Audit report
ZTE Huashen Document No. (2026) 010146
To all shareholders of Nanjing Putian Communication Co. Ltd.:
一、audit opinion
We have audited the financial statements of Nanjing Putian Communications Co. Ltd.(hereinafter referred to as "Nanjing Putian Company") including the consolidated and parent
company balance sheets as of December 312025; the consolidated and parent company income
statements consolidated and parent company cash flow statements consolidated and parent
company statement of changes in equity for the year ended 2025; and the accompanying notes to
the financial statements.We conclude that the accompanying financial statements have been prepared in all material
respects in accordance with the Enterprise Accounting Standards fairly presenting Nanjing Putian
Company's consolidated and parent company's financial position as of December 312025 as well
as their consolidated and parent company's operating results and cash flows for the year 2025.二、The basis for forming an audit opinion
We conducted the audit in accordance with the provisions of the China Certified Public
Accountant Auditing Standards. The section "Certified Public Accountant's Responsibility for
Auditing the Financial Statements" in the audit report further elaborates on our responsibilities
under these standards. In compliance with the China Certified Public Accountant Independence
Standards and the China Certified Public Accountant Code of Professional Ethics we maintained
independence from Nanjing Putian Company and fulfilled other professional ethical obligations. We
are confident that the audit evidence obtained was sufficient and appropriate providing a solid basis
for our audit opinion.三、Key Audit Matters
Key audit matters are those that based on professional judgment we consider most significant
for the current financial statements audit. The treatment of these matters is informed by our overall
audit of the financial statements and the resulting opinion; we do not issue separate opinions on
them. The following matters have been identified as key audit matters to be disclosed in the audit
report.(I) Revenue Recognition
1. Task Description
As detailed in Note 3 and Note 24 as well as Note 5 and Note 37 regarding operating revenue
1and operating costs in the financial statements your company's sales revenue for the year 2025
amounted to RMB 617.6395 million.Operating revenue is one of your company's key performance indicators and a significant
component of profit generation. There is an inherent risk that management may manipulate revenue
recognition to achieve specific objectives; therefore we have identified revenue recognition as a
critical audit matter.
2. Audit Response
(1) Understand and evaluate the design and operational effectiveness of key internal controls
related to revenue recognition by management.
(2) Conduct a sampling inspection of your company's revenue-related documents—including
sales contracts sales invoices shipping records and customer receipt confirmations—to assess
whether the revenue recognition complies with your company's accounting policies for revenue
recognition.
(3) Conduct analytical review procedures on operating revenue and gross margin by customer
segments and other dimensions to assess the reasonableness of their fluctuations.
(4) Send confirmation letters regarding the accounts receivable balances from major customers
to verify the authenticity and accuracy of your company's revenue recognition.
(5) For operating revenue recognized before and after the balance sheet date verify shipping
records customer receipt documents and other relevant materials to ensure the revenue is properly
recognized within the appropriate period.(II) Provision for bad debts on accounts receivable
1. Task Description
As of December 312025 as detailed in Note 3.10 and Note 5.3 of the financial statements the
Company's accounts receivable balance stood at RMB 515.842 million with a bad debt provision of
RMB 192.2551 million and a carrying amount of RMB 323.5869 million representing 44.33% of
total assets.Based on the credit risk characteristics of each accounts receivable management measures the
loss provision for individual accounts receivable or collections portfolios at an amount equivalent to
the expected credit loss over the entire lifetime of the accounts receivable.Given the substantial amount of accounts receivable failure to collect them on time or the
occurrence of bad debts would have a significant impact on the company's financial statements.Moreover determining the amount of bad debt provisions involves critical management judgments
and estimates; therefore we have identified the recognition of accounts receivable bad debt
2provisions as a key audit matter.
2. Audit Response
The primary audit procedures implemented regarding the provision for bad debts on accounts
receivable include:
(1) Understand and evaluate the design and operational effectiveness of key internal controls
related to accounts receivable bad debt provisions;
(2) For accounts receivable assessed individually for bad debt provisions we conducted a
sampling review of the management's basis for calculating recoverable amounts including their
assessment of credit risk based on the client's current credit standing repayment willingness and
repayment capacity.
(3) For accounts receivable for which bad debt provisions are calculated based on aging groups
we conducted sample reviews of key information such as aging periods and overdue days.
(4) We reviewed the management's calculation of the allowance for bad debts on accounts
receivable;
(5) Conduct confirmation letters for significant accounts receivable and evaluate the
reasonableness of management's provision for bad debts by combining post-period collection data
and analysis of reasons for prolonged outstanding balances.四、Other Information
The management of Nanjing Putian Company (hereinafter referred to as the "Management") is
responsible for other information. This other information includes the information contained in
Nanjing Putian Company's 2025 Annual Report excluding the financial statements and our audit
report.Our audit opinion on the financial statements does not cover other information nor do we
issue any form of attestation conclusion regarding such other information.In conjunction with our audit of the financial statements our responsibility is to review other
information and determine whether such information exhibits material inconsistencies with the
financial statements or with findings made during the audit or appears to contain material
misstatements.Based on the work we have already conducted if we identify material misstatements in other
information we should report such findings. In this regard there are no matters requiring reporting.五、The responsibilities of management and governance layers regarding financial
statements
The management is responsible for preparing financial statements in accordance with the
3provisions of the Enterprise Accounting Standards to ensure their fair presentation and for
designing implementing and maintaining necessary internal controls to prevent material
misstatements in the financial statements resulting from fraud or error.When preparing the financial statements management is responsible for assessing Nanjing
Putian Company's ability to continue as a going concern disclosing events related to the going
concern (where applicable) and applying the going concern assumption unless management
plans to liquidate Nanjing Putian Company cease operations or has no other realistic alternatives.The management layer is responsible for overseeing the financial reporting process of
Nanjing Putian Company.六、The responsibilities of a Certified Public Accountant in auditing financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a
whole are free from material misstatements resulting from fraud or error and to issue an audit
report containing an audit opinion. Reasonable assurance represents a high level of assurance;
however it does not guarantee that an audit conducted in accordance with audit standards will
always detect the presence of a material misstatement. A misstatement may arise from fraud or
error and it is generally considered material if there is a reasonable expectation that the
misstatement individually or in combination could affect the economic decisions made by users
of the financial statements based on those statements.During the audit conducted in accordance with auditing standards we exercised professional
judgment and maintained professional skepticism. Additionally we performed the following audit
tasks:
(1) Identify and assess the risk of material misstatements in financial statements arising from
fraud or error design and implement audit procedures to address these risks and obtain sufficient
and appropriate audit evidence as the basis for forming an audit opinion. Since fraud may involve
collusion forgery intentional omission false statements or overriding internal controls the risk
of failing to detect material misstatements due to fraud is higher than the risk of failing to detect
material misstatements due to error.
(2) Understand the internal controls relevant to the audit to design appropriate audit
procedures but the purpose is not to express an opinion on the effectiveness of the internal
controls.
(3) Evaluate the appropriateness of the accounting policies adopted by management and the
reasonableness of accounting estimates and related disclosures.
(4) Draw conclusions regarding the appropriateness of management's use of the going
concern assumption. Simultaneously based on the audit evidence obtained determine whether
4there are material uncertainties concerning matters or circumstances that could raise significant
doubts about Nanjing Putian Company's ability to continue as a going concern. If we conclude
that material uncertainties exist audit standards require us to draw the attention of statement users
to the relevant disclosures in the financial statements; if the disclosures are inadequate we shall
issue a qualified opinion. Our conclusions are based on the information available as of the audit
report date. However future events or circumstances may result in Nanjing Putian Company
being unable to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and
determine whether they fairly present the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities of Nanjing Putian Company to form an opinion on the financial
statements. We are responsible for guiding supervising and executing the group audit. We bear
full responsibility for the audit opinion.We communicated with the management regarding the planned audit scope timeline and
significant audit findings including the critical internal control deficiencies identified during the
audit.We have also provided the management with a statement regarding our compliance with the
professional ethical requirements related to independence and have communicated with the
management all relationships and other matters that could reasonably be considered to affect our
independence along with the relevant safeguards (where applicable).From the matters communicated with the management we identify those that are most
critical to the audit of the current financial statements thus constituting key audit matters. We
describe these matters in the audit report unless prohibited by law or regulation from public
disclosure; or in very rare circumstances if it is reasonably expected that disclosing a particular
matter would entail negative consequences outweighing the benefits to the public interest we
determine that the matter should not be disclosed in the audit report.ZHONGXINGHUACERTIFIED PUBLIC ACCOUNTANTS LLP
China · Beijing
5China Certified Public Accountants:
(Project Partner)
China Certified Public Accountant:
22 April 2026
consolidated balance sheet
Compiling unit: Nanjing Putian Communication Co. Ltd. Decemb Unit of
er 31 currency:
2025 RMByuan
Item Notes 2025/12/31 2024/12/31
current assets：
monetary capital V.1 182285495.92 292600989.80
Deposit Reservation for Balance
lending funds
tradable financial assets
derivative financial assets
bill receivable V.2 17228499.09 542048.95
accounts receivable V.3 323586922.02 293535326.34
Receivables financing V.4 27655375.14 34520299.04
advance payment V.5 3455153.02 2227763.86
receivable premium
reinsurance accounts receivable
provision of cession receivable
receivable other V.6 5239886.21 6859962.77
redemptory monetary capital for sale
stock V.7 61937412.34 87136190.30
Contract assets
Assets Held for Sale
Non-current assets due within one year
other current assets V.8 2196783.91 1226580.06
Total current assets 623585527.65 718649161.12
6non-current assets：
Granting entrusted loans and advances
Debt investment
other investment on bonds
long-term receivables
long-term equity investment V.9 1041268
3.37
Other equity instrument investments V.10 741953.00 741953.00
Other non-current financial assets
investment real estate V.11 4977270.72 5547238.47
fixed assets V.12 84173058.11 85757024.11
construction in process
productive biological asset
oil and gas assets
right-of-use asset V.13 2187184.72 2447793.04
intangible assets V.14 11203970.58 11672324.70
development expenditure
business reputation
long-term unamortized expenses V.15 3054632.19 2076305.95
deferred income tax assets V.16
other non-current assets V.17 719280.0
0
summation of non-current assets 106338069.32 119374602.64
total assets 729923596.97 838023763.76
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated balance sheet(Continued)
Compiling unit: Nanjing Putian Communication Co. Ltd. Decemb Unit of
er 31 currency:
2025 RMByuan
Item Notes 2025/12/31 2024/12/3
current liabilities：
7short-term borrowing V.19 203925721.98 1281279
87.75
borrowings from central bank
loans from other banks and other financial institutions
trading financial liabilities
Derivative financial liability
notes payable V.20 6775234.17 1012222
5.75
accounts payable V.21 273382306.86 3493421
79.21
account collected in advance V.22 295001.06 236005.3
Repayment of financial assets through sale and repurchase
deposits from customers and interbank
acting trading securities
acting underwriting securities
Contract liabilities V.23 8426313.45 2479491
9.13
employee pay payable V.24 12622282.49 1706696
2.98
tax payable V.25 6042197.80 8459692.
52
other payables V.26 49032066.18 4191807
4.35
Covering handling fees and commissions
Cession insurance premiums payable
Liabilities Held for Sale
Non-current liabilities due within one year V.27 70899913.72 8806065
9.43
other current liability V.28 10920413.23 3125042.
32
total current liability 642321450.94 6712537
48.76
non-current liability：
reserve fund for insurance contracts
money borrowed for long term V.29 7000000
0.00
bonds payable
Among them: Preferred stock
perpetual bond
lease liability V.30 840373.9
6
long-term payable
Long-term employee compensation payable
anticipation liabilities
8deferred income
deferred income tax liabilities
other non-current liabilities
total non-current liabilities 7084037
3.96
total liability 642321450.94 7420941
22.72
stockholders' equity：
capital stock V.31 215000000.00 2150000
00.00
other equity instruments
Among them: Preferred stock
perpetual bond
Capital Reserve V.32 201318128.61 1979558
67.58
Subtract: Treasury Stock V.33 2995076.96 2995076.
96
other comprehensive income V.34 -1854910.00 -
1854910.
00
reasonable reserve
Surplus Reserve V.35 589559.77 589559.7
7
General Risk Reserve
undistributed profit V.36 -403806789.70 -
3943444
27.37
Total shareholders' equity attributable to the parent company 8250911.72 1435101
3.02
minority stockholder's interest 79351234.31 8157862
8.02
Total Shareholders' Equity 87602146.03 9592964
1.04
Total liabilities and shareholders' equity 729923596.97 8380237
63.76
(The attached financial statement notes are an integral part
of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
balance sheet
Compiling unit: Nanjing Putian Communication Co. December Unit of currency:
Ltd. 31 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
current assets：
monetary capital 36959492.02 76313327.62
9tradable financial assets
derivative financial assets
bill receivable 510041.40
accounts receivable XV.1 60911892.03 80557834.64
Receivables financing
advance payment 1077733.24 1238241.47
receivable other XV.2 30491285.66 22894075.34
stock 6084321.32 12704303.71
Contract assets
Assets Held for Sale
Non-current assets due within one year
other current assets 684787.04 141091.78
Total current assets 136719552.71 193848874.56
non-current assets：
Debt investment
other investment on bonds
long-term receivables
long-term equity investment XV.3 41931948.52 52344631.89
Other equity instrument investments 741953.00 741953.00
Other non-current financial assets
investment real estate
fixed assets 33285551.38 35919673.67
construction in process
productive biological asset
oil and gas assets
right-of-use asset 2187184.72 2447793.04
intangible assets 3898367.83 4023784.51
development expenditure
business reputation
long-term unamortized expenses 1020871.30 1640998.52
deferred income tax assets
other non-current assets
summation of non-current assets 83065876.75 97118834.63
10total assets 219785429.46 290967709.19
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
balance sheet (Continued)
Compiling unit: Nanjing Putian Communication Co. December Unit of currency:
Ltd. 31 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
current liabilities：
short-term borrowing 101610266.35 30031625.00
trading financial liabilities
Derivative financial liability
notes payable 446679.01 1809060.50
accounts payable 78170882.89 114611153.64
account collected in advance
Contract liabilities 6428573.95 6674105.73
employee pay payable 7257940.39 7646826.89
tax payable 250156.31 1195504.22
other payables 80527424.76 86160362.06
Liabilities Held for Sale
Non-current liabilities due within one year 70899913.72 88060659.43
other current liability 1351067.90 867633.75
total current liability 346942905.28 337056931.22
non-current liability：
money borrowed for long term 70000000.00
bonds payable
Among them: Preferred stock
perpetual bond
lease liability 840373.96
long-term payable
Long-term employee compensation payable
anticipation liabilities
deferred income
11deferred income tax liabilities
other non-current liabilities
total non-current liabilities 70840373.96
total liability 346942905.28 407897305.18
stockholders' equity：
capital stock 215000000.00 215000000.00
other equity instruments
Among them: Preferred stock
perpetual bond
Capital Reserve 158864042.34 158864042.34
Subtract: Treasury Stock 2995076.96 2995076.96
other comprehensive income -1854910.00 -1854910.00
reasonable reserve
Surplus Reserve 589559.76 589559.76
undistributed profit -496761090.96 -486533211.13
Total Shareholders' Equity -127157475.82 -116929595.99
Total liabilities and shareholders' equity 219785429.46 290967709.19
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated income statement
Compiling unit: Nanjing Putian Communication Co. The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Total Operating Revenue 617639484.96 811670527.41
Among them: Operating Revenue V.37 617639484.96 811670527.41
II. Total Operating Costs 628448399.42 820400148.89
Among them: Operating costs V.37 487520396.95 635224730.05
Taxes and surcharges V.38 3827452.67 6128112.45
selling expenses V.39 55636075.45 71756768.98
Administrative Expenses V.40 43658123.43 62275909.90
R&D expenses V.41 29208797.71 34850835.24
Financial Expenses V.42 8597553.21 10163792.27
Among them: Interest expense 8748305.48 10723524.38
12interest income 452186.54 639938.05
Add: Other income V.43 4600883.38 2783558.31
Investment income (losses are indicated by a "-" V.44 8038145.41 52296543.73
sign)
Among them: Investment income from associated 7389042.29 -5.77
enterprises and joint ventures
Gain from the derecognition of financial assets
measured at amortized cost
Exchange gains (losses are indicated by a "-" sign)
Net exposure hedging gain (loss is filled with a "-"
sign)
Fair value change gain (loss filled with "-" sign for
losses)
Credit impairment loss (losses are filled in with a "-" V.45 -6979118.96 -7634385.51
sign)
Asset impairment loss (losses are filled in with a "-" V.46 -2237689.03 -14428752.85
sign)
Asset Disposal Gain/Loss (Losses are indicated by a V.47 5359026.59 1083098.78
"-" sign)
III. Operating Profit (Losses are indicated by a "-" -2027667.07 25370440.98
sign)
?Add: Non-operating Income V.48 3000746.99 3583432.03
Less: Non-operating expenses V.49 522903.55 3667282.29
IV. Total Profit (Losses are indicated by a "-" sign) 450176.37 25286590.72
Less: Income Tax Expense V.50 1358420.50 3180305.05
V. Net Profit (Net Loss is indicated by a "-" sign) -908244.13 22106285.67
(I) Classified by the duration of operation:
1、Continuing operations net profit (net loss is indicated -908244.13 22106285.67
by a "-" sign)
2、Net profit (net loss is indicated by a "-" sign) from
discontinued operations
(II) Classified by ownership:
1、Net profit attributable to shareholders of the parent -9462362.33 11376879.14
company (net loss is indicated by a "-" sign)
2、Minority Shareholders' Loss (Net Loss is indicated by 8554118.20 10729406.53
a "-" sign)
VI. Net amount of other comprehensive income after
tax
(I)The after-tax net amount of other comprehensive
income attributable to the parent company's owners
1.Other comprehensive income that cannot be reclassified
into profit or loss
（1）Re-measurement of the changes in defined benefit
plans
（2）Other comprehensive income that cannot be
transferred to profit or loss under the equity method
（3）Changes in the fair value of other equity instruments
investments
（4）Fair value changes of the enterprise's own credit risk
13（5）else
2.Other comprehensive income that is reclassified into
profit or loss
（1）Other comprehensive income that can be converted
into profit or loss under the equity method
（2）Other changes in the fair value of debt investments
（3）The amount of financial assets reclassification that
is recorded in other comprehensive income
（4）Other credit impairment provisions for debt
investments
（5）Cash flow hedging reserve
（6）Foreign currency financial statement translation
differences
（7）else
(II)The after-tax net amount of other comprehensive
income attributable to minority shareholders
VII. Comprehensive Income Total -908244.13 22106285.67
(I)The total comprehensive income attributable to -9462362.33 11376879.14
shareholders of the parent company
(II)The total comprehensive income attributable to 8554118.20 10729406.53
minority shareholders
VIII. Earnings per Share:
(I)basic earnings per share -0.04 0.05
(II)diluted EPS(earnings per share) -0.04 0.05
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
income statement
Compiling unit: Nanjing Putian Communication Co. The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Operating Revenue XV.4 31784452.16 55455987.78
Less: Operating costs XV.4 23070819.14 48831493.80
Taxes and surcharges 739212.49 1416565.94
selling expenses 3674575.83 5885830.63
Administrative Expenses 25515609.72 35234907.10
R&D expenses
Financial Expenses 6658472.07 7232295.87
Among them: Interest expense 6670688.91 7606119.33
interest income 220347.93 382125.01
14Add: Other income 10310.52 59574.65
Investment income (losses are indicated by a "-" XV.5 17318129.12 60475665.77
sign)
Among them: Investment income from associated 7389042.29 -5.77
enterprises and joint ventures
Gain from the derecognition of financial assets
measured at amortized cost
Net exposure hedging gain (loss is filled with a "-"
sign)
Fair value change gain (loss filled with "-" sign for
losses)
Credit impairment loss (losses are filled in with a "-" -4992463.96 -6023378.69
sign)
Asset impairment loss (losses are filled in with a "-" -2131109.47 -13635478.79
sign)
Asset Disposal Gain/Loss (Losses are indicated by a 5372239.34 1090467.64
"-" sign)
II. Operating Profit (Losses are indicated by a "-" -12297131.54 -1178254.98
sign)
?Add: Non-operating Income 2543328.14 520587.01
Less: Non-operating expenses 474076.43 2989716.65
III. Total Profit (Losses are indicated by a "-" sign) -10227879.83 -3647384.62
Less: Income Tax Expense
IV. Net Profit (Net Loss is indicated by a "-" sign) -10227879.83 -3647384.62
（I）Continuing operations net profit (net loss is -10227879.83 -3647384.62
indicated by a "-" sign)（II）Net profit (net loss is indicated by a "-" sign) from
discontinued operations
V.Net amount of other comprehensive income after tax
（I）Other comprehensive income that cannot be
reclassified into profit or loss
1.Re-measurement of the changes in defined benefit
plans
2.Other comprehensive income that cannot be
transferred to profit or loss under the equity method
3.Changes in the fair value of other equity instruments
investments
4.Fair value changes of the enterprise's own credit risk
5.else（II）Other comprehensive income that is reclassified
into profit or loss
1.Other comprehensive income that can be converted
into profit or loss under the equity method
2.Other changes in the fair value of debt investments
3.The amount of financial assets reclassification that is
recorded in other comprehensive income
4.Other credit impairment provisions for debt
investments
5.Cash flow hedging reserve
6.Foreign currency financial statement translation
15differences
7.else
VI.Comprehensive Income Total -10227879.83 -3647384.62
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated statement of cash flow
Compiling unit: Nanjing Putian Communication Co. The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Cash flows from operating activities:
Cash received from the sale of goods and provision of 550533528.31 740417766.98
services
refund of tax and levies 1627090.07 2153825.75
Received other cash related to business operations 36952155.85 43058931.33
Total Cash Inflow from Operating Activities 589112774.23 785630524.06
Cash paid for the purchase of goods and the receipt of 459835547.91 537661634.35
services
Cash for paying out policy dividends
Cash paid to employees and for the benefit of 129621114.65 149323538.69
employees
All sort fees as follow 27311494.06 30399599.81
Cash paid for other activities related to business 59617888.20 85442093.61
operations
Total cash outflows from operating activities 676386044.82 802826866.46
Net cash flow from operating activities -87273270.59 -17196342.40
II. Cash flows from investing activities:
Cash received from the withdrawal of investment
Cash received from investment income
Net cash received from the disposal of fixed assets 5621791.00 40.00
intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and 108162342.81
other business units
Received other cash related to investment activities
Total Cash Inflow from Investment Activities 5621791.00 108162382.81
Cash paid for the purchase and construction of fixed 3193809.83 3002060.46
assets intangible assets and other long-term assets
Net increase in pledged loan amount
Net cash received from subsidiaries and other operating
units
Pay other cash related to investment activities 405500.00
Total cash outflows from investment activities 3193809.83 3407560.46
Net cash flow from investing activities 2427981.17 104754822.35
III. Cash Flows Generated from Financing Activities:
16Cash received from absorbing investments
Among them: Cash received from subsidiaries upon
absorbing investments from minority shareholders
Cash received from borrowing funds 202614067.87 154800000.00
Cash received from borrowing funds
Total cash inflows from financing activities 202614067.87 154800000.00
Cash paid for repaying debts 214800000.00 87800000.00
Cash paid for distributing dividends profits or paying 9952937.68 26496552.22
interest
Among them: Dividends and profits paid by the 14846600.00
subsidiary to the minority shareholders
Cash paid for other activities related to financing 1287438.87 3914258.88
Total cash outflows from financing activities 226040376.55 118210811.10
Net cash flow from financing activities -23426308.68 36589188.90
IV. Impact of Exchange Rate Fluctuations on Cash -4867.97 2715.47
and Cash Equivalents
V. Net increase in cash and cash equivalents -108276466.07 124150384.32
Add: Initial balance of cash and cash equivalents 288328064.43 164177680.11
VI. Balance of Cash and Cash Equivalents at the End 180051598.36 288328064.43
of the Period
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
statement of cash flow
Compiling unit: Nanjing Putian Communication Co. The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Cash flows from operating activities:
Cash received from the sale of goods and provision of 58815560.83 57362046.42
services
refund of tax and levies
Received other cash related to business operations 7723066.79 26712333.46
Total Cash Inflow from Operating Activities 66538627.62 84074379.88
Cash paid for the purchase of goods and the receipt of 40092496.37 87124609.23
services
Cash paid to employees and for the benefit of 33154872.88 35981718.30
employees
All sort fees as follow 4351257.54 3123122.39
Cash paid for other activities related to business 9263972.07 11943256.10
operations
Total cash outflows from operating activities 86862598.86 138172706.02
Net cash flow from operating activities -20323971.24 -54098326.14
II. Cash flows from investing activities:
Cash received from the withdrawal of investment 110884500.00
Cash received from investment income 9153400.00
Net cash received from the disposal of fixed assets 5553791.00
17intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other business units
Received other cash related to investment activities
Total Cash Inflow from Investment Activities 5553791.00 120037900.00
Cash paid for the purchase and construction of fixed 349900.00 1288004.20
assets intangible assets and other long-term assets
Cash paid for investment
Pay other cash related to investment activities 405500.00
Total cash outflows from investment activities 349900.00 1693504.20
Net cash flow from investing activities 5203891.00 118344395.80
III. Cash Flows Generated from Financing Activities:
Cash received from absorbing investments
Cash received from borrowing funds 101564067.87 30000000.00
Cash received from borrowing funds
Total cash inflows from financing activities 101564067.87 30000000.00
Cash paid for repaying debts 116800000.00 19000000.00
Cash paid for distributing dividends profits or paying 7854627.18 8675468.55
interest
Cash paid for other activities related to financing 1287438.87 3914258.88
Total cash outflows from financing activities 125942066.05 31589727.43
Net cash flow from financing activities -24377998.18 -1589727.43
IV. Impact of Exchange Rate Fluctuations on Cash -4867.97 2715.47
and Cash Equivalents
V. Net increase in cash and cash equivalents -39502946.39 62659057.70
Add: Initial balance of cash and cash equivalents 76018337.62 13359279.92
VI. Balance of Cash and Cash Equivalents at the End 36515391.23 76018337.62
of the Period
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
18192021Nanjing Putian Communication Co. Ltd.
Notes to the 2025 Financial Statements
(Unless otherwise specified the amount is in RMB yuan)
I. Company Overview
1、 Company registration address organizational structure and headquarters address
Nanjing Putian Communication Co. Ltd. (hereinafter referred to as the Company) originated from
the Nanjing Communication Equipment Factory under the Ministry of Posts and Telecommunications. On
March 211997 the State Economic System Reform Commission approved its establishment as a joint-
stock company through a public offering as documented in Document No.28 [1997]. The Company was
registered with the Nanjing Administration for Industry and Commerce on May 181997 with its
headquarters located in Nanjing Jiangsu Province. It holds a business license with the Unified Social
Credit Code 91320000134878054G a registered capital of RMB 215000000.00 and a total of
215000000 shares (each with a par value of RMB 1). This includes 115000000 state-owned legal person
shares and 100000000 B-shares. The Company's shares were listed for trading on the Shenzhen Stock
Exchange on May 221997.
2、 The main business activities actually engaged in by the company
Our company operates in the telecommunications equipment manufacturing sector. Our primary
business activities include: research development manufacturing processing and sales of data
communication wired and wireless communication products distribution and wiring communication
products electronic products multimedia computers digital television systems automotive electronics
and high/low-voltage electrical switchgear; development production and distribution of new energy
vehicle charging solutions and components (including EV chargers charging modules charging station
systems modular charging cabinets outdoor integrated charging stations AC/DC charging piles and
related accessories); design and provision of comprehensive new energy charging/discharging solutions;
operation and maintenance of EV charging infrastructure; development and sales of software and
intelligent software platforms; IT services for smart city and elderly care applications; R&D
manufacturing sales installation and technical support for video equipment and video conferencing
systems; agency sales of communication-modified vehicles (excluding wholesale) with corresponding
after-sales services; design system integration and consulting services for communication networks and
computer information systems; design construction installation and maintenance of intelligent building
systems; and leasing of owned assets such as properties and equipment.
3、 Approval and issuance of financial reports
This financial statement has been approved by the Company's Board of Directors on April 222026
for public release.II. Basis for Preparing Financial Statements
1. Preparation Basis
The financial statements of our company are prepared on a going concern basis based on actual
transactions and events in accordance with the Accounting Standards for Business Enterprises – Basic
Standards issued by the Ministry of Finance various specific accounting standards the Application
Guidelines for Accounting Standards for Business Enterprises the Interpretations of Accounting Standards
for Business Enterprises and other relevant regulations (collectively referred to as the "Accounting
Standards for Business Enterprises") as well as the provisions of the China Securities Regulatory
Commission's Rules for the Preparation and Reporting of Information Disclosure by Companies Issuing
Securities Publicly No.15 – General Provisions for Financial Reports (2023 Revision).In accordance with the relevant provisions of the Enterprise Accounting Standards the Company's
accounting practices are based on the accrual basis. With the exception of certain financial instruments all
financial statements are measured at historical cost. Where asset impairment occurs corresponding
impairment provisions are recognized in accordance with applicable regulations.
2. Continuing Operations
This financial statement is prepared on a going concern basis and the Company has maintained its
ability to continue as a going concern for at least 12 months from the end of the reporting period.III. Key Accounting Policies and Accounting Estimates
The Company and its subsidiaries operate in the telecommunications equipment manufacturing
industry. In accordance with the actual characteristics of their production and operations and the relevant
accounting standards the Company and its subsidiaries have established specific accounting policies and
estimates for various transactions and events as detailed below.
1. Statement of Compliance with Enterprise Accounting Standards
The financial statements prepared by the Company comply with the requirements of the Enterprise
Accounting Standards and provide an accurate and complete reflection of the Company's consolidated and
parent company financial position as of December 312025 as well as the consolidated and parent
company operating results and consolidated and parent company cash flows for the year 2025.
2. Accounting Period
The Company's accounting periods are divided into annual and interim periods with the interim
period referring to a reporting period shorter than a full fiscal year. The Company adopts the Gregorian
calendar year for its fiscal year which runs from January 1 to December 31 each year.
3. Business CycleThe company adopts a 12-month period as its operating cycle and uses it as the criterion for
classifying the liquidity of its assets and liabilities.
4. Bookkeeping Currency
The Renminbi (RMB) serves as the currency used in the primary economic environment in which the
Company and its domestic subsidiaries operate and both the Company and its domestic subsidiaries adopt
the RMB as their accounting currency. The currency employed by the Company in preparing these
financial statements is the Renminbi.
5. Accounting treatment methods for business combinations under common control and outside
common control
A business combination refers to a transaction or event in which two or more separate entities merge
to form a single reporting entity. Business combinations are classified into combinations under common
control and combinations not under common control.
(1) Business combinations under common control
Enterprises participating in a merger are both subject to the ultimate control of the same party or the
same multiple parties before and after the merger and such control is not temporary; thus it constitutes a
merger under common control. In a merger under common control the party that obtains control of the
other participating enterprises on the merger date is the merging party while the other participating
enterprises are the merged parties. The merger date refers to the actual date on which the merging party
obtains control of the merged parties.The assets and liabilities acquired by the enterprise in a business combination are measured at the
carrying values of the acquired entity's assets and liabilities (including goodwill formed by the ultimate
controlling party's acquisition of the acquired entity) as presented in the ultimate controlling party's
consolidated financial statements on the combination date. The difference between the carrying value of
the acquired net assets and the carrying value of the consideration paid for the combination (or the total
par value of the issued shares) shall be adjusted against the share capital premium in the capital reserve; if
the share capital premium in the capital reserve is insufficient to cover the reduction the retained earnings
shall be adjusted accordingly.The direct costs incurred by the merging party in carrying out the business combination shall be
recognized in profit or loss of the current period at the time of occurrence.
(2) Business combinations under different controls
A business combination is classified as a non-same-control combination if the participating
enterprises are not ultimately controlled by the same party or the same group of parties before and after the
combination. In a non-same-control combination the party that obtains control of the other participating
enterprises on the acquisition date is the acquirer while the other participating enterprises are theacquirees. The acquisition date refers to the date when the acquirer actually gains control over the
acquirees.For business combinations under different controls the combination cost includes: the fair value of
assets acquired by the acquirer on the acquisition date to obtain control over the acquiree; liabilities
incurred or assumed; equity securities issued; audit fees legal services valuation consulting fees and
other administrative expenses incurred during the combination which are recognized in profit or loss at
their occurrence; transaction costs of equity or debt securities issued by the acquirer as consideration for
the combination which are included in the initial recognition amount of such securities; contingent
consideration measured at its fair value on the acquisition date and included in the combination cost; and
any adjustments to contingent consideration required if new or additional evidence of conditions existing
at the acquisition date emerges within 12 months post-acquisition which are reflected in the corresponding
adjustment to goodwill. The combination cost incurred by the acquirer and the identifiable net assets
acquired in the combination are measured at their fair values on the acquisition date. The difference
between the combination cost and the acquirer's share of the fair value of the acquiree's identifiable net
assets on the acquisition date is recognized as goodwill. If the combination cost is less than the acquirer's
share of the fair value of the acquiree's identifiable net assets the fair values of all identifiable assets
liabilities and contingent liabilities of the acquiree along with the combination cost itself are re-examined.Should the re-examined combination cost remain lower than the acquirer's share of the fair value of the
acquiree's identifiable net assets the difference is recognized in profit or loss.When the purchasing party acquires the deductible temporary differences of the purchased party that
were not recognized on the acquisition date due to non-compliance with the recognition criteria for
deferred tax assets if new or additional information obtained within 12 months after the acquisition date
indicates that the relevant circumstances existed on the acquisition date and that the economic benefits
arising from the deductible temporary differences are expected to materialize the relevant deferred tax
assets shall be recognized while reducing goodwill. If goodwill is insufficient to cover the reduction the
difference shall be recognized in profit or loss for the period. In all other cases deferred tax assets related
to business combinations shall be recognized and recognized in profit or loss for the period.For business combinations under different controls that are implemented through multiple
transactions in stages and classified as "package transactions" accounting treatment shall be conducted in
accordance with the descriptions in the preceding paragraphs of this section and Note 3 Section 13
"Long-term Equity Investments." For combinations not classified as "package transactions" separate
accounting treatments shall be applied to the individual financial statements and the consolidated financial
statements.In specific financial statements the initial investment cost of an investment is determined by the sumof the carrying amount of the equity investment held in the acquiree prior to the acquisition date and the
additional investment cost incurred on that date. If the equity held in the acquiree prior to the acquisition
date involves other comprehensive income the related other comprehensive income shall be accounted for
upon disposal of the investment using the same basis as would be applied when the acquiree directly
disposes of its assets or liabilities (i.e. except for the corresponding share of changes resulting from the re-
measurement of the defined benefit plan's net liability or net asset under the equity method the remainder
is recognized in current period investment income).In the consolidated financial statements equity held in the acquiree prior to the acquisition date shall
be remeasured at its fair value on that date with the difference between the fair value and the carrying
amount recognized in current period investment income. Where such equity involves other comprehensive
income the corresponding other comprehensive income shall be accounted for using the same basis as
would apply to the acquiree's direct disposal of related assets or liabilities (i.e. except for the
corresponding share of changes in the net liability or net asset of the defined benefit plan resulting from its
remeasurement under the equity method the remainder shall be recognized in current period investment
income attributable to the acquisition date).
6. Criteria for Control Assessment and Methods for Preparing Consolidated Financial
Statements
(1) Criteria for Control Determination
The consolidation scope for financial statements is determined on a control basis. Control is defined
as the Company's possession of authority over the investee enjoyment of variable returns through
participation in the investee's relevant activities and the ability to influence the amount of such returns
through the exercise of such authority. This typically includes investee entities in which the parent
company holds more than half of the voting rights and cases where the Company although holding less
than half of the voting rights through agreements with other investors of the investee holds more than half
of the voting rights; the Company's authority under its articles of association or agreements to make
financial and operational decisions for the investee; its right to appoint or remove a majority of the
members of the investee's board of directors; and its control over the majority of voting rights in the
investee's board of directors.
(2) Methodology for preparing consolidated financial statements
From the date when the Company obtains actual control over the net assets and operational decision-
making rights of a subsidiary it begins to include the subsidiary within its consolidated financial
statements; the inclusion ceases upon loss of actual control. For subsidiaries disposed of the operating
results and cash flows prior to the disposal date have been appropriately reflected in the consolidated
income statement and consolidated cash flow statement; for subsidiaries disposed of during the currentperiod no adjustments are made to the opening balances of the consolidated balance sheet. For
subsidiaries acquired in business combinations under different controls their operating results and cash
flows after the acquisition date have been properly included in the consolidated income statement and
consolidated cash flow statement with no adjustments required to the opening balances or comparative
figures of the consolidated financial statements. For subsidiaries acquired in business combinations under
common control their operating results and cash flows from the beginning of the period prior to the
merger to the merger date have been appropriately reflected in the consolidated income statement and
consolidated cash flow statement with corresponding adjustments made to the comparative figures of the
consolidated financial statements.When preparing consolidated financial statements if the accounting policies or accounting periods
used by the subsidiary differ from those of the parent company the subsidiary's financial statements shall
be adjusted in accordance with the parent company's accounting policies and periods. For subsidiaries
acquired through business combinations under different controls their financial statements shall be
adjusted based on the fair value of the identifiable net assets on the acquisition date.All significant intercompany balances transactions and unrealized profits are offset when preparing
the consolidated financial statements.The portion of the subsidiary's shareholders' equity and current net profit/loss not attributable to the
parent company is separately presented as minority interest and minority interest income under
shareholders 'equity and net profit in the consolidated financial statements. The share of the subsidiary's
current net profit/loss attributable to minority interests is disclosed under the "minority interest income"
item within the net profit line item of the consolidated income statement. If the loss attributable to
minority interests exceeds their share of the subsidiary's beginning shareholders' equity this difference is
still recorded as a reduction in minority interest.When control over an original subsidiary is lost due to the disposal of partial equity investments or
other reasons the remaining equity interests shall be remeasured at their fair value on the date of loss of
control. The difference between the consideration received from the equity disposal and the fair value of
the remaining equity interests minus the share of the subsidiary's net assets accumulated continuously
from the acquisition date calculated based on the original equity ratio shall be recognized as investment
income for the period of loss of control. Other comprehensive income related to the original equity
investment shall be accounted for at the same basis as the direct disposal of the acquired party's assets or
liabilities (i.e. all amounts except those arising from changes in the net liability or net assets of the
original beneficial plan upon remeasurement) shall be transferred to current investment income.Subsequently the remaining equity interests shall be measured in accordance with applicable accounting
standards such as Accounting Standard for Business Enterprises No.2 – Long-term Equity Investments orAccounting Standard for Business Enterprises No.22 – Recognition and Measurement of Financial
Instruments as detailed in Note 3 Section 13 "Long-term Equity Investments" or Note 3 Section 10
"Financial Instruments."
When a company gradually disposes of its equity investments in subsidiaries through multiple
transactions until losing control it must determine whether each transaction constitutes a package
transaction. The terms conditions and economic impacts of these individual transactions typically meet
one or more of the following criteria indicating that they should be accounted for as a package transaction:
* The transactions were executed simultaneously or with mutual consideration; * The transactions
collectively achieve a complete commercial outcome; * The occurrence of one transaction depends on
the occurrence of at least one other transaction; * An individual transaction is uneconomical but becomes
economical when considered collectively with other transactions. For transactions not constituting a
package transaction each transaction shall be accounted for separately using the principles applicable to
"partial disposal of long-term equity investments in subsidiaries without loss of control" or "loss of control
over an original subsidiary due to partial equity disposal or other reasons." When the transactions
constitute a package transaction they shall be accounted for as a single transaction involving subsidiary
disposal and loss of control. However any difference between the transaction price at each disposal stage
prior to loss of control and the investor's share of the subsidiary's net assets shall be recognized as other
comprehensive income in the consolidated financial statements and transferred to the profit or loss at the
time of loss of control.
7. Classification of Joint Venture Arrangements and Accounting Treatment for Joint
Operations
A joint venture arrangement refers to an arrangement jointly controlled by two or more parties. Based
on the rights and obligations it enjoys within such an arrangement the Company classifies joint venture
arrangements into joint operation arrangements and joint venture enterprises. A joint operation
arrangement refers to one in which the Company holds the relevant assets and assumes the relevant
liabilities; a joint venture enterprise refers to one in which the Company holds only the rights to the net
assets of the arrangement.The Company accounts for its investment in the joint venture using the equity method in accordance
with the accounting policy specified in Note 3 Section 13(2)(ii) "Long-term Equity Investments
accounted for under the Equity Method."
As a joint venture partner in the joint operation the Company recognizes the assets and liabilities
solely held or borne by the Company as well as the jointly held assets and jointly borne liabilities based
on the Company's respective shares; recognizes the revenue generated from the sale of the Company's
share of the joint operation's output; recognizes the revenue arising from the sale of output under the jointoperation based on the Company's share; and recognizes the expenses incurred solely by the Company as
well as the expenses incurred under the joint operation based on the Company's respective shares.When the Company contributes or sells assets to the joint venture (such assets do not constitute
business operations the same applies hereinafter) or purchases assets from the joint venture prior to the
sale of such assets to a third party the Company recognizes only the portion of the gains or losses arising
from such transaction attributable to the other participating parties in the joint venture. If such assets incur
asset impairment losses in accordance with the provisions of Accounting Standard for Business
Enterprises No.8 – Asset Impairment the Company recognizes the full amount of such loss for
contributions or sales made by the Company to the joint venture and recognizes the loss proportionally
based on its share for purchases made from the joint venture.
8. Criteria for Determining Cash and Cash Equivalents
The Company's cash and cash equivalents consist of cash on hand deposits readily available for
payment and investments held by the Company that are short-term (typically maturing within three
months from the purchase date) highly liquid easily convertible into a known amount of cash and carry
minimal value fluctuation risk.
9. Foreign Currency Transactions
(1) Conversion method for foreign currency transactions
Foreign currency transactions conducted by the Company are converted into the local currency
amount at the spot exchange rate prevailing on the transaction date upon initial recognition. However
foreign currency exchange operations or transactions involving foreign currency exchange are converted
into the local currency amount using the actual exchange rate applied.
(2) Conversion methods for foreign currency monetary items and foreign currency non-monetary
items
On the balance sheet date foreign currency monetary items are converted using the spot exchange
rate prevailing at that date. The resulting exchange differences shall be recognized in profit or loss of the
current period except for: * exchange differences arising from foreign currency special borrowings
related to the acquisition or construction of assets meeting capitalization criteria which are treated in
accordance with the principle of capitalizing borrowing costs; * exchange differences arising from
changes in the carrying amounts of foreign currency monetary items available for sale (excluding the
amortized cost) which are recognized in other comprehensive income.Non-monetary foreign currency items measured at historical cost are measured in the accounting
currency amount converted using the spot exchange rate on the transaction date. Non-monetary foreign
currency items measured at fair value are converted using the spot exchange rate on the fair value
determination date; the difference between the converted accounting currency amount and the originalaccounting currency amount is recognized as fair value changes (including exchange rate fluctuations)
which are recorded in current period profit or loss or recognized as other comprehensive income.
10. Financial Instruments
A financial asset or financial liability is recognized when the company becomes a party to a financial
instrument contract.
(1) Classification Recognition and Measurement of Financial Assets
Based on its business model for managing financial assets and the contractual cash flow
characteristics of these assets the Company categorizes financial assets into: financial assets measured at
amortized cost; financial assets measured at fair value with changes recognized in other comprehensive
income; and financial assets measured at fair value with changes recognized in profit or loss.Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value with their changes recognized in profit or loss related transaction costs are directly recognized
in profit or loss; for other categories of financial assets related transaction costs are included in the initial
recognition amount. For accounts receivable or notes receivable arising from the sale of products or
provision of services that do not contain or involve significant financing components the Company
recognizes the expected amount receivable as the initial recognition amount.* Financial assets measured at amortized cost
The Company's business model for measuring financial assets at amortized cost is aimed at
generating contractual cash flows. The cash flow characteristics of such financial assets align with
standard lending arrangements meaning that cash flows occurring on specific dates consist solely of
principal payments and interest calculated on the outstanding principal amount. For these financial assets
the Company applies the effective interest method and subsequently measures them at amortized cost. Any
gains or losses arising from amortization or impairment are recognized in profit or loss for the period.* Financial assets measured at fair value with changes recognized in other comprehensive income
The Company's business model for managing such financial assets combines both the objective of
collecting contractual cash flows and the objective of selling them with the contractual cash flow
characteristics of these financial assets aligning with those of the underlying loan arrangements. The
Company measures such financial assets at fair value with their changes recognized in other
comprehensive income; however impairment losses or gains exchange gains or losses and interest
income calculated using the effective interest method are recognized in profit or loss for the period.Furthermore the Company classifies certain non-trading equity instrument investments as financial
assets measured at fair value with their changes recognized in other comprehensive income. Dividend
income from such financial assets is recognized in current period profit or loss while fair value changes
are recognized in other comprehensive income. Upon derecognition of these financial assets anycumulative gains or losses previously recognized in other comprehensive income are transferred to
retained earnings and are no longer included in current period profit or loss.* Financial assets measured at fair value with changes recognized in profit or loss
The Company classifies the aforementioned financial assets measured at amortized cost and those
financial assets measured at fair value with their changes recognized in other comprehensive income as
financial assets measured at fair value with their changes recognized in current profit or loss. Furthermore
at initial recognition to eliminate or significantly reduce accounting mismatches the Company designates
certain financial assets as financial assets measured at fair value with their changes recognized in current
profit or loss. For such financial assets the Company subsequently measures them at fair value with fair
value changes recognized in current profit or loss.
(2) Classification Recognition and Measurement of Financial Liabilities
At initial recognition financial liabilities are classified into financial liabilities measured at fair value
through profit or loss and other financial liabilities. For financial liabilities measured at fair value through
profit or loss related transaction costs are directly recognized in profit or loss; for other financial liabilities
related transaction costs are included in their initial recognition amount.* Financial liabilities measured at fair value with changes recognized in profit or loss
Financial liabilities measured at fair value with changes recognized in profit or loss include trading
financial liabilities (including derivative instruments classified as financial liabilities) and those designated
at initial recognition to be measured at fair value with changes recognized in profit or loss.Subsequent measurement of transactional financial liabilities (including derivatives classified as
financial liabilities) adopts fair value; except for portions related to hedge accounting changes in fair
value are recognized in current profit or loss.Designated as financial liabilities measured at fair value with changes recognized in profit or loss the
fair value changes arising from the Company's own credit risk are recognized in other comprehensive
income. Upon derecognition of such liabilities the cumulative fair value changes attributable to the
Company's own credit risk are transferred to retained earnings while the remaining fair value changes are
recognized in profit or loss. If applying this treatment would create or exacerbate accounting mismatches
in the profit or loss the Company shall recognize all gains or losses on these financial liabilities (including
the impact of the Company's own credit risk changes) in profit or loss.* Other financial liabilities
Other financial liabilities—excluding those arising from financial asset transfers that do not meet the
criteria for derecognition or from continued involvement in the transferred financial assets as well as
financial guarantee contracts—are classified as financial liabilities measured at amortized cost. Such
liabilities are subsequently measured at amortized cost and any gains or losses resulting fromderecognition or amortization are recognized in profit or loss for the period.
(3) Basis for Recognition and Measurement Methods of Financial Asset Transfers
A financial asset shall be derecognized if any of the following conditions is met: * The contractual
right to receive cash flows from the financial asset has terminated; * The financial asset has been
transferred with nearly all risks and rewards associated with its ownership transferred to the transferee; *
The financial asset has been transferred and although the enterprise has neither transferred nor retained
nearly all risks and rewards associated with its ownership it has relinquished control over the financial
asset.If an enterprise neither transfers nor retains nearly all the risks and rewards associated with the
ownership of a financial asset nor relinquishes its control over that financial asset then the relevant
financial asset shall be recognized based on the extent of its continued involvement with the transferred
financial asset and the corresponding liability shall be recognized accordingly. The extent of continued
involvement refers to the level of risk faced by the enterprise due to fluctuations in the value of the
financial asset.When the overall transfer of financial assets meets the conditions for derecognition the difference
between the carrying amount of the transferred financial assets and the consideration received from the
transfer and the cumulative fair value change previously recognized in other comprehensive income shall
be recognized in profit or loss for the period.When partial transfer of financial assets meets the conditions for derecognition the carrying amount
of the transferred financial assets shall be allocated between the derecognized portion and the remaining
portion based on their respective fair values. The difference between the consideration received from the
transfer and the cumulative fair value changes originally recognized in other comprehensive income that
are allocated to the derecognized portion minus the allocated carrying amounts shall be recognized in
profit or loss for the period.For financial assets sold with recourse or transferred by endorsement the company must determine
whether nearly all risks and rewards associated with ownership of the financial asset have been transferred.If nearly all risks and rewards associated with ownership have been transferred to the transferee the
recognition of the financial asset shall be terminated; if nearly all risks and rewards remain retained the
recognition shall not be terminated; if neither transfer nor retention of nearly all risks and rewards has
occurred the company shall continue to assess whether it retains control over the asset and apply the
accounting treatment principles outlined in the preceding paragraphs.
(4) Termination of Recognition of Financial Liabilities
When the current obligation under a financial liability (or a portion thereof) has been discharged the
Company derecognizes that financial liability (or that portion thereof). If the Company (the borrower)enters into an agreement with the lender to replace the original financial liability with a new one and the
contractual terms of the new financial liability are substantially different from those of the original the
Company derecognizes the original financial liability and simultaneously recognizes a new financial
liability. If the Company makes substantial modifications to the contractual terms of the original financial
liability (or a portion thereof) the Company derecognizes the original financial liability and recognizes a
new financial liability under the modified terms.When financial liabilities (or a portion thereof) are derecognized the Company recognizes the
difference between their carrying amount and the consideration paid (including transferred non-cash assets
or assumed liabilities) in profit or loss for the period.
(5) Offsetting of financial assets and financial liabilities
When the Company has a statutory right to offset recognized amounts of financial assets and financial
liabilities and such statutory right is currently enforceable and the Company plans to settle the financial
assets and settle the financial liabilities simultaneously at net value the financial assets and financial
liabilities shall be presented on the balance sheet at their net amount after mutual offset. Otherwise
financial assets and financial liabilities shall be presented separately on the balance sheet without mutual
offset.
(6) Methods for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that market participants would receive from selling an asset or pay to
transfer a liability in an orderly transaction on the measurement date. Where financial instruments have
active markets the Company determines their fair value using quotes from such markets. Active market
quotes are prices readily available periodically from exchanges brokers industry associations and pricing
service providers reflecting actual market transactions conducted in fair dealing. For financial instruments
without active markets the Company employs valuation techniques to determine fair value. These
techniques include referencing prices from recent market transactions conducted by knowledgeable and
voluntary parties referencing the current fair values of substantially similar financial instruments
applying the discounted cash flow method and using option pricing models. In conducting valuations the
Company selects valuation techniques applicable under current circumstances and supported by sufficient
available data and information choosing input values consistent with those considered by market
participants in transactions involving the relevant assets or liabilities with priority given to observable
inputs whenever possible. When observable inputs are unavailable or impractical to obtain non-
observable inputs are utilized.
11. Impairment of financial assets
1. Method for determining expected credit lossesThe Company applies impairment accounting treatment and recognizes loss provisions for financial
assets measured at amortized cost (including receivables) financial assets classified as measured at fair
value with changes recognized in other comprehensive income (including receivables financing) and lease
receivables based on expected credit losses.At each balance sheet date the Company assesses whether the credit risk of relevant financial
instruments has increased significantly since initial recognition. The process of credit impairment for
financial instruments is divided into three stages with distinct accounting treatment applied to
impairments at each stage: (1) Stage 1: If the credit risk of a financial instrument has not increased
significantly since initial recognition the Company measures the loss provision based on the expected
credit loss over the next 12 months and calculates interest income using its carrying amount (i.e. before
impairment provision) and the actual interest rate; (2) Stage 2: If the credit risk has increased significantly
since initial recognition but no credit impairment has occurred the Company measures the loss provision
based on the expected credit loss over the entire life of the financial instrument and calculates interest
income using its carrying amount and the actual interest rate; (3) Stage 3: If credit impairment occurs after
initial recognition the Company measures the loss provision based on the expected credit loss over the
entire life of the financial instrument and calculates interest income using its amortized cost (carrying
amount minus the accrued impairment provision) and the actual interest rate.
(1) Method for measuring loss provisions for financial instruments with lower credit risk
For financial instruments with low credit risk at the balance sheet date the Company may refrain
from comparing them with their credit risk at initial recognition and instead directly assume that the credit
risk of such instruments has not increased significantly since initial recognition.If a financial instrument carries low default risk the debtor demonstrates strong short-term capacity
to meet its contractual cash flow obligations and even adverse economic or operational conditions over an
extended period do not necessarily impair the borrower's ability to fulfill these obligations the instrument
is considered to have low credit risk.
(2) Method for measuring loss provisions for accounts receivable and lease receivables
* Receivables without significant financing components. For receivables arising from transactions
governed by Accounting Standard for Business Enterprises No.14 – Revenue that do not contain
significant financing components the Company adopts a simplified approach measuring loss provisions
consistently based on expected credit losses over the entire life cycle.Based on the nature of financial instruments the Company assesses whether credit risk has increased
significantly by evaluating individual financial assets or portfolios thereof. Receivable notes and accounts
receivable are categorized into specific portfolios according to their credit risk characteristics and
expected credit losses are calculated on a portfolio basis. The criteria for portfolio determination are as
follows:
accounts receivable portfolio 1: Portfolio of related parties within the consolidated scope
Accounts Receivable Portfolio 2: Age Group Portfolio
receivables bill portfolio 1: receivable bank acceptance bills
receivables bill portfolio 2: Commercial acceptance bills receivable
For accounts receivable classified as portfolios the Company refers to historical credit loss
experience combined with the current situation and forecasts for future economic conditions to prepare a
comparison table between the aging of accounts receivable and the expected credit loss rate over their
entire life cycle thereby calculating the expected credit loss. For accounts receivable notes classified as
portfolios the Company also utilizes historical credit loss experience along with the current situation and
forecasts for future economic conditions to calculate the expected credit loss based on default risk
exposure and the expected credit loss rate over their entire life cycle.Accounts Receivable – Comparison Table of Age Groups and the Expected Credit Loss Rate Over
Their Full Life Cycle
Account Age Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive same below) 1.00
1-2 years 5.00
2–3 years 10.00
3–4 years 30.00
4-5 years 50.00
More than 5 years 100.00
* Receivables and lease receivables containing significant financing components.For receivables involving significant financing components and lease receivables governed by
Accounting Standard for Business Enterprises No.21 – Leasing the Company measures loss provisions
using the general method namely the "three-stage" model.
(3) Methods for measuring loss provisions on other financial assetsFor financial assets other than those mentioned above—such as debt investments other debt
investments other receivables and long-term receivables excluding lease receivables—the Company
measures loss provisions using the general method namely the "three-stage" model.When measuring credit impairment on financial instruments our company considers the following
factors to determine whether credit risk has increased significantly:
The Company categorizes other receivables into several portfolios based on the nature of the amounts
and calculates expected credit losses on a portfolio basis. The criteria for portfolio determination are as
follows:
Other Receivables Portfolio 1: Portfolio of Related Parties within the Consolidated Scope
Other Receivables Portfolio 2: Financing Margin Portfolio
Other Receivables Portfolio 3: Export Tax Refund Receivables Portfolio
2. Accounting Treatment Method for Expected Credit Losses
To reflect changes in the credit risk of financial instruments after initial recognition the Company re-
measures expected credit losses at each balance sheet date. The resulting increases or reversals in loss
provisions shall be recognized as impairment losses or gains in the current period's profit or loss.Depending on the type of financial instrument these amounts shall either reduce the carrying amount of
the financial asset on the balance sheet or be recognized as estimated liabilities or as other comprehensive
income (for debt investments measured at fair value with changes recognized in other comprehensive
income).
12. Inventory
(1) Classification of Inventory
Inventories refer to the finished goods or commodities held by the Company for sale in its daily
operations work-in-progress items and materials consumed during production or service delivery. These
primarily include raw materials consumables (such as packaging materials and low-value consumables)
materials processed under contract work-in-progress self-manufactured semi-finished products and
finished goods (merchandise inventory).
(2) Pricing Method Used for Issuance
When inventory is issued the actual cost is determined using the weighted average method at the end
of the month.
(3) The inventory counting system adopts the perpetual inventory method.
(4) Amortization method for low-value consumables and packaging materials
Low-value consumables are amortized using the straight-line method upon requisition; packagingmaterials are also amortized using the straight-line method upon requisition.
(3) Criteria for Recognition and Provision Method for Inventory Impairment Losses
On the balance sheet date inventory is measured at the lower of cost and net realizable value with
impairment provisions calculated for each individual inventory item. For inventories that are numerous
and have low unit prices impairment provisions are calculated based on inventory category.On the balance sheet date inventory is measured at the lower of cost and net realizable value with
inventory impairment provisions recognized based on the difference between the cost and net realizable
value for each inventory category. For inventory directly intended for sale its net realizable value is
determined during normal operations as the estimated selling price minus estimated selling expenses and
relevant taxes. For inventory requiring processing its net realizable value is determined during normal
operations as the estimated selling price of the finished products minus estimated costs selling expenses
and relevant taxes incurred until completion. On the balance sheet date for each component of the same
inventory that has a contract price and those without a contract price their respective net realizable values
are determined and compared with their corresponding costs to calculate the amount of inventory
impairment provisions to be recognized or reversed.
13. Long-term equity investment
The term "long-term equity investments" referred to in this section denotes those in which the
Company holds controlling jointly controlling or significant influence over the investee entity. Long-term
equity investments in which the Company does not hold controlling jointly controlling or significant
influence are accounted for as financial assets measured at fair value with changes recognized in profit or
loss. For non-trading investments the Company may at initial recognition choose to classify them as
financial assets measured at fair value with changes recognized in other comprehensive income. The
accounting policy is detailed in Note 3 Section 10 "Financial Instruments."
Joint control refers to the Company's shared control over a specific arrangement under relevant
agreements where decisions regarding activities under such arrangement require unanimous consent from
all parties sharing control rights. Significant influence means the Company has the authority to participate
in decision-making regarding the financial and operational policies of the investee entity but lacks either
sole control or joint control with other parties over the formulation of these policies.
(1) Determination of Investment Costs
For long-term equity investments acquired through business combinations under common control the
initial investment cost shall be determined on the combination date based on the share of the acquirer's
equity book value in the ultimate controlling party's consolidated financial statements. The difference
between the initial investment cost and the sum of cash payments transferred non-cash assets and
assumed debt book values shall be allocated to capital reserves; if capital reserves are insufficient thedifference shall be adjusted against retained earnings. Where equity securities are issued as consideration
for the combination the initial investment cost shall be calculated based on the acquirer's equity share in
the ultimate controlling party's consolidated financial statements with the total par value of issued shares
recognized as share capital. The difference between the initial investment cost and the total par value of
issued shares shall be allocated to capital reserves; if capital reserves are insufficient the difference shall
be adjusted against retained earnings.For long-term equity investments acquired through business combinations under different controls
the acquisition cost shall be recognized as the initial investment cost on the acquisition date. The
consolidation cost comprises the sum of assets contributed by the acquirer liabilities incurred or assumed
and the fair value of issued equity securities.The intermediary fees incurred during business combinations—such as audit services legal services
valuation consulting and other related administrative expenses—along with those of the merging entity or
purchaser shall be recognized in profit or loss at the time of occurrence.For other equity investments other than those arising from business combinations the initial
measurement is made at cost. This cost is determined based on the method of acquisition of the long-term
equity investment using either the actual cash payment made by the Company the fair value of equity
securities issued by the Company the value specified in the investment contract or agreement the fair
value or original carrying amount of the assets exchanged in non-monetary asset transactions or the fair
value of the long-term equity investment itself. Expenses taxes and other necessary expenditures directly
related to the acquisition of the long-term equity investment are also included in the investment cost.
(2) Subsequent Measurement and Profit/Loss Recognition Method
Long-term equity investments in investee entities that are jointly controlled (excluding cases where
they constitute joint operators) or significantly influenced shall be accounted for using the equity method.Additionally long-term equity investments in which the company exercises control over the investee
entity may be accounted for using the cost method in its financial statements.* Long-term equity investments accounted for using the cost method
When using the cost method for accounting long-term equity investments are valued at their initial
investment cost with adjustments made to the cost upon additional investments or investment withdrawals.Excluding cash dividends or profits declared but not yet distributed included in the actual payment or
consideration received upon investment acquisition current investment income is recognized based on the
cash dividends or profits declared and distributed by the investee entity.* Long-term equity investments accounted for using the equity method
When using the equity method for accounting if the initial investment cost of a long-term equity
investment exceeds the investor's share of the fair value of the investee's identifiable net assets at the timeof investment the initial investment cost shall not be adjusted; if the initial investment cost is less than the
investor's share of the fair value of the investee's identifiable net assets at the time of investment the
difference shall be recognized in profit or loss for the period and the cost of the long-term equity
investment shall be adjusted accordingly.When applying the equity method of accounting investment income and other comprehensive
income are recognized separately based on the investor's share of the investee's net profit or loss and other
comprehensive income while simultaneously adjusting the carrying amount of long-term equity
investments. The investor's share of profits or cash dividends declared by the investee reduces the carrying
amount of long-term equity investments accordingly. For all other changes in the investee's owners 'equity
excluding net profit/loss other comprehensive income and profit distribution the carrying amount of
long-term equity investments is adjusted and recorded in capital reserves. The recognition of the investor's
share of the investee's net profit/loss is based on the fair value of identifiable assets at the time of
investment adjusted against the investee's net profit. Where the investee adopts accounting policies or
fiscal periods differing from those of the parent company the investee's financial statements are adjusted
in accordance with the parent company's policies and periods and investment income 及其他
comprehensive income are determined accordingly. For transactions between the parent company and
associates or joint ventures if the assets disposed of do not constitute business operations unrealized
internal transaction gains or losses are offset by the parent company's share calculated proportionally
upon which investment income and other comprehensive income are recognized. However unrealized
internal transaction losses between the parent company and the investee that constitute impairment losses
on transferred assets are not offset.When recognizing the shareable portion of the net loss incurred by the investee the recognition shall
be limited to the book value of the long-term equity investment and the reduction of other long-term
interests that substantially constitute a net investment in the investee to zero. Furthermore if the Company
has an obligation to bear additional losses for the investee an estimated liability shall be recognized and
recorded as an investment loss for the current period. If the investee generates net profit in subsequent
periods the Company shall resume recognizing the share of profit after offsetting the unconfirmed loss-
sharing amount against the share of profit.* Acquisition of minority equity
When preparing consolidated financial statements the difference between the newly added long-term
equity investment resulting from the acquisition of minority interests and the subsidiary's net asset share
calculated based on the new shareholding ratio which is continuously accrued from the acquisition date
(or consolidation date) shall be adjusted against the capital reserve. If the capital reserve is insufficient
the difference shall be offset against retained earnings.* Disposal of long-term equity investments
In consolidated financial statements when the parent company partially disposes of its long-term
equity investments in subsidiaries without losing control the difference between the disposal proceeds and
the subsidiary's net assets corresponding to the disposed long-term equity investment is recognized in
shareholders' equity. If the partial disposal results in the parent company losing control over the subsidiary
the transaction shall be accounted for in accordance with the relevant accounting policies specified in Note
3 Section 6 Subparagraph (2) of this document "Method of Preparation of Consolidated Financial
Statements."
For the disposal of long-term equity investments under other circumstances the difference between
the carrying value of the disposed equity and the actual consideration received shall be recognized in profit
or loss for the period.For long-term equity investments accounted for using the equity method if the remaining equity
interests after disposal continue to be accounted for using the equity method the portion of other
comprehensive income originally recorded in shareholders 'equity shall be accounted for at the
corresponding ratio using the same basis as that applied when the investee directly disposed of related
assets or liabilities at the time of disposal. All changes in owners' equity attributable to the investee's
owner's equity other than net profit or loss other comprehensive income and profit distribution shall be
transferred to the current period profit or loss in proportion.For long-term equity investments accounted for using the cost method if the remaining equity after
disposal continues to be accounted for using the cost method the other comprehensive income recognized
prior to obtaining control over the investee—whether from the equity method or from the financial
instruments recognition and measurement standards—shall be accounted for using the same basis as the
direct disposal of related assets or liabilities of the investee and transferred proportionally to current period
profit or loss; all other changes in owners 'equity within the investee's net assets recognized under the
equity method excluding net profit or loss other comprehensive income and profit distribution shall also
be transferred proportionally to current period profit or loss.When a company loses control over an investee due to the disposal of a portion of its equity
investments and the remaining equity after disposal can exercise joint control or significant influence over
the investee during the preparation of individual financial statements the equity method shall be applied
with the remaining equity adjusted as if it had been accounted for using the equity method from
acquisition. If the remaining equity after disposal cannot exercise joint control or significant influence over
the investee accounting treatment shall comply with the relevant provisions of the Financial Instruments
Recognition and Measurement Standards and the difference between the fair value and book value of the
equity at the date of loss of control shall be recognized in profit or loss for the period. For othercomprehensive income recognized prior to the company obtaining control over the investee under either
the equity method or the Financial Instruments Recognition and Measurement Standards the accounting
treatment shall follow the same basis as the direct disposal of related assets or liabilities by the investee
upon loss of control. All changes in owners 'equity attributable to the equity method—excluding net
profit/loss other comprehensive income and profit distribution—shall be transferred to profit or loss upon
loss of control. Specifically: if the remaining equity after disposal is accounted for using the equity method
other comprehensive income and other owners' equity are transferred proportionally; if the remaining
equity is accounted for under the Financial Instruments Recognition and Measurement Standards both
other comprehensive income and other owners' equity are fully transferred.When a company loses joint control or significant influence over an investee due to the disposal of a
portion of its equity investment the remaining equity interest after disposal shall be accounted for in
accordance with the Financial Instruments Recognition and Measurement Standards. The difference
between the fair value and the carrying value of the equity interest on the date of loss of joint control or
significant influence shall be recognized in profit or loss for the period. Other comprehensive income
recognized from the original equity investment under the equity method shall be accounted for under the
same basis as the direct disposal of related assets or liabilities by the investee upon termination of the
equity method. All changes in owners 'equity attributable to the investee's own equity other than net profit
or loss other comprehensive income and profit distribution shall be fully transferred to investment
income for the period upon termination of the equity method.
14. Investment property
Investment property refers to real estate held for the purpose of generating rental income capital
appreciation or both. This includes leased land use rights land use rights held with plans for appreciation
and subsequent transfer and leased buildings.Investment property is initially measured at cost. Subsequent expenditures related to investment
property shall be included in the cost of the asset if the economic benefits associated with the asset are
likely to flow and the cost can be reliably measured. Other subsequent expenditures shall be recognized in
profit or loss at the time they occur.When an investment property is disposed of permanently withdrawn from use and it is expected that
no economic benefits will be derived from its disposal the recognition of such investment property is
terminated. The proceeds from the disposal of an investment property—whether through sale transfer
scrapping or damage—after deducting its carrying amount and relevant taxes and fees shall be recognized
in the current period's profit or loss.
15. Fixed Assets
(1) Conditions for recognizing fixed assetsFixed assets refer to tangible assets held for the purpose of producing goods providing services
leasing or operating and managing with a useful life exceeding one accounting year. Fixed assets are
recognized only when it is probable that the economic benefits associated with them will flow to the
company and their costs can be reliably measured. Fixed assets are initially measured at cost taking into
account the impact of estimated disposal costs.
(2) Depreciation methods for various types of fixed assets
For fixed assets depreciation is calculated using the straight-line method over their service life
starting from the month following the achievement of the intended usable condition. The service life
estimated residual value and annual depreciation rate for various types of fixed assets are as follows:
ratio of yearly
method of Depreciation
class remaining depreciation
depreciation period (years)
value （%） （%）
Houses and Buildings Annual Average 15-35 3.00 2.77-6.47
Method
machinery equipment Annual Average 10-15 3.00 6.47-9.70
Method
conveyance Annual Average 6-8 3.00 12.13-16.17
Method
Electronic Equipment Annual Average 4-11 3.00 8.82-24.25
Method
other Annual Average 4-11 3.00 8.82-24.25
Method
The estimated residual value refers to the amount obtained by the Company from the disposal of an
asset after deducting estimated disposal costs assuming the fixed asset has reached the end of its estimated
useful life and is in its expected condition at that point.
(3) Methods for impairment testing of fixed assets and methods for making impairment provisions
For details on the impairment testing methods for fixed assets and the impairment provision
calculation methods refer to Note 3 Section 19 "Impairment of Long-term Assets".
(4) Other Notes
Subsequent expenditures related to fixed assets shall be recognized in the cost of the fixed asset if the
economic benefits associated with the asset are likely to flow and their costs can be reliably measured
thereby eliminating the carrying amount of the replaced portion. All other subsequent expenditures shall
be recognized in profit or loss at the time they occur.When a fixed asset is being disposed of or is expected to generate no economic benefits through useor disposal its recognition is terminated. The difference between the disposal proceeds from the sale
transfer scrapping or damage of the fixed asset and its carrying amount after deducting relevant taxes
and fees is recognized in profit or loss for the period.The Company shall review the service life estimated net residual value and depreciation method of
fixed assets at least once at the end of each fiscal year. Any changes made shall be treated as adjustments
to accounting estimates.
16. Projects under construction
The Company's construction-in-progress projects are categorized into two types: self-construction
and contracted construction. Upon completion of the projects and attainment of their intended usable
condition they are recognized as fixed assets. The determination of the intended usable condition shall
meet one of the following criteria: (1) The physical construction (including installation) of the fixed asset
has been fully completed or substantially completed; (2) The asset has undergone trial production or trial
operation with results demonstrating its ability to operate normally or produce qualified products stably;
or (3) The trial operation results indicate its capability for normal operation or business activities; (4)
Expenditures on the fixed asset under construction are minimal or virtually non-existent; or (5) The
acquired fixed asset meets the design or contractual requirements or is substantially consistent with such
requirements.When the construction-in-progress reaches its intended usable condition it is transferred to fixed
assets at the project's actual cost. For projects that have reached the intended usable condition but have not
yet completed final accounting they are initially recorded as fixed assets at estimated value; the original
provisional estimate is adjusted to reflect the actual cost after final accounting is completed while
previously accrued depreciation remains unchanged.For details on the impairment testing methodology and impairment provision calculation method for
construction in progress refer to Note 3 Section 19 "Impairment of Long-term Assets."
17. Loan costs
Loan costs comprise borrowing interest amortization of discounts or premiums ancillary expenses
and exchange differences arising from foreign currency borrowings. Loan costs directly attributable to the
acquisition construction or production of assets meeting capitalization criteria shall be capitalized when
asset expenditures have been incurred borrowing costs have been recognized and the necessary
acquisition construction or production activities to bring the asset to its intended usable or saleable state
have commenced; capitalization shall cease when such assets reach their intended usable or saleable state.Other borrowing costs are recognized as expenses in the period in which they are incurred.For special loans the actual interest expenses incurred during the period shall be capitalized after
deducting the interest income generated from depositing unused loan funds in banks or the investmentreturns obtained from temporary investments. For general loans the capitalizable amount is determined by
multiplying the weighted average of cumulative asset expenditures exceeding those of special loans by the
capitalization rate applicable to the utilized general loans. The capitalization rate is calculated based on the
weighted average interest rate of general loans.During the capitalization period all exchange differences on foreign currency special loans are
capitalized; exchange differences on foreign currency general loans are recognized in profit or loss for the
period.Assets meeting capitalization criteria refer to fixed assets investment properties and inventories that
require a considerable period of acquisition construction or operational activities to reach their intended
usable or saleable state.If an asset meeting capitalization criteria experiences an abnormal interruption during its acquisition
construction or production process and the interruption lasts continuously for more than three months the
capitalization of borrowing costs shall be suspended until the asset's acquisition construction or
production activities resume.Assets meeting capitalization criteria refer to fixed assets investment properties and inventories that
require a considerable period of acquisition construction or operational activities to reach their intended
usable or saleable state.
18. Intangible Assets
(1) Intangible Assets
Intangible assets refer to identifiable non-monetary assets owned or controlled by the Company that
lack physical form.Intangible assets are initially measured at cost. Expenditures related to intangible assets are
recognized in the cost of the intangible assets if the associated economic benefits are likely to flow to the
company and their costs can be reliably measured. Expenditures on other items are recognized in profit or
loss at the time they occur.The acquired land use rights are typically accounted for as intangible assets. When a company
independently develops and constructs buildings such as factory facilities the related land use right
expenditures and building construction costs are accounted for separately as intangible assets and fixed
assets respectively. For purchased buildings and structures the corresponding purchase price is allocated
between the land use rights and the buildings; if an equitable allocation is not feasible the entire amount is
treated as fixed assets.For intangible assets with a finite useful life the amortization base is calculated as the original cost
minus the estimated net residual value and the cumulative amount of impairment provisions accumulated
and amortization is performed on an average basis over the estimated useful life using the straight-linemethod from the point when the asset becomes available for use. Intangible assets with an indefinite useful
life are not amortized.The useful life determination basis and amortization method for intangible assets with finite useful
lives are as follows:
project life length Amortization Method
software 3-10 Linear method for stage averaging
land use right 40-50 Linear method for stage averaging
At the end of the period the useful life and amortization method of intangible assets with a finite
useful life are reviewed; any changes are treated as adjustments to accounting estimates. Additionally the
useful life of intangible assets with an indefinite useful life is reviewed. If evidence indicates that the
period during which the intangible asset generates economic benefits is foreseeable its useful life is
estimated and amortized using the amortization method applicable to intangible assets with a finite useful
life.
(2) Research and Development Expenses
The expenditures for our company's internal research and development projects are categorized into
research phase expenditures and development phase expenditures.Expenses incurred during the research phase are recognized in profit or loss for the period in which
they occur.The scope of R&D expenditure aggregation for our company includes materials consumed for R&D
intermediate trial costs travel expenses design fees depreciation and amortization employee
compensation and other items.The company's specific criteria for distinguishing between research phase expenditures and
development phase expenditures in internal R&D projects:
The research phase refers to the stage of conducting original planned investigations and research
activities aimed at acquiring and understanding new scientific or technological knowledge; the
development phase involves applying research findings or other knowledge to specific plans or designs
prior to commercial production or application resulting in the creation of new or substantially improved
materials devices or products.Expenses incurred during the development phase shall be recognized as intangible assets if all the
following conditions are met; otherwise such expenses shall be recognized in profit or loss for the current
period.* It is technically feasible to complete the intangible asset so that it can be used or sold;
* Intends to complete the acquisition of the intangible asset and use or sell it;
* The ways in which intangible assets generate economic benefits include: demonstrating thatproducts manufactured using such assets have a market or that the intangible assets themselves have a
market; or when the assets are used internally proving their utility.* Possess sufficient technical financial and other resources to complete the development of the
intangible asset and have the capability to utilize or sell it;
* The expenditures incurred during the development stage of this intangible asset can be reliably
measured.Where it is impossible to distinguish between expenditures incurred during the research phase and
those during the development phase all research and development expenditures shall be included in the
current period's profit or loss.
(3) Methods for testing impairment of intangible assets and for recognizing impairment losses
For details on the impairment testing methods for intangible assets and the impairment provision
calculation methods refer to Note 3 Section 19 "Impairment of Long-term Assets".
19. Impairment of long-term assets
For non-current non-financial assets—including fixed assets construction in progress intangible
assets with finite useful lives right-of-use assets investment properties measured at cost and long-term
equity investments in subsidiaries joint ventures and associates—the Company assesses for impairment
indications on the balance sheet date. Where impairment indications exist the recoverable amount is
estimated and an impairment test is conducted. Goodwill intangible assets with indefinite useful lives and
intangible assets that have not yet reached their usable state undergo annual impairment testing regardless
of the presence of impairment indications.The impairment assessment results indicate that when an asset's recoverable amount falls below its
carrying value an impairment loss is recognized based on the difference. The recoverable amount is
defined as the higher of: the net amount of the asset's fair value less disposal costs or the present value of
the asset's estimated future cash flows. The fair value of an asset is determined by the transaction price in a
fair market transaction; where no transaction agreement exists but the asset has an active market the fair
value is determined by the highest bid price; where neither a transaction agreement nor an active market
exists the fair value is estimated using the best available information. Disposal costs include legal fees
applicable taxes handling charges and direct expenses incurred to prepare the asset for sale. The present
value of future cash flows is calculated by discounting the projected cash flows generated during the
asset's useful life and upon final disposal using an appropriate discount rate. Impairment provisions are
calculated and recognized on an individual asset basis; when estimating the recoverable amount of an
individual asset is difficult the recoverable amount is determined for the asset group to which the asset
belongs—the smallest identifiable group of assets capable of generating independent cash flows.Goodwill separately presented in financial statements shall during impairment testing have itscarrying amount allocated to the asset groups or combinations of asset groups expected to benefit from the
synergies arising from the business combination. If the test results indicate that the recoverable amount of
the asset group or combination of asset groups containing the allocated goodwill is lower than its carrying
amount the corresponding impairment loss shall be recognized. The impairment loss amount shall first be
deducted from the carrying amount of the goodwill allocated to that asset group or combination and then
proportionally deducted from the carrying amounts of the other assets within the asset group or
combination based on their respective share of the total carrying amount excluding goodwill.Once the aforementioned asset impairment loss is recognized the portion of value recovered cannot
be reversed in subsequent periods.
20. Long-term prepaid expenses
Long-term prepaid expenses refer to various costs that have already been incurred but should be
allocated over the reporting period and subsequent periods with an amortization period exceeding one
year. The Company's long-term prepaid expenses primarily consist of renovation costs. These expenses
are amortized using the straight-line method over their estimated benefit period.
21. Contract Liabilities
Contract liabilities refer to the obligation of the Company to deliver goods to customers for which the
Company has received or is due to receive consideration from them. If the customer has paid the contract
consideration or the Company has acquired an unconditional right to receive payment prior to the delivery
of goods the Company recognizes such received or receivable amounts as contract liabilities at the earlier
of the customer's actual payment date or the due payment date. Contract assets and contract liabilities
under the same contract are presented on a net basis; those under different contracts are not offset against
each other.
22. Employee Compensation
The company's employee compensation primarily consists of short-term employee compensation
post-employment benefits termination benefits and other long-term employee benefits. Specifically:
Short-term compensation primarily includes wages bonuses allowances and subsidies employee
welfare expenses medical insurance premiums maternity insurance premiums work-related injury
insurance premiums housing provident fund contributions trade union funds employee education funds
and non-monetary benefits. During the accounting period in which employees provide services to the
company the actual short-term employee compensation incurred is recognized as a liability and recorded
in the current period's profit or loss or the cost of related assets. Non-monetary benefits are measured at
fair value.Post-employment benefits primarily include basic pension insurance unemployment insurance and
annuities. Post-employment benefit plans consist of defined contribution plans and defined benefit plans.For defined contribution plans the corresponding contribution amounts are recognized either as part of the
asset cost or recorded in the current period's profit or loss upon occurrence.When terminating the employment relationship with an employee before the expiration of the labor
contract or when proposing compensation to encourage voluntary workforce reduction the employee
compensation liability arising from such termination shall be recognized and recognized in profit or loss at
the earlier of: (1) the date on which the company cannot unilaterally withdraw the termination benefits
provided under the employment termination plan or reduction proposal; or (2) the date on which the
company confirms the costs associated with the restructuring involving the payment of such termination
benefits. However if the termination benefits are not expected to be fully paid within twelve months
following the end of the annual reporting period they shall be treated as other long-term employee
benefits.The internal employee retirement plan follows the same principles as the aforementioned severance
benefits. For employees who opt for early retirement the company will recognize the wages payable and
social insurance contributions accrued from the date of service termination until the normal retirement date
as current period expenses (severance benefits) when the conditions for recognizing estimated liabilities
are met.Other long-term employee benefits provided by the Company shall be accounted for under the
defined contribution plan where applicable and otherwise under the defined benefit plan.
23. Provision for Liabilities
When obligations arising from contingent matters such as external guarantees litigation matters
product quality guarantees or loss contracts become current obligations assumed by the Company and the
fulfillment of such obligations is likely to result in an outflow of economic benefits from the Company
with the amount of these obligations being reliably measurable the Company recognizes such obligations
as estimated liabilities.The Company initially measures its estimated liabilities based on the best estimate of expenditures
required to fulfill relevant current obligations and reviews the carrying amount of these liabilities at the
balance sheet date.If the entire or partial expenditure required to settle an estimated liability is expected to be
compensated by a third party the compensation amount shall be recognized separately as an asset when it
is essentially certain that it will be received provided that the recognized compensation amount does not
exceed the carrying amount of the estimated liability.
24. Income
The Company recognizes revenue when fulfilling its performance obligations under the contract—
that is upon the customer obtaining control of the relevant goods or services—in accordance with thetransaction price allocated to such performance obligation. Acquisition of control of the relevant goods
refers to the ability to dominate their use and derive nearly all economic benefits therefrom. A
performance obligation denotes the Company's commitment under the contract to transfer clearly
identifiable goods to the customer. The transaction price represents the amount of consideration the
Company expects to receive for transferring the goods to the customer excluding payments received on
behalf of a third party and amounts the Company expects to refund to the customer.Whether a performance obligation is fulfilled over a specific period or at a specific point in time
depends on the contract terms and relevant legal provisions. If the obligation is fulfilled over a period the
Company recognizes revenue based on the progress of performance. Otherwise the Company recognizes
revenue at the point when the customer obtains control of the relevant assets.For performance obligations stipulated in sales contracts for engineering construction and
maintenance services that meet the condition of "performance within a specified period" revenue is
recognized based on the progress of performance unless the progress cannot be reasonably determined.The Company uses the input method to determine the contract performance progress as the ratio of the
cumulative contract costs incurred to the contract target cost. If the progress cannot be reasonably
determined but the incurred costs are expected to be fully recovered the Company recognizes revenue
based on the amount of incurred costs until the progress can be reasonably determined.The sales of video conferencing products integrated wiring products intelligent electrical products
communication infrastructure products and other products constitute performance obligations fulfilled at a
specific point in time. Revenue recognition for these products requires the following conditions: the
company has delivered the products to the buyer as stipulated in the contract and obtained the buyer's
acceptance; the product sales revenue amount has been determined; payment has been received or
payment vouchers have been obtained; it is probable that the related economic benefits will materialize;
and the costs associated with the products can be reliably measured.
25. Contract Cost
Contract costs are divided into contract performance costs and contract acquisition costs.The costs incurred by the Company in fulfilling the contract shall be recognized as an asset for
contract performance costs only when the following conditions are simultaneously met:
(1) This cost is directly related to a current or expected contract including direct labor direct
materials manufacturing overhead (or similar expenses) costs explicitly borne by the client and other
costs incurred solely for that contract;(2) This cost increases the resources the enterprise will allocate in the future to fulfill its performance
obligations;
(3) This cost is expected to be recovered.
When the incremental costs incurred by the Company to obtain a contract are expected to be
recovered they shall be recognized as part of the contract acquisition cost and classified as an asset;
however if the amortization period of such asset does not exceed one year the cost may be recognized in
profit or loss at the time of occurrence.Assets related to contract costs are amortized using the same basis as the revenue recognition from
goods or services associated with those assets.For assets related to contract costs if their carrying value exceeds the sum of the following two
amounts the Company shall recognize an impairment loss on the excess amount and record it as an asset
impairment loss:
(1) The remaining consideration expected to be received from the transfer of goods or services related
to the asset;
(2) The estimated costs incurred for transferring the relevant goods or services.
Where the aforementioned asset impairment provision is subsequently reversed the revised book
value of the asset shall not exceed its book value on the reversal date under the assumption that no
impairment provision was recognized.
26. Government Subsidy
Government grants refer to monetary and non-monetary assets obtained by the Company from the
government without compensation excluding capital invested by the government as an investor with
corresponding owner's equity. Government grants are categorized into asset-related grants and revenue-
related grants. When government grants consist of monetary assets they are measured at the amount
received or receivable. For non-monetary assets they are measured at fair value; if fair value cannot be
reliably determined they are measured at nominal amount. Government grants measured at nominal
amount are directly recognized in profit or loss for the period.Government grants related to assets are recognized as deferred income and are allocated to current
period earnings over the useful life of the relevant assets using a reasonable and systematic method.Government grants related to income that are intended to compensate for future costs expenses or losses
are recognized as deferred income and are recognized in current period earnings when the corresponding
costs expenses or losses are recognized; those intended to compensate for incurred costs expenses or
losses are recognized directly in current period earnings.Government grants that encompass both asset-related components and revenue-related components
should be accounted for separately; where differentiation is difficult they should be collectively classified
as revenue-related government grants.Government grants related to the company's daily operations shall be recognized as other income or
deducted from relevant costs and expenses based on the substance of the economic transactions;
government grants unrelated to daily operations shall be recorded as non-operating income or expenses.When confirmed government grants need to be refunded if there is a relevant deferred income
balance the corresponding deferred income balance shall be offset; any excess amount shall be recognized
in current period profit or loss. In other cases the amount shall be directly recognized in current period
profit or loss.
27. Deferred income tax assets/deferred income tax liabilities
The deferred income tax asset or liability is recognized based on the difference between the carrying
amount of assets and liabilities and their tax basis (for items not recognized as assets or liabilities where
their tax basis can be determined in accordance with tax laws the difference between the tax basis and the
carrying amount) calculated using the applicable tax rate during the period when the asset is expected to
be recovered or the liability settled.Deferred tax assets shall be recognized only to the extent that it is probable that sufficient taxable
income will be available to offset deductible temporary differences. At the balance sheet date if there is
conclusive evidence that sufficient taxable income is likely to be available in future periods to offset such
differences deferred tax assets previously unrecognized in prior accounting periods shall be recognized.On the balance sheet date review the carrying amount of deferred tax assets. If it is probable that
sufficient taxable income will not be available in future periods to realize the benefits of these deferred tax
assets reduce their carrying amount. When sufficient taxable income is likely to be obtained reverse the
reduction amount.The Company's current income tax and deferred income tax are recognized as income tax expenses or
income in the current period's profit or loss excluding income tax arising from the following transactions:
business combinations; or transactions or events recognized directly in owners' equity.When the company holds statutory rights for net settlement and intends to conduct both net settlement
or acquisition of assets and settlement of liabilities simultaneously its current income tax assets and
liabilities shall be reported at the net amount after offsetting.
28. Lease
（1）Our company acts as the lessee.
The leased assets of our company are primarily mechanical equipment.On the lease commencement date the Company recognizes right-of-use assets and lease liabilities forleases other than short-term leases and low-value asset leases and recognizes depreciation expenses and
interest expenses separately over the lease term.During the lease term our company applies the straight-line method recognizing the lease payments
for short-term leases and low-value asset leases as current period expenses.* Right-to-use asset
Right-of-use assets refer to the rights granted to the lessee to use the leased asset during the lease
term. At the commencement date of the lease term right-of-use assets are initially measured at cost. This
cost includes: * the initial measurement amount of the lease liability; * lease payments made on or
before the lease commencement date; if lease incentives are applicable the amount of such incentives
already received shall be deducted; * the lessee's initial direct costs; * the costs expected to be incurred
by the lessee for dismantling and removing the leased asset restoring the premises where the asset is
located or returning the asset to the condition specified in the lease terms.The Company uses the straight-line method for the classification and calculation of depreciation on
its right-of-use assets. For leases where it is reasonably certain that ownership of the leased asset will be
acquired upon lease expiration depreciation is calculated over the asset's estimated remaining useful life;
for leases where this certainty is lacking depreciation is calculated over the shorter of the lease term and
the asset's remaining useful life.The Company determines whether right-of-use assets have experienced impairment and performs the
corresponding accounting treatment in accordance with the relevant provisions of Accounting Standard for
Business Enterprises No.8 – Asset Impairment.* lease obligation
Lease liabilities are initially measured at the present value of the outstanding lease payments as of the
lease commencement date. Lease payments include: * fixed payments (including substantially fixed
payments); where lease incentives exist the amount related to such incentives is deducted; * variable
lease payments dependent on indices or ratios; * amounts payable based on the residual value of
guarantees provided by the lessee; * the exercise price of a purchase option provided the lessee
reasonably determines to exercise such option; * amounts payable for exercising the lease terminationoption provided the lease term reflects the lessee's intention to exercise such option.The Company uses the lease embedded interest rate as the discount rate; if the lease embedded
interest rate cannot be reasonably determined the Company's incremental borrowing interest rate is used
as the discount rate. The Company calculates the interest expense on lease liabilities for each period of the
lease term using a fixed periodic interest rate and records it as financial expense. This periodic interest rate
refers to the discount rate or the revised discount rate adopted by the Company.Variable lease payments not included in the measurement of lease liabilities are recognized in profit
or loss at the actual occurrence.When the valuation results for the lease renewal option lease termination option or purchase option
change the lease liability shall be remeasured using the present value calculated based on the revised lease
payments and the updated discount rate with the carrying amount of the right-of-use asset adjusted
accordingly. If there are changes in material lease payments the estimated payable amount of the residual
value of the guarantee or variable lease payments dependent on indices or ratios the lease liability shall
be remeasured using the present value calculated based on the revised lease payments and the original
discount rate and the carrying amount of the right-of-use asset shall be adjusted accordingly.* Short-term leasing and leasing of low-value assets
For short-term leases (those with a lease term not exceeding 12 months on the lease commencement
date) and low-value assets (valued below RMB 2000) the Company adopts a simplified approach: it does
not recognize right-of-use assets or lease liabilities but instead allocates lease payments over each period
of the lease term using the straight-line method or another systematic and reasonable method to the cost of
the relevant assets or to the current period's profit or loss.
（2）Our company acts as the lessor.
1 operation lease
The Company uses the straight-line method to recognize lease receivables from operating leases as
rental income for each period of the lease term. Variable lease payments related to operating leases that
have not been included in the lease receivables are recognized in profit or loss when actually incurred.
2 finance lease
On the lease commencement date the Company recognizes the receivable from the financial lease
and derecognizes the financial lease asset. The receivable from the financial lease is initially measured at
the net lease investment amount (the sum of the unguaranteed residual value and the present value of leasereceivables not yet received at the lease commencement date discounted at the lease's effective rate) and
interest income for the lease term is recognized at a fixed periodic rate. Variable lease payments received
by the Company that are not included in the net lease investment amount are recognized in profit or loss
when actually incurred.
29. Methodology and Selection Criteria for Determining Importance Standards
Disclosures related to the criteria for Methods for Determining and Selection Criteria for
determining materiality Importance Standards
When the amount exceeds 5% of the corresponding
receivables for which significant
accounts receivable and surpasses RMB 4 million or
individual provisions for bad debts have
when the provision for bad debts in the current period
been made
affects profit and loss figures.The reversal of bad debt provisions affects more than
Recovery or reversal of provisions for
5% of the current period's bad debt provision reversal
doubtful accounts on important
amount with the amount exceeding RMB 1 million or
receivables
influences the current period's profit and loss.Significant accounts payable and other More than 5% of the accounts payable or other
payables with an aging period exceeding payables balance with an amount exceeding RMB 1
one year million
Minority shareholders hold more than 5% of the equity
Subsidiaries in which minority
and their total assets net assets operating revenue and
shareholders hold significant equity
net profit account for over 10% of the corresponding
interests
items in the consolidated financial statements.The book value accounts for more than 10% of the
long-term equity investment or the investment income
Important joint venture or cooperative
(losses calculated in absolute terms) derived from joint
enterprise
ventures or associated enterprises accounts for more
than 10% of the consolidated net profit.The total assets or total liabilities account for more than
10% of the consolidated financial statements with an
Important Debt Restructuring
absolute amount exceeding RMB 2 million or have an
impact on net profit exceeding 10%.
30. Changes to significant accounting policies and accounting estimates
(1) Change in Accounting PoliciesThe Company had no significant changes to accounting policies during the reporting period.
(2) Change in Accounting Estimates
The Company had no significant changes to accounting estimates during the reporting period.IV. Taxes
1. Main Tax Types and Rates
categories of taxes Specific tax rate details
The taxable income is subject to output VAT at rates of
13%6%5% and 3% respectively. Value-added tax is calculated
added-value tax
and paid based on the difference after deducting the input VAT
eligible for deduction in the current period.urban maintenance &
The tax is calculated at 7% of the actual value-added tax paid.construction tax
extra charges of education funds The tax is calculated at 3% of the actual value-added tax paid.Local Education Surcharge The tax is calculated at 2% of the actual value-added tax paid.For value-based taxation the tax is calculated at 1.2% of the residual
value after deducting 30% of the property's original value in a single
building taxes
deduction; for rental-based taxation the tax is calculated at 12% of
rental income.business income taxes See the table below for details.Name of the taxpaying entity rate of income tax
Nanjing Putian Tianji Building Intelligence Co. Ltd. 15%
Nanjing Putian Datang Information Electronics Co. Ltd. 15%
Other tax entities other than those mentioned above 25%
2. Tax incentives and approval documents
1. Nanjing Putiantianji Building Intelligence Co. Ltd. obtained the High-Tech Enterprise Certificate
in December 2024 valid for three years and will pay corporate income tax at a reduced rate of 15% for
the 2024–2026 fiscal year.
2. Nanjing Putian Datang Information Electronics Co. Ltd. obtained its High-Tech Enterprise
Certificate in November 2024 valid for three years and will pay corporate income tax at a reduced rate of
15% for the 2024–2026 fiscal year.
3. Nanjing Putian Datang Information Electronics Co. Ltd. has been recognized as a software
enterprise. Certain software products from Nanjing Putian Tianji Building Intelligence Co. Ltd. andNanjing Southern Telecommunications Co. Ltd. comply with the provisions of Document Cai Shui [2011]
No.100 and are eligible for the value-added tax refund policy upon collection.V. Notes to the Consolidated Financial Statements Items
Unless otherwise specified the following note items (including explanations for key items in the
company's financial statements) use the following dates: "end of period" refers to December 312025; "end
of prior year" refers to December 312024; "current period" refers to the fiscal year 2025; and "prior
period" refers to the fiscal year 2024.
1. Cash and cash equivalents
project ending balance Year-end balance
bank deposit 7271675.43 1123773.79
other monetary funds 2233897.56 4272925.37
Funds deposited with the finance company 172779922.93 287204290.64
amount to 182285495.92 292600989.80
Note: Other monetary funds (restricted monetary funds): Bank acceptance bill deposit of 63397.44
yuan performance bond of 1835074.50 yuan and special account fund of the Party Committee of
335425.62 yuan.
2.Notes Receivable
(1) Classification and presentation of notes receivable
project ending balance Year-end balance
trade acceptance draft 18006988.67 570577.84
subtotal 18006988.67 570577.84
Less: Bad debt provision 778489.58 28528.89
amount to 17228499.09 542048.95
(2) Receivable notes that have been endorsed or discounted at the end of the period and have not yet
matured as of the balance sheet date
Amount of termination Amount not terminated for
project recognition at the end of the recognition at the end of the
period period
Bank Acceptance Bill 25105495.20
trade acceptance draft 11175343.22
amount to 25105495.20 11175343.22
(3) Classified presentation according to the bad debt provisioning method
class ending balancebook balance bad debt provision
amount of Percentage amount of book value
Proportion (%)
money (%) money
receivable notes for which bad debt 18006988.67 100.00 778489.58 4.32 17228499.09
provisions are made on a combined
basis
Among these: Commercial 18006988.67 100.00 778489.58 4.32 17228499.09
acceptance bills
amount to 18006988.67 100.00 778489.58 4.32 17228499.09
* In the combination accounts receivable notes are provided for bad debts based on the aging group.ending balance
project
bill receivable bad debt provision Proportion (%)
Within 1 year 18006988.67 778489.58 4.32
(4) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
bad debt 28528.89 749960.69 778489.58
provision
3. Accounts Receivable
(1) Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 261135229.49 230462634.34
1 to 2 years 40471815.19 42697494.23
2 to 3 years 18712438.45 14252845.13
3 to 4 years 8798550.02 11479048.33
4 to 5 years 7292353.56 11906272.67
More than 5 years 179431638.23 171103837.44
subtotal 515842024.94 481902132.14
Less: Bad debt provision 192255102.92 188366805.80
amount to 323586922.02 293535326.34
(2) Classified presentation according to the bad debt provisioning method
class ending balancebook balance bad debt provision
amount of Percentage amount of book value
Proportion (%)
money (%) money
accounts receivable for which bad 76050649.46 76050649.46
debt provisions are made on a per- 14.74 100.00
item basis
Accounts receivable for which bad 439791375.48 116204453.46 323586922.02
debt provisions are made on a 85.26 26.42
combined basis
Among these: Age of Account 439791375.48 116204453.46 323586922.02
85.2626.42
Portfolio
amount to 515842024.94 100.00 192255102.92 —— 323586922.02（ continuous ）
Year-end balance
book balance bad debt provision
class
amount of Percentage amount of book value
Proportion (%)
money (%) money
accounts receivable for which bad 76139678.24
debt provisions are made on a per- 76139678.24 15.80 100.00
item basis
Accounts receivable for which bad 112227127.56 293535326.34
debt provisions are made on a 405762453.90 84.20 27.66
combined basis
Among these: Age of Account 112227127.56 293535326.34
405762453.9084.2027.66
Portfolio
amount to 481902132.14 100.00 188366805.80 —— 293535326.34
* Accounts receivable for which a separate bad debt provision is made at the end of the period
ending balance
Proportion
Accounts Receivable (by Unit) bad debt Calculation
book balance of
provision Basis
Deduction
Dongpo Xi Laos Co. Ltd. Not expected to
19708086.5419708086.54100.00
be recovered
Xu Mou 17591683.74 17591683.74 100.00 Not expected toending balance
Proportion
Accounts Receivable (by Unit) bad debt Calculation
book balance of
provision Basis
Deduction
be recovered
China Tower Co. Ltd. Not expected to
13819926.9213819926.92100.00
be recovered
Putian Information Technology Co. Ltd. Not expected to
5983345.585983345.58100.00
be recovered
China Railway Communication and Signal Not expected to
3527803.353527803.35100.00
Shanghai Engineering Group Co. Ltd. be recovered
other Not expected to
15419803.3315419803.33100.00
be recovered
amount to 76050649.46 76050649.46 —— ——
Continue the table above
Beginning balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
Dongpo Xi Laos Co. Ltd. Not expected to
19708086.5419708086.54100.00
be recovered
Xu Mou Not expected to
17591683.7417591683.74100.00
be recovered
China Tower Co. Ltd. Not expected to
13819926.9213819926.92100.00
be recovered
Putian Information Technology Co. Ltd. Not expected to
6065598.366065598.36100.00
be recovered
China Railway Communication and Signal Not expected to
3534579.353534579.35100.00
Shanghai Engineering Group Co. Ltd. be recovered
other Not expected to
15419803.3315419803.33100.00
be recovered
amount to 76139678.24 76139678.24 —— ——
* Accounts receivable for which bad debt provisions are calculated based on the aging group within
the combinationending balance
project
book balance bad debt provision Proportion (%)
Within 1 year 261135229.49 2611352.29 1.00
1 to 2 years 40471815.19 2023590.76 5.00
2 to 3 years 18712438.45 1871243.85 10.00
3 to 4 years 8778320.02 2633496.00 30.00
4 to 5 years 7257603.56 3628801.79 50.00
More than 5 years 103435968.77 103435968.77 100.00
amount to 439791375.48 116204453.46 ——
Continue the table above
Year-end balance
project
book balance bad debt provision Proportion (%)
Within 1 year 230462634.34 2304644.02 1.00
1 to 2 years 42697494.23 2134874.72 5.00
2 to 3 years 14232615.13 1423261.51 10.00
3 to 4 years 11444298.33 3433289.50 30.00
4 to 5 years 7988708.14 3994354.08 50.00
More than 5 years 98936703.73 98936703.73 100.00
amount to 405762453.90 112227127.56 ——
(3) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Accounts
receivable for
which bad debt
112227127.563977325.90116204453.46
provisions are
made on a
combined basis
accounts
receivable for
76139678.2489028.7876050649.46
which bad debt
provisions areAmount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
made on a per-
item basis
amount to 188366805.80 3977325.90 89028.78 192255102.92
Among these: The amount of bad debt provisions recovered or reversed in this period is significant.Amount to be recovered or
name of organization Recovery Method
reversed
Putian Information Technology Co. Ltd. 82252.78 Recovered Amount
China Railway Communication and Signal 6776.00 Recovered Amount
Shanghai Engineering Group Co. Ltd.amount to 89028.78 ——
(5) Details of the top five accounts receivable by the debtor's end-of-period balances
End-of-period Proportion (%) of the End-of-period
Debtor's Name balance of accounts total ending balance of balance of bad debt
receivable accounts receivable provisions
Dongpo Xi Laos Co. Ltd. 19708086.54 3.82 19708086.54
Xu Mou 17591683.74 3.41 17591683.74
Shenzhen Huawang
Enterprise Management Co. 16906340.10 3.28 169063.40
Ltd.China United Network
Communications Co. Ltd. 16066062.47 3.11 13268771.99
The 28th Research Institute of
China Electronics Technology 15663961.54 3.04 399668.76
Group Corporation
amount to 85936134.39 16.66 51137274.43
4. Receivables Financing
project ending balance Year-end balance
Bank Acceptance Bill 27655375.14 34520299.04
5. Advance Payment
(1) Advance payments are presented by aging.
ending balance Year-end balance
Account Age
amount of money Percentage (%) amount of money Percentage (%)
Within 1 year 2295980.21 66.45 1065608.14 47.83ending balance Year-end balance
Account Age
amount of money Percentage (%) amount of money Percentage (%)
1 to 2 years 414362.15 11.99 372381.12 16.72
2 to 3 years 101166.16 2.93 298603.89 13.40
More than 3 years 643644.50 18.63 491170.71 22.05
amount to 3455153.02 100.00 2227763.86 100.00
(2) Prepayment details for the top five accounts by end-of-period balance categorized by prepayment
recipient
Proportion (%) of the total ending balance
name of organization ending balance
of prepaid accounts
ZTE Corporation Limited 1000000.00 28.94
Yangzhou Titan Information 342390.00 9.91
Technology Co. Ltd.Nanjing Changting Electronics 216200.00 6.26
Co. Ltd.Guangdong Fudong Electronics 150000.00 4.34
Co. Ltd.Huai'an Tianji Building 130692.09 3.78
Intelligence Co. Ltd.amount to 1839282.09 53.23
6. Other Receivables
project ending balance Year-end balance
accounts receivable-other 5239886.21 6859962.77
(1) Other Receivables
* Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 3789466.81 3841863.96
1 to 2 years 1296226.51 883895.77
2 to 3 years 451282.77 2516560.12
3 to 4 years 2398096.46 1374910.44
4 to 5 years 3465507.76 1293768.78
More than 5 years 40150177.39 40918974.04
subtotal 51550757.70 50829973.11Account Age ending balance Year-end balance
Less: Bad debt provision 46310871.49 43970010.34
amount to 5239886.21 6859962.77
* Classification by nature of funds
Book balance at the end
Nature of the Fund End-of-period book balance
of the previous year
Accounts Receivable and Payables 42706873.96 41004731.72
Deposit Guarantee Fund 7619798.27 8623995.84
Business travel petty cash fund 42135.51 75593.51
other 1181949.96 1125652.04
subtotal 51550757.70 50829973.11
Less: Bad debt provision 46310871.49 43970010.34
amount to 5239886.21 6859962.77
* Provision for bad debts
stage Ⅰ stage Ⅱ phase III
Expected credit
losses throughout Expected credit
bad debt provision Expected credit the entire
losses throughout
losses over the duration (where the entire duration
amount to
next 12 months no credit (incorporating
impairment has already occurred
occurred) credit impairment)
Year-end balance 12991915.44 30978094.90 43970010.34
This period's accrual 2340861.15 2340861.15
ending balance 15332776.59 30978094.90 46310871.49
* Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
stage Ⅰ 12991915.44 2340861.15 15332776.59
stage Ⅱ 30978094.90 30978094.90
amount to 43970010.34 2340861.15 46310871.49
* Details of the top five other receivables by the debtor's accumulated ending balancesProportion
(%) of the bad debt
Nature of the total ending provision
name of organization ending balance Account Age
Fund balance of ending
other balance
receivables
Beijing Likang
Accounts
General
Receivable and 28912122.71 More than 5 years 56.08 28912122.71
Communication
Payables
Equipment Co. Ltd.
2–3 years:
Accounts 21306.39; 4–5
Nanjing Putian
Receivable and 1784619.72 years: 504197.5; 3.46 1784619.72
Technology Co. Ltd.Payables Over 5 years:
1259115.83
Nanjing Putian Accounts
Communication Receivable and 805545.63 More than 5 years 1.56 805545.63
Industrial Co. Ltd. Payables
CITIC International Deposit
558788.50 Within one year 1.08 27939.43
Tendering Co. Ltd. Guarantee Fund
Nanjing Municipal
Office for the
Management of Wage
Deposit
Guarantee Funds for 400000.00 More than 5 years 0.78 400000.00
Guarantee Fund
Migrant Workers in
Construction
Enterprises
amount to —— 32461076.56 —— 62.96 31930227.49
7. Inventory
(1) Inventory Classification
project ending balanceImpairment provision
for inventory value
decline/Impairment
book balance book value
provision for
contract
performance costs
raw and processed material 14141796.23 8238010.07 5903786.16
goods in process 3654045.14 2881380.17 772664.97
merchandise inventory 68332138.56 47303888.65 21028249.91
goods shipped in transit 80194291.90 49355227.23 30839064.67
Commissioned processing materials 4198338.62 804691.99 3393646.63
amount to 170520610.45 108583198.11 61937412.34（ continuous ）
Year-end balance
Impairment provision
for inventory value
project decline/Impairment
book balance book value
provision for
contract
performance costs
raw and processed material 17620673.90 10482980.51 7137693.39
goods in process 3406609.65 2881380.17 525229.48
merchandise inventory 79400394.27 48287969.61 31112424.66
goods shipped in transit 96893480.52 52614965.91 44278514.61
Commissioned processing materials 4887020.15 804691.99 4082328.16
amount to 202208178.49 115071988.19 87136190.30
(2) Inventory impairment provision/Contract performance cost impairment provision
Increase amount for this reduction amount for this
period period
project Year-end balance ending balance
Revert or write
Accruishment other other
off
raw and
processed 10482980.51 123487.57 2368458.01 8238010.07
materialIncrease amount for this reduction amount for this
period period
project Year-end balance ending balance
Revert or write
Accruishment other other
off
goods in process 2881380.17 2881380.17
merchandise 48287969.61 2088537.74 3072618.70 47303888.65
inventory
goods shipped in 52614965.91 25663.72 3285402.40 49355227.23
transit
Commissioned
processing 804691.99 804691.99
materials
amount to 115071988.19 2237689.03 8726479.11 108583198.11
8. Other current assets
project ending balance Year-end balance
Input tax amount to be deducted 2034749.70 1085488.28
advance payment of income tax 162034.21 141091.78
amount to 2196783.91 1226580.06
9. Long-term equity investment
Changes in this period
Other
Investment
additiona Comprehe
gains and losses Other
Invested entity Year-end balance l nsive
disinvestment recognized changes
investme Income
under the in equity
nt Adjustmen
equity method
ts
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co. 10412683.37 10412571.93 -111.44
Ltd.amount to 10412683.37 10412571.93 -111.44（ continuous ）Changes in this period
End-of-period
Announcement
Make an balance of
Invested entity of cash dividend ending balance
impairment other impairment
or profit
provision provision
distribution
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co.Ltd.amount to
10. Investments in Other Equity Instruments
(1) Investment in other equity instruments
project ending balance Year-end balance
Hangzhou Hongyan Electric Appliance 321038.00 321038.00
Co. Ltd.Nanjing Yuhua Electroplating Factory 420915.00 420915.00
Beijing Likang General Communication
Equipment Co. Ltd.amount to 741953.00 741953.00
The company's equity investments in Nanjing Yuhua Electroplating Factory Hangzhou Hongyan
Electric Appliance Co. Ltd. and Beijing Likang General Information Equipment Co. Ltd. constitute non-
trading equity instrument investments. Consequently the company classifies these investments as equity
instruments measured at fair value with changes recognized in other comprehensive income.
11. Investment property
(1) Investment property measured at cost
project Houses and buildings
I. Original Book Value
Year-end balance 20011121.96
Increase amount for this period
reduction amount for this period
ending balance 20011121.96
II. Cumulative Depreciation and Cumulative Amortization
Year-end balance 14463883.49project Houses and buildings
Increase amount for this period 569967.75
Of which: provision for or amortization 569967.75
reduction amount for this period
ending balance 15033851.24
III. Impairment Provision
IV. Book Value
End-of-period book value 4977270.72
Book value at the end of the previous year 5547238.47
12. Fixed Assets
project ending balance Year-end balance
fixed assets 84173058.11 85757024.11
(1) Fixed Assets
* Fixed Assets Status
Houses and machinery Electronic conveyer Other
project amount to
Buildings equipment Equipment devices
Original book value
Year-end balance 103626682.38 46373354.29 19268720.26 3091621.11 16511028.71 188871406.75
Increase amount
129158.733666276.452446951.3532037.176274423.70
for this period
Including:
129158.733666276.451203123.5132037.175030595.86
Purchase
other 1243827.84 1243827.84
570141.841413219.483262232.81292412.615538006.74
reduction amount for
this period
258017.84481515.643262232.81292412.614294178.90
Of which: disposal or
scrapping
312124.00931703.841243827.84
other
ending balance 103185699.27 48626411.26 18453438.80 3091621.11 16250653.27 189607823.71
accumulated
depreciation
39201918.0827206704.7017503996.982907256.1515568544.17
Year-end balance 102388420.08
3916994.341470385.631093280.2450634.18131642.996662937.38
Increase amountHouses and machinery Electronic conveyer Other
project amount to
Buildings equipment Equipment devices
for this period
3916994.341203788.381093280.2450634.18131642.996396340.13
Of which:
provision made
266597.25266597.25
other
reduction amount for
391060.76467752.783198912.94284827.944342554.42
this period
Of which: disposal or
124463.52467752.783198912.94284827.944075957.18
scrapping
other 266597.24 266597.24
ending balance 42727851.66 28209337.55 15398364.28 2957890.33 15415359.22 104708803.04
Impairment Provision
Year-end balance 539124.00 11550.65 175287.91 725962.56
Increase amount
for this period
reduction amount
for this period
ending balance 539124.00 11550.65 175287.91 725962.56
book value
End-of-period book 59918723.61 20405523.06 3055074.52 133730.78 660006.14
84173058.11
value
63885640.3019155098.941764723.28184364.96767196.63
Book value at the end
85757024.11
of the previous year
* Status of temporarily idle fixed assets
Original accumulated Impairment
project book value remarks
book value depreciation Provision
machinery equipment 212485.00 196288.30 11169.15 5027.55
conveyer 36000.00 34920.00 1080.00
other 342985.18 157407.73 175287.91 10289.54
amount to 591470.18 388616.03 191484.61 16397.09
* Fixed assets leased out through operating leases
project End-of-period book valueproject End-of-period book value
Houses and Buildings 18016866.08
* Status of fixed assets for which the property ownership certificate has not been obtained
Reasons for the failure to obtain the property
project book value
ownership certificate
Houses and Buildings 2394650.45 Still being processed
13. Right-to-Use Assets
project Houses and Buildings
Original book value
Year-end balance 2686684.00
This year's increase amount
This year's reduction amount
year end balance 2686684.00
accumulated depreciation
Year-end balance 238890.96
This year's increase amount 260608.32
Of which: provision made 260608.32
This year's reduction amount
year end balance 499499.28
Impairment Provision
Year-end balance
This year's increase amount
This year's reduction amount
year end balance
book value
Year-end book value 2187184.72
Book value at the end of the previous year 2447793.04
14. Intangible Assets
(1) Information on Intangible Assets
project land use right software amount toproject land use right software amount to
Original book value
Year-end balance 14116846.37 10452159.22 24569005.59
Increase amount for
this period
reduction amount
for this period
ending balance 14116846.37 10452159.22 24569005.59
accumulated
amortization
Year-end balance 3648432.30 9248248.59 12896680.89
Increase amount for 334875.36 133478.76
468354.12
this period
Of which: 334875.36 133478.76
468354.12
provision made
reduction amount
for this period
ending balance 3983307.66 9381727.35 13365035.01
Impairment Provision
book value
End-of-period book 10133538.71 1070431.87 11203970.58
value
Book value at the 10468414.07 1203910.63 11672324.70
end of the previous year
15. Long-term prepaid expenses
Increase Amortization
Year-end Other reduction
project amount for this amount for this ending balance
balance amount
period period
Expenditure on 2076305.95 1897965.96 919639.72
renovation and 3054632.19
modification
16. Deferred income tax assets/deferred income tax liabilities
(1) Details of unconfirmed deferred tax assets
project ending balance Year-end balanceproject ending balance Year-end balance
Deductible temporary differences 349948134.66 349457805.78
Deductible loss 178094465.64 160136771.28
amount to 528042600.30 509594577.06
(2) The deductible losses of unconfirmed deferred tax assets shall mature in the following years.
a particular year ending balance Year-end balance remarks
202658332948.8458332948.84
202746663704.8546663704.85
202834598495.2534598495.25
20291622476.495269870.68
203020701608.361188328.53
20319571047.649571047.64
20323128208.763128208.76
20331792957.221792957.22
20341683018.23
amount to 178094465.64 160545561.77
17. Other non-current assets
project ending balance Year-end balance
Prepayment for the acquisition of
long-term assets 719280.00
18. Assets with restricted ownership or usage rights
project End-of-period book value Limitation Reason
Bank acceptance bill margin
monetary resources 2233897.56 performance bond and special account
funds of the Party Committee
fixed assets 52986451.08 mortgage
immaterial assets 4901288.52 mortgage
amount to 60121637.16
Note: For details on the mortgage status of fixed assets and intangible assets refer to Note 19; for short-term loans see
the relevant section.
19. Short-term loan
(1) Classification of Short-Term Loans
project ending balance Year-end balance
mortgage loan 93874324.80 49299759.96project ending balance Year-end balance
Credit Loan 108861610.37 78828227.79
bill receivable 1189786.81
amount to 203925721.98 128127987.75
Note: 1. The Company obtained a loan of RMB 14.7641 million by mortgaging the property located at No.8 Fenghui
Avenue Yuhuatai District Nanjing and the land use rights within its premises; it also pledged the equity stake of 56.28% in
Nanjing Southern Telecommunications Co. Ltd. (corresponding to an investment amount of RMB 28.5340 million) to its
parent company China Electronics Guorui Group Co. Ltd. to secure a loan of RMB 66.8 million; 2. The subsidiary
Nanjing Putian Tianji Building Intelligence Co. Ltd. obtained a loan of RMB 10.5 million by mortgaging three properties
and the land use rights located at No.18 Songgang Street Moling Subdistrict Jiangning District; 3. The subsidiary Nanjing
Putian Datang Information Electronics Co. Ltd. obtained a loan of RMB 1.75 million by mortgaging the property at No.8
Fenghui Avenue Yuhuatai District Nanjing and the land use rights within its premises.
20. Payable Notes
kind ending balance Year-end balance
trade acceptance draft 446679.01 1809060.50
Bank Acceptance Bill 6328555.16 8313165.25
amount to 6775234.17 10122225.75
21. Accounts Payable
(1) Presentation of Accounts Payable
project ending balance Year-end balance
Within 1 year (inclusive) 206129313.63 268987560.21
More than 1 year 67252993.23 80354619.00
amount to 273382306.86 349342179.21
(2) Significant accounts payable with an aging period exceeding 1 year
Reasons for the outstanding or
project ending balance
untransferred amounts
China Putian Information Industry Co. 14918045.42 Not yet at the payment node
Ltd.
22. Advance Payments
(1) Presentation of advance receipts
project ending balance Year-end balance
Within 1 year (inclusive) 295001.06 236005.32
23. Contract Liabilities(1) Contractual Liabilities
project ending balance Year-end balance
Advanced Payment 9264082.89 27919961.45
Less: Deferred sales tax to be written off 837769.44 3125042.32
(Note 5 28)
amount to 8426313.45 24794919.13
24. Employee Compensation Payable
(1) Presentation of Employee Compensation Payables
Reduce in this
project Year-end balance Add to this issue ending balance
period
Short-term compensation 17066962.98 104395263.90 108839944.39 12622282.49
Post-employment Benefits – 16522208.41 16522208.41
Establish a Savings Plan
Resignation benefits 3742433.63 3742433.63
amount to 17066962.98 124659905.94 129104586.43 12622282.49
(2) Presentation of Short-Term Compensation
Reduce in this
project Year-end balance Add to this issue ending balance
period
Salaries bonuses allowances
and subsidies 3625349.25 79586108.37 83211457.50 0.12
employee services and benefits 2251999.49 2251999.49
Social Insurance Contributions 7018805.71 7018805.71
Of which: Medical insurance 6093993.95 6093993.95
premium
Work-related injury 493037.41 493037.41
insurance premium
Maternity insurance premium 431774.35 431774.35
housing fund 3216865.05 7824885.82 7824885.82 3216865.05
Trade union funds and employee
education funds 10209752.15 455385.87 1274717.23 9390420.79
Other short-term compensation 14996.53 7258078.64 7258078.64 14996.53
amount to 17066962.98 104395263.90 108839944.39 12622282.49
(3) Establishment of a Deposit Plan and Its Presentation
Reduce in this
project Year-end balance Add to this issue ending balance
periodReduce in this
project Year-end balance Add to this issue ending balance
period
basic retirement security 15484038.01 15484038.01
unemployment insurance expense 648619.80 648619.80
Corporate Annuity Contribution 389550.60 389550.60
amount to 16522208.41 16522208.41
25. Taxes and fees payable
project ending balance Year-end balance
added-value tax 4364752.36 5469015.04
business income taxes 449719.44 1426860.42
building taxes 313001.13 351313.55
Land Use Tax 81827.95 80701.94
income tax for individuals 123313.16 189374.87
urban maintenance & construction tax 386451.15 493348.10
extra charges of education funds 182799.53 210880.61
Local Education Surcharge 93237.01 140868.41
Other taxes and fees 47096.07 97329.58
amount to 6042197.80 8459692.52
26. Other Payables
project ending balance Year-end balance
dividends payable 11044600.00
accounts payable-others 37987466.18 41918074.35
amount to 49032066.18 41918074.35
(1) Dividends payable
project ending balance Year-end balance
common stock dividends 11044600.00
(2) Other Payables
* Listed by nature of the payment
project ending balance Year-end balance
accounts receivable payable 25867467.58 31279667.14
Unpaid installation costs 12937.00 87519.38
Deposit Guarantee Fund 3990787.59 3467780.26
Operating expenses 6833831.60 6279652.71project ending balance Year-end balance
other 1282442.41 803454.86
amount to 37987466.18 41918074.35
* Other significant payables with an aging period exceeding 1 year
Reasons for the outstanding
project ending balance
or untransferred amounts
China Putian Information Industry Group Co. 9591612.50 The settlement conditions
Ltd. have not been met.
27. Non-current liabilities maturing within one year
project ending balance Year-end balance
Long-term loans maturing within 1 year (Note 5 70060958.33 86988463.61
29)
Lease liabilities maturing within 1 year (Note 5 838955.39 1072195.82
30)
amount to 70899913.72 88060659.43
28. Other current liabilities
project ending balance Year-end balance
Tax payable for write-off 837769.44 3125042.32
Revert at the end of the period the endorsed and
transferred commercial acceptance bills and 9985556.41
drafts that have not yet matured.accrued expenses 97087.38
amount to 10920413.23 3125042.32
29. Long-term loan
Year-end balance Interest rate range
project
ending balance (%)
Pledge Loan 70000000.00 86907415.00 4.05%
guaranteed loan 70081048.61 3.75-3.80
Less: Long-term borrowings due
within one year (Note 5 27) 70000000.00 86988463.61
amount to 70000000.00
Note: The parent company China Electric Guorui Group Co. Ltd. provided a guarantee for the company's loan from
China Electronic Technology Finance Co. Ltd.
30. Leasing Liabilities
project Year-end Increased this year Reduced this year end
balance year balanceThis
New Lease year's other
interest
machinery equipment 1912569.78 1073614.39 838955.39
Less: Lease liabilities due
within one year (Note 5 —— —— ——
27)1072195.82
838955.39
amount to 840373.96 —— —— ——
31. Paid-in Capital
Add to this Reduce in this
Investor Name Year-end balance ending balance
issue period
Total Number of Shares 215000000.00 215000000.00
32. Capital Reserve
Year-end Add to this Reduce in this
project ending balance
balance issue period
capital stock premium 137786640.63 137786640.63
Other Capital Reserve 60169226.95 3362261.03 63531487.98
amount to 197955867.58 3362261.03 201318128.61
Note: This year the reversal of previously accrued housing purchase subsidies that were not payable resulted in an
increase in capital reserve by RMB 3362261.03.
33. Inventory shares
Increase amount reduction amount
project Beginning balance ending balance
for this period for this period
Share Repurchase 2995076.96 2995076.96
34. Other Comprehensive Income
Amount of Transactions in This Period
reduction:
originally
current recognized in
End of last period other
After-tax After-tax
year Amount comprehensive
Less: amount amount end of term
project
balance incurred income
Income attributable
before transferred to Tax to the
attributable balance
income profit or loss (or Expense parent
to minority
shareholders
tax retained company
earnings) in the
current period
Other
comprehensive
income
reclassified -1854910.00 -1854910.00
into profit or
loss
Of which: the
amount of -1854910.00 -1854910.00
financial assetAmount of Transactions in This Period
reduction:
originally
current recognized in
End of last period other
After-tax After-tax
year Amount comprehensive
Less: amount
Income attributable amount end of termproject
balance incurred incomebefore transferred to Tax to the
attributable balance
income profit or loss (or Expense parent
to minority
company shareholderstax retained
earnings) in the
current period
reclassification
recognized in
other
comprehensive
income
35. Surplus Reserve
Year-end Add to this Reduce in this
project ending balance
balance issue period
589559.
Legal surplus reserve 589559.77
77
36. Undistributed Profits
project current period prior period
Undistributed profits at the end of the previous year -405721306.51
-394344427.37
before adjustment
Adjusted undistributed profit at the end of the -405721306.51
-394344427.37
previous year
Total: Net profit attributable to the parent company's 11376879.14
-9462362.33
shareholders for this period
Subtract: Withdrawal of statutory surplus reserve
Extract the discretionary surplus reserve
Extract general risk provision
Dividend payable for common stock
Dividends in the form of ordinary shares converted
into equity capital
End-of-period undistributed profits -403806789.70 -394344427.37
37. Operating revenue and operating costs
(1) Operating Revenue and Operating Costs
Amount for this period Previous period amount
project
income prime cost income prime cost
main business 607507744.76 483796308.13 783845853.95 620010069.86Amount for this period Previous period amount
project
income prime cost income prime cost
Other Businesses 10131740.20 3724088.82 27824673.46 15214660.19
amount to 617639484.96 487520396.95 811670527.41 635224730.05(2) Table of Operating Revenue Deductions
project this year Specific deduction details previous year Specific deduction details
Operating Revenue Amount 617639484.96 811670527.41
Total amount of operating revenue minus all items 9547500.84 15106674.24
Proportion (%) of total itemized operating revenue to total
operating revenue 1.55 / 1.86 /
I. Business revenue unrelated to the core business
1. Income from non-core business activities. This includes The rental income from The rental income from property
revenue generated from leasing fixed assets intangible assets or property leasing and tenant leasing and tenant utilities
packaging materials; selling materials; exchanging materials for utilities amounted to RMB amounted to RMB 9902731.72;
non-monetary assets; providing entrusted management services; 9547500.84 5419449.16; material sales 15106674.24 material sales revenue was RMB
and other income that although recorded as part of core business revenue was RMB 4213608.92; and software
revenue falls outside the normal operations of the listed 3596017.60; and software services and other income totaled
company. services and other income RMB 990333.60.totaled RMB 532034.08.Subtotal of business revenue unrelated to the main business 9547500.84 15106674.24
II. Income without commercial substance
III. Other income that is unrelated to the main business or lacks
commercial substance
Net operating revenue after deductions 608091984.12 796563853.17(3) Income and Cost Breakdown Information
Amount for this period Previous period amount
Income Category
income prime cost income prime cost
Classified by business
type
communications
612283394.66486148821.14708949979.63561406842.78
industry
Electrical Industry 92817798.06 72832536.55
amount to 612283394.66 486148821.14 801767795.69 634239379.33
Classification by sales
channel
Direct Sale 402638086.88 320406125.53 511195634.82 404532326.74
distribution 209645307.78 165742695.61 290572160.87 229707052.59
amount to 612283394.66 486148821.14 801767795.69 634239379.33
(4) Description of Performance Obligations
The nature of the The amount
Fulfill goods for which Are you the expected to be
The type of quality
project performance Important payment the company primary refunded to
assurance provided
obligations terms undertakes to responsible the customer
by the company and
transfer party by the the corresponding
ownership company obligations
Make installment
Sell video Customer payments
conferencing acceptance according to the
Video Warranty period:
products project or time nodes
conferencing yes not have
product Warrantysigned goods specified in the
contract.Make installment
Comprehensive payments
Distribution Customerreceives the according to the Integrated yes not have Warranty period:Cable System goods time nodes Cabling Products WarrantyProducts specified in the
contract.Make installment
Sales of basic Customer payments
communication acceptance according to the Basic Warranty period:
and networking project or time nodes Communication yes not haveProducts Warrantyproducts signed goods specified in the
contract.Make installment
Provide According to payments
construction the progress according to the Integrated yes not have Warranty period:
services of contract time nodes Cabling Products Warrantyfulfillment specified in the
contract.Make installment
Provide According to payments
maintenance the progress according to the Maintenance and
services of contract time nodes Other Services
yes not have not have
fulfillment specified in the
contract.
1(5) Explanation of allocation to the remaining performance obligations
At the end of this reporting period the revenue corresponding to performance obligations that have been
signed but not yet performed or fully performed amounted to RMB 131.3714 million of which: RMB 96.1169
million is expected to be recognized as revenue in fiscal year 2026; and RMB 35.2545 million is expected to be
recognized as revenue in fiscal year 2027.
38. Taxes and Surcharges
project Amount for this period Previous period amount
building taxes 1113060.03 2013656.63
urban maintenance & construction 1034092.50 1572198.38
tax
extra charges of education funds 574825.93 831597.75
Local Education Surcharge 165874.37 291923.55
Land Use Tax 328434.78 497743.11
stamp duty 411523.84 531489.95
other 199641.22 389503.08
amount to 3827452.67 6128112.45
Note: The calculation standards for various taxes and surcharges are detailed in Note 4 "Taxes."
39. Selling Expenses
project Amount for this period Previous period amount
employee compensation 40148437.58 48581858.41
Business entertainment expenses 3423577.14 7730139.58
travel expense 4134554.60 4392780.47
administrative expenses 2970563.85 3573822.57
Sales Service Fee 978297.95 914243.41
Business Promotion Expenses 558817.56 121693.68
Meeting fee 301611.32 249286.74
Device Maintenance Fee 18130.65
other 3120215.45 6174813.47
amount to 55636075.45 71756768.98
40. Administrative Expenses
project Amount for this period Previous period amount
employee compensation 32254650.18 42541907.68
Depreciation and Amortization 3784927.63 5175912.59
Consultation and intermediary fees 2533652.05 5515617.75
1project Amount for this period Previous period amount
administrative expenses 1382829.17 3939247.88
Leasing and property fees 830762.18 2108251.75
Business entertainment expenses 292885.04 581870.76
travel expense 215024.33 568331.70
other 2363392.85 1844769.79
amount to 43658123.43 62275909.90
41. R&D expenses
project Amount for this period Previous period amount
employee compensation 23367004.89 28521143.99
Interim trial fee 1512348.46 1541213.73
travel expense 1070452.09 1211814.77
Material Request 775418.71 748668.74
Depreciation and Amortization 888456.28 942670.55
other 1595117.28 1885323.46
amount to 29208797.71 34850835.24
42. Financial Expenses
project Amount for this period Previous period amount
interest expense 8748305.48 10723524.38
Subtraction: Interest Income 452186.54 639938.05
exchange loss 4867.97 -1150.08
Less: Exchange gains
Service charge expenditure 296566.30 81356.02
amount to 8597553.21 10163792.27
43. Other Income
The amount included in
Amount for this Previous period the non-recurring gains
project
period amount and losses for the current
period
Government subsidies related to 2780647.16 911728.87
1951399.86
the daily operations of enterprises
Additional VAT deduction for
1772849.831862254.79
advanced manufacturing industries
1The amount included in
Amount for this Previous period the non-recurring gains
project
period amount and losses for the current
period
Refund of the personal income tax
47386.399574.65
withholding fee
amount to 4600883.38 2783558.31 1951399.86
The details of government subsidies are as follows:
Subsidy Project Amount for this period Previous period Asset-related/Income-amount related
Software Tax Refund 829247.30 546711.46 Related to income
Special Fund for Industrial
Transformation and Upgrading 500000.00 30000.00 Related to income
Jiangsu Province: Specialized
Advanced Unique and Innovative 500000.00 52000.00 Related to income
Tengfei Policy Incentive 450826.50 Related to income
Special Subsidy for Enterprise
Upgrade Services 350000.00 Related to income
Job Stability Subsidy 85584.00 109426.00 Related to income
High-tech enterprise subsidies 50000.00 Related to income
Development Economics
Department Expenses 50000.00 Related to income
奖励 for Digital Economy Military 50000.00 Related to income
Qualification Certification
other 14989.36 73591.41 Related to income
44. Investment Return
project Amount for this period Previous period amount
Gains from long-term equity investments -111.44 -5.77
accounted for using the equity method
Investment income generated from long-term 7389153.73 50832148.02
equity investments
收益 from debt restructuring 643686.83 1514624.88
other 5416.29 -50223.40
amount to 8038145.41 52296543.73
45. Credit impairment loss
project Amount for this period Previous period amount
Bad debt loss on notes receivable -749960.69 -2548249.56
Loss on bad debts of accounts -3888297.12 -4263347.36
receivable
Other receivables bad debt losses -2340861.15 -822788.59
1project Amount for this period Previous period amount
amount to -6979118.96 -7634385.51
46. Asset impairment loss
project Amount for this period Previous period amount
loss on inventory -2237689.03 -14428752.85
47. Income from asset disposal
The amount
included in the
Amount for this Previous period non-recurring
project
period amount gains and losses
for the current
period
Gains or losses from the disposal of
fixed assets 5359026.59 1083098.78 5359026.59
48. Non-operating income
The amount included
Amount for this in the non-recurring
project Previous period amount
period gains and losses for
the current period
Unpayable accounts payable 2219780.87 3498793.46 2219780.87
Fines Revenue 72147.00 79732.91 72147.00
other 708819.12 4905.66 708819.12
amount to 3000746.99 3583432.03 3000746.99
49. Non-operating expenses
The amount included
in the non-recurring
project Amount for this period Previous period amount
gains and losses for
the current period
Late payment penalty expenses 5635.24 3306.68 5635.24
Fines expenditure 25000.00
other 517268.31 3638975.61 517268.31
amount to 522903.55 3667282.29 522903.55
50. Income Tax Expense
(1) Income Tax expense statement
1project Amount for this period Previous period amount
Current income tax expense 1204086.83 2934143.89
Deferred income tax expense
other 154333.67 246161.16
amount to 1358420.50 3180305.05
(2) The adjustment process between accounting profit and income tax expense
project Amount for this period
total profit 450176.37
Income tax expense calculated based on the statutory/applicable tax rate 112544.09
The impact of applying different tax rates to subsidiaries -1687628.12
Adjustment for the impact of income tax from prior periods
The impact of non-taxable income
The impact of non-deductible costs expenses and losses 1066745.64
Assess the impact of unconfirmed deferred tax assets on deductible losses in
the initial period
This year no impact of deductible temporary differences or deductible 4926244.59
losses related to deferred tax assets was recognized.The impact of the additional deduction for research and development -3059485.70
expenses
Income Tax Fee 1358420.50
51. Items in the Cash Flow Statement
(1) Receipt of other cash related to operating activities
project Amount for this period Previous period amount
public subsidy 1951399.86 325259.82
interest revenue 452186.54 639938.05
Receiving and Paying Accounts 30462830.20 32939753.75
other 4085739.25 9153979.71
amount to 36952155.85 43058931.33
(2) Payment of other cash related to operating activities
project Amount for this period Previous period amount
out-of-pocket expenses 28400566.70 50687399.27
Receiving and Paying Accounts 28883722.23 30830777.55
other 2333599.27 3923916.79
1project Amount for this period Previous period amount
amount to 59617888.20 85442093.61
(3) Payment of other cash related to investment activities
project Amount for this period Previous period amount
Pay the expenses related to the payment and settlement
405500.00
subsidiary.
(4) Payment of other cash related to financing activities
project Amount for this period Previous period amount
Pay the rental fee 1287438.87 916760.88
Stock Repurchase 2997498.00
amount to 1287438.87 3914258.88
(5) Changes in various liabilities arising from financing activities
Beginning Add to this issue Reduce in this periodproject balance Non-cash Non-cash ending balanceCash Change changes Cash Change changes
money
borrowed for 128127987.75 202614067.87 3817197.35 130633530.99 203925721.98
short time
money
borrowed for 70000000.00 3674008.33 3613050.00 70060958.33
long term
Leasing
liabilities
(including
leasing 840373.96 1136020.30 1137438.87 838955.39
liabilities
maturing within
1 year)
notes payable 14954.96 14954.96
accounts
payable-others 1224880.89 150000.00 1374880.89
Non-current
liabilities
maturing within 88060659.43 72339015.56 89266520.84 1072195.82 70060958.33
one year
amount to 288253902.03 202614067.87 81131196.50 226040376.55 71133154.15 274825635.70
52. Supplementary Information to the Cash Flow Statement
(1) Supplementary Information to the Cash Flow Statement
Supplementary Information Amount for this Previous period
period amount
1. Adjust net profit to operating cash flow:
net margin -908244.13 22106285.67
Add: Asset impairment provision 2237689.03 14428752.85
Credit impairment loss 6979118.96 7634385.51
1Supplementary Information Amount for this Previous period
period amount
Depreciation of fixed assets depletion of oil and gas
assets depreciation of productive biological assets 7226916.20 8414965.46
depreciation of right-of-use assets
amortization of intangible assets 468354.12 814279.13
Amortization of long-term prepaid expenses 919639.72 950185.51
Losses (or gains) from disposal of fixed assets -5359026.59 -1083098.78
intangible assets and other long-term assets (marked
with a "-" sign)
Fixed asset disposal loss (profit entered with a "-"
sign)
Loss on change in fair value (profit/loss indicated
with a "-" sign)
Financial expenses (report revenue with a "-" sign) 8748305.48 10723524.38
Investment loss (profit is indicated with a "-") -8038145.41 -52296543.73
Decrease in deferred tax assets (enter with a "-")
Increase in deferred tax liability (reduce by entering
a negative sign)
reduction in inventory (increase indicated with a "-") 31687568.04 37599818.54
Decrease in operating receivables (enter with a "-" -62656023.57 -23477786.08
sign for an increase)
Increase in operating payable items (减少 items are -68579422.44 -43011110.86
indicated with a "-").other
Net cash flow from operating activities -87273270.59 -17196342.40
2. Major investment and financing activities not
involving cash receipts or payments:
Debt converted into capital
convertible corporate bonds maturing within one year
fixed assets under financing lease
3. Net change in cash and cash equivalents:
End-of-period cash balance 180051598.36 288328064.43
Less: The balance of cash at the end of the previous year 288328064.43 164177680.11
1Supplementary Information Amount for this Previous period
period amount
Add: The ending balance of cash equivalents
Less: The balance of cash equivalents at the end of the
previous year
Net increase in cash and cash equivalents -108276466.07 124150384.32
(2) Cash received or paid related to significant investment activities
Nature Amount for this Previous period
period amount
Cash paid for important investment activities
Pay the expenses related to the payment and settlement 405500.00
subsidiary.
(3) Composition of cash and cash equivalents
project ending balance Year-end balance
Cash 180051598.36 288328064.43
Among these: Bank deposits available for payment at any 180051598.36 288328064.43
time.
53. Foreign currency monetary items
(1) Foreign currency monetary items
End-of-period foreign Conversion Exchange End-of-period converted
project
currency balance Rate RMB balance
monetary resources
Of which: US dollar 30525.13 7.0288 214555.03
HongKong dollar 10.33 0.90322 9.33
54. Lease
(1) The Company as the lessee
* For details on right-of-use assets and lease liabilities refer to Notes 5 13 and 30 of this document.* Included in the current year's profit and loss
Included in the current year's profit and loss
project
Reporting Item amount of money
Interest on lease liabilities cost of financing 63824.48
* Cash flow outflows related to leasing
1project Cash Flow Category This year's amount
Cash paid to repay the principal and interest of lease Cash outflow from financing
1287438.87
liabilities activities
(2) The Company acts as the lessor
* Information related to operating leases
A. Items included in the current year's profit and loss
Included in the current year's profit and
project loss
Reporting Item amount of money
Lease Income operating receipt 5356090.30
VI. R&D Expenses
1. Cost-based R&D expenditures
project Amount for this period Previous period amount
employee compensation 23367004.89 28521143.99
travel expense 1070452.09 1211814.77
Depreciation and Amortization 888456.28 942670.55
Material Request 775418.71 748668.74
Interim trial fee 1512348.46 1541213.73
design fee 6000.00
other 1595117.28 1879323.46
amount to 29208797.71 34850835.24
VII. Interests in Other Entities
1. Composition of an Enterprise Group
Registered shareholding ratio
Capital Primary Registere （%）
Nature of Method of
Subsidiary Name (ten place of d
Business Acquisition
thousand business Address direct indirect
yuan)
Nanjing Southern
Nanjing Nanjing manufacturing
Telecommunications 5070.00 96.99% 3.01% establish
City City industry
Co. Ltd.
1Registered shareholding ratio
Capital Primary Registere （%）
Nature of Method of
Subsidiary Name (ten place of d
Business Acquisition
thousand business Address direct indirect
yuan)
Nanjing Putian Tianji
Nanjing Nanjing manufacturing
Building Intelligence 2000.00 45.77% establish
City City industry
Co. Ltd.Nanjing Putian Datang Business
Information Electronics Nanjing Nanjing manufacturing combination
1000.0040.00%
Co. Ltd. City City industry under different
controls
2. Reasons for including entities with shareholding ratios not exceeding half in the consolidation
scope
(1) The Company holds a 45.767% voting interest in Nanjing Putian Tianji Building Intelligence Co. Ltd.
with other voting shareholders being relatively dispersed. The Company represents more than half of the board
members of Nanjing Putian Tianji Building Intelligence Co. Ltd. thereby exercising control over the company.This enables the Company to participate in the company's activities enjoy variable returns leverage its control
over the company's returns and ultimately exercise full control over Nanjing Putian Tianji Building Intelligence
Co. Ltd.
(2) The Company holds a 40% equity stake in Nanjing Putian Datang Information Electronics Co. Ltd.
The number of Company members serving on its Board of Directors exceeds half of the total board members
granting the Company authority over the company. The Company is entitled to variable returns by participating
in its relevant activities and can leverage this authority to influence its return amounts thereby exercising
control over Nanjing Putian Datang Information Electronics Co. Ltd.
3. Equity held by minority shareholders of the subsidiary
(1) A significant non-wholly owned subsidiary
Shareholding Profit or loss Dividend
percentage of attributable to distributed to End-of-period
Subsidiary Name minority minority minority balance of minority
shareholders shareholders for shareholders in interest
(%) the period this period
Nanjing Putian Tianji Building
54.238162390.9810846600.0059004393.79
Intelligence Co. Ltd.
1(2) Key financial information of the subsidiary
ending balance
Subsidiary Name circulating non-current non-current Total
Total Assets cash liabilities
assets assets liability Liabilities
Nanjing Putian
Tianji Building
280998601.2932571405.73313570007.02204374209.00204374209.00
Intelligence Co.Ltd.（ continuous ）
Year-end balance
Subsidiary Name non-current non-current Total
circulating assets Total Assets cash liabilities
assets liability Liabilities
Nanjing Putian
Tianji Building
243448430.3532796612.98276245043.33162977636.49162977636.49
Intelligence Co.Ltd.（ continuous ）
Amount for this period Previous period amount
Cash
total Cash total
Subsidiary Flow
operating comprehe Flow from operating net comprehe
Name net margin from
receipt nsive Operating receipt margin nsive
Operating
income Activities income
Activities
Nanjing Putian
Tianji 339404639.09 20374028.68 20374028.68 5677545.92
Building 294056233.62 15051430.91 15051430.91 2515810.36
Intelligence
Co. Ltd.
4. Equity interests in the joint venture or associated enterprise
(1) Consolidated financial information for non-material joint ventures and associated enterprises
End-of-period balance / Year-end balance / Amount
project
Current period amount from the previous period
Nanjing Puzhu Guang Nanjing Puzhu Guang
cooperative enterprise ：
Network Co. Ltd. Network Co. Ltd.
1End-of-period balance / Year-end balance / Amount
project
Current period amount from the previous period
Total book value of investments 10412683.37
The total amounts of the following items are
calculated based on the shareholding ratios:
— net margin -5.77
—Other Comprehensive Income
— total comprehensive income -5.77
VIII. Risks Associated with Financial Instruments
The Company's primary financial instruments include loans receivables and payables among others.Detailed descriptions of these financial instruments are provided in Note 5. The risks associated with these
instruments along with the risk management policies implemented by the Company to mitigate them are
outlined below. The Company's management monitors and manages these risk exposures to ensure they remain
within acceptable limits.The company employs sensitivity analysis techniques to assess the potential impact of reasonable and
possible changes in risk variables on current profits or equity. Since risk variables rarely change independently
and the interrelationships among variables significantly influence the ultimate effect of changes in any given
variable the following analysis assumes that each variable's change occurs independently.
1. Risk Management Objectives and Policies
The objective of our company's risk management is to achieve an appropriate balance between risk and
return minimize the negative impact of risks on our operating performance and maximize the interests of
shareholders and other equity investors. In line with this objective our fundamental risk management strategy
involves identifying and analyzing the various risks we face establishing appropriate risk tolerance thresholds
implementing effective risk management practices and conducting timely and reliable monitoring of these risks
to keep them within defined limits.
(1) Market Risk
* exchange risk
Foreign exchange risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuate due to changes in foreign exchange rates. The Company operates in mainland China and its primary
activities are denominated in Renminbi; therefore the foreign exchange rate fluctuation risk assumed by the
Company is not material. The details of the Company's foreign currency monetary assets and liabilities at the
end of the period are provided in the relevant notes to this financial statement.As of December 312025 the Company's major foreign exchange risk exposures for its foreign currency
assets and liabilities are as follows (for reporting purposes the risk exposure amounts are presented in
1Renminbi and converted using the spot exchange rate on the balance sheet date).
31 December 2025
project American dollar Hong Kong currency
foreign currency Renminbi foreign currency Renminbi
Cash and cash
equivalents 30525.13 214555.03 10.33 9.33
31 December 2024
project American dollar Hong Kong currency
foreign currency Renminbi foreign currency Renminbi
Cash and cash
equivalents 30572.51 219693.17 10.33 9.57
* interest rate exposure
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate
due to changes in market interest rates. Fixed-rate interest-bearing financial instruments expose the Company to
fair value interest rate risk while floating-rate interest-bearing financial instruments expose the Company to
cash flow interest rate risk. The Company determines the proportion of fixed-rate to floating-rate financial
instruments based on market conditions and maintains an appropriate portfolio through regular review and
monitoring.
(2) Credit Risk
Credit risk refers to the risk that one party using a financial instrument fails to fulfill its obligations
resulting in financial losses for the other party.
1. Practical Credit Risk Management
(1) Methods for evaluating credit risk
The company assesses whether the credit risk of relevant financial instruments has increased significantly
since initial recognition on each balance sheet date. In determining such a significant increase the company
considers obtaining reasonable and well-founded information without incurring unnecessary additional costs or
effort including qualitative and quantitative analyses based on historical data external credit risk ratings and
forward-looking information. Using individual financial instruments or portfolios of instruments with similar
credit risk characteristics the company compares the risk of default on the balance sheet date with that on the
initial recognition date to determine the change in default risk over the instrument's expected lifetime.The company considers that the credit risk of financial instruments has increased significantly when one or
more of the following quantitative or qualitative criteria are met:
1) The quantitative criterion primarily requires that the default probability for the remaining term at the
1balance sheet date increases by more than a specified percentage compared to the initial recognition date.
2) The qualitative criteria primarily involve significant adverse changes in the debtor's operational or
financial condition or existing or anticipated changes in the technological market economic or legal
environment that would substantially impair the debtor's ability to repay the company's debts;
(2) Definitions of default and assets with incurred credit impairment
When a financial instrument meets one or more of the following conditions the Company shall classify the
financial asset as having defaulted with the criteria aligning with those for recognizing credit impairment:
1) The debtor faces significant financial difficulties;
2) The debtor breaches the binding clauses stipulated in the contract;
3) The debtor is highly likely to go bankrupt or undergo other financial restructuring;
4) The creditor makes concessions to the debtor based on economic or contractual considerations related to
the debtor's financial difficulties—concessions that the debtor would not have made under any other
circumstances.
2. Measurement of Expected Credit Losses
The key parameters for measuring expected credit losses include the default probability default loss ratio
and default risk exposure.
3. The opening and closing balances of the loss provision for financial instruments are detailed in Notes
5.2 5.3 5.4 and 5.6 to this financial statement.
4. Credit risk exposure and credit risk concentration
The company's credit risk primarily stems from monetary funds and accounts receivable. To mitigate these
risks the company has implemented the following measures.
(1) Cash and cash equivalents
Our company deposits bank deposits and other monetary funds with financial institutions that have high
credit ratings resulting in relatively low credit risk.
(2) Accounts Receivable
Our company regularly conducts credit assessments for clients engaging in credit-based transactions.Based on the assessment results we select transactions only with accredited clients with sound credit profiles
and monitor their accounts receivable balances to ensure we avoid significant bad debt risks.As the company's accounts receivable risk is distributed across multiple partners and customers as of
December 31202516.66% of its accounts receivable (compared to 8.17% as of December 312024) originated
1from its top five customers. The company faces no significant credit concentration risk.
The maximum credit risk exposure assumed by our company is the book value of each financial asset on
the balance sheet.
(3) Liquidity Risk
Liquidity risk refers to the risk of insufficient funds when the Company fulfills its obligations settled by
cash or other financial assets. Such risk may arise from an inability to sell financial assets at fair value promptly;
from the counterparty's failure to repay its contractual obligations; from debts maturing ahead of schedule; or
from the failure to generate expected cash flows.To mitigate this risk the Company employs a comprehensive range of financing instruments including bill
settlement and bank loans while strategically combining long-term and short-term financing methods to
optimize its financing structure and maintain a balance between sustainability and flexibility. The Company has
secured credit lines from multiple commercial banks to meet its working capital requirements and capital
expenditures.* Financial liabilities classified by remaining maturity dates
End-of-period amount
project
book value The contract amountnot discounted Within 1 year 1-3 years
More than 3
years
money borrowed for short time 203925721.98 203925721.98 203925721.98
notes payable 6775234.17 6775234.17 6775234.17
debit balance in suppliers’account 273382306.86 273382306.86 273382306.86
accounts payable-others 49032066.18 49032066.18 49032066.18
Non-current liabilities maturing
within one year 70899913.72 70899913.72 70899913.72
subtotal 604015242.91 604015242.91 604015242.91（ continuous ）
Beginning balance
project
book value The contract amount not More than 3discounted Within 1 year 1-3 years years
money borrowed for short time 128127987.75 128127987.75 128127987.75
notes payable
debit balance in suppliers’account 349342179.21 349342179.21 349342179.21
accounts payable-others 41918074.35 41918074.35 41918074.35
Non-current liabilities maturing
within one year 88060659.43 88060659.43 88060659.43
subtotal 617571126.49 617571126.49 617571126.49
* Hedging
1The company has not conducted any hedging activities.
* Transfer of financial assets
1. Classification of Transfer Methods
transition Nature of the transferred Transferred Termination
way financial asset finances Confirmation
The criteria for determining the
Asset Amount The situation termination of a confirmation
Endorsement of a Bank Acceptance Bill 25105495.20 Termination It has transferred almost all of its risksBill Confirmation and rewards.
2. Financial assets derecognized due to transfer
Amount of financial assets
Types of Financial Assets Transfer Method whose recognition has been Gains and losses related to the
terminated termination of recognition
receivables financing Endorsement Transfer 25105495.20
IX. Disclosure of Fair Value
1. The fair value of assets and liabilities measured at fair value at the end of the period
End-of-period fair value
First-level Second-level Third-level fair
project
fair value fair value value amount to
measurement measurement measurement
I. Continuous Fair Value
Measurement
(I) Investments in Other Equity
741953.00741953.00
Instruments
Total assets continuously
measured at fair value 741953.00 741953.00
II. Non-sustained fair value
measurement
(I) Receivables Financing 27655375.14 27655375.14
Total assets not measured at fair
value on a continuous basis 27655375.14 27655375.14
2. For continuous and non-continuous third-level fair value measurement items the valuation
techniques employed and the qualitative and quantitative information on key parameters shall be
specified.
(1) For receivables financing held the fair value shall be determined based on the face value;
(2) For other equity instrument investments held in Nanjing Yuhua Electroplating Factory and Hangzhou
Hongyan Electric Appliance Co. Ltd. since no significant changes have occurred in the operating environment
business performance or financial condition of the investee enterprises the company measures these
1investments at their cost as a reasonable estimate of fair value.
(3) For its other equity instrument investments in Beijing Likang General Information Equipment Co. Ltd.
the company has measured the investments at zero yuan as a reasonable estimate of fair value due to the
deterioration in the operating environment business performance and financial condition of the investee.X. Related Parties and Related Transactions
1. Information about the company's parent company
The parent The voting
company's rights
Nature of registered shareholding proportion (%)
Parent Company Name Registered Address
Business capital percentage in of the parent
our company company in our
(%) company
No.359 Jiangdong
Electronic
China Electric Guorui Middle Road 1000000000.0
Equipment 53.49% 53.49%
Group Co. Ltd. Jianye District 0
Manufacturing
Nanjing City
The ultimate controlling party is China Electronics Technology Group Corporation.
2. Information on the Company's Subsidiaries
For details refer to Note 7 Section 1: Composition of the Enterprise Group.
3. Information on the Company's Joint Ventures and Associated Enterprises
For details of the Company's significant joint ventures and associated enterprises please refer to Note 7
Section 4: Equity Interests in Joint Ventures or Associated Enterprises.
4. Information on Other Related Parties
Other related party names Relationships between other relatedparties and the Company
China Far East International Tendering Co. Ltd. The same ultimate controlling party
China Putian Information Industry Group Co. Ltd. The same ultimate controlling party
China Putian Information Industry Co. Ltd. The same ultimate controlling party
The 55th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
The 54th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
The 48th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
The 14th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
The 28th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
1Other related party names Relationships between other relatedparties and the Company
China Electric Rice Information Systems Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Taili
Communication Technology Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Digital
Technology Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Financial
Leasing Co. Ltd. The same ultimate controlling party
China Electric Science Popularization Technology Co. Ltd. The same ultimate controlling party
China Electronics Technology (Nanjing) Electronic
Information Development Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Metrology
Testing and Certification (Beijing) Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Metrology
Testing and Certification (Beijing) Co. Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation (Beijing)
Network Information Security Co. Ltd. The same ultimate controlling party
Tianjin Putian Innovation and Entrepreneurship Technology
Co. Ltd. The same ultimate controlling party
Tianbo Electronic Information Technology Co. Ltd. The same ultimate controlling party
Taiji Computer Co. Ltd. The same ultimate controlling party
Sichuang Electronics Co. Ltd. The same ultimate controlling party
Shanghai Post and Telecommunications Equipment Co. Ltd. The same ultimate controlling party
Shanghai Putian Youtong Technology Co. Ltd. The same ultimate controlling party
Putian Information Technology Co. Ltd. (Headquarters) The same ultimate controlling party
Putian Information Technology Co. Ltd. The same ultimate controlling party
Putian Information Engineering Design Service Co. Ltd. The same ultimate controlling party
Putian Communication Co. Ltd. The same ultimate controlling party
Putian Kechuang Industrial Co. Ltd. The same ultimate controlling party
Putian Rail Transit Technology (Shanghai) Co. Ltd. The same ultimate controlling party
Putian High-Tech Industrial Co. Ltd. The same ultimate controlling party
Nanjing Putian Information Technology Co. Ltd. The same ultimate controlling party
Nanjing Putian Technology Co. Ltd. The same ultimate controlling party
Nanjing Putian Hongyan Electric Appliance Technology Co.Ltd. The same ultimate controlling party
Nanjing Nanman Electric Co. Ltd. The same ultimate controlling party
Nanjing Meichen Microelectronics Co. Ltd. The same ultimate controlling party
Nanjing Luopu Technology Co. Ltd. The same ultimate controlling party
Nanjing Luopu Co. Ltd. The same ultimate controlling party
Nanjing LaiSi Information Technology Co. Ltd. The same ultimate controlling party
Nanjing LaiSi Electronic Equipment Co. Ltd. The same ultimate controlling party
Nanjing Hikvision Digital Technology Co. Ltd. The same ultimate controlling party
Nanjing Guorui Xinwei Software Co. Ltd. The same ultimate controlling party
Nanjing Guorui Defense Systems Co. Ltd. The same ultimate controlling party
Nanjing Urban Rail Transit System Engineering Co. Ltd. The same ultimate controlling party
Liyang 28th System Equipment Co. Ltd. The same ultimate controlling party
The 15th Research Institute of China Electronics Technology
Group Corporation The same ultimate controlling party
Hebei Yuandong Communication System Engineering Co.Ltd. The same ultimate controlling party
1Other related party names Relationships between other relatedparties and the Company
Hangzhou Hongyan Electric Power and Electrical Co. Ltd. The same ultimate controlling party
Hangzhou Hikvision Digital Technology Co. Ltd. Nanjing
Branch The same ultimate controlling party
Hangzhou Hikvision Digital Technology Co. Ltd. Beijing
Branch The same ultimate controlling party
Hangzhou Hikvision Technology Co. Ltd. The same ultimate controlling party
Guorui Technology Co. Ltd. The same ultimate controlling party
Dongfang Communication Co. Ltd. The same ultimate controlling party
Dianke Cloud (Beijing) Technology Co. Ltd. The same ultimate controlling party
Beijing Shouxin Co. Ltd. The same ultimate controlling party
Beijing Likang General Communication Equipment Co. Ltd. The same ultimate controlling party
Beijing Aotewei Technology Co. Ltd. The same ultimate controlling party
Nanjing Enrui Te Industrial Co. Ltd. The same ultimate controlling party
5. Related Party Transactions
(1) Related-party transactions involving the purchase and sale of goods or the provision and receipt of
services
* Status of purchased goods/accepted services
Related Party Amount for Previous period
affiliated party Transaction Details this period amount
Telecommunications
Nanjing Nanman Electric Co. Ltd. 1528203.48
products
China Electronics Technology (Nanjing) Electronic Telecommunications
359967.6610140880.54
Information Development Co. Ltd. products
North China Institute of Computing Technology
Telecommunications
(The 15th Research Institute of China Electronics 106155.75
products
Technology Group Corporation)
Nanjing Putian Hongyan Electric Appliance Telecommunications
1653.10239709.77
Technology Co. Ltd. products
Hangzhou Hikvision Digital Technology Co. Ltd. Telecommunications
1199.12
Beijing Branch products
Telecommunications
Nanjing Hikvision Digital Technology Co. Ltd. 175221.24
products
China Electronics Technology Group Corporation Telecommunications
33018.87
(Beijing) Network Information Security Co. Ltd. products
Telecommunications
Hangzhou Hikvision Technology Co. Ltd. 2463.72
products
1Status of goods sold/labor services provided
Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
The 14th Research Institute of China Electronics Telecommunicati 17199883.01
19227915.25
Technology Group Corporation ons products
Telecommunicati 7657210.21
Nanjing Luopu Co. Ltd. 6906815.92
ons products
Telecommunicati
Taiji Computer Co. Ltd. 7823909.31
ons products
Telecommunicati 5864967.64
Nanjing LaiSi Information Technology Co. Ltd. 5213666.44
ons products
The 28th Research Institute of China Electronics Telecommunicati 6000191.37
4876533.80
Technology Group Corporation ons products
Telecommunicati 364908.62
Nanjing Guorui Defense Systems Co. Ltd. 2646933.52
ons products
Telecommunicati
Dianke Cloud (Beijing) Technology Co. Ltd. 2411247.78
ons products
Tianbo Electronic Information Technology Co. Telecommunicati 7485748.80
839415.90
Ltd. ons products
Telecommunicati
Beijing Aotewei Technology Co. Ltd. 795734.51
ons products
Nanjing Urban Rail Transit System Engineering Telecommunicati 365128.87
690285.84
Co. Ltd. ons products
Hebei Yuandong Communication System Telecommunicati 1593214.12
654817.69
Engineering Co. Ltd. ons products
Putian Rail Transit Technology (Shanghai) Co. Telecommunicati 38547.78
585208.89
Ltd. ons products
China Electric Science Popularization Telecommunicati 10517699.10
516767.60
Technology Co. Ltd. ons products
The 54th Research Institute of China Electronics Telecommunicati
441915.04
Technology Group Corporation ons products
China Electronics Technology Group Telecommunicati 279867.26
272644.17
Corporation Digital Technology Co. Ltd. ons products
Nanjing Nanman Electric Co. Ltd. Telecommunicati 218864.34
1Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
ons products
China Electronics Technology Group Telecommunicati
Corporation Metrology Testing and Certification ons products 216162.42
(Beijing) Co. Ltd.
Telecommunicati 862006.88
Nanjing Luopu Technology Co. Ltd. 166845.57
ons products
Telecommunicati 3174272.98
Guorui Technology Co. Ltd. 139432.18
ons products
The 55th Research Institute of China Electronics Telecommunicati
70796.46
Technology Group Corporation ons products
Telecommunicati
Sichuang Electronics Co. Ltd. 63716.82
ons products
Telecommunicati 154098.76
Dongfang Communication Co. Ltd. 45575.20
ons products
Telecommunicati 14026.56
Nanjing LaiSi Electronic Equipment Co. Ltd. 22455.75
ons products
Nanjing Enrui Te Industrial Co. Ltd. Telecommunicati 13524.59
ons products
Tianjin Putian Innovation and Entrepreneurship Telecommunicati
10619.46
Technology Co. Ltd. ons products
China Electronics Technology (Nanjing) Telecommunicati
2654.86
Electronic Information Development Co. Ltd. ons products
Nanjing Guorui Xinwei Software Co. Ltd. Telecommunicati 1242354.90
ons products
Nanjing Meichen Microelectronics Co. Ltd. Telecommunicati 696867.27
ons products
Hangzhou Hongyan Electric Power and Electrical Telecommunicati 296681.42
Co. Ltd. ons products
Putian Kechuang Industrial Co. Ltd. Telecommunicati 65929.22
ons products
Putian Kechuang Industrial Co. Ltd. Telecommunicati 43628.32
ons products
1Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
The 48th Research Institute of China Electronics Telecommunicati 43504.03
Technology Group Corporation ons products
China Electric Rice Information Systems Co. Telecommunicati 460.18
Ltd. ons products
(2) Related leasing arrangements
* Our company acts as the lessor
Types of leased Lease income Lease income
Leaseholder Name recognized in this recognized in the
assets period previous period
The 14th Research Institute of China
House and Property
Electronics Technology Group 1754162.79 1824804.99
Income
Corporation
House and Property
Nanjing Luopu Co. Ltd. 395238.10 395238.10
Income
China Electronics Technology Group
House and Property
Corporation Metrology Testing and 194400.00 194400.00
Income
Certification (Beijing) Co. Ltd.* Our company as the lessee
Simplified calculation of Interest expense on
rental expenses for short- The rent paid leased liabilities Increased assets of
term leases incurred usage rightsType
s of Cur
Landlord lease ren
Name d Current Previous Previous Previous t Previous
asset period period
Current period Current
occurrence period occurrence period
period per period
s amount amount amount occurrenc iod occurrenceamount amount e amount am amount
oun
t
Putian High-
Tech buildi
Industrial Co. ngs 642292.73 1036279.73
Ltd.China
Electronics
Technology mach
Group inery
Corporation equip 1137438.87 853843.45 63824.48 79729.23 2686684.00
Financial ment
Leasing Co.Ltd.Beijing
Shouxin Co. buildings 1034448.46 889651.45Ltd.
(3) Guarantee from an affiliated party
Our company is the guaranteed party.
1Guarantor amount Guarantee Start Guarantee Maturity Has the guarantee been fullyguaranteed Date Date fulfilled
China Electric Guorui Group
Co. Ltd. 55000000.00 3 April 2023 2 April 2026 yes
China Electric Guorui Group
Co. Ltd. 15000000.00 25 June 2023 24 June 2026 yes
Note: The Company repaid the loan on March 172026 and as of the reporting date the aforementioned
guarantees have been fully fulfilled.
(4) Loans to related parties and interest expenses
affiliated party Related Party Current period amount /
Previous period occurrence
Transaction Details End-of-period balance amount/period openingbalance
China Putian Information Industry Co. Ltd. Principal amount ofentrusted loan 86800000.00
China Putian Information Industry Co. Ltd. Debt loan interest 3505635.00 4354177.50
China Electronic Technology Finance Co.Ltd. Loan principal 70000000.00 70000000.00
China Electronic Technology Finance Co.Ltd. cost of money 2446430.56 2696708.34
China Electronics Technology Group
Corporation Financial Leasing Co. Ltd. Other interest 63824.48 79729.23
China Electric Guorui Group Co. Ltd. Principal amount ofentrusted loan 66800000.00
China Electric Guorui Group Co. Ltd. Debt loan interest 33567.00
(5) Funds deposited with China Electronic Technology Finance Co. Ltd. and interest income for the
current period
project Amount for this period Previous period amount
Deposited with a financial company 172779922.93 287204290.64
Interest income for this period 373400.64 59651.77
(6) Compensation for Key Management Personnel
project Amount for this period Previous period amount
Remuneration for Key Management Personnel 3281506.00 3220349.00
6. Receivables and payables from related parties
(1) Accounts Receivable Items
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
accounts receivable ：
The 28th Research Institute of
China Electronics Technology 15663961.54 399668.76 13445649.66 205355.90
Group Corporation
Nanjing LaiSi Information 14814554.61 823900.28 14023177.32 436062.33
1ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Technology Co. Ltd.The 14th Research Institute of
China Electronics Technology 12947983.94 129479.84 18560060.00 185600.60
Group Corporation
Shanghai Putian Youtong
8755534.008755534.008755534.008755534.00
Technology Co. Ltd.Taiji Computer Co. Ltd. 8204723.11 82047.28 2796.40 279.64
Hebei Yuandong Communication
5976731.85744627.336212960.25320772.80
System Engineering Co. Ltd.China Electric Science
Popularization Technology Co. 5414212.80 336471.28 8231212.80 174760.64
Ltd.Putian Information Technology
5983345.585983345.586065598.366065598.36
Co. Ltd.Putian Communication Co. Ltd. 4317924.00 4317924.00 4317924.00 3729909.00
Nanjing Luopu Co. Ltd. 4238987.48 42389.87 178712.22 1787.12
Nanjing Guorui Defense Systems
3346725.5847694.881463890.9956700.68
Co. Ltd.China Putian Information Industry
3222253.453103328.363222253.452982001.65
Co. Ltd.Dianke Cloud (Beijing)
2576051.0025760.51
Technology Co. Ltd.Tianbo Electronic Information
1700864.5646842.634856897.2548568.97
Technology Co. Ltd.Nanjing Urban Rail Transit
993349.9441446.64213326.9414519.47
System Engineering Co. Ltd.The 54th Research Institute of
China Electronics Technology 499364.00 4993.64
Group Corporation
Shanghai Post and
403366.29403366.29
Telecommunications Equipment
1ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Co. Ltd.China Electronics Technology
Group Corporation Digital 253022.35 2530.27
Technology Co. Ltd.Nanjing Nanman Electric Co. Ltd. 178506.17 2350.78 105299.54 1053.00
Putian Rail Transit Technology
146772.001467.7753722.95943.79
(Shanghai) Co. Ltd.Sichuang Electronics Co. Ltd. 143812.88 60045.38 135557.43 133377.18
Guorui Technology Co. Ltd. 109957.83 1387.58 2404882.65 24048.83
Nanjing Meichen Microelectronics
101460.005073.00787460.007874.60
Co. Ltd.Nanjing Luopu Technology Co.
82071.00820.76292591.002925.91
Ltd.The 55th Research Institute of
China Electronics Technology 80000.00 800.00
Group Corporation
Nanjing Guorui Xinwei Software
40625.012031.253130411.82102353.92
Co. Ltd.China Electronics Technology
(Nanjing) Electronic Information 12000.00 1200.00 12000.00 600.00
Development Co. Ltd.China Electronics Technology
Group Corporation Metrology
1866.6718.67
Testing and Certification (Beijing)
Co. Ltd.Liyang 28th System Equipment
29700.001485.00
Co. Ltd.Dongfang Communication Co.
23162.98231.63
Ltd.China Electronics Technology
7400.0074.00
Group Corporation Taili
1ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Communication Technology Co.Ltd.China Electric Rice Information
520.005.20
Systems Co. Ltd.amount to 100210027.64 25366546.63 96532702.01 23252424.22
bill receivable ：
The 28th Research Institute of
China Electronics Technology 3259620.00 162981.00
Group Corporation
Nanjing Guorui Xinwei Software
3089786.81213978.68
Co. Ltd.China Electric Science
Popularization Technology Co. 747000.00
Ltd.Nanjing Meichen Microelectronics
686000.0034300.00
Co. Ltd.amount to 7782406.81 411259.68
advance payment ：
Hangzhou Hikvision Technology
34875.00
Co. Ltd.amount to 34875.00
accounts receivable-other ：
Nanjing Putian Technology Co.
1784619.721784619.721784619.721784619.72
Ltd.Putian Information Technology
367800.00367800.00367800.00367800.00
Co. Ltd.Beijing Shouxin Co. Ltd. 84900.52 4245.03
China Far East International
44782.142239.11
Tendering Co. Ltd.The 14th Research Institute of
29000.001450.00
China Electronics Technology
1ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Group Corporation
Putian Information Engineering
24000.001200.00
Design Service Co. Ltd.China Putian Information Industry
1000.001000.001000.001000.00
Co. Ltd.Beijing Likang General 28912122.71 28912122.71 28912122.71
Communication Equipment Co. 28912122.71
Ltd.Hangzhou Hikvision Technology 22630.00 22630.00
22630.0022630.00
Co. Ltd.Hangzhou Hikvision Digital
Technology Co. Ltd. Nanjing 2766.00 2766.00 2766.00 2766.00
Branch
amount to 31273621.09 31100072.57 31090938.43 31090938.43
(2) Accounts Payable Items
project name ending balance Year-end balance
debit balance in suppliers’account ：
China Putian Information Industry Co. Ltd. 14918045.42 14918045.42
China Electronics Technology (Nanjing)
4932081.606882850.00
Electronic Information Development Co. Ltd.Nanjing Nanman Electric Co. Ltd. 3030412.33 2530091.68
Nanjing Putian Hongyan Electric Appliance
195824.09
Technology Co. Ltd.Putian High-Tech Industrial Co. Ltd. 25000.00 25000.00
amount to 23101363.44 24355987.10
accounts payable-others ：
China Putian Information Industry Group Co.
9591612.509591612.50
Ltd.Putian High-Tech Industrial Co. Ltd. 1442202.94 1814696.94
Nanjing Putian Information Technology Co. 2467412.69
2467412.69
Ltd.
1project name ending balance Year-end balance
Putian Communication Co. Ltd. 200000.00
amount to 13501228.13 14073722.13
Contract Liability:
China Putian Information Industry Co. Ltd. 3727418.22 3727418.22
China Putian Information Industry Group Co. 11716.35
Ltd.amount to 3739134.57 3727418.22
XI. Commitments and Contingent Matters
1. Major Commitment Matters
As of December 312025 the Company has no material commitments requiring disclosure.
2. Contingent Matters
On March 19 2026 our company signed a loan contract with the Nanjing Military Administration Branch
of Industrial and Commercial Bank of China Ltd. borrowing 70 million yuan. The loan period is from March
19 2026 to January 1 2029. This loan is secured by the industrial plant and research and development building
of our company and at the same time a pledge is set on 40.70% equity (corresponding to the capital
contribution of 20.6349 million yuan) of our subsidiary Nanjing Nanfang Telecommunication Co. Ltd. and
19.21% equity (corresponding to the capital contribution of 3.842 million yuan) of our subsidiary Nanjing
Putian Tianji Building Intelligence Co. Ltd.The loan funds were fully received on March 27 2026 and the company used the funds on the same day to
repay the long-term loan of 70 million yuan from China Electronics Technology Finance Co. Ltd.As of the reporting date there are no other post-balance sheet events that should be disclosed.XII. Events Occurring After the Balance Sheet Date
On March 192026 the Company entered into a loan agreement with the Nanjing Military Administration
Branch of Industrial and Commercial Bank of China Limited for a loan amount of RMB 70.00 million with the
loan term running from March 192026 to January 1 2029. The loan was secured by a mortgage on the
Company's industrial plant and R&D building and by pledges representing 40.70% equity in its subsidiary
Nanjing Southern Telecommunications Co. Ltd. (corresponding to an investment of RMB 20.6349 million) and
19.21% equity in its subsidiary Nanjing Putian Tianji Building Intelligence Co. Ltd. (corresponding to an
investment of RMB 3.8420 million).
1The aforementioned loan funds were fully received on March 272026 and the company used these funds
specifically on the same day to repay the long-term loan of RMB 70 million from China Electronic Technology
Finance Co. Ltd.The aforementioned matters are non-adjustable events occurring after the balance sheet date and do not
affect the financial position or operating results as of that date. This significant financing and debt restructuring
transaction has a substantial impact on the company's future financial condition and debt repayment
arrangements; therefore it is disclosed.XIII. Other Important Matters
(I) Branch Report
1. Basis for Determining Sub-Report and Accounting Policies
The company determines its reporting divisions based on its internal organizational structure management
requirements and internal reporting systems with product divisions serving as the fundamental basis.Performance evaluations are conducted separately for video conferencing products integrated wiring products
distribution wiring products and other business segments. Assets and liabilities shared among the divisions are
allocated proportionally according to their respective scales.The company determines its reporting segments based on product segments. The assets and liabilities of
each segment represent the actual amounts utilized while the main business revenue and costs correspond to
those of each respective product segment.
2. Financial Information in the Branch Report
video Integrated Communication
project conferencing Cabling basic products Inter-branch
product product and others offset
I. Operating Revenue 268214493.37 294056233.62 58699666.27 -3330908.30
II. Operating Costs 213171492.80 234606345.38 42333131.57 -2590572.80
III. Investment Returns from Joint Ventures and
Cooperative Enterprises 7389042.29
IV. Credit Impairment Loss -1185514.08 -716953.54 -5076651.34
V. Asset Impairment Loss -106579.56 -2131109.47
VI. Depreciation and Amortization Expenses 277013.39 2495369.38 5531588.07 310939.20
VII. Total Profit 3398114.22 15994494.86 -9346093.51 -9596339.20
VIII. Income Tax Expenses 415356.55 943063.95
IX. Net Profit 2982757.67 15051430.91 -9346093.51 -9596339.20
X. Total Assets 313824081.88 313570007.02 273927700.50 -171398192.43
XI. Total Liabilities 196000185.60 204374209.00 373483600.62 -131536544.28
(II) Others
The Company has pledged the equity stake of 56.28% in Nanjing Southern Telecommunications Co. Ltd.corresponding to an investment amount of RMB 28.534 million to China Electronics Guorui Group Co. Ltd.
1(hereinafter referred to as the Parent Company) for its use in entrusting a financial company to disburse a loan
to the Company. The Parent Company provided a guarantee for the Company's loan from China Electronics
Technology Finance Co. Ltd. In return the Company pledged the equity stake of 40% in its subsidiary Nanjing
Putian Tianji Building Intelligence Co. Ltd. corresponding to an investment amount of RMB 8 million to the
Parent Company. Additionally the Company pledged the equity stake of 40% in its subsidiary Nanjing Putian
Datang Information Electronics Co. Ltd. corresponding to an investment amount of RMB 4 million to China
Electronics Finance Leasing Co. Ltd. for the purpose of securing a financial leasing transaction with the latter.The aforementioned equity stakes in the subsidiaries remain subject to transfer restrictions until the pledges are
lifted.XIV. Notes to Key Items in the Parent Company's Financial Statements
1. Accounts Receivable
(1) Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 26145588.39 47287939.57
1 to 2 years 18892822.21 15482294.57
2 to 3 years 9775010.59 12282655.94
3 to 4 years 8213599.93 7085367.49
4 to 5 years 4739444.66 9950515.07
More than 5 years 164589421.40 156866329.69
subtotal 232355887.18 248955102.33
Less: Bad debt provision 171443995.15 168397267.69
amount to 60911892.03 80557834.64
(2) Classified presentation according to the bad debt provisioning method
ending balance
book balance bad debt provision
class
Percentage Proportion book value
amount of money amount of money
(%)(%)
accounts receivable for
which bad debt
74517573.1832.0774517573.18100.00
provisions are made on a
per-item basis
Accounts receivable for
157838314.0067.9396926421.9761.4160911892.03
which bad debt
1ending balance
book balance bad debt provision
class
Percentage Proportion book value
amount of money amount of money
(%)(%)
provisions are made on a
combined basis
among ：
combination 1: Age of
150935016.5964.9696926421.9764.2254008594.62
Account Combination
Combination 2: Related
6903297.412.976903297.41
Parties Combination
amount to 232355887.18 —— 171443995.15 —— 60911892.03（ continuous ）
Year-end balance
book balance bad debt provision
class
Percentage book value
amount of money amount of money Proportion (%)
(%)
accounts receivable
for which bad debt
74588880.7929.9674588880.79100.00
provisions are made
on a per-item basis
Accounts receivable
for which bad debt
174366221.5470.0493808386.9053.8080557834.64
provisions are made
on a combined basis
among ：
combination 1: Age of
169715844.5468.1793808386.9055.2775907457.64
Account Combination
Combination 2:
Related Parties 4650377.00 1.87 4650377.00
Combination
amount to 248955102.33 —— 168397267.69 —— 80557834.64
* Accounts receivable for which a separate bad debt provision is made at the end of the period
1ending balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
The recovery process
Dongpo Xi Laos Co. Ltd. 19708086.54 19708086.54 100.00
carries risks.The recovery process
Xu Mou 17591683.74 17591683.74 100.00
carries risks.The recovery process
China Tower Co. Ltd. 13819926.92 13819926.92 100.00
carries risks.The recovery process
Putian Information Technology Co. Ltd. 4450269.30 4450269.30 100.00
carries risks.China Railway Communication and
The recovery process
Signal Shanghai Engineering Group Co. 3527803.35 3527803.35 100.00
carries risks.Ltd.The recovery process
other 15419803.33 15419803.33 100.00
carries risks.amount to 74517573.18 74517573.18 100.00 ——
Continue the table above
Year-end balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
The recovery process
Dongpo Xi Laos Co. Ltd. 19708086.54 19708086.54 100.00
carries risks.The recovery process
Xu Mou 17591683.74 17591683.74 100.00
carries risks.The recovery process
China Tower Co. Ltd. 13819926.92 13819926.92 100.00
carries risks.The recovery process
Putian Information Technology Co. Ltd. 4514800.91 4514800.91 100.00
carries risks.China Railway Communication and Signal The recovery process
3534579.353534579.35100.00
Shanghai Engineering Group Co. Ltd. carries risks.other 15419803.33 15419803.33 100.00 The recovery process
1Year-end balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
carries risks.amount to 74588880.79 74588880.79 100.00 ——
* Accounts receivable for which bad debt provisions are calculated based on the aging group within the
combination
ending balance
project
book balance bad debt provision Proportion (%)
Within 1 year 22375531.98 223755.32 1.00
1 to 2 years 15759581.21 787979.06 5.00
2 to 3 years 9775010.59 977501.06 10.00
3 to 4 years 8193369.93 2458010.98 30.00
4 to 5 years 4704694.66 2352347.33 50.00
More than 5 years 90126828.22 90126828.22 100.00
amount to 150935016.59 96926421.97 64.22（ continuous ）
Year-end balance
project
book balance bad debt provision Proportion (%)
Within 1 year 42637562.57 426375.63 1.00
1 to 2 years 15482294.57 774114.73 5.00
2 to 3 years 12262425.94 1226242.59 10.00
3 to 4 years 7050617.49 2115185.25 30.00
4 to 5 years 6032950.54 3016475.27 50.00
More than 5 years 86249993.43 86249993.43 100.00
amount to 169715844.54 93808386.90 55.27
(3) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Accruishment
93808386.903118035.0796926421.97
based on the
1Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
aging of
accounts
receivable
Individual
74588880.7971307.6174517573.18
Provisioning
amount to 168397267.69 3118035.07 71307.61 171443995.15
Among these: The amount of bad debt provisions recovered or reversed in this period is significant.Amount to be recovered or
name of organization Recovery Method
reversed
Putian Information Technology Co. Ltd. 64531.61 Recovered Amount
China Railway Communication and Signal 6776.00
Recovered Amount
Shanghai Engineering Group Co. Ltd.amount to 71307.61 ——
(4) Details of the top five accounts receivable by the debtor's end-of-period balances
End-of-period Proportion (%) of the End-of-period
Debtor's Name balance of accounts total ending balance of balance of bad debt
receivable accounts receivable provisions
Dongpo Xi Laos Co. Ltd. 19708086.54 8.48 19708086.54
Xu Mou 17591683.74 7.57 17591683.74
The 14th Research Institute
of China Electronics
Technology Group 12375549.04 5.33 123755.49
Corporation
China Tower Co. Ltd. 13819926.92 5.95 13819926.92
Shanghai Putian Youtong
Technology Co. Ltd. 8755534.00 3.77 8755534.00
amount to 72250780.24 31.10 59998986.69
2. Other Receivables
project ending balance Year-end balance
dividends receivable 28685400.00 19400000.00
accounts receivable-other 1805885.66 3494075.34
amount to 30491285.66 22894075.34
(1) Dividends receivable
1* Dividend receivable status
Project (or the invested entity) ending balance Year-end balance
Subsidiary dividend 28685400.00 19400000.00
(2) Other Receivables
* Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 886060.97 944116.13
1 to 2 years 584157.05 424567.94
2 to 3 years 416076.27 2330596.37
3 to 4 years 2329596.37 1004927.14
4 to 5 years 3395274.79 1252104.78
More than 5 years 37528845.74 39110865.61
subtotal 45140011.19 45067177.97
Less: Bad debt provision 43334125.53 41573102.63
amount to 1805885.66 3494075.34
* Classification by nature of funds
Book balance at the end
Nature of the Fund End-of-period book balance
of the previous year
Accounts Receivable and Payables 40613763.14 39807462.57
Deposit Guarantee Fund 3702805.50 4391570.77
Business travel petty cash fund 31492.59 32492.59
other 791949.96 835652.04
subtotal 45140011.19 45067177.97
Less: Bad debt provision 43334125.53 41573102.63
amount to 1805885.66 3494075.34
* Provision for bad debts
stage Ⅰ stage Ⅱ phase III
Expected credit
losses throughout Expected credit
Expected credit the entire losses throughoutbad debt provision
losses over the duration (where the entire duration
amount to
next 12 months no credit (incorporating
impairment has already occurred
occurred) credit impairment)
Year-end balance 10595007.73 30978094.90 41573102.63
This period's accrual 1761022.90 1761022.90
1stage Ⅰ stage Ⅱ phase III
Expected credit
losses throughout Expected creditlosses throughout
bad debt provision Expected credit the entire amount to
losses over the duration (where the entire duration
next 12 months no credit (incorporating
impairment has already occurred
occurred) credit impairment)
ending balance 12356030.63 30978094.90 43334125.53
* Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Age of Debt 10595007.73 1761022.90 12356030.63
Provision
Individual 30978094.90 30978094.90
Provisioning
amount to 41573102.63 1761022.90 43334125.53
* Details of the top five other receivables by the debtor's accumulated ending balances
Proportion (%) of
bad debt
name of Nature of the total ending
ending balance Account Age provision
organization the Fund balance of other
ending balance
receivables
Beijing Likang
Accounts
General
Receivable
Communication 28912122.71 More than 5 years 64.05 28912122.71
and
Equipment Co.Payables
Ltd.
2–3 years:
Accounts
Nanjing Putian 21306.39; 4–5
Receivable
Technology Co. 1784619.72 years: 504197.5; 3.95 1784619.72
and
Ltd. over 5 years:
Payables
1259115.83
Nanjing Putian Accounts
Communication Receivable 805545.63 More than 5 years 1.78 805545.63
Industrial Co. and
1Proportion (%) of
bad debt
name of Nature of the total ending
ending balance Account Age provision
organization the Fund balance of other
ending balance
receivables
Ltd. Payables
Nanjing Putian Accounts
Tianji Building Receivable
476928.72 Within 1 year 1.06
Intelligence Co. and
Ltd. Payables
Nanjing
Municipal Office
for the
Management of Deposit
Wage Guarantee Guarantee 400000.00 More than 5 years 0.89 400000.00
Funds for Fund
Migrant Workers
in Construction
Enterprises
amount to —— 32379216.78 —— 71.73 31902288.06
3. Long-term equity investment
(1) Classification of Long-term Equity Investments
ending balance Year-end balance
project
book balance ImpairmentProvision book value book balance
Impairment
Provision book value
Investment
in a 43226458.52 1294510.00 41931948.52 43226458.52 1294510.00 41931948.52
subsidiary
Investment
in joint
ventures
10412683.3710412683.37
and
cooperative
enterprises
amount to 43226458.52 1294510.00 41931948.52 53639141.89 1294510.00 52344631.89
(2) Investment in subsidiaries
1An
Redu impairmen
Add End-of-period
ce in t provision
Year-end to balance of
Invested entity this ending balance has been
balance this impairment
perio recognize
issue provision
d d for this
period.Nanjing Putian
Tianji Building
3320003.453320003.45
Intelligence Co.Ltd.Nanjing Southern
Telecommunicatio 33175148.00 33175148.00
ns Co. Ltd.Nanjing Putian
Datang
Information 5436797.07 5436797.07
Electronics Co.Ltd.Nanjing Putian
Communication
1294510.001294510.001294510.00
Technology Co.Ltd.amount to 43226458.52 43226458.52 1294510.00
(3) Investment in joint ventures and cooperative enterprises
Changes in this period
Investment
Other
gains and
additi Compreh
losses Other
Invested entity Year-end balance onal ensive
disinvestment recognized changes in
invest Income
under the equity
ment Adjustm
equity
ents
method
I. Joint Venture
1Changes in this period
Investment
Other
gains and
additi Compreh
losses Other
Invested entity Year-end balance onal ensive
disinvestment recognized changes in
invest Income
under the equity
ment Adjustm
equity
ents
method
Enterprise
Nanjing Puzhu
Guang Network Co. 10412683.37 10412571.93 -111.44
Ltd.amount to 10412683.37 10412571.93 -111.44（ continuous ）
Changes in this period
End-of-period
Announcement
Make an balance of
Invested entity of cash dividend ending balance
impairment other impairment
or profit
provision provision
distribution
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co.Ltd.amount to
4. Operating Revenue Operating Cost
Amount for this period Previous period amount
project
income prime cost income prime cost
main business 27485458.90 22537378.95 52233048.58 48797119.68
Other Businesses 4298993.26 533440.19 3222939.20 34374.12
amount to 31784452.16 23070819.14 55455987.78 48831493.80
(2) Income and Cost Breakdown Information
Income Category Amount for this period Previous period amount
1income prime cost income prime cost
Classified by business
type
communications 29242844.06 22569900.97 53039727.38 48831493.80
industry
Classification by sales
channel
Direct Sale 29242844.06 22569900.97 53039727.38 48831493.80
(3) Description of Performance Obligations
The nature of the The amount The type of quality
Fulfill goods for which Are you the
project performance Important payment the company primary
expected to be assurance provided
obligations terms undertakes to responsible
refunded to the by the company and
transfer party customer by the the corresponding
ownership company obligations
Customer Make installment
Sell video acceptance payments
conferencing project or according to the
Video
conferencing yes not have Warranty period:
products signed time nodes product Warranty
goods specified in thecontract.Sales of basic Customer Make installment
communication acceptance payments
and project or according to the
Basic Warranty period:
networking signed time nodes
Communication yes not have
specified in the Products
Warranty
products goods contract.
(5) Explanation of allocation to the remaining performance obligations
At the end of this reporting period the revenue corresponding to performance obligations under signed
contracts that remain unperformed or incomplete amounted to RMB 8.8698 million of which the full amount is
expected to be recognized as revenue in fiscal year 2026.
5. Investment Return
project Amount for this period Previous period amount
Gains from long-term equity investments -111.44 -5.77
accounted for using the equity method
Investment income generated from long-term 7389153.73 50443030.29
equity investments
The income from long-term equity investment
accounted for using the cost method 9285400.00 9153400.00
Investment income generated from debt 643686.83
restructuring 879241.25
amount to 17318129.12 60475665.77
XV. Supplementary Information
11. Detailed Statement of Non-Recurring Gains and Losses for the Period
amount of
project explain
money
Gains or losses from the disposal of non-liquid assets including the offset
5359026.59
portion of asset impairment provisions already recognized;
Government grants recognized in current period profit or loss shall exclude
those that are closely related to the company's normal business operations
comply with national policy regulations are received according to 1951399.86
established standards and exert a sustained impact on the company's
financial results.Reversal of impairment provisions for receivables subjected to separate
89028.78
impairment testing;
Profit or loss from debt restructuring; 649103.12
Other non-operating income and expenses other than those mentioned
2477843.44
above.Other profit and loss items that meet the definition of non-recurring gains
7389153.73
and losses
Total non-recurring gains and losses before income tax 17915555.52
reduction: Amount affected by income tax 324120.69
Total non-recurring gains and losses after income tax deduction 17591434.83
Impact of minority shareholders' profit/loss (losss are indicated with "-") 895779.38
Net profit excluding non-recurring gains and losses attributable to the
16695655.45
owners of the parent company
2. Return on Net Assets and Earnings Per Share
Weighted Average earnings per share
Profit for the reporting period Net Assets Basic Earnings diluted earnings
rate of return （%） Per Share per share
Net profit attributable to the company's ordinary -83.73 -0.04 -0.04
stockholders
Net profit attributable to common shareholders -231.50 -0.12 -0.12
after deducting non-recurring gains and losses
3. Differences in accounting data under domestic and foreign accounting standards
1(1) Differences in net profit and net assets disclosed in financial reports under both international accounting
standards and Chinese accounting standards
□ Applicable ?Not Applicable
(2) Differences in net profit and net assets disclosed in financial reports under both overseas accounting
standards and Chinese accounting standards
□ Applicable ?Not Applicable
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. For data that has already been audited by overseas auditing institutions and adjusted for differences
the name of the overseas institution should be indicated
□ Applicable ?Not Applicable
Board of Directors of Nanjing Putian Telecommunications Co. Ltd.April 22 2026
1
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