Stock Code: 000020 200020 Public Notice No.:2026-38

Short Form of the Stock: SHEN Huafa-A SHEN Huafa-B

Shenzhen Zhongheng Huafa Co. Ltd.Third Quarter Report 2026

The Company and all members of the Board of Directors warrant that the contents of the information disclosed are true

accurate and complete and that there are no false records misleading statements or material omissions.Key Contents Reminder:

1. The Board of Directors directors and senior management warrant that the quarterly report is true accurate and complete with

no false records misleading statements or material omissions and shall assume individual and joint legal liabilities.

2. The person in charge of the Company the person in charge of accounting work and the head of the accounting department

(accounting supervisor) declare: to warrant that the financial information in the quarterly report is true accurate and complete.

3. Whether the Q3 financial accounting report has been audited

□ Yes No

I. Key Financial Data

(I) Key Accounting Data and Financial Indicators

Whether the Company needs to retrospectively adjust or restate accounting data of prior years

□ Yes No

Change from

Change of This

From Beginning of Beginning of Year to

Reporting Period vs.This Reporting Period Year to End of End of Reporting

Same Period of Last

Reporting Period Period vs. Same Period

Year

of Last Year

Operating Revenue

181125139.22 -20.13% 492109077.81 -27.94%

(RMB)

Net Profit Attributable

to Shareholders of the

Listed Company 2897777.72 -58.17% 11303728.10 -46.85%

(RMB)

Net Profit Attributable

to Shareholders of the

Listed Company after

Deducting Non- 2606089.93 -61.84% 10569049.82 -40.24%

recurring Gains and

Losses (RMB)

Net Cash Flow

Generated from

Operating Activities — — -18726002.84 58.08%

(RMB)

Basic Earnings per

Share (RMB/Share) 0.0102 -58.23% 0.0399 -46.87%

Diluted Earnings per

Share (RMB/Share) 0.0102 -58.23% 0.0399 -46.87%

Weighted Average

0.65% -61.35% 2.54% -50.46%

Return on Net Assets

End of This Reporting Change of End of This Reporting Period vs. End

End of Previous Year

Period of Previous Year

Total Assets (RMB) 700962220.31 719475048.61 -2.57%

Owner's Equity

Attributable to

Shareholders of the 450403599.13 439099871.03 2.57%

Listed Company

(RMB)

(II) Non-recurring Gains and Losses Items and Amounts

Applicable □ Not Applicable

Unit: RMB

Amount from Beginning of

Amount of This Reporting

Item Year to End of Reporting Note

Period

Period

Gains/Losses on Disposal of

Non-current Assets (including

132449.08 444104.03

the written-off portion of

recognized asset impairment

provisions)

Other Non-operating Income

and Expenses Other Than the 201759.77 319781.42

Above Items

Returns on Wealth

10909.13 117707.71

Management

Less: Income Tax Impact 53430.19 146914.88

Total 291687.79 734678.28 --

Specific situations of other profit or loss items that meet the definition of non-recurring gains and losses:

□ Applicable Not Applicable

The Company has no other specific situations of profit or loss items that meet the definition of non-recurring gains and losses.Explanation on defining the non-recurring gains and losses items listed in the "Explanatory Announcement on Information

Disclosure of Companies Offering Securities Publicly No. 1 — Non-recurring Gains and Losses" as recurring gains and losses

items

□ Applicable Not Applicable

The Company has no situation of defining the non-recurring gains and losses items listed in the "Explanatory Announcement on

Information Disclosure of Companies Offering Securities Publicly No. 1 — Non-recurring Gains and Losses" as recurring gains

and losses items.(III) Situation and Reasons for Changes of Key Accounting Data and Financial Indicators

Applicable □ Not Applicable

Item Sep 30 2026 Jan 1 2026 Change Reason for Change

Ratio

Notes Receivable 6153899.39 2165561.63 184.17% Settlement by notes

increased year-on-year

Prepayments 21213339.01 31330124.82 -32.29% Decrease in

prepayments for

procurement

Other Receivables 4824891.83 3475589.89 38.82% Loans increased

Other Current Assets 1064396.77 6273392.36 -83.03% Decrease in VAT credit

carryforward

Notes Payable 52669868.93 78762931.46 -33.13% Purchase amount

decreased

corresponding notes

payable decreased

Employee Benefits 5606672.59 9604968.37 -41.63% Staff reduction and

Payable profit decline led to

lower wages

Taxes Payable 11673258.50 16942217.60 -31.10% Orders decreased staff

reduction

Other Payables 43284387.01 31864180.93 35.84% Accrued after-sales

expenses

Other Current 8437416.33 14724338.55 -42.70% Decrease in endorsed

Liabilities notes

Item Jan-Sep 2026 Jan-Sep 2025 Change Reason for Change

Ratio

Other Income 450196.29 4090206.03 -88.99% Government subsidies

decreased in this period

Investment Income 117707.71 554508.88 -78.77% Wealth management

products decreased

Cash paid for other 21366437.77 47002253.44 -54.54% Export tax refunds

operating activities decreased in this period

Cash received from 117707.71 554508.88 -78.77% Wealth management

investment income products decreased

Cash received from 153000000.00 305000000.00 -49.84% Purchase of wealth

other investing management products

activities decreased in this period

Cash paid for other 153000000.00 305000000.00 -49.84% Purchase of wealth

investing activities management products

decreased in this period

II. Shareholder Information

(I) Total Number of Ordinary Shareholders Number of Preferred Shareholders with Restored Voting

Rights and Shareholding of the Top 10 Shareholders

Unit: Share

Total Number of Ordinary Total Number of Preferred Shareholders with

Shareholders at End of Reporting 29443 Restored Voting Rights at End of Reporting Period (if 0

Period any)

Shareholding of the Top 10 Shareholders (excluding shares lent through refinancing)

Number of Pledge Marking or Freeze

Shareholder Nature of Shareholding Number of Shares Subject Situation

Name Shareholder Ratio Shares Held to Selling

Restrictions Share Status Number

Wuhan

Zhongheng New

Domestic

Technology

Non-state-

Industry Group 41.00% 116100000 0 Frozen 116100000

owned Legal

Co. Ltd.Person

Sage (Hong

Overseas

Kong) Co. Ltd. Not Applicable

Legal Person 5.85% 16569560 0 0

Domestic

Yao Ming Natural 2.76% 7816044 0 Not Applicable 0

Person

GOOD HOPE Overseas

CORNER INVESTM Not ApplicableLegal Person 2.50% 7072000 0 0

ENTS LTD.Changjiang

Securities

Brokerage (Hong Overseas

1.89% 5355249 0 Not ApplicableKong) Co. Ltd. Legal Person 0

Guoyuan Overseas 1.37% 3870117 0 Not Applicable 0

Securities Legal Person

Brokerage (Hong

Kong) Co. Ltd.Goldman LLC Overseas

1.12% 3176592 0 Not Applicable 0

Legal Person

Overseas

Li Zhongqi Natural 1.00% 2830000 0 Not Applicable 0

Person

Overseas

UBS AG 0.53% 1508955 0 Not Applicable 0

Legal Person

Sheng Yin

Investment Overseas

0.50% 1408600 0 Not Applicable 0

Limited Legal Person

Shareholding of the Top 10 Holders of Unrestricted Shares (excluding shares lent through refinancing and shares locked by senior

management)

Type and Number of Shares

Shareholder Name Number of Unrestricted Shares Held

Type of Shares Number

Wuhan Zhongheng New

RMB Ordinary

Technology Industry Group Co. 116100000 Shares 116100000

Ltd.Sage (Hong Kong) Co. Ltd. Domestic-listed

16569560 Foreign Shares 16569560

Domestic-listed

Yao Ming 7816044 Foreign Shares 7816044

GOOD HOPE CORNER INVESTMENTS Domestic-listed

7072000 7072000

LTD. Foreign Shares

Changjiang Securities Brokerage Domestic-listed

5355249 5355249

(Hong Kong) Co. Ltd. Foreign Shares

Guoyuan Securities Brokerage Domestic-listed

3870117 3870117

(Hong Kong) Co. Ltd. Foreign Shares

RMB Ordinary

Goldman LLC 3176592 3176592

Shares

Domestic-listed

Li Zhongqi 2830000 2830000

Foreign Shares

RMB Ordinary

UBS AG 1508955 1508955

Shares

Sheng Yin Investment Limited Domestic-listed

1408600 1408600

Foreign Shares

Among the top 10 shareholders Li Zhongqi is the actual controller of

Wuhan Zhongheng Group; Sheng Yin Investment Limited is a wholly-

owned overseas subsidiary of Wuhan Zhongheng Group. Other than that

Explanation on Related-party Relationship or

the Company is not aware of any related-party relationship among other

Concerted Action Among the Above Shareholders

shareholders nor whether they constitute persons acting in concert as

defined in the "Administrative Measures for the Information Disclosure

of Changes in Shareholdings of Shareholders of Listed Companies".Explanation on Participation of the Top 10

Shareholders in Margin Trading and Securities None

Lending (if any)

Situation of securities lending by shareholders holding 5% or more the top 10 shareholders and the top 10 holders of unrestricted

circulating shares in the refinancing securities lending business

□ Applicable Not Applicable

Changes of the top 10 shareholders and the top 10 holders of unrestricted circulating shares compared with the previous period due

to refinancing lending/return

□ Applicable Not Applicable

(II) Total Number of Preferred Shareholders and Shareholding of the Top 10 Preferred Shareholders of

the Company

□ Applicable Not Applicable

III. Other Significant Matters

Applicable □ Not Applicable

(I) Asset Replacement and Urban Renewal Project Involving Wuhan Zhongheng New Technology Industry

Group Co. Ltd.On April 29 2009 the Company and Wuhan Zhongheng New Technology Industry Group Co. Ltd.(hereinafter referred to as “Wuhan Zhongheng Group”) signed the Asset Replacement Contract (for details

please refer to the Company’s announcement dated April 30 2009). Among the assets replaced out by the

Company two parcels of industrial land located on Huafa Road Gongming Town Guangming New District

Shenzhen (with real estate title certificate numbers “Shen Fang Di Zi No. 7226760” and “Shen Fang DiZi No. 7226763” parcel numbers “A627-005” and “A627-007” with a total area of approximately 48200

square meters) were included in the First Batch of Plans for the Formulation of Shenzhen Urban Renewal

Unit Planning in 2010. To facilitate the advancement of the urban renewal project and in accordance with

the principle of joint cooperative development the transfer procedures for the above-mentioned plots

have not yet been completed.At the First Extraordinary Meeting of the Board of Directors held on February 16 2015 and the First

Extraordinary General Meeting of Shareholders held on March 4 2015 the Company reviewed and approved

the Proposal on Promoting the Implementation of the “Huafa Area Renewal Unit” Urban Renewal Project in

Gongming Subdistrict Guangming New District Shenzhen. It was clarified that prior to land development

the Company and Wuhan Zhongheng Group would each receive corresponding relocation compensation

consideration for the project plots they respectively enjoyed and the above-ground structures funded and

constructed by them. According to calculations the relocation compensation consideration expected to be

received by the Company accounted for 50.5% of the total consideration while that of Wuhan Zhongheng

Group accounted for 49.5%.At the Sixth Extraordinary Meeting of the Board of Directors and the Third Extraordinary General

Meeting of Shareholders in 2015 the Company reviewed and approved the Proposal on the Progress of

Related-Party Transactions Regarding the Promotion and Implementation of the “Huafa Area Renewal Unit”

Urban Renewal Project in Gongming Subdistrict Guangming New District Shenzhen. On August 26 2015 the

Company signed the Agreement on Cooperation for the “Huafa Area Renewal Unit” Urban Renewal Project in

Gongming Subdistrict Guangming New District Shenzhen the Cooperative Operation Contract for the Old

Reform Project of Huafa Industrial Zone in Gongming Subdistrict Guangming New District and the House

Acquisition and Relocation Compensation and Resettlement Agreement with Wuhan Zhongheng Group Shenzhen

Vanke Real Estate Co. Ltd. (hereinafter referred to as “Shenzhen Vanke”) and Shenzhen Vanke Guangming

Real Estate Development Co. Ltd. (hereinafter referred to as “Vanke Guangming”).In September 2016 Shenzhen Vanke filed a lawsuit against the Company and Wuhan Zhongheng Group

regarding the Cooperative Operation Contract for the Old Reform Project of Huafa Industrial Zone in

Gongming Subdistrict Guangming New District. The Shenzhen Court of International Arbitration (South

China International Economic and Trade Arbitration Commission) issued an award in August 2017. On August

29 2018 the court accepted Shenzhen Vanke’s application for compulsory enforcement. In October 2019

due to a third party filing an “objection to enforcement” and an application for “non-enforcement”

with the Shenzhen Intermediate People’ s Court the Shenzhen Intermediate People’ s Court ruled to

terminate the enforcement procedure for the current time on March 20 2020. As of the disclosure date of

this report the case has resumed enforcement upon Shenzhen Vanke’s application. For details on the

progress of the case please refer to the announcements published on Cninfo on September 14 2016;

November 1 2016; November 16 2016; February 18 2017; March 24 2017; April 25 2017; July 1 2017;

August 18 2017; February 9 2018; August 25 2018; September 7 2018; April 21 2020; June 3 2021; July

22 2021; July 14 2022; February 26 2026; April 29 2026; June 4 2026; July 4 2026; and September 16

2026.

In May 2026 Shenzhen Vanke filed another lawsuit against the Company and Wuhan Zhongheng Group

regarding the Cooperative Operation Contract for the Old Reform Project of Huafa Industrial Zone in

Gongming Subdistrict Guangming New District. For details please refer to the Company’s Announcement on

Litigation and Arbitration published on Cninfo on May 8 2026.(II) Share Pledge by Wuhan Zhongheng Group

On December 31 2015 Wuhan Zhongheng Group pledged 88750047 shares of the Company held by it to

China Merchants Securities Asset Management Co. Ltd. with a repurchase maturity date of December 31

2016. On February 1 2016 Wuhan Zhongheng Group pledged an additional 27349953 shares of the Company

held by it to China Merchants Securities Asset Management Co. Ltd. also with a repurchase maturity date

of December 31 2016. Wuhan Zhongheng Group extended the aforementioned share pledges with the pledge

expiry date extended to December 31 2017 and the repurchase transaction date extended until the actual

date of pledge release. As of the disclosure date of this report the controlling shareholder has not yet

released the pledges. The Company has sent inquiry letters to the controlling shareholder and published

the Indicative Announcement on the Share Pledge Status of the Controlling Shareholder. For details

please refer to the Company’s announcement published on Cninfo on February 2 2018.In March 2021 Wuhan Zhongheng Group received the first-instance judgment from the Guangdong

Provincial Higher People’s Court regarding the “pledged securities repurchase dispute” case filed by

China Merchants Securities Asset Management Co. Ltd. Dissatisfied with the judgment Wuhan Zhongheng

Group appealed to the Supreme People’s Court. The Supreme People’s Court ruled to remand the case to

the Guangdong Provincial Higher People’s Court for retrial. Judgments from both the first-instance court

and the second-instance court have been issued. For details please refer to the Company’s Announcement

on the Progress of Major Litigation and Arbitration Cases Involving the Controlling Shareholder published

on Cninfo on August 17 2022; February 12 2025; and October 22 2026.(III) Judicial Freezing and Disposal of Shares Held by the Controlling Shareholder

The controlling shareholder Wuhan Zhongheng Group originally held 119289894 shares of the Company

accounting for 42.13% of the Company ’ s total share capital. Among these 116489894 shares werejudicially frozen by the Shenzhen Intermediate People’s Court (hereinafter referred to as “ShenzhenIntermediate Court”) on September 27 2016; subject to waiting-list freezing by Shenzhen Intermediate

Court on December 14 2018; and subject to waiting-list freezing by the Wuhan Intermediate People’s

Court Hubei Province on March 10 2026. The remaining 2800000 shares were frozen by Shenzhen

Intermediate Court on May 29 2019 and subject to waiting-list freezing by the Guangdong Provincial

Higher People’s Court on July 5 2019. The aforementioned shares were subject to waiting-list freezing

by the Futian District People ’ s Court of Shenzhen in May 2026. For details please refer to the

announcements published on Cninfo on October 27 2016; January 11 2019; May 31 2019; August 7 2019;

March 20 2026; and May 8 2026.Due to a contract dispute with Shenzhen Vanke 3189894 shares held by the controlling shareholder

Wuhan Zhongheng Group have been disposed of in five installments through the JD.com judicial auction

platform. Currently Wuhan Zhongheng Group holds 116100000 shares of the Company. For details please

refer to the Company ’ s Announcement on the Judicial Disposal of Part of the Shares Held by the

Controlling Shareholder published on September 16 2026.IV. Quarterly Financial Statements

(I) Financial Statements

1. Consolidated Balance Sheet

Prepared by: Shenzhen Zhongheng Huafa Co. Ltd.Unit: RMB

Item Closing Balance Opening Balance

Current Assets:

Cash and Bank Balances 147670620.30 196877984.92

Settlement Provisions

Lendings to Banks and Other

Financial Institutions

Financial Assets Held for Trading

Purposes

Derivative Financial Assets

Notes Receivable 6153899.39 2165561.63

Accounts Receivable 205085679.21 158543132.99

Receivables Financing 135000.00

Prepayments 21213339.01 31330124.82

Premiums Receivable

Reinsurance Receivables

Provisions for Reinsurance Contracts

Other Receivables 4824891.83 3475589.89

Including: Interest Receivable

Dividends Receivable

Financial Assets Purchased under

Resale Agreements

Inventory 76273942.87 76812310.06

Including: Data Resources

Contract Assets

Assets Held for Sale

Non-current Assets Due within One

Year

Other Current Assets 1064396.77 6273392.36

Total Current Assets 462286769.38 475613096.67

Non-current Assets:

Loans and Advances

Debt Investments

Other Debt Investments

Long-term Receivables

Long-term Equity Investments

Investments in Other Equity

Instruments

Other Non-current Financial Assets

Investment Properties 37772263.16 39068510.86

Fixed Assets 158289179.90 160632054.04

Construction in Progress

Productive Biological Assets

Oil and Gas Assets

Right-of-use Assets

Intangible Assets 31111274.89 32397163.65

Including: Data Resources

Development Expenditure

Including: Data Resources

Goodwill

Long-term Deferred Expenses 500938.00 663862.63

Deferred Tax Assets 9882936.48 9936720.48

Other Non-current Assets 1118858.50 1163640.28

Total Non-current Assets 238675450.93 243861951.94

Total Assets 700962220.31 719475048.61

Current Liabilities:

Short-term Borrowings

Borrowings from Central Bank

Borrowings from Banks and Other

Financial Institutions

Financial Liabilities Held for Trading

Purposes

Derivative Financial Liabilities

Notes Payable 52669868.93 78762931.46

Accounts Payable 122230698.91 120930767.76

Advances from Customers 1557943.91 1716702.91

Contract Liabilities

Financial Assets Sold under

Repurchase Agreements

Deposits Received and Interbank

Placements

Agency Securities Trading Funds

Agency Securities Underwriting Funds

Employee Compensation Payable 5606672.59 9604968.37

Taxes Payable 11673258.50 16942217.60

Other Payables 43284387.01 31864180.93

Including: Interest Payable

Dividends Payable

Handling Fees and Commissions

Payable

Reinsurance Payables

Liabilities Held for Sale

Non-current Liabilities Due within

One Year

Other Current Liabilities 8437416.33 14724338.55

Total Current Liabilities 245460246.18 274546107.58

Non-current Liabilities:

Insurance Contract Provisions

Long-term Borrowings

Bonds Payable

Including: Preferred Shares

Perpetual Bonds

Lease Liabilities

Long-term Payables

Long-term Employee Compensation

Payable

Provisions 3803695.00 4175830.00

Deferred Income 1294680.00 1653240.00

Deferred Tax Liabilities

Other Non-current Liabilities

Total Non-current Liabilities 5098375.00 5829070.00

Total Liabilities 250558621.18 280375177.58

Owner's Equity:

Share Capital 283161227.00 283161227.00

Other Equity Instruments

Including: Preferred Shares

Perpetual Bonds

Capital Reserve 146577771.50 146577771.50

Less: Treasury Shares

Other Comprehensive Income

Special Reserve

Surplus Reserve 77391593.25 77391593.25

General Risk Provisions

Undistributed Profit -56726992.62 -68030720.72

Total Owner's Equity Attributable to

450403599.13 439099871.03

Owners of the Parent

Minority Interests

Total Owner's Equity 450403599.13 439099871.03

Total Liabilities and Owner's Equity 700962220.31 719475048.61

Legal Representative: Li Zhongqi Person in Charge of Accounting Work: Cao Li Head of Accounting Department: Li Yan

2. Consolidated Income Statement from Beginning of Year to End of Reporting Period

Unit: RMB

Item Amount Incurred in Current Period Amount Incurred in Previous Period

I. Total Operating Revenue 492109077.81 682950220.46

Including: Operating Revenue 492109077.81 682950220.46

Interest Income

Earned Premiums

Handling Fees and

Commissions Income

II. Total Operating Costs 481461485.68 661952590.78

Including: Operating Costs 442152549.96 599238313.82

Interest Expense

Handling Fees and

Commissions Expense

Surrender Payments

Net Claims Payments

Net Insurance Liability

Provisions Recognized

Policyholder Dividends

Expense

Reinsurance Expenses

Taxes and Surcharges 2816576.12 3034448.77

Selling Expenses 4831442.75 22031245.89

Administrative Expenses 18594697.15 26844675.09

Research and Development

10342082.81 11702664.62

Expenses

Financial Expenses 2724136.89 -898757.41

Including: Interest Expense -13864.49 -35.38

Interest Income 2175282.20 1243736.39

Add: Other Income 450196.29 4090206.03

Investment Income (losses are

117707.71 554508.88

listed with a "-" sign)

Including: Investment

Income from Associates and Joint

Ventures

Derecognition Gains

on Financial Assets Measured at

Amortized Cost

Exchange Gains (losses are listed

with a "-" sign)

Net Exposure Hedging Gains

(losses are listed with a "-" sign)

Gains on Changes in Fair Value

(losses are listed with a "-" sign)

Credit Impairment Losses (losses

4369680.61 0.00

are listed with a "-" sign)

Asset Impairment Losses (losses

-1535341.37 0.00

are listed with a "-" sign)

Gains on Asset Disposal (losses

are listed with a "-" sign)

III. Operating Profit (losses are listed

14049835.37 25642344.59

with a "-" sign)

Add: Non-operating Income 323383.10 130095.07

Less: Non-operating Expenses 3601.68 118554.55

IV. Total Profit (total losses are listed

with a "-" sign) 14369616.79 25653885.11

Less: Income Tax Expense 3065888.69 4386953.68

V. Net Profit (net losses are listed with a

"-" sign) 11303728.10 21266931.43

(I) Classified by Continuing

Operations

1. Net Profit from Continuing

Operations (net losses are listed with a "-

" sign)

2. Net Profit from Discontinued

Operations (net losses are listed with a "-

" sign)

(II) Classified by Ownership

Attribution

1. Net Profit Attributable to

Shareholders of the Parent (net losses are 11303728.10 21266931.43

listed with a "-" sign)

2. Profit or Loss Attributable to

Minority Shareholders (net losses are

listed with a "-" sign)

VI. After-tax Net Amount of Other

Comprehensive Income

After-tax Net Amount of Other

Comprehensive Income Attributable to

Owners of the Parent

(I) Other Comprehensive Income

That Cannot Be Reclassified to Profit or

Loss

1. Changes in Remeasurement of

Defined Benefit Plans

2. Other Comprehensive Income

Not Transferable to Profit or Loss under

the Equity Method

3. Changes in Fair Value of

Investments in Other Equity Instruments

4. Changes in Fair Value of the

Enterprise's Own Credit Risk

5. Others

(II) Other Comprehensive Income

to Be Reclassified to Profit or Loss

1. Other Comprehensive Income

Transferable to Profit or Loss under the

Equity Method

2. Changes in Fair Value of Other

Debt Investments

3. Amount of Financial Assets

Reclassified into Other Comprehensive

Income

4. Credit Impairment Provisions

for Other Debt Investments

5. Cash Flow Hedging Reserves

6. Foreign Currency Financial

Statement Translation Differences

7. Others

After-tax Net Amount of Other

Comprehensive Income Attributable to

Minority Shareholders

VII. Total Comprehensive Income 11303728.10 21266931.43

(I) Total Comprehensive Income

Attributable to Owners of the Parent 11303728.10 21266931.43

(II) Total Comprehensive Income

Attributable to Minority Shareholders

VIII. Earnings per Share:

(I) Basic Earnings per Share 0.0399 0.0751

(II) Diluted Earnings per Share 0.0399 0.0751

Where a business combination under common control occurred in the current period the net profit realized by the combinee before

the combination was: RMB and the net profit realized by the combinee in the previous period was: RMB.Legal Representative: Li Zhongqi Person in Charge of Accounting Work: Cao Li Head of Accounting Department: Li Yan

3. Consolidated Cash Flow Statement from Beginning of Year to End of Reporting Period

Unit: RMB

Item Amount Incurred in Current Period Amount Incurred in Previous Period

I. Cash Flows Generated from Operating

Activities:

Cash Received from Selling Goods

466045956.77 608762225.37

and Providing Services

Net Increase in Customer Deposits and

Interbank Placements

Net Increase in Borrowings from

Central Bank

Net Increase in Borrowings from

Other Financial Institutions

Cash Received from Premiums of

Original Insurance Contracts

Net Cash Received from Reinsurance

Business

Net Increase in Policyholder Deposits

and Investments

Cash Received from Interest Handling

Fees and Commissions

Net Increase in Borrowings

Net Increase in Funds from

Repurchase Business

Net Cash Received from Agency

Securities Trading

Tax Refunds Received 4464156.13 5963591.92

Other Cash Received Related to

2645724.09 27430971.04

Operating Activities

Subtotal of Cash Inflows from Operating

473155836.99 642156788.33

Activities

Cash Paid for Purchasing Goods and

419794559.99 586372676.34

Receiving Services

Net Increase in Customer Loans and

Advances

Net Increase in Placements with

Central Bank and Interbank

Cash Paid for Claims of Original

Insurance Contracts

Net Increase in Lendings

Cash Paid for Interest Handling Fees

and Commissions

Cash Paid for Policyholder Dividends

Cash Paid to and for Employees 39929081.69 43800591.31

Various Taxes and Fees Paid 10791760.38 9657292.61

Other Cash Paid Related to Operating

Activities 21366437.77 47002253.44

Subtotal of Cash Outflows from

491881839.83 686832813.70

Operating Activities

Net Cash Flow Generated from

-18726002.84 -44676025.37

Operating Activities

II. Cash Flows Generated from Investing

Activities:

Cash Received from Recovery of

Investments

Cash Received from Investment

117707.71 554508.88

Income

Net Cash Recovered from Disposal of

Fixed Assets Intangible Assets and 929206.75 0.00

Other Long-term Assets

Net Cash Received from Disposal of

Subsidiaries and Other Business Units

Other Cash Received Related to

153000000.00 305000000.00

Investing Activities

Subtotal of Cash Inflows from Investing

154046914.46 305554508.88

Activities

Cash Paid for Purchase and

Construction of Fixed Assets Intangible 2048743.50 1989091.80

Assets and Other Long-term Assets

Cash Paid for Investments

Net Increase in Pledged Loans

Net Cash Paid for Acquiring

Subsidiaries and Other Business Units

Other Cash Paid Related to Investing

153000000.00 305000000.00

Activities

Subtotal of Cash Outflows from

155048743.50 306989091.80

Investing Activities

Net Cash Flow Generated from Investing

-1001829.04 -1434582.92

Activities

III. Cash Flows Generated from

Financing Activities:

Cash Received from Absorbing

Investments

Including: Cash Received by

Subsidiaries from Absorbing Minority

Shareholders' Investments

Cash Received from Borrowings

Other Cash Received Related to

Financing Activities

Subtotal of Cash Inflows from Financing

Activities

Cash Paid for Debt Repayment

Cash Paid for Distribution of

Dividends Profits or Payment of Interest

Including: Dividends and Profits

Paid by Subsidiaries to Minority

Shareholders

Other Cash Paid Related to Financing

Activities

Subtotal of Cash Outflows from

Financing Activities

Net Cash Flow Generated from

Financing Activities

IV. Effect of Exchange Rate Changes on

Cash and Cash Equivalents -3386470.21 378230.51

V. Net Increase in Cash and Cash

-23114302.09 -45732377.78

Equivalents

Add: Balance of Cash and Cash

117856033.09 113151528.93

Equivalents at Beginning of Period

VI. Balance of Cash and Cash

94741731.00 67419151.15

Equivalents at End of Period

(II) Adjustment of Related Items in the Financial Statements at the Beginning of the

Year of First Execution Due to First-time Adoption of New Accounting Standards from

2026

□ Applicable Not Applicable

(III) Audit Report

Whether the Q3 financial accounting report has been audited

□ Yes No

The Company's Q3 financial accounting report has not been audited.Board of Directors of Shenzhen Zhongheng Huafa Co. Ltd.October 26 2026