Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd.Shenzhen Tellus Holding Co. Ltd.2024 Annual Report March 2025 1Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 2024 Annual Report Section I Important Notice Contents and Interpretations The Board of Directors and Board of Supervisors as well as directors supervisors and senior executives of the Company guarantee that the present annual report is true accurate and complete without false records misleading statements or major omissions and undertake the joint and several legal liabilities arising therefrom.Fu Chunlong head of the Company Huang Tianyang the person in charge of accounting and Huang Tianyang the person in charge of the accounting firm (accountant in charge) declare to guarantee the truthfulness accuracy and completeness of the financial reports in this annual report.All directors have attended the meeting of the Board of Directors to review this report.The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.The forward-looking statements such as plans for the future and development strategies involved in this annual report do not constitute a substantial commitment of the Company to investors. Investors and stakeholders shall be aware of the risks therein and understand the differences among plans forecasts and commitments. Investors shall pay attention to investment risks.The Company's profit distribution plan passed by the Board of Directors is as follows: Based on a total of 431058320 shares a cash dividend of RMB 1 (including taxes) per 10 shares will be distributed to all shareholders with no bonus shares issued (including taxes) and no capitalization of reserves for an increase in capital stock. 2Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Table of Contents Section I Important Notice Contents and Interpreta....2 Section II Company Profile and Major Financial Ind... 6 Section III Management Discussion and Analysis ......10 Section IV Corporate Governance .................... 35 Section V Environmental and Social Responsibility .. 54 Section VI Important Matters ....................... 55 Section VII Changes in Shares and Shareholders ..... 68 Section VIII Preferred Shares ...................... 75 Section IX Bonds ................................... 76 Section X Financial Reports .........................77 3Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. List of Documents for Future Reference (I) Financial statements signed and sealed by the head of the Company the person in charge of accounting and the person in charge of the accounting firm (accountant in charge).(II) The original copy of the Auditor's Report sealed by the accounting firm and sealed and signed by certified public accountants.(III) Originals of all company documents and announcements that have been publicly disclosed during the reporting period. 4Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Interpretations Term Refers to Interpretation CSRC Refers to China Securities Regulatory Commission SZSE Refers to Shenzhen Stock Exchange Shenzhen Branch of China Securities Depository and Clearing CSDC Shenzhen Branch Refers to Corporation Limited Company the Company and Tellus Refers to Shenzhen Tellus Holding Co. Ltd.Holding Reporting period the reporting period and Refers to 2024 the year State-owned Assets Supervision and Management Commission Shenzhen SASAC Refers to of Shenzhen Municipal People's Government SDG Group and controlling shareholder Refers to Shenzhen Special Economic Zone Development Group Co. Ltd.SIHC Refers to Shenzhen Investment Holdings Co. Ltd.Shenzhen Jewelry SJIS Refers to Shenzhen Jewelry Industry Service Co. Ltd.Guorun Guorun Gold Refers to Guorun Gold Shenzhen Co. Ltd.Tellus Treasury Refers to Shenzhen Tellus Treasury Supply Chain Tech Co. Ltd.Shanghai Fanyue Refers to Shanghai Fanyue Diamond Co. Ltd.Zhongtian Company Refers to Shenzhen Zhongtian Industry Co. Ltd.Automobile Industry and Trade Company Refers to Shenzhen Automobile Industry and Trade Co. Ltd.SDG Huari Refers to Shenzhen SDG Huari Automobile Enterprise Co. Ltd.Huari Company Refers to Shenzhen Huari Automobile Sales and Service Co. Ltd.Tellus Jewelry Building Jewelry Building Refers to Tellus Shuibei Jewelry Building Tellus Gold and Diamond Building Gold Refers to Tellus Gold and Diamond Trading Building and Diamond Building 5Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section II Company Profile and Major Financial Indicators I. Company Information Stock abbreviation Tellus A Tellus B Stock code 000025 200025 Stock abbreviation before change (if any) N/A Stock exchange on which the shares are listed Shenzhen Stock Exchange Chinese name of the Company Shenzhen Tellus Holding Co. Ltd.Chinese abbreviation Tellus A English name of the Company (if any) Shenzhen Tellus Holding Co. Ltd.English abbreviation (if any) N/A Legal representative of the Company Fu Chunlong Registered address 3F Tellus Building No. 56 2nd Shuibei Road Luohu District Shenzhen Postal code of the registered address 518020 Historical changes of the Company's registered None address 3F and 4F Tellus Building No. 56 2nd Shuibei Road Luohu District Office address Shenzhen Postal code of the office address 518020 Website of the Company www.tellus.cn E-mail ir@tellus.cn II. Contact Person and Contact Information Secretary of the Board of Directors Securities affairs representative Name Qi Peng Liu Menglei 3F Tellus Building No. 56 2nd Shuibei Road Luohu 3F Tellus Building No. 56 2nd Shuibei Road Luohu Address District Shenzhen District Shenzhen Tel. (0755)83989390 (0755)88394183 Fax (0755)83989386 (0755)83989386 E-mail ir@tellus.cn liuml@tellus.cn III. Information Disclosure and Place for Preparation Website of the stock exchange for the Company to disclose the Shenzhen Stock Exchange (www.szse.cn) annual report Names and websites of the media outlets for the Company to Securities Times and CNINFO (www.cninfo.com.cn) disclose the annual report Location for keeping annual reports of the Company Secretariat Office of the Board of Directors of the Company IV. Changes of Registration Unified social credit code 91440300192192210U Change of main business With the strategic transformation and upgrading of the Company and the dissolution of Huari 6Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. after listing (if any) Company starting from 2023 automobile sales testing maintenance and spare parts sales are no longer the Company's main business.The main business of the Company during the reporting period included jewelry third-party services commercial complex operations and property leasing business. 1. On March 31 1997 the Company held a total of 220.2816 million shares in capital stock and the former Shenzhen Investment Management Co. Ltd. the sole non-tradable shareholder of the Company transferred 159.588 million state shares held by it to SDG Group. The shares held by SDG Group accounted for 72.45% of the total capital stock and these shares were state shares. 2. As the controlling shareholder of the Company SDG Group later underwent an equity division reform the Company's non-public offering of A-shares and a reduction in holding some of the Company's tradable shares without trading moratorium. By the end of the reporting period SDG Group held a total of 211591621 shares of the Company accounting for 49.09% of the Company's Previous changes of total capital stock. Thus it remains the controlling shareholder of the Company.controlling shareholders 3. On December 28 2022 Shenzhen SASAC signed the Voting Rights Entrustment Agreement with (if any) its wholly-owned subsidiary SIHC. Through this agreement Shenzhen SASAC entrusted its 38.97% voting rights in SDG Group to the wholly-owned subsidiary SIHC making SIHC the indirect controlling shareholder of the Company. Thus the Company's controlling shareholder and actual controller have not changed. 4. In 2024 Shenzhen SASAC transferred its 39.6875% equity in SDG Group to SIHC at no cost. This equity transfer does not change the Company's controlling shareholder or actual controller. SDG Group remains the Company's controlling shareholder SIHC is the Company's indirect controlling shareholder and Shenzhen SASAC remains the Company's actual controller.V. Other Related Information Accounting firm engaged by the Company Name of accounting firm Grant Thornton Certified Public Accountants (Special General Partnership) Office address of the accounting firm 5F of Scitech Place No. 22 Jianguomenwai Street Chaoyang District Beijing Names of signing accountants Wu Liang Xiao Na Sponsor institution engaged by the Company for continuous supervision during the reporting period □ Applicable□ Not applicable Financial consultant engaged by the Company for continuous supervision during the reporting period □ Applicable□ Not applicable VI. Major Accounting Data and Financial Indicators Whether the Company needs to retrospectively adjust or restate the accounting data for the previous years □Yes□ No Change over the 202420232022 previous year Operating revenue (RMB) 2613678204.37 1846738841.89 41.53% 837656274.51 Net profit attributable to shareholders of the 136629870.80118255140.8415.54%83496135.61 listed company (RMB) Net profit attributable to shareholders of the listed company after deducting non-recurring 126470887.40 90386717.21 39.92% 63268802.52 gains and losses (RMB) Net cash flows from operating activities 390288813.85-60140006.46748.97%-51967764.29 (RMB) Basic earnings per share (RMB/share) 0.3170 0.2743 15.57% 0.1937 7Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Diluted earnings per share (RMB/share) 0.3170 0.2743 15.57% 0.1937 Weighted average return on net assets 8.21% 7.59% 0.62% 5.69% Change over the end End of 2024 End of 2023 End of 2022 of the previous year Total assets (RMB) 2594459237.89 2403851684.45 7.93% 2232028554.57 Net assets attributable to shareholders of the 1726884629.561603905054.937.67%1505638863.31 listed company (RMB) The lower of the Company's net profit before and after deducting non-recurring gains and losses in the last three accounting years is negative and the auditor’s report of the last year shows that there is uncertainty about the Company's going concern.□Yes□ No The lower of net profit before and after deducting non-recurring gains and losses is negative.□Yes□ No VII. Discrepancy of Accounting Data under the Accounting Standard both at Home and Abroad 1. Discrepancy in net profit and net assets in the financial reports disclosed simultaneously according to International Accounting Standards and Chinese Accounting Standards □ Applicable□ Not applicable There was no discrepancy in net profit and net assets between the financial reports disclosed by the Company following International Accounting Standards and Chinese Accounting Standards in the reporting period. 2. Discrepancy in net profit and net assets in the financial reports disclosed simultaneously according to foreign accounting standards and Chinese Accounting Standards □ Applicable□ Not applicable There was no discrepancy in net profit and net assets between the financial reports disclosed by the Company following foreign accounting standards and Chinese Accounting Standards in the reporting period.VIII. Quarterly Major Financial Indicators Unit: RMB Q1 Q2 Q3 Q4 Operating revenue 758317502.50 821706246.35 487357584.91 546296870.61 Net profit attributable to shareholders of the listed 35247571.8241414907.8731421768.7228545622.39 company Net profit attributable to shareholders of the listed company after deducting non-recurring gains and 32505801.08 37948985.23 28950798.21 27065302.88 losses Net cash flows from operating activities -23101927.41 130411416.33 -66021941.86 349001266.79 Is there any great discrepancy between the above indicators or their sum and relevant indicators disclosed in the quarterly or semi- annual report □Yes□ No 8Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. IX. Non-recurring Gain or Loss Items and Amounts □Applicable □ Not applicable Unit: RMB Item Amount in 2024 Amount in 2023 Amount in 2022 Notes Gains and losses on the disposal of non-current assets (including the portion offset for assets impairment -227.20 69475478.10 8826176.39 provision made) Government subsidies included in the current gains and losses (excluding those that are closely related to the Company's normal business operations in line with 6524396.476476027.996575043.88 national policies and regulations and granted in accordance with defined criteria with a continuous influence on the Company's gains and losses) Gains or losses from changes in the fair value of financial assets and financial liabilities held by the non-financial company as well as gains or losses from the disposal of -10293994.77-9882368.0610762831.81 the financial assets and financial liabilities except for effective hedging related to normal operations of the Company Reserves of impairment provision for account receivables 6856854.34150000.00 individually tested for impairment Other non-operating revenues and expenditures apart from 1704993.232089529.203718192.18 the aforesaid items Other gains or losses conforming to the definition of non- -36363757.7749829.40 recurring gains or losses Less: Effect on income tax -9511450.05 13674541.65 6628391.02 Effect on minority shareholders' equity (after tax) 4144488.72 -9598055.82 3076349.55 Total 10158983.40 27868423.63 20227333.09 -- Specific conditions of other gains or losses conforming to the definition of non-recurring gains or losses: □ Applicable□ Not applicable The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses ? Applicable□ Not applicable Due to the price fluctuation risk related to gold effective hedging of gold futures is a means for Guorun Gold and Tellus Treasury subsidiaries of the Company to avoid relevant risks.This activity falls under normal proprietary business operations. Therefore based on the nature and characteristics of its normal business operations the Company has classified the following Effective -16490969.27 items listed in the Explanatory Announcement on Information Disclosure by Companieshedging Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) as recurring profit and loss items: effective hedging related to the normal operations of non- financial enterprises; gains and losses from changes in the fair value of financial assets and financial liabilities held; and gains and losses from the disposal of financial assets and financial liabilities.Refund of handling According to the Explanatory Announcement on Information Disclosure by Companies charges Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) for 73439.68 the refund of handling fees withheld for individual income tax received by the Company and individual its subsidiaries is categorized as income related to routine activities. As it is neither of a special income nature nor incidental it is classified as a recurring profit or loss item.tax 9Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section III Management Discussion and Analysis I. Industry Development during the Reporting Period The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.(I) Gold and jewelry industry 1. Macro-environment The development of the gold and jewelry industry is closely related to the global geopolitical pattern and economic development trend. In 2024 escalating geopolitical tensions rising trade protectionism and deepening economic decoupling disrupted global markets. The global economy showed signs of weak momentum imbalanced growth and increased fragmentation during its slow recovery leading to divergent economic development trajectories. Over the past year China's economy remained stable but experienced a slight slowdown. In 2024 the retail sales of gold silver and jewelry products by enterprises above the designated size reached RMB 330 billion a year-on- year decrease of 3.1%. Despite current market challenges as inventory gradually clears marketing strategies are adjusted and the jewelry market becomes more standardized the domestic jewelry market is expected to demonstrate strong resilience in the future with significant growth potential and structural development opportunities. 2. Overview of the gold and jewelry industry Large market size: In 2023 the total market size of China's jewelry and jade industry reached RMB 820 billion surpassing the RMB 800 billion threshold for the first time. The industry formed a trillion-level industrial chain spanning upstream resources trade imports design and processing and wholesale and retail.Low efficiency in upstream jewelry element circulation: The jewelry wholesale market is fragmented with many small-scale traders operating inefficiently. Sourcing materials from overseas remains costly transaction methods lack efficiency and informatization is limited. The industry also lacks an influential trading platform for jewelry elements.Increasing industry competition: Leading enterprises are expanding channels upgrading brands and developing new products to accelerate industry consolidation and win favor from new- generation consumers. Structural differentiation within the gold and jewelry industry is intensifying with mismatched supply and demand particularly in the low-end market where product homogenization is severe. In the future industry concentration is expected to further increase.Divergent market performance across jewelry categories: Natural diamond-set jewelry as a discretionary consumer product faces weak demand and slow recovery while lab-grown diamonds 10Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. have a great impact on the natural diamond market. Gold dominates the market due to its dual attributes of consumption and value preservation but sustained high gold prices are suppressing short-term demand leading to a severe price-volume trade-off in the market.Shifting consumer purchase scenarios: As marriage rates in China decline consumer demand for jewelry used in wedding-related scenarios continues to weaken shrinking the market for diamond-set jewelry. Conversely consumer demand for gold is rising. Driven by China's consumption upgrades and the rise of self-indulgence spending trends consumer preferences are shifting toward personalized and diverse gold jewelry designs and advancements in gold jewelry craftsmanship are enabling faster product innovation cycles. As a result purchasing scenarios are shifting from bridal consumption to self-use and gifting. 3. Development trends The gold and jewelry industry presents vast growth opportunities in the future particularly in the development of new gold product categories which are making gold more affordable and expanding market penetration into lower-tier cities. This shift is broadening the consumer base and increasing purchase frequency. In response brands are accelerating their expansion into online channels which have become a key driver for sales growth in gold jewelry and other categories.Digitalization is further promoted and applied. With the ongoing digitalization and technological advancements online gold and jewelry platforms are set to continue optimizing and enhancing consumer interaction and experience. These improvements will boost enterprises' operational efficiency reduce costs and enable more effective supply chain management. For example using transparent and traceable data can allow for data analysis that promotes management optimization and support demand forecasting.The domestic gold and jewelry transaction chain is becoming more standardized. The government and relevant agencies are strengthening their regulation of the gold and jewelry industry by formulating and improving industry laws and regulations clarifying industry standards and norms and cracking down on illegal activities and violations. These efforts contribute to maintaining market order and protecting consumer rights.Based on industry development by relying on its own advantages and making full use of industry resources the Company has built a digital jewelry element trading platform that promotes the standardization informatization and compliance of the jewelry industry builds differentiated competitive advantages while serving the jewelry industry and helps to drive the high-quality development of the Company.(II) Commercial real estate leasing industry 11Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. In 2024 China's commercial real estate industry continued its inventory reduction trend on the sales side with new supply shrinking. On the operations side shopping mall properties in some first-tier cities showed signs of stabilization and improvement while office properties' occupancy rates and rental prices continued to decline. In the fourth quarter the real estate market saw signs of recovery in core cities but the overall market remained in a phase of adjustment and transformation.The Company is actively adjusting market strategies adopting more flexible and diverse leasing terms upgrading property facilities and services and increasing marketing efforts to attract more enterprise tenants.II. Main Business during the Reporting Period The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business.(I) The main business of the Company during the reporting period included jewelry third-party services commercial complex operations and property leasing business. 1. Jewelry third-party services: Bearing the development mission of "being committed to providing high-quality services and growing with the jewelry industry" in mind the Company relies on its advantages gathers domestic and foreign high-quality industry resources and cooperates with outstanding leading enterprises in the industry to build a third-party service platform that meets diverse industry needs. By constructing and operating a digital jewelry element trading platform the Company provides systematic solutions for precious metal wealth investment cultural heritage and fashion styling. It also explores third-party depository business for high-end jewelry creating a wide range of service products through cooperation to meet customer value propositions enhance the industrial service chain set industry benchmarks and promote industry compliance. 2. Commercial complex operation and property leasing business: The Company is the largest owner of Tellus-Gmond Gold Jewelry Industrial Park in the Shuibei area. The Tellus Jewelry Building and Tellus Gold and Diamond Trading Building invested by the Company have been put into operation successively maintaining a high occupancy rate. In addition the Company holds a significant amount of property resources in areas such as Luohu and Futian in Shenzhen. While maintaining the stability of its existing leasing business the Company actively promotes the improvement of property quality. It will promote the transition of its old properties from traditional simple leasing to commercial property operation with a focus on enhancing and exploring the added value of its property brands. This initiative aims to establish innovative industrial projects that align with the overall strategic layout of the city the district and the Company.(II) Description of the main business models of the jewelry business 1. Sales model 12Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Company adopts both wholesale and retail as the main sales models for gold and jewelry.Additionally it provides supporting services such as customs clearance agency services gold refining/exchange services and safe deposit box leasing. The sales revenue composition of the jewelry business in 2024 is as follows: Sales model Amount of operating revenue (RMB 10000) Amount of operating cost (RMB 10000) Gross margin in 2024 Wholesale 123554.38 121616.36 1.57% Retail sales 105803.88 105018.25 0.74% Other services 2735.37 891.62 67.40% Total 232093.63 227526.23 1.97% 2. Production model At present the Company's gold and related products mainly use a commissioned processing model while diamonds colored gemstones and other products do not involve processing. The structure of the production model is as follows: Production model Amount (RMB 10000) Proportion Finished products through the commissioned processing 205585.98 100.00% 3. Purchase model Gold and related products: The Company purchases gold raw materials from Shanghai Gold Exchange or other qualified organizations or leases them from banks.Diamonds: The Company purchases finished diamonds from overseas diamond suppliers and imports them through Shanghai Diamond Exchange.Other jewelry and jade: The Company purchases such products from overseas jewelry and jade suppliers and handles tax-paying import procedures through Shenzhen Jewelry.The structure of the production model is as follows: Purchase quantity Purchase amount Purchase model Raw materials (kg) (RMB 10000) Spot trading Gold 4491.62 223.852.64 4. Operation of physical stores during the reporting period Operating Operating S/N Description revenue (RMB cost Address 10000) (RMB 10000) 1 Guorun Direct-sales Store 7461.13 7438.23 Atrium of Tellus Jewelry Building 2nd Shuibei(Tellus) Road Luohu District Shenzhen City Counter of Guorun Direct- B1-046 Basement Level 1 Annex Building of 2 sales Store (Tellus) on 5576.45 5554.33 Tellus Jewelry Building 2nd Shuibei Road Luohu Basement Level 1 District Shenzhen City Side Hall of Guorun Direct- B1-023 Basement Level 1 Annex Building of 3 sales Store (Tellus) on 33.75 33.35 Tellus Jewelry Building 2nd Shuibei Road Luohu Basement Level 1 District Shenzhen City 4 Guorun (Tellus)—GOLD 603.43 602.55 B1-046 Basement Level 1 Annex Building of 13Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. DIAMOND Business Tellus Jewelry Building 2nd Shuibei Road Luohu Cooperative Store District 5. Online sales during the reporting period S/N Description Operating revenue Operating cost(RMB 10000) (RMB 10000) 1 Tellus Shuibei Jewelry Flagship Store on Tmall 6481.76 6335.59 2 Tellus Shuibei Jewelry Flagship Store on JD.com 17096.15 16801.19 3 "Self-operated mini-program private-sphere store" on WeChat 136.45 134.7 4 Tellus Shuibei Jewelry Auction Store on Alibaba 55159.13 54909.25 5 Tellus Shuibei Jewelry Official Flagship Store on Pinduoduo 1245.61 1236.00 6 Tellus Shuibei Jewelry Official Flagship Store on the Jingya platform 12010.02 11973.06 6. Inventory of jewelry business during the reporting period As of December 31 2024 the inventory balance of the Company's jewelry business was RMB 127.4322 million of which RMB 114.8569 million was measured at fair value. This amount represents hedged items using commodity futures contracts and T+D contracts as hedging instruments.III. Core Competitiveness Analysis (I) Location advantage The Company located in Shuibei the core cluster area of Shenzhen's jewelry industry is the largest owner of Tellus-Gmond Gold Jewelry Industrial Park. Shuibei accounts for more than 75% of China's gold and jewelry market share. Within the one-square-kilometer core area of the Shuibei market tens of thousands of gold and jewelry enterprises are concentrated. According to the data from the Shenzhen Gold & Jewelry Association the annual physical pick-up volume of gold and platinum in Shenzhen accounts for about 70% of the physical sales volume at Shanghai Diamond Exchange and the physical consumption of diamonds accounts for about 80% of the import value at Shanghai Diamond Exchange. In terms of brand clustering Luohu District encompasses over 40 leading jewelry enterprises and 29 "China Famous Trademarks" in the jewelry sector contributing 30% of the national total. It has successfully nurtured the stock exchange listings of jewelry companies such as Chow Tai Seng and DR Group. Shuibei has formed a complete industrial chain covering design and R&D production and manufacturing exhibition and trading brand operation headquarters office operation inspection and testing and talent training.The location advantage of the Shuibei area is significant. The concentration of numerous jewelry suppliers and established businesses facilitates the Company's import-export operations and exhibition and marketing activities. The market influence and centralized trade information in Shuibei provide a favorable business environment and development platform enabling the Company to promptly capture market feedback and respond quickly to market changes. Shenzhen's "20+8" Industrial Cluster Development Plan emphasizes the future focus on developing modern 14Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. fashion industrial clusters. The government's strong support for the jewelry industry provides substantial backing for the Company helping to reduce operating costs enhance profitability and achieve sustainable development.(II) Resource advantage By leveraging its state-owned enterprise background and harnessing industrial synergies the Company deeply integrates resources from both the supply and demand sides of the jewelry industry. This endows the Company with a certain advantage in coordinating upstream resources.The Company has established direct partnerships with domestic and international gold and jewelry suppliers and processors engaging in collaborative discussions with organizations such as the Turkish Jewellery Exporters' Association the Republic of Sakha (Yakutia) delegation from Russia and Myanmar Gems and Pearl Enterprise to develop domestic and international exhibition and trading business.Through years of dedicated efforts the Company has accumulated significant industry resources and influence. It maintains close collaborations with authoritative institutions in the industry such as the National Testing Center for Gold and Silver Jewelry (Tianjin) and HJTC to actively participate in and organize various industry activities set industry standards and continuously expand its industry reputation and impact. The Company has deeply embedded itself in the supply chain business to offer professional full-industry supply chain services and cooperated with renowned jewelry enterprises in the industry to further expand its business scale.The Company's commercial complex operation and property leasing business provides stable revenue and cash flows laying a solid foundation for its long-term development. The Company's Tellus Jewelry Building and Tellus Gold and Diamond Trading Building have been put into operation successively and maintained high occupancy rates. Furthermore the Company plans to continuously unlock the commercial value of its traditional properties through quality upgrades and old property renewal initiatives.(III) Management advantage In terms of digitalization the Company has achieved significant technological advancements. It has vigorously promoted the digital transformation of its trading platform organized and prioritized functional modules and continuously adjusted its construction strategy to respond promptly to changes and meet business needs. The Company has improved and enhanced the platform's capabilities in online transactions data analysis and intelligent supervision gradually applying these features in its supply chain operations to effectively serve jewelry industry clients and support the growth of macro small and medium-sized enterprises (MSMEs) within the sector. 15Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. In terms of risk control the Company has formulated strict internal business control processes such as supplier access standards a customer evaluation system and a procurement price comparison system to realize multi-level risk control over capital information and logistics. At the same time it has continuously optimized business processes and internal control systems during business operations and carried out research and innovation on new categories and new business models under the premise of controllable risks. By leveraging information system development and system data analysis the Company has enhanced its business risk early warning capabilities.In internal management the Company views scientific management as both a driving force and a safeguard for its development. From the perspective of management-driven operations the Company adopts a business-oriented approach tailored to its actual conditions. It has introduced the Business Leadership Model to refine its 4S control system solidifying the strategic closed-loop management and ensuring the smooth execution of plans. The Company has actively promoted the use of OKR management tools to effectively improve the management awareness and skills of its personnel. Through continuous organizational structure optimization the Company has enhanced its functional support capabilities.IV. Analysis of Main Business 1. Overview In 2024 under the effective leadership of its Party Committee and Board of Directors the Company maintained stable overall operations and consistently delivered positive performance.For the year 2024 the Company reported operating revenue of RMB 2613.68 million a year- on-year increase of 41.53%. The primary reasons for the revenue growth include the expansion of the gold and jewelry business and increased income from the commercial operations segment. In 2024 the Company achieved a total profit of RMB 163.29 million and a net profit attributable to the parent company of RMB 136.63 million an increase of RMB 18.37 million compared to 2023.The profit growth was mainly driven by higher profits from the commercial operations segment and increased income from investment in joint-stock enterprises. As of December 31 2024 the Company's total assets amounted to RMB 2594.46 million.Adjusting its business strategy of optimizing the trading platform to enhance core competitiveness: Focusing on the strategy of "One Platform Two Businesses" the Company has built a digital jewelry element trading platform that integrates online exhibition and offline selection.It has vigorously advanced the digitalization of the platform and technological innovation with the platform earning a spot on the 2024 China Top 100 Industrial Digitalization List. It has accelerated the development of the domestic jewelry element trading business starting with recycled diamond 16Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. trading as an entry point. The Company hosted five Recycled Diamond Tenders and one lab-grown diamond procurement event and piloted pop-up stores to gradually expand trading categories to include colored gemstones pearls and jadeite. Simultaneously the Company is promoting the integration of resources in the cross-border trading segment establishing smooth channels for jewelry element circulation and driving the elevation of its brand value.Promoting the market expansion and digitalization of the gold segment concurrently: The Company has clarified its product development plans strengthened new product R&D and enhanced supply chain integration and service capabilities. It has established a dual-channel layout of offline experience stores and online official flagship stores with a focus on expanding the investment gold product sales business. In parallel the Company has deepened digital business operations to deliver better services and greater value to customers.Improving operational efficiency in the physical platform segment: The Company has improved the quality and efficiency of its investment attraction and operations. In 2024 nine themed events including the Cultural Industry Expo and the first "Future Festival" were held at the Tellus Jewelry Building and Tellus Gold and Diamond Trading Building effectively boosting foot traffic in the business district and enhancing brand synergy. The traditional property segment advanced the iteration and upgrade of business formats for multiple projects maintaining a healthy overall occupancy rate throughout 2024.Improving the quality and efficiency of internal management: The Company has introduced the Business Leadership Model and improved a 4S management system driven by strategies. It has deepened the use and improvement of the OKR management system to enhance work efficiency and planning. The Company has also strengthened the management of its joint-stock and holding enterprises to safeguard its interests intensified talent team building and talent training efforts and comprehensively advanced compliance management by building "three lines of defense" to ensure healthy corporate development.Adhering to the leadership of Party building: Through measures such as information sessions and the "Three Meetings and One Lecture" system the Company has implemented the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China (CPC).Special training sessions on Party discipline education have been organized using real-life cases to provide Party members and cadres with firsthand exposure to the severe consequences of violations of laws and discipline. Additionally it has strengthened the construction of grassroots Party organizations and actively explored innovative approaches to Party building. 17Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 2. Revenues and costs (1) Operating revenue composition Unit: RMB 2024 2023 Year-on- Proportion in year Proportion in Amount operating Amount increase/dec operating revenue revenue rease Total operating 2613678204.37100%1846738841.89100%41.53% revenue By industry Jewelry sales and 2320842052.7888.80%1542107225.9683.50%50.50% services Leasing and 292836151.5911.20%250517470.4813.57%16.89% services Automobile sales 0.00% 42638840.47 2.31% -100.00% Automobile maintenance and 0.00% 11475304.98 0.62% -100.00% testing By product Jewelry sales and 2320842052.7888.80%1542107225.9683.50%50.50% services Leasing and 292836151.5911.20%250517470.4813.57%16.89% services Automobile sales 0.00% 42638840.47 2.31% -100.00% Automobile maintenance and 0.00% 11475304.98 0.62% -100.00% testing By region South China 1971504250.32 75.43% 1417912052.46 76.78% 39.04% East China 241495799.74 9.24% 335179719.17 18.15% -27.95% North China 260881606.21 9.98% 85710840.18 4.64% 204.37% Central China 121099408.56 4.63% 6925197.35 0.37% 1648.68% Other regions 18697139.54 0.72% 1011032.73 0.05% 1749.31% By sales model Direct sales 2613678204.37 100.00% 1846738841.89 100.00% 41.53% (2) Industries products regions and sales models with an operating revenue or operating profit accounting for more than 10% of the Company's total □Applicable □ Not applicable Unit: RMB Year-on-year Year-on-year Year-on-year Gross movement in Operating revenue Operating cost movement in movement in margin operating operating costs gross margin revenue By industry Jewelry sales and 2320842052.782273354439.852.05%50.50%50.07%0.28% services Leasing and 292836151.59103409860.2164.69%16.89%21.26%-1.27% services 18Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. By product Jewelry sales and 2320842052.782273354439.852.05%50.50%50.07%0.28% services Leasing and 292836151.59103409860.2164.69%16.89%21.26%-1.27% services By region South China 1971504250.32 1743354212.66 11.57% 39.04% 42.03% -1.86% East China 241495799.74 238075580.05 1.42% -27.95% -27.58% -0.50% North China 260881606.21 257355619.98 1.35% 204.37% 205.24% -0.28% Central China 121099408.56 119547197.35 1.28% 1648.68% 1653.55% -0.27% Other regions 18697139.54 18431690.02 1.42% 1749.31% 1751.87% -0.14% By sales model Direct sales 2613678204.37 2376764300.06 9.06% 41.53% 44.19% -1.68% In case of adjustments to the statistical criteria of the Company's main business data in the reporting period the Company has provided the adjusted main business data for the most recent year based on the criteria at the end of the reporting period.□ Applicable□ Not applicable (3) Whether the Company's physical product sales revenue is greater than the service revenue □Yes □ No Industry Item Unit 2024 2023 Year-on-year increase/decrease Sales volume KG 4597.35 3563.59 29.01% Wholesale and retail of gold Production KG 4137.93 3781.54 9.42% Inventory KG 231.14 434.98 -46.86% Explanation of the causes of over 30% changes in the related data □Applicable □ Not applicable During the reporting period the demand for the gold business decreased at the end of the year and the stockpile volume has been reduced accordingly.. (4) Performance for major sales contracts and major procurement contracts signed by the Company as of the reporting period □ Applicable□ Not applicable (5) Composition of operating cost Industry and product classification Unit: RMB 20242023 Year-on- Proportio Proportio year Industry Item n in n in Amount Amount increase/d operating operating ecrease costs costs Jewelry sales and Retail and wholesale of 2273354439.8595.65%1514822240.1591.90%50.07% services jewelry Leasing and Leasing property 103409860.214.35%85282344.365.17%21.26% services management and others Spare parts and Automobile sales 0.00% 38385230.69 2.33% -100.00% maintenance 19Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Automobile maintenance and Automobiles 0.00% 9847384.40 0.60% -100.00% testing Unit: RMB 20242023 Year-on- Product Proportion Proportio year Item classification in n inAmount Amount increase/d operating operating ecrease costs costs Jewelry sales and Retail and wholesale of 2273354439.8595.65%1514822240.1591.90%50.07% services jewelry Leasing and Leasing property 103409860.214.35%85282344.365.17%21.26% services management and others Spare parts and Automobile sales 0.00% 38385230.69 2.33% -100.00% maintenance Automobile maintenance and Automobiles 0.00% 9847384.40 0.60% -100.00% testing (6) Whether the consolidation scope changed during the reporting period □Yes □ No On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate the liquidation and resume operations. The Company submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court for withdrawal of the compulsory liquidation application for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023] Y0391QQ No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the withdrawal of the compulsory liquidation application for SDG Huari. Consequently the Company included SDG Huari in its consolidated financial statements as of December 27 2024. (7) Major changes or adjustments in the Company's business products or services during the reporting period □ Applicable□ Not applicable (8) Key customers and key suppliers Key customers of the Company Total sales revenue from the top 5 customers (RMB) 570460360.10 Proportion of the total sales revenue from the top 5 customers 21.82% in total annual sales revenue Proportion of the sales revenue from the related parties among 3.21% the top 5 customers in total annual sales revenue Information on the top 5 customers of the Company Proportion in total annual S/N Customer name Sales revenue (RMB) sales revenue 1 Customer 1 163676046.05 6.26% 20Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 2 Customer 2 131590778.75 5.03% 3 Customer 3 114703552.51 4.39% 4 Customer 4 83815902.66 3.21% 5 Customer 5 76674080.13 2.93% Total -- 570460360.10 21.82% Explanation on other conditions of key customers □ Applicable□ Not applicable Main suppliers of the Company Total purchase amount attributable to the top 5 suppliers 2270758126.66 (RMB) Proportion of the total purchase amount attributable to the top 5 92.56% suppliers in the total annual purchase amount Proportion of the purchase amount attributable to related parties among the top 5 suppliers in the total annual purchase 0.83% amount Information on the top 5 suppliers of the Company Proportion in the total annual S/N Supplier name Purchase amount (RMB) purchase amount 1 Supplier 1 2164944175.15 88.25% 2 Supplier 2 70047130.00 2.86% 3 Supplier 3 20270819.23 0.83% 4 Supplier 4 8858465.84 0.36% 5 Supplier 5 6637536.44 0.27% Total -- 2270758126.66 92.56% Explanation on other conditions of key suppliers □Applicable □ Not applicable During the reporting period the supplier accounting for more than 50% of the Company’s total annual purchase amount was the Shanghai Gold Exchange. 3. Expenses Unit: RMB Year-on-year Explanation on major 20242023 increase/decrease changes Selling expenses 22232680.89 19128514.75 16.23% Mainly due to compensation incurred Administrative from the closure of the 51362592.4585621795.09-40.01% expenses automotive business in the same period last year Financial expenses 6389014.69 5537879.92 15.37% Mainly due to the R&D expenses 3268819.88 1965795.78 66.28% increased number of R&D projects 21Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 4. Investment in R&D □Applicable □ Not applicable Expected impact on the Name of major Project purpose Project progress Objectives to be achieved future development of the R&D project Company The project's Enhance market Integrated Promote online publicity and development has competitiveness optimize Enterprise Develop an integrated brand display while been completed customer relationship Information enterprise information providing functions such as and it is now in management and improve Display Platform display platform online consultation and continuous enterprise operational R&D feedback operation efficiency Improve the efficiency of The project's Jewelry Bonded Develop a new warehouse management development has Improve the efficiency and Warehouse jewelry bonded enhance the safety and been completed accuracy of jewelry goods Management warehouse traceability of goods and and it is now in management System R&D management system optimize supply chain trial operation management The project's R&D of a Dynamic Establish a development has Help users better understand Strengthen the Company's Update Platform comprehensive and been completed the supply of goods in the core competitiveness and for Diamond Price accurate diamond and it is currently diamond market and trends in expand its business scope Index Information index system in the testing price changes and customer base phase R&D of an Develop an integrated Integrated Meet the personalized import and export The project's Improve work efficiency Management management needs of the management system development has and strengthen supply System for the jewelry industry for the program for the been completed chain management Jewelry Import and import and export business jewelry industry Export Business Enable standardized Improve the efficiency and Intelligent Develop a simple and warehouse data management accuracy of warehouse Integrated Jewelry easy-to-use intelligent The project's and one-stop management management and lay a Warehouse integrated warehouse development has across the entire business good management Management management program been completed chain to ensure the accuracy foundation for business System for jewelry and real-time supply of data growth Integrated Improve the efficiency of Intelligent Develop an efficient Increase usability The project's inventory management Inventory and convenient app accuracy and operational development has reduce labor costs and Management and for warehouse mobile efficiency in goods in/out been completed improve customer service Automated In/out devices and transfers quality App for Jewelry Improve exhibition The project's management efficiency Mobile Bidding development has Improve the Company's Develop an efficient optimize the experience of Platform for been completed business competitiveness and convenient H5 exhibitor customers and Jewelry Viewing and it is now in and improve customer application realize real-time information Events continuous satisfaction and loyalty exchange data analysis and operation decision-making Shenzhen The project's Optimize the online viewing Improve customer International development has Develop an efficient exhibition functionality to satisfaction and stickiness Jewelry and Jade been completed and convenient mini enhance user convenience and enhance the Comprehensive and it is now in program and improve data analysis Company's service Trade Platform continuous and decision-making support. competitiveness Mini Program operation Data-driven Develop a data-driven The project's Strengthen the management Improve supply chain 22Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Jewelry Supply logistics tracking development has of the jewelry supply chain efficiency reduce logistics Chain Optimization optimization system been completed business to achieve efficient costs improve inventory System for the jewelry supply and it is now in collaboration between its management efficiency chain trial operation upstream and downstream and enhance risk participants management capabilities Realize online ordering order Simplify operations for Raw Material Sales Digitize the gold raw It is in normal confirmation customer both customers and staff Mini Program material sales process operation maintenance payment and boost business volume tracking and other functions R&D personnel of the Company 2024 2023 Change proportion Number of R&D personnel 11683.33% (person) Proportion of R&D personnel 6.88%3.97%2.91% in all employees Educational background structure of R&D personnel Bachelor's degree 8 3 166.67% Master's degree 2 1 100.00% Junior college diploma 1 2 -50.00% Age composition of R&D personnel Under 30 3 1 200.00% 30-408560.00% R&D investment of the Company 2024 2023 Change proportion R&D investment amount 3268819.881965795.7866.28% (RMB) Proportion of investment in 0.13%0.11%0.02% R&D in operating revenue Capitalized R&D investment 0.000.00 amount (RMB) Proportion of capitalized R&D investment in R&D 0.00% 0.00% investment Causes and impact of major changes in the composition of the Company's R&D personnel □ Applicable□ Not applicable Causes for significant year-on-year changes in the proportion of the total R&D investment in operating revenue □ Applicable□ Not applicable Explanation of the reason for significant changes in the capitalization rate of R&D investment and its justification □ Applicable□ Not applicable 5. Cash flow Unit: RMB Year-on-year Item 2024 2023 increase/decrease Subtotal of cash inflows from 4662567599.792019506191.37130.88% operating activities 23Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Subtotal of cash outflows from 4272278785.942079646197.83105.43% operating activities Net cash flows from operating 390288813.85-60140006.46748.97% activities Subtotal of cash inflows from 841818290.07677411633.1524.27% investing activities Subtotal of cash outflows from 1034454292.10810619126.8427.61% investing activities Net cash flows from investing -192636002.03-133207493.69-44.61% activities Subtotal of cash inflows from 415000000.00359922892.8315.30% financing activities Sub-total of cash outflows from 471600230.88397758935.4418.56% financing activities Net cash flows from financing -56600230.88-37836042.61-49.59% activities Net increase in cash and cash 141052580.94-231183441.67161.01% equivalents Explanation of main influence factors for year-on-year major changes in related data □Applicable □ Not applicable Unit: RMB Item 2024 2023 Year-on-yearincrease/decrease Notes Subtotal of cash inflows from operating activities 4662567599.79 2019506191.37 130.88% Increases in the business volume of gold and jewelry during the reporting period Subtotal of cash outflows from operating activities 4272278785.94 2079646197.83 105.43% Increases in the business volume of gold and jewelry during the reporting period Net cash flows from operating Decrease in accounts receivable and activities 390288813.85 -60140006.46 748.97%inventory this year; introduction of notespayable business Subtotal of cash inflows from investing activities 841818290.07 677411633.15 24.27% Subtotal of cash outflows from investing activities 1034454292.10 810619126.84 27.61% Net cash flows from investing -192636002.03 -133207493.69 -44.61%Year-on-year increase in the purchase ofactivities financial products Subtotal of cash inflows from financing activities 415000000.00 359922892.83 15.30% Sub-total of cash outflows from financing activities 471600230.88 397758935.44 18.56% Repayment of borrowings related to the Net cash flows from financing -56600230.88 -37836042.61 -49.59%gold and jewelry business during theactivities reporting period; decrease in borrowing balances Net increase in cash and cash Decrease in accounts receivable and equivalents 141052580.94 -231183441.67 161.01%inventory this year; introduction of notespayable business Explanation on the causes of the major differences between the net cash flow from operating activities during the reporting period and the net profits of the Company in the year □ Applicable□ Not applicable V. Analysis of Non-main Business □Applicable □ Not applicable 24Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Unit: RMB Proportion in Sustainab Amount Explanation total profit le or not Gains from financial investments gains from Income from 19470482.47 11.92% using the equity method to recognize investments No investment inassociate companies Changes in the fair value of unexpired wealth Gains or losses from management products and losses from changes in -10567743.62 -6.47% No changes in fair value fair value at the end of the year due to re- acquisition of control in a subsidiary Asset impairment 0.00 0.00% Non-operating Confiscation of security deposits due to early 3900953.07 2.39% No revenue surrender of lease by merchants Non-operating Liquidated damages to tenants for early 2195959.84 1.34% No expenses termination due to renovation and upgrade works VI. Analysis of Assets and Liabilities 1. Major changes in asset composition Unit: RMB End of 2024 Beginning of 2024 Proportion Explanatio Proportion in Proportion in increase/de n on major Amount Amount total assets total assets crease changes Cash at bank 377971359.6914.57%220340961.649.17%5.40% and on hand Accounts 46564067.141.79%99635751.524.14%-2.35% receivable Inventory 127432191.55 4.91% 178425833.88 7.42% -2.51% Investment 1099772133.1042.39%1008137341.8041.94%0.45% properties Long-term equity 85091833.20 3.28% 76511487.57 3.18% 0.10% investments Fixed assets 70763683.25 2.73% 78935843.49 3.28% -0.55% Construction in 3332141.190.13%7279570.050.30%-0.17% progress Right-of-use 78558005.503.03%71904716.502.99%0.04% assets Short-term 120101444.434.63%145131694.446.04%-1.41% borrowings Contract 4009504.590.15%7079975.380.29%-0.14% liabilities Lease liabilities 76541985.55 2.95% 69524214.23 2.89% 0.06% High proportion of overseas assets □ Applicable□ Not applicable 25Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 2. Assets and liabilities at fair value □Applicable □ Not applicable Unit: RMB Gains or losses from Accumulated Impairme Beginning changes change in fair nt Purchase SalesItem balance in fair value accrued amount in amount in Other Ending value included in in this this period this period changes balance during equity period this period Financial assets 1. Trading financial assets - 206294931.134917.656000006220000016563083 (excluding 74799015. 94390.000.004.06 derivative 27 financial assets) 2. Derivative 298320.00-6242.00292078.00 financial assets 3. Other debt 67627948.6 389867 13197506. 84724128.investment 0 3.52 64 76 s 4. Other equity instrument 383317.67 -383317.67 0.00 investment s 5. Other non-current 0.00 financial assets Subtotal of - 274604518.402734669197506220000025064704 financial -383317.67 0.00 74799015. 218.916.640.000.82 assets 27 - Hedged 85802395.0 30154287 29850745 11485687 129962 items 7 00.40 94.58 3.15 7.74 - Total of the 360406913. 272772 36846262 36070745 36550391 -383317.670.0074799015.above 28 1.17 07.04 94.58 3.97 27 - Financial 56883334.7 34657800. 88246760. 32477146660.00 liabilities 6 00 00 4.76 Other changes: After the Company regained control of its subsidiary and reconsolidated its financial statements the equity previously classified as trading financial assets was transferred out.Whether major changes occurred to the measurement attributes of the main assets of the Company within the reporting period 26Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. □Yes□ No 3. Restriction on asset rights as at the end of the reporting period Item Ending balance (RMB) Security deposits for notes payable 33113263.10 Futures and options account margin 22848540.40 Gold leasing security deposits and interests 20069638.91 Amount under judicial control 663948.65 Total 76695391.06 VII. Analysis of Investment 1. Overview □Applicable □ Not applicable Investment in the reporting period Investment in the same period of the Change rate (RMB) previous year (RMB) 20337984.6281106905.72-74.92% 2. Significant equity investment acquired in the reporting period □ Applicable□ Not applicable 3. Significant non-equity investment ongoing in the reporting period □ Applicable□ Not applicable 4. Financial assets investment (1) Securities investment □ Applicable□ Not applicable The Company had no securities investment during the reporting period. (2) Investment in derivatives □Applicable □ Not applicable 1) Investment in derivatives for hedging purposes during the reporting period □Applicable □ Not applicable Unit: RMB 10000 Type of Initial Beginning Gains Accumulat Purchased Selling Ending Proportion derivative investme amount or ed change amount amount amount of the 27Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. investment nt losses in fair during the during the investment amount from value reporting reporting amount in changes included in period period net assets in fair equity of the value Company during at the end this of the period reporting period Futures (Everbright 38.20 0 0 0 221.60 221.60 0 0.00% account) Futures (T+D 77.60358.150012738.5713096.7200.00% account) Futures (Huatai 1050.00667.4563.66037321.8336601.51387.780.73% account) Revenue swap 50.00000360.94360.9400.00% (CITIC account) Futures (CITIC 290.6008.0707363.246933.38429.860.23% account) Yongan Futures 000035.4135.4100.00% (revenue swap) Futures (CITIC 57.20146.61-4.6704996.714677.11466.210.25% account) Total 1563.60 1172.21 67.06 0 63038.30 61926.66 2283.85 1.21% Accounting policies and specific principles of accounting for hedging business during the reporting No period and whether there was any significant change in them compared to the previous reporting period Explanation of actual gains During the reporting period the futures account incurred an actual hedging loss of RMB 16.0240 and losses during the million.reporting period Measurement method of hedge effectiveness: Hedge effectiveness = Change in Futures Price / Change in Spot Price. The closer this value is to 100% the more effective the hedge. A hedge is Explanation of hedging considered highly effective when its effectiveness ranges from 80% to 125%. The Company's effectiveness hedge effectiveness consistently exceeds 110% indicating that its hedging strategy is highly effective.Source of funds for Owned funds investment in derivatives The Company's hedging transactions follow the following basic principles: The value changes of the futures varieties and contract quantities are roughly equivalent to those of the spot positions; futures positions are in the opposite direction to spot positions; and the time period in which the Risk analysis and control futures position is held corresponds to the time period in which the risk is borne by the spot measures for positions in market. The main risks of positions in gold futures include basis risks forced liquidation risks derivatives during the and operational error risks. To manage the basis risk when the basis narrows the Company reporting period (including strives to use leased gold as inventory and minimize or avoid building proprietary inventory. For but not limited to market the forced liquidation risk a risk warning system has been established: In case of significant gold risks liquidity risks credit price fluctuations capital planning is done in advance to ensure adequate funds in the margin risks operational risks and account. If forced liquidation is triggered by emergency events the incident is reported to the legal risks) Company's senior management immediately and the hedging positions that have undergone forced liquidation will be restored at an appropriate time. To mitigate the operational error risk the Company has implemented a trader training mechanism strictly adhered to internal policies 28Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. and workflow requirements for operation and review and performed daily reporting. The Company has established a scientific and effective hedging management system which is implemented through four key aspects: organizational structure design planning systems management and evaluation procedures and dynamic risk monitoring.For changes in market prices or fair value of invested derivatives during the During the reporting period the fair value change of the futures contracts held for hedging reporting period the analysis purposes was RMB 670600. The Company determined the fair value using the closing price of of derivative fair value shall the futures contracts held on the Shanghai Gold Exchange on the last trading day of December disclose the specific 2024 (December 31) with the floating gain and loss representing the change in fair value. valuation methods used and related hypotheses and parameter setting.Involvement in litigation (if None applicable) Disclosure date of the announcement of the Board January 12 2024 of Directors for derivatives investment approval (if any) 2) Investment in derivatives for speculative purposes during the reporting period □ Applicable□ Not applicable During the reporting period the Company had no investment in derivatives for speculative purposes. 5. Usage of raised funds □ Applicable□ Not applicable The Company did not use any raised funds during the reporting period.VIII. Sales of Major Assets and Equity 1. Sales of major assets □ Applicable□ Not applicable The Company did not sell any major assets during the reporting period. 2. Sales of major equity □ Applicable□ Not applicable IX. Analysis of main holding and joint-stock companies □Applicable □ Not applicable Main subsidiaries and joint-stock companies contributing over 10% to the Company's net profit Unit: RMB Com Company Registere Operating Operating pany Main business Total assets Net assets Net profit name d capital revenue profit type 29Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Jewelry fair planning jewelry consignment Shenzhen sales Jewelry Subsi exhibition and 1000000 49730332. 36657263. 6797752.7 Industry -89599.80 701734.71 diary display 00 22 32 1 Service Co.planning Ltd.conference services and marketing planning Sales of gold bars for Guorun Gold investment Subsi 2000000 39662881 19806326 22998353 Shenzhen Co. gold recycling 330358.02 150733.58 diary 00 5.49 0.37 71.86 Ltd. and gold refining/exchan ge services Purchase sales and leasing of gold ornaments Shenzhen and precious Tellus Subsi metal products 5000000 93870008. 47250857. 14138975.Treasury 678615.13 825470.21 diary supply chain 0 58 44 74 Supply Chain management Tech Co. Ltd.and related supporting services Shanghai Diamond Fanyue Subsi 4201478.3 3492569.9 purchase and 3500000 69068.22 40222.12 21203.08 Diamond Co. diary 6 0 sales Ltd.Shenzhen Automobile Sales of Subsi 1896000 19696727 16797716 31171619. 26818508. 21379818.Industry and automobiles diary 0 4.06 4.24 59 94 25 Trade Co. and spare parts Ltd.Shenzhen Property Zhongtian Subsi leasing safe 3662219 58984866 49091785 12382233 78267816. 58458027.Industry Co. diary deposit box 00 4.83 2.87 1.50 73 54 Ltd. leasing Shenzhen Huari - Automobile Subsi Automobile 6279985.4 1699988.7 1924139.2 20000009399247.0884.25 Sales and diary sales 8 9 3 4 Service Co.Ltd.Shenzhen Xinyongtong Motor Vehicle Subsi Property 13797946. 7860981.7 6757673.1 2776108.4 2642913.7 9607800 Inspection diary leasing 59 2 2 8 4 Equipment Co. Ltd.Shenzhen Subsi Property 3290000 98703022. 81524101. 12476178. 8870579.7 6683356.6 Tellus diary leasing 0 52 37 97 5 2 Xinyongtong 30Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Automobile Development Co. Ltd.Shenzhen Tellus Subsi Property 2991249.6 1959854.0 Chuangying 1500000 732.89 14170.90 51278.96 diary leasing 3 6 Technology Co. Ltd.Investment in Shenzhen Joint- industrial Tellus-Gmond stock development 5370496 36587776 11243200 13243027 59327410. 43930318.Investment comp property 0 5.89 8.52 7.65 87 41 Co. Ltd. any management and leasing Shenzhen SDG Huari Subsi Property USD 21952591. 17307546. 7991572.8 Automobile 266742.02 842849.92 diary leasing 5000000 94 23 6 Enterprise Co.Ltd.Acquisition and disposal of subsidiaries during the reporting period □ Applicable□ Not applicable Description of main holding and joint-stock companies X. Structured Entities Controlled by the Company □ Applicable□ Not applicable XI. Outlook of Future Development (I) Development strategy Since the Company formulated the strategy for the transformation to a third-party comprehensive service provider in the jewelry industry in 2014 it has been unswervingly and steadily promoting its strategic transformation and project implementation in accordance with the established plan. After years of exploration and attempts substantial results have been achieved. In the future the Company will deepen its focus on third-party jewelry services gradually building a nationally leading digital jewelry trading platform and becoming an international hub for jewelry and jade transactions. By 2025 the Company will comprehensively develop its business technology talent and management capabilities around third-party jewelry services continuously enhancing its platform's competitive advantages and driving breakthrough progress in various initiatives.(II) Business plan for 2025 1. Promoting party-building collaboration and empowering merchants through party building leadership: The Company will uphold the leadership of Party building aligning efforts with core business objectives and serving the overall development strategy. By leveraging several concrete 31Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. projects ("N" initiatives) the Company aims to drive breakthroughs in Party-led development within the jewelry industry ecosystem and promote the clustered growth of the Tellus Jewelry ecosystem. 2. Deepening development and intensifying efforts to accelerate platform construction: The Company will intensify efforts to build a digital jewelry element trading platform that integrates online and offline functions including regular exhibitions and product viewing transaction settlement import/export agency supply chain finance and warehousing logistics insurance services. The jewelry trading team will be further strengthened to accelerate digital transformation. 3. Optimizing the existing product structure in the gold segment to build core competitiveness: The Company will enhance product R&D and design capabilities to develop a distinctive product portfolio. It will also strengthen its operations team to create a high-performing market expansion and operations unit build robust data infrastructure and drive business growth. 4. Benchmarking against industry leaders to fully enhance the comprehensive capabilities of commercial operations: The Company will complete the business layout and adjustment of its physical commercial platform expand interconnectivity within its physical platform and create a fashionable jewelry district in Shuibei. It will also continue improving management standards and build an efficient commercial operations management team. 5. Optimizing the organizational structure and continuously improving the strategic control capability: The Company will adopt a performance-driven approach to achieve practical outcomes through actual efforts. Based on actual needs management tools and mindsets will be upgraded and management efficiency will be improved to enhance the Company's competitiveness. The Company will refine its 4S control system and ensure strategy execution through an effective closed-loop management process. 6. Continuously improving the incentive mechanism and strengthening the construction of talent teams: The Company will implement a combined short- and long-term incentive policy refine and optimize the performance assessment plan for business units and complete the formation of an information technology development team. 7. Effectively consolidating work safety management: The Company will reinforce its work safety responsibility system formalize and standardize procedures for scattered small-scale projects conduct regular work safety training and improve the competency of grassroots safety personnel.(III) Possible risks and countermeasures In the process of strategy implementation and project operation the Company will objectively and clearly recognize the possible risks and take active and effective measures to prevent them. 32Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 1. Risk 1: market price fluctuations The Company's primary raw materials are gold and jewelry. In recent years fluctuations in international and domestic economic conditions and changes in consumer demand have led to price fluctuations in gold and other raw materials creating uncertainties for the Company's operations.Countermeasures: First the Company will continuously strengthen risk management and establish and improve risk prevention and control mechanisms to ensure its compliance operation.Second it will firmly advance its strategic transformation promote the implementation of transformation projects through innovative business models explore incremental markets expand business scale and seek new profit growth points to enhance competitiveness and provide a solid foundation for long-term stable development. 2. Risk 2: insufficient talent team building With the implementation of transformation projects and business expansion the current pool of professionals in the jewelry industry cannot meet the Company's rapid development needs.Countermeasures: First the Company will accelerate training of internal professionals through industry research learning and hands-on business practices. Second it will recruit additional business personnel with jewelry industry experience to comprehensively improve business capabilities from market expansion to risk management. Third it will obtain internal and external resources strengthen professional skills training and provide a platform for employee growth.XII. Reception of Investigation Communication Interview and Other Activities during the Reporting Period □Applicable □ Not applicable Index of Recept Way of Types of Main points talked about and general Reception date ion Visitor reception visitor information provided investigation place information Telephone Inquiry about whether the Comp January 8 2024 communic Individual Investor Company issues a performance N/A any ation forecast Telephone Comp Inquiry about the Company's January 11 2024 communic Individual Investor N/A any business operations ation Telephone Inquiry about whether the Comp January 19 2024 communic Individual Investor Company issues a performance N/A any ation forecast Telephone Comp Inquiry about the Company's February 27 2024 communic Individual Investor N/A any ESG reporting progress ation Telephone Comp Inquiry about the Company's March 14 2024 communic Individual Investor N/A any annual report disclosure timeline ation Comp Telephone Inquiry about the Company's March 19 2024 Individual Investor N/A any communic business operations and dividend 33Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. ation plans Telephone Comp Inquiry about the Company's Q1 April 3 2024 communic Individual Investor N/A any business performance ation Telephone Comp Inquiry about number of the April 19 2024 communic Individual Investor N/A any Company's shareholders ation Telephone Comp Inquiry about the development of May 21 2024 communic Individual Investor N/A any the industry ation Telephone Inquiry about whether the Comp June 13 2024 communic Individual Investor Company purchases directors' N/A any ation liability insurance Telephone Comp Inquiry about semi-annual August 9 2024 communic Individual Investor N/A any operation performance ation Telephone Comp Inquiry about the Company's September 26 2024 communic Individual Investor N/A any business development ation Telephone Comp Inquiry about the Company's Q3 October 11 2024 communic Individual Investor N/A any business performance ation Telephone Comp Inquiry about corporate strategy December 31 2024 communic Individual Investor N/A any and business matters ation XIII. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan Whether the Company has formulated a market value management system □Yes□ No Whether the Company has disclosed a valuation enhancement plan □Yes□ No XIV. Implementation of the Action Plan for "Improvement in Quality and Return" Whether the Company has disclosed an announcement on the Action Plan for "Improvement in Quality and Return" □Yes□ No 34Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section IV Corporate Governance I. Basic Information on Corporate Governance During the reporting period the Company continuously improved its corporate governance structure and internal control system in strict accordance with the Company Law the Securities Law the Stock Listing Rules of the Shenzhen Stock Exchange the Business Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 1 — Standard Operation of Listed Companies on the Main Board and other relevant laws and regulations. During the reporting period the Company operated in a standardized manner with strong independence and proper information disclosure. Its corporate governance complied with the requirements of normative documents for listed companies. The main aspects of corporate governance are as follows. 1. Shareholders and general meetings of shareholders The convening and holding procedures of general meetings of shareholders proposal review procedures and decision-making procedures of the Company all conformed to the relevant provisions and requirements of the Company Law the Articles of Association and the Rules of Procedure for General Meetings of Shareholders. The Company treated all shareholders fairly and especially ensured that minority shareholders enjoyed equal rights in proportion to their shareholdings. The Company strictly implemented the Detailed Rules for the Implementation of Online Voting at the General Meeting of Shareholders to ensure all shareholders' rights to participate in and vote on the Company's decision-making matters allowing them to fully exercise their rights. All previous General Meetings of Shareholders were witnessed by lawyers to effectively maintain the legitimate rights and interests of the listed company and all the shareholders.The Company also communicated with minority shareholders through the investor relations column on the interactive platform of the Shenzhen Stock Exchange (http://irm.cninfo.com.cn) and the official website telephone and other means ensuring a smooth and fair information exchange with minority shareholders. Meanwhile it fully listened to the demands and suggestions of minority shareholders. During the reporting period the Board of Directors of the Company convened and held the 2023 Annual General Meeting of Shareholders and one Extraordinary General Meeting of Shareholders. It exercised its functions and powers in accordance with laws and regulations the Articles of Association and the Rules of Procedure for General Meetings of Shareholders to form effective resolutions. 2. Directors and the Board of Directors 35Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. During the reporting period the Company had 8 members on the Board of Directors including 3 independent directors. The number of members on the Board of Directors and the board composition complied with the requirements of relevant laws and regulations and the Articles of Association. The Board of Directors has three special committees namely the Strategy Committee the Audit Committee and the Remuneration and Appraisal Committee. Each special committee strictly abides by the relevant systems and regulations and performs its own duties effectively strengthening the standardized operation of the work of the Board of Directors of the Company and providing professional opinions and references for the decision-making of the Board of Directors.During the reporting period the Company held 6 meetings of the Board of Directors and 9 meetings of special committees of the Board of Directors in accordance with laws and regulations the Articles of Association the Rules of Procedure for the Board of Directors and the rules of procedure for special committees. The convening procedures proposal review procedures and decision-making procedures of the meeting all complied with relevant regulations. The directors attended the board meetings with a serious and responsible attitude and actively participated in relevant training with familiarity with relevant laws and regulations and an adequate understanding of their rights obligations and responsibilities. The members of the Board of Directors kept a diligent and responsible attitude with a reasonable structure of expertise in the performance of their duties and safeguarded the overall interests of the Company. The independent directors expressed independent opinions on relevant matters with a fair and diligent attitude improving the scientific and fair decision-making of the Board of Directors. 3. Supervisors and the Board of Supervisors During the reporting period the Board of Supervisors of the Company consisted of 5 supervisors including 2 employee representative supervisors. The number of supervisors on the Board of Supervisors and the board composition met the requirements of laws regulations and the Articles of Association. During the reporting period the Company held 4 meetings of the Board of Supervisors in accordance with relevant laws and regulations the Articles of Association and the Rules of Procedure for the Board of Supervisors. The supervisors supervised the Company's operation and financial status and the legality and compliance of the Company's directors and senior executives in performing their duties and safeguarded the legitimate rights and interests of the Company and shareholders. 4. About senior executives The senior executives of the Company assumed clear responsibilities and performed their duties in strict accordance with various management systems such as the Articles of Association and 36Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. the Working Rules for General Manager held a diligent and responsible attitude and earnestly implemented and executed the resolutions of the Board of Directors. 5. Information disclosure and investor relation management The Company in strict accordance with the requirements of the Information Disclosure System designated the Secretary of the Board of Directors of the Company to be responsible for information disclosure reception of shareholders' visits and consultation and disclosure of relevant information in a true accurate complete and timely manner in strict accordance with relevant regulations. During the reporting period the Company designated Securities Times and CNINFO as the newspaper and website for information disclosure ensuring that all shareholders had equal opportunities to access information. 6. Relationship between the controlling shareholder and the listed company The controlling shareholder legally exercised the rights of investors through the General Meeting of Shareholders without directly or indirectly intervening in the Company's decision- making and operations through any other means. There were no occurrences of misappropriating the funds of the listed company. The Company and the controlling shareholder maintained a clear separation in terms of assets finances personnel organization and business operations. The Company's Board of Directors Board of Supervisors and internal management organizations operated independently to ensure significant decisions of the Company were made following standardized procedures. 7. Performance evaluation and incentive and restraint mechanisms The Company gradually established and improved the open and transparent performance evaluation standards and incentive and restraint mechanisms for directors supervisors and senior executives. The appointment of senior executives of the Company was open and transparent complying with the provisions of laws and regulations. 8. About stakeholders While pursuing economic benefits and protecting the interests of shareholders the Company fully respected and safeguarded the legitimate rights and interests of stakeholders and effectively communicated and cooperated with stakeholders. The Company paid attention to the protection of employees' rights and interests and supported the Congress of Employees and trade union organizations to exercise their functions and powers according to law. During the reporting period the Company cultivated talents attached importance to social responsibility paid attention to social welfare undertakings such as welfare environmental protection and voluntary service and achieved good social benefits while achieving economic benefits. As of the end of the reporting 37Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. period the corporate governance status of the Company complied with the requirements specified in relevant normative documents concerning the governance of listed companies.Is there any significant misalignment between the actual governance of the Company and the provisions of laws administrative regulations or the rules of CSRC governing the governance of listed companies □Yes□ No There was no significant misalignment between the actual governance of the Company and the provisions of laws administrative regulations or the rules of CSRC governing the governance of listed companies.II. Independence of the Company from Controlling Shareholder and Actual Controller in terms of Assets Personnel Finance Organizations and Business The Company is independent of the controlling shareholder in terms of business personnel assets organizations and finance possessing independent and complete business operations with autonomous operating capabilities. 1. Business: The Company is an independent legal entity. It is completely independent of the controlling shareholder in terms of business possessing an independent and complete business system and the ability to operate independently. The Company has independent operation and service systems and its own leading business. There is no horizontal competition between the Company and the controlling shareholder or related parties. 2. Personnel: The Company operates completely independently in terms of labor personnel and wage management and has formulated an independent management system; the General Manager Deputy General Managers Chief Financial Officer Secretary of the Board of Directors and other senior executives of the Company have all worked in the Company and received compensation while serving in their respective roles within the Company without holding any positions in shareholder units. The directors supervisors and senior executives of the Company are all selected in strict accordance with the requirements and procedures of relevant laws and regulations such as the Company Law Articles of Association and rules of procedure for the General Meeting of Shareholders the Board of Directors and the Board of Supervisors. 3. Assets: The Company independently and completely owns the business system and related assets related to its operations and independently registers establishes accounts for accounts and manages the assets. The assets are independent of the controlling shareholder and other enterprises controlled by it. 4. Finance: The Company has set up an independent financial accounting department and established a complete set of accounting systems and financial management systems; There is no case where the controlling shareholder interferes with the Company's capital operation; The Company has opened an independent bank account and there is no deposit of funds into the account of a finance company or a settlement center controlled by a major shareholder or other 38Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. related parties; The Company does not share bank accounts with the controlling shareholder or other enterprises under its control. 5. Organization: The Board of Directors the Board of Supervisors and other internal organizations of the Company operate independently. All organizations within the Company are set up according to the requirements of the specifications of listed companies and the actual business characteristics of the Company. The Company has an independent office address.III. Horizontal Competition □ Applicable□ Not applicable IV. Annual General Meeting of Shareholders and Extraordinary General Meetings of Shareholders during the Reporting Period 1. General Meetings of Shareholders during the reporting period Attendanc e Holding Disclosure Session Type proportio Meeting's resolutions date date n of investors Annual For details please refer to the Announcement on 2023 Annual General Resolutions of 2023 Annual General Meeting of April 23 April 24 General Meeting Meeting of 54.36% Shareholders (Announcement No.: 2024-015) on 20242024 of Shareholders Shareholde Securities Times and CNINFO rs (www.cninfo.com.cn).Extraordin The First For details please refer to the Announcement on ary Extraordinary Resolutions of the First Extraordinary General General December December General Meeting 54.65% Meeting of Shareholders in 2024 (Announcement Meeting of 19 2024 20 2024 of Shareholders No.: 2024-037) on Securities Times and CNINFO Shareholde in 2024 (www.cninfo.com.cn).rs 2. Preferred shareholders with resumed voting rights request to convene an Extraordinary General Meeting of Shareholders □ Applicable□ Not applicable V. Directors Supervisors and Senior Executives 1. Basic information Endi Numb Numbe Othe Numb ReasNumber ng er of r of r er of ons Starting of Gen Ag Service date shares decreas incre shares for Name Position date of increase der e status of held at ed ase/d at the the tenure d shares tenu the shares ecrea end of increin the re begin in the se the ase/dperiod ning period (shar perio ecrea 39Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. of the (share) (share) e) d se of period (share share (share ) s ) Fu Mal In September 52 Chairman 0 0 0 0 0 - Chunlong e office 7 2018 Hong Mal In September 51 Director 0 0 0 0 0 - Wenya e office 13 2021 Mal In April 29 Yang Xi 44 Director 0 0 0 0 0 - e office 2022 Huang Mal In September 38 Director 0 0 0 0 0 - Liang e office 15 2022 Huang Fem In October 42 Director 0 0 0 0 0 - Tianyang ale office 12 2023 Chief Huang Fem In August 2 42 Financial 0 0 0 0 0 - Tianyang ale office 2023 Officer Hu Mal Independen In January 4 6000000- Yuming e t director office 2018 Jiang Mal Independen In September 6200000- Dinghang e t director office 7 2018 Zhang Mal Independen In September 5100000- Dong e t director office 7 2018 Chairman Guo Mal In September 61 of Board of 0 0 0 0 0 - Xiaodong e office 7 2018 Supervisors Dai Mal In May 18 49 Supervisor 0 0 0 0 0 - Zhiwei e office 2023 Fem In May 18 Ye Cao 40 Supervisor 0 0 0 0 0 - ale office 2023 Liu Fem Employee Resigne September 5600000- Haicheng ale Supervisor d 7 2018 Zhang Mal Employee Resigne September 4100000- Zheng e Supervisor d 7 2018 Deputy Tan Mal Secretary In September 5700000- Zhong e of Party office 7 2018 Committee Deputy Mal In October Xie Jing 60 General 0 0 0 0 0 - e office 25 2018 Manager Deputy Mal In September Qi Peng 52 General 0 0 0 0 0 - e office 29 2021 Manager Secretary Mal of the In December Qi Peng 52 0 0 0 0 0 - e Board of office 28 2015 Directors Total -- -- -- -- -- -- 0 0 0 0 0 -- Note: The terms of office for the 10th Board of Directors and the Board of Supervisors of the Company have expired. As the preparation for nominating candidates for the new Board of Directors and the Board of Supervisors is still underway and to ensure the continuity and stability of the work of the Board of Directors and the Board of Supervisors the election of the Board of Directors and the Board of Supervisors of the Company will 40Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. be postponed and the terms of office for the special committees under the Board of Directors and the senior executives of the Company will also be extended accordingly. For details please refer to the Indicative Announcement on the Postponement of the Election of the Board of Directors and the Board of Supervisors (Announcement No.: 2024-033) disclosed by the Company on Securities Times and CNINFO (http://www.cninfo.com.cn) on November 27 2024.Were there any resignations of directors or supervisors and dismissal of senior executives during the reporting period □Yes □ No Mr. Zhang Zheng the former Employee Supervisor of the Company applied to resign from his position as an Employee Supervisor of the 10th Board of Supervisors due to work arrangements.For details please refer to the Announcement on the Resignation of the Employee Supervisor of the Company (Announcement No.: 2024-013) published by the Company on April 9 2024 via Securities Times and CNINFO (www.cninfo.com.cn).Ms. Liu Haicheng the former Employee Supervisor of the Company applied to resign from her position as an Employee Supervisor of the 10th Board of Supervisors due to reaching the statutory retirement age. For details please refer to the Announcement on the Resignation of the Employee Supervisor (Announcement No.: 2024-32) published by the Company on November 5 2024 via Securities Times and CNINFO (www.cninfo.com.cn). Change of Directors Supervisors and Senior Executives of the Company □Applicable □ Not applicable Name Position Type Date Reason Zhang Employee Resigning from the position of Employee Resigned April 9 2024 Zheng Supervisor Supervisor due to work arrangements Resigning from the position of Employee Liu Employee Resigned November 5 2024 Supervisor due to reaching the statutory Haicheng Supervisor retirement age 2. Employment Professional background the main work experience and the current main duties of the Company's incumbent directors supervisors and senior executives Name Main Work Experience and Employment Born in 1973 he holds a master's degree and is a senior human resource manager. He once served as a Deputy Working Group Leader at Shenzhen SDG Huatong Packaging Co. Ltd. Deputy Business Manager Business Manager Deputy Fu Director and Director of the Human Resources Department of Shenzhen Special Economic Zone Development Group Chunlong Co. Ltd. Vice President of Shenzhen Special Economic Zone Development Group Co. Ltd. Supervisor of Shenzhen State-Owned Duty Free Commodity (Group) Co. Ltd. and Supervisor of the Company. He is currently the Secretary of the Party Committee and Chairman of the Board of Directors of the Company.Born in 1974 he holds a master's degree and is a senior accountant certified public accountant and Certified Internal Auditor (CIA). He once served as Financial Manager of the Business Department and Audit Manager of the Supervision Hong and Audit Headquarters of Guosen Securities Co. Ltd. Chief Financial Officer of Shenzhen Institute of Building Wenya Research Co. Ltd. Deputy Director of the Finance Department of Shenzhen Yuanzhi Investment Co. Ltd. official responsible for the budget management and financial supervision of municipal state-owned enterprises at the Statistics and Budget Department of the State-owned Assets Supervision and Management Commission of Shenzhen Municipal People's Government and Deputy Director of the Finance Department and Director of the Compliance Risk Control 41Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Department of Shenzhen Kunpeng Capital Co. Ltd. He is currently a Member of the Party Committee Director and Chief Financial Officer of Shenzhen Special Economic Zone Development Group Co. Ltd. and a Director of the Company.Born in 1981 he holds a master's degree. He successively held the posts of Engineer of AVIC SCC Business Manager of the Secretariat of the Board of Directors of Shenzhen SDG Information Co. Ltd. Senior Director of the Asset Management Department of Shenzhen Yantian Port Holdings Co. Ltd. Secretary of the Board of Directors of Shenzhen YangXi Unilumin Technology Co. Ltd. and Capital Operation Manager of the Office of the Secretary of the Board of Directors Capital Operation Manager of the Strategic Investment Department and Deputy General Manager of the Strategic Investment Department of Shenzhen Special Economic Zone Development Group Co. Ltd. He is currently General Manager of the Strategic Investment Department of Shenzhen Special Economic Zone Development Group Co. Ltd. and a Director of the Company.Born in 1987 he holds a bachelor's degree in economics. He also holds the SZSE Qualification Certificate for Secretary of the Board of Directors and the Securities Qualification Certificate. He successively worked at the Nanshan District Administration of Work Safety Shenzhen Qixin Construction Group Co. Ltd. Hong Kong Litong International Holdings Huang (Group) Limited and China Baoan Group Co. Ltd. In May 2017 he joined Shenzhen Special Economic Zone Liang Development Group Co. Ltd. and successively served as Office Secretarial Manager Senior Secretarial Manager and Deputy Office Director (presiding over the work) and Director. He is currently General Manager of the Enterprise Management and Legal Affairs Department (Board Secretary Office) of Shenzhen Special Economic Zone Development Group Co. Ltd. and a Director of the Company.Born in December 1983 she has a bachelor's degree in management and is a non-practicing certified public accountant tax advisor and intermediate accountant. She successively served as an auditor at Baker Tilly China Certified Public Huang Accountants Shenzhen Branch a specialist responsible for consolidated statements at the Finance Department of the Tianyang Company and Accounting Manager Senior Accounting Manager and Deputy General Manager of the Financial Management Department of Shenzhen Special Economic Zone Development Group Co. Ltd. She currently serves as the Company's Director and Chief Financial Officer.Born in 1965 he holds a doctor's degree and is a professor of accounting. He successively worked as a teaching assistant lecturer and associate professor at the School of Economics of Xiamen University an associate professor at the Hu Management School of Jinan University Deputy Director and Director of the Accounting Department of the Yuming Management School of Jinan University Deputy Dean of the International School of Jinan University and Deputy Dean of the Management School of Jinan University. He is currently a professor and doctoral supervisor at the Management School of Jinan University an Independent Director of By-Health Co. Ltd. and an Independent Director of the Company.Born in 1963 he holds a master's degree and is a lawyer. He once served as Director of the Regulation Consultation Department of Shenzhen Social Security Bureau Deputy Director of the Office of Shenzhen Labor Bureau Office Jiang Director of Shenzhen Special Economic Zone Development Group Co. Ltd. Chairman of Shenzhen SDG Songli Co.Dinghang Ltd. Party Branch Secretary Chairman and General Manager of Shenzhen Communication Industry Co. Ltd. and an apprentice lawyer at Guangdong Zhong An Law Office. He is now a Honorary Partner of Shanghai AllBright (Shenzhen) Law Firm an arbitrator at the Shenzhen Court of International Arbitration and a representative to the Seventh Party Congress of Shenzhen. He is an independent director of the Company.Born in 1974 he has a doctor's degree and is a postdoctoral fellow in economics professorate senior economist senior gold investment analyst and GIA research gemologist. He once served as Deputy General Manager of Shenzhen Zhang Qiangzhuang Computer Technology Co. Ltd. Deputy General Manager of Shenzhen Brain Times Economy and Culture Dong Co. Ltd. Assistant to the President of Hong Kong Leader Culture Media Co. Ltd. General Manager of ShenzhenZhongshi Advertising Co. Ltd. General Manager of Heilongjiang Liuguifu Jewelry Co. Ltd. and President of Liuguifu Jewelry Group Co. Ltd. He serves as Chairman of the Board of Chaozuan Jewelry (Shenzhen) Co. Ltd. and Chairman of the Board of Kunmi Brand Culture (Hainan) Co. Ltd. and an independent director of the Company.Born in 1964 he holds a master's degree and is a senior economist. He once served as Deputy General Manager of Shenzhen SDG Development Center Construction Supervision Company Director and General Manager of Shenzhen Guo SDG Development Center Property Management Company Deputy General Manager of Shenzhen SDG Property Co.Xiaodong Ltd. Chairman of the Board of Supervisors of Shenzhen SDG Real Estate Co. Ltd. and Chairman of the Board of Supervisors of Shenzhen SDG Xiaomeisha Tourism Development Co. Ltd. During the reporting period he served as Chairman of the Board of Supervisors of the Company.Born in 1976 he is a member of the Communist Party of China with a bachelor's degree. He holds the titles of certified public accountant accountant and economist. He once served as Deputy General Manager and Chief Financial Officer of Dai Zhiwei Guangdong Kaisa Jiayun Technology Co. Ltd. Manager of the Finance Department and Strategic Operation Department of Shenzhen SDG Real Estate Co. Ltd. and Deputy General Manager of the Financial Management Department of Shenzhen Special Economic Zone Development Group Co. Ltd. He is currently Chief Financial Officer of Shenzhen SDG Service Co. Ltd. and a Supervisor of the Company.Born in 1985 she is a member of the Communist Party of China with a bachelor's degree and an intermediate YeCao accountant. Previously she was the head of the Audit Department of Shenzhen SDG Information Co. Ltd. She is currently the Deputy General Manager of the Audit Risk Management Department of Shenzhen Special Economic Zone Development Group Co. Ltd. and a Supervisor of the Company.Tan Zhong Born in 1968 he holds a bachelor's degree and has a lawyer qualification certificate and an enterprise legal counsel 42Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. qualification certificate. He once served as a legal counsel of Shenzhen Auto Motive Industry & Trade General Company Deputy Director of the Secretariat of the Board of Directors Legal Affairs Representative and Manager of the Enterprise Management Department of the Company and General Manager and Secretary of the Party General Branch of Shenzhen SDG Huari Automobile Enterprise Co. Ltd. He currently serves as the Company's Deputy Secretary of the Party Committee and Chairman of the Trade Union.Born in 1965 he is a Canadian and holds a bachelor's degree in Engineering. He is a senior engineer and certified supervision engineer. He once served as a structural engineer at Hunan Light Industry Design Institute an engineer at the Hunan Branch of the Bank of China General Manager Assistant of the Real Estate Department and Manager of the Xie Jing Engineering Department of Shenzhen Special Economic Zone Development Group Co. Ltd. Deputy General Manager of Shenzhen Jincheng Real Estate Group Co. Ltd. Executive President of Shenzhen Jiaanda Investment Group Co. Ltd.and General Manager of Land Reserve Center of Weiye Holdings Ltd. He currently serves as Deputy General Manager of the Company.Born in 1973 he holds a master's degree and is an economist. He has obtained the SZSE Qualification Certificate for Secretary of the Board of Directors. He once served as the Secretary of the Chairman and the head of the Information Center of Shenzhen Special Economic Zone Development Group Co. Ltd. Deputy Director of the Secretariat of the Qi Peng Board of Directors Deputy Manager of the Enterprise Management Department and Manager of the Business Department of the Automobile Business Division of Shenzhen Tellus Holding Co. Ltd. General Manager of Shenzhen Tellus Automobile Service Chain Co. Ltd. General Manager of Shenzhen Tellus Xinyongtong Automobile Development Co. Ltd. and Director of the Secretariat of the Board of Directors of the Company. He currently serves as Deputy General Manager and Secretary of the Board of Directors of the Company.Employment at shareholder units □Applicable □ Not applicable Whether there is Ending compensation or Position in the shareholder Individual Shareholder unit Starting date of tenure date of allowance in the unit tenure shareholder unit or not Shenzhen Special Member of the Party Economic Zone Hong Wenya Committee Director and June 15 2021 Yes Development Group Chief Financial Officer Co. Ltd.Shenzhen Special General Manager of Economic Zone Yang Xi Strategic Investment December 6 2021 Yes Development Group Department Co. Ltd.General Manager of the Shenzhen Special Enterprise Management Economic Zone Huang Liang and Legal Affairs April 16 2024 Yes Development Group Department (Board Co. Ltd.Secretary Office) Shenzhen Special Economic Zone Deputy General Manager Ye Cao February 1 2023 Yes Development Group of Audit Department Co. Ltd.Conditions on service in The positions of the Company's directors supervisors and senior executives in other units are those of non- shareholder holding subsidiaries of the Company.unit Employment at other units □Applicable □ Not applicable Whether there is Position held in other Starting date of Ending date of compensation or Individual Name of other units units tenure tenure allowance in the other units or not Shenzhen SDG October 28 October 27 Hong Wenya Director No Information Co. Ltd. 2024 2027 43Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Shenzhen SEZ November 29 Hong Wenya Construction Group Co. Supervisor No 2021 Ltd.Shenzhen SDG October 28 October 27 Yang Xi Director No Information Co. Ltd. 2024 2027 Shenzhen Zhishenggao Yang Xi Technology Development Chairman June 26 2023 No Co. Ltd.Shenzhen SDG Property November 20 Dai Zhiwei Asset Management Co. Director No 2024 Ltd.Shenzhen Shenshan Special Cooperation February 9 Dai Zhiwei Supervisor No Zone SDG Saige 2023 Technology Co. Ltd.Shenzhen SDG Service October 24 Dai Zhiwei Chief Financial Officer Yes Co. Ltd. 2024 Shenzhen SDG Shengao November 10 Ye Cao Club Management Co. Supervisor No 2023 Ltd.Shenzhen SDG October 28 October 27 Ye Cao Supervisor No Information Co. Ltd. 2024 2027 Shenzhen Microgate Chairman of Board of Ye Cao April 24 2023 April 20 2026 No Technology Co. Ltd. Supervisors Professor and Doctoral Hu Yuming Jinan University Supervisor of the June 1 2003 Yes School of Management August 24 August 23 Hu Yuming By-Health Co. Ltd. Independent director Yes 20232026 Shanghai Allbright Jiang Dinghang Senior Partner April 1 2005 Yes (Shenzhen) Law Offices Shenzhen Court of Jiang Dinghang Arbitrator No International Arbitration Chaozuan Jewelry December 12 ZhangDong Chairman Yes (Shenzhen) Co. Ltd. 2024 Kunmi Brand Culture October 25 ZhangDong Chairman Yes (Hainan) Co. Ltd. 2022 Conditions on The positions of the Company's directors supervisors and senior executives in other units are those of non- service in other holding subsidiaries of the Company.units Penalties imposed by securities regulatory institution in past three years on directors supervisors and senior executives who are in- service and left their posts during the reporting period □ Applicable□ Not applicable 3. Compensation of Directors Supervisors and Senior Executives The decision-making procedures determination basis and actual payment of the compensation of directors supervisors and senior executives shall be implemented in strict accordance with the Company's Detailed Rules for the Implementation of Compensation and Appraisal Committee of the Board of Directors Management Measures for Compensation and Performance of the Management Team Compensation Management System for Headquarters Staff Performance Management Measures for Headquarters Staff and other relevant systems.Compensation of the directors supervisors and senior executives of the Company during the reporting period Unit: RMB 10000 44Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Whether to Total receive compensation Gende compensation Name Age Position Service status before tax r from related received from the parties of the Company Company Fu Chunlong Male 52 Chairman In office 93.48 No Hong Wenya Male 51 Director In office 0 Yes Yang Xi Male 44 Director In office 0 Yes Huang Liang Male 38 Director In office 0 Yes Femal Director Chief Financial Huang Tianyang 42 In office 60.39 No e Officer Hu Yuming Male 60 Independent director In office 8 No Jiang Dinghang Male 62 Independent director In office 8 No Zhang Dong Male 51 Independent director In office 8 No Chairman of Board of Guo Xiaodong Male 61 In office 0 No Supervisors Dai Zhiwei Male 49 Supervisor In office 0 Yes Femal Ye Cao 40 Supervisor In office 0 Yes e Femal Liu Haicheng 56 Employee Supervisor Resigned 25.5 No e Zhang Zheng Male 41 Employee Supervisor Resigned 3.38 No Deputy Secretary of Tan Zhong Male 57 In office 69.84 No Party Committee Deputy General Xie Jing Male 60 In office 123.6 No Manager Deputy General Qi Peng Male 51 Manager Secretary of In office 67.84 No the Board of Directors Total -- -- -- -- 468.03 -- Other information □ Applicable□ Not applicable VI. Duty Performance of Directors during the Reporting Period 1. Information of the Board of Directors during the reporting period Session Holding date Disclosure date Meeting's resolutions The Fifteenth For details please refer to the Announcement on Resolutions Extraordinary of the Fifteenth Extraordinary Meeting of the Tenth Board of January 11 2024 January 12 2024 Meeting of the Tenth Directors (Announcement No.: 2024-001) of Securities Board of Directors Times and CNINFO (www.cninfo.com.cn) For details please refer to the Announcement on Resolutions The Tenth Formal of the Tenth Formal Meeting of the Tenth Board of Directors Meeting of the Tenth March 26 2024 March 28 2024 (Announcement No.: 2024-005) of Securities Times and Board of Directors CNINFO (www.cninfo.com.cn) For details please refer to the Announcement on Resolutions The Eleventh Formal of the Eleventh Formal Meeting of the Tenth Board of Meeting of the Tenth April 23 2024 April 25 2024 Directors (Announcement No.: 2024-016) of Securities Board of Directors Times and CNINFO (www.cninfo.com.cn) The Twelfth Formal For details please refer to the Announcement on Resolutions Meeting of the Tenth August 20 2024 August 21 2024 of the Twelfth Formal Meeting of the Tenth Board of Board of Directors Directors (Announcement No.: 2024-022) of Securities 45Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Times and CNINFO (www.cninfo.com.cn) The Thirteenth For details please refer to the Announcement on Resolutions Formal Meeting of of the Thirteenth Formal Meeting of the Tenth Board of October 23 2024 October 24 2024 the Tenth Board of Directors (Announcement No.: 2024-026) of Securities Directors Times and CNINFO (www.cninfo.com.cn) The Sixteenth For details please refer to the Announcement on Resolutions Extraordinary December 2 of the Sixteenth Extraordinary Meeting of the Tenth Board of December 3 2024 Meeting of the Tenth 2024 Directors (Announcement No.: 2024-034) of Securities Board of Directors Times and CNINFO (www.cninfo.com.cn) 2. Attendance of directors at the Board of Directors and General Meeting of Shareholders Attendance of directors at the Board Meeting and General Meeting of Shareholders Whether they Number of Attendances Attendances have failed to attendances Attendances Attendances at the Board at the Board Times of attend the to the Board at the Name of at the Board Meeting Meeting absence at Board Meeting Meeting General Director Meeting in through through the Board in person for during the Meeting of person communicati entrusting Meeting two reporting Shareholders on tools others consecutive period times Fu Chunlong 6 2 4 0 0 No 2 Hong Wenya 6 2 4 0 0 No 0 Yang Xi 6 2 4 0 0 No 0 Huang Liang 6 2 4 0 0 No 1 Huang 6 2 4 0 0 No 2 Tianyang Jiang 6 2 4 0 0 No 1 Dinghang Hu Yuming 6 2 4 0 0 No 2 Zhang Dong 6 1 5 0 0 No 2 Explanation on failure to attend in person at the Board Meeting for two consecutive times 3. Objection to related matters of the Company by directors Whether the directors have any objection to the related matters of the Company or not □Yes□ No The directors did not raise any objection to related matters during the reporting period. 4. Other instructions on the duty performance of directors Whether the suggestions related to the Company proposed by the directors are accepted or not □Yes □ No Description on acceptance or non-acceptance of relevant suggestions related to the Company proposed by the directors During the reporting period all directors of the Company carried out their work in strict accordance with the Company Law the Securities Law the Business Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed Companies No. 1 — Standard Operation of Listed Companies on the Main Board and other laws regulations and normative documents as well as the Articles of Association and the Rules of Procedure of the Board of 46Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Directors and were faithful to their duties diligent and responsible. They all actively attended the Board Meeting understood the operational substance of the matter under consideration carefully reviewed and discussed various proposals and put forward targeted suggestions for the Company's internal control operation management and strategic layout. In accordance with the relevant provisions of the Measures for the Administration of Independent Directors of Listed Companies the independent directors of the Company give full play to their own professional knowledge make independent and impartial judgments carry out effective supervision on the financial production and operation activities and information disclosure of the Company play a positive role in the scientific decision-making and standardized operation of the Board of Directors and effectively safeguard the legitimate rights and interests of the Company and all shareholders. The Company listens carefully to the suggestions put forward by the directors and actively adopts reasonable suggestions that meet the development of the Company.VII. Special Committees Set under the Board of Directors during the Reporting Period Numb Important Other Name er of comments perfor Details of of Members meeti Holding date Content of meeting and mance objection Commi ngs suggestion of s (if any) ttee held s duties 1. Proposal on the Development of January 10 Being Hedging Business by Holding - - 2024 approved Subsidiary 1. Announcement on the preliminary January 18 Being arrangements for auditing the 2023 - - 2024 approved annual financial report 1. 2023 Annual Report and Summary Audit 2. 2023 Annual Internal Control Self- Fu Commi evaluation Report Chunlong March 25 Being ttee of 3. Report on Evaluation of Accounting - - Hong 2024 approved the Firm's Performance and Audit Wenya Hu Tenth 6 Committee's Performance of Yuming Board Supervisory Responsibilities in 2023 Jiang of Dinghang April 22 Being Directo 1. Q1 Report of 2024 - - Zhang Dong 2024 approved rs 1. 2024 Semi-annual Report 2. Proposal on Changes in Accounting August 19 Being Estimates - - 2024 approved 3. Proposal on Amending the Accounting System 1. Q3 Report of 2024 October 22 Being 2. Proposal on renewal of the - - 2024 approved Company's annual audit institution Compe Fu 1. Proposal on Performance IndicatorsMarch 26 Being nsation Chunlong of the Company's Management Team in - -2024 approved and Hong 3 2024 Apprai Wenya Hu October 21 1. Proposal on the Probationary Being sal Yuming - -2024 Assessment Results of the Company's approved 47Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Commi Jiang Chief Financial Officer ttee of Dinghang 1. Proposal on the Performance the Zhang Dong Assessment Results of the Company's Tenth December 2 Management Team in 2023; 2. Proposal Being Board - - 2024 on Approval and Payment of Project approved of Bonuses for Some Members of the Directo Management Team rs VIII. Work of the Board of Supervisors Whether the Board of Supervisors found any risks in the Company during its oversight activities in the reporting period.□Yes□ No The Supervisory Board has no objections to the oversight matters during the reporting period.IX. Employees of the Company 1. Number of employees professional composition and level of education Number of existing employees in the parent company at the end of 104 the reporting period (person) Number of existing employees in the main subsidiaries at the end of 56 the reporting period (person) Total number of existing employees at the end of the reporting 160 period (person) Total number of employees payable in current period (person) 185 Number of retired employees with expenses incurred by the parent 0 company and main subsidiaries (person) Professions Type of professions Number of professional persons (person) Production personnel 0 Sales personnel 34 Technician 12 Financial personnel 15 Administrative personnel 99 Total 160 Level of education Category Number of employees (person) Master's degree and above 30 Bachelor's degree 93 Junior college and below 37 Total 160 2. Compensation policy The Company shall strictly follow the Compensation Management System for Headquarters Staff Performance Appraisal Management System for Headquarters Staff and other systems. 48Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3. Training plan The Company attaches great importance to employee training. During the reporting period it established an employee training system improved the new employee training manual and produced a new employee training courseware package; organized induction training for new employees and face-to-face discussions with senior executives and capacity improvement training for middle-level managers; established a mentor system for new employees; and helped improve professional skills through online books offline magazines and professional training. 4. Labor outsourcing □ Applicable□ Not applicable X. Profit Distribution and Capital Reserve Converted into Share Capital of the Company Preparation implementation or adjustment of the profit distribution policy during the reporting period especially the cash dividend policy □Applicable □ Not applicable The Company attaches great importance to the reasonable return to investors. The Articles of Association specifies the standards and proportions of cash dividends decision-making procedures and mechanisms and the form of profit distribution. The Company strictly implements the Articles of Association and the resolutions of the General Meeting of Shareholders. The standards and proportions of dividend distribution are clear and definite the relevant decision-making procedures and mechanisms are complete the minority shareholders have the opportunity to fully express their opinions and demands and the legitimate rights and interests of minority shareholders are fully safeguarded.Special Explanation on Cash Dividend Policy Whether it complies with the provisions of the Articles of Association or the Yes requirements of resolutions of the general meeting of shareholders: Whether the dividend standards and proportions are definite and clear: Yes Whether the relevant decision-making processes and mechanisms are complete: Yes Whether the independent directors perform their duties and play their due role: Yes If the Company does not make cash dividends it shall disclose the specific reasons and N/A the next measures to be taken to enhance the level of returns for investors: Whether the minority shareholders have the opportunity to fully express their opinions Yes and demands and whether their legitimate rights and interests are adequately protected Whether the conditions and procedures for adjusting and changing the cash dividend N/A policy are compliant and transparent: During the reporting period the Company had profits and the parent company had positive distributive profit for shareholders; however the cash bonus distribution pre-plan was not proposed □ Applicable□ Not applicable 49Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Profit distribution and capital reserve converted into share capital during the reporting period □Applicable □ Not applicable Number of bonus shares per 10 shares (share) 0 Number of dividends per 10 shares (RMB) (tax-inclusive) 1 Base of share capital in distribution pre-plan (share) 431058320 Amount of cash dividends (RMB) (tax-inclusive) 43105832.00 Amount of cash dividends in other ways (such as share repurchase) 0.00 (RMB) Total amount of cash dividends (including other ways) (RMB) 43105832.00 Distributable profit (RMB) 92397334.74 The proportion of total cash dividends (including other ways) to total 100% profit distribution Cash dividends for the current reporting period Others Description of details on pre-plan of profit distribution or transfer from capital reserve to share capital To actively benefit shareholders and enable investors to participate in and share the operating results of the Company's development according to the Articles of Association the Shareholder Return Plan for the Next Three Years (2023-2025) of the Company the Stock Listing Rules of the Shenzhen Stock Exchange and other regulations on cash dividends and by taking into account the Company's future strategic layout and other capital expenditure needs the Company planned to distribute a cash dividend of RMB 1 (including tax) for every 10 shares to all shareholders based on the total share capital of 431058320 shares as of December 31 2024 with a total cash dividend of RMB 43105832.00 without bonus shares or capital increase. This profit distribution plan shall be implemented after being reviewed and approved by the General Meeting of Shareholders.XI. Implementation of the Company's Equity Incentive Plan Employee Stock Ownership Plan or Other Employee Incentive Measures □ Applicable□ Not applicable During the reporting period there was no equity incentive plan employee stock ownership plan or other employee incentive measures and their implementation for the Company.XII. Establishment and Implementation of Internal Control System during the Reporting Period 1. Establishment and implementation of internal control During the reporting period the Company strictly complied with the requirements of the Company Law the Articles of Association and the Basic Standard for Enterprise Internal Control and aligned with industry characteristics and the Company’s actual operations to continue to establish improve and refine its internal control system. Efforts were made to strengthen internal audit supervision enhance internal control training and awareness and promote a culture of compliance operations. These measures ensured the effective implementation of internal control mechanisms enhanced standardized operations and supported the Company's healthy and sustainable development. Throughout the reporting period the Company's internal control systems were effectively executed with no material deficiencies in internal control identified. The expected 50Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. internal control objectives were met safeguarding the interests of the Company and all shareholders.Based on the identification of significant deficiencies in the Company's internal control as of the base date of the Internal Control Evaluation Report the Company had no significant deficiencies in internal control over financial and non-financial reporting in 2024. The Company has maintained effective internal control in all material aspects in accordance with the requirements of its internal control standard system and relevant regulations. 2. Details about material deficiencies in internal control during the reporting period □Yes□ No XIII. Management Control over the Subsidiaries during the Reporting Period Problems Integration Integration Progress of Follow-up Company name encountered in Solution taken plan progress resolution resolution plan integration N/A N/A N/A N/A N/A N/A N/A XIV. Internal Control Evaluation Report or Auditor's Report on Internal Control 1. Internal control evaluation report Disclosure date of the internal March 28 2025 control evaluation report Disclosure index of the internal For details please refer to the 2024 Annual Internal Control Self-evaluation Report control evaluation report disclosed by the Company on CNINFO (http://www.cninfo.com.cn) Proportion of total unit assets included in the evaluation scope to 100.00% total assets from the Company's consolidated financial statements Proportion of unit operating revenue included in the evaluation scope to operating revenue from 100.00% the Company's consolidated financial statements Deficiency identification standards Type Financial reports Non-financial reports 1. Material deficiencies: A deficiency or a 1. Material deficiencies: A deficiency combination of deficiencies that results in the shall be deemed material if any of the inability to promptly prevent detect or correct following circumstances apply: (1) material misstatements in financial reports. The Major decisions are made in violation of following circumstances shall be identified as the Company's prescribed procedures Qualitative standards material deficiencies in internal control: (1) resulting in significant losses to the Management fraud resulting in material Company; (2) Serious violations of laws misstatements in financial results or the issuance or regulations that cause significant of false financial reports thereby misleading losses to the Company; (3) Lack of users of financial statements causing decision- institutional control over key business making errors and leading to litigation; (2) operations or systematic failure of 51Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ineffectiveness of the control environment; (3) internal control systems; (4) Severe loss Failure to rectify significant internal control of core management personnel or key deficiencies reported to management within a technicians; (5) Failure to rectify reasonable period; (4) Failure to follow material deficiencies identified in appropriate decision-making procedures for internal control evaluations; (6) Failure major corporate matters resulting in significant of internal control over information losses to the Company; (5) Lack of effective disclosure resulting in public censure control over key business activities related to the by regulatory authorities.Company's production and operations; (6) Other 2. Significant deficiencies: A deficiency deficiencies that seriously mislead users of shall be deemed significant if it has any financial statements resulting in significant of the following characteristics: (1) compensation for the Company. Violation of internal corporate 2. Significant deficiencies: A deficiency or a regulations resulting in substantial combination of deficiencies that results in the losses; (2) Significant loss of personnel inability to promptly prevent detect or correct in key business positions; (3) misstatements in financial reports. Although Deficiencies in the Company's critical these misstatements do not reach or exceed the business systems or procedures; (4) materiality threshold they should still draw the Failure to rectify significant deficiencies attention of management. The following identified in the Company's internal circumstances shall be identified as significant control.deficiencies in internal control: (1) Failure to 3. General deficiency refers to other select and apply accounting policies in deficiencies in control other than the accordance with generally accepted accounting above-mentioned material deficiency principles; (2) Failure to establish anti-fraud and significant deficiency.procedures and control measures; (3) Absence or lack of implementation of appropriate control mechanisms for the accounting treatment of non-routine or special transactions and no corresponding compensation controls in place; (4) One or more deficiencies in the control over the period-end financial reporting process that do not provide reasonable assurance that the financial statements are prepared truthfully and accurately. 3. General deficiency refers to other deficiencies in control other than the above-mentioned material deficiency and significant deficiency. 1. Material deficiencies: the amount of loss > 1.5% of the equity of the owner 1. Material deficiencies: misstatement > 10% of of the parent company and the absolute the total profit and the absolute amount > RMB amount > RMB 10 million; 10 million; 2. Significant deficiencies: 0.5% of 2. Significant deficiencies: 5% of the total profit equity of the owner of the parent < misstatement ≤ 10% of the total profit and the company < loss amount ≤ 1.5% of Quantitative standards absolute amount > RMB 5 million; or RMB 5 equity of the owner of the parent million < absolute amount ≤ RMB 10 million company or RMB 5 million < absolute and the misstatement amount > 5% of the total amount ≤ RMB 10 million; profit; 3. General deficiencies: misstatement ≤ 3. General deficiencies: the amount of 5% of the total profit or the absolute amount ≤ loss ≤ 0.5% of equity of the owner of RMB 5 million.the parent company or the absolute amount ≤ RMB 5 million.Number of material deficiencies in 0 the financial report (Nr.) Number of material deficiencies in 0 the non-financial report (Nr.) Number of significant deficiencies 0 in the financial report (Nr.) 52Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Number of significant deficiencies 0 in the non-financial report (Nr.) 2. Auditor's report on internal control □Applicable □ Not applicable Review opinion paragraph in auditor's report on internal control In our opinion the Company maintained in all material respects effective internal control over financial reporting as at December 31 2024 in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations. Disclosure of auditor's report on internal control Disclosure Disclosure date of auditor's report on internal control March 28 2025 Disclosure index of auditor's report on internal control CNINFO (http://www.cninfo.com.cn) Type of opinion in auditor's report on internal control Standard unqualified opinion Whether there are material deficiencies in the non-financial No report Whether the accounting firm issues a non-standard opinion in the auditor's report on internal control □Yes□ No Whether the auditor's report on internal control issued by the accounting firm is consistent with the self-evaluation report of the Board of Directors □Yes □ No XV. Rectification of Problems Identified in the Self-inspection over the Listed Company's Special Governance Measures N/A 53Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section V Environmental and Social Responsibility I. Major Environmental Protection Issues Whether the listed company and its subsidiaries belong to the key pollutant discharge units announced by the environmental protection department □Yes□ No Administrative punishment imposed for environmental problems during the reporting period Impact on the production and Rectification Name of company or Reason for Violation Penalty operation of the listed measures of the subsidiary punishment company company None None None None None None Refer to other environmental information disclosed by key pollutant discharge units: The Company and its subsidiaries were not subject to administrative penalties due to environmental problems during the reporting period.Measures to reduce carbon emissions during the reporting period and effects □ Applicable□ Not applicable Reasons for failure to disclose other environmental information The Company and its subsidiaries are not key pollutant discharge units announced by the environmental protection department and there was no punishment due to violations of laws and regulations during the reporting period.II. Social Responsibilities The Company prioritized employee health by organizing the 2024 annual physical examination program; implemented labor union welfare support by visiting and offering care to over 20 employees; carried out a variety of labor union activities; and managed the allocation of talent housing and public rental housing helping young employees settle down.III. Details on Consolidating and Expanding Its Achievements in Poverty Alleviation and Rural Revitalization The Company's Party Committee actively responded to the higher-level Party organization's arrangements for implementing the national rural revitalization strategy. In 2024 the Company allocated over RMB 100000 to purchase poverty alleviation products. Additionally from 2021 to August 2024 the Company dispatched one Party member to Shangyan Village Chengtian Town Shantou City to support rural revitalization efforts with a service period exceeding three years. 54Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section VI Important Matters I. Performance of Commitments 1. Commitments that have been fulfilled during the reporting period and have not yet been fulfilled as at the end of the reporting period by the Company's actual controller shareholders related parties acquirers the Company and other commitment related parties □Applicable □ Not applicable Com Com Commi mitm Perfo Commitm Commitm mitme tment Commitment content ent rman ent cause ent type nt party perio ce time d The Company will maintain the independence of the listed company and maintain personnel independence institutional Shenzh independence financial independence and asset integrity with en Ensure the the listed company. The listed company will still have Invest independe independent operation ability independent procurement ment nce of production and sales system and independent intellectual Holdin listed property rights.gs Co. companies In case of violation of the above commitments the Company Ltd. will bear corresponding legal responsibilities including but not limited to compensation for all losses caused to the listed company. 1. As of the signing date of this Letter of Commitment the Durin Company and other enterprises controlled by the Company have g the not engaged in business and activities that are in direct perio competition with or may constitute direct competition with d of Tellus and will not engage in business and activities that are in Commitm being direct competition with or may constitute direct competition ent made an with Tellus in the future (except those arranged based on in Dece indire In Shenzhen SASAC or similar government agencies); acquisition mber ct perfo 2. During the period of being the indirect controlling report or 30 contr rman shareholder of Tellus and during Tellus' listing on the Shenzhen report of Shenzh 2022 olling ce Stock Exchange the Company will fully respect the equity en share Avoid independent operation autonomy of all subsidiaries controlled change Invest holde horizontal by the Company and ensure that the legitimate rights and ment r of competitio interests of Tellus and its minority shareholders will not be Holdin the n infringed; gs Co. Com 3. The Company promises not to seek illegitimate interests with Ltd. pany the status of controlling shareholder of Tellus thus damaging the rights and interests of Tellus and its minority shareholders; 4. The Company promises not to assist any party to engage in any business activities that are in substantial competition or potential competition with the main business of Tellus by using the information learned or known from Tellus; 5. If the Company or other enterprises controlled by the Company violate the above commitments and guarantees the Company shall bear the economic losses caused to the listed company.Shenzh Reduce 1. The Company and the companies enterprises and economic en and organizations controlled or actually controlled by the Company 55Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Invest standardiz (excluding enterprises controlled by listed companies ment e related hereinafter collectively referred to as "affiliated companies") Holdin party will exercise the rights of shareholders fulfill the obligations of gs Co. transaction shareholders and maintain the independence of listed Ltd. s companies in terms of assets finance personnel business and institutions in strict accordance with the provisions of laws regulations and other normative documents; 2. The Company promises not to use its position as a controlling shareholder to urge the General Meeting of Shareholders or the Board of Directors of the listed company to make resolutions that infringe upon the legitimate rights and interests of other shareholders of the listed company; 3. The Company or its affiliated companies will try to avoid related party transactions with listed companies. If it is inevitable to have related party transactions with listed companies the Company or its affiliated companies will urge the controlled entities to trade with listed companies on an equal and voluntary basis per fair reasonable and normal commercial transaction conditions; 4. The Company or its affiliated companies will perform the decision-making procedures of related party transactions and the corresponding information disclosure obligations in strict accordance with the Articles of Association of the listed company and relevant laws and regulations; 5. The Company or its affiliated companies will ensure that they will not seek special interests beyond the above provisions through related party transactions with the listed company illegally transfer the funds and profits of the listed company through related party transactions and maliciously damage the legitimate rights and interests of the listed company and its shareholders through related party transactions. In case of violation of the above commitments the Company will bear corresponding legal responsibilities including but not limited to compensation for all losses caused to the listed company.Commitm ent made Shenzh during the en In In the future the Company will disclose relevant information Octob initial Tellus Long perfo Others regarding the progress of its new business in a timely accurate er 17 public Holdin -term rman and sufficient manner per relevant requirements. 2014 offering or g Co. ce refinancin Ltd.g Shenzhen Special Economic Zone Development Group Co.Ltd. the controlling shareholder of the Company issued the Shenzh Letter of Commitment to Avoiding Horizontal Competition on en May 26 2014. The commitments are as follows: Other Special 1. The Company and other enterprises controlled by the commitme Econo Company other than Tellus Holding are not engaged in business nts made In mic Horizontal that is in substantial competition with the main business of May for Long perfo Zone competitio Tellus Holding and there is no horizontal competition 26 minority -term rman Develo n relationship with Tellus Holding; 2014 shareholde ce pment 2. The Company and its controlled enterprises will not in any rs of the Group form directly or indirectly engage in or participate in business Company Co. that competes or may compete with the main business of Tellus Ltd. Holding; 3. If the Company and other enterprises controlled by the Company can engage in or participate in any business opportunity that may compete with the main business of Tellus 56Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Holding they shall notify Tellus Holding of the above business opportunity before implementing or signing relevant agreements. If Tellus Holding makes a positive reply within a reasonable period specified in the notice that it is willing to take advantage of the business opportunity the business opportunity will be first offered to Tellus Holding.From 2023 to 2025 the Company's profits will be first used to cover the losses of previous years; After making up for the Shenzh losses of previous years on the premise that the Company's en Dece In Other Dividend profits and cash flow meet the normal operation and long-term April Tellus mber perfo commitme commitme development of the Company the Company will implement an 27 Holdin 31 rman nts nt active profit distribution method to reward shareholders. For 2023 g Co. 2025 ce details please refer to the Shareholder Return Plan for the Next Ltd.Three Years (2023-2025) disclosed on www.cninfo.com.cn on April 27 2023.Whether the commitme nts are Yes duly performed Explanatio n of the situation where commitme N/A nts are not fulfilled within the deadline 2. If the profit forecast can be carried out for the Company's assets or projects and the reporting period is within the period of profit forecast the Company shall explain whether the assets and projects can realize the original profit forecast and specify the reasons □ Applicable□ Not applicable II. Controlling Shareholder and Other Related Parties' Occupation of Non-operating Funds of the Listed Company □ Applicable□ Not applicable Non-operating fund occupied by the controlling shareholder and other related parties towards the listed company is not identified within the reporting period of the Company.III. Illegal External Guarantees □ Applicable□ Not applicable During the reporting period the Company had no illegal external guarantees. 57Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. IV. Description of the Board of Directors on the Latest "Non-Standard Auditor's Report" □ Applicable□ Not applicable V. Description of the Board of Directors Board of Supervisors and Independent Directors (If Any) on the "Non-Standard Auditor's Report" Issued by the Accounting Firm during the Reporting Period □ Applicable□ Not applicable VI. Description of the Changes in Accounting Policies and Accounting Estimates or Correction of Major Accounting Errors as Compared with Those in the Financial Report for the Previous Year □Applicable □ Not applicable 1. Changes in significant accounting policies Refer to Note V. 28 of section 10 for changes in significant Accounting Policies . 2.Changes in material accounting estimates In response to the Company's business development and fixed asset management needs and to fairly reflect its financial position and operating results the Company has changed its accounting estimates for the depreciation period of fixed assets to better align with their actual service life.Before this change in accounting estimates the depreciation period of fixed assets is: Category Service life (year) Residual value rate Annual depreciation rate(%) (%) Premises and buildings 10 35-40 03 10 2.43-2.77 Including: Decoration of self-owned houses 10 0 10 Machinery equipment 12 3 8.08 Electronic equipment 5-7 3 13.86-19.4 Transportation equipment 7 3 13.86 Office and other equipment 7 3 13.86 After this change in accounting estimates the depreciation period of fixed assets is: Category Service life (year) Residual value rate (%) Annual depreciation rate(%) Premises and buildings 10 35-40 03 10 2.43-2.77 Including: Decoration of self-owned houses 10 0 10 Machinery equipment 10 3 9.70 Electronic equipment 3 3 32.33 Transportation equipment 7 3 13.86 Office and other equipment 5 3 19.40 58Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. VII. Explanation on Change of Scope of Consolidated Financial Statements Compared with the Financial Statement of the Previous Year □Applicable □ Not applicable On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate the liquidation and resume operations. The Company submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court for withdrawal of the compulsory liquidation application for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023] Y0391QQ No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the withdrawal of the compulsory liquidation application for SDG Huari. Consequently the Company included SDG Huari in its consolidated financial statements as of December 27 2024.VIII. Employment and Dismissal of Accounting Firm Current employed accounting firm Grant Thornton Certified Public Accountants (Special General Name of domestic accounting firm Partnership) Salary of domestic accounting firm (RMB 10000) 75 Duration of audit service provided by domestic accounting firm 2 Names of CPAs of domestic accounting firm Wu Liang Xiao Na Duration of audit service provided by CPA of domestic 2 years for Wu Liang and 1 year for Xiao Na accounting firm Whether the employment of the accounting firm will be changed during the current period □Yes□ No Employment of accounting firm financial consultant or sponsor for internal control audit □Applicable □ Not applicable The Company employed Grant Thornton Certified Public Accountants (Special General Partnership) as its 2024 annual financial and internal control audit firm. The employment term was one year and the internal control audit fee was RMB 250000.IX. Delisting after Disclosure of Annual Report □ Applicable□ Not applicable X. Matters Relating to Bankruptcy Reorganization □ Applicable□ Not applicable Matters concerning bankruptcy reorganization were not identified within the reporting period of the Company. 59Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. XI. Major Litigation and Arbitration Matters □Applicable □ Not applicable Whethe Execution r Progress Disc Amount of estimat of Discl losur Basic information of involved Litigation (arbitration) trial litigation ed litigation osure e litigation (arbitration) (RMB results and impacts (arbitratio liabiliti (arbitration date inde 10000) n) es are ) x judgment formed Dispute over land lease The second trial has been held contract (Automobile but no verdict has been issued.Industry and Trade 1403.76 No In progress It has no major effects on the - Company as the Company's production and plaintiff) operation.Project construction contract dispute The second trial was held on (Zhongtian Company as December 23 but no verdict has the defendant in the 670.44 No In progress been issued. It has no major - original claim and the effects on the Company's plaintiff in the production and operation.counterclaim) On November 19 2024 the Dispute over Company received a court endowment insurance ruling dismissing the plaintiff's treatment (Automobile 156.97 No Closed None lawsuit. It has no major effects Industry and Trade on the Company's production Company as defendant) and operation.The Company has filed an appeal and the second trial has Unjust enrichment been held but no verdict has dispute (the Company as 175.94 No In progress - been issued. It has no major the plaintiff) effects on the Company's production and operation.XII. Punishment and Rectification □ Applicable□ Not applicable No punishment or rectification was identified within the reporting period of the Company.XIII. Integrity Situation of the Company and its Controlling Shareholder and Actual Controller □ Applicable□ Not applicable XIV. Major Related Party Transactions 1. Related party transactions concerning daily operations □Applicable □ Not applicable Related Rela Type Cont Prici Price Amou Propo Appro Excee Settle Marke Disclo Disclos transaction ted- of ent ng of nt of rtion ved d the ment t price sure ure 60Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. party part relate of princ relate relate to transa appro metho of date index y d relat iple d d transa ction ved ds of availa relat party ed of party party ction amou amou relate ble ions trans party relat transa transa amou nt nt or d simila hip actio trans ed ction ction nt of (RMB not party r n actio party (RMB the 1000 transa transa n trans 1000 same 0) ction ction actio 0) kind n A Dire ctor of Accor Provi the Daily ding Shenzhen de Com relate to the Renfu prop Mar pany d contra Tellus erty ket 545.0 545.0 545.0 conc party 1.92% 545 No ct Automobil leasi prici 0 0 0 urre trans amou es Service ng ng ntly actio nt or Co. Ltd. servi serv ns agree ces es as ment its Dire ctor Announ Subs Accor Provi cement Shenzhen idiar Daily ding de on SDG y of relate to the prop Mar Daily Tellus cont d contra erty ket Related Property rolli party 17.20 17.20 0.06% 18 No ct 17.20 leasi prici Party Manageme ng trans amou ng ng Transac nt Co. shar actio nt or servi tions in Ltd. ehol ns agree ces 2024 der ment March (Annou 28 Provi ncemen 2024 de t No.: Subs Accor prop 2024- idiar Daily ding erty 009) of Shenzhen y of relate to the leasi Mar Securiti SDG cont d contra ng ket 132.7 132.7 132.7 es Microfinan rolli party 0.47% 503 No ct and prici 9 9 9 Times ce Co. ng trans amou mana ng and Ltd. shar actio nt or geme CNINF ehol ns agree nt O der ment servi ces Provi Subs de Accor idiar Daily prop ding Shenzhen y of relate erty to the SDG Mar cont d leasi contra Service ket 426.7 426.7 426.7 rolli party ng 1.50% 542 No ct Co. Ltd. prici 5 5 5 ng trans and amou and its ng shar actio parki nt or branches ehol ns ng agree der servi ment ces Shenzhen A Daily Provi Mar 30.00 30.00 100.0 30 No Accor 30.00 61Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Telixing Dire relate de ket 0% ding Investment ctor d brok prici to the Co. Ltd. of party erage ng contra the trans and ct Com actio agen amou pany ns cy nt or conc servi agree urre ces ment ntly serv es as its Dire ctor Acce Subs Accor pt Shenzhen idiar Daily ding engi SDG y of relate to the neeri Mar Engineerin cont d contra ng ket 100.0 g rolli party 84.71 84.71 140 No ct 84.71 super prici 0% Manageme ng trans amou visio ng nt Co. shar actio nt or n Ltd. ehol ns agree servi der ment ces Acce pt Subs Accor prop idiar Daily ding Shenzhen erty y of relate to the SDG mana Mar cont d contra Service geme ket 2167. 2167. 86.88 2167.rolli party 4022 No ct Co. Ltd. nt prici 25 25 % 25 ng trans amou and its and ng shar actio nt or branches secur ehol ns agree ity der ment servi ces Subs Acce Accor idiar Daily pt ding Shenzhen y of relate prop to the Mar SDG cont d erty contra ket Eastern rolli party mana 11.88 11.88 0.48% 0 Yes ct 11.88 prici Service ng trans geme amou ng Co. Ltd. shar actio nt nt or ehol ns servi agree der ces ment Subs Acce Accor idiar Daily pt ding Shenzhen y of relate prop to the Mar SDG cont d erty contra ket Building rolli party mana 21.60 21.60 0.87% 0 Yes ct 21.60 prici Technolog ng trans geme amou ng y Co. Ltd. shar actio nt nt or ehol ns servi agree der ces ment Shenzhen Subs Daily Acce Mar Accor SDG idiar relate pt ket 198.5 198.5 ding 198.5 7.96% 198 No Tellus y of d prop prici 8 8 to the 8 Property cont party erty ng contra 62Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Manageme rolli trans mana ct nt Co. ng actio geme amou Ltd. shar ns nt nt or ehol servi agree der ces ment Ente rpris e Accor cont Daily ding rolle Acce Guoren relate to the d by pt Mar Property & d contra indir insur ket 68.20 Casualty party 54.44 54.44 80 No ct 54.44 ect ance prici % Insurance trans amou cont servi ng Co. Ltd. actio nt or rolli ces ns agree ng ment shar ehol ders Subs Accor idiar Daily ding Acce ISSTech y of relate to the pt Mar Informatio cont d contra techn ket n rolli party 0 0 152 No ct 0 ical prici Technolog ng trans amou servi ng y Co. Ltd. shar actio nt or ces ehol ns agree der ment 3690. Total -- -- -- 6230 -- -- -- -- -- 2 Details of large-sum sales return None The actual performance during the reporting period (if any) if the total amount of daily related party Normal performance transactions occurring in the current period is estimated by category Reasons for the great difference between the transaction price and N/A market reference price (if applicable) 2. Related party transactions from acquisition and sale of assets or equity □ Applicable□ Not applicable During the reporting period the Company had no related party transaction from the acquisition and sale of assets or equity. 3. Related party transaction of joint outbound investment □ Applicable□ Not applicable During the reporting period the Company had no related party transaction of joint outbound investment. 4. Transaction related to credit and debt □Applicable □ Not applicable 63Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Whether there are transactions of non-operating related credits and debts □Yes□ No During the reporting period the Company had no transactions related to credit and debt. 5. Transactions with related finance companies □ Applicable□ Not applicable There is no deposit loan credit or other financial business between the Company and related finance companies and related parties. 6. Transactions between finance companies controlled by the Company and related parties □ Applicable□ Not applicable There is no deposit loan credit or other financial business between the finance companies controlled by the Company and related parties. 7. Other major related party transactions □ Applicable□ Not applicable During the reporting period the Company had no other major related party transactions.XV. Major Contracts and Performance 1. Trusteeship contracting and leasing matters (1) Trusteeship □ Applicable□ Not applicable During the reporting period the Company had no trusteeship. (2) Contracting □ Applicable□ Not applicable During the reporting period the Company had no contracting. (3) Leasing □ Applicable□ Not applicable During the reporting period the Company has no leasing. 2. Significant guarantees □Applicable □ Not applicable Unit: RMB 10000 External guarantees of the Company and its subsidiaries (excluding the guarantees to subsidiaries) Name of Disclosure Guara Actual Actual Type Collater Counter- Guarantee Whet Wheth guaranteed date of the ntee date of guarant of al (if guarantee period her it er it is 64Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. party relevant amoun occurre ee guara any) (if any) is provid announceme t nce amount ntee fulfil ed to nt of the led related guarantee parties amount Until the Shenzhen expiry Renfu Tellus September Pledg date of the Automobiles 3500 0 No No No Yes 30 2014 e Joint Service Co.Venture Ltd.Contract Total actual external Total external guarantee guarantee amount approved during the 0 0 amount during reporting period (A1) the reporting period (A2) Total actual external Total external guarantee guarantee amount approved at the end 3500 0 balance at the of the reporting period (A3) end of reporting period (A4) The Company's guarantee to subsidiaries Disclosure Wheth date of the Whet Guara Actual Actual Type er it is Name of relevant Collater Counter- her it ntee date of guarant of Guarantee provid guaranteed announceme al (if guarantee is amoun occurre ee guara period ed to party nt of the any) (if any) fulfil t nce amount ntee related guarantee led parties amount Guarantee between subsidiaries Disclosure Wheth date of the Whet Guara Actual Actual Type er it is Name of relevant Collater Counter- her it ntee date of guarant of Guarantee provid guaranteed announceme al (if guarantee is amoun occurre ee guara period ed to party nt of the any) (if any) fulfil t nce amount ntee related guarantee led parties amount Total amount of the Company's guarantee (i.e. total of the first three items) Total actual Total guarantee amount guarantee approved during the amount during 00 reporting period (A1 + B1 + the reporting C1) period (A2 + B2 + C2) Total actual Total guarantee amount guarantee approved at the end of the balance at the 35000 reporting period (A3 + B3 + end of the C3) reporting period (A4 + B4 + C4) Proportion of total actual guarantee amount (i.e. 0.00% A4 + B4 + C4) to the Company's net assets 65Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Including: 3. Management of cash assets by other entrusted parties (1) Entrusted financial management □Applicable □ Not applicable Overview of entrusted financial management during the reporting period Unit: RMB 10000 The amount of impairment accrued for Capital source of Amount of Unexpired Overdue overdue Category entrusted financial entrusted financial balance unrecovered amount unrecovered management management financial management products Bank financial Owned funds 113130 58130 0 0 products Total 113130 58130 0 0 Details of high-risk entrusted financial management with large individual amount or low security and poor liquidity □ Applicable□ Not applicable Principal unable to be recovered or other conditions causing impairment for entrusted financial management □ Applicable□ Not applicable (2) Entrusted loan □ Applicable□ Not applicable During the reporting period the Company had no entrusted loans. 4. Other major contracts □ Applicable□ Not applicable During the reporting period the Company has no major contracts.XVI. Clarification on Other Major Matters □ Applicable□ Not applicable The Company had no other major matters that needed to be stated during the reporting period.XVII. Major Matters of the Company's Subsidiaries □Applicable □ Not applicable Both shareholders of SDG Huari reached a consensus and amended the Articles of Association to change SDG Huari's business term to "perpetual operation". On the same day the Company submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court to withdraw its 66Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. application for the compulsory liquidation of SDG Huari. The Company subsequently received a Civil Ruling ([2023] Y0391QQ No. 4 from the court which ruled to approve the Company’s application for withdrawal. For details please refer to the Announcement on the Progress of Compulsory Liquidation of Holding Subsidiary (Announcement No.: 2024-036) published by the Company on December 10 2024 and the Announcement on the Progress of Compulsory Liquidation of Holding Subsidiary (Announcement No.: 2024-038) published on December 31 2024. 67Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section VII Changes in Shares and Shareholders I. Changes in Shares 1. Changes in shares Unit: share Before the change Increase (+)/decrease (-) in this change After the change Bonu Conversion Issuance Proporti s of capital Subt Proporti Quantity of new Others Quantity on share reserve into otal on shares s share capital I. Restricted 00.00%0000000.00% shares 1. State 00.00%0000000.00% shareholding 2. State- owned legal 00.00%0000000.00% person shareholding 3. Other domestic 0 0.00% 0 0 0 0 0 0 0.00% shareholding Including : shares held 00.00%0000000.00% by domestic legal person Domestic natural person 0 0.00% 0 0 0 0 0 0 0.00% shareholding 4. Foreign 00.00%0000000.00% shareholding Including : Foreign legal 00.00%0000000.00% person shareholding Foreign natural person 0 0.00% 0 0 0 0 0 0 0.00% shareholding II.Unrestricted 431058320 100.00% 0 0 0 0 0 431058320 100.00% shares 1. RMB- denominated 39277832091.12%0000039277832091.12% ordinary shares 2. Domestic listed foreign 38280000 8.88% 0 0 0 0 0 38280000 8.88% shares 68Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3. Foreign listed foreign 0 0.00% 0 0 0 0 0 0 0.00% shares 4. Others 0 0.00% 0 0 0 0 0 0 0.00% III. Total amount of 431058320 100.00% 0 0 0 0 0 431058320 100.00% shares Reasons for changes in shares □ Applicable□ Not applicable Status of authorization for changes in shares □ Applicable□ Not applicable Status of transfer for changes in shares □ Applicable□ Not applicable Effect of changes in shares on the financial indicators including basic earnings per share and diluted earnings per share in the most recent year and in the most recent period as well as net asset per share attributable to the Company's shareholders of ordinary shares □ Applicable□ Not applicable Other information disclosed as the Company deems necessary or required by securities regulatory authorities □ Applicable□ Not applicable 2. Changes in shares with restrictions on sale □ Applicable□ Not applicable II. Conditions on Issuance and Listing of Securities 1. Conditions on issuance of securities (excluding preferred shares) during the reporting period □ Applicable□ Not applicable 2. Description of total number of shares of the Company changes in shareholder structure and changes in the Company's asset and liability structure □ Applicable□ Not applicable 3. Shares of existing internal staff □ Applicable□ Not applicable III. Shareholders and Actual Controller 1. Number of shareholders and shareholdings of the Company Unit: share Total number of ordinary Total Total Total number of shareholders as at the end 50749 number 50093 number of 0 preferred shareholders 0 of the reporting period of preferred with restored voting 69Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. ordinary shareholde rights as at the end of sharehold rs with the previous month ers as at restored before the disclosure the end of voting date of the annual report the rights as at previous the end of month the before the reporting disclosur period e date of the annual report Shareholders holding more than 5% shares or shareholding of top 10 shareholders (excluding shares lent through refinancing) Number of Pledged Increase/de Numbe Sharehol shares held marked or Nature of crease r of Number of ding at the end frozen shares Name of shareholder shareholde during the restricte unrestricted proportio of the r reporting d shares shares held Status Qu n reporting period held of ant period shares ity Shenzhen Special State- Economic Zone owned 21159162 49.09% 1200000 0 211591621 N/A 0 Development Group Co. legal 1 Ltd. person Domestic Shenzhen Capital Fortune non-state- Jewelry Industry owned 5.08% 21919153 0 0 21919153 N/A 0 Investment Enterprise legal (Limited Partnership) person Domestic Li Xiaoming natural 0.71% 3069500 0 0 3069500 N/A 0 person Overseas Hong Kong Securities legal 0.60% 2577239 396580 0 2577239 N/A 0 Clearing Company Limited person GUOTAI JUNAN Overseas SECURITIES (HONG legal 0.41% 1783491 42000 0 1783491 N/A 0 KONG) LIMITED person China Merchants Bank Co.Ltd.—China Southern CSI Others 0.38% 1627070 1383770 0 1627070 N/A 0 1000 ETF Industrial and Commercial Bank of China Limited— Others 0.36% 1532475 13800 0 1532475 N/A 0 China Southern CSI All Share Real Estate ETF Domestic Ma Yongcheng natural 0.26% 1139180 499880 0 1139180 N/A 0 person Overseas Wang Hua natural 0.22% 965000 965000 0 965000 N/A 0 person China Merchants Bank Co.Ltd.—ChinaAMC CSI Others 0.20% 872880 655800 0 872880 N/A 0 1000 ETF Status of the strategic investor or general legal person None becoming one of top 10 shareholders due to rights issue 70Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (if any) (see Note 3) Among the top 10 shareholders Shenzhen Special Economic Zone Development Group Co. Ltd. was not related to other shareholders and Explanations of the related relationship or concerted was not a person acting in concert as stipulated in the Measures for the action of the above shareholders Administration of the Takeover of Listed Companies. It was unknown whether other shareholders of tradable shares were persons acting in concert.Description of the above-mentioned shareholders' involvement in entrusting/being entrusted with the N/A right to vote and giving up the right Special description of repurchase special account None among the top 10 shareholders (if any) (see Note 10) Shareholdings of top 10 shareholders without restrictions on sale (excluding shares lent through refinancing and locked shares of senior executives) Number of unrestricted shares Share type Name of shareholder held as at the end of reporting period Share type Quantity Ordinary shares Shenzhen Special Economic Zone Development Group 211591621 denominated in 211591621 Co. Ltd.RMB Ordinary shares Shenzhen Capital Fortune Jewelry Industry Investment 21919153 denominated in 21919153 Enterprise (Limited Partnership) RMB Ordinary shares Li Xiaoming 3069500 denominated in 3069500 RMB Ordinary shares Hong Kong Securities Clearing Company Limited 2577239 denominated in 2577239 RMB GUOTAI JUNAN SECURITIES (HONG KONG) Domestic listed 17834911783491 LIMITED foreign shares Ordinary shares China Merchants Bank Co. Ltd.—China Southern CSI 1627070 denominated in 1627070 1000 ETF RMB Ordinary shares Industrial and Commercial Bank of China Limited— 1532475 denominated in 1532475 China Southern CSI All Share Real Estate ETF RMB Ordinary shares Ma Yongcheng 1139180 denominated in 1139180 RMB Domestic listed Wang Hua 965000 965000 foreign shares Ordinary shares China Merchants Bank Co. Ltd.—ChinaAMC CSI 872880 denominated in 872880 1000 ETF RMB Description on the related relationship or Among the top 10 shareholders Shenzhen Special Economic Zone Development concerted action among top 10 Group Co. Ltd. a state-owned legal-person shareholder was not related to other shareholders of unrestricted tradable shareholders and was not a person acting in concert as stipulated in theMeasures for shares and between top 10 shareholders of the Administration of the Takeover of Listed Companies. It was unknown whether unrestricted tradable shares and top 10 other shareholders of tradable shares were persons acting in concert.shareholders Description of participation of the top 10 1. Due to the refinancing business carried out by Shenzhen Special Economic Zone shareholders of ordinary shares in Development Group Co. Ltd. the controlling shareholder of the Company the securities margin trading (if any) (see number of shares held at the end of this reporting period increased by 1200000 Note 4) shares compared with that at the end of 2023. The increase in the number of shares 71Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. held is due to the recovery of lent shares. 2. The shareholder China Merchants Bank Co. Ltd.—China Southern CSI 1000 ETF Fund carried out the refinancing business. At the end of this reporting period the number of shares held increased by 1383770 shares compared with that at the end of 2023 of which 54600 shares were increased due to the recovery of lent shares. 3. The shareholder China Merchants Bank Co. Ltd.—ChinaAMC CSI 1000 ETF carried out the refinancing business. At the end of this reporting period the number of shares held increased by 665800 shares compared with that at the end of 2023 of which 28800 shares were increased due to the recovery of lent shares. 4. The shareholder Ma Yongcheng held 1139180 shares of the Company through guaranteed credit accounts and 0 shares of the Company through ordinary securities accounts holding a total of 1139180 shares.The situation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited tradable shares participating in the loan of shares in the refinancing business □Applicable □ Not applicable Unit: share The situation of shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unlimited tradable shares participating in the loan of shares in the refinancing business Shares lent through Shares lent through Ordinary account and credit Ordinary account and credit refinancing at the refinancing at the account shareholding at the account shareholding at the end of the period beginning of the period Name of beginning of the period end of the period and not yetand not yet returned shareholder (full returned name) Proportion Proportio Proportion Proportion Total in total Total n in total in total in total Total quantity Total quantity quant share quantity share share share ity capital capital capital capital Shenzhen Special Economic Zone 21039162148.81%12000000.28%21159162149.09%00.00% Development Group Co. Ltd.China Merchants Bank Co. Ltd.— 2433000.06%546000.01%16270700.38%00.00% China Southern CSI 1000 ETF China Merchants Bank Co. Ltd.— 2170800.05%288000.01%8728800.20%00.00% ChinaAMC CSI 1000 ETF Changes from the previous period caused by the top 10 shareholders and the top 10 shareholders of unlimited tradable shares due to refinancing-based lending/returning □ Applicable□ Not applicable Whether the Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions on sale performed the agreed repurchase transactions during the reporting period □Yes□ No The Company's top 10 shareholders of ordinary shares and the top 10 shareholders of ordinary shares without restrictions on sale did not perform the agreed repurchase transactions during the reporting period. 2. Controlling shareholder of the Company Nature of controlling shareholder: local state-owned holding 72Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Type of controlling shareholder: legal person Legal Name of representative Date of controlling Organization code Main business /person in establishment shareholder charge Investment in the development of industries (specific projects will be declared separately); investment in the development of the tourism Shenzhen industry; real estate development and Special operation; domestic trade and material supply Economic Zone Zhang Junlin June 20 1982 91440300192194195C and marketing (excluding monopoly exclusive Development control and monopolized commodities); Group Co. Ltd. economic information consultation (excluding restricted items); operation of import and export business (subject to approval by the Industrial and Commercial Bureau).Equity of other At the end of the reporting period in addition to holding the equity of the Company SDG Group also held domestic and equity of other listed companies as follows: foreign listed 1. Holding 36.18% equity of Shenzhen SDG Information Co. Ltd. (stock abbreviation: SDG Information) and companies controlling 1.10% equity of Shenzhen SDG Information Co. Ltd. through Hanseco Sanho Co. Ltd.; controlled and 2. Holding 47.78% equity of Shenzhen SDG Service Co. Ltd. (stock abbreviation: SDG Service) and holding participated by 0.98% equity of Shenzhen SDG Service Co. Ltd. through Shenzhen SDG Investment Co. Ltd.; the controlling 3. Holding 8.28% equity of Shenzhen Microgate Technology Co. Ltd. (stock abbreviation: Microgate shareholder Technology) and controlling 14.46% equity of Shenzhen Microgate Technology Co. Ltd. through the during the Company's holding subsidiary Shenzhen Capital Fortune Electronic Information Investment Enterprise reporting (Limited Partnership).period 4. Holding 0.48% equity of Sichuan New Jinlu Group Co. Ltd. (stock abbreviation:New Jinlu).Change in the controlling shareholder during the reporting period □ Applicable□ Not applicable During the reporting period the Company had no change in the controlling shareholder. 3. Actual controllers and persons acting in concert of the Company Nature of actual controller: local state-owned assets administrative authority Type of actual controller: legal person Legal Name of actual Date of representative/p Organization code Main business controller establishment erson in charge State-owned Assets Perform the responsibilities of the Supervision and investor on behalf of the state and Management 11440300K31728067 Yang Jun April 2 2004 supervise and manage the state- Commission of 2 owned assets authorized for Shenzhen Municipal supervision according to law.People's Government Equity of other domestic and foreign listed companies N/A controlled by the actual controller during the reporting period Changes in actual controller during the reporting period □ Applicable□ Not applicable 73Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. During the reporting period the Company had no change in the actual controller.Block diagram of property rights and control relationship between the Company and the actual controller Actual controller controlling the Company by way of trust or other asset management methods □ Applicable□ Not applicable 4. Shares pledged by the Company's controlling shareholder or the largest shareholder and its acting-in- concert parties account for 80% of the Company's shares held by them □ Applicable□ Not applicable 5. Other corporate shareholders with more than 10% shares held □ Applicable□ Not applicable 6. Restriction in reduction of shares held by controlling shareholder actual controller restructuring parties and other commitment units □ Applicable□ Not applicable IV. Specific Implementation of Share Repurchase during the Reporting Period Progress in the implementation of share repurchase □ Applicable□ Not applicable Progress in the implementation of share repurchase reduction through call auction □ Applicable□ Not applicable 74Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section VIII Preferred Shares □ Applicable□ Not applicable During the reporting period the Company had no preferred shares. 75Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section IX Bonds □ Applicable□ Not applicable 76Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Section X Financial Reports I. Auditor's Report Type of auditor's opinion Standard unqualified opinion Signing date of the auditor's report March 26 2025 Grant Thornton Certified Public Accountants (Special General Name of audit institution Partnership) Auditor's Report No. ZTSZ (2025) No. 441A004582 Name of CPA Wu Liang Xiao Na Text of the Auditor's Report All shareholders of Shenzhen Tellus Holding Co. Ltd.: I. Auditor's Opinion We have audited the attached financial statements of Shenzhen Tellus Holding Co. Ltd.(hereinafter referred to as "Tellus") including Consolidated and Company's Balance Sheets as of December 31 2024 and Consolidated and Company's Income Statements Consolidated and Company's Cash Flow Statements and Consolidated and Company's Statements of Changes in Shareholders' Equity for 2024 as well as relevant Notes to Financial Statements.In our opinion the attached financial statements fairly present in all material respects the consolidated and Company's financial positions of Tellus as of December 31 2024 and its consolidated and Company's financial performance and cash flows for the year in accordance with the ASBE.II. Basis for Auditor's Opinion We conducted our audit in accordance with the Chinese Certified Public Accountant Auditing Standards. The section in the Auditor's Report titled "CPAs' Responsibilities for the Audit of the Financial Statements" further describes our responsibilities under these standards.We are independent of Tellus in accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit.III. Key Audit Matters Key audit matters are those matters that are deemed most important to the audit of the financial statements for the current period based on our professional judgment. These matters are addressed in the context of the audit of the financial statements as a whole and the formation of the Auditor's Opinion and we do not express a separate opinion on these matters. 77Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (I) Revenue recognition See Notes III. 26 and V. 44 of the financial statements for details of relevant information disclosure. 1. Matter description The Company's operating revenue mainly comes from property leasing and services and gold and jewelry sales and services. In 2024 the operating revenue of Tellus reached RMB 2.614 billion an increase of 41.53% over the same period last year. Since operating revenue is one of its key performance indicators there may be a risk that the management of Tellus (hereinafter referred to as the "management") will achieve specific goals or expectations through inappropriate revenue recognition. Therefore we have identified revenue recognition as a key audit matter. 2. Audit response 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 processes. (2) Assess the appropriateness of the specific method used by Tellus for revenue recognition by inquiring with the management reviewing sales contracts and analyzing the timing of control transfer related to revenue recognition. (3) Implement analysis procedures for operating revenue including the analysis of monthly revenue and gross profit margin fluctuations in 2024 comparative analysis of revenue prices and gross profit margins of major products and services between the current period and the previous year as well as comparative analysis with listed companies in the same industry. (4) Select major customers to confirm sales for the current period; for samples that did not receive a response verify the authenticity of transactions by examining subsequent payments and reviewing sales contracts invoices delivery receipts and other supporting documents. (5) Select test samples check the supporting documents related to revenue recognition this year including real estate lease contracts commodity sales contracts invoices sales orders outbound delivery orders settlement statements and customer sign-off records etc.and check whether the revenue recognition is accurate;. 78Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (6) Implement the cut-off test check the operating revenue recognized before and after the balance sheet date against supporting documents such as invoices commodity sales orders outbound delivery orders and customer receipts and evaluate whether the operating revenue is recognized in an appropriate period. (7) Check the business information of new customers customers with large sales changes and their related parties in 2024 and verify whether there are any unidentified potential related party relationships and transactions.(II) Confirmation of the book value of investment real estate fixed assets and construction projects under construction For the disclosure see Notes Ⅲ15、16 and 17 Ⅴ14、15 and 16. 1. Description of matters As of December 312024 the value of investment real estate fixed assets account and project under construction surface of the Company is 1173867957.54 yuan accounting for 45.25% of the total assets. The book value of investment real estate fixed assets and projects under construction involves significant management judgment including the standard of the projects under construction reaching the predetermined usable state and 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 fixed assets and the construction under construction involves the significant judgment of the management and its importance to the consolidated financial statements we determine the book value of investment real estate fixed assets and the construction under construction as the key audit matters. 2. Audit response (1) Understand the key internal controls related to the existence integrity and accuracy of investment real estate fixed assets and construction under construction 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 79Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. and other materials of large assets; (3) Check the construction site under construction understand and evaluate the progress of the project and check with the entry records;Obtain the ownership certificate of investment real estate and fixed assets and the company inventory table and draw the important assets on site; (4) To evaluate whether the management is reasonable to evaluate the usable life and net residual value of investment real estate and fixed assets; (5) Obtain the depreciation plan table of investment real estate and fixed assets and recalculate whether the depreciation plan is accurate; (6) Obtain the audit data of the pre-transfer project and confirm the rationality of the value of the pre-transfer assets; (7) Check whether the information related to the investment real estate fixed assets and the projects under construction has been properly reported and disclosed in the financial statements.IV. Other Information The management of Tellus (hereinafter referred to as the "Management") is responsible for other information. Other information comprises the information included in the 2024 Annual Report of Tellus but does not include the financial statements and our auditor’s report thereon.Our auditor's opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.Based on our audit of financial statements we bear the responsibility of reading other information and considering whether there is any significant inconsistency or seemingly material misstatement between other information and the financial statements or situations obtained by us in the audit process.If based on the work we have executed we conclude that there is a material misstatement of the other information we should report that fact. In this regard we have nothing to report.V. Responsibilities of the Management and the Governance for the Financial Statements 80Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Management of Tellus is responsible for the preparation and fair presentation of the financial statements in accordance with the Accounting Standards for Business Enterprises and design implementation and maintenance of necessary internal controls to enable the preparation of financial statements free from material misstatement whether due to fraud or error.In preparation of the financial statement the management is responsible for assessing Tellus' sustainable operation ability disclosing the sustainable operation related items (if applicable) and applying the going-concern assumption unless otherwise the management plans to liquidate Tellus stop operation or it has no other practical choice.The governance is responsible for supervising Tellus' financial reporting process.VI. CPAs' Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted according to auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in aggregate they could reasonably be expected to influence the economic decisions users would take on the basis of these financial statements.We exercise professional judgment and maintain professional skepticism in carrying out our audit according to the auditing standards. At the same time we also: (1) Identify and assess the risks of material misstatement in the financial statements whether due to fraud or error design and perform audit procedures in response to those risks and obtain audit evidence forming a sufficient and appropriate basis for our opinions. The risk of failing to detect a material misstatement due to fraud is higher than that due to mistakes as fraud may involve collusion forgery intentional omissions misrepresentations or overriding internal control. (2) Understand the internal control relating to the audit to design appropriate audit procedures. (3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Management. (4) Conclude on the appropriateness of the Management's adoption of the going-concern assumption. and conclude based on the audit evidence obtained whether a material uncertainty exists related to any events or conditions that cast significant doubt on the ability of Tellus to continue as a going concern. If we conclude that a material uncertainty exists we are required to 81Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. draw attention in our Auditor's Report to the related disclosures in the Financial Statements; Where such disclosures are inadequate we should modify our opinion. Our conclusions are based on information available up to the date of the Auditor's Report. However future events or conditions may cause Tellus to cease to continue as a going concern. (5) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements fairly present 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.II. Financial Statements The unit of measurement for the statements in the financial notes is: RMB 1. Consolidated Balance Sheet Prepared by: Shenzhen Tellus Holding Co. Ltd.December 31 2024 Unit: RMB 82Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Item Ending balance Beginning balance Current assets: Cash at bank and on hand 377971359.69 220340961.64 Settlement reserve fund Lendings to banks and other financial institutions Trading financial assets 165630834.06 206294931.94 Derivative financial assets 292078.00 298320.00 Notes receivable Accounts receivable 46564067.14 99635751.52 Receivables financing Prepayments 797409.91 38454434.90 Premiums receivable Reinsurance premium receivable Capital reserves receivable from reinsurance contracts Other receivables 8081783.33 12383516.92 Including: Interest receivable Dividends receivable 1305581.86 Financial assets purchased under resale agreements Inventory 127432191.55 178425833.88 Including: Data resources Contract assets Held-for-sale assets Non-current assets due within one year 91587627.94 55206250.00 Other current assets 96743827.38 104833797.59 Total current assets 915101179.00 915873798.39 Non-current assets: Loans and advances issued Debt investment Other debt investments 84724128.76 67627948.60 Long-term receivables Long-term equity investments 85091833.20 76511487.57 Other equity instrument investments 383317.67 Other non-current financial assets Investment properties 1099772133.10 1008137341.80 Fixed assets 70763683.25 78935843.49 Construction in progress 3332141.19 7279570.05 Productive biological assets Oil and gas assets Right-of-use assets 78558005.50 71904716.50 Intangible assets 3775834.45 3915770.61 Including: Data resources Development expenditures 83Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Including: Data resources Goodwill Long-term deferred expenses 48095409.37 38392179.02 Deferred income tax assets 5496778.78 37836657.43 Other non-current assets 199748111.29 97053053.32 Total non-current assets 1679358058.89 1487977886.06 Total assets 2594459237.89 2403851684.45 Current liabilities: Short-term borrowings 120101444.43 145131694.44 Borrowings from the central bank Loans from other banks and other financial institutions Trading financial liabilities 56881954.76 Derivative financial liabilities 46660.00 1380.00 Notes payable 110000000.00 Accounts payable 125555693.13 135834414.39 Advances from customers 9469503.75 4306567.65 Contract liabilities 4009504.59 7079975.38 Financial assets sold under repurchase agreements Deposits from banks and other financial institutions Acting trading securities Acting underwriting securities Employee compensation payable 36835623.94 33425356.15 Taxes payable 36109740.02 28857448.06 Other payables 126312280.55 126826966.60 Including: Interest payable Dividends payable Handling charges and commission payable Reinsurance accounts payable Held-for-sale liabilities Current portion of non-current liabilities 8674869.40 7304647.32 Other current liabilities 6142814.36 3388998.35 Total current liabilities 583258134.17 549039403.10 Non-current liabilities: Insurance contract reserve Long-term borrowings Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 76541985.55 69524214.23 Long-term payables 3920160.36 3920160.36 Long-term employee compensation payable Provisions 268414.80 84Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Deferred income 7837477.60 9617683.53 Deferred tax liabilities 25175508.48 40409890.41 Other non-current liabilities Total non-current liabilities 113475131.99 123740363.33 Total liabilities 696733266.16 672779766.43 Owners' equity: Share capital 431058320.00 431058320.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 430866408.50 430866408.50 Less: Treasury shares Other comprehensive income -7606040.90 -7318552.65 Special reserve Surplus reserve 74222656.99 63956286.46 General risk provisions Undistributed profit 798343284.97 685342592.62 Total equity attributable to owners of the parent company 1726884629.56 1603905054.93 Minority shareholders' equity 170841342.17 127166863.09 Total owners' equity 1897725971.73 1731071918.02 Total liabilities and owner's equity 2594459237.89 2403851684.45 Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm: Yu Taiping 2. Parent Company's Balance Sheet Unit: RMB Beginning Item Ending balance balance Current assets: Cash at bank and on hand 25182064.77 8805213.07 Trading financial assets 121340400.00 205942363.02 Derivative financial assets Notes receivable Accounts receivable 19714030.82 22080192.24 Receivables financing Prepayments 96692.05 16240.74 Other receivables 2839370.67 47432527.04 Including: Interest receivable Dividends receivable 1305581.86 Inventory Including: Data resources Contract assets Held-for-sale assets Non-current assets due within one year 91587627.94 Other current assets 51886807.24 75546888.89 Total current assets 312646993.49 359823425.00 85Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Non-current assets: Debt investment Other debt investments 63517795.43 47081615.27 Long-term receivables Long-term equity investments 798702607.61 770687026.69 Other equity instrument investments 383317.67 Other non-current financial assets Investment properties 530187087.36 545303744.96 Fixed assets 13330517.88 15211321.18 Construction in progress 1986361.94 589761.00 Productive biological assets Oil and gas assets Right-of-use assets 81973406.34 74533199.59 Intangible assets 2203851.20 2559885.65 Including: Data resources Development expenditures Including: Data resources Goodwill Long-term deferred expenses 20931913.29 21243445.23 Deferred income tax assets 31956786.10 Other non-current assets 26969339.66 69580748.31 Total non-current assets 1539802880.71 1579130851.65 Total assets 1852449874.20 1938954276.65 Current liabilities: Short-term borrowings Trading financial liabilities Derivative financial liabilities Notes payable Accounts payable 59250518.21 71449469.14 Advances from customers 1118873.69 1060721.19 Contract liabilities Employee compensation payable 30927714.69 27402400.00 Taxes payable 21432181.88 13335268.63 Other payables 120275555.64 271180563.27 Including: Interest payable Dividends payable Held-for-sale liabilities Current portion of non-current liabilities 8212093.33 6706250.92 Other current liabilities 1609232.42 1810007.31 Total current liabilities 242826169.86 392944680.46 Non-current liabilities: Long-term borrowings 86Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Bonds payable Including: Preferred shares Perpetual bonds Lease liabilities 80617189.54 72936147.42 Long-term payables Long-term employee compensation payable Provisions Deferred income Deferred tax liabilities 7188936.09 40269279.16 Other non-current liabilities Total non-current liabilities 87806125.63 113205426.58 Total liabilities 330632295.49 506150107.04 Owners' equity: Share capital 431058320.00 431058320.00 Other equity instruments Including: Preferred shares Perpetual bonds Capital reserves 428256131.23 428256131.23 Less: Treasury shares Other comprehensive income -7632462.90 -7344974.65 Special reserve Surplus reserve 74222656.99 63956286.46 Undistributed profit 595912933.39 516878406.57 Total owners' equity 1521817578.71 1432804169.61 Total liabilities and owner's equity 1852449874.20 1938954276.65 3. Consolidated Income Statement Unit: RMB Item 2024 2023 I. Total operating revenue 2613678204.37 1846738841.89 Including: Operating revenue 2613678204.37 1846738841.89 Interest income Premiums earned Handling charges and commission income II. Total operating cost 2473190056.25 1783821294.20 Including: Operating cost 2376764300.06 1648337199.60 Interest expenses Handling charges and commission expenditure Surrender value Net payments for insurance claims Net provision for insurance contract reserves Policy dividend expenses Reinsurance expenses Taxes and surcharges 13172648.28 23230109.06 Selling expenses 22232680.89 19128514.75 87Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Administrative expenses 51362592.45 85621795.09 R&D expenses 3268819.88 1965795.78 Financial expenses 6389014.69 5537879.92 Including: Interest expenses 9096305.49 9444953.16 Interest income 2984792.54 4682945.54 Add: Other income 6597836.15 8491050.39 Investment income (loss to be listed with “-”) 19470482.47 93873513.18 Including: Income from investment in associates and joint ventures 24212981.63 19872836.15 Income from derecognition of financial assets measured at amortized cost Exchange income (loss to be listed with "-") Net exposure hedging income (loss to be listed with "-") Income from fair value changes (loss to be listed with "-") -10567743.62 -12008283.18 Credit impairment loss (loss to be listed with "-") 5596513.26 -714346.29 Asset impairment loss (loss to be listed with "-") -1046935.57 Income from assets disposal (loss to be listed with "-") -227.20 -59110.10 III. Operating profit (loss to be listed with "-") 161585009.18 151453436.12 Add: Non-operating revenue 3900953.07 2390834.30 Less: Non-operating expenses 2195959.84 319297.02 IV. Total profit (total loss to be listed with "-") 163290002.41 153524973.40 Less: Income tax expenses 24258270.37 42084506.48 V. Net profit (net loss to be listed with "-") 139031732.04 111440466.92 (I) Classified by operating continuity 1. Net profit from continuing operations (net loss to be listed with "-") 139031732.04 111440466.92 2. Net profit from discontinued operations (net loss to be listed with "-") (II) Classified by attribution of ownership 1. Net profit attributable to the parent company's shareholders 136629870.80 118255140.84 2. Minority shareholders’ gains and losses 2401861.24 -6814673.92 VI. Net after-tax amount of other comprehensive income -287488.25 -7344974.65 Net after-tax amounts of other comprehensive income attributable to the owner of -287488.25-7344974.65 the parent company (I) Other comprehensive income that cannot be reclassified into profit and loss -287488.25 -7344974.65 1. Changes arising from the remeasurement of net liabilities of the defined benefit plan 2. Other comprehensive income that cannot be reclassified into profit or loss under the equity method 3. Changes in fair value of investment by other equity instruments -287488.25 -7344974.65 4. Changes in fair value of the Company's own credit risk 5. Others (II) Other comprehensive income to be reclassified into profit or loss 1. Other comprehensive income that can be reclassified into profit or loss under the equity method 2. Changes in fair value of other debt investments 3. Amount of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserves for cash flow hedge 6. Translation differences arising from the financial statements of foreign currency 7. Others Net after-tax amount of other comprehensive income attributable to minority 88Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. shareholders VII. Total comprehensive income 138744243.79 104095492.27 Total comprehensive income attributable to the owner of the parent company 136342382.55 110910166.19 Total comprehensive income attributable to minority shareholders 2401861.24 -6814673.92 VIII. Earnings per share (I) Basic earnings per share 0.3170 0.2743 (II) Diluted earnings per share 0.3170 0.2743 In case of a business merger under common control in the current period the net profit realized by the merged party before the merger is RMB and the net profit realized by the merged party in the previous period is RMB .Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm: Yu Taiping 4. Parent Company's Income Statement Unit: RMB Item 2024 2023 I. Operating revenues 118323197.59 86993917.15 Less: Operating cost 51537706.69 39689422.24 Taxes and surcharges 1711412.68 13736806.06 Selling expenses 3339658.26 4396824.98 Administrative expenses 42011001.83 50763196.78 R&D expenses Financial expenses 1410770.64 3446761.53 Including: Interest expenses 2904506.30 5274288.75 Interest income 1598304.15 1929975.93 Add: Other income 73023.60 500.00 Investment income (loss to be listed with “-”) 103747991.59 164693779.53 Including: Income from investment in associates and joint ventures 24212981.63 19872836.15 Income from derecognition of financial assets measured at amortized cost (loss to be listed with "-") Net exposure hedging income (loss to be listed with "-") Income from fair value changes (loss to be listed with "-") -12693036.25 -10680391.42 Credit impairment loss (loss to be listed with "-") -305769.74 -350592.82 Asset impairment loss (loss to be listed with "-") Income from assets disposal (loss to be listed with "-") II. Operating profit (loss to be listed with “-”) 109134856.69 128624200.85 Add: Non-operating revenue 1187007.86 577326.80 Less: Non-operating expenses 788792.71 111423.00 III. Total profit (total loss to be listed with “-”) 109533071.84 129090104.65 Less: Income tax expenses 6869366.57 14518961.36 IV. Net profit (net loss to be listed with “-”) 102663705.27 114571143.29 (I) Net profit from continuing operations (net loss to be listed with "-") 102663705.27 114571143.29 (II) Net profit from discontinued operations (net loss to be listed with "-") V. Net after-tax amount of other comprehensive income -287488.25 -7344974.65 (I) Other comprehensive income that cannot be reclassified into profit and loss -287488.25 -7344974.65 1. Changes arising from the remeasurement of net liabilities of the defined benefit plan 2. Other comprehensive income that cannot be reclassified into profit or loss 89Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. under the equity method 3. Changes in fair value of investment by other equity instruments -287488.25 -7344974.65 4. Changes in fair value of the Company's own credit risk 5. Others (II) Other comprehensive income to be reclassified into profit or loss 1. Other comprehensive income that can be reclassified into profit or loss under the equity method 2. Changes in fair value of other debt investments 3. Amount of financial assets reclassified into other comprehensive income 4. Provision for credit impairment of other debt investments 5. Reserves for cash flow hedge 6. Translation differences arising from the financial statements of foreign currency 7. Others VI. Total comprehensive income 102376217.02 107226168.64 VII. Earnings per share (I) Basic earnings per share (II) Diluted earnings per share 5. Consolidated Cash Flow Statement Unit: RMB Item 2024 2023 I. Cash flows from operating activities: Cash received from sales of goods or rendering of services 4572552357.58 1963588534.65 Net increase in deposits from customers and placements from banks and other financial institutions Net increase in borrowings from the central bank Net increase in borrowings from other financial institutions Cash received from premiums of original insurance contracts Net amount of cash received from reinsurance business Net increase in deposits of the insured and investments Cash received from interests handling charges and commissions Net increase in loans from banks and other financial institutions Net increase of repurchasing business funds Net amount of cash received from acting trading securities Tax refunds received 13271889.24 2622913.63 Other cash received relating to operating activities 76743352.97 53294743.09 Subtotal of cash inflows from operating activities 4662567599.79 2019506191.37 Cash paid for purchase of goods and receipt of labor services 4066869141.07 1817964267.12 Net increase in loans and advances to customers Net increase in deposits in the central bank and other financial institutions Cash paid for claims on original insurance contracts Net increase in lendings to banks and other financial institutions Cash paid for interests handling charges and commissions Cash paid for policy dividends Cash paid to and on behalf of employees 50261809.42 92874692.73 Various taxes paid 75339841.21 61298201.45 Other cash paid relating to operating activities 79807994.24 107509036.53 Subtotal of cash outflows from operating activities 4272278785.94 2079646197.83 Net cash flows from operating activities 390288813.85 -60140006.46 II. Cash flow from investing activities: 90Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Cash received from disposal of investments 820139644.49 628726990.40 Cash received from acquirement of investment income 15712636.00 28100805.87 Net cash received from disposal of fixed assets intangible assets and other long- 1974.829871552.72 term assets Net cash received from disposal of subsidiaries and other business units Other cash received relating to investing activities 5964034.76 10712284.16 Subtotal of cash inflows from investing activities 841818290.07 677411633.15 Cash paid to acquire fixed assets intangible assets and other long-term assets 34257817.98 84887465.21 Cash paid for investments 985536930.32 717659265.39 Net increase in pledge loans Net cash paid for acquisition of subsidiaries and other business units Other cash paid relating to investing activities 14659543.80 8072396.24 Subtotal of cash outflows from investing activities 1034454292.10 810619126.84 Net cash flows from investing activities -192636002.03 -133207493.69 III. Cash flows from financing activities: Cash received from absorbing investment Including: Cash received by subsidiaries from minority shareholders' investments Cash received from borrowings 415000000.00 359669472.83 Other cash received relating to financing activities 253420.00 Subtotal of cash inflows from financing activities 415000000.00 359922892.83 Cash paid for repayment of debts 440000000.00 358930058.69 Cash paid for distribution of dividends profits or interest repayment 19419827.42 31604191.60 Including: Dividends and profits paid by subsidiaries to minority shareholders Other cash paid relating to financing activities 12180403.46 7224685.15 Sub-total of cash outflows from financing activities 471600230.88 397758935.44 Net cash flows from financing activities -56600230.88 -37836042.61 IV. Effect of exchange rate changes on cash and cash equivalents 101.09 V. Net increase in cash and cash equivalents 141052580.94 -231183441.67 Add: Beginning balance of cash and cash equivalents 160223387.69 391406829.36 VI. Ending balance of cash and cash equivalents 301275968.63 160223387.69 6. Parent Company's Cash Flow Statement Unit: RMB Item 2024 2023 I. Cash flows from operating activities: Cash received from sales of goods or rendering of services 131659527.09 70665037.25 Tax refunds received Other cash received relating to operating activities 110406614.70 82641549.03 Subtotal of cash inflows from operating activities 242066141.79 153306586.28 Cash paid for purchase of goods and receipt of labor services 28450836.37 9354262.26 Cash paid to and on behalf of employees 32839148.01 44299496.50 Various taxes paid 9851486.55 5286561.86 Other cash paid relating to operating activities 144407205.44 61287642.06 Subtotal of cash outflows from operating activities 215548676.37 120227962.68 Net cash flows from operating activities 26517465.42 33078623.60 II. Cash flow from investing activities: Cash received from disposal of investments 492856726.33 414826990.40 Cash received from acquirement of investment income 15000000.00 96430863.56 Net cash received from disposal of fixed assets intangible assets and other long-term assets Net cash received from disposal of subsidiaries and other business units Other cash received relating to investing activities 47180211.11 10712284.16 Subtotal of cash inflows from investing activities 555036937.44 521970138.12 Cash paid to acquire fixed assets intangible assets and other long-term assets 22657919.30 74600974.42 91Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Cash paid for investments 512236930.32 467006215.27 Net cash paid for acquisition of subsidiaries and other business units Other cash paid relating to investing activities 6400000.00 0.00 Subtotal of cash outflows from investing activities 541294849.62 541607189.69 Net cash flows from investing activities 13742087.82 -19637051.57 III. Cash flows from financing activities: Cash received from absorbing investment Cash received from borrowings 25693122.83 Other cash received relating to financing activities Subtotal of cash inflows from financing activities 0.00 25693122.83 Cash paid for repayment of debts 0.00 169953708.69 Cash paid for distribution of dividends profits or interest repayment 13408159.80 15656389.63 Other cash paid relating to financing activities 10474541.74 1787614.75 Sub-total of cash outflows from financing activities 23882701.54 187397713.07 Net cash flows from financing activities -23882701.54 -161704590.24 IV. Effect of exchange rate changes on cash and cash equivalents V. Net increase in cash and cash equivalents 16376851.70 -148263018.21 Add: Beginning balance of cash and cash equivalents 8805213.07 157068231.28 VI. Ending balance of cash and cash equivalents 25182064.77 8805213.07 7. Consolidated Statement of Changes in Owners' Equity Amount in the current period Unit: RMB 2024 Equity attributable to the owners of the parent company Other equity Othe Min instruments r Total Less: Gene Undi ority Item Capi com Spec Surp share ownShare Pre Trea ral strib Perp tal preh ial lus Othe Subt hold ers'capita ferr Ot sury risk uted etual reser ensiv reser reser rs otal ers' equit l ed her share provi profi bond ves e ve ve equit y sha s s sions t y s inco res me I.Ending 430 - 639 685 160 127 173 4310 balance 866 731 562 342 390 166 107 5832 of the 408. 855 86.4 592. 505 863. 191 0.00 previou 50 2.65 6 62 4.93 09 8.02 s year A dd: Change s in account ing policies C orrectio n of prior errors O 92Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. thers II.Beginn 430-639685160127173 ing 4310 866731562342390166107 balance 5832 408.85586.4592.505863.191 of the 0.00 502.656624.93098.02 current year III.Increas es/decr eases in the -102 current 113 122 436 166 287663 period 000 979 744 654 488.70.5 (decrea 692. 574. 79.0 053. 253 ses to 35 63 8 71 be listed with "- ") (I) - Total 136 136 138 287240 compre 629 342 744 488.186 hensive 870. 382. 243. 251.24 income 80 55 79 (II) Capital investe d and decreas ed by owners 1. Ordinar y shares investe d by the owner 2. Capital contrib uted by the holders of other equity instrum ents 3. Amoun ts of 93Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. share- based payme nts include d in owners' equity 4. Others --- (III) 102 236133133 Profit 663 291628628 distribu 70.5 78.407.907.9 tion 3 522 1. - Approp 102 102 riation 663 663 to 70.5 70.5 surplus 3 3 reserve 2. Approp riation to general risk provisi on 3. Distrib - - - ution to 133 133 133 owners 628 628 628 (or 07.9 07.9 07.9 shareho 2 2 2 lders) 4. Others (IV) Internal carryov er of owners' equity 1. Capital reserve s convert ed to capital (or share capital) 2. 94Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Surplus reserve s convert ed to capital (or share capital) 3. Surplus reserve s to recover loss 4. Retaine d earning s carried forwar d from change s in the defined benefit plan 5. Retaine d earning s carried forwar d from other compre hensive income 6. Others (V) Special reserve 1. Approp riation in the current period 2. Utilizat ion in the 95Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. current period 412412 (VI) 726 726 Others 17.8 17.8 44 IV.Ending 430 - 742 4310798172170189 balance 866 760 226 5832343688841772 of the 408. 604 56.9 0.00284.462342.597 current 50 0.90 9 979.56171.73 period Amount in the previous period Unit: RMB 2023 Equity attributable to the owners of the parent company Other equity Othe Min instruments r ority Total Less: Gene Undi Item Capi com Spec Surp share ownShare Per Trea ral strib Pref tal preh ial lus Othe Subt hold ers'capita pet Ot sury risk uted erred reser ensiv reser reser rs otal ers' equitl ual her share provi profi shar ves e ve ve equit y bon s s sions t es inco y ds me I.Ending 431 524 590 150 150 165 4310264 balance 449 991 605 563 588 622 583222.0 of the 554. 72.1 394. 886 880. 774 0.000 previou 51 3 67 3.31 59 3.90 s year A dd: Change s in 880 880 880 accoun 4.40 4.40 4.40 ting policie s C orrecti on of prior errors O thers II.Beginn 431524590150150165 ing 4310 264 449991614564588623 balance 5832 22.0 554.72.1199.766880.654 of the 0.00 0 513077.71598.30 current year III. - - 114 947 982 - 748 96Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Increas 583 734 571 283 573 234 353 es/decr 146. 497 14.3 93.5 87.2 220 69.7 eases 01 4.65 3 5 2 17.5 2 in the 0 current period (decrea ses to be listed with "- ") (I) -118110-104 Total 734255910681095 compre 497140.166.467492. hensive 4.6584193.9227 income (II) Capital -- investe 490490 d and 000000 decreas 0.000.00 ed by owners 1. Ordina ry - - shares 490 490 investe 000 000 d by 0.00 0.00 the owner 2. Capital contrib uted by the holders of other equity instrum ents 3. Amoun ts of share- based payme nts include d in owners ' equity 4. 97Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Others --- (III) 114 235120120 Profit 571 267696696 distribu 14.3 47.232.932.9 tion 3 966 1. - Approp 114 114 riation 571 571 to 14.3 14.3 surplus 3 3 reserve 2. Approp riation to general risk provisi on 3. Distrib --- ution 120120120 to 696696696 owners 32.932.932.9 (or 666 shareh olders) 4. Others (IV) Interna l carryov er of owners ' equity 1. Capital reserve s convert ed to capital (or share capital) 2. Surplus reserve s convert ed to capital (or 98Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. share capital) 3. Surplus reserve s to recover loss 4. Retaine d earning s carried forwar d from change s in the defined benefit plan 5. Retaine d earning s carried forwar d from other compre hensive income 6. Others (V) Special reserve 1. Approp riation in the current period 2. Utilizat ion in the current period -- -- 117122 (VI) 583 583 073904 Others 146. 146. 43.589.5 0101 89 99Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. IV.Ending 430 - 639 685 160 127 173 4310 balance 866 731 562 342 390 166 107 5832 of the 408. 855 86.4 592. 505 863. 191 0.00 current 50 2.65 6 62 4.93 09 8.02 period 8. Statement of Changes in Owners' Equity of Parent Company Amount in the current period Unit: RMB 2024 Other equity instruments Other Less: compr Item Capital Specia Surplu Undist TotalShare Preferr Perpet Treasu ehensireserve l s ributed Others owners capital ed ual Others ry ves reserve reserve profit ' equity shares bonds shares incom e I.Ending balanc 43105 42825 - 63956 51687 1432 e of 8320. 6131. 7344 286.4 8406. 80416 the 00 23 974.65 6 57 9.61 previo us year A dd: Chang es in accoun ting policie s C orrecti on of prior errors O thers II.Beginn ing 4310542825-63956516871432 balanc 8320.6131.7344286.48406.80416 e of 0023974.656579.61 the current year III.Increas - 10266 79034 89013 es/decr 28748 370.5 526.8 409.1 eases 8.25 3 2 0 in the 100Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. current period (decre ases to be listed with "- ") (I) Total compr - 10266 10237 ehensi 28748 3705. 6217.ve 8.25 27 02 incom e (II) Capital investe d and decrea sed by owners 1. Ordina ry shares investe d by the owner 2. Capital contrib uted by the holder s of other equity instru ments 3. Amou nts of share- based payme nts includ ed in owners ' equity 4. Others 101Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (III) - - 10266 Profit 23629 13362 370.5 distrib 178.4 807.9 3 ution 5 2 1. Appro - 10266 priatio 10266 370.5 n to 370.5 3 surplus 3 reserve 2. Distrib ution - - to 13362 13362 owners 807.9 807.9 (or 2 2 shareh olders) 3. Others (IV) Interna l carryo ver of owners ' equity 1. Capital reserve s conver ted to capital (or share capital ) 2. Surplu s reserve s conver ted to capital (or share capital ) 3. Surplu s reserve 102Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. s to recove r loss 4. Retain ed earnin gs carried forwar d from change s in the define d benefit plan 5. Retain ed earnin gs carried forwar d from other compr ehensi ve incom e 6. Others (V) Specia l reserve 1. Appro priatio n in the current period 2. Utiliza tion in the current period (VI) Others IV. 43105 42825 - 74222 59591 1521 Ending 8320. 6131. 7632 656.9 2933. 81757 balanc 00 23 462.90 9 39 8.71 103Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. e of the current period Amount in the previous period Unit: RMB 2023 Other equity instruments Other Less: compr Item Capital Specia Surplu Undist TotalShare Preferr Perpet Treasu ehensireserve l s ributed Others owners capital ed ual Others ry ves reserve reserve profit ' equity shares bonds shares incom e I.Ending balanc 43105 42825 52499 42583 1337 e of 8320. 6131. 172.1 4010. 64763 the 00 23 3 57 3.93 previo us year A dd: Chang es in accoun ting policie s C orrecti on of prior errors O thers II.Beginn ing 431054282552499425831337 balanc 8320.6131.172.14010.64763 e of 00233573.93 the current year III.Increas es/decr eases in the - 11457 91044 95156 current 7344 114.3 396.0 535.6 period 974.65 3 0 8 (decre ases to be listed 104Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. with "- ") (I) Total compr - 11457 10722 ehensi 7344 1143. 6168.ve 974.65 29 64 incom e (II) Capital investe d and decrea sed by owners 1. Ordina ry shares investe d by the owner 2. Capital contrib uted by the holder s of other equity instru ments 3. Amou nts of share- based payme nts includ ed in owners ' equity 4. Others (III) - - 11457 Profit 23526 12069 114.3 distrib 747.2 632.9 3 ution 9 6 1.11457- Appro 114.3 11457 105Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. priatio 3 114.3 n to 3 surplus reserve 2. Distrib ution - - to 12069 12069 owners 632.9 632.9 (or 6 6 shareh olders) 3. Others (IV) Interna l carryo ver of owners ' equity 1. Capital reserve s conver ted to capital (or share capital ) 2. Surplu s reserve s conver ted to capital (or share capital ) 3. Surplu s reserve s to recove r loss 4. Retain ed 106Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. earnin gs carried forwar d from change s in the define d benefit plan 5. Retain ed earnin gs carried forwar d from other compr ehensi ve incom e 6. Others (V) Specia l reserve 1. Appro priatio n in the current period 2. Utiliza tion in the current period (VI) Others IV.Ending balanc 43105 42825 - 63956 51687 1432 e of 8320. 6131. 7344 286.4 8406. 80416 the 00 23 974.65 6 57 9.61 current period 107Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. III. Basic Information of the Company Shenzhen Tellus Holding Co. Ltd. (hereinafter referred to as "the Company") is a limited liability company registered in Shenzhen Administration for Industry and Commerce on November 10 1986. The Company was reorganized and established from the former Shenzhen Machinery Industry Company with the approval through the Reply on the Reorganization of Shenzhen Machinery Industry Company into Shenzhen Tellus Machinery Co.Ltd. (SFBF [1991] No. 1012) issued by the General Office of Shenzhen Municipal People's Government. The Company currently holds a business license with a unified social credit code of 91440300192192210U with a registered capital of RMB 431058320.00 and a total of 431058320 shares including 392778320 A shares and 38280000 B shares without trading restrictions on sale. The business address of the Company's headquarters is 3-4/F Tellus Building 2nd Shuibei Road Luohu District Shenzhen. The legal representative is Fu Chunlong.In 1993 with the approval from the Reply on the Reorganization of Shenzhen Tellus Machinery Co. Ltd. into a Public Limited Liability Company (SFBF [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 Machinery Electric Co. Ltd. (SRYFZ [1993] No. 092) issued by Shenzhen Special Economic Zone Branch of the People's Bank of China the Company was reorganized into a public limited liability company through an initial public offering with a registered capital of RMB 166880000.00 and a total share capital of 166880000 shares. 120900000 shares were converted from former assets 25980000 were issued as A shares and 20000000 were issued as B shares. Shares issued by the Company had a par value of RMB 1 per share. On June 21 1993 the Company's shares were listed and traded on the Shenzhen Stock Exchange.According to the resolution of the Company's 1993 Annual General Meeting of Shareholders based on the share capital of 166880000 shares as of December 31 of that year the Company distributed a cash dividend of RMB 0.5 and issued 2 bonus shares to all shareholders for every 10 shares held totaling 33376000 shares which was implemented in 1994. After the share dividend the registered capital was increased to RMB 200256000.00. According to the resolution of the Company's 1994 Annual General Meeting of Shareholders based on the share capital of 200256000 shares as of December 31 of that year the Company distributed a cash dividend of RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held with 0.5 additional shares totaling 20025600 shares which was implemented in 1995. The registered capital was increased to RMB 220281600.00 after the share distribution and transfer. According to the resolution of the Company's 1994 Annual General Meeting of Shareholders based on the share capital of 200256000 shares as of December 31 of that year the Company distributed a cash dividend of RMB 0.5 and issued 0.5 bonus shares to all shareholders for every 10 shares held with 0.5 additional shares totaling 20025600 shares which was implemented in 1995. The registered capital was increased to RMB 220281600.00 after the share distribution and transfer. According to the resolution of the 4th Extraordinary General Meeting of Shareholders of the Company in 2014 upon the approval of the Reply to the Approval of Non-public Offering of Shares by Shenzhen Tellus Holding Co. Ltd. (ZJXK [2015] No.173) issued by the China Securities Regulatory Commission the Company issued 77000000 ordinary A shares to Shenzhen Special Economic Zone Development Group Co. Ltd. and Shenzhen Capital Fortune Jewelry Industry Investment Enterprise (Limited Partnership) in 2015. After the issuance the registered capital was increased to RMB 297281600.00. 108Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. According to the resolution of the Company's 2018 Annual General Meeting of Shareholders based on the share capital of 297281600 shares as of December 31 of that year the Company increased 4.5 shares for every 10 shares to all shareholders through capital reserves totaling 133776720 shares which was implemented in 2019. After the transfer the registered capital was increased to RMB 431058320.00. Main business activities: property leasing and services jewelry operation.The financial statements and notes to the financial statements were approved by the Fourteenth Formal Meeting of the Tenth Board of Directors of the Company on March 26 2025.IV. Preparation Fundamentals for Financial Statements 1. Preparation fundamentals The Company prepared the financial statements according to Accounting Standards for Business Enterprises issued by the Ministry of Finance as well as relevant application guidelines interpretations and other provisions (hereinafter collectively referred to as "ASBE"). In addition the Company also disclosed relevant financial information per the Rules for the Preparation of Information Disclosure of Companies Issuing Securities to the Public No.15 — General Provisions on Financial Reports (Revised in 2023) issued by the CSRC. 2. Continuing operations The financial statements have been prepared based on continuing operations.V. Significant Accounting Policies and Accounting Estimates Notes to specific accounting policies and accounting estimates: The Company has determined its capitalization criteria for the depreciation of investment properties depreciation of fixed assets and research and development expenditures and policies for revenue recognition based on the characteristics of its production and operations. For details please refer to Notes V. 14 V.15 and V.23 to the financial statements. 1. Declaration on compliance with ASBE The financial statements prepared by the Company met the requirements of ASBE and truly and fully reflected the consolidated and Company's financial position as of December 31 2024 and information such as consolidated and Company's financial performance and consolidated and Company's cash flow for the year then ended. 2. Accounting period The accounting period of the Company is from January 1 to December 31 of each calendar year. 109Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3. Business cycle The business cycle of the Company is 12 months. 4. Bookkeeping base currency The Company and its domestic subsidiaries take RMB as the bookkeeping base currency. The Company uses RMB to prepare the financial statements. 5. Method of determining significance criteria and basis of selection □Applicable □ Not applicable Item Significance criteria Significant receivables with provision for bad debts drawn on a Amount ≥ RMB 1000000.00 or accounts for more than 1% of single basis various receivables Significant construction in progress The budget amount for a single project is ≥ 20000000.00 Accounts payable with a single account receivable age of more than one year/other payables accounting for more than 1% of Significant accounts payable and other payables the total accounts payable with an amount ≥ RMB 1000000.00 The total revenue from related parties accounts for more than 10% of the total revenue in the consolidated financial Significant non-wholly-owned subsidiaries statements or the absolute value of net profit accounts for more than 10% of the net profit in the consolidated financial statements.Single investment activity accounts for more than 10% of the Significant investing activities and projects total cash inflows or outflows related to investment activities or the outflows amount to ≥ RMB 100000000.00.Significant receivables with provision for bad debts drawn on a Amount ≥ RMB 1000000.00 or accounts for more than 1% of single basis various receivables Significant construction in progress The budget amount for a single project is ≥ 20000000.00 The book value of long-term equity investment in a single investee is more than RMB 15 million or the profit and loss on Significant joint ventures or associates the long-term equity investment under the equity method accounts for over 3% of the Company's consolidated net profit.The Company recognizes the profit distribution after the Significant events after the balance sheet date balance sheet date as a significant event 6. Accounting treatment method for business mergers under common control and not under common control (1) Business mergers under common control For a business merger under common control the merging party shall measure the assets and liabilities acquired from the merged party at their book value on the merger date in the consolidated financial statements of the ultimate controlling party. The difference between the book value of the net assets obtained in the business merger and the book value of the merger is used to adjust the capital reserve. Where the capital reserve is insufficient for offset retained earnings shall be adjusted.Business mergers under common control realized step-by-step through multiple transactions 110Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The assets and liabilities acquired by the merging party from the merged party shall be measured based on their book value on the merger date in the consolidated financial statements of the ultimate controlling party. According to the difference between the sum of the book value of holding investment before merger and the book value of newly paid consideration on the merger date and the book value of net assets obtained by merging the capital reserve shall be adjusted; if the capital reserve is insufficient for offset retained earnings may be adjusted. The long-term equity investment held before the acquisition of the merged party's control by the merging party and the profit or loss other comprehensive income and changes in other owners' equities that have been recognized during the period from the date of acquisition of the original equity or the date of common control of the merging party and the merged entity (which is later) to the merging date shall offset against the retained beginning earnings or current profits and losses respectively during the period of the comparative statement. (2) Business mergers not under common control For a business merger not under common control the merger costs are the fair value of assets paid liabilities incurred or assumed and equity securities issued by the Company on the acquisition date to obtain control over the acquiree. The assets liabilities and contingent liabilities of the acquiree obtained are recognized as per the fair value on the acquisition date.The difference between the merging cost and the fair value of identifiable net assets obtained from the acquiree shall be recognized as goodwill and successively measured by deducting the accumulative depreciation provision by cost; the difference between the merging cost and the fair value of identifiable net assets obtained from the acquiree shall be included in the current profits and losses after review.Business mergers not under common control realized step-by-step through multiple transactions The merging cost shall be equal to the sum of the consideration paid on the acquisition date and the fair value of the acquiree's equity which has been held before the acquisition date on the acquisition date. The acquiree's equity held before the acquisition date shall be re-measured at its fair value on the acquisition date and the difference between the fair value and its book value shall be included in the current investment income; if the acquiree's equity held before the date of acquisition involves other comprehensive income changes in other owners' equity shall be transformed into the current profit on the acquisition date except comprehensive income generated due to remeasuring the change in net liabilities or new assets of defined benefit plan by the investee and other comprehensive income related to non-trading equity instrument investment originally measured at fair value through other comprehensive income. (3) Disposal of related handling charges for business mergers Intermediation costs for audit legal service assessment and consultation and other administrative expenses incurred shall be included in the current profit and loss when incurred during the business mergers. The transaction expenses of equity securities or debt securities issued as merger 111Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. consideration shall be included in the initially recognized amount of equity securities or debt securities. 7. Judgment standard for control and preparation of consolidated financial statements (1) Judgment standard for control The consolidation scope of consolidated financial statements is determined based on control.Control means the power of the Company over the investee with which the Company enjoys variable returns through participating in related activities of the investee and can influence its amount of return by using its power over the investees. Once changes in relevant facts and circumstances lead to changes in relevant elements involved in the above definition of control the Company will conduct a reassessment.When judging whether to include a structured entity in the scope of consolidation the Company evaluates whether to control the structured entity based on all facts and circumstances including evaluating the purpose and design of the establishment of the structured entity identifying the types of variable returns and bearing part or all of the return variability by participating in its related activities. (2) Preparation of consolidated financial statements Consolidated financial statements are prepared by the Company based on the financial statements of the Company and its subsidiaries as well as other related data. In the preparation of consolidated financial statements the accounting policies and accounting periods of the Company and its subsidiaries are required to be consistent and significant transactions and current balances between companies are offset.Where a subsidiary or business has been acquired through a business combination involving enterprises under common control in the reporting period the subsidiary or business is deemed to be included in the consolidated financial statements from the date they are controlled by the ultimate controlling party. Their operating results and cash flows are respectively included in the consolidated income statement and consolidated cash flow statement from the date they are controlled by the ultimate controlling party.For subsidiaries and businesses increased due to business combination under different control during the reporting period the revenues expenses and profits of such subsidiaries and businesses from the purchase date to the end of the reporting period shall be included in the consolidated income statement and their cash flows shall be included in the consolidated cash flow statement.The portion of shareholders' equity of subsidiaries not belonging to the Company shall be listed separately under the item "Shareholders’ Equity" in the consolidated balance sheet as minority 112Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. shareholders’ equity. The portion of net profit or loss of subsidiaries in the current period belonging to minority shareholders’ equity shall be listed separately under the item "Minority Shareholders' Profit or Loss" in the consolidated income statement. If the loss of a subsidiary borne by minority shareholders exceeds its share in the owner's equity of the subsidiary at the beginning of the period the balance shall still offset the minority equity. (3) Acquisition of equity from minority shareholders of subsidiaries The capital reserve in the consolidated balance sheet shall be adjusted due to the balance between the long-term equity investment cost newly obtained from minority equity and the net asset share of subsidiaries calculated continuously starting from the purchase date or consolidation as per the new shareholding ratio and the balance between disposing money obtained from partial disposal of subsidiaries' equity investment without loss of control and the net asset share of subsidiaries calculated continuously starting from the purchase date or consolidation corresponding to the disposal of long-term equity investment. If the capital reserve is insufficient for offset retained earnings may be adjusted. (4) Disposal of the loss of control over subsidiaries If the Company's control over the original subsidiaries is lost due to the disposal of part of an equity investment or other reasons the remaining equity shall be recalculated at fair value on the day when the control is lost. The difference between the sum of consideration acquired from the disposal of equity and the fair value of the remaining equity minus the sum of the share of net assets and the goodwill of the original subsidiaries calculated constantly based on the original shareholding proportion from the acquisition date shall be included in current investment income at the time of loss of control.When the Company loses control over the original subsidiaries other comprehensive income in connection with equity investment of the original subsidiaries shall be subject to accounting treatment using the same basis on which the original subsidiaries directly dispose of relevant assets or liabilities and other changes in owners' equity related to the original subsidiaries under the equity method shall be transferred into current profit or loss at the time of loss of control. 8. Classification of joint arrangements and accounting treatment methods for joint operations A joint arrangement refers to an arrangement jointly controlled by two or more participants. The joint arrangement of the Company can be classified into joint operation and joint venture. (1) Joint operations Joint operations refer to joint arrangements in which the Company enjoys assets related to the arrangements and bears liabilities related to the arrangements. 113Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Company recognizes the following items related to the quantum of interest in joint operations and carries out accounting treatment per relevant provisions of ASBE: A. Recognize the assets held solely and the assets held jointly identified as per its shares; B. Recognize the liabilities borne solely and the liabilities borne jointly identified as per its shares; C. Recognize the revenue generated from the sale of shares enjoyed in the joint operation; D. Recognize the revenue generated from the sale of shares enjoyed in the joint operation as per its shares; E. Recognize the expenses incurred separately and the expenses incurred from the joint operation as per their shares. (2) Joint ventures Joint ventures refer to joint arrangements in which the Company only has rights over the net assets of the arrangements.The Company carries out accounting treatment for investment in joint ventures according to the provisions on equity method accounting of long-term equity investments. 9. Standards for defining cash and cash equivalents Cash refers to cash on hand and deposits that are readily available for payment. Cash equivalents refer to short-term highly liquid investments held by the Company that are readily convertible into known amounts of cash and have an insignificant risk of change in value. 10. Foreign currency transaction and foreign currency statement translation Foreign currency transactions of the Company are translated into bookkeeping base currency according to the spot exchange rate on the transaction date.On the balance sheet date monetary items denominated in foreign currencies are translated at the spot exchange rate on that date. Exchange differences arising from the difference between the spot exchange rate on the balance sheet date and that at initial recognition or on the previous balance sheet date shall be included in current profit and loss; foreign currency non-monetary items measured at historical cost are still translated at the spot exchange rate on the transaction date; foreign currency non-monetary items measured at fair value shall be translated at the spot exchange rate on the date when the fair value is determined. The difference between the translated amount in recording currency and the original amount in recording currency shall be included in current profit and loss or other comprehensive incomes according to the nature of the non- monetary items. 114Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 11. Financial instruments Financial instruments refer to contracts that form the financial assets of a party and form financial liabilities or equity instruments of other parties. (1) Recognition and derecognition of the financial instruments The Company will recognize an item of financial asset or financial liability at the time when it becomes a party to the contract of the financial instruments.The financial assets shall be derecognized if one of the following conditions is met: * The contractual right for collecting cash flow of the financial assets is terminated; * This financial asset has been transferred and meets the following derecognition conditions for the transfer of financial assets.If the current obligation of a financial liability has been discharged in whole or in part such financial liability or part thereof shall be derecognized. The Company (the debtor) and the creditor sign an agreement to replace the existing financial liabilities by assuming new financial liabilities and if the contractual terms of the new financial liabilities are substantially different from those of the existing financial liabilities the existing financial liabilities shall be derecognized and the new financial liabilities shall be recognized at the same time.Financial assets transacted conventionally are subject to accounting recognition and derecognition on the transaction day. (2) Classification and measurement of financial assets According to the business mode of financial assets management and the contractual cash flow characteristics of financial assets upon initial recognition the Company classifies financial assets into financial assets measured at amortized cost financial assets at fair value with changes into other comprehensive income and financial assets at fair value through profit or loss.Financial assets are measured at fair value at initial recognition. For financial assets at fair value through profit or loss the related transaction fees are directly included in the current profit or loss; for other financial assets the related transaction fees are included in the initially recognized amount. For accounts receivable arising from the sale of products or the provision of labor services which do not include or do not consider significant financing components the amount of consideration the Company is expected to be entitled to receive is taken as the initial recognition amount.Financial assets measured at amortized cost The Company classifies the financial assets that meet all of the following conditions and are not designated to be measured at fair value through profit or loss as those measured at amortized cost: 115Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The business model of the Company to manage such financial assets is aimed at collecting contractual cash flows; The contract terms of the financial assets stipulate that cash flows generated on a specific date are only payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are measured at amortized cost using the effective interest method. Any gains or losses on financial assets at amortized cost that are not part of the hedging relationship are charged to the current profit or loss at derecognition amortization using the effective interest method or recognition of impairment.Financial assets at fair value with changes into other comprehensive income The Company classifies financial assets that meet the following conditions and are not designated to be financial assets at fair value through profit or loss as financial assets at fair value through other comprehensive income: The Company manages the financial asset in a business mode that aims at both collecting contractual cash flows and selling the financial asset; The contract terms of the financial assets stipulate that cash flows generated on a specific date are only payments of principal and interest based on the outstanding principal amount.After initial recognition such financial assets are subsequently measured at fair value. Interest impairment losses or gains and exchange gains and losses calculated by the effective interest method are included in current profits and losses and other gains or losses are included in other comprehensive income. At the time of derecognition the accumulated gains or losses previously included in other comprehensive income shall be transferred out from other comprehensive income and included in current profits and losses.Financial assets at fair value through profit or loss Except for the above-mentioned financial assets measured at amortized cost and fair value through other comprehensive income the Company classifies all remaining financial assets as financial assets at fair value through profit or loss. At the initial recognition to eliminate or significantly reduce accounting mismatches the Company irrevocably designates some financial assets that should have been measured at amortized costs or fair value with changes into other comprehensive income as the financial assets at fair value through profit or loss.Such financial assets are subsequently measured at fair value after initial recognition and the resulting gains or losses (including interest and dividend revenue) are included in current profit and loss unless the financial assets are part of the hedging relationship.However for non-trading equity instrument investments the Company irrevocably designates them as financial assets at fair value with changes into other comprehensive income upon initial 116Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. recognition. The designation is made on a single investment basis and the related investments meet the definition of equity instruments from the perspective of the issuer.After initial recognition such financial assets are subsequently measured at fair value. Dividend income that meets the conditions is included in profit or loss and other gains or losses and changes in fair value are included in other comprehensive income. Upon derecognition the accumulated gains or losses previously included in other comprehensive income are transferred out of other comprehensive income and included 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 the cash flow source of the financial assets managed by the Company which may be the collection of contract cash flow the sale of financial assets or both. The Company determines the business model for managing financial assets based on objective facts and specific business objectives for managing financial assets decided by key management personnel.The Company evaluates the contractual cash flow characteristics of financial assets to determine whether the contractual cash flow generated by the relevant financial assets on the specific date is only the payment of principal and interest based on the principal amount outstanding. In this context principal refers to the fair value of financial assets at initial recognition; interest includes consideration for the time value of money credit risk associated with the amount of principal outstanding over a specific period and other fundamental borrowing risks costs and profits. In addition the Company evaluates the contract terms that may cause changes in the time distribution or amount of contractual cash flows of financial assets to determine whether they meet the requirements for the above-mentioned contractual cash flow characteristics.Only when the Company changes the business mode of managing financial assets will all affected related financial assets be reclassified on the first day of the first reporting period after the business mode changes otherwise financial assets cannot be reclassified after initial recognition. (3) Classification and measurement of financial liabilities Financial liabilities of the Company are classified into financial liabilities measured at fair value through profit or loss and financial liabilities measured at amortized cost upon initial recognition.For financial liabilities not classified as financial liabilities at fair value through profit or loss the transaction costs are recognized in the initially recognized amount.Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities and those designated to be measured at fair value through profit or loss upon initial recognition.Such financial liabilities shall be subsequently measured at fair value and the profits or losses arising from changes in fair value as well as dividends and interest expenditures related to such financial liabilities shall be included in current profits and losses. 117Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Financial liabilities measured at amortized cost Other financial liabilities are subsequently measured at amortized cost using the effective interest method and gains or losses arising from derecognition or amortization are included in current profits and losses.Difference between financial liabilities and equity instruments Financial liabilities refer to those that meet one of the following conditions: * Contractual obligations to deliver cash or other financial assets to other parties.* A contractual obligation to exchange financial assets or financial liabilities with another entity under potentially unfavorable conditions.* Non-derivative contracts that must or can be settled with the enterprise's equity instruments in the future and according to which the enterprise will deliver a variable number of its equity instruments.* Derivative contracts that must or can be settled with the enterprise's equity instruments in the future except for derivative contracts where a fixed amount of its equity instruments is exchanged for a fixed amount of cash or other financial assets.Equity instruments refer to contracts that can prove the ownership of residual equity in an enterprise's assets after all liabilities are deducted.If the Company cannot unconditionally avoid performing a contractual obligation by delivering cash or other financial assets the contractual obligation meets the definition of financial liabilities.If a financial instrument must or can be settled with the Company's equity instrument it is necessary to consider whether the Company's equity instruments used for the settlement of such instruments are used as substitutes for cash or other financial assets or to enable the instrument holder to enjoy residual equity in the assets of the issuer after all liabilities are deducted. If the situation 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 option contracts among others. It is initially measured at the fair value on the date of signing the derivative transaction contract and subsequently measured at its fair value. Derivative financial instruments with positive fair values are recognized as an asset and those with negative fair values as a liability. Any gain or loss arising from changes in fair value that does not comply with the provisions of hedge accounting is directly included in current profits and losses. 118Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. For hybrid instruments containing embedded derivative instruments if the main contract is a financial asset the relevant provisions of financial asset classification shall apply to the hybrid instruments as a whole. If the main contract is not a financial asset and the hybrid instrument is not measured at fair value through profit or loss for accounting treatment the embedded derivative instruments are not closely related to the main contract in terms of economic characteristics and risks and have the same conditions as the embedded derivative instruments. If the separately existing instruments meet the definition of derivative instruments the embedded derivative instruments shall be separated from the hybrid instruments and treated as separate derivative financial instruments. If the embedded derivative instruments cannot be measured separately at the time of acquisition or on the subsequent balance sheet date the hybrid instruments are designated as financial assets or financial liabilities at fair value through profit or loss as a whole. (5) Fair value of financial instruments Refer to Note V. 11 for determination methods for fair values of financial assets and financial liabilities. (6) Impairment of financial assets The Company carries out impairment accounting treatment and recognizes the loss provision for the following items based on expected credit losses: Financial assets measured at amortized cost; Receivables and debt instrument investments at fair value with changes into other comprehensive income; Contract assets as defined in the Accounting Standards for Business Enterprises No. 14 - Revenue; Lease receivables; Financial guarantee contracts (except for those measured at fair value through profit or loss where the transfer of financial assets does not meet derecognition conditions or is continuously involved in the transferred financial assets).Measurement of expected credit loss The expected credit loss refers to the weighted average of the credit losses of financial instruments with the risk of default as weight. Credit loss refers to the difference between all contract cash flow that the Company discounts at the original effective interest rate and is receivable per the contract and all cash flow expected to be received that is the present value of all cash shortages. 119Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Company considers reasonable and reliable information about past events current situation and forecast of the future economic situation and takes the risk of default as the weight to calculate the probability-weighted amount of the present value of the difference between the cash flow receivable from the contract and the cash flow expected to be received and recognize the expected credit loss.The Company separately measures the expected credit losses of financial instruments at different stages. If the credit risk of financial instruments has not increased significantly since initial recognition it is in the first stage. The Company measures the loss provision according to the expected credit losses in the next 12 months; if the credit risk of a financial instrument has increased significantly since initial recognition but no credit impairment has occurred it is in the second stage. The Company measures the loss provision according to the expected credit loss of the instrument throughout its duration; if a financial instrument has been credit-impaired since initial recognition it is in the third stage. The Company measures the loss provision according to the expected credit loss of the instrument throughout its duration.For financial instruments with low credit risk on the balance sheet date the Company assumes that their credit risks have not increased significantly since initial recognition and measures the loss provision according to the expected credit losses in the next 12 months.The expected credit loss of the whole duration refers to the expected credit loss caused by all possible default events of financial instruments throughout the estimated duration. The expected credit loss in the next 12 months refers to the expected credit loss caused by the possible default events of financial instruments within 12 months (or the expected duration if the expected duration of financial instruments is less than 12 months) after the balance sheet date which is part of the expected credit loss in the whole duration.When the expected credit loss is measured the longest term that the Company needs to consider is the longest contract term that the enterprise faces credit risk (including the option to renew the contract).For financial instruments in the first and second stages and with low credit risk the Company calculates interest income according to the book balance before deducting provision for impairment and the actual interest rate. For financial instruments in the third stage the Company calculates interest income according to the amortized cost (that is the book balance less the impairment provision) and the effective interest rate.For notes receivable accounts receivable financing of accounts receivable contract assets and other receivables if the credit risk characteristics of a customer are significantly different from those of other customers in the portfolio or the credit risk characteristics of the customer have changed significantly the Company shall make provision for bad debts on the receivable item.Except for receivables with provision for bad debts drawn on a single basis the Company divides receivables into portfolios according to credit risk characteristics and calculates provision for bad debts based on portfolios. 120Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Notes receivable and accounts receivable For notes receivable and accounts receivable regardless of whether there is a significant financing component the Company always measures their loss provision according to the amount equivalent to the expected credit loss in the whole duration.When the information of expected credit loss cannot be evaluated at a reasonable cost for a single financial asset or contract asset the Company divides the notes receivable accounts receivable and contract assets into portfolios according to the credit risk characteristics calculates the expected credit loss based on the portfolio and determines the portfolio based on the following: A. Notes receivable Notes receivable portfolio 1: bank acceptance bill Notes receivable portfolio 2: Commercial acceptance bills B. Accounts receivable Accounts receivable portfolio 1: Leasing and other portfolio Accounts receivable portfolio 2: Jewelry sales business portfolio For notes receivable and contract assets divided into portfolios the Company refers to the historical credit loss experience combines the current situation with the forecast of the future economic situation and calculates the expected credit loss through default risk exposure and the expected credit loss rate for the whole duration.For the accounts receivable divided into portfolios the Company refers to the historical credit loss experience combines the current situation with the forecast of the future economic situation formulates the comparison table of aging of accounts receivable and the expected credit loss rate in the entire duration and calculates the expected credit loss. The age of accounts receivable shall be calculated from the date of recognition.Other receivables The Company divides other receivables into several portfolios based on credit risk characteristics calculates the expected credit loss based on the portfolio and determines the portfolio based on the following: Other receivables portfolio 1: Aging portfolio Other receivables portfolio 1: Portfolio of deposits and security deposits receivable Other receivables portfolio 3: Portfolio of related party transactions within the consolidation scope 121Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. For other receivables that are divided into portfolios 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 whole duration. The age of other receivables divided into portfolios by aging shall be calculated from the date of recognition.Creditor's rights investments other creditor's rights investments For creditor's rights investments and other creditor's rights investments the Company calculates the expected credit loss according to the nature of the investment as well as various types of counterparty and risk exposure through default risk exposure and the expected credit loss rate in the next 12 months or the entire duration.Assessment of significant increase in credit risk To determine the relative changes in the default risks of financial instruments in the duration and assess whether the credit risk of financial instruments has increased significantly since initial recognition the Company compares the default risk of financial instruments on the balance sheet date with the default risk on the initial recognition date.When determining whether the credit risk has significantly increased since the initial recognition the Company considers reasonable and well-founded information obtained without unnecessary additional cost or effort including forward-looking information. The information considered by the Company includes: The debtor fails to pay the principal and interest by the contract expiration date; A significant deterioration (if any) in the external or internal credit ratings of a financial instrument whether it has occurred or is anticipated; A significant deterioration in the operating performance of the debtor whether it has occurred or is anticipated; Changes in the existing or expected technical market economic or legal environment which will have a significant adverse impact on the debtor's ability to repay the Company.According to the nature of financial instruments the Company evaluates whether the credit risk has increased significantly based on individual financial instruments or portfolios of financial instruments. When evaluating based on portfolios of financial instruments the Company may classify the financial instruments based on common credit risk characteristics such as overdue information and credit risk rating.If the financial instrument is overdue for more than 30 days the Company determines that its credit risk has significantly increased.The Company considers that a default of a financial asset occurs when: 122Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The borrower is unlikely to pay in full what is owed to the Company and the assessment does not cover the realization of the collateral (if held) or other recourse actions by the Company; Financial assets are overdue for more than 90 days.Credit-impaired financial assets On the balance sheet date the Company evaluates whether the credit impairment has occurred to financial assets measured by amortized cost and at fair value with changes into other comprehensive income; When one or more events that have an adverse effect on the expected future cash flow of a financial asset occur the financial asset becomes a credit-impaired financial asset. Evidence for credit-impaired financial assets includes the following observable information: The issuer or debtor is caught in a serious financial difficulty; The debtor breaches the agreement of contract such as default or overdue payment of interest or principal; The Company grants concessions to the debtor due to economic or contractual considerations related to the debtor's financial difficulties which would not be made under any other circumstances; There lies a great probability of bankruptcy or other financial restructuring for the debtor; The issuer or debtor is caught in financial difficulties which leads to the disappearance of the active market of the financial asset; Presentation of provision for expected credit loss To reflect the changes in the credit risk of financial instruments since the initial recognition the Company re-measures the expected credit loss on each balance sheet date. The increase or reversal amount of provision for loss therefrom shall be regarded as impairment loss or gain and included in current profits and losses. For the financial assets measured at amortized cost the provision for loss shall be used to offset against the book value of financial assets presented in the balance sheet; for the debt investments measured at fair value with changes into other comprehensive income the Company recognizes the provision for loss in other comprehensive income and the book value of financial assets will not be deducted.Write-off When the Company no longer reasonably expects that the contractual cash flow of the financial asset can be recovered in whole or in part the book balance of the financial asset is directly written down. Such write-downs may constitute the derecognition of related financial assets. This usually happens when the Company determines that the debtor has no assets or sources of revenue to generate sufficient cash flow to repay the amount to be written down. However according to 123Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. the Company's procedures for recovering due amounts written-down financial assets may still be affected by implementation activities.If the write-down financial assets are recovered later they shall be regarded as the reversal of impairment loss and included in the current profits and losses. (7) Transfer of financial assets Transfer of financial assets refers to the assignment or delivery of financial assets to the other party other than the issuer of such financial assets (transferee).If the Company has transferred substantially all risks and rewards of ownership of a financial asset to the transferee the financial asset shall be derecognized; if it retains substantially all risks and rewards of ownership of the financial asset the financial asset shall not be derecognized.If the Company neither transfers nor retains almost all risks and rewards of ownership of a financial asset it shall deal with them as follows: If the control over the financial asset is waived the financial asset shall be derecognized and the assets and liabilities incurred shall be recognized; if the control over the financial asset is not waived the relevant financial asset shall be recognized to the extent that it continues to be involved in the transferred financial asset and the relevant liabilities shall be recognized accordingly. (8) Offset of financial assets and liabilities When the Company has a legal right to offset the recognized financial assets and financial liabilities and such legal right is currently enforceable and the Company plans to settle on a net basis or realize the financial assets and pay off the financial liabilities simultaneously the financial assets and financial liabilities are presented in the balance sheet at the amount after offsetting each other. In addition financial assets and financial liabilities are presented separately in the balance sheet and are not mutually offset.The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business. 12. Inventories The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business. (1) Classification of inventories The Company's inventories include raw materials finished goods hedged items materials processed on a commission basis and goods sold on a commission basis. (2) Valuation method for dispatched inventories 124Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Inventories of the Company are priced by actual cost when acquired. Raw materials and goods in stock shall be sent out by first-in first-out method. (3) Recognition and withdrawal of provision for decline in the value of inventories On the balance sheet date inventories are valued by cost or net realizable value whichever is lower. If the net realizable value is lower than the cost the provision for decline in the value of inventories is accrued.Net realizable value is the estimated selling price less estimated costs to be incurred upon completion estimated selling expenses and related taxes. When the net realizable value of inventories is determined the obtained concrete evidence is taken as a basis and the purpose of holding inventories and the impact of matters after the balance sheet date are taken into consideration.The Company usually conducts the provision for decline in the value of inventories on an individual inventory item basis. For the inventories with high quantity and low unit price the provision for decline in the value of inventories will be done by inventory class.On the balance sheet date if the factors affecting the previous write-down of inventory value have disappeared the provision for decline in the value of inventories shall be reversed within the amount original provision. (4) Inventory system The Company adopts the perpetual inventory system. (5) Amortization methods for low-value consumables and packing materials The Company adopts the one-off amortization method for low-value consumables collected. 13. Long-term equity investments Long-term equity investments include equity investments in subsidiaries joint ventures and associates. When the Company can exercise significant influence over the investee the investee is an associate. (1) Recognition of initial investment cost Long-term equity investment formed by business combination: For long-term equity investment acquired through business combination under common control the book value share of the owner's equity of the combined party in the consolidated financial statements of the ultimate controlling party shall be recognized as the investment cost on the combination date; for long- term equity investment acquired through business combination under different control the combination cost shall be recognized as the investment cost of long-term equity investment. 125Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. For long-term equity investments acquired by other methods: For those acquired by cash payment the actual purchase price shall be taken as the initial investment cost; for those acquired by issuing equity securities the fair value of issued equity securities shall be taken as the initial investment cost. (2) Subsequent measurement and recognition of related profit or loss Investments in subsidiaries are accounted for using the cost method unless they meet the conditions of being held for sale; investments in associates and joint ventures are calculated through the equity method.For long-term equity investments calculated by cost method except for the declared but not yet released cash dividends or profits included in the actual price or consideration paid when acquiring the investment the distributed cash dividends or profits declared by the investee shall be recognized as investment income and included in current profits and losses.For long-term equity investments calculated through the equity method if the initial investment cost is greater than the share of fair value of net identifiable assets of the investee at the time of investment the investment cost of the long-term equity investment shall not be adjusted; if the initial investment cost is less than the share of fair value of net identifiable assets of the investee at the time of investment the book value of the long-term equity investment shall be adjusted and the difference shall be included in current profits and losses.For equity method-based calculation the investment income and other comprehensive income shall be recognized respectively according to the share of the net profits and losses and other comprehensive income realized by the investee that shall be enjoyed or shared. Meanwhile the book value of the long-term equity investment shall be adjusted. The part of the due share shall be calculated according to the distributed profit or cash dividend declared by the investee and the book value of the long-term equity investment shall be reduced accordingly. For other changes of owners' equity of the investee apart from net profit and loss other comprehensive income and profit distribution the book value of long-term equity investment shall be adjusted and included in capital reserve (other capital reserves). The recognition of the share of the investee's net profits and losses that should be enjoyed is based on the fair value of the identifiable assets of the investee at the time of investment acquisition. The investee's net profit is then adjusted per the Company's accounting policies before recognition during the accounting period.If it can exert a significant influence or implement joint control to the investee but not constitute the control due to the additional investment and other causes on the date of transition the sum of the fair value of equity originally held and the new investment cost shall be regarded as the initial investment cost accounted through the equity method. If the original equity is classified as a non- trading equity instrument investment measured at fair value with changes into other comprehensive income the related accumulated changes in fair value originally included in other comprehensive income shall be transferred to retained earnings in accounting using the equity method. 126Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Suppose the Company loses joint control over or significant influence on the investee due to the disposal of partial equity investment and other reasons. In that case the remaining equity after disposal shall be subject to accounting treatment according to the Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments on the date of losing joint control or significant influence and the difference between fair value and book value shall be included in current profits and losses. Other comprehensive income recognized from the original equity investment due to accounting through the equity method shall be subject to accounting treatment using the same basis on which the investee directly disposes of relevant assets or liabilities when the accounting with the equity method is terminated; other changes in owner's equity related to the original equity investment shall be transferred into current profits and losses.If the Company loses control over the investee due to the disposal of partial equity investment or other reasons and the residual equity after disposal can exercise joint control over or significant influence on the investee it shall be accounted for through the equity method instead and adjusted as if it had been calculated through the equity method since it was acquired; if the residual equity after disposal cannot exercise joint control over or significant influence on the investee it shall be subject to accounting treatment according to relevant provisions of Accounting Standards for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments and the difference between its fair value and book value since the date of losing control shall be included in current profits or losses.If the shareholding proportion of the Company decreases due to capital increase by other investors resulting in loss of control but common control over or significant influence on the investee the Company's share of net assets increased due to capital increase and share expansion of the investee shall be recognized according to the new shareholding proportion. The difference between the original book value of long-term equity investment corresponding to the decrease in the shareholding proportion that shall be carried forward shall be included in current profits and losses; the new shareholding proportion is then adjusted as if it had been accounted for using the equity method since the acquisition of the investment.Unrealized internal transaction gains and losses between the Company and associates and joint ventures shall be calculated according to the shareholding proportion and the investment gains and losses shall be recognized based on the offset. However the unrealized internal transaction losses incurred between the Company and the investee that belong to impairment loss of transferred assets shall not be offset. (3) Basis for determining joint control and significant influence on the investee Joint control refers to the sharing of control over certain arrangements under related agreements and associated activities of the arrangement can be determined only when the unanimous consent of the parties sharing the control right is obtained. When determining the existence of joint control the first step is to assess whether the arrangement is collectively controlled by all parties involved or a combination of the parties. The next step is to evaluate whether decisions about the relevant activities of the arrangement require the unanimous consent of those parties who collectively 127Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. control the arrangement. If all participants or a group of participants must act in concert to decide the relevant activities of an arrangement it is considered that all participants or a group of participants collectively control the arrangement; if two or more participants can collectively control an arrangement it does not constitute joint control. Protective rights are not considered in determining whether or not there is joint control.Significant influence means the power of the investor to participate in making decisions on the financial and operating policies of an investee but the investor cannot control or jointly control with other parties over the formulation of these policies. When determining whether significant influence can be exerted on the investee we shall consider the impact of voting shares directly or indirectly held by the investor and current executable potential voting rights held by the investor and other parties after they are assumed to be converted into equity in the investee including the impact of current convertible warrants and share options and convertible corporate bonds issued by the investee.If the Company directly owns or indirectly owns via its subsidiaries more than 20% (including) but less than 50% of voting shares of the investee the condition shall be recognized as exerting significant influence on the investee unless concrete evidence shows that participation in the production and business decisions of the investee is not allowed without constituting significant influence. If the voting shares of the investee owned by the Company are less than 20% (not including) the condition shall not be considered as being of significant influence on the investee in general unless concrete evidence shows that the Company can participate in the production and business decisions of the investee under this condition constituting significant influence. (4) Impairment test method and accrual method for impairment provision For investments in subsidiaries associates and joint ventures please see Note V. 19 for the accrual method for impairment provision. 14. Investment properties Measurement model of investment properties Cost method Depreciation or amortization method Investment properties are properties held for rent earnings capital appreciation or both.Investment properties of the Company include the land right of use that has already been rented the land right of use held for transfer after appreciation and buildings that have been rented.Investment properties of the Company shall be initially measured as per the price upon acquisition and depreciated or amortized on schedule as per relevant provisions on fixed assets or intangible assets.Investment properties are measured subsequently as per the cost model. See Note V. 19 for the provision method of assets impairment. 128Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The disposal income from the sale transfer discard or destruction of the investment properties shall be included in current profits and losses after their book value and relevant taxes are deducted. 15. Fixed assets (1) Recognition conditions Fixed assets of the Company refer to the tangible assets held for producing goods rendering labor services renting or business management with a useful life of over one fiscal year.The fixed assets can be recognized only when the economic benefits related to such fixed assets are likely to flow into an enterprise and the cost of such fixed assets can be measured reliably.Fixed assets of the Company shall be initially measured at the actual cost when acquired.For the subsequent expenses related to fixed assets if the economic benefits of the assets are likely to flow into the Company and the cost can be reliably measured they are included in the cost of fixed assets; daily repair costs of fixed assets that do not meet the conditions for subsequent expenses for capitalization of fixed assets are included in current profits and losses or the cost of relevant assets according to the beneficiaries upon occurrence. The book value of the part being replaced will be derecognized. (2) Depreciation method Annual depreciation Type Depreciation method Depreciation period Residual ratio rate Premises and buildings Straight-line method 10 35-40 03 10 2.43-2.77 Including: Decoration Straight-line method 10 0 10 of self-owned houses Machinery equipment Straight-line method 10 3 9.70 Electronic equipment Straight-line method 3 3 32.33 Transportation Straight-line method 7 3 13.86 equipment Office and other Straight-line method 5 3 19.40 equipment The depreciation rate of fixed assets with provision for impairment shall be calculated by deducting the accumulated amount of provision for impairment of fixed assets. 16. Construction in progress The Company's cost of construction in progress is determined according to the actual construction expenditures including various necessary construction expenditures incurred during the construction period borrowing costs that shall be capitalized before the project reaches the expected serviceable condition and other relevant expenses. 129Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Construction in progress is transferred to fixed assets when it is ready for its intended use.See Note V. 19 for the provision method of assets impairment of the construction in progress. 17. Borrowing costs (1) Recognition principle for capitalization of borrowing costs Borrowing costs incurred by the Company that are directly attributable to the acquisition construction or production of assets eligible for capitalization shall be capitalized and included in relevant asset costs; other borrowing costs shall be recognized as expenses according to their amount when incurred and included in current profits and losses. Borrowing costs shall be capitalized when all of the following conditions are satisfied: * Expenditures on an asset have been incurred and expenditures on the asset comprise payments in cash transfer of non-cash assets or assumption of debts with interests for acquisition and construction or production of the asset qualifying for capitalization; * Borrowing costs have been occurred; * The acquisition construction or production activities necessary to bring the assets to their intended use or sale have started. (2) Period of borrowing costs capitalization The capitalization of borrowing costs shall cease when the assets eligible for capitalization acquired constructed or produced by the Company are ready for their intended use or sale.Borrowing costs incurred after the assets meeting capitalization conditions are ready for their intended use or sale shall be recognized as expenses according to the amount incurred and included in the current profits or losses.If the acquisition construction or production of assets eligible for capitalization is interrupted abnormally and the interruption period exceeds three consecutive months the capitalization of borrowing costs shall be suspended; the borrowing costs during the normal interruption period shall continue to be capitalized. (3) Capitalization rate and calculation method of capitalization amount of borrowing costs The balance of the interest from special borrowings that occurred in the current period deducting the interest income acquired from unused borrowings deposited in banks or deducting investment income from temporary investment of the borrowings shall be capitalized. The capitalized amount of general borrowing shall be determined by multiplying the weighted average of the asset expenditures from the accumulative asset expenditures exceeding the special borrowing by the capitalization rate of general borrowing occupied. The capitalization rate is determined based on the weighted average interest rate of general borrowing. 130Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. During the capitalization period the balance of exchange for special foreign-currency borrowings shall be capitalized in full amount while that of general foreign-currency borrowings shall be included in current profits and losses. 18. Intangible assets (1) Service life and its determination basis estimation amortization method or review procedure The Company's intangible assets include land use rights computer software trademark etc.Intangible assets are initially measured at cost and their service life is determined upon acquisition.If the service life of an intangible asset is limited it shall be amortized within the estimated service life with an amortization method that can reflect the expected realization mode of economic benefits related to the asset since the asset is available for use; if the expected realization mode cannot be reliably determined the asset shall be amortized with the straight-line method; intangible assets with uncertain service life shall not be amortized.The amortization method for intangible assets with limited service life is as follows: Category Service Determination basis of service life Amortizationlife method Remarks Land use right 50 years Legal right to use Straight-line method Computer 5 years Determine the service life with reference to the term Straight-linesoftware that can bring economic benefits to the Company method Trademark 10 years Determine the service life with reference to the term Straight-linethat can bring economic benefits to the Company method At the end of each year the Company shall recheck the service life and amortization method of intangible assets with finite service life. If there are changes from previous estimates the original estimates shall be adjusted and the changes shall be accounted for as changes in accounting estimates.If an intangible asset is expected no longer to generate future economic benefits for the Company at the balance sheet date the book value of the asset is transferred to current profits and losses.See Note V. 19 for the provision method of assets impairment of the intangible assets. (2) Collection scope of R&D expenditures and relevant accounting treatment methods The R&D expenditures of the Company refer to expenditures directly related to the R&D activities of the Company including salaries of R&D personnel direct R&D investments depreciation expenses and long-term deferred expenses design expenses equipment commissioning expenses amortization expenses of intangible assets expenses incurred from commissioned external R&D and other expenses. The salaries of R&D personnel are included in R&D expenditures according to the project working hours. Equipment production lines and sites 131Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. shared for R&D activities and other production and operation activities are included in R&D expenditures according to the proportion of working hours and area.The Company divides the expenditure of internal R&D projects into research stage expenditure and development stage expenditure.Expenditures at the research stage shall be included in current profits or losses when incurred.Expenditures at the development stage can be capitalized only when all of the following conditions are met namely: It is technically feasible to complete the intangible assets so that they can be used or sold; there is an intention to complete the intangible asset and use or sell it; ways for intangible assets to generate economic benefits include proving that there is a market for the products produced by using the intangible assets or the intangible assets themselves as well as proving their usefulness if intangible assets are to be used internally; there are sufficient technical financial and other resources to complete the development of the intangible assets and have the ability to use or sell them; the expenditures attributable to the development stage of intangible assets can be measured reliably. Development expenditures that do not meet the above conditions are included in current profits and losses.The R&D projects of the Company will enter the development stage after meeting the above conditions and passing the technical feasibility study and economic feasibility study to gain project approval.The capitalized expenditures in the development stage shall be presented as development costs on the balance sheet and shall be transferred into intangible assets from the date when the project meets the expected usage. 19. Impairment of long-term assets The impairment of the long-term equity investments in subsidiaries associates and joint ventures as well as of investment properties fixed assets construction in progress right-of-use assets intangible assets and others subsequently measured by cost model (except for inventories investment properties deferred income tax assets and financial assets measured by fair value model) shall be determined by the Company according to the following methods: The Company judges whether there is a sign of impairment to assets on the balance sheet date. If such a sign exists the Company estimates the recoverable amount and conducts the impairment test. The goodwill formed due to business combination intangible assets with uncertain service life and intangible assets that have not yet reached their intended use shall be tested for impairment every year regardless of whether there is any sign of impairment.The recoverable amount is the net amount gained after the fair value of assets deducts the disposal fees or the present value of the estimated future cash flow of the assets whichever is higher. The Company estimates the recoverable amount on a single-asset basis. If it is difficult to estimate the recoverable amount of a single asset the recoverable amount of the asset group shall be 132Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. determined based on the asset group to which the asset belongs. The asset group is determined by whether the main cash flow generated by the asset group is independent of those generated by other assets or asset groups.When the asset or asset group's recoverable amount is lower than its book value the Company reduces its book value to its recoverable amount the reduced amount is recorded in the current profit and loss and the provision for impairment of assets is recognized.For the impairment test of goodwill the book value of goodwill formed by the business combination shall be amortized to relevant asset groups with a reasonable method since the acquisition date; if it is difficult to amortize to relevant asset groups it shall be amortized to relevant asset group portfolios. Asset group or portfolio of asset group is an asset group or portfolio of asset group that can benefit from synergies of a business combination and is not greater than the reportable segment of the Company.During the impairment test if there is any sign of impairment in the asset groups or portfolios of asset groups related to goodwill first conduct an impairment test for asset groups or portfolios of asset groups that do not contain goodwill calculate the recoverable amount and recognize the corresponding impairment loss. Then an impairment test shall be conducted on the asset groups or portfolios of asset groups that include goodwill. The book value should be compared with the recoverable amount; if the recoverable amount is found to be lower than the book value an impairment loss for goodwill shall be recognized.Once recognized the impairment loss of assets shall not be reversed in future accounting periods. 20. Long-term deferred expenses Long-term deferred expenses of the Company shall be valued as per actual cost and averagely amortized as per the expected benefit period. If the long-term deferred expense project will not benefit the future accounting period the amortized value of the project shall be included in the current profit and loss in full amount. 21. Employee compensation (1) Accounting treatment for short-term compensation During the accounting period when employees provide services the Company recognizes the actual salary and bonus of employees social insurance premiums such as medical insurance premiums work-related injury insurance premiums and maternity insurance premiums paid for employees according to the specified benchmark and proportion and housing fund as liabilities and includes them in current profits and losses or relevant asset costs. 133Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (2) Accounting treatment for post-employment benefits Post-employment benefit plans include defined contribution plans and defined benefit plans.Among them the defined contribution plan refers to a post-employment benefit plan in which the enterprise has no further payment obligation after paying fixed expenses to an independent fund; the defined benefit plan refers to a post-employment benefit plan other than a defined contribution plan.Defined contribution plan The defined contribution plan includes basic endowment insurance unemployment insurance etc.During the accounting period when employees provide services the amount payable calculated according to the defined contribution plan is recognized as a liability and included in current profits and losses or related asset costs.Defined benefit plans For defined benefit plans an independent actuary shall carry out actuarial valuation on the annual balance sheet date and determine the cost of providing benefits with the expected cumulative welfare unit method. Employee compensation costs arising from the defined benefit plan of the Company shall include the following components: * Service costs including current service costs past service costs and settlement gains or losses.Current service costs refer to the increased amount in the present value of defined benefit plan obligations caused when employees provide services in the current period; past service costs refer to the increase or decrease in the present value of defined benefit plan obligations related to employee services in previous periods caused by modifications for defined benefit plans.* Net interest on the defined benefit plan net liabilities or assets including interest income on plan assets interest cost on the defined benefit plan obligation and interest on the effect of the asset ceiling.* Changes as a result of remeasurement of the defined benefit plan's net liabilities or assets.Unless other accounting standards require or allow employee's benefit costs to be included in assets costs the above items * and * shall be included by the Company in current profits and losses; item * shall be included in other comprehensive income and be not reversed to profit or loss; when the original defined benefit plan is terminated the amount included in other comprehensive income before shall be completely transferred to the undistributed profit. (3) Accounting treatment for termination benefits If the Company provides termination benefits to employees the employee compensation liabilities arising from the termination benefits shall be recognized at the earliest of the following two dates and included in current profits and losses: The Company cannot unilaterally withdraw 134Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. the termination benefits provided due to the labor relationship termination plan or layoff proposal; the Company recognizes the costs or expenses related to the restructuring involving the payment of termination benefits.If an employee's internal retirement plan is implemented the economic compensation before the official retirement date belongs to the termination benefits. During the period from the date when the employee stops providing services to the normal retirement date the wages to be paid to the early retired employees and the social insurance premiums to be paid are included in current profits and losses in a lump sum. Economic compensation after the official retirement date (such as the pension) is treated as post-employment benefits. (4) Accounting treatment for other long-term employee benefits The other long-term employee benefits provided by the Company to its employees which meet the criteria for a defined contribution plan shall be handled per the regulations relevant to the defined contribution plan mentioned above. If the benefits meet the defined benefit plan they shall be handled per the relevant provisions on the defined benefit plan above but the part of "changes arising from re-measuring the net liabilities or net assets of the defined benefit plan" in the relevant employee compensation costs shall be included in current profits and losses or the relevant asset costs. 22. Estimated liabilities An obligation related to contingencies if satisfying the following conditions at the same time will be recognized as an estimated liability by the Company: (1) The obligation is the current obligation of the Company; (2) Performance of this obligation will probably cause outflow of economic interest of the Company; (3) The amount of such obligation can be measured reliably. Estimated liabilities are initially measured at the optimal estimate required to perform the relevant current obligation in comprehensive consideration of the risks uncertainty time value of money and other factors pertinent to the contingencies. Where the time value of money is of significant influence the optimal estimate is recognized through the discount of relevant future cash outflows.At the balance sheet date the book value of the estimated liabilities is reviewed and adjusted by the Company to reflect the current best estimate.If all or part of the expenditures necessary for clearing off the recognized estimated liabilities are expected to be compensated by a third party or any other party the amount of compensation shall be recognized as assets separately only when it is basically sure that the amount can be obtained.The recognized amount of compensation shall not exceed the book value of recognized liabilities. 135Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 23. Revenue Accounting policies of revenue disclosure recognition and measurement by business types (1) General principle The Company has fulfilled its performance obligations of the contract which means it recognizes the revenue when the customer has acquired the control rights of relevant goods or services.If the contract contains two or more performance obligations the Company shall at the beginning date of the contract apportion the transaction price to each performance obligation according to the relative proportion of the individual selling price of the commodities or services promised by each performance obligation and measure the revenue according to the transaction price apportioned to each performance obligation.When one of the following conditions is met it is considered the fulfillment of performance obligations over a period of time; otherwise it is regarded as the fulfillment of performance obligations at a specific point in time: * The customer simultaneously obtains and consumes the economic benefits arising from the contract performance of the Company.* The customer can control the goods under construction during the performance of the Company.* The goods produced during the performance of the Company have irreplaceable uses and the Company has the right to collect payments for the accumulated performance portion to date throughout the contract period.For the performance obligations performed within a certain period of time the Company shall recognize the revenue within that period according to the performance progress. If the performance progress cannot be reasonably confirmed and the costs incurred by the Company are expected to be compensated the incomes shall be recognized according to the amount of costs incurred until the performance progress is reasonably confirmed.In the case of a performance obligation satisfied at a certain time point the revenue shall be recognized by the Company at a certain time point when a customer obtains control of relevant goods or services. In determining whether a customer has obtained the control rights of the goods or services the Company shall consider the following signs: * The Company enjoys the current collection right concerning such goods or services i.e.customers have the obligation to pay immediately concerning the goods. 136Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. * The Company has transferred the legal ownership of the goods to customers i.e. customers have owned the legal ownership of the goods.* The Company has transferred the goods to customers in kind i.e. customers have possessed the goods.* The Company has transferred the major risks and rewards from the ownership of the goods to customers i.e. customers have obtained the major risks and remuneration on the ownership of the goods.* Customers have accepted such goods or services.* Other signs indicate that customers have obtained the right to control the goods. (2) Specific method The Company's revenue is mainly derived from the following businesses: Property leasing and services and jewelry sales and services.* Property leasing and services See Note V. 26 for the specific method for the recognition of revenue from property leasing and services.* Sales and services of gold and jewelry The Company determines whether it is the main responsible person or the agent during transactions according to its control over goods or services before transferring them to customers.If the Company has control over the goods or services before transferring them to customers the Company is the main responsible person and recognizes the revenue according to the total consideration received or receivable; otherwise the Company acts as an agent and recognizes the revenue according to the amount of commission or handling charge expected to be entitled which is determined according to the net amount of the total consideration received or receivable after deducting the price payable to other related parties or according to the established commission amount or proportion.The specific recognition method of revenues generated from gold and jewelry sales is as follows: In gold and jewelry sales the Company mainly takes a direct-sales model with the sales agency model as a supplement. For the direct-sales model the sales channels include wholesalers e- commerce and retail in direct-sales stores. The time points for revenue recognition under the sales models with such channels as wholesalers e-commerce and retail are as follows: * In wholesaler sales purchasers cooperate with the Company directly. The time point is when the goods-related control rights have been transferred to the purchasers which signifies that the 137Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. performance obligation is completed according to the sales contract. The revenue will then be recognized after customers accept the goods and issue receipts. This is a performance obligation performed at a certain time point.* In e-commerce sales the Company sells goods on e-commerce platforms. The sales revenue will be recognized when customers have signed for the goods and the Company has received payments or obtained the right to claim payments. This is a performance obligation performed at a certain time point.* In retail through direct-sales stores the Company sells its goods in its self-owned real estate.The sales revenue will be recognized when the Company has sold goods to customers and received payments or obtained the right to claim payments. This is a performance obligation performed at a certain time point.* In the sales agency model the Company sends products to stores of entrusted sellers. The sales revenue will be recognized when the sellers have sold goods to end consumers end consumers have signed for goods and the control right has been transferred to end consumers.This is also the time point signifying that the obligation performance for the contract is done. This is a performance obligation performed at a certain time point.The specific methods for recognizing other revenues for the Company are as follows: In the independent gold repurchase business the Company obtains old gold from the market and entrusts refineries to process it into standard gold bars. The standard gold bars will then be sold to the Shanghai Gold Exchange. According to the set price by the Shanghai Gold Exchange at specific time points the Company confirms the selling (counting) in the trading system and recognizes the revenue after obtaining the settlement document of the Shanghai Gold Exchange.In the gold and jewelry sales agency business the Company acts as an agent and provides agency services for principals according to the agency purchase agreement to earn agency commission fees. The Company recognizes the agency commission revenue when customers pay and sign for goods.In the agency gold repurchase business the Company acts as a supplier agent to repurchase gold and collect service fees. Revenue is calculated and recognized based on the duration of the agency gold repurchase and according to the contract.Recognition methods and measurement methods for the same kind of business with different business models and different revenues The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business. 24. Government subsidies The government subsidies shall be recognized when all the attached conditions can be satisfied and the government subsidies can be received. 138Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The government subsidies of monetary assets shall be measured at the amount received or receivable. The government subsidies considered non-monetary assets are measured based on the fair value or the nominal amount of RMB 1 if the fair value cannot be acquired reliably.Asset-related government subsidies refer to the ones that are acquired by the Company and used for establishing or forming long-term assets in other ways. Other government subsidies are considered revenue-related government subsidies.For the government subsidies with the grant objects not expressly stipulated in the government documents if they can be used to form long-term assets the government subsidies corresponding to the value of the assets are deemed as asset-related government subsidies while the rest are deemed as revenue-related government subsidies. For the government subsidies that are difficult to differentiate the government subsidies as a whole are deemed as revenue-related government subsidies.The asset-related government subsidies shall be recognized as deferred income which shall be included in profits and losses in installments reasonably and systematically within the service life of the relevant assets. For revenue-related government subsidies they shall be included in the current profit and loss if used to compensate for the incurred related costs or losses; if used to compensate for the related costs or losses during future periods they shall be included in the deferred income and included in the current profit and loss during the period when the related costs or losses are recognized. Government subsidies measured at the nominal amount shall be directly included in current profits and losses. The Company adopts the same treatment for those transactions of similar government subsidies.The government subsidies related to daily activities shall be included in other incomes according to the essence of economic business. Government subsidies irrelevant to daily activities are included in non-operating revenue.For the government subsidies recognized to be refunded if the government subsidies are used to offset the book value of the related assets when they are initially recognized the book value of assets shall be adjusted. If there is deferred income concerned the government subsidies shall be offset against the book balance of the deferred income and the excess shall be included in current profits and losses. In other cases they shall be directly included in current profits and losses. 25. Deferred tax assets/deferred tax liabilities Income tax includes current income tax and deferred income tax. The income tax shall be included in current profit or loss as income tax expenses except that the deferred income taxes related to an adjustment of goodwill due to a business merger or the transactions and matters directly included in the owner's equity are included in the owner's equity.The Company shall recognize deferred income tax with the balance sheet liability method according to the temporary differences between the book value of assets and liabilities and their tax bases at the balance sheet date. 139Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Relevant deferred income tax liabilities shall be recognized for each taxable temporary difference unless the taxable temporary difference arises from the following transactions: (1) The initial recognition of goodwill or the initial recognition of assets or liabilities incurred in a transaction with the following features: The transaction should not be a business merger and does not impact accounting profit or taxable income at the time of the transaction (except for individual transactions with equal taxable temporary differences and deductible temporary differences resulting from the initial recognition of assets and liabilities); (2) For taxable temporary differences associated with investments in subsidiaries associates and joint ventures it can control the time of the reversal of the temporary difference and likely the temporary difference will not reverse in the foreseeable future.For deductible temporary differences as well as the deductible losses and tax deductions that can be carried forward to the next year except for the deductible temporary differences incurred in following transactions the Company recognizes the deferred income tax assets to the extent that it is likely that future taxable income will be available for deducting the deductible temporary differences deductible losses and tax deductions: (1) The transaction should not be a business merger and does not impact accounting profit or taxable income at the time of the transaction (except for individual transactions with equal taxable temporary differences and deductible temporary differences resulting from the initial recognition of assets and liabilities); (2) For deductible temporary differences associated with investments in subsidiaries associates and joint ventures if the following conditions are satisfied at the same time corresponding deferred tax assets are recognized: The temporary difference will likely be reversed in the foreseeable future and taxable income will likely be available in the future for deducting the deductible temporary differences.On the balance sheet date deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is recovered or the liability is settled and reflect the income tax effect of the method of the expected recovery of assets and settlement of liability on the balance sheet date.On the balance sheet date the Company reviews the book value of deferred tax assets. If it is likely that sufficient taxable profits will not be available in future periods to deduct the benefit of the deferred tax assets the book value of the deferred tax assets will be reduced. Any such reduction in amount is reversed to the extent that it becomes probable that sufficient taxable incomes will be available.On a balance sheet date the deferred income tax assets and liabilities are presented in the net value after offsetting when the following conditions are met at the same time: 140Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (1) The taxpayer has the legal right of income tax assets and liabilities in the current period settled at the net amount; (2) Deferred income tax assets and deferred income tax liabilities are related to the income taxes levied by the same tax collection agency on the same taxpayer within the Company. 26. Leases (1) Accounting treatment method for lease as the lessee On the commencement date of the lease term the Company shall recognize the right-of-use assets and the lease liabilities for all leases except for the short-term leases and low-value asset leases that are subject to simplified treatment.Lease liabilities shall be initially measured at the present value calculated by the interest rate implicit in lease according to the unpaid lease payment on the commencement date of the lease term. If the interest rate implicit in lease cannot be determined the incremental borrowing rate shall be used as the discount rate. Lease payments include fixed payments and substantially fixed payments; the amount related to lease incentive (if any) shall be deducted; variable lease payments that depend on an index or rate; the exercise price of a purchase option provided that the lessee reasonably determines that the option will be exercised; payments required to exercise the lease termination option provided that the lease term reflects that the lessee will exercise the lease termination option; payments expected to be made based on the guaranteed residual value provided by the lessee. The interest expenses of the lease liabilities within each lease term shall be calculated subsequently according to the fixed periodic rate and included in current profits and losses. The variable lease payment that is not included in the measurement of lease liabilities is included in the current profit and loss when it actually occurs.Short-term lease Short-term lease refers to a lease with a lease term of not more than 12 months on the commencement date of the lease term except for the lease containing the purchasing right.The Company includes the payment amount of short-term leases into relevant asset costs or current profits and losses by the straight-line method at each period within the lease term.For short-term leases the Company selects the above-simplified treatment method for the items meeting the short-term lease conditions in the following asset types according to the category of leased assets.Low-value asset lease A low-value asset lease refers to a lease with a value lower than RMB 40000 when an individual leased asset is brand new. 141Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Company includes the payment amount of low-value asset leases into relevant asset costs or current profits and losses by the straight-line method at each period within the lease term.For low-value asset leases the Company selects the above simplified treatment method according to the specific conditions of each lease.Lease change If the lease changes and meets the following conditions at the same time the Company will take the lease change as a separate lease for the accounting treatment: * The lease change expands the lease scope by increasing the right to use one or more leased assets and * The increased consideration is equivalent to the amount by adjusting the separate price of the expanded lease scope according to the contract.If the lease change is not taken as a separate lease for accounting treatment the Company shall on the effective date of the lease change reallocate the consideration of the changed contract redetermine the lease term and remeasure the lease liabilities according to the changed lease payment and the present value calculated by the revised discount rate.If the lease scope is reduced or the lease term is shortened due to the lease change the Company will correspondingly reduce the book value of right-of-use assets and include relevant profits or losses from partial or complete termination of the lease in current profits and losses.If the lease liabilities are remeasured due to other lease changes the Company will adjust the carrying amount of right-of-use assets accordingly. (2) Accounting treatment method for lease as the lessor When the Company is the lessor the lease that substantially transfers all risks and rewards related to the ownership of the assets is recognized as a finance lease and leases other than finance leases are recognized as operating leases.Financial lease In a finance lease at the commencement of the lease term the Company takes the net investment in a lease as the entry value of the finance lease receivables and the net investment in a lease is the sum of the unguaranteed residual value and the present value of the lease receipts not yet received at the commencement of the lease term discounted at the interest rate implicit in the lease.The Company as the lessor calculates and recognizes interest income in each lease term at a fixed periodic rate. Variable lease payments obtained by the Company as the lessor but not considered in the measurement of net investment in leases are recognized in current profits and losses when actually incurred.The derecognition and impairment of finance lease receivables shall be subject to accounting treatment according to the Accounting Standards for Business Enterprises No. 22—Recognition 142Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. and Measurement of Financial Instruments and the Accounting Standards for Business Enterprises No. 23—Transfer of Financial Assets.Operating leasing Lease income from operating leases is included in current profits and losses by the Company as per the straight-line method in different stages over the lease term. The occurred initial direct cost related to the operating lease shall be capitalized amortized within the lease term according to the same base with the recognition of rent revenue and included in the current profits and losses by stages. The variable lease receipts obtained by the Company related to operating leases and not charged to the lease receipts shall be included in current profits and losses when actually incurred.Lease change If there is a change in the operating lease the Company will take it as a new lease from the effective date of the change to carry out accounting treatment and the lease receipts received in advance or receivable related to the lease before the change will be regarded as the collected amount for the new lease.If the finance lease changes and meets the following conditions the Company will take the change as a separate lease for accounting treatment: * The change expands the lease scope by increasing the right to use one or more leased assets; and * The increased consideration is equivalent to the amount by adjusting the separate price of the expanded lease scope according to the contract.If the change of finance lease is not accounted for as a separate lease the Company shall deal with the changed lease based on the following circumstances: * If the change takes effect on the commencement date of the lease and the lease is classified as an operating lease the Company shall take it as a new lease for the accounting treatment from the effective date of lease change and take the net lease investment made before the effective date of the lease change as the book value of the leased asset; * If the change takes effect on the commencement date of the lease and the lease is classified as a finance lease the Company shall carry out accounting treatment according to the regulations on modifying or renegotiating contracts described in Accounting Standards for Enterprises No. 22 — Recognition and Measurement of Financial Instruments. 27. Other significant accounting policies and accounting estimates The Company continuously evaluates the significant accounting estimates and key assumptions adopted based on historical experience and other factors including reasonable expectations for future events. Significant accounting estimates and critical assumptions that may lead to a major adjustment of the book value of assets and liabilities in the next accounting year are listed as follows: Classification of financial assets 143Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Significant judgments involved in determining the classification of financial assets of the Company include the analysis of business models and contract cash flow characteristics.The Company determines the business model of managing financial assets at the level of financial asset portfolios considering the way of evaluating and reporting financial asset performance to key executives the risks affecting the financial asset performance and their management methods and the way for the relevant business management personnel to obtain the remuneration.When assessing whether the contract cash flow of financial assets is consistent with the basic loan arrangement the Company has the following main judgments: Whether the principal may change in the time distribution or amount in the duration due to prepayment and other reasons; whether the interest includes only the time value of money credit risks other basic borrowing risks and consideration with costs and profits. For example whether the amount paid in advance only reflects the unpaid principal and the interest based on the unpaid principal and the reasonable compensation paid due to the early termination of the contract.Measurement of expected credit loss of accounts receivable The Company calculates the expected credit loss of accounts receivable through the default risk exposure and the expected credit loss rate of accounts receivable and determines the expected credit loss rate based on default probability and the loss given default. In determining the expected credit loss rate the Company uses the internal historical credit loss experience and other data and adjusts the historical data according to the current situation and forward-looking information. When considering forward-looking information the indicators used by the Company include risks of economic downturns as well as changes in the external market environment technological environment and customer conditions. The Company regularly monitors and reviews the assumptions related to the calculation of the expected credit loss.Deferred income tax assets To the extent that there will probably be sufficient taxable profits to offset the losses deferred income tax assets shall be recognized based on all unused tax losses. This requires the management to use a large number of judgments to estimate the time and amount of future taxable profits and determine the amount of deferred income tax assets that should be recognized in combination with tax planning strategies.Determination of the fair value of unlisted equity investment The fair value of unlisted equity investments is the estimated future cash flows discounted using current discount rates for projects with similar terms and risk characteristics. This valuation involves uncertainty because it requires the Company to estimate expected future cash flows and discount rates. Under limited circumstances if the information for determining the fair value is insufficient or the range of possible estimates of fair value is wide and the cost represents the best estimate for the fair value within this range such cost could represent its appropriate estimate for the fair value within this distribution range. 144Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 28. Changes in significant accounting policies and accounting estimates (1) Changes in significant accounting policies ? Applicable□ Not applicable Accounting Standards for Business Enterprises Interpretation No.17 In November 2023 the Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No.17 (Accounting No.212023) (hereinafter referred to as "Interpretation No.17").Division of current liabilities and non-current liabilities Interpretation No.17 the right of the enterprise to delay its repayment to more than one year after the balance sheet date may depend on whether the enterprise follows the conditions specified in the loan arrangement (hereinafter referred to as the conditions of contract). The conditions of contract on or before the balance sheet date even after evaluating the compliance after the balance sheet date (if the conditions of contract are assessed after the balance sheet date) affects the judgment of the rights on the balance sheet date thus affecting the liquidity division of the liabilities on the balance sheet date. The conditions of contract that the enterprise shall follow after the balance sheet date (if the conditions of contract are assessed based on the financial position of the 6 months after the balance sheet date) do not affect the judgment of the existence of the right on the balance sheet date and has nothing to do with the liquidity division of the liability on the balance sheet date.If the clause of the liabilities causes the enterprise to repay by delivering its own equity instrument at the choice of the counterparty if the option is classified as an equity instrument according to the guidelines and is recognized as a separate part of the equity component of the compound financial instrument the clause shall not affect the liquidity division of the liabilities.The Company shall implement this regulation from January 12024 and adjust the comparable period information.The adopted Interpretation No.17 did not have a material impact on the Company's financial position and operating results.Disclosure of provider financing arrangements Interpretation No.17 stipulates that the supplier financing arrangement shall disclose: (1) the terms and conditions of the supplier financing arrangement (such as the extension of the payment term and the guarantee provision etc.). (2) * Listed items and book amount in the balance sheet of the financial liabilities belonging to the supplier financing arrangement. * If the supplier has received payment from the financing provider it shall disclose the listed items and book amounts of the corresponding financial liabilities; the payment maturity date of the* and related financial liabilities and the payment maturity date of comparable accounts payable not part of the supplier 145Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. financing arrangement. If the scope of payment maturity date is large the enterprise shall also disclose explanatory information or additional interval information about these intervals; (3) the type and influence of current changes in the book amount of relevant financial liabilities that do not involve cash receipts and payments (including business mergers exchange rate changes and other transactions or matters that do not require the use of cash or cash equivalents).When disclosing liquidity risk information in accordance with the requirements of Accounting Standards for Business Enterprises No.37-Financial Instruments enterprises should consider whether it has obtained or has obtained credit to provide deferred payment to enterprises or advance payment to their suppliers through supplier financing arrangements. When identifying the concentration of liquidity risk according to the requirements of the relevant standards the enterprises should consider the factor that the supplier financing arrangements cause the enterprises to concentrate part of their financial liabilities payable to the suppliers on the financing provider.The Company shall implement this regulation from January 12024. At the first implementation of this provision the Company is not required to disclose the information concerning the comparable period and the beginning information required by* and* under items (2).The adopted Interpretation No.17 did not have a material impact on the Company's financial position and operating results.Accounting Standards for Business Enterprises Interpretation No.18 On December 31 2024 the Ministry of Finance of the Ministry of Finance issued the Interpretation of Accounting Standards for Business Enterprises No.18 (Accounting No.242024 Interpretation No.18).Accounting treatment of assurance type quality assurance that does not belong to single performance obligations Explain no. 18 in the accounting of guaranteed quality assurance liabilities enterprises shall be according to the "accounting standards for enterprises no. 13-contingent matters" relevant provisions according to the estimated liabilities amount debit "operating cost "other operating cost" credit "estimated liabilities" account in the balance sheet and corresponding "operating costs" and "other current liabilities" "non-current liabilities" "estimated liabilities" due within one year.The Company shall implement the provisions from the date of issuance of Interpretation No.18 and make retroactive adjustments.The execution Interpretation No.18 does not have a material impact on the Company's financial position and operating results. 146Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (2) Changes in material accounting estimates □Applicable □ Not applicable Unit: RMB Name of significantly Point of Changes of accounting estimates and reasons affected items in the commencement of Affected amount statements application In response to the Company's business development and fixed asset management needs and to fairly reflect its financial position and operating results the Accumulated depreciation September 1 2024 1623505.35 Company has changed its accounting estimates for the depreciation period of fixed assets to better align with their actual service life.In response to the Company's business development and fixed asset management needs and to fairly reflect its financial position and operating results the Total profits September 1 2024 -1623505.35 Company has changed its accounting estimates for the depreciation period of fixed assets to better align with their actual service life.In response to the Company's business development and fixed asset management needs and to fairly reflect its financial position and operating results the Income tax expenses September 1 2024 -402428.57 Company has changed its accounting estimates for the depreciation period of fixed assets to better align with their actual service life.In response to the Company's business development and fixed asset management needs and to fairly reflect its financial position and operating results the Net profit September 1 2024 -1221076.78 Company has changed its accounting estimates for the depreciation period of fixed assets to better align with their actual service life.Before this change in accounting estimates the depreciation period of fixed assets is: Category Service life Residual value Annual depreciation(year) rate (%) rate (%) Premises and buildings 10 35-40 03 10 2.43-2.77 Including: Decoration of self-owned houses 10 0 10 Machinery equipment 12 3 8.08 Electronic equipment 5-7 3 13.86-19.4 Transportation equipment 7 3 13.86 Office and other equipment 7 3 13.86 After this change in accounting estimates the depreciation period of fixed assets is: Category Service life (year) Residual value Annual depreciation raterate (%) (%) Premises and buildings 10 35-40 03 10 2.43-2.77 Including: Decoration of self-owned houses 10 0 10 Machinery equipment 10 3 9.70 147Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Electronic equipment 3 3 32.33 Transportation equipment 7 3 13.86 Office and other equipment 5 3 19.40 (3) Conditions of the first implementation of new accounting standards from 2024 to adjust the relevant items in financial statements at the beginning of the first implementation year □ Applicable□ Not applicable VI. Taxes 1. Main taxes and tax rates Tax category Tax basis Tax rate Taxable value-added amount (Tax payable is calculated using Value-added tax the taxable sales amount multiplied by the applicable tax rate 13% 9% 5% 6% and 3% less deductible input tax of the current period) Urban maintenance and Actually paid turnover tax 7% construction tax Corporate income tax Taxable income 25% 20% For taxation according to price the taxes payable shall be calculated based on 1.2% of the remaining price after deducting Property tax 30% of the original value of house properties; for taxation 1.2%12% according to lease the taxes payable shall be calculated based on 12% of the rent revenue. Educational surcharges Actually paid turnover tax 3% Local educational surcharges Actually paid turnover tax 2% Disclosure statement of taxable entities with different corporate income tax rates Name of taxable entity Income tax rate Shenzhen Tellus Chuangying Technology Co. Ltd. 20% Shenzhen Bao'an Shiquan Industry Co. Ltd. 20% Shenzhen SDG Tellus Real Estate Co. Ltd. 20% Shenzhen Automobile Industry Supply and Marketing Company 20% Shenzhen Xinyongtong Motor Vehicle Inspection Equipment Co. Ltd. 20% Shanghai Fanyue Diamond Co. Ltd. 20% Shenzhen Huari Anxin Automobile Inspection Co. Ltd. 20% Other taxable entities other than the above 25% 2. Tax preference * Corporate income tax According to the Announcement on Further Implementing Preferential Income Tax Policies for Small and Micro Enterprises (Announcement [2022] No.13 of the Ministry of Finance and the State Taxation Administration) from January 1 2022 to December 31 2024 for small micro- profit enterprises the portion of their annual taxable income exceeding RMB 1 million but not exceeding RMB 3 million shall be calculated at a reduced rate of 25% in their taxable income and they shall pay enterprise income tax at a rate of 20%. According to the Announcement on 148Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Implementing Preferential Income Tax Policies for Small and Micro Enterprises and Individual Businesses (Announcement [2023] No.6 of the Ministry of Finance and the State Administration of Taxation) from January 1 2023 to December 31 2024 the portion of their annual taxable income but not exceeding RMB 1 million shall be calculated at a reduced rate of 25% in their taxable income and they shall pay enterprise income tax at a rate of 20%. The subsidiaries of the Company including Tellus Chuangying Bao'an Shiquan Tellus Real Estate Company Automobile Supply and Marketing Company Shanghai Fanyue Xinyongtong Testing and Huari Anxin enjoy the above tax preferences.* Value-added tax According to the Notice of the State Administration of Taxation on Adjusting the Relevant Tax Policies of Diamonds and Shanghai Diamond Exchange (CS [2006] No. 65) taxpayers are exempted from import VAT for rough diamonds sold through Shanghai Diamond Exchange to the domestic market; for finished diamonds sold by taxpayers through Shanghai Diamond Exchange to the domestic market the part with an actual import VAT burden exceeding 4% shall be refunded upon collection by the customs. In the domestic link taxpayers shall deduct the input tax based on the VAT amount indicated on the tax payment receipt issued by the customs. After taxpayers follow the policy of VAT exemption and refund-upon-collection for diamonds sold to the domestic market through the Shanghai Diamond Exchange diamonds sold to the domestic market will be managed by the customs per current regulations when they leave the Shanghai Diamond Exchange. Shanghai Fanyue Diamond Co. Ltd. the Company's subsidiary is a member of the Shanghai Diamond Exchange and enjoys the above tax preferences when importing finished diamonds through the Shanghai Diamond Exchange.* Educational surcharges According to the Notice of the State Administration of Taxation on Expanding the Scope of Exemptions for Certain Government Funds (CS [2016] No. 12) the exemption threshold for the Education Surcharge Local Education Surcharge and Water Conservancy Construction Fund has been raised. Specifically the exemption now applies to taxpayers with monthly sales or turnover not exceeding RMB 100000 (or quarterly sales or turnover not exceeding RMB 300000 for those paying taxes quarterly) an increase from the previous threshold of RMB 30000 per month (or RMB 90000 per quarter). Shenzhen Huari Automobile Sales and Service Co. Ltd. a subsidiary of the Company enjoys the above tax preference if its monthly sales or turnover does not exceed RMB 100000.VII. Notes to Consolidated Financial Statements 1. Cash at bank and on hand Unit: RMB Item Ending balance Beginning balance Cash on hand 20879.87 17215.98 Bank deposits 280040887.67 120961253.61 149Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Other cash at bank and on hand 97909592.15 99362492.05 Total 377971359.69 220340961.64 Other notes: The cash at the bank and on hand with limited use rights by the Company mainly includes note margins and gold leasing and futures and options margins.The details of restricted cash at bank and on hand are as follows: Item Ending balance Ending Balance of the Previous Year Security deposits for notes payable 33113263.10 - Futures and options account margin 22848540.40 8188990.60 Gold leasing security deposits and interests 20069638.91 51328583.35 Amount under judicial control 663948.65 600000.00 Total 76695391.06 60117573.95 2. Trading financial assets Unit: RMB Item Ending balance Beginning balance Financial assets at fair value through profit or loss 165630834.06 206294931.94 Including: Structured deposits and finance products 165630834.06 131495916.67 Equity instrument investment 74799015.27 Including: Total 165630834.06 206294931.94 3. Derivative financial assets Unit: RMB Item Ending balance Beginning balance Hedging instruments—derivative financial assets in designated 292078.00298320.00 hedging relationship Total 292078.00 298320.00 4. Accounts receivable (1) Disclosure by account receivable age Unit: RMB Account receivable age Period-end book balance Period-beginning book balance Within 1 year (inclusive) 44225898.09 100107755.14 1-2 years 2520681.03 555132.97 2 to 3 years 508387.31 150Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Over 3 years 48781485.16 48749943.16 More than 5 years 48781485.16 48749943.16 Total 96036451.59 149412831.27 Other notes: The inconsistency in the logic of account receivable ages over three years is due to the consolidation of Shenzhen SDG Huari Automobile Enterprise Co. Ltd. on December 31 2024. (2) Disclosure by bad debt accrual method Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Account s receivab le with 487814487814487465487465 provisio 50.79% 100.00% 0.00 32.63% 100.00% 0.00 85.1685.1683.1683.16 n for bad debts on a single basis Includ ing: Account s receivab le for which 472549 690899. 465640 100666 103049 996357 49.21%1.46%67.37%1.02% provisio 66.43 29 67.14 248.11 6.59 51.52 n for bad debts is made by portfolio Includ ing: Includin g: Portfolio 354981573331.349248413036436870.408667 of 36.96% 1.62% 27.64% 1.06% 39.360208.3439.855169.34 leasing and other Jewelry sales 117568 117568. 116392 593626 593626. 587689 12.24%1.00%39.73%1.00% business 27.07 27 58.80 08.26 08 82.18 portfolio 960364494723465640149412497770996357 Total 100.00% 51.51% 100.00% 33.32% 51.5984.4567.14831.2779.7551.52 151Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Provision for bad debts made on an individual basis Unit: RMB Beginning balance Ending balance Description Provisions for Provisions for Proportion of Reasons for Book balance Book balance bad debts bad debts provision provision Long account Shenzhen Jinlu receivable age Industry & 9846607.00 9846607.00 9846607.00 9846607.00 100.00% and expected to Trade Co. Ltd. be unrecoverable Guangdong Long account Zhanjiang receivable age Samsung 4060329.44 4060329.44 4060329.44 4060329.44 100.00% and expected to Automobile be Co. Ltd. unrecoverable Long account receivable age Wang 2370760.40 2370760.40 2370760.40 2370760.40 100.00% and expected to Changlong be unrecoverable Huizhou Long account Jiandacheng receivable age Road and 2021657.70 2021657.70 2021657.70 2021657.70 100.00% and expected to Bridge be Engineering unrecoverable Co. Ltd.Long account Guangdong receivable age GW Holdings 1862000.00 1862000.00 1862000.00 1862000.00 100.00% and expected to Group Co. Ltd. be unrecoverable Long account receivable age Jiangling 1191059.98 1191059.98 1191059.98 1191059.98 100.00% and expected to Motors Factory be unrecoverable Long account Yangjiang receivable age Automobile 1150000.00 1150000.00 1150000.00 1150000.00 100.00% and expected to Trading Co.be Ltd.unrecoverable Long account receivable age Others 26244168.64 26244168.64 26279070.64 26279070.64 100.00% and expected to be unrecoverable Total 48746583.16 48746583.16 48781485.16 48781485.16 Provision for bad debts drawn by portfolio: Portfolio of leasing and other Unit: RMB Ending balance Description Book balance Provisions for bad debts Proportion of provision Within 1 year 32469071.02 322296.93 0.99% 1-2 years 2520681.03 126034.06 5.00% 2 to 3 years 508387.31 125000.03 24.59% 152Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Over 3 years Total 35498139.36 573331.02 Provision for bad debts drawn by portfolio: portfolio of jewelry sales business Unit: RMB Ending balance Description Book balance Provisions for bad debts Proportion of provision Within 1 year 11756827.07 117568.27 1.00% Total 11756827.07 117568.27 Whether to accrue bad debt provision of accounts receivable according to expected credit loss: □Applicable □ Not applicable Unit: RMB Stage I Stage II Stage III Expected credit loss Provisions for bad debts Expected credit Expected credit loss throughoutthroughout the duration Total losses for the next 12 the duration (credit impairment (no credit impairment months has occurred) occurs) Balance on January 1 1030496.5948746583.1649777079.75 2024 Balance on January 1 2024 in the current period Reversal in the current 339597.30339597.30 period Other changes 34902.00 34902.00 Balance as of December 690899.2948781485.1649472384.45 312024 (3) Bad debt provision provided recovered or reversed in the current period Bad debt provision in the reporting period: Unit: RMB Amount of change during the current period Type Beginning balance Ending balance Provision Recovery or reversal Write-off Others Provisions for bad 49777079.75339597.3034902.0049472384.45 debts Total 49777079.75 339597.30 34902.00 49472384.45 (4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers Unit: RMB Period-end balance of Proportion in total Period-end Period-end Period-end balance bad debt proportion ending balance of balance of balance of of accounts of accounts receivable Company name accounts accounts contract receivable and and impairment receivable and receivable assets contract assets provision of contractual assets contractual assets Shenzhen Jinlu 9846607.009846607.0010.25%9846607.00 Industry & Trade 153Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd.Henan Post and Telecommunications 8788494.90 8788494.90 9.15% 87884.95 Technology Co. Ltd.Guangdong Zhanjiang Samsung 4060329.44 4060329.44 4.23% 4060329.44 Automobile Co. Ltd.Shenzhen Showking Jewelry Industry Co. 2573309.28 2573309.28 2.68% 257330.93 Ltd.Wang Changlong 2370760.40 2370760.40 2.47% 2370760.40 Total 27639501.02 27639501.02 28.78% 16622912.72 5. Other receivables Unit: RMB Item Ending balance Beginning balance Dividends receivable 1305581.86 Other receivables 8081783.33 11077935.06 Total 8081783.33 12383516.92 (1) Dividends receivable 1) Category of dividends receivable Unit: RMB Project (or the investee) Ending balance Beginning balance China Pufa Machinery Industry Co. Ltd. 1305581.86 Total 1305581.86 2) Dividends receivable of important account receivable age of over 1 year Unit: RMB Whether impairment Project (or the has occurred and the Ending original value Account receivable age Reason for no recovery investee) basis for determining impairment The company has huge losses in its financial positions and operating China Pufa Machinery conditions and the 1305581.86 2-3 years Not paid yet Industry Co. Ltd. dividends receivable may not be recovered so full impairment is accrued.Total 1305581.86 3) Classification and disclosure through the method for recognizing bad debt □Applicable □ Not applicable 154Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Provisio n for bad debts 130558 130558 100.00%100.00%0.00 made on 1.86 1.86 a single basis Incl uding: Incl uding: 130558130558 Total 100.00% 100.00% 0.00 1.861.86 Provision for bad debts made on an individual basis Unit: RMB Beginning balance Ending balance Description Provisions for Provisions for Proportion of Reasons for Book balance Book balance bad debts bad debts provision provision China Pufa The company's Machinery 1305581.86 1305581.86 1305581.86 100.00% financial Industry Co.position is poor Ltd.Total 1305581.86 1305581.86 1305581.86 Bad debt provision made according to the general model of expected credit loss: Unit: RMB Stage I Stage II Stage III Expected credit loss Expected credit loss Provisions for bad debts Expected credit throughout the duration throughout the duration Total losses for the next 12 (no credit impairment (credit impairment has months occurs) occurred) Balance on January 1 2024 in the current period Provision in the current 1305581.861305581.86 period Balance as of December 31 1305581.861305581.86 2024 Changes in book balance with significant amount changed of loss provision in the reporting period □Applicable □ Not applicable China Pufa Machinery Industry Co. Ltd. has huge losses in its financial position and operating conditions and the dividends receivable may not be recovered so full impairment is accrued. 155Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 4) Bad debt provision provided recovered or reversed in the current period Unit: RMB Amount of change during the current period Beginning Type Recovery or Write-off or Ending balancebalance Provision Other changes reversal cancellation Provisions for 1305581.861305581.86 bad debts Total 1305581.86 1305581.86 (2) Other receivables 1) Classification of other receivables by nature Unit: RMB Nature of payment Period-end book balance Period-beginning book balance Temporary payments receivable 57088093.88 58543570.60 Deposits and security deposits 3195494.08 3092523.97 Total 60283587.96 61636094.57 (2) Disclosure by account receivable age Unit: RMB Account receivable age Period-end book balance Period-beginning book balance Within 1 year (inclusive) 5141214.58 6100909.61 1-2 years 3209073.66 982244.61 2 to 3 years 916546.35 192615.11 Over 3 years 51016753.37 54360325.24 3 to 4 years 249895.55 More than 5 years 51016753.37 54110429.69 Total 60283587.96 61636094.57 3) Classification and disclosure through the method for recognizing bad debt □Applicable □ Not applicable Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Provisio n for bad 538195 516126 220686 522245 500176 220686 debts 89.28% 95.90% 84.73% 95.77%47.79 83.54 4.25 55.56 91.31 4.25 made on a single 156Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. basis Incl uding: Provisio n for bad debts 646404589121.587491941153540468.887107 made on 10.72% 9.11% 15.27% 5.74% 0.17099.089.01200.81 a portfolio basis Incl uding: Account receivab 326854 230887. 303765 631901 433367. 588564 5.42%7.06%10.25%6.86% le age 6.09 66 8.43 5.04 62 7.42 portfolio Portfolio of deposit and 319549 358233. 283726 309252 107100. 298542 5.30%11.21%5.02%3.46% security 4.08 43 0.65 3.97 58 3.39 deposit receivab le 602835522018808178616360505581110779 Total 100.00% 86.59% 100.00% 82.03% 87.9604.633.3394.5759.5135.06 Provision for bad debts made on a portfolio basis: Unit: RMB Ending balance Description Book balance Provisions for bad debts Proportion of provision Account receivable age portfolio 3268546.09 230887.66 7.06% Portfolio of deposit and security deposit receivable 3195494.08 358233.43 11.21% Total 6464040.17 589121.09 Explanation of the basis for determining the portfolio: Bad debt provision made according to the general model of expected credit loss: Unit: RMB Stage I Stage II Stage III Expected credit loss Expected credit loss Provisions for bad debts Expected credit losses throughout the duration throughout the duration Total for the next 12 (no credit impairment (credit impairment has months occurs) occurred) Balance on January 1 2024 540468.20 50017691.31 50558159.51 Balance on January 1 2024 in the current period Provision in the current 114397.5477356.71191754.25 period Reversal in the current 67387.341148160.361215547.70 period Other changes 1642.69 2665795.88 2667438.57 Balance as of December 589121.0951612683.5452201804.63 312024 157Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Division basis at each stage and proportion of bad debt provision accrual Changes in book balance with significant amount changed of loss provision in the reporting period □ Applicable□ Not applicable 4) Bad debt provision provided recovered or reversed in the current period Bad debt provision in the reporting period: Unit: RMB Amount of change during the current period Beginning Type Recovery or Write-off or Ending balancebalance Provision Others reversal cancellation Provisions for 50558159.51191754.251215547.702667438.5752201804.63 bad debts Total 50558159.51 191754.25 1215547.70 2667438.57 52201804.63 5) Other receivables of the top five period-end balances by the owing party Unit: RMB Proportion to Period-end balance Account Company name Nature Ending balance ending balance of of provision for receivable age other receivables bad debts China Automobile South China Intercourse funds 9832956.37 Over 3 years 16.31% 9832956.37 Automobile Sales Co. Ltd.Shenzhen Nanfang Industry and Trade Intercourse funds 7359060.75 Over 3 years 12.21% 7359060.75 Industrial Co. Ltd.Shenzhen Zhonghao Intercourse funds 5000000.00 Over 3 years 8.29% 5000000.00 (Group) Co. Ltd.Shenzhen Kaifeng Special Automobile Intercourse funds 4413728.50 Over 3 years 7.32% 2206864.25 Industry Co. Ltd.Shenzhen Jinbeili Collection and Electric Appliance payment on behalf 2706983.51 Over 3 years 4.49% 2706983.51 Co. Ltd. of others Total 29312729.13 48.62% 27105864.88 6. Prepayments (1) Prepayments listed by account receivable age Unit: RMB Ending balance Beginning balance Account receivable age Amount Proportion Amount Proportion Within 1 year 795544.97 99.77% 38395924.17 99.85% 1-2 years 261.00 0.03% 45984.79 0.12% Over 3 years 1603.94 0.20% 12525.94 0.03% Total 797409.91 38454434.90 158Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Explanation of reasons for delayed settlement of important prepayments with account receivable age over 1 year: None (2) Prepayments with top five period-end balance collected as per the object of prepayment Name of debtor Book balance Proportion in total Provisions forprepayments bad debts Shenzhen Branch of Guoren Property and Casualty Insurance Co. Ltd. 162704.37 20.40% - Shenzhen Nanfang Chengtong Logistics Co. Ltd. 138985.00 17.43% Shenzhen Wuhua Tianbao Software Co. Ltd. 115200.00 14.45% - Guangdong Mingfa Precious Metal Co. Ltd. 102906.64 12.91% - Shenzhen Tiebao Cabinet Co. Ltd. 78900.00 9.89% - Total 598696.01 75.08% - 7. Inventories Whether the Company needs to comply with the disclosure requirements for real estate industry No (1) Inventory classification Unit: RMB Ending balance Beginning balance Provision for decline in the Provision for value of decline in the Item inventories or value of Book balance impairment Book value Book balance inventories or Book value provisions of impairment contract provisions of performance contract cost performance cost Raw materials 8281211.63 8281211.63 89296099.66 89296099.66 Goods in stocks 29558580.97 29094882.38 463698.59 23817853.14 23817853.14 Hedged items 114856873.15 114856873.15 85802395.07 85802395.07 Consigned processing 327656.05 327656.05 materials Goods sold on a commission 3830408.18 3830408.18 2999683.10 2999683.10 basis Total 156527073.93 29094882.38 127432191.55 202243687.02 23817853.14 178425833.88 The Company shall abide by the disclosure requirements of the Business Guidelines of Shenzhen Stock Exchange for Self- discipline Regulation of Listed Companies No. 3 — Industrial Information Disclosure for jewelry-related business. (2) Provision for decline in the value of inventories/contract performance cost impairment Unit: RMB Increase in the current period Decrease in the current period Item Beginning balance Reversal or Ending balance Provision Others Others write-off Goods in stocks 23817853.14 5423369.69 146340.45 29094882.38 159Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Total 23817853.14 5423369.69 146340.45 29094882.38 8. Non-current assets due within one year Unit: RMB Item Ending balance Beginning balance Large-denomination certificates of deposit time deposits and 91587627.9455206250.00 interest due within 1 year Total 91587627.94 55206250.00 (1) Creditors' investment due within one year □ Applicable□ Not applicable (2) Other debt investments due within one year □ Applicable□ Not applicable 9. Other current assets Unit: RMB Item Ending balance Beginning balance Input tax to be deducted 25711444.95 27618761.58 Taxes pre-paid 167748.29 1423927.12 Large-denomination certificates of deposit time deposits and interest 54969057.53 75791108.89 Unamortized expenses 313322.22 Advances offered for agency business 15582254.39 Total 96743827.38 104833797.59 10. Other debt investments (1) Information on other debt investments Unit: RMB Accumula ted Changes impairme Accumula in fair nt Interest ted Beginnin Accrued value in Ending provision Item adjustmen Costs changes Remarks g balance interests the balance recognize t in fair current d in other value period comprehe nsive income Transfera ble large- 67627948472412 sum 8.608.76 certificate of deposit 67627948472412 Total 8.608.76 160Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 11. Other equity instrument investments Unit: RMB Reasons for Gains Divide being Gains Losses accumulate Losses nd measured at included in included in d into accumulated incom designated other other other into other e fair value Ending Beginning comprehen comprehensi comprehen Item name comprehensive recogn with their balance balance sive ve income sive income at the ized in changes income in in the income at end of the the included in the current current the end of current period current other period period the current period comprehensi period ve income Investment in unlisted 0.00383317.67-383317.67-10176617.20 equity instruments Total 383317.67 -383317.67 -10176617.20 12. Long-term receivables (1) Long-term receivables Unit: RMB Ending balance Beginning balance Discount rate Item Provisions Provisions Book balance Book value Book balance Book value range for bad debts for bad debts Transactions with related 6146228.91 6146228.91 6146228.91 6146228.91 parties Total 6146228.91 6146228.91 6146228.91 6146228.91 (2) Disclosure by bad debt accrual method Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Provisio n for bad debts 614622 614622 614622 614622 100.00%100.00%100.00%100.00% made on 8.91 8.91 8.91 8.91 a single basis Incl 161Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. uding: Incl uding: 614622614622614622614622 Total 100.00% 100.00% 100.00% 100.00% 8.918.918.918.91 13. Long-term equity investments Unit: RMB Changes in the current period Period Invest Period - ment Adjust Period - beginn Cashprofit ment Period -end beginn ing divideor loss to -end balanc Investe ing balanc Additi Reduc Other nd or Provisirecogn other balanc e of e balanc e of onal ed equity profit on forized compr Others e impair e impair invest invest change declare impairthroug ehensi (book ment (book ment ment ments s d to be menth the ve value) provisi value) provisi distribequity incom on on utedmetho e d I. Joint ventures Shenz hen Tellus- Gmon 49250 21965 15000 56216 d 845.0 159.2 000.0 004.2 Invest 6 0 0 6 ment Co.Ltd.Shenz hen Telixin 1330213686 g 38459 311.6903.3 Invest 1.77 07 ment Co.Ltd. 62553223491500069902 Subtot 156.6750.9000.0907.6 al 6703 II. Associates Shenz hen Renfu Tellus 13958 15188 1230 Autom 330.9 925.5 594.66 obiles 1 7 Servic e Co.Ltd.Shenz hen Tellus 162Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Autom obile Servic e Chain Co.Ltd.Shenz hen Yongt ong Xinda Testin g Equip ment Co.Ltd.Hunan Chang yang 1810 1810 Industr 540.70 540.70 ial Co.Ltd.Shenz hen Jieche ng 3225 3225 Electro 000.00 000.00 nics Co.Ltd.Shenz hen Xianda o New 4751 4751 Materi 621.62 621.62 als Co.Ltd.China Autom otive Industr y 40000 40000 Shenz 0.00 0.00 hen Tradin g Co.Ltd.Shenz hen Univer sal 50000 50000 Standa 0.00 0.00 rd Parts Co. 163Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ltd.Shenz hen China Autom obile South 2250 2250 China 000.00 000.00 Autom obile Sales Co.Ltd.Shenz hen Bailiy uan 1320 1320 Power 000.00 000.00 Supply Co.Ltd.Shenz hen Yimin 2000020000 Auto 1.101.10 Tradin g Co.Ltd.Shenz hen Torch Spark 17849 63263 63263 17849 Plug .20 6.00 6.00 .20 Industr y Co.Ltd.Shenz hen Hanli High 19561956 Tech 000.00000.00 Ceram ics Co.Ltd.Shenz hen Nanfa ng 6700 6700 Autom 000.00 000.00 obile Repair Center 13958231311518823131 Subtot 1863 63263 330.9012.6925.5012.6 al 230.66 6.00 1272 Total 76511 23131 24212 15632 85091 23131 164Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 487.5012.6981.6636.0833.2012.6 723002 Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses □ Applicable□ Not applicable Whether the recoverable amount is determined according to the present value of the expected future cash flow □ Applicable□ Not applicable Reasons for the apparent inconsistency between the aforementioned information and the information or external information used in the impairment test of previous years Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and the actual situation in that year Other notes: 14. Investment properties (1) Investment properties measured at cost □Applicable □ Not applicable Unit: RMB Item Premises and buildings Land use right Construction in progress Total I. Original carrying value 1. Beginning balance 1104591317.70 95667082.86 1200258400.56 2. Amount increase in the 178673271.38178673271.38 current year (1) Outsourcing (2) Transfer from inventory/fixed assets/construction in progress (3) Increase from 178673271.38178673271.38 business merger 3. Decrease in the current 708715.60708715.60 period (1) Disposal (2) Other transfer-out 708715.60 708715.60 4. Ending balance 1282555873.48 95667082.86 1378222956.34 II. Accumulated depreciation and accumulated amortization 1. Beginning balance 185791265.90 6329792.86 192121058.76 2. Amount increase in the 85326816.121115448.3686442264.48 current year (1) Provision or 30561057.741115448.3631676506.10 amortization (2) Changes in consolidation 54765758.3854765758.38 scope 3. Decrease in the current 112500.00112500.00 period 165Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (1) Disposal (2) Other transfer-out 112500.00 112500.00 4. Ending balance 271005582.02 7445241.22 278450823.24 III. Impairment provision 1. Beginning balance 2. Amount increase in the current year (1) Provision 3. Decrease in the current period (1) Disposal (2) Other transfer-out 4. Ending balance IV. Book value 1. Ending book value 1011550291.46 88221841.64 1099772133.10 2. Beginning book value 918800051.80 89337290.00 1008137341.80 Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses □ Applicable□ Not applicable Whether the recoverable amount is determined according to the present value of the expected future cash flow □ Applicable□ Not applicable Reasons for the apparent inconsistency between the aforementioned information and the information or external information used in the impairment test of previous years Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and the actual situation in that year Other notes: (2) Investment properties measured at fair value □ Applicable□ Not applicable (3) Investment properties whose property certificates are not obtained Unit: RMB Item Book value Reasons for failure to obtain the property certificate The property ownership certificate has not been handled due to historical CNNC office building 3723631.89 reasons.The property ownership certificate has not been handled due to historical Shops in Building 12 Sungang 15287.19 reasons.The property ownership certificate has not been handled due to historical Building 12 Sungang 5231.57 reasons.Total 3744150.65 166Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 15. Fixed assets Unit: RMB Item Ending balance Beginning balance Fixed assets 70699928.84 78935843.49 Disposal of fixed assets 63754.41 Total 70763683.25 78935843.49 (1) Fixed assets Unit: RMB Office and Premises and Machinery Transportatio Electronic Fixed asset Item other Total buildings equipment n equipment equipment decoration equipment I. Original book value: 1. 218581348.16398875.3254067224. Beginning 2086527.73 7934543.38 1141459.06 7924470.72 20746 balance 2. Amount 11319374.7 increase in 79266.00 5125654.81 1116476.65 4267446.58 427835.53 302695.18 5 the current year (1) 79266.00150265.49692144.587728.73929404.80 Purchase (2) Transfer from construction in progress (3) Increase 10389969.9 from 5125654.81 966211.16 3575302.00 427835.53 294966.45 5 business merger 3. Decrease in 191120.8587363.203220345.76850984.064349813.87 the current period (1) Disposal or 191120.85 87363.20 3220345.76 850984.06 4349813.87 scrapping 4. 218469493.21437166.9261036785. Ending 3203004.38 8981644.20 1569294.59 7376181.84 35834 balance II.Accumulated depreciation 167Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 1. 149723225.169951331. Beginning 7679528.26 1751569.49 5060533.11 860076.33 4876398.96 5166 balance 2. Amount 18268994.1 increase in 5873830.18 4869553.68 898598.95 5057515.96 243866.14 1325629.27 8 the current year (1) 5873830.18988573.2954220.611905263.09-1085268.059907155.22 Provision (2) Other 3880980.39844378.343152252.87243866.14240361.228361838.96 increases 3. Decrease in 189170.8584837.202800450.79840214.573914673.41 the current period (1) Disposal or 189170.85 84837.20 2800450.79 840214.57 3914673.41 scrapping 4. 155407884.12464244.7184305652. Ending 2650168.44 7317598.28 1103942.47 5361813.66 84443 balance III.Impairment provision 1. Beginning 3555385.70 736597.13 6165.00 455627.38 281382.73 144891.37 5180049.31 balance 2. Amount increase in 663552.47 55819.82 301719.29 183969.39 15505.02 1220565.99 the current year (1) Provision (2) Other 663552.4755819.82301719.29183969.3915505.021220565.99 increases 3. Decrease in 369411.23369411.23 the current period (1) Disposal or 369411.23 369411.23 scrapping 4. Ending 3555385.70 1400149.60 61984.82 387935.44 465352.12 160396.39 6031204.07 balance IV. Book value 59506222.870699928.8 1.7572772.64490851.121276110.481853971.7914 168Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ending book value 2. 65302736.978935843.4 Beginning 7982749.98 328793.24 2418382.89 2903180.39 99 book value (2) Fixed assets leased out by operating lease Unit: RMB Item Ending book value Premises and buildings 51461033.63 (3) Fixed assets whose property certificates are not obtained Unit: RMB Item Book value Reasons for failure to obtain the property certificate The property ownership certificate has not been Yongtong Building 19560136.03 handled due to historical reasons.The property ownership certificate has not been Automobile Building 19423183.24 handled due to historical reasons.The property ownership certificate of the parking lot Parking Lot of Tellus Building 6937664.36 cannot be handled.The property ownership certificate has not been Floor 3-5 Plants 1# 2# and 3# Taoyuan Road 2496213.79 handled due to historical reasons.Transfer floor(s) of Tellus Building 1090719.80 Unable to apply for property ownership certificate The property ownership certificate has not been No.16 Apartment of Taohuayuan 884416.26 handled due to historical reasons.The property ownership certificate has not been Warehouse 663180.37 handled due to historical reasons. 1/F Bao'an Commercial and Residential The property ownership certificate has not been 612921.08 Building handled due to historical reasons.The property ownership certificate has not been Shuibei Zhongtian Building 604158.52 handled due to historical reasons.The property ownership certificate has not been Warehouse of the Trade Department 41813.41 handled due to historical reasons.The property ownership certificate has not been Shops Plants No. 5-7 Buxin 24948.02 handled due to historical reasons.The property ownership certificate has not been Songquan Apartment (mixed) 10086.79 handled due to historical reasons.The property ownership certificate has not been Buxin Generator Room 5994.58 handled due to historical reasons.The property ownership certificate has not been Guest House on Renmin North Road 5902.41 handled due to historical reasons.Total 52361338.66 Other notes: (4) Impairment test of fixed assets □ Applicable□ Not applicable 169Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (5) Disposal of fixed assets Unit: RMB Item Ending balance Beginning balance Fixed assets to be disposed 63754.41 Total 63754.41 16. Construction in progress Unit: RMB Item Ending balance Beginning balance Construction in progress 3332141.19 7279570.05 Total 3332141.19 7279570.05 (1) Information of construction in progress Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Restoration Project after Reinforcement of 1885589.69 1885589.69 Building No. 5 Buxin Renovation of the exhibition hall and treasury area of the 4740393.23 4740393.23 sunken area on B1 of the Tellus Jewelry Building Reconstruction and upgrading of the Shuibei 808507.65 808507.65 Zhongtian Building Decoration project for the annex building of the 108945.00108945.00 Tellus Gold and Diamond Building Other projects 1446551.50 1446551.50 1621724.17 1621724.17 Total 3332141.19 3332141.19 7279570.05 7279570.05 (2) Impairment test of construction in progress □ Applicable□ Not applicable 17. Right-of-use assets (1) Right-of-use assets Unit: RMB Item Premises and buildings Total I. Original carrying value 170Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 1. Beginning balance 80401818.61 80401818.61 2. Amount increase in the current year 16421565.70 16421565.70 (1) Leasing 16421565.70 16421565.70 3. Decrease in the current period 439783.14 439783.14 (1) Due 439783.14 439783.14 4. Ending balance 96383601.17 96383601.17 II. Accumulated depreciation 1. Beginning balance 8497102.11 8497102.11 2. Amount increase in the current year 9474215.37 9474215.37 (1) Provision 9474215.37 9474215.37 3. Decrease in the current period 145721.81 145721.81 (1) Disposal (2) Due 145721.81 145721.81 4. Ending balance 17825595.67 17825595.67 III. Impairment provision 1. Beginning balance 2. Amount increase in the current year (1) Provision 3. Decrease in the current period (1) Disposal 4. Ending balance IV. Book value 1. Ending book value 78558005.50 78558005.50 2. Beginning book value 71904716.50 71904716.50 (2) Impairment test of right-of-use assets □ Applicable□ Not applicable 18. Intangible assets (1) Intangible assets Unit: RMB Item Land use right Patent rights Non-patented Computertechnology Trademark software Total I. Original carrying value 1. Beginning balance 1967851.00 128500.00 7196385.90 9292736.90 2. Amount increase in the current year 593082.30 593082.30 (1) Purchase 420082.30 420082.30 (2) Internal R&D (3) Increase from business merger 173000.00 173000.00 171Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3. Decrease in the current period (1) Disposal 4. Ending balance 1967851.00 128500.00 7789468.20 9885819.20 II. Accumulated amortization 1. Beginning balance 802676.49 110987.78 4463302.02 5376966.29 2. Amount increase in the current year 103571.05 3792.78 625654.63 733018.46 (1) Provision 103571.05 3792.78 452654.63 560018.46 (2) Changes in consolidation scope 173000.00 173000.00 3. Decrease in the current period (1) Disposal 4. Ending balance 906247.54 114780.56 5088956.65 6109984.75 III. Impairment provision 1. Beginning balance 2. Amount increase in the current year (1) Provision 3. Decrease in the current period (1) Disposal 4. Ending balance IV. Book value 1. Ending book value 1061603.46 13719.44 2700511.55 3775834.45 2. Beginning book value 1165174.51 17512.22 2733083.88 3915770.61 Ratio of intangible assets formed through internal R&D to the balance of intangible assets at the end of the current period. (2) Data resources recognized as intangible assets □ Applicable□ Not applicable (3) Impairment test of intangible assets □ Applicable□ Not applicable 19. Long-term deferred expenses Unit: RMB Item Beginning Increase in the Amortization amount inbalance current period the current period Other decreases Ending balance Decoration engineering 38392179.02 22719349.38 13046045.39 - 48065483.01 Information System Service Fee 43577.00 13650.64 - 29926.36 172Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Total 38392179.02 22762926.38 13059696.03 48095409.37 20. Deferred tax assets/deferred tax liabilities (1) Deferred tax assets not offset Unit: RMB Ending balance Beginning balance Item Deductible Deferred Deductible Deferred temporary income tax temporary income tax difference assets difference assets Deductible losses 12429491.12 3107372.77 Provision for credit impairment 34988635.30 8747158.83 35059422.28 8764855.57 Deferred income 556473.76 139118.44 687408.75 171852.19 Changes in the fair value of trading financial assets 398515.24 99628.81 13705388.76 3426347.19 Changes in the fair value of other equity instrument 10176617.202544154.309793299.532448324.88 investments Lease liabilities 84443765.66 21110941.41 79671619.30 19917904.83 Total 130564007.16 32641001.79 151346629.74 37836657.43 (2) Deferred tax liabilities not offset Unit: RMB Ending balance Beginning balance Item Taxable temporary Taxable temporary Deferred tax liabilities Deferred tax liabilities differences differences Accelerated depreciation of fixed 126577.00 31644.25 562445.00 140611.25 assets Time difference of income tax due to 17094258.404273564.6019145855.244786463.81 allocation of rent-free period income Measurement of remaining equity fair 67398061.80 16849515.45 value Increase in assessed value from business 114326295.4728581570.00 combinations under different control Right-of-use assets 77731810.56 19432952.64 74533199.60 18633299.90 Total 209278941.43 52319731.49 161639561.64 40409890.41 (3) Deferred tax assets or liabilities presented in net amount after being offset Unit: RMB Amount of offsetting Mutual off-set amount Period-beginning Period-end balance of of deferred income tax of deferred tax assets balance of deferred tax Item deferred tax assets or assets against liabilities and liabilities at the assets or liabilities after liabilities after offset at the end of the period beginning of the period offset Deferred income tax 5496778.78 37836657.43 173Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. assets 27144223.01 Deferred tax liabilities 27144223.01 25175508.48 40409890.41 (4) Breakdown of unrecognized deferred tax assets Unit: RMB Item Ending balance Beginning balance Deductible temporary difference 149654149.86 123519997.09 Deductible losses 44519904.21 22073706.37 Total 194174054.07 145593703.46 (5) Deductible losses of unrecognized deferred tax assets will become mature and due in the following years Unit: RMB Year Ending amount Beginning amount Remarks 2024 20256285169.813230232.35 20268589171.358589171.35 20272693238.234821009.13 202824987453.675433293.54 20291964871.15 Total 44519904.21 22073706.37 21. Other non-current assets Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Prepaid project 47062569.0047062569.0047071710.5147071710.51 payment Reclassification of VAT debit 7237158.45 7237158.45 8385565.03 8385565.03 balance Large- denomination certificates of 145315608.13145315608.1341431777.7841431777.78 deposit and interest due over one year Prepayments 132775.71132775.71164000.00164000.00 for software Total 199748111.29 199748111.29 97053053.32 97053053.32 22. Assets with restricted ownership or right-of-use Unit: RMB 174Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Period end Period beginning Item Book Restricted Book Restricted Book value Restriction Book value Restriction balance type balance type Security Security deposits deposits Cash at 76695391. 76695391. Security and futures 60117573. 60117573. Security and futures bank and 06 06 deposit margin for 95 95 deposit margin for on hand bank gold bank gold leasing leasing 76695391.76695391.60117573.60117573. Total 06069595 23. Short-term borrowings (1) Classification of short-term borrowings Unit: RMB Item Ending balance Beginning balance Credit borrowings 120101444.43 145131694.44 Total 120101444.43 145131694.44 Notes on the classification of short-term borrowings: 24. Trading financial liabilities Unit: RMB Item Ending balance Beginning balance Trading financial liabilities 56881954.76 Including: Gold leasing 56881954.76 Including: Total 56881954.76 25. Derivative financial liabilities Unit: RMB Item Ending balance Beginning balance Derivative financial liabilities with designated hedging relationship 46660.00 1380.00 Total 46660.00 1380.00 26. Notes payable Unit: RMB Category Ending balance Beginning balance Bank acceptance bills 110000000.00 Total 110000000.00 175Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 27. Accounts payable (1) Presentation of accounts payable Unit: RMB Item Ending balance Beginning balance Purchase payment for goods and services 7874360.75 6150884.19 Payment for engineering equipment 117681332.38 129683530.20 Total 125555693.13 135834414.39 (2) Significant accounts payable with an account receivable age of over one year Unit: RMB Item Ending balance Reasons for not repaying orcarrying forward Shenzhen Yinglong Jian'an (Group) Co. Ltd. 28298954.80 Project(s) unsettled China Construction First Building (Group) Corporation Limited 6558657.35 Project(s) unsettled Shenzhen Yinuo Construction Engineering Co. Ltd. 3555095.22 Project(s) unsettled Shenzhen Shuibei Yihao Investment Development Co. Ltd. 1120000.00 Project(s) unsettled Beijing Fugonglide Technology Development Co. Ltd. 1038109.61 Project(s) unsettled Total 40570816.98 28. Other payables Unit: RMB Item Ending balance Beginning balance Other payables 126312280.55 126826966.60 Total 126312280.55 126826966.60 (1) Other payables 1) Other payables presented by the nature of payment Unit: RMB Item Ending balance Beginning balance Guarantee and security deposits 73630322.35 61572033.08 Associated intercourse funds 7845985.83 13217780.83 Withdrawal in advance 14104886.38 14559784.33 Temporary receipts payable 30731085.99 37477368.36 Total 126312280.55 126826966.60 2) Other significant accounts payable with an account receivable age of over one year or overdue Unit: RMB Reasons for not repaying or carrying Item Ending balance forward Hongkong Yujia Investment Limited 2255339.58 Outstanding by related companies Shenzhen Fuluxin Jewelry Co. Ltd. 1441083.45 Security deposits not yet due Shenzhen Longgang Tellus Real Estate Co. Ltd. 1095742.50 Outstanding by related companies 176Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Total 4792165.53 3) The top ten other payables by ending balance aggregated by counterparty 29. Advances from customers (1) Presentation of advances from customers Unit: RMB Item Ending balance Beginning balance Rent 9469503.75 4306567.65 Total 9469503.75 4306567.65 30. Contract liabilities Unit: RMB Item Ending balance Beginning balance Goods fees receivable in advance 2404815.58 2628855.25 Services fees receivable in advance 1604689.01 4451120.13 Total 4009504.59 7079975.38 31. Employee compensation payable (1) Employee compensation payable Unit: RMB Beginning Increase in the Decrease in the Item Ending balance balance current period Current Period I. Short-term compensation 33425356.15 48633497.23 45284502.19 36774351.19 II. Post-employment benefits-defined 4405374.254376101.5029272.75 contribution plans III. Dismissal benefits 633205.73 601205.73 32000.00 Total 33425356.15 53672077.21 50261809.42 36835623.94 (2) Presentation of short-term compensation Unit: RMB Beginning Increase in the Decrease in the Item Ending balance balance current period Current Period 1. Wages bonuses allowances and subsidies 33338217.09 40960185.92 38153409.76 36144993.25 2. Employee benefits 85500.00 1595410.64 1162739.02 518171.62 3. Social insurance premiums 1779353.45 1768762.24 10591.21 Including: Medical insurance premiums 1371562.54 1362664.06 8898.48 Work-related injury insurance 175659.99174895.60764.39 premium Maternity insurance premiums 232130.92 231202.58 928.34 4. Housing provident fund 1012.80 3288945.98 3288945.98 1012.80 177Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 5. Labor union funds and staff education funds 626.26 1009601.24 910645.19 99582.31 Total 33425356.15 48633497.23 45284502.19 36774351.19 (3) Presentation of defined contribution plan Unit: RMB Increase in the Decrease in the Item Beginning balance Ending balance current period Current Period 1. Basic endowment insurance 4168578.11 4140834.14 27743.97 2. Unemployment insurance premium 236796.14 235267.36 1528.78 3. Enterprise annuity Total 4405374.25 4376101.50 29272.75 32. Taxes payable Unit: RMB Item Ending balance Beginning balance Value-added tax 5266527.71 1753636.75 Consumption tax 964.82 Corporate income tax 11454335.79 7692722.34 Individual income tax 1297785.08 1174933.55 Urban maintenance and construction tax 105007.68 98752.51 Educational surcharges 74959.48 70691.09 Land use tax 26460.00 Land VAT 17360372.46 17386832.46 Stamp duty 518448.66 526135.54 Other taxes 4878.34 153743.82 Total 36109740.02 28857448.06 33. Non-current liabilities due within one year Unit: RMB Item Ending balance Beginning balance Lease liabilities due within one year 8674869.40 7304647.32 Total 8674869.40 7304647.32 34. Other current liabilities Unit: RMB Item Ending balance Beginning balance Taxes of items to be written off 6142814.36 3388998.35 Total 6142814.36 3388998.35 35. Lease liabilities Unit: RMB 178Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Item Ending balance Beginning balance Lease liabilities 76541985.55 69524214.23 Total 76541985.55 69524214.23 36. Long-term payables Unit: RMB Item Ending balance Beginning balance Long-term payables 3920160.36 3920160.36 Total 3920160.36 3920160.36 (1) Long-term payables by the nature of payment Unit: RMB Item Ending balance Beginning balance Employee housing deposit 3908848.40 3908848.40 Grant for technology innovation projects 11311.96 11311.96 Subtotal 3920160.36 3920160.36 37. Estimated liabilities Unit: RMB Item Ending balance Beginning balance Reason for formation Pending litigation 268414.80 Total 268414.80 38. Deferred income Unit: RMB Increase in the Decrease in the Reason for Item Beginning balance Ending balance current period Current Period formation Government 9617683.531780205.937837477.60 subsidies Total 9617683.53 1780205.93 7837477.60 -- 39. Share capital Unit: RMB Increase (+)/decrease (-) in this period Beginning Conversion Ending balance Issuance of of capitalBonus shares Others Subtotal balance new shares reserve into share capital 431058320.431058320. Total shares 0000 179Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 40. Capital reserves Unit: RMB Increase in the current Decrease in the Current Item Beginning balance Ending balance period Period Capital premium (share 425184907.34425184907.34 premium) Other capital reserves 5681501.16 5681501.16 Total 430866408.50 430866408.50 41. Other comprehensive income Unit: RMB Amount incurred in the current period Less: Less: Amount Amount included in included in other other Amount comprehen comprehen incurred sive sive Attributabl Attributabl Beginning before incomes in income in Less: e to the e to EndingItem balance income tax the the Income tax parent minority balance in the previous previous expenses company shareholder current period but period and after tax s after tax period transferred transferred to profit to retained and loss in earnings in the current the current period period I. Other comprehen sive income - - - items not to 7344974.6 7632462.9 287488.25 be 5 0 reclassified into profits and losses Chang es in the fair value -- of other - 7344974.67632462.9 equity 287488.25 50 instrument investment s II. Other comprehen sive income 26422.00 26422.00 items to be reclassified into profits 180Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. and losses Including: Other comprehen sive income items to be 26422.0026422.00 reclassified into profits and losses through the equity method Total other -- comprehen - 7318552.67606040.9 sive 287488.25 50 income 42. Surplus reserve Unit: RMB Increase in the Decrease in the Item Beginning balance Ending balance current period Current Period Statutory surplus reserves 63956286.46 10266370.53 74222656.99 Total 63956286.46 10266370.53 74222656.99 43. Undistributed profits Unit: RMB Item Current period Previous period Undistributed profits at the end of the previous period before adjustment 685342592.62 590605394.67 Total number of undistributed profit at the beginning of adjustment period 8804.40 (increase to be listed with "+" decrease to be listed with "-") Undistributed profits at the beginning of the period after adjustment 685342592.62 590614199.07 Add: Net profits attributable to owners of parent company in the current period 136629870.80 118255140.84 Less: Appropriation to statutory surplus reserve 10266370.53 11457114.33 Ordinary share dividends payable 13362807.92 12069632.96 Undistributed profits at the end of the period 798343284.97 685342592.62 Breakdown of adjusted undistributed profits at the beginning of the period: 1) The affected undistributed profit at the beginning of the period due to the retroactive adjustment of ASBE and its relevant new regulations is RMB 0.00. 2) Due to changes in accounting policies the affected undistributed profit at the beginning of the period is RMB 0.00. 3) Due to the correction of major accounting errors the affected undistributed profit at the beginning of the period is RMB 0.00. 4) Due to a change in the consolidation scope as a result of common control the affected undistributed profit at the beginning of the period is RMB 0.00. 5) Due to the total of other adjustments the affected undistributed profit at the beginning of the period is RMB 0.00. 181Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 44. Operating revenue and operating cost Unit: RMB Amount incurred in the current period Amount Incurred in the previous period Item Revenue Costs Revenue Costs Main business 2613678204.37 2376764300.06 1840775590.72 1644301037.12 Other business 5963251.17 4036162.48 Total 2613678204.37 2376764300.06 1846738841.89 1648337199.60 Audited net profit before and after deducting non-recurring gains and losses (whichever is lower negative value or not) □Yes□ No Breakdown information of operating revenues and operating costs: Unit: RMB Classificati Segment 1 Segment 2 Total on of Operating Operating Operating Operating Operating Operating Operating Operating contract revenue cost revenue cost revenue cost revenue cost Business type Including: Jewelry 23208420227335442320842022733544 sales and 52.7839.8552.7839.85 services Leasing 29283615103409862928361510340986 and 1.590.211.590.21 services By operating region Including: South 19715042 17433542 19715042 17433542 China 50.32 12.66 50.32 12.66 24149579238075582414957923807558 East China 9.740.059.740.05 North 26088160 25735561 26088160 25735561 China 6.21 9.98 6.21 9.98 Central 12109940 11954719 12109940 11954719 China 8.56 7.35 8.56 7.35 Other 18697139. 18431690. 18697139. 18431690.regions 54 02 54 02 By market or customer type Including: By contract type Including: By time of transfer of goods 182Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Including: By contract term Including: By sales channel Including: 26136782237676432613678223767643 Total 04.3700.0604.3700.06 45. Taxes and surcharges Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Urban maintenance and construction tax 1830648.40 1077410.34 Educational surcharges 784536.01 461747.20 Property tax 7172545.32 7253212.27 Land use tax 442956.07 412099.40 Land VAT 11997689.82 Stamp duty 2405663.01 1718798.56 Local educational surcharges 523024.00 307831.47 Vehicle and vessel use tax 13275.47 1320.00 Total 13172648.28 23230109.06 46. Administrative expenses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Employee compensation 38432977.77 68670655.46 Depreciation and amortization 4766354.91 4513002.32 Consulting and service fees 4538253.56 7233752.18 Office expenses 992490.75 899835.11 Property management fee\cleaning 811611.67911298.57 fee\utilities Transport and travel expenses 289228.68 257294.53 Advertising expenses 162934.17 151938.34 Communication expenses 137608.06 101964.65 Business entertainment expenses 81061.23 130697.36 Others 1150071.65 2751356.57 Total 51362592.45 85621795.09 47. Selling expenses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Employee compensation 6552554.33 7129402.58 E-commerce channel operation service fee 6284555.98 183Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Depreciation and amortization 3089169.78 2562163.21 Advertising marketing expenses 1514296.05 1946341.18 Consultation and service expenses 1054392.27 2570164.71 Insurance expenses 548338.28 362748.38 Communication expense 424139.87 159849.95 Utilities and cleaning fees 423458.67 1735848.97 Transportation and travel expenses 271940.20 495863.28 Office expenses 171365.99 291536.03 Business entertainment expenses 60070.06 301268.22 Material consumption expenses 444.42 9253.40 Others 1837954.99 1564074.84 Total 22232680.89 19128514.75 48. R&D expenses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Employee compensation 2980237.50 1849878.34 Depreciation and amortization 70296.60 115917.44 Others 218285.78 Total 3268819.88 1965795.78 49. Financial expenses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Net interest expenses 9096305.49 9444953.16 Interest income -2984792.54 -4682945.54 Exchange profit and loss -53888.97 670928.14 Handling expenses and others 331390.71 104944.16 Total 6389014.69 5537879.92 50. Other incomes Unit: RMB Sources of other incomes Amount incurred in the current period Amount Incurred in the previous period I. Government subsidies included in 6524396.478480891.46 other incomes Including: Government subsidies related 1780205.931747472.18 to deferred income Government subsidies directly included 4744190.546733419.28 in current profits and losses II. Other items related to daily activities 73439.6810158.93 and included in other incomes Including: Individual income tax 73439.6810158.93 withholding fees Total 6597836.15 8491050.39 51. Income from changes in fair value Unit: RMB 184Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Sources of income from changes in fair value Amount incurred in the current period Amount Incurred in the previous period Trading financial assets -12410718.88 -10477822.50 Trading financial liabilities 3002660.00 -2215610.00 Income from changes in fair value of 139823.00786300.00 hedging instruments Income from changes in fair value of -1299627.74-101030.68 hedging items Others 120.00 -120.00 Total -10567743.62 -12008283.18 52. Investment incomes Unit: RMB Amount incurred in Amount Incurred in Item the current period the previous period Income from long-term equity investments calculated through the equity method 24212981.63 19872836.15 Investment income from trading financial assets during the holding period 5770977.63 3132190.40 Profit from re-measurement of residual equity at fair value after loss of the right 69552580.12 of control Interest income from large-denomination certificates of deposit and time deposits 5703743.63 7570633.50 Closing income from commodity futures contracts and T+D contracts (hedging) -15331164.53 -5314788.02 Closing income from commodity futures contracts and T+D contracts (no -886055.89-939938.97 hedging specified) Total 19470482.47 93873513.18 53. Credit impairment losses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Loss on bad debts of accounts receivable 339597.30 -607094.36 Loss on bad debts of other receivables 6719894.33 -107251.93 Impairment loss of other current assets -157396.51 Bad debt loss of dividends receivable -1305581.86 Total 5596513.26 -714346.29 54. Asset impairment losses Unit: RMB Amount incurred in the Amount Incurred in the Item current period previous period I. Loss on diminution in value of inventories and impairment loss on contract -208813.79 performance cost IV. Loss on impairment of fixed assets -838121.78 Total -1046935.57 55. Income from disposal of assets Unit: RMB 185Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Sources of income from asset disposal Amount incurred in the current period Amount Incurred in the previous period Gains from disposal of fixed assets -227.20-59110.10 (losses to be listed with "-") 56. Non-operating incomes Unit: RMB Amount included in current Amount incurred in the Amount Incurred in the Item non-recurring profits and current period previous period losses Gains from unpayable 492565.2558629.97492565.25 payments Revenue from liquidated 3405795.281561760.573405795.28 damages Others 2592.54 770443.76 2592.54 Total 3900953.07 2390834.30 3900953.07 57. Non-operating expenses Unit: RMB Amount included in current Amount incurred in the Amount Incurred in the Item non-recurring profits and current period previous period losses Loss from scrapping of non- 17991.92 current assets Overdue payments and liquidated damage 1383776.06 185239.70 1383776.06 expenditure Others 812183.78 116065.40 812183.78 Total 2195959.84 319297.02 2195959.84 58. Income tax expenses (1) List of income tax expenses Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Current income tax expenses 35638514.23 29670941.56 Deferred tax expenses -11380243.86 12413564.92 Total 24258270.37 42084506.48 (2) Accounting profit and income tax expense adjustment process Unit: RMB Item Amount incurred in the current period Total profits 163290002.41 Income tax expenses based on statutory/applicable tax rate 40822500.60 Effect of different tax rates applied to subsidiaries -1053341.75 Effect of income tax during the period before adjustment -31159.40 186Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Impact of non-deductible costs expenses and losses 2088898.27 Profit or loss of joint ventures and associated enterprises calculated by equity method -5895086.41 Income exempted from taxation (to be listed with "-") -172644.40 Effect of using previously unrecognized deductible losses of previous years and -13133718.97 deductible temporary differences (to be listed with "-") Effect of using previously unrecognized deductible losses and deductible temporary 2244876.91 differences Tax effect of additional deduction for R&D expenses (to be listed with "-") -612054.48 Income tax expenses 24258270.37 59. Other comprehensive income Refer to Note VII. 41 for details. 60. Items in the cash flow statement (1) Cash related to operating activities Other cash received relating to operating activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Guarantee and security deposits 33248403.97 30178690.12 Interest income 1595629.53 4601226.17 Government subsidies received 4822034.27 5489668.98 Receipt of payment security deposits 22987350.00 4040160.00 Current accounts and others 14089935.20 8984997.82 Total 76743352.97 53294743.09 Other cash paid relating to operating activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Out-of-pocket expenses 30628305.96 24693611.96 Guarantee and security deposits 33767616.06 18200617.62 Penalty for breach of contract 1300150.00 78857.09 Payment of gold leasing security deposits 2063282.9849095661.55 and note margins etc.Current accounts and others 12048639.24 15440288.31 Total 79807994.24 107509036.53 (2) Cash related to investing activities Other cash received relating to investing activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Supervision funds received 10665656.00 Incorporation of SDG Huari into 5964034.76 consolidated funds Others 46628.16 Total 5964034.76 10712284.16 Important cash received related to investing activities 187Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Principals and interests of structured deposits wealth management products 820139644.49628726990.40 large-denomination certificates of deposit and time deposits Total 820139644.49 628726990.40 Other cash paid relating to investing activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Security deposit for hedging instruments 14659543.80 1466070.40 List of SDG Huari 6527338.78 Others 78987.06 Total 14659543.80 8072396.24 Important cash paid related to investing activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Structured deposits wealth management products large-denomination certificates 985536930.32 717659265.39 of deposit and time deposits Total 985536930.32 717659265.39 (3) Cash related to financing activities Other cash received related to financing activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Lease security deposit received 253420.00 Total 253420.00 Other cash paid relating to other financing activities Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Capital paid to minority shareholders 4900000.00 Lease security deposit paid 1515467.96 Principal and interest on lease liabilities 12180403.46809217.19 paid Total 12180403.46 7224685.15 Changes in liabilities arising from financing activities □Applicable □ Not applicable Unit: RMB Increase in the current period Decrease in the Current Period Beginning Item balance Non-cash Non-cash Ending balance Cash change Cash change change change Short-term 145131694.44415000000.005981417.61446011667.62120101444.43 borrowings Long-term borrowings 188Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Lease liabilities 76828861.55 18825686.25 10437692.85 85216854.95 Total 221960555.99 415000000.00 24807103.86 456449360.47 205318299.38 61. Supplementary information to the cash flow statement (1) Supplementary information to cash flow statement Unit: RMB Supplementary information Amount in the current period Amount in the previous period 1. Reconciliation of net profit to cash flows from operating activities Net profit 139031732.04 111440466.92 Add: Provision for impairment of assets -5596513.26 1761281.86 Depreciation of fixed assets depletion of oil and gas 41583661.3237924212.30 assets and depreciation of productive biological assets Depreciation of right-of-use assets 9474215.37 6481996.22 Amortization of intangible assets 560018.46 1178005.72 Amortization of long-term deferred expenses 13059696.03 6447382.15 Losses on the disposal of fixed assets intangible 227.2059110.10 assets and other long-term assets (gain to be listed with "-") Losses from the scrapping of fixed assets (gains to 17991.92 be listed with "-") Loss from changes in fair value (gain to be listed 10567743.6212008283.18 with "-") Financial expense (gain to be listed with "-") 9100270.87 9444953.16 Investment loss (gain to be listed with "-") -19470482.47 -93873513.18 Decrease of deferred income tax assets (increase to 32339878.65-29318423.66 be listed with "-") Increases in deferred tax liabilities (decrease to be -15330211.3536817730.02 listed with "-") Decrease of inventory (increase to be listed with "-") 45716613.09 -54724534.68 Decrease in operating receivables (increase to be 100475881.49-102166911.92 listed with "-") Increase in operating items payable (decrease to be 28776082.79-3638036.57 listed with "-") Others Net cash flows from operating activities 390288813.85 -60140006.46 2. Major investment and financing activities not relating to cash deposit and withdrawal Conversion of debt into capital Convertible corporate bonds due within one year Fixed assets acquired through financial lease 3. Net changes in cash and cash equivalents: Ending balance of cash 301275968.63 160223387.69 Less: Period-beginning balance of cash 160223387.69 391406829.36 Add: Period-end balance of cash equivalents 189Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Less: Period-beginning balance of cash equivalents Net increase in cash and cash equivalents 141052580.94 -231183441.67 (2) Net cash paid for acquisition of subsidiaries in the current period Unit: RMB Amount Including: Less: Cash and cash equivalents held by subsidiaries on the date of acquisition -5964034.76 Including: Shenzhen SDG Huari Automobile Enterprise Co. Ltd. -5964034.76 Including: Net cash paid for acquisition of subsidiaries 5964034.76 (3) Composition of cash and cash equivalents Unit: RMB Item Ending balance Beginning balance I. Cash 301275968.63 160223387.69 Including: Cash on hand 20879.87 17215.98 Cash at bank available for payment at any time 241190505.42 120361253.61 Other monetary funds available for payment on demand 60064583.34 39844918.10 III. Period-end balance of cash and cash equivalents 301275968.63 160223387.69 (4) Monetary funds not belonging to cash or cash equivalents Unit: RMB Amount in the current Amount in the previous Reasons for not belonging to Item period period cash and cash equivalents Security deposits for notes payable 33113263.10 Guarantee deposits of notes Deposits for gold futures Futures and options account margin 22848540.40 8188990.60 trading business restricted Deposits for gold leasing Gold leasing security deposits and interests 20069638.91 51328583.35 business restricted Amount under judicial control 663948.65 600000.00 Judicial control Total 76695391.06 60117573.95 62. Monetary items in foreign currency (1) Foreign currency monetary items Unit: RMB Ending foreign currency Ending balance of converted Item Conversion exchange rate balance RMB Cash at bank and on hand Including: USD 861.56 7.1884 6193.24 EUR 190Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. HKD 49698.96 0.92604 46023.22 Accounts receivable Including: USD EUR HKD Long-term borrowings Including: USD EUR HKD Other receivables Including: USD 205381.99 7.1884 1476367.90 Other payables Including: HKD 3376679.37 0.92604 3126940.16 (2) Description of overseas operating entities including the disclosure of the primary places of business abroad bookkeeping base currency and the basis for its selection for significant overseas operating entities. If there is a change in the bookkeeping base currency the reason for the change shall also be disclosed.□ Applicable□ Not applicable 63. Lease (1) The Company as the leasee □Applicable □ Not applicable Variable lease payments not included in the measurement of lease liabilities □ Applicable□ Not applicable Lease expenses for short-term leases or low-value assets that are simplified □ Applicable□ Not applicable Situations involving sale and leaseback transactions (2) The Company as the lessor Operating leases with the Company as the lessor □Applicable □ Not applicable Unit: RMB Including: Incomes related to variable Item Lease income lease payments that are not included in the measurement of lease receipts Lease 292836151.59 Total 292836151.59 Finance lease with the Company as the lessor □ Applicable□ Not applicable 191Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Annual undiscounted lease receipts in the next five years □ Applicable□ Not applicable VIII. R&D Expenditures Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Labor cost 2999634.82 1849878.34 Depreciation expenses 70296.60 115917.44 Other expenses 198888.46 Total 3268819.88 1965795.78 Including: Expense account-based R&D 3268819.881965795.78 expenses IX. Changes in Consolidation Scope 1. Changes in consolidation scope for other reasons Changes in the scope of consolidation due to other reasons (such as establishing new subsidiaries liquidating subsidiaries) and related information: On December 9 2024 both the shareholders of SDG Huari signed an agreement to terminate the liquidation and resume operations. The Company submitted an application to the Shenzhen Qianhai Cooperation Zone People's Court for withdrawal of the compulsory liquidation application for SDG Huari. On December 27 2024 the Company received the Civil Ruling ([2023] Y0391QQ No. 4) from the Shenzhen Qianhai Cooperation Zone People's Court which approved the withdrawal of the compulsory liquidation application for SDG Huari. Consequently the Company included SDG Huari in its consolidated financial statements as of December 27 2024.X. Equity in Other Entities 1. Equity in subsidiaries (1) Composition of enterprise groups Unit: RMB Shareholding Registered Principal place Registered Business Acquisition Subsidiary name proportion capital of business location nature method Direct Indirect Shenzhen Tellus Xinyongtong Automobile 32900000.00 Shenzhen Shenzhen Commerce 5.00% 95.00% Establishment Development Co.Ltd.Shenzhen Bao'an Shiquan Industry 2000000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment Co. Ltd.Shenzhen SDG Tellus Real Estate 31150000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment Co. Ltd.Shenzhen Tellus Chuangying 1500000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment Technology Co. 192Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ltd.Shenzhen Xinyongtong Motor Vehicle 9607800.00 Shenzhen Shenzhen Commerce 51.00% 0.00% Establishment Inspection Equipment Co.Ltd.Shenzhen Automobile 18960000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment Industry and Trade Co. Ltd.Shenzhen Automobile Industry Supply 11110000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment and Marketing Company Shenzhen 366221900.0 Zhongtian Industry Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment 0 Co. Ltd.Shenzhen Huari Automobile Sales 2000000.00 Shenzhen Shenzhen Commerce 60.00% 0.00% Establishment and Service Co.Ltd.Shenzhen Tellus Treasury Supply 50000000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishment Chain Tech Co.Ltd.Shenzhen Jewelry 100000000.0 Industry Service Shenzhen Shenzhen Commerce 65.00% 0.00% Establishment 0 Co. Ltd.Shanghai Fanyue 3500000.00 Shanghai Shanghai Commerce 0.00% 100.00% Establishment Diamond Co. Ltd.Guorun Gold 200000000.0 Shenzhen Shenzhen Commerce 36.00% 3.25% Establishment Shenzhen Co. Ltd. 0 Shenzhen SDG Huari Automobile 35712710.50 Shenzhen Shenzhen Commerce 60.00% 0.00% Establishment Enterprise Co.Ltd.Shenzhen Huari Anxin Automobile 1500000.00 Shenzhen Shenzhen Commerce 0.00% 100.00% Establishment Inspection Co.Ltd.Unit: RMB Explanation of the fact that the shareholding percentage is different from proportion of votes in subsidiaries: The shareholding proportion in Guorun Gold Shenzhen Co. Ltd. is different from the proportion of voting rights and the basis for holding half or less of the voting rights but still controlling the investee: In June 2022 the Company cooperated with its subsidiaries Shenzhen Jewelry Industry Service Co. Ltd. Shenzhen HTI Group Co. Ltd. Chow Tai Fook Jewellery Park (Wuhan) Co. Ltd. Chow Tai Seng Jewelry Co. Ltd. Beijing Caishikou Department Store Co. Ltd. and Shenzhen ZHL Industrial Co. Ltd. to jointly invest in the establishment of Guorun Gold Shenzhen Co. Ltd.Among them the Company contributed RMB 72 million with a shareholding ratio of 36%; Shenzhen Jewelry Industry Service Co. Ltd. a subsidiary of the Company contributed RMB 10 million with a shareholding ratio of 5%; Shenzhen HTI Group Co.Ltd. held 10% and other shareholders held 49% in total. The Company signed a concerted action agreement with Shenzhen HTI Group Co. Ltd. stipulating that Shenzhen Hi-tech Investment Group Co. Ltd. shall maintain a consensus with the Company when 193Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. voting at the shareholders' meeting and the board of directors of Guorun Gold Shenzhen Co. Ltd. Therefore the Company and its subsidiaries actually hold 51% of the voting rights of Guorun Gold Shenzhen Co. Ltd. and have control over Guorun Gold Shenzhen Co. Ltd.The basis for the Company's control over the investee when holding half or less of the voting rights and the Company's control over the investee when holding more than half of the voting rights: Basis for control over the important structured entities incorporated in the consolidated scope: Basis to determine whether the company is the agent or the principal: (2) Important non-wholly-owned subsidiaries Unit: RMB Profit or loss Shareholding Dividends declared to Balance of minority attributable to minority Subsidiary name proportion of minority minority shareholders interests at the end of shareholders in the shareholders in the current period the period current period Guorun Gold Shenzhen 60.75%91947.48120818588.83 Co. Ltd.Notes on the difference between the shareholding percentage of minority shareholders of subsidiaries and the voting rights ratio: (3) Main financial information of important non-wholly-owned subsidiaries Unit: RMB Ending balance Beginning balance Subsid Curren Non- Curren Non- iary Non- Total Non- TotalCurren Total t current Curren Total t current name current liabiliti current liabilitit assets assets liabiliti liabiliti t assets assets liabiliti liabiliti assets es assets es es es es es Guoru n Gold 3896139662194651985640143408842059921093 Shenz 7015 3912 7409 4935 3130.8815.3052.5555.6296.5673.7337.3146. hen 684.80 502.84 377.22 809.24 6949281218403761 Co.Ltd.Unit: RMB Amount incurred in the current period Amount Incurred in the previous period Subsidiary Total Cash flow Total Cash flow name Operating comprehen from Operating comprehen fromNet profit Net profit revenue sive operating revenue sive operating income activities income activities Guorun --- Gold 22998353 20407000 14920217 150733.58150733.581528616.51528616.518233255 Shenzhen 71.86 4.99 25.24 442.52 Co. Ltd. 2. Equities in joint ventures or associates (1) Important associates and joint ventures Name of joint Principal place Registered Business nature Shareholding proportion Accounting 194Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. venture or of business location Methods for associate Investment in Direct Indirect Joint Ventures or Associates I. Joint ventures Shenzhen Equity method- Tellus-Gmond Leasing Shenzhen Shenzhen 50.00% based Investment Co. services accounting Ltd.II. Associates Shenzhen Renfu Tellus Equity method- Automobile Automobiles Shenzhen Shenzhen 35.00% based sales Service Co. accounting Ltd.Explanation of the shareholding percentage being different from the proportion of voting rights in joint ventures or associates: Basis for telling holding less than 20% of the voting rights but enjoying a significant influence or holding 20% or more of the voting rights but not enjoying a significant influence: (2) Main financial information of important joint ventures Unit: RMB Period-end balance/amount incurred in Period-beginning balance/amount the current period incurred in the previous period Shenzhen Tellus-Gmond Investment Co. Shenzhen Tellus-Gmond Investment Co.Ltd. Ltd.Current assets 64308170.72 60614147.72 Including: Cash and cash equivalents 63261490.89 59631516.56 Non-current assets 301569595.17 326363493.98 Total assets 365877765.89 386977641.70 Current liabilities 46770664.57 47521951.61 Non-current liabilities 206675092.80 240954000.00 Total liabilities 253445757.37 288475951.61 Minority shareholders' equity Equity attributable to shareholders of the 112432008.5298501690.09 parent company Shares of net assets calculated as per the 56216004.2649250845.06 shareholding proportion Adjustments --Goodwill --Unrealized profit of internal transactions --Others Book value of equity investments to joint 56216004.2649250845.06 ventures Fair value of equity investment in joint ventures with public offers Operating revenue 132430277.65 114967524.80 Financial expenses 9163348.96 10656384.56 195Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Income tax expenses 15182681.66 11463999.39 Net profit 43930318.41 34214249.85 Net profit from discontinued operations Other comprehensive income Total comprehensive income 43930318.41 34214249.85 Dividends received from joint ventures 15000000.0015000000.00 in the current year (3) Major financial information of important associates Unit: RMB Period-end balance/amount incurred in Period-beginning balance/amount the current period incurred in the previous period Shenzhen Renfu Tellus Automobiles Shenzhen Renfu Tellus Automobiles Service Co. Ltd. Service Co. Ltd.Current assets 142897387.81 167519575.18 Non-current assets 23459468.10 32145888.83 Total assets 166356855.91 199665464.01 Current liabilities 122597583.76 158552555.81 Non-current liabilities 362341.96 1231962.74 Total liabilities 122959925.72 159784518.55 Minority shareholders' equity Equity attributable to shareholders of the 43396930.1939880945.46 parent company Shares of net assets calculated as per the 15188925.5713958330.91 shareholding proportion Adjustments --Goodwill --Unrealized profit of internal transactions --Others Book value of equity investments in 15188925.5713958330.91 associates Fair value of equity investments in associates with public offers Operating revenue 814278410.46 1023951420.71 Net profit 3515984.72 10469419.27 Net profit from discontinued operations Other comprehensive income Total comprehensive income 814278410.46 10469419.27 Dividends received from associates in 0.009385714.52 the current year 196Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (4) Summary of financial information of unimportant joint ventures and associates Unit: RMB Period-end balance/amount incurred in Period-beginning balance/amount the current period incurred in the previous period Joint ventures: Total book value of investments 13680093.35 13302311.60 Total amount of the following items at the shareholding percentage -- Net profit 754101.51 -898585.53 -- Other comprehensive income 754101.51 -898585.53 Associates: Total amount of the following items at the shareholding percentage (5) Explanation on major restrictions on the capability of transferring capital from joint ventures or associates to the Company Unit: RMB Unrecognized loss Unrecognized loss in the Unrecognized loss Name of joint venture or accumulated in the previous current period (or net profit accumulated at the end of the associate period shared in the current period) current period Shenzhen Tellus Automobile 98865.2698865.26 Service Chain Co. Ltd.Shenzhen Yongtong Xinda 1176212.731176212.73 Testing Equipment Co. Ltd.XI. Government Subsidies 1. Government subsidies recognized as receivable amounts at the end of the reporting period □ Applicable□ Not applicable Reasons for not receiving the estimated amount of government subsidies at the expected time point □ Applicable□ Not applicable 2. Liability-related projects with government subsidies □Applicable □ Not applicable Unit: RMB New Amount Amount Other granted included non- transferred to changes Accounting Beginning Ending Asset/income amount in operating other incomes in the item balance balance -related the current revenues in the in the current current period current period period period Deferred 9617683.53 1780205.93 7837477.60 Asset-related income 197Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3. Government subsidies included in current profits and losses □Applicable □ Not applicable Unit: RMB Accounting item Amount incurred in the current period Amount Incurred in the previous period Other incomes 4.744190.54 6733419.28 XII. Risks Related to Financial Instruments 1. Various risks arising from financial instruments The main financial instruments of the Company include cash at bank and on hand accounts receivable and other receivables non-current assets due within one year other current assets trading financial assets debt investments other debt investments other equity instrument investments other non-current financial assets long-term receivables notes payable accounts payable other payables short-term borrowings trading financial liabilities non-current liabilities due within one year lease liabilities and long-term payables. Details of each financial instrument of the Company are disclosed in the notes related. Risks related to these financial instruments and risk management policies for reducing these risks adopted by the Company are described as follows. The management of the Company manages and monitors these risk exposures to ensure that the above risks are controlled in a limited scope.Risk management objectives and policies The major risks that may be caused by the Company’s financial instruments include credit risks liquidity risks and market risks (including exchange rate risk interest rate risk and commodity price risk).The Company's overall risk management plan aims to mitigate the potential adverse effects on the Company's financial performance caused by the unpredictability of the financial market.The Company has formulated risk management policies to identify and analyze all the risks faced by the Company set up the acceptable risk level and design corresponding internal control procedures to monitor the Company's risk level. These risk management policies and related internal control systems will be reviewed regularly to accommodate market conditions or changes in the Company's operating activities. The internal audit department will also regularly or irregularly check whether the implementation of such internal control systems complies with risk management policies.The Company disseminates risks in financial instruments through appropriate diversified investments and business portfolios and formulates corresponding risk management policies to reduce risks concentrated in a single industry specific regions or specific counterparties. (1) Credit risks Credit risk is the risk of financial loss of the Company caused by a counterparty's failure to meet its obligations in a contract. 198Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. The Company manages credit risks through portfolio classification. Credit risk mainly arises from bank deposits accounts receivable other receivables long-term receivables debt investment etc.For expected bank deposits no major credit risk is generated as the Company’s bank deposits are mainly kept in state-owned banks and other large and medium-sized listed banks.For notes receivable accounts receivable other receivables and long-term receivables relevant policies are established by the Company to control credit risk exposure. The Company evaluates customers' credit qualifications based on their financial status credit records and other factors such as current market conditions and sets corresponding credit periods. The Company will monitor the credit records of customers periodically. For customers with poor credit records measures such as written payment demand shortening the credit period or canceling the credit period will be adopted by the Company to ensure the overall credit risk is in the controllable scope.The Company's debtors of accounts receivable are customers distributed in different industries and areas. The Company continuously conducts credit assessments on the financial status of accounts receivable and when appropriate purchases credit guarantee insurance.The maximum credit risk exposure tolerable by the Company is the book amount of each of the financial asset items in the balance sheet. The Company has not provided any other guarantee that may cause the Company to bear credit risks.Among the accounts receivable of the Company the accounts receivable from the top five customers account for 28.78% of the total accounts receivable (2023: 43.23%). Additionally among the other receivables the amounts owed by the top five companies in amount in arrear represent 48.62% of the Company's total other receivables (2023: 47.55%). (2) Liquidity risks Liquidity risk refers to the risk of a shortage of funds arising from the performance of the Company's obligations to settle through the delivery of cash or for other financial assets.In managing liquidity risk the Company maintains sufficient cash and cash equivalents as deemed necessary by management and monitors them to meet operational needs and mitigate the impact of cash flow volatility. The management of the Company monitors the utilization of bank loans and ensures compliance with borrowing agreements. Meanwhile the Company has obtained commitments from major financial institutions regarding the provision of adequate reserve funds to meet the Company's fund requirements in the short and long terms.Sources of the Company's working capital include funds generated from operating activities bank loans and other borrowings. At the end of the period the unused bank borrowing limit of the Company was RMB 20 million (RMB 667 million at the end of the previous year).At the end of the period financial liabilities and off-balance sheet guaranteed items held by the Company are analyzed as follows based on the expiration date of undiscounted remaining contract cash flow (unit: RMB 10000): 199Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ending balance Item Within 1 year 1-2 years 2-3 years Over 3years Total Financial liabilities: Short-term borrowings 12010.14 - - - 12010.14 Trading financial liabilities - - - - - Derivative financial liabilities 4.67 - - - 4.67 Accounts payable 3624.12 3825.94 0.71 5104.80 12555.57 Other payables 4145.11 2375.5 364.18 5746.43 12631.23 Current portion of non-current liabilities 867.49 - - - 867.49 Lease liabilities - 1129.41 1149.10 6471.98 8750.49 Long-term payables - - - 392.02 392.02 Total financial liabilities and contingent liabilities 20651.53 7330.85 1513.99 17715.23 47211.61 At the end of the previous year financial liabilities and off-balance sheet guaranteed items held by the Company were analyzed as follows based on the expiration date of undiscounted remaining contract cash flow (unit: RMB 10000): Ending Balance of the Previous Year Item Within 1 year 1-2 years 2-3 years Over 3 years Total Financial liabilities: Short-term borrowings 14513.17 - - - 14513.17 Trading financial liabilities 5688.20 - - - 5688.20 Derivative financial liabilities 0.14 - - - 0.14 Accounts payable 6939.87 942.36 40.44 5660.77 13583.44 Other payables 4168.24 1641.53 1908.76 4964.17 12682.70 Current portion of non-current liabilities 1066.04 - - - 1066.04 Lease liabilities - 995.42 912.07 6102.07 8009.56 Long-term payables - - - 392.02 392.02 Total financial liabilities and contingent liabilities 32375.66 3579.31 2861.27 17119.03 55935.27 The amount of financial liabilities disclosed in the above table is undiscounted contractual cash flows and may therefore differ from their carrying amount in the balance sheet.The maximum guarantee amount of the signed guarantee contract does not represent the amount to be paid. (3) Market risks 200Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Market risk of financial instruments refers to the risk of fluctuation in fair value or future cash flow of financial instruments due to market price development. Market risks include 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 flow of financial instruments will fluctuate due to changes in the market interest rate. Interest rate risk can come from recognized interest-bearing financial instruments and unrecognized financial instruments (such as certain loan commitments).The interest rate risk of the Company mainly arises from long-term borrowings from banks bonds payable and other long-term debts with interest. Financial liabilities with a floating interest rate expose the Company to cash flow interest rate risk and financial liabilities with a fixed interest rate expose it to a fair value interest rate risk. The Company determines the ratio of fixed-rate and floating-rate contracts based on the market environment and maintains an appropriate combination of fixed-rate and floating-rate instruments through regular review and monitoring.The Company keeps an eye on the effect of changes in interest rates on the Company's interest rate risk. At present the Company does not take any interest rate hedging policy. However the management is responsible for monitoring interest rate risk and will consider hedging significant interest rate risks when necessary. The increase in interest rates will increase the cost of new interest-bearing debts and the Company's unpaid interest expense on interest-bearing debts accrued at floating interest rates which will have a significant adverse effect on the Company's financial results. The management will duly make adjustments according to the latest market conditions. These adjustments may reduce interest rate risks via interest rate swaps.For financial instruments held on the balance sheet date that expose the Company to fair value interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact after re-measurement of the above financial instruments according to the new interest rate assuming that the interest rate on the balance sheet date changes. For floating rate non-derivative instruments held on the balance sheet date that expose the Company to cash flow interest rate risk the impact of net profit and shareholders' equity in the above sensitivity analysis is the impact of the above interest rate changes on the estimated annual interest expenses or income. The previous year's analysis was based on the same assumption and methodology.Exchange rate risk Exchange rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. Exchange rate risk may come from financial instruments valued at a foreign currency other than the bookkeeping base currency.The main business of the Company is conducted in China and settled in RMB. Therefore the Company believes that the exchange rate risk faced is not significant.The Company keeps an eye on the effect of the fluctuation in exchange rates on its exchange rate risk. At present the Company does not take any action to avoid the exchange rate risk. However 201Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. the management is responsible for monitoring exchange rate risks and will consider hedging significant interest rate risks when necessary.Capital management The objective of the Company's capital management policy is to ensure the sustainability of operations thereby providing returns to shareholders and benefiting other stakeholders while maintaining an optimal capital structure to reduce the cost of capital.To maintain or adjust the capital structure the Company may adjust the financing method and the amount of dividends paid to shareholders return capital to shareholders issue new shares and other equity instruments or sell assets to reduce liabilities.The Company monitors capital structure based on the asset-liability ratio (i.e. total liabilities divided by total assets). At the end of the period the Company's asset-liability ratio is 26.85% (27.99% at the end of the previous year). 2. Hedging (1) The Company conducts hedging business for risk management □Applicable □ Not applicable To avoid the risk of changes in the fair value of gold raw materials held by them (i.e. the hedged risk) the subsidiaries of the Company Guorun Gold Shenzhen Co. Ltd. and Shenzhen Tellus Treasury Supply Chain Tech Co. Ltd. analyzed the expected purchase transactions of gold raw materials based on the number of gold bars booked and invested by customers and on this basis used hedging instruments such as deferred delivery contracts for spot gold of Shanghai Gold Exchange gold futures contracts of Shanghai Futures Exchange and exchange gold options. In this way the risk of gold product price decline caused by the sharp drop in gold price can be avoided. Guorun Gold a subsidiary of the Company formulated the Hedging Transaction Management Guidelines which clearly stipulates the approval authority operation process and risk control for the Company to carry out hedging business. The hedge is a fair value hedge and the accounting period specified for the hedging relationship is from January 1 2024 to December 312024. The approval procedures for the Company to use its own funds to carry out hedging business comply with relevant national laws regulations and the Articles of Association. The gold deferred transaction hedging business carried out to avoid fluctuations in gold prices is conducive to controlling operational risks and improving the Company's ability to resist market fluctuations. (2) The Company carries out eligible hedging business and applies hedge accounting Unit: RMB The book value of the hedged items and related adjustments are as follows: 2024 202Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Accumulated amount of Listed Changes in the Book value of the hedged hedging adjustment for fair fair value of item value of hedged items items of hedged items (included in the book value the Item of hedged items) balance used as a basis sheet for recognizing including an invalid Asset Liability Asset Liability hedged portion of items hedges in 2024(note) Commodity price risk- 115731218.89 - -874345.74 - Inventory - inventory 2023 Accumulated amount of Changes in Book value of the hedged hedging adjustment for fair Listed the fair value item value of hedged items items of of hedged(included in the book value the balance items used as Item of hedged items) sheet a basis for including recognizing hedged an invalidAsset Liability Asset Liability items portion ofhedges in 2023 (note) Commodity price risk- 85802395.07 - 442847.41 - Inventory - inventory Changes in the book value and fair value of hedging instruments are as follows: 2024 Book value of hedging instruments Changes in the Listed items fair value of of the hedging Nominal amount balance instruments Item of hedging sheet used as a basis instrument Asset Liability including for recognizing hedging an invalid instruments portion ofhedges in 2024 (note) Commodity Derivative price risk- 115731218.89 292078.00 46660.00 financial - inventory asset/liability 2023 Item Nominal amount Book value of hedginginstruments Listed items of the Changes in the 203Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. of hedging balance sheet fair value of instrument including hedging hedging instruments instruments used Asset Liability as a basis forrecognizing an invalid portion of hedges in 2023 (note) Commodity Derivative price risk- 85802395.07 298320.00 1380.00 financial - inventory asset/liability Note: The invalid portion of hedging mainly comes from basis risk supply and demand change risks in the spot or futures market and uncertainty risks in other spot or futures markets. The invalid portions of hedging recognized in the current and previous years are not significant. (3) The Company carries out hedging business for risk management and expects to achieve the risk management objectives but does not apply hedge accounting □ Applicable□ Not applicable 3. Financial assets (1) Classification of transfer methods □ Applicable□ Not applicable (2) Financial assets derecognized due to transfers □ Applicable□ Not applicable (3) Continuing involvement in the transfer of financial assets □ Applicable□ Not applicable XIII. Disclosure of Fair Value 1. Ending fair value of the assets and liabilities measured at fair value Unit: RMB Ending fair value Item Level 1 fair value Level 2 fair value Level 3 fair value Total measurement measurement measurement I. Continuous fair value measurement -- -- -- -- (I) Trading financial assets 165630834.06 165630834.06 1. Financial assets at fair value through profit 165630834.06165630834.06 or loss (4) Structured deposits and financial 165630834.06165630834.06 products (II) Derivative financial assets 292078.00 292078.00 204Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 1. Hedging instruments 292078.00 292078.00 (III) Other debt investments 84724128.76 84724128.76 1. Large-denomination certificate of deposit 84724128.76 84724128.76 (IV) Other equity instrument investments (V) Hedged items 114856873.15 114856873.15 Total amount of assets continuously 115148951.15250354962.82365503913.97 measured at fair value (1) Gold leasing (VII) Derivative financial liabilities 46660.00 46660.00 1. Hedging instruments 46660.00 46660.00 Total amount of liabilities continuously 46660.0046660.00 measured at fair value II. Non-continuous fair value measurement -- -- -- -- 2. Basis for determining the market price of items subject to continuous and non-continuous level 1 fair value measurement Level 1: Quotations for the same assets or liabilities in active markets (unadjusted).The Company designates the financial liabilities measured at fair value through profit or loss as the physical gold leasing business from banks by the Company. There is an active market for gold (i.e. 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 uses the closing price published by the Shanghai Gold Exchange on the last trading day as the basis for determining the market price.The hedged items of the Company are gold product inventories and the hedging instruments are assets/liabilities arising from changes in the fair value of gold futures contracts and gold spot deferred settlement contracts held by the Company. The Company determines the fair value based on the public quotations of gold spot transactions and futures transactions of Shanghai Gold Exchange and Shanghai Futures Exchange. 3. Qualitative and quantitative information about valuation techniques and key parameters of items concerning continuous and non-continuous level 2 fair value measurement Level 2: Observable input values other than market quotations for assets or liabilities in level 1 are used directly (i.e. price) or indirectly (i.e. derived from price).The trading financial assets held by the Company are bank financial products with one-year principal guaranteed floating income and their fair value is determined based on discounted future cash flows calculated at an agreed expected rate of return. There is no material difference between the fair value and book cost of other non-current financial assets held by the Company.Information on level 2 fair value measurement Content Ending fair value Valuation technique Input value Derivative instrument: Derivative financial -- Discounted cash flowassets method Expected interest rate 205Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Derivative financial -- Discounted cash flowliabilities method Expected interest rate 4. Qualitative and quantitative information about valuation techniques and key parameters of items concerning continuous and non-continuous level 3 fair value measurement 5. Information on adjustment between beginning book value and ending book value of items subject to continuous level 3 fair value measurement and sensitivity analysis of unobservable parameters Level 3: Any input value (unobservable input value) that is not based on observable market data is used for assets or liabilities.Equity instrument investments are measured by the Company based on the investment cost as a reasonable estimate of the fair value because the operating environment operating conditions and financial conditions of the investee China PUFA Machinery Industry Co. Ltd. have not changed significantly.Quantitative information of significant unobservable input values used in level 3 fair value measurement Content Ending fair Valuation Unobservable input Range (weightedvalue technique value average) Equity instrument investment: Unlisted equity investment Net assets N/A N/A 6. Reasons for transfer and the policies applicable at the time of transfer for items subject to continuous fair value measurement and having transferred between levels in the current period In this year the fair value measurement of financial assets and financial liabilities of the Company did not transfer between Level 1 and Level 2 or transfer into or out of Level 3.For financial instruments traded in active markets the Company determines their fair value based on active market quotes. For financial instruments not traded in active markets the Company uses valuation techniques to establish their fair value. The used valuation model mainly includes the discounted cash flow model market comparable company model etc. The input values of valuation techniques mainly include the risk-free interest rate benchmark interest rate exchange rate credit point difference liquidity premium discount for lack of marketability (DLOM) etc.XIV. Related Parties and Related Party Transactions 1. Information of the parent company Shareholding Vote proportion of Name of parent Registered proportion of the the parent Business nature Registered capital company location parent company to company to the the Company Company Shenzhen Special Real estate RMB Economic Zone Shenzhen development and 49.09% 49.09% 6179406000 Development Group operation 206Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd. domestic commerce Information of the parent company SDG Group was established on June 20 1982 and invested by the Shenzhen SASAC. The company currently holds a business license with a unified social credit code of 91440300192194195C and a registered capital of RMB 6179406000.The ultimate controlling party of the Company is the State-owned Assets Supervision and Management Commission of Shenzhen Municipal People’s Government. 2. Information of the subsidiaries of the Company For details of the Company's subsidiaries please refer to Note X. 1. 3. Information of the joint ventures and associates of the Company The important joint ventures or associates of the Company are detailed in Note X. 2.The information on other joint ventures or associates that produced balance by conducting related-party transactions with the Company in the current period or in the earlier period is shown as follows: Name of joint venture or associate Relationship with the Company Shenzhen Tellus Xinyongtong Automobile Service Co. Ltd. Associate of the Company Shenzhen Tellus Automobile Service Chain Co. Ltd. Associate of the Company Shenzhen Yongtong Xinda Testing Equipment Co. Ltd. Associate of the Company Shenzhen Torch Spark Plug Industry Co. Ltd. Associate of the Company Shenzhen Xiandao New Materials Co. Ltd. Associate of the Company Shenzhen Telixing Investment Co. Ltd. Joint venture of the Company 4. Information of other related parties Name of other related party Relationship between other related party and the Company Shenzhen SDG Microfinance Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Urban Renewal Investment Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen Machinery & Equipment Import & Export Co. Ltd. Controlled subsidiary of the Company's parent company Hongkong Yujia Investment Limited Controlled subsidiary of the Company's parent company Shenzhen SDG Engineering Management Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen Tellus Yangchun Company Controlled subsidiary of the Company's parent company Shenzhen SDG Real Estate Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen Longgang Tellus Real Estate Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Tellus Property Management Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Service Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Liming Optoelectronics (Group) Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Building Technology Co. Ltd. Controlled subsidiary of the Company's parent company Shenzhen SDG Eastern Service Co. Ltd. Controlled subsidiary of the Company's parent company Subsidiary controlled by the parent company of the Company ISSTech Information Technology Co. Ltd.within 12 months Shenzhen Wahlai Decoration & Furniture Co. Ltd. Associate of the Company's parent company Enterprise subject to significant impact by key management Shenzhen Zhigu Jinyun Technology Co. Ltd.personnel Shenzhen ZHL Industrial Co. Ltd. Minority shareholder of important subsidiary Beijing Caishikou Department Store Co. Ltd. Minority shareholder of important subsidiary Shenzhen Shuntian Electric Vehicle Technology Development Investment company of the Company 207Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd.Enterprises in which the former president of an important Shenzhen Zhongminglong Investment Co. Ltd.subsidiary holds shares Enterprise controlled by minority shareholders of important Shenzhen Jinliantong Digital Technology Co. Ltd.subsidiary Enterprise controlled by minority shareholders of important Shenzhen Yuepengjin Jewelry Co. Ltd.subsidiary Enterprise controlled by minority shareholders of important Shenzhen Yuepengjin E-commerce Co. Ltd.subsidiary Holding subsidiary of the parent company of the Company's Guoren Property & Casualty Insurance Co. Ltd.parent company Shenzhen SDG Huari Automobile Enterprise Co. Ltd. Other related parties 5. Information of related transactions (1) Related transactions of purchase/sales of commodities and rendering/receiving of labor services Information on purchase of commodities/receipt of labor services Unit: RMB Amount incurred Exceeding the Amount Incurred Content of related Approved Related party in the current transaction amount in the previous party transaction transaction amount period or not period Shenzhen SDG Receiving services 20270819.23 40220000.00 No 16915283.92 Service Co. Ltd.Shenzhen SDG Tellus Property Receiving services 1734135.69 1980000.00 No 2130623.04 Management Co.Ltd.Shenzhen ZHL Receiving services 841272.75 No 3023066.13 Industrial Co. Ltd.Shenzhen SDG Engineering Receiving services 775830.53 1400000.00 No 1314123.15 Management Co.Ltd.Guoren Property & Purchasing Casualty Insurance 541600.54 800000.00 No 414886.00 services Co. Ltd.Shenzhen Wahlai Purchasing Decoration & 453552.39 No services Furniture Co. Ltd.Shenzhen SDG Building Purchasing 203773.59 No Technology Co. services Ltd.Shenzhen SDG Purchasing Eastern Service 117768.00 No services Co. Ltd.Shenzhen Yuepengjin Receiving services 54091.15 No 173547.82 Jewelry Co. Ltd.Shenzhen Zhigu Procurement of Jinyun Technology 25994.42 No 56492.11 goods Co. Ltd.Shenzhen Zhigu Software usage fee No 990566.01 Jinyun Technology 208Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd.Information on selling goods and rendering labor services Unit: RMB Content of related Amount incurred in Amount Incurred in the Related party party transaction the current period previous period Shenzhen Yuepengjin E-commerce Co. Ltd. Sales of goods 83815902.66 105249451.43 Beijing Caishikou Department Store Co. Ltd. Sales of goods 5942165.99 2832890.26 Shenzhen SDG Service Co. Ltd. Provision of services 3868613.35 3251252.21 Shenzhen ZHL Industrial Co. Ltd. Provision of services 452001.02 274809.68 Shenzhen Telixing Investment Co. Ltd. Provision of services 283018.87 Shenzhen Yuepengjin Jewelry Co. Ltd. Provision of services 357459.71 368035.44 Shenzhen SDG Microfinance Co. Ltd. Provision of services 161205.25 161205.24 Shenzhen Jinliantong Digital Technology Co. Ltd. Provision of services 2615621.84 Shenzhen Zhongminglong Investment Co. Ltd. Provision of services 8490.60 Shenzhen Zhigu Jinyun Technology Co. Ltd. Provision of services 566.04 (2) Information of related lease The Company as lessor: Unit: RMB Type of assets Lease income recognized Lease income recognized Name of lessee leased in the current period in the previous period Shenzhen Renfu Tellus Automobiles Service Co.Lease of houses 5190476.19 5190476.11 Ltd.Shenzhen SDG Microfinance Co. Ltd. Lease of houses 1101847.98 1020346.44 Shenzhen Yuepengjin Jewelry Co. Ltd. Lease of houses 357182.10 1886387.76 Shenzhen SDG Service Co. Ltd. Lease of houses 153792.04 99521.16 Shenzhen SDG Tellus Property Management Co.Lease of houses 163762.85 158518.11 Ltd.Shenzhen Yongtong Xinda Testing Equipment Lease of houses 8000.00 32000.04 Co. Ltd.Safe deposit box Shenzhen Torch Spark Plug Industry Co. Ltd. 2293.58 leasing Shenzhen Zhongminglong Investment Co. Ltd. Lease of houses 52231.80 Shenzhen Zhigu Jinyun Technology Co. Ltd. Lease of houses 7428.58 (3) Remuneration of key management personnel Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Remuneration of key management 4680300.006993000.00 personnel 6. Receivables and payables by related parties (1) Receivables Unit: RMB Ending balance Beginning balance Item name Related party Provisions for Book Provisions for Book balance bad debts balance bad debts Accounts receivable Beijing Caishikou Department Store 544715.30 5447.15 656267.50 6562.68 209Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd.Accounts receivable Shenzhen SDG Service Co. Ltd. 1043536.03 10435.36 Shenzhen Jinliantong Digital Accounts receivable 246015.46 2460.15 Technology Co. Ltd.Shenzhen SDG Tellus Property Accounts receivable 127.66 1.28 Management Co. Ltd.Shenzhen SDG Microfinance Co.Accounts receivable 142112.35 1421.12 Ltd.Shenzhen Yuepengjin Jewelry Co.Accounts receivable 1401995.50 14019.96 Ltd.Guoren Property & Casualty Prepayments 162704.37 93081.75 Insurance Co. Ltd.Prepayments Shenzhen SDG Service Co. Ltd. 7200.00 ISSTech Information Technology Prepayments 593247.17 Co. Ltd.Shenzhen SDG Engineering Prepayments 21226.42 Management Co. Ltd.Shenzhen SDG Liming Other receivables 2886.00 2886.00 2886.00 2886.00 Optoelectronics (Group) Co. Ltd.Shenzhen SDG Tellus Property Other receivables 18834.77 3641.74 33318.36 1473.18 Management Co. Ltd.Shenzhen Tellus Xinyongtong Other receivables 114776.33 114776.33 114776.33 114776.33 Automobile Service Co. Ltd.Shenzhen Telixing Investment Co.Other receivables 733103.55 36057.45 259566.39 2595.66 Ltd.Shenzhen Yongtong Xinda Testing Other receivables 531882.24 531882.24 531882.24 531882.24 Equipment Co. Ltd.Shenzhen Zhigu Jinyun Technology Other receivables 50000.00 500.00 Co. Ltd.Other receivables Shenzhen ZHL Industrial Co. Ltd. 633580.65 6335.81 2607443.00 26074.43 Shenzhen Tellus Automobile Service Other receivables 1360390.00 1360390.00 1360390.00 1360390.00 Chain Co. Ltd.Shenzhen Xiandao New Materials Other receivables 660790.09 660790.09 660790.09 660790.09 Co. Ltd.Long-term Shenzhen Tellus Automobile Service 6146228.916146228.916146228.916146228.91 receivables Chain Co. Ltd. (2) Payables Unit: RMB Period-end book Period-beginning Item name Related party balance book balance Accounts payable Shenzhen Wahlai Decoration & Furniture Co. Ltd. 5371011.83 334493.34 Accounts payable Shenzhen SDG Service Co. Ltd. 3865062.67 3368791.51 Accounts payable Shenzhen SDG Engineering Management Co. Ltd. 1365692.04 79000.00 Accounts payable Shenzhen Tellus-Gmond Investment Co. Ltd. 200000.00 Accounts payable Shenzhen Zhigu Jinyun Technology Co. Ltd. 45652.00 53714.23 Shenzhen Machinery & Equipment Import & Export Accounts payable 45300.00 45300.00 Co. Ltd.Accounts payable Shenzhen Yuepengjin Jewelry Co. Ltd. 28000.00 20680.00 Accounts payable Shenzhen ZHL Industrial Co. Ltd. 669.57 212993.43 Accounts payable Shenzhen SDG Real Estate Co. Ltd. 6054855.46 Accounts payable Shenzhen SDG Tellus Property Management Co. Ltd. 336533.57 Advances from customers Shenzhen SDG Microfinance Co. Ltd. 42625.39 Advances from customers Shenzhen SDG Tellus Property Management Co. Ltd. 1243.34 Advances from customers Shenzhen Yongtong Xinda Testing Equipment Co. 68.00 210Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ltd.Advances from customers Shenzhen SDG Engineering Management Co. Ltd. 21226.42 Other payables Hongkong Yujia Investment Limited 2255339.58 2146404.58 Shenzhen Machinery & Equipment Import & Export Other payables 1575452.52 1554196.80 Co. Ltd.Other payables Shenzhen Longgang Tellus Real Estate Co. Ltd. 1095742.50 1095742.50 Other payables Shenzhen Renfu Tellus Automobiles Service Co. Ltd. 833334.00 833334.00 Other payables Shenzhen Tellus Yangchun Company 476217.49 476217.49 Other payables Shenzhen SDG Tellus Property Management Co. Ltd. 441842.84 15841.59 Other payables Shenzhen Yuepengjin Jewelry Co. Ltd. 388102.00 Other payables Shenzhen SDG Microfinance Co. Ltd. 237804.66 237804.66 Other payables Shenzhen Wahlai Decoration & Furniture Co. Ltd. 150929.85 401140.08 Other payables Shenzhen SDG Engineering Management Co. Ltd. 148302.24 149338.46 Other payables Shenzhen Torch Spark Plug Industry Co. Ltd. 143746.10 2000.00 Other payables Shenzhen SDG Service Co. Ltd. 50506.00 40992.00 Other payables Shenzhen SDG Urban Renewal Investment Co. Ltd. 28766.05 23930.50 Other payables Shenzhen Zhongminglong Investment Co. Ltd. 14100.00 Shenzhen Special Economic Zone Development Group Other payables 3000.00 3000.00 Co. Ltd.Shenzhen Shuntian Electric Vehicle Technology Other payables 2000.00 Development Co. Ltd.Other payables Shenzhen Tellus Automobile Service Chain Co. Ltd. 800.00 800.00 Shenzhen Yongtong Xinda Testing Equipment Co.Other payables 5602.99 Ltd.Other payables Shenzhen SDG Huari Automobile Enterprise Co. Ltd. 11436392.71 XV. Commitments and Contingencies 1. Important commitments Important commitments existing on the balance sheet date (1) Capital commitment As of December 31 2024 the Company had no significant capital commitments. 2. Contingencies (1) Important contingencies existing on the balance sheet date As of December 31 2024 the Company had no pending litigation external guarantees and other contingencies that should be disclosed. (2) In case of no important contingencies to be disclosed a description shall be given The Company has no important contingencies to be disclosed.XVI. Events after the Balance Sheet Date 1. Profit distribution Number of dividends per 10 shares to be distributed (RMB) 1.00 211Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Number of dividends per 10 shares declared after deliberation 1.00 and approval (RMB) According to the proposal passed in the tenth meeting of the tenth Board of Directors of the Company on March 26 2025 regarding the "Proposal on the Profit Distribution Plan for the Year 2024" the Company intends to distribute a cash dividend Profit distribution scheme of CNY 1.00 (including tax) for every 10 shares to all shareholders based on the total share capital of 431058320 shares as of December 31 2024. The total cash dividend distribution amounted to CNY43105832.00. There will be no bonus shares issued and no capital reserve converted into share capital for the current year. 2. Descriptions for other events after the balance sheet date As of March 26 2025 the Company will have no other post-balance sheet events that should be disclosed.XVII. Other Important Matters 1. Segmented information (1) Determination basis and accounting policy of reporting segments According to the Company's internal organizational structure management requirements and internal reporting system the business of the Company is divided into four reporting segments.These reporting segments are determined based on the financial information required by the Company's daily internal management. The Group's management regularly evaluates the operating results of these reporting segments to determine the allocation of resources to them and evaluate their performance.The reporting segments of the Company include: (1) Jewelry sales and services and wholesale and retail of gold and jewelry; (2) Leasing and services real estate and commercial real estate leasing; (3) Vehicle sales and 4S store-based sales of vehicles; (4) Vehicle maintenance and detection and 4S store-based detection and maintenance of vehicles; The segment reporting information is disclosed according to the accounting policy and measurement standard adopted when each segment reports to the management and the accounting policy and measurement basis are in correspondence with those of formulating financial statements. (2) Financial information of reporting segments Unit: RMB 212Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Autom Vehicle inspection Leasing and Jewelry wholesale Inter-segment Item obile maintenance and Total services and retail services offset sales testing Operating 297565080.672320842052.78-4728929.082613678204.37 revenue Operating 106803428.992273354439.85-3393568.782376764300.06 cost Total 2815496452.17540229156.29-761266370.572594459237.89 assets Total 513961364.49258257775.16-75485873.49696733266.16 liabilities XVIII. Notes to Major Items of the Parent Company’s Financial Statements 1. Accounts receivable (1) Disclosure by account receivable age Unit: RMB Account receivable age Period-end book balance Period-beginning book balance Within 1 year (inclusive) 17614712.56 22182052.01 1-2 years 2352446.33 124487.53 2 to 3 years 77741.87 Over 3 years 484803.08 488163.08 More than 5 years 484803.08 488163.08 Total 20529703.84 22794702.62 (2) Disclosure by bad debt accrual method Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Account s receivab le with 484803.484803.484803.484803. provisio 2.36% 100.00% 2.13% 100.00% 08080808 n for bad debts on a single basis Includ ing: Account 200449 330869. 197140 223098 229707. 22080197.64% 1.65% 97.87% 1.03% s 00.76 94 30.82 99.54 30 92.24 213Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. receivab le for which provisio n for bad debts is made by portfolio Includ ing: Includin g: 200449 330869. 197140 223098 229707. 220801 97.64%1.65%97.87%1.03% Ageing 00.76 94 30.82 99.54 30 92.24 portfolio 205297815673.197140227947714510.220801 Total 100.00% 3.97% 100.00% 3.13% 03.840230.8202.623892.24 Provision for bad debts made on an individual basis Unit: RMB Beginning balance Ending balance Description Book Provisions for Book Provisions for Proportion of Reasons for balance bad debts balance bad debts provision provision Long account Shenzhen Bijiashan receivable age and 172000.00172000.00172000.00172000.00100.00% Club Co. Ltd. expected to be unrecoverable Long account receivable age and Gong Yanqing 97806.64 97806.64 97806.64 97806.64 100.00% expected to be unrecoverable Long account Guangzhou Tianhe receivable age and Lemin Computer 86940.00 86940.00 86940.00 86940.00 100.00% expected to be Center unrecoverable Long account receivable age and Others 128056.44 128056.44 128056.44 128056.44 100.00% expected to be unrecoverable Total 484803.08 484803.08 484803.08 484803.08 Provision for bad debts made by portfolio: account receivable age portfolio Unit: RMB Ending balance Description Book balance Provisions for bad debts Proportion of provision Within 1 year 17437667.82 174376.68 1.00% 1-2 years 2352446.33 117622.32 5.00% 2 to 3 years 77741.87 38870.94 50.00% Over 3 years Total 19867856.02 330869.94 Whether to accrue bad debt provision of accounts receivable according to expected credit loss: □Applicable □ Not applicable Unit: RMB Provisions for bad Stage I Stage II Stage III Total debts Expected credit losses Expected credit loss Expected credit loss throughout 214Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. for the next 12 months throughout the duration (no the duration (credit impairment credit impairment occurs) has occurred) Balance on January 1 229707.30484803.08714510.38 2024 Balance on January 1 2024 in the current period Provision in the current 101162.64101162.64 period Balance as of 330869.94484803.08815673.02 December 31 2024 (3) Bad debt provision provided recovered or reversed in the current period Bad debt provision in the reporting period: Unit: RMB Beginning Amount of change during the current period Type Ending balance balance Provision Recovery or reversal Write-off Others Provisions for bad debts 714510.38 101162.64 815673.02 Total 714510.38 101162.64 815673.02 (4) Accounts receivable and contractual assets with top five ending balance collected as per the borrowers Unit: RMB Period-end Proportion in total Period-end balance of Period-end Period-end balance of ending balance of bad debt proportion of balance of balance of Company name accounts accounts receivable accounts receivable and accounts contract receivable and and contractual impairment provision receivable assets contract assets assets of contractual assets Zhongbao Jinyuan (Shenzhen) Industrial 1461484.68 1461484.68 7.12% 146148.47 Development Co. Ltd.Chow Sang Sang (China) 1320000.461320000.466.43%132000.05 Co. Ltd.Shenzhen Helin Jewelry 1192639.281192639.285.81%119263.93 Co. Ltd.Shenzhen Xinyufu 526304.98526304.982.56%52630.50 Jewelry Co. Ltd.Shenzhen Le En Ai 520147.37520147.372.53%17626.37 Jewelry Co. Ltd.Total 5020576.77 5020576.77 24.45% 467669.32 2. Other receivables Unit: RMB Item Ending balance Beginning balance Dividends receivable 1305581.86 Other receivables 2839370.67 46126945.18 Total 2839370.67 47432527.04 215Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. (1) Dividends receivable 1) Category of dividends receivable Unit: RMB Project (or the investee) Ending balance Beginning balance China Pufa Machinery Industry Co. Ltd. 1305581.86 Total 1305581.86 2) Dividends receivable of important account receivable age of over 1 year Unit: RMB Project (or the Ending original Account Reason for no Whether impairment has occurred and the basis investee) value receivable age recovery for determining impairment The company has huge losses in its financial China Pufa Machinery positions and operating conditions and the 1305581.86 2-3 years Not paid yet Industry Co. Ltd. dividends receivable may not be recovered so full impairment is accrued.Total 1305581.86 3) Classification and disclosure through the method for recognizing bad debt □Applicable □ Not applicable Unit: RMB Ending balance Beginning balance Provisions for bad Book balance Provisions for bad debts Book balance debts Type Book Book Proportio Proporti Proportion value value Amount Amount Amount Proportion Amount n of on of provision provision Provisio n for bad debts 130558 100.00 130558 100.00%0.00 made on 1.86 % 1.86 a single basis Incl uding: Incl uding: 130558100.00130558 Total 100.00% 0.00 1.86%1.86 Provision for bad debts made on an individual basis Unit: RMB Beginning balance Ending balance Description Provisions for Provisions for Proportion of Reasons for Book balance Book balance bad debts bad debts provision provision China Pufa The company's Machinery 1305581.86 1305581.86 1305581.86 100.00% financial Industry Co. position is poor 216Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Ltd.Total 1305581.86 1305581.86 1305581.86 Bad debt provision made according to the general model of expected credit loss: Unit: RMB Stage I Stage II Stage III Expected credit loss Expected credit loss Provisions for bad debts Expected credit throughout the duration throughout the duration Total losses for the (no credit impairment (credit impairment has next 12 months occurs) occurred) Balance on January 1 2024 in the current period Provision in the current period 1305581.86 1305581.86 Balance as of December 31 2024 1305581.86 1305581.86 Changes in book balance with significant amount changed of loss provision in the reporting period □Applicable □ Not applicable China Pufa Machinery Industry Co. Ltd. has huge losses in its financial position and operating conditions and the dividends receivable may not be recovered so full impairment is accrued. 4) Bad debt provision provided recovered or reversed in the current period Unit: RMB Amount of change during the current period Beginning Ending Type balance Recovery Write-off orProvision Other changes balance or reversal cancellation Provisions for bad debts 1305581.86 1305581.86 Total 1305581.86 1305581.86 (2) Other receivables 1) Classification of other receivables by nature Unit: RMB Nature of payment Period-end book balance Period-beginning book balance Other temporary payments receivable 13967525.96 15738436.97 Deposits and security deposits 1556456.36 1774070.79 Concerned intercourse funds within the 61.0042400084.74 consolidation scope of receivables Total 15524043.32 59912592.50 (2) Disclosure by account receivable age Unit: RMB Account receivable age Period-end book balance Period-beginning book balance Within 1 year (inclusive) 404467.63 43614137.53 1-2 years 2557254.64 1937642.51 2 to 3 years 1091.61 643606.04 Over 3 years 12561229.35 13717206.42 217Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 3 to 4 years 39273.66 More than 5 years 12561229.35 13677932.76 Total 15524043.23 59912592.50 3) Classification and disclosure through the method for recognizing bad debt Unit: RMB Ending balance Beginning balance Provisions for bad Provisions for bad Book balance Book balance debts debts Type Proporti Book Proporti Book Proporti on of value Proporti on of value Amount Amount Amount Amount on provisio on provisio n n Provisio n for bad debts 125115 125115 136446 136446 80.59%100.00%0.0022.77%100.00% made on 24.83 24.83 41.06 41.06 a single basis Includ ing: Provisio n for bad debts 301251173147.283937462679141006.461269 made on 19.41% 5.75% 77.23% 0.30% 8.40730.6751.442645.18 a portfolio basis Includ ing: Account receivab 145606 63267.3 139279 209379 72610.5 202118 9.38%4.35%3.49%3.47% le age 2.04 6 4.68 5.91 1 5.40 portfolio Portfolio of deposit and 155645 109880. 144657 177407 68395.7 170567 10.03%7.06%2.96%3.86% security 6.36 37 5.99 0.79 5 5.04 deposit receivab le Related intercour se funds within 424000 424000 70.77% the 84.74 84.74 consolid ation scope 155240126846283937599125137856461269 Total 100.00% 81.71% 100.00% 23.01% 43.2372.560.6792.5047.3245.18 218Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Provision for bad debts made on a portfolio basis: Unit: RMB Ending balance Description Book balance Provisions for bad debts Proportion of provision Account receivable age 1456062.0463267.364.35% portfolio Portfolio of deposit and 1556456.36109880.377.06% security deposit receivable Total 3012518.40 173147.73 Bad debt provision made according to the general model of expected credit loss: Unit: RMB Stage I Stage II Stage III Expected credit loss Expected credit loss Provisions for bad debts Expected credit losses throughout the duration throughout the duration Total for the next 12 (no credit impairment (credit impairment has months occurs) occurred) Balance on January 1 2024 141006.26 13644641.06 13785647.32 Balance on January 1 2024 in the current period Provision in the current 32141.4732141.47 period Reversal in the current 1145709.331145709.33 period Other changes 12593.10 12593.10 Balance as of December 173147.7312511524.8312684672.56 312024 Division basis at each stage and proportion of bad debt provision accrual Changes in book balance with significant amount changed of loss provision in the reporting period □ Applicable□ Not applicable 4) Bad debt provision provided recovered or reversed in the current period Bad debt provision in the reporting period: Unit: RMB Amount of change during the current period Beginning Type balance Recovery or Write-off or Ending balance Provision Others reversal cancellation Provisions for 13785647.3232141.471145709.3312593.1012684672.56 bad debts Total 13785647.32 32141.47 1145709.33 12593.10 12684672.56 5) Other receivables of the top five period-end balances by the owing party Unit: RMB Proportion to Period-end balance Ending Account Company name Nature ending balance of of provision for balance receivable age other receivables bad debts Shenzhen Zhonghao (Group) Intercourse 5000000.00 Over 3 years 32.21% 5000000.00 219Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Co. Ltd. funds Shenzhen Jinbeili Electric Intercourse 2706983.51 Over 3 years 17.44% 2706983.51 Appliance Co. Ltd. funds Shenzhen Petrochemical Group Intercourse 1927833.34 Over 3 years 12.42% 1927833.34 Co. Ltd. funds Shenzhen Jinzhou Precision Security 1515467.96 Over 3 years 9.76% 75773.40 Technology Corp. deposit Shenzhen Xiandao New Intercourse 660790.09 Over 3 years 4.26% 660790.09 Materials Co. Ltd. funds Total 11811074.90 76.09% 10371380.34 3. Long-term equity investments Unit: RMB Ending balance Beginning balance Item Provision for Provision for Book balance Book value Book balance Book value impairment impairment Investment in 715566774.411956000.00713610774.41696131539.121956000.00694175539.12 subsidiaries Investment in associates and 94878995.52 9787162.32 85091833.20 86298649.89 9787162.32 76511487.57 joint ventures Total 810445769.93 11743162.32 798702607.61 782430189.01 11743162.32 770687026.69 (1) Investment in subsidiaries Unit: RMB Period- Period- Changes in the current period Period-end Period-end beginning beginning Reduced Provision balance balance ofInvestee balance balance of Additional investment for Others (book impairment(book impairment investment s impairment value) provisionvalue) provision Shenzhen SDG Tellus 31152888. 31152888.Real Estate 87 87 Co. Ltd.Shenzhen Tellus Chuangyin 3000000.0 2473691.4 526308.52 g 0 8 Technolog y Co. Ltd.Shenzhen Tellus Xinyongto ng 2883644.2 2883644.2 Automobil 6 6 e Developme nt Co. Ltd.Shenzhen 36968052 36968052 Zhongtian 2.90 2.90 220Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Industry Co. Ltd.Shenzhen Automobil 1262510740000000.86251071. e Industry 1.570057 and Trade Co. Ltd.Shenzhen SDG Huari Automobil 61908926. 61908926.e 77 77 Enterprise Co. Ltd.Shenzhen Huari Automobil 1807411.5 1807411.5 e Sales and 2 2 Service Co. Ltd.Shenzhen Xinyongto ng Motor 4900000.04900000.0 Vehicle 00 Inspection Equipment Co. Ltd.Shenzhen Tellus Treasury 50000000. 50000000.Supply 00 00 Chain Tech Co. Ltd.Shenzhen Hanli High 1956000.01956000.0 Tech 00 Ceramics Co. Ltd.Shenzhen Jewelry 32500000.32500000. Industry 0000 Service Co. Ltd.Guorun Gold 72000000. 72000000.Shenzhen 00 00 Co. Ltd. 694175531956000.061908926.42473691.713610771956000.0 Total 9.12077484.410 (2) Investment in associates and joint ventures Unit: RMB Period Period Changes in the current period Period Period Investe - - Additi Reduc Invest Adjust Other Cash Provisi -end -end e beginn beginn onal ed ment ment equity divide on for Others balanc balanc ing ing invest invest profit to change nd or impair e e of 221Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. balanc balanc ment ments or loss other s profit ment (book impair e e of recogn compr declare value) ment (book impair ized ehensi d to be provisi value) ment throug ve distrib on provisi h the incom uted on equity e metho d I. Joint ventures Shenz hen Tellus- Gmon 49250 21965 15000 56216 d 845.0 159.2 000.0 004.2 Invest 6 0 0 6 ment Co.Ltd.Shenz hen Telixin 1330213686 g 38459 311.6903.3 Invest 1.77 07 ment Co.Ltd. 62553223491500069902 Subtot 156.6750.9000.0907.6 al 6703 II. Associates Shenz hen Renfu Tellus 13958 15188 1230 Autom 330.9 925.5 594.66 obiles 1 7 Servic e Co.Ltd.Hunan Chang yang 1810 1810 Industr 540.70 540.70 ial Co.Ltd.Shenz hen Jieche ng 3225 3225 Electro 000.00 000.00 nics Co.Ltd.Shenz hen 4751 4751 Xianda 621.62 621.62 o New 222Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Materi als Co.Ltd.Shenz hen Tellus Autom obile Servic e Chain Co.Ltd. 1395815188 Subtot 9787 1230 9787 330.9925.5 al 162.32 594.66 162.32 17 76511235801500085091 97879787 Total 487.5 345.6 000.0 833.2 162.32162.32 7300 Whether the recoverable amount is determined according to the net amount with fair value deducting disposal expenses □ Applicable□ Not applicable Whether the recoverable amount is determined according to the present value of the expected future cash flow □ Applicable□ Not applicable Reasons for the apparent inconsistency between the aforementioned information and the information or external information used in the impairment test of previous years Reasons for the apparent inconsistency between the information adopted by the Company's impairment test in previous years and the actual situation in that year 4. Operating revenue and operating cost Unit: RMB Amount incurred in the current period Amount Incurred in the previous period Item Revenue Costs Revenue Costs Main business 118323197.59 51537706.69 86993917.15 39689422.24 Total 118323197.59 51537706.69 86993917.15 39689422.24 5. Investment income Unit: RMB Item Amount incurred in the current period Amount Incurred in the previous period Income from long-term equity investments calculated by the cost 71225000.00 69369094.20 method Income from long-term equity investments calculated through the 23580345.63 19872836.15 equity method Investment income from trading 5549257.073132190.40 financial assets during the holding period Interest income from large-sum 3393388.894921596.99 certificates of deposit 223Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. Profit from re-measurement of residual equity at fair value after loss of the right 67398061.79 of control Total 103747991.59 164693779.53 XIX. Supplementary Information 1. Breakdown of non-recurring profits and losses of the current period □Applicable □ Not applicable Unit: RMB Item Amount Notes Profits and losses from disposal of non-current assets -227.20 Government subsidies included in the current gains and losses (excluding those that are closely related to the Company's normal business operations in line with national policies and regulations 6524396.47 and granted in accordance with defined criteria with a continuous influence on the Company's gains and losses) Gains or losses from changes in the fair value of financial assets and financial liabilities held by the non-financial company as well as gains or losses from the disposal of the financial assets and -10293994.77 financial liabilities except for effective hedging related to normal operations of the Company Reserves of impairment provision for account receivables individually tested for impairment 6856854.34 Other non-operating revenues and expenditures apart from the aforesaid items 1704993.23 Less: Effect on income tax -9511450.05 Effect on minority shareholders' equity (after tax) 4144488.72 Total 10158983.40 -- Specific conditions of other gains or losses conforming to the definition of non-recurring gains or losses: □ Applicable□ Not applicable The Company has no other gains or losses conforming to the definition of non-recurring gains or losses.Explanation on defining the non-recurring gains or losses set out in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to the Public — Non-Recurring Gains or Losses as recurring gains or losses ?Applicable□Not Applicable Item Amount involved(RMB) Reason Due to the price fluctuation risk related to gold effective hedging of gold futures is a means for Guorun Gold and Tellus Treasury subsidiaries of the Company to avoid relevant risks.This activity falls under normal proprietary business operations. Therefore based on the nature and characteristics of its normal business operations the Company has classified the following Effective -16490969.27 items listed in the Explanatory Announcement on Information Disclosure by Companieshedging Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) as recurring profit and loss items: effective hedging related to the normal operations of non- financial enterprises; gains and losses from changes in the fair value of financial assets and financial liabilities held; and gains and losses from the disposal of financial assets and financial liabilities.Refund of handling According to the Explanatory Announcement on Information Disclosure by Companies charges Offering Securities to the Public No. 1—Non-Recurring Profits and Losses (2023 Revision) for 73439.68 the refund of handling fees withheld for individual income tax received by the Company and individual its subsidiaries is categorized as income related to routine activities. As it is neither of a special income nature nor incidental it is classified as a recurring profit or loss item.tax 224Full Text of the 2024 Annual Report of Shenzhen Tellus Holding Co. Ltd. 2. Return on net assets and earnings per share Earnings per share Weighted average Profit during the reporting period return on net assets Basic earnings per share Diluted earnings per share (RMB/share) (RMB/share) Net profit attributed to ordinary 8.21%0.31700.3170 shareholders of the Company Net profit attributable to ordinary shareholders of the Company after 7.60%0.29340.2934 deduction of non-recurring profit or loss 3. Difference in accounting data under domestic and foreign accounting rules (1) Differences in net profits and net assets in the financial reports disclosed simultaneously according to the international accounting standards and Chinese accounting standards □ Applicable□ Not applicable (2) Differences in net profits and net assets in the financial reports disclosed simultaneously according to the foreign accounting standards and Chinese accounting standards □ Applicable□ Not applicable (3) Specify the reasons for differences in accounting data under domestic and foreign accounting standards; if the adjustment is made to data audited by the overseas audit firm specify the name of the audit firm □ Applicable□ Not applicable 225