasons for changed on consolidation range (such as new subsidiary established subsidiary liquidated etc.)And

relevant information:

150Semi-Annual Report 2026

6.Other

X. Equity in other entity

1. Equity in subsidiary

(1) Constitute of enterprise group

In RMB

Main

Registered Registered Business Share-holding ratio Acquired

Subsidiary operation

capital place nature place Directly Indirectly way

Shenzhen Sales of

Xinsen 200000000. Jewelry

Shenzhen Shenzhen 100.00% Investment

Jewelry Gold 00 diamonds

Co. Ltd and gold

Shenzhen

Jewelry

Xinsen

diamonds

Precision 5000000.00 Shenzhen Shenzhen 100.00% Investment

gold

Manufacturin

processing

g Co. Ltd.Dongguan Jewelry

Xinsen diamonds

5000000.00 Dongguan Dongguan 100.00% Investment

Jewelry Co. gold

Ltd processing

Shenzhen

Jewelry

Jiucheng

20400000.0 diamonds

Culture Shenzhen Shenzhen 100.00% Investment

0 gold

Technology

processing

Co. Ltd

Shenzhen

Jewelry

Jiucheng

20000000.0 diamonds

Culture Shenzhen Shenzhen 100.00% Investment

0 gold

Technology

processing

Co. Ltd

Shenzhen Distribution

Emmelle of bicycles

5000000.00 Shenzhen Shenzhen 70.00% Investment Investment

Industrial and spare

Co. Ltd. parts

Fujian Sales of

Huaxinbao 10000000.0 Jewelry

Putian Putian 100.00% Investment Investment

Jewelry Co. 0 diamonds

Ltd. and gold

Putian Kaipu

Technology Outbound

3000000.00 Putian Putian Investment Investment

Partnership( investment

LP)

Shenzhen

Huabao Sales of

Jewelry

Zhenxuan 5000000.00 Shenzhen Shenzhen 100.00% Investment

diamonds

Jewelry Co. and gold

Ltd.Hainan

Import and

Shenhua

5000000.00 Haikou Haikou export trade 100.00% Investment

Industrial

industry

Co. Ltd.

151Semi-Annual Report 2026

Shenzhen

Sales of

Yunyouxuan

15000000.0 Jewelry

Jewelry Shenzhen Shenzhen 35.00% 0.20% Investment

0 diamonds Technology

and gold

Co. Ltd.Hangzhou

Sales of

Huabaohui

Jewelry

Digital 5000000.00 Hangzhou Hangzhou 100.00% Investment

diamonds

Culture Co

and gold

Ltd

Tibet Jinyaya Sales of

Jewelry Jewelry

2000000.00 Lhasa Lhasa 100.00% Investment

Trading Co. diamonds

Ltd. and gold

Zhenhua Sales of

23390100.0 HONGKAN HONGKAN Jewelry

International 100.00% Investment

0 G G diamonds

Co. Ltd. and gold

Fujian

Brand

Jinshengmin

30000000.0 Management

g Brand Putian Putian 51.00% Investment

0 ; Jewelry

Management

Wholesale

Co. Ltd.Explanation on share-holding ratio in subsidiary different from ratio of voting right:

Note：

1. The Subsidiary Putian Kaipu Technology Partnership (Limited Partnership) consists of one general partner

Fujian Huaxinbao Jewelry Co. Ltd. and three limited partners. The partnership agreement designates the general

partner as the executive partner while establishing an Investment Decision Committee comprising four members

(three appointed by the general partner and one jointly appointed by limited partners) as the investment decision-

making body.

2. The Subsidiary Shenzhen Cloud Preferred Jewelry Technology Co. Ltd. is 35% owned by Shenzhen China

Bicycle and 20% by Putian Kaipu Technology Partnership (Limited Partnership) totally 55% ownership by the

above two.Basis for controlling the invested entity with half or below voting rights held and without controlling invested

entity but with over half and over voting rights:

Controlling basis for the structuring entity included in consolidated range:

Basis on determining to be an agent or consignor:

Other note

(2) Important non-wholly-owned subsidiary

In RMB

Gains/losses Dividend announced to

Share-holding ratio of Ending equity of

Subsidiary attributable to minority distribute for minority

minority minority

in the Period in the Period

Fujian Jinshengming

Brand Management 49.00% 469259.17 0.00 15169259.17

Co. Ltd.Other note

152Semi-Annual Report 2026

(3) Main finance of the important non-wholly-owned subsidiary

In RMB

Ending balance Opening balance

Subsid Curren Non- Curren Non-Non- Total Non- Total

iary Curren Total t current Curren Total t current current liabiliti current liabiliti

t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti

assets es assets es

es es es es

Fujian

Jinshe

ngmin

g 71335 72231 41273 41273

89556

Brand 715.7 281.2 609.4 0.00 609.4 0.00 0.00 0.00 0.00 0.00 0.00

Manag 5.49 2 1 3 3

ement

Co.Ltd.In RMB

Current period incurred Prior period incurred

Total Cash flow Total Cash flow

Subsidiary Operation comprehen from Operation comprehen from

Net profit Net profit

revenue sive operation revenue sive operation

income activity income activity

Fujian

Jinshengmi -

37376093.

ng Brand 957671.78 957671.78 28304086. 0.00 0.00 0.00 0.00

Manageme 84 13

nt Co. Ltd.Other note：

(4) Major restriction on using corporate assets and liquidate corporate debts

(5) Financial or other supporting provided to structuring entity that included in consolidated financial

statement

Other note:

2. Transaction that has owners equity shares changed in subsidiary but still with controlling rights

(1) Owners equity shares changed in subsidiary

(2) Impact on minority’s interest and owners’ equity attributable to parent company

In RMB

Purchase cost/disposal consideration

--Cash

--Fair value of non-cash assets

Purchase cost/total disposal consideration

Less: Subsidiary's share of net assets calculated based on the

proportion of acquired/disposed equity

Difference

153Semi-Annual Report 2026

Including: Adjust capital public reserve

Adjust surplus public reserve

Adjusted retained profit

Other note

3. Equity in joint venture and associated enterprise

(1) Important joint venture or associated enterprise

Joint venture or

Main operation Registered Share-holding ratio Accounting

associated Business nature

place place

enterprise Directly Indirectly treatment

Share-holding ratio or shares enjoyed different from voting right ratio:

Basis of the voting rights with 20% below but with major influence or without major influence but with over 20%

(20% included) voting rights hold:

(2) Main financial information of the important joint venture

In RMB

Ending balance/Current period incurred Opening balance/Prior period incurred

Current assets

Including: cash and cash equivalent

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority interests

Shareholders' equity attributable to the

parent company

Share of net assets calculated by

shareholding ratio

Adjustment items

--Goodwill

--Unrealized profit of internal trading

--Other

Book value of equity investment in joint

venture

Fair value of the equity investment of

joint ventures with public offers

concerned

Operation revenue

Financial expenses

Income tax expense

Net profit

Net profit of discontinuing operation

154Semi-Annual Report 2026

Other comprehensive income

Total comprehensive income

Dividends received from joint venture in

the year

Other note

(3) Main financial information of the important associated enterprise

In RMB

Ending balance/Current period incurred Opening balance/Prior period incurred

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Minority interests

Equity attributable to shareholder of

parent company

Share of net assets measured by

shareholding

Adjustment

--Goodwill

--Unrealized profit of internal trading

--Other

Book value of equity investment in

associated enterprise

Fair value of the equity investment of

associated enterprise with public offers

concerned

Operation revenue

Net profit

Net profit of discontinuing operation

Other comprehensive income

Total comprehensive income

Dividends received from associated

enterprise in the year

Other note

(4) Financial summary for un-important joint venture or associated enterprise

In RMB

Ending balance/Current period incurred Opening balance/Prior period incurred

155Semi-Annual Report 2026

Joint venture：

Total numbers measured by share-

holding ratio

Associated enterprise：

Total numbers measured by share-

holding ratio

Other note:

(5) Assets transfer ability has major restriction from joint venture or associated enterprise

(6) Excess losses from joint venture or associated enterprise

In RMB

Un-confirmed losses not

Joint venture or associated Cumulative un-confirmed recognized in the Period (or Cumulative un-confirmed

enterprise losses net profit enjoyed in the losses at period-end

Period)

Other note:

(7) Un-confirmed commitment with investment concerned with joint venture

(8) Contingent liability with investment concerned with joint venture or associated enterprise

4.Co-runs operation

Main operation Share-holding ratio/share enjoyed

Name Registered place Business nature

place Directly Indirectly

Share-holding ratio or shares enjoyed different from voting right ratio:

If the co-runs entity is the separate entity basis of the co-runs classification

Other note:

5. Equity in structuring entity that excluding in the consolidated financial statement

6.Other

XI. Government subsidy

1. Government subsidies recognized according to the receivable amount at the end of the reporting period

□Applicable □Not applicable

The reason for not receiving the estimated amount of government subsidies at the expected point in time

□Applicable □Not applicable

2. Liabilities involving government subsidies

□Applicable □Not applicable

3. Government subsidies included in the current profit and loss

156Semi-Annual Report 2026

□Applicable □Not applicable

XII. Risks Related to Financial Instruments

1.Risks arising from financial instruments

The Company's main financial instruments include monetary funds accounts receivable receivables financing

other receivables other current assets accounts payable other payables short-term borrowings other current

liabilities etc. Details of the financial instruments are provided in the relevant notes to the financial report.The Company's risk management objective is to achieve an appropriate balance between risks and returns to

minimize the negative impact of risks on the Company's operating results and to maximize the interests of

shareholders and other equity investors. Based on this risk management objective the basic strategy of the

Company's risk management is to identify and analyze the various risks faced by the Company establish an

appropriate risk tolerance baseline and conduct risk management and monitor various risks in a timely and reliable

manner to control the risks within a limited range.The main risks associated with the Company's financial instruments are credit risk liquidity risk and market

risk. The Company's management is fully responsible for the determination of risk management objective and policy

and bears ultimate responsibility for risk management objective and policy. Management reviews the effectiveness

of the implemented procedures and the reasonableness of risk management objective and policy through work

reports submitted by functional departments.

(A) Credit risk

Credit risk refers to the risk that one party to a financial instrument will fail to perform its obligations resulting

in financial losses to the other party. In order to mitigate credit risk the Company has established internal control

policy responsible for determining credit limits conducting credit approvals including external credit ratings and

in some cases bank references (where this information is available) and implementing other monitoring procedures

to ensure that necessary measures are taken to recover overdue creditor's right. As a result the management of the

Company considers that the credit risk assumed by the Company has been significantly reduced.The credit risk of the Company mainly arises from bank deposits accounts receivable prepayments other

receivables etc. and the credit risk of these financial assets is derived from the default of the counterparty and the

maximum risk exposure is equal to the carrying amount of these instruments.

1. The Company's working capital is deposited in a bank with a high credit rating thus the credit risk of the working

capital is low.

2. On the balance sheet date the Company made provision for bad debts in accordance with the accounting policy.

(B) Liquidity risk

157Semi-Annual Report 2026

Liquidity risk refers to the risk that an enterprise will have a shortage of funds when fulfilling its obligation

to settle by means of cash or other financial assets. It is the Company's policy to ensure that it has sufficient cash to

pay off its debts as they fall due. Liquidity risk is centrally controlled by the Company's finance department. The

finance department monitors cash balances marketable securities that can be liquidated at any time etc. to ensure

that the Company has sufficient funds to repay its debts under all reasonably foreseeable circumstances.

(C) Market risk

Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate due

to changes in market prices including interest rate risk foreign exchange risk and other price risks. Interest rate risk

refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in

market interest rates. The interest rate risk faced by the Company mainly comes from bank deposits.

2. Hedging

(1) The Company conducts hedging business for risk management

□Applicable □Not applicable

(2) The Company conducts qualified hedging business and applies hedge accounting

In RMB

The cumulative fair

value hedge adjustment

The carrying amount Sources of hedge The impact of hedge

of the hedged items

associated with the effectiveness and accounting on the

Item included in the

hedged item and the hedge ineffectiveness Company's financial

recognized carrying

hedging instrument part report

amount of the hedged

items

Type of hedging risk

Hedging category

Other note:

（3） The Company conducts hedging business for risk management and expects to achieve risk

management objective but does not apply hedge accounting

□Applicable □Not applicable

3. Financial assets

(1) Classification of transfer methods

□Applicable □Not applicable

158Semi-Annual Report 2026

(2) Financial assets that have been derecognized as a result of a transfer

□Applicable □Not applicable

(3) Financial assets of continued involvement in asset transfer

□Applicable □Not applicable

Other note:

XIII. Disclosure of fair value

1. Ending fair value of the assets and liabilities measured by fair value

In RMB

Ending fair value

Item

First-order Second-order Third-order Total

I. Sustaining measured

--------

by fair value

II. Non-sustaining

--------

measured by fair value

2. Recognized basis for the market price sustaining and non-persistent measured by fair value on first-order

The quoted prices without adjustment in the active markets for identical assets or liabilities that are available at the

measurement date.

3. Valuation technique and qualitative and quantitative information on major parameters for the fair value

measure sustaining and non-persistent on second-order

The inputs for second-order are inputs other than first-order for which the related assets or liabilities are directly or

indirectly observable

4. Valuation technique and qualitative and quantitative information on major parameters for the fair value

measure sustaining and non-persistent on third-order

The third-order inputs are unobservable inputs for the underlying assets or liabilities. The fair value of the bank

acceptance bill receivable from bank is determined using the face amount because the probability of loss is small

and the recoverable amount is basically determined

5. Adjustment information and sensitivity analysis of unobservable parameters for the fair value measure

sustaining and non-persistent on third-order

None

159Semi-Annual Report 2026

6. Sustaining items measured by fair value as for the conversion between at all levels reasons for conversion

and policy for conversion time point

None

7. Changes of valuation technique in the Period

None

8. Financial assets and liability not measured by fair value

None

9.Other

None

XIV. Related party and related transactions

1. Parent company

Share-holding

ratio on the Voting right ratio

Parent company Registered place Business nature Registered capital

enterprise for on the enterprise

parent company

Wansheng

Industrial

Investment in

Holdings Shenzhen 500 million Yuan 20.00% 20.00%

industry

(Shenzhen) Co.Ltd.Explanation on parent company of the enterprise

Wansheng Industrial Holdings (Shenzhen) Co. Ltd. was established on May 10 2016 with the business

period is from May 10 2016 to no fixed term the registered capital of the company is 500 million yuan the unified

social credit code is 91440300MA5DCB5K9A the enterprise type is a limited liability company the legal

representative is Wang Shenghong and the company's registered address is 1311 Beiyuehui Building No. 2115

Cuizhu Road Cuijin Community Cuizhu Street Luohu District Shenzhen.Ultimate controller of the Company: Wang Shenghong

Other note:

2. Subsidiary of the Enterprise

Found more in Note VIII(1)

3. Associated enterprise and joint venture

Found more in Note

Other associated enterprise and joint venture that have related transaction with the Company in the Period or

160Semi-Annual Report 2026

occurred in previous period

Joint venture or associated enterprise Relationship with the Company

Other note:

4. Other related party

Other related party Relationship with the Company

Enterprise that holds more than 5% of the shares of Shenzhen

Shenzhen Guocheng Energy Investment Development Co. Ltd.China

Other note:

5. Related transaction

(1) Goods purchasing labor service providing and receiving

Goods purchasing/labor service receiving

In RMB

Whether more than

Transaction Current period Approved Prior period

Related party the transaction

content incurred transaction amount amount incurred

Goods sold/labor service providing

In RMB

Related party Transaction content Current period incurred Prior period incurred

Explanation on goods purchasing labor service providing and receiving

(2) Related trusteeship/contract and delegated administration/outsourcing

Trusteeship/contract

In RMB

Client/ Entrusting Income from

Yield pricing

contract-out party/ Assets type Starting date Maturity date trusteeship/cont

basis

party contractor ract

Explanation on related trusteeship/contract

Delegated administration/outsourcing

In RMB

Pricing basis of Trustee

Client/ Entrusting

trustee fee/outsourcing

contract-out party/ Assets type Starting date Maturity date

fee/outsourcing fee recognized

party contractor

fee in the Period

Explanation on related administration/outsourcing

(3) Related lease

As a lessor for the Company::

In RMB

Lease income recognized in Lease income recognized in

Lessee Assets type

the Period prior Period

161Semi-Annual Report 2026

As a lessee for the Company:

In RMB

rental cost for

Variable lease

short-term leases

payment not

and low-value Interest expenses

included in the Right-of-use assets

assets leases with Rental paid assumed on lease

measurement of increased

simplified liability

Assets leasing liability (if

Lessor processing (if

type applicable) applicable)

Current Prior Current Prior Current Prior Current Prior Current Prior

period period period period period period period period period period

incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre

d d d d d d d d d d

Explanation on related lease

(4) Related guarantee

As a guarantor for the Company

In RMB

Guarantee completed

Secured party Amount guarantee Starting date Due date

(Y/N)

As a secured party for the Company

In RMB

Guarantee completed

Guarantor Amount guarantee Starting date Due date

(Y/N)

Explanation on related guarantee

(5) Borrowed funds of related party

In RMB

Related party Borrowed funds Starting date Due date Note

Borrowing

Lending

(6) Assets transfer and debt restructuring of related party

In RMB

Related party Transaction content Current period incurred Prior period incurred

(7) Remuneration of key manager

In RMB

Item Current period incurred Prior period incurred

Remuneration of key manager 800600.93 1054848.66

162Semi-Annual Report 2026

(8) Other related transactions

6. Receivable/payable items of related parties

(1) Receivable item

In RMB

Ending balance Opening balance

Item Related party

Book balance Bad debt provision Book balance Bad debt provision

(2) Payable item

In RMB

Item Related party Ending book balance Opening book balance

Shenzhen Guosheng Energy

Other account payable Investment Development Co. 6500000.00 6500000.00

Ltd.

7. Commitments of related party

8.Other

XV. Share-based payment

1. General share-based payment

□Applicable□Not applicable

2. Share-based payment settled by equity

□Applicable□Not applicable

3. Share-based payment settled by cash

□Applicable□Not applicable

4. The current shares will pay the fee

□Applicable□Not applicable

163Semi-Annual Report 2026

5. Revised and termination on share-based payment

6.Other

XVI. Commitment or contingency

1. Important commitments

Important commitments in balance sheet date

As of June 30 2026 the Company has no important commitments that should be disclosed but not disclosed.

2. Contingency

(1) Contingency on balance sheet date

As of June 30 2026 Shenzhen Xinsen Precision Manufacturing Co. Ltd. Shenzhen Xinsen Jewelry & Gold Co.Ltd. and Shenzhen China Bicycle (Group) Co. Ltd. were jointly sued in a utility model patent licensing contract

dispute case. The case has been accepted by the Shenzhen Intermediate People's Court with the case number Min

Chu 10398 Yue 03 (2025). The amount of claims asserted by the plaintiff is approximately RMB 11035000. The

Intermediate People’s Court of Shenzhen Guangdong Province rendered a first-instance judgment on 25 June 2026

ordering the Company’s sub-subsidiary to compensate the plaintiff for economic losses and reasonable

rights-protection expenses totaling RMB 3300000 and to bear case acceptance fees of RMB 26000. The Company

has filed an appeal against the first-instance judgment. As at the present date no second-instance hearing has been

held and the first-instance judgment has not yet taken effect. Given the uncertainty surrounding the outcome of the

second-instance proceedings the Company is unable to reliably estimate the potential amount of loss. Nevertheless

the Company is of the view that the judgment should not be based on operating revenue. Based on the reasonable

gross profit margin range applicable to traditional processing enterprises the Company has recognized a provision

for estimated liabilityof RMB 446000. The Company will closely monitor the progress of the case and make

corresponding accounting treatments in accordance with the Enterprise Accounting Standards based on subsequent

developments.

(2) For the important contingency not necessary to disclosed by the Company explained reasons

The Company has no important contingency that need to disclosed

3. Other

XVII. Events after balance sheet date

1. Important non-adjustment items

In RMB

Impact on financial status and Reasons on un-able to

Item Content

operation results estimated the impact number

164Semi-Annual Report 2026

2. Profit distribution

3. Sales return

4. Other events after balance sheet date

XVIII. Other important events

1. Previous accounting errors collection

(1) Retrospective restatement

In RMB

Impact items of statement

Correction content Treatment procedures Cumulative impacted number

during a comparison

(2) Prospective application

Reasons for prospective application

Correction content Approval procedures

adopted

2. Debt restructuring

3. Assets replacement

(1) Non-monetary assets change

(2) Other assets replacement

4. Pension plan

5. Discontinued operations

In RMB

Discontinued

operations

Income tax profit

Item Revenue Expenses Total profit Net profit

expenses attributable to

owners of

parent company

Other note:

165Semi-Annual Report 2026

6. Segment

(1) Recognition basis and accounting policy for reportable segment

The Company determines its business segments based on its internal organizational structure management

requirements and internal reporting system. The Company's business segments are those that meet the following

conditions at the same time:

(1) The component is capable of generating income and incurring expenses in its daily activities;

(2) Management is able to regularly evaluate the operating results of the component in order to decide on the

allocation of resources to it and evaluate its performance;

(3) Able to obtain accounting information related to the financial position results of operations and cash flows

of the component.The Company determines the reporting segment on the basis of the industry segment.Segment reporting information is disclosed in accordance with the accounting policy and measurement

standards adopted by each segment in reporting to management which are consistent with those at the time of

preparation of the financial report.

(2) Financial information for reportable segment

In RMB

Offset between

Item Gold jewelry Bicycle Total

segments

Main business income

Main business cost

Gross

(3)The Company has no reportable segments or unable to disclose total assets and total liability for

reportable segments explain reasons

(4) Other note:

7. Major transaction and events makes influence on investor’s decision

8.Other

XIX. Principle notes of financial statements of parent company

1. Account receivable

（1）Disclosure according to the aging

In RMB

Aging Balance in year-end Balance Year-beginning

Within one year(one year included) 86892647.86 77671263.38

166Semi-Annual Report 2026

2-3 years 157000.20

Over 3 years 18673137.03 18522136.83

3-4 years 157000.20 5451739.81

4-5 years 15817406.69 10762472.02

Over 5 years 2698730.14 2307925.00

Total 105565784.89 96350400.41

（2） According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Book Balance Bad debt provision Book Book Balance Bad debt provision Book

Category

Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Accrual of

bad debt 186508 186508 186568 186568

17.67%100.00%019.36%100.00%

provision 37.03 37.03 37.03 37.03

by single

Including

：

Single

186508186508186568186568

identificati 17.67% 100.00% 0 19.36% 100.00%

37.0337.0337.0337.03

on

Accrual of

bad debt

86914946720.3776935341880.773516

provision 82.33% 0.05% 868682 80.64% 0.44%

47.86363.387582.63

by 27.53

portfolio

Including

：

Aging 869149 46720.3 776935 341880. 773516

82.33%0.05%86868280.64%0.44%

portfolio 47.86 3 27.53 63.38 75 82.63

105565186975963504189987773516

Total 100.00% 17.71% 868682 100.00% 19.72%

784.8957.36

27.5300.4117.7882.63

Bad debt provision accrual on single basis: Single identification

In RMB

Opening balance Ending balance

Name Bad debt Bad debt Accrual Reason for

Book balance Book balance

provision provision ratio accrual

Guangshui Jiaxu

Expected to be

Energy

15937156.89 15937156.89 15937156.89 15937156.89 100.00% difficult to

Technology Co.recover

Ltd.Suzhou Jiaxin Expected to be

Economic Trade 888757.00 888757.00 888757.00 888757.00 100.00% difficult to

Co. Ltd. recover

Suzhou Daming Expected to be

Vehicle Industry 649688.00 649688.00 649688.00 649688.00 100.00% difficult to

Co. Ltd. recover

Dongguan Expected to be

Daxiang New 521734.00 521734.00 515734.00 515734.00 100.00% difficult to

Energy Co. Ltd. recover

167Semi-Annual Report 2026

Guangdong Expected to be

Xinlingjia New 348136.00 348136.00 348136.00 348136.00 100.00% difficult to

Energy Co. Ltd. recover

Tianjin Huiju Expected to be

Electric Vehicle 116840.14 116840.14 116840.14 116840.14 100.00% difficult to

Co. Ltd. recover

Expected to be

Other 194525.00 194525.00 194525.00 194525.00 100.00% difficult to

recover

Total 18656837.03 18656837.03 18650837.03 18650837.03

Bad debt provision accrual on portfolio: Aging portfolio

In RMB

Ending balance

Name of the Company

Book balance Bad debt provision Accrual ratio

Within one year(one year

90912076.6824420.330.03%

included)

1-2 years

2-3 years

3-4 years

4-5 years 22300.00 22300.00 100.00%

Over 5 years

Total 90934376.68 46720.33

Explanation on portfolio basis:

If the provision for bad debts of account receivable is made in accordance with the general model of expected credit

losses please refer to the disclosure of other account receivable to disclose related information about bad-debt

provisions:

□Applicable□Not applicable

(3) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

In RMB

Current changes

Category Opening balance Collected or Ending balance

Accrual Write off Other

reversal

Accounts

receivable with

individual 18656837.03 6000.00 18650837.03

provision for

bad debts

Provision for

bad debts based

on a portfolio 341880.75 295160.42 46720.33

of credit risk

characteristics

Total 18998717.78 301160.42 18697557.36

Including important amount of bad debt provision collected or reversal in the period:

In RMB

168Semi-Annual Report 2026

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

(4) Account receivables actually write-off during the reporting period

In RMB

Item Amount written off

Including major account receivables write-off:

In RMB

Amount cause by

Amount written related

Enterprise Nature Causes Procedure

off transactions or not

(Y/N)

Explanation on account receivable write-off:

(5) The top five accounts receivable and contract assets at the end of the period aggregated according to

debtor

In RMB

Ending balance of

Proportion to the

accounts

Ending balance of total ending

Ending balance of receivable bad

Name of the Ending balance of accounts balance of

accounts debt provision and

organization contract assets receivable and accounts

receivable contract asset

contract assets receivable and

impairment

contract assets

provision

Shenzhen

Hualinglong

Jewelry Culture 24226597.00 24226597.00 22.11% 15341.97

Technology Co.Ltd.Shenzhen

Xidingjue Jewelry 21125640.56 21125640.56 19.28% 2112.56

Co. Ltd.Fuzhou

Zhuanjinsen 15978619.35 15978619.35 14.58% 2476.83

Jewelry Co. Ltd.Guangshui Jiaxu

Energy

15937156.8915937156.8914.54%15937156.89

Technology Co.Ltd

Fuzhou Rongrun

15688759.4815688759.4814.32%1568.88

Jewelry Co. Ltd

Total 92956773.28 92956773.28 84.83% 15958657.13

169Semi-Annual Report 2026

2.Other account receivable

In RMB

Item Ending balance Opening balance

Other account receivable 30872305.84 47383281.34

Total 30872305.84 47383281.34

(1)Interest receivable

1)Category

In RMB

Item Ending balance Opening balance

2) Important overdue interest

In RMB

Impairment (Y/N) and

Borrower Ending balance Overdue time Overdue reason

judgment basis

Other note:

3)Accrual of bad debt provision

□Applicable □Not applicable

4）Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category Collected or Ending balance balance Accrual Write off Other

reversal

Including important amount of bad debt provision collected or reversal in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note:

5）Interest receivables actually written off in the current period

In RMB

Item Write-off amount

170Semi-Annual Report 2026

Important Interest receivables write-off status thereinto:

In RMB

Whether the

Write-off payment is

Name of

Amount Nature Write-off amount Write-off reason procedures for generated by a

Organization

fulfillment related party

transaction

Note：

Other note：

(2)Dividend receivable

1)Category

In RMB

Item (or the invested entity) Ending balance Opening balance

2)Important dividend receivable with over one year aged

In RMB

Item (or the invested Causes of failure for Impairment (Y/N) and

Ending balance Account age

entity) collection judgment basis

3)Accrual of bad debt provision

□Applicable □Not applicable

4）Bad debt provision accrual collected or reversal in the period

In RMB

Current changes

Opening

Category Collected or Ending balance balance Accrual Write off Other

reversal

Including important amount of bad debt provision collected or reversal in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

Other note：

5） Dividend receivables actually written off in the current period

In RMB

Item Write-off amount

171Semi-Annual Report 2026

Important Dividend receivable write-off status thereinto:

In RMB

Whether the

Write-off payment is

Name of

Amount Nature Write-off amount Write-off reason procedures for generated by a

Organization

fulfillment related party

transaction

Note：

Other note：

（3）Other account receivable

1)By nature

In RMB

Nature Ending book balance Opening book balance

Deposit or margin 40123.80 9609.80

Payment for equipment 11400.00 11400.00

Current account 30614296.00 47342904.00

Other 254758.43 48810.63

Total 30920578.23 47412724.43

2）By account aging

In RMB

Aging Ending book balance Opening book balance

Within one year(one year included) 30811399.60 47283106.63

1-2 years 45792.00

2-3 years 88168.83 71925.80

Over 3 years 21009.80 11900.00

3-4 years 9109.80

Over 5 years 11900.00 11900.00

Total 30920578.23 47412724.43

3)According to the bad debt provision method classification disclosure

In RMB

Amount in year-end Balance Year-beginning

Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book

y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value

on(%) on(%) on(%) on(%)

Includin

g:

Accrual

of bad

debt 309205 48272.3 308723 474127 29443.0 473832

100.00%15.76%100.00%0.06%

provisio 78.23 9 05.84 24.43 9 81.34

n by

portfolio

172Semi-Annual Report 2026

Includin

g:

Aging 306282. 48272.3 258009. 158428. 29443.0 128985.

0.99%15.76%0.33%18.58%

portfolio 23 9 84 43 9 34

Related

party 306142 306142 472542 472542

99.01%99.67%

Portfoli 96.00 96.00 96.00 96.00

o

30920548272.330872347412729443.0473832

Total 100.00% 15.76% 100.00% 0.06%

78.23905.8424.43981.34

Bad debt provision accrual on portfolio: Aging portfolio

In RMB

Ending balance

Name of the Company

Book balance Bad debt provision Accrual ratio

Aging portfolio 306282.23 48272.39 15.76%

Total 306282.23 48272.39

Explanation on portfolio basis:

Bad debt provision accrual on portfolio: Related party Portfolio

In RMB

Ending balance

Name of the Company

Book balance Bad debt provision Accrual ratio

Related party Portfolio 30614296.00

Total 30614296.00

Explanation on portfolio basis:

Provision for bad debts is made according to the general model of expected credit losses

In RMB

Phase I Phase II Phase III

Expected credit losses Expected credit losses

Bad debt provision Expected credit losses for the entire duration for the entire duration Total

over next 12 months (without credit (with credit impairment

impairment occurred) occurred)

Balance on January 1

29443.0929443.09

2026

January 1

20256balance in the

current period

Provision in Current

18829.3018829.30

Year

Balance on June 30

48272.3948272.39

2026

The basis for the division of each stage and the proportion of bad debt provision

Change of book balance of loss provision with amount has major changes in the period

□Applicable □Not applicable

4) Bad debt provision accrual collected or reversal in the period

Accrual of bad debt provision in the period:

173Semi-Annual Report 2026

In RMB

Current changes

Opening

Category Collected or Ending balance balance Accrual Write off Other

reversal

Provision for

bad debts based

on a portfolio 29443.09 18829.30 48272.39

of credit risk

characteristics

Total 29443.09 18829.30 48272.39

Important amount of bad debt provision switch-back or collection in the period:

In RMB

The basis and

rationality for

Name of the Amount recovered or determining the

Reason for reversal Recovery method

organization reversed provision ratio of

original bad debt

provision

5) Other account receivables actually write-off during the reporting period

In RMB

Item Amount written off

Including major other account receivables write-off:

In RMB

Amount cause by

Amount written related

Enterprise Other Nature Causes Procedure

off transactions or not

(Y/N)

Other Explanation on account receivable write-off:

6) Top 5 other account receivable collected by arrears party at ending balance

In RMB

Proportion in total

other account Ending balance of

Enterprise Nature Ending balance Account age

receivables at bad bet provision

period-end

Shenzhen Xinsen

Jewelry Gold

Current account 30594196.00 Within 1 year 98.94%

Supply Chain Co.Ltd

Hubei Guangshui

Other 52376.83 2-3 years 0.17% 8862.16

Court

Guangdong

Shenzhen Luohu Other 35792.00 2-3 years 0.12% 6056.01

Court

Shenye Pengji（Group）Co. Deposit 30514.00 Within 1 year 0.10% 1888.82

Ltd.

174Semi-Annual Report 2026

Shenzhen

Hongkang

Equipment

Instrument 11400.00 Over 5 years 0.04% 11400.00

Technology Co.Ltd

Total 30724278.83 99.37% 28206.99

7） Reported in other receivables due to centralized management of funds

Other note：

3. Long-term equity investment

In RMB

Ending balance Opening balance

Impairme Impairme

Item

Book balance nt Book value Book balance nt Book value

provision provision

Investment for

208665300.50208665300.50147696069.73147696069.73

subsidiary

Total 208665300.50 208665300.50 147696069.73 147696069.73

(1) Investment for subsidiary

In RMB

Opening Increase/decrease in this period Balance of

The Opening balance of the

Provision End of

invested balance(Bo the Increase in Decrease in provision

for Other term

entity ok value) impairment investment investment on for

impairment

provision impairment

Shenzhen

Emmelle

10379.7310379.73

Industrial

Co. Ltd.Shenzhen

Xinsen

1205000050000000.17050000

Jewelry

Gold Co. 0.00 00 0.00

Ltd

Shenzhen

Cloud

Preferred 5250000.0 4630769.2

619230.77

Jewelry 0 3

Technology

Co. Ltd.Hangzhou

Huabaohui

1005000.01005000.0

Digital

00

Culture

Co. ltd.Tibet

Jinyaya

130000.00130000.00

Trading

Co. Ltd.Fujian 100000.00 15600000. 15700000.

175Semi-Annual Report 2026

Huaxinbao 00 00

Jewelry

Co. Ltd.Shenhua

20700690.20700690.

Internation

0000

al Co. Ltd.

1476960665600000.4630769.220866530

Total

9.730030.50

(2) Investment for associates and joint venture

In RMB

Openi Changes in the period (+ -)

ng Other Ending Openi

balanc Invest Cash

Funde ng compr Accrua

Ending balanc

e of ment divide balanc e of

d balanc Additi ehensi l of

the Capital gains Other nd or

enterpr e(Boo onal ve impair

e(Boo impair

impair reducti recogn equity profit Other invest incom ment k ment ise k

ment on ized change annou

value) ment e provisi

value) provisi

provisi under nced to adjust on on

on equity issued ment

I. Joint venture

II. Associated enterprise

The recoverable amount is determined on the basis of the net amount of fair value less disposal costs

□Applicable □Not applicable

The recoverable amount is determined by the present value of the projected future cash flows

□Applicable □Not applicable

The reason for the obvious discrepancy between the foregoing information and the information used in the

impairment test of previous years or the external information

The reason for the obvious discrepancy between the information used in the Company's impairment test in

previous years and the actual situation in the current year

（3）Other note

4. Operation revenue and operation cost

In RMB

Current period incurred Prior period incurred

Item

Revenue Cost Revenue Cost

Main business 89626329.58 86203768.56 153372154.48 140363498.34

Other business 1357194.69 1074175.82 748889.37 560210.12

Total 90983524.27 87277944.38 154121043.85 140923708.46

Breakdown of operating income and operating costs:

In RMB

Contract 1# Division 2# Division Total

type Revenue Cost Revenue Cost Revenue Cost Revenue Cost

176Semi-Annual Report 2026

Business

type

Including

：

Gold silver

89626329.86203768.89626329.86203768.

and

584565856

Jewelry

Lithium

battery

1357194.61074175.81357194.61074175.8

material for

bicycles 9 2 9 2

and other

Classificati

on by

business

area

Including

：

90983524.87277944.90983524.87277944.

Domestic

27382738

Market or

customer

type

Including:

Contract

type

Including:

Classificati

on by time

of goods

transfer

Including:

Classificati

on by

contract

duration

Including:

Classificati

on by sales

channel

Including:

94540540.87277944.94540540.87277944.

Total

93389338

Information related to performance obligations:

Item The time to Important The nature of Whether it is The expected The types of

177Semi-Annual Report 2026

fulfill the payment terms the goods that the main refunds to quality

performance the company responsible customers assurance

obligation promises to person borne by the provided by the

transfer company company and

related

obligations

Other note

Information relating to the transaction price assigned to the remaining performance obligation:

The amount of income corresponding to the performance obligations that have been signed at the end of this

reporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan among them yuan

of revenue is expected to be recognized in year yuan of revenue is expected to be recognized in year and yuan of

revenue is expected to be recognized in year.Significant contract changes or significant transaction price adjustments

In RMB

Item Accounting treatment method The impacted amount on revenue

Other note：

5.Investment income

In RMB

Item Current period incurred Prior period incurred

Gains from silver extended trading 10681.00

Total 10681.00

6.Other

XX. Supplementary Information

1. Current non-recurring gains/losses

□Applicable □Not applicable

In RMB

Item Amount Note

Gain and loss from change of the fair

value arising from transactional

monetary assets transactional financial

liabilities as held as well as the

investment income arising from disposal

of the transactional monetary assets -10681.00

transactional financial liabilities and

financial assets available for sale

excluding the effective hedging

transaction in connection with the

Company’s normal business

Switch-back of provision of impairment

of account receivable which are treated 7400.00

with separate depreciation test

Other non-operation revenue and

2835385.95

expenditure except for the

178Semi-Annual Report 2026

aforementioned items

Less: Impact on income tax 707771.83

Amount of impact of minority interests 654996.18

Total 1469336.94 --

Details of other gains/losses items that meets the definition of non-recurring gains/losses:

□Applicable□Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss in

Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public ---

Extraordinary Profit/loss

□Applicable□Not applicable

2. ROE and EPS

Earnings per share

Profits during report period Weighted average ROE

Basic EPS(RMB/Share) Diluted EPS(RMB/Share)

Net profits belong to common

stock stockholders of the 2.72% 0.0154 0.0154

Company

Net profits belong to common

stock stockholders of the

2.34%0.01320.0132

Company after deducting

nonrecurring gains and losses

3. Difference of the accounting data under accounting rules in and out of China

(1) Difference of the net profit and net assets disclosed in financial report under both IAS (International

Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

(2) Difference of the net profit and net assets disclosed in financial report under both foreign accounting

rules and Chinese GAAP (Generally Accepted Accounting Principles)

□Applicable□Not applicable

(3) Explain accounting difference over the accounting rules in and out of China; as for the difference

adjustment for data audited by foreign auditing organ noted the name of such foreign organ

4. Other

The Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited

August 21 2026

179