Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.Shenzhen Tellus Holding Co. Ltd.2025 Annual Report
April 2026
1Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2025 Annual Report
Section I Important Notes Contents and Interpretations
The Board of Directors directors and senior management of the
Company are responsible for the authenticity accuracy and completeness of
the information contained in this annual report without false records
misleading statements or material omissions and assume the individual and
joint legal responsibilities for the same.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 of the Company have attended the board meeting to review
the report.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.
2Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company shall abide by the disclosure requirements of the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange
— Industrial Information Disclosure for jewelry-related business.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
1.10 (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.
3Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Table of Contents
Section I Important Notes Contents and Interpretat... 2
Section II Company Profile and Major Financial Ind... 7
Section III Management Discussion and Analysis ......11
Section IV Corporate Governance Environment and So.. 35
Section V Important Matters ........................ 55
Section VI Changes in Shares and Shareholders .......66
Section VII Bond-related Information ................72
Section VIII Financial Report .......................73
4Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Documents for Inspection
(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.
5Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Interpretations
Term Refer(s) to Interpretation
CSRC Refer(s) to China Securities Regulatory Commission
SZSE Refer(s) to Shenzhen Stock Exchange
Company the Company and Tellus
Refer(s) to Shenzhen Tellus Holding Co. Ltd.Holding
Reporting period the reporting period
Refer(s) to Year 2025
and the year
State-owned Assets Supervision and Management
Shenzhen SASAC Refer(s) to Commission of Shenzhen Municipal People's
Government
Shenzhen Special Economic Zone Development
SDG Group and controlling shareholder Refer(s) to
Group Co. Ltd.SIHC Refer(s) to Shenzhen Investment Holdings Co. Ltd.Shenzhen Jewelry SJIS Refer(s) to Shenzhen Jewelry Industry Service Co. Ltd.Guorun Guorun Gold Refer(s) to Guorun Gold Shenzhen Co. Ltd.Shenzhen Tellus Treasury Supply Chain Tech Co.Tellus Treasury Refer(s) to
Ltd.Shanghai Fanyue Refer(s) to Shanghai Fanyue Diamond Co. Ltd.Zhongtian Company Refer(s) to Shenzhen Zhongtian Industry Co. Ltd.Tellus Jewelry Refer(s) to Shenzhen Tellus Shuibei Jewelry Co. Ltd.Shenzhen SDG Huari Automobile Enterprise Co.Huari Company Refer(s) to
Ltd.Shenzhen Huari Automobile Sales and Service
Huari Sales Refer(s) to
Co. Ltd.Tellus Jewelry Building Jewelry
Refer(s) to Tellus Shuibei Jewelry Building
Building
Tellus Gold and Diamond Building
Refer(s) to Tellus Gold and Diamond Trading Building
Gold and Diamond Building
6Full Text of the 2025 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
N/A
any)
Stock exchange on which the shares are
Shenzhen Stock Exchange
listed
Chinese name of the Company Shenzhen Tellus Holding Co. Ltd.Abbreviation of Chinese name Tellus A
English name of the Company (if any) Shenzhen Tellus Holding Co. Ltd.Abbreviation of English name (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 in registered address N/A
Office address 3F and 4F Tellus Building No. 56 2nd Shuibei Road Luohu District Shenzhen
Postal code of the office address 518020
Website of the Company www.tellus.cn
E-mail ir@tellus.cn
II. Contact Information
Secretary of the Board of Directors Securities affairs representative
Name Qi Peng Liu Menglei
3F Tellus Building No. 56 2nd Shuibei 3F Tellus Building No. 56 2nd Shuibei
Mailing address
Road Luohu District Shenzhen Road Luohu 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
Shenzhen Stock Exchange (www.szse.cn)
Company to disclose the annual report
Names and websites of the media
outlets for the Company to disclose the Securities Times and CNINFO (www.cninfo.com.cn)
annual report
Location for keeping annual reports of
Secretariat Office of the Board of Directors of the Company
the Company
7Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
IV. Changes of Registration
Unified social credit code 91440300192192210U
With the strategic transformation and upgrading of the Company and the divestiture
of the automotive business starting from 2023 automobile sales testing
Change of main business after listing (if
maintenance and spare parts sales are no longer the Company's main business.any)
The main business of the Company during the reporting period included jewelry
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
Previous changes of controlling 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.shareholders (if any) 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 total
capital stock. Thus it remains the controlling shareholder of the Company.V. Other Related Information
Accounting firm engaged by the Company
Name of the accounting firm Grant Thornton Certified Public Accountants (Special General Partnership)
Office address of the accounting firm 5F 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
Does the Company need to retrospectively adjust or restate the accounting data for previous years
□Yes□No
Change over the
202520242023
previous year
Operating revenue (RMB) 1461603400.53 2613678204.37 -44.08% 1846738841.89
Net profit attributable to shareholders of the
142865677.77136629870.804.56%118255140.84
listed company (RMB)
Net profit attributable to shareholders of the
listed company after deducting non- 138403760.40 126470887.40 9.44% 90386717.21
recurring profit or loss (RMB)
Net cash flows from operating activities
327753897.88390288813.85-16.02%-60140006.46
(RMB)
Basic earnings per share (RMB/share) 0.3314 0.3170 4.54% 0.2743
Diluted earnings per share (RMB/share) 0.3314 0.3170 4.54% 0.2743
Weighted average return on net assets 8.06% 8.21% -0.15% 7.59%
8Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Change over the
End of 2025 End of 2024 end of the End of 2023
previous year
Total assets (RMB) 2650158442.53 2594459237.89 2.15% 2403851684.45
Net assets attributable to shareholders of the
1826644475.331726884629.565.78%1603905054.93
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 lowest among the Company's audited total profit net profit and net profit after deducting non-recurring gains and losses for
the reporting period was 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 in 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 in 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 328499155.40 549773474.54 288601029.54 294729741.05
Net profit attributable to shareholders of the listed
34228060.1549785369.2039586476.2819265772.14
company
Net profit attributable to shareholders of the listed
31075381.7745398019.7740174872.3021755486.56
company net of non-recurring profits and losses
Net cash flows from operating activities 87337389.41 67468942.26 16212152.12 156735414.09
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
IX. Non-recurring Profit or Loss Items and Amounts
□Applicable □ Not applicable
9Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB
Amount for Amount for Amount for
Item Note
202520242023
Profit or loss of non-current assets disposal (including the write-
-7087.09-227.2069475478.10
off part of the provision for impairment of assets)
Government subsidies included in the current profit and loss
(excluding those which are closely related to the Company's
normal business operations in line with national policies and 2258991.39 6524396.47 6476027.99
regulations and granted in accordance with defined criteria and
have a continuous influence on the Company's profit and loss)
Profit or loss from changes in the fair value of financial assets
and financial liabilities held by the Company as a non-financial
company as well as profit or loss from the disposal of the
412414.59-10293994.77-9882368.06
financial assets and financial liabilities except in effective
hedging activities related to the normal operating activities of the
Company.Reversal of impairment provision for receivables under separate
1039272.046856854.34150000.00
impairment test
Other non-operating revenue and expenses than the above items 2892647.04 1704993.23 2089529.20
Other profit or loss conforming to the definition of non-recurring
-36363757.77
profit or loss
Less: effect on income tax 1644348.45 -9511450.05 13674541.65
Effect on minority interests (after-tax) 489972.15 4144488.72 -9598055.82
Total 4461917.37 10158983.40 27868423.63 --
Specific conditions of other profits or losses conforming to the definition of non-recurring profit or loss:
□ Applicable□Not applicable
The Company has no other profits or losses conforming to the definition of non-recurring profit or loss.Explanation on defining the non-recurring profits or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public—Non-Recurring Profit or Loss as recurring profits or losses
□Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
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
Effective has classified the following items listed in the Explanatory Announcement No. 1 on
-31471401.86
hedging Information Disclosure for Companies Offering Securities to the Public—Non-Recurring
Profit or Loss (2023 Revision) as recurring profit or loss items: effective hedging related
to the normal operations of non-financial enterprises; profits or losses from changes in
the fair value of financial assets and financial liabilities held; and profits or losses from
the disposal of financial assets and financial liabilities.According to the Explanatory Announcement No. 1 on Information Disclosure for
Refund of Companies Offering Securities to the Public—Non-Recurring Profit or Loss (2023
handling fees for Revision) the refund of handling fees for individual income tax received by the
50339.52
individual Company and its subsidiaries is categorized as income related to routine activities. As it
income tax is neither of a special nature nor incidental it is classified as a recurring profit or loss
item.
10Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section III Management Discussion and Analysis
I. Main Business of the Company During the Reporting Period
The Company shall abide by the disclosure requirements of the Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — Industrial Information Disclosure for jewelry-related business.(I). Main Business of the Company During the Reporting Period
The main business of the Company during the reporting period included jewelry services
commercial complex operations and property leasing business.
1. Jewelry services. The jewelry trading segment is dedicated to establishing a digital
platform for jewelry trading. During the reporting period the platform was officially launched
with functionalities such as an online mall viewing sessions supply chain management and a
distribution system. It has established a complete closed loop for online display trading and
settlement and has been applied to manage pearl viewing sessions and the mall. The gold
business focuses on enhancing supply chain integration and service capabilities upholding
compliance efficient delivery and stable supply and offering the R&D and sales services of gold
cultural and creative products to provide customers with high-quality customized product
solutions.
2. Property platforms. The Company operates its property assets and drives the
transformation from traditional space leasing to customer-centric commercial asset operation
services thereby fully enhancing and unlocking the added value of the property brand. Amidst
industry headwinds the Company has enhanced operational quality and efficiency through
refined investment and tenant management hardware upgrades and high-quality industry events.(II) Description of the Main Business Models of the Jewelry Business
1. Sales models
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. During the reporting period the revenue composition of the jewelry
business was as follows:
Sales model Amount of operating revenue (RMB10000) Amount of operating cost (RMB 10000) Gross profit rate
Wholesale 53111.14 51033.74 3.91%
Retail sales 59138.24 56864.48 3.84%
Other services 939.50 399.27 57.50%
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Total 113188.88 108297.49 4.32%
2. Production model
At present the Company mainly adopts the entrusted processing mode for gold and its products
while diamonds and colored gemstones 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 107558.50 100.00%
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.Other jewelry and jade: The Company purchases such products from overseas jewelry and jade
suppliers.The purchase model in 2025 is as follows:
Purchase model Raw materials Unit Purchase quantity Purchase amount (RMB 10000)
Spot trading Gold KG 1384.50 104375.00
Spot trading Pearls Piece 15287.00 276.42
4. Operation of physical stores during the reporting period
Operating
S/N Name revenue
Operating
(RMB cost (RMB Address
10000)10000)
1 Guorun Direct-sales Store Atrium of Tellus Jewelry Building 2nd Shuibei Road Luohu(Tellus) on Level 1 768.22 733.68District Shenzhen
Counter of Guorun Direct-
2 sales Store (Tellus) on 5539.48 5331.50B1-046 Basement Level 1 Annex Building of Tellus Jewelry
Basement Level 1 Building 2nd Shuibei Road Luohu District Shenzhen
Side Hall of Guorun Direct-
3 sales Store (Tellus) on 46.16 44.39B1-023 Basement Level 1 Annex Building of Tellus Jewelry
Basement Level 1 Building 2nd Shuibei Road Luohu District Shenzhen
5. Online sales during the reporting period
S/N Name Operating revenue (RMB 10000) Operating cost (RMB 10000)
1 Applet mall 3792.37 3677.54
2 Tmall platform store 81.36 77.93
3 Alibaba platform stores 19673.34 18655.89
4 JD platform stores 7212.49 6946.78
5 Pinduoduo platform stores 5790.50 5629.10
6 Vipshop platform stores 57.30 55.10
7 Douyin platform stores 85.18 82.62
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8 Xiaohongshu platform stores 0.04 0.04
9 Bank of Shaoxing Mall 1.26 1.22
10 Jingya platform 16084.20 15622.58
11 Dewu platform stores 6.34 6.11
6. Inventory of jewelry business during the reporting period
As of December 31 2025 the inventory balance of the Company's jewelry business was RMB
59.6575 million of which RMB 49.1784 million was measured at fair value. This amount
represents hedged items using commodity futures contracts and T+D contracts as hedging
instruments.II. Industry Development During the Reporting Period
The Company shall abide by the disclosure requirements of the Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — 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 2025 the international landscape underwent
profound evolution. The escalation of protectionism and the restructuring of industrial chains
fundamentally altered the logic of global economic operations and exacerbated uncertainty. Amid
intertwined contradictions the global economy faced a challenging recovery. Against a backdrop
of complex and volatile international conditions China's economy in 2025 achieved steady
progress with a focus on new and high-quality development. According to data from the National
Bureau of Statistics (NBS) the total retail sales of consumer goods for the year reached RMB
50.1202 trillion representing a 3.7% increase over the previous year. Notably retail sales of gold
silver and jewelry by enterprises above a designated size amounted to RMB 373.6 billion
marking a year-on-year (YoY) growth of 12.8%.
2. Overview of the gold and jewelry industry
The industry enjoys a large market size. In 2024 China's jewelry jade and precious stones
industry recorded a market size of approximately RMB 778.8 billion. The industry demonstrated
strong resilience and played a vital supporting role in the national economy and consumption
upgrading.Rising gold prices have driven shifts in the consumption structure. Driven by factors
including geopolitical conflicts and global economic volatility the international gold price
capitalizing on gold's safe-haven investment appeal climbed steadily from approximately USD
2600 per ounce at the beginning of 2025 to over USD 4300 per ounce by year-end. According to
13Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
statistics from the China Gold Association China's gold jewelry consumption in 2025 was 364
tons representing a YoY decrease of 31.61%. In contrast consumption of gold bars and coins
reached 504 tons a YoY increase of 35.14% surpassing gold jewelry consumption for the first
time.The new gold tax policy has catalyzed industry transformation. On October 29 2025 the
Ministry of Finance (MOF) and the State Taxation Administration (STA) jointly issued the
Announcement on Gold-related Tax Policies and the STA simultaneously issued the
Announcement on Gold-related Tax Collection and Management Matters. The new policy for the
first time strictly categorizes gold transactions into investment and non-investment purposes
aiming to steer the market towards greater standardization and transparency. The industry is
adapting to these regulatory adjustments and market uncertainty is anticipated to persist.The efficiency in upstream jewelry element circulation is low. 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.The competition within the industry is becoming increasingly fierce. 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 issues like 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.The market performance across jewelry categories is divergent. Natural diamond-set jewelry
as a discretionary consumer product faces weak demand and slow recovery while lab-grown
diamonds 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.Consumer purchase scenarios are shifting. 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
14Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 supports 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
According to data from the China Index Academy in 2025 the national investment in
commercial and office property development amounted to RMB 915 billion representing a YoY
decrease of 17.3%; the new construction area was 52.76 million square meters a YoY decrease of
23.1%. In 2025 the Grade A office market in Shenzhen was characterized by oversupply
declining rents and persistently high vacancy rates with performance varying across different
regions and market segments. In the era of stock assets the commercial real estate competition
has shifted from space leasing to value-driven operations. Operators must prioritize upgrading
service systems and fostering industrial ecosystems.Through proactive adjustments to market strategies optimization and enhancement of
property hardware and software services and intensified marketing efforts the Company has
attracted more tenants and maintained a favorable occupancy rate.
15Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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. Within an area of approximately
one square kilometer in Shuibei nearly 9000 corporate entities have clustered employing about
70000 people in the vicinity. The area hosts over 20 specialized markets. The processing volumes
of gold and diamonds account for approximately 70% and 80% of the delivery volume of the
Shanghai Gold Exchange and the Shanghai Diamond Exchange respectively. In terms of brand
concentration Luohu District is home to over 40 leading jewelry enterprises and 29 "China
Famous Trademarks" in the jewelry sector accounting for 30% of the national total. The district
has also successfully supported the stock exchange listings of jewelry companies including Chow
Tai Seng DR Group Hipine and ZHOU LIU FU. 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.Shuibei enjoys an advantageous location. The concentration of numerous businesses within
the jewelry industry chain 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. The government's strong support
for the jewelry industry provides substantial backing for the Company helping reduce operating
costs enhance profitability and achieve sustainable development.(II) Resource Advantage
By leveraging its SOE 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 connections and cooperative relationships with Chinese and international gold
and jewelry suppliers and processors.Through years of dedicated efforts the Company has accumulated significant industry
resources and influence. It maintains close collaborations with authoritative testing and appraisal
institutions in the industry such as the National Gemstone Testing Center National Center of
Quality Supervision and Inspection on Gold and Silver Jewelry (Nanjing) National Center of
Quality Supervision and Inspection on Gold and Silver Jewelry (Tianjin) and HJTC actively
participates in and organizes industry activities and sets industry standards to continuously
expand its industry reputation and impact. The Company has deeply embedded itself in the supply
16Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
chain business to offer professional full-industry supply chain services and has cooperated with
renowned jewelry enterprises in the industry to further expand its business scale.The Company's property platforms have brought stable business revenue and cash flow
laying a solid foundation for its long-term development. The Tellus Jewelry Building and the
Tellus Gold and Diamond Building have been successively put into operation. Additionally the
Company holds property assets in areas such as the Luohu and Futian districts in Shenzhen all of
which maintain 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. It has improved 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
micro- small- and medium-sized enterprises (MSMEs) within the sector.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 terms of internal management the Company has regarded scientific management as the
driving force and safeguard for development. Aligned with its current development stage the
Company has deepened the application of OKR management tools enhanced work planning and
execution reinforced performance and strategic orientation strengthened the strategic
management system and improved the closed-loop management mechanism.In terms of talent development the Company has focused on recruiting for key positions
enhanced the performance and incentive system fostered an entrepreneurial and proactive culture
strengthened team building optimized the organizational structure of core business units
conducted tiered and specialized training programs embedded a culture of dedication encouraged
17Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
employees to pursue professional certifications independently and further developed a talent
pipeline to support its business strategy.IV. Analysis of Main Business
1. Overview
In 2025 the Company achieved operating revenue of RMB 1.4616 billion representing a
YoY decrease of 44.08%. The primary reason for this change in revenue was the Company's
proactive adjustment of its gold business model. The same year the Company recorded a total
profit of RMB 175.06 million and a net profit attributable to the parent company of RMB 142.87
million an increase of RMB 6.24 million compared to 2024. The main drivers of the profit
increase included higher profits from the commercial operations segment and increased
investment income from equity-accounted investees. As of December 31 2025 the Company's
total assets amounted to RMB 2650.16 million.The business model of the jewelry industry segment continues to undergo optimization and
adjustment. The jewelry trading segment is accelerating its digital transformation to build an
integrated business ecosystem. The digital platform has taken initial shape and is now officially
operational. It integrates functionalities such as an online mall viewing sessions supply chain
management and a distribution system. It has established a complete closed loop for online
display trading and settlement and has been applied to manage black pearl viewing sessions and
the African jadeite mall. The platform has onboarded multiple suppliers and registered over 200
users. The Company has established Shuibei's first professional market for African jadeite
introduced upstream suppliers and piloted the digital platform. Innovative models such as self-
managed inventories private channel integration and traveling exhibitions have been
implemented to accumulate practical experience for multi-category operations. In response to the
new gold tax policy and market dynamics the Company has optimized its business model to
focus on the R&D and sales of gold cultural and creative products providing customers with
high-quality customized solutions. It has ranked 80th on the 2025 China Top 100 Industrial
Digitalization List.The Company's property platform enhances operational quality and efficiency solidifying
the foundation for development. In addition the Company has launched the Online Shuibei
project to develop a comprehensive service platform that integrates leasing management payment
and maintenance services merchant navigation event promotion and business recommendations
to enhance customer service quality. The jewelry commercial complex has achieved impressive
results in investment attraction and made breakthroughs in operational efforts driving overall
18Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
business value growth. The Company has organized nine events including the Cultural Expo and
the Tellus Jewelry Industry Carnival and connected with e-commerce channels such as Dewu and
Pinduoduo to expand online channels for merchants. The Tellus Jewelry Cultural Industrial Park
was ranked 11th in China's Top 100 Comprehensive Commodity Markets. Traditional property
operations have advanced the upgrade of project formats with the overall occupancy rate
expected to remain favorable in 2025.The Company has systematically advanced internal management efforts and strengthened
organizational support. It has optimized the strategic management system enhanced strategic
management effectiveness advanced the strategic 4S management system and deepened the
application of OKR management tools to ensure work tasks are traceable. Additionally it has
innovatively implemented an integrated "assess train and apply" program for middle and senior
management enabling the visualization and benchmarking of management capabilities. It has also
fostered an entrepreneurial and proactive culture organized thematic seminars collaborated with
frontline teams to identify exemplary practices and created a culture wall creating an
environment of benchmarking and striving for excellence to drive business growth through
cultural empowerment.The Company has strengthened Party-building leadership to consolidate the foundation for
development. Throughout the year the Company's Party Committee conducted 47 study sessions
on the top-of-the-agenda topics and 11 theoretical study center group discussions. The Party
Committee leadership took the lead in authoring five research reports effectively internalizing
and implementing the Party's innovative theories. The Company has thoroughly implemented the
guiding principles of the Fourth Plenary Session of the 20th CPC Central Committee focusing
efforts on key projects. This has facilitated the turnaround of the Tellus Home Furnishing Gallery
and the successful implementation and effectiveness of Guorun's live streaming. It has continued
to foster the entrepreneurial and proactive culture and issued the third set of 10 convention articles
after three rounds of refinement effectively translating the strengths of Party building into
tangible outcomes for integrated development.
2. Revenues and costs
(1) Operating revenue composition
Unit: RMB
20252024
YoY
Proportion in Proportion in
Amount Amount increase/decrease
operating revenue operating revenue
Total operating 1461603400.53 100% 2613678204.37 100% -44.08%
19Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
revenue
By industry
Jewelry sales and
1131888850.1177.44%2320842052.7888.80%-51.23%
services
Leasing and
329714550.4222.56%292836151.5911.20%12.59%
services
By product
Jewelry sales and
1131888850.1177.44%2320842052.7888.80%-51.23%
services
Leasing and
329714550.4222.56%292836151.5911.20%12.59%
services
By region
South China 943760912.51 64.57% 1971504250.32 75.43% -52.13%
East China 173615831.08 11.88% 241495799.74 9.24% -28.11%
North China 77242667.32 5.28% 260881606.21 9.98% -70.39%
Central China 243245121.80 16.64% 121099408.56 4.63% 100.86%
Other regions 23738867.82 1.62% 18697139.54 0.72% 26.97%
By sales model
Direct sales 1461603400.53 100.00% 2613678204.37 100.00% -44.08%
(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
YoY YoY YoY
Gross increase/decrea increase/decreas increase/decrea
Operating revenue Operating cost
profit rate se in operating e in operating se in gross
revenue costs margin
By industry
Jewelry sales and
1131888850.111083515862.784.27%-51.23%-52.34%2.23%
services
Leasing and
329714550.42128520785.8961.02%12.59%24.28%-3.67%
services
By product
Jewelry sales and
1131888850.111083515862.784.27%-51.23%-52.34%2.23%
services
Leasing and
329714550.42128520785.8961.02%12.59%24.28%-3.67%
services
By region
South China 943760912.51 714612561.75 24.28% -52.13% -59.01% 12.71%
East China 173615831.08 166772471.71 3.94% -28.11% -29.95% 2.53%
North China 77242667.32 74225466.43 3.91% -70.39% -71.16% 2.55%
Central China 243245121.80 233662659.62 3.94% 100.86% 95.46% 2.66%
Other regions 23738867.82 22763489.16 4.11% 26.97% 23.50% 2.69%
By sales model
Direct sales 1461603400.53 1212036648.67 17.07% -44.08% -49.00% 8.01%
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
20Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(3) Whether the Company's physical product sales revenue is greater than the service revenue
□Yes □ No
YoY
Industry Item Unit 2025 2024
increase/decrease
Sales volume KG 1561.66 4597.35 -66.03%
Wholesale and
Production KG 1498.59 4137.93 -63.78%
retail of gold
Inventory KG 53.98 231.14 -76.65%
Sales volume Piece 2641.00
Wholesale and
Inventory Piece 12646.00
retail of pearls
Purchase quantity Piece 15287.00
Explanation of the causes of over 30% changes in the related data
□Applicable □ Not applicable
During the reporting period the Company proactively adjusted its gold business model in response to the latest
industry policies and market conditions resulting in a reduction in business scale and transaction volume.
(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
20252024
YoY
Industry Item Proportion Proportion in increase/
Amount in operating Amount operating decrease
costs costs
Jewelry sales and Retail and wholesale of
1083515862.7889.40%2273354439.8595.65%-52.34%
services jewelry
Leasing and Leasing property
128520785.8910.60%103409860.214.35%24.28%
services management and others
Unit: RMB
2025 2024 YoY
Product Item Proportion in Proportion in increase/
Amount Amount
operating costs operating costs decrease
Jewelry sales and Retail and wholesale
1083515862.7889.40%2273354439.8595.65%-52.34%
services of jewelry
Leasing property
Leasing and
management and 128520785.89 10.60% 103409860.21 4.35% 24.28%
services
others
(6) Whether the consolidation scope changed during the reporting period
□Yes □ No
21Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Company name Time of cancellation
Shenzhen Huari Anxin Automobile Inspection Co. Ltd. December 18 2025
(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 amount from the top 5 customers (RMB) 416005660.48
Proportion of the total sales amount from the top 5 customers in
28.46%
the total annual sales amount
Proportion of the sales amount from the related parties among
0.00%
the top 5 customers in the total annual sales amount
Information on the top 5 customers of the Company
Proportion in total annual sales
S/N Customer name Sales revenue (RMB)
amount
1 Customer 1 181156739.05 12.39%
2 Customer 2 94969344.74 6.50%
3 Customer 3 62694966.06 4.29%
4 Customer 4 50715539.84 3.47%
5 Customer 5 26469070.79 1.81%
Total -- 416005660.48 28.46%
Other information of key customers
□ Applicable□Not applicable
Main suppliers of the Company
Total purchase amount attributable to the top 5 suppliers (RMB) 1125996365.70
Proportion of the total purchase amount of the top 5 suppliers in
94.87%
the total annual purchase amount
Proportion of the purchase amount of the related parties among
1.84%
the top 5 suppliers in the total annual purchase 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 1048591088.41 88.34%
2 Supplier 2 34861265.38 2.94%
3 Supplier 3 21849017.09 1.84%
4 Supplier 4 10680732.09 0.90%
5 Supplier 5 10014262.73 0.84%
Total -- 1125996365.70 94.87%
Other information of main suppliers
□Applicable □ Not applicable
22Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
During the reporting period the supplier accounting for more than 50% of the Company’s total annual purchase amount was the
Shanghai Gold Exchange.During the reporting period revenue from the Company's trade business accounted for over 10% of its operating revenue.□ Applicable□Not applicable
3. Expenses
Unit: RMB
Explanation on major
2025 2024 YoY increase/decrease
changes
Selling expenses 15669036.29 22232680.89 -29.52%
Administrative
58791177.3551362592.4514.46%
expenses
Financial expenses 4483061.95 6389014.69 -29.83%
R&D expenses 3098228.24 3268819.88 -5.22%
4. Investment in R&D
□Applicable □ Not applicable
Expected impact on the
Name of major R&D Objectives to be
Project purpose Project progress future development of
project achieved
the Company
Strengthen the
Develop a mall merchandise platform's fund
R&D of the Shenzhen Enhance the efficiency
sales system to achieve management
Jewelry Mall and data accuracy of
automated clearing and Completed capabilities to support
Settlement and Ledger mall settlement
online management of the scalable
System processing.transaction funds. development of the
mall business.Establish a unified Achieve systematic
merchandise management standardized and Enhance supply chain
R&D of a Merchandise
system to provide suppliers online management of collaboration and
Management SaaS Completed
with online management business processes promote digital
Service System
capabilities for inventory and related to merchandise business operations.transactions. management.Enable product
Establish a distribution store Expand the platform's
R&D of the Jewelry distribution capabilities
system and framework to sales scale and
Department Mall Completed for the mall and
expand the mall's distribution strengthen business
Distribution System implement a multi-
sales channels. growth capabilities.channel sales model.Develop a digital
Establish a unified
Develop a comprehensive operations platform for
online entry point for
R&D of the "Online service portal system for the Under the business district to
both merchant and
Shuibei" System Shuibei business district to development enhance industrial
consumer (C-end)
enhance service capabilities. service capabilities and
services.brand influence.R&D personnel of the Company
2025 2024 Change proportion
Number of R&D personnel (person) 12 11 9.09%
Proportion of R&D personnel in all employees 6.70% 6.88% -0.18%
23Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Educational background structure of R&D personnel
Bachelor's degree 10 8 25.00%
Master's degree 2 2 0.00%
Junior college diploma 0 1 -100.00%
Age composition of R&D personnel
Under 30 5 3 66.67%
30–4068-25.00%
Over 40 1 0
R&D investment of the Company
2025 2024 Change proportion
R&D investment amount (RMB) 3098228.24 3268819.88 -5.22%
Proportion of investment in R&D in operating revenue 0.21% 0.13% 0.08%
Capitalized R&D investment amount (RMB) 0.00 0.00
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 YoY changes in the proportion of the total R&D investment in operating revenue
□ Applicable□Not applicable
Causes for and explanation on rationality of a significant change in capitalization rate of R&D investment
□ Applicable□Not applicable
5. Cash flow
Unit: RMB
Item 2025 2024 YoY increase/decrease
Subtotal of cash inflows from operating activities 2054516364.79 4662567599.79 -55.94%
Subtotal of cash outflows from operating activities 1726762466.91 4272278785.94 -59.58%
Net cash flows from operating activities 327753897.88 390288813.85 -16.02%
Subtotal of cash inflows from investing activities 962931038.24 841818290.07 14.39%
Subtotal of cash outflows from investing activities 1345543382.30 1034454292.10 30.07%
Net cash flows from investing activities -382612344.06 -192636002.03 -98.62%
Subtotal of cash inflows from financing activities 64500000.00 415000000.00 -84.46%
Subtotal of cash outflows from financing activities 232536941.92 471600230.88 -50.69%
Net cash flows from financing activities -168036941.92 -56600230.88 -196.88%
Net increase in cash and cash equivalents -222895388.10 141052580.94 -258.02%
Explanation of main influence factors for YoY major changes in related data
□Applicable □ Not applicable
Unit: RMB
Item 2025 2024 YoYincrease/decrease Note
Subtotal of cash inflows 2054516364.79 4662567599.79 -55.94%Decrease in the gold business scale during thefrom operating activities reporting period
Subtotal of cash outflows 1726762466.91 4272278785.94 -59.58%Decrease in the gold business scale during the
24Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
from operating activities reporting period
Net cash flows from
operating activities 327753897.88 390288813.85 -16.02%
Subtotal of cash inflows
from investing activities 962931038.24 841818290.07 14.39%
Subtotal of cash outflows Primarily due to a YoY increase in the
from investing activities 1345543382.30 1034454292.10 30.07%purchase of financial products during thisreporting period.Net cash flows from Primarily due to a YoY increase in the
investing activities -382612344.06 -192636002.03 -98.62%purchase of financial products during thisreporting period.Subtotal of cash inflows 64500000.00 415000000.00 -84.46%Decrease in gold business loans during thefrom financing activities reporting period
Subtotal of cash outflows Decrease in the repayment of gold business
from financing activities 232536941.92 471600230.88 -50.69%loans during the reporting period
Net cash flows from Repayment of borrowings related to the gold
financing activities -168036941.92 -56600230.88 -196.88%business during the reporting period; decreasein borrowing balances
Primarily due to first a YoY increase in the
Net increase in cash and purchase of financial products during this
cash equivalents -222895388.10 141052580.94 -258.02%reporting period and second the repayment ofgold business borrowings during this reporting
period.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
Unit: RMB
Proportion Sustainable
Amount Explanation
in total profit or not
Income from Wealth management income and income recognized from
17211942.15 9.83% No
investment equity method investment in joint-stock enterprises
Profits or losses of Primarily income from changes in fair value of hedging
-2732268.58 -1.56% No
changes in fair value instruments
Asset impairment -84463.30 -0.05% Impairment losses on assets such as inventory No
Non-operating Primarily from litigation income and the forfeiture of
13030508.37 7.44% No
revenue customer deposits in accordance with contracts
Non-operating
10137861.33 5.79% Primarily the estimated loss from contingencies No
expenditure
VI. Analysis of Assets and Liabilities
1. Major changes in asset composition
Unit: RMB
End of 2025 Early 2025 Proportion Explanation
Proportion in Proportion in increase/decrea on major
Amount Amount
total assets total assets se changes
Cash at bank and on
149229156.855.63%377971359.6914.57%-8.94%
hand
25Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Accounts receivable 61009891.79 2.30% 46564067.14 1.79% 0.51%
Inventories 59657540.72 2.25% 127432191.55 4.91% -2.66%
Investment
1053907083.6539.77%1099772133.1042.39%-2.62%
properties
Long-term equity
94475900.973.56%85091833.203.28%0.28%
investments
Fixed assets 61870381.34 2.33% 70763683.25 2.73% -0.40%
Construction in
5111882.700.19%3332141.190.13%0.06%
progress
Right-of-use assets 77920830.56 2.94% 78558005.50 3.03% -0.09%
Short-term
11002344.410.42%120101444.434.63%-4.21%
borrowings
Contract liabilities 3604150.70 0.14% 4009504.59 0.15% -0.01%
Lease liabilities 75441810.38 2.85% 76541985.55 2.95% -0.10%
High proportion of overseas assets
□ Applicable□Not applicable
2. Assets and liabilities at fair value
□Applicable □ Not applicable
Unit: RMB
Accumula
Current Impairmen
ted Purchase
profits and t accrued Sales amount
Beginning change in amount in Other Ending
Item losses from in the in the current
balance fair value the current changes balance
changes in current period
included period
fair value period
in equity
Financial assets
1. Held-for-
trading financial
assets 165630834.0 - 71120000 758442473. 1174106
(excluding 6 977729.35 0.00 06 31.65
derivative
financial assets)
2. Derivative -
292078.00
financial assets 292078.00
3. Other debt 56488068 75755383.6 5738494
84724128.76
investments 2.27 3 27.40
-
Subtotal of 250647040.8 1276080 834197856. 6912600
1269807.3
financial assets 2 682.27 69 59.05
5
114856873.11618478.811546881221985124917844
Hedged items
57211.971.722.27
Total of the 365503913.9 2430768 205618297 7404385
348671.52
above 7 894.24 8.41 01.32
-
Financial 62799920 62799920.0 2702318
46660.002655658.1
liabilities .00 0 .10
0
Other changes
26Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Whether major changes occur to the measurement attributes of the main assets of the Company within the reporting period
□Yes□No
3. Restriction on asset rights as at the end of the reporting period
Unit: RMB
Item Ending balance
Security deposits and interest for notes payable 42100334.71
Futures and options account margin 28748241.60
Gold leasing security deposits and interests 0.01
Total 70848576.32
VII. Analysis of Investment
1. Overview
□Applicable □ Not applicable
Investment in the same period of the
Investment in the reporting period (RMB) Change
previous year (RMB)
5187506.7220337984.62-74.49%
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
Initial Current Accumulated Purchased Selling Proportion of the
Type of investment in Beginning Ending
investment profits and change in fair amount amount during investment
27Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
derivatives amount amount losses from value during the the reporting amount amount in net
changes in included in reporting period assets of the
fair value equity period Company at the
end of the
reporting period
Futures (Huatai
10501387.78-314.82028832.9427447.152773.571.39%
account)
Futures (CITIC
290.60429.86-4.4904802.685132.29100.250.05%
account)
Futures (CITIC
57.20466.212.1500466.2100.00%
account)
Total 1397.80 2283.85 -317.16 0 33635.62 33045.65 2873.82 1.44%
Accounting policies and specific
principles of accounting for
hedging business during the
reporting period and whether there No
was any significant change in them
compared to the previous reporting
period
Explanation of actual profits and During the reporting period the futures account incurred an actual hedging loss of RMB 30.1312
losses during the reporting period million.Measurement method of hedge effectiveness: Hedge effectiveness = Change in futures price /
Change in spot price. A value closer to 100% indicates a higher level of hedge effectiveness.Explanation of hedging
According to the Accounting Standards for Business Enterprises of China a hedge is considered
effectiveness
highly effective when its effectiveness ranges from 80% to 125%. The Company's hedge
effectiveness falls in this range indicating that its hedging strategy is highly effective.Source of funds for investment in
Owned funds
derivatives
The Company's hedging transactions align with 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 in which the futures
position is held corresponds to the time in which the risk is borne by the spot market. The main risks
of gold futures positions include: basis risk forced liquidation risk and operational error risk. To
Risk analysis and control measures
manage basis risk the Company utilizes leased gold as inventory when the basis is narrowed and
for positions in derivatives during
builds less or no self-owned inventory. For forced liquidation risk the Company establishes risk
the reporting period (including but
early warnings and advance funding plans to maintain sufficient margins if gold prices fluctuate
not limited to market risks
violently. In case of forced liquidation emergencies Management is notified immediately and
liquidity risks credit risks
hedging positions are replenished in a timely manner. To control operational error risk the
operational risks and legal risks)
Company implements a trader training program ensures trading and reviews adhere to system and
workflow requirements and requires 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
During the reporting period the fair value change of the futures contracts held for hedging purposes
the reporting period the analysis of
was RMB -3.1716 million. The Company determined the fair value using the closing price of the
derivative fair value shall disclose
futures contracts held on the Shanghai Gold Exchange on the last trading day of December 2025
the specific valuation methods used
(December 31) with the floating gain and loss representing the change in fair value.
and related hypotheses and
parameter settings.Involvement in litigation (if
N/A
applicable)
Disclosure date of the
announcement of the Board of
January 9 2025 and May 23 2025
Directors for derivative investment
approval (if any)
28Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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.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 that have an impact on the Company's net profit of 10% or more
Unit: RMB
Company Registered Total Net Operating Operating Net
Company name Main business
type capital assets assets revenue profit profit
Jewelry fair planning
Shenzhen jewelry consignment
Jewelry Industry sales exhibition and 10000000 61630 37045 5167193 388657.7 388600
Subsidiary
Service Co. display planning 0 750.04 863.86 .01 4 .54
Ltd. conference services
and marketing planning
Sales of gold bars for
Guorun Gold investment gold 39402 - -
200000001901081122932
Shenzhen Co. Subsidiary recycling and gold 6710.5 8710738. 79549
0263.70615.31
Ltd. refining/exchange 5 36 96.67
services
Purchase sales and
Shenzhen Tellus
leasing of gold
Treasury Supply 51932 49838 4059521 2587617. 25876
Subsidiary ornaments and precious 50000000
Chain Tech Co. 321.92 476.54 .97 85 19.10
metal products and
Ltd.warehousing services
Shanghai
Fanyue Diamond purchase and 36404 35051 12598.Subsidiary 3500000 0.00 12598.49
Diamond Co. sales 92.20 68.39 49
Ltd.Shenzhen Tellus 18397
1470183089917309521121041
Shuibei Jewelry Subsidiary Property leasing 18960000 6775.4
823.994.935.45659.75
Co. Ltd. 3
Shenzhen
57921
Zhongtian 36622190 479394 1518351 1022853 79476
Subsidiary Property leasing 9141.0
Industry Co. 0 467.26 53.70 73.28 614.39
Ltd.Shenzhen Huari 13379 - 84005.Subsidiary Automobile sales 2000000 0.00 72572.94
Automobile 86.80 93152 24
29Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Sales and 41.80
Service Co.Ltd.Shenzhen
Xinyongtong
Motor Vehicle 17550 10927 6707714 4103114. 30661
Subsidiary Property leasing 9607800
Inspection 272.74 158.16 .18 93 76.44
Equipment Co.Ltd.Shenzhen Tellus
Jewelry
996257618410524703744566.31599
Technology Subsidiary Property leasing 32900000
893.11011.493.886510.12
Development
Co. Ltd.Shenzhen Tellus
Chuangying 30280 19966 36776.Subsidiary Property leasing 1500000 0.00 37117.66
Technology Co. 27.67 31.01 95
Ltd.Shenzhen
Investment in industrial 33130
Tellus-Gmond Joint-stock 124654 1377423 7012991 52222
development and 53704960 1246.5
Investment Co. company 999.36 96.17 8.13 990.84
property leasing 5
Ltd.Shenzhen SDG
Huari
USD 26375 21474 9597100 4118095. 44905
Automobile Subsidiary Property leasing
4000000314.75932.92.339754.22
Enterprise Co.Ltd.Acquisition and disposal of subsidiaries during the reporting period
□Applicable □ Not applicable
Method for acquisition and disposal of Impact on the overall production
Company name
subsidiaries during the reporting period operation and performance
It was part of the Company's automobile
Shenzhen Huari Anxin Automobile maintenance and testing segment
Liquidation and cancellation
Inspection Co. Ltd. recording a net profit of RMB -26200 in
2025.
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. 2026 marks the inaugural year of the 15th Five-Year Plan and is a pivotal year
for Tellus to explore and optimize its transformation framework and achieve breakthroughs in its
30Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
transition. The Company will actively drive business innovation focusing on deepening its core
operations and leveraging management enhancement to continuously strengthen its innovative
capacity influence and risk resilience thereby fostering high-quality development.(II) Business Plan for 2026
1. The Company will strengthen the foundation for development and enhance Party
leadership. Guided by the "Party leadership + jewelry industry ecosystem platform + N" brand-
building initiative it will deepen project-focused campaigns; encourage Party members to engage
at the grassroots level to address pressing challenges; and leverage the Shuibei Industrial Virtual
Park Party Committee to foster collaborative partnerships and drive business growth.
2. For the jewelry trading segment the Company will deepen engagement in factor
transactions reinforce the platform's digital infrastructure accelerate breakthroughs in product
categories and establish trade channels linking overseas upstream resources with domestic
wholesale distributors. By building efficient operational mechanisms it will continuously
enhance management effectiveness. For the gold segment it will intensify the R&D and sales of
gold cultural and creative products advance business exploration under the new gold tax policy
proactively seize market opportunities and strategize for long-term development.
3. For the property platform the Company will enhance its quality and efficiency by
optimizing spatial functions upgrading the service ecosystem and innovating operational
mechanisms. It will launch the "Online Shuibei" mini-program to deepen customer demand
analysis optimize the commercial layout advance homestay operations and establish a
benchmark for quality improvement. By fostering a learning-oriented and driven team it will
inject sustained momentum for long-term development.
4. The Company will systematically deepen its strategic management system completing the
top-level design of its strategic plan based on the 15th Five-Year Plan. It will build consensus
through annual strategic seminars refine mechanisms for dynamic review and agile iteration of
strategy execution continuously promote closed-loop strategic management and enable effective
translation from planning to implementation.
5. The Company will systematically advance its organizational capabilities and culture
building while deepening contract-based management for managerial personnel. It aims to refine
the key talent development system covering everyone from new hires to middle management and
further optimize performance appraisal and incentive mechanisms for front-line staff.Additionally the Company will drive the upgrading of corporate culture iterate the conventions
of strivers and leverage the guiding role of its corporate values.
31Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
6. The Company will deepen the comprehensive integration of AI technology with core
business processes accelerate the adoption of intelligent tools in key scenarios and systematically
enhance operational efficiency. It will comprehensively promote the integration of business and
finance enabling key processes such as automated allocation of rental income and the launch of
an electronic receipt system while strengthening tax planning capabilities to continuously drive
cost reduction and efficiency improvement.
7. The Company will rigorously strengthen work safety fully deploy AI-powered intelligent
monitoring and early warning systems to leverage technological advantages in risk prevention and
control. By engaging third-party safety inspection services it will enhance the professionalism of
hazard identification and fortify our safety protection network.(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.
1. Risk 1: Market price fluctuations
The Company's jewelry business mainly uses gold and jewelry as raw materials. In recent
years fluctuations in international and domestic economic conditions new gold tax policies 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: Team development falls short of strategic transformation requirements
The Company's management team and workforce still lag behind the demanding requirements
of the 15th Five-Year Plan in terms of industry experience professional competencies
management awareness and methodologies.Countermeasures: First the Company will continue to strengthen the culture of striving and
foster the mutual growth of employees and the Company. Second it will enhance the
development of talent pipelines continuously improving team management capabilities and
business support functions. Third it will optimize system development to drive the ongoing
refinement of our governance framework. Fourth it will remain committed to learning from best
practices and continuously benchmarking against industry leaders.
32Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
XII. Reception of Investigation Communication Interview and Other Activities during the
Reporting Period
□Applicable □ Not applicable
Index of
Reception Way of Type of Main points talked about and general
Reception date Visitor
place reception visitor information provided investigation
information
Telephone Inquiry about whether the Company
January 16 2025 Company Individual Investor N/A
communication issues a performance forecast
Telephone Inquiry about the Company's business
February 19 2025 Company Individual Investor N/A
communication operations
Telephone Inquiry about the Company's ESG
February 24 2025 Company Individual Investor N/A
communication reporting progress
Telephone Inquiry about the Company's annual
March 19 2025 Company Individual Investor N/A
communication report disclosure timeline
Telephone Inquiry about the Company's Q1
April 14 2025 Company Individual Investor N/A
communication business performance
Telephone Inquiry about the Company's business
May 16 2025 Company Individual Investor N/A
communication situation
Telephone Inquiry about the Company's business
May 22 2025 Company Individual Investor N/A
communication operations and share prices
Telephone Inquiry about the Company's business
June 24 2025 Company Individual Investor N/A
communication situation
Telephone Inquiry about whether the Company
July 10 2025 Company Individual Investor N/A
communication issues a performance forecast
Telephone Inquiry about the Company's
July 28 2025 Company Individual Investor N/A
communication performance in H1
Telephone Inquiry about the Company's
August 19 2025 Company Individual Investor N/A
communication performance in H1
Inquiry about whether the Company
Telephone
September 2 2025 Company Individual Investor holds a semi-annual performance N/A
communication
briefing
September 24 Telephone Inquiry about the Company's ESG
Company Individual Investor N/A
2025 communication reporting progress
Telephone Inquiry about the Company's
October 16 2025 Company Individual Investor N/A
communication performance in the first three quarters
November 13 Telephone Inquiry about the Company's business
Company Individual Investor N/A
2025 communication situation
December 19 Telephone Inquiry about the Company's annual
Company Individual Investor N/A
2025 communication performance in 2025
December 29 Telephone Inquiry about whether the Company
Company Individual Investor N/A
2025 communication issues a performance forecast
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
33Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section IV Corporate Governance Environment and Society
I. Basic Information on Corporate Governance
During the reporting period the Company continuously optimized its corporate governance
structure and refined and effectively implemented the internal control system in strict accordance
with the Company Law the Securities Law the Stock Listing Rules of the Shenzhen Stock Exchange
the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange —
Standard Operation of Listed Companies on the Main Board and other laws and regulations.During the reporting period the Company operated in a standardized independent and
comprehensive manner and ensured truthful accurate complete and timely information disclosure.Its corporate governance practices and actual conditions complied with the regulatory requirements
for listed company governance set forth by the CSRC and the Shenzhen Stock Exchange. The main
aspects of corporate governance are as follows:
1. Corporate governance system
The Company has established and continuously improved a robust and effective governance
framework. It remains attentive to updates in laws and regulations as well as its own developmental
needs dynamically revising and enhancing relevant systems accordingly. During the reporting
period in response to the latest regulatory requirements and operational needs the Company
revised key governance documents including the Articles of Association the Rules of Procedure
for Shareholders' Meetings the Rules of Procedure for the Board of Directors the Rules of
Procedure for the Audit Committee and the Investor Relations Management System. These
revisions further enhanced the standardization and adaptability of the Company's governance
framework.
2. Shareholders and shareholders' meetings
The Company strictly adheres to the Company Law its Articles of Association and the Rules
of Procedure for Shareholders' Meetings. It standardizes the convening conduct proposal review
and decision-making processes of shareholders' meetings treats all shareholders equitably and
ensures that minority shareholders can exercise their rights in accordance with laws and regulations.Building on this foundation the Company has implemented an online voting mechanism to
facilitate participation by all shareholders in voting. Legal counsel has been engaged to witness all
previous shareholders' meetings thereby safeguarding the legitimate rights and interests of both the
Company and its shareholders. Furthermore the Company maintains communication with minority
shareholders through multiple channels including the Shenzhen Stock Exchange
35Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(http://irm.cninfo.com.cn) and the official website telephone ensuring timely and transparent
information dissemination and actively addressing shareholder concerns. During the reporting
period the Board of Directors duly convened and presided over the 2024 Annual Shareholders'
Meeting and one Extraordinary Shareholders' Meeting. All related resolution procedures were
conducted in a standardized lawful and effective manner.
3. Directors and the Board of Directors
During the reporting period the Company's Board of Directors comprised eight members
including three independent directors. Both the composition and the number of directors complied
with the requirements stipulated by the Company Law and other laws and regulations as well as the
Company's Articles of Association. The Board of Directors has established four specialized
committees: the Strategy Committee the Audit Committee the Remuneration and Appraisal
Committee and the Compliance Committee. Each committee operates independently and performs
its duties in strict accordance with its rules of procedure. This structure has effectively enhanced the
professionalism and standardization of the Board's work providing robust professional support for
its decision-making. During the reporting period the Company convened seven meetings of the
Board of Directors and 10 committee meetings. The procedures for convening deliberating and
making decisions at all meetings were conducted in compliance with the provisions of the
Company's Articles of Association the Rules of Procedure for the Board of Directors and other
internal regulations. All directors have diligently performed their duties attended meetings with a
conscientious and responsible attitude actively participated in relevant training and continuously
enhanced their understanding of laws and regulations as well as the rights and obligations of
directors. The members of the Board of Directors possess appropriate professional backgrounds and
knowledge structures and effectively safeguard the overall interests of the Company and all
shareholders in the decision-making process. Adhering to the principles of independence
objectivity and fairness the independent directors have prudently provided independent opinions
on relevant matters thereby effectively enhancing the scientific rigor of the Board of Directors'
decision-making and the effectiveness of its oversight.
4. Supervisors and the Board of Supervisors
During the reporting period the Company's Board of Supervisors comprised four supervisors
including two employee representative supervisors. The composition and size of the Board of
Supervisors complied with the provisions of the Company Law other relevant laws and regulations
and the Company's Articles of Association. During the reporting period in accordance with the
Company's Articles of Association the Rules of Procedure for the Board of Supervisors and other
relevant systems the Board of Supervisors convened four meetings and diligently performed its
36Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
oversight duties. The Board of Supervisors provided ongoing and effective oversight of the
Company's business management activities financial status and the legality and compliance of
directors and senior executives in the performance of their duties thereby effectively safeguarding
the legitimate rights and interests of the Company and all shareholders. In November 2025 the
Company completed the reform of its supervisory body by abolishing the Board of Supervisors and
replacing it with an Audit Committee. This represents a further step in enhancing corporate
governance and strengthening risk prevention and control.
5. Senior executives
The Company's senior executives strictly adhere to the requirements set forth in the Articles of
Association the Working Rules for General Manager and other relevant governance systems. They
maintain clear divisions of responsibility diligently perform their duties and are fully accountable
for the Company's daily operations and strategic implementation. Management members diligently
fulfill their responsibilities. Through institutionalized decision-making and execution mechanisms
they ensure the timely and effective implementation of the Board of Directors' resolutions. In
performing their duties they consistently prioritize safeguarding the company's overall interests and
long-term development continuously driving improvements in corporate governance effectiveness
and operational quality.
6. Information disclosure
The Company strictly adheres to the Information Disclosure System and relevant regulatory
requirements. The Secretary of the Board of Directors oversees information disclosure and investor
relations management ensuring the Company's information is disclosed to all investors in a truthful
accurate complete and timely manner. During the reporting period the Company designated the
Securities Times and CNINFO (www.cninfo.com.cn) as its official media and website for
information disclosure. This ensures all shareholders have fair and convenient access to company
information and upholds the openness transparency and efficiency of information dissemination in
the capital market.
7. Investor relations management
The Company has established the Investor Relations Management System which was revised
in 2025. Upholding the principles of compliance equality proactivity integrity and
trustworthiness the Company is dedicated to fostering long-term stable and mutually trusting
investor relationships. This commitment aims to enhance corporate governance standards and
overall enterprise value thereby achieving the overarching objectives of respecting rewarding and
protecting investors.
37Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company has implemented a diversified and regular communication mechanism
leveraging multiple channels including the investor relations column of its official website investor
hotlines mutual visits and exchanges the Shenzhen Stock Exchange (http://irm.cninfo.com.cn)
Q&A platform and performance briefings to facilitate extensive engagement with investors and
consistently communicate the Company's value.
8. Performance evaluation and incentive and restraint mechanisms
The Company has progressively established and refined an open and transparent performance
evaluation system and incentive-constraint mechanism for directors and senior executives. This
initiative continuously advances the scientific assessment criteria standardized processes and
institutionalized result application. In the appointment of senior executives the Company strictly
adheres to relevant laws regulations and internal governance policies. It upholds open and fair
selection procedures to ensure qualification compliance process transparency and rigorous
decision-making thereby effectively supporting the standardized operation of the corporate
governance structure and fostering the sound development of talent management.
9. Stakeholders
While pursuing economic benefits and safeguarding shareholder interests the Company fully
respects and actively protects the legitimate rights and interests of stakeholders including
employees customers suppliers and communities. By establishing regular communication
mechanisms it promotes collaborative development among all parties. The Company prioritizes
protecting employee rights and interests. It supports the Congress of Employees and the trade union
in performing their duties in accordance with the law continuously enhances the talent development
system and career progression pathways and provides employees with comprehensive welfare
benefits. In fulfilling its social responsibilities the Company systematically advances initiatives in
environmental protection volunteer services and public welfare support striving to achieve a
harmonious balance between corporate economic benefits and social contributions. During the
reporting period the Company's governance structure and operational mechanisms were
continuously optimized in compliance with the requirements of regulatory documents such as the
Guidelines for 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.
38Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
II. Independence of the Company from Controlling Shareholder and Actual Controller in
terms of Assets Personnel Finance Organizations and Business
The Company strictly adheres to the standardized operational requirements for listed
companies. It maintains independence from the controlling shareholder and actual controller in
terms of assets personnel finance organization and business operations. The Company has
established an independent and comprehensive business system and possessed the capability for
autonomous market-oriented operations.
1. Asset integrity: The Company possesses an independent complete and clearly defined asset
system. It independently registers accounts for calculates and manages its assets. The ownership
operation and management of these assets are independent of the controlling shareholder and other
enterprises under its control with no instances of commingling or dependency.
2. Personnel independence: The Company has established and implemented employee and
compensation management systems that are independent of the controlling shareholder. The
Company's general manager deputy general manager financial director secretary of the Board of
Directors and other senior executives are all employed full-time by the Company and receive
remuneration therefrom. They do not hold any operational positions apart from serving as directors
or supervisors in the controlling shareholder or other enterprises under its control. The selection
and appointment of the Company's directors and senior executives are strictly conducted in
accordance with the Company Law the Company's Articles of Association and the relevant rules
and procedures for shareholders' meetings and the Board of Directors. Their qualifications and the
appointment process are lawful and compliant.
3. Financial independence: The Company has established an independent and standardized
financial accounting system and organizational structure. It maintains an independent financial
accounting department staffed with full-time financial personnel. It has established a comprehensive
accounting and financial management system enabling it to make independent financial decisions.The Company maintains independent bank accounts with funds settled and deposited
autonomously. There is no sharing of bank accounts or non-operational fund transfers with the
controlling shareholder or other enterprises under its control nor are funds deposited with any
finance company or settlement center controlled by the controlling shareholder. Fund management
and operations are conducted independently free from interference by the controlling shareholder.Furthermore as an independent taxpayer the Company independently files tax returns and makes
tax payments in accordance with the law.
4. Institutional independence: In strict compliance with the Guidelines for the Governance of
Listed Companies and its operational requirements the Company has established a Board of
39Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Directors a Board of Supervisors and various internal functional departments ensuring an
independent and comprehensive organizational structure. All such institutions operate
independently from the controlling shareholder and other enterprises under its control with no
instances of co-management shared office facilities or interference therefrom. The Company
maintains independent and dedicated office premises which are physically and operationally
separate from its controlling shareholder enabling it to exercise its business management authority
independently.
5. Business independence: As a market entity with independent legal personality the Company
possesses its independent operational and service systems having developed its core industries and
competitive advantages. The Company's business system operates independently and possesses
comprehensive capabilities for autonomous market-oriented operations. There is no competition in
the same business with the controlling shareholder or its affiliates nor any manifestly unfair
connected transactions.III. Horizontal Competition
□ Applicable□Not applicable
IV. Directors and Senior Executives
1. Basic information
Number of Number of Number of
Number of
shares held increased decreased Other
Ending shares at Reasons for the
Service Starting date at the shares in shares in the increase/de
Name Gender Age Position date of the end of increase/decrea
status of tenure beginning of the current current crease
tenure the period se of shares
the period period period (share)
(share)
(share) (share) (share)
September 7
Fu Chunlong Male 53 Chairman In office 0 0 0 0 0 -
2018
September 13
Hong Wenya Male 52 Director In office 0 0 0 0 0 -
2021
Yang Xi Male 45 Director In office April 29 2022 0 0 0 0 0 -
General
Yang Xi Male 45 In office April 24 2025 0 0 0 0 0 -
manager
September 15
Huang Liang Male 39 Director In office 0 0 0 0 0 -
2022
Huang October 12
Female 43 Director In office 0 0 0 0 0 -
Tianyang 2023
Huang Chief financial August 2
Female 43 In office 0 0 0 0 0 -
Tianyang officer 2023
Independent January 4
Hu Yuming Male 61 In office 0 0 0 0 0 -
director 2018
Jiang Independent September 7
Male 63 In office 0 0 0 0 0 -
Dinghang director 2018
Zhang Dong Male 52 Independent In office September 7 0 0 0 0 0 -
40Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
director 2018
Deputy
secretary of September 7
Tan Zhong Male 58 - 0 0 0 0 0 -
Party 2018
committee
Deputy general October 25
Xie Jing Male 61 Resigned 0 0 0 0 0 -
manager 2018
Deputy general September 29
Qi Peng Male 53 In office 0 0 0 0 0 -
manager 2021
Secretary of
December 28
Qi Peng Male 53 the Board of In office 0 0 0 0 0 -
2015
Directors
Deputy general
Zhang Zheng Male 42 In office April 24 2025 0 0 0 0 0 -
manager
Total -- -- -- -- -- -- 0 0 0 0 0 --
Were there any resignations of directors and senior executives during the reporting period
□Yes □ No
1. In accordance with the Company Law and other regulations the Company amended its
Articles of Association whereby the full-time deputy secretary of the Party committee is no longer
designated as a senior executive under the Articles of Association. For details please refer to the
Announcement on Resolutions of the First Extraordinary General Meeting of Shareholders in 2025
(Announcement No.: 2025-036) in Securities Times and CNINFO (www.cninfo.com.cn) on
November 14 2025.
2. Mr. Xie Jing former deputy general manager of the Company applied for resignation due to
reaching the statutory retirement age. For details please refer to the Announcement on Resignation
of Senior Executives (Announcement No.: 2025-026) published in Securities Times and CNINFO
(www.cninfo.com.cn) on August 2 2025.Changes in the Company's directors and senior executives
□Applicable □ Not applicable
Name Position Type Date Reason
Yang Xi General manager Appointed April 24 2025 Job transfer
Deputy general
Zhang Zheng Appointed April 24 2025 Job transfer
manager
Deputy general
Xie Jing Resigned July 31 2025 Retired
manager
According to the latest revised Articles of
Association of the Company the full-time
Deputy secretary of
Tan Zhong - November 13 2025 deputy secretary of the Party committee is no
Party committee
longer considered a senior executive of the
Company.
2. Employment
Professional background the main work experience and the current main duties of the Company's incumbent directors and senior
executives
Name Main work experience and employment
41Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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
and Audit Headquarters of Guosen Securities Co. Ltd. Chief Financial Officer of Shenzhen Institute of Building
Research Co. Ltd. Deputy Director of the Finance Department of Shenzhen Yuanzhi Investment Co. Ltd. official
Hong responsible for the budget management and financial supervision of municipal state-owned enterprises at the Statistics
Wenya 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
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
Yang Xi 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 and General Manager
of the Strategic Investment Department of Shenzhen Special Economic Zone Development Group Co. Ltd. He currently
serves as the Company's Director and General Manager.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 Deputy
Office Director (presiding over the work) and Director. He is currently General Manager of the Enterprise Management
Department (Board of Directors 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 Management
Yuming 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 an Honorary Partner of Shanghai AllBright
(Shenzhen) Law Firm an arbitrator at the Shenzhen Court of International Arbitration a representative to the Seventh
Party Congress of Shenzhen and an Independent Director of the Company.Born in 1974 he has a doctor's degree and is a postdoctoral fellow in economics a professorate senior economist a senior
gold investment analyst and a 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 is currently the Chairman of Chaozuan Jewelry (Shenzhen) Co. Ltd. the Chairman of Kunmi
Brand Culture (Hainan) Co. Ltd. and an Independent Director 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.
42Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Born in 1984 he holds a bachelor's degree and is an intermediate accountant and human resource management
professional. He once served as a Senior Auditor in the Audit Department of Peking Certified Public Accountants an
Zhang Accountant and Financing Supervisor in the Planning and Finance Department of Shenzhen Special Economic Zone
Zheng Development Group Co. Ltd. Deputy Director of the Company's Planning and Finance Department Deputy Director andDirector of the Audit and Risk Control Department (the Discipline Inspection Supervision and Board of Supervisors
Office) and Deputy General Manager of Shenzhen SDG Microfinance Co. Ltd. He currently serves as Deputy General
Manager of the Company.Situation where the controlling shareholder and actual controller concurrently serve as the Chairman and General Manager of a
listed company
□ Applicable□Not applicable
Employment at shareholder entities
□Applicable □ Not applicable
Whether there is
Ending compensation or
Name of the shareholder Position in the shareholder Starting date
Individual date of allowance in the
entity entity of tenure
tenure shareholder entity
or not
Shenzhen Special
Member of the Party
Economic Zone
Hong Wenya Committee Director and June 15 2021 No
Development Group Co.Chief Financial Officer
Ltd.Shenzhen Special General Manager of the
Economic Zone Enterprise Management
Huang Liang April 16 2024 Yes
Development Group Co. Department (Board of
Ltd. Directors Office)
Explanation on
position at The positions of the Company's directors and senior executives in other entities are those of non-holding
shareholder subsidiaries of the Company.entities
Employment at other entities
□Applicable □ Not applicable
Whether there is
compensation or
Position held in other Starting date Ending date of
Individual Name of other entities allowance in the
entities of tenure tenure
other entities or
not
Shenzhen SDG Information October 28 October 27
Hong Wenya Director No
Co. Ltd. 2024 2027
Shenzhen SEZ Construction November 29 November 14
Hong Wenya Supervisor No
Group Co. Ltd. 2021 2025
Shenzhen SDG Information October 28 October 10
Yang Xi Director No
Co. Ltd. 2024 2025
Shenzhen Zhishenggao
Yang Xi Technology Development Chairman June 26 2023 No
Co. Ltd.Professor and
Doctoral Supervisor
Hu Yuming Jinan University June 1 2003 Yes
of the School of
Management
August 24 August 23
Hu Yuming By-Health Co. Ltd. Independent director Yes
20232026
Shanghai Allbright
Jiang Dinghang Honorary Partner April 1 2005 Yes
(Shenzhen) Law Offices
Jiang Dinghang Shenzhen Court of Arbitrator No
43Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
International Arbitration
Chaozuan Jewelry December 12
Zhang Dong Chairman Yes
(Shenzhen) Co. Ltd. 2024
Kunmi Brand Culture October 25
Zhang Dong Chairman Yes
(Hainan) Co. Ltd. 2022
Explanation on
The positions of the Company's directors and senior executives in other entities are those of non-holding
position at other
subsidiaries of the Company.entities
Penalties imposed by securities regulatory institutions in the past three years on directors and senior executives who are in-service
and left their posts during the reporting period
□ Applicable□Not applicable
3. Remuneration of directors and senior executives
Decision procedure determination basis and actual payment of the compensation of directors and senior executives
The remuneration of the Company's directors and senior executives is paid in accordance with
the regulations governing the compensation management for the Company's directors and senior
executives. Directors who do not perform management functions do not receive remuneration from
the Company. The remuneration of directors and senior executives who perform management
functions is determined based on the Company's compensation and performance assessment
management systems taking into account actual performance evaluations. Allowances for
independent directors are paid monthly in accordance with the standards approved by the
shareholders' meeting.During the reporting period the basic remuneration for non-independent directors and senior
executives was paid monthly while performance-based compensation was paid according to the
established system following review and approval. Allowances for independent directors were also
paid monthly.Remuneration of the directors and senior executives of the Company during the reporting period
Unit: RMB 10000
Whether to
Total
receive
compensation
compensation
Name Gender Age Position Service status before tax
from related
received from
parties of the
the Company
Company
Fu Chunlong Male 53 Chairman In office 110.27 No
Hong Wenya Male 52 Director In office 0 Yes
Director and general
Yang Xi Male 45 In office 46.78 Yes
manager
Huang Liang Male 39 Director In office 0 Yes
Huang Director chief
Female 43 In office 80 No
Tianyang financial officer
Hu Yuming Male 61 Independent director In office 8 No
Jiang Dinghang Male 63 Independent director In office 8 No
Zhang Dong Male 52 Independent director In office 8 No
Tan Zhong Male 58 Deputy secretary of - 74.82 No
44Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Party committee
Deputy general
Xie Jing Male 61 Resigned 53.95 No
manager
Deputy general
manager secretary
Qi Peng Male 53 In office 74.09 No
of the Board of
Directors
Deputy general
Zhang Zheng Male 42 In office 37.06 Yes
manager
Total -- -- -- -- 500.97 --
Assessment basis of remuneration actually received by all
directors and senior executives as of the end of the reporting Performance assessment management systems of the Company
period
Non-independent directors and senior executives have undergone
performance appraisal in accordance with the Company's
Assessment of remuneration actually received by all directors
relevant systems and annual operating performance. The
and senior executives as of the end of the reporting period
allowances received by independent directors are not subject to
such performance appraisal.Deferred payment arrangements for remuneration actually
received by all directors and senior executives as of the end of N/A
the reporting period
Stop payment and recourse of remuneration actually received by
all directors and senior executives as of the end of the reporting N/A
period
Other descriptions
□ Applicable□Not applicable
V. Duty Performance of Directors during the Reporting Period
1. Attendance of directors at the Board meetings and shareholders' meetings
Attendance of directors at the Board meetings and shareholders' meetings
Whether they
Number of
Attendances at Attendances have failed to
attendances
Attendances the Board at the Board Times of attend the Attendances
at the Board
Name of at the Board meeting meeting absence at Board meeting at the
meeting
director meeting in through through the Board in person for shareholders'
during the
person communication entrusting meeting two meeting
reporting
tools others consecutive
period
times
Fu Chunlong 7 1 6 0 0 No 2
Hong Wenya 7 1 6 0 0 No 1
Yang Xi 7 1 6 0 0 No 0
Huang Liang 7 1 6 0 0 No 0
Huang
7 1 6 0 0 No 0
Tianyang
Jiang
7 1 6 0 0 No 1
Dinghang
Hu Yuming 7 1 6 0 0 No 1
Zhang Dong 7 1 6 0 0 No 1
Explanation on failure to attend in person at the Board meeting for two consecutive times: None
45Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. 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.
3. 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 complied with laws regulations
and relevant normative documents including the Company Law the Securities Law and the Self-
Regulatory Guidelines No. 1 for Companies Listed on the Shenzhen Stock Exchange—Standard
Operation of Main Board Listed Companies. They strictly adhered to the Company's Articles of
Association and the Rules of Procedure for the Board of Directors and earnestly fulfilled their
duties of loyalty and diligence. The directors actively attended Board meetings gained a thorough
understanding of the business substance of the matters under review engaged in prudent
discussions and voting on various proposals and offered numerous targeted suggestions
concerning the Company's internal control systems business management and strategic
development. They fulfilled their decision-making and oversight functions. In accordance with
the Measures for the Administration of Independent Directors of Listed Companies and other
relevant regulations the Company's independent directors leveraging their professional expertise
provided independent and objective opinions. They maintained continuous oversight of the
Company's financial and operational conditions effectively supervised information disclosure
played a significant role in promoting scientific decision-making and standardized operations of
the Board of Directors and robustly safeguarded the legitimate rights and interests of the
Company and all shareholders. The Company placed high importance on the suggestions made by
the directors and actively adopted and implemented those reasonable proposals that align with the
Company's development strategy.VI. Special Committees Set under the Board of Directors during the Reporting Period
Number Important Other
Details of
Name of of Convening comments performan
Members Meeting content objection
committee meetings date and ce of
s (if any)
held suggestions duties
Fu 1. Proposal on the development
Chunlong of the hedging business by
Audit Hong holding subsidiariesJanuary 8
Committee of Wenya Hu 2. Announcement on the Approved - -2025
the Tenth Yuming 6 preliminary arrangements for
Board of Jiang auditing the 2024 annual
Directors Dinghang financial report
Zhang March 25 1. 2024 Annual Report and
Dong Approved - -2025 Summary
46Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. 2024 Annual Internal Control
Self-evaluation Report
3. Report on Evaluation of
Accounting Firm's Performance
and Audit Committee's
Performance of Supervisory
Responsibilities in 2024
April 24 1. Report for Q1 2025
Approved - -
2025 2. Proposal on asset write-off
1. Proposal on adjusting the
May 22
hedging plan of the holding Approved - -
2025
subsidiaries
August 19
1. 2025 Semi-Annual Report Approved - -
2025
1. Report for Q3 2025
2. Proposal on revising the
Rules of Procedure for the
October
Audit Committee. Approved - -
262025
3. Proposal on renewal of the
Company's annual audit
institution
1. Proposal on amending the
Management Measures for
January 8
Compensation and Approved - -
2025
Performance of the
Management Team
Fu 1. Proposal on performanceMay 22
Chunlong indicators of the Company's Approved - -
Compensation 2025
Hong management team in 2025
and Appraisal
Wenya Hu
Committee of 1. Proposal on the performance
Yuming 4
the Tenth August 19 indicators for certain members
Jiang Approved - -
Board of 2025 of the management team during
Dinghang
Directors their term
Zhang 1. Proposal on the 2024 annual
Dong performance evaluation results
and their application for the
December
Company's management team Approved - -
242025
2. Proposal on amending the
Compensation Management
System for Headquarters Staff
VII. Performance of the Audit Committee
Whether the Audit Committee found any risks in the Company during its oversight activities in the reporting period
□Yes□No
The Audit Committee had no objection to the matters supervised during the reporting period.VIII. Employees of the Company
1. Number of employees professional composition and education level
Number of existing employees in the parent company at the end
113
of the reporting period (person)
Number of existing employees in the main subsidiaries at the end 66
47Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
of the reporting period (person)
Total number of existing employees at the end of the reporting
179
period (person)
Total number of employees payable in the period (person) 179
Number of retired employees with expenses incurred by the
0
parent company and main subsidiaries (person)
Professions
Type of professions Number of professionals (person)
Production personnel 0
Sales personnel 72
Technical personnel 13
Financial personnel 19
Administrative personnel 75
Total 179
Education level
Category Number of employees (person)
Master's degree and above 36
Bachelor's degree 110
Junior college diploma and below 33
Total 179
2. Compensation policy
The Company strictly follows the Compensation Management System for Headquarters Staff
Performance Appraisal Management System for Headquarters Staff and other systems. Regarding
compensation distribution principles the Company adheres to the sustainable development
principle of distribution according to work efficiency first and fairness considered. Compensation
is determined based on employee position value broadband salary structure performance linkage
and dynamic management ensuring that pay is closely aligned with employees' actual contributions
and the value they create. In terms of incentive orientation emphasis is placed on key positions
core talents and high-performing employees. Through competitive incentive measures the
Company aims to fully mobilize employee enthusiasm and creativity stimulate their inherent
potential and drive the achievement of the company's strategic objectives and its sustained stable
development.
3. Training plan
The Company prioritizes employee training. During the reporting period it enhanced the
employee training system by refining the new employee training manual optimizing the
recruitment and onboarding process conducting new employee orientation sessions and executive
roundtable discussions and strengthening the new employee mentorship program to facilitate rapid
48Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
integration. It continued to refine the internal trainer system to foster the exchange of professional
knowledge. Additionally the Company organized competency assessments and management
development training for middle managers establishing a structured "assessment targeted
improvement reassessment" training framework. Through online resources offline publications
and specialized training it facilitated certification exams such as for auctioneers to enhance the
professional capabilities of its business staff.
4. Labor outsourcing
□ Applicable□Not applicable
IX. 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 shareholders' meetings. 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 description of the cash dividend policy
Whether it complies with the Company's Articles of Association
Yes
or the requirements of resolutions of the shareholders' meetings:
Whether the dividend standards and proportions are definite and
Yes
clear:
Whether the relevant decision-making processes and
Yes
mechanisms are complete:
Whether the independent directors perform their duties and play
Yes
their due role:
If the Company does not make cash dividends it shall disclose
the specific reasons and the measures to be taken to enhance the N/A
returns for investors:
Whether the minority shareholders have the opportunity to fully
express their opinions and demands and whether their legitimate Yes
rights and interests are adequately protected:
Whether the conditions and procedures for adjusting and
N/A
changing the cash dividend 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
49Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
□ Applicable□Not applicable
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) 1.10
Base of share capital in distribution pre-plan (share) 431058320
Amount of cash dividends (RMB) (tax-inclusive) 47416415.20
Amount of cash dividends in other ways (such as share
0.00
repurchase) (RMB)
Total amount of cash dividends (including other ways) (RMB) 47416415.20
Distributable profit (RMB) 165946078.49
The proportion of total cash dividends (including other ways) to
100%
total 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
1.10 (including tax) for every 10 shares to all shareholders based on the total share capital of 431058320 shares as of December 31
2025 with a total cash dividend of RMB 47416415.20 without bonus shares or capital increase. This profit distribution plan has
been implemented after being reviewed and approved by the shareholders' meeting.X. 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.XI. Establishment and Implementation of the Internal Control System during the Reporting
Period
1. Establishment and implementation of internal control
During the reporting period the Company established and enhanced its internal control system
in strict compliance with the Company Law the Articles of Association and the Basic Standard for
Enterprise Internal Control. In light of industry characteristics and the operational conditions the
Company continuously refined its internal control framework reinforced compliance awareness
ensured the effective execution of internal controls safeguarded standardized operations and
fostered its healthy and sustainable development. During the reporting period all internal control
systems of the Company were effectively implemented with no significant deficiencies identified.
50Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The expected objectives of internal control were met thereby protecting 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. 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
XII. Management Control over the Subsidiaries during the Reporting Period
Problems
Company Integration Integration Progress of Follow-up
encountered in Solution taken
name plan progress resolution resolution plan
integration
N/A N/A N/A N/A N/A N/A N/A
Abnormal management and control of subsidiaries
□Yes□No
XIII. Internal Control Evaluation Report or Auditor's Report on Internal Control
1. Internal control evaluation report
Disclosure date of the internal
April 22 2026
control evaluation report
Disclosure index of the internal For details please refer to the 2025 Annual Internal Control Self-evaluation Report disclosed
control evaluation report 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 the 100.00%
Company's consolidated financial
statements
Deficiency identification standards
Category 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) Major
Qualitative standards
material misstatements in financial reports. The decisions are made in violation of the
following circumstances shall be identified as Company's prescribed procedures
material deficiencies in internal control: (1) resulting in significant losses to the
51Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Management fraud resulting in material Company; (2) Serious violations of laws
misstatements in financial results or the or regulations that cause significant losses
issuance of false financial reports thereby to the Company; (3) Lack of institutional
misleading users of financial statements control over key business operations or
causing decision-making errors and leading to systematic failure of internal control
litigation; (2) Ineffectiveness of the control systems; (4) Severe loss of core
environment; (3) Failure to rectify significant management personnel or key technicians;
internal control deficiencies reported to (5) Failure to rectify material deficiencies
management within a reasonable period; (4) identified in internal control evaluations;
Failure to follow appropriate decision-making (6) Failure of internal control over
procedures for major corporate matters information disclosure resulting in public
resulting in significant losses to the Company; censure by regulatory authorities.
(5) Lack of effective control over key business 2. Significant deficiencies: A deficiency
activities related to the Company's production shall be deemed significant if it has any of
and operations; (6) Other deficiencies that the following characteristics: (1) Violation
seriously mislead users of financial statements of internal corporate regulations resulting
resulting in significant compensation for the in substantial losses; (2) Significant loss
Company. of personnel in key business positions; (3)
2. Significant deficiencies: A deficiency or a Deficiencies in the Company's critical
combination of deficiencies that results in the business systems or procedures; (4)
inability to promptly prevent detect or correct Failure to rectify significant deficiencies
misstatements in financial reports. Although identified in the Company's internal
these misstatements do not reach or exceed the control.materiality threshold they should still draw the 3. General deficiency refers to other
attention of management. The following deficiencies in control other than the
circumstances shall be identified as significant above-mentioned material deficiency and
deficiencies in internal control: (1) Failure to significant deficiency.select and apply accounting policies in
accordance with generally accepted accounting
principles; (2) Failure to establish anti-fraud
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 loss amount >
1. Material deficiencies: misstatement > 10% of
1.5% of the equity of the owner of the
the total profit and the absolute amount > RMB
parent company and the absolute
10 million;
amount > RMB 10 million;
2. Significant deficiencies: 5% of the total
2. Significant deficiencies: 0.5% of equity
profit < misstatement ≤ 10% of the total profit
of the owner of the parent company < loss
and the absolute amount > RMB 5 million; or
Quantitative standards amount ≤ 1.5% of equity of the owner of
RMB 5 million < absolute amount ≤ RMB 10
the parent company or RMB 5 million <
million and the misstatement amount > 5% of
absolute amount ≤ RMB 10 million;
the total profit;
3. General deficiencies: the loss amount ≤
3. General deficiencies: misstatement ≤ 5% of
0.5% of equity of the owner of the parent
the total profit or absolute amount ≤ RMB 5
company or the absolute amount ≤ RMB
million.
5 million.
52Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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.)
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 the 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 2025 in accordance with the Basic Standard for Enterprise Internal Control and relevant regulations.
Disclosure of the auditor's report on internal control Disclosure
Disclosure date of the auditor's report on internal control April 22 2026
Disclosure index of the auditor's report on internal control CNINFO (http://www.cninfo.com.cn)
Type of opinion in the 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
Whether a non-standard audit opinion on internal control was issued for the reporting period or the previous year
□Yes□No
XIV. Rectification of Issues Identified during Self-inspection in Connection with the Special
Governance Action for Listed Companies
N/A
XV. Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises that disclose environmental
information according to law
□Yes□No
XVI. Social Responsibilities
In 2025 the Company actively fulfilled its social responsibilities by adhering to a people-oriented
approach. It continuously enhanced its employee care system by organizing annual physical
examinations conducting holiday greetings and recreational activities and managing talent
53Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
housing programs thereby strengthening employees' sense of belonging. The Company
consolidated the foundation for safe development achieving a 100% rate for identifying and
rectifying potential hazards throughout the year. Multi-scenario emergency drills were conducted
to ensure operational safety. It also deepened the guiding role of Party building and leveraged
resources from the industry and the Party committee to conduct training and collaborative
initiatives. This empowered business development fostered deeper integration between Party
building and corporate management and facilitated the coordinated development of the enterprise
and society.XVII. Details on Consolidating and Expanding Its Achievements in Poverty Alleviation and
Rural Revitalization
In 2025 the Company actively responded to national initiatives and earnestly fulfilled its social
responsibilities by continuing to invest in consolidating and expanding poverty alleviation
achievements and supporting rural revitalization. Through extensive consumption assistance
programs the Company purchased a total of RMB 63000 worth of poverty alleviation products
during the year effectively supporting industrial development and increasing farmers' incomes in
the pairing assistance regions.
54Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section V 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
Commitment Commitment Commitment Commitment Commitment
Commitment content Performance
cause party type time period
The Company will maintain the
independence of the listed
company and maintain
personnel independence
institutional independence
financial independence and
asset integrity with the listed
company. The listed company
Shenzhen Ensure the will still have independent
Investment independence operation ability independent
Holdings of listed procurement production and
Co. Ltd. companies sales system and independent
intellectual property rights.In case of violation of the above
commitments the Company will
bear corresponding legal
responsibilities including but
During the
not limited to compensation for
Commitment period of
all losses caused to the listed
made in the being an
company.acquisition indirect
1. As of the signing date of this December 30 Inreport or the controlling
Letter of Commitment the 2022 performancereport of shareholder
equity Company and other enterprises of the
change controlled by the Company have Company
not engaged in business and
activities that are in direct
competition with or may
constitute direct competition
with Tellus and will not engage
Shenzhen in business and activities that are
Avoid
Investment in direct competition with or
horizontal
Holdings may constitute direct
competition
Co. Ltd. competition with Tellus in the
future (except those arranged
based on Shenzhen SASAC or
similar government agencies);
2. During the period of being the
indirect controlling shareholder
of Tellus and during Tellus'
listing on the Shenzhen Stock
Exchange the Company will
fully respect the independent
55Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
operation autonomy of all
subsidiaries controlled by the
Company and ensure that the
legitimate rights and interests of
Tellus and its minority
shareholders will not be
infringed;
3. The Company promises not to
seek illegitimate interests with
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.
1. The Company and the
companies enterprises and
economic organizations
controlled or actually controlled
by the Company (excluding
enterprises controlled by listed
companies hereinafter
collectively referred to as
"affiliated companies") will
exercise the rights of
shareholders fulfill the
obligations of shareholders and
maintain the independence of
Shenzhen Reduce and
listed companies in terms of
Investment standardize
assets finance personnel
Holdings related party
business and institutions in
Co. Ltd. transactions
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
shareholders' meeting 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;
56Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 listed
companies illegally transfer the
funds and profits of listed
companies through related party
transactions and maliciously
damage the legitimate rights and
interests of listed companies and
their 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.Commitment In the future the Company will
made during Shenzhen disclose relevant information
the initial Tellus regarding the progress of its new October 17 In
Others Long term
public Holding Co. business in a timely accurate 2014 performance
offering or Ltd. and sufficient manner per
refinancing relevant requirements.Other Shenzhen Shenzhen Special Economic
commitments Special Zone Development Group Co.made for Economic Horizontal Ltd. the controlling shareholder InMay 26 2014 Long term
minority Zone competition of the Company issued the performance
shareholders Developmen Letter of Commitment to
of the t Group Co. Avoiding Horizontal
57Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Company Ltd. Competition on May 26 2014.The commitments are as
follows:
1. The Company and other
enterprises controlled by the
Company other than Tellus
Holding are not engaged in
business that is in substantial
competition with the main
business of Tellus Holding and
there is no horizontal
competition relationship with
Tellus Holding;
2. The Company and other
enterprises controlled by the
Company shall not directly or
indirectly engage in or
participate in any business that
constitutes or may constitute
competition with the main
business of Tellus Holding in
any form;
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
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
given priority 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 losses of previous years
on the premise that the
Company's profits and cash flow
Shenzhen meet the normal operation and
Other Tellus Dividend long-term development of the April 27 December In
commitments Holding Co. commitment Company the Company will 2023 31 2025 performance
Ltd. implement an active profit
distribution method to reward
shareholders. For details please
refer to the Shareholder Return
Plan for the Next Three Years
(2023–2025) disclosed on
www.cninfo.com.cn on April
272023.
58Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Whether the commitments are duly performed Yes
If the commitment is not fulfilled after the time limit the specific reasons for the
N/A
failure of fulfillment and the next work plan shall be specified
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 the profit forecast the Company shall explain whether the assets and projects can
realize the original profit forecast and specify the reasons
□ Applicable□Not applicable
3. Performance commitments
□ 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 toward the listed company was 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.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 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
During the reporting period the Company did not make any changes to its accounting policies or estimates nor did it correct any
significant accounting errors.VII. Explanation on Change of Scope of Consolidated Financial Statements Compared with
the Financial Statement of the Previous Year
□Applicable □ Not applicable
59Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Company name Time of Reporting Reasons for not included in consolidationcancellation period scope
Shenzhen Huari Anxin Automobile Inspection Co. December 18
Ltd. 2025 2025 Liquidation and cancellation
VIII. Employment and Dismissal of Accounting Firm
Current accounting firm
Grant Thornton Certified Public Accountants (Special General
Name of the domestic accounting firm
Partnership)
Remuneration of the domestic accounting firm (RMB 10000) 75
Duration of audit services provided by the domestic accounting
3
firm
Names of CPAs of the domestic accounting firm Wu Liang Xiao Na
Duration of audit services provided by the CPAs of the domestic
Wu Liang (3 years) Xiao Na (2 years)
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 China (Special General Partnership) as its 2025
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 during the reporting period of the Company.XI. Major Litigation and Arbitration Matters
□Applicable □ Not applicable
Whether
Amount Litigation Execution of
estimated Progress of
Basic information on involved (arbitration) the litigation Disclosure Disclosure
liabilities litigation
litigation (arbitration) (RMB trial results (arbitration) date index
are (arbitration)
10000) and impacts judgment
formed
Land lease contract The second- The
dispute (Tellus instance execution 2024 Annual
Jewelry formerly judgment was March 28 Report on
1403.76 No Closed
Shenzhen Automobile supported completed. 2025 Securities Times
Industry and Trade some of the The and CNINFO
Co. Ltd. as the Company's execution
60Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
plaintiff) claims. payment was
RMB 7.294
million.The first
instance
supported
Project construction some of the
contract dispute plaintiff's
(Zhongtian Company claims in this
as the defendant in the 670.44 No In progress lawsuit. The N/A
original claim and the case is
plaintiff in the currently in
counterclaim) the second
instance and
has not yet
been judged.The first-
instance
ruling
Equity transfer dispute dismissed the
(Tellus as the 472 No In progress company's N/A
plaintiff/appellant) lawsuitand
the Company
has filed an
appeal.After the
Company’s
claims were
dismissed in
both the first 2024 Annual
Unjust enrichment
and second March 28 Report on
dispute (Tellus as the 175.94 No Closed N/A
instances its 2025 Securities Times
plaintiff/appellant)
application and CNINFO
for a retrial
was also
rejected by
the court.XII. Punishment and Rectification
□ Applicable□Not applicable
No punishment or rectification was identified during 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
61Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB 10000
Proportion
Pricing Exceeding Market
Type of Content of to Settlement
principle of Price of Amount of Approved the price of
Related transaction Related-party related related transaction method of Disclosure Disclosure
related related party related party transaction approved available
party relationship party party amount of related party date index
party transaction transaction amount amount or similar
transaction transaction the same transaction
transaction not transaction
kind
According
Shenzhen SDG Subsidiary of Daily Provide
to the
Tellus Property the related property Market
54.25 54.25 0.15% 35Yes contract 54.25
Management Co. controlling party leasing pricing
amount or
Ltd. shareholder transaction services
agreement
Provide According
Subsidiary of Daily
Shenzhen SDG property to the
the related Market
Microfinance Co. leasing and 0 0 0.00% 150No contract 0
controlling party pricing
Ltd. managemen amount or
shareholder transaction
t services agreement
Provide According
Subsidiary of Daily
Shenzhen SDG property to the
the related Market
Service Co. Ltd. and leasing and 0 0 0.00% 400No contract 0
controlling party pricing
its branches parking amount or
shareholder transaction
services agreement
The
Company's
According
related Daily Provide
to the
Shenzhen Telixing natural personrelated brokerage Market
0 0 0.00% 60No contract 0
Investment Co. Ltd. serves as a party and agency pricing
amount or
director of thetransaction services
agreement
joint-stock
company
According
Subsidiary of Daily Provide
Shenzhen SDG to the
the related brokerage Market
Microfinance Co. 4.88 4.88 11.37% 0Yes contract 4.88
controlling party and agency pricing
Ltd. amount or
shareholder transaction services
agreement
Announcemen
According
Shenzhen SDG Subsidiary of Daily Accept t on Daily
to the
Engineering the related engineering Market Related Party
80 80 100.00% 160No contract 80
Management Co. controlling party supervision pricing Transactions
amount or
Ltd. shareholder transaction services in 2025
agreement
(Announceme
Accept
According nt No.: 2025-
Subsidiary of Daily property
Shenzhen SDG to the March 28 010) on
the related managemen Market
Service Co. Ltd. and 709.05 709.05 78.63% 1050No contract 709.05 2025 Securities
controlling party t and pricing
its branches amount or Times and
shareholder transaction security
agreement CNINFO
services
According
Subsidiary of Daily Accept
Shenzhen SDG to the
the related property Market
Eastern Service Co. 0.00 0 0.00% 50No contract 0
controlling party managemen pricing
Ltd. amount or
shareholder transaction t services
agreement
According
Subsidiary of Daily Accept
Shenzhen SDG to the
the related property Market
Building Technology 28.80 28.8 3.19% 50No contract 28.80
controlling party managemen pricing
Co. Ltd. amount or
shareholder transaction t services
agreement
Shenzhen SDG Subsidiary of Daily Accept Market 124.17 124.17 13.77% 690No According 124.17
62Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Tellus Property the related property pricing to the
Management Co. controlling party managemen contract
Ltd. shareholder transaction t services amount or
agreement
Enterprise According
Daily
Guoren Property & controlled by Accept to the
related Market
Casualty Insurance indirect insurance 44.14 44.14 60.79% 100No contract 44.14
party pricing
Co. Ltd. controlling services amount or
transaction
shareholders agreement
Total -- -- 1045.29 -- 2745 -- -- -- -- --
Details of large-sum sales return N/A
The actual performance during the reporting period (if any)
if the total amount of daily related party transactions Normal performance
occurring in the current period is estimated by category
Reasons for the great difference between transaction price
N/A
and market reference price (if applicable)
2. Related party transactions from the acquisition and sale of assets or equity
□ Applicable□Not applicable
During the reporting period the Company had no related party transactions from the acquisition and sale of assets or equity.
3. Related party transactions of joint outbound investment
□ Applicable□Not applicable
During the reporting period the Company had no related party transactions of joint outbound investment.
4. Transactions related to credit and debt
□Applicable □ Not applicable
Whether there are transactions of non-operating related credit and debt
□Yes□No
During the reporting period the Company had no transactions of non-operating related credit and debt.
5. Transactions with related finance companies
□ Applicable□Not applicable
There was 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 was 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
63Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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
The Company had no significant guarantees during the reporting period.
3. Management of cash assets by other entrusted parties
(1) Entrusted wealth management
□Applicable □ Not applicable
Overview of entrusted wealth management during the reporting period
Unit: RMB 10000
Balance of entrusted wealth
Product category Risk characteristics management during the reporting Overdue unrecovered amount
period
Financial products from banks Low risk 91050.00 0
Details regarding the Company's engagement of financial institutions for asset management as a sole principal or its investments
in high-risk entrusted wealth management products characterized by low security and poor liquidity.□ Applicable□Not applicable
(2) Entrusted loan
□ Applicable□Not applicable
During the reporting period the Company had no entrusted loans.
64Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
4. Other major contracts
□ Applicable□Not applicable
During the reporting period the Company has no major contracts.XVI. Usage of Raised Funds
□ Applicable□Not applicable
No raised funds were used within the reporting period of the Company.XVII. Description of Other Major Matters
□ Applicable□Not applicable
The Company had no other major matters that needed to be stated during the reporting period.XVIII. Major Matters of the Company's Subsidiaries
?Applicable□Not applicable
On October 29 2025 the new gold tax policy triggered industry transformation compounded by a significant surge in gold prices.In response to these industry and market shifts the Company's subsidiary Guorun Gold proactively adjusted its business model
optimized its organizational structure and explored business opportunities centered on gold cultural and creative products to
capture market opportunities and strategize for long-term development.
65Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VI 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
Conversion
of the
Issuance of Bonus
Quantity Proportion reserve Others Subtotal Quantity Proportion
new shares shares
funds into
shares
I. Restricted shares 0 0.00% 0 0 0 0 0 0 0.00%
1. State shareholding 0 0.00% 0 0 0 0 0 0 0.00%
2. State-owned legal
00.00%0000000.00%
person shareholding
3. Other domestic
00.00%0000000.00%
shareholding
Including: shares
held by domestic legal 0 0.00% 0 0 0 0 0 0 0.00%
person
Domestic natural
00.00%0000000.00%
person shareholding
4. Foreign
00.00%0000000.00%
shareholding
Including: foreign
00.00%0000000.00%
legal person shareholding
Foreign natural
00.00%0000000.00%
person shareholding
II. Unrestricted shares 431058320 100.00% 0 0 0 0 0 431058320 100.00%
1. RMB-denominated
39277832091.12%0000039277832091.12%
ordinary shares
2. Domestic listed
382800008.88%00000382800008.88%
foreign shares
3. Foreign listed
00.00%0000000.00%
foreign shares
4. Others 0 0.00% 0 0 0 0 0 0 0.00%
III. Total amount of
431058320100.00%00000431058320100.00%
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
66Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
□ 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 restricted shares
□ 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 Total number Total number of
of ordinary of preferred preferred
shareholders shareholders shareholders with
Total number of ordinary as at the end with restored restored voting rights
share shareholders as of the 49366of the previous 47647voting rights 0as at the end of the 0
end of the reporting period month before as at the end previous month
the disclosure of the before the disclosure
date of the reporting date of the annual
annual report period report
Shareholders holding more than 5% shares or shareholding of the top 10 shareholders (excluding shares lent through refinancing)
Number of Pledged marked
Increase/decr
shares held at Number of Number of or frozen shares
Nature of Shareholding ease during
Name of shareholder the end of the restricted unrestricted
shareholder proportion the reporting
reporting shares held shares held Status of
period Quantity
period shares
Shenzhen Special Economic
State-owned
Zone Development Group Co. 49.09% 211591621 0 0211591621N/A 0
legal person
Ltd.
67Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Agricultural Bank of China
Limited - MaxWealth CSI SH-
Others 0.59% 2550875 2182500 0 2550875N/A 0
SZ-HK Gold Industry Equity
ETF
Hong Kong Securities Overseas legal
0.54% 2308552 -268687 0 2308552N/A 0
Clearing Company Limited person
Domestic
Li Xiaoming 0.52% 2230400 -839100 0 2230400N/A 0
natural person
Industrial and Commercial
Bank of China Limited -
Others 0.40% 1709275 176800 0 1709275N/A 0
China Southern CSI All Share
Real Estate ETF
Domestic
Li Daoqing 0.35% 1498400 876300 0 1498400N/A 0
natural person
Domestic
Liao Guopei 0.29% 1250550 1250550 0 1250550N/A 0
natural person
Domestic
Yuan Wende 0.28% 1218200 1218200 0 1218200N/A 0
natural person
Domestic
Lin Weifeng 0.26% 1112900 717100 0 1112900N/A 0
natural person
Domestic
Li Jun 0.24% 1039900 1039900 0 1039900N/A 0
natural person
Status of the strategic investor or general
legal person becoming one of the top 10
N/A
shareholders due to rights issue (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 was not a person acting in
Explanations of the related relationship or
concert as stipulated in the Measures for the Administration of the Takeover of Listed
concerted action of the above shareholders
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
N/A
entrusted with the right to vote and giving up
the right
Special description of repurchase special
account among the top 10 shareholders (if N/A
any) (see Note 10)
Shareholdings of the top 10 shareholders without restrictions on sale (excluding shares lent through refinancing and locked shares of
senior executives)
Number of unrestricted Share type
Name of shareholder shares held at the end of the
reporting period Share type Quantity
Shenzhen Special Economic Zone Development Group RMB-denominated
211591621211591621
Co. Ltd. ordinary shares
Agricultural Bank of China Limited - MaxWealth CSI RMB-denominated
25508752550875
SH-SZ-HK Gold Industry Equity ETF ordinary shares
RMB-denominated
Hong Kong Securities Clearing Company Limited 2308552 2308552
ordinary shares
RMB-denominated
Li Xiaoming 2230400 2230400
ordinary shares
Industrial and Commercial Bank of China Limited - RMB-denominated
17092751709275
China Southern CSI All Share Real Estate ETF ordinary shares
RMB-denominated
Li Daoqing 1498400 1498400
ordinary shares
Liao Guopei 1250550RMB-denominated 1250550
68Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
ordinary shares
RMB-denominated
Yuan Wende 1218200 1218200
ordinary shares
RMB-denominated
Lin Weifeng 1112900 1112900
ordinary shares
RMB-denominated
Li Jun 1039900 1039900
ordinary shares
Description on the related relationship or
Among the top 10 shareholders Shenzhen Special Economic Zone Development
concerted action among the top 10
Group Co. Ltd. a state-owned legal-person shareholder was not related to other
shareholders of unrestricted tradable shares
shareholders and was not a person acting in concert as stipulated in the Measures for
and between the top 10 shareholders of
the Administration of the Takeover of Listed Companies. It was unknown whether other
unrestricted tradable shares and the top 10
shareholders of tradable shares were persons acting in concert.shareholders
Description of participation of the top 10
shareholders of ordinary shares in securities N/A
margin trading (if any) (see Note 4)
Participation of shareholders holding more than 5% of the shares the top 10 shareholders and the top 10 shareholders with
unrestricted tradable shares in share lending activities within the refinancing business
□ Applicable□Not applicable
Changes from the previous period caused by the top 10 shareholders and the top 10 shareholders with unrestricted 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 unrestricted ordinary shares have not
performed the agreed repurchase transactions during the reporting period.
2. Controlling shareholder of the Company
Nature of controlling shareholder: local state-owned holding
Type of controlling shareholder: legal person
Legal
Name of controlling representative/ Date of
Organization code Main business
shareholder person in establishment
charge
Investment in the development of industries
(specific projects will be declared
separately); investment in the development
of the tourism industry; real estate
Shenzhen Special development and operation; domestic trade
Economic Zone and material supply and marketing
Zhang Junlin June 20 1982 91440300192194195C
Development Group (excluding monopoly exclusive control and
Co. Ltd. monopolized commodities); 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 a 36.18% equity stake in Shenzhen SDG Information Co. Ltd. (stock abbreviation: SDG
companies Information) and indirectly holding a 1.10% equity stake in SDG Information through Hanseco Sanho Co.
69Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
controlled and Ltd.;
participated in by 2. Holding 47.78% equity of Shenzhen SDG Service Co. Ltd. (stock abbreviation: SDG Service) and
the controlling indirectly holding 0.98% equity of SDG Service through Shenzhen SDG Investment;
shareholder during 3. Holding 8.11% equity of Shenzhen Microgate Technology Co. Ltd. (stock abbreviation: Microgate
the reporting period Technology) and controlling 13.17% equity of Microgate Technology through Shenzhen Capital Fortune
Electronic Information Investment Enterprise (Limited Partnership).
4. Holding a 0.48% equity stake in Sichuan Xinjinlu Group Co. Ltd. (stock abbreviation: Xinjinlu).
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 controller 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 controller representative/p Date of establishment Organization code Main business
erson in charge
Perform the investor's
State-owned Assets
responsibilities on behalf of
Supervision and Management
the state and supervise and
Commission of Shenzhen Yang Jun April 2 2004 11440300K317280672
manage state-owned assets
Municipal People's
authorized for supervision
Government
under law.Equity of other domestic and
foreign listed companies
controlled by the actual N/A
controller during the
reporting period
Changes in actual controller during the reporting period
□ Applicable□Not applicable
During the reporting period the Company had no change in the actual controller.Block diagram of property rights and the control relationship between the Company and the actual controller
70Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The commercial registration change procedures for the non-compensatory transfer of the 39.6875% equity stake in SDG Group
held by Shenzhen SASAC to SIHC have not yet been completed.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 on the reduction of shares held by the 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
V. Preferred Shares
□ Applicable□Not applicable
During the reporting period the Company had no preferred shares.
71Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VII Bond-related Information
□ Applicable□Not applicable
72Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Section VIII Financial Report
I. Auditor's Report
Type of auditor's opinion Standard unqualified opinion
Signing date of the auditor's report April 20 2026
Grant Thornton Certified Public Accountants (Special General
Name of audit institution
Partnership)
Auditor's report no. GTCNSZ（2026）NO.441A014371
Name of CPA Wu Liang Xiao Na
Text of the Auditor's Report
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 2025 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 2025 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 2025 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 Auditing Standards for Certified Public Accountants of
China. The section in the Auditor's Report titled "CPAs' Responsibilities for the Audit of the Financial
Statements" further describes our responsibilities under these standards(where applicable). In accordance with
the independence requirements for public interest entities stipulated in the Code of Ethics for Chinese Certified
Public Accountants and the Independence Standards for Chinese Certified Public Accountants we are
independent of Tellus and 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 significant 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.(I) Revenue Recognition
73Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
See Notes III. 25 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 2025 the operating revenue of Tellus reached RMB 1.462 billion a decrease of 44.08%
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) By asking the management checking the sales contract and analyzing the point of transfer of control
related to revenue recognition the appropriateness of the specific method of revenue recognition of the
Company can be evaluated.
(3) Implement analysis procedures for operating income including monthly revenue and gross profit
margin fluctuation analysis for the current period comparative analysis of revenue price and gross profit
margin of major products and services with the same period last year and comparative analysis with listed
companies in the same industry.
(4) Select the main customer confirmation of sales in the current period; for the samples without reply
check the sales contract check the post-period paymentinvoice and receipt support documents to verify the
authenticity of transactions.
(5) Select test samples and check supporting documents related to revenue recognition in the current year
including lease contracts and invoices related to lease business as well as sales contracts sales orders invoices
warehouse delivery notes settlement statements and customer acknowledgment receipts etc. to check whether
revenue recognition is accurate.
(6) Perform the cut-off test check the operating income confirmed before and after the balance sheet date
with supporting documents such as invoices commodity sales orders delivery notes and customer receipt notes
74Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
and evaluate whether the operating income is recognized in the appropriate period.
(7) Check the industrial and commercial information of new customers customers with large sales
changes in the current period and their related parties and check whether there are unidentified potential related
party relationships and transactions.(II) Recognition of Investment Properties Fixed Assets and Their Book Values
For details of relevant disclosures please refer to Notes III.15 III.16 V.14 and V.15 to the financial
statements.
1. Matter description
As of December 312025 the value of investment real estate and fixed assets surface of the Teli Company
is 1115777464.99 yuan accounting for 42.10% of the total assetswhich is material to the financial statements.The book value of investment real estate and fixed assets involves significant management judgment including
the economic usable life and residual value rate of fixed assets and investment real estate. Since the evaluation
of the book value of investment real estate and fixed assets involves the significant judgment of the
management and its importance to the consolidated financial statements we determine the book value of
investment real estate and fixed assets as the key audit matters.
2. Audit response
The audit procedures we performed in respect of the recognition of the carrying amounts of investment
property and property plant and equipment mainly include:
(1) Understand the key internal controls related to the existence integrity and accuracy of investment real
estate and fixed assets evaluate the design of these internal controls determine whether they are implemented
and test the operation effectiveness of relevant internal controls;
(2) Spot check the purchase contract payment documents invoices acceptance documents and other
materials of large assets;
(3) To evaluate whether the management is reasonable to evaluate the usable life and net residual value of
investment real estate and fixed assets;
(4) Obtain the ownership certificates of investment property and property plant and equipment as well as
75Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the Company’s inventory count sheets perform inventory count procedures physically inspect the usage status
of investment property and property plant and equipment and assess whether there are any indicators of
impairment by combining the leasing and usage conditions of investment property and property plant and
equipment with the real estate market conditions.
(5) Obtain the depreciation plan table of investment real estate and fixed assets and recalculate whether
the depreciation plan is accurate;
(6) Check whether the information related to the investment real estate and fixed assets has been 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 2025 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
The management is responsible for the preparation and fair presentation of the financial statements in
accordance with the ASBE 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.
76Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 it 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 the aggregate they could reasonably
be expected to influence the economic decisions users would take based on 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 of the financial statements whether due to fraud
or error design and perform audit procedures responsive to those risks and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of 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 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 regarding the financial information of the entities or
business activities in Tellus to express an opinion on the financial statements. We are responsible for directing
supervising and performing the audit of the Group and assume full responsibility for our auditor's opinion.We communicate with those charged with governance regarding among other matters the planned scope
and timing of the audit and significant audit findings including any significant deficiencies in internal control
that we identify during our audit.
77Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
We have also provided the governance with a statement regarding compliance with ethical requirements
related to independence and communicated with the governance about all relationships and other matters that
could reasonably be considered to affect our independence as well as related precautions (if applicable).From the matters communicated with the governance we determine which items are most important to
the audit of the financial statements for the current period and thus constitute a key audit matter. We have
described these matters in the auditor's report except that they are prohibited from being publicly disclosed as
per the laws and regulations or in the rare cases if a negative result that may be caused by communicating
some matter in the auditor's report as reasonably expected exceeds the benefit generated by the public interest
we determine not to communicate such matter in the auditor's 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 2025
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash at bank and on hand 149229156.85 377971359.69
Settlement reserve fund
Loans to banks and other financial
institutions
Held-for-trading financial assets 117410631.65 165630834.06
Derivative financial assets 292078.00
Notes receivable 0.00 0.00
Accounts receivable 61009891.79 46564067.14
Receivables financing
Advances to suppliers 842625.42 797409.91
Premiums receivable
Reinsurance premium receivable
Reinsurance contract reserves
receivable
Other receivables 49405335.51 8081783.33
Including: interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 59657540.72 127432191.55
Including: data resources
Contract assets
78Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Held-for-sale assets
Non-current assets due within one year 87268498.36 91587627.94
Other current assets 19312300.83 96743827.38
Total current assets 544135981.13 915101179.00
Non-current assets:
Loans and advances
Debt investments
Other debt investments 573849427.40 84724128.76
Long-term receivables
Long-term equity investments 94475900.97 85091833.20
Other equity instrument investments
Other non-current financial assets
Investment properties 1053907083.65 1099772133.10
Fixed assets 61870381.34 70763683.25
Construction in progress 5111882.70 3332141.19
Bearer biological assets
Oil and gas assets
Right-of-use assets 77920830.56 78558005.50
Intangible assets 3062429.09 3775834.45
Including: data resources
Development expenditure
Including: data resources
Goodwill
Long-term deferred expenses 34117850.87 48095409.37
Deferred income tax assets 6399715.44 5496778.78
Other non-current assets 195306959.38 199748111.29
Total non-current assets 2106022461.40 1679358058.89
Total assets 2650158442.53 2594459237.89
Current liabilities:
Short-term borrowings 11002344.41 120101444.43
Borrowings from the central bank
Placements from banks and other
financial institutions
Held-for-trading financial liabilities
Derivative financial liabilities 2702318.10 46660.00
Notes payable 180000000.00 110000000.00
Accounts payable 109353384.05 125555693.13
Advances from customers 8222394.47 9469503.75
Contract liabilities 3604150.70 4009504.59
Financial assets sold under agreements
to repurchase
Customer bank deposits and due to
banks and other financial institutions
79Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Customer brokerage deposits
Securities underwriting brokerage
deposits
Employee compensation payable 42283881.13 36835623.94
Taxes payable 29059082.08 36109740.02
Other payables 139483702.52 126312280.55
Including: interests payable
Dividends payable
Handling charges and commissions
payable
Dividend payable for reinsurance
Held-for-sale liabilities
Non-current liabilities due within one
10581548.928674869.40
year
Other current liabilities 2214225.00 6142814.36
Total current liabilities 538507031.38 583258134.17
Non-current liabilities:
Insurance contract reserves
Long-term loans
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 75441810.38 76541985.55
Long-term payables 3920160.36 3920160.36
Long-term employee compensation
payable
Provisions 9956800.00
Deferred income 6057271.67 7837477.60
Deferred income tax liabilities 20155522.20 25175508.48
Other non-current liabilities
Total non-current liabilities 115531564.61 113475131.99
Total liabilities 654038595.99 696733266.16
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 -7606040.90
Special reserves
Surplus reserves 92661110.16 74222656.99
General risk provision
Undistributed profits 879664677.57 798343284.97
Total equity attributable to owners of the
1826644475.331726884629.56
parent company
Minority shareholders' equity 169475371.21 170841342.17
80Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Total owners' equity 1996119846.54 1897725971.73
Total liabilities and owner's equity 2650158442.53 2594459237.89
Legal representative: Fu Chunlong Person in charge of accounting: Huang Tianyang Person in charge of the accounting firm:
Huang Tianyang
2. Parent company's balance sheet
Unit: RMB
Item Ending balance Beginning balance
Current assets:
Cash at bank and on hand 5557917.51 25182064.77
Held-for-trading financial assets 121340400.00
Derivative financial assets
Notes receivable
Accounts receivable 10650313.31 19714030.82
Receivables financing
Advances to suppliers 239474.02 96692.05
Other receivables 3711404.11 2839370.67
Including: interest receivable
Dividends receivable
Inventories
Including: data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 65398799.73 91587627.94
Other current assets 6580651.56 51886807.24
Total current assets 92138560.24 312646993.49
Non-current assets:
Debt investments
Other debt investments 375653749.58 63517795.43
Long-term receivables
Long-term equity investments 808086675.38 798702607.61
Other equity instrument investments
Other non-current financial assets
Investment properties 514855019.83 530187087.36
Fixed assets 11608977.55 13330517.88
Construction in progress 1986361.94 1986361.94
Bearer biological assets
Oil and gas assets
Right-of-use assets 72189070.86 81973406.34
Intangible assets 1388001.07 2203851.20
Including: data resources
Development expenditure
Including: data resources
81Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Goodwill
Long-term deferred expenses 18589616.08 20931913.29
Deferred income tax assets
Other non-current assets 19429987.73 26969339.66
Total non-current assets 1823787460.02 1539802880.71
Total assets 1915926020.26 1852449874.20
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 46372187.13 59250518.21
Advances from customers 511330.64 1118873.69
Contract liabilities
Employee compensation payable 35385505.68 30927714.69
Taxes payable 12741797.74 21432181.88
Other payables 71087817.06 120275555.64
Including: interests payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due within one
9188883.178212093.33
year
Other current liabilities 685494.59 1609232.42
Total current liabilities 175973016.01 242826169.86
Non-current liabilities:
Long-term loans
Bonds payable
Including: preferred shares
Perpetual bonds
Lease liabilities 71397113.71 80617189.54
Long-term payables
Long-term employee compensation
payable
Provisions
Deferred income
Deferred income tax liabilities 5459612.17 7188936.09
Other non-current liabilities
Total non-current liabilities 76856725.88 87806125.63
Total liabilities 252829741.89 330632295.49
Owners' equity:
Share capital 431058320.00 431058320.00
Other equity instruments
Including: preferred shares
Perpetual bonds
82Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Capital reserves 428256131.23 428256131.23
Less: treasury shares
Other comprehensive income -7632462.90 -7632462.90
Special reserves
Surplus reserves 92661110.16 74222656.99
Undistributed profits 718753179.88 595912933.39
Total owners' equity 1663096278.37 1521817578.71
Total liabilities and owner's equity 1915926020.26 1852449874.20
3. Consolidated income statement
Unit: RMB
Item Year 2025 Year 2024
I. Total operating income 1461603400.53 2613678204.37
Including: operating revenue 1461603400.53 2613678204.37
Interest income
Premium earned
Handling charges and
commission income
II. Total operating cost 1305050163.50 2473190056.25
Including: operating cost 1212036648.67 2376764300.06
Interest expenses
Handling charges and
commission expenses
Surrenders
Net payments for insurance
claims
Net provision for insurance
contract reserves
Policy dividend expenses
Reinsurance expenses
Taxes and surcharges 10972011.00 13172648.28
Selling expenses 15669036.29 22232680.89
Administrative expenses 58791177.35 51362592.45
R&D expenses 3098228.24 3268819.88
Financial expenses 4483061.95 6389014.69
Including: interest expenses 6563081.07 9096305.49
Interest income 2571339.77 2984792.54
Add: other income 2309127.32 6597836.15
Investment income (loss to be
17211942.1519470482.47
listed with "-")
Including: income from
investment in associates and joint 30249513.09 24212981.63
ventures
Income from
derecognition of financial assets
measured at amortized cost
83Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Exchange income (loss to be
listed with "-")
Net exposure hedging income
(loss to be listed with "-")
Income from fair value changes
-2732268.58-10567743.62
(loss to be listed with "-")
Credit impairment loss (loss to be
-1080621.265596513.26
listed with "-")
Asset impairment loss (loss to be
-84463.30
listed with "-")
Income from assets disposal (loss
-7087.09-227.20
to be listed with "-")
III. Operating profit (loss to be listed
172169866.27161585009.18
with "-")
Add: non-operating income 13030508.37 3900953.07
Less: non-operating expenses 10137861.33 2195959.84
IV. Total profit (total loss to be listed
175062513.31163290002.41
with "-")
Less: income tax expenses 33562806.50 24258270.37
V. Net profit (net loss to be listed with "-
141499706.81139031732.04
")
(I) Classified by continuity of
operation
1. Net profit from continuing
141499706.81139031732.04
operations (net loss to be listed with "-")
2. Net profit from discontinued
operations (net loss to be listed with "-")
(II) Classified by ownership
1. Net profit attributable to the
142865677.77136629870.80
parent company's shareholders
2. Minority shareholders' profit and
-1365970.962401861.24
loss
VI. Net after-tax amount of other
-287488.25
comprehensive income
Net after-tax amount of other
comprehensive income attributable to the -287488.25
owner of the parent company
(I) Other comprehensive income
that cannot be reclassified into profit or -287488.25
loss
1. Changes arising from
remeasurement 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
-287488.25
investments in other equity instruments
4. Changes in the fair value of the
Company's credit risk
5. Others
(II) Other comprehensive income to
be reclassified into profit or loss
84Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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. Financial assets reclassified
and accrued into other comprehensive
income
4. Credit impairment provision of
other debt investment
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 shareholders
VII. Total comprehensive income 141499706.81 138744243.79
Total comprehensive income
attributable to the owner of the parent 142865677.77 136342382.55
company
Total comprehensive income
-1365970.962401861.24
attributable to minority shareholders
VIII. Earnings per share
(I) Basic earnings per share 0.3314 0.3170
(II) Diluted earnings per share 0.3314 0.3170
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:
Huang Tianyang
4. Parent company's income statement
Unit: RMB
Item Year 2025 Year 2024
I. Operating revenue 117402423.15 118323197.59
Less: operating cost 53554271.59 51537706.69
Taxes and surcharges 1668852.43 1711412.68
Selling expenses 1294836.49 3339658.26
Administrative expenses 45160833.87 42011001.83
R&D expenses
Financial expenses 2936217.17 1410770.64
Including: interest expenses 3075790.53 2904506.30
Interest income 156575.30 1598304.15
Add: other income 215922.09 73023.60
Investment income (loss to be
173267700.81103747991.59
listed with "-")
Including: income from
investment in associates and joint 29384067.77 23580345.63
ventures
85Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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
-1096618.04-12693036.25
(loss to be listed with "-")
Credit impairment loss (loss to be
-59471.13-305769.74
listed with "-")
Asset impairment loss (loss to be
listed with "-")
Income from assets disposal (loss
-32362.39
to be listed with "-")
II. Operating profit (loss to be listed with
185082582.94109134856.69
“-”)
Add: non-operating income 1777508.98 1187007.86
Less: non-operating expenses 788792.71
III. Total profit (total loss to be listed
186860091.92109533071.84
with "-")
Less: income tax expenses 2475560.26 6869366.57
IV. Net profit (net loss to be listed with
184384531.66102663705.27
"-")
(I) Net profit from going concern (net
184384531.66102663705.27
loss to be listed with "-")
(II) Net profit from discontinued
operations (net loss to be listed with "-")
V. Net after-tax amount of other
-287488.25
comprehensive income
(I) Other comprehensive income
that cannot be reclassified into profit or -287488.25
loss
1. Changes arising from
remeasurement 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
-287488.25
investments in other equity instruments
4. Changes in the fair value of the
Company's 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. Financial assets reclassified
and accrued into other comprehensive
income
86Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
4. Credit impairment provision of
other debt investment
5. Reserves for cash flow hedge
6. Translation differences arising
from the financial statements of foreign
currency
7. Others
VI. Total comprehensive income 184384531.66 102376217.02
VII. Earnings per share
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: RMB
Item Year 2025 Year 2024
I. Cash flow from operating activities:
Cash received from sales of goods or
1930502946.374572552357.58
rendering of labor services
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 placements from other
financial institutions
Cash received from receiving
premiums of original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits and
investments from policyholders
Cash received from interests handling
charges and commissions
Net increase in placements from banks
and other financial institutions
Net increase in repurchase business
funds
Net amount of cash received from
acting trading securities
Refund of taxes received 13271889.24
Other cash received relating to
124013418.4276743352.97
operating activities
Subtotal of cash inflows from operating
2054516364.794662567599.79
activities
Cash paid for the purchase of goods
1457946198.614066869141.07
and receipt of services
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
87Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Net increase in loans to banks and
other financial institutions
Cash paid for interests handling
charges and commissions
Cash paid for policy dividends
Cash paid to and for employees 52052045.52 50261809.42
Taxes and surcharges paid 74306269.36 75339841.21
Other cash paid relating to operating
142457953.4279807994.24
activities
Subtotal of cash outflows from operating
1726762466.914272278785.94
activities
Net cash flows from operating activities 327753897.88 390288813.85
II. Cash flows from investing activities:
Cash received from disposal of
929974150.16820139644.49
investments
Cash received from investment
32897358.1515712636.00
income
Net cash received from disposal of
fixed assets intangible assets and other 59529.93 1974.82
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to
5964034.76
investing activities
Subtotal of cash inflows from investing
962931038.24841818290.07
activities
Cash paid to acquire fixed assets
intangible assets and other long-term 23923091.80 34257817.98
assets
Cash paid for investments 1311058482.50 985536930.32
Net increase in pledge loans
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid relating to investing
10561808.0014659543.80
activities
Subtotal of cash outflows from investing
1345543382.301034454292.10
activities
Net cash flows from investing activities -382612344.06 -192636002.03
III. Cash flows from financing activities:
Cash received from absorbing
investment
Including: cash received by
subsidiaries from absorbing investments
of minority shareholders
Cash received from borrowings 64500000.00 415000000.00
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
64500000.00415000000.00
activities
Cash paid for repayment of debts 173500000.00 440000000.00
Cash paid for distribution of
45344739.1919419827.42
dividends profits or interest repayment
Including: dividends and profits paid
by subsidiaries to minority shareholders
Cash paid relating to other financing
13692202.7312180403.46
activities
88Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Subtotal of cash outflows from financing
232536941.92471600230.88
activities
Net cash flows from financing activities -168036941.92 -56600230.88
IV. Effect of exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash
-222895388.10141052580.94
equivalents
Add: beginning balance of cash and
301275968.63160223387.69
cash equivalents
VI. Ending balance of cash and cash
78380580.53301275968.63
equivalents
6. Parent company's cash flow statement
Unit: RMB
Item Year 2025 Year 2024
I. Cash flow from operating activities:
Cash received from sales of goods or
134928536.63131659527.09
rendering of labor services
Refund of taxes received
Other cash received relating to
21034856.33110406614.70
operating activities
Subtotal of cash inflows from operating
155963392.96242066141.79
activities
Cash paid for the purchase of goods
19524973.1628450836.37
and receipt of services
Cash paid to and for employees 35628808.05 32839148.01
Taxes and surcharges paid 18038709.57 9851486.55
Other cash paid relating to operating
62714011.72144407205.44
activities
Subtotal of cash outflows from operating
135906502.50215548676.37
activities
Net cash flows from operating activities 20056890.46 26517465.42
II. Cash flows from investing activities:
Cash received from disposal of
362474150.16492856726.33
investments
Cash received from investment
147997580.3315000000.00
income
Net cash received from disposal of
fixed assets intangible assets and other 3325.01
long-term assets
Net cash received from disposal of
subsidiaries and other business units
Other cash received relating to
47180211.11
investing activities
Subtotal of cash inflows from investing
510475055.50555036937.44
activities
Cash paid to acquire fixed assets
intangible assets and other long-term 18841201.56 22657919.30
assets
Cash paid for investments 475961468.80 512236930.32
Net cash paid for acquisition of
subsidiaries and other business units
Other cash paid relating to investing
6400000.00
activities
Subtotal of cash outflows from investing 494802670.36 541294849.62
89Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
activities
Net cash flows from investing activities 15672385.14 13742087.82
III. Cash flows from financing activities:
Cash received from absorbing
investment
Cash received from borrowings
Other cash received relating to
financing activities
Subtotal of cash inflows from financing
activities
Cash paid for repayment of debts
Cash paid for distribution of
43105832.0013408159.80
dividends profits or interest repayment
Cash paid relating to other financing
12247590.8610474541.74
activities
Subtotal of cash outflows from financing
55353422.8623882701.54
activities
Net cash flows from financing activities -55353422.86 -23882701.54
IV. Effect of exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash
-19624147.2616376851.70
equivalents
Add: beginning balance of cash and
25182064.778805213.07
cash equivalents
VI. Ending balance of cash and cash
5557917.5125182064.77
equivalents
7. Consolidated statement of changes in owners' equity
Amount in the current period
Unit: RMB
Year 2025
Owners' equity attributable to the parent company
Other equity instruments Other MinorityItem TotalLess: General Undistrib sharehold
Share Capital comprehe Special Surplus
treasury risk uted Others Subtotal ers'
owners'
capital Preferred Perpetual Others reserves nsive reserves reserves equity equity
shares bonds shares provision profitsincome
I. Ending
balance -
431058430866742226798343172688170841189772
of the 760604
320.00408.5056.99284.974629.56342.175971.73
previous 0.90
year
Add
: changes
in
accountin
g policies
C
orrection
of prior
errors
O
thers
90Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
II.Beginnin
-
g balance 431058 430866 742226 798343 172688 170841 189772
760604
of the 320.00 408.50 56.99 284.97 4629.56 342.17 5971.73
0.90
current
year
III.Increase/
decrease
in the
-
current 184384 813213 997598 983938
136597
period 53.17 92.60 45.77 74.81
0.96
(decrease
to be
listed
with "-")
(I) Total
-
comprehe 142865 142865 141499
136597
nsive 677.77 677.77 706.81
0.96
income
(II)
Capital
invested
and
decreased
by
owners
1.
Ordinary
shares
contribut
ed by the
owner
2. Capital
contribut
ed by the
holders
of other
equity
instrume
nts
3.
Amounts
of share-
based
payments
included
in
owner's
equity
4. Others
(III) - - -184384
Profit 615442 431058 43105853.17
distributi 85.17 32.00 32.00
91Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
on
1.
Appropri -
184384
ation to 184384
53.17
surplus 53.17
reserve
2.
Appropri
ation to
general
risk
provision
3.
Distributi
on to - - -
owners 431058 431058 431058
(or 32.00 32.00 32.00
sharehold
ers)
4. Others
(IV)
Internal
carryover
of
owners'
equity
1. Capital
(or share
capital)
transferre
d from
capital
reserves
2. Capital
(or share
capital)
transferre
d from
surplus
reserves
3.
Surplus
reserves
to cover
losses
4.
Retained
earnings
carried
forward
from
changes
in the
defined
92Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
benefit
plan
5.
Retained
earnings
carried
forward
from
other
comprehe
nsive
income
6. Others
(V)
Special
reserves
1.
Appropri
ation in
the
current
period
2.
Utilizatio
n in the
current
period
(VI)
Others
IV.Ending
-
balance 431058 430866 926611 879664 182664 169475 199611
760604
of the 320.00 408.50 10.16 677.57 4475.33 371.21 9846.54
0.90
current
period
Amount in the previous period
Unit: RMB
Year 2024
Owners' equity attributable to the parent company
Minority
Item Other equity instruments Other TotalLess: General Undistrib sharehold
Share Capital comprehe Special Surplus owners'
Preferred Perpetual treasury risk uted Others Subtotal ers'capital Others reserves nsive reserves reserves equity
shares bonds shares provision profits equityincome
I. Ending
balance -
431058430866639562685342160390127166173107
of the 731855
320.00408.5086.46592.625054.93863.091918.02
previous 2.65
year
Add
: changes
in
accountin
93Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
g policies
C
orrection
of prior
errors
O
thers
II.Beginnin
-
g balance 431058 430866 639562 685342 160390 127166 173107
731855
of the 320.00 408.50 86.46 592.62 5054.93 863.09 1918.02
2.65
current
year
III.Increase/
decrease
in the
-
current 102663 113000 122979 436744 166654
287488.
period 70.53 692.35 574.63 79.08 053.71
25
(decrease
to be
listed
with "-")
(I) Total
-
comprehe 136629 136342 240186 138744
287488.
nsive 870.80 382.55 1.24 243.79
25
income
(II)
Capital
invested
and
decreased
by
owners
1.
Ordinary
shares
contribut
ed by the
owner
2. Capital
contribut
ed by the
holders
of other
equity
instrume
nts
3.
Amounts
of share-
based
payments
included
94Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
in
owner's
equity
4. Others
(III)
---
Profit 102663
236291133628133628
distributi 70.53
78.4507.9207.92
on
1.
Appropri -
102663
ation to 102663
70.53
surplus 70.53
reserve
2.
Appropri
ation to
general
risk
provision
3.
Distributi
on to - - -
owners 133628 133628 133628
(or 07.92 07.92 07.92
sharehold
ers)
4. Others
(IV)
Internal
carryover
of
owners'
equity
1. Capital
(or share
capital)
transferre
d from
capital
reserves
2. Capital
(or share
capital)
transferre
d from
surplus
reserves
3.
Surplus
reserves
to cover
losses
4.
Retained
95Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
earnings
carried
forward
from
changes
in the
defined
benefit
plan
5.
Retained
earnings
carried
forward
from
other
comprehe
nsive
income
6. Others
(V)
Special
reserves
1.
Appropri
ation in
the
current
period
2.
Utilizatio
n in the
current
period
(VI) 412726 412726
Others 17.84 17.84
IV.Ending
-
balance 431058 430866 742226 798343 172688 170841 189772
760604
of the 320.00 408.50 56.99 284.97 4629.56 342.17 5971.73
0.90
current
period
8. Statement of changes in owners' equity of parent company
Amount in the current period
Unit: RMB
Year 2025
Other equity instruments
Item Less: Other TotalShare Capital Special Surplus Undistribut
capital Preferred Perpetual
treasury comprehens Others owners'
Others reserves reserves reserves ed profits
shares bonds shares ive income equity
I. Ending 43105832 42825613 - 74222656. 59591293 15218175
96Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
balance of 0.00 1.23 7632462.9 99 3.39 78.71
the 0
previous
year
Add:
changes in
accounting
policies
C
orrection of
prior errors
O
thers
II.Beginning -
431058324282561374222656.5959129315218175
balance of 7632462.9
0.001.23993.3978.71
the current 0
year
III.Increase/de
crease in
the current 18438453. 12284024 14127869
period 17 6.49 9.66
(decrease to
be listed
with "-")
(I) Total
1843845318438453
comprehens
1.661.66
ive income
(II) Capital
invested
and
decreased
by owners
1. Ordinary
shares
contributed
by the
owner
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amounts
of share-
based
payments
included in
owner's
equity
4. Others
97Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
--
(III) Profit 18438453.
61544285.43105832.
distribution 17
1700
1.
Appropriati -
18438453.
on to 18438453.
17
surplus 17
reserve
2.
Distribution
--
to owners
43105832.43105832.
(or
0000
shareholder
s)
3. Others
(IV)
Internal
carryover
of owners'
equity
1. Capital
(or share
capital)
transferred
from capital
reserves
2. Capital
(or share
capital)
transferred
from
surplus
reserves
3. Surplus
reserves to
cover losses
4. Retained
earnings
carried
forward
from
changes in
the defined
benefit plan
5. Retained
earnings
carried
forward
from other
comprehens
ive income
6. Others
(V) Special
reserves
98Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
1.
Appropriati
on in the
current
period
2.
Utilization
in the
current
period
(VI) Others
IV. Ending
-
balance of 43105832 42825613 92661110. 71875317 16630962
7632462.9
the current 0.00 1.23 16 9.88 78.37
0
period
Amount in the previous period
Unit: RMB
Year 2024
Other equity instruments
Item Less: Other TotalShare Capital Special Surplus Undistribut
capital Preferred Perpetual
treasury comprehens Others owners'
Others reserves reserves reserves ed profits
shares bonds shares ive income equity
I. Ending
balance of -
431058324282561363956286.5168784014328041
the 7344974.6
0.001.23466.5769.61
previous 5
year
Add:
changes in
accounting
policies
C
orrection of
prior errors
O
thers
II.Beginning -
431058324282561363956286.5168784014328041
balance of 7344974.6
0.001.23466.5769.61
the current 5
year
III.Increase/de
crease in
the current 10266370. 79034526. 89013409.-287488.25
period 53 82 10
(decrease to
be listed
with "-")
(I) Total
1026637010237621
comprehens -287488.25
5.277.02
ive income
99Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(II) Capital
invested
and
decreased
by owners
1. Ordinary
shares
contributed
by the
owner
2. Capital
contributed
by the
holders of
other equity
instruments
3. Amounts
of share-
based
payments
included in
owner's
equity
4. Others
--
(III) Profit 10266370.
23629178.13362807.
distribution 53
4592
1.
Appropriati -
10266370.
on to 10266370.
53
surplus 53
reserve
2.
Distribution
--
to owners
13362807.13362807.
(or
9292
shareholder
s)
3. Others
(IV)
Internal
carryover
of owners'
equity
1. Capital
(or share
capital)
transferred
from capital
reserves
2. Capital
(or share
capital)
transferred
100Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
from
surplus
reserves
3. Surplus
reserves to
cover losses
4. Retained
earnings
carried
forward
from
changes in
the defined
benefit plan
5. Retained
earnings
carried
forward
from other
comprehens
ive income
6. Others
(V) Special
reserves
1.
Appropriati
on in the
current
period
2.
Utilization
in the
current
period
(VI) Others
IV. Ending
-
balance of 43105832 42825613 74222656. 59591293 15218175
7632462.9
the current 0.00 1.23 99 3.39 78.71
0
period
III. Company Profile
Shenzhen Tellus Holding Co. Ltd. (hereinafter referred to as "the Company") is a limited liability company
registered in the 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 of
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 the Shenzhen Municipal People's Government.The Company currently holds a business license with a unified social credit code of 91440300192192210U a
registered capital of RMB 431058320.00 and a total of 431058320 shares including 392778320 A shares
and 38280000 B shares without trading restrictions. 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.
101Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 the 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 the 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 bonus issue of shares 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 bonus issue of shares and transfer.
According to the resolution of the 4th Extraordinary General Meeting of Shareholders of the Company in 2014
upon the approval from the Reply to the Approval of Non-public Offering of Shares by Shenzhen Tellus Holding
Co. Ltd. (ZJXK [2015] No. 173) issued by the CSRC 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.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.
Registered address: 3F Tellus Building No. 56 2nd Shuibei Road Luohu District Shenzhen
Headquarters address: 3F Tellus Building No. 56 2nd Shuibei Road Luohu District Shenzhen
Main business activities: Property leasing and services jewelry operations etc.The financial statements and notes to the financial statements were approved by the Eighteenth Meeting of the
Tenth Board of Directors of the Company on April 20 2026.
102Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
IV. Preparation Basis of Financial Statements
1. Preparation basis
The Company prepared the financial statements in accordance with the 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 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 (2023 Revision) issued by the CSRC.
2. Going concern
The financial statements have been prepared on the going concern basis.V. Significant Accounting Policies and Accounting Estimates
Notes to specific accounting policies and accounting estimates:
The Company has determined its criteria for depreciation of investment properties depreciation of fixed assets
and revenue recognition policies based on its own production and operation characteristics. For specific
accounting policies please refer to Note V. 14 Note V. 15 Note V. 23 and Note V. 26.
1. Statement of compliance with the ASBE
The financial statements prepared by the Company met the requirements of the ASBE and truly and fully
reflected the consolidated and Company's financial position as of December 31 2025 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.
3. Business cycle
The business cycle of the Company is 12 months.
4. Recording currency
The Company and its domestic subsidiaries take RMB as the recording currency. The Company uses RMB to
prepare the financial statements.
5. Method and basis for determination of materiality
□Applicable □ Not applicable
Item Materiality criteria
103Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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
The budget amount for a single project is ≥ RMB
Significant construction in progress
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
The budget amount for a single project is ≥ RMB
Significant construction in progress
20000000.00
The book value of long-term equity investment in a single
investee is more than RMB 15 million or the profit or 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 methods for business merger 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
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.
104Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(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 are recognized as per 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 services assessment and consultation and other administrative expenses
incurred shall be included in the current profit or loss when incurred during the business mergers. The
transaction expenses of equity securities or debt securities issued as merger consideration shall be included in
the initially recognized amount of equity securities or debt securities.
7. Determination of control and preparation of consolidated financial statements
(1) Judgment standard for control
The consolidation scope of the 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 the amount of return by using its power over
the investee. 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.
105Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(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 the 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 merger 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 a subsidiary or business that increased due to a business merger not under common control during the
reporting period the revenue expense and profit of such subsidiary or business from the purchase date to the
end of the reporting period shall be included in the consolidated income statement and its 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 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 shareholders' 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
106Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 operations and joint ventures.
(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.The Company recognizes the following items related to the quantum of interest in joint operations and carries
out accounting treatment per the 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. Recognition criteria of 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 transactions and translation of foreign currency statements
Foreign currency transactions of the Company are translated into the recording 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
107Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
balance sheet date and that at initial recognition or on the previous balance sheet date shall be included in
current profit or 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 the
current profit or loss or other comprehensive income according to the nature of the non-monetary items.
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 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 to collect 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 model 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 through 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 measured 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
108Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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:
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 and loss at derecognition amortization using the effective interest method or recognition of
impairment.Financial assets measured at fair value through other comprehensive income
The Company classifies financial assets that meet the following conditions and are not designated to be
financial assets measured at fair value through profit or loss as financial assets measured at fair value through
other comprehensive income:
The Company manages the financial asset in a business model 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 the 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 the
current profit and loss and other gains or losses are included in other comprehensive income. At derecognition
cumulative gains or losses previously included in other comprehensive income are transferred out from the
other comprehensive income and charged to the current profit and loss.Financial assets measured 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 measured 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 through comprehensive income as the financial assets at fair value through profit
or loss.Such financial assets are subsequently measured at fair value after the initial recognition and the resulting gains
or losses (including interest and dividend revenue) are included in the current profit or 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 measured at fair value through other comprehensive income upon the initial recognition. Such
designation shall be made on the basis of individual investment and such investment must conform to the
definition of equity instrument from the issuer’s point of view.
109Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
After the 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 the 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 model of managing financial assets will all affected related
financial assets be reclassified on the first day of the first reporting period after the business model 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 the initial recognition. For financial liabilities
not classified as financial liabilities measured at fair value through profit or loss the transaction costs are
recognized in the initially recognized amount.Financial liabilities measured at fair value through profit or loss
Financial liabilities measured 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 the 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 expenses related to such financial liabilities shall be included in the
current profit or loss.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 the current profit or loss.Difference between financial liabilities and equity instruments
Financial liabilities refer to those that meet one of the following conditions:
110Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
* Contractual obligations to deliver cash or other financial assets to other parties.* Contractual obligations 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 do not comply with
the provisions of hedge accounting is directly included in the current profit or loss.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
Please refer to Note V. 11 for determination methods for fair values of financial assets and financial liabilities.
(6) Impairment of financial assets
111Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 measured at fair value through 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 continues to be 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 that are
weighted by the risk of default. 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.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 measures the expected credit losses of financial instruments at different stages. If the credit risk
of financial instruments has not increased significantly since the initial recognition it is in the first stage. The
Company measures the loss provision according to the expected credit loss in the next 12 months; if the credit
risk of a financial instrument has increased significantly since the 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 loss 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).
112Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 accounts receivable other receivables and contract assets 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.Notes receivable and accounts receivable
For notes receivable and accounts receivable regardless of whether there is a significant financing component
the Company always measures the loss provision according to the amount equivalent to the expected credit loss
over 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 portfolios
Accounts receivable portfolio 2: Jewelry sales business portfolio
For notes 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 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
113Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Other receivables portfolio 2: Portfolio of deposits and security deposits receivable
Other receivables portfolio 3: Portfolio of related party transactions within the consolidation scope
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.Debt investments and other debt investments
For debt investments and other debt 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 that 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 risks have increased
significantly on the basis of individual financial instruments or portfolios of financial instruments. When
evaluating based on portfolios of financial instruments the Company may classify 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:
The borrower is unlikely to pay in full what is owed to the Company. 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
114Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 through 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 the current profit or loss. 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 through 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 for related financial assets. This usually happens when the Company
determines that the debtor has no assets or sources of income to generate sufficient cash flow to repay the
amount to be written off. However according to the Company's procedures for recovering due amounts write-
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 or 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.
115Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 financial 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 Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — Industrial Information Disclosure for jewelry-related business.
12. Inventories
The Company shall abide by the disclosure requirements of the Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — Industrial Information Disclosure for jewelry-related business.
(1) Classification of inventories
Inventories of the Company mainly include raw materials goods in stock and hedged items.
(2) Valuation method for dispatched inventories
Inventories of the Company are priced by actual cost when acquired. Raw materials and inventory items are
valued using the first-in-first-out method when issued.
(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 made by inventory type.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 of the original provision.
(4) Inventory system
116Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company adopts the perpetual inventory system.
(5) Amortization methods for low-value consumables and packaging 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 acquired through a business merger: For long-term equity investment acquired
through a business merger under common control the book value share of owner's equity obtained from the
merged party in the consolidated financial statements of the ultimate controlling party shall be recognized as the
investment cost on the date of merger; for long-term equity investment acquired through a business merger not
under common control the merger cost shall be recognized as the investment cost of long-term equity
investment.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 the 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 the current profit or loss.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 the current profit or loss.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
117Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 before recognition per the Company's
accounting policies and the accounting period.If it can exert a significant influence or implement joint control over 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.Suppose the Company loses joint control over or significant influence on the investee due to the disposal of a
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 the current profit or loss. 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 the current profit or loss.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 the current profit or loss.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
the current profit or loss; 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 the impairment loss of transferred assets shall not be offset.
(3) Basis for determining joint control and significant influence on the investee
118Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Joint control refers to the sharing of control over certain arrangements under related agreements and the
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 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
the Company 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% (inclusive) 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% (exclusive) 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 use rights that have been rented the land use rights 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.
119Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Investment properties are measured subsequently as per the cost model. See Note V. 19 for the provision
method of asset impairment.The disposal income from the sale transfer discard or destruction of the investment properties shall be
included in the current profit or loss 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 service 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 the current profit or loss 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
Category Depreciation method Depreciation period Residual ratio
rate
Premises and buildings Straight-line method 10 35–40 0 3 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 and determined 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.
120Full Text of the 2025 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 asset 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 the
current profit or loss. 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 construction or production of
the asset qualifying for capitalization;
* Borrowing costs have 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. When the borrowing costs
occurring after the assets eligible for capitalization are available for intended use or sale they are recognized as
expenses based on the amount incurred upon the occurrence and included in the current profit and loss.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 borrowings.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 the current
profit or loss.
121Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 and trademarks.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 Servicelife Determination basis of service life
Amortization
method Remarks
Land use 50 years Legal right to use Straight-lineright 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 limited 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 the current profit or loss.See Note V. 19 for the provision method of asset 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 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 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.
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Expenditures at the research stage shall be included in the current profit or loss 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 the current profit or loss.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 and intangible assets
subsequently measured by the cost model (except for inventories and 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 the business merger 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 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 or 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 merger 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. The relevant asset
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groups or portfolios of asset groups are asset groups or portfolios of asset groups that can benefit from synergies
of a business combination and are 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 an impairment test shall be first conducted for asset groups or portfolios of asset groups that
do not contain goodwill to 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 shall 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 item cannot benefit the future accounting period
the amortized value of the item shall be included in the current profit or 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.
(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 and unemployment insurance.During the accounting period when employees provide services the amount payable calculated according to
the defined contribution plan is recognized as a liability and included in the current profit or loss or related asset
costs.Defined benefit plan
For defined benefit plans an independent actuary shall carry out an actuarial valuation on the annual balance
sheet date and determine the cost of providing benefits with the expected cumulative welfare unit method.
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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 to 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 benefit costs to be included in assets costs the
above items * and * shall be included by the Company in the current profit or loss; 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 the current
profit or loss: The Company cannot unilaterally withdraw 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 the current profit or loss 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
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 the current
profit or loss or the relevant asset costs.
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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 an 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. On 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 the recognized liabilities.
23. Revenue
Accounting policies of revenue disclosure recognition and measurement by business types
(1) General principles
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.
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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 can be expected to be compensated the revenues
shall be recognized according to the amount of costs incurred until the performance progress can be reasonably
recognized.For performance obligations performed at a certain time point the Company shall confirm the revenue at the
time point when the customer gains control rights of the relevant commodities 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.* 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 methods
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
Whether the Company is the principal responsible person or the agent in the transaction is determined by whether
the Company has control of the goods or services before the transfer to the customer. If the Company is able to
control the goods or services before the transfer of the goods or services to the customer the Company is the main
responsible person and the revenue is recognized on the basis of the total consideration received or receivable;
Otherwise the Company acting as agent recognizes revenue on the basis of the amount of the commission or
handling fee it is expected to be entitled to receive which is the net amount of the total consideration received or
receivable after deducting the price payable to other parties or on the basis of the amount or proportion of the
commission established etc.The company's gold jewelry sales mode is based on direct sales model supplemented
by commission sales. The main sales channels of direct sales include wholesalers e-commerce and direct store
retail. The timing of revenue recognition for each of the wholesalers e-commerce and direct store retail sales
models is as follows:
* Wholesale distributor sales refer to the purchasing party directly entering into cooperation with the company.The company recognizes revenue when control over the goods has transferred to the purchasing party as per the
sales contract completion obligation typically upon customer acceptance and issuance of a signed receipt
confirming the receipt of income. This constitutes performance obligations fulfilled at a specific point in time.
127Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
* E-commerce sales channels refer to the sale of goods through electronic commerce platforms. The company
recognizes sales revenue when the customer signs for receipt and payment has been received or the right to claim
payment has been obtained. This constitutes performance obligations fulfilled at a specific point in time.* Direct store retail refers to the sale of goods through owned properties and the Company recognizes sales
revenue when the goods are sold to customers and the payment is collected or the right to claim payment is
obtained. This constitutes performance obligations fulfilled at a specific point in time.* Commissioned consignment sales refer to transporting products to the consignee's stores. The company
recognizes revenue when the consignee sells the goods to the end consumers who then sign for receipt. Control
over the goods has transferred to the end consumers as the completion of the sales contract obligation and
revenue is recognized.The 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 Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — 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.The government subsidies considered 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 those that are acquired by the Company and used for acquiring
constructing 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
regarded as asset-related government subsidies while the rest are regarded as revenue-related government
128Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
subsidies. For the government subsidies that are difficult to differentiate the government subsidies as a whole
are regarded 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 or 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 or loss during the period when
the related costs or losses are recognized. Government subsidies measured at the nominal amount shall be
directly included in the current profit or loss. 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 the 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 the current profit or loss. In other cases they shall be
directly included in the current profit or loss.
25. Deferred income tax assets/deferred income tax liabilities
Income tax includes current income tax and deferred income tax. The income tax shall be included in the
current profit or loss as income tax expenses except that the deferred income taxes related to the adjustment of
goodwill due to business mergers 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.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 related to investments in subsidiaries joint ventures and associates the
time of reversal of the temporary difference can be controlled and likely the temporary difference will not be
reversed 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
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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 income 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 income tax assets and deferred income 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 liabilities on the balance
sheet date.On the balance sheet date the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable profits will not be available in future periods to deduct the benefit of the deferred income
tax assets the book value of the deferred income tax assets will be reduced. Any such reduction in amount is
reversed to the extent that it becomes probable that sufficient taxable income 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:
(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 liabilities are related to the income taxes levied by the same tax collection
agency on the same taxpayer within the Company.
26. Lease
(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 the
lease according to the unpaid lease payment on the commencement date of the lease term. If the interest rate
implicit in the 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
130Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 the current profit or loss. The variable lease
payment that is not included in the measurement of lease liabilities is included in the current profit or loss when
it 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.The Company includes the payment amount of low-value asset leases into relevant asset costs or the current
profit or loss 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 the current profit or loss.If the lease liabilities are remeasured due to other lease changes the Company will adjust the book value of
right-of-use assets accordingly.
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(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 the current profit
or loss when 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 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 the current profit or loss by the Company as per the straight-
line method in different stages over the lease term. The initial direct cost incurred 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 profit or loss 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 the current profit
or loss when 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
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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
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 for managing financial assets at the level of financial asset
portfolios considering the method of evaluating and reporting financial asset performance to key executives
the risks affecting financial asset performance and their management methods and the process by which
relevant business management personnel obtain 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 Company uses
indicators that 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
133Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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.
28. Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□ Applicable□Not applicable
(2) Changes in material accounting estimates
□ Applicable□Not applicable
(3) Conditions of the first implementation of new accounting standards from 2025 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 rates
Taxable value-added amount (Tax
payable is calculated using the taxable
Value-added tax sales amount multiplied by the applicable 13% 9% 5% 6% and 3%
tax rate less deductible input tax of the
current period)
Urban maintenance and construction tax Actually paid turnover tax 7%
Corporate income tax Taxable income 25% 20%
For ad valorem collection1.2% of the
remaining value after 30% of the original
Property tax value of the property is deducted by 1.2% 12%
lump sum; for rent-based collection 12%
of the rent revenue
Educational surcharges Actually paid turnover tax 3%
Local education 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
20%
Company
134Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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
In accordance with the Announcement on Tax Policies for Further Supporting the Development of Small and
Micro Enterprises and Individual Businesses (Announcement [2023] No. 12 of the Ministry of Finance and the
State Taxation Administration) during the period from January 1 2023 to December 31 2027 the taxable
income of small low-profit enterprises shall be calculated at a reduced rate of 25% and corporate income tax
shall be levied 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 and Huari Anxin
enjoy the above tax preferences.* Value-added tax
According to the Notice of the State Taxation Administration on Adjusting the Relevant Tax Policies of
Diamonds and Shanghai Diamond Exchange (CS [2006] No. 65) taxpayers are exempted from import value-
added tax (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 surcharge
According to the Notice of the State Taxation Administration on Expanding the Scope of Exemptions for Certain
Government Funds (CS [2016] No. 12) the exemption threshold for the educational surcharge local
educational 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 (turnover) do not exceed
RMB 100000.VII. Notes to Items in Consolidated Financial Statements
1. Cash at bank and on hand
Unit: RMB
135Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Item Ending balance Beginning balance
Cash on hand 6016.65 20879.87
Cash at bank 45536363.87 280040887.67
Other cash at bank and on hand 103686776.33 97909592.15
Total 149229156.85 377971359.69
Other notes:
The cash at the bank and on hand with limited use rights by the Company mainly includes note margins and futures and options
margins.The details of restricted cash at bank and on hand are as follows:
Unit: RMB
Item Ending balance Beginning balance
Security deposits and interest for notes payable 42100334.71 33113263.10
Futures and options account margin 28748241.60 22848540.40
Gold leasing security deposits and interests 0.01 20069638.91
Judicially frozen amount 663948.65
Total 70848576.32 76695391.06
2. Held-for-trading financial assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets measured at fair value
117410631.65165630834.06
through current profit or loss
Including:
Structured deposits and finance products 117410631.65 165630834.06
Including:
Total 117410631.65 165630834.06
3. Derivative financial assets
Unit: RMB
Item Ending balance Beginning balance
Hedging instruments—derivative
financial assets in a designated hedging 292078.00
relationship
Total 292078.00
4. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
136Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 60980767.02 44225898.09
1–2 years 1820579.18 2520681.03
2–3 years 22959.70 508387.31
Over 3 years 48875942.93 48781485.16
3–4 years 508387.31
More than 5 years 48367555.62 48781485.16
Total 111700248.83 96036451.59
(2) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable
with
49796666.49570436.48781485.48781485.
provision 44.58% 99.55% 226230.00 50.79% 100.00%
52521616
for bad
debts on a
single basis
Including
:
Accounts
receivable
for which
provision
61903582.1119920.560783661.47254966.46564067.
for bad 55.42% 1.81% 49.21% 690899.29 1.46%
312794314
debts is
made by
combinatio
n
Including
:
Including:
leasing and 20689280. 19981994.35498139. 34924808.
18.53%707286.493.42%36.96%573331.021.62%
other 75 26 36 34
portfolios
Jewelry
sales 41214301. 40801667.11756827. 11639258.
36.89%412634.031.00%12.24%117568.271.00%
business 56 53 07 80
portfolio
1117002450690357.61009891.96036451.49472384.46564067.
Total 100.00% 45.38% 100.00% 51.51%
8.830479594514
Provision for bad debts made on an individual basis:
Unit: RMB
Name Beginning balance Ending balance
137Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Provision for Provision 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 26279070.64 26279070.64 27294252.00 27068022.00 99.17% and expected to
be
unrecoverable
Total 48781485.16 48781485.16 49796666.52 49570436.52
Provision for bad debts drawn by portfolio: leasing and other portfolios
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Within 1 year 19296399.10 192183.10 1.00%
1–2 years 861534.64 40995.07 4.76%
2–3 years 22959.70 4591.94 20.00%
Over 3 years 508387.31 469516.38 92.35%
Total 20689280.75 707286.49
Provision for bad debts drawn by portfolio: portfolio of jewelry sales business
138Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Within 1 year 41214301.56 412634.03 1.00%
Total 41214301.56 412634.03
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 Expected credit loss
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
Balance as of January
690899.2948781485.1649472384.45
12025
Balance as of January
1 2025 in the current
period
Provision in the current
429021.231229034.621658055.85
period
Cancellation in the
484803.08484803.08
current period
Other changes 44719.82 44719.82
Balance as of
1119920.5249570436.5250690357.04
December 31 2025
(3) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the current period:
Unit: RMB
Change during the current period
Beginning
Category Ending balance
balance Recovery orProvision Write-off Others
reversal
Provision for
49472384.451658055.85484803.0844719.8250690357.04
bad debts
Total 49472384.45 1658055.85 484803.08 44719.82 50690357.04
(4) Accounts receivable that have been written off in the current period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 484803.08
(5) Accounts receivable and contractual assets with the top five ending balances collected as per the
borrowers
Unit: RMB
139Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ending balance of
bad debt
Proportion in total
Ending balance of proportion of
Ending balance of ending balance of
Ending balance of accounts accounts
Name accounts accounts
contract assets receivable and receivable and
receivable receivable and
contract assets impairment
contractual assets
provision of
contract assets
Henan Post and
Telecommunicatio
38820869.3538820869.3534.75%388208.69
ns Technology
Co. Ltd.Shenzhen Jinlu
Industry & Trade 9846607.00 9846607.00 8.82% 9846607.00
Co. Ltd.Guangdong
Zhanjiang
Samsung 4060329.44 4060329.44 3.64% 4060345.95
Automobile Co.Ltd.Wang Changlong 2370760.40 2370760.40 2.12% 2370760.40
Huizhou
Jiandacheng Road
and Bridge 2021657.70 2021657.70 1.81% 2021657.70
Engineering Co.Ltd.Total 57120223.89 57120223.89 51.14% 18687579.74
5. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 49405335.51 8081783.33
Total 49405335.51 8081783.33
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or the investee) Ending balance Beginning balance
China Pufa Machinery Industry Co. Ltd.
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Project (or the Reason for non- Impairment and
Ending original value Aging
investee) recovery judgment basis
The company has huge
China Pufa Machinery
1305581.86 3–4 years Not paid yet losses in its financial
Industry Co. Ltd.positions and operating
140Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
conditions and the
dividends receivable
may not be recovered
so full impairment is
accrued.Total 1305581.86
3) Disclosure by bad debt accrual method
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Provision
for bad
debts made 1305581.8 1305581.8 1305581.8 1305581.8
100.00%100.00%100.00%100.00%
on an 6 6 6 6
individual
basis
Includi
ng:
Includi
ng:
1305581.81305581.81305581.81305581.8
Total 100.00% 100.00% 100.00% 100.00%
6666
Provision for bad debts made on an individual basis:
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision 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 1305581.86 100.00% financial
Industry Co.position is poor
Ltd.Total 1305581.86 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
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
Balance as of January
1305581.861305581.86
12025
Balance as of January
1 2025 in the current
period
141Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Balance as of
1305581.861305581.86
December 31 2025
Division basis and proportion of provision for bad debts at each stage
Changes in book balance with a significant amount changed of loss provision in the current period
□ Applicable□Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Unit: RMB
Change during the current period
Beginning
Category Recovery or Charge-off or Ending balancebalance Provision Other changes
reversal write-off
Provision 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 Ending book balance Beginning book balance
Temporary payments receivable 3943137.76 6258271.82
Deposits and security deposits 44330855.20 3195494.08
Transaction payments 44852837.54 47147781.27
Others 2204885.19 3682040.79
Total 95331715.69 60283587.96
2) Disclosure by account receivable age
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 43709850.02 5141214.58
1–2 years 564912.09 3209073.66
2–3 years 1880850.65 916546.35
Over 3 years 49176102.93 51016753.37
More than 5 years 49176102.93 51016753.37
Total 95331715.69 60283587.96
3) Disclosure by bad debt accrual method
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Category Book balance Provision for bad debts Book balance Provision for bad debts
Book value Book value
Amount Proportion Amount Proportion Amount Proportion Amount Proportion
142Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
of of
provision provision
Provision
for bad
debts made 47692538. 44602320. 3090217.853819547. 51612683. 2206864.2
50.03%93.52%89.28%95.90%
on an 49 67 2 79 54 5
individual
basis
Includi
ng:
Provision
for bad
debts made 47639177. 1324059.5 46315117.6464040.1 5874919.0
49.97%2.78%10.72%589121.099.11%
on a 20 1 69 7 8
portfolio
basis
Includi
ng:
Aging 3308322.0 3105373.13268546.0 3037658.4
3.47%202948.896.13%5.42%230887.667.06%
portfolio 0 1 9 3
Portfolio of
deposit and
44330855.1121110.643209744.3195494.02837260.6
security 46.50% 2.53% 5.30% 358233.43 11.21%
2025885
deposit
receivable
95331715.45926380.49405335.60283587.52201804.8081783.3
Total 100.00% 48.18% 100.00% 86.59%
69185196633
Provision for bad debts made on a portfolio basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio 3308322.00 202948.89 6.13%
Portfolio of deposit and
44330855.201121110.622.53%
security deposit receivable
Total 47639177.20 1324059.51
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
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
Balance as of January
589121.0951612683.5452201804.63
12025
Balance as of January
1 2025 in the current
period
Provision in the current
831129.1350494.49881623.62
period
Reversal in the current
96190.711205470.991301661.70
period
Cancellation in the 5306106.09 5306106.09
143Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
current period
Other changes -549280.28 -549280.28
Balance as of
1324059.5144602320.6745926380.18
December 31 2025
Division basis and proportion of provision for bad debts at each stage
Changes in book balance with a significant amount changed of loss provision in the current period
□ Applicable□Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the current period:
Unit: RMB
Change during the current period
Beginning
Category Recovery or Charge-off or Ending balancebalance Provision Others
reversal write-off
Provision for
52201804.63881623.621301661.705306106.09-549280.2845926380.18
bad debts
Total 52201804.63 881623.62 1301661.70 5306106.09 -549280.28 45926380.18
5) Other receivables actually written off in the current period
Unit: RMB
Item Write-off amount
Other receivables actually written off 5306106.09
6) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Ending balance of
Name Nature Ending balance Aging ending balance of provision for bad
other receivables debts
Guojin Gold Co.Guarantees 21830000.00 Within 1 year 22.90% 155871.90
Ltd.Shenzhen ZHL
Guarantees 18731980.00 Within 1 year 19.65% 187319.80
Industrial Co. Ltd.Shenzhen China
Automobile South Transaction
9832956.37 Over 3 years 10.31% 9832956.37
China Automobile payments
Sales Co. Ltd.Shenzhen Nanfang
Transaction
Industry and Trade 7359060.75 Over 3 years 7.72% 7359060.75
payments
Industrial Co. Ltd.Shenzhen
Transaction
Zhonghao (Group) 5000000.00 Over 3 years 5.24% 5000000.00
payments
Co. Ltd.Total 62753997.12 65.82% 22535208.82
144Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
6. Advances to suppliers
(1) Advances to suppliers listed by account receivable age
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 831960.48 98.73% 795544.97 99.77%
1–2 years 9000.00 1.07% 261.00 0.03%
2–3 years 61.00 0.01%
Over 3 years 1603.94 0.19% 1603.94 0.20%
Total 842625.42 797409.91
Description of reasons for the delayed settlement of significant advances to suppliers aged over 1 year:
None.
(2) Advances to suppliers with the top five ending balances collected as per the object
Unit: RMB
Proportion to the ending
Name Ending balance balance of advances tosuppliers
Proportion in total %
Shenzhen Wahlai Decoration & Furniture Co. Ltd. 133260.81 15.81
Shenzhen Branch of Guoren Property and Casualty Insurance
Co. Ltd. 133186.80 15.81
China Telecom Corporation Limited Shenzhen Branch 111101.00 13.19
Shuhong Culture Media (Shanghai) Co. Ltd. 72427.13 8.60
Hangzhou Alimama Software Service Co. Ltd. 70338.45 8.35
Total 520314.19 61.76
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 Provision for
decline in the decline in the
value of value of
Item
Book balance inventories or Book value Book balance inventories or Book value
impairment impairment
provisions of provisions of
contract contract
performance performance
145Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
cost cost
Raw materials 146932.23 146932.23 8281211.63 8281211.63
Goods in stock 39330164.36 28997998.14 10332166.22 29558580.97 29094882.38 463698.59
Hedged items 49178442.27 49178442.27 114856873.15 114856873.15
Goods sold on
a commission 3830408.18 3830408.18
basis
Total 88655538.86 28997998.14 59657540.72 156527073.93 29094882.38 127432191.55
The Company shall abide by the disclosure requirements of the Self-Regulatory Guidelines No. 3 for Companies Listed on
Shenzhen Stock Exchange — Industrial Information Disclosure for jewelry-related business.
(2) Provision for decline in the value of inventories and impairment provisions of contract performance
cost
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item
balance Reversal or
Ending balance
Provision Others Others
write-off
Goods in stock 29094882.38 84463.30 181347.54 28997998.14
Total 29094882.38 84463.30 181347.54 28997998.14
8. Non-current assets due within one year
Unit: RMB
Item Ending balance Beginning balance
Large-denomination certificates of
deposit time deposits and interest due 87268498.36 91587627.94
within one year
Total 87268498.36 91587627.94
(1) Debt 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 9482963.33 25711444.95
Taxes pre-paid 7696873.59 167748.29
Large-denomination certificates of
1746738.9054969057.53
deposit time deposits and interest
Unamortized expenses 313322.22
Advances for agency business 385725.01 15582254.39
Total 19312300.83 96743827.38
146Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
10. Other debt investments
(1) Information on other debt investments
Unit: RMB
Accumulated
impairment
Changes in
Accumulated provision
Beginning Accrued Interest fair value in Ending
Item Costs changes in fair recognized in Remarks
balance interest adjustment the current balance
value other
period
comprehensive
income
Transferable
large-sum 84724128.7 57384942
certificate of 6 7.40
deposit
84724128.757384942
Total
67.40
11. Other equity instrument investments
Unit: RMB
Reasons for
Gains Losses
Losses Dividend being
Gains included accumulated accumulated
included in income measured at
in other into other into other
Ending Beginning other recognized designated fair
Item comprehensive comprehensive comprehensive
balance balance comprehensive in the value through
income in the income at the income at the
income in the current other
current period end of the end of the
current period period comprehensiv
current period current period
e income
Investment in
unlisted equity 0.00 0.00 10176617.20
instruments
Total 10176617.20
12. Long-term receivables
(1) Long-term receivables
Unit: RMB
Ending balance Beginning balance
Discount rate
Item Provision for Provision for
Book balance Book value Book balance Book value range
bad debts 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
147Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Provision for
bad debts made
614626146228.96146228.96146228.9
on an 100.00% 100.00% 100.00% 100.00%
28.91111
individual
basis
Including:
Including:
614626146228.96146228.96146228.9
Total 100.00% 100.00% 100.00% 100.00%
28.91111
13. Long-term equity investments
Unit: RMB
Increase/decrease in the current period
Beginning Beginning Investment Cash Ending Ending
balance balance of profit or Adjustment to dividend or balance balance of
Investee Other Provision
(book impairment Additional Reduced loss other profitequity for Others (book impairment
value) provision investment investment recognized comprehensive declared tochanges impairment value) provision
by equity income be
method distributed
I. Joint venture
Shenzhen
Tellus-
56216004.26111495.20000000.62327499.
Gmond
26420068
Investment
Co. Ltd.Shenzhen
Telixing 13686903. 14528347.
841444.02
Investment 37 39
Co. Ltd.
69902907.26952939.20000000.76855847.
Subtotal
63440007
II. Associates
Shenzhen
Renfu
Tellus 15188925. 2431128.3 17620053.Automobile 57 3 90
s Service
Co. Ltd.Shenzhen
Tellus
Automobile
Service
Chain Co.Ltd.Shenzhen
Yongtong
Xinda
148Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Testing
Equipment
Co. Ltd.Shenzhen
Jiecheng 3225000.0 3225000.0
Electronics 0 0
Co. Ltd.China
Automotive
Industry
400000.00400000.00
Shenzhen
Trading
Co. Ltd.Shenzhen
Universal
Standard 500000.00 500000.00
Parts Co.Ltd.Shenzhen
China
Automobile
South 2250000.0 2250000.0
China 0 0
Automobile
Sales Co.Ltd.Shenzhen
Bailiyuan
1320000.01320000.0
Power
00
Supply Co.Ltd.Shenzhen
Yimin Auto
200001.10200001.10
Trading
Co. Ltd.Shenzhen
Torch
Spark Plug 17849.20 865445.32 865445.32 17849.20
Industry
Co. Ltd.Shenzhen
Tellus
Xinyongton
g 420000.00 420000.00
Automobile
Service
Co. Ltd.Hunan
-
Changyang 1810540.7
1810540.7
Industrial 0
0
Co. Ltd.Shenzhen
Xiandao -
4751621.6
New 4751621.6
Materials 2
Co. Ltd.Shenzhen 1956000.0 -
149Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Hanli High 0 1956000.0
Tech 0
Ceramics
Co. Ltd.Shenzhen
Nanfang
6700000.06700000.0
Automobile
00
Repair
Center
-
15188925.23551012.3296573.617620053.15032850.
Subtotal 0.00 0.00 0.00 0.00 865445.32 8518162.3
576259030
2
-
85091833.23551012.30249513.20865445.94475900.15032850.
Total 8518162.3
206209329730
2
The recoverable amount is determined based on the net amount after deducting disposal expenses from the fair value
□ Applicable□Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□Not applicable
Reasons for the obvious inconsistency between the aforementioned information and the information used in the impairment test of
previous years or external information
Reasons for the obvious inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in those years
14. Investment properties
(1) Investment properties measured at cost
□Applicable □ Not applicable
Unit: RMB
Construction in
Item Premises and buildings Land use right Total
progress
I. Original book value
1. Beginning
1282555873.4895667082.861378222956.34
balance
2. Amount
increased in the current
period
(1)
Outsourcing
(2) Transfer
from inventory/fixed
assets/construction in
progress
(3) Increase
from business merger
3. Amount
decreased in the
current period
150Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Disposal
(2) Other
transfer-out
4. Ending balance 1282555873.48 95667082.86 1378222956.34
II. Accumulated
depreciation and
accumulated
amortization
1. Beginning
270001900.228448923.02278450823.24
balance
2. Amount
increased in the current 43745919.41 2119130.04 45865049.45
period
(1) Provision
43745919.412119130.0445865049.45
or amortization
3. Amount
decreased in the
current period
(1) Disposal
(2) Other
transfer-out
4. Ending balance 313747819.63 10568053.06 324315872.69
III. Impairment
provision
1. Beginning
balance
2. Amount
increased in the current
period
(1) Provision
3. Amount
decreased in the
current period
(1) Disposal
(2) Other
transfer-out
4. Ending balance
IV. Book value
1. Ending book
968808053.8585099029.801053907083.65
value
2. Beginning book
1012553973.2687218159.841099772133.10
value
The recoverable amount is determined based on the net amount after deducting disposal expenses from the fair value
□ Applicable□Not applicable
151Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□Not applicable
Reasons for the obvious inconsistency between the aforementioned information and the information used in the impairment test of
previous years or external information
Reasons for the obvious inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in those years
(2) Investment properties measured at fair value
□ Applicable□Not applicable
(3) Investment properties without property certificates
Unit: RMB
Reasons for failure to obtain the property
Item Book value
certificate
The property ownership certificate has
Shops in Building 12 Sungang 8524.38 not been handled due to historical
reasons.The property ownership certificate has
CNNC office building 3493294.17 not been handled due to historical
reasons.The property ownership certificate has
Building 12 Sungang 2653.97 not been handled due to historical
reasons.Total 3504472.52
Other notes:
15. Fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 61870381.34 70699928.84
Disposal of fixed assets 63754.41
Total 61870381.34 70763683.25
(1) Fixed assets
Unit: RMB
Office and
Premises and Machinery Transportation Electronic Fixed asset
Item other Total
buildings equipment equipment equipment decoration
equipment
I. Original
book value:
1.
218469493.21437166.98981644.2261036785.
Beginning 3203004.38 1569294.59 7376181.84
358034
balance
2.
Amount 854883.44 157643.41 1012526.85
increased in
152Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the current
period
(1)
854883.44157643.411012526.85
Purchase
(2)
Transferred
from
construction
in progress
(3)
Increase
from
business
merger
3.
Amount
1507174.310856962.0
decreased in 6655409.61 798383.58 1141459.06 754535.44
65
the current
period
(1)
1507174.310856962.0
Disposal or 6655409.61 798383.58 1141459.06 754535.44
65
scrapping
4.
218469493.14781757.38329353.2251192350.
Ending 2404620.80 427835.53 6779289.81
357814
balance
II.Accumulated
depreciation
1.
155407884.12464244.27317598.6184305652.
Beginning 2650168.44 1103942.47 5361813.76
845743
balance
2.
Amount
increased in 6438213.27 927035.22 66367.08 669600.88 1354646.43 9455862.88
the current
period
(1)
6438213.27927035.2266367.08669600.881354646.439455862.88
Provision
3.
Amount
decreased in 5397159.10 746730.22 955884.74 860076.33 600008.22 8559858.61
the current
period
(1)
Disposal or 5397159.10 746730.22 955884.74 860076.33 600008.22 8559858.61
scrapping
4.
161846098.7031314.8185201656.
Ending 7994120.37 1969805.30 243866.14 6116451.97
11170
balance
153Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
III.Impairment
provision
1.
Beginning 3555385.70 1400150.09 61984.82 387935.05 465352.12 160396.29 6031204.07
balance
2.
Amount
increased in
the current
period
(1)
Provision
3.
Amount
decreased in 1250883.99 51653.36 175666.13 281382.73 151305.76 1910891.97
the current
period
(1)
Disposal or 1250883.99 51653.36 175666.13 281382.73 151305.76 1910891.97
scrapping
4.
Ending 3555385.70 149266.10 10331.46 212268.92 183969.39 9090.53 4120312.10
balance
IV. Book
value
1.
53068009.51085769.561870381.3
Ending book 6638370.90 424484.04 653747.31
454
value
2.
59506222.81276110.470699928.8
Beginning 7572772.64 490851.12 1853971.79
184
book value
(2) Fixed assets leased out by operating lease
Unit: RMB
Item Ending book value
Premises and buildings 45648811.88
(3) Fixed assets without property certificates
Unit: RMB
Reasons for failure to obtain the property
Item Book value
certificate
The property ownership certificate has
Yongtong Building 16694176.87 not been handled due to historical
reasons.The property ownership certificate has
Automobile Building 18170392.84 not been handled due to historical
reasons.
154Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The property ownership certificate of the
Parking lot of Tellus Building 6424227.08
parking lot cannot be handled.The property ownership certificate has
3-5F Plants 1# 2# and 3# Taoyuan
2243115.04 not been handled due to historical
Road
reasons.Unable to apply for a property ownership
Transfer floor(s) of Tellus Building 978779.24
certificate
The property ownership certificate has
No.16 Apartment of Taohuayuan 761853.54 not been handled due to historical
reasons.The property ownership certificate has
Warehouse 47658.93 not been handled due to historical
reasons.The property ownership certificate has
1F Bao'an Commercial and Residential
544798.04 not been handled due to historical
Building
reasons.The property ownership certificate has
Shuibei Zhongtian Building 433404.22 not been handled due to historical
reasons.The property ownership certificate has
Warehouse of the Trade Department 34483.33 not been handled due to historical
reasons.The property ownership certificate has
Shops Plants No. 5-7 Buxin 14317.22 not been handled due to historical
reasons.The property ownership certificate has
Songquan Apartment (mixed) 10086.79 not been handled due to historical
reasons.The property ownership certificate has
Buxin Generator Room 5994.58 not been handled due to historical
reasons.The property ownership certificate has
Guest House on Renmin North Road 5902.41 not been handled due to historical
reasons.Total 46369190.13
(4) Impairment test of fixed assets
□ Applicable□Not applicable
(5) Disposal of fixed assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets to be disposed of 63754.41
Total 63754.41
16. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 5111882.70 3332141.19
Total 5111882.70 3332141.19
155Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Construction in progress
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other works 5111882.70 5111882.70 3332141.19 3332141.19
Total 5111882.70 5111882.70 3332141.19 3332141.19
(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 book value
1. Beginning balance 96383601.17 96383601.17
2. Amount increased in the current
3845893.753845893.75
period
(1) Rent 3845893.75 3845893.75
3. Amount decreased in the current
period
4. Ending balance 100229494.92 100229494.92
II. Accumulated depreciation
1. Beginning balance 17825595.67 17825595.67
2. Amount increased in the current
4483068.694483068.69
period
(1) Provision 4483068.69 4483068.69
3. Amount decreased in the current
period
(1) Disposal
4. Ending balance 22308664.36 22308664.36
III. Impairment provision
1. Beginning balance
2. Amount increased in the current
period
(1) Provision
3. Amount decreased in the current
period
156Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Disposal
4. Ending balance
IV. Book value
1. Ending book value 77920830.56 77920830.56
2. Beginning book value 78558005.50 78558005.50
(2) Impairment test of right-of-use assets
□ Applicable□Not applicable
18. Intangible assets
(1) Intangible assets
Unit: RMB
Non-patented Computer
Item Land use right Patent right Trademark Total
technology software
I. Original book
value
1.
Beginning 1967851.00 128500.00 7789468.20 9885819.20
balance
2. Amount
increased in the 4.50 1176288.56 1176293.06
current period
(1)
4.501176288.561176293.06
Purchase
(2)
Internal R&D
(3)
Increase from
business
merger
3. Amount
decreased in the 564999.80 564999.80
current period
(1)
564999.80564999.80
Disposal
4. Ending
1967851.00128504.508400756.9610497112.46
balance
II.Accumulated
amortization
1.
Beginning 906247.54 114780.56 5088956.65 6109984.75
balance
157Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. Amount
increased in the 103571.04 2720.28 1256407.30 1362698.62
current period
(1)
103571.042720.281256407.301362698.62
Provision
3. Amount
decreased in the 38000.00 38000.00
current period
(1)
38000.0038000.00
Disposal
4. Ending
1009818.58117500.846307363.957434683.37
balance
III. Impairment
provision
1.
Beginning
balance
2. Amount
increased in the
current period
(1)
Provision
3. Amount
decreased in the
current period
(1)
Disposal
4. Ending
balance
IV. Book value
1. Ending
958032.4211003.662093393.013062429.09
book value
2.
Beginning book 1061603.46 13719.44 2700511.55 3775834.45
value
(2) Data resources recognized as intangible assets
□ Applicable□Not applicable
(3) Impairment test of intangible assets
□ Applicable□Not applicable
158Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
19. Long-term deferred expenses
Unit: RMB
Amortization
Increase in the Other decreased
Item Beginning balance amount in the Ending balance
current period amount
current period
Decoration
47932696.851218945.3015091948.2834059693.87
engineering
Informationization
29926.3617955.8411970.52
system service fee
Renovation project 132786.16 86599.68 46186.48
Total 48095409.37 1218945.30 15196503.80 34117850.87
20. Deferred income tax assets / deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for credit
31815588.177953897.0534988635.308747158.83
impairment
Deferred income 425538.76 106384.69 556473.76 139118.44
Changes in the fair
value of held-for- 2097247.32 524311.83 398515.24 99628.81
trading financial assets
Changes in the fair
value of other equity 10176617.20 2544154.30 10176617.20 2544154.30
instrument investments
Lease liabilities 72854846.05 18213711.52 84443765.66 21110941.41
Total 117369837.50 29342459.39 130564007.16 32641001.79
(2) Deferred income tax liabilities not offset
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Accelerated
depreciation of fixed 74739.40 18684.85 126577.00 31644.25
assets
Time difference of
income tax due to
6766850.961691712.7417094258.404273564.60
allocation of rent-free
period income
Assets evaluation
appreciation in the
101085408.5925271348.28114326295.4728581570.00
business merger not
under common control
Right-of-use assets 64466081.10 16116520.28 77731810.56 19432952.64
Total 172393080.05 43098266.15 209278941.43 52319731.49
159Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(3) Deferred income tax assets or liabilities presented in net amount after being offset
Unit: RMB
Amount of offsetting
Amount of offsetting Ending balance of Beginning balance of
of deferred income tax
of deferred income tax deferred income tax deferred income tax
Item assets against liabilities
assets against liabilities assets or liabilities after assets or liabilities after
at the beginning of the
at the end of the period offset offset
period
Deferred income tax
22942743.956399715.4427144223.015496778.78
assets
Deferred income tax
22942743.9520155522.2027144223.0125175508.48
liabilities
(4) Breakdown of unrecognized deferred income tax assets
Unit: RMB
Item Ending balance Beginning balance
Deductible temporary difference 125029644.86 149654149.86
Deductible loss 36370445.85 45273526.35
Total 161400090.71 194927676.21
(5) Deductible losses of unrecognized deferred income tax assets will become mature and due in the
following years
Unit: RMB
Year Ending amount Beginning amount Remarks
20256285169.81
20266498346.808589171.35
20272137636.332693238.23
202819129892.0924987453.67
20292717934.102718493.29
20305886636.53
Total 36370445.85 45273526.35
21. Other non-current assets
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Amortization of
bundled
construction
works for the
Tellus Gimeng
46760375.5246760375.5247062569.0047062569.00
Gold Jewelry
Industry Park
Upgrading and
Renovation
Project
160Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Reclassification
of VAT debit 7237158.45 7237158.45
balance
Certificates of
Deposit (CDs)
Time Deposits
and Accrued
148413808.15148413808.15145315608.13145315608.13
Interest
Maturing
Beyond One
Year
Prepaid
software 132775.71 132775.71 132775.71 132775.71
payment
Total 195306959.38 195306959.38 199748111.29 199748111.29
Other notes:
22. Assets with restricted ownership or right-of-use
Unit: RMB
Ending Beginning
Item Book Restriction Book Restriction
Book value Restriction Book value Restriction
balance type balance type
Security Security
deposits for deposits for
Cash at
70848576. 70848576. Guarantees notes 76695391. 76695391. Guarantees notes
bank and
32 32 etc. payable 06 06 etc. payable
on hand
futures futures
margin etc. margin etc.
70848576.70848576.76695391.76695391.
Total
32320606
23. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit borrowings 11002344.41 120101444.43
Total 11002344.41 120101444.43
24. Trading financial liabilities
Unit: RMB
Item Ending balance Beginning balance
Held-for-trading financial liabilities 0.00 0.00
25. Derivative financial liabilities
Unit: RMB
161Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Item Ending balance Beginning balance
Derivative financial liabilities with
2702318.1046660.00
designated hedging relationship
Total 2702318.10 46660.00
26. Notes payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 180000000.00 110000000.00
Total 180000000.00 110000000.00
27. Accounts payable
(1) Presentation of accounts payable
Unit: RMB
Item Ending balance Beginning balance
Purchase payment for goods and services 14666732.29 7874360.75
Payment for engineering equipment 94686651.76 117681332.38
Total 109353384.05 125555693.13
(2) 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
China Construction First Group Provisional estimates for unsettled
40930678.45
Corporation Limited projects
Shenzhen Yinglong Jian'an (Group) Co.
28298954.80 Project(s) unsettled
Ltd.Shenzhen Yinuo Construction
3555095.22 Project(s) unsettled
Engineering Co. Ltd.Shenzhen Shuibei Yihao Investment
1120000.00 Project(s) unsettled
Development Co. Ltd.Total 73904728.47
(3) Whether there are any overdue payments to SMEs
Whether it is a large enterprise
□Yes ? No
28. Other payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 139483702.52 126312280.55
Total 139483702.52 126312280.55
162Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Other payables
1) Other payables presented by the nature of payment
Unit: RMB
Item Ending balance Beginning balance
Guarantee and security deposits 81230478.40 73630322.35
Associated intercourse funds 5317052.99 7845985.83
Withdrawal in advance 23774224.22 14104886.38
Temporary receipts payable 29161946.91 30731085.99
Total 139483702.52 126312280.55
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 Guarantees not yet due
Shenzhen Longgang Tellus Real Estate
1095742.50 Outstanding by related companies
Co. Ltd.Total 4792165.53
29. Advances from customers
(1) Presentation of advances from customers
Unit: RMB
Item Ending balance Beginning balance
Rent 8222394.47 9469503.75
Total 8222394.47 9469503.75
30. Contract liabilities
Unit: RMB
Item Ending balance Beginning balance
Goods fees receivable in advance 3074162.93 2404815.58
Services fees receivable in advance 529987.77 1604689.01
Total 3604150.70 4009504.59
31. Employee compensation payable
(1) Presentation of employee compensation payable
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
I. Short-term
36774351.1951423146.9845977015.4842220482.69
compensation
163Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
II. Post-employment
benefits - defined 29272.75 5215156.31 5244429.06 0.00
contribution plan
III. Termination
32000.00861999.42830600.9863398.44
benefits
Total 36835623.94 57500302.71 52052045.52 42283881.13
(2) Presentation of short-term compensation
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
1. Wages bonuses
allowances and 36144993.25 43140939.14 37883066.08 41402866.31
subsidies
2. Employee benefits 518171.62 1600566.28 1454761.35 663976.55
3. Social insurance
10591.211769591.041780182.25
premiums
Including:
medical insurance 8898.48 1465874.42 1474772.90
premiums
Work-
related injury insurance 764.39 150111.39 150875.78
premium
Maternity
928.34153605.23154533.57
insurance premiums
4. Housing provident
1012.803659509.093660521.89
fund
5. Labor union funds
and staff education 99582.31 1252541.43 1198483.91 153639.83
funds
Total 36774351.19 51423146.98 45977015.48 42220482.69
(3) Presentation of the defined contribution plan
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
1. Basic endowment
27743.974966302.214994046.18
insurance
2. Unemployment
1528.78248854.10250382.88
insurance premium
Total 29272.75 5215156.31 5244429.06 0.00
32. Taxes payable
Unit: RMB
Item Ending balance Beginning balance
164Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Value-added tax 3954478.65 5266527.71
Consumption tax 4864.11 964.82
Corporate income tax 6383663.90 11454335.79
Individual income tax 692986.33 1297785.08
Urban maintenance and construction tax 249005.10 105007.68
Educational surcharges 177860.76 74959.48
Land use tax 26460.00 26460.00
Land VAT 17360372.46 17360372.46
Stamp duty 204418.33 518448.66
Other taxes 4972.44 4878.34
Total 29059082.08 36109740.02
33. Non-current liabilities due within one year
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities due within one year 10581548.92 8674869.40
Total 10581548.92 8674869.40
34. Other current liabilities
Unit: RMB
Item Ending balance Beginning balance
Taxes of items to be written off 1858235.00 6142814.36
Others 355990.00
Total 2214225.00 6142814.36
35. Lease liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 75441810.38 76541985.55
Total 75441810.38 76541985.55
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 presented 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
165Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Subtotal 3920160.36 3920160.36
37. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason
Pending litigation 9956800.00 Pending litigation
Total 9956800.00
38. Deferred income
Unit: RMB
Increase in the Decrease in the
Item Beginning balance Ending balance Reason
current period current period
Government
7837477.601780205.936057271.67
subsidies
Total 7837477.60 1780205.93 6057271.67 --
39. Share capital
Unit: RMB
Increase or decrease (+-)
Beginning Conversion Ending
balance Issuance of of the reserveBonus shares Others Subtotal balance
new shares funds into
shares
431058320.431058320.
Total shares
0000
40. Capital reserves
Unit: RMB
Increase in the current Decrease in the current
Item Beginning balance Ending balance
period period
Capital premium (stock
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
Amount Less: Less:
After-tax After-tax
Beginning incurred amount amount
Item Less: amount amount
Ending
balance before included in included in income tax attributable attributable to balance
income tax other other expenses to the minority
in the comprehen comprehen
parent shareholders
current sive sive
166Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
period income in income in company
the the
previous previous
period and period and
transferred transferred
to current to retained
profits or earnings in
losses the current
period
I. Other
comprehen
sive
--
income that
7632462.9763246
cannot be
02.90
reclassified
into profit
or loss
Chang
es in the
fair value
--
of other
7632462.9763246
equity
02.90
instrument
investment
s
II. Other
comprehen
sive
income that 26422.0
26422.00
can be 0
reclassified
into profits
and losses
Including:
other
comprehen
sive
income
items to be 26422.0
26422.00
reclassified 0
into profits
and losses
through the
equity
method
Total other
--
comprehen
7606040.9760604
sive
00.90
income
42. Surplus reserves
Unit: RMB
Item Beginning balance Increase in the current Decrease in the current Ending balance
167Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
period period
Statutory surplus
74222656.9918438453.1792661110.16
reserves
Total 74222656.99 18438453.17 92661110.16
43. Undistributed profits
Unit: RMB
Item Current period Previous period
Undistributed profits at the end of the
798343284.97685342592.62
previous period before adjustment
Undistributed profits at the end of the
798343284.97685342592.62
period after adjustment
Add: net profit attributable to owners of
142865677.77136629870.80
the parent company in the current period
Less: appropriation to the statutory
18438453.1710266370.53
surplus reserves
Ordinary share dividends payable 43105832.00 13362807.92
Undistributed profits at the end of the
879664677.57798343284.97
period
Details of adjustments to undistributed profits at the beginning of the period:
1) Due to retroactive adjustment of ASBE and its relevant new regulations the affected retained earnings at the beginning of the
period were RMB 0.00.
2) Due to changes in accounting policies the undistributed profit of RMB 0.00 at the beginning of the period was affected.
3) Due to the correction of major accounting errors the affected retained earnings at the beginning of the period were RMB 0.00.
4) Due to the change in the scope of consolidation caused by the same control the undistributed profit of RMB 0.00 at the
beginning of the period was affected.
5) Other adjustments affected the undistributed profit of RMB 0.00 at the beginning of the period.
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 1461603400.53 1212036648.67 2613678204.37 2376764300.06
Total 1461603400.53 1212036648.67 2613678204.37 2376764300.06
The lowest among the Company's audited total profit net profit and net profit after deducting non-recurring gains and losses for
the reporting period was negative.□Yes□No
Breakdown information on operating revenue and operating cost:
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
168Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Including:
Jewelry
11318888108351581131888810835158
sales and
50.1162.7850.1162.78
services
Leasing
32971455128520783297145512852078
and
0.425.890.425.89
services
By
operating
regions
Including:
South 94376091 71461256 94376091 71461256
China 2.51 1.75 2.51 1.75
17361583166772471736158316677247
East China
1.081.711.081.71
North 77242667. 74225466. 77242667. 74225466.China 32 43 32 43
Central 24324512 23366265 24324512 23366265
China 1.80 9.62 1.80 9.62
Other 23738867. 22763489. 23738867. 22763489.regions 82 16 82 16
Type of
market or
customer
Including:
Contract
type
Including:
By time of
transfer of
goods
Including:
Classificati
on of
contract
term
Including:
Classificati
on by sales
channel
Including:
169Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
14616034121203661461603412120366
Total
00.5348.6700.5348.67
45. Taxes and surcharges
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Urban maintenance and construction tax 1212666.92 1830648.40
Educational surcharges 519590.85 784536.01
Property tax 7423432.99 7172545.32
Land use tax 421607.18 442956.07
Vehicle and vessel use tax 1980.00
Stamp duty 1025054.06 2405663.01
Local education surcharges 346393.90 523024.00
Consumption tax 21285.10 13275.47
Total 10972011.00 13172648.28
46. Administrative expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 42311186.52 38432977.77
Depreciation and amortization 5074482.25 4766354.91
Intermediary agency service fees 5491265.54 4538253.56
Rental expenses\property management fe
e\cleaning fee\utilities 1203779.41 811611.67
Office expenses 238824.26 992490.75
Business entertainment expenses 47767.63 81061.23
Communication expenses 260449.78 137608.06
Travel expenses 127448.60 136973.90
Transportation expenses 51539.75 115146.22
Advertising expenses 652000.25 162934.17
Others 3332433.36 1187180.21
Total 58791177.35 51362592.45
47. Selling expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 7362395.79 6552554.33
E-commerce channel operation service
2793224.286284555.98
fees
Depreciation and amortization 2435673.37 3089169.78
Advertising marketing expenses 890795.54 1514296.05
Utilities and cleaning fees 375508.95 423458.67
Insurance premiums 574103.82 548338.28
Consulting and service fees 494660.94 1054392.27
Transport and travel expenses 238850.81 271940.20
Communication expenses 177004.52 424139.87
Office expenses 86310.28 171365.99
Business entertainment expenses 19727.00 60070.06
170Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Material consumption expenses 444.42
Others 220780.99 1837954.99
Total 15669036.29 22232680.89
48. R&D expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 1970701.92 2980237.50
Equipment and outsourced service fees 938250.41
Depreciation and amortization 178434.56 70296.60
Others 10841.35 218285.78
Total 3098228.24 3268819.88
49. Financial expenses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Net interest expenses 6563081.07 9096305.49
Interest income -2571339.77 -2984792.54
Exchange profits and losses -13353.94 -53888.97
Handling charges and others 504674.59 331390.71
Total 4483061.95 6389014.69
50. Other income
Unit: RMB
Sources of other income Amount incurred in the current period Amount incurred in the previous period
I. Government subsidies included in
2258787.806524396.47
other income
Including: government subsidies related
1780205.931780205.93
to deferred income
Government subsidies directly
478581.874744190.54
included in the current profit or loss
II. Other items related to daily activities
50339.5273439.68
and included in other income
Including: individual income tax
50339.5273439.68
withholding service fees
Total 2309127.32 6597836.15
51. Income from changes in fair value
Unit: RMB
Sources of income from changes in fair
Amount incurred in the current period Amount incurred in the previous period
value
Held-for-trading financial assets -977729.35 -12410718.88
Held-for-trading financial liabilities 3002660.00
Income from changes in the fair value of
-3373018.10139823.00
hedging instruments
Income from changes in the fair value of
1618478.87-1299627.74
hedging items
171Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Others 120.00
Total -2732268.58 -10567743.62
52. Investment income
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment income
30249513.0924212981.63
calculated by the equity method
Investment income from held-for-trading
9429149.495770977.63
financial assets during the holding period
Interest income from large-denomination
7664472.075703743.63
certificates of deposit and time deposits
Closing income from commodity futures
-29716862.63-15331164.53
contracts and T+D contracts (hedging)
Closing income from commodity futures
contracts and T+D contracts (no hedging -414329.87 -886055.89
specified)
Total 17211942.15 19470482.47
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 -1658055.85 339597.30
Loss on bad debts of other receivables 420038.08 6719894.33
Impairment loss of other current assets 157396.51 -157396.51
Loss on bad debts of dividends
-1305581.86
receivable
Total -1080621.26 5596513.26
54. Asset impairment losses
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
I. Loss on diminution in value of
inventories and impairment loss on -84463.30
contract performance cost
Total -84463.30
55. Income from disposal of assets
Unit: RMB
Sources of income from asset disposal Amount incurred in the current period Amount incurred in the previous period
Gains from disposal of fixed assets
15413.83-227.20
(losses to be listed with "-")
Others -22500.92
Total -7087.09 -227.20
172Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
56. Non-operating revenue
Unit: RMB
Amount included in the
Amount incurred in the Amount incurred in the
Item current non-recurring profit or
current period previous period
loss
Gains from unpayable
492565.25
payments
Income from liquidated 5459720.92 3405795.28 5459720.92
damages
Land use fees 6946693.18 6946693.18
Others 624094.27 2592.54 624094.27
Total 13030508.37 3900953.07 13030508.37
57. Non-operating expenses
Unit: RMB
Amount included in the
Amount incurred in the Amount incurred in the
Item current non-recurring profit or
current period previous period
loss
Overdue payments and
liquidated damage 16876.38 1383776.06 16876.38
expenditure
Compensation expenditure
arising from contingent 9956800.00 9956800.00
events
Others 164184.95 812183.78 164184.95
Total 10137861.33 2195959.84 10137861.33
Other notes:Compensation expenditure related to contingent matters is detailed in Note XⅤ Commitments and Contingent Matters
“2. Contingent Matters” “(1)Important contingencies existing on the balance sheet date”
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
Income tax expenses in the current
39485729.4435638514.23
period
Deferred income tax expenses -5922922.94 -11380243.86
Total 33562806.50 24258270.37
(2) Accounting profit and income tax expense adjustment process
Unit: RMB
Item Amount incurred in the current period
Total profit 175062513.31
Income tax expenses based on the statutory/applicable tax rate 43765628.33
173Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Effect of different tax rates applied to subsidiaries -420550.94
Effect of income tax during the period before adjustment 1929889.77
Impact of non-deductible costs expenses and losses 4432488.45
Profit or loss of joint ventures and associates calculated by the
-7346016.94
equity method
Income exempted from taxation (to be listed with "-") -2374966.80
Effect of using previously unrecognized deductible losses of
previous years and deductible temporary differences (to be -7982589.86
listed with "-")
Effect of using previously unrecognized deductible losses and
1558924.49
deductible temporary differences
Income tax expenses 33562806.50
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 related to operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Guarantee and security deposits 75662606.60 33248403.97
Interest income 1142296.52 1595629.53
Government subsidies received 518814.78 4822034.27
Gold leasing deposit received 22987350.00
Transaction payments and other
46689700.5214089935.20
payments
Total 124013418.42 76743352.97
Cash paid relating to other operating activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Cash payment 42520229.74 30628305.96
Payments for gold lease deposits futures
margins bill margins and refunded 81050660.87 35830899.04
deposits for leasing business
Penalty for breach of contract 132760.17 1300150.00
Transaction payments and other
18754302.6412048639.24
payments
Total 142457953.42 79807994.24
(2) Cash related to investing activities
Other cash received related to investing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Incorporation of SDG Huari into
5964034.76
consolidated funds
174Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Total 5964034.76
Important cash received 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 929974150.16 820139644.49
of deposit and time deposits
Total 929974150.16 820139644.49
Other cash paid related to investing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Security deposit for hedging instruments 10561808.00 14659543.80
Total 10561808.00 14659543.80
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 1311058482.50 985536930.32
of deposit and time deposits
Total 1311058482.50 985536930.32
(3) Cash related to financing activities
Other cash paid related to financing activities
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Amounts paid for the repayment of lease
13692202.7312180403.46
liabilities
Total 13692202.73 12180403.46
Changes in liabilities arising from financing activities
□Applicable □ Not applicable
Unit: RMB
Increase in the current period Decrease in the current period
Beginning
Item Non-cash Non-cash Ending balancebalance Change in cash Change in cash
change change
Short-term
120101444.4364500000.002109133.56175708233.5811002344.41
borrowings
Lease liabilities 85216854.95 13973136.19 13166631.84 86023359.30
Total 205318299.38 64500000.00 16082269.75 188874865.42 97025703.71
61. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
175Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 141499706.81 139031732.04
Add: impairment provision for assets 1165084.56 -5596513.26
Depreciation/consumption of
fixed assets oil and gas assets and 55320912.33 41583661.32
bearer biological assets
Depreciation of right-of-use
4483068.699474215.37
assets
Amortization of intangible assets 1362698.62 560018.46
Amortization of long-term
15196503.8013059696.03
deferred expenses
Losses from disposal of fixed
assets intangible assets and other long- 7087.09 227.20
term assets (gain to be listed with "-")
Loss from retirement of fixed
assets (gain to be listed with "-")
Loss from changes in fair value
2732268.5810567743.62
(gain to be listed with "-")
Financial expense (gain to be
6563081.079100270.87
listed with "-")
Investment loss (gain to be listed
-17211942.15-19470482.47
with "-")
Decrease of deferred income tax
-902936.6632339878.65
assets (increase to be listed with "-")
Increase of deferred income tax
-5115815.70-15330211.35
liabilities (decrease to be listed with "-")
Decrease of inventory (increase
67871535.0745716613.09
to be listed with "-")
Decrease of operating receivables
26674386.07100475881.49
(increase to be listed with "-")
Increase in operating items
28108259.7028776082.79
payable (decrease to be listed with "-")
Others
Net cash flows from operating
327753897.88390288813.85
activities
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 under financial
lease
3. Net changes in cash and cash
equivalents:
Ending balance of cash 78380580.53 301275968.63
176Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Less: beginning balance of cash 301275968.63 160223387.69
Add: ending balance of cash
equivalents
Less: beginning balance of cash
equivalents
Net increase in cash and cash
-222895388.10141052580.94
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 78380580.53 301275968.63
Including: cash on hand 6016.65 20879.87
Cash at bank available for
45536363.87241190505.42
payment at any time
Other cash at bank and on hand
32838200.0160064583.34
available for payment on demand
III. Ending balance of cash and cash
78380580.53301275968.63
equivalents
(3) Cash at bank and on hand not belonging to cash and cash equivalents
Unit: RMB
Amount in the previous Reasons for not belonging to
Item Amount in the current period
period cash and cash equivalents
Security deposits for notes
42100334.71 33113263.10 Guarantee deposits of notes
payable
Futures and options account Deposits for gold futures
28748241.6022848540.40
margin trading business restricted
Gold leasing security deposits Deposits for gold leasing
0.0120069638.91
and interests business restricted
Judicially frozen amount 663948.65 Judicial freezing
Total 70848576.32 76695391.06
62. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Ending balance of foreign Ending balance of converted
Item Conversion exchange rate
currency RMB
Cash at bank and on hand
Including: USD 857.08 7.0288 6024.24
EUR
HKD 109623.44 0.90322 99014.08
Accounts receivable
177Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Including: USD
EUR
HKD
Long-term loans
Including: USD
EUR
HKD
Other receivables
Including: USD 205381.99 7.0288 1443588.93
Other payables
Including: HKD 3376679.37 0.90322 3049884.34
(2) Description of overseas operating entities including the disclosure of the primary places of business
abroad recording currency and the basis for its selection for significant overseas operating entities. If
there is a change in the recording currency the reason for the change shall also be disclosed.□ Applicable□Not applicable
63. Leases
(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 and low-value asset leases utilizing the practical expedient
□ Applicable□Not applicable
Situations involving sale and leaseback transactions
(2) The Company as the lessor
Operating lease as lessor
□Applicable □ Not applicable
Unit: RMB
Including: income related to variable
Item Lease income lease payments that are not included in
the measurement of lease receipts
Lease 329714550.42
Total 329714550.42
Finance lease as lessor
□ Applicable□Not applicable
Annual undiscounted lease receipts in the next five years
□ Applicable□Not applicable
Reconciliation of undiscounted lease payments to net lease investment
178Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(3) Recognition of selling profit or loss on a finance lease as a producer or distributor
□ Applicable□Not applicable
VIII. R&D Expenditures
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Labor costs 1970701.92 2980237.50
Cost of materials and purchased items 938250.41
Depreciation and amortization expenses 178434.56 70296.60
Others 10841.35 218285.78
Total 3098228.24 3268819.88
Including: expensed R&D expenditures 3098228.24 3268819.88
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:
Subsidiaries disposed of during the current period:
Company name Time of cancellation
Shenzhen Huari Anxin Automobile Inspection Co. Ltd. December 18 2025
X. Equity in Other Entities
1. Equity in subsidiaries
(1) Composition of the group
Unit: RMB
Principal Shareholding proportion
Name of Registered Place of Nature of Acquisition
place of
subsidiary capital registration business Direct Indirect methodbusiness
Shenzhen
Tellus
Jewelry 32900000.0 Establishmen
Shenzhen Shenzhen Commerce 5.00% 95.00%
Technology 0 t
Development
Co. Ltd.Shenzhen
Bao'an
Establishmen
Shiquan 2000000.00 Shenzhen Shenzhen Commerce 0.00% 100.00%
t
Industry Co.Ltd.Shenzhen
SDG Tellus 31150000.0 Establishmen
Shenzhen Shenzhen Commerce 100.00% 0.00%
Real Estate 0 t
Co. Ltd.Shenzhen 1500000.00 Shenzhen Shenzhen Commerce 100.00% 0.00% Establishmen
179Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Tellus t
Chuangying
Technology
Co. Ltd.Shenzhen
Xinyongtong
Motor
Establishmen
Vehicle 9607800.00 Shenzhen Shenzhen Commerce 51.00% 0.00%
t
Inspection
Equipment
Co. Ltd.Shenzhen
Tellus
18960000.0 Establishmen
Shuibei Shenzhen Shenzhen Commerce 100.00% 0.00%
0 t
Jewelry Co.Ltd.Shenzhen
Automobile
Industry 11110000.0 Establishmen
Shenzhen Shenzhen Commerce 0.00% 100.00%
Supply and 0 t
Marketing
Company
Shenzhen
Zhongtian 366221900. Establishmen
Shenzhen Shenzhen Commerce 100.00% 0.00%
Industry Co. 00 t
Ltd.Shenzhen
Huari
Automobile Establishmen
2000000.00 Shenzhen Shenzhen Commerce 60.00% 0.00%
Sales and t
Service Co.Ltd.Shenzhen
Tellus
Treasury 50000000.0 Establishmen
Shenzhen Shenzhen Commerce 100.00% 0.00%
Supply Chain 0 t
Tech Co.Ltd.Shenzhen
Jewelry
100000000. Establishmen
Industry Shenzhen Shenzhen Commerce 65.00% 0.00%
00 t
Service Co.Ltd.Shanghai
Fanyue Establishmen
3500000.00 Shanghai Shanghai Commerce 0.00% 100.00%
Diamond t
Co. Ltd.Guorun Gold
200000000. Establishmen
Shenzhen Shenzhen Shenzhen Commerce 36.00% 3.25%
00 t
Co. Ltd.Acquired
Shenzhen through a
SDG Huari business
USD 40000
Automobile Shenzhen Shenzhen Commerce 60.00% 0.00% merger not
00.00
Enterprise under
Co. Ltd. common
control
180Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Description of the difference between the shareholding percentage and voting rights percentage in the subsidiary:
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 HTI Group Co. Ltd. shall maintain a consensus with the Company when 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 significant structured entities incorporated in the consolidation scope:
The basis to determine whether company is the agent or the principal:
(2) Important non-wholly-owned subsidiaries
Unit: RMB
Profit or loss
Shareholding Dividends declared to Equity balance of
attributable to minority
Name of subsidiary proportion of minority minority shareholders minority shareholders
shareholders in the
shareholders in the current period at the end of the period
current period
Guorun Gold Shenzhen
60.75%-4832660.48115490770.20
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
Name of Non- Non- Non- Non-
subsidiary Current Total Current Total Current Total Current Totalcurrent current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Guorun
Gold 29771596310973940267201366925514972039184389613170156843966288194653039125021985655
Shenzhen 740.32 0.23 10.55 49.59 .26 46.85 30.69 .80 15.49 52.28 .84 55.12
Co. Ltd.Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Name of Total Cash flows Total Cash flows
subsidiary Operating comprehen from Operating comprehen fromNet profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Guorun
--
Gold 11229326 83144531. 22998353 20407000
7954996.67954996.6150733.58150733.58
Shenzhen 15.31 36 71.86 4.99
77
Co. Ltd.
181Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
2. Equity in joint ventures or associates
(1) Important joint ventures or associates
Shareholding proportion Accounting
treatment
Name of joint
Principal place Place of Nature of method for
venture or
of business registration business
associate Direct Indirect
investment in
joint ventures
or associates
I. Joint venture
Shenzhen
Tellus-Gmond Leasing
Shenzhen Shenzhen 50.00% Equity method
Investment Co. services
Ltd.II. Associates
Shenzhen
Renfu Tellus
Automobile
Automobiles Shenzhen Shenzhen 35.00% Equity method
sales
Service Co.Ltd.Explanation of the shareholding percentage being different from the proportion of voting rights in joint ventures or associates:
The basis for 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
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Shenzhen Tellus-Gmond Investment Co. Shenzhen Tellus-Gmond Investment Co.Ltd. Ltd.Current assets 51397472.16 64308170.72
Including: cash and cash equivalents 50299349.75 63261490.89
Non-current assets 279903774.39 301569595.17
Total assets 331301246.55 365877765.89
Current liabilities 48653180.34 46770664.57
Non-current liabilities 157993066.85 206675092.80
Total liabilities 206646247.19 253445757.37
Minority shareholders' equity
Equity attributable to shareholders of the
124654999.36112432008.52
parent company
Shares of net assets calculated as per the
62327499.6856216004.26
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
182Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Book value of equity investments to joint
62327499.6856216004.26
ventures
Fair value of equity investment in joint
ventures with public offer
Operating revenue 137742396.17 132430277.65
Financial expenses 5794114.38 9163348.96
Income tax expenses 17869914.75 15182681.66
Net profit 52222990.84 44108769.17
Net profit from discontinued operations
Other comprehensive income
Total comprehensive income 52222990.84 44108769.17
Dividends received from joint ventures
20000000.0015000000.00
in the current year
(3) Major financial information of important associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Shenzhen Renfu Tellus Automobiles Shenzhen Renfu Tellus Automobiles
Service Co. Ltd. Service Co. Ltd.Current assets 65962048.08 142897387.81
Non-current assets 23459468.10
Total assets 65962048.08 166356855.91
Current liabilities 15619036.94 122597583.76
Non-current liabilities 362341.96
Total liabilities 15619036.94 122959925.72
Minority shareholders' equity
Equity attributable to shareholders of the
50343011.1443396930.19
parent company
Shares of net assets calculated as per the
17620053.9015188925.57
shareholding proportion
Adjustments
--Goodwill
--Unrealized profit of internal
transactions
--Others
Book value of equity investments in
17620053.9015188925.57
associates
Fair value of equity investments in
associates with a public offer
Operating revenue 330908023.73 814278410.46
Net profit 6946080.95 3515984.72
Net profit from discontinued operations
183Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Other comprehensive income
Total comprehensive income 6946080.95 3515984.72
Dividends received from associates in
the current year
(4) Summary of financial information of unimportant joint ventures and associates
Unit: RMB
Ending balance/amount incurred in the Beginning balance/amount incurred in
current period the previous period
Joint ventures:
Total book value of investments 14533606.99 13680093.35
Total amount of the following items at
the shareholding percentage
--Net profit 1649890.24 754101.51
--Total comprehensive income 1649890.24 754101.51
Associates:
Total amount of the following items at
the shareholding percentage
(5) Excess losses incurred by joint ventures or associates
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 failing to receive the estimated amount of government subsidies at the expected time point
□ Applicable□Not applicable
2. Liability-related items with government subsidies
□Applicable □ Not applicable
Unit: RMB
Amount of Amount Amount Other
Accounting Beginning new included in transferred to changes in Ending Asset/income
item balance subsidies in non- other income the current balance -related
the current operating in the current period
184Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
period revenue in period
the current
period
Deferred
7837477.60 1780205.93 6057271.67 Asset-related
income
3. Government subsidies included in the current profit or loss
□Applicable □ Not applicable
Unit: RMB
Accounting item Amount incurred in the current period Amount incurred in the previous period
Other income 478581.87 4744190.54
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 notes
receivable accounts receivable accounts receivable financing other receivables non-current
assets due within one year other current assets held-for trading financial assets debt investments
other debt investments other equity instrument investments long-term receivables notes payable
accounts payable other payables short-term borrowings held-for-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 related notes. Risks associated with
these financial instruments and the risk management policies adopted by the Company to mitigate
these risks 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.
1. 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.
(1) Credit risks
185Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Credit risk is the risk of financial loss of the Company caused by a counterparty's failure to meet
its obligations in a contract.The Company manages credit risks through portfolio classification. Credit risks mainly arise from
deposits in banks notes receivable accounts receivable other receivables long-term receivables
debt investments 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 regularly. 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 within 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 51.14% of the total accounts receivable (2024: 28.78%). Additionally
among the other receivables the amounts owed by the top five companies in amount in arrear
represent 65.83% of the Company's total other receivables (2024: 48.62%).
(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 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 889 million (RMB 20 million at the end of the previous year).
186Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The Company also considers negotiating with suppliers to adopt supplier financing arrangements
to extend payment terms or obtaining funds in advance by selling long-aged accounts receivable
to alleviate the Company's cash flow pressure.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):
Item Ending balance
Within 1 Over 3
year 1–2 years 2–3 years years Total
Financial liabilities: -
Short-term borrowings 1100.23 - - - 1100.23
Derivative financial liabilities 270.23 - - - 270.23
Notes payable 18000.00 - - - 18000.00
Accounts payable 1475.25 2092.40 2457.15 4910.53 10935.34
Other payables 4940.38 2488.48 1827.54 4691.97 13948.37
Non-current liabilities due within one
year 1348.13 - - - 1348.13
Other current liabilities (excluding
deferred income) 221.42 - - - 221.42
Lease liabilities - 1370.55 1386.72 5703.22 8460.49
Long-term payables - - - 392.02 392.02
Total financial liabilities and
contingent liabilities 27355.64 5951.43 5671.41 15697.74 54676.23
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
Item
Within 1 year 1–2 years 2–3 years Over 3years Total
Financial liabilities:
Short-term borrowings 12010.14 - - - 12010.14
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
Non-current liabilities due within
one year 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
187Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
The amount of financial liabilities disclosed in the above table is undiscounted contractual cash
flows and may therefore differ from their book 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
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 have any interest rate hedging policy. However the
management is responsible for monitoring interest rate risks 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
revenue. The previous year's analysis was based on the same assumption and methodology.Exchange rate risk
188Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 in a foreign currency other than the recording 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 exchange rate risks. However the
management is responsible for monitoring exchange rate risks and will consider hedging
significant interest rate risks when necessary.
2. 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 financing methods 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 was 24.68%
(26.85% 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 a decline in the gold product price 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. The accounting period specified
for the hedging relationship is from January 1 2025 to December 31 2025.The approval procedures for the Company to use its 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.
189Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(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:
2025
Listed items Changes in the
Accumulated amount of of the fair value of
Book value of hedged hedging adjustment for fair balance
hedged items
items value of hedged items sheet
used as a basis
(included in the book value of including for recognizing
hedged items) hedged an invalid
items portion ofhedges in 2025
Assets Liabilities Assets Liabilities
Commodity
price risk- 48422300.40 - 756141.87 - Inventories -
inventory
2024
Accumulated amount of Changes in the
hedging adjustment for fair Listed items fair value of
Book value of hedged items value of hedged items of the hedged items
(included in the book value balance used as a basis
of hedged items) sheet for
including recognizing an
Assets Liabilities Assets Liabilities hedged invalid portionitems of hedges in
2024
Commodity
price risk- 115731218.89 - -874345.74 - Inventories
inventory -
Changes in the book value and fair value of hedging instruments are as follows:
2025
Changes in the
Listed items of fair value of
Hedging the balance hedging
instruments' sheet instruments used
nominal Book value of hedging instruments including as a basis for
amount hedging recognizing an
instruments invalid portion of
hedges in 2025
Assets Liabilities
Commodity price Derivative
risk-inventory 48422300.40 - 2702318.10 financial -assets/liabilities
2024
190Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Book value of hedging Changes in the
instruments Listed items of fair value of
Hedging the balance hedging
instruments' sheet instruments used
nominal Assets Liabilities including as a basis foramount hedging recognizing an
instruments invalid portion of
hedges in 2024
Commodity Derivative
price risk- 115731218.89 292078.00 46660.00 financial -
inventory assets/liabilities
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
Other descriptions
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 measurement Level 2 measurement Level 3 measurement
Total
at fair value at fair value at fair value
I. Continuous fair value
--------
measurement
(I) Held-for-trading
117410631.65117410631.65
financial assets
(4) Structured deposits
117410631.65117410631.65
and financial products
191Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(II) Derivative
financial assets
1. Hedging instruments
(III) Other debt
573849427.40573849427.40
investments
1. Large-denomination
573849427.40573849427.40
certificate of deposit
(IV) Other equity
instrument investments
(V) Hedged items 49178442.27 49178442.27
(VI) Held-for-trading
financial liabilities
Total assets
continuously measured 49178442.27 691260059.05 740438501.32
at fair value
(VII) Derivative
2702318.102702318.10
financial liabilities
1. Hedging instruments 2702318.10 2702318.10
Total liabilities
measured at fair value 2702318.10 2702318.10
on a continuous basis
II. Non-continuous fair
--------
value measurement
2. The 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 (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. 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 the Shanghai Gold Exchange and the 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.
192Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Information on level 2 fair value measurement
Content Ending fair value Valuation technique Input value
Derivative instruments:
Derivative financial assets - Discounted cash flow method Expected interest rate
Derivative financial liabilities - Discounted cash flow 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 the adjustment between the beginning book value and the 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 inputvalue technique value Range (weighted 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 and the
market comparable company model. The input values of valuation techniques mainly include the risk-free
interest rate benchmark interest rate exchange rate credit point difference liquidity premium and discount for
lack of marketability (DLOM).
193Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
XIV. Related Parties and Related Party Transactions
1. Information of the parent company
Shareholding Vote proportion of
Name of parent Place of proportion of the the parent
Nature of business Registered capital
company registration parent company to company to the
the Company Company
Real estate
Shenzhen Special
development and
Economic Zone RMB
Shenzhen operation 49.09% 49.09%
Development 6179406000
domestic
Group Co. Ltd.commerce
The ultimate controlling party of the Company is the Shenzhen SASAC.
2. Information on the subsidiaries of the Company
For details of the Company's subsidiaries please refer to Note X. 1.
3. Information on 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 a 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 parties Relationship between other related parties 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 Real Estate Co. Ltd. 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
Shenzhen Zhigu Jinyun Technology Co. Ltd. Enterprise subject to significant influence by shareholders of an
194Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
important subsidiary
Shenzhen ZHL Industrial Co. Ltd. Minority shareholder of an important subsidiary
Beijing Caishikou Department Store Co. Ltd. Minority shareholder of an important subsidiary
Shenzhen Shuntian Electric Vehicle Technology Development
Investment company of the Company
Co. Ltd.Enterprise subject to significant influence by shareholders of an
Shenzhen Zhongminglong Investment Co. Ltd.important subsidiary
Enterprise controlled by minority shareholders of an important
Shenzhen Jinliantong Digital Technology Co. Ltd.subsidiary
Enterprise controlled by minority shareholders of an important
Shenzhen Yuepengjin Jewelry Co. Ltd.subsidiary
Enterprise controlled by minority shareholders of an important
Shenzhen Yuepengjin E-commerce Co. Ltd.subsidiary
Guoren Property & Casualty Insurance Co. Ltd. Enterprise controlled by indirect controlling shareholders
5. Information on related transactions
(1) Related transactions of purchase/sales of commodities and rendering/receiving of labor services
Purchase of goods/receipt of 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
Property
Shenzhen SDG
management 21849017.09 No 20270819.23
Service Co. Ltd.services
Shenzhen SDG
Property
Tellus Property
management 4039761.51 No 1734135.69
Management Co.services
Ltd.Shenzhen SDG
Property
Building
management 339622.65 No 203773.59
Technology Co.services
Ltd.Guoren Property &
Procurement of
Casualty Insurance 245022.72 No 541600.54
insurance services
Co. Ltd.Shenzhen ZHL Gold processing
60811.78 No 841272.75
Industrial Co. Ltd. services
Shenzhen
Gold processing
Yuepengjin 41590.29 No 54091.15
services
Jewelry Co. Ltd.Engineering
Shenzhen Wahlai
Repair and
Decoration & 10014262.73 No 11634732.07
Maintenance
Furniture Co. Ltd.Services
Shenzhen Zhigu
Software Usage
Jinyun Technology 28318.56 No 25994.42
Fee
Co. Ltd.Shenzhen SDG
Engineering Supervision
361060.15 No 775830.53
Management Co. Services
Ltd.Shenzhen SDG Installation No 117768.00
195Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Eastern Service Services of
Co. Ltd. Monitoring
Systems
Information on selling goods/rendering labor services
Unit: RMB
Content of related party Amount incurred in the Amount incurred in the
Related party
transaction current period previous period
Beijing Caishikou
Sales of goods 10579497.89 5942165.99
Department Store Co. Ltd.Shenzhen Yuepengjin Jewelry Property management
481929.30357459.71
Co. Ltd. expenses
Shenzhen Torch Spark Plug
Management esoenses 328900.00
Industry Co. Ltd.Shenzhen SDG Microfinance Property management
188281.23161205.25
Co. Ltd. expenses
Shenzhen ZHL Industrial Co.Agency services 126903.27 452001.02
Ltd.Shenzhen Wahlai Decoration Property management
15756.97
& Furniture Co. Ltd. expenses
Shenzhen Yuepengjin E-
Sales of goods 83815902.66
commerce Co. Ltd.Shenzhen Telixing Property management
283018.87
Investment Co. Ltd. expenses
(2) Information on the related lease
The Company as the lessor:
Unit: RMB
Lease income recognized in Lease income recognized in
Name of lessee Type of assets leased
the current period the previous period
Shenzhen Yuepengjin Jewelry
Lease of houses 1776970.14 357182.10
Co. Ltd.Shenzhen SDG Microfinance
Lease of houses 1098644.46 1101847.98
Co. Ltd.Shenzhen SDG Tellus
Property Management Co. Lease of houses 358688.48 163762.85
Ltd.Shenzhen SDG Service Co.Lease of houses and others 4332602.02 4022405.39
Ltd.Shenzhen Torch Spark Plug
Safe deposit box leasing 2293.58 2293.58
Industry Co. Ltd.Shenzhen Renfu Tellus
Automobiles Service Co. Lease of houses 5190476.19
Ltd.Shenzhen Yongtong Xinda
Lease of houses 8000.00
Testing Equipment Co. Ltd.
(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 5009700.00 4680300.00
196Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
personnel
6. Receivables and payables by related parties
(1) Receivables
Unit: RMB
Ending balance Beginning balance
Item Related party Provision for bad Provision for bad
Book balance Book balance
debts debts
Accounts Shenzhen SDG
759043.357590.431043536.0310435.36
receivable Service Co. Ltd.Beijing Caishikou
Accounts
Department Store 246659.80 2466.60 544715.30 5447.15
receivable
Co. Ltd.Accounts Shenzhen ZHL
92660.26926.60
receivable Industrial Co. Ltd.Shenzhen SDG
Accounts
Microfinance Co. 8593.89 85.94
receivable
Ltd.Shenzhen Torch
Accounts
Spark Plug 1000.00 10.00
receivable
Industry Co. Ltd.Shenzhen Wahlai
Advances to
Decoration & 133260.81
suppliers
Furniture Co. Ltd.Guoren Property &
Advances to
Casualty Insurance 133186.80 162704.37
suppliers
Co. Ltd.Advances to Shenzhen SDG
6605.507200.00
suppliers Service Co. Ltd.Shenzhen ZHL
Other receivables 18731980.00 187319.80 633580.65 6335.81
Industrial Co. Ltd.Shenzhen Tellus
Automobile
Other receivables 1360390.00 1360390.00 1360390.00 1360390.00
Service Chain Co.Ltd.Shenzhen Telixing
Other receivables Investment Co. 127299.21 1272.99 733103.55 36057.45
Ltd.Shenzhen SDG
Tellus Property
Other receivables 57472.05 5695.31 18834.77 3641.74
Management Co.Ltd.Shenzhen Zhigu
Other receivables Jinyun Technology 50000.00 2500.00 50000.00 500.00
Co. Ltd.Shenzhen Xiandao
Other receivables New Materials 660790.09 660790.09
Co. Ltd.Shenzhen
Yongtong Xinda
Other receivables 531882.24 531882.24 531882.24 531882.24
Testing Equipment
Co. Ltd.Other receivables Shenzhen Tellus 114776.33 114776.33 114776.33 114776.33
197Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Xinyongtong
Automobile
Service Co. Ltd.Shenzhen SDG
Liming
Other receivables 2886.00 2886.00
Optoelectronics
(Group) Co. Ltd.Shenzhen Tellus
Long-term Automobile
6146228.916146228.916146228.916146228.91
receivables Service Chain Co.Ltd.
(2) Payables
Unit: RMB
Item Related party Ending book balance Beginning book balance
Shenzhen SDG Service Co.Accounts payable 4136158.12 3865062.67
Ltd.Shenzhen Wahlai Decoration
Accounts payable 1493996.39 5371011.83
& Furniture Co. Ltd.Shenzhen SDG Tellus
Accounts payable Property Management Co. 272000.00
Ltd.Shenzhen Tellus-Gmond
Accounts payable 200000.00 200000.00
Investment Co. Ltd.Shenzhen SDG Engineering
Accounts payable 108038.46 1365692.04
Management Co. Ltd.Shenzhen Machinery &
Accounts payable Equipment Import & Export 45300.00 45300.00
Co. Ltd.Shenzhen Zhigu Jinyun
Accounts payable 12000.00 45652.00
Technology Co. Ltd.Shenzhen ZHL Industrial Co.Accounts payable 316.58 669.57
Ltd.Shenzhen Yuepengjin Jewelry
Accounts payable 28000.00
Co. Ltd.Shenzhen Yuepengjin Jewelry
Advances from customers 36230.60
Co. Ltd.Shenzhen SDG Tellus
Advances from customers Property Management Co. 12920.00 1243.34
Ltd.Shenzhen Yongtong Xinda
Advances from customers 68.00 68.00
Testing Equipment Co. Ltd.Shenzhen SDG Service Co.Advances from customers 0.01
Ltd.Shenzhen SDG Microfinance
Advances from customers 42625.39
Co. Ltd.Hongkong Yujia Investment
Other payables 2255339.58 2255339.58
Limited
Shenzhen Machinery &
Other payables Equipment Import & Export 1554196.80 1575452.52
Co. Ltd.Shenzhen Wahlai Decoration
Other payables 1086322.83 150929.85
& Furniture Co. Ltd.Shenzhen Tellus Yangchun
Other payables 476217.49 476217.49
Real Estate Co. Ltd.
198Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Shenzhen Yuepengjin Jewelry
Other payables 388102.00 388102.00
Co. Ltd.Shenzhen SDG Microfinance
Other payables 237804.66 237804.66
Co. Ltd.Shenzhen SDG Tellus
Other payables Property Management Co. 151818.00 441842.84
Ltd.Shenzhen SDG Service Co.Other payables 68026.80 50506.00
Ltd.Shenzhen SDG Urban
Other payables 28766.05 28766.05
Renewal Investment Co. Ltd.Shenzhen Special Economic
Other payables Zone Development Group 3000.00 3000.00
Co. Ltd.Shenzhen Torch Spark Plug
Other payables 2000.00 143746.10
Industry Co. Ltd.Shenzhen Tellus Automobile
Other payables 800.00 800.00
Service Chain Co. Ltd.Shenzhen Longgang Tellus
Other payables 1095742.50 1095742.50
Real Estate Co. Ltd.Shenzhen Renfu Tellus
Other payables Automobiles Service Co. 0.00 833334.00
Ltd.Shenzhen SDG Engineering
Other payables 0.00 148302.24
Management Co. Ltd.Shenzhen Zhongminglong
Other payables 0.00 14100.00
Investment Co. Ltd.Shenzhen Shuntian Electric
Other payables Vehicle Technology 2000.00 2000.00
Development Co. Ltd.XV. Commitments and Contingencies
1. Important commitments
Important commitments existing on the balance sheet date
As of December 31 2025 the Company had no material capital commitments.
2. Contingencies
(1) Important contingencies existing on the balance sheet date
Contingent liabilities or financial effects formed from providing debt guarantees for other companies
Tellus Shuibei Jewelry a subsidiary of the Company was formerly known as Shenzhen Auto Motive Industry
& Trade General Company. It was converted from an SOE to a limited liability company and renamed in
November 2017. In July 2025 it was renamed Shenzhen Tellus Shuibei Jewelry Co. Ltd. In September 2011
Tellus Shuibei Jewelry and Zhu Jinchao executed the State-owned Enterprise Property Rights Transfer
Contract pursuant to which they publicly listed and transferred their 14.731% equity in Shenzhen Southern
Great Wall Investment Holding Co. Ltd. (hereinafter referred to as "Southern Great Wall Company") in
accordance with the law. On the same day Tellus Shuibei Jewelry and Southern Great Wall Company entered
into the Debt Assumption and Asset Repurchase Agreement (hereinafter referred to as the "Repurchase
199Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Agreement"). This agreement stipulated that the Company would assume full economic and legal responsibility
for all existing/potential debts contingent liabilities and disputes of Southern Great Wall Company arising
before December 31 2001 which were attributable to the Company's non-capital injection assets (including
operations financing and guarantees).In 1997 Southern Great Wall Company provided a guarantee for a loan extended by Bank of Communications
Co. Ltd. to China Automotive Industry Shenzhen Trading Co. Ltd. This guaranteed obligation was incurred
before December 31 2001. As the primary debtor defaulted the case was adjudicated by the court with
enforcement proceedings reinstated in 2024 (Case No. (2024) Yue 0304 ZH No. 1936). Subsequently Southern
Great Wall Company settled with the enforcement applicant and made the corresponding payment. Southern
Great Wall Company and its original shareholders Zhu Jinchao and Yu Zhanglin submitted a Notification
Letter and supporting documents to Tellus Shuibei Jewelry making the following demands: designate a
dedicated liaison department to re-establish communication channels; and require Tellus Shuibei Jewelry to
cover the alleged guarantee losses amounting to RMB 10.7544 million (comprising principal of RMB 9.88
million interest of RMB 197600 attorney fees of RMB 600000 and execution fees of RMB 76800).As of December 31 2025 there was no contingency to be disclosed by the Company.
(2) In case of no important contingencies to be disclosed a description shall be given
The Company had 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) 1.1
Number of dividends per 10 shares declared after deliberation
1.1
and approval (RMB)
Pursuant to the 2025 Profit Distribution Plan approved at the
Eighteenth Formal Meeting of the Tenth Board of Directors on
April 20 2026 the Company proposes to distribute a cash
dividend of RMB 1.10 (tax inclusive) per 10 shares to all
Profit distribution scheme shareholders based on the total share capital of 431058320
shares as of December 31 2025 resulting in a total cash
dividend distribution of RMB 47416415.20. No bonus shares
were issued for the current year and no capital reserves were
converted into share capital.
2. Descriptions for other events after the balance sheet date
As of April 20 2026 the Company had no events after the balance sheet date that should be disclosed.
200Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
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 two 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;
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
Jewelry wholesale and
Item Leasing and services Inter-segment offset Total
retail services
Operating revenue 332053853.84 1132159330.29 -2609783.60 1461603400.53
Operating cost 115617665.42 1083245382.60 13173600.65 1212036648.67
Total assets 2862056543.60 507589782.51 -719487883.58 2650158442.53
Total liabilities 447751556.45 230597178.41 -24310138.87 654038595.99
XVIII. Notes to Major Items of the Parent Company’s Financial Statements
1. Accounts receivable
(1) Disclosure by account receivable age
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 10660018.72 17614712.56
1–2 years 58567.71 2352446.33
2–3 years 77741.87
Over 3 years 77741.87 484803.08
3–4 years 77741.87
More than 5 years 484803.08
Total 10796328.30 20529703.84
201Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(2) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Accounts
receivable
with
provision 484803.08 2.36% 484803.08 100.00%
for bad
debts on a
single basis
Including
:
Accounts
receivable
for which
provision
10796328.10650313.20044900.19714030.
for bad 100.00% 146014.99 1.35% 97.64% 330869.94 1.65%
30317682
debts is
made by
combinatio
n
Including
:
Including:
10796328.10650313.20044900.19714030.
aging 100.00% 146014.99 1.35% 97.64% 330869.94 1.65%
30317682
portfolio
10796328.10650313.20529703.19714030.
Total 100.00% 146014.99 1.35% 100.00% 815673.02 3.97%
30318482
Provision for bad debts made by portfolio: aging portfolio
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Within 1 year 10415141.55 104215.66 1.00%
1–2 years 58567.71 2928.39 5.00%
2–3 years
Over 3 years 77741.87 38870.94 50.00%
Total 10551451.13 146014.99
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 Expected credit loss
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
202Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Balance as of January
330869.94484803.08815673.02
12025
Balance as of January
1 2025 in the current
period
Reversal in the current
184854.95184854.95
period
Cancellation in the
484803.08484803.08
current period
Balance as of
146014.990.00146014.99
December 31 2025
(3) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the current period:
Unit: RMB
Change during the current period
Beginning
Category Ending balance
balance Recovery orProvision Write-off Others
reversal
Provision for
815673.02184854.95484803.08146014.99
bad debts
Total 815673.02 184854.95 484803.08 146014.99
(4) Accounts receivable that have been written off in the current period
Unit: RMB
Item Write-off amount
Accounts receivable actually written off 484803.08
(5) Accounts receivable and contractual assets with the top five ending balances collected as per the
borrowers
Unit: RMB
Ending balance of
bad debt
Proportion in total
Ending balance of proportion of
Ending balance of ending balance of
Ending balance of accounts accounts
Name accounts accounts
contract assets receivable and receivable and
receivable receivable and
contract assets impairment
contractual assets
provision of
contract assets
Zhongbao Jinyuan
(Shenzhen)
Industrial 1389236.36 1389236.36 12.87% 13892.36
Development Co.Ltd.Shenzhen Jinyu
1003030.881003030.889.29%10030.31
Jewelry Co. Ltd.Chow Sang Sang
991143.46991143.469.18%9911.43
(China) Co. Ltd.
Shenzhen Seven 625595.33 625595.33 5.79% 6255.95
203Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Degree
Silversmith Family
Industrial Co. Ltd.Shenzhen Baijue
Industrial
623891.20623891.205.78%6238.91
Development Co.Ltd.Total 4632897.23 4632897.23 42.91% 46328.96
2. Other receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 3711404.11 2839370.67
Total 3711404.11 2839370.67
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Project (or the investee) Ending balance Beginning balance
China Pufa Machinery Industry Co. Ltd.
2) Dividends receivable of important account receivable age of over 1 year
Unit: RMB
Project (or the Reason for non- Impairment and
Ending original value Aging
investee) recovery judgment basis
The company has huge
losses in its financial
positions and operating
China Pufa Machinery conditions and the
1305581.86 3–4 years Not paid yet
Industry Co. Ltd. dividends receivable
may not be recovered
so full impairment is
accrued.Total 1305581.86
3) Disclosure by bad debt accrual method
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Provision for bad Provision for bad
Categor Book balance Book balancedebts debts
y Book Book
Proporti Proporti value Proporti Proporti value
Amount Amount on of Amount Amounton on on of
provisio provisio
204Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
n n
Provisio
n for bad
debts
130558130558130558130558
made on 100.00% 100.00% 100.00% 100.00%
1.861.861.861.86
an
individu
al basis
Incl
uding:
Incl
uding:
130558130558130558130558
Total 100.00% 100.00% 100.00% 100.00%
1.861.861.861.86
Provision for bad debts made on an individual basis:
Unit: RMB
Beginning balance Ending balance
Name Provision for Provision 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 1305581.86 100.00% financial
Industry Co.position is poor
Ltd.Total 1305581.86 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
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
Balance as of January
1305581.861305581.86
12025
Balance as of January
1 2025 in the current
period
Balance as of
1305581.861305581.86
December 31 2025
Division basis and proportion of provision for bad debts at each stage
Changes in book balance with a significant amount changed of loss provision in the current period
□ Applicable□Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Unit: RMB
Change during the current period
Beginning
Category Recovery or Charge-off or Ending balancebalance Provision Other changes
reversal write-off
Provision for 1305581.86 1305581.86
205Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
bad debts
Total 1305581.86 1305581.86
(2) Other receivables
1) Classification of other receivables by nature
Unit: RMB
Nature of payment Ending book balance Beginning book balance
Other temporary payments receivable 8125713.98 13967525.96
Deposits and security deposits 1610786.54 1556456.27
Concerned intercourse funds within the
1562399.8961.00
consolidation scope of receivables
Total 11298900.41 15524043.23
2) Disclosure by account receivable age
Unit: RMB
Aging Ending book balance Beginning book balance
Within 1 year (inclusive) 1980198.21 404467.63
1–2 years 279081.91 2557254.64
2–3 years 1837736.29 1091.61
Over 3 years 7201884.00 12561229.35
More than 5 years 7201884.00 12561229.35
Total 11298900.41 15524043.23
3) Disclosure by bad debt accrual method
Unit: RMB
Ending balance Beginning balance
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book value Proportion Book value
Amount Proportion Amount of Amount Proportion Amount of
provision provision
Provision
for bad
debts made 7152122.9 7152122.9 12511524. 12511524.
63.30%100.00%0.0080.59%100.00%0.00
on an 8 8 83 83
individual
basis
Including
:
Provision
for bad
debts made 4146777.4 3711404.13012518.4 2839370.6
36.70%435373.3210.50%19.41%173147.735.75%
on a 3 1 0 7
portfolio
basis
Including
206Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
:
Aging 2535990.8 2407727.11456062.0 1392794.6
22.44%128263.705.06%9.38%63267.364.35%
portfolio 9 9 4 8
Portfolio of
deposit and
1610786.51303676.91556456.31446575.9
security 14.26% 307109.62 19.07% 10.03% 109880.37 7.06%
4269
deposit
receivable
11298900.7587496.33711404.115524043.12684672.2839370.6
Total 100.00% 67.15% 100.00% 81.71%
410123567
Provision for bad debts made on a portfolio basis:
Unit: RMB
Ending balance
Name
Book balance Provision for bad debts Proportion of provision
Aging portfolio 2535990.89 128263.70 5.06%
Portfolio of deposit and 1610786.54 307109.62 19.07%
security deposit receivable
Total 4146777.43 435373.32
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
Provision for bad debts Expected credit loss in throughout the duration throughout the duration Total
the next 12 months (no credit impairment (credit impairment has
has occurred) occurred)
Balance as of January
173147.7312511524.8312684672.56
12025
Balance as of January
1 2025 in the current
period
Provision in the current
262225.59-17899.51244326.08
period
Cancellation in the
5306106.095341502.34
current period
Other changes -35396.25 -35396.25
Balance as of
435373.327152122.987587496.30
December 31 2025
Division basis and proportion of provision for bad debts at each stage
Changes in book balance with a significant amount changed of loss provision in the current period
□ Applicable□Not applicable
4) Bad debt provision provided recovered or reversed in the current period
Bad debt provision in the current period:
Unit: RMB
Change during the current period
Beginning
Category
balance Recovery or Charge-off or
Ending balance
Provision Others
reversal write-off
Provision for 12684672.56 244326.08 5306106.09 -35396.25 7587496.30
207Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
bad debts
Total 12684672.56 244326.08 5306106.09 -35396.25 7587496.30
5) Other receivables actually written off in the current period
Unit: RMB
Item Write-off amount
Other receivables actually written off 5306106.09
6) Other receivables of the top five period-end balances by the owing party
Unit: RMB
Proportion to Ending balance of
Name Nature Ending balance Aging ending balance of provision for bad
other receivables debts
Shenzhen
Transaction
Zhonghao (Group) 5000000.00 Over 3 years 44.25% 5000000.00
payments
Co. Ltd.Shenzhen
Transaction
Petrochemical 1927833.34 Over 3 years 17.06% 1927833.34
payments
Group Co. Ltd.Shenzhen Jinzhou
Precision Guarantees 1515467.96 2–3 years 13.41% 303093.59
Technology Corp.Shenzhen Tellus
Treasury Supply Transaction 1–2 years over 1
745497.206.60%
Chain Tech Co. payments year
Ltd.China
Construction First 2–3 years 1–2
Others 583978.93 5.17% 74998.00
Group Corporation years
Limited
Total 9772777.43 86.49% 7305924.93
3. Long-term Equity Investments
Unit: RMB
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in
713610774.41713610774.41715566774.411956000.00713610774.41
subsidiaries
Investment in
associates and 97700900.97 3225000.00 94475900.97 94878995.52 9787162.32 85091833.20
joint ventures
Total 811311675.38 3225000.00 808086675.38 810445769.93 11743162.32 798702607.61
208Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
(1) Investment in subsidiaries
Unit: RMB
Beginning Beginning Increase/decrease in the current period Ending Ending
balance balance of Provision balance balance ofInvestee
(book impairment Additional Reduced for Others (book impairment
value) provision investment investment impairment value) provision
Shenzhen
SDG Tellus 31152888 31152888.Real Estate .87 87
Co. Ltd.Shenzhen
Tellus
Chuangying 526308.52 526308.52
Technology
Co. Ltd.Shenzhen
Tellus
Jewelry 2883644. 2883644.2
Technology 26 6
Developme
nt Co. Ltd.Shenzhen
Zhongtian 36968052 36968052
Industry 2.90 2.90
Co. Ltd.Shenzhen
Tellus
8625107186251071.
Shuibei.5757
Jewelry
Co. Ltd.Shenzhen
SDG Huari
6190892661908926.
Automobile.7777
Enterprise
Co. Ltd.Shenzhen
Huari
Automobile 1807411. 1807411.5
Sales and 52 2
Service Co.Ltd.Shenzhen
Xinyongton
g Motor
4900000.4900000.0
Vehicle
000
Inspection
Equipment
Co. Ltd.Shenzhen
Tellus
Treasury 50000000 50000000.Supply .00 00
Chain Tech
Co. Ltd.Shenzhen 1956000.0 -
209Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Hanli High 0 1956000.0
Tech 0
Ceramics
Co. Ltd.Shenzhen
Jewelry
3250000032500000.
Industry.0000
Service Co.Ltd.Guorun
Gold 72000000 72000000.Shenzhen .00 00
Co. Ltd.-
713610771956000.071361077
Total 1956000.0
4.4104.41
0
(2) Investment in associates and joint ventures
Unit: RMB
Increase/decrease in the current period
Beginning Beginning Investment Cash Ending Ending
balance balance of profit or Adjustment dividend or balance balance of
Investee Other Provision
(book impairment Additional Reduced loss to other profitequity for Others (book impairment
value) provision investment investment recognized comprehens declared tochanges impairment value) provision
by equity ive income be
method distributed
I. Joint venture
Shenzhen
Tellus-
56216004.26111495.20000000.62327499.
Gmond
26420068
Investment
Co. Ltd.Shenzhen
Telixing 13686903. 14528347.
841444.02
Investment 37 39
Co. Ltd.
69902907.26952939.20000000.76855847.
Subtotal
63440007
II. Associates
Shenzhen
Renfu
Tellus 15188925. 2431128.3 17620053.Automobile 57 3 90
s Service
Co. Ltd.Hunan
-
Changyang 1810540.7
1810540.7
Industrial 0
0
Co. Ltd.Shenzhen
Jiecheng 3225000.0 3225000.0
Electronics 0 0
Co. Ltd.Shenzhen 4751621.6 -
210Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
Xiandao 2 4751621.6
New 2
Materials
Co. Ltd.Shenzhen
Tellus
Automobile
Service
Chain Co.Ltd.-
15188925.9787162.32431128.317620053.3225000.0
Subtotal 6562162.3
5723900
2
-
85091833.9787162.329384067.20000000.94475900.3225000.0
Total 6562162.3
2027700970
2
The recoverable amount is determined based on the net amount after deducting disposal expenses from the fair value
□ Applicable□Not applicable
The recoverable amount is determined according to the present value of the expected future cash flow
□ Applicable□Not applicable
Reasons for the obvious inconsistency between the aforementioned information and the information used in the impairment test of
previous years or external information
Reasons for the obvious inconsistency between the information adopted by the Company's impairment test in previous years and
the actual situation in those years
4. Operating revenue and operating costs
Unit: RMB
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Costs Revenue Costs
Main business 117402423.15 53554271.59 118323197.59 51537706.69
Total 117402423.15 53554271.59 118323197.59 51537706.69
5. Investment income
Unit: RMB
Item Amount incurred in the current period Amount incurred in the previous period
Long-term equity investment income
133425000.0071225000.00
calculated by the cost method
Long-term equity investment income
29384067.7723580345.63
calculated by the equity method
Investment income from held-for-trading
1882201.185651479.29
financial assets during the holding period
Interest income from large-denomination
certificates of deposit and time deposits 8576431.86 3291166.67
during the holding period
Total 173267700.81 103747991.59
211Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
XIX. Supplementary Information
1. Breakdown of current non-recurring profits and losses
□Applicable □ Not applicable
Unit: RMB
Item Amount Note
Profits and losses from disposal of non-
-7087.09
current assets
Government subsidies included in the
current profit and loss (excluding those
which are closely related to the
Company's normal business operations
in line with national policies and 2258991.39
regulations and granted in accordance
with defined criteria and have a
continuous influence on the Company's
profit and loss)
Profit or loss from changes in the fair
value of financial assets and financial
liabilities held by the Company as a non-
financial company as well as profit or
loss from the disposal of the financial 412414.59
assets and financial liabilities except in
effective hedging activities related to the
normal operating activities of the
Company.Reversal of impairment provision for
receivables under separate impairment 1039272.04
test
Other non-operating revenue and
2892647.04
expenses than the above items
Less: effect on income tax 1644348.45
Effect on minority interests (after-
489972.15
tax)
Total 4461917.37 --
Specific conditions of other profits or losses conforming to the definition of non-recurring profit or loss:
□ Applicable□Not applicable
The Company has no other profits or losses conforming to the definition of non-recurring profit or loss.Explanation on defining the non-recurring profits or losses set out in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Securities to the Public—Non-Recurring Profit or Loss as recurring profits or losses
□Applicable □ Not applicable
Amount involved
Item Reason
(RMB)
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.Effective hedging -31471401.86
Therefore based on the nature and characteristics of its normal business operations
the Company has classified the following items listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Securities to
212Full Text of the 2025 Annual Report of Shenzhen Tellus Holding Co. Ltd.
the Public—Non-Recurring Profit or Loss (2023 Revision) as recurring profit or loss
items: effective hedging related to the normal operations of non-financial enterprises;
profits or losses from changes in the fair value of financial assets and financial
liabilities held; and profits or losses from the disposal of financial assets and financial
liabilities.According to the Explanatory Announcement No. 1 on Information Disclosure for
Refund of Companies Offering Securities to the Public—Non-Recurring Profit or Loss (2023
handling fees for Revision) the refund of handling fees for individual income tax received by the
50339.52
individual income Company and its subsidiaries is categorized as income related to routine activities. As
tax it is neither of a special nature nor incidental it is classified as a recurring profit or
loss item.
2. Return on net assets and earnings per share
Earnings per share
Profit during the reporting Weighted average return on
period net assets Basic earnings per share Diluted earnings per share
(RMB/share) (RMB/share)
Net profit attributed to
ordinary shareholders of the 8.06% 0.3314 0.3314
Company
Net profit attributed to
ordinary shareholders of the
Company after non-recurring 7.81% 0.3211 0.3211
profits and losses are
deducted
3. Accounting data differences under domestic and foreign accounting standards
(1) Differences in net profits and net assets in the financial reports disclosed simultaneously according to
the international accounting standards and the 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 the 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 an overseas audit firm specify the name of the
audit firm
4. Others
213
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