Auditor’s Report

Shenzhen Tellus Holding Co. Ltd.For the year ended 31 December 2025

Grant Thornton Zhitong

Certified Public Accountants LLPContent

Auditor’s Report 1-7

Consolidated and Company Balance Sheets 1-2

Consolidated and Company Income Statements 3

Consolidated and Company Cash Flow Statements 4

Consolidated Shareholders’ Statements of Changes in Equity 5-6

Company Shareholders’ Statements of Changes in Equity 7-8

Notes to the Financial Statements 9-117Auditor’s Report

GTCNSZ（2026）NO. 441A014372

To the Shareholders of Shenzhen Tellus Holding Co. Ltd.：

I. Audit opinion

We have audited the financial statements of Shenzhen Tellus Holding Co. Ltd.(hereinafter referred

to as "the Company") including the consolidated and company balance sheets as at December 312025

the consolidated and company income statements for the year 2025 the consolidated and company

cash flow statements the consolidated and company shareholders equity changes statement and the

notes to the relevant financial statements.We believe that the financial statements attached hereto have been prepared in all material

respects in accordance with the provisions of the Enterprise Accounting Standards and fairly reflect the

consolidated financial position of the Company as at December 312025 and the consolidated operating

results and cash flows of the Company for the year ended December 312025.II. Basis for Opinion

We conducted the audit in accordance with the Chinese Certified Public Accountants Auditing

Standards. The section on "The Responsibility of Certified Public Accountants for the Audit of Financial

Statements" in the audit report further elaborates on our responsibilities under these standards(where

applicable). In line with the Chinese Certified Public Accountants Code of Professional Ethics we were

independent from the Company and fulfilled other ethical responsibilities. We believe that the audit

evidence we obtained is sufficient and appropriate providing a basis for our audit opinion.

1III. Key Audit Items

Key audit matters are matters that we consider to be most important to the audit of the current

financial statements based on our professional judgment. The response to these matters is in the

context of the audit and the formation of the audit opinion on the financial statements as a whole and

we do not express opinions separately on these matters.

1. Revenue recognition

Please refer to Note III.25 and Note V.44 of the notes to the financial statements for details.

(1)Description

Teli Company's operating revenue primarily stems from property leasing and services as well as

gold and jewelry sales and services. In 2025 the Company achieved a revenue of 1.462 billion yuan a

decrease of 44.08% compared to the same period last year. Given that revenue is one of the key

performance indicators there is a risk that the management (hereinafter referred to as "management")

may have improperly recognized income to achieve specific goals or expectations. Therefore we have

identified revenue recognition as a critical audit matter.

(2) Responses in audit procedures

Our audit procedures for revenue recognition mainly include:

1) Understand the internal control design related to revenue recognition and test the effectiveness

of key control process operation;

2) By asking the management checking the sales contract and analyzing the point of transfer of

control related to revenue recognition the appropriateness of the specific method of revenue

recognition of the Company can be evaluated.

3) Implement analysis procedures for operating income including monthly revenue and gross profit

2margin fluctuation analysis for the current period comparative analysis of revenue price and gross

profit margin of major products and services with the same period last year and comparative analysis

with listed companies in the same industry.

4) Select the main customer confirmation of sales in the current period; for the samples without

reply check the sales contract check the post-period paymentinvoice and receipt support documents

to verify the authenticity of transactions.

5) Select test samples and check supporting documents related to revenue recognition in the

current year including lease contracts and invoices related to lease business as well as sales contracts

sales orders invoices warehouse delivery notes settlement statements and customer acknowledgment

receipts etc. to check whether revenue recognition is accurate.

6) Perform the cut-off test check the operating income confirmed before and after the balance

sheet date with supporting documents such as invoices commodity sales orders delivery notes and

customer receipt notes and evaluate whether the operating income is recognized in the appropriate

period.

7) Check the industrial and commercial information of new customers customers with large sales

changes in the current period and their related parties and check whether there are unidentified

potential related party relationships and transactions.

2. Recognition of the carrying amounts of investment property and property plant and equipment

For the disclosure see Notes Ⅲ15、16 and Ⅴ14、15.

(1)Description of matters

As of December 312025 the value of investment real estate and fixed assets surface of the Teli

Company is 1115777464.99 yuan accounting for 42.10% of the total assetswhich is material to the

financial statements. The book value of investment real estate and fixed assets involves significant

3management judgment including the economic usable life and residual value rate of fixed assets and

investment real estate. Since the evaluation of the book value of investment real estate and fixed assets

involves the significant judgment of the management and its importance to the consolidated financial

statements we determine the book value of investment real estate and fixed assets as the key audit

matters.

(2) Audit response

The audit procedures we performed in respect of the recognition of the carrying amounts of investment

property and property plant and equipment mainly include:

1) Understand the key internal controls related to the existence integrity and accuracy of

investment real estate and fixed assets evaluate the design of these internal controls determine

whether they are implemented and test the operation effectiveness of relevant internal controls;

2) Spot check the purchase contract payment documents invoices acceptance documents and

other materials of large assets;

3) To evaluate whether the management is reasonable to evaluate the usable life and net residual

value of investment real estate and fixed assets;

4) Obtain the ownership certificates of investment property and property plant and equipment as

well as the Company’s inventory count sheets perform inventory count procedures physically inspect

the usage status of investment property and property plant and equipment and assess whether there

are any indicators of impairment by combining the leasing and usage conditions of investment property

and property plant and equipment with the real estate market conditions.

5) Obtain the depreciation plan table of investment real estate and fixed assets and recalculate

whether the depreciation plan is accurate;

6) Check whether the information related to the investment real estate and fixed assets has been

4properly reported and disclosed in the financial statements.

IV.Other information

The management of the Company (hereinafter referred to as the Management) is responsible for

other information including the information covered in the Company 2025 annual report but excluding

the financial statements and our audit report.Our audit opinion on the financial statements does not cover other information and we do not

express any form of attestation conclusion on other information.In conjunction with our audit of the financial statements it is our responsibility to read other

information and in doing so to consider whether there is a material misstatement or apparent

misstatement of other information that is materially inconsistent with the financial statements or what we

have learned during our audit.Based on the work we have performed if we were to determine that there was a material

misstatement of other information we would report it. In this regard we have nothing to report.V. Responsibility of management and governance for financial statements

The management of the Company is responsible for preparing the financial statements in

accordance with the accounting standards of the enterprise to achieve fair reflection and designing

implementing and maintaining the necessary internal controls to ensure that there are no material

misstatements in the financial statements due to fraud or error.In preparing the financial statements management is responsible for assessing the ability of the

Company to continue as a going concern disclosing matters related to going concern (if applicable)

and applying the going concern assumption unless management plans to liquidate the Company

terminate operations or has no other realistic alternatives.The governance level is responsible for overseeing the financial reporting process of the Company.

5VI.The responsibility of certified public accountants for the audit of financial statements

Our objective is to obtain reasonable assurance as to whether the financial statements as a whole

are free of material misstatement due to fraud or error and to express an opinion that includes our audit.Reasonable assurance represents a high level of assurance but does not guarantee that an audit

conducted in accordance with auditing standards will always detect material misstatements when they

exist. A misstatement may be material if it is reasonably expected to affect economic decisions made by

users of the financial statements either individually or collectively based on the financial statements.In performing our audit in accordance with the auditing standards we exercise professional

judgment and maintain a professional skepticism. At the same time we perform the following:

(1) Identify and assess the risk of material misstatement in financial statements due to fraud or

error design and perform audit procedures to address these risks and obtain sufficient and appropriate

audit evidence as the basis for expressing an audit opinion. Since fraud may involve collusion forgery

intentional omission false statement or overriding internal controls the risk of failing to detect material

misstatements due to fraud is higher than the risk of failing to detect material misstatements due to

error.

(2) Understand the internal control related to the audit so as to design appropriate audit

procedures. (3) Evaluate the appropriateness of managements choice of accounting policies and the

rationality of accounting estimates and related disclosures.

(4) Conclude on the appropriateness of managements use of the going concern assumption. At the

same time based on the audit evidence obtained conclude whether there is significant uncertainty

regarding matters or conditions that could lead to significant doubt about the Company ability to

continue as a going concern. If we conclude that there is significant uncertainty auditing standards

require us to draw the attention of users of the financial statements to relevant disclosures in the

financial statements; if the disclosure is insufficient we should issue a qualified opinion. Our conclusions

are based on information available as of the date of the audit report. However future events or

6conditions may result in the Company being unable to continue as a going concern.

(5) Evaluate the overall presentation structure and content of the financial statements and

evaluate whether the financial statements fairly reflect the relevant transactions and events.

(6) Obtain sufficient and appropriate audit evidence on the financial information of entities or

business activities in Telco to express an opinion on the financial statements. We are responsible for

directing overseeing and performing the audit of the Group and assume full responsibility for the audit

opinion.We communicate with the governance layer on matters such as the scope and timing of the audit

plan and significant audit findings including those internal control deficiencies that we identified during

the audit that are noteworthy.We also provide a statement to the governance that we have complied with the ethical

requirements related to independence and communicate with the governance all relationships and other

matters that may be reasonably considered to affect our independence as well as the relevant

safeguards (if applicable).From the matters communicated with the governance level we determine which are most critical to

the audit of this periods financial statements and thus constitute key audit matters. We describe these

matters in our audit report unless laws and regulations prohibit their public disclosure or in rare cases if

it is reasonably expected that the negative consequences of communicating a matter in the audit report

would outweigh the benefits to public interest we determine that such matters should not be

communicated in the audit report.Grant Thornton Zhitong Auditor's signature and stamp

Certified Public Accountants LLP

Auditor's signature and stamp

7China · Beijing

Date of the auditor's report:April 202026

8Balance Sheet

As at 31 December 2025

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Item Note As at 31/12/2025 As at 31/12/2024Consolidated Company Consolidated Company

Current assets:

Cash at bank and on hand V.1 1 49229156.85 5 557917.51 3 77971359.69 2 5182064.77

Financial assets held for trading V.2 1 17410631.65 - 1 65630834.06 1 21340400.00

Derivative financial assets V.3 - - 292078.00 -

Bills receivable - - - -

Accounts receivable V.4 61009891.79 10650313.31 46564067.14 19714030.82

Financing receivables - - - -

Prepayments V.5 842625.42 239474.02 797409.91 96692.05

Other receivables V.6 49405335.51 3711404.11 8081783.33 2839370.67

Including: Interests receivable - - - -

Dividends receivable - - - -

Inventories V.7 59657540.72 - 127432191.55 -

Including: Data resources - - - -

Contract assets - - - -

Assets held for sale - - - -

Non-current assets due within one year V.8 87268498.36 65398799.73 91587627.94 91587627.94

Other current assets V.9 19312300.83 6580651.56 96743827.38 51886807.24

Total current assets 544135981.13 92138560.24 915101179.00 312646993.49

Non-current assets:

Debt investments - - - -

Other debt investments V.10 5 73849427.40 3 75653749.58 8 4724128.76 6 3517795.43

Long-term receivables V.11 - - - -

Long-term equity investments V.12 9 4475900.97 8 08086675.38 8 5091833.20 7 98702607.61

Other equity instruments investments V.13 - - - -

Other non-current financial assets - - - -

Investment properties V.14 1053907083.65 514855019.83 1099772133.10 530187087.36

Fixed assets V.15 61870381.34 11608977.55 70763683.25 13330517.88

Construction in progress V.16 5111882.70 1986361.94 3332141.19 1986361.94

Productive biological assets - - - -

Oil and gas assets - - - -

Right-of-use assets V.17 77920830.56 72189070.86 78558005.50 81973406.34

Intangible assets V.18 3062429.09 1388001.07 3775834.45 2203851.20

Including: Data resources - - - -

Development costs - - - -

Including: Data resources - - - -

Goodwill - - - -

Long-term deferred expenses V.19 34117850.87 18589616.08 48095409.37 20931913.29

Deferred tax assets V.20 6399715.44 - 5496778.78 -

Other non-current assets V.21 195306959.38 19429987.73 199748111.29 26969339.66

Total non-current assets 2106022461.40 1823787460.02 1679358058.89 1539802880.71

Total assets 2650158442.53 1915926020.26 2594459237.89 1852449874.20

1Balance Sheet(continued)

As at 31 December 2025

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Item Note As at 31/12/2025 As at 31/12/2024Consolidated Company Consolidated Company

Current liabilities: 　

Short-term loans V.23 1 1002344.41 - 1 20101444.43 -

Financial liabilities held for trading V.24 - - - -

Derivative financial liabilities V.25 2 702318.10 - 4 6660.00 -

Bills payable V.26 180000000.00 - 1 10000000.00 -

Accounts payable V.27 109353384.05 4 6372187.13 125555693.13 5 9250518.21

Advances from customers V.28 8 222394.47 5 11330.64 9 469503.75 1 118873.69

Contract liabilities V.29 3 604150.70 - 4 009504.59 -

Employee benefits payable V.30 4 2283881.13 3 5385505.68 3 6835623.94 3 0927714.69

Taxes payable V.31 2 9059082.08 1 2741797.74 3 6109740.02 2 1432181.88

Other payables V.32 1 39483702.52 7 1087817.06 126312280.55 1 20275555.64

Including: Interests payable - - - -

Dividends payable - - - -

Liabilities held for sale - - - -

Non-current liabilities due within one year V.33 1 0581548.92 9 188883.17 8 674869.40 8 212093.33

Other current liabilities V.34 2 214225.00 6 85494.59 6 142814.36 1 609232.42

Total current liabilities 5 38507031.38 1 75973016.01 583258134.17 2 42826169.86

Non-current liabilities:

Long-term loans - - - -

Bonds payable - - - -

Lease liabilities V.35 7 5441810.38 7 1397113.71 7 6541985.55 8 0617189.54

Long-term payables V.36 3 920160.36 - 3 920160.36 -

Provisions V.37 9 956800.00 - - -

Deferred income V.38 6 057271.67 - 7 837477.60 -

Deferred tax liabilities V.20 2 0155522.20 5 459612.17 2 5175508.48 7 188936.09

Other non-current liabilities - - - -

Total non-current liabilities 115531564.61 7 6856725.88 1 13475131.99 8 7806125.63

Total liabilities 6 54038595.99 2 52829741.89 6 96733266.16 330632295.49

Shareholders' equity:

Share capital V.39 4 31058320.00 4 31058320.00 4 31058320.00 431058320.00

Capital reserve V.40 4 30866408.50 4 28256131.23 4 30866408.50 428256131.23

Less: treasury shares - - - -

Other comprehensive income V.41 - 7606040.90 - 7632462.90 - 7606040.90 - 7632462.90

Specific reserve - - - -

Surplus reserve V.42 9 2661110.16 9 2661110.16 7 4222656.99 7 4222656.99

Retained earnings V.43 879664677.57 718753179.88 798343284.97 5 95912933.39

Total equity attributable to shareholders of the Company 1 826644475.33 1663096278.37 1726884629.56 1521817578.71

Non-controlling interests 1 69475371.21 - 1 70841342.17 -

Total shareholders' equity 1996119846.54 1 663096278.37 1 897725971.73 1 521817578.71

Total liabilities and shareholders' equity 2650158442.53 1 915926020.26 2 594459237.89 1 852449874.20

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

2Income Statement

For the year ended 31 December 2025

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Item Note Year ended 31/12/2025 Year ended 31/12/2024Consolidated Company Consolidated Company

I.Operating income V.44 1461603400.53 117402423.15 2613678204.37 1 18323197.59

Less: operating costs V.44 1212036648.67 53554271.59 2376764300.06 5 1537706.69

Taxes and surcharges V.45 10972011.00 1668852.43 13172648.28 1 711412.68

Selling and distribution expenses V.46 15669036.29 1294836.49 22232680.89 3 339658.26

General and administrative expenses V.47 58791177.35 45160833.87 51362592.45 4 2011001.83

Research and development expenses V.48 3098228.24 - 3268819.88 -

Financial expenses V.49 4483061.95 2936217.17 6389014.69 1 410770.64

Including: Interest expenses 6563081.07 3075790.53 9096305.49 2 904506.30

Interest income 2571339.77 1 56575.30 2984792.54 1 598304.15

Add: Other income V.50 2309127.32 2 15922.09 6597836.15 7 3023.60

Investment income ("-" for losses) V.51 17211942.15 173267700.81 19470482.47 1 03747991.59

Including: Income from investment

in associates and 30249513.09 29384067.77 24212981.63 2 3580345.63

joint ventures ("-" for losses)

Gain from derecognition of financial assets measured

at amortized cost ("-" for losses)

Net exposure hedging gains ("-" for losses)

Gains from changes in fair value ("-" for losses) V.52 -2732268.58 - 1096618.04 -10567743.62 - 12693036.25

Credit impairment losses ("-" for losses) V.53 -1080621.26 - 59471.13 5596513.26 - 305769.74

Impairment losses ("-" for losses) V.54 -84463.30 - - -

Gains from assets disposal ("-" for losses) V.55 -7087.09 - 32362.39 -227.20 -

II.Operating profit (" -" for losses) 172169866.27 185082582.94 161585009.18 1 09134856.69

Add: Non-operating income V.56 13030508.37 1777508.98 3900953.07 1 187007.86

Less: Non-operating expenses V.57 10137861.33 - 2195959.84 7 88792.71

III.Profit before income tax (" -" for losses) 175062513.31 186860091.92 163290002.41 1 09533071.84

Less: Income tax expenses V.58 33562806.50 2475560.26 24258270.37 6 869366.57

IV.Net profit for the year (" -" for net losses) 141499706.81 184384531.66 139031732.04 1 02663705.27

(1) Classification according to operation continuity

Including: Net profit from continuing operations

("-" for net loss) 141499706.81 184384531.66 139031732.04 1 02663705.27

Net profit from discontinued operations

("-" for net loss)

(2) Classification according to attibute

Including: Shareholders of the company("-" for net loss) 142865677.77 184384531.66 136629870.80 1 02663705.27

Non-controlling interests("-" for net loss) -1365970.96 2401861.24

V.Other comprehensive income net of tax - - -287488.25 - 287488.25

Other comprehensive income (net of tax) attributable to shareholders

of the company -287488.25 - 287488.25

A.Items that will not be reclassified to profit or loss - - -287488.25 - 287488.25

a.Changes in fair value of other equity instrument investments -287488.25 - 287488.25

B. Items that may be reclassified to profit or loss - - - -

Other comprehensive income (net of tax) attributable to non-controlling

interests

VI.Total comprehensive income for the year 141499706.81 184384531.66 138744243.79 1 02376217.02

Attributable to:

Shareholders of the company 142865677.77 184384531.66 136342382.55 1 02376217.02

Non-controlling interests -1365970.96 2401861.24

VII.Earnings per share

(1) Basic earnings per share 0.33 0.32

(2)Diluted earnings per share

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

3Cash Flow Statement

For the year ended 31 December 2025

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Item Note Year ended 31/12/2025 Year ended 31/12/2024Consolidated Company Consolidated Company

I.Cash flows from operating activities

Proceeds from sales of goods or rendering of services 1930502946.37 1 34928536.63 4572552357.58 1 31659527.09

Refund of taxes - - 13271889.24 -

Proceeds from other operating activities V.59（1） 124013418.42 2 1034856.33 76743352.97 1 10406614.70

Sub-total of cash inflows 2054516364.79 1 55963392.96 4662567599.79 2 42066141.79

Payment for goods and services 1457946198.61 1 9524973.16 4066869141.07 2 8450836.37

Payment to and for employees 52052045.52 3 5628808.05 50261809.42 3 2839148.01

Payments of various taxes 74306269.36 1 8038709.57 75339841.21 9 851486.55

Payment for other operating activities V.59（2） 142457953.42 6 2714011.72 79807994.24 1 44407205.44

Sub-total of cash outflows 1726762466.91 1 35906502.50 4272278785.94 2 15548676.37

Net cash flows from operating activities 327753897.88 2 0056890.46 390288813.85 2 6517465.42

II.Cash flows from investing activities

Proceeds from disposal of investments 929974150.16 3 62474150.16 820139644.49 4 92856726.33

Investment income received 32897358.15 1 47997580.33 15712636.00 1 5000000.00

Net proceeds from disposal of fixed assets intangible assets and

other long-term assets 59529.93 3 325.01 1974.82 -

Net proceeds from disposal of subsidiaries and other business units - - - -

Proceeds from other investing activities V.59（4） - - 5964034.76 4 7180211.11

Sub-total of cash inflows 962931038.24 5 10475055.50 841818290.07 5 55036937.44

Payment for acquisition of fixed assets intangible assets and other

long-term assets 23923091.80 1 8841201.56 34257817.98 2 2657919.30

Payment for acquisition of investments 1311058482.50 4 75961468.80 985536930.32 5 12236930.32

Net payment for acquisition of subsidiaries and other business units - - - -

Payment for other investing activities V.59（6） 10561808.00 - 14659543.80 6 400000.00

Sub-total of cash outflows 1345543382.30 4 94802670.36 1034454292.10 5 41294849.62

Net cash flows from investing activities - 382612344.06 1 5672385.14 - 192636002.03 1 3742087.82

III.Cash flows from financing activities

Proceeds from investors - - - -

Including: Proceeds from non-controlling shareholders of

subsidiaries - - - -

Proceeds from borrowings 64500000.00 - 415000000.00 -

Proceeds from issuing bonds - - - -

Proceeds from other financing activities - - - -

Sub-total of cash inflows 64500000.00 - 415000000.00 -

Repayments of borrowings 173500000.00 - 440000000.00 -

Payment for dividends profit distributions or interest 45344739.19 4 3105832.00 19419827.42 1 3408159.80

Including: Dividends and profits paid to non-controlling

shareholders of subsidiaries - - - -

Payment for other financing activities V.59（7） 13692202.73 1 2247590.86 12180403.46 1 0474541.74

Sub-total of cash outflows 232536941.92 5 5353422.86 471600230.88 2 3882701.54

Net cash flows from financing activities - 168036941.92 -55353422.86 - 56600230.88 - 23882701.54

IV.Effect of foreign exchange rate changes on cash and cash

equivalents - - - -

V.Net increase in cash and cash equivalents - 222895388.10 -19624147.26 141052580.94 1 6376851.70

Add: Cash and cash equivalents at the beginning of the year 301275968.63 2 5182064.77 160223387.69 8 805213.07

VI.Cash and cash equivalent at the end of the year 78380580.53 5 557917.51 301275968.63 2 5182064.77

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

4Consolidated Statement of Changes in Shareholders' Equity

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Year ended 31/12/2025

Item Attributable to shareholders' equity of the parent company

Share capital Capital reserve Less: treasury Other

Non-controlling Total

shares comprehensive Specific reserve Surplus reserve Retained earnings Sub-total interests

I.Balance at the end of last year 4 31058320.00 430866408.50 - -7606040.90 - 7 4222656.99 798343284.97 1726884629.56 170841342.17 1 897725971.73

Add：Changes in accounting policies - -

Correction of prior period errors - -

Business combinations under common control - -

Others - -

II.Balance at the beginning of the year 4 31058320.00 430866408.50 - -7606040.90 - 7 4222656.99 798343284.97 1726884629.56 170841342.17 1 897725971.73

III.Changes in equity during the year( " - " for decrease) - - - - - 1 8438453.17 81321392.60 99759845.77 -1365970.96 9 8393874.81

(I)Total comprehensive income 142865677.77 142865677.77 -1365970.96 1 41499706.81

(II)Shareholders' contributions and decrease of capital - - - - - - - - - -

1.Contribution by ordinary shareholders - -

2. Equity settled share-based payments - -

3. Others - -

(III) Appropriation of profits - - - - - 1 8438453.17 - 61544285.17 -43105832.00 - -43105832.00

1. Appropriation for surplus reserves 1 8438453.17 - 18438453.17 - -

2. Distributions to shareholders - 43105832.00 -43105832.00 -43105832.00

3. Others - -

(IV) Transfer within equity - - - - - - - - - -

1.Share capital increased by capital reserves transfer - -

2.Share capital increased by surplus reserves transfer - -

3.Offset against losses - -

4.Other comprehensive income carried forward to retained

earnings - -

5.Others - -

(V)Specific Reserve - - - - - - - - - -

1. Appropriation during the year - -

2.Utilisation during the year - -

(VI)Others - -

IV.Balance at the end of the year 4 31058320.00 430866408.50 - -7606040.90 - 9 2661110.16 879664677.57 1826644475.33 169475371.21 1 996119846.54

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

5Consolidated Statement of Changes in Shareholders' Equity

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Year ended 31/12/2024

Item Attributable to shareholders' equity of the parent company Non-controlling

Share capital Capital reserve Less: treasury Othershares comprehensive Specific reserve Surplus reserve Retained earnings Sub-total interests

Total

I.Balance at the end of last year 431058320.00 430866408.50 - -7318552.65 - 6 3956286.46 685342592.62 1603905054.93 127166863.09 1731071918.02

Add：Changes in accounting policies - -

Correction of prior period errors - -

Business combinations under common control - -

Others - -

II.Balance at the beginning of the year 431058320.00 430866408.50 - -7318552.65 - 6 3956286.46 685342592.62 1603905054.93 127166863.09 1731071918.02

III.Changes in equity during the year( " - " for decrease) - - - -287488.25 - 1 0266370.53 113000692.35 122979574.63 43674479.08 166654053.71

(I)Total comprehensive income -287488.25 136629870.80 136342382.55 2401861.24 138744243.79

(II)Shareholders' contributions and decrease of capital - - - - - - - - - -

1.Contribution by ordinary shareholders - -

2. Equity settled share-based payments - -

3. Others - -

(III) Appropriation of profits - - - - - 1 0266370.53 -23629178.45 -13362807.92 - -13362807.92

1. Appropriation for surplus reserves 1 0266370.53 -10266370.53 - -

2. Distributions to shareholders -13362807.92 -13362807.92 -13362807.92

3. Others - -

(IV) Transfer within equity - - - - - - - - - -

1.Share capital increased by capital reserves transfer - -

2.Share capital increased by surplus reserves transfer - -

3.Offset against losses - -

4.Other comprehensive income carried forward to retained

earnings - -

5.Others - -

(V)Specific Reserve - - - - - - - - - -

1. Appropriation during the year - -

2.Utilisation during the year - -

(VI)Others - 41272617.84 41272617.84

IV.Balance at the end of the year 431058320.00 430866408.50 - -7606040.90 - 7 4222656.99 798343284.97 1726884629.56 170841342.17 1897725971.73

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

6Statement of Changes in Shareholders' Equity

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Year ended 31/12/2025

Item Share capital Capital reserve Less: treasury Other comprehensiveshares income Specific reserve Surplus reserve Retained earnings Total

I.Balance at the end of last year 431058320.00 4 28256131.23 - - 7632462.90 - 7 4222656.99 5 95912933.39 1521817578.71

Add：Changes in accounting policies -

Correction of prior period errors -

Others -

II.Balance at the beginning of the year 431058320.00 4 28256131.23 - - 7632462.90 - 7 4222656.99 5 95912933.39 1521817578.71

III.Changes in equity during the year( " - " for decrease) - - - - - 1 8438453.17 1 22840246.49 141278699.66

(I)Total comprehensive income 1 84384531.66 184384531.66

(II)Shareholders' contributions and decrease of capital - - - - - - - -

1.Contribution by ordinary shareholders -

2.Contribution by other equity instrument investors -

3. Equity settled share-based payments -

4. Others -

(III) Appropriation of profits - - - - - 1 8438453.17 -61544285.17 -43105832.00

1. Appropriation for surplus reserves 1 8438453.17 -18438453.17 -

2. Distributions to shareholders -43105832.00 -43105832.00

3. Others -

(IV) Transfer within equity - - - - - - - -

1.Share capital increased by capital reserves transfer -

2.Share capital increased by surplus reserves transfer -

3.Offset against losses -

4.Other comprehensive income carried forward to retained

earnings -

5.Others -

(V)Specific Reserve - - - - - - - -

1. Appropriation during the year -

2.Utilisation during the year -

(VI)Others -

IV.Balance at the end of the year 431058320.00 4 28256131.23 - - 7632462.90 - 9 2661110.16 7 18753179.88 1663096278.37

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

7Statement of Changes in Shareholders' Equity

Prepared by：Shenzhen Tellus Holding Co. Ltd. Expressed in RMB

Year ended 31/12/2024

Item Share capital Capital reserve Less: treasury Othershares comprehensive Specific reserve Surplus reserve Retained earnings Total

I.Balance at the end of last year 431058320.00 428256131.23 -7344974.65 6 3956286.46 5 16878406.57 1432804169.61

Add：Changes in accounting policies -

Correction of prior period errors -

Others -

II.Balance at the beginning of the year 431058320.00 428256131.23 - -7344974.65 - 6 3956286.46 5 16878406.57 1432804169.61

III.Changes in equity during the year( " - " for decrease) - - - -287488.25 - 1 0266370.53 7 9034526.82 89013409.10

(I)Total comprehensive income -287488.25 1 02663705.27 102376217.02

(II)Shareholders' contributions and decrease of capital - - - - - - - -

1.Contribution by ordinary shareholders -

2.Contribution by other equity instrument investors -

3. Equity settled share-based payments -

4. Others -

(III) Appropriation of profits - - - - - 1 0266370.53 -23629178.45 -13362807.92

1. Appropriation for surplus reserves 1 0266370.53 -10266370.53 -

2. Distributions to shareholders -13362807.92 -13362807.92

3. Others -

(IV) Transfer within equity - - - - - - - -

1.Share capital increased by capital reserves transfer -

2.Share capital increased by surplus reserves transfer -

3.Offset against losses -

4.Other comprehensive income carried forward to retained

earnings -

5.Others -

(V)Specific Reserve - - - - - - - -

1. Appropriation during the year -

2.Utilisation during the year -

(VI)Others -

IV.Balance at the end of the year 431058320.00 428256131.23 - -7632462.90 - 7 4222656.99 5 95912933.39 1521817578.71

Legal reprensentative: The person in charge of accounting affairs: The head of the accounting department:

8ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Notes to the Financial Statements

I. BASIC INFORMATION ABOUT THE COMPANY

1. Company Overview

Shenzhen Tellus (Group) Co. Ltd.(hereinafter referred to as “the Company”) was developed from the

Shenzhen Machinery Industry Co. Ltd approved by the Shenzhen Municipal People's Government

Office in the "Reply on the Restructuring of Shenzhen Machinery Industry Company into Shenzhen Teli

Machinery Co. Ltd." (Shen Fu Ban Fu [1991] No. 1012).The company was registered in Shenzhen

Administration for Industry and Commerce on November 10 1986. The company now holds a business

license with a unified social credit code of 91440300192192210U with a registered capital of CNY

431058320.00 and a total of431058320 shares including 392778320 sharesof A share and

38280000 sharesof B share.The operating address of the Company's headquarters is 3rd and 4th

floors Teli Building Shuibei 2nd Road Luohu District Shenzhen. The legal representative is Fu

Chunlong.In 1993 with the approval of the reply on the reorganization of Shenzhen Tellus Machinery Co. Ltd. into

a public company limited by shares (Shen Fu Ban Fu [1992] No. 1850) issued by the General Office of

Shenzhen Municipal People's Government and the reply on the issuance of shares by Shenzhen Tellus

electromechanical Co. Ltd. (Shen Ren Yin Fu Zi [1993] No. 092) issued by the Shenzhen Special

Economic Zone Branch of the people's Bank of China the company issued shares for the first time and

was reorganized into a public company limited by shares. At this moment the whole share capital is

166.88 million shares including the original 120.9 million shares with 45.98 million new shares. The new

share is divided into two parts: A Share - 25.98 million shares B Share - 20.00 million shares. The par

value of the Company's shares is CNY 1 per share. On June 21 1993 the Company's shares were

listed and traded in Shenzhen Stock Exchange.According to the decision made by general meeting of shareholders in 1993 the Company distributed a

2 for 10 bonus shares with cash dividend of CNY 0.5 for every 10 shares. After that the whole capital

changed into CNY 200256000.00.On 28 May 1995 the Group shareholder meeting agreed about plan of distributing bonus and

increasing capital. On the basis of 200256000 shares in the end of 1994 the Group distributed a 0.5

for 10 bonus shares and granted additional 0.5 shares and cash dividend of CNY 0.5 for every 10

shares. After that the Group’s share capital increased to CNY 220281600.00.According to the resolution of the Fourth Extraordinary General Meeting of Shareholders of the

company in 2014 and approved by the China Securities Regulatory Commission's "Approval of the

Non-public Issuance of Shares by Shenzhen Special (Group) Co. Ltd." (CSRC Approval [2015] No.

173) the Company issued CNY ordinary shares (A shares) 77000000 sharesto Shenzhen Special

Economic Zone Development Group Co. Ltd. Ltd and Shenzhen Yuanzhifuhai jewelry industry

investment enterprise (limited partnership). After that the Company’s capital increased to CNY

297281600.00.

According to the decision made by general meeting of shareholders in 2018 the Company distributed a

4.5 for 10 bonus shares. The Company’s capital changed into CNY 431058320.00.

Registered Address: 3rd Floor Teli Building No. 56 Shuibei 2nd Road Luohu District Shenzhen

9ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Headquarters Address: 3rd Floor Teli Building No. 56 Shuibei 2nd Road Luohu District Shenzhen

Main business activities: property leasing and services jewelry operation etc.The financial statements and the notes thereto have been approved by the 18th meeting of the 10th

Board of Directors on April 202026.

2.Common Terminology

In this report unless the context otherwise requires the following abbreviations and terms shall have

the meanings set out below:

Abbreviation/Term Refers to

The Group Shenzhen Teli (Group) Co. Ltd. and its consolidated entities.The Company Shenzhen Teli (Group) Co. Ltd.Consolidated Subsidiaries

Teli Shuibei Jewelry Shenzhen Teli Shuibei Jewelry Co. Ltd. a wholly-owned subsidiary ofthe Company.Teli Jewelry Technology Shenzhen Teli Jewelry Technology Development Co. Ltd. a subsidiarycontrolled by Teli Shuibei Jewelry.Automobile Supply & Sales Shenzhen Automobile Industry Supply and Marketing Company awholly-owned subsidiary of Teli Shuibei Jewelry.Teli Real Estate Shenzhen Tefa Teli Real Estate Co. Ltd. a wholly-owned subsidiary ofthe Company.Bao'an Shiquan Shenzhen Bao'an Shiquan Industrial Co. Ltd. a wholly-owned subsidiaryof Teli Real Estate.Teli Chuangying Shenzhen Teli Chuangying Technology Co. Ltd. a wholly-ownedsubsidiary of the Company.Xin Yongtong Testing Shenzhen Xin Yongtong Motor Vehicle Testing Equipment Co. Ltd. asubsidiary controlled by the Company.Zhongtian Industrial Shenzhen Zhongtian Industrial Co. Ltd. a wholly-owned subsidiary ofthe Company.Shanghai Fanyue Shanghai Fanyue Diamond Co. Ltd. a wholly-owned subsidiary ofZhongtian Industrial.Huari Auto Sales Shenzhen Huari Automobile Sales and Service Co. Ltd. a subsidiarycontrolled by the Company.Tefa Huari Shenzhen Tefa Huari Automobile Enterprise Co. Ltd. a subsidiarycontrolled by the Company.Huari Anxin Shenzhen Huari Anxin Automobile Testing Co. Ltd. a subsidiarycontrolled by Tefa Huarui.Teli Baoku Shenzhen Teli Baoku Supply Chain Technology Co. Ltd. a wholly-ownedsubsidiary of the Company.Shenzhen Jewelry Shenzhen Jewelry Industry Service Co. Ltd. a subsidiary controlled bythe Company.Guorun Gold Guorun Gold (Shenzhen) Co. Ltd. a subsidiary controlled by theCompany.II. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

The financial statements are prepared in accordance with the Accounting Standards for Business

Enterprises issued by the Ministry of Finance of the People's Republic of China along with their

application guidelines interpretations and other relevant regulations (collectively referred to as

"Accounting Standards for Business Enterprises"). Additionally the company discloses financial

10ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

information in accordance with the China Securities Regulatory Commission's "General Provisions on

Financial Reports for Publicly Issued Companies (Revised in 2023) Rule No. 15".The financial statements are prepared on a going concern basis.The company's accounting is based on the accrual basis. Except for certain financial instruments the

financial statements are measured at historical cost. If assets are impaired appropriate impairment

provisions are made in accordance with relevant regulations.III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES

The company has determined the depreciation of investment property depreciation of fixed assets and

revenue recognition policies based on its own production and operation characteristics. Specific

accounting policies are disclosed in Note III. 15 16 25.and 28.

1. Statement of compliance with the Accounting Standards for Business Enterprises

The financial statements have been prepared in compliance with the Accounting Standards for Business

Enterprises to truly and completely present the Company’s (and consolidated) financial position as at 31

December 2025 and the Company’s (and consolidated) operating results and cash flows for the year

ended 31 December 2025.

2. Accounting Period

The accounting period of the Company is from 1 January to 31 December.

3. Operating Cycle

The normal operating cycle of the Company is twelve months.

4. Functional currency

The Company and domestic subsidiaries use Renminbi (“RMB”) as their functional currency. The

financial statements of the Company have been prepared in RMB.

5. Determining method and selecting basis of materiality criterion

Project Materiality standard

Material individual provision for impairment of Amount exceeding CNY 1000000.00 or account for more than

accounts receivable 1% of all types of receivables

Material construction in progress Budget amount for individual projects exceeding CNY20000000.00

Individual accounts payable/other payable with aging exceeding 1

Material accounts payable and other payable year is more than 1% of the total accounts payable and amount

greater than CNY 1000000.00

Total revenue of the a subsidiary accounts for more than 10% of

Material non-wholly-owned subsidiaries the total revenue of the consolidated statement or the absolutevalue of net profit accounts for more than 10% of the net profit of

the consolidated statement.Single investment activities account for more than 10% of the

Material investment activities items total cash inflows or outflows related to receiving or payinginvestment activities or the total outflow is greater than CNY

100000000.00

11ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Project Materiality standard

For individual long-term equity investments in investee entities if

Material joint ventures or associates the carrying amount exceeds CNY 15 million or if the investmentprofit or loss under the equity method accounts for more than 3%

of the consolidated net profit of the company.Material subsequent events as of the balance sheet The company considers the profit distribution situation after the

date balance sheet date as significant.

6. Accounting treatments for business combinations involving enterprises under common control and

business combinations not involving enterprises under common control

(1) Business combinations involving enterprises under common control

For a business combination involving enterprises under common control the assets acquired and

liabilities assumed are measured based on their carrying amounts in the consolidated financial

statements of the ultimate controlling party at the combination date. The difference between the carrying

amount of the net assets acquired and the consideration paid for the combination is adjusted against in

the capital reserve with any excess adjusted against retained earnings.For step-by-step implementation of mergers of enterprises under common control through multiple

transactions

The assets and liabilities acquired by the acquiring party in the merger are measured at the carrying

amount of the acquired party in the consolidated financial statements of the ultimate controlling party on

the merger date. The sum of the carrying amount of the investment held before the merger and the

carrying amount of the consideration paid on the merger date is compared with the carrying amount of

the net assets acquired in the merger. The difference is adjusted to capital surplus. If the capital surplus

is insufficient retained earnings are adjusted accordingly. Long-term equity investments held by the

acquiring party before obtaining control of the acquired party from the date of obtaining the original

equity to the later of the date when the acquiring party and the acquired party are under the same

ultimate control to the merger date any related gains or losses other comprehensive income and

changes in other owners' equity already recognized should be deducted from the comparative retained

earnings for the reporting period or current period profit or loss respectively.

(2) Business combinations involving enterprises not under common control

For business combinations involving enterprises not under common control the consideration costs

include acquisition-date fair value of assets transferred liabilities incurred or assumed and equity

securities issued by the acquirer in exchange for control of the acquiree. At the acquisition date the

acquired assets liabilities and contingent liabilities of the acquiree are measured at their fair value. The

acquiree’s identifiable asset liabilities and contingent liabilities are recognised at their acquisition-date

fair value.Where the combination cost exceeds the acquirer’s interest in the fair value of the acquiree’s identifiable

net assets the difference is recognised as goodwill and subsequently measured on the basis of its cost

less accumulated impairment provisions. Where the combination cost is less than the acquirer’s interest

in the fair value of the acquiree’s identifiable net assets the difference is recognised in profit or loss for

the current period after reassessment.For step-by-step implementation of mergers of enterprises not under common control through multiple

transactions

12ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The merger cost is the sum of the consideration paid on the acquisition date and the fair value of the

equity interest in the acquired party held before the acquisition date. For the equity interest in the

acquired party held before the acquisition date it is remeasured at fair value on the acquisition date

and the difference between fair value and carrying amount is recognized in profit or loss for the current

period as investment income. For equity interest in the acquired party held before the acquisition date

other comprehensive income and changes in other owners' equity are transferred to profit or loss for the

current period. This excludes other comprehensive income related to the re-measurement of defined

benefit plans' net liabilities or assets due to the re-measurement of the investee's net assets and other

comprehensive income related to non-trading equity instrument investmentdesignated as fair value

through other comprehensive income.

(3) Transaction costs for business combination

The overhead for the business combination including the expenses for audit legal services valuation

advisory and other administrative expenses are recorded in profit or loss for the current period when

incurred. The transaction costs of equity or debt securities issued as the considerations of business

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

7. Basis in determination of control and preparation of the consolidated financial statements

(1) Basis in determination of control

The scope of consolidated financial statements is determined based on control. Control refers to the

power of the Company over an investee enjoying variable returns through involvement in the investee's

activities and having the ability to influence the amount of returns using its power over the investee.When changes in relevant facts and circumstances lead to changes in the elements involved in defining

control the Company will conduct a reassessment.In determining whether to include a structured entity in the scope of consolidation the Company

evaluates whether it controls the structured entity based on all facts and circumstances including the

purpose and design of the structured entity the types of variable returns identified and whether it

assumes all or part of the variability of returns through involvement in its activities.

(2) Methods of Preparing Consolidated Financial Statements

Consolidated financial statements are prepared based on the financial statements of the Company and

its subsidiaries supplemented by other relevant information compiled by the Company. When

preparing consolidated financial statements the Company and its subsidiaries maintain consistent

accounting policies and reporting periods and significant transactions and balances between the

entities are offset.Subsidiaries and operations acquired due to business combinations under the same control during the

reporting period are treated as included in the Company's consolidation scope from the date they came

under the ultimate control until the end of the reporting period with their operating results and cash

flows included in the consolidated income statement and cash flow statement respectively.Subsidiaries and operations acquired due to business combinations under different control during the

reporting period have their revenues expenses and profits included in the consolidated income

statement and their cash flows included in the consolidated cash flow statement from the acquisition

date to the end of the reporting period.

13ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The portion of the equity of subsidiaries not owned by the Company is separately presented under

minority interests in the consolidated balance sheet. The share of the net profit attributable to minority

interests in the subsidiary's net profit for the period is presented as "Minority Interests in Net Profit" in

the consolidated income statement. If the minority shareholders bear losses of the subsidiary exceeding

their share of equity at the beginning of the period the remaining balance is deducted from minority

interests.

(3) Acquisition of Minority Interests in Subsidiaries

The difference between the cost of acquiring minority interests and the proportionate share of the net

assets of the subsidiary calculated based on the new ownership percentage from the acquisition date or

merger date onwards as well as the difference between the proceeds from the disposal of equity

investments in the subsidiary and the proportionate share of the net assets of the subsidiary calculated

based on the original ownership percentage is adjusted to the capital reserve in the consolidated

balance sheet. If the capital reserve is insufficient it is offset against retained earnings.

(4) Treatment of Loss of Control over Subsidiaries

In the event of partial disposal of equity investments or other reasons for loss of control over a

subsidiary the remaining equity is remeasured at fair value on the date control is lost. The consideration

received for the disposal of equity investments together with the fair value of the remaining equity less

the proportionate share of the net asset book value and goodwill calculated based on the original

ownership percentage is recognized as investment income for the period in which control is lost.Other comprehensive income related to equity investments in the original subsidiary is accounted for

upon loss of control using the same basis as the direct disposal of related assets or liabilities and other

equity movements related to the equity method accounting of the original subsidiary are transferred to

profit or loss upon loss of control.

8. Joint arrangement classification and accounting treatment for joint operation

(1) Joint operations

A joint operation is a joint arrangement whereby the joint operators have rights to the assets and

obligations for the liabilities relating to the arrangement.The Company recognizes the following items relating to its interest in a joint operation and account for

them in accordance with relevant accounting standards:

A. Its solely-held assets and its share of any assets held jointly;

B. Its solely-assumed liabilities and its share of any liabilities assumed jointly;

C. Its revenue from the sale of its share of the output arising from the joint operation;

D. Its share of the revenue from the sale of the output by the joint operation; and

E. Its solely-incurred expenses and its share of any expenses incurred jointly.

(2) Joint ventures

14ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement

have rights to the net assets of the arrangement.The Company adopts equity method under long-term equity investment in accounting for its investment

in joint venture.

9. Cash and cash equivalents

Cash comprises cash in hand and deposits that can be readily withdrawn on demand. Cash equivalents

include short-term highly liquid investments that are readily convertible to known amounts of cash and

are subject to an insignificant risk of change in value.

10. Foreign currency transactions and foreign currency financial statement translation

Foreign currency transactions are translated to the functional currency of the Company at the spot

exchange rates on the dates of the transactions.Monetary items denominated in foreign currencies are translated to Renminbi at the spot exchange rate

at the balance sheet date. The resulting exchange differences between the spot exchange rate on

balance sheet date and the spot exchange rate on initial recognition or on the previous balance sheet

date are recognised in profit or loss. Non-monetary items that are measured at historical cost in foreign

currencies are translated to Renminbi using the exchange rate at the transaction date. Non-monetary

items that are measured at fair value in foreign currencies are translated using the exchange rate at the

date the fair value is determined. The resulting exchange differences are recognised in profit or loss or

other comprehensive income according to the nature of non-monetary items.

11. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one enterprise and a financial

liability or an equity instrument of another enterprise.

(1) Recognition and derecognition of financial instruments

A financial asset or a financial liability is recognized when the Company becomes a party to the

contractual provisions of a financial instrument.If one of the following criteria is met a financial asset is derecognised:

* The contractual rights to the cash flows from the financial asset expire; or

* The financial asset was transferred and the transfer qualifies for derecognition in accordance with

criteria set out below in “Transfer of financial assets”.A financial liability (or part of it) is derecognized when its contractual obligation (or part of it) is

discharged or cancelled or expires. If the Company (as a debtor) makes an agreement with the creditor

to replace the current financial liability with assuming a new financial liability and contractual provisions

are different in substance the current financial liability is derecognized and a new financial liability is

recognized.If the financial assets are traded regularly the financial assets are recognized and derecognized at the

transaction date.

15ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(2) Classification and measurement of financial assets

The Company classifies financial assets as measured at amortized cost fair value through other

comprehensive income or fair value through profit or loss at initial recognition on the basis of both the

entity’s business model for managing the financial assets and the contractual cash flow characteristics

of the financial asset.Financial assets are measured at fair value at initial recognition. For financial assets measured at fair

value through profit or loss the related transaction costs are directly recorded in current profit or loss;

for other types of financial assets related transaction costs are included in the initial recognition amount.For receivables arising from the sale of products or the provision of services that do not contain or take

into account significant financing components the amount of consideration that the Company is

expected to be entitled to collect shall be the initial recognition amount.Financial assets measured at amortized cost

The Company classifies the financial assets that meet the following conditions and are not designated

as measured at fair value through profit or loss as financial assets measured at amortized cost:

* The Company's business model of managing the financial assets aims at collecting contractual cash

flows;

* The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition the effective interest rate method is adopted to measure the amortized cost

of such financial assets. Gains or losses arising from financial assets that are measured at amortized

cost and are not part of any hedging relationship shall be recorded in the current profit or loss when the

financial assets are derecognized amortized according to the effective interest method or impaired.Financial assets measured at fair value through other comprehensive income

The Company classifies the financial assets that simultaneously meet the following conditions and are

not specified as measured at fair value through profit or loss as financial assets measured at fair value

through other comprehensive income:

* The Company's business model of managing the financial asset aims at both collecting contractual cash

flows and selling the financial assets.* The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.After the initial recognition this type of financial assets are subsequently measured at fair value. The

interest loss allowance or gain and exchange loss or gain calculated using the effective interest rate

method are included in the current profit or loss while other gains or losses are included in other

comprehensive income. When derecognized the accumulated gains or losses previously recorded in

other comprehensive income shall be transferred out from other comprehensive income and recorded in

the current profit or loss.Financial assets measured at fair value through profit or loss

16ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

In addition to the above financial assets measured at amortized cost and measured at fair value through

other comprehensive income the Company classifies all other financial assets as financial assets

measured at fair value through profit or loss. At the time of initial recognition in order to eliminate or

significantly reduce accounting mismatches the Company irrevocably designates some financial assets

that should have been measured at amortized cost or measured at fair value through other

comprehensive income as financial assets measured at fair value through profit or loss.After the initial recognition this kind of financial asset is subsequently measured at fair value and the

gains or losses (including interest and dividend income) generated are recorded into the current profit or

loss unless the financial asset is part of the hedging relationship.However for non-trading equity instrument investment the Company irrevocably designates it as a

financial asset measured at fair value through other comprehensive income at initial recognition. The

designation is made on a single investment basis and the relevant investments meet the definition of an

equity instrument from issuer's perspective.After the initial recognition this kind of financial assets are subsequently measured at fair value.Qualified dividend income is included in the profit or loss other gains or losses and changes in fair value

are included in other comprehensive income. When derecognized the accumulated gains or losses

previously recorded in other comprehensive income are transferred out and recorded in retained

earnings.The business model of managing financial assets refers to how the Company manages financial assets

to generate cash flows. The business model determines whether the cash flow from the financial assets

under management of the Company is derived from the receipt of contractual cash flows the sale of

financial assets or a combination of both. The Company determines its business model for managing

financial assets on the basis of objective facts and the specific business objectives for the management

of financial assets determined by key management personnel.The Company assesses the contractual cash flow characteristics of financial assets to determine

whether the contractual cash flows generated by the relevant financial assets on specified dates are

solely payments of principal and interest on the principal amount outstanding. Principal refers to the fair

value of financial assets at initial recognition. Interest includes consideration for the time value of money

the credit risk associated with the amount of principal outstanding over a given period and other basic

lending risks and costs as well as a profit margin. In addition the Company assesses contractual terms

that may cause a change in the time distribution or amount of the contractual cash flows of financial

assets to determine whether they meet the requirements of the above contractual cash flow

characteristics.Only when the Company changes the business model of managing financial assets all affected related

financial assets shall be reclassified on the first day of the first reporting period after the change of the

business model otherwise the financial assets shall not be reclassified after the initial recognition.

(3) Classification and measurement of financial liabilities

At the time of initial recognition the financial liabilities of the Company are classified as: financial

liabilities measured at fair value through profit or loss and financial liabilities measured at amortized

cost. For financial liabilities that are not classified as measured at fair value through profit or loss

relevant transaction costs are included in their initial recognized amounts.

17ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Financial liabilities measured at fair value through profit or loss

Financial liabilities measured at fair value through profit or loss include financial liabilities held for trading

and financial liabilities designated at the time of initial recognition as measured at fair value through

profit or loss. For such financial liabilities the subsequent measurement shall be made according to the

fair value and the gains or losses caused by changes in the fair value as well as the dividends and

interest expenses related to such financial liabilities shall be recorded into current profit or loss.Financial liabilities measured at amortized cost

For other financial liabilities the effective interest rate method shall be adopted the subsequent

measurement shall be made at the amortized cost and the gains or losses arising from derecognition or

amortization shall be recorded into current profit or loss.The distinction between financial liabilities and equity instruments

Financial liabilities refer to liabilities that meet one of the following conditions:

* A contractual obligation to deliver cash or other financial assets to other parties.* A contractual obligation to exchange financial assets or financial liabilities with another party under

potentially adverse conditions.* A non-derivative contract that has to be settled with or can be settled with the firm's own equity

instruments in the future under which the firm will deliver a variable number of its own equity

instruments.* A derivative contract that has to be settled with or can be settled with the firm's own equity

instruments in the future except for a derivative contract in which a fixed number of its own equity

instruments are to be exchanged for a fixed amount of cash or other financial assets.An equity instrument is a contract that certifies ownership of the remaining interest in an enterprise's

assets after all liabilities have been deducted.If the Company cannot unconditionally avoid fulfilling a contractual obligation by delivering cash or other

financial assets such contractual obligation meets the definition of a financial liability.If a financial instrument has to be settled with or can be settled with the Company's own equity

instruments in the future consideration needs to be given to whether the Company's own equity

instruments used to settle the instrument is to be used as a substitute for cash or other financial assets

or to give the holder of the instrument the remaining interest in the issuer's assets after deduction of all

liabilities. If it is the former the instrument is a financial liability of the Company; if it is the latter the

instrument is an equity instrument of the Company.

(4) Derivative financial instruments and embedded derivative instruments

The Company's derivative financial instruments include [forward foreign exchange contracts currency

exchange rate swap contracts interest rate swap contracts and foreign exchange options contracts etc.The initial measurement is based on the fair value of the date of signing the derivative transaction

contract and the subsequent measurement is based on its fair value. A derivative with a positive fair

18ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

value is recognised as an asset; a negative fair value is recognized as a liability. Any gains or losses

resulting from changes in fair value that do not conform to the provisions of hedge accounting shall be

directly recorded into the current profit or loss.For a hybrid instrument containing an embedded derivative instrument if the host is a financial asset

the hybrid instrument as a whole shall be subject to the relevant provisions on the classification of

financial assets. If the host is not a financial asset the embedded derivative instrument shall be

separated from the hybrid instrument and accounted for as a separate derivative instrument if all of the

following conditions are met: the hybrid instrument is not measured at fair value through profit or loss;

the economic characteristics and risks of the embedded derivative are not closely related to the

economic characteristics and risks of the host; a separate instrument with the same terms as the

embedded derivative would meet the definition of a derivative. If it is not possible to measure the

embedded derivative separately at the time of acquisition or on the subsequent balance sheet date the

hybrid instrument as a whole is designated as a financial asset or financial liability measured at fair

value through profit or loss.

(5) Fair value of the financial instrument

The methods for determining the fair value of the financial assets or financial liabilities are set out in

Note III.12.

(6) Impairment of financial assets

On the basis of expected credit losses the Company conducts impairment accounting treatment for the

following items and recognises the allowance:

* Financial assets measured at amortized cost;

* Receivables and investments in debt instruments measured at fair value and accounted for in other

comprehensive income;

* Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue;

* Lease receivables;

* Financial guarantee contracts (except for financial assets measured at fair value through profit or loss

transfer of financial assets that do not meet the conditions for derecognition or those caused by

continuing involvement in transferred financial assets).Measurement of expected credit losses

The term "expected credit loss" refers to the weighted average of the credit loss of a financial instrument

weighted by the risk of default. Credit loss refers to the difference between all contractual cash flows

that are due to the Company in accordance with the contract and all the cash flows that the Company

expects to receive discounted at the original effective interest rate that is the present value of all cash

shortfalls.The Company calculates the probabilistic weighted amount of the present value of the difference

between the cash flows receivable under the contract and the cash flows expected to be received and

recognizes the expected credit loss taking into account reasonable and supportable information

19ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

concerning past events current conditions and forecast of future economic conditions with the

respective risks of a default occurring as the weights.The Company separately measures the expected credit losses of financial instruments at different

stages. If the credit risk of the financial instrument has not increased significantly since the initial

recognition the financial instrument is in the first stage and the Company shall measure the loss

allowance at an amount equal to 12- month expected credit losses; if the credit risk of the financial

instrument has increased significantly since the initial recognition but no credit losses have occurred the

financial instrument is in the second stage and the Company shall measure the loss allowance at an

amount equal to lifetime expected credit losses; if credit losses have occurred to a financial instrument

since its initial recognition it is in the third stage and the Company shall measure the loss allowance at

an amount equal to lifetime expected credit losses.For financial instruments with low credit risk at the balance sheet date the Company assumes that the

credit risk has not increased significantly since the initial recognition and measures the loss allowance

at an amount equal to 12- month expected credit losses.The term "lifetime expected credit losses" refers to the expected credit losses resulting from all possible

events of default during the entire expected life of a financial instrument. The expected credit losses

within the next 12 months refer to the expected credit loss caused by the default event of the financial

instrument that may occur within 12 months after the balance sheet date (or the expected duration of

the financial instrument if the expected duration of the financial instrument is less than 12 months) and

is part of lifetime expected credit losses.When measuring expected credit losses the Company shall take into account the longest contract

period (including the option to renew the contract) for which it is exposed to credit risk.The Company calculates interest income on the basis of the Book value before impairment provisions

and the effective interest rate for financial instruments in stage I and stage II and with lower credit risk.For financial instruments in the third stage the interest income is calculated on the basis of the

amortized cost of the Book value less the impairment provision and the effective interest rate.For accounts receivable other receivables contract assets etc. if the credit risk characteristics of a

customer are significantly different from those of other customers in the group or the credit risk

characteristics of such customer are significantly changed the Company shall assessed for impairment

individually for such receivables. In addition to the receivables assessed for impairment individually the

Company divides the receivables into groups according to the credit risk characteristics and calculates

the loss allowance on the basis of the group.Bills receivable and accounts receivable

For bills receivable and accounts receivable regardless of whether there is a material financing

component the Company always measures its loss allowance at an amount equal to lifetime expected

credit losses.When an individual financial asset or contract assets cannot assess the information of expected credit

loss at a reasonable cost the Company divides the bills receivableaccounts receivable and contract

assets into groups according to the credit risk characteristics calculates the expected credit losses

based on the groups which are determined as follows:

20ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

A. Bills receivable

* Bills receivable group 1: banker's acceptance

* Bills receivable group 2: commercial acceptance bills

B. Accounts receivables

* Accounts receivable group 1: Leasing and other combinations

* Accounts receivable group 2:Gold Jewelry Sales Business Segment

For the bills receivable and contract assets divided into groups the Company calculates the expected

credit loss through default risk exposure and the lifetime expected credit loss rate by referring to the

historical credit loss experience combining the current situation and the forecast of the future economic

situation.For the accounts receivable divided into groups the Company refers to the historical credit loss

experience and combines the current situation with the forecast of the future economic situation to

compile a comparison table between the age of receivables/overdue days and the lifetime expected

credit loss rate and to calculate the expected credit loss. The age of accounts receivable is calculated

from the date of recognition.Other receivables

The Company divides other receivables into several groups according to the credit risk characteristics

and calculates the expected credit losses on the basis of the groups which are determined as follows:

* Other receivables group 1: Accounts Receivable Aging

* Other receivables group 2: Combination of Accounts Receivable for Deposits and Guarantees

* Other receivables group 3: Combination of Accounts Receivable for Related Transactions within the

Consolidated Scope

For other receivables divided into groups the Company calculates the expected credit losses by default

risk exposure and the expected credit losses rate over the next 12 months or the entire duration. For

other receivables grouped according to age the age is calculated from the date of recognition.Debt investment and other debt investment

For debt investment and other debt investment the Company calculates the expected credit loss based

on the default risk exposure and the expected credit loss rate within the next 12 months or the entire

duration according to the nature of the investment and the various types of counterparties and risk

exposures.An assessment of a significant increase in credit risk

By comparing the risk of default of financial instruments on the balance sheet date with the risk of

default on the initial recognition date the Company determines the relative change of default risk within

the expected duration of financial instruments so as to evaluate whether the credit risk of financial

instruments has significantly increased since the initial recognition.

21ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

In determining whether credit risk has increased significantly since the initial recognition the Company

considers reasonable and supportable information including forward-looking information that can be

obtained without unnecessary additional cost or effort. Information considered by the Company

includes:

* The debtor fails to pay the principal and interest as due under the contract;

* A material deterioration if any of the external or internal credit rating of the financial instrument that has

occurred or is expected to occur;

* A serious deterioration of the debtor's business results occurred or is expected to occur;

* A change in the existing or anticipated technological market economic or legal environment which will

have a material adverse effect on the debtor's ability to repay the Company.According to the nature of financial instruments the Company evaluates whether credit risk increases

significantly on the basis of individual financial instruments or a group of financial instruments. When

assessing on the basis of a group of financial instruments the Company may classify financial

instruments based on common credit risk characteristics such as overdue information and credit risk

rating.If overdue for more than 30 days the Company determines that the credit risk of the financial instrument

has increased significantly.The Company believes that the financial assets are in default under the following circumstances:

* The debtor is unlikely to pay its arrears to the Company in full and this assessment does not take into

account any recourse actions taken by the Company such as liquidating the collateral (if held);

* Financial assets are more than 90 days overdue.Credit-impaired financial assets

On the balance sheet date the Company evaluates whether credit impairment has occurred in financial

assets measured at amortized cost and debt investments measured at fair value through other

comprehensive income. When one or more events which have an adverse effect on the expected future

cash flows of a financial asset occur the financial asset becomes a credit-impaired financial asset.Evidence of credit impairment of financial assets includes the following observable information:

* Major financial difficulties occur to the issuer or the debtor;

* A breach of contract by the debtor such as a default or late payment of interest or principal;

* The Company for economic or contractual considerations relating to the debtor's financial difficulties

gives concessions that the debtor would not have made under any other circumstances;

* The debtor is likely to go bankrupt or undergo other financial restructuring;

* The financial difficulties of the issuer or debtor result in the disappearance of an active market for the

financial asset.Presentation of expected credit losses

22ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

In order to reflect the change of the credit risk of financial instruments since the initial recognition the

Company re-measures the expected credit losses on each balance sheet date and the increase or

recovered amount of the loss allowance thus formed shall be recorded into the current profit or loss as

an loss allowance or gain. For a financial asset measured at amortized cost the loss allowance shall

offset the carrying amount of the financial asset as stated in the balance sheet; for the debt investment

measured at fair value through other comprehensive income the Company recognizes its loss

allowance in other comprehensive income and does not offset the carrying amount of the financial

asset.Write-offs

If the Company no longer reasonably expects that the contractual cash flows of a financial asset can be

recovered in its entirety or a portion thereof the carrying amount of the financial asset shall be directly

written off. Such a write-off constitutes a derecognition of the relevant financial asset. This usually

occurs when the Company determines that the debtor does not have assets or sources of income that

generate sufficient cash flows to repay the amount to be written off. However in accordance with the

Company's procedures for recovering amounts due the financial assets that have been written off may

still be affected by the execution activities.If a financial asset that has been written off is recovered later a reversal of loss allowance shall be

recorded in profit or loss of the current period.

(7) Financial Asset Transfers

Financial asset transfer refers to the transfer or delivery of financial assets to a party other than the

issuer of the financial asset.For financial assets where the company has transferred almost all risks and rewards associated with

ownership to the transferee the financial asset is derecognized. If the company retains almost all risks

and rewards associated with ownership the financial asset is not derecognized.For financial assets where the company neither transfers nor retains almost all risks and rewards

associated with ownership the following treatments apply: If control over the financial asset is

relinquished the financial asset is derecognized and any resulting assets and liabilities are recognized.If control over the financial asset is not relinquished the financial asset is recognized based on the

extent of continued involvement in the transferred financial asset and any corresponding liabilities are

recognized accordingly.

(8) Offsetting Financial Assets and Financial Liabilities

When the company has a legally enforceable right to offset recognized financial assets and financial

liabilities and intends to settle the net amount or simultaneously realize the financial asset and settle the

financial liability the financial assets and financial liabilities are presented in the balance sheet at the

net amount after offsetting. Otherwise financial assets and financial liabilities are presented separately

in the balance sheet without offsetting.

12. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly

transaction between market participants at the measurement date.

23ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The Company measures related assets or liabilities at fair value assuming the assets or liabilities are

exchanged in an orderly transaction in the principal market; in the absence of a principal market

assuming the assets or liabilities are exchanged in an orderly transaction in the most advantageous

market. Principal market (or the most advantageous market) is the market that the Company can

normally enter into a transaction on measurement date. The Company adopts the presumptions that

would be used by market participants in achieving the maximized economic value of the assets or

liabilities.For financial assets or financial liabilities with active markets the Company uses the quoted prices in

active markets as their fair value. Otherwise the Company uses valuation technique to determine their

fair value.Fair value measurement of a non-financial asset takes into account market participants’ ability to

generate economic benefits using the asset in its best way or by selling it to another market participant

that would best use the asset.The Company uses valuation techniques that are appropriate in the circumstances and for which

sufficient data are available to measure fair value maximizing the use of relevant observable inputs

and using unobservable inputs only if the observable inputs aren’t available or impractical.Fair value level for assets and liabilities measured or disclosed at fair value in the financial statements

are determined according to the significant lowest level input to the entire measurement: Level 1 inputs

are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can

access at the measurement date; Level 2 inputs are inputs other than quoted prices included within

Level 1 that are observable for the assets or liabilities either directly or indirectly; Level 3 inputs are

unobservable inputs for the assets or liabilities.At the balance sheet date the Company revalues assets and liabilities being measured at fair value

continuously in the financial statements to determine whether to change the levels of fair value

measurement.

13. Inventories

(1) Classification

Inventories include raw materials finished goods hedged items etc.

(2) Measurement method of cost of inventories

Inventories are initially measured at cost. Raw materials and finished goods are calculated using

first-in-first-out method.

(3) Basis and Method for provision for obsolete inventories

On the balance sheet date inventories are measured at the lower of cost and net realizable value.When the net realizable value is lower than the cost an inventory write-down provision is recognized.The net realizable value is the estimated selling price of the inventory less the estimated costs to

complete estimated selling expenses and related taxes. In determining the net realizable value of

inventories reliable evidence is used as a basis while considering the purpose of holding the

inventories and the impact of post-balance sheet events.

24ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Generally the provision for inventory write-down is recognized on an individual inventory item basis. For

inventories with numerous quantities and low unit prices the provision is recognized based on inventory

categories.On the balance sheet date if the factors causing a decrease in the inventory value have ceased to exist

the inventory write-down provision is reversed within the original amount that was recognized.

(4) Inventory count system

The Company maintains a perpetual inventory system.

(5) Amortization methods of low-value consumables and packaging materials

Low-value consumables are charged to profit or loss when they are used.

14. Long-term equity investments

Long-term equity investments include equity investments in subsidiaries and equity investments in joint

ventures and associates. An associate is an enterprise over which the Company has significant

influence.

(1) Determination of initial investment cost

The initial cost of a long-term equity investment acquired through a business combination involving

enterprises under common control is the Company’s share of the carrying amount of the subsidiary’s

equity in the consolidated financial statements of the ultimate controlling party at the combination date.For a long-term equity investment obtained through a business combination not involving enterprises

under common control the initial cost is the combination cost.A long-term equity investment acquired other than through a business combination: A long-term equity

investment acquired other than through a business combination is initially recognised at the amount of

cash paid if the Company acquires the investment by cash or at the fair value of the equity securities

issued if an investment is acquired by issuing equity securities.

(2) Subsequent measurement and recognition of profit or loss

Long-term equity investments in subsidiaries are accounted for using the cost method. An investment in

a joint venture or an associate is accounted for using the equity method for subsequent measurement.For a long-term equity investment which is accounted for using the cost method Except for cash

dividends or profit distributions declared but not yet distributed that have been included in the price or

consideration paid in obtaining the investments the Company recognises its share of the cash

dividends or profit distributions declared by the investee as investment income for the current period.For a long-term equity investment which is accounted for using the equity method where the initial cost

of a long-term equity investment exceeds the Company’s interest in the fair value of the investee’s

identifiable net assets at the date of acquisition the investment is initially recognised at cost. Where the

initial investment cost is less than the Company’s interest in the fair value of the investee’s identifiable

net assets at the date of acquisition the investment is initially recognised at the investor’s share of the

fair value of the investee’s identifiable net assets and the difference is recognised in profit or loss.

25ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Under the equity method the Company recognises its share of the investee’s profit or loss and other

comprehensive income as investment income or losses and other comprehensive income respectively

and adjusts the carrying amount of the investment accordingly. Once the investee declares any cash

dividends or profit distributions the carrying amount of the investment is reduced by the amount

attributable to the Company. Changes in the Company’s share of the investee’s owners’ equity other

than those arising from the investee’s net profit or loss other comprehensive income or profit

distribution (referred to as “other changes in owners’ equity”) is recognised directly in the Company’s

equity and the carrying amount of the investment is adjusted accordingly. In calculating its share of the

investee’s net profits or losses other comprehensive income and other changes in owners’ equity the

Company recognises investment income and other comprehensive income after making appropriate

adjustments to align the accounting policies or accounting periods with those of the Company based on

the fair value of the investee’s identifiable net assets at the date of acquisition.When the Company becomes capable of exercising joint control or significant influence (but not control)

over an investee due to additional investment or other reasons the Company uses the fair value of the

previously-held equity investment together with additional investment cost as the initial investment cost

under the equity method. If the original equity is classified as non-trading equity instrument investment

measured at fair value and its changes are included in other comprehensive income the relevant

accumulative changes in fair value originally included in other comprehensive income will be transferred

to retained earnings when changed to equity method accounting.When the Company can no longer exercise joint control of or significant influence over an investee due

to partial disposal of the equity investment or other reasons the remaining equity investment shall be

accounting for using Accounting Standard for Business Enterprises No. 22 - Recognition and

Measurement of Financial Instruments and the difference between the fair value and the carrying

amount of the remaining equity investment shall be charged to profit or loss for the current period at the

date of the loss of joint control or significant influence. Any other comprehensive income previously

recognised under the equity method shall be accounted for on the same basis as would have been

required if the Company had directly disposed of the related assets or liabilities for the current period

upon discontinuation of the equity method. Other movement of owner’s equity related to original equity

investment is transferred to profit or loss for the current period.When the Company can no longer exercise control over an investee due to partial disposal of the equity

investment or other reasons and the remaining equity after disposal can exercise joint control of or

significant influence over an investee the remaining equity is adjusted as using equity method from

acquisition. When the remaining equity can no longer exercise joint control of or significant influence

over an investee the remaining equity investment shall be accounted for using Accounting Standard for

Business Enterprises No. 22-Recognition and Measurement of Financial Instruments and the difference

between the fair value and the carrying amount of the remaining equity investment shall be charged to

profit or loss for the current period at the date of loss of control.When the Company can no longer exercise control over an investee due to new capital injection by

other investors and the Company can exercise joint control of or significant influence over an investee

the Company recognizes its share of the investee’s new added net assets using new shareholding

percentage. The difference between its new share of the investee’s new added net assets and its

decreased shareholding percentage of the original investment is recognized in profit or loss. And the

Company adjusts to the equity method using the new shareholding percentage as if it uses the equity

method since it obtains the investment.

26ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Unrealized profits and losses resulting from transactions between the Company and its associates or

joint ventures are eliminated to the extent of the Company’s interest in the associates or joint ventures.Unrealized losses resulting from transactions between the Company and its associates or joint ventures

are eliminated in the same way as unrealized gains but only to the extent that there is no impairment.

(3) Criteria for determining the existence of joint control or significant influence over an investee

Joint control is the contractually agreed sharing of control of an arrangement which exists only when

decisions about the relevant activities require the unanimous consent of the parties sharing control.When assessing whether the Company can exercise joint control over an investee the Company first

considers whether no single participant party is in a position to control the investee’s related activities

unilaterally and then considers whether strategic decisions relating to the investee’s related activities

require the unanimous consent of all participant parties that sharing of control. All the parties or a group

of the parties control the arrangement collectively when they must act together to direct the relevant

activities. When more than one combination of the parties can control an arrangement collectively joint

control does not exist. A party that holds only protective rights does not have joint control of the

arrangement.Significant influence is the power to participate in the financial and operating policy decisions of an

investee but does not have control or joint control over those policies. When determining whether the

Company can exercise significant influence over an investee the effect of potential voting rights (for

example warrants share options and convertible bonds) held by the Company or other parties that are

currently exercisable or convertible shall be considered.When the Company directly or indirectly through subsidiaries owns 20% of the investee (including 20%)

or more but less than 50% of the voting shares it has significant influence over the investee unless

there is clear evidence to show that in this case the Company cannot participate in the production and

business decisions of the investee and cannot form a significant influence. When the Company owns

less than 20% of the voting shares generally it does not have significant influence over the investee

unless there is clear evidence to show that in this case the Company can participate in the production

and business decisions of the investee so as to form a significant influence.

(4) Method of impairment testing and impairment provision

For investments in subsidiaries associates and joint ventures refer to Note III. 21 for the Company’s

method of asset impairment.

15. Investment property

Investment properties are properties held either to earn rental income or for capital appreciation or for

both. The Company’s investment properties include leased land use rights land use right held and

provided for to transfer after appreciation and leased building and construction.Investment properties are initially measured at acquisition cost and depreciated or amortized using the

same policy as that for fixed assets or intangible assets.For the impairment of the investment properties accounted for using the cost model refer to Note III.21.Gains or losses arising from the sale transfer retirement or disposal of an item of investment property

are determined as the difference among the net disposal proceeds the carrying amount of the item

related taxes and surcharges and are recognised in profit or loss for current period.

27ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

16.Fixed assets

(1) Recognition of fixed assets

Fixed assets represent the tangible assets held by the Company for use in production of goods use in

supply of services rental or for administrative purposes with useful lives over one accounting year.Fixed assets are only recognised when its related economic benefits are likely to flow to the Company

and its cost can be reliably measured.Fixed asset are initially measured at cost.Subsequent expenditures related to fixed assets are included in the cost of fixed assets when the

economic benefits related to them are likely to flow into the Company and their costs can be measured

reliably; the daily repair expenses of fixed assets that do not meet the criteria for subsequent

expenditure of fixed assets capitalization shall be included in the current profit or loss or the cost of

relevant assets according to the beneficiary at the time of occurrence. The carrying amount of the

replaced part shall be derecognized.

(2) Depreciation of fixed assets

The cost of a fixed asset is depreciated using the straight-line method since the state of intended use

unless the fixed asset is classified as held for sale. Not considering impairment provision the estimated

useful lives residual value rates and depreciation rates of each class of fixed assets are as follows:

Type Estimated useful life(years) Residual value rate % Depreciation rate %

Plant and buildings 10、35-40 0、3 10、2.43-2.77

Decoration fees for self-owned houses 10 0 10

Machinery and equipment 10 3 9.70

Electronic equipment 3 3 32.33

Motor vehicles 7 3 13.86

Office and other equipment 5 3 19.40

For impaired fixed assets cumulative amount of impairment provision is deducted in determining the

depreciation rate.

(3) For the impairment of the fixed assets please refer to Note III. 21.

(4) Useful lives estimated residual values and depreciation methods are reviewed at least at each year-end.

The Company adjusts the useful lives of fixed assets if their expected useful lives are different with the

original estimates and adjusts the estimated net residual values if they are different from the original

estimates.

(5) Disposal of fixed assets

When the fixed assets are disposed or no economic benefit is expected to be generated through the

use or disposal the fixed assets shall be derecognised. The amount of the disposal income from the

sale transfer scrapping or destruction of fixed assets after deducting its carrying value and relevant

taxes is recorded into the current profit or loss.

28ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

17. Construction in progress

Construction in progress is recognized based on the actual construction cost including all expenditures

incurred for construction Items capitalised borrowing costs and any other costs directly attributable to

bringing the asset to working condition for its intended use.Construction in progress is transferred to fixed asset when it is ready for its intended use.For the impairment of construction in progress please refer to Note III. 21.

18. Borrowing costs

(1) Capitalisation criteria

Borrowing costs that are directly attributable to the acquisition construction or production of a qualifying

asset shall be capitalised as part of the cost of that asset. Other borrowing costs are expensed in profit

or loss as incurred. The capitalisation of borrowing costs shall commence only when the following

criteria are met:

* Capital expenditures have been incurred including expenditures that have resulted in payment of

cash transfer of other assets or the assumption of interest-bearing liabilities;

* Borrowing costs have been incurred;

* The activities that are necessary to prepare the asset for its intended use or sale have commenced.

(2) Capitalisation period

The capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes

ready for its intended use the borrowing costs incurred thereafter are recognised in profit or loss for the

current period.Capitalisation of borrowing costs is suspended during periods in which the acquisition or construction of

a fixed asset is interrupted abnormally and the interruption lasts for more than 3 months until the

acquisition or construction is resumed.

(3) Capitalisation rate of borrowing costs and calculation basis of capitalised amount

For interest expense actually incurred on specific borrowings the eligible capitalised amount is the net

amount of the borrowing costs after deducting any investment income earned before some or all of the

funds are used for expenditures on the qualifying asset. To the extent that the Company borrows funds

generally and uses them for the purpose of obtaining a qualifying asset the Company shall determine

the amount of borrowing costs eligible for capitalisation by applying a capitalisation rate to the

expenditures on that asset the capitalisation rate shall be the weighted average of the borrowing costs

applicable to the borrowings of the Company that are outstanding during the period other than

borrowings specifically for the purpose of obtaining a qualifying asset.In the capitalisation period exchange differences of specific borrowings in foreign currency shall be

capitalised; exchange differences of general borrowings in foreign currency is recognised in profit or

loss for the current period.

29ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

19. Intangible assets

Intangible assets include land usage right computer software trade mark etc.Intangible assets are stated at actual cost upon acquisition and the useful economic lives are

determined at the point of acquisition. When the useful life is finite amortisation method shall reflect

the pattern in which the asset’s economic benefits are expected to be realised. If the pattern cannot be

determined reliably the straight-line method shall be used. An intangible asset with an indefinite useful

life shall not be amortised.Amortisation method for intangible assets with finite useful lives is as follows:

Categories Useful life The basis for determining the useful(years) life Amortisation methods Remarks

Land usage right 50 years Legal right to use Straight-line method

The useful life is determined with

Computer software 5 years reference to the period that can bring Straight-line method

economic benefits to the company

The useful life is determined with

Trade mark 10 years reference to the period that can bring Straight-line method

economic benefits to the company

The Company shall review the useful life and amortisation method of an intangible asset with a finite

useful life at least at each year end. Changes of useful life and amortisation method shall be accounted

for as a change in accounting estimate.An intangible asset shall be derecognised in profit or loss when it is not expected to generate future

economic benefits.For the impairment of intangible assets please refer to Note III. 21.

20. Research and development expenditure

The Company's research and development expenditures are directly related to the Company's research

and development activities including research and development personnel compensation direct input

costs depreciation costs and long-term amortized expenses design costs equipment commissioning

costs intangible assets amortization costs commissioned external research and development costs

and other expenses. Among them the wages of R&D personnel are included in R&D expenditure

according to the allocation of project working hours. The equipment production lines and sites shared

by R&D activities and other production and operation activities are allocated to R&D expenditures based

on the proportion of working hours and area.Expenditure on an internal research and development project is classified into expenditure incurred

during the research phase and expenditure incurred during the development phase.Expenditure during the research phase is expensed when incurred.Expenditure during the development phase is capitalized if the product or process is technically and

commercially feasible; the Company intends to complete the development; the intangible asset can

generate economic benefits including there is evidence that the products produced using the intangible

asset has a market or the intangible asset itself has a market; if the intangible asset is for internal use

there is evidence that there is usage for the intangible asset; there is sufficient support in terms of

30ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

technology financial resources and other resources in order to complete the development and use or

sell the intangible asset; and development costs can be measured reliably. Other development

expenditure is recognized as an expense in the period in which it is incurred.Research and development projects of the Company will enter into the development phase when they

meet the above conditions technical and economic feasibility research is finished and necessary

approval of the project is obtained.Capitalized expenditure on the development phase is presented as “development costs” in the balance

sheet and is transferred to intangible assets when the project is completed to its intended use.

21. Impairment of assets

The impairment of long-term equity investments in subsidiaries associates and joint ventures

investment properties measured using a cost model fixed assets construction in progress right-of-use

assets intangible assets etc. (Excluding inventories investment property measured using a fair value

model deferred tax assets and financial assets) is determined as follows:

At each balance sheet date the Company determines whether there is any indication of impairment. If

any indication exists the recoverable amount of the asset is estimated. In addition the Company

estimates the recoverable amounts of goodwill intangible assets with indefinite useful lives and

intangible assets not ready for use at each year-end irrespective of whether there is any indication of

impairment.The recoverable amount of an asset is the higher of its fair value less costs to sell and its present value

of expected future cash flows. The recoverable amount is estimated for each individual asset. If it is not

possible to estimate the recoverable amount of each individual asset the Company determines the

recoverable amount for the asset group to which the asset belongs. An asset group is the smallest

identifiable group of assets that generates cash inflows that are largely independent of the cash inflows

from other assets or asset groups.A loss allowance is recognized in profit or loss when the recoverable amount of an asset is less than its

carrying amount. A loss allowance of the asset is recognized accordingly.For goodwill impairment test the carrying amount of goodwill arising from a business combination is

allocated reasonably to the relevant asset group since the acquisition date. If the carrying amount of

goodwill is unable to be allocated to asset group the carrying amount of goodwill will be allocated to

asset portfolio. Asset group or portfolio of asset group is asset group or portfolio of asset group which

can be benefit from synergies of a business combination and is not greater than the reportable segment

of the Company.In impairment testing if impairment indication exists in asset group or portfolio of asset group containing

allocated goodwill impairment test is first conducted for asset group or portfolio of asset group that does

not contain goodwill and corresponding recoverable amount is estimated and any loss allowance is

recognized. Then impairment test is conducted for asset group or portfolio of asset group containing

goodwill by comparing its carrying amount and its recoverable amount. If the recoverable amount is less

than the carrying amount loss allowance of goodwill is recognized.Once a loss allowance is recognized it is not reversed in a subsequent period.

22. Long-term deferred expenses

31ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Long-term deferred expenses are recorded at the actual cost and amortized using a straight-line

method within the benefit period. For long-term deferred expense that cannot bring benefit in future

period the Company recognized its amortized cost in profit or loss for the current period.

23. Employee benefits

(1) Scope of employee benefits

Employee benefits refer to all forms of consideration or compensation given by the Company in

exchange for service rendered by employees or for the termination of employment relationship.Employee benefits include short-term employee benefits post-employment benefits termination

benefits and other long-term employee benefits. Benefits provided to the Company’s spouse children

dependents family members of deceased employees or other beneficiaries are also part of the

employee benefits.

(2)Short-term employee benefits

In the current period the Company has accrued for the actual wages bonuses medical insurance for

employees based on standard rate work injury insurance and maternity insurance and other social

insurance and housing fund incurred and these are recognized as liabilities and corresponding costs in

the profit or loss.

(3)Post-employment benefits

Post-employment benefit plan includes defined contribution plans and defined benefit plans. Defined

contribution plans are post-employment benefit plans under which an enterprise pays fixed contributions

into a separate fund and will have no future obligations to pay the contributions. Defined benefit plans

are post-employment benefit plans other than defined contribution plans.Defined contribution plans.Defined contribution plans include basic pension insurance unemployment insurance etc.The Company shall recognize in the accounting period in which an employee provides service the

contribution payable to a defined contribution plan as a liability with a corresponding charge to the profit

or loss for the current period or the cost of a relevant asset.Defined benefit plans.For defined benefit plans an actuarial valuation is performed by an independent actuary at the annual

balance sheet date to determine the cost of providing benefits using the expected cumulative benefit

unit method. The employee compensation costs resulting from the Company's defined benefit plan

include the following components:

* Service costs including current service costs past service costs and settlement gains or losses.Among them the current service cost refers to the increase in the present value of the defined benefit

plan obligation caused by the service provided by the employee in the current period; Past service costs

32ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

refer to the increase or decrease in the present value of defined benefit plan obligations related to

employee services in previous periods resulting from modifications to defined benefit plans.* Net interest on defined benefit plan net liabilities or net assets including interest income on plan

assets interest expense on defined benefit plan obligations and interest affected by asset caps.* Changes resulting from the re-measurement of net liabilities or net assets of defined benefit plans.Unless other accounting standards require or allow the cost of employee benefits to be included in the

cost of assets the Company will recognize items * and * above in the profit and loss of the current

period; Item * is included in other comprehensive income and is not carried back to profit or loss in

subsequent accounting periods and the portion originally included in other comprehensive income is

fully carried forward to undistributed profit within the scope of equity upon termination of the original

defined benefit plan.

(4)Termination benefits

The Company provides for termination benefits to the employees and shall recognize an employee

benefits liability for termination benefits with a corresponding charge to the profit or loss for the current

period at the earlier of the following dates: When the Company cannot unilaterally withdraw the offer of

the termination benefits because of an employment termination plan or a redundancy proposal; or when

the Company recognizes the costs or expenses relating to a restructuring that involves the payment of

the termination benefits.If an employee's internal retirement plan is implemented the economic compensation before the official

retirement date belongs to the dismissal welfare. During the period from the day when the employee

ceases to provide services to the normal retirement date the salary and social insurance premiums to

be paid to the employee for internal retirement shall be included in the profit and loss of the current

period in one lump sum. Financial compensation after the official retirement date (such as a regular

pension) is treated as post-employment benefits.

(5)Other long-term employee benefits

Other long-term employee benefits provided by the Company to the employees satisfied the conditions

for classifying as a defined contribution plan; those benefits shall be accounted for in accordance with

the above requirements relating to defined contribution plan. When the benefits satisfied a defined

benefit plan it shall be accounted for in accordance with the above requirements relating to defined

benefit plan but the movement of net liabilities or assets in re-measurement of defined benefit plan shall

be recorded in profit or loss for the current period or cost of relevant assets.

24. Provisions

A provision is recognized for an obligation related to a contingency if all the following conditions are satisfied:

(1)The Company has a present obligation;

(2)It is probable that an outflow of economic benefits will be required to settle the obligation; and

(3)The amount of the obligation can be estimated reliably.

33ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

A provision is initially measured at the best estimate of the expenditure required to settle the related

present obligation. Factors pertaining to a contingency such as the risks uncertainties and time value of

money are taken into account as a whole in reaching the best estimate. Where the effect of the time

value of money is material provisions are determined by discounting the expected future cash flows.The Company reviews the carrying amount of a provision at the balance sheet date and adjusts the

carrying amount to the current best estimate.If all or part of the expenditure necessary for settling the provision is expected to be compensated by a

third party the amount of compensation is separately recognized as an asset when it is basically certain

to be received. The recognized compensation amount shall not exceed the carrying amount of the

provision.

25. Revenue

(1)General principles

The Company recognizes revenue when it has fulfilled its contractual performance obligation that is

when the customer acquires control of the relevant goods or services.If the contract contains two or more performance obligations the Company shall on the

commencement date of the contract allocate the transaction price to each single performance

obligation according to the relative proportion of the stand-alone selling prices of goods or services

committed by each single performance obligation and measure the income according to the transaction

price allocated to each single performance obligation.If one of the following conditions is met the Company satisfies a performance obligation over time;

otherwise the Company satisfies a performance obligation at a point in time:

* The customer simultaneously receives and consumes the economic benefits provided by the

Company's performance as the Company performs.* The customer can control the goods under construction during the performance of the Company.* The goods produced by the Company during the performance of the contract do not have alternative

use and the Company has the right to collect payment for the accumulated part of the performance

completed to date during the whole period of the contract.For the performance obligations performed over time the Company shall recognize the income in

accordance with the performance progress within that period. If the performance progress cannot be

reasonably determined and the Company is expected to be compensated for the costs already incurred

the revenue shall be recognized according to the amount of the costs already incurred until the

performance progress can be reasonably determined.For performance obligations performed at a point in time the Company recognizes revenue at the point

when the customer acquires control of the relevant goods or services. In determining whether a

customer has acquired control of goods or services the Company will take into account the following

indicators:

* The Company has a present right to payment for the good or service that is the customer is

presently obliged to pay for the good or service.

34ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

* The Company has transferred the legal title of the good to the customer that is the customer has

the legal title to the good.* The Company has transferred physical possession of the good to the customer that is the customer

has physical possession of the good.* The Company has transferred the significant risks and rewards of ownership of the good to the

customer that is the customer has obtained the significant risks and rewards of ownership of the good.* The customer has accepted the good or service.* Other indicators that the customer has obtained control of the good.

(2)Specific methods

The Company's revenue is mainly derived from the following businesses: property rental and service

jewelry sales and service.Property rental and service

The specific methods of property rental and service revenue recognition are detailed in Note III 28.Jewelry sales and service

Whether the Company is the principal responsible person or the agent in the transaction is determined

by whether the Company has control of the goods or services before the transfer to the customer. If the

Company is able to control the goods or services before the transfer of the goods or services to the

customer the Company is the main responsible person and the revenue is recognized on the basis of

the total consideration received or receivable; Otherwise the Company acting as agent recognizes

revenue on the basis of the amount of the commission or handling fee it is expected to be entitled to

receive which is the net amount of the total consideration received or receivable after deducting the

price payable to other parties or on the basis of the amount or proportion of the commission established

etc.The company's gold jewelry sales mode is based on direct sales model supplemented by

commission sales. The main sales channels of direct sales include wholesalers e-commerce and direct

store retail. The timing of revenue recognition for each of the wholesalers e-commerce and direct store

retail sales models is as follows:

* Wholesale distributor sales refer to the purchasing party directly entering into cooperation with the

company. The company recognizes revenue when control over the goods has transferred to the

purchasing party as per the sales contract completion obligation typically upon customer acceptance

and issuance of a signed receipt confirming the receipt of income. This constitutes performance

obligations fulfilled at a specific point in time.* E-commerce sales channels refer to the sale of goods through electronic commerce platforms. The

company recognizes sales revenue when the customer signs for receipt and payment has been

received or the right to claim payment has been obtained. This constitutes performance obligations

fulfilled at a specific point in time.* Direct store retail refers to the sale of goods through owned properties and the Company recognizes

35ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

sales revenue when the goods are sold to customers and the payment is collected or the right to claim

payment is obtained. This constitutes performance obligations fulfilled at a specific point in time.* Commissioned consignment sales refer to transporting products to the consignee's stores. The

company recognizes revenue when the consignee sells the goods to the end consumers who then sign

for receipt. Control over the goods has transferred to the end consumers as the completion of the sales

contract obligation and revenue is recognized.The Company's other revenue recognition methods are as follows:

Self-directed gold repurchase business refers to the company acquiring old gold from the market

processing it into standard gold bars through refining factories and selling them to the Shanghai Gold

Exchange. Based on the price at the time of the Shanghai Gold Exchange the sale is confirmed (priced)

in the trading system and revenue is recognized upon obtaining the settlement statement from the

Shanghai Gold Exchange.Agency procurement of gold and jewelry business refers to the company acting as an agent providing

agency services to principals under agency procurement agreements to earn agency fees. The

company recognizes agency fee revenue when the customer pays for the goods and simultaneously

when the customer confirms receipt.Agency gold repurchase business refers to the company acting as an agent for suppliers to repurchase

gold and charging a commission fee. Revenue is recognized based on the time of the agency gold

repurchase and the commission fee specified in the contract.

26. Government grants

A government grant is recognized when there is reasonable assurance that the grant will be received

and that the Company will comply with the conditions attaching to the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount

received or receivable. If a government grant is in the form of a transfer of a non-monetary asset it is

measured at fair value. If fair value cannot be reliably determined it is measured at a nominal amount of

RMB 1.Government grants related to assets are grants whose primary condition is that the Company qualifying

for them should purchase construct or otherwise acquire long-term assets. Government grants related

to income are grants other than those related to assets.For government grants with unspecified purpose the amount of grants used to form a long-term asset is

regarded as government grants related to an asset the remaining amount of grants is regarded as

government grants related to income. If it is not possible to distinguish the amount of grants is treated

as government grants related to income.A government grant related to an asset is recognized as deferred income and amortized to profit or loss

over the useful life of the related asset on a reasonable and systematic manner. A grant that

compensates the Company for expenses or losses already incurred is recognized in profit or loss

directly. A grant that compensates the Company for expenses or losses to be incurred in the future is

recognized as deferred income and included in profit or loss in the periods in which the expenses or

36ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

losses are recognized. The Company applies a consistent approach to same or similar government

grant transactions.A grant related to ordinary activities is recognized as other income based on the economic substance. A

grant not related to ordinary activities is recognized as non-operating income .When a recognized government grant is reversed carrying amount of the related asset is adjusted if the

grant was initially recognized as offset against the carrying amount of the related asset. If there is

balance of relevant deferred income it is offset against the carrying amount of relevant deferred income.Any excess of the reversal to the carrying amount of deferred income is recognized in profit or loss for

the current period. For other circumstances reversal is directly recognized in profit or loss for the

current period.

27. Deferred tax assets and deferred tax liabilities

Income tax comprises of current tax and deferred tax. Current tax and deferred tax are recognized in

profit or loss except to the extent that they relate to transactions or items recognized directly in equity

and goodwill arising from a business combination.Deferred tax assets and deferred tax liabilities arise from deductible and taxable temporary differences

respectively being the differences between the carrying amounts of assets and liabilities for financial

reporting purposes and their tax bases.All the taxable temporary differences are recognized as deferred tax liabilities except for those incurred

in the following transactions:

(1)Initial recognition of goodwill or assets or liabilities in a transaction that is not a business combination and

that affects neither accounting profit nor taxable profit (or deductible loss)(except for individual transactions in

which the initial recognition of assets and liabilities results in equal amounts of taxable temporary differences

and deductible temporary differences);

(2)Taxable temporary differences associated with investments in subsidiaries associates and joint ventures

and the Company is able to control the timing of the reversal of the temporary difference and it is probable

that the temporary difference will not reverse in the foreseeable future.The Company recognizes a deferred tax asset for deductible temporary differences deductible losses

and tax credits carried forward to subsequent periods to the extent that it is probable that future taxable

profits will be available against which deductible temporary differences deductible losses and tax

credits can be utilized except for those incurred in the following transactions:

(1)A transaction that is not a business combination and that affects neither accounting profit nor taxable profit

(or deductible loss) (except for individual transactions in which the initial recognition of assets and liabilities

results in equal amounts of taxable temporary differences and deductible temporary differences);

(2)Deductible temporary differences associated with investments in subsidiaries associates and joint

ventures the corresponding deferred tax asset is recognized when both of the following conditions are

satisfied: it is probable that the temporary difference will reverse in the foreseeable future; and it is probable

that taxable profits will be available in the future against which the temporary difference can be utilized.At the balance sheet date deferred tax is measured based on the tax consequences that would follow

from the expected manner of recovery or settlement of the carrying amount of the assets and liabilities

37ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

using tax rates enacted at the reporting date that are expected to be applied in the period when the

asset is recovered or the liability is settled.The carrying amount of a deferred tax asset is reviewed at each balance sheet date and is reduced to

the extent that it is no longer probable that the related tax benefits will be utilized. Such reduction is

reversed to the extent that it becomes probable that sufficient taxable profits will be available.At the balance sheet date deferred tax assets and deferred tax liabilities are presented as net amounts

after offsetting when both of the following criteria are met:

(1)The taxpayer of the Company has the legal right to net settlement of current tax assets and current tax

liabilities;

(2)Deferred tax assets and deferred tax liabilities are related to income taxes levied by the same tax

collection authority on the same taxpayer within the Company.

28. Leases

(1) Identification of leases

At inception of a contract the Company as a lessee or a lessor shall assess whether the customer

under the contract has the right to obtain substantially all of the economic benefits from use of the

identified asset during the period of use and has to right to direct the use of the identified asset during

the period of use. The Company considers the contract to be a lease or to include a lease if one of the

parties to the contract conveys the right to control the use of one or more identified assets for a certain

period of time in exchange for consideration.

(2) The Company acts as the lessee

At the commencement date the Company recognizes the right-of-use assets and lease liabilities for all

leases except for short-term leases and leases of low value assets that are accounted for according to

the simplified method.For the accounting policy of the right-of-use assets see Note III.29.Lease liabilities are initially measured at the present value of the outstanding lease payments at the

commencement date of the lease using the interest rate implicit in the lease. If the interest rate implicit

in the lease cannot be determined the incremental borrowing rate shall be used as the discount rate.The lease payments include: fixed payments and in-substance fixed payments; if there are lease

incentives the relevant amount of lease incentives shall be deducted; variable lease payments

depending on an index or a rate; the exercise price of the option provided that the lessee is reasonably

certain that the option will be exercised; the amount to be paid to exercise the option to terminate the

lease if the lease term reflects that the lessee will exercise the option to terminate the lease; and the

amount expected to be payable based on the residual value of the security provided by the lessee. The

interest expense of the lease liability in each period of the lease term shall be calculated in accordance

with the fixed periodic interest rate and recorded into the profit or loss of the current period. The variable

lease payment not included in the measurement of lease liabilities shall be recorded into the current

profit or loss when actually incurred.Short-term lease

38ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

A short-term lease is a lease that at the commencement date has a lease term of 12 months or less

except for a lease that contains a purchase option.The Company will record the lease payment amount of short-term lease into the cost of relevant assets

or current profit or loss in each period of the lease term according to the straight-line method.For short-term leases the Company chooses to adopt the above simplified method for the items that

meet the short-term lease conditions in the following asset types according to the classes of leased

assets.Leases of low value assets

Leases of low value assets refer to lease of a single leased asset whose value is less than 40000 yuan

when it is a brand-new asset.The Company will include the lease payment of the low-value asset lease into the cost of the relevant

asset or current profit or loss in each period of the lease term according to the straight-line method.For leases of low value assets the Company chooses to adopt the above simplified method according

to the specific situation of each lease.Lease modifications

A lessee shall account for a lease modification as a separate lease if both: * the modification increases

the scope of the lease by adding the right to use one or more underlying assets; and * the

consideration for the lease increases by an amount commensurate with the stand-alone price for the

increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances

of the contract.If a lease modification that is not accounted for as a separate lease on the day of the lease modification

the Company re-allocates the consideration in the modified lease re-determines the lease term and

re-measures the present value of lease liability according to the revised lease payments and revised

discount rate.For lease modifications that result in decrease in the lease scope or the lease term the Company

decreases the carrying amount of the right-of-use asset accordingly and recognizes in profit or loss of

current period any gain or loss relating to the partial or full termination of the lease.For all other lease modifications that result in re-measurement of lease liabilities the Company makes a

corresponding adjustment to the carrying amount of right-of-use asset.

(3) The Company acts as the lessor

When the Company acts as the lessor the leases that substantially transfer all the risks and rewards

related to the ownership of the assets are recognized as finance leases and other leases other than

finance leases are recognized as operating leases.Finance leases

39ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

In the case of finance leases the Company takes the net investments in the lease as the carrying

amounts of finance lease receivables at the commencement date and the net lease investments are the

sum of the unguaranteed residual value and the present value of the lease payments receivable at the

commencement date discounted at the implicit interest rate. The Company as the lessor calculates and

recognizes interest income for each period of the lease term at a fixed periodic rate. The variable lease

payments obtained by the Company as the lessor and not included in the measurement of the net lease

investments shall be recorded into the current profit or loss when actually incurred.The derecognition and impairment of finance lease receivable shall be accounted for in accordance withthe provisions of the “Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments” and the “Accounting Standards for Business Enterprises No. 23- Transfer of Financial Assets”.Operating lease

For the rent in the operating lease the Company shall recognize the profit or loss of the current period

in accordance with the straight-line method during each period of the lease term. The initial direct costs

incurred in connection with the operating lease shall be capitalized allocated on the same basis as the

recognition of rental income during the lease term and recorded into the current profit or loss in

installments. The variable lease payments obtained in connection with the operating lease and not

included in the lease payments shall be recorded into the current profit or loss when actually incurred.Lease modifications

If an operating lease is modified the Company will treat it as a new lease for accounting treatment from

the effective date of the modification and the amount of lease payments received in advance or

receivable related to the lease before the modification will be regarded as the amount of new lease

payments.The Company will treat the finance lease modification as a separate lease if the following conditions are

met: * the modification increases the scope of the lease by adding the right to use one or more

underlying assets; and * the consideration for the lease increases by an amount commensurate with

the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone

price to reflect the circumstances of the contract.If the finance lease modification is not accounted for as a separate lease the Company will deal with the

modified lease under the following circumstances: * If the modification takes effect on the

commencement date of the lease the lease will be classified as an operating lease and the Company

will treat it as a new lease from the effective date of the lease modification and take the net investment

in lease before the effective date of the lease modification as the carrying amount of the leased asset;

* If the modification takes effect on the commencement date of the lease the lease will be classified

as a finance lease and the Company will conduct accounting treatment in accordance with theprovisions of the “Accounting Standards for Business Enterprises No. 22 - Recognition andMeasurement of Financial Instruments” concerning the modification or renegotiation of the contract.

(4) Subleases

When the Company acts as a sublease lessor it classifies the sublease based on the right-of-use

assets generated from the original lease. If the original lease is a short-term lease and the Company

40ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

uses the simplified method to account for the original lease the sublease shall be classified as an

operating lease.

29. Right-of-use assets

(1)Criteria for the recognition of right-of-use assets

The Company's right-of-use assets refer to the Company's right to use the leased assets during the

lease term as the lessee.On the commencement date the right-of-use assets shall be initially measured at cost. The cost

includes: the initial measurement of the lease liability; for the amount of lease payments paid on or

before the commencement date of the lease term if there is a lease incentive the relevant amount of

lease incentive already enjoyed will be deducted; initial direct costs incurred by the Company as the

lessee; the costs which the Company as the lessee expects to incur in dismantling and removing the

leased assets restoring the premises on which the leased assets are located or restoring the leased

assets to the state agreed in the lease terms. The Company as the lessee shall recognize andmeasure the costs of demolition and restoration in accordance with the “Accounting Standards forBusiness Enterprises No.13 – Contingencies”. Subsequent adjustments are made for any

re-measurement of lease liabilities.

(2)Depreciation method of the right-of-use assets

The Company uses the straight line method of depreciation. Where the Company as the lessee can

reasonably determine that it obtains the ownership of the leased assets upon expiration of the lease

term depreciation shall be accrued over the remaining useful life of the leased assets. Where it is

impossible to reasonably determine that the ownership of the leased asset can be acquired at the

expiration of the lease term depreciation shall be accrued in the shorter period between the lease term

and the remaining useful life of the leased asset.

(3)See Note III.21 for the impairment test method of the right-of-use assets and the loss allowance.

30. Hedge accounting

At the time of the initial designation of the hedging relationship the Company formally designates the

hedging instrument and the hedged item and has a formal written document documenting the hedging

relationship risk management strategy and risk management objectives. The content record includes

the hedging instrument the hedged item the nature of the hedged risk and the evaluation method of the

hedging effectiveness.The Company continuously evaluates the validity of the hedge to determine whether the hedge meets

the validity requirements of using hedge accounting during the accounting period specified in the hedge

relationship. If it is not satisfied the hedging relationship is terminated. The application of hedge

accounting shall meet the following requirements for the validity of hedging:

* There is an economic relationship between the hedged item and the hedged instrument.* The influence of credit risk does not play a dominant role in the change of value generated by the

economic relationship between the hedged item and the hedged instrument.

41ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

* The hedging ratio of the hedging relationship should be equal to the ratio of the actual number of

hedged items of the enterprise to the actual number of hedging instruments but should not reflect the

imbalance of the relative weight of the hedged items and hedging instruments which will lead to the

invalidity of the hedge and may produce accounting results inconsistent with the hedge accounting

objectives.The Company shall terminate the use of hedge accounting under any of the following circumstances:

* Due to the change of risk management objectives the hedging relationship no longer meets the risk

management objectives.* The hedge instrument has expired been sold the contract has been terminated or has been

exercised.* There is no longer an economic relationship between the hedged item and the hedged instrument or

the impact of credit risk begins to dominate the value changes generated by the economic relationship

between the hedged item and the hedged instrument.* The hedge relationship no longer satisfies the other conditions for applying the hedge accounting

method.Fair value hedging

Fair value hedging refers to hedging of recognized assets or liabilities unrecognized firm commitments

or the risk exposure of changes in fair value of components of the above items. The change in fair value

arises from specific risks and will affect the company's profit or loss or other comprehensive income.For fair value hedges gains or losses generated by hedging instruments are recognized in the current

profit or loss. Gains or losses arising from hedging risk exposure of the hedged item shall be included in

the current profits and losses and the book value of the hedged item that has not been measured at fair

value shall be adjusted.For fair value hedging related to financial instruments (or their components) measured at amortized cost

adjustments made to the book value of the hedged item are amortized at the effective interest rate

recalculated on the amortization date and recorded in the current period's profit or loss.If the hedged item is a confirmed commitment (or its components) that has not been confirmed yet the

cumulative fair value change caused by the hedged risk after the designation of the hedging relationship

is recognized as an asset or liability and the relevant gains or losses are included in the current profit or

loss. When fulfilling a certain commitment to acquire assets or assume liabilities the initial recognition

amount of the asset or liability should be adjusted to include the cumulative changes in the fair value of

the hedged item that has been recognized.Cash flow hedging

Cash flow hedging refers to the hedging of the risk of changes in cash flow. The change in cash flow

originates from recognized assets or liabilities highly likely expected transactions or specific risks

related to the components of the aforementioned projects and will affect the company's profit and loss.

42ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The portion of the gains or losses on hedging instruments that belong to the effective hedging is

recognized as cash flow hedging reserves as other comprehensive income. The portion that belongs to

the ineffective hedging (i.e. after deducting other gains or losses recognized in other comprehensive

income) is recognized in the current profit and loss.For a cash flow hedge where the hedged item is an anticipated transaction and the anticipated

transaction causes the Company to subsequently recognize a non-financial asset or non-financial

liability or where the anticipated transaction of a non-financial asset or non-financial liability forms a firm

commitment applicable to fair value hedge accounting the Company transfers out the amount of the

cash flow hedge reserve originally recognized in other comprehensive income. The initial recognized

amount credited to the asset or liability.For cash flow hedges that do not fall under the above circumstances the Company transfers the cash

flow hedged reserve amount originally recognized in other comprehensive income to profit or loss during

the same period when the anticipated cash flows hedged affect profit or loss.If the amount of the cash flow hedge reserve recognized in other comprehensive income is a loss and

the loss is not expected to be recovered in whole or in part in future accounting periods the Company

transfers the portion that is not expected to be recovered from other comprehensive income and

recognizes it in current profit or loss when it is not expected to be recovered.When the Company terminates the use of hedge accounting for the cash flow hedge if the hedged

future cash flows are still expected to occur the amount of the accumulated cash flow hedge reserve

recognized in other comprehensive income will be retained until the anticipated transaction actually

occurs and then treated in accordance with the above accounting policy for cash flow hedge. If the

hedged future cash flow is no longer expected to occur the amount of the accumulated cash flow hedge

reserve recognized in other comprehensive income is transferred from other comprehensive income

and recognized in the current profit or loss. The hedged future cash flow expectation is no longer highly

likely to occur but may still be expected to occur and in the event that it is still expected to occur the

amount of the accumulated cash flow hedge reserve is retained until the anticipated transaction actually

occurs and then treated in accordance with the accounting policy for cash flow hedging described

above.The subsidiary of the company Guorun Gold (Shenzhen) Co. Ltd. and Shenzhen Tellus Baoku Supply

Chain Technology Co. Ltd. hedges its gold products to avoid the risk of changes in the fair value of its

gold raw materials using hedging tools such as the Shanghai Gold Exchange's gold spot deferred

delivery contract the Shanghai Futures Exchange's gold futures contract and on exchange gold options

so as to avoid the risk of gold product price decline caused by the significant drop in gold price. This

hedge is a fair value hedge and the designated accounting period for this hedging relationship is from

January 1 2025 to December 31 2025.

31. Significant accounting judgments and estimates

The Company conducts an ongoing evaluation of the significant accounting estimates and key

assumptions used in the light of historical experience and other factors including reasonable

expectations of future events. Significant accounting estimates and key assumptions that are likely to

result in the risk of a material adjustment in the carrying amount of assets and liabilities during the next

fiscal year are set out below:

Classification of financial assets

43ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The Company's major judgments in determining the classification of financial assets include the analysis

of business models and contractual cash flow characteristics.The Company determines the business model for the management of financial assets at the level of its

financial portfolio taking into account factors such as the way in which the performance of financial

assets is evaluated and reported to key managers the risks affecting the performance of financial

assets and their management methods and the way in which managers of related businesses are

remunerated.When evaluating whether the contractual cash flows of financial assets are consistent with the basic

lending arrangement the Company uses the following key judgments: whether the time distribution or

amount of the principal in the duration period may change due to reasons such as prepayment; whether

interest solely includes the time value of money credit risk other fundamental borrowing risks and

consideration for costs and profit. For example whether the amount paid for early repayment only

reflect the outstanding principal and interest based on the outstanding principal and reasonable

compensation for early termination of the contract.Measurement of expected credit losses in accounts receivable

The Company calculates the expected credit losses of accounts receivable through the default risk

exposure of accounts receivable and the expected credit loss rate and determines the expected credit

loss rate based on the default probability and the credit loss rate. In determining the expected credit loss

rate the Company uses data such as internal historical credit loss experience and adjusts the historical

data in combination with the current situation and forward-looking information. When considering

forward-looking information the indicators used by the Company include the risk of an economic

downturn changes in the external market environment the technological environment and customer

conditions. The Company regularly monitors and reviews assumptions relating to the calculation of

expected credit losses.Deferred tax assets

Deferred tax assets should be recognized for all unutilized tax losses to the extent that there is likely to

be sufficient taxable profit to offset the loss. This requires management to use a great deal of judgment

to estimate when and how much future taxable profits will occur in combination with tax planning

strategies to determine the amount of deferred tax assets that should be recognized.Determination of fair value of unlisted equity investments

The estimated value of an unlisted equity investment is the estimation of discounted future cash flows at

the current discount rate for projects with similar terms and risk characteristics. This valuation requires

the Company to estimate expected future cash flows and the discount rate and is therefore subject to

uncertainty. In limited circumstances if the information used to determine fair value is insufficient or if

the possible estimated amount of fair value is widely distributed and the cost represents the best

estimate of fair value within that range the cost can represent its appropriate estimation of fair value

within that distribution range.

32. Changes in significant accounting policies and accounting estimates

(1)Significant changes in accounting policies

44ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The accounting policies used in the current financial statements are consistent with those of the prior

period..

(2)Significant changes in accounting estimates

There were no changes in accounting estimates in the current period.IV. TAXATION

1. Major Categories of Tax and Tax Rates Applicable to the Company

Tax type Tax basis Tax rate%

Taxable value-added amount (the taxable amount is calculated

Value-added tax (VAT) based on the balance of taxable sales multiplied by the applicable 13、9、5、6

tax rate after deducting the allowable input tax for the current period) or 3

For housing property levied on the basis of price real estate tax is

Real estate tax levied at the rate of 1.2% of the balance after deducting 30% of thecost; for housing property levied on the basis of rent real estate tax 1.2 or 12

is levied at the rate of 12% of rent revenue.City maintenance and

construction tax Turnover tax payable 7

Education surcharge Turnover tax payable 3

Local education surcharge Turnover tax payable 2

Enterprise income tax Taxable income 25 or 20

Tax rates of income tax of different subsidiaries are stated as below:

Name of Taxpayer Rate of Income Tax%

深圳市特力创盈科技有限公司(Shenzhen Teli Chuangying Technology Co. Ltd.) 20

深圳市宝安石泉实业有限公司 (Shenzhen Bao'an District Shiquan Industry Co.Ltd.) 20

深圳市特发特力房地产有限公司 (Shenzhen Tefa Teli Real Estate Co. Ltd.) 20

深圳市汽车工业供销公司 (Shenzhen Automobile Industry Sales Company.) 20

上海泛粤钻石有限公司(Shanghai Pan Yue Diamond Co. Ltd. ) 20深圳市华日安信汽车检测有限公司20

(Shenzhen Huari Anxin Automotive Inspection Co. Ltd.)

Other taxable entities other than the above 25

2. Tax incentives

* Enterprise income tax

In accordance with the "Announcement on Further Tax and Fee Policies to Support the Development of

Small and Micro Enterprises and Individual Businesses" (Announcement No. 12 [2023] of the Ministry of

Finance and the State Taxation Administration) for the years from January 1 2023 to December 31

2027 small low-profit enterprises shall calculate taxable income at 25% and pay corporate income tax

at a rate of 20%.The Company's subsidiaries Teli Chuangying Bao'an Shiquan Teli Real Estate

Automobile Supply & Sales Shanghai Fanyue and Huarui Anxin enjoy the above tax incentives.* Value-added tax

45ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

According to the Notice of the State Administration of Taxation regarding the Adjustment of Tax Policies

for Diamonds and the Shanghai Diamond Exchange (Finance and Taxation (2006) No. 65) taxpayers

selling rough diamonds from the Shanghai Diamond Exchange to the domestic market are exempted

from import value-added tax. For taxpayers selling polished diamonds to the domestic market through

the Shanghai Diamond Exchange any VAT burden exceeding 4% in relation to the import stage shall be

collected by customs and subsequently refunded. Upon entering the domestic market taxpayers should

offset their input tax against VAT indicated in payment certificates issued by customs. Following

implementation of import value-added tax exemption and immediate collection/refund policies for

diamonds sold domestically via the Shanghai Diamond Exchange such diamonds will be subject to

Customs regulations upon leaving said exchange. The Company's subsidiary Shanghai fanyue

diamond Co. Ltd. is a member of this exchange and imports finished diamonds through it in order to

avail these aforementioned tax incentives.* Education surcharge

According to the Notice of the State Administration of Taxation on Expanding the Exemption Scope of

Government Funds (Caishui [2016] No. 12) the scope of exemption for Urban maintenance and

construction tax local education surcharge and water conservancy construction fund will be expanded

from the current monthly taxable monthly sales or revenue not exceeding 30000 yuan (quarterly taxable

quarterly sales or revenue not exceeding 90000 yuan) to the monthly taxable monthly sales or revenue

not exceeding 100000 yuan (quarterly taxable quarterly sales or revenue not exceeding 300000 yuan).Our subsidiary Shenzhen Huari Anxin Automotive Inspection Co. Ltd. is entitled to the

above-mentioned tax benefits if its monthly taxable sales or revenue does not exceed 100000 yuan.Ⅴ. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Monetary funds

Item 2025.12.31 2024.12.31

Cash on hand 6016.65 20879.87

Bank deposit 45536363.87 280040887.67

Other monetary funds 103586472.03 97727003.23

Accrued interest on deposits 100304.30 182588.92

Total 149229156.85 377971359.69

Note：The monetary funds with the limited right to use the company are mainly bill margin and futures

option margin.The balances of restricted cash and cash equivalents are as follows：

Item 2025.12.31 2024.12.31

security deposit payable 42100334.71 33113263.10

Futures and options account margin 28748241.60 22848540.40

Deposit and interest of gold lease 0.01 20069638.91

Amount of judicial control - 663948.65

Total 70848576.32 76695391.06

46ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

2. Financial assets held for trading

Item 2025.12.31 2024.12.31

Financial assets measured at fair value

through profit or loss 117410631.65 165630834.06

Including: Structural deposits and

financial products 117410631.65 165630834.06

Total 117410631.65 165630834.06

3. Derivative financial assets

Item 2025.12.31 2024.12.31

Hedging instrument—Derivative financial assets with - 292078.00

specified hedging relationships

Commodity futures contracts and T+D contracts - 292078.00

Total - 292078.00

4. Accounts receivable

（1）Disclosure by aging

Aging 2025.12.31 2024.12.31

Within 1 year 60980767.02 44225898.09

1 to 2 years 1820579.18 2520681.03

2 to 3 years 22959.70 508387.31

More than 3 years 48875942.93 48781485.16

Subtotal 111700248.83 96036451.59

Less: Loss allowance 50690357.04 49472384.45

Total 61009891.79 46564067.14

（2）Disclose accounts receivable according to the method of bad debt provision

2025.12.31

Book value Loss allowance

Type

Percentage ExpectedAmount Amount credit loss Carrying amount(%) rate (%)

Loss allowance on an individual basis 49796666.52 44.58 49570436.52 99.55 226230.00

Loss allowance by group 61903582.31 55.42 1119920.52 1.81 60783661.79

Including:Lease and other portfolio 20689280.75 18.53 707286.49 3.42 19981994.26

Jewelry sales portfolio 41214301.56 36.89 412634.03 1.00 40801667.53

Total 111700248.83 100.00 50690357.04 45.38 61009891.79

Continued：

2024.12.31

Type

Book value Loss allowance Carrying amount

47ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Amount Percentage

Expected

(%) Amount credit lossrate (%)

Loss allowance on an individual basis 48781485.16 50.79 48781485.16 100.00 -

Loss allowance by group 47254966.43 49.21 690899.29 1.46 46564067.14

Including:Lease and other portfolio 35498139.36 36.96 573331.02 1.62 34924808.34

Jewelry sales portfolio 11756827.07 12.25 117568.27 1.00 11639258.80

Total 96036451.59 100.00 49472384.45 51.51 46564067.14

Accounts receivable assessed for impairment individually:

2025.12.31

Debtors Expected

Book value Loss allowance credit loss Reasons for provision

rate (%)

深圳市金路工贸公司 (Shenzhen 9846607.00 9846607.00 100.00 Expected to be unrecoverable

Jinlu Industrial and Trading Co. Ltd.) due to long ages广东湛江三星汽车股份有限公司

(Guangdong Zhanjiang Sanxing 4060329.44 4060329.44 100.00

Expected to be unrecoverable

due to long ages

Automobile Co. Ltd.)

王昌龙(Changlong.Wang) 2370760.40 2370760.40 100.00 Expected to be unrecoverabledue to long ages惠州市建达城道桥工程公司

(Huizhou Jiandacheng Road and 2021657.70 2021657.70 100.00

Expected to be unrecoverable

due to long ages

Bridge Engineering Co. Ltd.)广东省广物控股集团有限公司

(Guangdong Guangwu Holding Group 1862000.00 1862000.00 100.00

Expected to be unrecoverable

due to long ages

Co.Ltd.)

江铃汽车制造厂(Jiangling 1191059.98 1191059.98 100.00 Expected to be unrecoverable

Automobile Factory) due to long ages阳江市汽车贸易有限公司

1150000.00 1150000.00 100.00 Expected to be unrecoverable(Yangjiang Automobile Trading Co. due to long ages

Ltd.)

Others 27294252.00 27068022.00 99.17 Expected to be unrecoverabledue to long ages

Total 49796666.52 49570436.52 99.55 /

Continued：

2024.12.31

Debtors Expected

Book value Loss allowance credit loss Reasons for provision

rate (%)

深圳市金路工贸公司(Shenzhen 9846607.00 9846607.00 100.00 Expected to be unrecoverable

Jinlu Industrial and Trading Co. Ltd.) due to long ages广东湛江三星汽车股份有限公

司(Guangdong Zhanjiang Sanxing 4060329.44 4060329.44 100.00 Expected to be unrecoverabledue to long ages

Automobile Co. Ltd.)

48ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

2024.12.31

Debtors Expected

Book value Loss allowance credit loss Reasons for provision

rate (%)

王昌龙(Changlong.Wang) 2370760.40 2370760.40 100.00 Expected to be unrecoverabledue to long ages

惠州市建达城道桥工程公司 Expected to be unrecoverable

(Huizhou Jiandacheng Road and 2021657.70 2021657.70 100.00 due to long ages

Bridge Engineering Co. Ltd.)

广东省广物控股集团有限公司 Expected to be unrecoverable

(Guangdong Guangwu Holding Group 1862000.00 1862000.00 100.00 due to long ages

Co.Ltd.)

江铃汽车制造厂 1191059.98 1191059.98 100.00 Expected to be unrecoverable

(Jiangling Automobile Factory) due to long ages

阳江市汽车贸易有限公司 Expected to be unrecoverable

(Yangjiang Automobile Trading Co. 1150000.00 1150000.00 100.00 due to long ages

Ltd.)

Others 26279070.64 26279070.64 100.00 Expected to be unrecoverabledue to long ages

Total 48781485.16 48781485.16 100.00

Accounts receivable collectively assessed for loss allowance based on analysis

Combination provision items: Lease and other portfolio

2025.12.312024.12.31

Aging Expected Expected

Book value Loss allowance credit loss Book value Loss allowance credit loss rate

rate (%) (%)

Within 1 year 19296399.10 192183.10 1.00 32469071.02 322296.93 0.99

1 to 2 years 861534.64 40995.07 4.76 2520681.03 126034.06 5.00

2 to 3 years 22959.70 4591.94 20.00 508387.31 125000.03 24.59

More than 3 years 508387.31 469516.38 92.35 - - -

Total 20689280.75 707286.49 3.42 35498139.36 573331.02 1.62

Bad debt items by portfolio: Jewelry sales portfolio

2025.12.312024.12.31

Aging

Book value Loss allowance Expected credit Expected creditloss rate (%) Book value Loss allowance loss rate (%)

Within 1 year 41214301.56 412634.03 1.00 11756827.07 117568.27 1.00

（3）Additions recoveries or reversals of provision for the current period

Type Loss allowance

Amount as at 2025.01.01 49472384.45

Additions 1658055.85

Recoveries or reversals -

49ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Type Loss allowance

Written off in the current period 484803.08

Other Changes 44719.82

Amount as at 2025.12.31 50690357.04

（4）Details of Accounts Receivable Actually Written Off in the Current Period

Item Amount Written Off

Accounts Receivable Actually Written Off 484803.08

（5）Accounts receivable of the top five ending balance by the owing party

Proportion to total

Debtors 2025.12.31 accounts Loss allowance

receivable (%)

河南省邮电科技有限公司38820869.3534.75388208.69

(Henan Post & Telecommunications Technology Co. Ltd.)

深圳市金路工贸公司9846607.008.829846607.00

(Shenzhen Jinlu Industry & Trade Co. Ltd.)

广东湛江三星汽车股份有限公司4060329.443.644060345.95

(Guangdong Zhanjiang Sanxing Automobile Stock Co. Ltd.)

王昌龙(Changlong.Wang) 2370760.40 2.12 2370760.40

惠州市建达城道桥工程公司(Huizhou Jianda Chengdao 2021657.70 1.81 2021657.70

Bridge Engineering Company)

Total 57120223.89 51.14 18687579.74

5. Prepayments

（1）Prepayments disclosed by aging

2025.12.312024.12.31

Aging

Amount Percentage% Amount Percentage%

Within 1 year 831960.48 98.73 795544.97 99.77

1 to 2 years 9000.00 1.07 261.00 0.03

2 to 3 years 61.00 0.01 - -

More than 3 years 1603.94 0.19 1603.94 0.20

Subtotal 842625.42 100.00 797409.91 100.00

Less: Impairment Provision - - - -

Total 842625.42 100.00 797409.91 100.00

（2）Details of the top five prepayment recipients by ending balance grouped by prepayment counterparty.

Percentage of Total

Counterparty Name Prepayment Ending PrepaymentBalance Ending Balance

(%)

50ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Percentage of Total

Counterparty Name Prepayment Ending PrepaymentBalance Ending Balance

(%)

深圳华丽装修家私企业公司133260.8115.81

(Shenzhen Huali Decoration & Furniture Enterprise Co. Ltd.)

国任财产保险股份有限公司深圳分公司133186.8015.81

(Guoren Property & Casualty Insurance Co. Ltd. Shenzhen Branch)

中国电信股份有限公司深圳分公司111101.0013.19

(China Telecom Corporation Limited Shenzhen Branch)

薯鸿文化传媒（上海）有限公司72427.138.60

(Shuhong Culture Media (Shanghai) Co. Ltd.)

杭州阿里妈妈软件服务有限公司70338.458.35

(Hangzhou Alimama Software Service Co. Ltd.)

Total 520314.19 61.76

6. Other receivables

Item 2025.12.31 2024.12.31

Interests receivable - -

Dividends receivable - -

Other receivables 49405335.51 8081783.33

Total 49405335.51 8081783.33

（1）Dividends receivable

Investee 2025.12.31 2024.12.31

中国浦发机械工业股份有限公司1305581.861305581.86

(China Perfect Machinery Industry Corp.Ltd.)

Subtotal 1305581.86 1305581.86

Less: Loss allowance 1305581.86 1305581.86

Total - -

（2）Other receivables

* Disclosed by aging

Aging 2025.12.31 2024.12.31

Within 1 year 43709850.02 5141214.58

1 to 2 years 564912.09 3209073.66

2 to 3 years 1880850.65 916546.35

More than 3 years 49176102.93 51016753.37

Subtotal 95331715.69 60283587.96

Less: loss allowance 45926380.18 52201804.63

Total 49405335.51 8081783.33

51ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

* Disclosure by nature of payment

Item 2025.12.31 2024.12.31

Temporary advance payment receivable 3943137.76 6258271.82

Security deposit 44330855.20 3195494.08

Intercompany Balances 44852837.54 47147781.27

Others 2204885.19 3682040.79

Subtotal 95331715.69 60283587.96

Less: loss allowance 45926380.18 52201804.63

Total 49405335.51 8081783.33

* Loss allowance

Loss allowance in the first stage at the end of the period

Expected credit

Type Book value loss rate over thenext 12 months Loss allowance Carrying amount

(%)

Loss allowance on an individual

basis - - - -

Loss allowance by group 47639177.20 2.78 1324059.51 46315117.69

Ageing group 3308322.00 6.13 202948.89 3105373.11

Security deposit 44330855.20 2.53 1121110.62 43209744.58

Total 47639177.20 2.78 1324059.51 46315117.69

At the end of the period the Company did not have dividends receivable and other receivables in the

second stage.Loss allowance in the third stage at the end of the period

Type Book value Lifetime expectedcredit loss rate (%) Loss allowance Carrying amount

Loss allowance on an individual

basis 47692538.49 93.52 44602320.67 3090217.82

Loss allowance by group

Ageing group - - - -

Security deposit - - - -

Total 47692538.49 93.52 44602320.67 3090217.82

Loss allowance in the first stage at the end of last year

Expected credit loss

Type Book value rate over the next 12 Loss allowance Carrying amount

months (%)

Loss allowance on an individual

basis - - - -

Loss allowance by group 6464040.17 9.11 589121.09 5874919.08

52ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Expected credit loss

Type Book value rate over the next 12 Loss allowance Carrying amount

months (%)

Ageing group 3268546.09 7.06 230887.66 3037658.43

Security deposit 3195494.08 11.21 358233.43 2837260.65

Total 6464040.17 9.11 589121.09 5874919.08

At the end of the previous year the Company did not have any dividends receivable or other receivables

in the second stage.Loss allowance in the third stage at the end of last year

Expected credit loss

Type Book value rate over the next 12 Loss allowance Carrying amount

months (%)

Loss allowance on an individual

basis 53819547.79 95.90 51612683.54 2206864.25

Loss allowance by group - - - -

Ageing group - - - -

Security deposit - - - -

Total 53819547.79 95.90 51612683.54 2206864.25

* Additions recoveries or reversals of provision for the current period

First stage Second stage Third stage

Loss allowance Expected credit Lifetime expected

Lifetime expected

losses over the next credit losses (no credit credit losses (credit Total

12 months impairment occurred) impairment hasoccurred)

Balance as at January 1 2025 589121.09 - 51612683.54 52201804.63

Balance as at January 1 2025

in the current period - - - -

- Transfer to the second stage - - - -

- Transfer to the third stage - - - -

- Transfer out to the second

stage - - - -

- Transfer out to the first stage - - - -

Additions 831129.13 - 50494.49 881623.62

Reversals 96190.71 - 1205470.99 1301661.70

Charge-offs - - 5306106.09 5306106.09

Other changes 549280.28 549280.28

Balance as at December 31

20251324059.51-44602320.6745926380.18

* Other receivables written off in the current period

53ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Amount written off

Other receivables written off 5306106.09

* Other receivables of the top five ending balances by the owing party

Proportion to

Debtors Nature ofreceivables 2025.12.31 Aging

total other

receivables Loss allowance

(%)

国金黄金股份有限公司 SecurityDeposit 21830000.00 Within 1

(Guojin Gold Co. Ltd.) year

22.90155871.90

深圳市众恒隆实业有限公司 Security

(Shenzhen Zhonghenglong Industrial Deposit 18731980.00

Within 1

year 19.65 187319.80

Co. Ltd.)

深圳中汽华南汽车销售公司 Current More than

(Shenzhen Zhongqi Huanan Automobile account 9832956.37 3 years 10.31 9832956.37

Sales Company)

南方工贸深圳实业公司(Shenzhen Current

account 7359060.75

More than

Nanfang Industry and Trade Co. Ltd) 3 years

7.727359060.75

深圳中浩(集团)股份有限公司 Current

account 5000000.00

More than

(Shenzhen Zhonghao(group)Ltd) 3 years

5.245000000.00

Total 62753997.12 65.82 22535208.82

7. Inventories

（1）Inventory by type

2025.12.312024.12.31

Loss allowance Loss allowance

of of

Items inventories/Imp Carrying inventories/ImpBook value airment Book value airment Carrying

Allowance for amount Allowance for amount

Contract Contract

Fulfilment Costs Fulfilment Costs

Raw materials 146932.23 - 146932.23 8281211.63 - 8281211.63

Finished goods 39330164.36 28997998.14 10332166.22 29558580.97 29094882.38 463698.59

Hedged items 49178442.27 - 49178442.27 114856873.15 - 114856873.15

Consigned

finished goods - - - 3830408.18 - 3830408.18

Total 88655538.86 28997998.14 59657540.72 156527073.93 29094882.38 127432191.55

（1）Loss allowance of inventories/Impairment Allowance for Contract Fulfilment Costs

Item 2025.01.01 Additions during the year Decreasesduring the year 2025.12.31

54ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Changes in

Provision Others Consolidation Reversed or

Scope written-off

Finished goods 29094882.38 84463.30 - 181347.54 - 28997998.14

8. Non-current assets due within one year

Item 2025.12.31 2024.12.31

Certificates of Deposit (CDs) Time

Deposits and Accrued Interest 87268498.36 91587627.94

Maturing Within One Year

9. Other current assets

Item 2025.12.31 2024.12.31

Input VAT to be Verified 9482963.33 25711444.95

Advance tax 7696873.59 167748.29

Certificates of Deposit (CDs) Time

Deposits and Related Accrued Interest 1746738.90 54969057.53

Prepaid Expenses - 313322.22

Reimbursable Advances of Agency 385725.01 15582254.39

Total 19312300.83 96743827.38

10. Other debt investments

Item 2025.12.31 2025.12.31

Negotiable certificates of deposit 661117925.76 133545478.92

Less: other debt investments due

within one year 87268498.36 48821350.16

Total 573849427.40 84724128.76

11. Long-term receivables

（1）Disclosure of Long-term Receivables by Nature

2025.12.31 2024.12.31 Range of

Item discount

Book value Loss Carryingallowance amount Book value

Loss Carrying

allowance amount rate

Related party

transactions 6146228.91 6146228.91 - 6146228.91 6146228.91 -

Less: long-term

receivables due - - - - - -

within 1 year

Total 6146228.91 6146228.91 - 6146228.91 6146228.91 - -

55ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

12. Long-term equity investments

Movements during the year

Investment Declared Ending balance

Investee Opening balance Increase in Decrease in income Other Other distribution Provision for Increase in Ending balance of loss

capital capital recognised comprehensive equity of cashunder equity income movements dividends impairment

Others capital allowance

method or profits

* Joint venture深圳特力吉盟投资有限

公司(Shenzhen 56216004.26 - 26111495.42 - - 20000000.00 - 62327499.68

Tellus-Gmond Investment

Co. Ltd.)深圳市特力行投资有限

公司(Shenzhen Tellus 13686903.37 - 841444.02 - - - - 14528347.39

Xing Investment Co.Ltd.)(Note1)

Subtotal 69902907.63 - - - 26952939.44 - - 20000000.00 - 76855847.07

* Associates深圳市仁孚特力汽车服

务有限公司(Shenzhen 15188925.57 - 2431128.33 17620053.90

Renfu Tellus Automobiles

Service Co. Ltd.)深圳特力汽车服务连锁

有限公司(Shenzhen - - - - - - - - - - - -

Tellus Automobile Services

Chain Co. Ltd.)(Note2)深圳市永通信达检测设备有限责任公司

(Shenzhen Yongtong Xinda - - - - - - - - - - - -

Inspection Equipment Co.Ltd.)(Note2)

深圳捷成电子有限公司3225000.003225000.00-------3225000.003225000.00

(Shenzhen Jiecheng

56ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Movements during the year

Investment Declared Ending balance

Investee Opening balance Increase in Decrease in income Other Other distribution Ending balance of loss

capital capital recognised comprehensive equity of cash

Provision for Others Increase in allowance

under equity income movements dividends impairment capital

method or profits

Electronic Co. Ltd.)(Note3)中国汽车工业深圳贸易

公司(China Automobile 400000.00 400000.00 - - - - - - - - 400000.00 400000.00

Shenzhen Trading Co.Ltd.)(Note3)深圳通用标准件有限公

司(Shenzhen General 500000.00 500000.00 - - - - - - - - 500000.00 500000.00

Standard Parts Co.Ltd.)(Note3)深圳中汽华南汽车销售

公司(Zhongqi South China 2250000.00 2250000.00 - - - - - - - - 2250000.00 2250000.00

Automobile Sales Co.Ltd. )(Note3)深圳百力源电源有限公

司(Shenzhen Bailiyuan 1320000.00 1320000.00 - - - - - - - - 1320000.00 1320000.00

Power Co. Ltd.)(Note3)深圳市益民汽车贸易公

司(Shenzhen Yimin 200001.10 200001.10 - - - - - - - - 200001.10 200001.10

Automobile Trading Co.Ltd.)(Note3)深圳火炬火花塞工业公

司(Shenzhen Torch Spark 17849.20 17849.20 - - 865445.32 - - 865445.32 - - 17849.20 17849.20

Plug Industrial Co. Ltd.)

57ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)深圳市特力新永通汽车服务有限公司

（Shenzhen Teli 420000.00 420000.00 - - - - - - - - 420000.00 420000.00Xinyongtong AutomobileService Co. Ltd.）湖南昌阳实业股份有限

公司(Hunan Changyang 1810540.70 1810540.70 - - - - - - - 1810540.70 - -

Industrial Co. Ltd.)(Note 4)深圳先导新材料有限公

司(Shenzhen Xiandao New 4751621.62 4751621.62 - - - - - - - 4751621.62 - -

Materials Co. Ltd.)(Note4)

Subtotal 30083938.19 14895012.62 - - 3296573.65 - - 865445.32 - 6562162.32 25952904.2 8332850.3

* Associates深圳汉力高技术陶瓷有

限公司(Shenzhen Haneco 1956000.00 1956000.00 - - - - - - - 1956000.00 - -

Technologies Ceramics

Co. Ltd.)(Note4)深圳市南方汽车维修中

心(Nanfang Automobile 6700000.00 6700000.00 - - - - - - - 6700000.00 6700000.00

Repairing Center)(Note5)

Subtotal 8656000.00 8656000.00 - - - - - - - 1956000.00 6700000.00 6700000.00

Total 108642845.82 23551012.62 - - 30249513.09 - - 20865445.32 - 8518162.32 109508751.27 15032850.30

Note 1: The Company holds 51%of the equity of 深圳市特力行投资有限公司(Shenzhen Tellus Xing Investment Co. Ltd.). According to the articles of

association the rights of voting and nominated directors cannot be unilaterally decided on the relevant decisions by the company's shareholders' meeting and

the board of directors and the Company does not have a control.Note 2: The book balances of these long-term equity investments have been adjusted to Nil by the recognition of profit and loss adjustments under equity

method.Note 3: Industrial and commercial registration of these companies has been revoked and the Company has made full provision for impairment for these

long-term equity investments.

58ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Note 4: Hunan Changyang Industrial Co. Ltd. Shenzhen Xiandao New Materials Co. Ltd. and Shenzhen Hanli High-Tech Ceramics Co. Ltd. have all

completed their commercial deregistration. During the current year with the approval of the Board of Directors the long-term equity investments in three

investees and the corresponding impairment provisions thereof have been written o

Note 5: The operating period of Shenzhen Nanfang Automobile Repairing Center have ceased operation for many years and their industrial and commercial

registration has been revoked because they did not participate in the annual industrial and commercial inspection. The Company is unable to exercise effective

control over these companies. Therefore they are not included in the consolidated scope of the Company’s consolidated financial statements. The carrying

amount of the Company’s investment in these companies is zero.

59ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

13. Investments in other equity instruments

（1）Details of other equity instrument investments

Items 2025.12.31 2024.12.31

Non-public equity instrument

investment - -

（2）Details of equity instrument investments non-held-for-trading

Gains and losses Dividend

recognized in other Cumulative income Cumulative gains or

Items comprehensive gains or losses recognized in losses transferred to Reason for

income for the at year end the current retained earnings derecognition

current period period upon derecognition中国浦发机械工业股

份有限公司(China - -10176617.20 - - -

Perfect Machinery

Industry Corp. Ltd.)

14. Investment properties

（1）Investment properties measured at cost

Item Buildings Land use rights Total

I. Cost

1.2025.01.011282555873.4895667082.861378222956.34

2.Additions during the year - - -

3.Decrease during the year - - -

4.2025.12.311282555873.4895667082.861378222956.34

II. Accumulated depreciation or amortization

1.2025.01.01270001900.228448923.02278450823.24

2.Charge for the year 43745919.41 2119130.04 45865049.45

(1)Depreciated or amortised 43745919.41 2119130.04 45865049.45

3.Reductions during the year - - -

4.2025.12.31313747819.6310568053.06324315872.69

III. Loss allowance

1.2025.01.01---

2.Charge for the year - - -

3.Reductions on disposals - - -

4.2025.12.31---

IV.Carrying amounts -

1.2025.12.31968808053.8585099029.801053907083.65

2.2025.01.011012553973.2687218159.841099772133.10

60ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

（1）Investment properties pending certificates of ownership

Item Carrying amount Reason why certificates are pending

Building 12 stores Sungang 8524.38 Due to historical reasons certificate of titles hasnot been applied for.Zhonghe office building 3493294.17 Due to historical reasons certificate of titles hasnot been applied for.Building 12 Sungang 2653.97 Due to historical reasons certificate of titles hasnot been applied for.Total 3504472.52

15. Fixed assets

Item 2025.12.31 2024.12.31

Fixed assets 61870381.34 70699928.84

Fixed assets to be disposed of - 63754.41

Total 61870381.34 70763683.25

61ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

（1）Fixed assets

* Details of fixed assets

Item Plant and buildings Machinery andequipment Motor vehicles

Electronic

equipment Renovation of fixed

Office and other

assets equipment

Total

I. Cost:

1.2025.01.01218469493.3521437166.983203004.388981644.201569294.597376181.84261036785.34

2.Additions during the year - - - 854883.44 - 157643.41 1012526.85

(1)Purchases - - - 854883.44 - 157643.41 1012526.85

3.Disposals or write-offs - 6655409.61 798383.58 1507174.36 1141459.06 754535.44 10856962.05

(1)Disposal or scrapping - 6655409.61 798383.58 1507174.36 1141459.06 754535.44 10856962.05

4.2025.12.31218469493.3514781757.372404620.808329353.28427835.536779289.81251192350.14

II. Accumulated depreciation:

1.2025.01.01155407884.8412464244.252650168.447317598.671103942.475361813.76184305652.43

2.Charge for the year 6438213.27 927035.22 66367.08 669600.88 - 1354646.43 9455862.88

(1)Provision 6438213.27 927035.22 66367.08 669600.88 - 1354646.43 9455862.88

3.Reductions for the year - 5397159.10 746730.22 955884.74 860076.33 600008.22 8559858.61

(1)Disposal or write-offs - 5397159.10 746730.22 955884.74 860076.33 600008.22 8559858.61

4.2025.12.31161846098.117994120.371969805.307031314.81243866.146116451.97185201656.70

III. Provision for impairment

1.2025.01.013555385.701400150.0961984.82387935.05465352.12160396.296031204.07

2.Charge for the year - - - - - - -

3.Reductions for the year - 1250883.99 51653.36 175666.13 281382.73 151305.76 1910891.97

(1)Disposals or write-offs - 1250883.99 51653.36 175666.13 281382.73 151305.76 1910891.97

4.2025.12.313555385.70149266.1010331.46212268.92183969.399090.534120312.10

IV.Carrying amount

1.2025.12.3153068009.546638370.90424484.041085769.55-653747.3161870381.34

2.2025.01.0159506222.817572772.64490851.121276110.48-1853971.7970699928.84

62ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

1 Fixed assets leased through operating leases

Item Carrying amount

Plant and Buildings 45648811.88

* Fixed assets with certificate of titles being unsettled

Items Carrying amount Reason why certificates are pending

Yongtong Building 16694176.87 Due to historical reasons certificateof titles has not been applied for.Automobile Building 18170392.84 Due to historical reasons certificateof titles has not been applied for.Tellus Building underground parking 6424227.08 Unable to apply for certificate of titleslot for parking lot

Third – Fifth floor of Plant 1 Plant 2243115.04 Due to historical reasons certificate

2 and Plant 3 on Taoyuan Road of titles has not been applied for.

Tellus Building transfer story 978779.24 Unable to apply for certificate of titles

Building 16 of Taohua Yuan 761853.54 Due to historical reasons certificateof titles has not been applied for.Warehouse 47658.93 Due to historical reasons certificateof titles has not been applied for.First floor of commercial and

544798.04 Due to historical reasons certificateresidential building in Bao’an of titles has not been applied for.

Shuibei Zhongtian Complex Building 433404.22 Due to historical reasons certificateof titles has not been applied for.Warehouse of trade department 34483.33 Due to historical reasons certificateof titles has not been applied for.Factory and shop 5-7 of Buxin Road 14317.22 Due to historical reasons certificateof titles has not been applied for.Songquan Apartment (Mix) 10086.79 Due to historical reasons certificateof titles has not been applied for.Buxin generator room 5994.58 Due to historical reasons certificateof titles has not been applied for.Hostel on North Renmin Road 5902.41 Due to historical reasons certificateof titles has not been applied for.Total 46369190.13

16. Construction in progress

Item 2025.12.31 2024.12.31

Construction in progress 5111882.70 3332141.19

Total 5111882.70 3332141.19

（1）Construction in progress

* Details of construction in progress

2025.12.312024.12.31

Item

Book value Loss Carrying Book value Loss Carryingallowance amount allowance amount

其他工程(Other construction) 5111882.70 - 5111882.70 3332141.19 - 3332141.19

Total 5111882.70 - 5111882.70 3332141.19 - 3332141.19

63ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

17. Right-of-use assets

Item Plant and buildings Total

I. Cost:

1.2025.01.0196383601.1796383601.17

2.Additions in the current period 3845893.75 3845893.75

(1)Rent in 3845893.75 3845893.75

(2) Lease liability adjustment - -

3.Decreases in the current period - -

(1)Expiry - -

(2)Lease modification - -

4.2025.12.31100229494.92100229494.92

II. Accumulated depreciation

1.2025.01.0117825595.6717825595.67

2.Additions in the current period 4483068.69 4483068.69

(1)Accrued 4483068.69 4483068.69

(2)Other additions - -

3.Decreases in the current period - -

(1)Expiry - -

(2)Lease modification - -

4.2025.12.3122308664.3622308664.36

III. Loss allowance - -

1.2025.01.01--

2.Additions in the current period - -

3.Decreases in the current period - -

4.2025.12.31--

IV.Carrying amount -

1.2025.12.3177920830.5677920830.56

2.2025.01.0178558005.5078558005.50

18. Intangible assets

（1）Intangible assets

Item Land use right The patent right Software Total

I. Cost -

1.2025.01.011967851.00128500.007789468.209885819.20

2.Additions in the current period - 4.50 1176288.56 1176293.06

(1)Purchase - 4.50 1176288.56 1176293.06

3.Decreases in the current period - - 564999.80 564999.80

(1)Disposal - - 564999.80 564999.80

64ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Land use right The patent right Software Total

4.2025.12.311967851.00128504.508400756.9610497112.46

II. Accumulated amortization -

1.2025.01.01906247.54114780.565088956.656109984.75

2.Additions in the current period 103571.04 2720.28 1256407.30 1362698.62

(1)Accrued 103571.04 2720.28 1256407.30 1362698.62

3.Decreases in the current period - - 38000.00 38000.00

(1)Disposal - - 38000.00 38000.00

4.2025.12.311009818.58117500.846307363.957434683.37

III. Loss allowance

1.2025.01.01----

2.Additions in the current period - - - -

3.Decreases in the current period - - - -

4.2025.12.31----

IV.Carrying amount -

1.2025.12.31958032.4211003.662093393.013062429.09

2.2025.01.011061603.4613719.442700511.553775834.45

19. Long-term deferred expenses

Item 2025.01.01 Additions in the Amortization in thecurrent period current period Other decreases 2025.12.31

Renovation 47932696.85 1218945.3 15091948.28 - 34059693.87

Information

System service fee 29926.36 - 17955.84 - 11970.52

Renovation Project 132786.16 - 86599.68 - 46186.48

Total 48095409.37 1218945.30 15196503.80 34117850.87

20. Deferred tax assets and deferred tax liabilities

(1) Deferred tax assets and deferred tax liabilities before offset

2025.12.312024.12.31

Item Deferred tax Deductible/ Deferred tax

Deductible/

assets/ liabilities taxable temporary assets/ liabilities taxable

difference temporarydifference

Deferred tax assets:

Asset impairment provision 7953897.05 31815588.17 8747158.83 34988635.30

Deferred income 106384.69 425538.76 139118.44 556473.76

Changes in fair value of trading financial

assets 524311.83 2097247.32 99628.81 398515.24

Changes in fair value of investments in

other equity instruments 2544154.30 10176617.20 2544154.30 10176617.20

65ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

2025.12.312024.12.31

Item Deferred tax Deductible/ Deferred tax

Deductible/

assets/ liabilities taxable temporary assets/ liabilities taxable

difference temporarydifference

Lease liabilities 18213711.52 72854846.05 21110941.41 84443765.66

Subtotal 29342459.39 117369837.50 32641001.79 130564007.16

Deferred tax liabilities:

Accelerated depreciation of fixed assets 18684.85 74739.40 31644.25 126577.00

Taxable temporary difference 1691712.74 6766850.96 4273564.60 17094258.40

Appreciation of Asset Valuation in Business

Combinations under Non - Common Control 25271348.28 101085408.59 28581570.00 114326295.47

Right-of-use assets 16116520.28 64466081.10 19432952.64 77731810.56

Subtotal 43098266.15 172393080.05 52319731.49 209278941.43

（2）Deferred Tax Assets or Liabilities Presented Net of Offset

Amounts Offset Between Amounts Offset

Deferred Tax Assets (DTA) Net Deferred Tax Between DTA and Net DTA/(DTL)Item and Liabilities (DTL) at End Asset/(Liability) Position DTL at End of Prior Position at End

of Current Period at End of Current Period Year of Prior Year

Deferred tax assets 22942743.95 6399715.44 27144223.01 5496778.78

Deferred tax liabilities 22942743.95 20155522.20 27144223.01 25175508.48

（3）Details of temporary differences and deductible losses for unrecognized deferred tax assets

Item 2025.12.31 2024.12.31

Deductible temporary differences 125029644.86 149654149.86

Deductible losses 36370445.85 45273526.35

Total 161400090.71 194927676.21

（4）Expiration of deductible tax losses for unrecognized deferred tax assets

Year 2025.12.31 2024.12.31 Note

20256285169.81

20266498346.808589171.35

20272137636.332693238.23

202819129892.0924987453.67

20292717934.102718493.29

20305886636.53

Total 36370445.85 45273526.35

66ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

21. Other non-current assets

2025.12.312024.12.31

Item Loss Loss

Book value allow Carrying

ance amount

Book value allowa Carrying amount

nce

Amortization of the Bundled

Construction Project for the

Teli-Gemeng Gold Jewelry 46760375.52 - 46760375.52 47062569.00 - 47062569.00

Industrial Park Upgrade and

Renovation Project

VAT input tax to be certified - - - 7237158.45 - 7237158.45

Certificates of Deposit (CDs)

Time Deposits and Accrued

Interest Maturing Beyond One 148413808.15 - 148413808.15 145315608.13 - 145315608.13

Year

Prepayment for software 132775.71 - 132775.71 132775.71 - 132775.71

Total 195306959.38 - 195306959.38 199748111.29 - 199748111.29

22. Assets with restricted ownership and right-of-use

2025.12.31

Items

Book Balance Carrying amount Restricted type Reason for restriction

Monetary funds 70848576.32 70848576.32 Security depositetc. Restricted Margins for NotesPayable and Futures Margins etc.Continued:

2024.12.31

Items

Book Balance Carrying amount Restricted type Reason for restriction

Monetary funds 76695391.06 76695391.06 Security depositetc. Restricted Margins for NotesPayable and Futures Margins etc.

23. Short-term loans

(1)Classification of short-term loans

Item 2025.12.31 2024.12.31

Unsecured loans 11002344.41 120101444.43

24. Financial liabilities held for trading

Item 2025.01.01 Additions in the current Decreases in theperiod current period 2025.12.31

Financial liabilities

designated as

measured at fair value - 62799920.00 62799920.00 -

through profit or loss

Including: Gold leasing - 62799920.00 62799920.00 -

Total - 62799920.00 62799920.00 -

67ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

25. Derivative financial liabilities

Items 2025.12.31 2024.12.31

Derivative financial liability that

specifies a hedging relationship 2702318.10 46660.00

Including: commodity futures contracts

and T+D contracts 2702318.10 46660.00

Total 2702318.10 46660.00

26. Notes Payable

Category 2025.12.31 2024.12.31

Commercial Acceptance Bills - -

Bankers' Acceptance Bills 180000000.00 110000000.00

Total 180000000.00 110000000.00

27. Accounts payable

Items 2025.12.31 2024.12.31

Payment for goods and services 14666732.29 7874360.75

Payment for construction equipment 94686651.76 117681332.38

Total 109353384.05 125555693.13

Including: material accounts payable with aging of more than 1 year

Reasons for not being settled or

Items 2025.12.31 carried forward

中国建筑一局(集团)有限公司 40930678.45 Provisional amountThe project

(China Construction First Building(group)corporation Limited) has not been settled.

深圳市英龙建安(集团)有限公司

(Shenzhen Yinglong Jian an (Group) Co. Ltd.) 28298954.80 The project has not been settled.’

深圳市易诺建设工程有限公司 3555095.22 The project has not been settled.(Shenzhen Yinuo Construction Engineering Co. Ltd.)

深圳市水贝壹号投资发展有限公司 1120000.00 The project has not been settled.(Shenzhen Shuibei Top 1 Investment and Development Co. Ltd.)

Total 73904728.47

28. Advances from customers

Items 2025.12.31 2024.12.31

Rental 8222394.47 9469503.75

29. Contract liabilities

Items 2025.12.31 2024.12.31

Advance receipts for goods 3074162.93 2404815.58

Advance receipts for services 529987.77 1604689.01

Total 3604150.70 4009504.59

68ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

30. Employee pay compensation

Item Beginning balance Increased in the Decrease in thecurrent period current period Ending balance

Short-term compensation 36774351.19 51423146.98 45977015.48 42220482.69

Post-resignation benefits-Defined

contribution plan 29272.75 5215156.31 5244429.06 -

Dismiss welfare 32000.00 861999.42 830600.98 63398.44

Total 36835623.94 57500302.71 52052045.52 42283881.13

(1) Short-term benefits

Item Beginning Increased in the Decrease in thebalance current period current period Ending balance

Wages bonuses allowances and

subsidies 36144993.25 43140939.14 37883066.08 41402866.31

employee services and benefits 518171.62 1600566.28 1454761.35 663976.55

Social insurance premiums 10591.21 1769591.04 1780182.25 -

Including: medical treatment insurance

premium 8898.48 1465874.42 1474772.90 -

maternity insurance premium 764.39 150111.39 150875.78 -

Industrial injury insurance premium 928.34 153605.23 154533.57 -

housing fund 1012.80 3659509.09 3660521.89 -

Trade union funds and staff education

funds 99582.31 1252541.43 1198483.91 153639.83

Total 36774351.19 51423146.98 45977015.48 42220482.69

(2) Defined contribution plan

Item Beginning balance Increased in the Decrease in thecurrent period current period Ending balance

Post-resignation

benefits 29272.75 5215156.31 5244429.06 -

Among them: basic

endowment insurance 27743.97 4966302.21 4994046.18 -

premium

unemployment

insurance expense 1528.78 248854.10 250382.88 -

Total 29272.75 5215156.31 5244429.06 -

31. Taxes payable

Item Ending balance Beginning balance

Increment tax on land value 17360372.46 17360372.46

Corporate Revenue taxes 6383663.90 11454335.79

Added-value tax 3954478.65 5266527.71

Urban maintenance & construction tax 249005.10 105007.68

Extra charges of education funds 177860.76 74959.48

Individual Revenue tax 692986.33 1297785.08

69ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Ending balance Beginning balance

Stamp duty 204418.33 518448.66

Land use tax 26460.00 26460.00

Consumption duty 4864.11 964.82

Other taxes and fees 4972.44 4878.34

Total 29059082.08 36109740.02

32. Other Accounts Payable

Item Ending balance Beginning balance

Interest payable - -

dividends payable - -

accounts payable-others 139483702.52 126312280.55

Total 139483702.52 126312280.55

(1) Other payments payable

* According to the nature of the payment list

Item Ending balance Beginning balance

Deposit deposit 81230478.40 73630322.35

Related dealings 5317052.99 7845985.83

Advance payment 23774224.22 14104886.38

Receipt of temporary collection 29161946.91 30731085.99

Total 139483702.52 126312280.55

* Important other payables aged for more than 1 year

Name of creditor's right unit Ending balance Reasons for failure to repay

Rise Profit Investment Limited 2255339.58 The affiliates are not repaid

Shenzhen FuluXin Jewelry Co. Ltd 1441083.45 The deposit is not due

Shenzhen Longgang Teli Real Estate Company 1095742.50 The affiliates are not repaid

Total 4792165.53 -

33. Non-current liabilities arising due within one year

Item Ending balance Beginning balance

Lease liabilities becoming due within 1 year 10581548.92 8674869.40

34. Other current liabilities

Item Ending balance Beginning balance

The amount of tax to be transferred 1858235.00 6142814.36

Others 355990.00 -

Total 2214225.00 6142814.36

70ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

35. Lease obligation

Item Ending balance Beginning balance

Lease payment amount 98086240.58 99108961.99

Less: Unrecognized financing charges 12062881.28 13892107.04

subtotal 86023359.30 85216854.95

Less: Non-current liabilities due within

one year 10581548.92 8674869.40

Net Lease liabilities 75441810.38 76541985.55

36. Long-term payable

Item Ending balance Beginning balance

Long-term payable 3920160.36 3920160.36

account payable special funds - -

Total 3920160.36 3920160.36

(1) Long-term payment payable(presented by nature of payment)

Item Ending balance Beginning balance

Employee housing deposit 3908848.40 3908848.40

Grant funds for technology innovation Items 11311.96 11311.96

subtotal 3920160.36 3920160.36

Less: long-term payment due within one year - -

Total 3920160.36 3920160.36

37. Estimated liabilities

Item Ending balance Beginning balance forming reason

pending action 9956800.00 - pending action

38. Deferred Revenue

Item beginning Increased in the Decrease in thebalances current period current period Ending balance forming reason

public subsidy 7837477.60 - 1780205.93 6057271.67

For the government subsidies included in the deferred Revenue see Note VIII.

39. Share capital (unit: shares)

Beginning Increased in the current period or decreases (+ -)Item balances Issue new Ending balance

shares Send shares

Provident fund

conversion other subtotal

Total number of

shares 431058320.00 - - - - - 431058320.00

Total 431058320.00 - - - - - 431058320.00

71ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

40. capital reserve

Item beginning balances Increased in the Decrease in thecurrent period current period Ending balance

capital stock premium 425184907.34 - - 425184907.34

Other capital reserves 5681501.16 - - 5681501.16

Total 430866408.50 - - 430866408.50

41. Other comprehensive Revenue

Other comprehensive Revenue attributable to the parent company in the balance sheet:

Amount incurred in the current period

After-tax Less: the retainedBeginning

Item balances ownership is

Revenue transferred Ending balance

into other

（1） attributable to (4)=(1)+(2)-(3)

the parent comprehensive

company (2) Revenue in the earlyperiod (3)

1. Other comprehensive Revenue that cannot

be reclassified into profits and losses -7632462.90 - - -7632462.90

1. Changes in the fair value of investments in

other equity instruments -7632462.90 - - -7632462.90

3. Other consolidated benefits of

reclassification into profit and loss 26422.00 - - 26422.00

1. Other comprehensive Revenue of the

convertible profit and loss under the equity 26422.00 - - 26422.00

method

Total of other comprehensive Revenue -7606040.90 - - -7606040.90

42. Surplus reserves

Item Beginning balance Increased in the Decrease in thecurrent period current period Ending balance

legal earned surplus

reserve 74222656.99 18438453.17 - 92661110.16

43. Undistributed profit

Item The amount of this period The last amount

Undistributed profit at the end of the

previous period before the adjustment 798343284.97 685342592.62

Adjustment to the beginning balance of

undistributed profits (Positive

adjustment: + Negative adjustment: -)

Adjust the late and early undistributed

profits 798343284.97 685342592.62

Plus: net profit attributable to the

shareholders of the parent company 142865677.77 136629870.80

for this period

Less: draw up the statutory surplus

reserves 18438453.17 10266370.53

Common stock dividend payable 43105832.00 13362807.92

72ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item The amount of this period The last amount

Undistributed end profits 879664677.57 798343284.97

44. Operating revenue and operating cost

(1) Operating revenue and operating cost

Amount incurred in the current period Amount incurred in the previous period

Item

Revenue Cost Revenue Cost

Principal business 1461603400.53 1212036648.67 2613678204.37 2376764300.06

Other business - - - -

Total 1461603400.53 1212036648.67 2613678204.37 2376764300.06

(2) Operating revenue and operating cost are divided by industry

Amount incurred in the current period Amount incurred in the previous period

firm name

Revenue Cost Revenue Cost

Principle business: -

Jewelry sales and services 1131888850.11 1083515862.78 2320842052.78 2273354439.85

Leasing and Services 329714550.42 128520785.89 292836151.59 103409860.21

Total 1461603400.53 1212036648.67 2613678204.37 2376764300.06

(3) Operating income and operating cost are divided by regions

Principle business Amount incurred in the current period Amount incurred in the previous period

areas Revenue Cost Revenue Cost

South China 943760912.51 714612561.75 1971504250.32 1743354212.66

Eastern China 173615831.08 166772471.71 241495799.74 238075580.05

The northern region 77242667.32 74225466.43 260881606.21 257355619.98

central China 243245121.80 233662659.62 121099408.56 119547197.35

Other areas 23738867.82 22763489.16 18697139.54 18431690.02

Total 1461603400.53 1212036648.67 2613678204.37 2376764300.06

(4) Operating revenue and operating cost are divided according to the commodity transfer time

Amount incurred in the current period

Item Revenue from jewelry sales and

services Lease and service Revenue

Principle business -

Among them: confirm at a certain point 1127981030.71 -

Confirm at some time 3907819.40 329714550.42

Total 1131888850.11 329714550.42

73ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

45. Taxes and Additional

Item Amount incurred in the Amount incurred in the previouscurrent period period

urban maintenance & construction tax 1212666.92 1830648.40

extra charges of education funds 865984.75 1307560.01

stamp duty 1025054.06 2405663.01

building taxes 7423432.99 7172545.32

use tax of land 421607.18 442956.07

other 23265.10 13275.47

Total 10972011.00 13172648.28

Note: See note 4 for all taxes and additional calculation and payment standards.

46. Selling expenses

Item Amount incurred in the Amount incurred in thecurrent period previous period

Employee compensation 7362395.79 6552554.33

E-commerce channel operation service fee 2793224.28 6284555.98

Depreciation and amortization 2435673.37 3089169.78

Advertising promotion fee 890795.54 1514296.05

Water electricity and cleaning costs 375508.95 423458.67

Insurance 574103.82 548338.28

Consultation and service fees 494660.94 1054392.27

Transportation and travel expenses 238850.81 271940.20

Communication fees 177004.52 424139.87

Administrative expenses 86310.28 171365.99

Business entertainment 19727.00 60070.06

Material consumption - 444.42

other 220780.99 1837954.99

Total 15669036.29 22232680.89

47. Administrative expenses

Item Amount incurred in the current Amount incurred in theperiod previous period

Employee compensation 42311186.52 38432977.77

Depreciation and amortization 5074482.25 4766354.91

Professional fees for intermediary institutions 5491265.54 4538253.56

Rental fee\property management fee \ cleaning fee \ utility

fee 1203779.41 811611.67

Administrative expenses 238824.26 992490.75

Business entertainment 47767.63 81061.23

74ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Amount incurred in the current Amount incurred in theperiod previous period

Communication expense 260449.78 137608.06

Transportation travel expenses 127448.60 136973.90

Travel expenses 51539.75 115146.22

Information service expense 652000.25 162934.17

Other 3332433.36 1187180.21

Total 58791177.35 51362592.45

48. Research and development expenditure

Item Amount incurred in the current period Amount incurred in the previous period

Employee compensation 1970701.92 2980237.50

Equipment and outsourced

service fees 938250.41 -

Depreciation and amortization 178434.56 70296.60

other 10841.35 218285.78

Total 3098228.24 3268819.88

49. Financial expense

Item Amount incurred in the current period Amount incurred in the previous period

Total interest fee 6563081.07 9096305.49

Less: interest capitalization - -

Net interest expense 6563081.07 9096305.49

less: interest income 2571339.77 2984792.54

exchange gain or loss -13353.94 -53888.97

Page and other 504674.59 331390.71

Total 4483061.95 6389014.69

50. Miscellaneous income

Item Amount incurred in Amount incurred in thethe current period previous period

1. Government subsidies included in the other benefits 2258787.80 6524396.47

Including: the government subsidies related to the deferred benefits 1780205.93 1780205.93

Government subsidies directly included in the current profit and loss 478581.87 4744190.54

2. Other items related to daily activities and included in other benefits 50339.52 73439.68

Among them: individual income tax withholding tax handling fees and

job stabilization subsidy 50339.52 73439.68

Total 2309127.32 6597836.15

75ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

51. Return on investment

The sources of the investment income Amount incurred in the Amount incurred in thecurrent period previous period

Long-term equity investment income calculated by the equity

method 30249513.09 24212981.63

Investment income during the holding period of financial

instruments 9429149.49 5770977.63

Among them: classified as financial assets measured at fair

value and whose changes are included in the current profit 9429149.49 5770977.63

and loss

Interest income from large certificates of deposit and time

deposits 7664472.07 5703743.63

Commodity futures contracts and T + D contracts (hedging) -29716862.63 -15331164.53

Closing earnings of commodity futures contracts and T + D

contracts (unspecified hedging) -414329.87 -886055.89

Total 17211942.15 19470482.47

52. Changes in the fair value of the earnings

The sources of income from changes in fair value Amount incurred in the Amount incurred incurrent period the previous period

Trading financial assets -977729.35 -12410718.88

Where: changes in fair value designated as trading financial assets -977729.35 134917.39

Equity tool investment - -12545636.27

Tradable financial liabilities gold lease - 3002660.00

Derivatives of effective hedging -1754539.23 -1159804.74

Among them: income from changes in the fair value of hedging

instruments -3373018.10 139823.00

Changes in the fair value of hedged Items 1618478.87 -1299627.74

other - 120.00

Total -2732268.58 -10567743.62

53. Credit impairment loss (the loss is listed as "-")

Item Amount incurred in the Amount incurred in thecurrent period previous period

Bad debt losses of accounts receivable -1658055.85 339597.30

Bad debt losses of other receivables 420038.08 6719894.33

Impairment losses of other current assets 157396.51 -157396.51

Loss of bad debts on dividends receivable - -1305581.86

Total -1080621.26 5596513.26

54. Impairment loss of assets (fill in with "-")

Item Amount incurred in the current period Amount incurred in the previous period

loss on inventory -84463.30 -

76ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

55. Income from asset disposal (loss is filled as "-")

Item Amount incurred in the Amount incurred in thecurrent period previous period

Disposal benefit of fixed assets (losses filled as "-") 15413.83 -227.20

Other -22500.92 -

Total -7087.09 -227.20

56. Non-operating income

Item Amount incurred in the Amount incurred in Amount included in the currentcurrent period the previous period non-recurring gains and losses

Unable to pay the proceeds - 492565.25

Liquidated damages income 5459720.92 3405795.28 5459720.92

Land Occupancy and Usage

Fees 6946693.18 - 6946693.18

other 624094.27 2592.54 624094.27

Total 13030508.37 3900953.07 13030508.37

57. Non-operating expenditure

Item Amount incurred in the Amount incurred in Amount included in the currentcurrent period the previous period non-recurring gains and losses

Late fine and liquidated

damages expenses 16876.38 1383776.06 16876.38

Contingent compensation

expenditures 9956800.00 - 9956800.00

other 164184.95 812183.78 164184.95

Total 10137861.33 2195959.84 10137861.33

Note: Compensation expenditure related to contingent matters is detailed in Note XII Commitments and

Contingent Matters “2. Contingent Matters” “(1) Contingent liabilities arising from provision of debtguarantees for other entities and their financial effects”

58. Income tax expenses

(1) Income tax expense

Item Amount incurred in the current Amount incurred in the previousperiod period

Current income tax expense calculated in accordance

with the tax laws and related provisions. 39485729.44 35638514.23

Deferred income tax -5922922.94 -11380243.86

Total 33562806.50 24258270.37

(2) Accounting profit and income tax expense adjustment process

Item Amount incurred in the Amount incurred in thecurrent period previous period

total profit 175062513.31 163290002.41

77ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Amount incurred in the Amount incurred in thecurrent period previous period

Income tax expenses at legal/applicable tax rate(total profit*25%) 43765628.33 40822500.60

Impact of the different tax rate applicable to subsidiaries -420550.94 -1053341.75

Impact of income tax adjusted in previous period 1929889.77 -31159.40

Profit or loss of joint ventures and associates calculated by equity

method -7346016.94 -5895086.41

Income without income tax expense (to be listed with "-") -2374966.80 -172644.40

Effect of cost expense and loss nondeductible 4432488.45 2088898.27

Effect of using previously unrecognized deductible losses of previous

years and deductible temporary differences (to be listed with "-") -7982589.86 -13133718.97

Effect of using previously unrecognized deductible losses and

deductible temporary differences 1558924.49 2244876.91

Tax impact of ESD bonus deduction (to be listed with "-") - -612054.48

Income tax expenses 33562806.50 24258270.37

59. Cash flow statement item notes

(1) Other received cash related to operating activities

Item Amount incurred in the current Amount incurred in theperiod previous period

Deposit deposit 75662606.60 33248403.97

interest revenue 1142296.52 1595629.53

Received as government subsidies 518814.78 4822034.27

receipt of payment guarantee 22987350.00

Exchange money and other 46689700.52 14089935.20

Total 124013418.42 76743352.97

(2) Other cash paid relating to operating activities

Item Amount incurred in the current Amount incurred in theperiod previous period

Out-of-pocket expenses 42520229.74 30628305.96

Pay the gold lease deposit futures margin

the bill marginrefund of lease margin etc 81050660.87 35830899.04

Fine liquidated damages 132760.17 1300150.00

Exchange money and other 18754302.64 12048639.24

Total 142457953.42 79807994.24

(3) Cash received related to important investment activities

Item Amount incurred in the Amount incurred in the previouscurrent period period

Principal and interest of structured deposits

financial products CDs and time deposits 929974150.16 820139644.49

78ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(4) Other cash received related to investment activities

Item Amount incurred in the Amount incurred in the previouscurrent period period

Shenzhen SDG Huari AUTOMOBILE Enterprise

Co. Ltd. into the merger merged funds - 5964034.76

(5) Cash paid related to important investment activities

Item Amount incurred in the current Amount incurred in the previousperiod period

Structured deposits financial products

certificates of deposit and time deposits 1311058482.50 985536930.32

(6) Pay other cash related to investment activities

Item Amount incurred in the current period Amount incurred in the previousperiod

Margin of hedging instruments 10561808.00 14659543.80

(7)Payment of other cash related to financing activities

Item Amount incurred in the Amount incurred in thecurrent period previous period

Repayment of lease liabilities 13692202.73 12180403.46

(8) Changes in various liabilities arising from financing activities

Cash changes Non-cash changes

Item Beginning Endingbalances Inward Cash drain Interest

Change

in fair Other balancecash-flow accrued value

Short-term

borrowings 120101444.43 64500000.00 175708233.58 2109133.56 11002344.41

Lease

obligation 85216854.95 - 13166631.84 3722059.19 - 10251077.00 86023359.30

Total 205318299.38 64500000.00 188874865.42 5831192.75 - 10251077.00 97025703.71

60. Supplementary Information on the cash flow statement

(1) Supplementary information of the cash flow statement

Supplementary information Amount incurred in the Amount incurred incurrent period the previous period

1. Reconciliation of net profit to cash flow of operating activities:

Net profit 141499706.81 139031732.04

Add: provision for impairment of assets 84463.30 -

Credit impairment loss 1080621.26 -5596513.26

Depreciation of fixed assets and investment real estate depreciation 55320912.33 41583661.32

Depreciation of right-of-use assets 4483068.69 9474215.37

amortization of intangible assets 1362698.62 560018.46

79ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Supplementary information Amount incurred in the Amount incurred incurrent period the previous period

Long-term deferred amortization of expenses 15196503.80 13059696.03

Loss on disposal of fixed assets intangible assets and other long-term

assets (gains to be listed as "-") 7087.09 227.20

Loss of fixed assets (gains to be listed as as "-") - -

Loss of change in fair value (gains to be listed as "-") 2732268.58 10567743.62

Financial expenses (gains to be listed as "-") 6563081.07 9100270.87

Investment loss (gains to be listed as "-" number) -17211942.15 -19470482.47

Decrease of deferred income tax assets ((increase to be listed with "-") -902936.66 32339878.65

Increase in deferred tax liabilities (decrease to be listed with "-") -5115815.70 -15330211.35

Decrease of inventory (increase to be listed with "-") 67871535.07 45716613.09

Decrease of operating receivables (increase to be listed with "-") 26674386.07 100475881.49

Increase in operating payable items (decrease to be listed with "-") 28108259.70 28776082.79

Others

Net cash flow from operating activities 327753897.88 390288813.85

2. Major investment and financing activities that not related to cash

receipts and payments:

Conversion of debt into capital - -

Current portion of convertible corporate bonds - -

New access right assets - -

3. Net changes in cash and cash equivalents:

Ending balance of the cash 78380580.53 301275968.63

Less: the beginning balance of the cash 301275968.63 160223387.69

Add: the ending balance of the cash equivalents -

Less: the beginning balance of the cash equivalents -

Net increase in cash and cash equivalents -222895388.10 141052580.94

(2) Composition of cash and cash equivalents

Item Ending balance Beginning balance

1. Cash 78380580.53 301275968.63

Including: cash on hand 6016.65 20879.87

Bank deposits ready for payment 45536363.87 241190505.42

Other monetary funds ready for payment 32838200.01 60064583.34

2. Money equivalent

Including: bond investment due within three months

3. Cash and cash equivalent balance 78380580.53 301275968.63

80ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(3) Monetary funds that are not cash and cash equivalents

Item Ending balance Beginning balance Reason for not being in cash andcash equivalents

Note- -security deposit payable 42100334.71 33113263.10 Bill deposit

Futures and options account margin 28748241.60 22848540.40 Margin for the gold futurestrading business is limited

Gold lease deposit and its interest 0.01 20069638.91 The deposit of gold leasingbusiness is limited

Amount of judicial control - 663948.65 Judicial control

Total 70848576.32 76695391.06

61.Foreign currency and monetary items

(1) Foreign currency and monetary items

Item Final foreign currency

The RMB balance is

balance Conversion rate converted at the end of theperiod

Cash at bank and on hand

Including: USD 857.08 7.0288 6024.24

HKD 109623.44 0.90322 99014.08

Others account payable

Including: USD 205381.99 7.0288 1443588.93

Others account payable

Including: HKD 3376679.37 0.90322 3049884.34

VI. R&D EXPENSES

1.R&D expenses

Amount incurred in the current period Amount incurred in previous period

Item

Expenses Capitalization Expenses Capitalization

Employees fee 1970701.92 - 2980237.50 -

Materials and Outsourced

Purchases 938250.41 - - -

Depreciation and amortization 178434.56 - 70296.60 -

Others expenses 10841.35 - 218285.78 -

Total 3098228.24 - 3268819.88 -

VII. INTEREST IN OTHER ENTITIES

1. Interests in subsidiaries

(1) Composition of the Company

81ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Registered Shareholding%

Name capital (ten Registration Business Acquisitionthousand place nature Direct Indirect method

yuan)

Shenzhen Tell Jewelry

Technology Development 3290.00 Shenzhen commerce 5.00 95.00 establish

Co. Ltd.Shenzhen Bao'an District

Shiquan Industry Co.Ltd. 200.00 Shenzhen commerce - 100.00 establish

Shenzhen Tefa Teli Real

Estate Co. Ltd 3115.00 Shenzhen commerce 100.00 - establish

Shenzhen Teli

Chuangying Technology 150.00 Shenzhen commerce 100.00 - establish

Co. Ltd

Shenzhen Xinyongtong

Motor Vehicle Testing 960.78 Shenzhen commerce 51.00 - establish

Equipment Co. Ltd

Shenzhen Tell Shuibei

Jewelry Co. Ltd. 1896.00 Shenzhen commerce 100.00 - establish

Shenzhen Automobile

Industry Sales Company 1111.00 Shenzhen commerce - 100.00 establish

Shenzhen Zhongtian

Industry Co. Ltd. 36622.19 Shenzhen commerce 100.00 - establish

Shenzhen Huari

Automobile Sales and 200.00 Shenzhen commerce 60.00 - establish

Service Co. Ltd.Shenzhen Telibaoku

Supply Chain Technology 5000.00 Shenzhen commerce 100.00 - establish

Co. Ltd.Shenzhen Jewelry

Industry Service Co. 10000.00 Shenzhen commerce 65.00 - establish

LTD

Shanghai Pan Yue

Diamond Co. Ltd 350.00 Shanghai commerce - 100.00 establish

Guorun Gold (Shenzhen)

Co. Ltd. 20000.00 Shenzhen commerce 36.00 3.25 establish

Acquired in

Shenzhen SDG Huari a

AUTOMOBILE four million non-commo

Enterprise Co. Ltd. dollars

Shenzhen commerce 60.00 - n control

business

combination

The basis for the shareholding ratio in Guorun Gold (Shenzhen) Co. Ltd being different from the voting

rights ratio and holding half or less of the voting rights but still controlling the investee:

In June 2022 the Company together with its subsidiary Shenzhen Jewelry Industry Service Co. LTD

and other companies Shenzhen High-tech Investment Group Co.Ltd. Chow Tai Fook Jewelry Cultural

Industry Park (Wuhan) Co. Ltd Chow Tai Seng Jewellery Co.Ltd. Beijing Caishikou Department Store

Co.Ltd. and Shenzhen ZHL Industrial Co.Ltd. jointly invested to establish Guorun Gold (Shenzhen)

Co. Ltd Among them our company contributed 72 million yuan holding a 36% stake; our subsidiary

Shenzhen Jewelry Industry Service Co. LTD contributed 10 million yuan holding a 5% stake; B Co. Ltd.held a 10% stake; and the remaining shareholders held a total of 49% of the shares. Our company and

Shenzhen High-tech Investment Group Co.Ltd. signed a concerted action agreement stipulating that

82ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Shenzhen High-tech Investment Group Co.Ltd. would maintain consistent opinions with our company

when voting in the shareholders' meeting and board of directors of Guorun Gold (Shenzhen) Co. Ltd.Therefore our company and its subsidiary Shenzhen Jewelry Industry Service Co. LTD actually hold

51% of the voting rights in Guorun Gold (Shenzhen) Co. Ltd and can control it.

(2) Material non-wholly owned subsidiaries (unit: ten thousand yuan)

Proportion of Profit or loss

ownership interest allocated to Dividend declared to Balance of

Name held by non-controlling non-controlling non-controlling

non-controlling interests in the shareholders in the interests as at

interests % current period current period 2024.12.31

Guorun Gold (Shenzhen)

Co. Ltd. 60.75 -483.27 - 11549.08

(3) Key financial information about material non-wholly owned subsidiaries:

As at 2025.12.31

Name Current Non-current Total assets Current Non-current Totalassets assets liabilities liabilities liabilities

Guorun Gold

(Shenzhen) Co. Ltd. 29771.57 9631.10 39402.67 20136.69 255.15 20391.84

Continued (1)：

As at 2024.12.31

Name Current Non-current Total assets Current Non-current Totalassets assets liabilities liabilities liabilities

Guorun Gold

(Shenzhen) Co. Ltd. 38961.31 701.57 39662.88 19465.31 391.25 19856.56

Continued (2)：

Year ended 2025.12.31 Year ended 2024.12.31

Name Operating Net Total

Cash flows Total Cash flows

comprehensi from Operatingincome profit operating income Net profit

comprehe from

ve income nsive operatingactivities income activities

Guorun Gold

(Shenzhen) 112293.26 -795.50 -795.50 8314.45 229983.54 15.07 15.07 20407.00

Co. Ltd.

2. Changes in the scope of consolidation due to other causes

Shenzhen Huari Anxin Vehicle Inspection Co. Ltd. has completed the business deregistration

procedures on December 18 2025.

3. Interests in joint ventures or associates

(1) Material joint ventures or associates

83ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Principal Registration Business Shareholding (%) Accounting treatment ofName place of place nature investments in jointbusiness Direct Indirect ventures or associates

* Joint ventures

Shenzhen Teli

Jimeng Investment Shenzhen Shenzhen Rentalservices 50.00 - Equity accountingCo. Ltd.* Associates

Shenzhen Renfu Teli

Automotive Service Shenzhen Shenzhen Car sales 35.00 - Equity accounting

Co. Ltd.

(2) Key financial information of material joint ventures:

Shenzhen Teli Jimeng Investment Co. Ltd.Item

As at 2025.12.31 As at 2024.12.31

Current assets 51397472.16 64308170.72

Including：Cash and cash equivalents 50299349.75 63261490.89

Non-current assets 279903774.39 301569595.17

Total assets 331301246.55 365877765.89

Current liabilities 48653180.34 46770664.57

Non-current liabilities 157993066.85 206675092.80

Total liabilities 206646247.19 253445757.37

Net assets 124654999.36 112432008.52

Including: Non-controlling interests

Equity attributable to shareholders of the Company 124654999.36 112432008.52

Company’s share of net assets 62327499.68 56216004.26

Adjustments

Carrying amount of interests in joint ventures 62327499.68 56216004.26

Fair value of investments in joint ventures which have quoted

market price

Continued:

Shenzhen Teli Jimeng Investment Co. Ltd.Item

Year ended 2025.12.31 Year ended 2024.12.31

Operating income 137742396.17 132430277.65

Finance expenses 5794114.38 9163348.96

Income tax expenses 17869914.75 15182681.66

Net profit 52222990.84 44108769.17

Net profit from discontinued operations

Other comprehensive income

Total comprehensive income 52222990.84 44108769.17

Dividends received from joint ventures in the current period 20000000.00 15000000.00

84ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(3) Key financial information of material associates

Shenzhen Renfu Teli Automotive Service Co. Ltd.Item

As at 2025.12.31 As at 2024.12.31

Current assets 65962048.08 142897387.81

Non-current assets - 23459468.10

Total assets 65962048.08 166356855.91

Current liabilities 15619036.94 122597583.76

Non-current liabilities - 362341.96

Total liabilities 15619036.94 122959925.72

Net assets 50343011.14 43396930.19

Including: Non-controlling interests - -

Equity attributable to shareholders of the Company 50343011.14 43396930.19

Company’s share of net assets 17620053.90 15188925.57

Adjustments

Carrying amount of interests in associates 17620053.90 15188925.57

Fair value of investments in associates which have quoted

market price

Continued:

Shenzhen Renfu Teli Automotive Service Co. Ltd.Item

Year ended 2025.12.31 Year ended 2024.12.31

Operating income 330908023.73 814278410.46

Net profit 6946080.95 3515984.72

Net profit from discontinued operations - -

Other comprehensive income - -

Total comprehensive income 6946080.95 3515984.72

Dividends received from associates in the

current period - -

(4) Summarised financial information of immaterial joint ventures and associates:

Item As at/Year ended 2025.12.31 As at/Year ended 2024.12.31

Joint ventures:

Aggregate carrying amount of investments 14533606.99 13680093.35

Aggregate amount of share of

Net profit 1649890.24 754101.51

Other comprehensive income - -

Total comprehensive income 1649890.24 754101.51

(5) Excess loss from joint ventures or associates

Investee Accumulated Unrecognized loss (or Accumulated

85ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

unrecognized loss in share of net profit) for the unrecognized loss as at

prior periods year 2025.12.31

Associates

Shenzhen Teli Automotive

Service Chain Co. Ltd. 98865.26 - 98865.26

Shenzhen Yongtong Xinda

Testing Equipment Co. Ltd. 1176212.73 - 1176212.73

Total 1275077.99 1275077.99

Ⅷ. GOVERNMENT GRANTS

1. Government grants recognized in deferred income

Type Opening balnce Additions in the cur Decreases in therent period current period Ending balance

Government Grants

related to assets 7837477.60 - 1780205.93 6057271.67

(1)Government grants recognized in deferred income and subsequently measured using the gross

presentation method

Opening Additions in Recognition in Other Ending Presentation itemType balance the current profit and loss changes balance recognized in profitperiod and loss

Government Grants

related to assets：

Subsidy income of

consumption promotion

support projects of

Shenzhen Municipal 2490319.03 - 585957.48 - 1904361.55 Other income

Bureau of Commerce in

2020

Green and innovative

development in the

engineering construction

field of Shenzhen 2184775.16 - 442348.68 - 1742426.48 Other income

Municipal Housing and

Construction Bureau

Futian District old

elevator renovation

working group elevator 1725068.50 - 405898.56 - 1319169.94 Other income

renewal subsidy funds

Luohu District 2021

Industrial Transformation

and Upgrading Special 1385869.69 - 326086.92 - 1059782.77 Other income

Fund — Industry

Service Platform project

Luohu District in

2021Industrial

Transformation and

Upgrading Special Fun 51445.22 - 19914.29 - 31530.93 Other income

— Green building

support subsidy

Total 7837477.60 1780205.93 6057271.67 -

86ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

2. Government grants recognized in proft and loss and subsequently measured using the gross presentation

method

Recognised in Recognised in profit

profit and loss for and loss for the Presentation itemItems the year ended year ended recognized in profit

2025.12.31 2024.12.31 and loss

AEO Advanced Certification Subsidy 300000.00 - Other income

Receipt of maternity allowance from Medical Insurance

Bureau 159759.12 - Other income

Funds for Buyer Support of the 130th Canton Fair 10500.00 Other income

One-time Job Expansion Subsidy disbursement transferred

from Shenzhen Luohu District Public Employment 4000.00 - Other income

Promotion Center in May 2025.Government subsidy under the 2023 Industrial

Development Special Fund ("Encouraging Enterprises to

Scale Up and Strengthen") from the Shenzhen Luohu - 180000.00 Other income

District Industry and Information Technology Bureau

2023 Annual Foreign Trade Excellence Reward Program of

the Commerce Bureau 2430000.00 Other income

Industrial Development Special Fund - High-quality

Development of the Gold and Jewelry Industry -

Encouraging the Construction of Jewelry and Gemstone - 2116400.00 Other income

Trading Platforms

Other 4322.75 17790.54 Other income

Total 478581.87 4744190.54

Ⅸ. RISK MANAGEMENT OF FINANCIAL INSTRUMENTS

The Company's principal financial instruments include monetary funds notes receivable accounts

receivable financing receivablesother receivables non-current assets maturing within one year other

current assets trading financial assets other investments in debt long-term receivables accounts

payable other payables short-term borrowings trading financial liabilities non-current liabilities

maturing within one year and leases Liabilities and long-term payables. Details of the various financial

instruments are disclosed in the relevant notes. The risks associated with these financial instruments

and the risk management policies adopted by the Company to mitigate these risks are described below.The management of the Company manages and monitors these exposures to ensure that the above

risks are contained within limits.

1. Risk management objectives and policies

The main risks arising from the Company's financial instruments are credit risk liquidity risk and market

risk (including exchange rate risk interest rate risk and commodity price risk).The Company's overall risk management plan addresses the unpredictability of the financial markets

and seeks to reduce the potential adverse impact on the Company's financial results.The Company has developed a risk management policy to identify and analyze the risks faced by the

Company set appropriate acceptable levels of risk and design appropriate internal control procedures

to monitor the Company's risk levels. The Company periodically reevaluates these risk management

policies and related internal control systems to adapt to changes in market conditions or the Company's

87ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

operating activities. The internal audit function also periodically and irregularly reviews the

implementation of internal control systems for compliance with risk management policies.The Company diversifies its financial instrument risk through appropriate diversification of its

investments and business portfolio and reduces the risk of concentration in a single industry a specific

region or a specific counter party by developing appropriate risk management policies.

(1) Credit risk

Credit risk refers to the risk that the counter party fails to perform its contractual obligations resulting in

financial losses for the Company.The Company manages credit risks according to portfolio classification. Credit risks mainly arise from

bank depositsnotes receivable notes receivable accounts receivable other receivables long-term

receivables and other debt investments.The Company's bank deposits are mainly deposited in state-owned banks and other large and

medium-sized listed banks which are mainly deposited in financial institutions with good reputations

and high credit ratings. The Company does not expect any significant credit risk in bank deposits. For

notes receivable accounts receivable other receivables and long-term receivables the Company

establishes policies to control credit risk exposure. The Company evaluates the customer's credit

qualification based on the customer's financial condition credit history and other factors such as the

current market conditions and sets the corresponding credit period. The Company will regularly monitor

the credit history of customers and for customers with poor credit history the Company will use written

reminders shorten the credit period or cancel the credit period to ensure that the overall credit risk of

the Company is under control.The debtors of the Company's accounts receivable are artificially distributed among customers in

different industries and regions. The Company conducts credit assessments of the financial position of

accounts receivable on an ongoing basis and purchases credit guarantee insurance where appropriate.The Company's maximum credit exposure is the carrying amount of each financial asset on the balance

sheet. The Company does not provide any other guarantees that may expose the Company to credit

risk.Of the Company's accounts receivable accounts receivable from the top five customers accounted for

51.14% of the Company's total accounts receivable (2024:28.78%); Among the Company's other

receivables other receivables of the top five companies in terms of the amount owed accounted for

65.83% of the Company's total other receivables (2024:48.62%)

(2) Liquidity risk

Liquidity risk refers to the risk that the Company will encounter a shortage of funds in meeting its

obligations to settle in cash or other financial assets.In managing liquidity risk the Company maintains and monitors cash and cash equivalents deemed

adequate by management to meet the Company's operating needs and mitigate the impact of cash flow

fluctuations. The Company's management monitors the use of bank loans and ensures compliance with

the loan agreements. It also secured commitments from major financial institutions to provide sufficient

stand-by funding to meet short-term and long-term funding needs.

88ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The Company raises its working capital through funds generated from its operations and bank and other

borrowings. At the end of the period the Company's unused bank borrowings were RMB889 million (at

the end of the previous year: RMB20 million).The Company will also consider negotiating with suppliers to adopt supplier financing arrangements to

extend payment terms or sell long-overdue accounts receivable to obtain funds in advance so as to

alleviate the Company's cash flow pressure.At the end of the period the financial liabilities and off-balance sheet guarantee items held by the

Company are analyzed according to the maturity period of undiscounted remaining contract cash

flowsas follows (unit: ten thousand yuan)

Ending balance

Project

Within 1 year 1-2 Years 2-3 Years More than 3years Amount to

Financial liabilities: -

Short-term loan 1100.23 - - - 1100.23

Derivative financial assets 270.23 - - - 270.23

Bills payable 18000.00 - - - 18000.00

Accounts payable 1475.25 2092.40 2457.15 4910.53 10935.34

Other payable 4940.38 2488.48 1827.54 4691.97 13948.37

Non-current liabilities due within one year 1348.13 - - - 1348.13

Other current liabilities(Excluding deferred

income) 221.42 - - - 221.42

Lease liability - 1370.55 1386.72 5703.22 8460.49

Long-term payable - - - 392.02 392.02

Total financial liabilities and contingent

liabilities 27355.64 5951.43 5671.41 15697.74 54676.23

At the end of last year the financial liabilities and off-balance sheet guarantee items held by the

Company were analyzed according to the maturity period of discounted remaining contract cash flows

as follows (unit: ten thousand yuan)

Balance at the end of last year

Project

Within 1 year 1-2 Years 2-3 Years More than 3years Amount to

Financial liabilities:

Short-term loan 12010.14 - - - 12010.14

Derivative financial liabilities 4.67 - - - 4.67

Accounts payable 3624.12 3825.94 0.71 5104.80 12555.57

Other payable 4145.11 2375.5 364.18 5746.43 12631.23

Non-current liabilities due within one year 867.49 - - - 867.49

Lease liability - 1129.41 1149.10 6471.98 8750.49

Long-term payable - - - 392.02 392.02

Total financial liabilities and contingent

liabilities 20651.53 7330.85 1513.99 17715.23 47211.61

89ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The maximum guaranteed amount of a guarantee contract entered into does not represent the amount

to be paid. The amounts of financial liabilities disclosed in the above table are undiscounted contractual

cash flows and may therefore differ from the carrying amounts in the balance sheet.

(3) Market risk

Market risk of financial instruments 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 exchange rate risk

and other price risks.Interest rate risk

Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments will

fluctuate due to changes in market interest rates. Interest rate risk can arise from recognized

interest-bearing financial instruments and unrecognized financial instruments (such as certain loan

commitments).The Company's interest rate risk arises primarily from long-term bank borrowings and long-term

interest-bearing liabilities such as bonds payable. Floating interest rate financial liabilities expose the

Company to cash flow interest rate risk and fixed interest rate financial liabilities expose the Company

to fair value interest rate risk. The Company determines the relative proportion of fixed rate and floating

rate contracts based on prevailing market conditions and maintains an appropriate mix of fixed rate and

floating rate instruments through regular review and monitoring.The Company closely monitors the impact of interest rate changes on the Company's interest rate risk.The Company does not currently have an interest rate hedging policy. However management is

responsible for monitoring interest rate risk and will consider hedging significant interest rate risk as

needed. An increase in interest rates will increase the cost of new interest-bearing debt and interest

expense on the Company's outstanding interest-bearing debt bearing floating interest rates and will

have a material adverse impact on the Company's financial results. Management will make timely

adjustments based on the latest market conditions which may be through interest rate swap

arrangements to reduce interest rate risk.For financial instruments held at the balance sheet date that expose the Company to fair value interest

rate risk the effects of net profit and shareholders' equity in the sensitivity analysis above are the effects

of remeasuring these financial instruments at the new interest rate assuming that interest rates change

at the balance sheet date. For floating interest rate non-derivative instruments held at the balance sheet

date that expose the Company to cash flow interest rate risk the impact of net income and

shareholders' equity in the sensitivity analysis above is the impact of such interest rate changes on the

annual estimated interest expense or income. The previous year's analysis was based on the same

assumptions and methodology.Exchange rate risk

Exchange rate risk refers to the risk that the fair value or future cash flows of financial instruments will

fluctuate due to changes in foreign exchange rates. Exchange rate risk can arise from financial

instruments denominated in foreign currencies other than the bookkeeping standard currency.The Company's principal operations are located in the PRC and its principal business is settled in RMB.Therefore the Company considers that the exchange rate risk is not material.

90ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

The Company closely monitors the impact of exchange rate movements on the Company's exchange

rate risks. The Company does not currently take any measures to avoid exchange rate risk. However

management is responsible for monitoring currency risk and will consider hedging significant currency

risk if needed.

2. Capital management

The objective of the Company's capital management policy is to ensure that the Company is able to

continue as a going concern so as to provide returns to shareholders and benefit other stakeholders

while maintaining an optimal capital structure to reduce the cost of capital.In order to maintain or adjust the capital structure the Company may adjust the method of financing

adjust the amount of dividends paid to shareholders return capital to shareholders issue new shares

and other equity instruments or sell assets to reduce debt.The Company monitors its capital structure on the basis of its asset-liability ratio (total liabilities divided

by total assets). At the end of the period the Company's asset-liability ratio was 24.68% (year-end:

26.85%).

3. Hedging

(1)Fair value hedges

The Company's subsidiaries Guorun Gold (Shenzhen) Co. LTD. and Shenzhen Tellus Baoku Supply

Chain Technology Co. LTD. in order to avoid the risk of fair value changes of the gold raw materials

held by them (i.e. the risk of being hedged) analyze the expected purchase transactions of gold raw

materials based on the number of investment gold bars ordered by customers. On the basis of this the

Company use the gold spot deferred settlement contract of Shanghai Gold Exchange the gold futures

contract of Shanghai Futures Exchange the on-market gold options and other hedging tools to avoid

the risk of gold products falling due to the sharp decline in gold prices. Guorun Gold a subsidiary of the

Company has formulated the "Measures for the Management of Hedging Business" which clearly

stipulates the approval authority operation process and risk control of the Company's hedging business.The hedge is a fair value hedge and the accounting period specified for the hedge relationship is

January 1 2025 to December 31 2025.The Company's approval procedures for using its own funds to carry out hedging business comply with

relevant national laws and regulations and the relevant provisions of the Articles of Association. The

gold extended transaction hedging business carried out to avoid gold price fluctuations is conducive to

controlling operational risks and improving the Company's ability to withstand market fluctuations.The book value of the hedged item and related adjustments are as follows:

2025

Accumulated amount adjusted by Balance Change in the fair

Book value of the hedged the fair value of hedged items sheet value of the hedged

Items item (included in the carrying value of item item used as the basishedged items) containing for recognizing the

Assets Liabilities Assets Liabilities hedged ineffective portion ofitems the hedge in 2025

Commodit 48422300.40 - 756141.87 - Inventories -

91ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

y price risk

- Inventory

2024

Accumulated amount Change in the fair

adjusted by the fair value of value of the

Book value of the hedged item hedged items (included in the Balance sheet hedged item used

Items carrying value of hedged item as the basis foritems) containing recognizing the

hedged items ineffective portion

Assets Liabilities Assets Liabilities of the hedge in

2024

Commodity

price risk - 115731218.89 - -874345.74 - Inventories -

Inventory

The carrying value and fair value of the hedging instrument changes as follows:

2025

Book value of the hedging Change in the

instrument fair value of the

hedged item

Hedging Balance sheet used as the

Items instruments item containing basis for

Nominal amount Assets Liabilities hedged items recognizing the

ineffective

portion of the

hedge in 2025

Commodity

price risk - 48422300.40 - 2702318.10 Derivative financial

Inventory assets/liabilities

-

92ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

2024

Book value of the hedging Change in the fair

instrument value of the

Hedging Balance sheet hedged item used

Items instruments item containing as the basis for

Nominal amount Assets Liabilities hedged items recognizing theineffective portion

of the hedge in

2024

Commodity price

risk - Inventory 115731218.89 292078.00 46660.00

Derivative

financial liability -

Explanation: The void part of the hedge mainly comes from the basis risk the risk of supply and

demand changes in the spot or futures market and other uncertainty risks in the spot or futures market.The amount of void hedges recognised in the current and previous years is not material.Ⅹ. FAIR VALUE

The level in which fair value measurement is categorized is determined by the level of the fair value

hierarchy of the lowest level input that is significant to the entire fair value measurement. The levels are

defined as follows:

Level 1 inputs: unadjusted quoted prices in active markets that are observable at the measurement date

for identical assets or liabilities.The financial liabilities designated by the company to be measured at fair value with changes

recognized in the current period's profit and loss are the physical gold leasing business of the company

from banks. Gold exists in an active market (i.e. the Shanghai Gold Exchange) and the Shanghai Gold

Exchange publishes the closing price of gold contract transactions on each trading day. At the end of

the period the company determines the market price based on the closing price announced by the

Shanghai Gold Exchange on the last trading day.The hedged item of our company is the inventory of gold products and the hedging instrument is the

asset/liability formed by the fair value changes of the gold futures contracts and gold spot deferred

delivery contracts held by the company. The company determines the fair value based on the public

quotations of gold spot trading and futures trading on the Shanghai Gold Exchange and Shanghai

Futures Exchange.Level 2 inputs: inputs other than Level 1 inputs that are either directly or indirectly observable for

underlying assets or liabilities.The trading financial assets held by the company are one-year guaranteed floating income bank wealth

management products and their fair value is determined by discounting future cash flows using the

agreed expected rate of return. There is no significant difference between the fair value and book value

of other non-current financial assets held by the company.Level 3 inputs: inputs that are unobservable for underlying assets or liabilities.The equity instrument investment is measured at fair value based on the investment cost as there have

been no significant changes in the operating environment situation or financial condition of the

invested enterprise China Pudong Machinery Industry Co. Ltd.

93ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

1. Items and amounts measured at fair value

As at December 31 2025 the assets and liabilities measured at fair value are listed as follows

according to the above three levels:

Item Level 1 fair value Level 2 fair value Level 3 fair valuemeasurement measurement measurement Total

A.Recurring fair value

measurement - - - -

(1) Financial assets held for

trading - 117410631.65 - 117410631.65

1.Equity instrument investments - - - -

2.Structured deposits and financial

products - 117410631.65 - 117410631.65

(2) Derivative financial assets - - - -

1.Hedging tools - - - -

(3)Other debt investments - 573849427.40 - 573849427.40

1.certificate of deposit - 573849427.40 - 573849427.40

(4)Other equity instrument

investment - - - -

(5)Hedged items 49178442.27 - - 49178442.27

Total assets measured at fair

value on an ongoing basis 49178442.27 691260059.05 740438501.32

(6)Held-for-trading financial

liabilities - - - -

1. Financial liabilities measured at

fair value and changes in which

are recorded in profit or loss for - - - -

the period

a. Gold leasing - - - -

(7).Derivative financial liabilities 2702318.10 - - 2702318.10

1. Hedging tools 2702318.10 - - 2702318.10

Total liabilities measured at fair

value on a recurring basis 2702318.10 - - 2702318.10

During 2025 there were no transfers between different levels of the Company’s assets and liabilities.For financial instruments with active market the Company measures fair value at quoted price in active

market; for financial instrument without active market the Company measures fair value using valuation

techniques. Valuation models used are mainly cash flow discount model and market comparable entity

model. Inputs include non-risk interest rate base rate foreign exchange rate credit spread liquidity

premium lack of liquidity discount etc.

2. Related information of Level 2 fair value measurement

Item Ending fair value Valuation techniques Input values

Derivative: - - -

Derivative financial assets - Discounted cash flow method Expected interest rate

Derivative financial

liabilities - Discounted cash flow method Expected interest rate

3. Quantitative information on significant unobservable inputs used in Level 3 fair value measurements

94ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Fair value Valuation Unobservable RangeAs at 2025.12.31 techniques inputs (weighted average)

Equity instrument investments:

Unlisted equity investments - Net assets N/A N/A

XI. RELATED PARTIES AND RELATED PARTY TRANSACTIONS

1. General Information of the Parent Company

Name of the Registered Nature of the Registered Percentage of equityinterests in the Voting rights inparent address business capital Company the Company

Real estate

Shenzhen SDG development and CNY

Group Co. Ltd. Shenzhen management 6179.41 49.09% 49.09%

domestic business million

The Company’s ultimate controlling party is Shenzhen SASAC.

2. General Information of Subsidiaries

Details of the subsidiaries please refer to Note VII INTERESTS IN OTHER ENTITIES.

3. Joint Ventures and Associates of the Company

Details of significant joint ventures and associates please refer to Note VII INTERESTS IN JOINT

VENTURES OR ASSOCIATES.Details of other joint ventures or associates trading with or with outstanding to the Company during the

reporting period:

Name of Joint Ventures or Associates Relationship with the Company

深圳市特力新永通汽车服务有限公司 Associate

(Shenzhen Telixin Yongtong Automotive Service Co. Ltd)

深圳特力汽车服务连锁有限公司 Associate

(Shenzhen Tellus Automobile Services Chain Co. Ltd.)

深圳市永通信达检测设备有限责任公司 Associate

(Shenzhen Yongtong Xinda Testing Equipment Co. Ltd.)

深圳火炬火花塞工业公司 Associate

(Shenzhen Huoju Spark Plug Industry Company)

深圳先导新材料有限公司 Associate

(Shenzhen Pioneer New Materials Co. Ltd.)

深圳市特力行投资有限公司 Joint venture

(Shenzhen Telixing Investment Co. Ltd.)

4. Other Related Parties of the Company

Name of Related Party Relationship with the Company

深圳市特发小额贷款有限公司 Holding subsidiary of the parent Company

(Shenzhen SDG Microfinance Co. Ltd.)

95ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Name of Related Party Relationship with the Company

深圳市特发城市更新投资有限公司 Holding subsidiary of the parent Company

(Shenzhen Tellus Urban Renewal Investment Co. Ltd.)

深圳市机械设备进出口公司 Holding subsidiary of the parent Company

(Shenzhen Machinery and Equipment Import and Export Co. Ltd.)

香港裕嘉投资有限公司 Holding subsidiary of the parent Company

(Hong Kong Yujia Investment Co. Ltd.)

深圳市特发工程管理有限责任公司 Holding subsidiary of the parent Company

(Shenzhen SDG Engineering Management Co. Ltd.)

深圳市特力阳春房地产公司 Holding subsidiary of the parent Company

(Shenzhen Tellus Yangchun Real Estate Co. Ltd.)

深圳市特发地产有限公司 Holding subsidiary of the parent Company

(Shenzhen SDG Real Estate Co. Ltd.)

深圳龙岗特力房地产公司 Holding subsidiary of the parent Company

(Shenzhen Longgang Tellus Real Estate Co. Ltd.)

深圳市特发特力物业管理有限公司 Holding subsidiary of the parent Company

(Shenzhen SDG Tellus Property Management Co. Ltd.)

深圳市特发黎明光电（集团）有限公司 Holding subsidiary of the parent Company

(Shenzhen Tellus Liming Optoelectronics (Group) Co. Ltd.)

深圳市特发服务股份有限公司 Holding subsidiary of the parent Company

(Shenzhen SDG Service Co. Ltd.)

深圳市特发楼宇科技有限公司 Holding subsidiary of the parent Company

(Shenzhen Tellus Building Technology Co. Ltd.)

深圳特发东部服务有限公司 Holding subsidiary of the parent Company

(Shenzhen Tellus Eastern Service Co. Ltd.)

软通智慧信息技术有限公司 Enterprises controlled by the parent

(iSoftStone Intelligence Information Technology Co. Ltd.) company within 12 months

深圳华丽装修家私企业公司 Associate of the parent company

(Shenzhen Huali Decoration Furniture Enterprise Co. Ltd.)

Entities over which the shareholders of

深圳市智谷金云科技有限公司 material subsidiaries exercise significant

(Shenzhen Zhigu Jinyun Technology Co. Ltd. ) influence

深圳市众恒隆实业有限公司 Minority shareholders of significant

(Shenzhen ZHL Industrial Co. Ltd. ) subsidiaries

北京菜市口百货股份有限公司 Minority shareholders of significant

(Beijing Caishikou Department Store Co.Ltd) subsidiaries

深圳市舜天电动车技术发展有限公司(Shenzhen Shuntian Investment

Electric Vehicle Technology Development Co. Ltd.)

Entities over which the shareholders of

深圳市众明隆投资有限公司 material subsidiaries exercise significant

(Shenzhen Zhongminglong Investment Co. Ltd.) influence

深圳金链通数字科技有限公司 Companies controlled by minority

(Shenzhen Jinliantong Digital Technology Co. Ltd. ) shareholders of significant subsidiaries

深圳市粤鹏金珠宝金行有限公司 Companies controlled by minority

(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. ) shareholders of significant subsidiaries

深圳市粤鹏金电商有限公司 Companies controlled by minority

(Shenzhen Yuepengjin e-commerce Co. Ltd. ) shareholders of significant subsidiaries

国任财产保险股份有限公司 Enterprise controlled by the indirect

(Guoren Property and Casualty Insurance Co. Ltd.) controlling shareholder

96ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

5. Related Party Transactions

(1)Purchases or sales of goods rendering or receiving of services

* Purchases of goods receiving of services:

Affiliated party Related party Current Amount incurred intransaction content amount the previous period

深圳市特发服务股份有限公司 Property management 21849017.09 20270819.23

(Shenzhen SDG Service Co. Ltd.) services

深圳市特发特力物业管理有限公司 Property management

(Shenzhen SDG Tellus Property Management services 4039761.51 1734135.69

Co. Ltd.)

深圳市特发楼宇科技有限公司 Property management 339622.65 203773.59

(Shenzhen Tellus Building Technology Co. Ltd.) services

国任财产保险股份有限公司(Guoren Procurement of

insurance services 245022.72 541600.54Property and Casualty Insurance Co. Ltd.)

深圳市众恒隆实业有限公司(Shenzhen Gold processing

services 60811.78 841272.75Zhonghenglong Industrial Co. Ltd.)

深圳市粤鹏金珠宝金行有限公司 Gold processing

(Shenzhen Yuepengjin Jewelry & Gold Co. services 41590.29 54091.15

Ltd. )

深圳华丽装修家私企业公司(Shenzhen Engineering Repair

Huali Decoration and Furniture Enterprise and Maintenance 10014262.73 11634732.07

Company) Services

深圳市智谷金云科技有限公司 Software Usage Fee 28318.56 25994.42

(Shenzhen Zhigu Jinyun Technology Co. Ltd. )

深圳市特发工程管理有限公司(Shenzhen Supervision Services 361060.15 775830.53

TF Engineering Management Co. Ltd.)

深圳特发东部服务有限公司(Shenzhen Installation Services of

Tellus Eastern Service Co. Ltd.) Monitoring Systems

-117768.00

* Sales of goods and rendering of services:

Related parties Nature of thetransaction(s) 2025 2024

北京菜市口百货股份有限公司 Sales of goods 10579497.89 5942165.99

(Beijing Caishikou Department Store Co.Ltd.)

深圳市粤鹏金珠宝金行有限公司 Property management

expenses 481929.30 357459.71(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. )

深圳火炬火花塞工业公司 Management 328900.00 -

(Shenzhen Huoju Spark Plug Industry Company) esoenses

深圳市特发小额贷款有限公司 Property management 188281.23 161205.25

(Shenzhen SDG Microfinance Co. Ltd.) expenses

深圳市众恒隆实业有限公司 Agency services 126903.27 452001.02

(Shenzhen ZHL Industrial Co.Ltd. )

深圳华丽装修家私企业公司 Property management

(Shenzhen Huali Decoration Furniture Enterprise Co. expenses 15756.97 -

Ltd.)

深圳粤鹏金电商有限公司(Shenzhen Yuepengjin Sales of goods - 83815902.66

97ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

E-commerce Co.Ltd.)

深圳市特力行投资有限公司 Property management

expenses - 283018.87(Shenzhen Telixing Investment Co. Ltd.)

(2)Leases

* The Company as lessor:

Name of lessee Type of assets leased 2025 2024

深圳市粤鹏金珠宝金行有限公司 House leasing 1776970.14 357182.10

(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. )

深圳市特发小额贷款有限公司 House leasing 1098644.46 1101847.98

(Shenzhen SDG Microfinance Co. Ltd.)

深圳市特发特力物业管理有限公司 House leasing 358688.48 163762.85

(Shenzhen SDG Tellus Property Management Co. Ltd.)

深圳市特发服务股份有限公司 House leasing and

others 4332602.02 4022405.39(Shenzhen SDG Service Co. Ltd. )

深圳火炬火花塞工业公司 Safe deposit box 2293.58 2293.58

(Shenzhen Huoju Spark Plug Industry Company) leasing

深圳市仁孚特力汽车服务有限公司 House leasing - 5190476.19

(Shenzhen Renfu Tellus Automobiles Service Co. Ltd.)

深圳市永通信达检测设备有限责任公(Shenzhen House leasing - 8000.00

Yongtong Xinda Inspection Equipment Co. Ltd.)

(3)Key management personnel compensation

The company currently has 12 key management personnel and had 16 key management personnel in

the previous period with their respective compensations presented in the following table.Unit: ten thousand yuan

Items 2025 2024

Key management personnel 500.97 468.03

6. Receivables and Payables with Related Parties

(1) Receivables from related parties

As at 2025.12.31 As at 2024.12.31

Items Related parties

Book value Loss allowance Book value Loss allowance

Accounts 深圳市众恒隆实业有限公司

receivable 92660.26 926.60 - -(Shenzhen ZHL Industrial Co. Ltd. )

Accounts 深圳市特发小额贷款有限公司

receivable 8593.89 85.94 - -(Shenzhen SDG Microfinance Co. Ltd.)

Accounts 深圳火炬火花塞工业公司

receivable (Shenzhen Huoju Spark Plug Industry 1000.00 10.00

Company)深圳华丽装修家私企业公司

Prepayments (Shenzhen Huali Decoration Furniture 133260.81 - - -

Enterprise Co. Ltd.)

Prepayments 国任财产保险股份有限公司(Guoren 133186.80 - 162704.37 -

98ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

As at 2025.12.31 As at 2024.12.31

Items Related parties

Book value Loss allowance Book value Loss allowance

Property and Casualty Insurance Co.Ltd.)

Prepayments 深圳市特发服务股份有限公司 6605.50 - 7200.00 -

(Shenzhen Tellus Services Co. Ltd.)

Other 深圳市众恒隆实业有限公司

receivables 18731980.00 187319.80 633580.65 6335.81(Shenzhen ZHL Industrial Co.Ltd. )

Other 深圳特力汽车服务连锁有限公司

receivables (Shenzhen Tellus Automobile Services 1360390.00 1360390.00 1360390.00 1360390.00

Chain Co. Ltd.)

Other 深圳市特力行投资有限公司

receivables (Shenzhen Tellus Xing Investment Co. 127299.21 1272.99 733103.55 36057.45

Ltd.)

Other 深圳市特发特力物业管理有限公司

receivables (Shenzhen SDG Tellus Property 57472.05 5695.31 18834.77 3641.74

Management Co. Ltd.)

Other 深圳市智谷金云科技有限公司

receivables (Shenzhen Zhigu Jinyun Technology Co. 50000.00 2500.00 50000.00 500.00

Ltd. )

Other 深圳先导新材料有限公司(Shenzhen

receivables - - 660790.09 660790.09Xiandao New Materials Co. Ltd.)深圳市永通信达检测设备有限责任

Other

receivables 公司(Shenzhen Yongtong Xinda 531882.24 531882.24 531882.24 531882.24

Inspection Equipment Co. Ltd.)深圳市特力新永通汽车服务有限公

Other

receivables 司(Shenzhen Tellus Xinyongtong 114776.33 114776.33 114776.33 114776.33

Automobile Service Co. Ltd.)

深圳市特发黎明光电(集团)有限公

Other

receivables 司(Shenzhen Tefa Liming - - 2886.00 2886.00

Photo-Electric(Group)Co.Ltd.)

Long-term 深圳特力汽车服务连锁有限公司

receivables (Shenzhen Tellus Automobile Services 6146228.91 6146228.91 6146228.91 6146228.91

Chain Co. Ltd.)

(2)Payables from related parties

Item Related party As at2025.12.31 As at 2024.12.31

Accounts 深圳市特发服务股份有限公司

payable 4136158.12 3865062.67(Shenzhen SDG Service Co. Ltd.)

Accounts 深圳华丽装修家私企业公司

payable (Shenzhen Huali Decoration Furniture Enterprise Co. 1493996.39 5371011.83

Ltd.)

Accounts 深圳市特发特力物业管理有限公司

payable 272000.00 -(Shenzhen SDG Tellus Property Management Co. Ltd. )

Accounts 深圳特力吉盟投资有限公司

payable （Shenzhen Teli Jimeng Investment Co. Ltd. 200000.00 200000.00）

Accounts 深圳市特发工程管理有限责任公司

payable 108038.46 1365692.04(Shenzhen SDG Engineering Management Co. Ltd. )

Accounts 深圳市机械设备进出口公司

payable (Shenzhen Machinery and Equipment Import and Export 45300.00 45300.00

Co. Ltd. )

99ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Related party As at2025.12.31 As at 2024.12.31

Accounts 深圳市特发服务股份有限公司

payable 4136158.12 3865062.67(Shenzhen SDG Service Co. Ltd.)

Accounts 深圳市智谷金云科技有限公司

payable 12000.00 45652.00(Shenzhen Zhigu Jinyun Technology Co. Ltd. )

Accounts 深圳市众恒隆实业有限公司

payable 316.58 669.57(Shenzhen ZHL Industrial Co. Ltd. )

Accounts 深圳市粤鹏金珠宝金行有限公司

payable - 28000.00(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. )

Advance from 深圳市粤鹏金珠宝金行有限公司

customers 36230.60 -(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. )

Advance from 深圳市特发特力物业管理有限公司

customers 12920.00 1243.34(Shenzhen Tellus-Tellus Property Management Co. Ltd.)深圳市永通信达检测设备有限责任公司

Advance fromcustomers （Shenzhen Yongtong Xinda Testing Equipment Co. 68.00 68.00Ltd.）

Advance from 深圳市特发服务股份有限公司

customers 0.01 -(Shenzhen SDG Service Co. Ltd.)

Advance from 深圳市特发小额贷款有限公司

customers - 42625.39(Shenzhen SDG Microfinance Co. Ltd. )

Other payables 香港裕嘉投资有限公司(Hong Kong Yu jia Investment 2255339.58 2255339.58

Co. Ltd. )深圳市机械设备进出口公司

Other payables (Shenzhen Machinery and Equipment Import and Export 1554196.80 1575452.52

Co. Ltd.)深圳华丽装修家私企业公司

Other payables (Shenzhen Huali Decoration Furniture Enterprise Co. 1086322.83 150929.85

Ltd.)

Other payables 深圳特力阳春公司(Tellus Yangchun Co. Ltd. ) 476217.49 476217.49

Other payables 深圳市粤鹏金珠宝金行有限公司 388102.00 388102.00

(Shenzhen Yuepengjin Jewelry & Gold Co. Ltd. )

Other payables 深圳市特发小额贷款有限公司 237804.66 237804.66

(Shenzhen SDG Microfinance Co. Ltd. )

Other payables 深圳市特发特力物业管理有限公司 151818.00 441842.84

(Shenzhen SDG Engineering Management Co. Ltd. )

Other payables 深圳市特发服务股份有限公司 68026.80 50506.00

(Shenzhen SDG Service Co. Ltd.)

Other payables 深圳市特发城市更新投资有限公司(Shenzhen 28766.05 28766.05

Special Development Urban Renewal Investment Co. Ltd)

Other payables 深圳市特发集团有限公司(Shenzhen SDG Group Co. 3000.00 3000.00

Ltd. )

Other payables 深圳火炬火花塞工业公司 2000.00 143746.10

(Shenzhen Huoju Spark Plug Industry Company)

Other payables 深圳特力汽车服务连锁有限公司 800.00 800.00

(Shenzhen Tellus Automobile Services Chain Co. Ltd.)

Other payables 深圳龙岗特力房地产公司 1095742.50 1095742.50

(Shenzhen Long gang Tellus Real Estate Co. Ltd.)

100ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Item Related party As at2025.12.31 As at 2024.12.31

Accounts 深圳市特发服务股份有限公司

payable 4136158.12 3865062.67(Shenzhen SDG Service Co. Ltd.)

Other payables 深圳市仁孚特力汽车服务有限公司 - 833334.00

(Shenzhen Renfu Tellus Automobiles Service Co. Ltd.)

Other payables 深圳市特发工程管理有限责任公司 - 148302.24

(Shenzhen SDG Engineering Management Co. Ltd. )

Other payables 深圳市众明隆投资有限公司 - 14100.00

(Shenzhen Zhongminglong Investment Co. Ltd.)

深圳市舜天电动车技术发展有限公司(Shenzhen

Other payables Shuntian Electric Vehicle Technology Development Co. 2000.00 2000.00

Ltd.)

XII. COMMITMENTS AND CONTINGENCIES

1. Significant Commitments

As of December 31 2025 the Company had no material capital commitments.

2. Contingencies

(1)Contingent liabilities arising from debt guarantees provided to other entities and their financial impact

The Company’s subsidiary Teli Shuibei Jewelry Co. Ltd. was formerly known as Shenzhen

Automobile Industry and Trade Corporation. It was restructured from an enterprise owned by the whole

people to a limited liability company and renamed in November 2017 and further renamed Shenzhen

Teli Shuibei Jewelry Co. Ltd. in July 2025.In September 2011 Teli Shuibei entered into a State-owned

Property Rights Transfer Contract with Zhu Jinchao pursuant to which the 14.731% equity interest inShenzhen Southern Great Wall Investment Holdings Co. Ltd. (hereinafter referred to as “SouthernGreat Wall”) held by Teli Shuibei was listed and transferred in accordance with the law. On the same

date Teli Shuibei and Southern Great Wall entered into a Debt Assumption and Asset Repurchase

Agreement (hereinafter referred to as the “Repurchase Agreement”) which stipulates that all actual

potential and contingent liabilities and disputes of Southern Great Wall arising from non-capital

contribution assets of Teli Shuibei (including operation financing guarantees etc.) prior to 31

December 2001 shall be borne by Teli Shuibei Jewelry in respect of all economic and legal liabilities.In 1997 Southern Great Wall Company provided a guarantee for the bank loan of China National

Automobile Industry Shenzhen Trading Co. Ltd. with Bank of Communications. Such guaranteed

liability was incurred prior to 31 December 2001.As the principal debtor failed to perform its obligations

the case was enforced by the court and resumed enforcement in 2024 ((2024) Yue 0304 Zhi Hui 1936).Southern Great Wall Company reached a settlement with the applicant executor and paid the relevant

amounts. Nanfang Great Wall Company together with its former shareholders Zhu Jinchao and Yu

Zhanglin has delivered a Letter of Notification and relevant supporting documents. raising the following

claims:Designating a responsible department to re-establish a communication mechanism;Requesting

Teli Shuibei Jewelry to bear the claimed guarantee loss of RMB 10754400 including principal of RMB

9880000 interest of RMB 197600 legal fees of RMB 600000 and execution fees of RMB 76800

101ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

As of December 31 2025 the Company had no pending litigation external guarantees and other

contingencies that should be disclosed.XIII. EVENTS AFTER THE REPORTING PERIOD

Pursuant to the proposal Regarding the 2025 Profit Distribution Plan reviewed and approved at the 18th

formal meeting of the 10th Board of Directors held on April 20 2026 the Company intends to distribute

cash dividends of RMB 1.10 per 10 shares (tax included) to all shareholders based on the total share

capital of 431058320 shares as of December 31 2025 with total cash dividends to be distributed

amounting to RMB 47416415.20.No bonus shares will be issued and no capital reserve will be

converted into share capital for the current year.The profit distribution plan is subject to the deliberation

and approval of the Company’s shareholders’ general meeting.As of April 20 2026 the Company has no other material post-balance sheet events to be disclosed.XIV.OTHER IMPORTANT MATTERS

1. Segment Information

According to the internal organizational structure management requirements and internal reporting

system of our company our business operations are divided into2 reporting segments. These report

segments are determined based on the financial information required by the company's daily internal

management. The management of the group regularly evaluates the operating results of these reporting

segments to determine the allocation of resources and evaluate their performance.The reporting segments of our company include:

(1) Jewelry sales and service wholesale and retail of gold jewelry;

(2) Leasing and service real estate and commercial property leasing;

Segment reporting information is disclosed based on the accounting policies and measurement

standards adopted by each segment when reporting to management. These accounting policies and

measurement bases are consistent with those used in the preparation of financial statements.

（1）Financial information of reportable segments

Current period / end of current Wholesale and

period Leasing and services retail jewelry Offsetting Amount toservices

Operating Revenue 332053853.84 1132159330.29 -2609783.60 1461603400.53

Operating Cost 115617665.42 1083245382.60 13173600.65 1212036648.67

Total Assets 2862056543.60 507589782.51 -719487883.58 2650158442.53

Total Liabilities 447751556.45 230597178.41 -24310138.87 654038595.99

Operating Revenue 297565080.67 2320842052.78 -4728929.08 2613678204.37

Operating Cost 106803428.99 2273354439.85 -3393568.78 2376764300.06

Total Assets 2815496452.17 540229156.29 -761266370.57 2594459237.89

Total Liabilities 513961364.49 258257775.16 -75485873.49 696733266.16

Xv. NOTES TO THE COMPANY’S FINANCIAL STATEMENTS

102ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

1. Accounts receivable

(1)Disclosure by aging

Accounts Receivable Aging Ending number Year-end balance of the previous year

Within 1 year 10660018.72 17614712.56

1 to 2 years 58567.71 2352446.33

Two to three years - 77741.87

More than 3 years 77741.87 484803.08

subtotal 10796328.30 20529703.84

deduct: provision for bad debts 146014.99 815673.02

Amount to 10650313.31 19714030.82

(2)Classified by loss allowance method

Ending number

Class Balance Bad debt provision

Amount of Expected credit ValueAmount Scale (%) money loss rate(%)

Individual provision for bad debts

Portfolio provision for bad debts 10796328.30 100.00 146014.99 1.35 10650313.31

Among them: age combination

portfolio 10551451.13 97.73 146014.99 1.38 10405436.14

Portfolio of Related-Party Balances

within the Consolidated Scope 244877.17 2.27 - - 244877.17

Amount to 10796328.30 100.00 146014.99 1.35 10650313.31

continuous:

Year-end balance of the previous year

Class Balance Bad debt provision

Value

Amount Scale (%) Amount of Expected creditmoney loss rate (%)

Individual provision for bad debts 484803.08 2.36 484803.08 100.00 -

Portfolio provision for bad debts 20044900.76 97.64 330869.94 1.65 19714030.82

Among them: age combination

portfolio 19867856.02 96.78 330869.94 1.67 19536986.08

Portfolio of Related-Party Balances

within the Consolidated Scope 177044.74 0.86 - - 177044.74

Amount to 20529703.84 100.00 815673.02 3.97 19714030.82

Accounts receivable assessed for impairment individually:

Ending Balance

Name Bad debt ExpectedBalance provision credit loss

Basis for provision

rate (%)

Shenzhen Bijia Mountain Club Co. LTD 172000.00 172000.00 100.00 The account is old and is not

103ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Ending Balance

Name

Balance Bad debt

Expected

provision credit loss

Basis for provision

rate (%)

expected to be recovered

Gong Yanqing 97806.64 97806.64 100.00 The account is old and is notexpected to be recovered

Guangzhou Tianhe Lemins Computer

Center 86940.00 86940.00 100.00

The account is old and is not

expected to be recovered

other 128056.44 128056.44 100.00 The account is old and is notexpected to be recovered

Amount to 484803.08 484803.08 100 .00

Credit account receivables prepared by the combination of credit risk characteristics:

Accounts receivable collectively assessed for general bad debt provision based on aging analysis:

Ending number Year-end balance of the previous year

Aging

Amount Bad debt

Expected

credit loss Amount of money Bad debt

Expected

provision provision credit lossrate (%) rate (%)

Within 1 year 10415141.55 104215.66 1.00 17437667.82 174376.68 1.00

1 to 2 years 58567.71 2928.39 5.00 2352446.33 117622.32 5.00

Two to three years - - - 77741.87 38870.94 50.00

More than 3 years 77741.87 38870.94 50.00 - - -

Amount to 10551451.13 146014.99 56.00 19867856.02 330869.94 56.00

(3)Addition recoveries or reversals of provision for the current period

Item Bad debt provision amount

Beginning balances 815673.02

Accrual for the period -

Current period recoveries or reversals 184854.95

Write-offs 484803.08

Ending balance 146014.99

(4)Accounts receivable written off in the current period

Item Amount written off

Accounts receivable written off 484803.08

(5) Details of the top 5 debtors with largest balances

Accounts receivable The proportion of Ending balance of bad

Name of organization the total balance of debt provision for

Ending balance accounts

receivable accounts receivable

Zhongbao Jinyuan (Shenzhen) Industrial

Development Co. LTD 1389236.36 12.87 13892.36

104ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Accounts receivable The proportion of

Name of organization the total balance of

Ending balance of bad

accounts debt provision forEnding balance

receivable accounts receivable

Shenzhen Jinyu Jewelry Co. Ltd. 1003030.88 9.29 10030.31

Zhou Shengsheng (China) Commercial Co. LTD 991143.46 9.18 9911.43

Shenzhen Qidu Yinjiang Shijia Industrial Co. Ltd. 625595.33 5.79 6255.95

Shenzhen Baijue Industrial Development Co.Ltd. 623891.20 5.78 6238.91

Amount to 4632897.23 42.91 46328.96

2. Other receivables

Item Ending Balance Year-end balance of the previousyear

interest in black - -

dividends receivable - -

Other receivables 3711404.11 2839370.67

Amount to 3711404.11 2839370.67

(1) Dividends receivable

Investee Ending balance Year-end balance of the previousyear

China Pudong Development Machinery Industry

Co. LTD 1305581.86 1305581.86

deduct: provision for bad debts 1305581.86 1305581.86

Amount to - -

(2) Other receivables

* Other receivables categorized by ages

Aging Ending number Year-end balance of the previous year

Within 1 year 1980198.21 404467.63

1 to 2 years 279081.91 2557254.64

Two to three years 1837736.29 1091.61

More than 3 years 7201884.00 12561229.35

Subtotal 11298900.41 15524043.23

deduct: bad debt provision 7587496.30 12684672.56

Amount to 3711404.11 2839370.67

* Other receivables categorized by nature

Nature of receivables Ending amount The amount at the end of the previousyear

Temporary advance payment receivable 8125713.98 13967525.96

Deposit and deposit 1610786.54 1556456.36

Related transactions within the consolidation 1562399.89 61.00

105ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Nature of receivables Ending amount The amount at the end of the previousyear

scope

Subtotal 11298900.41 15524043.32

Less: provision for bad debts 7587496.30 12684672.56

Total 3711404.11 2839370.67

* Other receivables categorized by methods of provision for bad debts

Loss allowance in the first stage at the end of the period

Expected credit loss

Type Book value rate over the next 12 Loss allowance Carrying amount

months (%)

Loss allowance on an individual basis

Loss allowance by group 4146777.43 10.50 435373.32 3711404.11

Ageing group 973591.00 13.17 128263.70 845327.30

Deposits and security deposits group 1610786.54 19.07 307109.62 1303676.92

Intercompany accounts within

consolidation scope 4146777.43 10.50 435373.32 3711404.11

At the end of the period the Company did not have any dividends receivable or other receivables in the

second stage.Loss allowance in the third stage at the end of the period.The expected credit

Type Balance loss rate for the whole Bad debt Value

duration period (%) provision

Loss allowance on an individual

basis 7152122.98 100.00 7152122.98 -

Loss allowance by group - - - -

Ageing group - - - -

Deposits and security deposits

group - - - -

Total 7152122.98 100.00 7152122.98 -

Loss allowance in the first stage at the end of last year.Expected credit loss

Type Book value rate over the next 12 Loss allowance Carrying amount

months (%)

Loss allowance on an individual

basis - - - -

Loss allowance by group 3012518.40 5.75 173147.73 2839370.67

Ageing group 1456062.04 4.35 63267.36 1392794.68

Deposits and security deposits

group 1556456.36 7.06 109880.37 1446575.99

Total 3012518.40 5.75 173147.73 2839370.67

106ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

At the end of the previous year the Company did not have any outstanding accrued interest dividends

receivable or other receivables in the second stage.Loss allowance in the third stage at the end of last year.Type Book value Lifetime expectedcredit loss rate (%) Loss allowance Carrying amount

Loss allowance on an

individual basis 12511524.83 100.00 12511524.83 -

Loss allowance by

group - - - -

Ageing group - - - -

Deposits and security

deposits group - - - -

Total 12511524.83 100.00 12511524.83 -

* The provision for bad debts accrued recovered or reversed in the current period

First stage Second stage Third stage

Expected credit Lifetime expected Lifetime expectedLoss allowance

losses over the credit losses (no credit losses (credit

Total

next 12 months credit impairment impairment hasoccurred) occurred)

Balance as at January 1 2025 173147.73 - 12511524.83 12684672.56

Balance as at January 1 2025 in

the current period - - - -

- Transfer to the second stage - - - -

- Transfer to the third stage - - -

- Transfer out to the second stage - - - -

- Transfer out to the first stage - - - -

Addition 262225.59 - -17899.51 244326.08

Reversals - - - -

Charge-offs - - 5306106.09 5306106.09

Write-offs 35396.25 35396.25

Balance as at December 31 2025 435373.32 - 7152122.98 7587496.30

* Other receivables written off in the current period

Item Amount written off

Other receivables written off 5306106.09

Material other receivables written off

Nature of Whether

Name of the entity other Amount Reason for Written off p generated by

receivables written off written off rocedures related partytransactions

深圳市金贝丽电器有限公 Intercompany 2706983.51 The Company Approved by No

107ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Nature of Whether

Name of the entity other Amount Reason for Written off p generated by

receivables written off written off rocedures related partytransactions

司 transactions has been the Board of

Shenzhen Jinbeili Electric revoked Directors

Appliances Co. Ltd.深圳市特发华通包装实业

Shenzhen Special Intercompany The Company Approved by有限公司

transactions 1212373.79 has been the Board of NoDevelopment Huatong revoked. Directors

Packaging Industrial Co. Ltd.深圳先导新材料有限公司 Intercompany The Company Approved by

Shenzhen Pioneer New transactions 660790.09 has been the Board of No

Materials Co. Ltd. revoked. Directors

Total 4580147.39

* Top five other receivables by debtor based on closing balance

Proportion to the

Debtors Nature of Book balance Ages total balance of Provision forreceivables other receivables bad debts

(%)

深圳中浩(集团)股份有限公司 Intercompany 5000000.00 More than 3 44.25 5000000.00

Shenzhen Sinohao(group) Co. Ltd. transactions years

深圳石化集团有限公司 Shenzhen Intercompany 1927833.34 More than 3 17.06 1927833.34

Petrochemical Group Co. Ltd. transactions years深圳市金洲精工科技股份有限

公 司 Shenzhen Jinzhou Precision Deposit 1515467.96 2 to 3 years 13.41 303093.59

Technology Co. Ltd.深圳市特力宝库供应链科技有 1 to 2

限公司 Shenzhen Teli Baoku Supply Intercompanytransactions 745497.20 yearsWithin 6.60 -

Chain Technology Co. Ltd. 1 year

中国建筑一局（集团）有限公司 2 to 3

China Construction First Bureau others 583978.93 years1 to 2 5.17 74998.00

(Group) Co. Ltd. years

Amount to 9772777.43 86.49 7305924.93

3. Long-term equity investment

Closing balance Opening balance

Item

Book balance Provision for Carrying Provision forimpairment amount Book balance impairment Carrying amount

Investment in subsidiaries 713610774.41 713610774.41 715566774.41 1956000.00 713610774.41

Investments in associates 76855847.07 76855847.07 69902907.63 - 69902907.63

Investments in joint

ventures 20845053.90 3225000.00 17620053.90 24976087.89 9787162.32 15188925.57

Total 811311675.38 3225000.00 808086675.38 810445769.93 11743162.32 798702607.61

108ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(1) Investment in subsidiaries

Impairment Changes in the current period Impairment

Investees Opening balance reservebeginning Additional Reduce Provision for Closing balance reserve ending

balance investment investment impairment

Other balance

深圳市特发特力房地产有限公司31152888.87-----31152888.87-

Shenzhen Tefateli Real Estate Co. Ltd.深圳市特力创盈科技有限公司526308.52-----526308.52-

Shenzhen Tellus Innovation Technology Co. Ltd.深圳市特力珠宝科技发展有限公司

Shenzhen Tell Jewelry Technology Development Co. 2883644.26 - - - - - 2883644.26 -

Ltd.深圳市中天实业有限公司369680522.90-----369680522.90-

Shenzhen Zhongtian Industry Co. Ltd.深圳市特力水贝珠宝有限公司86251071.57-----86251071.57-

Shenzhen Tell Shuibei Jewelry Co. Ltd.深圳特发华日汽车企业有限公司61908926.77-----61908926.77-

Shenzhen Tefa Huari Automobile Enterprise Co. Ltd.深圳市华日丰田汽车销售服务有限公司1807411.52-----1807411.52-

Shenzhen Huari Toyota Sales Service Co. Ltd.深圳市新永通机动车检测设备有限公司

Shenzhen Xinyongtong Motor Vehicle Testing 4900000.00 - - - - - 4900000.00 -

Equipment Co. Ltd.深圳市特力宝库供应链科技有限公司

Shenzhen Telibaoku Supply Chain Technology Co. 50000000.00 - - - - - 50000000.00 -

Ltd.深圳汉力高技术陶瓷有限公司 Shenzhen Hanli 1956000.00 1956000.00 - - - -1956000.00 - -

High Tech Ceramics Co. Ltd.深圳珠宝产业服务有限公司 Shenzhen Jewelry 32500000.00 - - - - - 32500000.00 -

Industry Service Co. Ltd.国润黄金(深圳)有限公司72000000.00-----72000000.00-

Guorun Gold (Shenzhen) Co. Ltd.Total 715566774.41 1956000.00 - - - -1956000.00 713610774.41 -

109ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(2)Investment in joint venture and cooperative enterprises

Current period changes

Impairment

Opening Impairment Additional/

Investment gains Declaration of

Invitees reserve new Reduce and losses

Other Other cash Provision Closing reserve

balance

beginning investmen investment recognized

comprehensiv changes dividends or for Other balance ending

balance t under the equity

e income balance

method adjustments

in equity profits impairment

* Joint ventures深圳特力吉盟投资有限公司

(Shenzhen Tellus 56216004.26 - - - 26111495.42 - - 20000000.00 - 62327499.68

Jimeng Investment

Co. Ltd.)深圳市特力行投资有限公司

(Shenzhen Tellus 13686903.37 - - - 841444.02 - - - - 14528347.39

Xing Investment Co.Ltd.)(Note1)

Subtotal 69902907.63 - - - 26952939.44 - - 20000000.00 - 76855847.07

* Associates深圳市仁孚特力汽车服务有限公

司(Shenzhen Renfu 15188925.57 - 2431128.33 17620053.90

Tellus Automobiles

Service Co. Ltd.)湖南昌阳实业股

份有限公司(Hunan

Changyang 1810540.70 1810540.70 1810540.70 - -

Industrial Co.Ltd.)(Note3)深圳捷成电子有

限公司(Shenzhen 3225000.00 3225000.00 - - - - - - - - 3225000.00 3225000.00

Jiecheng Electronic

Co. Ltd.)(Note3)

110ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

Current period changes

Impairment Additional/ Investment gains Other Declaration of

Impairment

Invitees Opening reserve new Reduce and losses comprehensiv Other cash Provision

Closing reserve

balance

beginning investmen investment recognized e income changes dividends or for Other

balance ending

balance t under the equity

balance

method adjustments

in equity profits impairment深圳先导新材料有限公司

(Shenzhen Xiandao 4751621.62 4751621.62 - - - - - - - - 4751621.62 4751621.62

New Materials Co.Ltd.)(Note3)深圳特力汽车服务连锁有限公司

(Shenzhen Tellus - - - - - - - - - - - -

Automobile Services

Chain Co.Ltd.)(Note2)

Subtotal 23745493.23 9787162.32 - - 1230594.66 - - - - - 24976087.89 9787162.32

Total 86298649.89 9787162.32 - - 23580345.63 - - 15000000.00 - - 94878995.52 9787162.32

111ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

4. Operating income and operating cost

Amount in the current period Amount in the previous period

Items

Revenue Cost Revenue Cost

Primary operations 117402423.15 53554271.59 118323197.59 51537706.69

Other operations - - - -

Total 117402423.15 53554271.59 118323197.59 51537706.69

5. Investment income

Items Amount in the current Amount in theperiod previous period

Investment income from long-term equity investments under equity method 133425000.00 71225000.00

Investment income from long-term equity investments under cost method 29384067.77 23580345.63

Investment income from holding tradable financial assets 1882201.18 5651479.29

Gain from remeasurement of remaining equity to fair value after the loss of

control 8576431.86 3291166.67

Total 173267700.81 103747991.59

XVI. Supplementary information

1. Statement of current non-recurring gains and losses

Items 2025 Note

Gains on disposal of non-current assets including written-off of provision for

impairment -7087.09 -

Government grant included in profit or loss (excluding those closely related to

operating activities or regular government grants) 2258991.39 -

Except for effective hedging business conducted in the ordinary course of

business of the Company gain or loss arising from the change in fair value of

financial assets held for trading and financial liabilities held for trading as well as 412414.59 -

investment gains from disposal of financial assets held for trading financial

liabilities held for trading and financial assets available for sale

Reversal of provision for impairment of receivables individually tested for

impairment 1039272.04 -

Other gain or loss items within the definition of extraordinary gain or loss Total

extraordinary gains or losses 2892647.04 -

Total extraordinary gains or losses 6596237.97 -

Less: Effect of income tax of extraordinary gains or losses 1644348.45 -

Net extraordinary gains or losses 4951889.52 -

Less: Net effect of extraordinary gains or losses attributable to minority interest

(after tax) 489972.15 -

Extraordinary gains or losses attributable to ordinary shareholders of the

Company 4461917.37 -

(1)According to the "Interpretative Announcement No. 1 on Non-Recurring Profit and Loss (Revised in 2023)"

the tax withholding service fee refunds by our company and its subsidiaries are classified as other income

related to daily activities and are not of a special or incidental nature thus they are defined as recurring

gains and losses.

112ShenZhen Tellus Holding Co. Ltd.

Notes to the Financial Statements

For the year ended 31 December 2025(All amounts in RMB unless otherwise stated)

(2)Due to the price fluctuation risks associated with gold the effective hedging of gold futures by the

Company's subsidiaries Guorun Gold andShenzhen Tellus Baoku Supply Chain Technology Co. Ltd. is a

means of mitigating these risks and is considered a normal business operation. Therefore based on the

nature and characteristics of the Company's normal operations the Company classifies the effective hedging

of gold futures as well as the fair value changes in financial assets and liabilities held and the gains or

losses from disposal of financial assets and liabilities as ordinary income items in accordance with the

"Interpretative Announcement No. 1 on Non-Recurring Profit and Loss (Revised in 2023)" for non-financial

enterprises engaged in normal business operations disclosed in the public issuance of securities by

companies.

2.Return on net assets and earnings per share

Earnings per share

Profit for the reporting period Weighted averagereturn on equity Basic Diluted

(RMB per share) (RMB per share)

Net profit attributable to ordinary shareholders

of the company 8.06% 0.33 -

Net profit attributable to ordinary shareholders

of the company after deducting non-recurring 7.81% 0.32 -

items

Name of the Company:Shenzhen Tellus Holding Co. Ltd.April 20 2026

113