2025 Annual Report of DR Corporation Limited
12025 Annual Report of DR Corporation Limited
Letter to Shareholders
Back to the Essence Toward a Boundless Horizon
Dear Shareholders
In 2025 China's jewelry industry stood at an unprecedented turning point. The industry shifted from "scale
expansion" to "value creation." Leading brands proactively scaled back their store networks and market
signals were complex and difficult to interpret. Yet the real transformation came from consumers. Jewelry
purchases are no longer a one-dimensional choice between "value preservation" and "self-expression" but
a coexistence of rational and emotional considerations. As the tide recedes only brands with a clear value
proposition and the ability to resonate with users can move forward steadily.This is both the worst of times and the best of times. For DR divergence is not a crisis but a touchstone for
our original mission. The noisier the market the more precious that mission becomes; the stronger the
currents the clearer the direction.
2005–2025: From Personal Love to Broader Love
The year 2025 was especially meaningful—it marked twenty years since we first met. From meeting on a
university campus in 2005 to believing in "the sole true love in one life" after graduation to standing side
by side today to safeguard DR time has spoken quietly yet witnessed everything.In fact the external environment over the past year proved far more challenging than we anticipated.China-U.S. tariffs once rose to 125% gold prices increased by more than 70% over the year platinum
prices doubled within six months and consumption across the gold jewelry industry contracted by more
than 30%. Yet in this very year the Company achieved its first positive growth since 2022. More
importantly we accompanied more than 170000 couples in expressing their love planned over 15000
proposal ceremonies worldwide and generated more than 6.4 billion brand impressions during the year. In
May of the same year the DR Global True Love Mansion officially broke ground. In three years in the
heart of Shenzhen a global landmark dedicated to true love will rise.
2026 Strategic Upgrade: from "One Ring" to "Lifetime Love"
Our reflection and exploration in 2025 have made one point increasingly clear: if DR were merely a
jeweler selling diamond rings the world would not need another one. What the world lacks is a company
truly committed to creating for love and standing firm for love. This understanding guides our strategic
direction for 2026—brand upgrading scenario expansion product category expansion and globalization.Brand Upgrading: From Diamond Ring Specialist to a True Love Lifestyle Brand
Looking ahead we will no longer be satisfied with being only the No. 1 diamond ring brand for proposals.Instead we aim to upgrade into a new luxury lifestyle brand grounded in the value of true love and strive
to become the world's No. 1 high-end wedding jewelry brand. This is not merely an expansion of
commercial boundaries but a call back to our original mission. After a couple purchases an engagement
ring their love story continues. The future DR will accompany users through weddings anniversaries and
every meaningful moment that deserves a ceremony.Category and Scenario Expansion: Strengthen the Core to Achieve Breakthroughs
Regarding the boundaries of our brand we have long reflected on how to create deeper longer-term value
for users. The answer lies in "one consolidation and two breakthroughs." "One consolidation" means
elevating the engagement ring experience to the highest standard. It is never just about delivering a ring
but about elevating every moment that touches the user. From packaging details to the delivery ceremony
every step is designed to embody the solemnity and sense of ritual that this commitment deserves. "Two
breakthroughs" refer to deeper expansion into wedding bands and high-end wedding gold collections. The
"Qianjin Tiara" launched in 2025 has already demonstrated our innovation capabilities in the gold category.In 2026 we will continue to iterate—moving beyond jewelry to create emotional carriers worthy of being
passed down through generations.
12025 Annual Report of DR Corporation Limited
Globalization: From a Chinese Brand to a Global Brand
In 2025 our U.S. online business not only validated the potential of Chinese culture to reach global
audiences but also confirmed that "the sole true love in one life" is not solely an Eastern romantic ideal—
it reflects a universal aspiration rooted deeply in human emotion. At the same time we built solid
advantages in new media communication digital operations and supply chain efficiency. In 2026 we will
establish a global pricing position based on our intrinsic value and with confidence welcome evaluation
in the world's most mature markets.Brand Compounding: Making Time Our Moat
The essence of business is solving user needs and creating value. When someone wishes to express
profound love at a defining moment in life we hope DR becomes the best choice. This original mission
has never changed.We firmly believe that true love requires the test of time and the association between DR and "true love"
will strengthen with time. Every couple who chooses DR embodies the promise of "One Love One
Lifetime." As more users continue to cherish their choice after ten or twenty years DR gradually becomes
more than a ring—it becomes a social consensus: when people speak of true love they think of DR; when
they see DR they associate it with a steadfast promise that withstands the passage of time. This
recognition cannot be built quickly through advertising. It can only accumulate through real stories. The
longer time passes the deeper the belief in true love carried by DR resonates and the stronger the
foundation of this brand asset becomes. This is DR's time-driven brand compounding.We have always believed that regardless of how times change or technology evolves humanity's longing
for true love never changes.Appreciation and Outlook
As we write this letter we feel deep gratitude—gratitude for each other over the past twenty years for
users who cherish DR for every DR partner working quietly behind the scenes and for shareholders who
have always believed in us. Your patience and support give us the confidence to pursue what is "difficult
but right."
Looking ahead to 2026 the year before us remains full of challenges and possibilities. External uncertainty
has not dissipated the chill in global consumption persists and industry consolidation is still underway.Yet it is precisely in such moments that true brand value emerges.There is a phrase we particularly appreciate: "Love is the anchor in the torrent of time giving drifting
hearts a place to return."
Please believe that we are drawing on Chinese wisdom to reshape a global brand worthy of the world's
respect. Together let us witness DR grow from a towering tree into a flourishing forest—spreading the
belief in true love to every corner of the world.Zhang Guotao & Lu Yiwen
April 24 2026
22025Annual Report of DR Corporation Limited
Part I. Important Notes Contents and Terminology
The Board of Directors and the Directors senior management of DRCO warrant that the information of
this annual report is true accurate and complete without any false statements misleading statements or
material omissions and they shall assume joint and several legal responsibility.Zhang Guotao the legal representative of DRCO Huang Shuirong the head of accounting operations and
Ou Zhipeng the head of the accounting department (accounting supervisor) confirm that the financial
statements contained in the annual report are true accurate and complete.All directors were present at the Board meeting at which this annual report was reviewed.Any forward-looking statements in this report addressing future plans and objectives do not constitute
material commitments by DRCO to investors. Investors and related parties should be aware of the risks
involved and should understand the differences between plans projections and commitments.The Company kindly requests investors to carefully read the full text of this annual report. For potential
risks the Company may face please refer to "XI. Prospect for the Company's Future Development" under
"Part III. Management Discussion and Analysis" which provides detailed disclosures on possible risks and
corresponding countermeasures. Investors are advised to pay close attention and remain aware of
investment risks.The profit distribution plan approved at this Board meeting is as follows: based on a total of 400274550
shares the Company will distribute a cash dividend of RMB 5.00 (tax included) for every 10 shares to all
shareholders issue 0 bonus shares (tax included) for every 10 shares and convert capital reserves into 0
additional shares for every 10 shares to all shareholders.
32025Annual Report of DR Corporation Limited
Table of Contents
Part I. Important Notes Contents and Terminology .... 3
Part II. Company Profile and Key Financial Indicat....9
Part III. Management Discussion and Analysis ....... 14
Part IV. Corporate Governance Environmental Protec...58
Part V. Important Matters ...........................87
Part VI. Changes in Shares and Information of Shar..122
Part VII. Bonds ................................... 132
Part VIII. Financial Report ........................133
42025Annual Report of DR Corporation Limited
Documents Available for Inspection
I Financial statements signed and sealed by DRCO's legal representative the head of accounting
operations and the head of the accounting department;
II Original copy of the auditors' report sealed by the accounting firm and signed and sealed by the certified
public accountants;
III All original copies of DRCO's announcements and documents publicly disclosed on the websites
designated by the China Securities Regulatory Commission (CSRC) during the Reporting Period;
IV Original copy of the 2025 annual report which has been signed by DRCO's legal representative;
V Other documents available for inspection.The above-mentioned documents are kept at the Board Secretary Office of DRCO.
52025Annual Report of DR Corporation Limited
Terminology
Terms Definition
Company DRCO and DR
Corporation DR Corporation Limited
Darry Corporation Shenzhen Darry Jewelry Co. Ltd. the predecessor of DR CorporationLimited
DR Investment DR Investment (Zhuhai) Co. Ltd. formerly known as Shenzhen DRInvestment Co. Ltd. is the controlling shareholder of DRCO
Ningbo Wendi Chenxin Enterprise Management Partnership (LP)
Wendi No. 1 formerly called Gongqingcheng Wendi No. 1 Investment Management
Partnership (LP) a shareholder of DRCO
Ji’an Wendi Cuican Management Partnership (LP)formerly called
Wendi No. 2 Gongqingcheng Wendi No. 2 Investment Management Partnership
(LP) a shareholder of DRCO
Ningbo Wendi Chenxin Enterprise Management Partnership (LP)
Wendi No. 3 formerly called Gongqingcheng Wendi No. 1 Investment Management
Partnership (LP) a shareholder of DRCO
Darry Qianhai Shenzhen Darry Commercial Management Services Co. Ltd. a first-tier wholly-owned subsidiary of DRCO
Love Only AI Shenzhen Love Only AI Cloud Technology Co. Ltd. a first-tierwholly-owned subsidiary of DRCO
Haoduo Diamond Haoduo Diamond (Shenzhen) Co. Ltd. a first-tier wholly-ownedsubsidiary of DRCO
Shanghai Darry Shanghai Darry Diamond Co. Ltd. a first-tier wholly-owned subsidiaryof DRCO
Couple Shenzhen Couple Only (Shenzhen) Jewelry Co. Ltd. a first-tier wholly-ownedsubsidiary of DRCO
He'er Culture (Shenzhen) Co. Ltd. formerly known as Shenzhen
He'er Culture Shechushe Jewelry Co. Ltd. is a first-tier wholly-owned subsidiary of
DRCO
He'er Culture (Hainan) He'er Culture (Hainan) Co. Ltd. a first-tier wholly-owned subsidiary ofDRCO
DR LUXURY Singapore DR Luxury (Singapore) Pte. Ltd. a wholly-owned subsidiary of He'erCulture (Hainan) Co. Ltd.DR LUXURY Netherlands DR Luxury Netherlands Holding B.V. a wholly-owned subsidiary ofDR Luxury (Singapore) Pte. Ltd.
62025Annual Report of DR Corporation Limited
LOVEMONT Malaysia Lovemont (Malaysia) Sdn. Bhd. a wholly-owned subsidiary of DRLuxury (Singapore) Pte. Ltd.Garland Garland (Shenzhen) Jewelry Co. Ltd. a wholly-owned subsidiary ofDR Luxury (Singapore) Pte. Ltd.DR LUXURY USA DR Luxury USA Inc a wholly-owned subsidiary of DR LuxuryNetherlands Holding B.V.Garland France Garland International a wholly-owned subsidiary of DR LuxuryNetherlands Holding B.V.Love of My Love Wedding Love of My Love Wedding Planning (Shenzhen) Co. Ltd. a first-tier
Planning (Shenzhen) wholly-owned subsidiary of DRCO
Shenzhen DR Jewelry Sales Shenzhen DR Jewelry Sales Co. Ltd. a first-tier wholly-ownedsubsidiary of DRCO
Happy Love Psychological Happy Love Psychological Research Center (Shenzhen) Co. Ltd. a
Research Center first-tier wholly-owned subsidiary of DRCO
Love of My Love Wedding Love of My Love Wedding Planning (Sanya) Co. Ltd. a first-tier
Planning (Sanya) wholly-owned subsidiary of DRCO
Lovemont Hong Kong Lovemont Hong Kong Limited a wholly-owned subsidiary of DRLuxury (Singapore) Pte. Ltd.Haoduo Diamond Zhizao Haoduo Diamond Zhizao (Shenzhen) Co. Ltd. a wholly-ownedsubsidiary of Haoduo Diamond (Shenzhen) Co. Ltd.Hong Kong DR GROUP DR Group Company Limited a wholly-owned subsidiary of ShenzhenLove Only AI Cloud Technology Co. Ltd.Hong Kong DR Darry Jewelry (HK) Limited a wholly-owned subsidiary of DR GroupCompany Limited
Couple Hong Kong Couple Only Jewelry Hong Kong Company Limited a subsidiary ofDR Group Company Limited
French DR JEWELRY DR Jewelry a wholly-owned subsidiary of DR Group CompanyLimited
DR Design DR Design (Shenzhen) Co. Ltd. a first-tier wholly-owned subsidiaryof DRCO
DR JEWELRY MALAYSIA DARRY RING JEWELRY (MALAYSIA) SDN. BHD. a wholly-owned subsidiary of DR LUXURY (SINGAPORE) PTE. LTD.Qianhai Wendi Shenzhen Qianhai Wendi Management Consulting Co. Ltd.Every Year Travel
Photography Shenzhen Every Year Travel Photography Culture Co. Ltd.Wendi Design Zhuhai Wendi Design Consulting Co. Ltd.
72025Annual Report of DR Corporation Limited
Wendi Technology Zhuhai Wendi Technology Co. Ltd.Zhuhai Wendi No. 1 Zhuhai Wendi No. 1 Investment Partnership (LP)
DR A jewelry brand owned by DR Corporation Limited
Reporting Period January 1 2025 – December 31 2025
Articles of Association Articles of Association of DR Corporation Limited
Listing Listing and trading of DRCO's shares on the Shenzhen Stock Exchange
Yuan or RMB Renminbi the lawful currency of the PRC
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
SDE Shanghai Diamond Exchange
Shenzhen Administration for
Market Regulation Shenzhen Administration for Market Regulation
Company Law Company Law of the People's Republic of China
Securities Law Securities Law of the People's Republic of China
A unit of mass (weight) of gems. The weight of a carat of diamonds is
Carat (in Ct) equal to 200 milligrams or 0.2 grams of diamonds. One carat can besubdivided into 100 points for calculation of smaller diamonds;
therefore a 50-point diamond is 0.5 carat.Finished Diamond The diamond after cutting polishing and other processing that can beused to make jewelries.Gold Jewelry Jewelry with gold as the main raw material
DRCO leases physical gold from the bank for an agreed term and upon
Gold Lease expiration returns physical gold of the same quantity and variety and
pays the bank a gold leasing fee as agreed.㎡ Square meter a unit to measure the area
DTC Direct to Customer a direct-to-consumer business model
82025Annual Report of DR Corporation Limited
Part II. Company Profile and Key Financial Indicators
I. Basic Information
Stock abbreviation 迪阿股份 Stock Code 301177
Chinese name 迪阿股份有限公司
Chinese abbreviation 迪阿股份
English name (if any) DR Corporation Limited
English abbreviation (if any) DRCO
Legal representative Zhang Guotao
Registered address Room 1308 Tower C China Resources Land Building DachongCommunity Yuehai Subdistrict Nanshan District Shenzhen.Postal code 518057
On June 25 2024 the registered address of DRCO was changed from "Room
History of changes in 306 Wing Building Luohu Investment Holding Building No. 112 Qingshuihe
registered address 1st Road Qingshuihe Community Qingshuihe Street Luohu DistrictShenzhen" to "Room 1308 Tower C China Resources Land Building
Dachong Community Yuehai Subdistrict Nanshan District Shenzhen".Office address 12th and 13th Floor Tower C China Resources Land Building NanshanDistrict Shenzhen
Postal code 518057
Global website https://www.darryringgroup.com
E-mail IR@darryring.com
II. Contact Information
Board secretary Securities affairs representative
Name Huang Shuirong Chen Junling
Address 13th Floor Tower C China Resources Land 13th Floor Tower C China Resources LandBuilding Nanshan District Shenzhen Building Nanshan District Shenzhen
Telephone 0755-86664586 0755-86664586
Fax 0755-86725390 0755-86725390
E-mail IR@darryring.com IR@darryring.com
92025Annual Report of DR Corporation Limited
III. Information Disclosure and Place for Inspection
Website of the stock exchange for publishing DRCO's annual report Shenzhen Stock Exchange (SZSE): www.szse.cn
Name and website of media designated for publishing the annual report Securities Times Securities Daily China Securities Journal ShanghaiSecurities News www.cninfo.com.cn
Place for inspection of DRCO's annual report The Board Secretary Office of DRCO.IV. Other Relevant Information
Accounting firm engaged by DRCO
Name of accounting firm Deloitte Touche Tohmatsu Certified Public Accountants LLP
Office address 30/F 222 Yan An Road East Huangpu District Shanghai
Names of signing accountants Peng Jinyong and Luo Wei
Sponsor engaged by DRCO to perform continuing supervision during the Reporting Period
?Applicable □Not applicable
Name of Sponsor Office address Name of sponsor representative Continuous supervision period
December 15 2021 - December 31
2024. As the proceeds raised from the
35th Floor Shenzhen Media Group Company's initial public offering have
China Securities Co. Ltd. Tower Pengcheng 1st Road Futian Fang Yifeng and He Junjie not been fully utilized China Securities
District Shenzhen Co. Ltd. will continue to fulfill itsduties of continuing supervision over
such matter until the proceeds are fully
utilized.Financial advisers engaged by DRCO to perform continuing supervision during the Reporting Period
□Applicable? Not applicable
V. Key Accounting Data and Financial Indicators
Whether DRCO needs to retroactively adjust or restate the accounting data of the previous years
□Yes?No
2025 2024 YoY Changes 2023
Operating revenue (RMB) 1520123270.56 1482423153.98 2.54% 2180277744.00
Net profit attributable to
shareholders of the parent 139104912.36 53029532.69 162.32% 68957568.40
company (RMB)
Net profit attributable to
shareholders of the parent 4208066.16 -126403879.88 103.33% -120482993.14
company after deducting
non-recurring gains and
102025Annual Report of DR Corporation Limited
losses (RMB)
Net cash flow from
operating activities -276945398.33 316155839.08 -187.60% 36965507.81
(RMB)
Basic earnings per share
(RMB/share) 0.35 0.13 169.23% 0.17
Diluted earnings per share
(RMB/share) 0.35 0.13 169.23% 0.17
Weighted average return
on net assets 2.21% 0.83% 1.38% 1.04%
At the end of 2025 At the end of 2024 YoY change(year-end) At the end of 2023
Total assets (RMB) 7633391143.18 7552292660.57 1.07% 7530082307.45
Total equity attributable to
shareholders of the parent 6264792978.18 6323504304.33 -0.93% 6472637841.96
company (RMB)
For each of the past three fiscal years the annual net profit before or after deduction of non-recurring profit
or loss whichever is lower has been negative; the recent year's audit report indicates uncertainty about the
Company's ability to continue operating.□Yes?No
During the Reporting Period the lower of the Company's audited total profit net profit and net profit after
deduction of non-recurring profit or loss was negative
□Yes?No
VI. Key Financial Indicators on Quarterly Basis
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 407652919.98 378414495.84 370315196.21 363740658.53
Net profit attributable to
shareholders of the listed 20721843.35 55279325.11 26537031.64 36566712.26
company
Net profit attributable to
shareholders of the listed
company after deducting 6058364.96 -3754208.97 2816735.89 -912825.72
non-recurring gains and
losses
Net cash flows from
operating activities 36405058.96 -178132093.58 -46510272.32 -88708091.39
The above financial indicators or their aggregate amounts differ significantly from the relevant financial
indicators disclosed in the DRCO's quarterly or semi-annual reports.□Yes?No
112025Annual Report of DR Corporation Limited
VII. Differences in Accounting Data Under Domestic and International Accounting Standards
1. The differences in net profit and net assets disclosed in financial reports prepared according to
both International Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS).□Applicable?Not applicable
This report does not include differences in net profit and net assets disclosed during the Reporting Period
under both overseas accounting standards and Chinese Accounting Standards.
2. The difference in net profit and net assets disclosed in financial reports prepared according to
both overseas accounting standards and Chinese Accounting Standards.□Applicable?Not applicable
This report does not include differences in net profit and net assets disclosed during the Reporting Period
under both overseas accounting standards and Chinese Accounting Standards.VIII. Non-recurring Profit/Loss Items and Amounts
?Applicable □Not applicable
Unit: RMB
Item Amount in 2025 Amount in 2024 Amount in 2023 Description
Non-current asset disposal
gains or losses (including
the write-off portion of
previously recognized 96641.12 2324.86 1483669.10
asset impairment
provisions)
Government grants
recognized in the current
period's income
excluding those closely
related to the Company's
normal operations
conforming to national 3185640.05 2792775.88 17239801.74
policy regulations
enjoyed under established
criteria and persistently
impacting the Company's
income and expenses
Gains and losses on
changes in the fair value
of financial assets and Gains and losses on
liabilities held by non- changes in fair value of
financial enterprises and financial assets held for
gains and losses on the 147797640.31 174942992.31 232611194.40 trading and investmentdisposal of financial assets income from the wealth
and liabilities except for management products
effective hedging during the Reporting
operations related to Period.regular business
operations of DRCO
Reversal of provision for
impairment of receivables
subject to separate 262349.01 3730738.14 1476671.46
impairment test
122025Annual Report of DR Corporation Limited
Other non-operating
income or expenses other -4971534.28 2748458.84 -4827618.30
than the above items
Less: Income tax effect 11473890.01 4783877.46 58543156.86
Total 134896846.20 179433412.57 189440561.54 --
Details of other gain/loss items that meet the definition of non-recurring gains/losses:
□Applicable?Not applicable
DRCO has no other items in line with the definition of non-recurring gains/losses.Explanation on defining the non-recurring items listed in Interpretative Announcement No. 1 on the
Disclosure of Information by Companies Issuing Securities Publicly — Non-recurring Gains and Losses as
recurring items
?Applicable □Not applicable
Item Amount involved (RMB) Explanation
The value-added tax refund obtained due to Government grants closely related to the Company's
the portion of the actual tax burden on normal operations conforming to national policy
diamond imports exceeding 4% which 8864789.68 regulations enjoyed under established criteria and
qualifies for immediate refund. impacting the Company's income and expenses
VAT exemption for small-scale taxpayers Government grants closely related to the Company's
with monthly sales not exceeding RMB normal operations conforming to national policy
100000 (or RMB 300000 for quarterly sales 401734.60 regulations enjoyed under established criteria and
if a quarter is a tax period) persistently impacting the Company's income andexpenses
Mainly store closure losses recognized in gains or
losses on disposal of assets as well as store closure
penalty losses recognized in non-operating expenses.Due to business development needs and changes in
Gains (losses) arising from early store closure -737008.38 market conditions the Group may appropriately adjustits store opening and closure decisions. The
management of the Company believes that such
activities are closely related to the Group's ordinary
operating activities; therefore the related gains and
losses are classified as recurring gains and losses.
132025Annual Report of DR Corporation Limited
Part III. Management Discussion and Analysis
I. DRCO Main Business during the Reporting Period
DRCO is required to comply with the disclosure requirements for "Jewelry-related Businesses" as outlined
in the Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry
Information Disclosure.DRCO is required to comply with the disclosure requirements for "Retail Industry" as outlined in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information
Disclosure.(I) Main Business of DRCO
DRCO is a globalized listed enterprise focused on high-end diamond rings and jewelry. It is primarily
engaged in brand management customized sales and R&D and design of jewelry products. Since its
establishment the Company has consistently upheld the corporate mission of "helping more people
express love making love last forever" and has focused on core scenarios such as proposals weddings
and anniversaries. It provides global consumers with high-quality jewelry products and distinctive true
love cultural experience services striving to become a leading global brand representing a true love
lifestyle.The Company's brand DR Diamond Ring operates a globally integrated DTC (Direct-to-Consumer) retail
network combining online and offline channels. Its business covers nearly 200 cities across Paris in France
Hong Kong SAR and the Chinese Mainland. As of the end of the Reporting Period DR Diamond Ring
operated 345 self-operated True Love Experience Stores worldwide widely recognized and favored by
young consumers globally. With its differentiated brand positioning professional product design and
distinctive service experience DR Diamond Ring has grown into a leading brand in the global engagement
ring market. It has been selected for multiple consecutive years into the "Top 500 Asian Brands" issued by
the World Brand Lab and has received internationally recognized honors including the JNA Awards
"Brand of the Year" and the HKCT "Best International Engagement Ring Brand of the Year" in Hong
Kong.(II) Product Portfolio of DRCO
The Company has built a comprehensive product portfolio covering the three core scenarios of proposals
weddings and anniversaries based on the full lifecycle of love. Its current main products include
engagement rings wedding bands anniversary gifts and bridal gold collections. Looking ahead DRCO
will remain committed to serving the emotional aspirations of global consumers seeking to commemorate
cherished moments and celebrate a beautiful life. With a unique aesthetic perspective and high-standard
craftsmanship it will create high-quality jewelry products continuously improve its product ecosystem
and accompany users through every precious moment in their lives.
142025Annual Report of DR Corporation Limited
(III) An Overview of the Operational Status
1. Customized fully self-operated sales model
DRCO adopts a "customized sales + fully self-operated channels" sales model. Under this model the
Company provides customers with exclusive products through customized sales. Consumers select styles
diamond specifications ring settings and personalized engraving requirements via online platforms or
offline stores and place orders by paying a deposit. The Company then entrusts manufacturing and
production and upon receipt of the final payment arranges direct delivery to consumers via express
logistics or delivery to stores for in-store pickup. This model enables demand-driven production
effectively reducing inventory levels and capital tie-up and supporting the Company in maintaining
healthy cash flow and a lower-than-industry-average asset-liability ratio. Meanwhile leveraging its self-
built middle-platform system DRCO achieves end-to-end efficient coordination across order processing
product allocation and quality control ensuring timely delivery of each customized ring. For
considerations of brand philosophy communication brand image building and unified operational
management the Company adopts a fully self-operated model for the DR brand. All stores are directly
managed and operated by the Company with unified pricing across online and offline channels to ensure
consistency in service experience. In terms of channel layout DRCO has established an omni-channel
retail system integrating both online and offline channels. Its official website mini-programs Tmall and
JD flagship stores provide consumers with convenient online browsing and purchasing access while
offline stores offer physical in-store experience. The two channels function as mutual entry points and
reinforce each other fully leveraging the convenience of online platforms and the experiential advantages
of offline stores. To help more people express true love the Company also provides consumers with a
range of value-added services including the "True Love Agreement" "Love Confirmation Certificate"
and in-store proposal ceremony assistance enriching the overall service experience and further
strengthening the brand connotation and emotional fulfillment of consumers.
(1) Revenue by channel type during the Reporting Period
During the Reporting Period DRCO recorded operating revenue of RMB 1520.12 million representing
an increase of 2.54 % year-on-year. The growth was mainly attributable to the gradual realization of results
152025Annual Report of DR Corporation Limited
from prior channel optimization and refined store operations. During the Reporting Period single-store
revenue reached RMB 3.50 million increasing by 25.99 % year-on-year.By channel type online self-operated channel recorded revenue of RMB 309.56 million up 27.91% year-
on-year with its contribution rising from 16.33% to 20.36%. Offline direct-operated stores generated
revenue of RMB 1070.27 million representing a year-on-year decrease of 4.04%. Offline joint-operated
stores recorded revenue of RMB 123.23 million increasing by 5.35% year-on-year. Other businesses
generated revenue of RMB 17.07 million up 109.85 % year-on-year mainly due to increased disposal of
raw materials during the Reporting Period which improved the utilization efficiency of on-hand inventory.During the Reporting Period the Company's overall gross profit margin was 65.82% remaining broadly
stable with the same period last year. Gross profit margins of core businesses increased with online self-
operated offline direct-operated and offline joint-operated businesses rising by 3.65% 1.18% and 0.39%
year-on-year respectively. The improvement was mainly driven by optimized product sales structure
which contributed to margin expansion.Revenue by channel type during the Reporting Period
Unit: RMB0'000
20252024
YoY YoY
Channel type change in
Revenue Cost of Gross
change in
revenue margin Revenue
Cost of Gross revenue grossrevenue margin margin
Online self-operated
channel 30955.78 10335.25 66.61% 24201.42 8963.19 62.96% 27.91% 3.65%
Offline direct-
operated stores 107026.90 34918.45 67.37% 111530.62 37701.67 66.20% -4.04% 1.18%
Offline joint-
operated stores 12322.54 4285.72 65.22% 11696.78 4113.88 64.83% 5.35% 0.39%
Other businesses 1707.10 2425.09 -42.06% 813.5 383.17 52.90% 109.85% -94.96%
Total 152012.33 51964.51 65.82% 148242.32 51161.90 65.49% 2.54% 0.33%
Note: Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation errors.
(2) Store operations during the Reporting Period
* Changes in store network
DRCO optimized its channel layout in response to market dynamics adjusting its sales network based on
changes in commercial districts customer base alignment and brand positioning. During the Reporting
Period the Company opened 23 new stores (19 direct-operated stores and 4 joint-operated stores) and
closed 51 stores (47 direct-operated stores and 4 joint-operated stores) resulting in a net decrease of 28
stores.As of the end of the Reporting Period the Company operated 345 stores all of which were self-operated.
343 stores were located in the Chinese Mainland distributed across 187 cities (including county-level
cities) in 31 provinces autonomous regions and municipalities. By city tier 194 stores were located in
first- and second-tier cities accounting for 56.23% while 149 stores were located in third-tier fourth-tier
and lower-tier cities accounting for 43.19%. Overseas the Company operated 2 direct-operated stores
located in Paris and Hong Kong accounting for 0.58%.As of the end of the Reporting Period DRCO operated 314 direct-operated stores accounting for 91.01%
and 31 joint-operated stores accounting for 8.99% which remained broadly consistent with the beginning
of the Reporting Period.
162025Annual Report of DR Corporation Limited
Store count changes
Unit: Store
Beginning- Increase Decrease
Tier of city Classification of-period Net End-of-period
number New Modelconversion Closed
Model change number
conversion
Direct-operated
stores 183 13 2 22 1 -8 175
Tier-1 and tier-2 Joint-operatedstores 19 3 1 2 2 - 19
Subtotal 202 16 3 24 3 -8 194
Direct-operated
stores 156 6 - 25 - -19 137
Tier-3 tier-4 and Joint-operated
lower tiers stores 13 1 - 2 - -1 12
Subtotal 169 7 - 27 - -20 149
Direct-operated
Overseas stores
2-----2
Subtotal 2 - - - - - 2
Direct-operated
stores 341 19 2 47 1 -27 314
Total Joint-operatedstores 32 4 1 4 2 -1 31
Total 373 23 3 51 3 -28 345
Note 1: The Company adjusted the classification of store city tiers in accordance with the latest city tier classification published by
the relevant national authorities.Note 2: "Model conversion" refers to adjustments in store operating types between direct-operated and joint-operated models.* Newly opened stores
To ensure the quality of store expansion DRCO steadily advanced its new store rollout. During the
Reporting Period a total of 23 new stores were opened including 19 direct-operated stores and 4 joint-
operated stores with a total operating area of 1749.52 square meters. These new stores generated revenue
of RMB 30.46 million and gross profit of RMB 20.28 million. Average daily revenue of newly opened
stores during the Reporting Period increased by RMB 0.004 million compared with the same period of the
previous year an increase of 72.23 % reflecting improved operational efficiency. The improvement was
mainly attributable to the Company's continued optimization in store location selection product mix and
operational strategies.Newly opened stores
Unit: RMB0'000
20252024
Model Region
Number of As % of Gross Number of As % of
stores Area (m2) Revenue total profit stores Area (m2) Revenue total
Gross
revenue revenue profit
North
China 1 18.80 863.16 0.57% 585.20 1 74.00 133.51 0.09% 90.61
East
Joint- China - - - - - 1 63.00 93.81 0.06% 60.64
operated
stores Central
China - - - - - 1 29.40 216.96 0.15% 141.12
Northwest
China 1 31.30 8.61 0.01% 5.29 - - - - -
172025Annual Report of DR Corporation Limited
Southwest
China 2 184.80 329.40 0.22% 212.88 - - - - -
Subtotal of joint-
operated stores 4 234.90 1201.17 0.79% 803.37 3 166.40 444.28 0.30% 292.37
Northeast
China 1 78.00 174.80 0.11% 116.30 2 117.40 157.02 0.11% 99.52
North
China 1 135.00 8.63 0.01% 5.65 1 20.00 - - -
East
China 9 687.00 865.96 0.57% 571.05 4 377.22 554.80 0.37% 367.55
Direct-
operated SouthChina 6 511.73 648.54 0.43% 436.26 2 180.60 21.85 0.01% 15.11stores
Central
China - - - - - 2 150.00 1.41 0.00% 0.54
Northwest
China 1 77.89 119.85 0.08% 77.71 1 78.32 17.07 0.01% 12.14
Southwest
China 1 25.00 27.02 0.02% 18.14 2 109.00 149.59 0.10% 97.62
Subtotal of direct-
operated stores 19 1514.62 1844.80 1.21% 1225.11 14 1032.54 901.74 0.61% 592.48
Total 23 1749.52 3045.97 2.00% 2028.48 17 1198.94 1346.01 0.91% 884.85
Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation errors.* Impact of closed stores during the Reporting Period
During the Reporting Period the Company continued to optimize its channel network closing a total of 51
stores (47 direct-operated stores and 4 joint-operated stores) to enhance operational efficiency and
profitability.The closed stores generated revenue of RMB 43.29 million during the Reporting Period representing a
decrease of RMB 60.01million compared with revenue of RMB 103.30 million generated by these stores
in the same period of the previous year. Among them revenue from the closed direct-operated stores
decreased by RMB 56.15 million compared with the same period of the previous year with the declines
mainly concentrated in East China (RMB -15.95 million) Central China (RMB -11.34 million) and
Northeast China (RMB -7.91 million). The impact of closed joint-operated stores was relatively limited.Analysis of the impact of closed stores on revenue during the Reporting Period
Unit: RMB0'000
Revenue in the same
Model Region Number of Revenue during the
period of the previous year Impact of closed stores on
closed stores Reporting Period generated by stores closed revenue during theduring the Reporting Reporting Period
Period
Joint-operated East China 2 120.93 313.18 -192.25
stores South China 2 124.82 318.45 -193.63
Subtotal of joint-operated stores 4 245.75 631.63 -385.88
Northeast China 6 427.30 1218.34 -791.04
Direct-
operated stores North China 8 1275.91 1972.24 -696.33
East China 10 717.61 2312.97 -1595.36
182025Annual Report of DR Corporation Limited
South China 9 831.10 1186.72 -355.62
Central China 5 296.37 1430.48 -1134.11
Northwest China 4 195.01 644.23 -449.22
Southwest China 5 339.78 933.31 -593.53
Subtotal of direct-operated stores 47 4083.08 9698.29 -5615.21
Total 51 4328.83 10329.92 -6001.09
Note 1: The impact of closed stores on revenue during the Reporting Period = Revenue generated by closed stores during the
Reporting Period – Revenue generated by the same stores in the same period of the previous year.Note 2: Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation errors.* Performance analysis of stores during the Reporting Period
During the Reporting Period direct-operated stores achieved single-store revenue of RMB 3.45 million
representing a year-on-year increase of 25.13% and revenue per square meter reached RMB 42000/㎡ up
34.12% year-on-year. Joint-operated stores recorded single-store revenue of RMB 4.03 million increasing
by 33.96 % year-on-year while revenue per square meter reached RMB 62500/㎡ up 36.15% year-on-
year.During the Reporting Period both single-store revenue and revenue per square meter improved mainly
attributable to the closure of underperforming stores which reduced internal traffic diversion and
facilitated the concentration of customer traffic in high-quality stores. In addition refined operational
management further improved output efficiency per unit area.Single-store revenue and revenue per square meter
Unit: RMB0'000
2025 2024 YoY change
Single- Single-store Single-store Single-storeClassification Average Single- revenue per Average Single- Single- revenue per Single- revenue per
number store store square meter number store store square meter store square meter
of stores area( ) revenue (RMB0'000/ of stores
area
( ) revenue (RMB0'000/ revenue (RMB0'000/㎡ ) ㎡㎡ ㎡) ㎡)
Direct-
operated stores 317 82.18 344.96 4.20 406 87.95 275.68 3.13 25.13% 34.12%
Joint-operated
stores 30 64.56 403.43 6.25 36 65.58 301.15 4.59 33.96% 36.15%
Note 1: Average number of stores refers to the average number of stores at the end of each month during the Reporting Period (∑
Sum of month-end store counts / Number of months).Note 2: Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation errors.* Top 10 stores in terms of revenue
Unit: RMB0'000
No. Store name Opening date Model Businessarea ( ) Revenue
Cost of Operating
㎡ revenue profit
1 DR Store in Guangzhou GrandviewMall 2017/11/11
Direct-
operated 266.00 1975.32 675.39 471.24
2 DR Store in Xi'an SAGA InternationalShopping Mall 2018/7/28
Direct-
operated 94.00 1249.34 460.83 338.47
3 DR Store in Chengdu IFS 2018/1/17 Direct-operated 34.00 1023.72 363.56 389.78
192025Annual Report of DR Corporation Limited
4 DR Store in Shenzhen Uniwalk Center 2017/10/20 Direct-operated 92.40 960.44 350.71 161.48
5 DR Store in The Heart of Yiwu Jinhua 2018/4/18 Direct-operated 135.00 950.17 321.27 397.95
6 DR Store in Hopson One Beijing 2022/9/10 Joint-operated 61.00 914.97 312.28 300.08
7 DR Store in Changsha IFS 2023/10/8 Direct-operated 96.00 884.92 264.69 370.39
8 DR Store in Shanghai New World Joint-Daimaru 2018/4/20 operated 90.00 880.90 279.53 257.11
9 DR Store in Hangzhou Hubin Yintai 2019/4/27 Direct-IN77 C operated 84.00 869.98 286.87 465.00
10 DR Store in Beijing SKP 2025/4/8 Joint-operated 18.80 863.16 277.96 185.82
Note: Operating profit = Revenue - Cost of revenue - Store expenses excluding expenses shared with the headquarters.
(3) Online sales during the Reporting Period
DRCO primarily conducts online sales through its self-owned sales platform (the Company's official
website) and third-party sales platforms (including Tmall JD.com and others). During the Reporting
Period online business generated revenue of RMB 309.56 million representing a year-on-year increase of
27.91% and accounting for 20.36% of total revenue. Among them the self-owned sales platform (the
Company's official website) generated revenue of RMB 106.06 million up 72.47% year-on-year mainly
attributable to the active expansion of overseas business. Third-party platforms (including Tmall JD.com
and Douyin among others) generated revenue of RMB 203.50 million increasing by 12.73 % year-on-
year mainly driven by the expansion and optimization of operations and channel development.According to DRCO's purchase rules customers who make purchases through third-party sales platforms
are required to register on its self-owned sales platform namely the Company's official website. As of the
end of the Reporting Period the total number of registered users on the Company's official website
reached approximately 15057600 with about 1442900 new registered users during the Reporting Period.The average order value on the official website was approximately RMB 6400.Online sales
Unit: RMB0'000
2025 2024 YoY change
Channel
Sales order As % of Sales order As % of Sales
amount Revenue online value Revenue online order Revenuerevenue revenue amount
Self-owned sales
platform 10886.01 10606.24 34.26% 6344.69 6149.64 25.41% 71.58% 72.47%
Third-party sales
platforms 22920.73 20349.54 65.74% 20315.45 18051.78 74.59% 12.82% 12.73%
Total 33806.74 30955.78 100.00% 26660.14 24201.42 100.00% 26.81% 27.91%
Note 1: The self-owned sales platform refers to DRCO's official website (including overseas sites) and the points-based
redemption mall while third-party sales platforms include the flagship stores on Tmall JD.com and others.Note 2: Sales order amount refers to the tax-inclusive order amount during the Reporting Period.
2. Outsourced manufacturing model
Benefiting from extensive industrial chain resources and the continued deepening of industrial division of
labor DRCO adopts an asset-light operating strategy with all finished products produced through an
outsourced manufacturing model. On the one hand by fully leveraging external manufacturing capacity
the Company enhances operational efficiency. On the other hand it focuses on brand building channel
expansion product research and development and supply chain integration thereby improving overall
202025Annual Report of DR Corporation Limited
operating effectiveness. The Company dynamically adjusts supplier order allocation ratios based on
supplier performance indicators including production capacity product pass rate and on-time delivery
rate so as to ensure product quality and delivery timeliness. DRCO places strong emphasis on product
quality and continuously improves its quality control system. Professional quality inspection personnel or
specialized equipment are deployed across key stages including raw material procurement outsourced
manufacturing and product circulation. In addition all products shipped to retail channels are tested by
nationally accredited third-party testing institutions and are accompanied by relevant certification
documents.
3. Procurement model
To ensure standardized procurement processes and stable raw material quality DRCO's raw material
procurement is centrally managed by the supply chain department. Based on business requirements
inventory levels and short-term market price trends the Company formulates and implements
procurement plans. Key raw materials include diamonds and gold. Gold procurement is conducted through
two models: bank leasing and self-purchase. Gold leasing refers to a model under which DRCO leases
physical gold from banks for an agreed period and returns the same quantity and type of physical gold
upon maturity while paying leasing fees in accordance with the agreement.
(1) Major procurement activities during the Reporting Period
* Procurement amounts of major raw materials
During the Reporting Period DRCO's total procurement amounted to RMB 716.00 million representing a
year-on-year increase of 73.04% with a structurally diversified growth across categories. Diamond
procurement amounted to RMB 233.82 million up 49.25% year-on-year primarily due to the advance
stockpiling of loose stones in the fourth quarter in response to anticipated policy adjustments while the
remaining purchases were conducted in line with order-based demand and routine inventory replenishment.Gold procurement reached RMB 200.97 million increasing by 16.15% year-on-year mainly driven by
rising gold prices. Platinum procurement amounted to RMB 187.39 million surging by 732.96% year-on-
year primarily attributable to adjustments in the Company's product mix and higher platinum prices.Outsourced manufacturing totaled RMB 93.82 million up 52.34% year-on-year.* Procurement channels and quantities of major raw materials
During the Reporting Period diamonds were primarily procured through domestic and overseas channels
with the supply chain department responsible for inspection and warehousing. For overseas procurement
diamonds were mainly purchased by Hong Kong DR GROUP from overseas suppliers and then cleared
through Shanghai Darry a member of the Shanghai Diamond Exchange. The Company also directly
procured polished diamonds from domestic suppliers or their affiliates that are members of the Shanghai
Diamond Exchange.During the Reporting Period the procurement quantities of major raw materials showed differentiated
growth in line with business demand while procurement channels remained stable. Diamonds were
sourced through both domestic and overseas channels with domestic procurement accounting for 75.45%
and overseas procurement accounting for 24.55% broadly consistent with the previous year. Total
diamond procurement quantity reached 62549.46 carats increasing by 111.88% year-on-year. Gold
procurement quantity reached 291000 grams decreasing by 18.03% year-on-year. Platinum procurement
quantity reached 640089.25 grams increasing by 477.32% year-on-year. Outsourced manufacturing
quantity reached 255056 pieces increasing by 8.50% year-on-year.Procurement amounts of major raw materials during the Reporting Period
Unit: RMB0'000
20252024
Item Procurement As % of total Procurement As % of total YoY change
amount procurement amount procurement
Diamond 23382.01 32.66% 15666.48 37.86% 49.25%
212025Annual Report of DR Corporation Limited
Gold 20097.22 28.07% 17303.05 41.82% 16.15%
Platinum 18738.84 26.17% 2249.67 5.44% 732.96%
Outsourced manufacturing 9381.75 13.10% 6158.29 14.88% 52.34%
Total 71599.82 100.00% 41377.49 100.00% 73.04%
Note 1: The procurement amounts in the table are exclusive of tax.Note 2: Diamond procurement includes natural polished diamonds and rough diamonds.Note 3: Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation
errors.Procurement channels and quantities of major raw materials during the Reporting Period
20252024
Item Unit Procurementchannel Procurement As % of total Procurement As % of total YoY change
quantity procurement quantity procurement
Domestic
market 47192.18 75.45% 20469.78 69.34% 130.55%
Diamond Carat Overseasmarket 15357.28 24.55% 9051.82 30.66% 69.66%
Total 62549.46 100.00% 29521.60 100.00% 111.88%
Leasing - - 163000.00 45.92% -100.00%
Gold Gram Procurement 291000.00 100.00% 192000.00 54.08% 51.56%
Total 291000.00 100.00% 355000.00 100.00% -18.03%
Platinum Gram Procurement 640089.25 100.00% 110873.20 100.00% 477.32%
Note: Diamond procurement includes natural polished diamonds and rough diamonds.Outsourced manufacturing quantities during the Reporting Period
20252024
Item Unit Procurement As % of total Procurement As % of total YoY change
quantity procurement quantity procurement
Outsourced
manufacturing Piece 255056.00 100.00% 235072.00 100.00% 8.50%
Note: The above procurement quantities exclude product accessories such as earring backs and chain tags and low-value silver
and copper accessories.
(2) Inventories during the Reporting Period
During the Reporting Period DRCO's inventories comprised raw materials work-in-progress finished
goods materials under outsourced manufacturing goods in transit and revolving materials with raw
materials and finished goods accounting for the majority. As of the end of the Reporting Period the
Company's inventory balance amounted to RMB 711.69 million representing a year-on-year increase of
52.53%. The provision for inventory impairment stood at RMB 3.82 million and the net carrying amount
of inventory was RMB 707.87 million. Raw materials had an ending balance of RMB 192.84 million up
133.34 % year-on-year accounting for 27.10% of total inventory. This increase was primarily attributable
to the advance stockpiling of loose stones in response to policy adjustments as well as the concentrated
buildup of platinum and gold reserves in the fourth quarter. Work-in-progress had an ending balance of
RMB 27.63 million up 67.03 % year-on-year accounting for 3.88% of total inventory. This increase was
mainly due to an accumulation of defective products which were subsequently disposed of in early 2026.Finished goods had an ending balance of RMB 470.24 million up 35.20% year-on-year accounting for
66.07 % of total inventory. This increase was primarily attributable to operational arrangements such as
optimizing store product assortments and adjusting product mix. Materials under outsourced
222025Annual Report of DR Corporation Limited
manufacturing had an ending balance of RMB 14.31 million down 4.21% year-on-year accounting for
2.01% of total inventory. Goods in transit had an ending balance of RMB 0.29 million down 19.19% year-
on-year. Revolving materials had an ending balance of RMB 6.39 up 47.66% year-on-year accounting for
0.90% of total inventory. This increase was primarily due to a higher level of peripheral consumables
stockpiled for store and operational needs.Inventory composition at the end of the Reporting Period
Unit: RMB0'000
December 31 2025 December 31 2024
Item YoY change
Amount % Amount %
Raw materials 19284.42 27.10% 8264.41 17.71% 133.34%
Work-in-progress 2762.74 3.88% 1654.02 3.54% 67.03%
Finished goods 47023.78 66.07% 34780.17 74.54% 35.20%
Materials under outsourced
manufacturing 1431.13 2.01% 1493.98 3.20% -4.21%
Goods in transit 28.55 0.04% 35.33 0.08% -19.19%
Revolving materials 638.67 0.90% 432.54 0.93% 47.66%
Total 71169.28 100.00% 46660.46 100.00% 52.53%
Note: Figures are rounded to two decimal places; minor discrepancies due to rounding are not calculation errors.II. Industry Overview during the Reporting Period
DRCO is required to comply with the disclosure requirements for "Jewelry-related Businesses" as outlined
in the Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry
Information Disclosure.DRCO is required to comply with the disclosure requirements for "Retail Industry" as outlined in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information
Disclosure.(III) Overview of Macroeconomic Environment and Market Conditions
In 2025 amid a complex and evolving international economic and trade environment China implemented
more proactive fiscal policies and moderately loose monetary policies to boost domestic demand and
stimulate consumption. Total retail sales of consumer goods reached RMB 50.1 trillion for the year
representing a year-on-year increase of 3.7%. Final consumption expenditure contributed 52% to economic
growth up by 5.0% from the previous year continuing to serve as the primary growth driver. Real growth
in per capita disposable income of households reached 5.0% providing fundamental support for the stable
performance of the consumer market. The consumption structure continued to improve with services
consumption accounting for 46.1% of total consumption expenditure. Household consumption is shifting
from a primarily goods-driven model to a more balanced structure between goods and services
consumption.(II) Industry Development Trends
1. Market size and category landscape
According to the 2025 China Jewelry Industry Development Report released by the Gems & Jewelry Trade
Association of China the total market size of China's gems and jewelry industry reached approximately
RMB 978 billion in 2025 in terms of sales revenue hitting a historical high and representing a year-on-
year increase of 25.6%. Among this the gold jewelry market reached approximately RMB 760 billion up
232025Annual Report of DR Corporation Limited
33.61% year-on-year accounting for about 77.7% of the overall jewelry market; the diamond jewelry
market reached approximately RMB 48 billion up 11.63% year-on-year accounting for about 4.9%.Overall the industry in 2025 demonstrated the following characteristics: a moderate recovery in the retail
market; accelerated optimization and restructuring of offline channels; slower growth in domestic e-
commerce for jewelry while cross-border e-commerce contributed significantly to exports; uneven
performance across market segments by category; and a contraction in innovation and R&D intensity. In
addition the jewelry auction market and demand for high-end jewelry showed strong upward momentum.According to the latest data from the National Bureau of Statistics of China retail sales of gold silver and
jewelry by enterprises above the designated size reached RMB 373.6 billion in 2025 representing a year-
on-year increase of 12.8% significantly higher than the overall growth rate of retail sales of commodities
(RMB 44322 billion in 2025 up 3.8% year-on-year). This growth was supported by several factors
including the release of investment demand driven by rising gold prices a phased recovery in the wedding
market and the rebound in accessory-related consumption following the restoration of offline social
activities.According to the 2025 Chinese Personal Luxury Goods Market report published by Bain & Company the
decline in the Chinese Mainland's luxury goods market narrowed significantly. The jewelry category saw
its sales contraction narrow from 25%–30% in 2024 to 0%–5% indicating that the industry is gradually
emerging from the downturn and reflecting continued consumer preference for jewelry products that offer
both emotional value and value-preservation attributes.
2. Gold category: investment-driven demand and consumption structure transformation
According to the Gold Demand Trends 2025 report released by the World Gold Council global gold
demand reached 5002 tonnes in 2025 a record high. Among this investment demand surged by 84% to
2175 tonnes becoming the key driver behind the record level of global gold demand. Driven by the
continued rise in gold prices the U.S. dollar gold price increased by 67% year-on-year in 2025. Global
gold jewelry consumption demand declined by 18% year-on-year while the total value of gold jewelry
consumption climbed 18% to US$172 billion reflecting the enduring appeal of gold jewelry to consumers.In the domestic market the China's Gold Demand Trends 2025 report released by the World Gold Council
showed that total gold demand in China reached 1003 tonnes in 2025 up 6% year-on-year and the highest
level since 2021. Consumption value reached RMB 796 billion representing a significant increase of 53%
year-on-year. Among categories demand for gold bars and coins reached 432 tonnes up 28% year-on-year
and setting a new historical record. Gold jewelry demand totaled 360 tonnes down 25% year-on-year but
consumption value reached RMB 281.4 billion up 8% year-on-year and close to historical peak levels
indicating that domestic consumers' willingness to purchase gold jewelry remains strong. The report
further noted that amid elevated gold prices and pressure on household income growth consumers were
increasingly inclined toward cost-effective gold products while demand for high-end boutique pieces
remained resilient. Heavy antique gold jewelry featuring handcrafted techniques and higher workmanship
premiums performed steadily in premium channels. Overall the domestic gold jewelry market showed
strong resilience and growth potential.The China Gold Association indicated that influenced by factors such as high gold prices and new tax
policies China's gold market exhibited diversified demand trends characterized by premiumization
lightweight design and high cost-effectiveness catering to differentiated consumer preferences. Notably
consumption of gold bars and coins exceeded gold jewelry consumption for the first time in 2025 marking
a significant structural shift in the domestic gold market and reflecting a continued strengthening of
consumers' recognition of gold's investment attributes.
3. Diamond category: structural adjustment and value differentiation
In 2025 the global diamond industry entered a critical phase of structural adjustment and value
differentiation. Supply contraction shifting demand scenarios and the restructuring of certification
systems jointly reshaped the industry landscape. In terms of pricing data from the International Diamond
Exchange (IDEX) showed that the polished diamond price index declined by 10.9% year-on-year in 2025
with the magnitude of decline narrowing compared with 2024 indicating gradual market stabilization.
242025Annual Report of DR Corporation Limited
Supply continued to contract. According to data from the Shanghai Diamond Exchange global natural
diamond production fell to 110 million carats in 2024 the lowest level since 1995 highlighting increasing
scarcity. On the demand side structural adjustment was evident. The China Diamond Acquisition Study
2025 released by De Beers indicated that non-bridal natural diamond consumption accounted for 81% of
total spending in China with gifting and self-purchase emerging as key growth drivers. The average price
per stone rose by 1.8% despite market headwinds while the investment-grade diamond price index
increased by 5.2% reflecting resilient demand for high-quality diamonds. The consumer base also showed
trends toward younger and higher-income demographics with Gen Z exhibiting the strongest purchase
intent among all age groups.The industry certification system further clarified the value boundary between natural diamonds and lab-
grown diamonds accelerating value segmentation. In 2025 the Gemological Institute of America (GIA)
announced that it would cease using the 4Cs grading system (Cut Colour Clarity Carat) for lab-grown
diamonds while the HRD Antwerp announced that it would stop issuing quality certificates for loose lab-
grown diamonds starting in 2026. These coordinated adjustments by global authoritative grading
institutions further reinforced the unique positioning of natural diamonds in terms of scarcity emotional
value and investment attributes accelerating the industry's transition toward a dual-track structure with
clearer value differentiation: lab-grown diamonds continue to penetrate the FMCG accessories segment
while natural diamonds remain dominant in core high-end scenarios such as weddings emotional
commemorations and collectible investments.(III) Industry Competitive Landscape
2025 represents a pivotal period of structural reshaping in China's gold jewelry industry during which the
industry development logic and competitive landscape underwent profound transformation. Driven by
adjustments in gold taxation policies increasingly rational consumer demand and intensifying competition
in the existing market the industry has officially moved away from an extensive growth model reliant on
policy dividends scale expansion and homogeneous low-price competition and is fully shifting toward a
new stage of high-quality development centered on brand value original design cultural empowerment
and compliant operations.Currently the industry is characterized by intensifying competition in the existing market ongoing
optimization of channel structures rising market concentration and a transition from price-driven to value-
driven competition. Retail outlets are shifting from scale expansion to structural adjustment with
underperforming stores being continuously phased out and resources increasingly concentrating toward
high-quality enterprises with advantages in branding R&D and innovation supply chain integration and
omnichannel operations. According to data from the Gems & Jewelry Trade Association of China the total
number of stores of 11 A-share listed jewelry companies reached 21997 at the end of 2025 a decrease of
7.19% compared with the end of 2024 indicating that the industry is accelerating its transition from "scale-
driven growth" to "quality-driven development."
As the market order continues to improve and consumers place greater emphasis on craftsmanship and
cultural connotation product innovation cultural IP and brand premium have become core competitive
advantages. The industry is at a critical stage of improving quality and efficiency and undergoing
transformation and upgrading. Compliant operations and value creation will become the main themes of
long-term competition in the future.(IV) Industry Development Trends
Looking ahead the jewelry industry is expected to achieve high-quality development driven by policy
support consumption upgrading product category evolution channel transformation technological
innovation and brand enhancement. Relevant government authorities have introduced policies supporting
the development of the jewelry sector into a hundred-billion-yuan consumer growth driver promoting the
industry's upgrade toward premiumization branding and personalization. At the same time policies
encourage emotion-driven and experience-based service consumption facilitating a shift in consumption
from "purchasing products" to "enjoying the process" thereby injecting policy momentum for high-quality
industry development. The new generation of consumers places greater emphasis on personalized
252025Annual Report of DR Corporation Limited
expression and emotional value with increasingly rational purchasing decisions. Products with emotional
value cultural connotation and value preservation attributes are gaining stronger market preference while
experiential scenario-based and emotional consumption is becoming an important development direction.The product category structure continues to improve the hedging and investment attributes of gold
continue to strengthen and the industry is gradually forming a dual-engine growth pattern driven by both
consumption and investment. The diamond industry is entering a phase of structural adjustment with high-
quality positioning expansion beyond wedding scenarios and clearer value segmentation emerging as core
trends further highlighting the scarcity and emotional value of natural diamonds. Channel development is
accelerating toward integrated online-offline convergence. DTC model immersive experience and
standardized services have become key competitive capabilities. The logic of channel development is
shifting from scale expansion to improvements in operational efficiency and user experience. New
technologies such as AI AR/VR and big data are deeply penetrating the entire value chain—including
jewelry design R&D marketing customer service and supply chain management—continuously
enhancing operational efficiency and consumer experience. Industry competition is evolving from product
and price-based competition toward brand value competition. Brands with distinctive emotional
positioning cultural depth and value propositions are expected to build defensible competitive moats and
gain advantages in industry consolidation.III. Analysis of Core Competitiveness
Anchored in the philosophy of true love as its long-term strategic foundation DRCO has built sustainable
core competitiveness across brand users channels supply chain and products. Through continuous brand
building the Company has formed a distinctive value proposition; through refined user operations it has
accumulated long-term trust; through a fully self-operated DTC model it delivers a consistent experience;
through a flexible and customized supply chain it achieves efficient operations; and through user-driven
product innovation it continuously enhances brand vitality which collectively support the brand's long-
term and steady development.(I) Brand Building Capability
With "One Love One Lifetime" as its core value proposition DRCO has established a highly recognizable
brand system. Through the purchasing rule that "You Can Only Buy for One Person" the brand deeply
resonates with consumers' aspirations for exclusivity and enduring commitment in romantic relationships.Leveraging identity binding and blockchain technology the DR brand transforms love commitments into
traceable and trustworthy True Love Agreements enabling a natural shift in consumer demand from
jewelry aesthetics to emotional needs centered on loyalty and enduring commitment in love. At the same
time supported by a professional brand operations team the Company continuously communicates its
brand values through diversified new media channels cultivating a loyal user base with strong brand
identification and effectively enhancing brand influence and market awareness. Based on its distinctive
emotional positioning and non-replicable value proposition DR differentiates itself significantly from
comparable products and forges an unassailable brand mindshare moat in the hearts of consumers.(II) User Operations Capability
DRCO continuously communicates its true love philosophy through diversified channels including social
media platforms short-video platforms news and information platforms and search engines. Through
sincere interaction with users the Company builds long-term trust and emotional resonance at the value
level gaining increasing recognition from consumers. As of the end of the Reporting Period the Company
had more than 30 million followers across domestic new media platforms and over 1 million followers on
overseas social platforms. Driven by strong identification with the brand's true love values users
proactively share their love stories and ceremonial moments generating authentic word-of-mouth
communication and continuously strengthening emotional connections between the brand and its users.(III) omni-channel DTC Operations Capability
DRCO adheres to a fully self-operated online and offline channel management model building a closed
262025Annual Report of DR Corporation Limited
consumption loop featuring "deep offline experience + efficient online conversion." Offline stores create
immersive brand experience spaces providing end-to-end emotional experiences ranging from try-on
services and proposal planning to signing the True Love Agreement thereby reinforcing perception of the
brand value. Online through the official website mini-programs and flagship stores on third-party
platforms the Company leverages digital tools such as 3D virtual try-on and intelligent ring size
estimation to achieve precise customer reach and efficient conversion. The fully self-operated model
ensures unified service standards and complete delivery of brand value providing strong channel support
for user loyalty.(IV) Customized Flexible Supply Chain Capability
DRCO adopts customized sales as its core model. After consumers select styles diamond 4C parameters
ring setting materials ring size and personalized engraving requirements order information is
synchronized in real time to the supply chain system precisely driving production scheduling inventory
allocation and product delivery forming full-chain digital management from consumer demand to
manufacturing. This model not only satisfies consumers' emotional demand for exclusivity in love but also
helps the Company optimize inventory levels control store expansion costs and maintain healthy cash
flow enabling asset-light and efficient operations. Based on the principle of "demand-driven production"
a comprehensive flexible supply chain system has been established coordinating supply chain
management centers outsourced manufacturers and raw material suppliers to ensure product quality and
delivery efficiency.(V) Product Innovation and R&D Capability
Leveraging its Paris design center and internationally renowned jewelry designers DRCO has developed a
product portfolio that combines distinct brand identity and emotional resonance. As of the end of the
Reporting Period the Company had accumulated more than 300 national patents and its product designs
had received multiple international awards including the MUSE Design Awards IDA Design Awards and
the New York Product Design Awards. With solid R&D and design capabilities and substantial user assets
the Company achieves deep synergy and mutual empowerment between user assets and product innovation.Front-end user preferences continuously provide authentic inspiration for product development forming an
efficient closed loop from demand identification to design response and agile iteration. Innovative products
carrying true love further stimulate user resonance and sharing willingness ultimately driving a sustained
positive cycle of brand value.IV. Analysis of Main Business
1. Overview
(I) Overview of Operating Performance in the Reporting Period
In 2025 DRCO strengthened brand building and channel optimization with a focus on improving quality
and efficiency. Revenue and net profit recorded steady year-on-year growth and operating performance
showed a stable and improving trend. During the Reporting Period the Company recorded revenue of
RMB 1520.12 million representing a year-on-year increase of 2.54%; net profit of RMB 139.10million
representing a year-on-year increase of 162.32 %; and net profit after non-recurring items of RMB 4.21
million representing a year-on-year increase of 103.33 % successfully turning losses into profits with
operating quality continuing to improve.The growth in performance was mainly attributable to the following factors. First channel optimization
delivered notable results. The number of operating stores was 345 at period end representing a net
reduction of 28 stores compared with the previous year. Single-store revenue reached RMB 3.50 million
representing a year-on-year increase of 25.99%. The Company achieved steady revenue growth despite the
reduction of store count. Second operating cost control was effective. Store rental renovation and labor
costs decreased by RMB 103.84 million year-on-year while selling expenses declined supporting
improved profitability.
272025Annual Report of DR Corporation Limited
In summary by strengthening brand momentum and continuously optimizing channel layout DRCO
further improved store efficiency. Together with effective cost control these efforts drove steady growth in
operating performance and continuous enhancement of core competitiveness.(II) Overview of Operations and Management during the Reporting Period
In 2025 DRCO adhered to its corporate vision of "becoming a global leader in true love culture" and
upheld its mission of "helping more people express love making love last forever." Guided by the core
brand philosophy of "One Love One Lifetime" the Company focused on three key areas—brand building
product innovation and channel efficiency enhancement—achieving coordinated and high-quality
development across its businesses.
1. Brand building: centered on true love to build global emotional connections
The Company remains committed to the true love philosophy and continues to build differentiated brand
barriers through cultural communication scenario creation user co-creation and the fulfillment of social
responsibility thereby strengthening user emotional identification and global brand influence.
(1) Deepening global communication and expanding international influence
During the Qixi Festival 2025 DRCO hosted a Chinese cultural experience event at its Paris store located
in the Carrousel du Louvre Shopping Mall conveying the brand's emotional value to the international
market. The event received coverage from major international media outlets such as Agence France-Presse
and the Associated Press with online exposure exceeding 32 million impressions. On domestic social
media the topic "#French people were touched by the romance of Chinese Qixi#" ranked third on Weibo's
social trending list. In overseas markets brand communication effectiveness and user identification
steadily improved. Awareness of the brand name "DARRY" as a symbol of true love commitment
continued to expand while spontaneous user sharing and recommendations became an important
communication channel. Meanwhile internationally renowned figures Sophie Marceau Juliette Binoche
and Isabelle Huppert wore the Company's products at major events on multiple occasions further
enhancing the brand's international reputation and cross-cultural recognition.
(2) Advancing the global true love landmark initiative to build scenario-based brand cultural assets
In January 2025 DRCO officially launched the global true love landmark initiative. Through cross-sector
collaboration with iconic cultural and tourism destinations in China and overseas the Company aims to
build a global network of love-themed cultural landmarks extending the brand philosophy from product-
based expression to spatial experiences and enabling the physical and experiential realization of its cultural
assets.During the Reporting Period the first landmark was established on Changbai Mountain. Through
immersive spatial designs such as "Ice Heart Island" the "1314 True Love Path" and the "Lifetime Lock"
the brand philosophy of "One Love One Lifetime" was integrated with local cultural elements creating a
scenario-based "jewelry + cultural tourism" experience model. The "1314 True Love Path" which passes
through 99000 century-old Changbai Scotch pines offers a ritualized experience of "ringing the bell of
happiness – walking the true love path – hanging a lifetime lock" strengthening users' emotional
resonance and further enriching the brand's cultural connotations and user touchpoints. Going forward
282025Annual Report of DR Corporation Limited
DRCO will continue to expand the global layout of true love landmarks and accumulate long-term
sustainable brand cultural assets.
(3) Deepening user co-creation and scenario-based services to build full-lifecycle emotional
connections
In terms of content co-creation with users the Company focused on key emotional occasions such as "520"
and Qixi Festival launching the "520 Proposal Campaign" UGC initiative to encourage users to share true
love stories. This generated highly interactive and widely disseminated content including proposal stories
at concerts and on snow-capped mountains several of which achieved million-level engagement
upgrading brand communication from one-way messaging to user co-creation.In terms of service extension DRCO continued to expand love-related service scenarios and introduced
exclusive services such as proposal planning and customized engagement ceremonies extending its
business scope to "accompanying important moments in love." During the Reporting Period the Company
witnessed more than 170000 expressions of true love and assisted in organizing over 15000 true love
declaration ceremonies. High-frequency high-quality emotional services further deepened user trust and
strengthened brand loyalty.During the Reporting Period several public figures chose DR to witness their emotional commitments at
key life moments such as proposals weddings and anniversaries. Olympic badminton mixed doubles
champion Huang Yaqiong and Liu Yuchen entered into marriage; Olympic weightlifting champion Liu
Huanhua proposed to his partner of six years after winning the title at the National Games of China; Huang
Zitao and Xu Yiyang held their wedding; Wu Chun customized a DR ring for his partner of twenty-nine
years; and Jing Chao held a proposal ceremony for his wife Li Lin on their eleventh wedding anniversary.These authentic love stories centered on long-term companionship and loyal commitment strongly align
with DR's brand philosophy and further reinforce the brand's social recognition and emotional resonance.
292025Annual Report of DR Corporation Limited
(4) Promoting true love-themed public welfare initiatives and scenario-based communication to
enhance brand value recognition
During the Reporting Period DRCO actively carried out true love-themed public welfare activities and
innovative scenario-based communication conveying its brand philosophy in ways closer to everyday life
and strengthening social value recognition.In May the Company launched the "DR Golden Rain" public welfare campaign. Gold products printed
with heartfelt messages were distributed to encourage the public to cherish their loved ones. The campaign
covered multiple cities nationwide and reached more than 5 million people promoting the natural
integration of the true love philosophy into daily life scenarios.During Valentine's Day the Company collaborated with Shenzhen Metro to create an immersive emotional
communication space. The project featured authentic user stories such as "receiving a large diamond ring
even after ten years of marriage" transforming the commuting environment of the metro into a platform
for brand emotional communication which enabled continuous brand message penetration in everyday and
fragmented scenarios and achieved an organic integration of brand value and social emotional value.
2. Product innovation: design- and R&D-driven approach to strengthen differentiated competitive
advantages
DRCO takes design and R&D as its core engine closely aligned with the strategic direction of brand
upgrading and market expansion. Centered on brand identification collection development and
premiumization the Company carries out systematic R&D and innovation continuously deepening brand
DNA accumulating patented technologies and iterating process standards. These efforts strengthen the
deep integration between products and core brand values building long-term differentiated competitive
barriers through R&D capabilities. In 2025 DRCO further intensified its R&D and innovation efforts. A
total of 148 new patents were authorized during the year including 139 design patents 5 domestic utility
model patents and 4 international utility model patents. The Company successfully launched 301 new
products during the year representing a year-on-year increase of 100.67% with the conversion efficiency
of R&D achievements steadily improving.
(1) Iterative upgrades of core product collections to enhance competitiveness of signature products
The Company continued to advance iterative innovation in its core engagement ring and wedding band
collections building a highly recognizable product portfolio through proprietary craftsmanship and
original design. The DR HEART set a core signature collection of the engagement ring category was
newly launched in June 2025. Featuring the proprietary free-setting technique the ring enables free
rotation and dual-wear functionality. The design language echoes the concept of "paying tribute to every
woman who loves freely" while comprehensively accommodating diverse wearing scenarios.
302025Annual Report of DR Corporation Limited
The YOU & ME collection of wedding bands with black and white diamonds a core collection in the
wedding band category innovatively adopts the Company's proprietary patented "Invisible Suspension
Setting" technique achieving both a visual and technical breakthrough by creating the effect of diamonds
appearing to float in mid-air. To further establish authoritative standards for black diamond products the
Company collaborated with the International Gemological Institute (IGI) to pioneer a grading and
certification system for black diamonds launching the industry's first certificate covering black diamond
attributes and color grading thereby building an industry-leading advantage through technical standards.
(2) Strategically expanding into the high-end bridal gold category to enhance the full-lifecycle love
product matrix
In the second half of 2025 DRCO strategically expanded into the high-end bridal gold segment launching
the "One Lifetime One Love" gold wedding band collection and the high-end bespoke "DR Qianjin Tiara"
bridal gold collection. This marks the Company's initial establishment of a full-lifecycle product matrix
covering engagement rings wedding bands high-end bridal gold and anniversary gifts. The Company has
thus extended strategically from a single proposal scenario to the entire love lifecycle upgrading its
business model from one-time purchases to long-term user companionship and full-lifecycle user
operations.The "Qianjin Tiara" collection deeply integrates traditional Chinese wedding culture with modern design
aesthetics. The signature design "Dragon Scale and Phoenix Feather" draws inspiration from the Nine-
Dragon Nine-Phoenix Crown of Empress Xiaoduan of the Ming Dynasty housed in the Palace Museum.
312025Annual Report of DR Corporation Limited
Featuring the classic form of nine dragon scales and nine phoenix feathers the design embodies the
auspicious symbolism that "the dragon and phoenix bring harmony" in traditional Chinese wedding culture.The collection adopts an innovative convertible structural design. Leveraging a self-developed precision
mechanism the pieces can be flexibly transformed among bracelet necklace brooch earrings pendant
and tiara forms balancing ceremonial presence with daily practicality and delivering the product value of
"multiple uses in one piece lifelong companionship."
Brooch
Pendant
The ultimate bridal gold collection
Earrings DR Qianjin Tiara
Bespoke bridal gold instantly transforms into a true
love tiara
Bridal gold for modern heiresses a premium choice
for celebrity weddings
Global launch of the year's most anticipated new
product
Necklace
The "One Lifetime One Love" collection is centered on the concept of "Love endures through comfort"
focusing on the essential requirement of wedding rings as everyday wear. The products adopt classic
silhouette designs and incorporate DRCO's proprietary ergonomic "Piano Master" ring shank patent
technology with an inner arc that naturally conforms to finger contours for lightweight and comfortable
wear. The metal surface further features an innovative finish inspired by traditional embroidery textures
enhancing refinement and premium feel. In addition the collection offers multiple material and gemstone
combinations accommodating both personalized expression and the preservation of classic design
traditions.One Lifetime One Love
Chinese-style romantic gold wedding bands
Love endures through comfort
(3) Continued breakthroughs in international design awards and further enhancement of the R&D
system
During the Reporting Period DRCO's product design capabilities continued to receive recognition from
international professional institutions. The DR ETERNAL RING Collection the Dragon Scale & Phoenix
Feather Collection and the Promise of Love Set received Honorable Mentions at the 2025 IDA Design
Awards. The DR Heart Love & Free Set DR PIXIU Collection and DR Qianjin Tiara (KING & QUEEN)
Collection won a total of 12 major international awards including the Gold Winner at the 2025 MUSE
Design Awards the 2025 New York Product Design Awards the 2025 iLuxury Awards the 2025 IDA
Design Awards and the SHOP! Design Awards. These awards covered multiple dimensions including
design innovation craftsmanship aesthetics and functional structure demonstrating globally leading
design and R&D capabilities. As of the end of the Reporting Period DRCO had accumulated 333 design
322025Annual Report of DR Corporation Limited
patents and 35 utility model patents. The number quality and technical barriers of its patents all rank
among the leading levels in the industry providing solid support for continuous product innovation and
long-term brand development.
3. Channel upgrade: dual enhancement of efficiency and experience
Based on the Company's established dual-track model of "Red Gold Stores + Black Gold Stores" DRCO
continued to develop a three-dimensional channel network covering global landmark locations core
commercial districts and high-potential cities. During the Reporting Period the Company focused on
"optimizing store layout and prioritizing high-value scenarios" promoting simultaneous improvements in
store efficiency and consumer experience through channel structure optimization store image upgrades
and operational model iterations.
(1) Upgrading store image to build immersive brand cultural experience spaces
In 2025 DRCO continued to advance the upgrading of offline stores under its "quality and efficiency
improvement" strategy. During the Reporting Period 78 Red Gold stores were renovated and upgraded
covering most first-tier and new first-tier cities further optimizing the channel structure. The upgrade
focused on integrating true love culture with high-end retail aesthetics with comprehensive enhancements
across three key dimensions: spatial functional layout service process standards and user interaction
experience. The Company transformed offline stores from traditional transaction venues into brand cultural
experience centers further aligning with the trends of immersive experience-based and personalized
consumption and strengthening the cultural resonance of offline stores and emotional connections with
users. The upgraded stores achieved significant operational improvements with average sales recording
strong year-on-year growth and outperforming the overall store network. The scaled replication of the
demonstration store operating model has achieved phased results.
332025Annual Report of DR Corporation Limited
DR Store in Maxland Shopping Mall Bao'an District Shenzhen
(2) Focusing on high-value channel deployment and continuously optimizing the channel network
structure
DRCO adheres to a channel strategy of "optimizing store layout and prioritizing high-value scenarios"
continuously consolidating its channel network toward high-potential locations. In Tier-1 and Tier-2 cities
the Company focuses on entering leading shopping malls such as SKP IFS and MixC strengthening its
presence in core commercial landmarks and enhancing brand reach and influence among mainstream
consumer groups. For Tier-3 and lower-tier cities the Company conducts scientific evaluation and precise
site selection based on multiple dimensions including demographic structure consumption potential and
commercial district tier. Resources are concentrated on cultivating high-quality markets aligned with the
brand positioning ensuring efficient matching between channel layout and consumer demand. During the
Reporting Period DRCO continued to close underperforming stores and optimize intra-city resource
allocation guiding customer traffic toward high-quality stores. These initiatives promoted the
transformation of the channel network toward quality enhancement with continuous improvement in
channel operating efficiency and single-store performance.DR Store in MixC Shenzhen Bay
(3) Building an end-to-end digital operations system to empower store efficiency improvement
Guided by the direction of "standardized operations intelligent services and digitalized experience"
DRCO continues to enhance its end-to-end digital operations system. Its core information systems have
342025Annual Report of DR Corporation Limited
passed the National Cybersecurity Multi-Level Protection Scheme Level 3 certification establishing a
solid foundation for stable business operations.The Company continues to strengthen its data infrastructure and has completed the integration of multi-
system data covering supply chain products and users enabling unified management of online and offline
membership information and real-time data feedback. This provides strong support for precision marketing
and full-lifecycle user management. In terms of operational standardization DRCO accelerates system
implementation. Based on mature operational experience from demonstration stores it has developed a
standardized operating model covering four modules: spatial layout product planning experience
enhancement and marketing promotion and initiated large-scale rollout of this model in the Reporting
Period. DRCO's intelligent service capabilities continue to improve. Its self-developed AI Coaching
System and AI Q&A Audit System have been fully deployed across all stores. Through real scenario
simulation and standardized assessment these systems effectively enhance the professional capabilities of
frontline service teams. After the implementation of the intelligent recommendation system based on user
preference analysis store inquiry response efficiency has improved significantly. In terms of customer
experience digitalization the Company launched the mobile terminal "WeiAiGo" for sales associates
integrating product search inventory checking intelligent recommendations and ordering functions to
enable an in-store one-stop service loop. In the pickup process DRCO introduced NFC technology and a
brand slogan wall to create interactive digital experiences further strengthening emotional connections
with users. In R&D digitalization the Company accelerates efficiency improvement through the
application of AI-assisted design technology reducing product prototyping cycles by approximately 70%
and enhancing product iteration speed and market responsiveness.All of the aforementioned digital systems are independently developed by the Company and integrated into
a unified data middle platform enabling full-domain connectivity and efficient synergy of user behaviors
transaction data and service processes. This has formed a set of digital assets that can be accumulated
repurposed and continuously improved providing strong momentum for sustained improvement in
channel efficiency and long-term high-quality development.
2. Revenue and Cost
(1) Composition of revenue
Overall revenue performance
Unit: RMB
20252024
YoY change
Amount As % of revenue Amount As % of revenue
Total revenue 1520123270.56 100% 1482423153.98 100% 2.54%
By industry
Jewelry 1503052226.80 98.88% 1474288180.73 99.45% 1.95%
Other businesses 17071043.76 1.12% 8134973.25 0.55% 109.85%
By product
Engagement rings 1134543007.27 74.63% 1135857760.62 76.62% -0.12%
Wedding bands 320576493.04 21.09% 296072560.15 19.97% 8.28%
Other jewelry
products 47932726.49 3.15% 42357859.96 2.86% 13.16%
352025Annual Report of DR Corporation Limited
Other businesses 17071043.76 1.12% 8134973.25 0.55% 109.85%
By region
East China 480359438.51 31.60% 499425090.14 33.69% -3.82%
North China 220999574.33 14.54% 216919290.95 14.63% 1.88%
South China 215030089.35 14.15% 191968119.17 12.95% 12.01%
Southwest China 160454394.05 10.56% 172472211.45 11.63% -6.97%
Central China 121624910.64 8.00% 127297893.60 8.59% -4.46%
Northwest China 113242464.43 7.45% 115045085.78 7.76% -1.57%
Northeast China 110591046.41 7.28% 108395114.38 7.31% 2.03%
Hong Kong Macao
and Taiwan 3791718.09 0.25% 3525062.07 0.24% 7.56%
Overseas 94029634.75 6.19% 47375286.44 3.20% 98.48%
By sales model
Online self-operated
channel 309557792.01 20.36% 242014161.01 16.33% 27.91%
Offline direct-
operated stores 1070269034.61 70.41% 1115306202.70 75.23% -4.04%
Offline joint-operated
stores 123225400.18 8.11% 116967817.02 7.89% 5.35%
Other businesses 17071043.76 1.12% 8134973.25 0.55% 109.85%
(2) Industries products regions and sales models that account for more than 10% of DRCO's
revenue or operating profit
?Applicable □Not applicable
Unit: RMB
Revenue Cost of revenue Gross margin YoY change in YoY change in YoY change inrevenue cost of revenue gross margin
By industry
Jewelry 1503052226.80 495394235.70 67.04% 1.95% -2.44% 1.48%
By product
Engagement
rings 1134543007.27 332666142.16 70.68% -0.12% -5.72% 1.74%
Wedding bands 320576493.04 132714096.20 58.60% 8.28% 3.74% 1.81%
362025Annual Report of DR Corporation Limited
By region
North China 220999574.33 73271401.32 66.85% 1.88% 1.02% 0.29%
East China 480359438.51 161744664.55 66.33% -3.82% -4.38% 0.20%
South China 215030089.35 85854357.26 60.07% 12.01% 16.21% -1.45%
Southwest China 160454394.05 52934235.00 67.01% -6.97% -5.92% -0.37%
By sales model
online self-
operated 309557792.01 103352464.79 66.61% 27.91% 15.31% 3.65%
offline direct-
operated 1070269034.61 349184528.07 67.37% -4.04% -7.38% 1.17%
In the event that the statistical calibre of the Company's principal operating data has been adjusted during the Reporting Period the
Company's principal operating data for the most recent year have been restated in accordance with the calibre as of the end of the
Reporting Period.□Applicable?Not applicable
(3) Whether DRCO's sales revenue from physical goods is more than that from services
?Yes □No
Industry
Item Unit 2025 2024 YoY change
classification
Sales Pieces 234070 260153 -10.03%
Production
Jewelry1
Inventory Pieces 221887 200901 10.45%
Procurement Pieces 255056 235072 8.50%
Note: 1. The statistical data don’t cover product accessories (such as ear studs chain tags etc.) as well as low-value silver and
copper accessories. The sales volume include post-sale transactions of goods and gold melting transactions.Explanation of reasons for changes of 30% or more year-on-year in relevant data
□Applicable ?Not applicable
(4) Performance status of major sales contracts and major procurement contracts signed by the
Company as of the end of the Reporting Period
□Applicable?Not applicable
(5) Composition of cost of revenue
Industry and product classification
Unit: RMB
20252024
Industry
classification Item YoY change
Amount As % of cost of As % of cost ofrevenue Amount revenue
372025Annual Report of DR Corporation Limited
Jewelry Cost of revenue 495394235.70 95.33% 507787350.88 99.25% -2.44%
Other businesses Cost of revenue 24250908.54 4.67% 3831688.94 0.75% 532.90%
Unit: RMB
20252024
Product
classification Item YoY change
Amount As % of cost of As % of cost ofrevenue Amount revenue
Engagement rings Cost of revenue 332666142.16 64.02% 352833294.89 68.96% -5.72%
Wedding bands Cost of revenue 132714096.20 25.54% 127933815.61 25.01% 3.74%
Other jewelry
products Cost of revenue 30013997.34 5.78% 27020240.38 5.28% 11.08%
Other businesses Cost of revenue 24250908.54 4.67% 3831688.94 0.75% 532.90%
Note: During the Reporting Period total cost of revenue amounted to RMB 519.65 million representing an increase of 1.57%
compared with the same period of the previous year. The increase was primarily attributable to the 2.54% growth in the
Company's revenue during the Reporting Period which led to a corresponding increase in cost of revenue.
(6) Whether there were changes in the scope of consolidation during the Reporting Period
?Yes □No
During the Reporting Period the Company newly established one subsidiary and one sub-subsidiary and
deregistered two subsidiaries as detailed below:
Company name Date of Method for changing the Shareholdingestablishment/deregistration consolidation scope ratio
DR Design (Shenzhen) Co. Ltd. 2025/3/31 Newly established in 2025 100%
DARRY RING JEWELRY (MALAYSIA) SDN. BHD. 2025/11/27 Newly established in 2025 100%
Henan DR Jewelry Co. Ltd. 2025/7/11 Deregistered in 2025 100%
Hangzhou DR True Love Jewelry Co. Ltd 2025/7/3 Deregistered in 2025 100%
(7) Material changes or adjustments in the Company's business products or services during the
Reporting Period
□Applicable?Not applicable
(8) Key sales customers and suppliers
Key sales customers
Total sales amount from the top five customers (RMB) 11342137.69
Percentage of total annual sales attributable to the top five customers 0.73%
Related-party sales within total sales from the top five customers as a 0.00%
382025Annual Report of DR Corporation Limited
proportion of total annual sales
Information about the top five customers
No. Customer name Sames (RMB) As % of total annual sales
1 Customer 11 8393792.53 0.55%
2 Customer 22 1244468.21 0.08%
3 Customer 3 641398.20 0.04%
4 Customer 4 531504.42 0.03%
5 Customer 5 530974.33 0.03%
Total -- 11342137.693 0.73%
Notes:
1. This customer mainly purchases the Company's raw materials.
2. This customer mainly purchases the Company's raw materials.
3. All sales amounts in the table are exclusive of tax.
Explanation of other information regarding key customers
□Applicable?Not applicable
Key suppliers
Total procurement amount from the top five suppliers (RMB) 451967819.35
Percentage of total annual procurement attributable to the top five
suppliers 62.72%
Related-party procurement within total annual procurement from the top
five suppliers as a proportion of total annual procurement 0.00%
Information about the top five suppliers
No. Supplier name Procurement amount (RMB) As % of total annual procurement
1 Supplier 1 358822020.60 49.80%
2 Supplier 2 29538633.07 4.10%
3 Supplier 3 24276562.29 3.37%
4 Supplier 4 20716362.41 2.87%
392025Annual Report of DR Corporation Limited
5 Supplier 5 18614240.98 2.58%
Total -- 451967819.351 62.72%
Note: All purchase amounts in the table are exclusive of tax.Explanation of other information regarding key suppliers
□Applicable?Not applicable
Revenue from trading business accounted for more than 10% of total revenue during the Reporting Period
□Applicable?Not applicable
3. Expenses
Unit: RMB
2025 2024 YoY change Explanation of materialchanges
Primarily due to the
Company's optimization of
low-potential stores
Selling expenses 751560974.17 815592363.96 -7.85% resulting in year-on-year
decreases in store-related
rent renovation and
personnel costs.Administrative expenses 143704100.95 143151851.03 0.39%
Primarily due to the year-
on-year increase in
Financial expenses 46556728.33 8249160.02 464.38% exchange differencesarising from translation of
foreign currency financial
statements.R&D expenses 14717312.04 17924589.44 -17.89%
4. R&D investment
?Applicable □Not applicable
Expected impact on the
Name of key R&D project Project purpose Project progress Intended objectives Company's future
development
This project aims to build an
intelligent cross-border customs To achieve configurable
declaration management system customs declaration Reduce compliance risksDevelopment of a rule information automated and operational costs
engine-based cross-border to enable configurable customs
logistics data collaboration declaration information
document generation and improve supply chain
In progress full-process status tracking responsiveness and
and automated customs automated document generation
declaration system and full-process status tracking
meeting standardized provide strong digital
thereby improving customs operational requirements support for the Company's
clearance efficiency and across multiple countries global expansion.compliance. and ports.Development of an omni- This project aims to integratemulti-dimensional customer data To break down data silos
Facilitate private traffic
channel intelligent across the entire customer enable visualization and
accumulation strengthen
customer data integration In progress operability of customer customer relationship
and insights platform lifecycle establish a unifiedcustomer view support precision assets and improve
management drive
business growth and
marketing and refined operations customer insight and sales enhance user engagement
402025Annual Report of DR Corporation Limited
and unlock long-term customer conversion efficiency. with the brand.value.Improve member
This project aims to build an To achieve full-process repurchase rate and sales
Development of a unified integrated membership points digital management of conversion promote the
omni-channel membership and benefits operation system In progress membership points tiers transformation towardpoints and benefits connect multi-channel data and and benefits and establish a refined membership
management system enhance member engagement clear membership growth operations and strengthen
and loyalty. pathway. the Company's private-
domain user base.Advance the brand's
This project aims to integrate To enable functions such as expansion into the
Development of a touch- emotional interaction and remote emotional interaction emotional technology
sensor-based interactive intelligent monitoring and health monitoring align sector enrich the product
smart wedding band technologies to develop smart In progress with the brand's true love portfolio strengthen
system wearable products for couples certification system and emotional connection withextending the brand's "true love" meet product performance users and build
philosophy into digital scenarios. requirements. differentiated competitive
advantages.Comprehensively enhance
This project aims to build an operational insight and
Development of a integrated data-driven decision- To enable intelligent decision-making
visualized business making platform that analysis of operational data efficiency optimize
decision-making platform consolidates full-chain visualized monitoring and operating strategies
supporting multi-source operational data and provides In progress risk early warning strengthen digital
data integration and real-time and accurate decision empowering the digital operation capabilities and
intelligent analysis support for management at all transformation of the retail support the long-term
levels. business. implementation of the
Company's strategy.This project aims to enhance
product development and design To increase investment in
Diamond jewelry R&D capabilities to deal with market
R&D and design; expand the Align with end-consumer
and creative design center competition; further design
in-house dedicated R&D and needs and enhance the
construction project classic products to strengthen
In progress design team; and enhance Company’s brand
brand recognition; introduce the Company’s independent influence.scarce IP to elevate brand R&D and design
positioning capabilities.R&D staff
2025 2024 YoY change
Number of R&D staff 79 93 -15.05%
R&D staff as % of labor force 3.96% 4.23% -0.27%
Education background of R&D staff
Bachelor's degree 46 61 -24.59%
Master's degree 4 4 0.00%
Junior college degree 29 28 3.57%
Age distribution of R&D staff
<30ys 32 43 -25.58%
412025Annual Report of DR Corporation Limited
30-40ys 33 41 -19.51%
>40ys 14 9 55.56%
R&D investment and percentage in revenue in last three years
202520242023
Total R&D investment (RMB) 14717312.04 17924589.44 21715215.75
R&D investment as a percentage
of revenue 0.97% 1.21% 1.00%
Capitalized R&D expenditures
(RMB) 0.00 0.00 0.00
Capitalized R&D expenditures as
a percentage of total R&D 0.00% 0.00% 0.00%
investment
Capitalized R&D expenditures as
a percentage of net profit for the 0.00% 0.00% 0.00%
period
Reasons and effects of material changes in the composition of R&D staff
□Applicable ?Not applicable
Reasons for material changes in R&D investment as a percentage of revenue compared with the previous
year
□Applicable ?Not applicable
Explanation of reasons for material changes in the R&D capitalization rate and its reasonableness
□Applicable ?Not applicable
5. Cash flow
Unit: RMB
Item 2025 2024 YoY change
Subtotal of cash inflows from
operating activities 1616819294.88 1604267471.58 0.78%
Subtotal of cash outflows from
operating activities 1893764693.21 1288111632.50 47.02%
Net cash flows from operating
activities -276945398.33 316155839.08 -187.60%
Subtotal of cash inflows from
investing activities 7529752403.75 6809000873.81 10.59%
422025Annual Report of DR Corporation Limited
Subtotal of cash outflows from
investing activities 7233674750.99 6722665339.71 7.60%
Net cash flows from investing
activities 296077652.76 86335534.10 242.94%
Subtotal of cash inflows from
financing activities 940253818.60 445995680.62 110.82%
Subtotal of cash outflows from
financing activities 844547771.10 928722890.98 -9.06%
Net cash flows from financing
activities 95706047.50 -482727210.36 119.83%
Net increase in cash and cash
equivalents 115645789.10 -87176642.73 232.66%
Explanation of key factors contributing to material YoY changes in relevant data
?Applicable □Not applicable
(1) The increase in cash inflows from operating activities was mainly due to the increase in product sales
revenue during the Reporting Period;
(2) The increase in cash outflows from operating activities was mainly due to concentrated payments upon
maturity of gold leasing business and increased procurement during the Reporting Period;
(3) The increase in cash inflows from investing activities was mainly due to the recovery of investment
principal of wealth management products upon maturity and increase in returns from wealth management
products during the Reporting Period;
(4) The increase in cash outflows from investing activities was mainly due to increased payments for
investment principal of wealth management products during the Reporting Period;
(5) The increase in cash inflows from financing activities was mainly due to increased bill discounting
borrowings during the Reporting Period;
(6) The decrease in cash outflows from financing activities was mainly due to reduced shopping mall
rental payments during the Reporting Period.Explanation of reasons for the material difference between the net cash flows from operating activities
during the Reporting Period and the net profit for the year
?Applicable □Not applicable
(1) Depreciation amortization and provisions for asset impairment recognized during the period totaled
RMB 186.89 million. Such non-cash expenses reduced profit but did not result in cash outflows;
(2) Net gains and losses related to investing and financing activities during the period amounted to RMB
133.96 million (including returns from wealth management products financial expenses etc.). These gains
and losses affected net profit but the corresponding cash flows did not belong to operating activities;
(3) Changes in operating receivables and payables resulted in a net cash outflow of RMB 223.90 million
mainly due to the payment of land consideration for the headquarters project during the period which led
to a decrease in other payables;
(4) Inventory increased by RMB 245.08 million during the period occupying operating funds and resulting
in a corresponding increase in cash outflows from operating activities.
432025Annual Report of DR Corporation Limited
In summary affected by non-cash gains and losses non-operating gains and losses and changes in
working capital (operating receivables and payables and inventories) there was a significant difference
between net profit and net cash flows from operating activities during the period.V. Non-primary Business
?Applicable □Not applicable
Unit: RMB
Amount As % of total profit Reasons Whether sustainable
Mainly due to the
investment income
Investment income 20691165.50 13.93% generated from theredemption of bank wealth No
management products
upon maturity.Mainly due to gains on
changes in fair value
Gains/losses from changes 147078297.61 99.04% arising from financialin fair value assets held for trading No
confirmed during the
Reporting Period.Mainly due to the reversal
of prior inventory
impairment provisions and
Asset impairments 1687236.92 1.14% recognition of impairment No
losses on long-term assets
during the Reporting
Period.Mainly due to
Non-operating income 1552944.61 1.05% compensation payments No
received by DRCO.Mainly due to breach
Non-operating expenses 6580987.46 4.43% penalties and overdue No
fines.Mainly due to losses on
Gains on disposal of assets -583858.66 -0.39% disposal of long-termassets during the Reporting No
Period.Mainly due to immediate
Other incomes 12452164.33 8.39% refund of VAT levied ondiamond imports and No
government subsidies.Mainly due to the
provision of specific bad
Loss on credit impairment -74552.70 -0.05% debt allowance for No
receivables deemed
unlikely to be recovered.
442025Annual Report of DR Corporation Limited
VI. Analysis of Assets and Liabilities
1. Material changes in the composition of assets
Unit: RMB
At the end of 2025 At the beginning of 2025
Change in Explanation of
As % of total As % of total proportion significant changesAmount assets Amount assets
Cash and cash
equivalents 255453050.05 3.35% 139789945.04 1.85% 1.50%
Accounts receivable 76231588.58 1.00% 80913074.97 1.07% -0.07%
Inventories 707871123.88 9.27% 447453664.80 5.92% 3.35%
Mainly due to new
Long-term equity 38818109.40 0.51% 0.51% investments ininvestments associates during the
Reporting Period.Fixed assets 5614795.86 0.07% 8468744.76 0.11% -0.04%
Mainly due to
expenditures incurred
Construction in for new land projects
progress 46581024.88 0.61% 0.61% and capitalizedamortization of land
use rights during the
Reporting Period.Right-of-use assets 170335409.88 2.23% 152164147.57 2.01% 0.22%
Mainly due to an
increase in bill
discounting
Short-term borrowings 790302899.14 10.35% 339509472.61 4.50% 5.85% borrowings and credit
borrowings as of the
end of the Reporting
Period.Contract liabilities 116030178.26 1.52% 112689599.45 1.49% 0.03%
Lease liabilities 70683200.60 0.93% 57720087.24 0.76% 0.17%
Mainly due to an
increase in fixed-term
Non-current assets due wealth management
within one year 629841781.93 8.25% 433485362.17 5.74% 2.51% products maturingwithin one year as of
the end of the
Reporting Period.Mainly due to a
decrease in fixed-term
wealth management
Debt investments 20913414.28 0.27% 569885924.01 7.55% -7.28% products with
maturities of over one
year as of the end of
the Reporting Period.Deferred tax assets 40793386.78 0.53% 12604433.20 0.17% 0.36% Mainly due to an
increase in deferred
452025Annual Report of DR Corporation Limited
tax assets recognized
by the parent company
from deductible losses
during the Reporting
Period.Mainly due to
Other payables 57528339.01 0.75% 284488227.25 3.77% -3.02% payments made forland use rights during
the Reporting Period.Mainly due to an
increase in bank
acceptance bills issued
Notes payable 73961196.53 0.97% 32833149.16 0.43% 0.54% to suppliers for
procurement as of the
end of the Reporting
Period.Mainly due to the
repayment upon
Financial liabilities 144722831.86 1.92% -1.92% maturity of goldheld for trading leasing arrangements
without renewal during
the Reporting Period.Mainly due to the
recognition of
Treasury shares 3999996.00 0.05% 0.05% repurchase obligationsfor newly granted
restricted shares during
the Reporting Period.Mainly due to foreign
Other comprehensive
income 4108128.93 0.05% 1933804.33 0.03% 0.02%
currency translation
differences during the
Reporting Period.High proportion of overseas assets
□Applicable?Not applicable
2. Assets and liabilities measured at fair value
?Applicable □Not applicable
Unit: RMB
Gains and Impairm
losses on Cumulative ent
Opening changes in fair value accrued Amount of Amount ofItem amount fair value change during purchase in disposal in Other changes Closing amountfor the recognized the current period current period
current in equity Reportin
period g Period
Financial assets
1. Held-for-
trading
financial
assets 457930148 16717924 4717444791. -
(excluding 7.22 4.33 4596901571.55 27 11404567.25 4614532944.58
derivative
financial
assets)
5. Other non-
current 403675066. 21016564.financial 37 47 233640750.00 334357406.32
-
14759816.77309215157.75
assets
462025Annual Report of DR Corporation Limited
Subtotal of
financial 498297655 18819580 4830542321.55 5051802197. -
assets 3.59 8.80 59 26164384.02
4923748102.33
Total 498297655 188195803.59 8.80 4830542321.55
5051802197.-
5926164384.024923748102.33
Financial 144722831. -
liabilities 86 41117511. 109740530.97 213345851.64 0.00 0.0019
Contents of other changes
Other changes: Mainly due to exchange gains and losses arising from foreign currency-denominated
wealth management products during the Reporting Period.Whether there were material changes in the measurement attributes of the Company's major assets during
the Reporting Period
□Yes?No
3、Restricted assets as of the end of the Reporting Period
As at December 31 2025 the Group's restricted cash amounted to RMB 20292.72 (December 31 2024:
RMB 2976.81) primarily due to restrictions on fund transfers arising from deposits held as security
deposits and changes in bank account types.VII. Investment Status Analysis
1. Overall situation
?Applicable □Not applicable
Investment in the Reporting Period (RMB) Investment in the same period last year (RMB) Change
7233674750.996722665339.717.60%
2. Significant equity investments acquired during the Reporting Period
?□Applicable?Not applicable
3. Significant non-equity investments pending during the Reporting Period
?Applicable □Not applicable
Unit: RMB
Cumulati Reasons
Whether Industry Cumulative ve
for
failure
Investme it is involved
Investment actual realized to meet Disclosu
Project nt fixed in the
amount for investment Sourc Project Expect returns as re date Disclosure
name asset investme the as of the e of progre ed of the
planned (if reference (if
method investme nt Reporting end of the funds ss returns end of
progress
Period Reporting the and
applicabl applicable)
nt project Period Reportin expecte
e)
g Period dreturns
Announcement
Self- on the ProgressHeadquart Not Novemb of Signing a
ers base Self- Jewelry 46581024. 46581024. owne 11.12
project built
Yes industry 88 88 d % applicab er 27 State-owned
funds le 2024 ConstructionLand Use Rights
Grant Contract
Investment in
472025Annual Report of DR Corporation Limited
Project
Construction
and Acceptance
of Related-party
Guarantees
disclosed on
www.cninfo.co
m.cn
(Announcement
No. 2024-058)
Total -- -- -- 46581024. 46581024.88 88 -- -- -- -- --
4. Investment in financial assets
(1) Investment in securities
□Applicable?Not applicable
There were no securities investments during the Reporting Period.
(2) Investment in derivatives
?Applicable □Not applicable
1) Derivative investments for hedging purposes during the Reporting Period
?Applicable □Not applicable
Unit: RMB0'000
Period-end
Cumulative
Initial Fair value fair value Purchases
investment
Type of derivative Sales duringinvestment Opening gains/losses changes during the the Reporting Closing
amount as a
investment amount Reporting amount percentage of theamount for the period recognized in
equity Period
Period Company's
period-end net
assets
Gold forward
contract 0 0 240.56 0 5032.31 5272.87
100.00%
Total 0 0 240.56 0 5032.31 5272.87 0 0.00%
Accounting
policies and
specific accounting
principles for
hedging activities
during the For the accounting policies and accounting principles of the Company's hedging activities please refer to "32. Other
Reporting Period Significant Accounting Policies and Accounting Estimates" under "V. Significant Accounting Policies and Accounting
and whether there Estimates" in "Part VIII Financial Reports" of this report.have been material
changes compared
with the previous
Reporting Period
Explanation of
actual gains and
losses during the The actual gains from derivative investments during the Reporting Period amounted to RMB 2405600.Reporting Period
Explanation of The financial derivative contracts entered into by the Company for its hedging activities are linked to products related to the
hedging Company's production and operations thereby reducing the risk of price fluctuations and achieving the expected risk
effectiveness management objectives.
482025Annual Report of DR Corporation Limited
Source of funds for
derivative Own funds
investments
(I) Risk analysis
DRCO and its controlling subsidiaries conduct gold derivative transactions with the primary objective of hedging against risks
arising from significant fluctuations in gold prices and adhere to prudent and safe trading principles. However certain risks
remain in the course of business operations including:
1. Operational risk: Derivative transactions are highly specialized and complex. Inadequate internal control and risk
management mechanisms or human operational errors may lead to risks.
2. Technical risk: System failures caused by software or hardware issues may result in delays interruptions or data errors
in trade execution thereby giving rise to related risks.
3. Market risk: Influenced by various factors such as domestic and international economic policies economic conditions
and geopolitical events gold derivative market conditions may fluctuate significantly potentially resulting in price
Risk analysis and volatility risk and trading losses.description of
control measures 4. Other risks: Relevant businesses may be affected by global political war economic and legal changes or by
for derivative counterparty defaults which may also give rise to risks.positions held
during the
Reporting Period
(including but not (II) Risk control measures
limited to market
risk liquidity risk 1. DRCO strictly controls the trading scale of derivative transactions to ensure that transactions are conducted within the
credit risk authorization limits approved by the Board of Directors and the general meeting of shareholders.operational risk
and legal risk) 2. The Company has formulated the Measures for the Management of Financial Derivative Transactions which clearlydefine operating principles approval authority and risk control mechanisms to standardize business operations and
mitigate related risks.
3. DRCO adheres to a prudent principle in selecting qualified financial institutions for cooperation in order to control
counterparty credit risk and performance risk. A comprehensive risk management system and internal control
mechanism for gold raw material trading have been established to ensure coverage of ex-ante prevention in-process
monitoring and ex-post management. The Company continuously strengthens analysis and research on economic
policies and conditions as well as changes in the market environment and adjusts investment strategies and scale in a
timely manner.
4. The Board of Directors has authorized the Audit Committee to review the necessity feasibility and risk control of
derivative transactions. The internal audit department is responsible for supervising and verifying the implementation of
derivative trading activities. Regular and ad hoc audits are conducted on actual operations approval procedures fund
usage and accounting information with reports submitted to the Audit Committee.Changes in the
market price or fair
value of invested
derivatives during
the Reporting
Period and the The fair value of the gold forward contracts held by the Company is determined based on the settlement price of the
analysis of corresponding contracts on the Shanghai Gold Exchange.derivative fair
value including the
specific methods
assumptions and
parameters used
Litigation status (if
applicable) Not applicable
Date of Board
announcement
disclosing approval
of derivative April 26 2025
investments (if
any)
Note: 1. Physical delivery upon contract expiration.
492025Annual Report of DR Corporation Limited
2) Derivative investments for speculative purposes during the Reporting Period
□Applicable ?Not applicable
The Company did not engage in derivative investments for speculative purposes during the reporting
period.VIII. Disposal of Material Assets and Equity Interests
1. Disposal of material assets
□Applicable?Not applicable
The Company did not dispose of any material assets during the Reporting Period.
2. Disposal of material equity interests
□Applicable?Not applicable
IX. Analysis of Major Subsidiaries and Associates
?Applicable □Not applicable
Information about major subsidiaries and associates that may influence DRCO's net profit by 10% or more
Unit: RMB
Company Company Main Registered Operating
name type business capital Total assets Net assets Revenue profit Net profit
Shenzhen
Love Only
AI Cloud Subsidiar IT services 25000000.0 177300924.0 129130412.5 113733822.1 90604204.6 67719867.8
Technology y 0 1 7 0 0 0
Co. Ltd.1
Supply
chain
Shenzhen management
Darry R&D and
Commercial Subsidiar designcustomized 10000000.0 124305261.9 48798743.31 119693891.8 77929974.7 66232441.5Managemen y
t Services product
09800
Co. Ltd. services andrelated
supporting
services
Note: 1 Based on standalone financial statements.The acquisition and disposal of subsidiaries during the Reporting Period
?Applicable □Not applicable
Company name Method of acquiring and disposing ofsubsidiaries during the Reporting Period Impact on overall operation and performance
DR Design (Shenzhen) Co. Ltd. Established through investment No material impact
DARRY RING JEWELRY (MALAYSIA)
SDN. BHD. Established through investment No material impact
502025Annual Report of DR Corporation Limited
Henan DR Jewelry Co. Ltd. Deregistered No material impact
Hangzhou DR True Love Jewelry Co. Ltd. Deregistered No material impact
Explanation of major subsidiaries and associates
1. The subsidiary Love Only AI is primarily engaged in information technology services. During the
Reporting Period it recorded a net profit of RMB 67.72 million representing a decrease of 12.47%
compared with the same period of the previous year.
2. The subsidiary Shenzhen Darry Commercial Management Services Co. Ltd. (Darry Qianhai) is
primarily engaged in supply chain management R&D and design customized product services and
related supporting services. During the Reporting Period it recorded a net profit of RMB 66.23 million
representing a decrease of 10.13% compared with the same period of the previous year.X. Structured Entities under the Control of DRCO
□Applicable?Not applicable
XI. Outlook for the Company's Future Development
In 2025 DRCO made phased progress in brand communication product innovation and global expansion
laying a solid foundation for its strategic upgrade. In 2026 the Company will comprehensively advance its
core objectives of "one consolidation and two breakthroughs." "One consolidation" refers to continuously
strengthening the Company's leading global position in engagement rings focusing on enhancing user
experience and consolidating the strategic value and influence of the DR brand in the proposal scenario."Two breakthroughs" refer to driving breakthroughs in two key product categories—wedding bands and
high-end bridal gold collections—leveraging the brand advantages and user base accumulated in the
proposal scenario to extend from the proposal scenario to the full lifecycle of love.(I) Development Strategy
The DR brand is committed to the mission of "helping more people express love making love last
forever" striving to become the world's leading high-end wedding jewelry brand. Guided by the core spirit
of "One Love One Lifetime" the Company systematically advances four strategic directions: at the brand
level it is upgrading from a diamond ring specialist brand to a new luxury lifestyle brand grounded in the
values of true love; at the scenario level it is extending from the proposal scenario to a full coverage of the
love lifecycle including proposal marriage and post-marriage occasions such as anniversaries birthdays
and festivals; at the product category level it is expanding from a diamond-ring-focused single category to
a diversified jewelry portfolio including diamond rings wedding bands and high-end bridal gold; and at
the market level it is establishing a global strategic layout with Greater China Europe and the United
States as core markets and Southeast Asia and other emerging markets as diversified growth engines.(II) 2026 Operating Plan
In 2026 DRCO will focus on four strategic directions—brand upgrading scenario expansion product
category expansion and globalization—and systematically advance the following key initiatives:
1. Brand building: from diamond ring expert to true love lifestyle brand
Based on the brand philosophy of "the sole true love in one life" and the core spirit of "One Love One
Lifetime" DRCO will upgrade its single purchasing rule into a value system of emotional commitment.Through content enhancement store upgrading product development and reputation building the
Company aims to transform from a diamond ring specialist brand into a new luxury lifestyle brand
grounded in the value of true love. Accordingly the Company's strategic positioning will evolve from the
512025Annual Report of DR Corporation Limited
No. 1 diamond ring brand for proposals to a new luxury lifestyle brand grounded in the value of true love
with the ambition of becoming the world's No. 1 high-end wedding jewelry brand.In 2026 DRCO will leverage AI technology to empower brand content creation and build a diversified
communication system covering short-video platforms e-commerce platforms social media platforms
and communities. The brand philosophy will be embedded across the entire value chain including product
design R&D production and services forming a closed-loop brand value system from philosophy to
product to retail experience. Meanwhile focusing on user experience enhancement enriched brand content
and strengthened brand image the Company will optimize in-store ceremonial delivery services and
spatial design to continuously enhance brand influence.
2. Product category and scenario expansion: strengthening core advantages and achieving strategic
breakthroughs
Centered on the "one consolidation" the Company will continue to consolidate its global leading position
in engagement rings with a focus on improving user experience. Product upgrades will be systematically
advanced while ceremonial delivery services will be further optimized. In 2025 DRCO served over
170000 proposal users and facilitated more than 15000 proposal ceremonies. Building on this foundation
the Company will continue to enhance the strategic value and influence of the proposal scenario in 2026.While consolidating core advantage in engagement rings centered on the "two breakthroughs" the
Company will strategically expand into wedding bands and high-end bridal gold collections. In the
wedding band category leveraging core collections such as "YOU&ME" the Company will develop
signature products with distinct brand identity through material innovation craftsmanship breakthroughs
and design enhancements. In the high-end bridal gold category led by the "Qianjin Tiara" and "One
Lifetime One Love" collections the Company will integrate international design concepts with traditional
Chinese craftsmanship to build a unique gold aesthetic system and continuously enrich its product
portfolio.
3. Globalization: building a global market network
The unique commitment to love expression of DR brand is inherently universal representing the highest
standard of emotional commitment and thus possesses both scarcity and luxury attributes. DR's relentless
pursuit of the ultimate expression of true love supported by extensive brand communication and
blockchain technology has earned global recognition for this brand philosophy. In overseas markets
leveraging its distinct value proposition and unique brand narrative the brand has precisely reached and
deeply resonated with consumers who identify with this philosophy sparking broad emotional resonance
and public discourse.In 2018 DR opened its flagship boutique in the prestigious Carrousel du Louvre Shopping Mall in Paris
marking its first step in global expansion. At the same time the Company established a design center in
France and collaborated with top global designers to continuously shape an international brand image.Following several years of cultivation and refinement by the overseas online team DR has built a solid
foundation for global offline expansion. In 2025 DR's U.S. standalone website recorded over 15 million
visits and its total followers across overseas social media platforms including Instagram exceeded 1
million. Brand-related topics such as "Will you Darry me" have repeatedly trended on social media
platforms such as TikTok and its distinctive philosophy has resonated strongly with young consumers
worldwide.Globalization is a core strategic direction for DR's future development. The brand value and assets
accumulated in the Chinese market together with the differentiated brand perception formed through
overseas social media in recent years jointly constitute a solid foundation for DR's globalization. Given
that DR users place high importance on ceremonial experiences and offline engagement physical
experience stores become a critical medium for enhancing user experience and strengthening brand
perception. 2026 will be a pivotal year for DR's global offline expansion with planned store openings in
the United States and Southeast Asia followed by gradual expansion into Europe and other emerging
markets steadily building a global retail network.
522025Annual Report of DR Corporation Limited
4. Retail operations: improving traffic conversion efficiency
In 2026 DRCO will focus on improving traffic conversion efficiency in its retail operations continuously
enhancing the quality of retail operations and terminal profitability.In channel development the Company will adhere to a strategy of "stabilizing growth enhancing brand
momentum optimizing store replacement and controlling expense ratios" continuously optimizing its
retail network layout upgrading store locations to core business districts and high-end commercial
complexes and forming regional clusters in key cities. A scientific rental evaluation system and a
standardized replicable site selection model will be established to improve channel expansion efficiency
and operational effectiveness.In consumer conversion DRCO will promote a full-chain upgrade of product experience. Through
scenario-based displays precision recommendations and dynamic replenishment the Company will shift
from standardized product presentation to emotionally driven consumption scenarios and integrate
customized services into terminal operations forming a closed-loop product management system from
consumer insight to in-store presentation. In addition standardized operating manuals will be implemented
to enhance execution consistency and overall conversion efficiency.In omni-channel operations DRCO will leverage platforms such as Xiaohongshu and Douyin to drive
online traffic to offline stores and promote word-of-mouth communication through high-quality services.Meanwhile focusing on key service touchpoints such as customer reception product customization and
ceremonial delivery the Company will establish a training system centered on emotional interaction and
service experience empowering retail teams to continuously improve service quality and supporting the
sustainable development of retail operations.(III) Risks and Countermeasures
1. Risk of dilution of brand reputation and core value
Brand influence is a key driver of the Company's sustained business growth. DRCO's core assets lie in its
brand philosophy of "the sole true love in one life" and its unique purchasing rule that "You Can Only Buy
for One Person" which together establish a strong competitive barrier. During the process of brand
upgrading product category expansion and global expansion any deviations in operational execution
lapses in rule enforcement insufficient user reputation management or failure of new products and
scenarios to effectively convey the brand's core values may result in damage to brand reputation and a
decline in user trust materially affecting the Company's operations. In the context of social media the
rapid dissemination of negative information may further amplify such risks.Mitigation measures: DRCO will adhere to its original brand mission and strictly implement global unified
identity verification and purchasing rule. Relying on a self-developed blockchain-based information
management system the Company ensures the uniqueness and tamper-proof nature of purchase records. In
2025 this system passed the National Cybersecurity Multi-Level Protection Scheme Level 3 certification
providing technological assurance for brand credibility. In product category expansion and scenario
extension the Company remains committed to "true love" as its core value and has established a review
mechanism for new product value propositions to ensure alignment with the brand philosophy. DRCO has
also established a comprehensive public opinion monitoring and rapid response mechanism to dynamically
track indicators such as brand-related keyword search volume and social media sentiment index
proactively safeguarding brand reputation. In addition the Company continues to strengthen emotional
connections with users through authentic user stories and "true love" public welfare initiatives.
2. Risk of macroeconomic fluctuations and weaker-than-expected consumer demand
Jewelry as a discretionary consumer product is cyclical to a certain extent. A slowdown in
macroeconomic growth lower-than-expected growth in disposable income or declining consumer
confidence may suppress the willingness and ability of the target customer group to spend thereby
adversely affecting the Company's revenue. The current global economic environment remains complex
and volatile and the foundation for domestic economic recovery remains to be consolidated creating
uncertainties in the pace of consumer market recovery.
532025Annual Report of DR Corporation Limited
Mitigation measures: DRCO will maintain its differentiated brand positioning and continue to deepen the
brand's emotional value strengthening consumers' identification with and loyalty to the brand philosophy
thereby enhancing brand resilience across economic cycles. At the same time the Company will expand
from the proposal scenario to multiple scenarios across the full lifecycle of love. By developing diversified
product categories such as high-end bridal gold and anniversary gifts DRCO will enrich its product
portfolio and reduce reliance on a single category or scenario. Leveraging digital tools to precisely identify
user needs the Company will enhance the alignment of products and services with customer demand and
improve operational stability.
3. Risk of raw material price fluctuations and supply chain management
The Company's primary raw materials include diamonds and precious metals such as gold and platinum
the prices of which are subject to multiple factors including global economic conditions geopolitical
developments monetary policies and market supply and demand resulting in relatively high volatility.Significant increases in raw material prices may raise procurement costs and compress profit margins
while sharp declines may lead to inventory impairment risks and affect consumers' expectations regarding
value preservation. DRCO adopts a demand-driven light customization model with products made through
outsourced manufacturing resulting in a certain degree of reliance on the craftsmanship delivery
capabilities and quality control systems of outsourced manufacturers. If outsourced manufacturers
encounter insufficient capacity delivery delays quality fluctuations or operational abnormalities order
fulfillment timelines and user experience may be adversely affected.Mitigation measures: DRCO will closely monitor raw material market dynamics and establish sound price
monitoring and early warning mechanisms. By optimizing inventory management flexibly adjusting
procurement rhythm and building long-term and stable partnerships with high-quality suppliers the
Company seeks to mitigate the impact of price fluctuations on costs. Where appropriate financial
instruments such as hedging will be used to manage price risks. On the supply chain side the Company
will implement stringent supplier admission and dynamic evaluation mechanisms conducting multi-
dimensional assessments of outsourced manufacturers in terms of technical capabilities capacity assurance
quality control systems and commercial credibility. Through digital systems the Company will enable
visualized tracking of order progress and enhance coordination efficiency across supply chain stages. In
addition DRCO will continuously optimize the supplier structure and cultivate core strategic partners to
mitigate concentration risks in procurement thereby ensuring supply chain stability and resilience.
4. Risk of underperformance in offline store operations and channel optimization
DRCO adheres to a fully self-operated offline channel model under which stores serve not only as sales
touchpoints but also as core venues for brand culture communication and user experience. Misjudgments
in store location selection an underdeveloped single-store operating model store efficiency improvements
falling short of expectations or staff training failing to keep pace with upgraded service standards may
adversely affect user experience and the Company's profitability. In addition DRCO continues to advance
channel optimization and store refurbishment with the returns on related investments subject to
uncertainty.Mitigation measures: DRCO will continue to refine the store operating model and select channels based on
key metrics such as store traffic and conversion rates with quantified site selection criteria and a focus on
leading commercial complexes in core cities. The Company will empower frontline staff through self-
developed intelligent coaching systems and AI customer service systems to ensure standardized and
consistent service quality across stores nationwide. Store operating data will be continuously monitored
and underperforming stores will be promptly optimized or adjusted to achieve efficient allocation of
channel resources. During store refurbishment the Company will adopt a phased roll-out approach
steadily replicating successful demonstration stores while controlling iteration risks.
5. Risks related to global operations and expansion into new markets
DRCO plans to expand its business into key markets such as Europe the United States and Southeast Asia.Overseas markets differ significantly from the domestic market in terms of legal environments consumer
culture business practices and religious customs. If the Company fails to effectively adapt to local market
542025Annual Report of DR Corporation Limited
characteristics establish localized operating teams or address uncertainties such as geopolitical
developments trade policies and exchange rate fluctuations the implementation of its globalization
strategy may be adversely affected. In addition differences in cultural acceptance of the "true love"
concept across markets may affect the effectiveness of brand communication.Mitigation measures: The Company will prudently advance its overseas market expansion by conducting
in-depth research on the legal and regulatory frameworks consumer habits and cultural characteristics of
target markets prioritizing locations in high-potential commercial districts and gradually building
localized operating teams. Leveraging its existing capabilities in new media operations and digital
communication DRCO will develop differentiated brand narratives tailored to overseas markets and
continuously enhance the team's cross-border operational capabilities through practical experience in
overseas markets. The Company will adopt a "focus on key breakthroughs to drive broader impact"
strategy steadily promoting overseas expansion after validating the operating model. In addition the
Company will establish a dedicated risk assessment mechanism for overseas business to dynamically
monitor and respond to potential risks related to political legal and foreign exchange factors.XII. Registration Form for Surveys Communication Interviews and Other Activities during the
Reporting Period
?Applicable □Not applicable
Main topics
discussed Reference for details of
Date Venue Method Type ofparticipants Participants and the investor relationsmaterials activity
provided
Representatives from 39
institutions including Discussion For details please refer to
Online Cinda Securities Ping of the 2024 the Investor RelationsApril 27 Online communication via Others An Securities Soochow annual Activity Record Form2025 meeting internet platforms Securities etc. as well results and disclosed by the Companyas some individual the Q1 2025 on April 27 2025 on
investors totaling 60 results www.cninfo.com.cn.participants
May 12 2025 On-site On-site research Institutions Bosera Funds GFresearch Securities
May 14 2025 Online
Online
meeting communication via Institutions
China Life Pension
internet platforms Tianfeng Securities
Founder Securities
May 19 2025 On-siteresearch On-site research Institutions Sealand Securities UBS
Industry
SDIC Dejun Consulting outlook
market For details please refer to
landscape the Investor Relations
On-site China Asset and the Activity Record FormMay 21 2025 research On-site research Institutions Management Guosen Company's disclosed by the CompanySecurities recent on May 30 2025 on
operating www.cninfo.com.cn.performance
BOC Investment and outlook
Management Sealand
Online Online Securities MaxwealthMay 29 2025 meeting communication via Institutions Fund Kaiyuaninternet platforms Securities ZO Asset
Management Sealand
Securities
May 30 2025 Onlinemeeting Online Institutions Great Wall Fundcommunication via Industrial Securities
552025Annual Report of DR Corporation Limited
internet platforms Hwabao WP Fund
Sealand Securities
Southern Asset
May 30 2025 On-siteresearch On-site research Institutions
Management Dacheng
Fund Industrial
Securities
Online ABC-CA Fund
June 5 2025 Online communication via Institutions Management Sealandmeeting internet platforms Securities HuashangFund Sealand Securities
June 6 2025 On-siteresearch On-site research Institutions
Bosera Funds Industrial
Securities
Online Caitong Fund
June 6 2025 Onlinemeeting communication via Institutions
Management Sealand
internet platforms Securities AEON LIFESealand Securities
Online Galaxy Asset Industry
June 9 2025 Onlinemeeting communication via Institutions Management Sealand
outlook
internet platforms Securities market For details please refer to
landscape the Investor Relations
and the Activity Record Form
Southern Asset Company's disclosed by the Company
Online Online Management Sealand recent on June 30 2025 onJune 10 2025 meeting communication via Institutions Securities Wanjia Asset operating www.cninfo.com.cn.internet platforms Management Sealand performance
Securities and outlook
Industrial Securities
Cinda Fund Huisheng
June 12 2025 On-site Fund Managementresearch On-site research Institutions Caitong Fund
Management Hongta
Hongtu
June 23 2025 On-siteresearch On-site research Institutions China Fortune Securities
June 30 2025 On-siteresearch On-site research Institutions Cinda Securities
GF Securities Cinda
Securities CIB Wealth
July 17 2025 On-site
Management Origin
research On-site research Institutions Asset Management Founder Securities
Tianfeng Securities
Horizon Fund Industry
outlook
market For details please refer to
July 21 2025 On-siteresearch On-site research Institutions Huachuang Securities
landscape the Investor Relations
and the Activity Record Form
Company's disclosed by the Company
China Asset recent on July 28 2025 on
On-site Management Caitong
operating www.cninfo.com.cn.July 23 2025 research On-site research Institutions Securities Fullgoal
performance
Fund Bosera Funds and outlook
AEON Insurance
Online Tianfeng Securities
July 28 2025 Onlinemeeting communication via Institutions China Universal Assetinternet platforms Management
562025Annual Report of DR Corporation Limited
Representatives from 52
institutions including
Eastmoney Securities For details please refer to
August 29 Online Online Guotai Haitong
Discussion the Investor Relations
2025 meeting communication via Others Securities Industrial
of the 2025 Activity Record Form
internet platforms Securities etc. as well interim disclosed by the Company
as some individual results on August 29 2025 on
investors totaling 76 www.cninfo.com.cn.participants
Representatives from 46
institutions including For details please refer to
October 30 Online Online
CITIC Securities China Discussion the Investor Relations
2025 meeting communication via Others
Securities Huatai Activity Record Form
internet platforms Securities etc. as well
of the Q3 disclosed by the Company
as some individual 2025 results on October 30 2025 on
investors totaling 68 www.cninfo.com.cn.participants
Investors participating in Industry
the "2025 Shenzhen outlook
Listed Companies market For details please refer to
Online Investor Online landscape the Investor RelationsNovember Online
20 2025 meeting communication via Others
Collective Reception and the Activity Record Form
internet platforms Day" via the "Panoramic Company's disclosed by the CompanyRoadshow" investor recent on November 20 2025 on
relations interactive operating www.cninfo.com.cn.platform performance
(https://rs.p5w.net) and outlook
XIII. Formulation and Implementation of Market Value Management System and Valuation
Increase Plan
Whether DRCO formulated the market value management system
?Yes □No
Whether DRCO disclosed the valuation increase plan
□Yes ?No
In accordance with the Company Law of the People's Republic of China the Securities Law of the People's
Republic of China the Rules Governing the Listing of Shares on the ChiNext Market of Shenzhen Stock
Exchange the Self-Regulatory Guidelines No. 2 for Companies Listed on Shenzhen Stock Exchange –
Standardized Operation of ChiNext Listed Companies the Regulatory Guidelines for Listed Companies No.
10 – Market Value Management and other relevant laws regulations regulatory documents and the
Articles of Association of the Company DRCO convened the 12th meeting of the second Board of
Directors on December 26 2024 at which the Proposal on Formulating the Market Value Management
System was considered and approved. The Company has established the Market Value Management
System of DR Corporation Limited to effectively enhance the Company's investment value strengthen
investor returns regulate market value management practices and safeguard the lawful rights and interests
of the Company investors and other stakeholders.XIV. Implementation of the Action Plan for Dual Enhancement of Quality and Returns
Whether DRCO disclosed the Action Plan for Dual Enhancement of Quality and Returns
□Yes ?No
572025Annual Report of DR Corporation Limited
Part IV. Corporate Governance Environmental Protection and
Social Responsibility
I. Basic Information about Corporate Governance
DRCO consistently regards standardized corporate governance as the cornerstone of steady development.By strictly abiding by relevant rules and regulations including the Company Law the Securities Law the
Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Shares on the
ChiNext Market of Shenzhen Stock Exchange the Self-Regulatory Guidelines No. 2 for Companies Listed
on Shenzhen Stock Exchange – Standardized Operation of ChiNext Listed Companies and the Measures
for the Administration of Independent Directors of Listed Companies as well as the provisions of DRCO's
Articles of Association the Company constantly improves its corporate governance structure establishes
and refines internal management and control systems pushes ahead with corporate governance activities
promotes standardized operation and enhances corporate governance capabilities ensuring compliant
transparent and effective business operations and protecting the legitimate rights and interests of
shareholders creditors and other stakeholders. The actual situation of the Company's governance complied
with the requirements of rules regulations and normative documents released by the regulators including
CSRC and SZSE.(I) Corporate governance system
DRCO has established a complete set of strict governance systems subject to timely amendments and
refinement in accordance with changes of laws and regulations and the actual needs of the Company's
development. During the Reporting Period DRCO revised the Articles of Association the Administrative
Measures for Outbound Investment the External Guarantee Management System the Administrative
Measures for Connected Transactions the Management System for Shares Held by Directors Supervisors
and Officers and Changes thereof the System for the Selection and Appointment of Accounting Firms and
the Investors Relations Management System and formulated the Administrative Measures for the Trading
of Financial Derivatives the Administrative Measures for the Resignation of Directors and Senior
Management and the Working System for the Secretary of the Board thereby further improving the
corporate governance system.(II) Shareholders and general meetings
DRCO respects the legitimate rights and interests of all shareholders and ensures they can fully exercise
their rights. During the Reporting Period DRCO held one annual general meeting and two extraordinary
general meetings both in strict adherence to the Rules of Procedure for General Meetings to standardize
the convening notification holding and voting procedures thereby fully safeguarding shareholders' rights
to information participation and voting. During these meetings the Company provided equal
opportunities for shareholders to speak ensuring they could fully express their opinions and suggestions.The voting results of all proposals at the general meetings were separately counted and disclosed for
minority shareholders to enhance their participation. The Company engaged lawyers to provide on-site
witnessing and issue legal opinions ensuring the legality and validity of the meeting procedures and
resolutions.(III) Directors and the Board of Directors
DRCO's Board of Directors comprises 9 directors including 3 independent directors. The number and
composition of the Board of Directors satisfy the requirements of relevant laws regulations and the
Articles of Association. The Board of Directors has four special committees: Strategy and Sustainable
Development Committee Audit Committee Nomination Committee and Remuneration and Appraisal
Committee. Each has clear responsibilities and performs its own duties to justify decision-making of the
Board of Directors. During the Reporting Period DRCO convened 5 Board meetings and 12 special
committee meetings all of which were convened and held in accordance with the procedures stipulated in
the Articles of Association the Rules of Procedure of the Board of Directors and other relevant laws and
regulations voted and formed resolutions in strict accordance with the relevant provisions submitted
matters requiring consideration at general meetings for consideration and decision at general meetings
582025Annual Report of DR Corporation Limited
effectively performed the duties authorized by the general meetings and strictly implemented the
resolutions passed by general meetings. The directors of the Company have all diligently and faithfully
performed their duties and actively participated in corporate governance. The independent directors have
performed their duties independently in strict accordance with the relevant laws and regulations and the
requirements of the Working System for Independent Directors safeguarding the interests of the Company
and all shareholders.(IV) Information Disclosure and Transparency
DRCO attaches great importance to information disclosure and has established a comprehensive
information disclosure management system to clarify the basic principles content approval procedures
and responsibilities of information disclosure to ensure the timeliness accuracy and completeness of
information disclosure. DRCO publishes regular reports and interim announcements in a timely manner
through the information disclosure media designated by the CSRC and the Company's official website in
strict accordance with laws regulations and regulatory requirements so as to provide investors and the
public with a comprehensive and truthful picture of the Company's business operations financial condition
and significant matters. During the Reporting Period DRCO continuously improved the content and
manner of information disclosure enhanced the readability and comprehensibility of information and
maintained the continuity and consistency of information disclosure. By strengthening the management of
information disclosure the Company has enhanced transparency and strengthened investor confidence.(V) Management of Investor Relations
DRCO strictly observes relevant laws and regulations such as the Company Law the Securities Law and
the Guidelines on Investor Relations Management for Listed Companies as well as internal systems such
as the Articles of Association continuously improves the long-term mechanism for investor relations
management and strives to build a market communication pattern characterized by long-term stability
transparency and mutual trust. In October 2025 in accordance with the Guidelines on Investor Relations
Management for Listed Companies the Company revised the Investor Relations Management System in
light of its actual conditions further clarifying the core principles of compliance equality proactive
communication honesty and good faith for investor relations management. In terms of building
communication channels and mechanisms DRCO has established a sound investor relations management
system consisting of diversified channels including telephone fax e-mail DRCO's official WeChat
account the "Investor Relations" section of DRCO's official website as well as general meetings of
shareholders investor briefings roadshows analyst meetings talks and exchanges and on-site reception.In this way DRCO can be contacted at any time thereby enhancing the perception and recognition of the
Company's value in the capital market by maintaining communication with investors and sell-side analysts.In 2025 DRCO held three online performance briefings on regular reports for all shareholders to ensure
fair information access of minority shareholders. The Company actively participated in the "2025
Reception Day for the Investors of Listed Companies in Shenzhen" and disclosed research information
from investment institutions through the Registration Form of Investor Relations Activities. DRCO values
feedback suggestions and needs of investors and promptly addresses their key concerns. By strengthening
investor relations management the Company can better understand the needs and expectations of investors
and further enhance its governance and market image.(VI) Stakeholders
DRCO fully recognizes the importance of stakeholders in its development and actively communicates and
co-operates with stakeholders. We pursue common development with our stakeholders strive to achieve a
harmonious balance among the interests of shareholders employees and society and constantly promote
our sustainable stable and healthy growth. In accordance with the GRI Standards issued by the GSSB the
United Nations 2030 Sustainable Development Goals and relevant laws regulations and normative
documents such as the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock
Exchange - Sustainability Report (For Trial Implementation) and the Self-Regulatory Guidance No. 3 for
Companies Listed on the ChiNext Market of Shenzhen Stock Exchange - Preparation of Sustainability
592025Annual Report of DR Corporation Limited
Report DRCO has issued the 2025 Environmental Social and Governance Report as detailed in the 2025
ESG Report disclosed by DRCO on www.cninfo.com.cn on April 28 2026.Whether there is any significant difference between the actual situation of corporate governance and the
laws administrative regulations and the provisions on the governance of listed companies issued by the
CSRC.□Yes?No
There is no significant difference between the actual situation of corporate governance and the laws
administrative regulations and the provisions on the governance of listed companies issued by the CSRC.II. Independence of DRCO from Controlling Shareholders and Actual Controllers in Asset
Personnel Finance Institution and Business
DRCO operates in accordance with the requirements of the Company Law of PRC the Securities Law and
other relevant laws and regulations and the Articles of Association; and has established and improved the
corporate governance structure. Therefore DRCO is independent of the controlling shareholders the
actual controllers and other enterprises controlled by them in terms of assets personnel finance
institutions and business and enjoys asset integrity and independence of business and the ability to operate
independently in the market.(I) Asset integrity
DRCO has the business system and assets related to its operations legally possesses the ownership of or
right to use the trademarks patents and non-patented technologies related to its operations and has its own
raw material procurement system and product sales system. DRCO has clear and complete ownership of its
assets and enjoys independent control and domination over all assets. DRCO has not provided guarantees
for the debts of shareholders with its assets interests or creditworthiness and does not have assets or funds
being illegally occupied by controlling shareholders to the detriment of DRCO's interests or have reliance
on shareholders and other institutions.(II) Personnel independence
The directors supervisors and senior managers of DRCO are elected in strict accordance with the relevant
provisions of the Company Law and Articles of Association; the general manager the deputy general
manager the person in charge of finance the Board secretary and other senior managers of DRCO neither
hold positions other than director and supervisor in DRCO's controlling shareholders actual controllers
and other enterprises controlled by them nor receive remuneration from DRCO's controlling shareholders
actual controllers and other enterprises controlled by them; the financial personnel of DRCO do not work
part-time in the organizations of controlling shareholders or the actual controllers and other enterprises
controlled by them.(III) Financial independence
DRCO has set up an independent financial department with full-time accounting personnel and
established an independent financial accounting system and financial management policies to make
financial decisions independently in strict accordance with accounting laws and regulations including the
Accounting Law of the People's Republic of China. DRCO has a standardized financial accounting system
and financial management policies for branches and subsidiaries; DRCO doesn't share bank accounts with
controlling shareholders actual controllers and other enterprises controlled by them.(IV) Institutional independence
DRCO has set up and defined the responsibilities and rights of the general meeting of shareholders the
Board of Directors and other bodies for decision-making operation management and supervision.Therefore DRCO has established a standardized and effective corporate governance structure. Based on
the development needs DRCO has established a series of internal operation and management institutions
602025Annual Report of DR Corporation Limited
that independently exercise the right of operation and management and there is no institutional mixing
with the controlling shareholders the actual controller and other enterprises under their control.(V) Business independence
DRCO has an independent and complete research and development design procurement and sales
business system with the ability to directly conduct business operation by itself on the market. DRCO's
business is independent of the controlling shareholders the actual controllers and other enterprises under
their control. Between DRCO and its controlling shareholders the actual controllers and other enterprises
under their control there is neither horizontal competition that has a material adverse effect on the
Company nor any connected transaction that materially impacted the independence and was obviously
unfair.III. Horizontal Competition
□Applicable? Not applicable
IV. Weighted Voting Right Arrangement
□Applicable? Not applicable
V. Corporate Governance of Red-chip Company
□Applicable? Not applicable
VI. Directors and Senior Management
1. Basic information
Number Number Number
of shares of shares of shares
held at increased reduced Other Shares held
Name Gender Age Position Employme Start date End date the during during
increases at the end of Reasons for
nt status of tenure of tenure beginnin the the or the current changes in
g of the current current decreases period shares
period period period (shares ) (shares )
(shares ) (shares ) (shares )
Zhang July 11 January
Guotao Male 40 Chairman Incumbent 2019 13 2029 0 0 0 0 0
Lu Yiwen Female 38 Director Incumbent July 11 January2019 13 2029 0 0 0 0 0
General
Lu Yiwen Female 38 Manager Incumbent August January
(President) 25 2023 13 2029
00000
Director
Deputy
General
Manager
Huang
Shuirong Male 51 (Vice Incumbent
July 11 January 0 0 0 0 0
President) 2019 13 2029
Secretary
of the
Board and
Finance
612025Annual Report of DR Corporation Limited
Director
Chen
Qisheng Male 40 Director Incumbent
March 8 January
202113202900000
Zhong Novembe
Min Male 53
Independe January
nt Director Incumbent r 242020 13 2029
00000
Class I
restricted
He Lei Male 40 Director Incumbent January January 0 132275 0 0 132275 shares were13 2026 13 2029 listed on
September
192025.
Employee
Shen Ai Female 36 Representa Incumbent January Januarytive 13 2026 13 2029 0 0 0 0 0
Director
Wang
Yajin Female 40
Independe
nt Director Incumbent
January January
13202613202900000
Zhao
Dongping Male 49
Independe
nt Director Incumbent
January January
13202613202900000
Hu July 11 May 30
Xiaoming Male 45 Director Resigned 2019 2025 0 0 0 0 0
Zhao May 26 January
Ranran Female 36 Director Resigned 2023 13 2026 0 0 0 0 0
Li Yang Male 43 Independe Resigned January Januarynt Director 15 2020 13 2026 0 0 0 0 0
Liang Jun Male 48 Independent Director Resigned
January January
15202013202600000
Total -- -- -- -- -- -- 0 132275 0 0 132275 --
Note: both “number of shares held at the beginning of the period” and “number of shares held at the end of the period” refer to number of shares
held directly excluding number of shares held indirectly.Whether any directors or senior officers resigned during the Reporting Period
?Yes □No
On May 30 2025 Mr. Hu Xiaoming submitted his resignation from his positions as Director and member
of the Strategy and Sustainable Development Committee for personal reasons. Since his resignation Mr.Hu Xiaoming has no longer held any position in the Company.Changes in directors and senior management of the Company
?Applicable □Not applicable
Name Position Type Date Reason
Hu Xiaoming Director Resignation May 30 2025 Personal reason
Zhao Ranran Director Resignation upon January 13 2026 Change of term
622025Annual Report of DR Corporation Limited
expiration of term
Li Yang Independent Director Resignation uponexpiration of term January 13 2026 Change of term
Liang Jun Independent Director Resignation uponexpiration of term January 13 2026 Change of term
He Lei Director Elected January 13 2026 Change of term
Shen Ai Employee RepresentativeDirector Elected January 13 2026 Change of term
Wang Yajin Independent Director Elected January 13 2026 Change of term
Zhao Dongping Independent Director Elected January 13 2026 Change of term
2. Positions
Professional background and career experience of DRCO's incumbent directors and senior management
and their current major responsibilities at DRCO.
(1) Profiles of the Board members
* Mr. Zhang Guotao
Mr. Zhang Guotao Chairman of the Board is a Chinese citizen without permanent residence permit
outside China. Born in 1985 he holds an EMBA degree from Cheung Kong Graduate School of Business
and is the founder of DRCO. Mr. Zhang has received awards including the "Outstanding Young
Entrepreneur Award (40 years and below)" and the "Top 10 Leaders of Asian Brands". He was the
executive director and general manager of Darry Corporation and now acts as DRCO's chairman as well
as the executive director & general manager of DR Investment and Qianhai Wendi the executive director
& manager of Wendi Design and Wendi Technology the executive director & general manager of
EveryYear Travel Photography the director & manager of Shenzhen Xiangliang Investment Co. Ltd. and
the director & general manager of Wendi Investment (Hainan) Co. Ltd.* Ms. Lu Yiwen
Ms. Lu Yiwen is the director of DRCO. She is a Chinese citizen without permanent residence permit
outside China. Born in 1987 she holds an EMBA degree from China Europe International Business
School (CEIBS). As the founder of DRCO she has received awards such as "Forbes 30 Under 30 China"
"Hurun China Under 30s To Watch" and "Top 10 Leaders of Asian Brands". Ms. Lu was once the vice
president and supervisor of Darry Corporation and now acts as DRCO's director and general manager
(president) as well as the supervisor of DR Investment EveryYear Travel Photography Wendi Design
Wendi Technology Shenzhen Xiangliang Investment Co. Ltd. and Wendi Investment (Hainan) Co. Ltd.* Mr. Huang Shuirong
Mr. Huang Shuirong the director of DRCO is a Chinese citizen without permanent residence permit
outside China. Born in 1974 Mr. Huang received his master's degree from Zhongnan University of
Economics and Law and he is a senior accountant. Mr. Huang once served as the financial manager of
Guangdong-based Jianlibao Group the chief financial officer of Xilong Chemical Co. Ltd. the general
manager of the financial center at Xilong Chemical Co. Ltd. and the financial manager of Tiandi No. 1
Beverage Inc.; since joining DRCO in 2018 he has held such positions as the vice president and financial
manager of Darry Corporation and now is the director deputy general manager (vice president) secretary
of the Board and financial director of DRCO.* Mr. Chen Qisheng
632025Annual Report of DR Corporation Limited
Mr. Chen Qisheng the director of DRCO is a Chinese citizen without permanent residence permit outside
China. Born in 1986 he received his bachelor's degree and holds the CMA certificate. He once worked in
Chow Tai Fook Jewelry (Shenzhen) Co. Ltd. Kingdee Software (China) Co. Ltd. and Shenzhen
Jianjiaqin Jewelry Co. Ltd. Since joining DRCO in 2015 he has ever held the position of a senior
financial manager and now acts as the director and the responsible head for business and finance.* Mr. He Lei
Mr. He Lei the director of DRCO is a Chinese citizen without permanent residence permit outside China.Born in 1985 he holds a bachelor's degree. He previously served as a cadre in the Political Department of
Hunan Provincial Military Command a staff member of the CPC Bao'an District Committee of Shenzhen
the general manager of Wuhan Yegou Network Technology Co. Ltd. the deputy general manager co-
general manager and executive director of the Franchise Management Center at Bama Tea Co. Ltd. He
now acts as the director and Chief Operating Officer (COO) of the Company.* Ms. Shen Ai
Ms. Shen Ai the supervisor of DRCO is a Chinese citizen without permanent residence permit outside
China. Born in 1989 she received her bachelor's degree from Shenzhen University. Since joining DRCO
in 2012 she has successively held the positions including the copywriter copywriter manager copywriter
expert and UGC operation manager. From July 2022 to July 2025 she acted as the supervisor of DRCO.She now acts as the employee representative director and UGC senior operation manager of DRCO.* Ms. Wang Yajin
Ms. Wang Yajin the independent director of DRCO is a US citizen with Chinese permanent residence
permit. Born in 1985 she holds a doctoral degree. From September 2015 to November 2021 she served as
an assistant professor of the Marketing Department at the Robert H. Smith School of Business University
of Maryland US. She joined China Europe International Business School (CEIBS) in January 2021 and
currently serves as the associate dean (research affairs) professor of marketing and director of ESG
research at CEIBS as well as the independent director of DRCO.* Mr. Zhao Dongping
Mr. Zhao Dongping the independent director of DRCO is a Hong Kong resident of China. Born in 1976
he holds a master's degree. From August 2004 to April 2008 he served as the product sales director and
senior product sales manager of Dell (China) Co. Ltd. From April 2008 to January 2012 he was the
general manager of online sales and operations at Google Information Technology (China) Co. Ltd.Greater China. From January 2012 to May 2016 he was the president of Hunan Haiyi E-Commerce Co.Ltd. From May 2016 to the present he has served as the general manager and director of Anker
Innovations Technology Co. Ltd. From May 2018 to the present he has been the director of ZIEL HOME
FURNISHING TECHNOLOGY CO. LTD.. He now acts as the independent director of DRCO.* Mr. Zhong Min
Mr. Zhong Min the independent director of DRCO is a Chinese citizen without permanent residence
permit outside China. Born in 1973 he holds an EMBA degree from China Europe International Business
School (CEIBS) and is a certified public accountant (CPA). Mr. Zhong ever served as a senior manager of
Shenzhen Tongren Accounting Firm a salaried partner of Shenzhen Pengcheng Enterprise Management
Consulting Co. Ltd. the chief financial officer of Shenzhen Yuezhong Investment Holdings Co. Ltd. and
the independent director of Guangzhou Fangbang Electronics Co. Ltd. He has been acting as the
independent director of DRCO since 2020 as well as the director of Shenzhen Yuezhong Investment
Holdings Co. Ltd. and Beijing Zhierxing Culture Media Co. Ltd. the chairman of Shenzhen Binhai
Penghui Fund Management Co. Ltd. and the independent director of Shenzhen Xunfang Technology Co.Ltd. and Guangdong Feinan Resources Utilization Co. Ltd.
(2) Profiles of senior management
* Ms. Lu Yiwen
642025Annual Report of DR Corporation Limited
Ms. Lu Yiwen currently serves as the director and deputy general manager (vice president). For her
biographies please refer to the section "Profiles of Board Members".* Mr. Huang Shuirong
Mr. Huang Shuirong currently serves as the director deputy general manager (vice president) secretary of
the Board and financial director. For his biographies please refer to the section "Profiles of Board
Members".Whether the controlling shareholders and actual controllers also act as the chairman and general manager
of the Company:
? Applicable □ Not applicable
During the Reporting Period Mr. Zhang Guotao the controlling shareholder and actual controller of
DRCO served as the chairman of DRCO; and Ms. Lu Yiwen the controlling shareholder and actual
controller of DRCO served as the general manager of DRCO.
1. Explanation on the rationality of the position arrangements
The above arrangements are made based on the Company's current operational and development needs as
well as its corporate governance conditions. Mr. Zhang Guotao the Company's founder and chairman and
Ms. Lu Yiwen the Company's founder and general manager both have extensive experience and profound
expertise in the industry and corporate management. Such arrangements help ensure efficient transmission
of the Company's major decisions and operational execution maintain the stability of its business
strategies and align with the characteristics of the industry and the Company's current business needs. The
election and appointment of the above persons have been strictly implemented in accordance with the
Company Law of the People's Republic of China and the Articles of Association of the Company and have
been reviewed and approved by the Board of Directors and the general meeting of shareholders of the
Company with the decision-making procedures compliant with laws and regulations.
2. Measures to Maintain the Independence of the Listed Company
During the Reporting Period the Company maintained independence from its controlling shareholders
actual controllers and their connected parties in respect of business personnel assets structure and finance
and possessed an independent and complete business system and the ability to operate independently in the
market. Measures adopted to ensure the independence are set out below:
(1) Personnel independence: The Company has an independent human resources department responsible
for independent personnel and payroll management. All senior management members (including the
general manager) have signed employment contracts with the Company and receive remuneration from the
Company. Apart from their positions at the Company they do not hold administrative positions at or
receive remuneration from the controlling shareholders actual controllers or other enterprises controlled
by them. The appointment and removal of directors and senior management members are conducted
strictly in accordance with the procedures prescribed by laws regulations and the Articles of Association
of the Company and there is no improper intervention by the controlling shareholders in personnel
appointment and removal.
(2) Decision-making checks and balances and institutional independence: The Company has established a
sound corporate governance structure with clearly defined responsibilities between the Board of Directors
(decision-making level) and the management (execution level). In accordance with applicable laws
regulations and the Articles of Association of the Company the Company has formulated the Rules of
Procedure for the General Meeting of Shareholders the Rules of Procedure for the Board of Directors the
Working Rules for the General Manager and other policies. During the Reporting Period major
operational decisions external investments and other material matters of the Company were duly
submitted to the Board of Directors or the general meeting of shareholders for review in strict accordance
with the authorization system. The chairman and the general manager performed their duties in strict
compliance with the Company's internal control system. Independent directors and special committees of
the Board of Directors reviewed material matters and issued opinions in accordance with relevant
652025Annual Report of DR Corporation Limited
provisions effectively performing their oversight responsibilities.
(3) Independence in business assets and finance: The Company owns independent production and
operation premises intellectual property and procurement and sales channels and conducts business
independently of the controlling shareholders and their connected parties. The Company has an
independent finance department and financial accounting system maintains independent bank accounts
and pays taxes independently. The controlling shareholders and actual controllers have strictly abided by
the provisions concerning the independence of listed companies and have not intervened in the Company's
operation and management through improper means.
(4) Internal control and the standardization of connected transactions: The Company has established a
comprehensive internal control system and a decision-making mechanism for connected transactions to
ensure standardized corporate governance and independent operation and effectively protect the legitimate
rights and interests of all shareholders especially minority shareholders.Positions in shareholder entity
? Applicable □ Not applicable
Name of employee Name of shareholder Position held in
Whether receive
entity shareholder entity Start date of tenure End Date of tenure remunerations inshareholder entity
Zhang Guotao DR Investment Executive DirectorGeneral Manager November 24 2015 No
Executive Partner
Zhang Guotao Wendi No. 1 (with a proxy December 1 2017 No
appointed)
Executive Partner
Zhang Guotao Wendi No. 2 (with a proxy December 1 2017 No
appointed)
Executive Partner
Zhang Guotao Wendi No. 3 (with a proxy December 4 2017 No
appointed)
Lu Yiwen DR Investment Supervisor November 24 2015 No
Description of the
position in the Not applicable
shareholder entity
Employment in other entities
?Applicable □Not applicable
Whether receive
Name of employee Name of other entity Positions held inother entity Start date of tenure End date of tenure remuneration in otherentity
Shenzhen Qianhai
Zhang Guotao Wendi Management Executive Director September 5 2017 No
Consulting Co. Ltd. General Manager
Zhuhai Wendi
Zhang Guotao Design Consulting Executive DirectorManager July 26 2021 NoCo. Ltd.Zhang Guotao Zhuhai Wendi Executive Director July 27 2021 No
662025Annual Report of DR Corporation Limited
Technology Co. Ltd. Manager
Shenzhen EveryYear
Zhang Guotao Travel Photography Executive DirectorGeneral Manager August 10 2021 NoCulture Co. Ltd.Zhang Guotao Shenzhen XiangliangInvestment Co. Ltd. Director Manager July 15 2024 No
Zhang Guotao Wendi Investment Director General(Hainan) Co. Ltd. Manager September 26 2024 No
Zhuhai Wendi No. 1 Executive Partner
Zhang Guotao Investment (with a proxy July 28 2021 No
Partnership (LP) appointed)
Shenzhen EveryYear
Lu Yiwen Travel Photography Supervisor December 13 2019 No
Culture Co. Ltd.Lu Yiwen Zhuhai WendiTechnology Co. Ltd. Supervisor July 27 2021 No
Zhuhai Wendi
Lu Yiwen Design Consulting Supervisor July 26 2021 No
Co. Ltd.Lu Yiwen Shenzhen XiangliangInvestment Co. Ltd. Supervisor July 15 2024 No
Lu Yiwen Wendi Investment(Hainan) Co. Ltd. Supervisor September 26 2024 No
Hainan DR Executive Partner
Lu Yiwen Investment (with a proxy June 24 2024 No
Partnership (LP) appointed)
Nanjing Sanchao
Huang Shuirong Advanced Materials Independent Director December 17 2025 Yes
Co. Ltd.Shenzhen Yuezhong
Zhong Min Investment Holdings Director December 26 2006 Yes
Co. Ltd.Beijing Zhierxing
Zhong Min Culture Media Co. Director November 14 2013 No
Ltd.Shenzhen Binhai
Zhong Min Penghui FundManagement Co. Chairman November 15 2018 No
Ltd.Zhong Min Shenzhen XunfangTechnology Co. Ltd. Independent Director June 1 2020 Yes
Guangdong Feinan
Zhong Min Resources Utilization Independent Director May 19 2025 Yes
Co. Ltd.Zhao Dongping Anker Innovations Director General May 12 2016 Yes
672025Annual Report of DR Corporation Limited
Technology Co. Ltd. Manager
Ziel Home
Zhao Dongping Furnishing Director May 16 2018 No
Technology Co. Ltd.Zhao Dongping ASAS (Hong Kong)Limited Director August 1 2016 No
Zhao Dongping ASAS (Jiashan) E-Commerce Co. Ltd. Director May 1 2017 April 3 2025 No
Hunan Anker
Zhao Dongping Electronic Supervisor No
Technology Co. Ltd.Zhao Dongping Anker Japan Co.Ltd. Director No
Shenzhen Haiyi
Zhao Dongping Zhixin Technology Supervisor No
Co. Ltd.Hunan Anker Zhirui
Zhao Dongping Manufacturing Co. Supervisor No
Ltd.Shenzhen Bosaidong
Zhao Dongping Network Technology Director September 6 2017 No
Co. Ltd.Zhao Dongping Scent LTD Director April 24 2024 No
Zhao Dongping AuthAroma GlobalInnovation Director May 14 2024 No
Zhao Dongping AuthAroma HKInnovation Limited Director May 8 2024 No
Springs & Palm
Zhao Dongping Trees Holding Director June 5 2013 No
Limited
Zhao Dongping Hunan Haiyi E-Commerce Co. Ltd. Supervisor February 28 2019 No
Zhao Dongping Grand Sand RiverLtd. Director September 28 2022 Dissolved in 2025 No
Associate Dean
(Research Affairs)
Wang Yajin CEIBS Professor ofMarketing and January 16 2022 Yes
Director of ESG
Research
Description of
position in other No
entity
Whether DRCO's current and resigned directors and senior management were penalized by securities
regulators in the past three years
682025Annual Report of DR Corporation Limited
□Applicable?Not applicable
3. Remunerations of directors and senior management
Decision-making process basis for determination and actual payment of remunerations for directors and
senior management
The remuneration of DRCO's directors and supervisors is determined in accordance with the following
principles: (1) Non-independent directors do not receive remuneration or allowances for their directorship
roles but are compensated based on the specific position they hold in DRCO industry benchmarks for
similar roles and the Company's annual performance appraisal system and the achievement of
performance targets; independent directors receive allowances for independent directors from the
Company; (2) Senior management personnel are compensated based on the specific management positions
they hold within the Company industry benchmarks for similar roles and the Company's annual
performance appraisal system and the achievement of performance targets.The remuneration plan for directors is reviewed and approved by the Board and the general meeting of
shareholders; the remuneration plan for senior management is reviewed and approved by the Board.During the Reporting Period the remuneration of the Company's directors and senior management has
been paid in full.Remuneration of directors and senior management during the Reporting Period
Unit: RMB0'000
Total pre-tax Whether receive
Name Gender Age Position Employment compensation
compensation
status received from from any
DRCO connected partyof DRCO
Zhang Guotao Male 40 Chairman Incumbent 203.81 No
Director General
Lu Yiwen Female 38 Manager Incumbent 105.11 No
(President)
Director Deputy
General Manager
(Vice President)
Huang Shuirong Male 51 Secretary of the Incumbent 166.75 Yes
Board and
Financial
Director
Chen Qisheng Male 40 Director Incumbent 81.11 No
Zhong Min Male 53 IndependentDirector Incumbent 15 Yes
Zhao Ranran Female 36 Director Resigned 76.54 No
Hu Xiaoming Male 45 Director Resigned 73.03 No
Li Yang Male 43 IndependentDirector Resigned 15 No
Liang Jun Male 48 IndependentDirector Resigned 15 No
Total -- -- -- -- 751.34 --
692025Annual Report of DR Corporation Limited
Remuneration of the Company's non-independent directors and senior
management is determined in accordance with the Announcement on
the Remuneration (Allowance) Scheme for Directors Supervisors and
Assessment basis for the actual remuneration received by all directors Senior Management of DRCO disclosed by the Company on April 28
and senior management at the end of the Reporting Period 2023 on www.cninfo.com.cn. Remuneration of the Company'sindependent directors is determined in accordance with the
Announcement on Adjusting the Remuneration Scheme for Independent
Directors of DRCO disclosed by the Company on April 27 2024 on
www.cninfo.com.cn.On April 23 2026 the Remuneration and Appraisal Committee of the
Board of Directors convened a meeting to review the Proposal on
Confirming the 2025 Annual Remuneration and Formulating the 2026
Completion of the assessment for the actual remuneration received by Annual Remuneration Scheme for Directors and the Proposal on
all directors and senior management at the end of the Reporting Period Confirming the 2025 Annual Remuneration and Formulating the 2026
Annual Remuneration Scheme for Senior Management. Such proposals
were also reviewed and approved by the Board of Directors at its
meeting held on the same day.Deferred payment arrangements for the actual remuneration received
by all directors and senior management at the end of the Reporting Not applicable.Period
Suspension and recovery of the actual remuneration received by all As of the end of the Reporting Period no circumstances have arisen
directors and senior management at the end of the Reporting Period that require the initiation of remuneration suspension or recoverymeasures against directors or senior management.Other notes
□Applicable?Not applicable
VII. Performance of Duties by DRCO Directors during Reporting Period
1. Attendance of directors at the Board meetings and the general meetings
Attendance of directors at the Board meetings and the general meetings
Required
attendance in Attendance in Attendance in Number of Absence from
Name of Board Board Board Attendance by absences from two Attendance at
director(s) meetings meetings via consecutive generalduring the meetings in communicatio proxy Board meetings or meetings
Reporting person n equipment meetings not
Period
Zhang Guotao 5 5 0 0 0 No 1
Lu Yiwen 5 4 1 0 0 No 1
Huang
Shuirong 5 4 1 0 0 No 3
Hu Xiaoming 1 1 0 0 0 No 2
Chen Qisheng 5 3 2 0 0 No 2
Zhao Ranran 5 5 0 0 0 No 3
Li Yang 5 1 4 0 0 No 3
Liang Jun 5 1 4 0 0 No 3
Zhong Min 5 0 5 0 0 No 3
702025Annual Report of DR Corporation Limited
Description of absence from two consecutive Board meetings in person
Not applicable
2. Dissent of directors to corporate issues
Dissent of directors to relevant issues of DRCO
□Yes?No
During the Reporting Period the directors did not raise any objection to the relevant matters of DRCO.
3. Other information on duty performance of directors
Whether the suggestions of the directors are adopted or not
?Yes □No
Descriptions on whether the suggestions of the directors are adopted or not
During the Reporting Period the four special committees under the Company's Board of Directors namely
the Audit Committee Remuneration and Appraisal Committee Strategy and Sustainable Development
Committee and Nomination Committee operated in strict accordance with their respective working rules.They conducted preliminary review and professional assessment major matters providing important
support for the scientific decision-making of the Board of Directors. Details are provided below:
Remuneration and Appraisal Committee: It headed the review of the 2025 Restricted Share Incentive
Scheme and the related assessment management measures focusing on reviewing the scope of incentive
recipients grant pricing and the setting of company-level performance indicators. It then formed review
opinions and submitted them to the Board of Directors to ensure that the incentive scheme balances
fairness and incentive effect.Audit Committee: When reviewing matters such as the replacement of the audit firm for 2025 hedging
business and cash management it verified the independence and professional quality of the proposed audit
firm with the focus on the effectiveness of the internal control system for hedging and the risk control
measures for cash management. Relevant opinions were fully reflected in the review at the Board of
Directors.Strategy and Sustainable Development Committee: It reviewed the 2024 Environmental Social and
Governance Report. Based on industry regulatory requirements and the Company's actual situation it
discussed the direction of ESG work and the completeness of disclosure with the opinions issued
providing valuable reference for the review at the Board of Directors.Nomination Committee: For the re-election of the Board of Directors it conducted item-by-item
verification on the qualifications and performance abilities of the candidates for non-independent directors
and independent directors to ensure compliance with the nomination process. Relevant conclusions have
been submitted to the Board of Directors.In summary by strictly performing the preliminary review procedures each special committee has
effectively played its role in professional assessment. All the review opinions formed by them were fully
respected and adopted in the final decision-making by the Board of Directors. This effectively ensured the
standardized operation of corporate governance and the legitimate rights and interests of all shareholders.VIII. Special Committees under the Board of Directors during Reporting Period
712025Annual Report of DR Corporation Limited
Name of Important
Other
committee Members Members
Date of Contents of the descriptions on Details of
convening meetings opinions andsuggestions duty dissent (if any)performance
The Audit
Committee
reviewed the
matters under
consideration
in strict
accordance
with the Guide the
Articles of internal audit
Review the Association work and play
"Proposal on the Rules of the role of the
Zhong Min the 2024Q4 Work of the AuditAudit March 28 Work and Audit Department in
Committee Liang Jun 6Chen Qisheng 2025 2025 Work Committee and "improvingPlan of relevant laws corporate
DRCO's Audit and governance
Department" regulations adding value
fully and achieving
communicated objectives".with DRCO
and the
auditors and
unanimously
approved the
resolution after
discussion.
1. Review the
"Proposal on
the 2024
Annual Report
and Its
Summary";
2. Review the
"Proposal on
the 2025Q1
Quarterly 1.Results; The Audit Communicate
3. Review the Committee with
"Proposal on reviewed the accounting
the 2024 matters under firm to ensure
Financial consideration
Results"; in strict
that the
4. Review the accordance
financial
with the statements"Proposal on present a true
the 2024 Articles of fair and
Internal Associationthe Rules of complete viewControl Self- of DRCO's
Audit Zhong Min assessment
Work of the overall
Committee Liang Jun 6 April 23 2025 Report";
Audit
Committee and financialChen Qisheng 5. Review the
"Proposal on relevant laws
position; 2.and Guide the2024 Annual
Report on regulations
internal audit
work and play
Deposit and fully
Use of communicated
the role of the
Proceeds"; with DRCO
Audit
6. Review the and the
Department in
"improving
"Proposal on auditors and
DRCO's Gold unanimously
corporate
approved the governanceLease adding value
Business"; resolution after and achieving
7. Review the discussion. objectives".
"Proposal on
Report on the
Assessment of
the
Performance
of the
Accounting
Firm and the
Report on the
722025Annual Report of DR Corporation Limited
Audit
Committee's
Performance
of Oversight
Responsibilitie
s for the Year
2024";
8. Review the
"Proposal on
Renewing
Engagement of
Auditor in
2025"
The Audit
Committee
reviewed the
matters under
consideration
in strict
accordance
with the
Articles of
Association
Review the the Rules of
Audit Zhong Min "Proposal on
Work of the
Committee Liang Jun 6 July 7 2025 Replacing the
Audit
Chen Qisheng Audit Firm for Committee and
2025" relevant lawsand
regulations
fully
communicated
with DRCO
and the
auditors and
unanimously
approved the
resolution after
discussion.The Audit
Committee
reviewed the
1. Review the matters under
"Proposal on consideration
the 2025 in strict
Interim Report accordance
and Its with the Guide the
Summary"; Articles of internal audit
2. Review the Association work and play
"Proposal on the Rules of the role of the
Zhong Min the 2025 Work of the AuditAudit August 26 Audit Department in
Committee Liang Jun 6 2025 Interim ReportChen Qisheng on the Deposit Committee and "improving
and Use of relevant laws corporate
Proceeds"; and governance
3. Review the regulations adding value
"Proposal on fully and achieving
the 2025Q2 communicated objectives".Work of with DRCO
DRCO's Audit and the
Department" auditors andunanimously
approved the
resolution after
discussion.
1. Review the The Audit Guide the
"Proposal on Committee internal audit
the 2025Q3 reviewed the work and play
Zhong Min Quarterly matters under the role of theAudit Liang Jun 6 October 27 Results"; consideration AuditCommittee Chen Qisheng 2025 2. Review the in strict Department in"Proposal on accordance "improving
Using Self- with the corporate
owned Funds Articles of governance
to Pay Partial Association adding value
732025Annual Report of DR Corporation Limited
Expenses of the Rules of and achieving
the Projects Work of the objectives".Invested with Audit
Raised Funds Committee and
and relevant laws
Subsequent and
Equivalent regulations
Reimbursemen fully
t from Raised communicated
Funds"; with DRCO
3. Review the and the
"Proposal on auditors and
Revising unanimously
Partial approved the
Corporate resolution after
Governance discussion.Policies";
4. Review the
"Proposal on
the 2025Q3
Work of
DRCO's Audit
Department"
1. Review the
"Proposal on
Conducting The Audit
Cash Committee
Management reviewed the
with Part of matters under
Idle Raised consideration
Funds and in strict
Self-owned accordance
Funds"; with the
2. Review the Articles of
"Proposal on Association
DRCO's the Rules of
Launch of Work of the
Audit Zhong Min
Committee Liang Jun 6
December 23 Platinum Audit
Chen Qisheng 2025 Futures and Committee andDerivatives relevant laws
Hedging and
Business"; regulations
3. Review the fully
"Feasibility communicated
Analysis with DRCO
Report on and the
DRCO's auditors and
Launch of unanimously
Platinum approved the
Futures and resolution after
Derivatives discussion.Hedging
Business"
The Strategy
and
Sustainable
Development
Committee in
strict
accordance
Review the with the
"Proposal on Articles of
Strategy and the 2024 Association
Sustainable Zhang GuotaoLi Yang Hu 2 April 20 2025 Environmental theWorkingDevelopment
Committee Xiaoming
Social and Rules of the
Corporate Strategy and
Governance Sustainable
Report" Development
Committee and
relevant laws
and
regulations
unanimously
approved the
proposal after
742025Annual Report of DR Corporation Limited
in-depth
discussion.The Strategy
and
Sustainable
Development
Committee in
strict
accordance
with the
Review the Articles of
"Proposal on AssociationStrategy and
Sustainable Zhang Guotao December 19 Formulating
theWorking
Development Li Yang Hu 2 2025 the
Rules of the
Strategy and
Committee Xiaoming BiodiversityProtection Sustainable
Commitment" DevelopmentCommittee and
relevant laws
and
regulations
unanimously
approved the
proposal after
in-depth
discussion.
1. Review the
"Proposal on
DRCO's 2025
Restricted
Share
Incentive
Scheme
(Draft) and Its The
Summary"; Remuneration
2. Review the and Appraisal
"Proposal on Committee
the acted in strict
Implementatio accordance
n and with the
Assessment Articles of
Management Association
Measures for theWorking
DRCO's 2025 Rules of the
Restricted Remuneration
Share and Appraisal
Incentive Committee of
Scheme"; the Board of
3. Review the Directors and
Remuneration Liang Jun "Proposal on relevant laws
and Appraisal Zhong Min 3 July 7 2025 Verifying the and
Committee Zhao Ranran List of regulations.Incentive Zhao Ranran
Recipients of as an incentive
the Initial recipient under
Grant under this incentive
DRCO's 2025 scheme and a
Restricted related
Share member
Incentive abstained from
Scheme"; voting on the
4. Review the relevant
"Proposal on proposals. The
Requesting the other members
General unanimously
Meeting of approved the
Shareholders proposals after
to Authorize in-depth
the Board of discussion.Directors to
Handle
Matters
Related to
DRCO's 2025
Restricted
752025Annual Report of DR Corporation Limited
Share
Incentive
Scheme"
1. Review the The
"Proposal on Remuneration
Adjusting and Appraisal
Matters Committee
Related to the acted in strict
2025 accordance
Restricted with the
Share Articles of
Incentive Association
Scheme"; theWorking
2. Review the Rules of the
"Proposal on Remuneration
the Initial and Appraisal
Grant of Committee of
Restricted the Board of
Share to Directors and
Remuneration Liang Jun Incentive relevant laws
and Appraisal Zhong Min 3 August 26 Recipients and
Committee Zhao Ranran 2025 under the 2025 regulations.Restricted Zhao Ranran
Share as an incentive
Incentive recipient under
Scheme"; this incentive
3. Review the scheme and a
"Proposal on related
Verifying the member
List of abstained from
Incentive voting on the
Recipients of relevant
the Initial proposals. The
Grant under other members
DRCO's 2025 unanimously
Restricted approved the
Share proposals after
Incentive in-depth
Scheme" discussion.Review the All members
"Proposal on abstained from
Formulating voting on this
Remuneration Liang Jun the proposal
and Appraisal Zhong Min 3 December 23 Remuneration which was
Committee Zhao Ranran 2025 Management directlySystem for submitted to
Directors and the Board of
Senior Directors for
Management" review.
1. Review the
"Proposal on
the Re-election
of DRCO's The
Board of Nomination
Directors and Committee in
the strict
Nomination of accordance
Non- with the
Independent Articles of
Director Association
Li Yang Lu Candidates for theWorkingNomination Yiwen Zhong 1 December 23 the Third Rules of theCommittee Min 2025 Board of NominationDirectors"; Committee and
2. Review the relevant laws
"Proposal on and
the Re-election regulations
of DRCO's unanimously
Board of approved the
Directors and proposal after
the in-depth
Nomination of discussion.Independent
Director
Candidates for
762025Annual Report of DR Corporation Limited
the Third
Board of
Directors";
3. Review the
"Proposal on
Formulating
the
Resignation
Management
System for
Directors and
Senior
Management";
4. Review the
"Proposal on
Formulating
the Board
Diversity
Policy"
IX. Work of the Audit Committee
Whether the Audit Committee identified any risk to DRCO through supervisory activities during the
Reporting Period
□Yes?No
The Audit Committee had no objection to the matters under its supervision during the Reporting Period.X. Employees of DRCO
1. Employee number professional composition and educational background
Number of current employees of the parent Company as of the end of
the Reporting Period (persons) 1457
Number of current employees of major subsidiaries as of the end of the
Reporting Period (persons) 537
Total number of current employees as of the end of the Reporting
Period (persons) 1994
Total number of employees on payroll in the current period (persons) 1994
Number of retired employees for whom the parent company and its
major subsidiaries are responsible for the retirement benefits (persons) 0
Professional composition
Category Number of employees
Sales personnel 1721
Technical personnel 84
Financial personnel 44
Administrative personnel 145
Total 1994
Education background
Category Number of employees
Master's degree and above 50
772025Annual Report of DR Corporation Limited
Bachelor's degree 503
Junior college and below 1441
Total 1994
2. Remuneration policy
DRCO continues to improve the salary system having established a compensation structure and bands
matching the ranks positions and lines of business based on the internal and external remuneration
contexts. Sticking to the strategy of setting positions and salaries based on skills DRCO offers competitive
compensation to top talents.During the Reporting Period DRCO further improved the performance-driven incentive mechanism that
integrates long-term and short-term rewards. Besides the existing monthly quarterly and annual bonuses
the Company also introduced special incentives. Through diversified approaches including incremental
incentives honorary recognition and timely performance feedback DRCO effectively motivated
employees. Meanwhile the Company adhered to the principle of complying with laws and regulations and
balanced efficiency with fairness. By implementing a scientific performance management system the
Company embedded key work objectives into assessment ensuring standardized and orderly compensation
management and fostering a positive working atmosphere to support employees in realizing their personal
value in a meaningful cause.
3. Training program
During the Reporting Period DRCO continued to improve the tiered and classified training system in line
with the strategic planning and staff development requirements. DRCO customized training programs for
new hires core personnel as well as senior management so as to ensure training content is highly aligned
with the operating objectives. On this basis the Company has established a tiered talent training system
covering the headquarters retail terminals and regional markets. At the headquarters level efforts were
focused on enhancing strategic leadership and business management capabilities. For the senior
management and core personnel targeted training programs were delivered centering on key areas such as
the implementation of brand strategies and the upgrade of operation and management so as to strengthen
market insight and business management capabilities. At the level of retail terminals an empowerment
system spanning the entire career cycle has been built. First systematic onboarding guidance was provided
to help new hires quickly develop job competence. Second training was carried out in partnership with
professional institutions including the International Gemological Institute (IGI) to enhance the professional
service capabilities of retail terminals. Third special training camps were organized to promote the
standardization and benchmarking in store operations and improve the operational efficiency of individual
stores. At the level of regional markets city-specific training programs were implemented in light of local
conditions. Tailored training initiatives were launched in line with the characteristics of different regional
markets to meet the needs in markets at all levels and boost the operational efficiency in regional markets.Through the systematic implementation of the above training programs the Company has continuously
improved the overall competence and professional skills of its employees. While meeting the needs of
employee development it has also provided solid talent support for the high-quality development of the
organization.
4. Labor outsourcing
?Applicable □Not applicable
Total working hours for labor outsourcing(hours) 42607
Total remuneration paid for labor outsourcing (RMB) 2237832.68
782025Annual Report of DR Corporation Limited
XI. Profit Distribution Plan and Plan to Convert Reserves into Share Capital
Formulation implementation or adjustment of profit distribution policy particularly cash dividend policy
during the Reporting Period
?Applicable □Not applicable
DRCO implements the profit distribution policy in strict accordance with the relevant provisions of the
Articles of Association of DRCO. The profit distribution plan during the Reporting Period complied with
the provisions of the Articles of Association and the review procedures fully protecting the legitimate
rights and interests of all shareholders of DRCO. On May 28 2024 DRCO held the 2024 annual general
meeting of shareholders to review and approve the Proposal on the Profit Distribution Plan for 2024.Based on the total share capital of 400010000 shares as of December 31 2024 DRCO distributed RMB
5.00 in cash (tax inclusive) for every 10 shares to all shareholders amounting to a total cash dividend of
RMB 200005000.00 (tax inclusive). No bonus shares were offered and no capital reserve was converted
into share capital. This profit distribution plan was completed on June 27 2025.Special notes on cash dividend policy
Whether complies with the provisions of the Articles of Association or
the requirements of the resolution of the general meeting of Yes
shareholders:
Whether the criteria and proportion of dividend distribution are clear
and unambiguous: Yes
Whether relevant decision-making procedures and mechanisms are
complete: Yes
Whether independent directors have performed their duties and played
their due roles: Yes
If DRCO does not distribute cash dividends disclose specific reasons
and propose measures to increase investor returns: Not applicable
Whether minority shareholders have the opportunity to fully express
their opinions and requirements and whether their legitimate rights and Yes
interests are fully protected:
If the cash dividend policy is adjusted or changed whether the
conditions and procedures are compliant and transparent: Not applicable
DRCO's profit distribution plan and plan to convert reserves into share capital during the Reporting Period
are in compliance with DRCO's Articles of Association and administrative measures for dividends
?Yes □No □Not applicable
DRCO's profit distribution plan and plan to convert reserves into share capital during the Reporting Period
are in compliance with DRCO's Articles of Association.Profit distribution and capitalization of capital reserve for the year
Number of bonus shares to be distributed for every ten shares (share) 0
Amount to be distributed for every ten shares (RMB) (tax inclusive) 5
Number of shares to be converted into share capital for every ten shares (share) 0
792025Annual Report of DR Corporation Limited
Share capital base in distribution proposal (shares) 400274550
Cash dividend amount (RMB) (tax inclusive) 200137275.00
Amount of cash dividend in other forms (e.g. share repurchase) (RMB) 0.00
Total cash dividends (including those in other forms) (RMB) 200137275.00
Distributive profit (RMB) 1031326658.07
Proportion of total cash dividends (including those in other forms) in total profit
distribution 100.00%
Proposed cash dividend distribution
If the Company's development stage is hard to distinguish but the Company has significant capital expenditure arrangements the minimum cash
dividend should be at least 20% of the profit distribution.Details of the profit distribution plan or the plan to convert reserves into share capital
Audited by Deloitte Touche Tohmatsu CPA Ltd. (Special General Partnership) the net profit attributable to shareholders of the listed company in
the consolidated financial statements for the year 2025 amounted to RMB 139104912.36 of which the net profit attributable to the parent
company was RMB 111621480.79. According to the relevant provisions of the Company Law and DRCO's Articles of Association when
distributing the current year's after-tax profit DRCO should set aside 10% of the profit into the statutory surplus reserve and no further statutory
surplus reserve will be withdrawn when the cumulative amount of the Company's statutory surplus reserve reaches 50% or more of its registered
capital. The cumulative opening balance of the Company's statutory surplus reserve was RMB 200005000.00 and RMB 0 was appropriated to
the statutory surplus reserve for the year. There was no loss to be compensated. As of December 31 2025 the cumulative undistributed profits in
the consolidated financial statements of the Company amounted to RMB 1200332246.60 and the cumulative undistributed profits of the parent
company amounted to RMB 1031326658.07. According to the principle of the lower of the distributable profits in the consolidated financial
statements and the parent company's financial statements as of December 31 2025 the profit available for distribution to shareholders is RMB
1031326658.07.Taking full account of the cash flow situation and ensuring DRCO's normal operation and long-term development adhering to
the principle of continuous return to shareholders and sharing operating results with all shareholders the proposed profit distribution plan for the
year 2025 is as follows: based on the total share capital of 400274550 shares as of December 31 2025 a cash dividend of RMB 5 (tax inclusive)
per 10 shares is proposed to be distributed to all shareholders amounting to a total cash dividend of RMB 200137275.00 (tax inclusive). No
bonus shares will be issued and no capital reserve will be capitalized into share capital.During the period from the date of disclosure of the relevant announcement on profit distribution to the registration date of implementation of
equity distribution if the total share capital of the Company changes due to convertible debt to equity share repurchase equity incentive exercise
listing of new shares in refinancing etc. the Company will maintain the distribution ratio per share unchanged and adjust the total distribution
accordingly.DRCO recorded profits and the parent company recorded positive profits available for distribution to
shareholders during the Reporting Period but there is no proposal for cash dividend.□Applicable?Not applicable
XII. Implementation of Share Incentive Scheme Employee Stock Ownership Scheme or Other
Incentive Measures for Employees
?Applicable □Not applicable
1. Share Incentive Scheme
During the Reporting Period DRCO implemented its 2025 share incentive scheme under which the
incentive instruments adopted were Class I restricted shares and Class II restricted shares. On July 10
2025 the Company held the 14th meeting of the 2nd Board of Directors and on July 30 2025 it held the
2nd Extraordinary General Meeting of 2025 at which the Proposal on DRCO's 2025 Restricted Share
Incentive Scheme (Draft) and Its Summary and other related proposals were reviewed and approved. Under
this incentive scheme the total number of shares (Class I restricted shares and Class II restricted shares) to
be granted to the incentive recipients shall not exceed 901900 shares accounting for 0.2255% of the
802025Annual Report of DR Corporation Limited
Company's total share capital of 400010000 shares prior to the announcement of the draft incentive
scheme. The number of recipients in the initial grant shall not exceed 27 persons at an issue price of RMB
15.12 per share.
On August 26 and 27 2025 the Company respectively held the 4th meeting of the Remuneration and
Appraisal Committee of the 2nd Board of Directors and the 15th meeting of the 2nd Board of Directors at
which the Proposal on Adjusting Matters Related to the 2025 Restricted Share Incentive Scheme and the
Proposal on the Initial Grant of Restricted Shares to the Incentive Recipients under the 2025 Restricted
Share Incentive Scheme were reviewed and approved. The Remuneration and Appraisal Committee of the
Board verified the list of recipients eligible for the initial grant of restricted shares under the incentive
scheme and issued opinions on whether the conditions for the recipients to obtain the granted shares had
been satisfied. A law firm also issued a corresponding legal opinion.Pursuant to the authorization granted by the 2nd Extraordinary General Meeting of 2025 the Board
adjusted the list of incentive recipients in the initial grant and the number of shares to be granted under the
incentive scheme and cancelled the grant of 6783 Class II restricted shares to one proposed recipient.Following such adjustment the number of incentive recipients in the initial grant under the incentive
scheme was reduced to 26 persons and the total number of shares to be granted under the plan was
reduced to 894900 shares including 716000 shares for the initial grant and 178900 shares reserved for
future grants. Of the initial grant 264600 shares were Class I restricted shares and 451400 shares were
Class II restricted shares. Of the reserved portion 151800 shares were Class I restricted shares and the
reserved portion of Class II restricted shares was unchanged. Meanwhile August 28 2025 was defined as
the initial grant date on which a total of 716000 restricted shares were granted to 26 eligible recipients
comprising 264600 Class I restricted shares granted to 2 recipients and 451400 Class II restricted shares
granted to 25 recipients both at an issue price of RMB 15.12 per share. The listing date of Class I
restricted shares was September 19 2025.Incentive shares received by directors and senior management
?Applicable □Not applicable
Unit: Share
Exercis
Numbe e price Numbe
Numbe r of Numbe Numbe of Market
Numbe
r of r of
r of stock r of r of shares Numbe price at restricte Numbe restricte Grant
Numbe
r of
stock options exercis shares exercis r of the end r of d price of
options newly able exercis ed stock of the
d unlocke shares restricte restricte
Name Positio held at granted shares ed during options Reporti
shares d
n during during the held at ng held at
d newly d shares
the during shares granted shares
beginni the the the Reporti the end Period
the
beginni during during (RMB
held at
ng of Reporti Reporti Reporti ng of the (RMB
the end
ng ng Period period per ng of
the the per
the year ng the period Reporti share)
of the
Period Period Period (RMB share) ng
period
per period Period
share)
Directo
r
Deputy
General
Manage
r (Vice
Preside
Huang nt)
Shuiron Secreta 0 0 0 0 0 0 28.87 0 0 86905 15.12 86905
g ry of
the
Board
and
Financi
al
Directo
r
Chen Directo
Qishen r head 0 0 0 0 0 0 28.87 0 0 20302 15.12 20302
812025Annual Report of DR Corporation Limited
g of
busines
s and
finance
He Lei Directo 13227 13227r COO 0 0 0 0 0 0 28.87 0 0 5 15.12 5
Former
director
Zhao head
Ranran of 0 0 0 0 0 0 28.87 0 0 8993 15.12 8993brand
commu
nication
Total -- 0 0 0 0 -- 0 -- 0 0 24847 -- 248475 5
During the Reporting Period among the restricted shares granted to the aforementioned directors and senior management all
Notes (if any) were Class II restricted shares and remained unvested with the exception of those granted to Mr. He Lei. The Class I
restricted shares granted to Mr. He Lei have not yet been released from transfer restrictions.Assessment mechanism and incentives for senior management
During the Reporting Period DRCO's senior management performed their duties in strict accordance with
the Company Law the Articles of Association of the Company and relevant laws and regulations and
actively implemented all resolutions adopted by the general meeting of shareholders and the Board of
Directors of the Company. The senior management of the Company received remuneration based on
respective positions at the Company. The Company implemented the 2025 restricted share incentive
scheme with the recipients including senior management of the Company. The Remuneration and
Appraisal Committee of the Board of Directors was responsible for organizing and implementing the
restricted share incentive scheme. An assessment team set up by the Human Resources Department of the
Company was responsible for conducting assessments and reporting to the Remuneration and Appraisal
Committee. Relevant departments including the Human Resources Department and the Finance
Department were responsible for collecting and providing relevant data for the assessment and were
accountable for the authenticity and reliability of such data. The Board of Directors of the Company was
responsible for reviewing the assessment results.
2. Implementation of the Employee Stock Ownership Scheme
□Applicable?Not applicable
3. Other Incentive Measures for Employees
□Applicable?Not applicable
XIII. Construction and Implementation of Internal Control System during Reporting Period
1. Construction and implementation of internal control system
During the Reporting Period in accordance with the Basic Standard for Enterprise Internal Control and its
supporting guidelines the Guidelines on Enterprise Internal Control Assessment and other regulatory
requirements in combination with DRCO's own operation and management conditions DRCO further
improved its internal control system and ensured its compliant and robust operation.
(1) Establishment of internal control system
Centering on the five core elements of internal control including internal environment risk assessment
control activities information and communication and internal monitoring DRCO comprehensively
sorted key business modules including organizational structure development strategy human resources
social responsibility corporate culture fund activities procurement asset management sales management
project construction financial reporting comprehensive budgeting contract and seal management
information systems supply chain management and major investments. In 2025 in light of management
822025Annual Report of DR Corporation Limited
practices and changes in the external environment the Company revised or formulated a number of
internal control systems. It revised and improved the Management System for Expense Reimbursement
Management System for Final Accounts of Completed Projects Interpretation of DR Brand Rules and
Identity Verification Specifications and Corporate Information Security Management System. It also
formulated the Measures for the Management of Financial Derivatives Transactions and Assessment
Mechanism for Suppliers in Comprehensive Procurement among others. As a result a scientific
standardized and effective internal control system covering the Company and all its branches and
subsidiaries has been established.
(2) Organizational support for internal control
DRCO has established an internal control governance structure with clearly defined powers and
responsibilities and effective checks and balances. The Board of Directors is responsible for the
establishment improvement and effective implementation of the Company's internal control. The Audit
Committee is responsible for reviewing the Company's financial information and its disclosure and for
supervising and evaluating internal and external audit work as well as internal control. The Audit
Department as the daily implementation and supervision body of internal control organizes and carries
out internal control evaluation under the independent guidance of the Audit Committee conducting
comprehensive and objective inspection and supervision over the effectiveness of the design and operation
of internal control.
(3) Operation and supervision of internal control
During the Reporting Period focusing on high-risk areas in business operations (including fund activities
supply chain management procurement management and project management) DRCO has established a
control mechanism covering the whole process from pre-event prevention in-process control and post-
event supervision. In terms of pre-event prevention the Company enhanced the risk prevention awareness
of all employees through compliance training integrity education systems and supplier integrity
agreements. It carried out anti-fraud publicity set up reporting channels and protected whistleblowers. In
terms of in-process control relying on OA SAP business middle-office and other information systems
the Company realized process and authority-based control over key links such as sales procurement funds
and finance. In terms of post-event supervision the Audit Department independently conducted daily
supervision and special audits and promptly organized rectification of deficiencies identified in internal
control forming a closed loop of risk assessment internal control establishment internal control
evaluation and deficiency rectification.
(4) Conclusion of internal control assessment
In accordance with the Guidelines on Enterprise Internal Control Assessment and relevant requirements
DRCO conducted internal control assessment with December 31 2025 as the benchmark date. The scope
of assessment covered the Company and its subsidiaries with a focus on high-risk areas including fund
activities supply chain management procurement management and project management. As the
assessment results indicated DRCO had no key or material deficiencies in the internal control of financial
reporting in the Reporting Period nor had any key or material deficiencies in the internal control of non-
financial reporting.
(5) Internal control audit
Deloitte Touche Tohmatsu CPA Ltd. (Special General Partnership) conducted an independent audit on the
effectiveness of DRCO's internal control over financial reporting as of December 31 2025 and issued the
Internal Control Audit Report (De Shi Bao (Han) Zi (26) No. Q00581) which stated that as of December
31 2025 DRCO maintained effective internal control over financial reporting in all material respects in
accordance with the Basic Standard for Enterprise Internal Control and relevant provisions.
2. Details of major deficiencies in internal control identified during the Reporting Period
□Yes?No
832025Annual Report of DR Corporation Limited
XIV. Management and Control of Subsidiaries during Reporting Period
Company name Integration plan Progress ofintegration Problems Countermeasures Working progress
Follow-up
resolution
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Whether there are abnormalities in the management and control of subsidiaries
□Yes?No
XV. Internal Control Self-Assessment Report and Internal Control Audit Report
Disclosure date of the full text of the Internal
Control Self-assessment Report April 28 2026
Disclosure index of the full text of the Internal Please refer to the 2025 Internal Control Self-Evaluation Report disclosed in
Control Self-assessment Report www.cninfo.com.cn
Total assets of entities included in the scope of
assessment as a percentage of total assets in 100.00%
DRCO's consolidated financial statements
Revenue of entities included in the scope of
assessment as a percentage of revenue in 100.00%
DRCO's consolidated financial statements
Criteria for identifying deficiencies
Category Financial report Non-financial report
(1) Material deficiencies: correction of (1) Material deficiencies: Violation of the
material errors in published financial reports; State's laws regulations or regulatory
failure of the audit committee and the audit documents; lack of decision-making
department to oversee the internal control; procedures or unscientific decision-making
findings of fraud involving directors process that results in material errors; lack of
supervisors and senior management of DRCO; systems or systemic failures of the system for
material misstatements in current financial important businesses; failure to rectify
reports identified by the CPA but not by material weakness identified by the internal
DRCO's internal control department. (2) control assessment. (2) Significant
Qualitative criteria Significant deficiencies: failure to select and deficiencies resulting from deviations ofapply accounting policies in accordance with DRCO's decision-making process from the
GAAP; failure to establish anti-fraud objectives; deficiencies in significant business
procedures and control measures; and one or policies or systems; failure to correct
more deficiencies of the financial reporting significant deficiencies identified in the
for which the truthfulness and accuracy of the internal control assessment. (3) General
financial statements cannot be reasonably deficiencies: Inefficiency of DRCO's decision-
assured. (3) General deficiencies: Other making process; deficiencies in general
control deficiencies related to financial business policies or systems; failure to correct
reporting that do not constitute material general deficiencies identified in the internal
deficiencies or significant deficiencies. control assessment.
1. Losses resulting or likely to result from
deficiencies in internal control are measured Direct property losses resulting from direct or
against consolidated revenue if they have potential negative impacts of the deficiencies
impacts on the income statement. (1) Material in internal control are measured against the
Quantitative criteria deficiencies: Misstatement ≥ 2% of
total consolidated assets. (1) Material
consolidated revenue. (2) Significant deficiencies: direct property losses ≥ 1% of
deficiencies: 1% ≤misstatement <2% of the total consolidated assets. (2) Significant
consolidated revenue. (3) General deficiencies: 0.5% ≤ direct property losses
deficiencies: Misstatement < 1% of the total <1% of total consolidated assets. (3) General
consolidated assets. 2. Losses resulting or deficiencies: direct property losses <0.5% of
842025Annual Report of DR Corporation Limited
likely to result from deficiencies in internal total consolidated assets.controls are measured against total
consolidated assets if they have impacts on the
asset management. (1) Material deficiencies:
Misstatement ≥ 1% of the total consolidated
assets. (2) Significant deficiencies: 0.5%≤
misstatement <1% of the total consolidated
assets. (3) General deficiencies: misstatement
< 0.5% of the total consolidated assets.Number of material deficiencies in financial
reporting (#) 0
Number of material deficiencies in non-
financial reporting (#) 0
Number of significant deficiencies in financial
reporting (#) 0
Number of significant deficiencies in non-
financial reporting (#) 0
1. Internal control self-assessment report
2. Internal control audit reports
?Applicable □Not applicable
Opinion paragraph in the Internal Control Audit Report
In our view as of December 31 2025 DRCO maintained effective internal control over financial reporting in all material respects in
accordance with the Basic Standard for Enterprise Internal Control and relevant regulations.Internal control audit disclosure Disclosed
Disclosure date of the full text of the
Internal Control Audit Report April 28 2026
Disclosure index of the full text of the
Internal Control Audit Report Please refer to the 2025 Internal Control Audit Report disclosed in www.cninfo.com.cn
Type of opinion in the Internal Control
Audit Report Standard unqualified opinion
Whether there are material deficiencies in
non-financial reporting No
Did the accounting firm issue the Internal Control Audit Report with non-standard opinion
□ Yes?No
Is the opinion expressed in the Internal Control Audit Report issued by the accounting firm consistent with
the Board of Directors' self-assessment report
? Yes □No
Is a non-standard audit opinion on internal control issued during the Reporting Period or in the previous
year
□ Yes?No
852025Annual Report of DR Corporation Limited
XVI. Rectification in Self-Inspection Required by Special Campaign to Improve Governance of
Listed Companies
Not applicable
XVII. Environmental Information Disclosure
Whether the listed company and its main subsidiaries are included in the list of enterprises required to
disclose environmental information in accordance with the law
□Yes? No
XVIII. Fulfillment of Social Responsibilities
Please refer to the 2025 Environmental Social and Corporate Governance Report disclosed in
www.cninfo.com.cn on April 28 2026.XIX. Contribution to the Consolidation and Expansion of Poverty Alleviation Achievements and
Rural Revitalization
Not applicable.
862025Annual Report of DR Corporation Limited
Part V. Important Matters
I. Fulfillment of Commitments
1. Commitments fulfilled during the Reporting Period or suspended at the end of the Reporting
Period by DRCO's de facto controllers shareholders related parties acquirers and other committed
parties
?Applicable □Not applicable
Reason Commitment Commitment Description Commitment Commitment Status ofmaker type time period fulfillment
Commitments
made in the
acquisition
report or Not applicable
equity change
report
Commitments
made during
asset Not applicable
restructuring
1.The company shares directly or
indirectly held by DRCO prior to the
proposed offering shall not be transferred
or entrusted to others; or be repurchased
by DRCO for a period of 36 months from
the date of listing of DRCO's shares.
2.If the closing price of the Company
shares is lower than the issue price for
twenty consecutive trading days within six
months after the listing of DRCO; or is
less than the issue price at the end of the
six months after the listing (June 15 2022
extended in case of non- trading day) the
lock-up period when the Company shares
are held by DRCO shall be automatically
extended by six months (subject to
adjustment in accordance with the relevant
regulations of CSRC and SZSE in the
event of ex- rights and ex- dividend events
such as dividend distribution bonus issue
Commitments transfer of shares issue of additional
made at the DR shares or rights issue by DRCO during the
time of the Investment Commitments above- mentioned period). December 15
Completion
initial public (Zhuhai) Co. to lock-up 3.In case of any breach of the relevant
December 15 2021 to June of
offering or Ltd. commitments DRCO will promptly
2021 15 2025 performanc
refinancing announce relevant facts and reasons and
e
will publicly apologize to the shareholders
and public investors except of force
majeure or other reasons beyond control.Any profit made as a result of the non-
fulfillment of the commitments will
belong to DRCO. The company shall be
held liable for compensating DRCO or
investors in accordance with laws in the
event of any loss that is caused to DRCO
or investors as a result of the non-
fulfillment of the relevant commitment.DRCO shall have the right to temporarily
withhold the cash dividends (if any) to
which the Company is entitled until
adverse impact arising from the non-
fulfillment of the relevant commitments
have been fully eliminated.The above commitments shall not be
terminated due to the fact that the
Company steps down as the controlling
shareholder of DRCO.
872025Annual Report of DR Corporation Limited
1.The company shares directly or
indirectly held by DRCO prior to the
proposed offering shall not be transferred
or entrusted to others; or be repurchased
by DRCO for a period of 36 months from
the date of listing of DRCO's shares.
2.If the closing price of the Company
shares is lower than the issue price for
twenty consecutive trading days within six
Gongqingchen months after the listing of DRCO; or is
g Wendi No. 1 less than the issue price at the end of the
Investment six months after the listing (June 15 2022
Management extended in case of non- trading day) the
Partnership lock-up period when the Company shares
(LP) are held by DRCO shall be automatically
Commitments Gongqingchen extended by six months (subject to
made at the g Wendi No. 2 adjustment in accordance with the relevant Completion
time of the Investment Commitments regulations of CSRC and SZSE in theevent of ex- rights and ex- dividend events December 15
December 15 of
initial public Management to lock-up 2021 2021 to June performanc
offering or Partnership such as dividend distribution bonus issue 15 2025
refinancing (LP) transfer of shares issue of additional
e
Gongqingchen shares or rights issue by DRCO during the
g Wendi No. 3 above- mentioned period).Investment 3.In case of any breach of the relevant
Management commitments DRCO will promptly
Partnership announce relevant facts and reasons and
(LP) will publicly apologize to the shareholdersand public investors except of force
majeure or other reasons beyond control.Any profit made as a result of the non-
fulfillment of the commitments will
belong to DRCO. The company shall be
held liable for compensating DRCO or
investors in accordance with laws in the
event of any loss that is caused to DRCO
or investors as a result of the non-
fulfillment of the relevant commitment.
1.The company shares directly or
indirectly held by DRCO prior to the
proposed offering shall not be transferred
or entrusted to others; or be repurchased
by DRCO for a period of 36 months from
the date of listing of DRCO's shares.
2.If the closing price of the Company
shares is lower than the issue price for
twenty consecutive trading days within six
months after the listing of DRCO; or is
less than the issue price at the end of the
six months after the listing (June 15 2022
extended in case of non- trading day) the
lock-up period when the Company shares
are held by me shall be automatically
extended by six months (subject to
Commitments adjustment in accordance with the relevant
made at the regulations of CSRC and SZSE in the Completion
time of the Zhang Guotao Commitments event of ex- rights and ex- dividend events December 15 December 15 of
initial public and Lu Yiwen to lock-up such as dividend distribution bonus issue 2021 2021 to June performanc
offering or transfer of shares issue of additional 15 2025 e
refinancing shares or rights issue by DRCO during the
above- mentioned period). 3. Within six
months after resignation do not transfer
the Company shares directly or indirectly
held by oneself; if I resign within six
months of DRCO's shares being listed I
shall not transfer any shares held directly
or indirectly in DRCO within 18 months
of my resignation; if I resign between the
seventh and twelfth months of DRCO's
shares being listed I shall not transfer any
shares held directly or indirectly in DRCO
within 12 months of my resignation.
4. In case of any breach of the relevant
commitments I will promptly announce
the facts and reasons for the breach of
commitments and will publicly apologize
882025Annual Report of DR Corporation Limited
to DRCO's shareholders and public
investors except of force majeure or other
reasons beyond my control. Any profit
made as a result of the non-fulfillment of
the relevant commitments will belong to
DRCO. I shall be held liable for
compensating DRCO or investors in
accordance with laws in the event of any
loss that is caused to DRCO or investors
as a result of the non-fulfillment of the
relevant commitments. DRCO shall have
the right to temporarily withhold the cash
dividends (if any) to which I am entitled
and suspend the payment of my
remuneration or allowances during my
employment with DRCO until adverse
impact arising from the non- fulfillment of
the relevant commitments have been fully
eliminated.The above Commitment shall not
terminate if I step down as the actual
controller of DRCO or if I change my
position or resign from DRCO.In case of reducing the shareholding
within two years after the expiry of the
aforesaid lock-up period DRCO will
exactly comply with relevant regulations
of the CSRC and the SZSE on share
reduction prudently formulate a share
reduction plan; reduce the shareholding by
law; make an official announcement three
trading days prior to the reduction; and
fulfill information disclosure obligations
in a timely and accurate manner in
accordance with the rules of the SZSE.The price for the reduction transaction
shall not be lower than the issue price
(subject to adjustments in accordance with
the relevant regulations of CSRC and
SZSE in the event of ex- rights and ex-
dividend events such as dividend
distribution bonus issue transfer of
shares issue of additional shares or rights
Commitments issue by DRCO during the above-
made at the DR Commitments mentioned period).time of the Investment to share In case of any breach of the relevant
June 16 2025
initial public (Zhuhai) Co. reduction commitments DRCO will promptly
June 16 2025 to June 15 Performing
offering or Ltd. announce relevant facts and reasons and 2027
refinancing will publicly apologize to the shareholders
and public investors except of force
majeure or other reasons beyond control.Any profit made as a result of the non-
fulfillment of the commitments will
belong to DRCO. The company shall be
held liable for compensating DRCO or
investors in accordance with laws in the
event of any loss that is caused to DRCO
or investors as a result of the non-
fulfillment of the relevant commitment.DRCO shall have the right to temporarily
withhold the cash dividends (if any) to
which the Company is entitled until
adverse impact arising from the non-
fulfillment of the relevant commitments
have been fully eliminated.The above commitments shall not be
terminated due to the fact that the
Company steps down as the controlling
shareholder of DRCO.Commitments Gongqingchen In case of reducing the shareholding
made at the g Wendi No. 1
time of the Investment Commitments
within two years after the expiry of the
aforesaid lock-up period DRCO will June 16 2025
initial public Management to sharereduction exactly comply with relevant regulations
June 16 2025 to June 15 Performing
offering or Partnership of the CSRC and the SZSE on share 2027
refinancing (LP) reduction prudently formulate a share
892025Annual Report of DR Corporation Limited
Gongqingchen reduction plan; reduce the shareholding by
g Wendi No. 2 law; make an official announcement three
Investment trading days prior to the reduction; and
Management fulfill information disclosure obligations
Partnership in a timely and accurate manner in
(LP) accordance with the rules of the SZSE.Gongqingchen The price for the reduction transaction
g Wendi No. 3 shall not be lower than the issue price
Investment (subject to adjustments in accordance with
Management the relevant regulations of CSRC and
Partnership SZSE in the event of ex- rights and ex-
(LP) dividend events such as dividend
distribution bonus issue transfer of
shares issue of additional shares or rights
issue by DRCO during the above-
mentioned period).In case of any breach of the aforesaid
commitments DRCO will promptly
announce the facts and reasons for the
breach of commitments and will publicly
apologize to the shareholders and public
investors except of force majeure or other
reasons beyond control. Any profit made
as a result of the non-fulfillment of the
relevant commitments will belong to
DRCO. The company shall be held liable
for compensating DRCO or investors in
accordance with laws in the event of any
loss that is caused to DRCO or investors
as a result of the non-fulfillment of the
relevant commitments.I. Commitment regarding the avoidance of
competitive business activities
1. As of the date of this commitment letter
except for the Company and its wholly-
owned or controlled subsidiaries the
Company/I and other enterprises
organizations or entities controlled by the
Company/me are not currently engaged
directly or indirectly in any business
activities that constitute competition with
the main business of the Company and its
wholly-owned or controlled subsidiaries;
2. No engagement or association with
others directly or indirectly is allowed in
any business which is the same as similar
to or in any way competitive with the
issuer;
3. All of efforts shall be made to ensure
Commitments DR Commitments
other affiliates of the commitment makers
on horizontal not to deal in any business that is the samemade at the Investment
time of the (Zhuhai) Co. competition
as similar to or in any way competitive
connected with the issuer; December 15 Permanentlyinitial public Ltd. Zhang Performing
offering or Guotao and Lu transactions
4. No investment shall be permitted in a 2021 valid
and capital company enterprise or other entity orrefinancing Yiwen appropriation organization whose business is the sameas similar to or in any way competitive
with the issuer;
5. Any know- how or business secrets
such as sales channels or customer
information shall be disclosed to any
other company enterprise or other entity
organization or person whose business is
the same as similar to or in any way
competitive with that of the issuer;
6. If in the future the Company/I get any
business opportunity from any third party
that may compete with the issuer in the
same line of business the Company/I will
in accordance with the principle of the
priority of the issuer inform the issuer
immediately and assist the issuer to the
extent possible in obtaining such business
opportunity;
7. If the Company/I breach the above
902025Annual Report of DR Corporation Limited
commitments and cause financial loss to
the issuer the Company/I shall be jointly
and severally liable for all losses suffered
by the issuer as a result and the proceeds
obtained by DRCO/I as a result of such
breach shall accrue to the issuer.II. Commitment on reducing and
regulating connected transactions
1. The company/I shall try to avoid or
reduce the occurrence of connected
transactions with DRCO and the
subsidiary entities and urge the associate
parities of the Company and mine to avoid
or reduce the connected transactions with
DRCO and the subsidiary entities.
2. If the transactions between I/the
Company or relevant parities of mine/the
Company with DRCO and the subsidiary
entities are necessary and unavoidable
I/the Company undertakes to operate at
arm's length in accordance with market-
based principles and fair prices and
comply with the transaction procedures
and information disclosure obligations in
accordance with the relevant laws and
regulations regulatory documents rules of
the stock exchange and the Articles of
Association of DRCO and ensure that the
legitimate rights and interests of the issuer
and its other shareholders or stakeholders
are not prejudiced by connected
transactions.
3. If I/the Company or the connected party
of mine/the Company breaches the above
commitment I/the Company shall be held
liable for all the liabilities arising
therefrom and shall fully compensate or
indemnify DRCO and its shareholders or
stakeholders for all losses caused thereby.
4. This commitment letter shall take effect
from the date of the signature of mine/the
Company and shall expire on the date
when 12 months have elapsed since I/the
Company cease to be affiliated with
DRCO.If the issuer and its subsidiaries receive a
notice of correction from the competent
administrative authorities because the
properties leased by them have not been
registered for lease filing in accordance
with the laws regulations and normative
documents currently in force the
Commitments DR Commitments
Company/I will actively supervise the
to issuer and its subsidiaries to makemade at the Investment compensating rectification in accordance with thetime of the (Zhuhai) Co. the issuer for requirements. In the event that the issuer December 15 Permanentlyinitial public Ltd. Zhang possible losses and its subsidiaries suffer financial losses 2021 valid
Performing
offering or Guotao and Lu due to the due to failure to register the lease defectsrefinancing Yiwen leased property in the title of the leased property or defectsin the rights of the lessor defects in the
properties built on the leased collective
land or administratively allocated land the
Company/I shall agree to use our own
funds to fully compensate the issue and its
subsidiaries so that they do not suffer any
financial losses as a result.Commitment to In the event that the issuer or itsCommitments DR subsidiaries are required by the competent
made at the Investment retroactivepayment of authorities to make retroactive paymentstime of the (Zhuhai) Co.initial public Ltd. Zhang social security
due to failure to make full payment of December 15 Permanently
contributions social security contributions or housing 2021 valid
Performing
offering or Guotao and Lu and housing fund in accordance with laws therefinancing Yiwen provident fund Company/I shall be fully liable for theretroactive payments and shall ensure that
912025Annual Report of DR Corporation Limited
the issuer or its subsidiaries shall not
suffer any financial loss as a result.
1. In the event of a breach of the relevant
commitments DRCO will promptly
Commitments disclose the fact and reasons for the breach
made at the Binding and except for force majeure or other
time of the DR measures in reasons beyond DRCO's control DRCO
initial public Corporation case of failure will make a public apology to its
December 15 Permanently Performing
offering or Limited to fulfill shareholders and public investors;
2021 valid
refinancing Commitments 2. If the failure to fulfill the relevantcommitments caused losses to investors
DRCO shall compensate investors for
losses in accordance with laws.
1. In case of any breach of the aforesaid
commitments DRCO will promptly
announce the facts and reasons for the
breach of commitments and will publicly
apologize to the shareholders and public
investors except of force majeure or other
reasons beyond control.;
2. Any profit made as a result of the non-
Commitments fulfillment of the relevant commitments
made at the DR Binding will belong to the Company. The company
time of the Investment measures in shall be held liable for compensating
initial public (Zhuhai) Co. case of failure DRCO or investors in accordance with
December 15 Permanently Performing
offering or Ltd. to fulfill laws in the event of any loss that is caused
2021 valid
refinancing Commitments to DRCO or investors as a result of thenon-fulfillment of the relevant
commitments.
3. In the event of a breach of the relevant
commitments DRCO shall be entitled to
withhold the cash dividends (if any) to
which the Company is entitled until the
adverse impact arising from the non-
fulfillment of the relevant commitments
has been fully eliminated.
1. In case of any breach of the aforesaid
commitments I will promptly announce
the facts and reasons for the breach of
commitments and will publicly apologize
Zhang Guotao to the shareholders and public investors
Lu Yiwen except of force majeure or other reasons
Wei Qingxing beyond control.;
Huang 2. Any profit made as a result of the non-
Commitments Shuirong Hu fulfillment of the relevant commitments
made at the Xiaoming Binding will belong to the Company. The company
time of the Chen Qisheng measures in shall be held liable for compensatingLi Yang case of failure DRCO or investors in accordance with December 15 Permanentlyinitial public Performing
offering or Liang Jun to fulfill laws in the event of any loss that is caused
2021 valid
refinancing Zhong Min Commitments to DRCO or investors as a result of theLin Zhenghai non-fulfillment of the relevant
Zhao Ranran commitments.Yin Luwen 3. In the event of a breach of the relevant
and Wang commitments I shall be entitled to
Tong withhold the cash dividends (if any) to
which I am entitled until the adverse
impact arising from the non-fulfillment of
the relevant commitments has been fully
eliminated.
1. DRCO has disclosed the information of
shareholders in the prospectus in a true
Commitments complete and accurate manner;
relating to 2. There are no cases of proxy
disclosing shareholding or fiduciary shareholding inCommitments shareholder DRCO's development history and theremade at the
time of the DR information
are no disputes or potential disputes over
equities etc.; December 15 Permanently
initial public Corporation when applying Performing
offering or Limited for initial
3. No stockholders directly or indirectly 2021 valid
public offering hold shares of the issuer which isrefinancing and listing on prohibited by laws and regulations;
the ChiNext 4. No intermediary participating into the
Market offering or its supervisor seniormanagement or managerial personnel
directly or indirectly hold shares of the
issuer;
922025Annual Report of DR Corporation Limited
5. DRCO does not have any improper
transfer of benefits with the issuer's equity;
6. If DRCO breaches the above
commitments it will be liable for all legal
consequences arising therefrom.After the expiry of the lock-up
commitment I will declare annually to
DRCO the shares I have owned directly or
indirectly in DRCO and any changes
therein during my tenure as a director
supervisor or senior manager of DRCO.The shares transferred each year will not
exceed 25% of the total number of shares I
hold directly or indirectly in DRCO.In case of reducing the shareholding
within two years after the expiry of the
lock-up period I will exactly comply with
the relevant regulations of the CSRC and
the SZSE on shareholding reduction
prudently formulate a shareholding
reduction plan reduce the shareholding
through lawful means and make an
announcement through DRCO three
trading days prior to the reduction and
fulfill information disclosure obligations
in a timely and accurate manner in
accordance with the rules of the SZSE.The reduction price shall not be lower than
the issue price (subject to adjustments in
Commitments accordance with the relevant regulations of
made at the CSRC and SZSE in the event of ex- rights
time of the Zhang Guotao Share reduction and ex- dividend events such as dividend June 16 2025
initial public and Lu Yiwen commitment distribution bonus issue transfer of June 15 2025 to June 15 Performing
offering or shares issue of additional shares or rights 2027
refinancing issue by DRCO during the above-
mentioned period).In case of any breach of the relevant
commitments I will promptly announce
the facts and reasons for the breach of
commitments and will publicly apologize
to DRCO's shareholders and public
investors except of force majeure or other
reasons beyond my control. Any profit
made as a result of the non-fulfillment of
the relevant commitments will belong to
DRCO. I shall be held liable for
compensating DRCO or investors in
accordance with laws in the event of any
loss that is caused to DRCO or investors
as a result of the non-fulfillment of the
relevant commitments. DRCO shall have
the right to temporarily withhold the cash
dividends (if any) to which I am entitled
and suspend the payment of my
remuneration or allowances during my
employment with DRCO until adverse
impact arising from the non- fulfillment of
the relevant commitments have been fully
eliminated.If as a result of a false record misleading
statement or material omission in the
prospectus for DRCO's proposed offering
and listing which constitutes a material
and substantial effect on the determination
Commitments of whether DRCO complies with the
made at the offering conditions as required by laws
time of the DR ShareCorporation repurchase within 10 working days from the date such December 15 Permanentlyinitial public Limited commitment illegal facts are determined by the CSRC 2021 valid
Performing
offering or the stock exchange or a competent
refinancing authority such as a judicial authority
DRCO will initiate the share repurchase
procedure in accordance with laws to
repurchase all the new shares in the initial
public offering. The repurchase price shall
be no less than the issue price of DRCO's
932025Annual Report of DR Corporation Limited
shares plus interest on deposits with banks
for the same period from the issue of the
shares to the time of repurchase (the above
price will be adjusted accordingly in the
event of ex- dividend or ex- rights actions
such as dividend payment bonus issue
conversion of reserves into share capital
issuance of additional shares or rights
issue after the listing of DRCO).If as a result of a false record misleading
statement or material omission in the
prospectus for DRCO's proposed offering
and listing which constitutes a material
and substantial effect on the determination
of whether DRCO complies with the
offering conditions as required by laws
within 10 working days from the date such
illegal facts are determined by the CSRC
the stock exchange or a competent
authority such as a judicial authority the
Commitments DR Company/I will initiate the share buyback
made at the Investment procedure in accordance with laws to buy
time of the (Zhuhai) Co. Share back all restricted shares having beenrepurchase transferred and the consideration for such December 15 Permanentlyinitial public Ltd. Zhang Performing
offering or Guotao and Lu commitment buyback will not be lower than the issue
2021 valid
refinancing Yiwen price of DRCO plus the interest ondeposits with banks for the same period
from the time of stock issuance to the time
of buyback (subject to adjustment in
accordance with the relevant regulations of
CSRC and SZSE in the event of ex- rights
and ex- dividend events such as dividend
distribution bonus issue transfer of
shares issue of additional shares or rights
issue by DRCO during the above-
mentioned period). At the same time the
Company/I will urge DRCO to repurchase
all of its new shares issued during the IPO.
1. The company/I undertake and guarantee
DR that there is no fraud in the proposed
Commitments Corporation Commitments offering and listing of DRCO;
made at the Limited DR to share 2. If DRCO does not meet the listing
time of the Investment repurchase in conditions but fraudulently obtains thecase of issuance registration and has been listed December 15 Permanentlyinitial public (Zhuhai) Co. 2021 valid Performing
offering or Ltd. Zhang fraudulent the Company/I will take share repurchase
refinancing Guotao and Lu offering and process to buy back all new stocks
Yiwen listing publicly issued by DRCO within 5 daysafter confirmed by competent authorities
like CSRC.The proposed public offering may lead to
dilution of investors' immediate returns. In
order to further implement the relevant
provisions of the Opinions of the General
Office of the State Council on Further
Strengthening the Protection of the
Legitimate Rights and Interests of Small
and Medium-sized Investors in the Capital
Market (Guo Ban Fa [2013] No. 110)
optimize the investment return mechanism
Commitments Measures for and safeguard the legitimate rights and
made at the DR and interests of small and medium-sizedtime of the Corporation Commitments investors DRCO intends to take following December 15 Permanentlyinitial public Limited to cover diluted measures to enhance DRCO's profitability 2021 valid
Performing
offering or immediate and strengthen DRCO's ability to sustain
refinancing returns returns:
1. Strengthen the main business and
improving DRCO's sustainable
profitability: DRCO is mainly engaged in
brand operation customized sales R&D
and design of jewelry and customizes
high- quality diamond-inlaid jewelry such
as engagement and wedding rings. To
consolidate its core business DRCO will
take advantage of the rapid development
of China's jewelry industry. Through the
942025Annual Report of DR Corporation Limited
proposed public offering and listing
DRCO will enhance its brand image and
influence expand its marketing network
strengthen its information systems and
improve its creative design ability of
diamond jewelry. DRCO will consolidate
its industry leadership and sharpen its
sustainable profitability by enhancing its
core competitiveness in terms of brand
strength capital strength marketing
network coverage and product design
capability.
2. Accelerate the investment progress of
proceeds-funded projects improve the
efficiency of capital utilization and strive
to achieve the expected returns from the
projects soon as possible. The proceeds-
funded projects include marketing network
construction information system
construction the R&D and creative design
center for diamond jewelry and working
capital replenishment all of which are
related to DRCO's main business. DRCO
will speed up the construction progress of
these projects and improve the capital
utilization to enhance its profitability as
soon as possible. Meanwhile the use of
the proceeds will be strictly managed to
ensure the smooth progress of the
proceeds- funded projects. These projects
will help DRCO further enhance its
market competitiveness consolidate its
existing sales channel advantages and
R&D and design capabilities increase
expand the market share of its main
business and increase the return for
shareholders.
3. Increase the efficiency of daily
operations reduce operating costs and
improve business performance DRCO will
further reduce its operating costs through
reasonable means and improve internal
control operating efficiency and
profitability. At the same time DRCO will
strive to improve the human resources
management and the supporting
compensation system to motivate
employees at all levels continue to attract
top talents and strengthen talent training
optimize the talent pools and reduce the
risk of brain drain hence laying a solid
foundation for its rapid development.
4. Refine the profit distribution policy and
optimize the return on investment
mechanism In order to establish a
continuous stable and scientific
mechanism for investors regarding the
return on investment and to ensure the
continuity and stability of the profit
distribution policy through the systematic
institutional arrangements DRCO has in
accordance with the relevant requirements
clarified the specific conditions ratio and
form of profit distribution improved the
decision-making procedures and
mechanism for profit distribution as well
as the principles for adjusting the profit
distribution policy. DRCO will distribute
profits in strict accordance with the
Articles of Association and other
regulations formulate and implement a
continuous and stable cash dividend plan
and further improve the profit distribution
system especially the cash dividend
policy where necessary refine the investor
952025Annual Report of DR Corporation Limited
return mechanism and effectively
safeguard the legitimate rights and
interests of investors and improve the
mechanism for protecting the rights and
interests of minority investors.
5. Further improving the protection system
for minority investors DRCO has
formulated a series of systems such as the
Investor Relations Management System
and the Information Disclosure
Management System to fully protect the
rights of minority investors to be informed
and to participate in decision- making and
such institutional arrangements ensure
their rights to access the corporate
information choose management officers
and participate in major decisions. DRCO
undertakes to further improve the relevant
systems for protecting minority protectors
in accordance with the implementation
rules or requirements issued by regulatory
authorities including the CSRC and the
stock exchange as well as the common
practices of listed peers.The above- mentioned measures are
designed to not only ensure the effective
use of the funds raised by DRCO and but
also prevent the risk of diluting the
immediate return by the proposed offering
which are conducive to sharpening
DRCO's core competitiveness and
sustainable profitability increasing its
future earnings and enhancing the return
for shareholders. However due to the
objective existence of internal and external
risks faced by DRCO the implementation
of the above measures does not represent a
guarantee of future profits made by
DRCO.
1. The company/I shall not abuse the
position as a controlling shareholder/actual
controller shall not interfere with the
operation and management activities of
DRCO beyond authority and shall not
encroach on the interests of DRCO;
2. The company/I will actively urge
DRCO to effectively implement the
relevant measures to recover the
immediate return;
3. After the CSRC or the SZSE has issued
Commitments DR separate opinions and implementation
made at the Investment Commitments rules on measures and commitments to
time of the (Zhuhai) Co. to cover diluted cover diluted immediate returns if the December 15 Permanently
initial public Ltd. Zhang immediate relevant rules of DRCO and the 2021 valid Performing
offering or Guotao and Lu returns commitments of the Company/me are not
refinancing Yiwen in line with such rules the Company/I
undertake to promptly make additional
commitments in accordance with the rules
of the CSRC or the SZSE and actively
urge DRCO to make new commitments to
satisfy the requirements of the CSRC or
the SZSE;
4. If the Company/I breach the above
commitments and cause losses to DRCO
or investors the Company/I will bear the
responsibility to compensate DRCO or
investors in accordance with laws.Zhang Guotao 1. I neither transmit benefits to other
Commitments Lu Yiwen entities or individuals without
made at the Wei Qingxing Commitments compensation or on unfair terms nor in
time of the Huang to cover diluted any other way harm the interests of December 16 Permanently
initial public Shuirong Hu immediate DRCO; 2021 valid Performing
offering or Xiaoming returns 2. I exercise restraint in duty consumption;
refinancing Chen Qisheng 3. I shall not use DRCO's assets to engage
Li Yang in investment and consumption activities
962025Annual Report of DR Corporation Limited
Liang Jun unrelated to the performance of my duties;
Zhong Min 4. I will actively promote the improvement
and Lin of DRCO's remuneration system to make
Zhenghai it better comply with the requirements of
covering diluted immediate returns; I will
support the Board of Directors or
Remuneration Committee of DRCO in
formulating amending and supplementing
DRCO's remuneration system in line with
the implementation of DRCO's measures
to recover the returns;
5. When promoting DRCO's share
incentive scheme (if any) I will actively
promote the link between the exercise
terms of the share incentive and the
implementation of DRCO's measures to
recover the return;
6. After the CSRC or the SZSE has issued
separate opinions and implementation
rules on measures and commitments to
cover diluted immediate returns if my
commitments are not in line with such
rules I undertake to promptly make
additional commitments in accordance
with the rules of the CSRC or the SZSE to
satisfy the requirements of the CSRC or
the SZSE;
7. If I breach the above commitments and
cause losses to DRCO or investors I will
bear the responsibility to compensate
DRCO or investors in accordance with
laws.
1. The prospectus for DRCO's initial
public offering and listing on the ChiNext
Market does not contain any false records
misleading statements or material
omissions and DRCO shall be jointly and
severally liable for the authenticity
accuracy and completeness of the
information thereof.
2. If an investor suffers loss in securities
trading as a result of a false statement
Commitments Commitments misleading statement or material omission
made at the to undertaking in DRCO's prospectus DRCO shall
time of the DR compensate the investor for the loss inCorporation liability for accordance with laws; December 15 Permanentlyinitial public Limited compensation
Performing
offering or in accordance 3. In the event of a breach of the relevant
2021 valid
refinancing with laws commitments DRCO will promptlydisclose the fact and reasons for the breach
and except for force majeure or other
reasons beyond DRCO's control DRCO
will make a public apology to its
shareholders and public investors. If losses
are caused to investors compensation will
be made in accordance with laws.Meanwhile DRCO will make timely
rectification in accordance with the
requirements of the CSRC or the stock
exchange.
1. The prospectus for DRCO's initial
public offering and listing on the ChiNext
Market does not contain any false records
misleading statements or material
omissions and the Company/I shall be
Commitments DR Commitments jointly and severally liable for the
made at the Investment to undertaking authenticity accuracy and completeness of
time of the (Zhuhai) Co. liability for the information thereof. December 15 Permanently
initial public Ltd. Zhang compensation 2. If an investor suffers loss in securities 2021 valid Performing
offering or Guotao and Lu in accordance trading as a result of a false statement
refinancing Yiwen with laws misleading statement or material omission
in DRCO's prospectus the Company/I
shall compensate the investor for the loss
in accordance with laws;
3. In case of any breach of the foresaid
commitments DRCO will promptly
972025Annual Report of DR Corporation Limited
disclose the facts and reasons for the
breach and except of force majeure or
other reasons beyond our control the
Company will apologize to shareholders
and public investors of DRCO who shall
have the right to temporarily withhold the
cash dividends (if any) to which the
Company is entitled until such time as
adverse impact arising from the non-
fulfillment of the relevant commitments
have been fully eliminated.
1. The prospectus for DRCO's initial
public offering and listing on the ChiNext
Market does not contain any false records
misleading statements or material
omissions and I shall be jointly and
severally liable for the authenticity
accuracy and completeness of the
Zhang Guotao information thereof;
Lu Yiwen 2. If an investor suffers loss in securities
Wei Qingxing trading as a result of a false statement
Huang misleading statement or material omissionin DRCO's prospectus I shall compensate
Commitments Shuirong Hu
made at the Xiaoming
Commitments the investor for the loss in accordance with
time of the Chen Qisheng
to undertaking laws;
Li Yang liability for 3. In case of any breach of the relevant December 15 Permanentlyinitial public Liang Jun compensation commitments DRCO will promptly 2021 valid
Performing
offering or Zhong Min in accordance announce the facts and reasons for therefinancing Lin Zhenghai with laws breach of commitments and will publicly
Zhao Ranran apologize to DRCO's other shareholders
Yin Luwen and public investors except of force
and Wang majeure or other reasons beyond my
Tong control. DRCO shall have the right totemporarily withhold the cash dividends
(if any) to which I am entitled and suspend
the payment of my remuneration or
allowances during my employment with
DRCO until such time as adverse impact
arising from the non- fulfillment of the
relevant commitments have been fully
eliminated.Whether the
commitment is
fulfilled on Yes
time
Details of
specific
reasons and
next steps for
any Not applicable
outstanding
delayed
commitment
2. If there is a profit forecast for DRCO's assets or projects and the Reporting Period is still within
the profit forecast period DRCO provides an explanation of the assets or projects meeting the
original profit forecast and the reasons thereof
□Applicable?Not applicable
3. The company's commitment involving performance
□Applicable?Not applicable
II. Whether the Controlling Shareholders and Other Associates of DRCO Have Misappropriated
DRCO's Funds for Non-Business Purpose
□Applicable?Not applicable
No controlling shareholders and other associates of DRCO have misappropriated DRCO's funds for
982025Annual Report of DR Corporation Limited
nonbusiness purpose.III. Whether External Guarantees Are Provided in Violation of Provisions
□Applicable?Not applicable
During the Reporting Period DRCO didn't provide external guarantees in violation of provisions.IV. Statements of the Board of Directors on Latest "Non-standard Audit Report"
□Applicable?Not applicable
V. Statements of the Board of Directors Audit Committee and the Independent Directors (if any) on
the "Non-standard Audit Report" Issued by the Accounting Firm for the Reporting Period
□Applicable?Not applicable
VI. Statements of the Board of Directors on Any Change in Accounting Policies and Accounting
Estimates or Any Correction of Significant Accounting Errors during Reporting Period
□Applicable?Not applicable
VII. Statements on Changes in Scope of Consolidated Financial Statements Compared with
Financial Report for the Preceding Year
?Applicable □Not applicable
Company name Method of acquisition and disposal of subsidiaries Impact on overall operation andduring the Reporting Period performance
DR Design (Shenzhen) Co. Ltd. Established through investment No significant impact
DARRY RING
JEWELRY(MALAYSIA)SDN.BHD. Established through investment No significant impact
Henan DR Jewelry Deregistered No significant impact
Hangzhou DR Jewelry Co. Ltd. Deregistered No significant impact
VIII. Appointment and Dismissal of Accounting Firms
Currently appointed accounting firm
Name of domestic accounting firm Deloitte Touche Tohmatsu Certified Public Accountants LLP
Remuneration of domestic accounting firm (RMB0'000) 145
Number of consecutive years of audit by domestic accounting firm 1
992025Annual Report of DR Corporation Limited
Names of certified public accountants of domestic accounting firm Peng Jinyong Luo Wei
Number of continuous years of audit services by certified public
accountants of domestic accounting firm Peng Jinyong 1 year Luo Wei 1 year
Whether the accounting firm was changed
?Yes □No
Whether the accounting firm was changed during the audit period
□Yes?No
Whether approval procedures were fulfilled for the change of accounting firm
?Yes □No
Explanation of the appointment and dismissal of the accounting firm
On July 10 2025 the 14th meeting of the second session of the Board of Directors was held followed by
the 2025 Second Extraordinary General Meeting on July 30 2025. The meetings deliberated and passed
the Proposal on the Change of the 2025 Annual Audit Institution. It was agreed that the Company's audit
institution for the year 2025 would be changed to Deloitte Touche Tohmatsu Certified Public Accountants
LLP (Special General Partnership) (hereinafter referred to as "Deloitte") which would be responsible for
the audit of the Company's 2025 annual financial report and internal controls for a term of one year. For
further details please refer to the Announcement on the Change of the 2025 Annual Audit Institution
(Announcement No.: 2025-036) disclosed by the Company on July 11 2025 on the Juchao Information
Website (www.cninfo.com.cn).In October 2025 the Company received the Letter Regarding the Change of Signing Certified Public
Accountants for the 2025 Annual Audit of DR Corporation Limited issued by Deloitte. Due to the
departure of the original signing Certified Public Accountant (CPA) Mr. Zhong Zhengqiao Deloitte
appointed Ms. Luo Wei to succeed Mr. Zhong Zhengqiao as the signing CPA for the Company's 2025
annual audit project to complete the audit work for the 2025 financial report and internal controls. The
company's signing CPAs were changed from Mr. Peng Jinyong and Mr. Zhong Zhengqiao to Mr. Peng
Jinyong and Ms. Luo Wei. For further details please refer to the Announcement on the Change of Signing
Certified Public Accountants (Announcement No.: 2025-061) disclosed by the Company on October 30
2025 on the Juchao Information Website (www.cninfo.com.cn).
Appointment of internal control audit accounting firm financial advisor or sponsor
?Applicable □Not applicable
During the Reporting Period the Company engaged Deloitte Touche Tohmatsu Certified Public
Accountants LLP as the Company's internal control audit accounting firm with audit fees of RMB
270000.
IX. Risk of Delisting after Disclosure of Annual Report
□Applicable?Not applicable
X. Matters Relating to Bankruptcy and Reorganization
□Applicable?Not applicable
No bankruptcy and reorganization-related matters occurred during the Reporting Period.
1002025Annual Report of DR Corporation Limited
XI. Material Litigations and Arbitrations
?Applicable □Not applicable
Basic Whether
information on Amountinvolved estimated
Progress of
litigation Ruling results Enforcement Date of Index forlitigation (RMB0'000) liabilities are (arbitration) and impacts of judgments disclosure inquiry(arbitration) formed
There were .144
cases that don't
meet the criteria
for disclosure of As of the end Cases closed atmaterial
litigation of the
the end of the
Reporting Reporting(arbitration) and
in which DRCO Period 45 of
Period were
executed in
is the plaintiff / 1053.54 No the
claimant aforementione
No impact accordance Not applicable
with the
including d cases had judgments/ruli
140claims been closed
brought by and 99 were
ngs or
DRCO for pending.settlement and
mediation.infringement of
intellectual
property rights.There were 27 Cases closed at
cases that don't As of the end the end of the
meet the criteria of the
for disclosure of Reporting
Reporting
Period 21 of Period werematerial executed in
litigation 521.59 No the No impact accordance Not applicable
(arbitration) and aforementioned cases had with thein which DRCO judgments/ruli
was the been closedand 6 were ngs ordefendant/respon pending settlement anddent. mediation.XII. Punishment and Rectification
□Applicable?Not applicable
There was no significant punishment or rectification during the Reporting Period.XIII. Integrity of DRCO and Its Controlling Shareholders and Actual Controllers
□Applicable?Not applicable
XIV. Material Connected Transactions
1. Connected transactions related to daily operation
□Applicable?Not applicable
There were no connected transactions related to daily operation during the Reporting Period.
2. Connected transactions related to the acquisition or disposal of assets or equity interests
□Applicable?Not applicable
There were no connected transactions related to the acquisition or disposal of assets or equity interests
1012025Annual Report of DR Corporation Limited
during the Reporting Period.
3. Connected transactions relating to common external investments
□Applicable?Not applicable
There were no connected transactions relating to common external investments during the Reporting
Period.
4. Related creditor's right and debt transactions
□Applicable?Not applicable
There were no related creditor's right and debt transactions during the Reporting Period.
5. Transactions with financial companies with connected relationship
□Applicable?Not applicable
There were no deposits loans credit facilities or other financial operations between DRCO and connected
parties or financial companies with connected relationships.
6. Transactions between financial companies controlled by DRCO and connected parties
□Applicable?Not applicable
There were no deposits loans credit facilities or other financial operations between financial companies
controlled by DRCO and connected parties of DRCO.
7. Other material connected transactions
□Applicable?Not applicable
The Company had no other major related-party transactions during the Reporting Period.XV. Contracts of Significance and Their Execution
1. Trust contracting and leasing matters
(1) Trust
□Applicable?Not applicable
There was no trust during the Reporting Period.
(2) Contracting
□Applicable?Not applicable
There was no contracting during the Reporting Period.
(3) Leasing
?Applicable □Not applicable
Description of leasing matters
DRCO's leased assets are mainly leased for self-operated stores which have been recognized as right-of-
use assets according to the new accounting standards for lease and there are no other significant leased
assets. For details please refer to 14. Right-of-use Assets/VII. Notes to the Consolidated Financial
Statement/Part VIII Financial Reports.Projects whose gains/losses attributable to DRCO account for more than 10% of DRCO's total profit for
the Reporting Period
1022025Annual Report of DR Corporation Limited
□Applicable?Not applicable
There were no projects whose gains/losses attributable to DRCO account for more than 10% of DRCO's
total profit for the Reporting Period.
2. Material guarantees
?Applicable □Not applicable
Unit: RMB0'000
External guarantees provided by DRCO and its subsidiaries (excluding guarantees for subsidiaries)
Date of
disclosure Whether
of Actual it is a
Debtor announce Guarantee
Actual amount Type of Collateral Counter-occurrenc guarantee Guarante Whether guarantee
ment on amount e date of guarantee (if any) (if any) e period fulfilled for a
guarantee guarantee related
amount party
DRCO's guarantee for subsidiaries
Date of
disclosure Whether
of ActualGuarantee Actual amount Type of Collateral Counter-
it is a
Debtor announce occurrenc guarantee Guarante Whether guarantee
ment on amount e date of guarantee (if any) (if any) e period fulfilled for a
guarantee guarantee related
amount party
Zhoukou
DR October January 1
Joint and
50 32.81 several No No 33 Yes No
Jewelry 28 2022 2023 liability Months
Chengdu August 29 Joint andDR 700 45412.351 several No No No No
Jewelry 2022 liability Months
Hangzho
u DR August 29 1000 February
Joint and
119.15 several No No 27Jewelry 2022 1 2023 Yes No
Co. Ltd. liability
Months
Jinan
DR August 29 September
Joint and
2022 500 1 2022 396.49 several No No
31
Jewelry liability Months
Yes No
Kunmin August 29 Joint andg DR 2022 500
February
1 2023 109.75 several No No
46
Jewelry liability Months
No No
Ningbo Joint and
DR August 29 600 October2022 29 2022 173.36 several No No
44
Jewelry liability Months
No No
Ningbo August 29 January 1 Joint andDR 2022 600 2023 95.97 several No No
47
Months No NoJewelry liability
Shangha
i DR August 29 450 October 1
Joint and
237.37 several No No 41 No No
Jewelry 2022 2022 liability Months
Shenzhe August 29 May 1 Joint andn DR 2022 400 2023 242.08 several No No
34 No No
Jewelry liability Months
Suzhou
Zhongzu August 29 Joint and 51
an DR 2022 550 404.87 several No Noliability Months
No No
Jewelry
Xi'an
Zhongzu August 29 October 1 Joint and 35
an DR 2022 450 2022 161.14 several No No Months Yes No
Jewelry liability
Changsh August 29 September Joint anda DR 2022 900 1 2022 894.06 several No No
45 No No
Jewelry liability Months
Changsh
a DR August 29 December
Joint and 31
Jewelry 2022
100 1 2022 85.25 several No No Yes Noliability Months
Zhengzh August 29 January 1
ou DR 2022 350 2023 141.9
Joint and 45
several No No Months No No
1032025Annual Report of DR Corporation Limited
Jewelry liability
Chongqi October Joint andng DR 4028 2022 530 476.66 several No No Months Yes NoJewelry liability
Mianyan October February Joint andg DR 28 2022 140 1 2023 117.83 several No No
32 Yes No
Jewelry liability Months
Jining
DR October April 1
Joint and 31
Jewelry 28 2022
50 2023 43.67 several No Noliability Months
Yes No
Haoduo
Diamon
d April 27 October Joint and 36
(Shenzh 2023 30000 23 2024 10000 several No No Months Yes No
en) Co. liability
Ltd.Haoduo
Diamon
d April 26 Joint and
(Shenzh 2025 30000
July 15
2025 8000 several No No
36
Months No No
en) Co. liability
Ltd.September Joint and 36
3 2025 2000 several No No No Noliability Months
Haoduo
Diamon
d Zhizao April 26
(Shenzh 2025 30000
en) Co.Ltd.Total amount of Actual amount of
approved guarantee for guarantee for
subsidiaries during the 60000 subsidiaries during the 10000
Reporting Period (B1) Reporting Period (B2)
Actual amount of Balance of actual
approved guarantee for guarantee for
subsidiaries as at the 65050 subsidiaries as at the 12666.06
end of the Reporting end of the Reporting
Period (B3) Period (B4)
Subsidiaries' guarantee for subsidiaries
Date of
disclosure Whether
of Actual Actual Counter- it is a
Debtor announce Guarantee occurrenc amount Type of Collateral Guarante Whether guarantee
ment on amount e date of guarantee (if any)
guarantee
guarantee (if any)
e period fulfilled for a
guarantee related
amount party
Total amount of guarantee of DRCO (i.e. the sum of the first three items)
Total amount of Total amount of
approved guarantee
during the Reporting 60000
guarantee actually
incurred during the 10000
Period (A1+B1+C1) Reporting Period
Total amount of Total balance of
approved guarantee as guarantee actually
at the end of the 65050 incurred as at the end 12666.06
Reporting Period of the Reporting
(A3+B3+C3) Period (A4+B4+C4)
Total amount of guarantee (i.e. A4 + B4 + C4) as a
percentage of DRCO's net assets 2.02%
Including:
Balance of guarantee provided for shareholders
actual controller and its related party 0
Balance of debt guarantees provided directly or
indirectly to those with a gearing ratio of more 894.06
than 70% (E)
Difference between total guarantee amount and
50% of net assets (F) 0
Total (D+E+F) 894.06
1042025Annual Report of DR Corporation Limited
Note: 1 As of the end of the Reporting Period RMB 456500 of the actual guarantee amount provided to
Chengdu DR Jewelry Co. Ltd. had been fully discharged.Description of the use of composite guarantee
3. Entrusted cash and assets under management
(1) Entrusted wealth management
?Applicable □Not applicable
Overview of entrusted wealth management during the Reporting Period
Unit: RMB0'000
Balance of entrusted wealth
Product category Risk profile management during the Reporting Amount overdue and not
Period recovered
Wealth management products of R1 Low Risk R2 Medium-Low
securities brokers Risk R3 Medium Risk R4 288174.42 0.00Medium-High Risk
Wealth management products of R1 Low Risk R2 Medium-Low
banks Risk R3 Medium Risk 123012.26 0.00
Wealth management products of R2 Medium-Low Risk R3
trusts Medium Risk R4 Medium-High 82700 0.00Risk
R2 Medium-Low Risk R3
Products of private equity funds Medium Risk R4 Medium-High 40996.13 0.00
Risk
Others R1 Low Risk R2 Medium-LowRisk R3 Medium Risk 9200 0.00
Details of high-risk entrusted wealth management where the Company acts as a single principal entrusting
financial institutions for asset management or investments with lower security and poorer liquidity
□Applicable?Not applicable
Unit: RMB0'000
Actual
profit Actual Summary
Name of Type of or loss recovery of of matters
entrusted entrusted Risk and
institution (or institution profile Product type Amount
Start End Date Allocation during profit or lossDate of funds the during the relevant
trustee) (or trustee) Reporti Reporting search
ng Period index (if
Period any)
Shunlong
Asset Private Outstanding
Management equity fund R2 Fixed 100 July 15 Debt assets 2.39 and not yet
(Beijing) Co. manager income 2022 matured
Ltd.Shunlong
Asset Private Outstanding
Management equity fund R2 Fixed Augustincome 20000 10 2022 Debt assets 500.56 and not yet(Beijing) Co. manager matured
Ltd.China Full
Minsheng Septembe
Banking Bank R1
Certificates 1000 r 20 July 01of deposit 2025 Debt Assets 15.99
recovery of
2022 principal andCorp. Ltd. interest
Bank of
Dongguan Bank R1
Certificates
of deposit 10000
Novembe Novembe
r 08 r 08 Debt assets 285.36
Full
recovery of
1052025Annual Report of DR Corporation Limited
Co. Ltd. 2022 2025 principal and
interest
HSBC Bank Decembe Decembe Full(China) Certificates recovery of
Company Bank R1 of deposit 3000 r 07 r 07 Debt assets 89.9
Limited 2022 2025
principal and
interest
Commodity
Bank of Full
China Bank R2 Structured
Decembe and
Deposits 5000 r 13
April 07
2025 financial 41.27
recovery of
Limited 2022 derivative principal and
assets interest
China Full
Minsheng
Banking Bank R1
Certificates February February
of deposit 5000 06 2023 10 2025 Debt assets 17.09
recovery of
principal and
Corp. Ltd. interest
China Full
Minsheng
Banking Bank R1
Certificates 5000 February February recovery ofof deposit 06 2023 11 2025 Debt assets 17.51 principal and
Corp. Ltd. interest
China CITIC
Bank Certificates March March Outstanding
Corporation Bank R1 of deposit 20000 01 2023 01 2026 Debt assets 622.64 and not yet
Limited matured
China
Minsheng Bank R1 Certificates 5000 March March
Outstanding
Banking of deposit 09 2023 09 2026 Debt assets 155.66 and not yet
Corp. Ltd. matured
China
Everbright Outstanding
Bank Bank R1 Time March Marchdeposits 15000 14 2023 14 2026 Debt assets 459.91 and not yetCompany matured
Limited
China
Construction Certificates March March Outstanding
Bank Bank R1 of deposit 2000 27 2023 27 2026 Debt assets 58.49 and not yet
Corporation matured
CITIC Outstanding
Securities Securities R2 Fixed 5000 April 20 Debt assets 172.2 and not yet
AM Co. Ltd. income 2023 matured
CITIC Full
Securities Securities R2 Fixed 10000 April 20 May 28income 2023 2025 Debt assets 574.05
recovery of
AM Co. Ltd. principal andinterest
CITIC Full
Securities Securities R2 Fixed April 20 June 19income 5000 2023 2025 Debt assets 140.95
recovery of
AM Co. Ltd. principal andinterest
CITIC
Securities Securities R2 Fixed August
Outstanding
income 10000 24 2023 Debt assets 27.9 and not yetAM Co. Ltd. matured
Shunlong
Asset Private Outstanding
Management equity fund R2 Fixed August
(Beijing) Co. manager income
9896.13 25 2023 Debt assets 227.31 and not yetmatured
Ltd.Shunlong
Asset Private Full
Management equity fund R2 Fixed 103.87 August Decembe Debt assets 0.58 recovery of
(Beijing) Co. manager income 25 2023 r 8 2025 principal and
Ltd. interest
UBS Principal- Full
Securities Co. Securities R1 guaranteed Septembe Septembebeneficiary 15000 r 7 2023 r 5 2025 Debt assets 351.69
recovery of
Ltd. principal andcertificates interest
UBS Principal-
Securities Co. Securities R1 guaranteed
Septembe Septembe Outstanding
beneficiary 5000 r 23 r 21 Debt assets 163.07 and not yetLtd. certificates 2023 2026 matured
UBS Asset Full
Management Privateequity fund R2 Fixed 1000 January May 20 recovery of(Shanghai) manager income 9 2024 2025
Debt assets 7.5 principal and
Limited interest
China Principal-
Securities Securities R2 guaranteed 3000 January January
Commodity Full
and 6.54 recovery of
Co. Ltd. beneficiary 18 2024 24 2025 financial principal and
1062025Annual Report of DR Corporation Limited
certificates derivative interest
assets
Shunlong
Asset Private Full
Management equity fund R2 Fixed 6000 January Decembe Debt assets 128.36 recovery of
(Beijing) Co. manager income 25 2024 r 8 2025 principal and
Ltd. interest
Shunlong
Asset Private Full
Management equity fund R2 Fixed 3000 January May 26 recovery of
(Beijing) Co. manager income 25 2024 2025
Debt assets 30.18 principal and
Ltd. interest
Shunlong
Asset Private Full
Management equity fund R2 Fixedincome 2000
January June 18 recovery of
(Beijing) Co. manager 25 2024 2025
Debt assets 23.36 principal and
Ltd. interest
DBS Bank Full
(China) Bank R2 Fixed 9942.22 February August 5 recovery of
Limited income 5 2024 2025
Debt assets 32.41 principal and
interest
CITIC Outstanding
Securities Securities R2 Fixed February
AM Co. Ltd. income
10000 20 2024 Debt assets 308.9 and not yetmatured
UBS Asset
Management Private
Full
(Shanghai) equity fund R2
Fixed February October recovery of
income 784.53 28 2024 14 2025 Debt assets 7.3 principal and
Limited manager interest
UBS Asset Full
Management Private Septembe
(Shanghai) equity fund R2
Fixed February
income 4905.39 28 2024 r 16 Debt assets 3.44
recovery of
manager 2025 principal andLimited interest
UBS Asset Private Septembe FullManagement
(Shanghai) equity fund R2
Fixed 7808.58 February r 23 Debt assets -12.46 recovery of
Limited manager
income 28 2024 2025 principal andinterest
UBS Asset Full
Management Privateequity fund R2 Fixed 2000.2 February June 10 recovery of(Shanghai) manager income 28 2024 2025
Debt assets 15.79 principal and
Limited interest
UBS Asset Full
Management Privateequity fund R2 Fixed 2001.3 February May 20 Debt assets 14.06 recovery of(Shanghai)
Limited manager
income 28 2024 2025 principal and
interest
UBS Asset Full
Management Private
(Shanghai) equity fund R2
Fixed
income 1368.18
March October
27 2024 14 2025 Debt assets 11.39
recovery of
manager principal andLimited interest
UBS Asset Full
Management Private
(Shanghai) equity fund R2
Fixed March October recovery of
manager income
131.82 27 2024 29 2025 Debt assets 1.45 principal and
Limited interest
China
Securities Full
Fund Fund R2 Fixed 8000 April 2 April 9 Debt assets -7.81 recovery of
Management income 2024 2025 principal and
Co. Ltd. interest
China Principal-
Commodity Full
Securities Securities R1 guaranteed April 15 April 18
and
beneficiary 5000 2024 2025 financial 16.16
recovery of
Co. Ltd. derivative principal andcertificates assets interest
Principal-
GF Global guaranteed Full
Capital Securities R2 fixed- 14213.2 April 29 April 28 recovery of
Limited income 2024 2025
Debt assets 291.59 principal and
notes interest
Guotai Principal- Commodityand FullHaitong Securities R1 guaranteed 2000 May 13 May 12Securities beneficiary 2024 2025 financial 32.89
recovery of
Co. Ltd. certificates derivative
principal and
assets interest
GF Securities Principal-Securities R2 guaranteed 8000 May 13 February
Commodity Full
Co. Ltd. 2024 13 2025 and 37.86 recovery ofbeneficiary financial principal and
1072025Annual Report of DR Corporation Limited
certificates derivative interest
assets
Principal- CommodityChina and Full
Securities Securities R2 guaranteed 10000 May 14 May 13 recovery of
Co. Ltd. beneficiary 2024 2025
financial 86.49 principal and
certificates derivativeassets interest
Bank of
Ningbo Co. Bank R1 Certificates 2000 May 21 May 21
Outstanding
of deposit 2024 2027 Debt assets 54.52 and not yetLtd. matured
Guotai Principal- Commodity Full
Haitong Securities R1 guaranteed June 19 June 18
and recovery of
Securities beneficiary 3000 2024 2025 financial 66.74 principal and
Co. Ltd. certificates derivativeassets interest
Guotai Principal- Commodityand FullHaitong Securities R1 guaranteed June 25 June 24 recovery ofSecurities beneficiary 3000 2024 2025 financial 58.21 principal and
Co. Ltd. certificates derivativeassets interest
China Principal-
Commodity Full
Securities Securities R2 guaranteed July 3 July 2
and
beneficiary 10000 2024 2025 financial 90.79
recovery of
Co. Ltd. certificates derivative
principal and
assets interest
Principal- Commodity Full
GF Securities Securities R2 guaranteed 13000 July 3 April 9
and recovery of
Co. Ltd. beneficiary 2024 2025 financial 0
certificates derivative
principal and
assets interest
Principal- CommodityCITIC Full
Securities Securities R2 guaranteed
and
beneficiary 6000
July 3 July 2 financial -16.61 recovery of
Co. Ltd. 2024 2025 derivative principal andcertificates assets interest
Commodity
Huatai Principal- and Full
Securities Securities R1 guaranteed July 3 June 27 recovery of
Co. Ltd. beneficiary
6000 2024 2025 financial -21.62 principal and
certificates derivativeassets interest
China
Securities Principal-
(International guaranteed Full
) Corporate Securities R2 fixed- 8913.75 July 9 July 9 Debt assets 247.47 recovery of
Finance income 2024 2025 principal and
Company notes interest
Limited
Principal- Commodity Full
GF Securities guaranteed July 22 April 23 and
Co. Ltd. Securities R2 beneficiary 7000 2024 2025 financial -3.73
recovery of
derivative principal andcertificates assets interest
Commodity
China Principal- and Full
Securities Securities R2 guaranteed 10000 July 30 July 29 recovery of
Co. Ltd. beneficiary 2024 2025
financial 57.17
derivative principal andcertificates assets interest
Principal- CommodityHuatai and Full
Securities Securities R1 guaranteed July 30 July 25 recovery of
Co. Ltd. beneficiary
11000 2024 2025 financial 0derivative principal andcertificates assets interest
Guotai Principal- Commodity Full
Haitong and
Securities Securities R1
guaranteed 6000 July 30 July 29 recovery ofbeneficiary 2024 2025 financial 119.25 principal and
Co. Ltd. certificates derivativeassets interest
Guotai Principal- Commodity Full
Haitong and
Securities Securities R1
guaranteed 5000 July 31 July 30 recovery ofbeneficiary 2024 2025 financial 102.69 principal and
Co. Ltd. certificates derivativeassets interest
GF Securities Principal-Securities R2 guaranteed 5000 July 31 April 29
Commodity Full
Co. Ltd. 2024 2025 and -7.51 recovery ofbeneficiary financial principal and
1082025Annual Report of DR Corporation Limited
certificates derivative interest
assets
GF Securities
Asset Full
Management Securities R3 Fixed 1000 August
Decembe recovery of
(Guangdong) income 02 2024
r 11 Debt assets 20.18
2025 principal and
Co. Ltd. interest
J.P. Morgan Full
Financial Bank R2 Structured August August 5Notes 4994.15 05 2024 2025 Debt assets 130.15
recovery of
LLC principal andinterest
GF Global
Capital Securities R3 Structured
Outstanding
Notes 2859.16
August August
13 2024 13 2027 Debt assets 237.71 and not yetLimited matured
GF Securities
Asset Decembe Full
Management Securities R3 Fixed August recovery of
(Guangdong) income
3900 23 2024 r 11 Debt assets 81.352025 principal and
Co. Ltd. interest
GF Securities
Asset Decembe Full
Management Securities R3 Fixed August recovery of
(Guangdong) income
100 23 2024 r 23 Debt assets 2.062025 principal and
Co. Ltd. interest
GF Global Outstanding
Capital Securities R3 Structurednotes 4302.23
August August
26 2024 13 2027 Debt assets 382.6 and not yetLimited matured
J.P. Morgan Full
Financial Bank R2 Structurednotes 4987.43
August August recovery of
LLC 27 2024 26 2025
Debt assets 109.39 principal and
interest
Huatai
International Full
Financial Securities R3 Structured 14962.2 August July 28notes 9 27 2024 2025 Debt assets
3825.0 recovery of
Products 7 principal and
Limited interest
J.P. Morgan Full
Financial Bank R2 Structured 7098.9 2024-09- 2025-09-notes 09 09 Debt assets 312.16
recovery of
LLC principal andinterest
GF Global
Capital Securities R3 Structured 9965.48 2024-09- August
Outstanding
Limited notes 11 13 2027
Debt assets 819.32 and not yet
matured
Huatai
International Full
Financial Securities R3 Structured 9965.48 2024-09- July 28notes 11 2025 Debt assets 91.77
recovery of
Products principal and
Limited interest
Huatai Commodity
International Principal- Full
Financial Securities R3 guaranteed 2024-09- 2025-08-
and
4984.98 financial 117.51 recovery of
Products structured 12 18 principal and
Limited notes
derivative
assets interest
J.P. Morgan Full
Financial Bank R2 Structurednotes 9969.96
2024-09-2025-09-
12 12 Debt assets 371.75
recovery of
LLC principal andinterest
China Full
Minsheng Bank R1 Certificates 2024-09- 2025-02- recovery ofBanking of deposit 5000 25 09 Debt assets 20.13 principal and
Corp. Ltd. interest
China Full
Minsheng Bank R1 Certificates 5000 2024-09- 2025-02- Debt assets 20.13 recovery ofBanking of deposit 25 09 principal and
Corp. Ltd. interest
CITIC Outstanding
Securities Securities R2 Fixed 2024-09-income 5000 26 Debt assets 149.98 and not yetAM Co. Ltd. matured
China Principal-
Commodity
and Full
Securities Securities R2 guaranteed 7000 2024-09- 2025-09-beneficiary 26 25 financial 103.65
recovery of
Co. Ltd. derivative principal andcertificates assets interest
China Certificates 2024-09- July 01 Full
Minsheng Bank R1 of deposit 1000 26 2025 Debt assets 16.28 recovery of
1092025Annual Report of DR Corporation Limited
Banking principal and
Corp. Ltd. interest
China Full
Minsheng Certificates
Banking Bank R1 of deposit 1000
2024-09- July 01
26 2025 Debt assets 16.28
recovery of
principal and
Corp. Ltd. interest
China Full
Minsheng Bank R1 Certificates 1000 2024-09- July 01 Debt assets 16.28 recovery ofBanking of deposit 26 2025 principal and
Corp. Ltd. interest
China Full
Minsheng Certificates 2024-09- July 01 recovery of
Banking Bank R1 of deposit 1000 26 2025 Debt assets 16.28 principal and
Corp. Ltd. interest
China Full
Minsheng
Banking Bank R1
Certificates
of deposit 1000
2024-09- July 01 Debt assets 16.28 recovery of26 2025 principal and
Corp. Ltd. interest
Principal- Commodity Full
GF Securities Septembe and
Co. Ltd. Securities R2
guaranteed 5000 2024-09-beneficiary 26 r 23 financial 73.39
recovery of
principal and
certificates 2025 derivativeassets interest
Commodity
Huatai Principal- Full
Securities Securities R1 guaranteed 4800 2024-11- 2025-02-
and
beneficiary 08 14 financial 17.85
recovery of
Co. Ltd. certificates derivative
principal and
assets interest
Principal- CommodityEastmoney Full
Securities Securities R1 guaranteed
21 19 and
beneficiary 5000 Novembe Novembe financial 153.2
recovery of
Co. Ltd. r 2024 r 2025 derivative principal andcertificates assets interest
Eastmoney Principal-
Commodity Full
Securities Securities R1 guaranteed
22 19 and
beneficiary 5000 Novembe Novembe financial 157.94
recovery of
Co. Ltd. r 2024 r 2025 derivative principal andcertificates assets interest
China
Foreign 27 Outstanding
Economy and Trust R4 Hybrid 6000 Novembe Others 220.2 and not yet
Trade Trust r 2024 matured
Co. Ltd.Commodity
Bank of Structured 18
Full
China Bank R1 1400 Decembe 09 June
and
financial 4.47 recovery of
Limited Deposits r 2024 2025 derivative principal and
assets interest
Commodity
Bank of 18 and Full
China Bank R1 StructuredDeposits 1600 Decembe
11 June financial 16.03 recovery of
Limited r 2024 2025 derivative principal and
assets interest
Commodity
Bank of Full
China Bank R1 Structured
18 and
Deposits 1040 Decembe
11 June recovery of
Limited r 2024 2025
financial 10.42
derivative principal and
assets interest
Commodity
Bank of 18 and Full
China Bank R1 Structured 09 June recovery of
Limited Deposits
960 Decembe 2025 financial 3.06r 2024 derivative principal and
assets interest
Commodity
Bank of 18 and Full
China Bank R1 StructuredDeposits 1400 Decembe
09 June financial 4.47 recovery of
Limited r 2024 2025 derivative principal and
assets interest
Commodity
Bank of Full
China Bank R1 Structured
18 11 June and recovery of
Limited Deposits
1600 Decembe 2025 financial 16.03r 2024 derivative principal and
assets interest
Bank of Structured 30 16 Commodity Full
Dongguan Bank R1 Deposits 2800 Decembe Decembe and 50.33 recovery of
1102025Annual Report of DR Corporation Limited
Co. Ltd. r 2024 r 2025 financial principal and
derivative interest
assets
J.P. Morgan
Financial Bank R2 Structured 7400 2025-01- 2028-01-
Outstanding
notes 03 03 Debt assets 231.19 and not yetLLC matured
GF Securities
Asset Full
Management Securities R2 Fixed 1000 2025-01- 2025-05- Debt assets 12.69 recovery of
(Guangdong) income 09 16 principal and
Co. Ltd. interest
Commodity
Eastmoney Principal- and Full
Securities Securities R1 guaranteed 5000 2025-01- 2025-05- financial 53.21 recovery of
Co. Ltd. beneficiary 09 06 principal andcertificates derivativeassets interest
Commodity Full
Ping An Bank Structured and
Co. Ltd. Bank R2 Deposits 1800
2025-01-2025-04-
10 10 financial 8.37
recovery of
derivative principal and
assets interest
China Commodityand FullMinsheng Bank R1 StructuredBanking Deposits 2200
2025-01- 2025-04- financial 8.15 recovery of17 17 principal and
Corp. Ltd. derivativeassets interest
Commodity
Bank of Full
China Bank R1 Structured 2080 2025-01- 2025-08-
and
financial 31.98 recovery of
Limited Deposits 17 13 derivative principal and
assets interest
Commodity
Bank of Full
China Bank R1 Structured 1920 2025-01- 2025-08-
and
financial 8.59 recovery of
Limited Deposits 17 11 derivative principal and
assets interest
China Full
Minsheng Certificates
Banking Bank R1 of deposit 5000
February February Debt assets 0.46 recovery of10 2025 11 2025 principal and
Corp. Ltd. interest
China
Minsheng Bank R1 Certificates 5000 February 2026-02-
Outstanding
Banking of deposit 11 2025 06 Debt assets 127.37 and not yet
Corp. Ltd. matured
China Full
Minsheng Bank R1 Certificates February 2025-02-Banking of deposit 5000 11 2025 12 Debt assets 0.46
recovery of
principal and
Corp. Ltd. interest
China
Minsheng Certificates 2025-02- 2026-02- Outstanding
Banking Bank R1 of deposit 5000 12 06 Debt assets 126.96 and not yet
Corp. Ltd. matured
Bank of Full
Ningbo Co. Bank R1 Time 500 2025-02- 2025-08- recovery of
Ltd. deposits 18 18
Debt assets 3.77 principal and
interest
Commodity
China Principal- and Outstanding
Securities Securities R1 guaranteed 8000 2025-02- 2026-02- financial 235.89 and not yet
Co. Ltd. beneficiary 20 12certificates derivative maturedassets
Principal- Commodity
GF Securities guaranteed 2025-02- 2026-02- and Outstanding
Co. Ltd. Securities R2 beneficiary 5300 20 12 financial 173.66 and not yet
certificates derivative maturedassets
Commodity
Ping An Bank Structured 2025-03- 2025-04- and
Full
Co. Ltd. Bank R2 Deposits 100 25 08 financial 0.06
recovery of
derivative principal and
assets interest
China
Merchants Bank R1 Certificates 1800 2025-04- 2026-08-
Outstanding
Bank Co. of deposit 02 11 Debt assets 37.47 and not yet
Ltd. matured
1112025Annual Report of DR Corporation Limited
Commodity Full
Ping An Bank Bank R2 Structured 1500 2025-04- 2025-07-
and
Co. Ltd. Deposits 15 15 financial 6.67
recovery of
derivative principal and
assets interest
Guotai Principal- Commodity
Haitong guaranteed 2025-04- 2026-04- and Outstanding
Securities Securities R1 beneficiary 5000 16 14 financial 44.46 and not yet
Co. Ltd. certificates derivative maturedassets
Guotai Principal- Commodity
Haitong and
Full
Securities Securities R1
guaranteed 5000 2025-04- 2025-07- recovery ofbeneficiary 16 15 financial 45.18
Co. Ltd. certificates derivative
principal and
assets interest
Commodity
Huatai Principal-guaranteed 2025-04- Septembe and
Full
Securities Securities R1 recovery of
Co. Ltd. beneficiary
3000 22 r 23 financial 42.99
certificates 2025 derivative
principal and
assets interest
China Commodity Full
Minsheng and
Banking Bank R1
Structured 1700 2025-04- 2025-07- financial 8.62 recovery ofDeposits 22 21 derivative principal andCorp. Ltd. assets interest
Founder
CIFCO Fixed Outstanding
Futures Co. Securities R3 income 5000
April 24
2025 Debt assets -14.5 and not yet
Ltd. matured
Principal- Commodity Full
GF Securities and
Co. Ltd. Securities R2
guaranteed 7000 April 25 July 22beneficiary 2025 2025 financial 73.27
recovery of
derivative principal andcertificates assets interest
Commodity
China Principal- and Outstanding
Securities Securities R1 guaranteedbeneficiary 5000
May 07 April 28
2025 2026 financial 133.13 and not yetCo. Ltd. certificates derivative maturedassets
Principal- Commodity
Barclays and Outstanding
Bank PLC Bank R3
guaranteed May 13 May 17
structured 5000 2025 2028 financial 96.33 and not yet
notes derivative maturedassets
Principal- CommodityChina guaranteed May 23 May 22 and OutstandingSecurities Securities R1 beneficiary 7000 2025 2026 financial 163.92 and not yetCo. Ltd. certificates derivative maturedassets
Guotai Principal- Commodity
Haitong Securities R1 guaranteed 5500 May 23 May 21
and Outstanding
Securities beneficiary 2025 2026 financial 128.13 and not yet
Co. Ltd. certificates derivative maturedassets
Principal- CommodityEastmoney Septembe and Full
Securities Securities R1 guaranteedbeneficiary 5000
May 23
2025 r 22 financial 51.76
recovery of
Co. Ltd. certificates 2025 derivative
principal and
assets interest
Ping An Bank Time June 17 June 17 Outstanding
Co. Ltd. Bank R1 deposits 3730.79 2025 2026 Debt assets 72.74 and not yetmatured
Huatai Principal-
Commodity
and Outstanding
Securities Securities R1 guaranteed 3000 June 23 June 17beneficiary 2025 2026 financial 37.03 and not yetCo. Ltd. certificates derivative maturedassets
Principal- Commodity
GF Securities guaranteed June 27 June 23 and Outstanding
Co. Ltd. Securities R2 beneficiary 3300 2025 2026 financial 0 and not yet
certificates derivative maturedassets
Huatai Principal- Commodity Outstanding
Securities Securities R1 guaranteed 6000 July 2 June 25 and 14.85 and not yet
Co. Ltd. beneficiary 2025 2026 financial matured
1122025Annual Report of DR Corporation Limited
certificates derivative
assets
Eastmoney Principal-
Commodity
Securities Securities R1 guaranteed 5000 July 3 January
and Outstanding
beneficiary 2025 7 2026 financial 0 and not yetCo. Ltd. certificates derivative maturedassets
Commodity
China Principal-
Securities Securities R1 guaranteed 10000 July 7 July 6
and Outstanding
financial 163.87 and not yet
Co. Ltd. beneficiary 2025 2026certificates derivative maturedassets
Commodity
Eastmoney Principal-guaranteed July 7 January and OutstandingSecurities Securities R1 6000 financial 94.42 and not yet
Co. Ltd. beneficiary 2025 7 2026certificates derivative maturedassets
Commodity Full
Ping An Bank Bank R2 Structured 1200 July 18 October
and recovery of
Co. Ltd. Deposits 2025 16 2025 financial 5.72derivative principal and
assets interest
Guotai Principal- Commodity
Haitong Securities R1 guaranteed 5000 July 23 July 22
and Outstanding
Securities beneficiary 2025 2026 financial 78.65 and not yet
Co. Ltd. certificates derivative maturedassets
China Commodity Full
Minsheng Structured July 25 October and recovery of
Banking Bank R1 Deposits 1500 2025 24 2025 financial 7.27 principal and
Corp. Ltd. derivativeassets interest
Principal- Commodity Full
GF Securities Securities R2 guaranteed
and
Co. Ltd. beneficiary 6000
July 25 October recovery of
2025 27 2025 financial 45.41
certificates derivative
principal and
assets interest
Principal- Commodity
Barclays Bank R3 guaranteed 5717.36 July 28 July 30
and Outstanding
Bank PLC structured 2025 2026 financial 46.13 and not yet
notes derivative maturedassets
Commodity
Huatai Principal-
Securities Securities R1 guaranteed 5000 July 29 July 23
and Outstanding
beneficiary 2025 2026 financial 50.08 and not yetCo. Ltd. certificates derivative maturedassets
Principal- CommodityEastmoney
Securities Securities R1 guaranteed July 29 July 29
and Outstanding
3000 financial 0 and not yet
Co. Ltd. beneficiary 2025 2026certificates derivative maturedassets
GF Securities
Asset 19 Full
Management Securities R2 Fixed 1000 July 29income 2025 Novembe Debt assets 8.83
recovery of
(Guangdong) r 2025 principal and
Co. Ltd. interest
Eastmoney Principal-
Commodity Full
Securities Securities R1 guaranteed 4000 July 29 October
and
financial 32.1 recovery of
Co. Ltd. beneficiary 2025 27 2025 derivative principal andcertificates assets interest
Principal- CommodityChina guaranteed July 31 July 27 and OutstandingSecurities Securities R1 beneficiary 5000 2025 2026 financial 78.06 and not yetCo. Ltd. certificates derivative maturedassets
Eastmoney Principal-
Commodity
and Full
Securities Securities R1 guaranteed July 31 October recovery of
Co. Ltd. beneficiary
6000 2025 27 2025 financial 47.11
certificates derivative
principal and
assets interest
Guotai Principal- Commodity Outstanding
Haitong Securities R1 guaranteed 5000 August 1 July 302025 2026 and 83.29 and not yetSecurities beneficiary financial matured
1132025Annual Report of DR Corporation Limited
Co. Ltd. certificates derivative
assets
Principal- CommodityEastmoney and Outstanding
Securities Securities R1 guaranteed 3000 August 7 August 5
Co. Ltd. beneficiary 2025 2026
financial 36.79 and not yet
certificates derivative maturedassets
Commodity
Huatai Principal- Septembe and Full
Securities Securities R1 guaranteed 3600 August 7 r 11 financial 11.07 recovery of
Co. Ltd. beneficiary 2025 principal andcertificates 2025 derivativeassets interest
GF Securities
Asset Outstanding
Management Securities R3 Hybrid 3000 August 82025 Debt assets 20.7 and not yet(Guangdong) matured
Co. Ltd.Principal-
GF Global guaranteed
Capital Securities R2 fixed- 3567.5 August 8 August 7
Outstanding
2025 2026 Debt assets 58.14 and not yetLimited income matured
notes
GF Global Principal-
Commodity
guaranteed 2025-08- August and OutstandingCapital Securities R3 structured 7135 13 17 2026 financial 0 and not yetLimited notes derivative maturedassets
GF Global Principal-
Commodity
and Outstanding
Capital Securities R3 guaranteed 3567.5 2025-08- August
Limited structured 13 16 2028
financial 63.66 and not yet
notes derivative maturedassets
Founder
CIFCO Outstanding
Futures Co. Securities R3 Hybrid 6000
2025-08-
13 Debt assets 71.54 and not yet
Ltd. matured
China Outstanding
Securities Securities R3 Hybrid 3000 August Debt assets 9.9 and not yet
Co. Ltd. 15 2025 matured
China Outstanding
Securities Securities R2 Fixedincome 1000
August Debt assets 3.5 and not yet
Co. Ltd. 15 2025 matured
Huatai
Securities
(Shanghai) Securities R3 Hybrid 5000 August
Outstanding
Asset 15 2025 Debt assets 106.13 and not yet
Management matured
Co. Ltd.Citigroup
Global Principal- Commodity
Markets Bank R3 guaranteed 5000 Septembe Septembe
and Outstanding
Funding structured r 5 2025 r 7 2026 financial 78.31 and not yet
Luxembourg notes derivative matured
S.C.A. assets
Huatai
International Septembe Novembe Outstanding
Financial Securities R3 Structurednotes 5000 r 19 r 17 Debt assets 72.18 and not yetProducts 2025 2027 matured
Limited
Principal- Commodity
Société Bank R3 guaranteed
Septembe 19 and Outstanding
Générale structured 4000 r 19 Septembe financial 34.94 and not yet
notes 2025 r 2028 derivative maturedassets
Principal- Commodity
Société guaranteed Septembe 19 and Outstanding
Générale Bank R3 structured 4000 r 19 Septembe financial 48.33 and not yet
notes 2025 r 2029 derivative maturedassets
Principal- CommodityHuatai 24 17 and Full
Securities Securities R1 guaranteed 3600 Septembe Decembe financial 26.57 recovery of
Co. Ltd. beneficiary principal andcertificates r 2025 r 2025 derivativeassets interest
1142025Annual Report of DR Corporation Limited
Guotai Principal- Commodity
Haitong guaranteed 26 22 and Outstanding
Securities Securities R1 beneficiary 3000 Septembe Septembe financial 29.78 and not yet
Co. Ltd. certificates r 2025 r 2026 derivative maturedassets
Commodity
Eastmoney Principal- 26 23 and Outstanding
Securities Securities R1 guaranteed
Co. Ltd. beneficiary
5000 Septembe Septembe financial 40.32 and not yet
certificates r 2025 r 2026 derivative maturedassets
Principal- CommodityHuatai Full
Securities Securities R1 guaranteed
26 Decembe and
beneficiary 2000 Septembe r 23 financial 15.47
recovery of
Co. Ltd. certificates r 2025 2025 derivative
principal and
assets interest
CITIC Principal-
Commodity
guaranteed 29 Septembe and OutstandingSecurities Securities R1 beneficiary 7000 Septembe r 21 financial 11.98 and not yetCo. Ltd. certificates r 2025 2026 derivative maturedassets
Principal- CommodityHuatai Full
Securities Securities R1 guaranteed
29 22 and
beneficiary 3300 Septembe Decembe financial 24.72
recovery of
Co. Ltd. r 2025 r 2025 derivative principal andcertificates assets interest
Guotai Junan
Financial 06 28 Outstanding
Products Co. Securities R3
Structured
notes 1777.55 October October Debt assets 20.65 and not yet
Ltd. 2025 2026 matured
Principal- Commodity
Société 06 08 and Outstanding
Générale Bank R3
guaranteed
structured 1777.55 October October financial 53.09 and not yet
notes 2025 2026 derivative maturedassets
J.P. Morgan
Structured Bank R3 Structured October 20 June
Outstanding
Products Co. notes 1775.53 14 2025 2027 Debt assets 19.65 and not yet
Ltd. matured
Commodity
Ping An Bank Bank R2 Structured October
23 and Outstanding
Co. Ltd deposit 1000 24 2025 January financial 3.08 and not yet2026 derivative matured
assets
GF Securities
Asset Outstanding
Management Securities R4 Hybrid 5000 October31 2025 Others -65.5 and not yet(Guangdong) matured
Co. Ltd.Principal- Commodity
GF Securities 28 and Outstanding
Co. Ltd. Securities R2
guaranteed 6000 Octoberbeneficiary 31 2025 October financial 0 and not yet
certificates 2026 derivative maturedassets
Commodity
China Minshe Structured Novembe 3 and Outstandingng Banking C Bank R1 deposit 1000 r 3 2025 February financial 2.49 and not yetorp. Ltd. 2026 derivative matured
assets
CITIC Principal-
Commodity
guaranteed Novembe Novembe and OutstandingSecurities Securities R1 beneficiary 4000 r 20 r 19 financial 0 and not yetCo. Ltd. certificates 2025 2026 derivative maturedassets
Principal- CommodityHuatai guaranteed Novembe Novembe and OutstandingSecurities Securities R1 beneficiary 6000 r 20 r 18 financial 22 and not yetCo. Ltd. certificates 2025 2026 derivative maturedassets
Principal- CommodityCITIC Novembe Novembe and Outstanding
Securities Securities R1 guaranteedbeneficiary 2000 r 24 r 23 financial 2.42 and not yetCo. Ltd. certificates 2025 2026 derivative maturedassets
China
Securities Securities R1
Principal-
guaranteed 3000
Novembe Novembe Commodity Outstanding
r 25 r 24 and 18.71 and not yet
1152025Annual Report of DR Corporation Limited
Co. Ltd. beneficiary 2025 2026 financial matured
certificates derivative
assets
CITIC Decembe Outstanding
Securities Securities R4 Hybrid 4000 r 24 Others 0.8 and not yet
AM Co. Ltd. 2025 matured
Principal- Commodity
GF Securities guaranteed Decembe Decembe and Outstanding
Co. Ltd. Securities R2 beneficiary 3000 r 25 r 22 financial 0 and not yet
certificates 2025 2026 derivative maturedassets
China Decembe Outstanding
Securities Securities R3 Hybrid 2000 r 29 Debt assets 0 and not yet
Co. Ltd. 2025 matured
Total 812208. 16858.01 21
(2) Entrusted loans
□Applicable?Not applicable
There were no entrusted loans during the Reporting Period.
4. Other contracts of significance
□Applicable?Not applicable
There were no other contracts of significance during the Reporting Period.XVI. Use of Raised Funds
?Applicable □Not applicable
(1) Overall use of proceeds
?Applicable □Not applicable
Unit: RMB0'000
Percen Total Percen
Total Cumul tage of
procee Cumul tage of
ds with ative cumula Use Procee
Year Fundra Listing procee ative proceedates Total Net ds ds intende procee tive Unuse
and ds idle
of ising of procee procee used procee used at d use ds with procee d
destina for
fundrai metho securiti ds ds (1) during ds period change intende ds with procee
tion of over
sing d es the used end (3) d d use intende ds
unused two
period (2) = (2) / during change d use
procee
the d change ds
years
(1) period d
Invest
in
intende
d
Public Decem
2021 offerin ber 15 46763 44438 2680. 31038 69.85 0 0 0.00% 13399
project
6.88 0.28 89 6.94 % 3.34 s and 0g 2021 repleni
sh
workin
g
capital
Total -- -- 46763 44438 2680. 31038 69.85 133996.88 0.28 89 6.94 % 0 0 0.00% 3.34 -- 0
1162025Annual Report of DR Corporation Limited
Explanation of the overall use of the proceeds
1. Actual amount of proceeds and receipt date
In accordance with the CSRC's Approval on Agreeing the Registration of DR Corporation Limited for
Initial Public Offering of Shares (Zheng Jian Xu Ke No. [2021] 3043) and the SZSE's approval DRCO
conducted an initial public offering of 40010000 ordinary shares (A shares) with a nominal value of RMB
1.00 and an issue price of RMB 116.88 per share raising proceeds of RMB 4676.37 million. The
sponsorship and underwriting fees (excluding VAT) for the IPO were RMB 217.34 million. On December
10 2021 the total proceeds of RMB 4460.73 million after deducting the underwriting fees (excluding
VAT) of RMB 215643500 were remitted by the underwriter China Securities to DRCO's special account
for proceeds.The total proceeds raised by DRCO via the IPO were RMB 4676.37 million and the net proceeds were
RMB 4443.80 million after deducting sponsorship and underwriting fees (excluding VAT) of RMB
217.34 million and other issuance fees (excluding VAT) of RMB 15.22 million (including: audit and
capital verification fees of RMB 4.47 million legal counsel fees of RMB 5.42 million information
disclosure fees of RMB 4.02 million issuance fees and other fees of RMB 1.31 million). The additional
registered capital replenished by the IPO has been verified by Ernst & Young Hua Ming LLP (Special
General Partnership) that issued a Capital Verification Report (Ernst & Young Hua Ming (2021) Yan Zi
No. 61403707_H01).
2. Amount used in the current year and year-end balance
As of December 31 2025 the Company had cumulatively used RMB 3103.87 million of the proceeds
including RMB 1236.86 million invested in committed projects and RMB 1840.00 million permanently
used to replenish working capital.As of December 31 2025 the balance of idle proceeds (including surplus proceeds) used for cash
management amounted to RMB 1461.00 million.As of December 31 2024 the balance in the Company's dedicated proceeds account and settlement
account totaled RMB 70.18 million (including interest income and investment gains after deducting
service charges).
2. Committed projects funded by the proceeds
?Applicable □Not applicable
Unit: RMB0'000
Wh
eth
er
Committ Wheth
the
er the Total Cumu Invest Date reed projec comm Amou lative ment when Benefit Cumulati
Whe
List investm Adjust nt invest progre the s ve ther
we
re
ing ent t has itted the
Financin date projects Proj been invest
ed invest ment ss as projec realize benefits
total ed amou of the t d realized expe
sig
ect chang ment nifig project s of and natu ed amou invest during nt as end of reache during as of the
cted can
name secu investm ment the of the the d the the end of bene t
ritie ent areas re (inclu ntding from amou Repor end of period intend Reporti the
fits cha
s of partial procee nt (1) ting the (3) = ed ng Reportin
were nge
surplus chang ds Period period (2)/ usable Period g Period
reali
proceeds (2) (1) state zed
s in
es) project
fea
sibi
lity
Committed investment projects
Channel Dec Channel Ope Dece
network emb network rati No 7392 7392 0 7392 100.0 mber 12129.3construc er construc on 1.4 1.4 1.4 0% 31 555.61 5 No No
tion 15 tion man 2023
1172025Annual Report of DR Corporation Limited
project 202 project age
1 men
t
Informat Dec Informat
ion emb ion R& Dece Not
system er system D No 1104 1104 1585. 9965. 90.21 mber appliconstruc 15 construc proj 7.45 7.45 14 45 % 31 cabl No
tion 202 tion ect 2027 e
project 1 project
Diamon Diamon
d d
jewelry
R&D Dec
jewelry
and emb
R&D
er and
R& Dece Not
creative 15 creative
D No 5389. 5389. 1095. 4452. 82.61 mber appli
design design proj 93 93 75 64 % 31 cabl
No
center 202 center ect 2027 e
construc 1 construc
tion tion
project project
Rep
Supple Dec Supplem leni
mentary emb entary sh Not
working er working wor No 3800 3800 3804 100.1 applicapital 15 capital kin 0 0 7.45 2% cabl No
project 202 project g e
(Note) 1 (Note) capi
tal
Subtotal of committed investment -- 1283 1283 2680. 1263projects 58.78 58.78 89 86.94 -- -- 555.61
12129.3
5----
Investment areas of surplus proceeds
Undeter Dec
mined emb Undeter Not
use of er mined 1320 1320 appli
surplus 15 use of No 21.5 21.5 0 0 cabl No
proceed 202 surplus
s 1 proceeds
e
Replenishment of working capital -- 1840 1840 0 1840 100.0(if any) 00 00 00 0% -- -- -- -- --
Subtotal of investment areas of 3160 3160 1840
surplus proceeds -- 21.5 21.5 0 00 -- -- -- --
Total -- 4443 4443 2680. 3103 -- -- 555.61 12129.380.28 80.28 89 86.94 5 -- --
1. Channel network construction project: As of June 30 2023 the project was 100% completed with cumulative benefits
totaling RMB 280996700 (average annual net profit of RMB 96341700) achieving the expected benefits. As of December
31 2025 the project has achieved a cumulative profit of RMB 121293500 (with an average annual net profit of RMB
22392600) but its cumulative performance has not yet met original expectations mainly due to industry cyclical adjustments
and market demand resulting in project store sales falling short of expectations. However it achieved a profit of RMB
5556100 during this Reporting Period—an increase of RMB 83364800 compared to the same period last year. This growth
Describe the is primarily attributable to the gradual realization of benefits from earlier channel optimization and refined store operations
circumstances resulting in an overall improvement in operational quality.and reasons why
the planned 2. Information system construction project: on April 26 2023 DRCO convened the fifth meeting of the second session of the
progress and Board of Directors and the fifth meeting of the second session of the Board of Supervisors at which the Proposal on
expected Postponing Certain Proceeds-funded Projects was reviewed and DRCO was approved to extend the date when the project
benefits have reached the intended usable state from December 31 2023 to December 31 2024 without changing the implementation entity
not been the implementation method the intended use of proceeds and the investment amount. Factors such as the market environment
realized by business expansion and stricter corporate governance requirements have raised the standards for the information system
project construction. As a result DRCO needs to conduct adequate surveys and discussions before implementing the information
(including the system construction project so as to facilitate improvements in sales performance or operational efficiency. In order to better
reason for "not manage the project progress on April 25 2024 DRCO convened the ninth meeting of the second session of the Board of
applicable Directors and the ninth meeting of the second session of the Board of Supervisors at which the Proposal on Postponing
concerning Certain Proceeds-funded Projects was reviewed and DRCO was approved to extend the completion date of the proceeds-
"whether the funded project from December 31 2024 to December 31 2026 so as to maximize the value and effectiveness of the use of
expected proceeds. At present in light of the current market environment the rapid iteration of information technology and the
benefits were Company's business development needs higher demands have been put forward for the construction of information systems.realized") The company requires that before the implementation of information system construction projects thorough and rigorous
research and discussion should be conducted to ensure that the continuous construction of the project can contribute to the
growth of the Company's sales performance or the improvement of management and operation efficiency. Moreover in order
to reasonably control the advancement pace of the project after careful research and decision by the Company on April 24
2025 the Company held the 13th meeting of the second board of directors and the 13th meeting of the second board of
Supervisors and deliberated and passed the Proposal on the Extension of the Raised Funds Investment Project. It is agreed to
extend the date when the project reaches the predetermined usable state from December 31 2026 to December 31 2027 in
1182025Annual Report of DR Corporation Limited
order to better leverage the role of the raised funds and enhance the effectiveness of their use.
3. R&D Creativity and Design Center for Diamond Jewelries: To better meet market demand and support its strategic
development the Company made further plans for the project construction which resulted in slower- than-expected project
progress. On April 26 2023 DRCO convened the fifth meeting of the second session of the Board of Directors and the fifth
meeting of the second session of the Board of Supervisors at which the Proposal on Postponing Certain Proceeds-funded
Projects was reviewed and DRCO was approved to extend the completion date of the proceeds-funded project from
December 31 2023 to December 31 2025 without changing the implementation entity the implementation method the
intended use of proceeds and the investment amount. Due to the objective factors such as the project itself not having a profit-
making nature and the intensified structural differentiation in the jewelry industry in recent years the Company prudently
carried out the construction of the R&D and creative design center resulting in the project construction progress not meeting
expectations. Based on the actual situation of the fundraising and investment projects after careful study the Company held
the 13th meeting of the second board of directors and the 13th meeting of the second board of Supervisors on April 24 2025
and deliberated and passed the Proposal on the Extension of the Fundraising and Investment Projects. Agree to extend the
date when the project reaches the predetermined usable state from December 31 2025 to December 31 2027.Explanation of
significant
changes in Not applicable
project
feasibility
Applicable
1. On December 30 2021 DRCO held the 14th meeting of the first session of the Board of Directors and the sixth meeting of
the first session of the Board of Supervisors and on January 18 2022 DRCO held the first Extraordinary General Meeting of
2022 reviewing and approving the Proposal on Cash Management for Part of Idle Proceeds and Self- owned Funds. DRCO
was approved to use not more than RMB 3500000000 of idle proceeds (including surplus proceeds) and not more than RMB
4000000000 of its own funds for cash management for a period of 12 months from the date of review and approval. Such
funds can be used on a revolving basis within the aforesaid amount and term.On December 29 2022 DRCO held the fourth meeting of the second session of the Board of Directors and the fourth meeting
of the second session of the Board of Supervisors and on January 17 2023 DRCO held the first Extraordinary General
Meeting of 2023 reviewing and approving the Proposal on Cash Management for Part of Idle Proceeds and Self-owned
Funds. DRCO was approved to use not more than RMB 3000000000 of idle proceeds (including surplus proceeds) and not
more than RMB 6000000000 of its own funds for cash management for a period of 12 months from the date of review and
approval. Such funds can be used on a revolving basis within the aforesaid amount and term.On December 28 2023 the Company held the eighth meeting of the second session of the Board of Directors and the eighth
Meeting of the second Session of the Board of Supervisors and on January 16 2024 the Company held the first Extraordinary
General Meeting of 2024 reviewing and approving the Proposal on Cash Management for Part of Idle Proceeds and Self-
owned Funds. DRCO was approved to use not more than RMB 1800000000 of idle proceeds (including surplus proceeds)
and not more than RMB 6000000000 of its own funds for cash management for a period of 12 months from the date of
review and approval. Such funds can be used on a revolving basis within the aforesaid amount and term.On December 26 2024 the Company held the 12th meeting of the second session of the Board of Directors and the 12th
Amount use Meeting of the second Session of the Board of Supervisors and on January 14 2025 the Company held the first Extraordinary
and progress of General Meeting of 2025 reviewing and approving the Proposal on Cash Management for Part of Idle Proceeds and Self-
use of surplus owned Funds. DRCO was approved to use not more than RMB 1650000000 of idle proceeds (including surplus proceeds)
proceeds and not more than RMB 5500000000 of its own funds for cash management for a period of 12 months from the date ofreview and approval. Such funds can be used on a revolving basis within the aforesaid amount and term.On December 24 2025 the Company held the 17th meeting of the second session of the Board of Directors and the first
Extraordinary General Meeting of 2026 reviewing and approving the Proposal on Cash Management for Part of Idle
Proceeds and Self-owned Funds. DRCO was approved to use not more than RMB 1650000000 of idle proceeds (including
surplus proceeds) and not more than RMB 5500000000 of its own funds for cash management for a period of 12 months
from the date of review and approval. Such funds can be used on a revolving basis within the aforesaid amount and term.Following the above deliberation and approval the Company strictly controls risks in accordance with relevant regulations
and invests in highly safe and liquid financial products issued by commercial banks securities firms or other financial
institutions with a term not exceeding 12 months. As of December 31 2025 the balance of over-raised funds used for cash
management amounted to RMB 1441000000.
2. On April 20 2022 DRCO held the 15th meeting of the first session of the Board of Directors and the seventh meeting of
the first session of the Board of Supervisors which considered and approved the Proposal on Using Part of the Surplus
Proceeds to Permanently Replenish Working Capital and agreed that DRCO may use RMB 940000000 of surplus proceeds
to permanently replenish the working capital representing 29.74% of the total surplus proceeds. This proposal was deliberated
and approved at the general meeting of shareholders on May 20 2022. On April 26 2023 DRCO held the fifth meeting of the
second session of the Board of Directors and the fifth Meeting of the second session of the Board of Supervisors which
considered and approved the Proposal on Using Part of the Surplus Proceeds to Permanently Replenish Working Capital and
agreed that DRCO may use RMB 900000000 of surplus proceeds to permanently replenish the working capital representing
28.48% of the total surplus proceeds. This proposal was deliberated and approved at the general meeting of shareholders on
May 26 2023. As of December 31 2025 DRCO had transferred RMB 1840000000.00 from its dedicated proceeds account
to permanently supplement the working capital.Unauthorized
changes to the
use of proceeds
and non- Not applicable
compliant
misappropriatio
n of proceeds
1192025Annual Report of DR Corporation Limited
Changes in the
implementation
location of Not applicable
proceeds-
funded projects
Adjustment of
the
implementation
method of Not applicable
proceeds-
funded projects
Applicable
On April 20 2022 DRCO held the 15th meeting of the first session of the Board of Directors and the seventh meeting of the
first session of the Board of Supervisors which considered and approved the Proposal on the Replacement of Self-raised
Funds Invested in Advance and Paid for Issuance Expenses with Proceeds and agreed that DRCO may use the proceeds to
Early replace the self-raised funds of RMB 370182808.63 invested in advance and funds of RMB 5454988.26 paid for issuance
investment and expenses which totaled RMB 375637796.89. Ernst & Young Hua Ming (Special General Partnership) issued the Capital
replacement of Verification Report on DR Corporation Limited's Investments in Intended Projects with Self-owned Funds (Ernst & Young
proceeds- Hua Ming (2022) Zhuan Zi No. 61403707_H01). Before May 10 2022 DRCO successively transferred a total of RMB
funded projects 366804385.32 from its dedicated proceeds account for the replacement purpose including RMB 361349397.06 for theinvestments in advance and RMB 5454988.26 for issuance expenses. (When calculating the actual net proceeds of the
fundraising this amount has been deducted as issuance expenses.) The remaining portion that has not been replaced in a
timely manner will continue to be used for future fundraising purposes.During the Reporting Period the Company used its own funds to pay part of the funds for the proceeds-funded projects and
replaced them with RMB 22241444.29 in equivalent amount from the raised funds.Use idle
proceeds to
temporarily Not applicable
replenish
working capital
Applicable
The amount and 1.The remaining proceeds for the "Supplementary Working Capital Project" amounted to RMB 553564.16 and that for the
reasons for the "Channel Network Construction Project" amounted to RMB 16159899.37.balance of
proceeds after 2.During the implementation of the proceeds-funded projects the Company strictly adhered to the relevant regulations on the
project use of proceeds and prudently utilized them. While ensuring that the implementation of the proceeds-funded projects was not
implementation affected and that the proceeds were secure the Company engaged in cash management of idle proceeds to improve theefficiency of their utilization. This resulted in certain investment returns and interest income generated during the period of
deposit.
1. On December 26 2024 the Company held the 12th meeting of the second session of the Board of Directors and the 12th
Meeting of the second Session of the Board of Supervisors and on January 14 2025 the Company held the first Extraordinary
General Meeting of 2025 reviewing and approving the Proposal on Cash Management for Part of Idle Proceeds and Self-
owned Funds. DRCO was approved to use not more than RMB 1650000000 of idle proceeds (including surplus proceeds)
and not more than RMB 5500000000 of its own funds for cash management for a period of 12 months from the date of
review and approval. Such funds can be used on a revolving basis within the aforesaid amount and term.Use and 2. On December 24 2025 the Company held the 17th meeting of the second session of the Board of Directors and the first
destination of Extraordinary General Meeting of 2026 reviewing and approving the Proposal on Cash Management for Part of Idle
unused proceeds Proceeds and Self-owned Funds. DRCO was approved to use not more than RMB 1650000000 of idle proceeds (including
surplus proceeds) and not more than RMB 5500000000 of its own funds for cash management for a period of 12 months
from the date of review and approval. Such funds can be used on a revolving basis within the aforesaid amount and term. In
2025 the wealth management income amounted to RMB 36736547.52. As of December 31 2025 the balance of idle
fundraising funds invested in wealth management products not yet matured was RMB 1461000000.00 of which the balance
of over-raised funds was RMB 1441000000.00 and the balance of committed project investment funds was RMB
20000000.00.
Problems or 1.On August 12 2025 an amount of RMB 92093.71 was deducted by the court from the Company's dedicated account for
other raised funds (Account No.: 15906520131496) because of Contract dispute litigation.circumstances
in the use and 2.On August 29 2025 the Company transferred RMB 92093.71 back into the aforementioned dedicated account for over-
disclosure of raised funds from its own capital account which ensured that the balance of the dedicated account was restored to its pre-
proceeds deduction state without any material impact on the normal progress of the Company's proceeds- funded projects.
3. Changes in projects funded by proceeds
□Applicable?Not applicable
4. Verification opinions from intermediary institutions regarding the deposit and use of proceeds
?Applicable?Not applicable
Upon verification China Securities Co. Ltd. the sponsor believes that DR Corporation Limited has used
1202025Annual Report of DR Corporation Limited
the raised funds in compliance with regulations and has effectively implemented the fundraising
supervision agreement. As of December 31 2025 the specific use of the raised funds by the Company is
consistent with the disclosed information meets the relevant regulatory requirements and the
corresponding decision-making procedures have been duly followed. The sponsor has no objection to the
deposit management and use of the raised funds by the Company in 2025.Deloitte Touche Tohmatsu Certified Public Accountants LLP confirms that the report on the deposit
management and actual use of the raised funds of DR Corporation Limited has been prepared in
accordance with the Rules for the Supervision of Raised Funds of Listed Companies issued by the China
Securities Regulatory Commission and the Guidelines for Self-Regulation of Listed Companies No. 2--
Standardized Operations of Companies Listed on the ChiNext of the Shenzhen Stock Exchange. In all
material respects it truthfully reflects the deposit management and actual use of the raised funds of the
Company as of December 31 2025.There were no changes to the Company's proceeds- funded projects during the Reporting Period.XVII. Other Important Matters
□Applicable?Not applicable
There were no other significant matters that need to be explained during the Reporting Period.XVIII. Significant Matters of DRCO's Subsidiaries
□Applicable?Not applicable
1212025Annual Report of DR Corporation Limited
Part VI. Changes in Shares and Information of Shareholders
I. Changes in Shares
1. Changes in shares
Unit: shares
Before this change Increase/decrease (+ -) After this change
Quantit Issue of Bonus
y Percentage
Conversion Other Subtotal Quantity Percentage
new shares shares of reserves
I. Shares
subject to 360000 - -
selling 000 90.00% 264550 35999932 35973477 265225 0.07%
restrictions 5 5
1. Shares held
by the state
2. Shares held
by state-
owned legal
persons
3. Shares held
by other 360000 - -
domestic 000 90.00% 264550 35999932 35973477 265225 0.07%
entities 5 5
Including:
shares held 360000 - -
by domestic 000 90.00% 36000000 36000000
legal persons 0 0
Shares held
by domestic
natural 264550 675 265225 265225 0.07%
persons
4. Shares held
by foreign
investors
Including:
Shares held
by overseas
legal persons
Shares held
by overseas
natural
persons
II. Shares not
subject to 40010 10.00% 35999932 35999932 4000093selling 000 5 5 25 99.93%
restrictions
1222025Annual Report of DR Corporation Limited
1. RMB-
denominated 40010 10.00% 35999932 35999932 4000093ordinary 000 5 5 25 99.93%
shares
2. Foreign
shares listed
domestically
3. Foreign
shares listed
overseas
4. Others
III. Total 400010
000100.00%2645500264550
4002745100.00%
shares 50
Reasons for changes in shares.?Applicable □Not applicable
(1) During the Reporting Period DRCO completed the grant and registration of the Class I Restricted
Shares under the 2025 Restricted Share Incentive Plan. The number of Class I Restricted Shares granted
and registered was 264550 shares with the grant date being August 28 2025 and the listing date being
September 19 2025.
(2) The lock-up period for the shares issued by DRCO prior to its initial public offering commenced on
December 15 2021 with a lock-up period of 42 months. The release date for trading was June 17 2025.There were 4 shareholders and 360000000 shares released from lock-up restrictions.
(3) Additional 675 shares locked by executive due to his departure.
Approval of changes in shares
?Applicable □Not applicable
On July 10 2025 DRCO held the 14th meeting of the second session of the Board of Directors and on
July 30 2025 held the Second Extraordinary General Meeting of Shareholders for 2025 at which the
"Proposal on DRCO's '2025 Restricted Share Incentive Plan (Draft)' and its Summary" and other matters
were reviewed and approved.On August 26 and August 27 2025 DRCO held the 4th meeting of the Remuneration and Appraisal
Committee of the second session of the Board of Directors and the 15th meeting of the second session of
the Board of Directors respectively. At these meetings the "Proposal on Adjusting Matters Relating to the
2025 Restricted Share Incentive Plan" and the "Proposal on Granting Restricted Shares for the First Time
to Incentive Recipients under the 2025 Restricted Share Incentive Plan" were reviewed and approved. The
Remuneration and Appraisal Committee of the Board of Directors verified the list of incentive recipients
for the first grant of restricted shares under the Incentive Plan and issued an opinion on whether the
conditions for granting equity interests to the incentive targets had been satisfied. The law firm issued a
corresponding report. Pursuant to the authorization granted by DRCO's Second Extraordinary General
Meeting of Shareholders for 2025 the Board of Directors adjusted the list of initial grantees and the
quantity of share-based payments under the Incentive Plan. With August 28 2025 as the initial grant date
a total of 716000 restricted shares were initially granted to 26 eligible grantees. Specifically 264600
Class I Restricted Shares were initially granted to 2 of the grantees and 451400 Class II Restricted Shares
were initially granted to 25 of the grantees. The grant price was RMB 15.12 per share. The listing date of
the 264600 Class I Restricted Shares was September 19 2025.
1232025Annual Report of DR Corporation Limited
Transfer of changes in shares
?Applicable □Not applicable
During the Reporting Period the registration procedures for the grant of Class I Restricted Shares under
the Company's 2025 Restricted Share Incentive Plan have been completed through the China Securities
Depository and Clearing Corporation Limited Shenzhen Branch.Impact of changes in shares on financial indicators such as basic and diluted earnings per share and net
asset value per share attributable to DRCO's holders of ordinary shares for the most recent year and the
most recent period
?Applicable □Not applicable
During the Reporting Period DRCO's total share capital increased from 400010000 shares to
400274550 shares resulting in a corresponding dilution of earnings per share and net assets per share. For
relevant data please refer to "V. Key Accounting Data and Financial Indicators" under "Part II: Company
Profile and Key Financial Indicators" in this report.Other disclosure deemed necessary by DRCO or required by securities regulatory authorities.□Applicable?Not applicable
2. Changes in restricted shares
?Applicable □Not applicable
Unit: shares
Number of Number of
restricted Increase in the restricted Number ofName of number of shares restricted Reasons for
shareholder shares at thebeginning of restricted shares released shares at the
selling Date of release
period during the period during the end of period
restrictions
period
DR Investment
(Zhuhai) Co. 342000000 342000000 0 Pre-IPO
Ltd. restricted shares
June 17 2025
Gongqingcheng
Wendy No. 1
Investment 7200000 7200000 0 Pre-IPO
Management restricted shares
June 17 2025
Partnership (LP)
Gongqingcheng
Wendy No. 2
Investment 7200000 7200000 0 Pre-IPO
Management restricted shares
June 17 2025
Partnership (LP)
Gongqingcheng
Wendy No. 3
Investment 3600000 3600000 0 Pre-IPO
Management restricted shares
June 17 2025
Partnership (LP)
From the date of
completion of the
grant and
registration for 12
months 24 months
36 months and 48
Niu Bo 0 132275 0 132275 Equity incentive
months. After the
restricted shares expiration of thelock-up period
DRCO will handle
the lifting of the
restricted sale for the
incentive recipients
who meet the
conditions for lifting
1242025Annual Report of DR Corporation Limited
the restricted sale.DRCO shall
repurchase and
cancel the Class I
Restricted Shares
held by those
incentive recipients
who have not met the
conditions for the
release of
restrictions.From the date of
completion of the
grant and
registration for 12
months 24 months
36 months and 48
months. After the
expiration of the
lock-up period
DRCO will handle
the lifting of the
restricted sale for the
He Lei 0 132275 0 132275 Equity incentive incentive recipientsrestricted shares who meet the
conditions for lifting
the restricted sale.DRCO shall
repurchase and
cancel the Class I
Restricted Shares
held by those
incentive recipients
who have not met the
conditions for the
release of
restrictions.As of the end of the
Reporting Period
Mr. Yin Luwen has
been resigned for
more than six
months. Pursuant to
relevant regulations
during his tenure as
Yin Luwen 0 675 0 675.00 Shares locked confirmed uponby executive appointment and
within six months
after the expiration of
tenure the number of
shares transferred
annually shall not
exceed 25% of the
total shares held in
DRCO.Total 360000000 265225 360000000 265225 -- --
II. Issuance and Listing of Securities
1. Issuance of securities (excluding preferred shares) during the Reporting Period
?Applicable □Not applicable
1252025Annual Report of DR Corporation Limited
Names of Aggregate
equity and Offering
their Date of issue price (or Number of Date of
number of Last
shares issued listing share trading Disclosure index
Date of
derivative interest rate) permitted to date disclosure
securities be traded
Equity
For details
please refer to
the
"Announcement
on the
Completion of
the Initial grant
A-share and registration
ordinary August 28 RMB 15.12 September of Class I September
shares of 2025 per share 264550 19 2025 264550 Restricted Sharesunder the 2025 17 2025DRCO Restricted Share
Incentive Plan"
(Announcement
No.: 2025-054)
disclosed on
Cninfo
(www.cninfo.co
m.cn)
Convertible corporate bonds detachable convertible corporate bonds & corporate bonds
Other derivative securities
Description of issuance of securities (excluding preferred shares) during the Reporting Period
On July 10 2025 DRCO held the 14th meeting of the second session of the Board of Directors and on
July 30 2025 it held the Second Extraordinary General Meeting of Shareholders for 2025 at which the
"Proposal on DRCO's '2025 Restricted Share Incentive Plan (Draft)' and its Summary" and other matters
were reviewed and approved. On August 26 and August 27 2025 DRCO held the 4th meeting of the
Remuneration and Appraisal Committee of the second session of Board of Directors and the 15th meeting
of the second session of Board of Directors respectively at which the "Proposal on Adjusting Matters
Relating to the 2025 Restricted Share Incentive Plan" and the "Proposal on Granting Restricted Shares for
the First Time to Incentive Recipients under the 2025 Restricted Share Incentive Plan" were reviewed and
approved. The Remuneration and Appraisal Committee of the Board of Directors verified the list of
incentive recipients for the first grant of restricted shares under the Incentive Plan and issued an opinion on
whether the conditions for granting equity interests to the incentive targets have been satisfied. The law
firm issued a corresponding report. Pursuant to the authorization granted by DRCO's Second Extraordinary
General Meeting of Shareholders for 2025 the Board of Directors adjusted the list of initial grantees and
the quantity of share-based payments under this Incentive Plan. On September 17 2025 DRCO disclosed
the "Announcement on the Completion of the Initial grant and registration of Class I Restricted Shares
under the 2025 Restricted Share Incentive Plan" (Announcement No.: 2025-054). DRCO had completed
the initial grant and registration of the Class I Restricted Shares under the 2025 Restricted Share Incentive
Plan. The number of Class I Restricted Shares initially granted was 264550 shares granted to 2 grantees at
a grant price of RMB 15.12 per share. The grant date for such shares was August 28 2025 and the listing
date was September 19 2025.
2. Changes in the total number of shares and shareholder structure of DRCO and changes in the
asset and liability structure of DRCO
?Applicable □Not applicable
During the Reporting Period DRCO completed the initial grant and registration of the Class I Restricted
Shares under the 2025 Restricted Share Incentive Plan. The number of Class I Restricted Shares granted
1262025Annual Report of DR Corporation Limited
and registered was 264550 shares and DRCO's total share capital increased by 264550 shares changing
from 400010000 shares to 400274550 shares. For details of the specific changes please refer to "I.Changes in Shares" in "Part VII. Changes in Shares and Information of Shareholders" of this report. For
details of the changes in DRCO's assets and liabilities structure please refer to the relevant parts of "Part
VIII. Financial Reports" of this report.
3. Employee stock ownership
□Applicable?Not applicable
III. Shareholders and Actual Controllers
1. Number of shareholders and their shareholdings
Total
number of Total Total number
holders of number of of holders of
ordinary holders of preferred shares
Total shares as preferred (if any) whose
number of of the end shares (if voting rights
ordinary of the any) whose were restored at Total number
shareholders 11635 previous 12778 voting rights the
of shareholders
at the end of month were 0 end of the 0 holding special 0
the before the restored at previous month voting shares
Reporting disclosure the end of prior to the (if any)
Period date of the the disclosure date
annual Reporting of the annual
report Period (see report (see Note
annual Note 9) 9)
report
Shareholders holding more than 5% of DRCO's shares or top 10 shareholders (excluding shares borrowed via
margin financing)
Number Pledged marked or frozen
of Number
shares Increase or of shares Number of
Name of Nature of Shareholdi held at decrease held shares held not
shareholder sharehold ng ratio the end during the subject to subject toer of the Reporting selling selling Shares status Quantity
Reporti Period restrictio restrictions
ng ns
Period
DR Domestic
Investment non-state-owned 85.44% 342000(Zhuhai) 000 0 0 342000000 Not applicable 0
Co. Ltd. legalperson
Gongqingch
eng Wendy Domestic
No. 1 non-state-
Investment owned 1.80% 72000 0 0 7200000 Not applicable 0
Management legal 00
Partnership person
(LP)
Gongqingch
eng Wendy Domestic
No. 2 non-state-
Investment owned 1.80% 72000 0 0 7200000 Not applicable 0
Management legal 00
Partnership person
(LP)
Gongqingch
eng Wendy Domestic
No. 3 non-state-
Investment owned 0.90% 3600000 0 0 3600000 Not applicable 0Management legal
Partnership person
(LP)
Zhuhai State- 25667
Runxin owned 0.64% 35 0 0 2566735 Not applicable 0
1272025Annual Report of DR Corporation Limited
Zhirong legal
No. 1 person
Investm
ent
Partners
hip (LP)
Domestic
Li Rongjun natural 0.48% 1916500 736100 0 1916500 Not applicable 0persons
Hong Kong
Securities Overseas
Clearing legal 0.20% 818389 -1387448 0 818389 Not applicable 0
Company person
Ltd.Domestic
Liu Zicheng natural 0.15% 584360 218900 0 584360 Not applicable 0
persons
Chen Domestic
Xuemei natural 0.14% 544800 544800 0 544800 Not applicable 0persons
China
Securities -
CMB –
China
Securities
DR No. 1
Strategic Other 0.12% 465644 -86400 0 465644 Not applicable 0
Placement
Collective
Asset
Management
Plan
Zhuhai Runxin Zhirong No. 1 Investment Partnership (LP) has become one of DRCO's top
Any strategic investor or 10 shareholders as DRCO placed 2566735 shares that were locked up from December 15 2021 to December 14
general legal person 2022. These shares were released and traded on the market from
becomes one of top 10 December 15 2022. China Securities - CMB - China Securities DR No. 1 Strategic Placement Collective Asset
shareholder as a result of Management Plan is a special asset management plan through which DRCO's senior management and core
the placement of new employees took part in the strategic allotment of DRCO's initial public offering. As a result this asset management
shares (if any) (see Note 4) plan became one of DRCO's top 10 shareholders after DRCO placed 978952 shares that were locked up fromDecember 15 2021 to December 14 2022. These shares were released and traded on the market from December 15
2022.
Zhang Guotao and Lu Yiwen the actual controllers of DRCO hold a 100% stake in DR Investment (Zhuhai). DR
Investment (Zhuhai) Gongqingcheng Wendi No. 1 Investment Management Partnership (LP) Gongqingcheng
Relationship or acting in Wendi No. 2 Investment Management
concert among the Partnership (LP) and Gongqingcheng Wendi No. 3 Investment Management Partnership
aforesaid shareholders (LP) are all the enterprises controlled by Zhang Guotao DRCO's actual controller. Other than that DRCO is not
aware of any connected relationship among the aforesaid shareholders nor is DRCO aware of any parties acting in
concert.Whether the above-
mentioned shareholders
exercise voting rights via a Not applicable
proxy or as a proxy or
waive their voting rights
Whether top 10
shareholders have special
accounts for share Not applicable
repurchase (if any) (see
Note 10)
Shareholdings of the top 10 shareholders of unrestricted shares (excluding shares borrowed via financing margin and shares locked by executives)
Name of Number of unrestricted shares held at the end of Type of shares
shareholder the Reporting Period Type of shares Quantity
DR Investment (Zhuhai) 342000000 RMB-denominated 3420000Co. Ltd. ordinary shares 00
Gongqingcheng Wendi
No. 1 Investment RMB-denominated
Management 7200000 ordinary shares 7200000
Partnership (LP)
Gongqingcheng Wendi
No. 2 Investment 7200000 RMB-denominatedManagement ordinary shares 7200000
Partnership (LP)
Gongqingcheng Wendi RMB-denominated
No. 3 Investment 3600000 ordinary shares 3600000
1282025Annual Report of DR Corporation Limited
Management Partnership
(LP)
Zhuhai Runxin
Zhirong No. 1
Investment 2566735
RMB-denominated
ordinary shares 2566735
Partnership (LP)
Li Rongjun 1916500 RMB-denominatedordinary shares 1916500
Hong Kong
Securities Clearing 818389 RMB-denominated
Company Ltd. ordinary shares
818389
Liu Zicheng 584360 RMB-denominatedordinary shares 584360
Chen Xuemei 544800 RMB-denominatedordinary shares 544800
China Securities - CMB –
China
Securities DR No. 1
Strategic 465644 RMB-denominated
Placement ordinary shares
465644
Collective Asset
Management Plan
Relationship or acting in
concert among the top 10 Zhang Guotao and Lu Yiwen the actual controllers of DRCO hold a 100% stake in DR Investment (Zhuhai). DR
shareholders of Investment (Zhuhai) Gongqingcheng Wendi No. 1 Investment Management Partnership (LP) Gongqingcheng
unrestricted tradable Wendi No. 2 Investment Management
shares and between the Partnership (LP) and Gongqingcheng Wendi No. 3 Investment Management Partnership
top 10 shareholders of (LP) are all the enterprises controlled by Zhang Guotao DRCO's actual controller. Other than that DRCO is not
unrestricted tradable aware of any connected relationship among the aforesaid shareholders nor is DRCO aware of any parties acting in
shares and the top 10 concert.shareholders
Description of
shareholders involved in
margin financing and
securities lending (if any) Not applicable.(see Note
5)
Unit: shares
Share lending through margin financing among shareholders holding more than 5% of shares top 10
shareholders and top 10 shareholders of unrestricted outstanding shares
□Applicable?Not applicable
Changes in top 10 shareholders and top 10 shareholders of unrestricted outstanding shares due to shares
lent/returned via margin financing
□Applicable?Not applicable
Whether DRCO has a weighted voting right arrangement
□Applicable?Not applicable
Whether DRCO's top 10 holders of ordinary shares and top 10 holders of unrestricted ordinary shares
engaged in any repurchase agreement-based transaction during the Reporting Period
□Yes?No
DRCO's top 10 holders of ordinary shares and top 10 holders of unrestricted ordinary shares did not
engage in any repurchase agreement-based transaction during the Reporting Period.
2. Controlling shareholders of DRCO
Nature of controlling shareholder: natural person
Type of controlling shareholder: legal person
1292025Annual Report of DR Corporation Limited
Name of controlling Legal
representative/person in Date of establishment Organization code Main business
shareholder charge of the entity
General items: investment
activities with own funds;
business management
consulting; information
DR Investment (Zhuhai) consulting services
Co. Ltd. Zhang Guotao November 24 2015 914403003587652274 (excluding licensinginformation consulting
services); marketing
planning; corporate image
planning; non-residential
real estate leasing.Shareholdings of other
domestic and foreign
listed companies
controlled and
participated in by Not applicable
the controlling
shareholders during the
Reporting Period
Changes in the controlling shareholder during the Reporting Period
□Applicable?Not applicable
Here was no change in the controlling shareholder of DRCO during the Reporting Period.
3. DRCO's actual controller and its parties acting in concert
Nature of actual controller: Domestic natural persons
Type of actual controller: natural person
Relationship with actual Whether possess the right of
Name of actual controller Nationality abode in other countries or
controller regions
Zhang Guotao Himself China No
Lu Yiwen Herself China No
Main occupation and Zhang Guotao is the chairman of DRCO and Lu Yiwen is a director and the general
position manager (president) of DRCO.Domestic and foreign listed
companies held during the Not applicable
past 10 years
Change in actual controllers during the Reporting Period
□Applicable?Not applicable
There was no change in the actual controller of DRCO during the Reporting Period.Ownership and controlling relationship between DRCO and controlling shareholder
1302025Annual Report of DR Corporation Limited
The actual controller controls DRCO through trust or other asset management
□Applicable?Not applicable
4. The cumulative shares pledged by the controlling shareholder or the largest shareholder of DRCO
and its parties acting in concert accounts for 80% of the shareholdings they hold in DRCO
□Applicable?Not applicable
5. Other legal-person shareholders holding more than 10% of DRCO's shares
□Applicable?Not applicable
6. Reduction of restricted shares by controlling shareholders actual controllers restructuring
parties and other commitment entities
□Applicable?Not applicable
IV. Implementation of Share Repurchase during the Reporting Period
Progress of the share repurchases
□Applicable?Not applicable
Progress of the reduction of share repurchased shares by means of call auction trading
□Applicable?Not applicable
V. Information about Preferred Shares
□Applicable?Not applicable
There were no preferred shares during the Reporting Period.
1312025Annual Report of DR Corporation Limited
Part VII. Bonds
□Applicable?Not applicable
1322025Annual Report of DR Corporation Limited
Part VIII. Financial Report
I. Auditor's Report
Auditor's opinion Unqualified opinion
Date of signing 24April 2026
Auditor Deloitte Touche Tohmatsu Certified Public Accountants LLP
Audit Report Number De Shi Bao (Shen) Zi (26) No. P07167
Chinese Certified Public Accountant Peng Jinyong Luo Wei
Auditor's Report (Body)
TO THE BOARD OF DIRECTORS OF DR CORPORATION LIMITED
I. Opinion
We have audited the financial statements of DR Corporation Limited (the "Company") which comprise the consolidated and
the Company's balance sheets as at 31 December 2025 and the consolidated and the Company's income statements the
consolidated and the Company's cash flow statements and the consolidated and the Company's statements of changes in
shareholders' equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements are prepared in all material respects in accordance with the
Accounting Standards for Business Enterprises and present fairly the consolidated and the Company's financial position as at
31 December 2025 and the consolidated and the Company's results of operations and cash flows for the year then ended.
II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are
further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are
independent of the Company in accordance with the Independence Standards for Chinese Certified Public Accountants No. 1
- Independence Requirements for Financial Statement Audit and Review Engagements and the Code of Ethics for Chinese
Certified Public Accountants (the "Code") and we have fulfilled our other ethical responsibilities in accordance with the
Code. We have complied with the independence requirements for audits of public interest entities during our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most significance in our audit of the financial
statements of the current year. These matters were addressed in the context of our audit of the financial statements as a whole
and in forming our opinion thereon we do not provide a separate opinion on these matters. We determine the followings are
key audit matters that need to be addressed in our report.
1. Occurrence of revenue from sales of goods
For the year ended 31 December 2025 the revenue presented in the Company's consolidated financial statements was
RMB1520123270.56. The Company's business model mainly includes direct sales of goods to consumers through direct-
operated stores e-commerce platforms and joint-operated stores in collaboration with shopping malls. The revenue is
1332025Annual Report of DR Corporation Limited
recognised at a point in time when the customers receive goods. As the amount of revenue from sales of goods is material to
the financial statements and there is an inherent risk that management may manipulate revenue recognition to meet specific
targets or expectations the occurrence of revenue from sales of goods is identified as a key audit matter in the audit of
consolidated financial statements.Our procedures in relation to above key audit matter mainly include:
(1) Testing and evaluating the operation effectiveness of key internal control related to recognition of revenue from sales of
goods;
(2) Obtaining an understanding of key terms of the contract for sales of goods and assessing whether the accounting policy
for recognition of revenue from sales of goods complies with relevant provisions of the Accounting Standards for
Business Enterprises;
(3) Performing confirmation procedures for balances of accounts receivable with customers on a sampling basis;
(4) Carrying out the reconciliation of the business system and the financial system under the assistance of internal data
analysts specifically using computer-assisted audit techniques to reconcile order amounts in the business system
against revenue recognition records in the financial system on a transaction-by-transaction basis as well as payment
receipts against original transaction data. On this basis conducting a sample check of orders in the business system
verifying the corresponding delivery notes logistics records and other relevant documentation;;
(5) Selecting samples from the sales orders for which revenue has already been recognized during the year check the
corresponding bank payment records against the selected samples;
(6) Performing data analysis on the sales orders with confirmed revenue based on multiple dimensions including order
placement time order payment time customer order concentration and frequency of customer settlements on the same
day;
(7) Performing cut-off tests on revenue from sales of goods inspecting the outbound bills and relevant express delivery
records and customer receipts for one month before and after the balance sheet date and checking whether revenue from
sales of goods is recorded in the correct accounting period;
2. Existence and measurement of inventories at the end of the period
As at 31 December 2025 the gross carrying amount of inventories presented in the Company's consolidated financial
statements was RMB711692848.49 and the corresponding provision for decline in value of inventories was
RMB3821724.61. The Company measures the closing balance of inventories at the lower of cost and net realisable value
and provision for decline in value of inventories is made where the net realisable value of inventories is below cost while the
management should make significant accounting estimates to determine the net realisable value. Furthermore the Company's
inventories have characteristics such as high unit value and difficulty in verifying authenticity resulting in a high inherent
risk regarding the existence of inventories. Therefore existence and measurement of inventories at the end of the period is
identified as a key audit matter in the audit of consolidated financial statements.Our procedures in relation to above key audit matters mainly include:
(1) Testing and evaluating the operating effectiveness of key internal controls in relation to purchase and management of
inventories and the recognition of provision for decline in value of inventories;
(2) Attending physical inventory count observing on the site to check whether the Company's physical inventory count
plan was implemented properly; checking the quantity of the inventories on a sampling basis weighing the inventories
1342025Annual Report of DR Corporation Limited
on the site to check the quality inspecting the certificates of the products and verifying the certificate numbers on the
website of the appraisal organisation and sending inventories to professional third-party inspection institutions to check
the authenticity;
(3) Understanding the accounting policies of provision for decline in value of inventories and evaluating whether the
relevant accounting policies comply with the relevant provisions of the Accounting Standards for Business Enterprises
("ASBE");
(4) Obtaining the calculation sheet of inventories’ net realisable value evaluating the reasonableness of the key estimates
used in the calculation to determine net realisable value comparing net realisable value with the cost of inventories and
recalculating the amount of the provision for decline in value of inventories;
(5) Obtaining the list of defective and obsolete products and analysing the sufficiency of the provision for decline in value
of inventories.IV. Other information
The Company's management is responsible for preparation of the other information. The other information comprises the
information included in the 2025 annual report but does not include the financial statements and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of the other information we are
required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The management of the Company is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Standards for Business Enterprises and designing implementing and maintaining internal
control that is necessary to enable that the financial statements are free from material misstatement whether due to fraud or
error.In preparing the financial statements the management is responsible for assessing the Company's ability to continue as a
going concern disclosing as applicable matters related to going concern and using the going concern assumption unless the
management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting process.VI. Auditor's Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is
1352025Annual Report of DR Corporation Limited
a high level of assurance but is not a guarantee that an audit conducted in accordance with China Standards on Auditing will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements.As part of an audit in accordance with China Standards on Auditing we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal
control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the management.
(4) Conclude on the appropriateness of the management's use of the going concern assumption and based on the audit
evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required by China
Standards on Auditing to draw attention in our auditor's report to the related disclosures in the financial statements or if such
disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of
our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation (including the disclosures) structure and content of the financial statements and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Company to express an opinion on the financial statements. We are responsible for the direction supervision and
performance of the group audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and timing of the
audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence and communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that are of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when in
1362025Annual Report of DR Corporation Limited
extremely rare circumstances we determine that a matter should not be addressed in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Deloitte Touche Tohmatsu Certified Public Accountants LLP Chinese Certified Public Accountant: Peng Jinyong
Shanghai China (Engagement Partner)
Chinese Certified Public Accountant: Luo Wei
24 April 2026
II. Financial statements
The notes to the financial statements are expressed in Renminbi ("RMB").
1. THE CONSOLIDATED BALANCE SHEET
Prepared by: DR Corporation Limited
31 December 2025
Unit: RMB
Item 31/12/2025 31/12/2024
Current Assets:
Cash and bank balances 255453050.05 139789945.04
Settlement reserves
Placements with banks and
other financial institutions
Held-for-trading financial assets 4614532944.58 4579301487.22
Derivative financial assets
Notes receivable
Accounts receivable 76231588.58 80913074.97
Receivables financing
Prepayments 44694794.36 31799965.88
Premiums receivable
Amounts receivable under
reinsurance contracts
Ceded insurance reserves
Other receivables 6849519.33 5861059.14
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
1372025Annual Report of DR Corporation Limited
Inventories 707871123.88 447453664.80
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 629841781.93 433485362.17
Other current assets 144205619.48 162203323.60
Total Current Assets 6479680422.19 5880807882.82
Non-current Assets:
Loans and advances to customers
Debt investments 20913414.28 569885924.01
Other debt investments
Long-term receivables
Long-term equity investments 38818109.40
Investment in other equity instruments
Other non-current financial assets 309215157.75 403675066.37
Investment properties
Fixed assets 5614795.86 8468744.76
Construction in progress 46581024.88
Bearer biological assets
Oil and gas assets
Right-of-use assets 170335409.88 152164147.57
Intangible assets 466394718.49 468810408.38
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term prepaid expenses 31407587.38 33080008.71
Deferred tax assets 40793386.78 12604433.20
Other non-current assets 23637116.29 22796044.75
Total Non-current Assets 1153710720.99 1671484777.75
TOTALASSETS 7633391143.18 7552292660.57
Current Liabilities:
Short-term borrowings 790302899.14 339509472.61
Loans from the central bank
Taking from banks and other
financial institutions
Held-for-trading financial liabilities 144722831.86
Derivative financial liabilities
Notes payable 73961196.53 32833149.16
Accounts payable 35318002.01 31342378.26
Receipts in advance
Contract liabilities 116030178.26 112689599.45
1382025Annual Report of DR Corporation Limited
Financial assets sold under
repurchase agreements
Customer deposits and deposits from
banks and other financial institutions
Funds from securities trading agency
Funds from underwriting
securities agency
Employee benefits payable 49193098.97 49322968.57
Taxes payable 26749615.82 24920783.07
Other payables 57528339.01 284488227.25
Including: Interest payable
Dividends payable
Fees and commissions payable
Amounts payable under
reinsurance contracts
Held-for-sale liabilities
Non-current liabilities due
121790031.68124580445.15
within one year
Other current liabilities 11264840.37 10993820.57
Total Current Liabilities 1282138201.79 1155403675.95
Non-current Liabilities:
Insurance reserves
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 70683200.60 57720087.24
Long-term payables
Long-term employee benefits payable
Provisions 2052503.50 2396714.59
Deferred income
Deferred tax liabilities 13724259.11 13267878.46
Other non-current liabilities
Total Non-current Liabilities 86459963.21 73384680.29
TOTAL LIABILITIES 1368598165.00 1228788356.24
OWNERS' EQUITY:
Share capital 400274550.00 400010000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 4464073048.65 4460323165.76
Less: Treasury shares 3999996.00
Other comprehensive income 4108128.93 1933804.33
Special reserve
Surplus reserve 200005000.00 200005000.00
1392025Annual Report of DR Corporation Limited
General risk reserve
Retained profits 1200332246.60 1261232334.24
Total equity attributable to
6264792978.186323504304.33
owners of the Company
Minority interests
TOTAL OWNERS' EQUITY 6264792978.18 6323504304.33
TOTAL LIABILITIES AND OWNERS'
7633391143.187552292660.57
EQUITY
Legal representative: Zhang Guotao Chief Financial Officer: Huang Shuirong Person in Charge of the Accounting Body:
Ou Zhipeng
2. THE COMPANY'S BALANCE SHEET
Unit: RMB
Item 31/12/2025 31/12/2024
Current Assets:
Cash and bank balances 195405694.13 84371254.48
Held-for-trading financial assets 3956973268.03 3778922269.59
Derivative financial assets
Notes receivable
Accounts receivable 220362548.84 158171764.44
Receivables financing
Prepayments 35898398.83 25600858.22
Other receivables 784899194.37 1074292359.51
Including: Interest receivable
Dividends receivable 40000000.00
Inventories 703752452.95 446324926.43
Including: Data resources
Contract assets
Held-for-sale assets
Non-current assets due within one year 572358005.72 376061459.78
Other current assets 99623069.09 158117584.81
Total Current Assets 6569272631.96 6101862477.26
Non-current Assets:
Debt investments 20913414.28 517058449.21
Other debt investments
Long-term receivables
Long-term equity investments 379753587.17 346935477.77
Investment in other equity instruments
Other non-current financial assets
Investment properties
Fixed assets 2389228.56 4346285.63
Construction in progress 46581024.88
Bearer biological assets
Oil and gas assets
1402025Annual Report of DR Corporation Limited
Right-of-use assets 136942266.84 122061607.94
Intangible assets 463236834.25 464537282.07
Including: Data resources
Development expenditure
Including: Data resources
Goodwill
Long-term prepaid expenses 30924614.37 31972813.41
Deferred tax assets 36377726.02 9559397.03
Other non-current assets 18242482.35 19314052.30
Total Non-current Assets 1135361178.72 1515785365.36
TOTALASSETS 7704633810.68 7617647842.62
Current Liabilities:
Short-term borrowings 145000000.00 17000000.00
Held-for-trading financial liabilities 144722831.86
Derivative financial liabilities
Notes payable 704809030.23 302534337.13
Accounts payable 46239992.47 132454442.00
Receipts in advance
Contract liabilities 81428085.67 90314827.40
Employee benefits payable 29133758.87 30766040.52
Taxes payable 8429206.36 10483418.92
Other payables 422893349.44 540282419.90
Including: Interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due
101154620.7799015207.52
within one year
Other current liabilities 4446324.61 4436487.60
Total Current Liabilities 1543534368.42 1372010012.85
Non-current Liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 54282821.45 47880487.44
Long-term payables
Long-term employee benefits payable
Provisions 6679454.79 8149374.59
Deferred income
Deferred tax liabilities 8457677.63 9559397.03
Other non-current liabilities
Total Non-current Liabilities 69419953.87 65589259.06
1412025Annual Report of DR Corporation Limited
TOTAL LIABILITIES 1612954322.29 1437599271.91
OWNERS' EQUITY:
Share capital 400274550.00 400010000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserve 4464073276.32 4460323393.43
Less: Treasury shares 3999996.00 0.00
Other comprehensive income 0.00
Special reserve 0.00
Surplus reserve 200005000.00 200005000.00
Retained profits 1031326658.07 1119710177.28
TOTAL OWNERS' EQUITY 6091679488.39 6180048570.71
TOTAL LIABILITIES AND
7704633810.687617647842.62
OWNERS' EQUITY
3. THE CONSOLIDATED INCOME STATEMENT
Unit: RMB
Item 2025 2024
I. Total operating income 1520123270.56 1482423153.98
Including: Operating income 1520123270.56 1482423153.98
Interest income
Premiums earned
Fee and commission income
II. Total operating costs 1547845706.89 1570976795.23
Including: Operating costs 519645144.24 511619039.82
Interest expenses
Fee and commission expenses
Surrenders
Net claims and benefits paid
Net change in insurance
reserves
Insurance policyholder
dividends
Expenses for inward
reinsurance
Taxes and levies 71661447.16 74439790.96
Selling expenses 751560974.17 815592363.96
Administrative expenses 143704100.95 143151851.03
Research and development
14717312.0417924589.44
expenses
Financial expenses 46556728.33 8249160.02
Including: Interest expenses 15080305.50 12534223.67
Interest income 1258964.66 2694877.83
Add: Other income 12452164.33 11825783.06
Investment income (Loss is 20691165.50 31445485.07
1422025Annual Report of DR Corporation Limited
indicated by "-")
Including: Income from
investments in associates and joint -2381890.60
ventures
Gains from
derecognition of financial assets at 7705706.53 28043524.74
amortised cost
Foreign exchange gains (Losses
are indicated by "-")
Net position hedging gains
(Losses are indicated by "-")
Gains from changes in fair value
147078297.61143497507.24
(Losses are indicated by "-")
Impairment losses of credit
-74552.702073814.11
(Losses are indicated by "-")
Impairment losses of assets
1687236.92-30065543.88
(Losses are indicated by "-")
Gains from disposal of assets
-583858.6610862835.63
(Losses are indicated by "-")
III. Operating profit (Loss is indicated by
153528016.6781086239.98
"-")
Add: Non-operating income 1552944.61 3683906.32
Less: Non-operating expenses 6580987.46 2491264.18
IV. Total profit (Total loss is indicated by
148499973.8282278882.12
"-")
Less: Income tax expenses 9395061.46 29249349.43
V. Net profit (Net loss is indicated by "-
139104912.3653029532.69
")
(I) Categorised by the nature of
continuing operation
1. Net profit from continuing
139104912.3653029532.69
operations (Net loss is indicated by "-")
2. Net profit from discontinued
operations (Net loss is indicated by "-")
(II) Categorised by ownership:
1. Net profit attributable to
139104912.3653029532.69
shareholders of the Company
2. Profit or loss attributable to
minority shareholders
VI. Other comprehensive income net of
2174324.60-2516096.92
tax
Other comprehensive income
attributable to owners of the Company 2174324.60 -2516096.92
net of tax
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
1. Changes from remeasurement
of defined benefit plans
2. Other comprehensive income
that cannot be reclassified to profit or
loss under the equity method
1432025Annual Report of DR Corporation Limited
3. Changes in fair values of
investments in other equity instruments
4. Change in the fair value of the
entity’s own credit risks
5. Others
(II) Other comprehensive income
2174324.60-2516096.92
that may be reclassified to profit or loss
1. Other comprehensive income
that can be reclassified to profit or loss
under the equity method
2. Changes in fair values of other
debt investments
3. Amount recognised in other
comprehensive income resulting from
the reclassification of financial assets
4. Allowances for credit
impairment of other debt investments
5. Cash flow hedges reserve
6. Translation differences of
financial statements denominated in 2174324.60 -2516096.92
foreign currencies
7.Others
Other comprehensive income
attributable to minority shareholders net
of tax
VII. Total comprehensive income 141279236.96 50513435.77
Total comprehensive income
141279236.9650513435.77
attributable to owners of the Company
Total comprehensive income
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share 0.35 0.13
(II) Diluted earnings per share 0.35 0.13
For business combination involving entities under common control occurred during the period net profit of the acquiree generated
before the business combination is RMB0.00 net profit of the acquiree generated in the prior period is RMB0.00.Legal Representative: Zhang Guotao Chief Financial Officer: Huang Shuirong Person in Charge of the Accounting Body:
Ou Zhipeng
4. THE COMPANY'S INCOME STATEMENT
Unit: RMB
Item 2025 2024
I. Operating income 1331310330.26 1337224832.29
Less: Operating costs 499874970.46 504417211.25
Taxes and levies 61248170.82 64645825.01
Selling expenses 617825533.84 697666146.73
Administrative expenses 285351145.53 284868330.13
Research and development
14150.940.00
expenses
Financial expenses -16881049.48 10218948.86
Including: Interest expenses 8308244.76 7851291.80
Interest income 31692363.77 2004435.80
1442025Annual Report of DR Corporation Limited
Add: Other income 1881579.23 3535619.61
Investment income (Loss is
135721263.66289072828.16
indicated by "-")
Including: Income from
investments in associates and joint -2381890.60
ventures
Gains from
derecognition of financial assets at
5387490.7024713277.12
amortised cost (Losses are indicated by
"-")
Net position hedging gains
(Losses are indicated by "-")
Gains from changes in fair value
61795989.22120593373.52
(Losses are indicated by "-")
Impairment losses of credit
329364.121939179.11
(Losses are indicated by "-")
Impairment losses of assets
1758895.15-27705111.96
(Losses are indicated by "-")
Gains from disposal of assets
-743268.0510754774.88
(Losses are indicated by "-")
II. Operating profit (Loss is indicated by
84621231.48173599033.63
"-")
Add: Non-operating income 1097852.30 2505560.45
Less: Non-operating expenses 1987998.13 2479145.51
III. Total profit (Total loss is indicated by
83731085.65173625448.57
"-")
Less: Income tax expenses -27890395.14 54296.06
IV. Net profit (Net loss is indicated by "-
111621480.79173571152.51
")
(I) Net profit from continuing
111621480.79173571152.51
operations (Net loss is indicated by "-")
(II) Net profit from discontinued
operations (Net loss is indicated by "-")
V. Other comprehensive income net of
tax
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
1. Changes from remeasurement
of defined benefit plans
2. Other comprehensive income
that cannot be subsequently reclassified
to profit or loss under the equity method
3. Changes in fair values of
investments in other equity instruments
4. Change in the fair value of the
entity's own credit risks
5. Others
(II) Other comprehensive income
that may be reclassified to profit or loss
1. Other comprehensive income
that can be reclassified to profit or loss
1452025Annual Report of DR Corporation Limited
under the equity method
2. Changes in fair values of other
debt investments
3. Amount recognised in other
comprehensive income resulting from
the reclassification of financial assets
4. Allowances for credit
impairment of other debt investments
5. Cash flow hedges reserve
6. Translation differences of
financial statements denominated in
foreign currencies
7.Others
VI. Total comprehensive income 111621480.79 173571152.51
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. THE CONSOLIDATED CASH FLOW STATEMENT
Unit: RMB
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and
1588678995.961559437979.11
rendering of services
Net increase in customer deposits and
deposits from banks and other financial
institutions
Net increase in loans from the central
bank
Net increase in taking from other
financial institutions
Cash receipts from premiums under
direct insurance contracts
Net cash receipts from reinsurance
business
Net cash receipts from policyholders'
deposits and investment contract
liabilities
Cash receipts from interest fees and
commissions
Net increase in taking from banks
Net increase in financial assets sold
under repurchase arrangements
Net cash receipts for securities trading
agency
Receipts of tax refunds 9284376.94 15214722.25
Other cash receipts relating to
18855921.9829614770.22
operating activities
Sub-total of cash inflows from operating
1616819294.881604267471.58
activities
Cash payments for goods purchased 1013825102.51 423436156.82
1462025Annual Report of DR Corporation Limited
and services received
Net increase in loans and advances to
customers
Net increase in balance with the
central bank and due from banks and
other financial institutions
Cash payments for claims and benefits
under direct insurance contracts
Net increase in placements with banks
and other financial institutions
Cash payments for interest fees and
commissions
Cash payments for insurance
policyholder dividends
Cash payments to and on behalf of
381554984.81428563742.77
employees
Payments of various types of taxes 165334600.53 153090651.94
Other cash payments relating to
333050005.36283021080.97
operating activities
Sub-total of cash outflows from
1893764693.211288111632.50
operating activities
Net Cash Flow from Operating Activities -276945398.33 316155839.08
II. Cash Flows from Investing Activities:
Cash receipts from disposals and
7296442964.716641616655.93
recovery of investments
Cash receipts from investment income 225115247.80 166840806.45
Net cash receipts from disposals of
fixed assets intangible assets and other 384191.24 543411.43
long-term assets
Net cash receipts from disposals of
subsidiaries and other business units
Other cash receipts relating to
7810000.000.00
investing activities
Sub-total of cash inflows from investing
7529752403.756809000873.81
activities
Cash payments to acquire or construct
fixed assets intangible assets and other 313484710.95 272199748.49
long-term assets
Cash payments to acquire investments 6913570040.04 6450465591.22
Net increase in pledged loans
receivables
Net cash payments for acquisitions of
subsidiaries and other business units
Other cash payments relating to
6620000.000.00
investing activities
Sub-total of cash outflows from investing
7233674750.996722665339.71
activities
Net Cash Flow from Investing Activities 296077652.76 86335534.10
III. Cash Flows from Financing
Activities:
Cash receipts from capital
3999996.000.00
contributions
Including: Cash receipts from capital
contributions from minority shareholders
1472025Annual Report of DR Corporation Limited
of subsidiaries
Cash receipts from borrowings 911158960.60 427287829.95
Other cash receipts relating to
25094862.0018707850.67
financing activities
Sub-total of cash inflows from financing
940253818.60445995680.62
activities
Cash repayments of borrowings 462004948.23 478342977.65
Cash payments for distribution of
dividends or profits or settlement of 206119806.34 203605772.64
interest expenses
Including: Payments for distribution of
dividends or profits to minority
shareholders of subsidiaries
Other cash payments relating to
176423016.53246774140.69
financing activities
Sub-total of cash outflows from
844547771.10928722890.98
financing activities
Net Cash Flow from Financing Activities 95706047.50 -482727210.36
IV. Effect of Foreign Exchange Rate
807487.17-6940805.55
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
115645789.10-87176642.73
Equivalents
Add: Opening balance of cash and
139786968.23226963610.96
cash equivalents
VI. Closing Balance of Cash and Cash
255432757.33139786968.23
Equivalents
6. THE COMPANY'S CASH FLOW STATEMENT
Unit: RMB
Item 2025 2024
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods
1586592535.021527126332.65
and the rendering of services
Receipts of tax refunds 17204.27 224614.03
Other cash receipts relating to
2109225231.68762935326.97
operating activities
Sub-total of cash inflows from operating
3695834970.972290286273.65
activities
Cash payments for goods purchased
999307761.07340290886.36
and services received
Cash payments to and on behalf of
290410263.12337651727.17
employees
Payments of various types of taxes 93057839.43 106205843.19
Other cash payments relating to
2062436032.862286548582.51
operating activities
Sub-total of cash outflows from
3445211896.483070697039.23
operating activities
Net Cash Flow from Operating Activities 250623074.49 -780410765.58
II. Cash Flows from Investing Activities:
Cash receipts from disposals and
6087737038.176468279402.52
recovery of investments
Cash receipts from investment income 222847818.82 528752372.03
Net cash receipts from disposals of 384191.24 543411.43
1482025Annual Report of DR Corporation Limited
fixed assets intangible assets and other
long-term assets
Net cash receipts from disposals of
0.0013.47
subsidiaries and other business units
Other cash receipts relating to
7810000.000.00
investing activities
Sub-total of cash inflows from investing
6318779048.236997575199.45
activities
Cash payments to acquire or construct
fixed assets intangible assets and other 312734911.67 270129361.21
long-term assets
Cash payments to acquire investments 5944501579.73 5616432591.30
Net cash payments for acquisitions of
0.000.00
subsidiaries and other business units
Other cash payments relating to
6620000.000.00
investing activities
Sub-total of cash outflows from investing
6263856491.405886561952.51
activities
Net Cash Flow from Investing Activities 54922556.83 1111013246.94
III. Cash Flows from Financing
Activities:
Cash receipts from capital
3999996.000.00
contributions
Cash receipts from borrowings 185000000.00 17000000.00
Other cash receipts relating to
23668433.0016103308.61
financing activities
Sub-total of cash inflows from financing
212668429.0033103308.61
activities
Cash repayments of borrowings 57000000.00 60000000.00
Cash payments for distribution of
dividends or profits or settlement of 201947862.49 200660088.90
interest expenses
Other cash payments relating to
148248905.34213278217.05
financing activities
Sub-total of cash outflows from
407196767.83473938305.95
financing activities
Net Cash Flow from Financing Activities -194528338.83 -440834997.34
IV. Effect of Foreign Exchange Rate
-168.88305.56
Changes on Cash and Cash Equivalents
V. Net Increase in Cash and Cash
111017123.61-110232210.42
Equivalents
Add: Opening balance of cash and
84368277.80194600488.22
cash equivalents
VI. Closing Balance of Cash and Cash
195385401.4184368277.80
Equivalents
1492025Annual Report of DR Corporation Limited
7. THE CONSOLIDATED STATEMENT OF CHANGES IN OWNERS' EQUITY
Amount for the period
Unit: RMB
2025
Equity attributable to owners of the Company
Other equity Les
instruments s:
Item Other MinoritTre General Total owners'
Share Capital comprehe Special Surplus Retained y
Prefer Perpet asur risk Others Subtotal equitycapital Othe reserve nsive reserve reserve profits interests
ence ual y reserve
rs income
shares bonds shar
es
I. Balance
40001
at 31 446032 1933804. 200005000.0 1261232 6323504304
0000.6323504304.33
December 3165.76 33 0 334.24 .33
00
2024
Add:
Changes
in
accountin
g policies
Correctio
ns of
prior
period
errors
Others
II.Balance 40001
4460321933804.200005000.012612326323504304
at 1 0000. 6323504304.33
3165.76330334.24.33
January 00
2025
1502025Annual Report of DR Corporation Limited
III.Changes
for the
399-
period 26455 374988 2174324. -
9996090008-58711326.15
(Decrease 0.00 2.89 60 58711326.15
6.007.64
is
indicated
by "-")
(I) Total
comprehe 2174324. 1391049 141279236.9
141279236.96
nsive 60 12.36 6
income
(II)
Owners'
399
contributi 26455 374988
99914436.8914436.89
ons or 0.00 2.89
6.00
reduction
in capital
1.
Ordinary
shares
contribute
d by
owners
2. Capital
contributi
on from
holders of
other
equity
instrumen
ts
3. Share-
based 14436.8
payments 14436.89 14436.899
included
in owners'
1512025Annual Report of DR Corporation Limited
equity
399
26455373544
4. Others 999 0.00 0.00
0.006.00
6.00
(III)
--
Profit
2000050200005000.0-200005000.00
distributio
00.000
n
1.
Transfer
to surplus
reserve
2.
Transfer
to general
risk
reserve
3.
Distributi
ons to - -
owners 2000050 200005000.0 -200005000.00
(or 00.00 0
sharehold
ers)
4. Others
(IV)
Transfers
within
owners'
equity
1.
Capitalisa
tion of
capital
reserve
2.
1522025Annual Report of DR Corporation Limited
Capitalisa
tion of
surplus
reserve
Loss
offset by
surplus
reserve
4.
Transfer
of
changes
in the
defined
benefit
plan to
retained
earnings
5. Other
comprehe
nsive
income
transferre
d to
retained
earnings
6. Others
(V)
Special
reserve
1.
Transfer
to special
reserve in
the period
2.
1532025Annual Report of DR Corporation Limited
Amount
utilised in
the period
(VI)
Others
IV.Balance 40027 399
4464074108128.200005000.012003326264792978
at 31 4550. 999 6264792978.18
3048.65930246.60.18
December 00 6.00
2025
1542025Annual Report of DR Corporation Limited
Amount for the prior period
Unit: RMB
2024
Equity attributable to owners of the Company
Item Other equity instruments Capi OtherShare Less: General Minority Total owners'
capita Prefer Perpet
tal comprehe Special Surplus Retained
Treasur risk Others Subtotal interests equity
ence ual Others rese nsive reserve reserve profitsl y shares reserve
shares bonds rve income
I.
445
Balance 4000
9964449901.200005000.014082076472637
at 31 1000 6472637841.96
513250801.55841.96
Decemb 0.00
9.16
er 2023
Add:
Changes
in
accounti
ng
policies
Correcti
ons of
prior
period
errors
Others
II.
445
Balance 4000
9964449901.200005000.014082076472637
at 1 1000 6472637841.96
513250801.55841.96
January 0.00
9.16
2024
III. 358 - - -
Changes 026. 2516096. 1469754 1491335 -149133537.63
for the 60 92 67.31 37.63
period
1552025Annual Report of DR Corporation Limited
(Decrea
se is
indicate
d by "-")
(I) Total
-
compreh 5302953 5051343
2516096.50513435.77
ensive 2.69 5.77
92
income
(II)
Owners'
contribu 358
358026.6
tions or 026. 358026.60
0
reductio 60
n in
capital
1.
Ordinar
y shares
contribu
ted by
owners
2.
Capital
contribu
tion
from
holders
of other
equity
instrume
nts
3.
Share- 358
based 358026.6026. 358026.60
payment 060
s
included
1562025Annual Report of DR Corporation Limited
in
owners'
equity
4.
Others
(III)
--
Profit
20000502000050-200005000.00
distribut
00.0000.00
ion
1.
Transfer
to
surplus
reserve
2.
Transfer
to
general
risk
reserve
3.
Distribu
tions to - -
owners 2000050 2000050 -200005000.00
(or 00.00 00.00
sharehol
ders)
4.
Others
(IV)
Transfer
s within
owners'
equity
1.
Capitali
1572025Annual Report of DR Corporation Limited
sation of
capital
reserve
2.
Capitali
sation of
surplus
reserve
Loss
offset by
surplus
reserve
4.
Transfer
of
changes
in the
defined
benefit
plan to
retained
earnings
5. Other
compreh
ensive
income
transferr
ed to
retained
earnings
6.
Others
(V)
Special
reserve
1.
1582025Annual Report of DR Corporation Limited
Transfer
to
special
reserve
in the
period
2.
Amount
utilised
in the
period
(VI)
Others
IV.
446
Balance 4000
0321933804.200005000.012612326323504
at 31 1000 6323504304.33
316330334.24304.33
Decemb 0.00
5.76
er 2024
8. THE COMPANY'S STATEMENT OF CHANGES IN OWNERS' EQUITY
Amount for the period
Unit: RMB
2025
Other equity instruments
Item Share Capital Less: Treasury Other comprehensive
Special reserve Surplus reserve Retained profits Others Total owners' equity
capital Preference Perpetual Others reserve shares income
shares bonds
40001
I. Balance at 31 446032
0000.200005000.001119710177.286180048570.71
December 2024 3393.43
00
Add: Changes in
accounting
policies
Corrections of
1592025Annual Report of DR Corporation Limited
prior period
errors
Others
40001
II. Balance at 1 446032
0000.200005000.001119710177.286180048570.71
January 2025 3393.43
00
III. Changes for
the period 26455 374988 3999996.0
-88383519.21-88369082.32
(Decrease is 0.00 2.89 0
indicated by "-")
(I) Total
comprehensive 111621480.79 111621480.79
income
(II) Owners'
contributions or 26455 374988 3999996.0
14436.89
reduction in 0.00 2.89 0
capital
1. Ordinary
shares
contributed by
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payments 14436.8
14436.89
included in 9
owners' equity
264553735443999996.0
4. Others 0.00
0.006.000
(III) Profit
-200005000.00-200005000.00
distribution
1. Transfer to
1602025Annual Report of DR Corporation Limited
surplus reserve
2. Distributions
to owners (or -200005000.00 -200005000.00
shareholders)
3. Others
(IV) Transfers
within owners'
equity
1. Capitalisation
of capital reserve
2. Capitalisation
of surplus
reserve
Loss offset by
surplus reserve
4. Transfer of
changes in the
defined benefit
plan to retained
earnings
5. Other
comprehensive
income
transferred to
retained earnings
6. Others
(V) Special
reserve
1. Transfer to
special reserve in
the period
2. Amount
utilised in the
period
1612025Annual Report of DR Corporation Limited
(VI) Others
40027
IV. Balance at 31 446407 3999996.0
4550.200005000.001031326658.076091679488.39
December 2025 3276.32 0
00
Amount for the prior period
Unit: RMB
2024
Other equity instruments
Item Share Capital Less: Treasury Other comprehensive
Preference Perpetual Special reserve Surplus reserve Retained profits Others Total owners' equitycapital Others reserve shares income
shares bonds
40001
I. Balance at 31 445996
0000.200005000.001146144024.776206124391.60
December 2023 5366.83
00
Add: Changes in
accounting
policies
Corrections of
prior period
errors
Others
40001
II. Balance at 1 445996
0000.200005000.001146144024.776206124391.60
January 2024 5366.83
00
III. Changes for
the period 358026.-26433847.49-26075820.89
(Decrease is 60
indicated by "-")
(I) Total
comprehensive 173571152.51 173571152.51
income
(II) Owners'
contributions or 358026.
358026.60
reduction in 60
capital
1622025Annual Report of DR Corporation Limited
1. Ordinary
shares
contributed by
owners
2. Capital
contribution
from holders of
other equity
instruments
3. Share-based
payments 358026.
358026.60
included in 60
owners' equity
4. Others
(III) Profit
-200005000.00-200005000.00
distribution
1. Transfer to
surplus reserve
2. Distributions
to owners (or -200005000.00 -200005000.00
shareholders)
3. Others
(IV) Transfers
within owners'
equity
1. Capitalisation
of capital
reserve
2. Capitalisation
of surplus
reserve
Loss offset by
surplus reserve
4. Transfer of
1632025Annual Report of DR Corporation Limited
changes in the
defined benefit
plan to retained
earnings
5. Other
comprehensive
income transferred
to retained
earnings
6. Others
(V) Special
reserve
1. Transfer to
special reserve
in the period
2. Amount
utilised in the
period
(VI) Others
IV. Balance at 40001
446032
31 December 0000. 200005000.00 1119710177.28 6180048570.71
3393.43
202400
1642025 Annual Report of DR Corporation Limited
III. BASIC INFORMATION
DR Corporation Limited (the "Company") is a limited liability company registered in Shenzhen Guangdong Province of the
People’s Republic of China. The Company was established on 8 April 2010 with a perpetual operating period. The registered
place of the Company is Room 1308 Block C CR Land Building Dachong Community Yuehai Street Nanshan District
Shenzhen. The Company headquarters in Shenzhen. The Company and its subsidiaries (the "Group") are primarily engaged in
the brand operations customised sales and R&D and design of jewelry.The consolidated and the Company's financial statements have been approved by the Company's Board of Directors on 24 April
2026.
IV. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. Basis of preparation
The Group has implemented the Accounting Standards for Business Enterprises and relevant provisions issued by the Ministry
of Finance. In addition the Group has disclosed relevant financial information in accordance with Compilation Rules for
Information Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports
(Revised in 2023).
2. Going concern
The Group assessed its ability to continue as a going concern for the 12 months from 31 December 2025 and did not notice any
events or circumstances that may cast significant doubt upon its ability to continue as a going concern. Therefore the financial
statements have been prepared on a going concern basis.V. SIGNIFICANTACCOUNTING POLICIESANDACCOUNTING ESTIMATES
Specific accounting policies and accounting estimates:
The Group determined the specific accounting policies and accounting estimates according to the production and business
operation characteristics that mainly reflected in allowances for bad debts of receivables valuation method of inventories
provision for decline in value of inventories amortisation of long-term prepaid expenses depreciation of right-of-use assets
impairment of long-term assets revenue recognition and measurement etc.
1. Statement of compliance with the Accounting Standards for Business Enterprises ("ASBE")
The financial statements of the Company have been prepared in accordance with the ASBE and present truly and completely
the consolidated and the Company's financial position as at 31 December 2025 and the consolidated and the Company's results
of operations and cash flows for the year then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year i.e. from 1 January to 31 December.
1652025 Annual Report of DR Corporation Limited
3. Operating cycle
The operating cycle refers to the period from purchase of assets used for processing to realisation of cash or cash equivalents.The Group's operating cycle is 12 months.
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its domestic subsidiaries
operate. Therefore the Company and its domestic subsidiaries choose RMB as their functional currency. The Company's
overseas subsidiaries choose the currency used in the primary economic environment in which they operate as their functional
currency. The Company adopts RMB to prepare its financial statements.
5. Determination method and selection basis of materiality criteria
?Applicable□Not applicable
Item Materiality criteria
The amount recovered or reversed on an individual basis
Material amount recovered or reversed of allowances for bad accounts for more than 10% of total allowances for bad debts
debts of receivables of corresponding receivables and the amount exceeds RMB5
million
The amount written off on an individual basis accounts for
more than 10% of total allowances for bad debts of
Write-off of material receivables
corresponding receivables and the amount exceeds RMB5
million
The amount of individual debt investments accounts for more
Material debt investments
than 10% of total debt investments
The amount of individual debt investments written off accounts
Write-off of material debt investments
for more than 10% of total debt investments
Asset groups with material provision for impairment The amount of provision for impairment of a single store's asset
recognised in the current year group is more than RMB500000
The amount of individual prepayments and dividends
Material prepayments and dividends receivable aged more than receivable aged more than one year accounts for more than
one year 10% of corresponding total prepayments and dividends and the
amount exceeds RMB5 million
The amount of individual contract liabilities aged more than
Material contract liabilities aged more than one year
one year accounts for more than 10% of total contract liabilities
Individual accounts payable and other payables aged more than
Material accounts payable and other payables aged more than
one year accounts for more than 10% of total accounts payable
one year or overdue
and other payables and the amount exceeds RMB5 million
Cash receipts or payments relating to individual investing
Material cash receipts or payments relating to investing activities account for more than 10% of total cash receipts or
activities payments relating to investing activities and the amount
exceeds RMB50 million
The net profit of the subsidiary accounts for more than 10% of
Significant subsidiaries
the consolidated net profit of the Group
6. Accounting treatment of business combination involving or not involving enterprises under common
control
Business combinations are classified into business combinations involving enterprises under common control and business
combinations not involving enterprises under common control.
1662025 Annual Report of DR Corporation Limited
(1) Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or parties both before and after the combination and that control is not
transitory.Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combined entities at
the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of
the consideration paid for the combination or the aggregate face value of shares issued as consideration is adjusted to the share
premium in capital reserve. If the share premium is not sufficient to absorb the difference any excess shall be adjusted against
retained earnings.Costs that are directly attributable to the combination are charged to profit or loss for the period in which they are incurred.
(2) Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which all of the
combining enterprises are not ultimately controlled by the same party or parties before and after the combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets given liabilities incurred or
assumed and equity securities issued by the acquirer in exchange for control of the acquiree. Where a business combination not
involving enterprises under common control is achieved in stages that involve multiple transactions the cost of combination is
the sum of the consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously
held interest in the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing legal services valuation
and consultancy services etc. and other associated administrative expenses attributable to the business combination are
recognised in profit or loss when they are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a business combination that
meet the recognition criteria are measured at fair value at the acquisition date.Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets the
difference is treated as an asset and recognised as goodwill which is measured at cost on initial recognition. Where the cost of
combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets the acquirer firstly
reassesses the measurement of the fair values of the acquiree's identifiable assets liabilities and contingent liabilities and
measurement of the cost of combination. If after that reassessment the cost of combination is still less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets the acquirer recognises the remaining difference immediately in
profit or loss for the current period.Goodwill arising on a business combination is measured at cost less accumulated impairment losses and is presented separately
in the consolidated financial statements.
7. Determination criteria of control and preparation method of consolidated financial statements
(1) Determination criteria of control
1672025 Annual Report of DR Corporation Limited
Control is the power over the investee exposures or rights to variable returns from its involvement with the investee and the
ability to use its power over the investee to affect the amount of the investor's returns. The Group reassesses whether or not it
controls an investee if facts and circumstances indicate that there are changes in the above elements of the definition of control.
(2) Preparation method of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses
control over the subsidiary.For a subsidiary disposed of by the Group the operating results and cash flows before the date of disposal (the date when
control is lost) are included in the consolidated income statement and consolidated cash flow statement as appropriate.For a subsidiary acquired through a business combination not involving enterprises under common control the operating results
and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement
and consolidated cash flow statement as appropriate.No matter when the business combination occurs in the reporting period subsidiaries acquired through a business combination
involving enterprises under common control or the party being absorbed under merger by absorption are included in the Group's
scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the
common control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest
reporting period or from the date when they first came under the common control of the ultimate controlling party are included
in the consolidated income statement and consolidated cash flow statement as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform
accounting policies and accounting periods set out by the Company.The effects of all intra-group transactions on the consolidated financial statements are eliminated on consolidation.The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as
"minority interests" under shareholders' equity in the consolidated balance sheet. The portion of net profit or loss of subsidiaries
for the period attributable to minority interests is presented as "profit or loss attributable to minority interests" under "net profit"
in the consolidated income statement.When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority
shareholders' portion of the opening balance of owners' equity of the subsidiary the excess amount is still allocated against
minority interests.Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the
subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and minority interests are
adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the
minority interests are adjusted and the fair value of the consideration paid or received is adjusted to capital reserve under
owners' equity. If the capital reserve is not sufficient to absorb the difference the excess is adjusted against retained earnings.
1682025 Annual Report of DR Corporation Limited
8. Determination criteria for cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily available for payments. Cash equivalents are the Group's short-
term (generally due within three months from the acquisition date) highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
9. Translation of transactions and financial statements denominated in foreign currencies
(1) Transactions denominated in foreign currencies
Transactions denominated in foreign currencies are recorded on initial recognition by applying the spot exchange rate on the
date of transaction.At the balance sheet date foreign currency monetary items are translated into functional currency using the spot exchange rates
at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the
balance sheet date and those on initial recognition or at the previous balance sheet date are recognised in profit or loss for the
period except that (i) exchange differences related to a specific-purpose borrowing denominated in foreign currency that
qualify for capitalisation are capitalised as part of the cost of the qualifying asset during the capitalisation period; (ii) exchange
differences related to hedging instruments for the purpose of hedging against foreign currency risks are accounted for using
hedge accounting; (iii) exchange differences arising from changes in the gross carrying amounts (other than the amortised cost)
of monetary items at fair value through other comprehensive income are recognised as other comprehensive income.When the consolidated financial statements include foreign operation(s) if there is foreign currency monetary item constituting
a net investment in a foreign operation exchange difference arising from changes in exchange rates are recognised as
"translation differences of financial statements denominated in foreign currencies" in other comprehensive income and in profit
or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot
exchange rates on the dates of the transactions. Foreign currency non-monetary items measured at fair value are re-translated at
the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount
and the original functional currency amount is treated as changes in fair value (including changes in exchange rate) and is
recognised in profit or loss for the period or as other comprehensive income.
(2) Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a foreign operation are translated
from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the
spot exchange rate prevailing at the balance sheet date; shareholders' equity items are translated at the spot exchange rates at the
dates on which such items arose; all items in the income statement as well as items reflecting the distribution of profits are
translated at the exchange rates that approximate the spot exchange rates on the dates of the transactions determined on a
reasonable and systematic basis; the difference between the translated assets and the aggregate of liabilities and shareholders'
equity items is recognised as other comprehensive income and included in shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated at the spot
exchange rate prevailing on the date when the cash flows occur. The effect of exchange rate changes on cash and cash
1692025 Annual Report of DR Corporation Limited
equivalents is regarded as a reconciling item and presented separately in the cash flow statement as "effect of exchange rate
changes on cash and cash equivalents".The closing balances and the actual figures of previous year are presented at the translated amounts in the previous year's
financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a foreign operation due to
disposal of certain equity investments or other reasons the Group transfers the accumulated translation differences of financial
statements denominated in foreign currency relating to the foreign operation attributable to the owners' equity of the Company
and presented under owners' equity to profit or loss for the period in which the disposal occurs.When the disposal of part of the equity investments or other reason results in decrease in proportion of equity in a foreign
operation but does not result in loss of control over the foreign operation the translation differences of financial statements
denominated in foreign currency relating to the partial disposal of the foreign operation are attributable to minority interests and
are not transferred to profit or loss for the period. When the disposal of foreign operation is partial disposal of equity in
associate or joint venture the translation differences of financial statements denominated in foreign currency relating to the
foreign operation is transferred to profit or loss in proportion to the foreign operation disposed.
10. Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
instrument.For financial assets purchased or sold in a regular way the Group recognises assets acquired and liabilities assumed on a trade
date basis or derecognises the assets sold on a trade date basis.Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair
value through profit or loss transaction costs are immediately recognised in profit or loss. For other financial assets and
financial liabilities transaction costs are included in their initially recognised amounts. Upon initial recognition of accounts
receivable that do not contain significant financing component or without considering the financing component included in the
contract with a term not exceeding one year under the Accounting Standards for Business Enterprises No. 14 - Revenue
("Revenue Standards") the Group adopts the transaction price as defined in the Revenue Standards for initial measurement.The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability and of
allocating the interest income or interest expense over the relevant accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the
financial asset or financial liability to the gross carrying amount of the financial asset or to the amortised cost of the financial
liability. When calculating the effective interest rate the Group estimates future cash flows considering all contractual terms of
the financial asset or financial liability (such as repayment in advance extension call option or other similar options etc.)
(without considering the expected credit losses).The amortised cost of a financial asset or financial liability is the initially recognised amount net of principal repaid plus or
less the cumulative amortised amount arising from amortisation of difference between the amount initially recognised and the
1702025 Annual Report of DR Corporation Limited
amount at the maturity date using effective interest method and then net of cumulative allowances for losses (only applicable
to financial assets).
(1) Classification recognition and measurement of financial assets
After initial recognition the Group's financial assets of various types are subsequently measured at amortised cost at fair value
through other comprehensive income ("FVTOCI") or at fair value through profit or loss ("FVTPL") respectively.If contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding and the financial asset is held within a business model whose objective is achieved
by collecting contractual cash flows the Group classifies such financial asset as financial assets at amortised cost which
mainly include cash and bank balances accounts receivable other receivables and debt investments etc.If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding and the financial asset is held within a business model whose objective is achieved
by collecting contractual cash flows and selling such financial assets the Group shall classify the financial asset into the
financial asset at fair value through other comprehensive income ("FVTOCI"). Financial assets at FVTOCI are presented as
other debt investments and those due within one year (inclusive) since the balance sheet date are presented as non-current
assets due within one year. Notes receivable and notes receivable classified as at FVTOCI upon acquisition are presented as
receivables financing and others with the period within one year (inclusive) upon acquisition are presented as other current
assets.Upon initial recognition the Group may irrevocably designate the non-held-for-trading equity instrument investments other
than contingent considerations recognised in business combination not involving enterprises under common control as financial
assets at FVTOCI on an individual asset basis. Such type of financial assets is presented as investments in other equity
instruments.A financial asset is classified as held for trading if one of the following conditions is satisfied:
(i) It has been acquired principally for the purpose of selling it in the near term.(ii) On initial recognition it is part of a portfolio of identifiable financial instruments that the Group manages together and
there is objective evidence that the Group has a recent actual pattern of short-term profit-taking.(iii) It is a derivative that is neither a financial guarantee contract nor designated as an effective hedging instrument.Financial assets at FVTPL include financial assets classified as at FVTPL and those designated as at FVTPL:
(i) Financial assets not satisfying the criteria of classification as financial assets at amortised cost and financial assets at
FVTOCI are classified as financial assets at FVTPL.(ii) Upon initial recognition the Group may irrevocably designate the financial assets as at FVTPL if doing so eliminates or
significantly reduces accounting mismatch.Financial assets at FVTPL are presented as held-for-trading financial assets. Financial assets with a maturity over one year
since the balance sheet date (or without a fixed maturity) and expected to be held for over one year are presented under other
non-current financial assets.
1712025 Annual Report of DR Corporation Limited
(2) Financial assets at amortised cost
Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method. Any gains or
losses arising from impairment or derecognition are included in profit or loss for the period.For financial assets at amortised cost the Group recognises interest income using effective interest method. Interest income is
determined by applying an effective interest rate to the gross carrying amount of the financial asset except for the following
circumstances:
(i) For a purchased or originated credit-impaired financial asset the Group calculates and determines the interest income by
applying the credit-adjusted effective interest rate to the amortised cost of the financial asset since initial recognition.(ii) For a purchased or originated financial asset that was not credit-impaired but has become credit-impaired in subsequent
period the Group calculates the interest income by applying the effective interest rate to the amortised cost of the financial
asset in subsequent period. If the financial instrument is no longer credit-impaired due to improvement of credit risk and the
improvement is linked with an event occurred after application of above provisions the Group will calculate the interest
income by applying the effective interest rate to the gross carrying amount of the financial asset.
(3) Financial assets at FVTOCI
For financial assets classified as at FVTOCI except for the impairment losses or gains interest income calculated using
effective interest method and exchange gains or losses which are included in profit or loss for the period the changes in fair
value of the financial assets are included in other comprehensive income. The amounts included in profit or loss for each
period are equivalent to that as if it has been always measured at amortised cost. Upon derecognition the accumulated gains
or losses previously included in other comprehensive income are transferred to profit or loss for the period.Changes in fair value of non-held-for-trading equity instrument investments designated as financial assets at FVTOCI are
recognised in other comprehensive income. When the financial asset is derecognised the cumulative gains or losses
previously recognised in other comprehensive income are transferred and included in retained earnings. During the period in
which the Group holds the non-held-for-trading equity instrument revenue from dividends is recognised in profit or loss for
the period when (i) the Group has established the right of collecting dividends; (ii) it is probable that the associated economic
benefits will flow to the Group; and (iii) the amount of dividends can be measured reliably.
(4) Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value
and any dividend or interest income earned on the financial assets are recognised in profit or loss for the period.For financial asset at amortised cost financial assets classified as at FVTOCI lease receivables financial liabilities that are
not at FVTPL and financial guarantee contracts that are not qualified for derecognition due to the transfer of financial assets
or financial liabilities arising from continuing involvement of the transferred financial assets the Company accounts for the
impairment and recognises the loss allowances on the basis of expected credit loss ("ECL").The Group makes a loss allowance against amount of lifetime ECL of notes receivable and accounts receivable arising from
transactions adopting the Revenue Standard as well as lease receivables arising from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases.
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For other financial instruments (other than purchased or originated credit-impaired financial assets) the Group assesses the
changes of credit risk since initial recognition of relevant financial instruments at each balance sheet date. If the credit risk
has increased significantly since initial recognition of the financial instruments the Group recognises the loss allowance at an
amount equivalent to lifetime ECL; if the credit risk has not increased significantly since initial recognition of the financial
instruments the Group recognises the loss allowance at an amount equivalent to 12-month ECL. The increase or reversal of
credit loss allowance for financial assets other than those classified as at FVTOCI is recognised as an impairment loss or gain
and included in profit or loss for the period. For financial assets classified as at FVTOCI the credit loss allowance is
recognised in other comprehensive income and the impairment loss or gain is included in profit or loss for the period without
reducing the carrying amount of the financial assets in the balance sheet.Where the Group has measured the loss allowance at an amount equivalent to lifetime ECL of a financial instrument in prior
accounting period but the financial instrument no longer satisfies the criteria of significant increase in credit risk since initial
recognition at the current balance sheet date the Group recognises the loss allowance of the financial instrument at an amount
equivalent to 12-month ECL at the current balance sheet date with any resulting reversal of loss allowance recognised as
impairment gains in profit or loss for the period.
(5) Significant increase in credit risk
In assessing whether the credit risk has increased significantly since initial recognition the Group compares the risk of a
default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the financial
instrument as at the date of initial recognition with available reasonable and supportable forward-looking information. For
financial guarantee contracts the date that the Group becomes a party to the irrevocable commitment is considered to be the
date of initial recognition in the application of criteria related to the financial instrument for impairment.The following factors are taken into account when assessing whether credit risk has increased significantly:
(i) Significant changes in internal price indicators as a result of a change in credit risk;
(ii) Significant changes in the rates or other terms of an existing financial instrument if the instrument was newly originated
or issued at the balance sheet date (such as more stringent covenants increased amounts of collateral or guarantees or higher
rate of return etc.);
(iii) Whether external market indicators of credit risk for the same financial instrument or financial instruments with shared
expected life have changed significantly. Indicators include: credit spreads credit default swap price for the borrower length
and extent of time when fair value of financial assets is less than amortised cost other market information related to the
borrower (including price changes in borrower's debt instruments or equity instruments);
(iv) An actual or expected significant change in the financial instrument's external credit rating;
(v) An actual or expected downgrade in the internal credit rating for the debtor;
(vi) Adverse changes in business financial or economic conditions that are expected to cause a significant decrease in the
debtor's ability to meet its debt obligations;
(vii) An actual or expected significant change in the operating results of the debtor;
(viii) Significant increase in the credit risk of other financial instruments issued by the same debtor;
(ix) Significant adverse changes in regulatory economic or technological environment of the debtor;
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(x) Significant changes in the value of collaterals or the quality of guarantees or credit enhancements provided by third parties
which are expected to reduce the debtor's economic motives to repay within the time limit specified in contract or affect the
probability of default;
(xi) Significant change in the debtor's economic motives to repay within the time limit specified in contract;
(xii) Expected changes to loan contract including the exemption or revision of contractual obligations the granting of
interest-free periods the jump in interest rates the requirement for additional collateral or guarantees or other changes in the
contractual framework for financial instruments that may result from the breach of contract;
(xiii) Significant changes in expected performance and repayment of the debtor;
(xiv) Changes in the Group's credit management approach in relation to the financial instrument;
Irrespective of the outcome of the above assessment the Group presumes that the credit risk has increased significantly when
contractual payments are more than 30 days (inclusive) past due.
(6) Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash
flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following
observable information:
(i) Significant financial difficulty of the issuer or debtor;
(ii) Breach of contract by the debtor such as a default or delinquency in interest or principal payments;
(iii) The creditor(s) of the debtor for economic or contractual reasons relating to the debtor's financial difficulty having
granted to the debtor a concession(s) that the creditor(s) would not otherwise consider;
(iv) It is becoming probable that the debtor will enter bankruptcy or other financial reorganisation;
(v) The disappearance of an active market for that financial asset because of financial difficulties of the issuer or debtor;
Based on the Group's internal credit risk management the Group considers an event of default occurs when information
developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors including the
Group in full (without taking into account any collaterals held by the Group).Irrespective of the outcome of the above assessment the Group presumes that an event of default on the financial instrument
has occurred if the contractual payment of the financial instrument has been more than 90 days (inclusive) past due.
(7) Determination of ECL
The Group determines the ECL of relevant financial instruments using the following methods:
(i) For financial assets and lease receivables the credit loss represents the present value of the difference between the
contractual cash flows receivable by the Group and the cash flows expected to be received by the Group;
(ii) For a financial guarantee contract (refer to Section VIII Note V 10. Financial Instruments (14) Financial Guarantee
Contracts for specific accounting policies) credit loss is the present value of difference between the expected payments to
reimburse the holder for a credit loss that it incurs less any amounts that the Group expects to receive from the holder the
debtor or any other party.
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The Group's measurement of ECL of financial instruments reflects factors including unbiased probability weighted average
amount recognised by assessing a series of possible results time value of money reasonable and supportable information
related to historical events current condition and forecast of future economic position that is available without undue cost or
effort at the balance sheet date.
(8) Write-down of financial assets
The Group shall directly reduce the gross carrying amount of a financial asset when the Group has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof. A write-off constitutes a derecognition event.
(9) Transfer of financial assets
The Group derecognises a financial asset if one of the following conditions is satisfied: (i) the contractual rights to the cash
flows from the financial asset expire; or (ii) the financial asset has been transferred and substantially all the risks and rewards
of ownership of the financial asset is transferred to the transferee; or (iii) although the financial asset has been transferred the
Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not
retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset and it retains
control of the financial asset it recognises the financial asset to the extent of its continuing involvement in the transferred
financial asset and recognises an associated liability. Relevant liabilities are measured using the following methods:
(i) For transferred financial assets carried at amortised cost the carrying amount of relevant liabilities is the carrying amount
of financial assets transferred with continuing involvement less amortised cost of the Group's retained rights (if the Group
retains relevant rights upon transfer of financial assets) with addition of amortised cost of obligations assumed by the Group
(if the Group assumes relevant obligations upon transfer of financial assets). Relevant liabilities are not designated as
financial liabilities at FVTPL.(ii) For transferred financial assets carried at fair value the carrying amount of relevant financial liabilities is the carrying
amount of financial assets transferred with continuing involvement less fair value of the Group's retained rights (if the Group
retains relevant rights upon transfer of financial assets) with addition of fair value of obligations assumed by the Group (if the
Group assumes relevant obligations upon transfer of financial assets). Accordingly the fair value of relevant rights and
obligations shall be measured on an individual basis.For a transfer of a financial asset in its entirety that satisfies the derecognition criteria the difference between (1) the carrying
amount of the financial asset transferred at the derecognition date; and (2) the sum of the consideration received from the
transfer and any cumulative gain or loss on changes in fair value that has been recognised in other comprehensive income is
recognised in profit or loss. Where the transferred assets are non-held-for-trading equity instrument investments designated as
at FVTOCI cumulative gains or losses previously recognised in other comprehensive income are transferred out and included
in retained earnings.If part of the transferred financial asset qualifies for derecognition the overall carrying amount of the financial asset prior to
transfer is allocated between the part that continues to be recognised and the part that is derecognised based on the respective
fair value of those parts at the date of transfer. The difference between (1) the carrying amount allocated to the part
derecognised on the date of derecognition; and (2) the sum of the consideration received for the part derecognised and any
cumulative gain or loss allocated to the part derecognised which has been previously recognised in other comprehensive
1752025 Annual Report of DR Corporation Limited
income is recognised in profit or loss. Where the transferred assets are non-held-for-trading equity instrument investments
designated as at FVTOCI cumulative gains or losses previously recognised in other comprehensive income are transferred
out and included in retained earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the Group continues to
recognise the transferred financial asset in its entirety and includes the consideration received in liability.
(10) Classification of financial liabilities and equity instruments
Financial instruments issued by the Group or their components are classified into financial liabilities or equity instruments on
the basis of not only the legal form but also the contractual terms and their economic substance together with the definition
of financial liability and equity instrument.
(11) Classification recognition and measurement of financial liabilities
On initial recognition financial liabilities are classified into financial liabilities at fair value through profit or loss and other
financial liabilities.
(12) Financial liabilities at FVTPL
Financial liabilities at FVTPL include held-for-trading financial liabilities (including derivative financial liabilities) and
financial liabilities designated as at FVTPL. Except for derivative financial liabilities which are presented separately
financial liabilities at FVTPL are presented as held-for-trading financial liabilities.A financial liability is classified as held-for-trading if any of the following criteria is satisfied:
(i) It has been incurred principally for the purpose of repurchasing it in the near term.(ii) On initial recognition it is part of a portfolio of identifiable financial instruments that the Group manages together and
there is objective evidence that the Group has a recent actual pattern of short-term profit-taking.(iii) It is a derivative that is neither a financial guarantee contract nor designated as an effective hedging instrument.A financial liability may be designated as at FVTPL upon initial recognition if: (i) such designation eliminates or significantly
reduces accounting mismatch; (ii) the Group makes management and performance evaluation on a fair value basis for a
portfolio of financial liabilities or a portfolio of financial assets and financial liabilities in accordance with the Group's
formally documented risk management or investment strategy and reports to key management personnel on that basis; (iii)
the qualified hybrid contract that contains embedded derivatives.Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses arising from changes in the
fair value and any dividend or interest expenses paid on the financial liabilities are recognised in profit or loss for the period.For a financial liability designated as at FVTPL the amount of changes in the fair value of the financial liability that are
attributable to changes in the credit risk of that liability shall be presented in other comprehensive income while other
changes in fair values are included in profit or loss for the current period. Upon the derecognition of such financial liability
the accumulated amount of changes in fair value that are attributable to changes in the credit risk of that liability which was
1762025 Annual Report of DR Corporation Limited
recognised in other comprehensive income is transferred to retained earnings. Any dividend or interest expense on the
financial liabilities is recognised in profit or loss. If the accounting treatment for the impact of the change in credit risk of
such financial liability in the above ways would create or enlarge an accounting mismatch in profit or loss the Group shall
present all gains or losses on that liability (including the effects of changes in the credit risk of that liability) in profit or loss
for the period.
(13) Other financial liabilities
Except for financial liabilities and financial guarantee contracts arising from transfer of financial assets that do not meet the
derecognition criteria or those arising from continuing involvement in the transferred financial assets other financial
liabilities are subsequently measured at amortised cost with gain or loss arising from derecognition or amortisation
recognised in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not result in derecognition of a
financial liability subsequently measured at amortised cost but the changes in contractual cash flows the Group will
recalculate the carrying amount of the financial liability with relevant gain or loss recognised in profit or loss. The Group
will determine the carrying amount of the financial liability based on the present value of renegotiated or modified contractual
cash flows discounted at the original effective interest rate of the financial liability. For all costs or expenses arising from
modification or renegotiation of the contract the Group will adjust the modified carrying amount of the financial liability and
make amortisation during the remaining term of the modified financial liability.
(14) Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder of the
contract for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or
modified terms of a debt instrument. Subsequent to initial recognition financial guarantee contracts that are not designated as
financial liabilities at fair value through profit or loss or financial liabilities arising from transfer of financial assets that do not
meet the derecognition criteria or those arising from continuing involvement in the transferred financial assets are measured
at the higher of: (1) amount of loss allowance; and (2) the amount initially recognised less cumulative amortisation amount
determined based on the revenue standard.
(15) Derecognition of financial liabilities
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is
discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial
liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original
financial liability and the recognition of a new financial liability.When the Group derecognises a financial liability or a part of it it recognises the difference between the carrying amount of
the financial liability (or part of the financial liability) derecognised and the consideration paid (including any non-cash assets
transferred or new financial liabilities assumed) in profit or loss for the period.
(16) Equity instruments
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An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its
liabilities. Equity instruments issued (including refinanced) repurchased sold and cancelled by the Group are recognised as
changes of equity. Change of fair value of equity instruments is not recognised by the Group. Transaction costs related to
equity transactions are deducted from equity.The Group treats allocations to equity instrument holders as profit distribution and the distributed dividends do not affect the
total amount of shareholders' equity.
(17) Offsetting financial assets and financial liabilities
When the Group has a legal right that is currently enforceable to set off the recognised financial assets and financial liabilities
and intends either to settle on a net basis or to realise the financial assets and settle the financial liabilities simultaneously the
financial assets and financial liabilities are offset with the net amount presented in the balance sheet. Except for the above
circumstances financial assets and financial liabilities shall be presented separately in the balance sheet without offsetting.The Company is required to comply with the disclosure requirements for "Jewelry-related business" stipulated in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
11. Accounts receivable
(1) Determination method of and accounting treatment for allowances for bad debts of accounts receivable
The Group makes individual provisions for doubtful accounts on accounts receivable with significantly increased credit risk
and collectively provisions for the remaining accounts receivable based on credit risk characteristics. Increases or reversals of
allowance for doubtful accounts are recognized in profit or loss as credit impairment losses or gains.
(2) Portfolios for which allowances for bad debts are collectively assessed based on credit risk characteristics and their basis
Except for accounts receivable for which allowances for bad debts are individually assessed the Group classifies accounts
receivable into two portfolios including receivables from POS terminals and e-commerce platforms and receivables from
shopping malls based on common risk characteristics. The common credit risk characteristics include: types of the debtor
remaining contractual term industry of the debtor geographical location of the debtor etc.Category Basis for determination
Portfolio I: Receivables from POS machines Receipt of payment is typically within a short period with minimal
and e-commerce platforms credit risk; therefore no bad debt provision is made.Portfolio II: Receivables from shopping malls Bad debt provisions are established based on probability of defaultloss given default exposure at default and forward-looking factors.
(3) Basis of allowances for bad debts made on an individual basis
Where there is evidence indicating that amounts due from customers have been impaired the customers have significant
financial difficulties and the Group is unable to recover such amounts in the foreseeable future the Group makes allowances
for bad debts of the accounts receivable on an individual basis.
1782025 Annual Report of DR Corporation Limited
12. Other receivables
(1) Determination method of and accounting treatment for allowances for bad debts of other receivables
The Group makes allowances for bad debts of other receivables with a significant increase in credit risk on an individual basis
and recognises credit loss on other receivables on a portfolio basis using the impairment matrix. The increase or reversal
amount of allowances for bad debts of other receivables is included in profit or loss for the period as credit impairment loss or
gain.
(2) Portfolios for which allowances for bad debts are collectively assessed based on credit risk characteristics and their basis
Except for accounts receivable for which allowances for bad debts are individually assessed the Group classifies other
receivables into different portfolios based on common risk characteristics. The common credit risk characteristics include:
nature of the debts remaining contractual term industry of the debtor category of the debtor nature of the receivables etc.Category Basis for determination
Portfolio I Receivables from intra-group transactions dividends receivable andinterest receivable
Portfolio II Other portfolios of receivables with insignificant credit risk
(3) Basis of allowances for bad debts made on an individual basis
Where there is evidence indicating that other receivables have been impaired the customers have significant financial
difficulties and the Group is unable to recover such amounts in the foreseeable future the Group makes allowances for bad
debts of these other receivables on an individual basis.
13. Inventories
The Company is required to comply with the disclosure requirements for "Jewelry-related business" stipulated in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
(1)Categories of inventories valuation method of inventories delivered inventory count system amortisation method for
low-value consumables and packaging materials
* Categories of inventories
The Group's inventories mainly include raw materials semi-finished goods goods on hand reusable materials goods
delivered and materials on consignment for further processing etc. Inventories are initially measured at cost. Cost of
inventories comprises all costs of purchase costs of conversion and other expenditures incurred in bringing the inventories to
their present location and condition.* Valuation method of inventories delivered
The actual cost of inventories upon delivery is calculated using the specific identification method.* Inventory count system
1792025 Annual Report of DR Corporation Limited
The perpetual inventory system is maintained for stock system.* Amortisation method of low-value consumables and packaging materials
Packaging materials and low-value consumables are amortised using the immediate write-off method.Other reusable materials are amortised using the immediate write-off method.
(2)Recognition criteria and methods for determining the provision for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realisable value. If the net realisable value is
below the cost of inventories provision for decline in value of inventories is made.Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion the
estimated costs necessary to make the sale and relevant taxes. Net realisable value is determined on the basis of clear
evidence obtained and takes into consideration the purposes of holding inventories and effect of events subsequent to the
balance sheet date.The provision for decline in value of inventories shall be provided by the difference between the cost of the individual
inventory (or a type of inventories) and its net realised value.After the provision for decline in value of inventories is made if the circumstances that previously caused inventories to be
written down below cost no longer exist so that the net realisable value of inventories is higher than their carrying amount the
original provision for decline in value is reversed and the reversal is included in profit or loss for the period.The Company is required to comply with the disclosure requirements for "Retail business" stipulated in the Self-Regulatory
Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
14. Held-for-sale assets
(1) Recognition criteria and accounting treatment of non-current assets or disposal groups classified as held-for-sale
Non-current assets and disposal groups are classified as held for sale category when the Group recovers the carrying amount
through a sale (including an exchange of non-monetary assets that has commercial substance) rather than continuing use.Non-current assets or disposal groups classified as held-for-sale are required to satisfy the following conditions: (1) the asset
or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary
for sales of such asset or disposal group; (2) the sale is highly probable i.e. the Group has made a resolution about selling
plan and obtained a confirmed purchase commitment and the sale is expected to be completed within one year.When there is loss of control over a subsidiary due to disposal of investments in the subsidiary and the proposed disposal of
investment in the subsidiary satisfies classification criteria of held-for-sale category the investments in subsidiaries are
classified as held-for-sale category as a whole in the company's separate financial statement and all assets and liabilities of
1802025 Annual Report of DR Corporation Limited
subsidiaries are classified as held-for-sale category in the consolidated financial statements regardless that part of the equity
investments are remained after the sale.The Group measures the non-current assets or disposal groups classified as held for sale at the lower of the carrying amount
and net amount of fair value less costs to sell. Where the carrying amount is higher than the net amount of fair value less costs
to sell the carrying amount should be reduced to the net amount of fair value less costs to sell and such reduction is
recognised as impairment loss of assets and included in profit or loss for the period. Meanwhile provision for impairment of
held-for-sale assets is made. When there is an increase in the net amount of fair value of non-current assets held for sale less
costs to sell at the balance sheet date the original deduction should be reversed in impairment losses of assets recognised
after the classification of held-for-sale category and the reversal amount is included in profit or loss for the period.Impairment losses of assets recognised before they are classified as held for sale will not be reversed.Non-current assets classified as held-for-sale or disposal groups are not depreciated or amortised interest and other costs of
liabilities of disposal group classified as held for sale continue to be recognised.All or part of equity investments in an associate or joint venture are classified as held-for-sale assets. For the part that is
classified as held-for-sale it is no longer accounted for using the equity method since the date of the classification.
(2) Determination basis and presentation method of discontinued operations
A discontinued operation is a component of an entity that can be clearly distinguished and satisfies one of the following
conditions and such component has been disposed of or is classified as held for sale:
(i) Such component represents a separate major line of business or geographical area of operations;
(ii) Such component is part of the separate major line of business or geographical area of operations to be disposed of based
on the associated plan;
(iii) Such component is a subsidiary acquired exclusively for the purpose of resale.The profit or loss from discontinued operations are listed separately from the profit or loss from continued operations in the
income statement and the operating profit or loss such as impairment loss and reversal amount from discontinued operations
and disposal profit or loss are presented as profit or loss from discontinued operations. For profit or loss from discontinued
operations presented for the current period the Group restated the information originally presented as profit or loss from
continued operations as the profit or loss from discontinued operations in comparable accounting periods in the financial
statements for the period.
15. Debt investments
Refer to relevant policies on financial instruments for the determination method of and accounting treatment for ECL of debt
investments.
16. Long-term equity investments
(1) Determination criteria of joint control and significant influence
1812025 Annual Report of DR Corporation Limited
Control is the power over the investee exposures or rights to variable returns from its involvement with the investee and the
ability to use its power over the investee to affect the amount of the investor's returns. Joint control is the contractually agreed
sharing of control over an economic activity and exists only when the strategic financial and operating policy decisions
relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.When determining whether an investing enterprise is able to exercise control or significant influence over an investee the
effect of potential voting rights of the investee (for example warrants and convertible debts) held by the investing enterprises
or other parties that are currently exercisable or convertible shall be considered.
(2) Determination of initial investment cost
For a long-term equity investment acquired through business combination involving enterprises under common control
shares of book value of owners' equity of combined party in financial statements of ultimate controlling party is recognised as
initial investment cost of long-term equity investment at the date of combination. The difference between initial investment
cost of long-term equity investment and cash paid non-cash assets transferred and book value of liabilities assumed is
adjusted in capital reserve. If the balance of capital reserve is not sufficient to absorb the difference any excess is adjusted to
retained earnings. If the consideration of the combination is satisfied by the issue of equity securities the initial investment
cost of the long-term equity investment is the share of book value of owners' equity of the acquired entity in the ultimate
controlling party's consolidated financial statements at the date of combination. The aggregate face value of the shares issued
is accounted for as share capital. The difference between the initial investment cost and the aggregate face value of the shares
issued is adjusted to capital reserve. If the balance of capital reserve is not sufficient to absorb the difference any excess is
adjusted to retained earnings.For a long-term equity investment acquired through business combination not involving enterprises under common control
the initial investment cost of the long-term equity investment is the cost of acquisition at the date of combination. Where
equity interests in an acquiree are acquired in stages through multiple transactions ultimately constituting a business
combination not involving entities under common control the acquirer determines if these transactions are considered to be
"a package deal". If yes these transactions are accounted for as a single transaction where control is obtained. If no the initial
investment cost of the long-term equity investment is the aggregate of the carrying amount of the equity interest held in the
acquiree prior to the acquisition date and the cost of the additional investment at the acquisition date. When the equity held
was accounted for under equity method relevant other comprehensive income is not accounted temporarily; when the equity
held was accounted for investments in other equity instruments the difference between the fair value and carrying amount
together with the cumulative changes in fair value recognised in other comprehensive income are included in retained
earnings for the current period.The intermediary expenses incurred by the combining party or acquirer in respect of auditing legal services valuation and
consultancy services etc. and other associated administrative expenses attributable to the business combination are
recognised in profit or loss when they are incurred.Long-term equity investment acquired otherwise than through a business combination is initially measured at its cost. When
the entity is able to exercise significant influence or joint control (but not control) over an investee due to additional
investment the cost of long-term equity investments is the sum of the fair value of previously-held equity investments
determined in accordance with the Accounting Standard for Business Enterprises No. 22 - Financial Instruments: Recognition
and Measurement (ASBE No. 22) and the additional investment cost.
1822025 Annual Report of DR Corporation Limited
(3) Subsequent measurement and recognition of profit or loss
(i) Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial
statements. A subsidiary is an investee that is controlled by the Group.Under the cost method a long-term equity investment is measured at initial investment cost. When additional investment is
made or the investment is recouped the cost of the long-term equity investment is adjusted accordingly. Investment income is
recognised in the period in accordance with the attributable share of cash dividends or profit distributions declared by the
investee.(ii) Long-term equity investments accounted for using the equity method
Except for those classified as held-for-sale assets the Group accounts for the investments in associates and joint ventures
using the equity method. An associate is an entity over which the Group has significant influence; a joint venture is a joint
arrangement whereby the Group has rights to the net assets of the arrangement.Under the equity method where the initial investment cost of a long-term equity investment exceeds the Group's share of the
fair value of the investee's identifiable net assets at the time of acquisition no adjustment is made to the initial investment
cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at
the time of acquisition the difference is recognised in profit or loss for the period and the cost of the long-term equity
investment is adjusted accordingly.Under the equity method the Group recognises its share of the net profit or loss and other comprehensive income made by
the investee as investment income and other comprehensive income respectively and adjusts the carrying amount of the long-
term equity investment accordingly; the carrying amount of the investment is reduced by the portion of any profit
distributions or cash dividends declared by the investee that is distributed to the Group; Other changes in owners' equity of
the investee other than net profit or loss and other comprehensive income are adjusted accordingly to the carrying amount of
the long-term equity investment and recognised in the capital reserve. The Group recognises its share of the investee’s net
profit or loss based on the fair value of the investee’s individual identifiable assets etc. at the acquisition date after making
appropriate adjustments. When the investors’ accounting policies and accounting period are inconsistent with those of the
Company the Company recognises investment income and other comprehensive income after making appropriate
adjustments to conform to the Company's accounting policies and accounting period. For the Group's transactions with its
associates and joint ventures where assets contributed or sold do not constitute a business unrealised intra-group profits or
losses are recognised as investment income or loss to the extent that those attributable to the Group's proportionate share of
interest are eliminated. However unrealised losses resulting from the Group's transactions with its investee which represent
impairment losses on the transferred assets are not eliminated.The Group discontinues recognising its share of net loss of the investee after the carrying amount of the long-term equity
investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to
zero. If the Group has incurred obligations to assume additional losses of the investee a provision is recognised according to
the expected obligation and recorded as investment loss for the period. Where net profits are subsequently made by the
1832025 Annual Report of DR Corporation Limited
investee the Group resumes recognising its share of those profits only after its share of the profits exceeds the share of losses
previously not recognised.
(4) Disposal of long-term equity investments
On disposal of a long-term equity investment the difference between the proceeds actually received and receivable and the
carrying amount is recognised in profit or loss for the period. For a long-term equity investment accounted for using the
equity method if remaining shares after the disposal are still accounted for using the equity method other comprehensive
income is accounted on the basis of directly disposed related assets and liabilities of investee and profit or loss is carried
forward proportionately; Other owners' equity recognised from changes of owners' equity except for net profit or loss other
comprehensive income and profit distribution is recognised in profit or loss of current period and carried forward
proportionately. For a long-term equity investment accounted for using the cost method if remaining shares after the disposal
are still accounted for using the cost method other comprehensive income recognised before controlling the investee
according to equity method or recognition and measurement of financial instruments accounted for on the basis of directly
disposed related assets and liabilities of the investee and recognised in profit or loss for the period and carried forward
proportionately.
17. Fixed assets
(1) Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to others or
for administrative purposes and have useful lives of more than one accounting year. A fixed asset is recognised only when it
is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured
reliably. Fixed assets are initially measured at cost.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it is probable that economic
benefits associated with the asset will flow to the Group and the cost can be measured reliably. Meanwhile the carrying
amount of the replaced part is derecognised. Other subsequent expenditures are recognised in profit or loss for the period in
which they are incurred.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation period Residual value rate
rate
Transportation
Straight-line method 4 years 5.00% 23.75%
equipment
Office equipment and
Straight-line method 3-5 years 5.00% 19.00%-31.67%
others
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal of
the asset after deducting the estimated costs of disposal if the asset was already of the age and in the condition expected at
the end of its useful life.Other explanations:
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If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal the fixed
asset is derecognised. When a fixed asset is sold transferred retired or damaged the amount of any proceeds on disposal of
the asset net of the carrying amount and related taxes is recognised in profit or loss for the period.The Group reviews the useful life and the estimated net residual value of a fixed asset and the depreciation method applied at
least once at each financial year-end and accounts for any change as a change in an accounting estimate.
18. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during the
construction period borrowing costs capitalised before it is ready for intended use and other relevant costs. Construction in
progress is not depreciated.Construction in progress is transferred to a fixed asset when it is ready for intended use. The criteria and time points for the
transfer of various types of construction in progress to fixed assets are as follows:
Category Criteria of transfer to fixed assets Time point of transfer to fixed assets
The earlier of actual commencement of
Buildings Ready for intended use
use/completion and acceptance
19. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying asset are capitalised when
expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition construction or
production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalisation of
borrowing costs ceases when the qualifying asset being acquired constructed or produced becomes ready for its intended use
or sale. Capitalisation of borrowing costs is suspended during periods in which the acquisition construction or production of
a qualifying asset is suspended abnormally and when the suspension is for a continuous period of more than 3 months.Capitalisation is suspended until the acquisition construction or production of the asset is resumed. Other borrowing costs are
recognised as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be capitalised is the actual interest
expenses incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before
being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed
under general-purpose borrowings the Group determines the amount of interest to be capitalised on such borrowings by
applying a capitalisation rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts
of specific-purpose borrowings. The capitalisation rate is the weighted average of the interest rates applicable to the general-
purpose borrowings. During the capitalisation period exchange differences related to a specific-purpose borrowing
denominated in foreign currency are all capitalised. Exchange differences in connection with general-purpose borrowings are
recognised in profit or loss for the period in which they are incurred.
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20. Intangible assets
(1) Useful life and its determination basis estimation amortisation method or review procedures
Intangible assets include land use right trademarks and software etc.An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use its
original cost less net residual value and any accumulated impairment losses is amortised over its estimated useful life using
the straight-line method. An intangible asset with an indefinite useful life is not amortised. Amortisation method useful life
and residual value rate of all intangible assets are as follows:
Determination basis Residual value rate
Category Amortisation method Useful life (Years)
for useful life (%)
Land use rights Straight-line method 30 Term of land use rights -
Validity period of
Trademarks Straight-line method 5 -
registration
As agreed in the
Software Straight-line method 1-5 -
contract
For intangible assets with finite useful life the Group reviews the useful life and amortisation method at the end of the period
and makes adjustments when necessary.
(2) Scope and related accounting treatment of research and development expenditure
Expenditure during the research phase is recognised in profit or loss for the period in which they are incurred.Expenditure during the development phase that meets all of the following conditions at the same time is recognised as an
intangible asset. Expenditure during development phase that does not meet the following conditions is recognised in profit or
loss for the period.(i) it is technically feasible to complete the intangible asset so that it will be available for use or sale;
(ii) the Group has the intention to complete the intangible asset and use or sell it;
(iii) the Group can demonstrate the ways in which the intangible asset will generate economic benefits including the
evidence of the existence of a market for the output of the intangible asset or the intangible asset itself or if it is to be used
internally the usefulness of the intangible asset;
(iv) the availability of adequate technical financial and other resources to complete the development and the ability to use or
sell the intangible asset; and
(v) the expenditure attributable to the intangible asset during its development phase can be reliably measured.If the expenditures cannot be distinguished between the research phase and development phase the Group recognises all of
them in profit or loss for the period. The cost of intangible assets generated in internal development activities only includes
the total amount of expenditures from the time point when the capitalisation conditions are met to the time when the
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intangible assets reach the intended uses. For the same intangible asset the expenditures that have been expensed into profit
or loss before the capitalisation conditions are met in the development process will not be adjusted.
21. Impairment of long-term assets
The Group reviews the long-term equity investments fixed assets construction in progress right-of-use assets and intangible
assets with a finite useful life at each balance sheet date to determine whether there is any indication that they have suffered
an impairment loss. If there is any indication that such assets may be impaired recoverable amounts are estimated for such
assets. Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment
annually irrespective of whether there is any indication that the assets may be impaired.Recoverable amount is estimated on an individual asset basis. If it is not practical to estimate the recoverable amount of an
individual asset the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable
amount of an asset or asset group is the higher of its fair value less costs of disposal and the present value of the future cash
flows expected to be derived from the asset or asset group.If such recoverable amount is less than its carrying amount a provision for impairment losses in respect of the deficit is
recognised in profit or loss for the period.Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment testing goodwill is
considered together with the related asset groups or sets of asset groups i.e. goodwill is reasonably allocated to the related
asset group or set of asset groups expected to benefit from the synergies of the combination. An impairment loss is recognised
if the recoverable amount of the asset group or set of asset groups (including goodwill) is less than its carrying amount. The
impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such asset group or set of asset
groups and then to the other assets (other than goodwill) of the asset group or set of asset groups pro-rata on the basis of the
carrying amount of each asset (other than goodwill) in the asset group or set of asset groups.Once an impairment loss of the above-mentioned assets is recognised it will not be reversed in any subsequent period.
22. Long-term prepaid expenses
Long-term prepaid expenses represent expenses that occurred but shall be amortised over one year mainly including
expenditures on renovation of leasehold assets. Long-term prepaid expenses are amortised evenly over the expected
beneficial period of 1 to 5 years.
23. Contract liabilities
Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for consideration received or
receivable from the customer. Contract assets and contract liabilities under the same contract are presented at net amount.
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24. Employee benefits
(1) Accounting treatment of short-term employee benefits
In an accounting period in which an employee has rendered services to the Group the Group recognises the short-term
employee benefits for that service as a liability and the related expenditures are charged to profit or loss for the period or in
costs of relevant assets. Employee welfare incurred by the Group is recognised in profit or loss for the period or the costs of
relevant assets based on the actual amount when incurred. Non-monetary employee welfare is measured at fair value.Payment made by the Group of social security contributions for employees such as premiums or contributions on medical
insurance work injury insurance and maternity insurance etc. and payments of housing funds as well as union running costs
and employee education costs provided in accordance with relevant requirements are calculated according to prescribed
bases and percentages in determining the amount of employee benefits and recognised as relevant liabilities with a
corresponding charge to the profit or loss for the period or the costs of relevant assets in the accounting period in which
employees provide services.
(2) Accounting treatment of post-employment benefits
Post-employment benefits are all defined contribution plans.In an accounting period in which an employee has rendered service to the Group the amount payable calculated in
accordance with the defined contribution plan is recognised as a liability by the Group and charged to profit or loss for the
period or included in cost of related assets.
(3) Accounting treatment of termination benefits
A liability for a termination benefit is recognised in profit or loss for the period at the earlier of when the Group cannot
unilaterally withdraw from the termination plan or the redundancy offer and when the Group recognises any related
restructuring costs or expenses.
25. Provisions
Provisions are recognised when the Group has a present obligation related to a contingency such as products quality
assurance onerous contract and restructuring it is probable that an outflow of economic benefits will be required to settle
the obligation and the amount of the obligation can be measured reliably The amount recognised as a provision is the best
estimate of the consideration required to settle the present obligation at the balance sheet date taking into account factors
pertaining to a contingency such as the risks uncertainties and time value of money. Where the effect of the time value of
money is material the amount of the provision is determined by discounting the related future cash outflows.
26. Share-based payments
A share-based payment is a transaction in which the Group grants equity instruments or incurs liabilities for amounts that
are determined based on the price of equity instruments in return for services rendered by employees. The Group's share-
based payments include equity-settled share-based payments.
(1) Equity-settled share-based payments
1882025 Annual Report of DR Corporation Limited
Equity-settled share-based payments granted to employees
Equity-settled share-based payments in exchange for services rendered by employees are measured at the fair value of the
equity instruments granted to employees at the grant date. Such amount is recognised as related costs or expenses on a
straight-line basis over the vesting period based on the best estimate of the number of equity instruments expected to vest
with a corresponding increase in capital reserve.At each balance sheet date during the vesting period the Group makes the best estimate according to the subsequent latest
information of change in the number of employees who are granted with options that may vest etc. and revises the number of
equity instruments expected to vest. The effect of the above estimate is recognised as related costs or expenses with a
corresponding adjustment to capital reserve.
(2) Accounting treatment related to implementation modification and termination of share-based payment arrangement
In case the Group modifies a share-based payment arrangement if the modification increases the fair value of the equity
instruments granted the Group will include the incremental fair value of the equity instruments granted in the measurement
of the amount recognised for services received. If the modification increases the number of the equity instruments granted
the Group will include the fair value of additional equity instruments granted in the measurement of the amount recognised
for services received. The increase in the fair value of the equity instruments granted is the difference between fair value of
the equity instruments before and after the modification on the date of the modification. If the Group modifies the terms or
conditions of the share-based payment arrangement in a manner that reduces the total fair value of the share-based payment
arrangement or is not otherwise beneficial to the employee the Group will continue to account for the services received as if
that modification had not occurred (other than a cancellation of some or all the equity instruments granted).If cancellation of the equity instruments granted occurs during the vesting period the Group will account for the cancellation
of the equity instruments granted as an acceleration of vesting and recognise immediately the amount that otherwise would
have been recognised over the remainder of the vesting period in profit or loss for the period with a corresponding
recognition in capital reserve. When the employee or counterparty can choose whether to meet the non-vesting condition but
the condition is not met during the vesting period the Group treats it as a cancellation of the equity instruments granted.
27. Revenue
Accounting policies for revenue recognition and measurement disclosed by business types
The Group recognises revenue based on the transaction price allocated to the performance obligation when the Group
satisfies a performance obligation in the contract namely when the customer obtains control over relevant goods or services.A performance obligation is a commitment that the Group transfers distinct goods or services to a customer in the contract.The Group assesses a contract at contract inception identifies each separate performance obligation included in the contract
and determines whether the Group satisfies the performance obligation over time or at a point in time. It is a performance
obligation satisfied over time and the Group recognises revenue over time according to the progress of performance if one of
the following conditions is met: (i) the customer obtains and consumes economic benefits at the same time of the Group's
performance; (ii) the customer is able to control goods or services in progress during the Group's performance; (iii) goods or
services generated during the Group's performance have irreplaceable utilisation and the Group is entitled to collect amounts
1892025 Annual Report of DR Corporation Limited
of cumulative performance part which have been done up to now. Otherwise revenue is recognised at a point in time when
the customer obtains control over the relevant goods or services.The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring
promised goods or services to a customer excluding amounts collected on behalf of third parties and amounts expected to be
refunded to a customer. In determining the transaction price the Group considers such factors as variable consideration
significant financing components in the contract non-cash consideration and consideration payable to customers.If there are two or more of performance obligations included in the contract at the contract inception the Group allocates the
transaction price to each separate performance obligation based on the proportion of stand-alone selling price of goods or
services promised in separate performance obligation. However if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not all) performance obligations in the contract the
Group will allocate the contract discount or variable consideration to relative one or more performance obligations. Stand-
alone selling price refers to the price of a single sale of goods or services. If the stand-alone selling price cannot be observed
directly the Group estimates the stand-alone selling price through comprehensive consideration of all relative information
that can be reasonably acquired and maximum use of observable inputs.In case of the existence of variable consideration in the contract the Group determines the best estimate of the variable
consideration based on the expected value or most probable amount. The transaction price that includes variable
consideration does not exceed the amount for which it is highly probable that there will be no significant reversal of the
revenue recognised in the aggregate when the related uncertainty is eliminated. At each balance sheet date the Group re-
estimates the amount of variable consideration to be included in the transaction price.For sales that are affixed with terms of sales return as the customer obtains control of related goods the Group recognises
revenue based on the consideration (excluding expected refund amounts due to sales returns) that the Group is expected to
charge due to the transfer of goods to the customer and recognises liabilities based on the expected refund amounts due to
sales returns. Meanwhile the carrying amount at the time of transfer of goods expected to be returned subsequent to
deduction of expected costs from collecting the goods (including the decrease in value of the returned goods) is recognised as
an asset and carried forward to cost at the carrying amount at which goods are transferred net of the cost of asset.For sales with quality assurance terms if the quality assurance provides a separate service to the customer other than ensuring
that the goods or services sold meet the established standards the quality assurance constitutes a separate performance
obligation. Otherwise the Group will account for the quality assurance responsibility in accordance with the Accounting
Standards for Business Enterprises No. 13 - Contingencies.The additional purchase options of customers include sale incentive measures award credits for customers and etc. The
Group regards the additional purchase option which provides significant right to the customer as a separate performance
obligation and recognises revenue when the customer exercises the purchase option to acquire the control over relevant
goods or services in the future or when the option loses effect. Where the stand-alone selling price of the additional purchase
option of customers cannot be observed directly the Group makes an estimate considering all the relevant information
including the difference in discount when the customer exercises or does not exercise the option and the possibility of the
customer to exercise the option.
1902025 Annual Report of DR Corporation Limited
The Group assesses whether it controls each specified good or service before that good or service is transferred to the
customer to determine whether the Group is a principal or an agent at the time of the transaction. If the Group controls the
specified good or service before that good or service is transferred to a customer the Group is a principal and recognises
revenue in the gross amount of consideration received or receivable. Otherwise the Group is an agent and recognises revenue
in the amount of any fee or commission to which it expects to be entitled. The fee or commission is the net amount of the
total consideration received or receivable after deducting the prices payable to other related parties.Where the Group receives receipts in advance from a customer for sales of goods or rendering of services the amount is first
recognised as a liability and then transferred to revenue when the related performance obligation has been satisfied. When the
Group's receipts in advance are not required to be refunded and it is probable that the customer will waive all or part of its
contractual rights the Group recognises the said amounts as revenue on a pro-rata basis in accordance with the pattern of
exercise of the customer's contractual rights if the Group expects to be entitled to the amounts relating to the contractual
rights waived by the customer; otherwise the Group reverses the related balance of the said liabilities to revenue only when it
is highly unlikely that the customer will require performance of the remaining performance obligations.The Group's specific revenue recognition methods are as follows:
The principal business of the Group is to retail goods to customers using the self-operated model through off-line direct-
operated stores off-line joint-operated stores and online e-commerce platforms. The Group recognises revenue at the point in
time when the customers sign the receipts on the basis of comprehensive consideration of the following factors: the current
right to receive the goods the transfer of the main risks and rewards of the ownership of the goods the transfer of the legal
ownership of the goods the transfer of the physical assets of the goods and the customer’s acceptance of the goods.The Group determines whether it is a principal or an agent at the time of the transaction based on whether it owns the
"control" of the goods or services before the transfer of such goods or services to the customer. The Group has considered the
legal form of the contract and relevant facts and circumstances (the main responsibility for transferring the goods to the
customer the inventory risk assumed before or after the transfer of the goods whether the Group has the right to determine
the price of the traded goods independently etc.) and believes that the Group undertakes the main responsibility for
transferring the goods to the customer has the right to determine the price of the traded goods independently and assumes he
inventory risk therefore the Group is the principal under the self-operated business model. Revenue is recognised according
to the total amount of consideration received or receivable when the goods is received by the customer.The Group adopts a loyalty points program granting customers with loyalty points upon the sale of the goods which may be
redeemed within 12 months to offset the selling price of goods gifts or vouchers they purchase. On the basis of the relative
proportion between the stand-alone selling price of the good and loyalty points the payment for goods sold is allocated
between the sale of goods and the loyalty points awarded to customers. The portion related to the loyalty points is recognised
as a contract liability before being carried forward to revenue when the loyalty points are redeemed or expired.Different revenue recognition methods and measurement methods involved in different operating models adopted by similar
businesses
The Group has no different revenue recognition methods and measurement methods involved in different operating models
adopted by similar businesses
1912025 Annual Report of DR Corporation Limited
The Company is required to comply with the disclosure requirements for "Retail business" stipulated in the Self-Regulatory
Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.The Company is required to comply with the disclosure requirements for "Jewelry-related business" stipulated in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
28. Contract costs
(1) Costs of obtaining contracts
If the incremental cost (cost that will not occur if no contract obtained) incurred for obtaining the contract is expected to
be recovered the Group recognises it as an asset and the asset shall be amortised on a basis that is consistent with the
revenue recognition of the goods to which the asset relates and recognised in profit or loss for the period. If the
amortisation period of the asset does not exceed one year it is recognised in profit or loss for the period when incurred.Other expenses incurred by the Group for obtaining the contract are recognised in profit or loss for the period when
incurred except for those explicitly assumed by the customer.
(2) Costs to fulfil contracts
If the costs incurred in fulfilling a contract are not within the scope of any standards other than Revenue Standards the
Group recognises an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:
1) the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify; 2) the costs
generate or enhance resources of the Group that will be used in satisfying performance obligations in the future; and 3)
the costs are expected to be recovered. The asset mentioned above shall be amortised on a basis that is consistent with the
revenue recognition of the goods to which the asset relates and recognised in profit or loss for the period.
(3) Impairment losses of assets related to contract costs
In determining the impairment losses of assets related to contract costs the Group first determines the impairment losses of
other assets related to contracts recognised in accordance with other ASBEs; then for assets related to contract costs if the
carrying amount of the assets is higher than the difference between: (1) the remaining consideration that the Group expects to
obtain for the transfer of the goods or services related to the asset; and (2) the estimated costs to be incurred for the transfer of
the related goods or services any excess is provided for impairment and recognised as impairment losses of assets.After the provision for impairment of assets related to contract costs is made if the factors of impairment in previous periods
change so that the difference between the above two is higher than the carrying amount of the asset the original provision for
impairment of the asset is reversed and recognised in profit or loss for the period provided that the carrying amount of the
asset after the reversal does not exceed the carrying amount of the asset at the date of reversal assuming no provision for
impairment was made.
29. Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no
consideration. A government grant is recognised only when the Group can comply with the conditions attaching to the grant
and the Group will receive the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount received or receivable. If a
government grant is in the form of a non-monetary asset it is measured at fair value; If the fair value cannot be reliably
1922025 Annual Report of DR Corporation Limited
determined it is measured at a nominal amount. A government grant measured at a nominal amount is recognised
immediately in profit or loss for the period.
(1) Determination basis and accounting treatment of government grants related to assets
Grants related to forming of long-term assets included in the Group's government grants is classified as a government grant
related to an asset.A government grant related to an asset is recognised as deferred income based on the nature of economic activities and
evenly amortised to profit or loss over the useful life of the related asset with a reasonable and systematic method.
(2) Determination basis and accounting treatment of government grants related to income
Subsidies for rents and job stabilisation included in the Group's government grants are government grants related to income as
no long-term assets will be formed by these grants. The Group classifies government grants that are difficult to be
distinguished as government grants related to income aggregately.For a government grant related to income if the grant is a compensation for related expenses or losses to be incurred in
subsequent periods the grant is recognised as deferred income over the periods in which the related costs or losses are
recognised; If the grant is a compensation for related expenses or losses already incurred the grant is recognised immediately
in profit or loss.A government grant related to the Group's daily activities is recognised in other income based on the nature of economic
activities. A government grant not related to the Group's daily activities is recognised in non-operating income.
30. Deferred tax assets/Deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
(1) Current income tax
At the balance sheet date current tax liabilities (or assets) for the current and prior periods are measured at the amount
expected to be paid (or recovered) according to the requirements of tax laws.
(2) Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base or between the nil
carrying amount of those items that are not recognised as assets or liabilities and their tax base that can be determined
according to tax laws deferred tax assets and liabilities are recognised using the balance sheet liability method.Deferred tax is generally recognised for all temporary differences. Deferred tax assets for deductible temporary differences
are recognised to the extent that it is probable that taxable income will be available against which the deductible temporary
differences can be utilised. However for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the
1932025 Annual Report of DR Corporation Limited
accounting profit nor taxable income (or deductible losses) and does not give rise to equal taxable temporary differences and
deductible temporary differences at the time of transaction no deferred tax asset or liability is recognised.For deductible losses and tax credits that can be carried forward deferred tax assets are recognised to the extent that it is
probable that future taxable income will be available against which the deductible losses and tax credits can be utilised.Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and
associates and interests in joint ventures except where the Group is able to control the timing of the reversal of the
temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax
assets arising from deductible temporary differences associated with such investments and interests are only recognised to the
extent that it is probable that there will be taxable income against which to utilise the benefits of the temporary differences
and they are expected to reverse in the foreseeable future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates according to tax laws that are
expected to apply in the period in which the asset is realised or the liability is settled.Current and deferred tax expenses or income are recognised in profit or loss for the period except when they arise from
transactions or events that are directly recognised in other comprehensive income or in owners' equity in which case they are
recognised in other comprehensive income or in owners' equity; and when they arise from business combinations in which
case they adjust the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that
sufficient taxable income will be available in the future to allow the benefit of deferred tax assets to be utilised. Such
reduction in amount is reversed when it becomes probable that sufficient taxable income will be available.
(3) Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realise the assets and
settle the liabilities simultaneously current tax assets and current tax liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and deferred tax assets and deferred
tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable
entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and liabilities
simultaneously in each future period in which significant amounts of deferred tax assets or liabilities are expected to be
reversed deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
31. Leases
Accounting treatment for leases as the lessee
(1) Separating components of a lease
If the contract contains one or more lease and non-lease components the Group will separate the individual lease and non-
lease components and allocate contract consideration according to the relative proportion of the sum of the stand-alone prices
of the lease components and the stand-alone prices of the non-lease components.
1942025 Annual Report of DR Corporation Limited
(2) Right-of-use assets
Except for short-term leases and leases of low-value assets at the commencement date of the lease the Group recognises a
right-of-use asset. The commencement date of the lease is the date on which a lessor makes an underlying asset available for
use by the Group. The Group measures the right-of-use assets at cost. The cost of the right-of-use assets comprises:
(i) the amount of the initial measurement of the lease liabilities;
(ii) any lease payments made at or before the commencement date less any lease incentives received;
(iii) any initial direct costs incurred by the Group;
(iv) an estimate of costs to be incurred by the Group in dismantling and removing the underlying asset restoring the site on
which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.The Group depreciates right-of-use assets by reference to the relevant depreciation provisions of Accounting Standards for
Business Enterprises No. 4 - Fixed Assets. The right-of-use assets are depreciated over the remaining useful lives of the
leased assets where the Group is reasonably certain to obtain ownership of the underlying assets at the end of the lease term.Otherwise right-of-use assets are depreciated over the shorter of the lease term and the remaining useful lives of the leased
assets.The Group assesses and determines whether the right-of-use asset is impaired and accounts for any impairment loss identified
in accordance with Accounting Standards for Business Enterprises No. 8 - Impairment of Assets.
(3) Lease liabilities
Except for short-term leases and leases of low-value assets the Group initially measures lease liabilities at the present value
of the outstanding lease payments at the commencement date. In calculating the present value of the lease payments the
Group uses the implicit interest rate of the lease as the discount rate. If it is not possible to determine the implicit interest rate
of the lease the incremental borrowing rate shall be applied.Lease payments refer to payments relating to the right to use leased assets during the lease term which are made by the Group
to the lessor including:
(i) fixed payments and in-substance fixed payments less any lease incentives receivable (if any);
(ii) variable lease payments that depend on an index or a rate;
(iii) the exercise price of a purchase option reasonably certain to be exercised by the Group;
(iv) payments of penalties for terminating a lease if the lease term reflects the Group exercising the option to terminate the
lease; and
(v) amounts expected to be paid under residual value guarantees provided by the Group.After the commencement date of the lease the Group calculates interest expenses of lease liabilities for each period of the
lease term based on a fixed periodic rate and recognises such expenses in profit or loss or costs of related assets.
1952025 Annual Report of DR Corporation Limited
After the commencement date of the lease the Group remeasures the lease liabilities and adjusts the right-of-use assets
accordingly in the following cases. If the carrying amount of the right-of-use asset has been reduced to zero but the lease
liability needs to be reduced further the Group will recognise the difference in profit or loss for the period:
(i) there is a change in the lease term or in the assessment of an option to purchase the underlying asset in which case the
related lease liability is remeasured by discounting the revised lease payments using a revised discount rate;
(ii) there is a change in the amounts expected to be payable under a residual value guarantee or in future lease payments
resulting from a change in an index or a rate used to determine those payments the Group re-measures the lease liabilities on
the basis of the revised lease payments and the unchanged discount rate. If the change of lease payment comes from the
change of floating interest rate the revised discount rate shall be used to calculate the present value.
(4) Determination basis and accounting treatment of short-term leases and leases of low-value assets treated under a
simplified method as lessee
The Group chooses not to recognise right-of-use assets and lease liabilities for short-term leases of buildings and other
equipment and leases of low-value assets. A short-term lease is a lease that at the commencement date has a lease term of 12
months or less and does not contain a purchase option. A lease of low-value assets is a lease that the single underlying asset
when is new is of low value. The Group shall recognise the lease payments associated with short-term leases and leases of
low-value assets in profit or loss or cost of related assets on a straight-line basis over the lease term.
(5) Lease modifications
The Group accounts for a lease modification as a separate lease if:
(i) the lease modification expanded the scope of the lease by adding the right-of-use of one or more lease assets; and
(ii) The increased consideration is equivalent to the amount of stand-alone price of the expanded lease scope adjusted
according to the contract.If the lease modification is not accounted for as an individual lease on the effective date of the lease modification the Group
reallocates the consideration of the contract after the change re-determines the lease term and remeasures the lease liabilities
at the present value of revised lease payment discounted at revised discount rate.If the lease modification results in a reduction in the lease scope or lease term the carrying amount of the right-of-use assets
will be reduced and the gains or losses relevant to the lease partially of fully terminated will be included in profit or loss for
the period; for other lease modifications resulting in the remeasurement of lease liabilities the carrying amount of right-of-
use assets is adjusted accordingly.
32. Other significant accounting policies and estimates
The preparation of the financial statements requires management to make judgements estimates and assumptions that affect the
reported amounts of revenue expenses assets and liabilities and their accompanying disclosures and the disclosure of contingent
liabilities at the balance sheet date. Uncertainty about these assumptions and estimates could result in outcomes that could require
a material adjustment to the carrying amounts of the assets or liabilities affected in the future.
(1) Judgements
1962025 Annual Report of DR Corporation Limited
In the process of applying the Group's accounting policies management has made the following judgements which have a
significant effect on the amounts recognised in the financial statements:
(i) Business models
The classification of financial assets at initial recognition depends on the Group's business model for managing financial assets.When determining the business model the Group considers the methods to include evaluation and report financial asset
performance to key management the risks affecting the performance of financial assets and risk management and the manner in
which the relevant management receives remuneration. When assessing whether the objective is to collect contractual cash flows
the Group needs to analyse and judge the reason timing frequency and value of the sale before the maturity date of the financial
assets.(ii) Whether a contract is or contains a lease
The Group entered into a service agreement under Offline Joint-Operated business model. The Group believes that based on the
agreement there is an identified asset and the Group controls the right to use the asset during the lease period. Therefore the
service agreement contains a lease and the Group treats it as a lease.
(2) Estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the future accounting
periods are described below.(i) Impairment of financial instruments
The Group uses the expected credit loss model to assess the impairment of financial instruments. The Group is required to perform
significant judgement and estimation and take into account all reasonable and supportable information including forward-looking
information. When making such judgements and estimates the Group infers the expected changes in the debtor's credit risk based
on historical repayment data combined with economic policies macroeconomic indicators industry risks and other factors. The
different estimates may impact the impairment assessment and the provision for impairment may not be representative of the
actual impairment loss in the future.(ii) Impairment of non-current assets other than financial assets
The Group assesses whether there are any indications of impairment for all non-current assets other than financial assets at the
balance sheet date. Non-current assets other than financial assets are tested for impairment when there are indications that the
carrying amounts may not be recoverable. An impairment exists when the carrying amount of an asset or asset group exceeds its
recoverable amount which is the higher of its fair value less costs of disposal and the present value of the future cash flows
expected to be derived from it. The calculation of the fair value less costs of disposal is based on available data from binding sales
transactions in an arm's length transaction of similar assets or observable market prices less incremental costs for disposing of the
assets. When the calculations of the present value of the future cash flows expected to be derived from an asset or asset group are
undertaken management must estimate the expected future cash flows from the asset or asset group and choose a suitable discount
rate in order to calculate the present value of those cash flows. Further details are included in Section VIII Note VII 14. Right-of-
use assets.(iii) Deferred tax assets
Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable income will be available
against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax
assets that can be recognised based upon the likely timing and level of future taxable income together with future tax planning
strategies.(iv) Loyalty points
The Group makes reasonable estimate of the stand-alone selling price of the loyalty points for contract consideration allocation by
taking into account all relevant information such as the stand-alone selling prices for the customer to acquire additional free goods
or services or the discounts enjoyed by the customer using the loyalty points and the possibility for the customer to exercise the
1972025 Annual Report of DR Corporation Limited
redemption right. The Group considers the likelihood for the customer to exercise the redemption right based on the historical data
of point redemption the current point redemption and the future changes of customer demands the future trend of the market and
other factors. The Group re-evaluates the estimated redemption rate of loyalty points at least on each balance sheet date and
calculates the amounts of revenue and balance that should be recognised for considerations related to loyalty points based on the
re-evaluation results.(v) Provision for decline in value of inventories determined on net realisable value
The Group measures the inventories at the lower of cost and net realisable value in accordance with the accounting policies for
inventories. The inventories are written down below cost to net realisable value and the write-down is recognised in profit or loss
if the cost is higher than the net realisable value. The Group re-estimates at each balance sheet date whether the net realisable value
of individual inventory items is lower than the cost of inventory.(vi) Fair value of wealth management products and structured deposits
For wealth management products and structured deposits measured at fair value the Group needs to make estimates about
expected future cash flows credit risk volatility and discount rates and hence they are subject to uncertainty.(vii) Provisions for store recovery
As the lessee the Group undertakes the obligation to restore the leased assets to the state agreed in the lease terms in accordance
the lease contract. The management estimates provisions arising from the fulfilment of recovery obligations based on industry
conditions and historical experience. At the balance sheet date management reviews and adjusts provisions appropriately at each
balance sheet date to reflect the current best estimate.(viii) Lessee's incremental borrowing rate
If the interest rate implicit in the lease cannot be readily determined the Group measures the lease liability at the present value of
the lease payments discounted using the lessee's incremental borrowing rate. According to the economic environment the Group
takes the observable interest rate as the reference basis for determining the incremental borrowing rate then adjusts the observable
interest rate based on its own circumstances underlying assets lease terms and amounts of lease liabilities to determine the
applicable incremental borrowing rate.(ix) Fair value hedges
The changes in fair value of hedging derivatives are recognised in profit or loss for the period. Where the hedged item is an
unrecognised firm commitment the cumulative changes in fair value of such firm commitment attributable to hedged risks are
recognised as an asset or liability with related gains or losses recognised in profit or loss for the period.
33. Changes in material accounting policies and accounting estimates
(1) Changes in material accounting policies
□Applicable ?Not applicable
(2) Changes in significant accounting estimates
□Applicable ?Not applicable
(3) Adjustments to opening balance sheet items upon initial application of new accounting standards effective from 2025
□Applicable ?Not applicable
1982025 Annual Report of DR Corporation Limited
VI. Taxation
1. Major categories of taxes and tax rates
Category of taxes Tax basis Tax rate
Difference between sales amount and
output VAT calculated at applicable tax
Value-added tax ("VAT") 3% 6% 13% 20% 21%
rate after deducting input VAT allowed to
be deducted
Sales of taxable consumer goods (ad
Consumption tax 5%
valorem)
Urban maintenance and construction tax VAT and consumption tax actually paid 5% 7%
15%16.5%17%19%20%21%
Corporate income tax Taxable income
24%25%
Education surcharge VAT and consumption tax actually paid 3%
Local education surcharge VAT and consumption tax actually paid 2%
Disclosure of information on taxpayers with different corporate income tax rates
Taxpayers Income tax rate
Shenzhen Darry Commercial Management Service Co. Ltd.He'er Culture (Hainan) Co. Ltd. Shenzhen Love Only AI 15%
Cloud Technology Co. Ltd. DR Jewelry Garland International
DR Group Company Limited DARRY JEWELRY (HK)
LIMITED Couple Only Jewelry Hong Kong Company 16.5%
Limited LOVEMONT HONG KONG LIMITED
DR LUXURY(SINGAPORE) PTE. LTD. 17%
DR Luxury Netherlands Holding B.V. 19%
DR LUXURYUSA INC 21%
LOVEMONT (MALAYSIA) SDN. BHD 24%
DR Corporation Limited Shanghai Darry Diamond Co. Ltd.
25%
Haoduo Diamond (Shenzhen) Co. Ltd.Other subsidiaries of the Group incorporated in Chinese
20%
mainland
2. Tax benefits
(1) Income tax benefits
According to the provisions of Notice of the Ministry of Finance and the State Taxation Administration on Extending the Preferential
Policies for Corporate Income Tax in the Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone (Cai
Shui [2021] No. 30) from 1 January 2021 to 31 December 2025 the corporate income tax policy of the Shenzhen Qianhai Shenzhen-
Hong Kong Modern Service Industry Cooperation Zone will be continued and eligible enterprises located in the Qianhai Shenzhen-
Hong Kong Modern Service Industry Cooperation Zone will be subject to corporate income tax at a reduced rate of 15%. Shenzhen
Darry Commercial Management Service Co. Ltd. a subsidiary of the Group is established in the Qianhai Shenzhen-Hong Kong
Modern Service Industry Cooperation Zone and is subject to corporate income· tax at a reduced rate of 15% in 2025.According to the provisions of the Notice by the Ministry of Finance and the State Taxation Administration of Continuing the
Implementation of the Preferential Income Tax Policies for Enterprises in Hainan Free Trade Port (Cai Shui [2025] No. 3) in order to
support the development of the Hainan Free Trade Port relevant corporate income tax preferential policies will continue to apply to
enterprises in encouraged industries that are registered in the Hainan Free Trade Port and conduct substantive operations there with
the implementation period extended until 31 December 2027. In accordance with the above provisions the subsidiary of the Group
He’er Culture (Hainan) Co. Ltd. is subject to corporate income tax at a reduced rate of 15% in 2025.
1992025 Annual Report of DR Corporation Limited
Shenzhen Love Only AI Cloud Technology Co. Ltd. a subsidiary of the Group obtained the qualification of high-tech enterprise on
16 October 2023 which is valid for three years. According to the provisions of the Corporate Income Tax Law of the People's
Republic of China Shenzhen Love Only AI Cloud Technology Co. Ltd. is subject to a corporate income rate of 15% in 2025.According to the Announcement of the Ministry of Finance and the State Taxation Administration on the Relevant Tax and Fee
Policies for Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial
Households (No. 12 of 2023) from 1 January 2023 to 31 December 2027 the taxable income of small and low profit enterprises shall
be calculated at a reduced rate of 25% and the corporate income tax shall be calculated and paid at a rate of 20% those polices will
remain in effect until 31 December 2027. Certain subsidiaries of the Group meet the criteria for small and low profit enterprises in
2025 and independently apply the corresponding tax reduction and exemption policies.
(2) VAT tax benefits
According to the Notice of the Ministry of Finance the General Administration of Customs and the State Taxation Administration on
Adjusting the Relevant Tax Policies of the Diamond and Shanghai Diamond Exchange (Cai Shui [2006] No. 65) polished diamonds
imported through the customs declaration of the competent customs of Shanghai Diamond Exchange shall be levied and refunded
immediately if the actual VAT burden exceeds 4% at the import stage. Shanghai Darry Diamond Co. Ltd. (hereinafter referred to as
"Shanghai Darry") a subsidiary of the Group has the membership of the Shanghai Diamond Exchange and enjoys the tax treatment of
immediate refund for the part of the actual VAT burden in the import process exceeding 4% from January to October 2025.According to the Announcement of the Ministry of Finance and the State Taxation Administration on Value-Added Tax Reduction
and Exemption Policies for Small-Scale Value-Added Tax Taxpayers (Announcement No. 19 of 2023 of the Ministry of Finance and
the State Taxation Administration) small-scale VAT taxpayers with monthly sales of less than RMB100000 (inclusive) are exempted
from VAT; for small-scale VAT taxpayers subject to taxable sales income at a levy rate of 3% a reduced levy rate of 1% will be
applied; for items subject to a 3% pre-levy rate the prepayment VAT at a reduced pre-levy rate of 1% will be applied. Some of the
Company's branches are small-scale taxpayers and meet the above standards and are entitled to VAT exemption/reduction in 2025.
(3) Additional tax incentives
According to the Circular of the Ministry of Finance and the State Taxation Administration on Expanding the Scope of Exemption for
Relevant Government Funds (Cai Shui [2016] No. 12) the scope of obligors exempted from education fee surcharge local education
surcharge and water conservancy construction fund will be expanded from those paying monthly tax with monthly sales or turnover
not exceeding RMB30000 (quarterly sales or turnover not exceeding RMB90000 for those paying quarterly tax) to taxpayers paying
monthly tax with monthly sales or turnover not exceeding RMB100000 (quarterly sales or turnover not exceeding RMB300000 for
those paying quarterly tax). Some branches of the Company meet the above standards and are exempt from education surcharge local
education surcharge and water conservancy construction funds in 2025.According to Provision II of the Announcement of the Ministry of Finance and the State Taxation Administration on the Relevant Tax
and Fee Policies for Further Supporting the Development of Small and Micro Enterprises and Individual Industrial and Commercial
Households (Announcement No. 12 of 2023 of the State Taxation Administration of the Ministry of Finance) from 1 January 2023 to
31 December 2027 small-scale tax taxpayers of value-added tax small and low profit enterprises and individual industrial and
commercial enterprises may be subject to the 50% reduced rate of resource tax (excluding water resources tax urban maintenance and
construction tax real estate tax urban land use tax stamp tax (excluding securities transaction stamp tax) farmland occupation tax
education surcharge and local education surcharge. Some of the Company's branches meet the above standards and thus are subject to
the 50% reduced rate of urban maintenance and construction tax stamp tax (excluding securities transaction stamp tax) education
surcharge and local education surcharge in 2025.
2002025 Annual Report of DR Corporation Limited
VII. NOTES TO ITEMS OFTHE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
Item Closing balance Opening balance
Cash on hand 216269.95 115321.08
Cash at banks 183970828.88 136015250.10
Others 71265951.22 3659373.86
Total 255453050.05 139789945.04
Including: Total amount deposited
41948523.048914267.89
overseas
Other descriptions:
As at 31 December 2025 and 31 December 2024 there are restrictions on the ownership or right of use the cash and bank balances
of the Group. Refer to Section VIII Note VII. NOTES TO ITEMS OF THE CONSOLIDATED FINANCIAL STATEMENTS 19.Assets with restricted ownership or right of use.
2. Held-for-trading financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at FVTPL 4614532944.58 4579301487.22
Including:
Structured deposits 20055642.28 108046531.50
Wealth management products 4594477302.30 4471254955.72
Including:
Total 4614532944.58 4579301487.22
Other descriptions:
3. Accounts receivable
(1) Disclosed by ageing
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Ageing
period of the period
Within 1 year inclusive 79003957.62 83151605.84
1 to 2 years 437256.15 583134.16
Total 79441213.77 83734740.00
(2) Disclosed by method of determining allowances for bad debts
Unit: RMB
Category Closing balance Opening balance
2012025 Annual Report of DR Corporation Limited
Gross carrying amount Allowances for bad debts Carrying Gross carrying amount Allowances for bad debts Carrying
Amount Proportion Amount Proportion amount Amount Proportion Amount Proportion amount
Accounts
receivable
for which
allowance
s for bad 408029. 408029.
0.51%100.00%0.00
debts are 00 00
made on
an
individual
basis
Including:
Accounts
receivable
for which
allowance
790331280159762315837347282166809130
s for bad 99.49% 3.54% 100.00% 3.37%
84.776.1988.5840.005.0374.97
debts are
made on a
portfolio
basis
Including:
Accounts
receivable
from POS
282496282496311693311693
terminals 35.56% 37.22%
05.5205.5250.1150.11
and e-
commerce
platforms
Accounts
receivable
507835280159479819525653282166497437
from 63.93% 5.52% 62.78% 5.37%
79.256.1983.0689.895.0324.86
shopping
malls
794412320962762315837347282166809130
Total 100.00% 4.04% 100.00% 3.37%
13.775.1988.5840.005.0374.97
Allowances for bad debts made on an individual basis: 408029.00
Unit: RMB
Opening balance Closing balance
Name Gross carrying Allowances for Gross carrying Allowances for Proportion of Reasons for
amount bad debts amount bad debts provision provision
Recovery is not
expected due to
Company 6 408029.00 408029.00 408029.00 100.00% the
counterparty's
loss of contact
Total 408029.00 408029.00 408029.00
Allowances for bad debts made on a portfolio basis: 2801596.19
Unit: RMB
2022025 Annual Report of DR Corporation Limited
Closing balance
Name
Gross carrying amount Allowances for bad debts Proportion of provision
Accounts receivable from
POS terminals and e- 28249605.52
commerce platforms
Accounts receivable from
50783579.252801596.195.52%
shopping malls
Total 79033184.77 2801596.19
Description of the basis for determining the portfolios:
If the Group recognises allowances for bad debts based on the ECL general model:
?Applicable □Not applicable
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for bad
debts Lifetime ECLs (not Lifetime ECLs (credit
Total
12-month ECL
credit-impaired) impaired)
Balance at 1 January
2821665.032821665.03
2025
Balance at 1 January
2025 made in the
current period
Provision for the
861007.77408029.001269036.77
period
Reversal for the period 879901.14 879901.14
Other changes -1175.47 -1175.47
Balance at 31
2801596.19408029.003209625.19
December 2025
Basis for the division of each stage and provision ratio for allowances for bad debts
Description of significant changes in gross carrying amount of accounts receivable with changes in loss allowance for the current
period:
(3) Allowances for bad debts provided recovered or reversed for the current period
Allowances for bad debts for the current period:
Unit: RMB
Changes for the period
Opening
Category Closing balance
balance Recovery orProvision Write-off Others
reversal
Recognised on
an individual 408029.00 408029.00
basis
Recognised on
2821665.03861007.77879901.14-1175.472801596.19
a portfolio basis
Total 2821665.03 1269036.77 879901.14 -1175.47 3209625.19
2032025 Annual Report of DR Corporation Limited
Including: material recovery or reversal of allowances for bad debts for the current period:
Unit: RMB
The basis and
rationality of
Amount recovered or
Name Reasons for reversal Methods for reversal determining the ratio
reversed
for original allowances
for bad debts
There were no material recovery or reversal of allowances for bad debt in 2025.
(4) The top 5 largest accounts receivable and contract assets at the end of the period categorised by
debtor
Unit: RMB
Closing balance of
Proportion of total
Closing balance of provision for
Closing balance of closing balance of
Closing balance of accounts impairment of
Name accounts accounts
contract assets receivable and accounts
receivable receivable and
contract assets receivable and
contract assets
contract assets
Company 1 8754048.91 8754048.91 11.02%
Company 2 7492608.14 7492608.14 9.43%
Company 3 4454230.64 4454230.64 5.61%
Company 4 2690748.91 2690748.91 3.39% 145037.31
Company 5 2358373.76 2358373.76 2.97%
Total 25750010.36 25750010.36 32.42% 145037.31
4. Other receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 6849519.33 5861059.14
Total 6849519.33 5861059.14
(1) Other receivables
1) Other receivables categorised by nature
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Nature
period of the period
Social insurances and housing fund
4117484.464147653.59
borne by employees
Temporary loans for employees 671611.11 269116.67
Others 2060423.76 3349288.88
Total 6849519.33 7766059.14
2042025 Annual Report of DR Corporation Limited
2) Disclosed by ageing
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Ageing
period of the period
Within 1 year inclusive 5077253.47 5642738.35
1 to 2 years 1572194.14 218320.79
2 to 3 years 200071.72
Over 3 years 1905000.00
3 to 4 years 1905000.00
Total 6849519.33 7766059.14
3) Disclosed by method of determining allowances for bad debts
?Applicable □Not applicable
Unit: RMB
Closing balance Opening balance
Gross carrying Allowances for bad Gross carrying Allowances for bad
Categor
amount debts Carrying amount debtsy Carrying
Proporti Proporti amount Proporti Proporti amount
Amount Amount Amount Amount
on on on on
Allowan
ces for
bad
debts 190500 190500
24.53%100.00%
made on 0.00 0.00
an
individu
al basis
Including:
Allowan
ces for
bad
debts 684951 684951 586105 586105
100.00%75.47%
made on 9.33 9.33 9.14 9.14
a
portfolio
basis
Including:
684951684951776605190500586105
Total 100.00% 100.00% 24.53%
9.339.339.140.009.14
Allowances for bad debts made on an individual basis
Unit: RMB
Opening balance Closing balance
Name Gross carrying Allowances for Gross carrying Allowances for Proportion of Reasons for
amount bad debts amount bad debts provision provision
The
counterparty's
Company 13 1905000.00 1905000.00
financial
situation has
2052025 Annual Report of DR Corporation Limited
deteriorated
and it is
unlikely that
the receivable
will be
recovered
Total 1905000.00 1905000.00
Allowances for bad debts based on the ECL general model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for bad
debts Life-time ECL (not Life-time ECL (credit-
Total
12-month ECL
credit-impaired) impaired)
Balance at 1 January
1905000.001905000.00
2025
Balance at 1 January
2025 made in the
current period
Write-off 1905000.00 1905000.00
Balance at 31
0.000.00
December 2025
Basis for the division of each stage and provision ratio for allowances for bad debts
Changes in outstanding balance with significant changes in the amount of allowances for bad debts in the current period
□Applicable ?Not applicable
4) Allowances for bad debts provided recovered or reversed for the current period
Allowances for bad debts for the current period:
Unit: RMB
Changes for the period
Opening
Category Recovery or Closing balancebalance Provision Write-off Others
reversal
Allowances for
bad debts made
1905000.001905000.00
on an
individual basis
Total 1905000.00 1905000.00
Including: material recovery or reversal of allowances for bad debts for the current period:
Unit: RMB
The basis and
rationality of
Amount recovered or
Name Reasons for reversal Methods for reversal determining the ratio
reversed
for original allowances
for bad debts
2062025 Annual Report of DR Corporation Limited
5) Other receivables actually written off in the current period
Unit: RMB
Item Write-off amount
Company 13 1905000.00
Including: material write-off of other receivables
Unit: RMB
Whether the
Write-off
Nature of other Reasons for write- amount is derived
Name Write-off amount procedures
receivables off from related party
fulfilled
transactions
Description of the write-off of other receivables:
There was no write-off of other receivables in a large amount in this year.
6) The top 5 largest other receivables at the end of the period categorised by debtor
Unit: RMB
Proportion of total Closing balance of
Nature of the
Name Closing balance Ageing closing balance of allowances for bad
amount
other receivables debts
Company 12 Others 1504500.00 1 to 2 years 21.97%
Temporary loans
Employee.1 200000.00 Over 2 years 2.92%
for employees
Temporary loans
Employee.2 110000.00 Within 1 year 1.61%
for employees
Temporary loans
Employee.3 60000.00 Within 1 year 0.88%
for employees
Temporary loans
Employee.4 32000.00 Within 1 year 0.47%
for employees
Total 1906500.00 27.85%
5. Prepayments
(1) Prepayments presented by ageing
Unit: RMB
Closing balance Opening balance
Ageing
Amount Proportion Amount Proportion
Within 1 year 42250728.12 94.53% 28998178.45 91.19%
1 to 2 years 2444066.24 5.47% 2801787.43 8.81%
Total 44694794.36 31799965.88
Description of the reason why significant prepayments aged over one year were not settled in time:
As at 31 December 2025 the Group had no significant prepayments aged over one year (31 December 2024: nil).
2072025 Annual Report of DR Corporation Limited
(2) The top 5 largest prepayments at end of year categorised by receivers
Unit: RMB
Proportion of total
Name Closing balance closing balance of Remark
prepayments
Company 7 8771306.75 19.62 Payment for goods
Company 8 4154759.95 9.30 Payment for goods
Company 9 2558067.09 5.72 Business promotion fees
Company 10 1036204.71 2.32 Business promotion fees
Company 11 951258.30 2.13 Business promotion fees
Total 17471596.80 39.09
Other descriptions:
6. Inventories
Whether the Company needs to follow the disclosure requirements for the real estate industry
No
(1) Category of inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
decline in value decline in value
Item of inventories of inventoriesGross carrying Carrying Gross carrying Carrying
or provision for or provision for
amount amount amount amount
impairment of impairment of
costs to fulfil a costs to fulfil a
contract contract
Raw materials 192844152.56 3821724.61 189022427.95 82644133.19 12258810.26 70385322.93
Goods on hand 470237805.06 470237805.06 347801731.14 6892108.12 340909623.02
Reusable
6386710.326386710.324325395.024325395.02
materials
Goods
285517.56285517.56353284.04353284.04
delivered
Semi-finished
27627358.0827627358.0816540227.0116540227.01
goods
Materials on
consignment
14311304.9114311304.9114939812.7814939812.78
for further
processing
Total 711692848.49 3821724.61 707871123.88 466604583.18 19150918.38 447453664.80
The Company is required to comply with the disclosure requirements for "Jewelry-related business" stipulated in the Self-
Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange - Industry Information Disclosure.
2082025 Annual Report of DR Corporation Limited
Distribution of inventories at the end of reporting period
Currency: RMB10 thousand Yuan
Gross carrying amount at the end of the period of inventories
Item Semi-
finished Goods on
Materials on
hand consignment for
Raw Reusable Goods
goods further processing materials materials delivered
Total
Karat gold jewelry 1931.69 35054.58 56.07 - - 8.74 37051.09
Platinum jewelry 812.75 6483.22 39.09 - - 19.20 7354.26
Gold jewelry 7.56 5157.56 8.84 - - 0.30 5174.27
Diamond - - 1324.29 10669.46 - - 11993.75
Platinum - - - 5382.69 - - 5382.69
Gold - - - 3140.84 - - 3140.84
Reusable materials - - - - 638.67 0.31 638.98
Others 10.73 328.41 2.84 91.43 - - 433.41
2762.7447023.781431.1319284.42638.6728.5571169.28
Total
Note: The values above are rounded to two decimal places. Minor discrepancies may exist in the values' trailing digits which are
due to rounding and not calculation errors.
(2) Provision for decline in value of inventories and provision for impairment of costs to fulfil a contract
Unit: RMB
Increase Decrease
Opening
Item Reversal or Closing balancebalance Provision Others Others
write-off
Raw materials 12258810.26 5675644.86 14112730.51 3821724.61
Goods on hand 6892108.12 6892108.12
Total 19150918.38 5675644.86 21004838.63 3821724.61
The reversal of inventory provisions during the year was due to the sale or disposal of the related inventory items.Provision for decline in value of inventories which is assessed on a portfolio basis
Unit: RMB
Closing balance Opening balance
Name of Provision ratio Provision ratio
portfolio Provision for Opening Provision forClosing balance for decline in for decline in
decline in value balance decline in value
value value
Raw materials 192844152.56 3821724.61 1.98% 82644133.19 12258810.26 14.83%
Goods on hand 470237805.06 347801731.14 6892108.12 1.98%
Total 663081957.62 3821724.61 0.58% 430445864.33 19150918.38 4.45%
The standard of provision for decline in value of inventories which is assessed on a portfolio basis
For finished goods on regular sale the net realisable value of the inventory is the estimated selling price of the inventory less the
estimated selling expenses and related taxes. For inventories of materials subject to processing the net realisable value of
2092025 Annual Report of DR Corporation Limited
inventories is the estimated selling price of the finished goods produced less the estimated costs of completion estimated selling
expenses and related taxes. For finished goods to be disposed of and removed from shelves the net realisable value of the
inventory is the amount of gold and loose stone recovered after melting. For materials used for sale the net realisable value of the
inventory is the estimated selling price of the inventory less the estimated selling expenses and related taxes.The reason for write-off of the provision for decline in value of inventories is that goods on hand have been sold or the provision
for decline in value of inventories corresponding to the write-off has been disposed of.
7. Non-current assets due within one year
Unit: RMB
Item Closing balance Opening balance
Debt investments due within one year 585063746.011 368696594.82
Lease deposits due within one year 46388027.29 66943416.02
Allowances for bad debts of non-current
-1609991.37-2154648.67
assets due within one year
Total 629841781.93 433485362.17
Note 1: As at 31 December 2025 the debt investments refer to large-denomination certificates of deposit purchased by the Group
with a maturity within one year (from February to August 2026) and a deposit interest rate of 2.95% to 3.30% ((31 December 2024:
the maturity is from February to December 2025 and deposit interest rate is 3.13% to 3.55%). The Group's business model for
managing the financial assets is to collect contractual cash flows; therefore those financial assets are subsequently measured at
amortised cost.
(1) Debt investments due within one year
?Applicable □Not applicable
1) Debt investments due within one year
Unit: RMB
Closing balance Opening balance
Name Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Large-
denomination
certificates of
deposit with a
585063746.01585063746.01368696594.82368696594.82
term of more
than one year
and due within
one year
Total 585063746.01 585063746.01 368696594.82 368696594.82
Changes in provision for impairment of debt investments due within one year in the current period
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
2102025 Annual Report of DR Corporation Limited
2) Important debt investments due within one year at the end of the period
Unit: RMB
Effective interest rate Overdue principal
Nominal
Item Coupon rate Maturity date
value Closing Opening Closing Opening
balance balance balance balance
Large-
denominatio
n certificates 200000000. 1 March
3.30%3.30%
of deposit at 00 2026
China CITIC
Bank
Large-
denominatio
n certificates
150000000. 14 March
of deposit at 3.25% 3.25%
002026
China
Everbright
Bank
Large-
denominatio
n certificates
100000000. 6 February
of deposit at 3.05% 3.05%
002026
China
Minsheng
Bank
450000000.
Total
00
8. Other current assets
Unit: RMB
Item Closing balance Opening balance
Right-of-return assets 371514.75 335071.94
Wealth management products with fixed
87285227.42150009254.44
income
Input VAT to be certified deducted and
41150020.373849073.12
retained
Prepaid income tax 108591.08 12106.84
Prepaid expenses 15290265.86 7997817.26
Total 144205619.48 162203323.60
Note 1: The principal guaranteed fixed income wealth management products held by the Group are mainly 7-day treasury bond
reverse repurchases purchased by the Group and 1-year time deposits. As at 31 December 2025 and 31 December 2025 the Group
considered that there was no significant credit risk in treasury bond reverse repurchase and time deposits and there would be no
significant credit losses due to default of financial institutions so no allowance for bad debts was made.Other descriptions:
2112025 Annual Report of DR Corporation Limited
9. Debt investments
(1) Details of debt investments
Unit: RMB
Closing balance Opening balance
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Large-
denomination
certificates of
deposit with a 20913414.281 20913414.28 569885924.01 569885924.01
maturity of
more than one
year
Total 20913414.28 20913414.28 569885924.01 569885924.01
Notes 1: (1) As at 31 December 2025 debt investment is primarily comprised of large-denomination certificates of deposit
purchased by the Group with a maturity of more than one year (due in May 2027) and a deposit interest rate of 3.00% (31
December 2024: the maturity is from February 2026 to May 2027 and a deposit interest rate of 3.00% to 3.30%). The Group's
business model for managing the financial assets is to collect contractual cash flows; therefore those financial assets are
subsequently measured at amortised cost. (2) As at 31 December 2025 and 31 December 2024 the Group considered that the
large-denomination certificates of deposit were not subject to significant credit risk and would not cause significant credit losses
due to default of financial institutions so no allowance for bad debts was made.The movements in provision for impairment of debt investments
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
(2) Important debt investments at the end of the period
Unit: RMB
Closing balance Opening balance
Item Effective EffectiveNominal Coupon Maturity Nominal Coupon Maturity
interest Overdue interest Overdue
value rate date value rate date
rate principal rate principal
Large-
denomin
ation
certificat
200000 21 May
es of 3.00% 3.00%
00.002027
deposit
at Bank
of
Ningbo
Large-
denomin 6
100000
ation 3.30% 3.30% February
000.00
certificat 2026
es of
2122025 Annual Report of DR Corporation Limited
deposit
at China
Minshen
g Bank
Time
deposits
150000 1 March
at China 3.25% 3.25%
000.002026
Everbrig
ht Bank
Large-
denomin
ation
certificat 14
200000
es of 3.30% 3.30% March
000.00
deposit 2026
of China
CITIC
Bank
450000
200000
Total 000.00
00.001
Note 1: Non-current assets reclassified to current assets due within one year as of December 31 2025.10. Long-term equity
investments
Unit: RMB
Openi Changes for the year
Opening Closing
ng
balance Investme Other balancebalanc nt profit Cash Closingof Addition Reductio compreh Provisio ofe balance
Investee provisio or loss Other dividend provisio
(carry al n in ensive n for
n for recognis equity s or Others
(carrying
ing investme investme income impairm
n for
impairm ed under changes profit
amount)
amou nt nt adjustme ent loss
impairm
ent equity declared ent
nt) ntsmethod
I. Joint venture
II. Associates
Palace
-
(Beijing) 400000 379835
201644
Jewelry 00.00 53.63
6.37
Co. Ltd. 1
Airike
-
(Shenzhen) 120000 834555.
365444.
Jewelry 0.00 77
23
Co. Ltd.-
412000388181
Subtotal 238189
00.0009.40
0.60
-
412000388181
Total 238189
00.0009.40
0.60
Note: 1 On 2 April 2025 the Group invested RMB20 million in Palace (Beijing) Jewelry Co. Ltd. ("Palace Jewelry") due to
business development demands acquiring 40.00% equity interest in Palace Jewelry. On 22 October 2025 the Group and two other
shareholders of Palace Jewelry increased their capital in proportion to their original shareholding ratio investing an additional
2132025 Annual Report of DR Corporation Limited
RMB20 million in Palace Jewelry. After this capital increase the Group's equity interest in Palace Jewelry remained at 40.00%.The recoverable amount is the net amount of fair value less costs to disposal.□Applicable ?Not applicable
Recoverable amount is determined according to the present value of expected future cash flows
□Applicable ?Not applicable
Reasons for notable differences between the foregoing information and information or external information used for impairment
testing in prior year
Reasons for notable differences between the information used for impairment testing in prior year by the Company and actual
conditions in that year
Other descriptions:
11. Other non-current financial assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at FVTPL 309215157.75 403675066.37
Total 309215157.75 403675066.37
Other descriptions:
As at 31 December 2025 other non-current financial assets were mainly long-term wealth management products purchased by the
Group.
12. Fixed assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 5614795.86 8468744.76
Total 5614795.86 8468744.76
(1) Fixed assets
Unit: RMB
Item Transportation equipment Office equipment and others Total
I. Original book value:
1. Opening balance 5074321.53 25381663.32 30455984.85
2. Increase 1578971.86 1578971.86
(1) Purchases 1581667.66 1581667.66
(2) Transfers from
2142025 Annual Report of DR Corporation Limited
construction in progress
(3) Increase from
business combinations
(4) Exchange differences on
translation of financial
-2695.80-2695.80
statements denominated in
foreign currency
3. Decrease 689241.93 689241.93
(1) Disposal or
689241.93689241.93
retirement
4. Closing balance 5074321.53 26271393.25 31345714.78
II. Accumulated depreciation
1. Opening balance 3827301.11 18159938.98 21987240.09
2. Increase 736815.39 3686138.35 4422953.74
(1) Provision 736815.39 3688210.97 4425026.36
(2) Exchange differences on
translation of financial
-2072.62-2072.62
statements denominated in
foreign currency
3. Decrease 679274.91 679274.91
(1) Disposal or
679274.91679274.91
retirement
4. Closing balance 4564116.50 21166802.42 25730918.92
III. Impairment provision
1. Opening balance
2. Increase
(1) Provision
3. Decrease
(1) Disposal or
retirement
4. Closing balance
IV. Carrying amount
1. Carrying amount at
510205.035104590.835614795.86
the end of the period
2. Carrying amount at
1247020.427221724.348468744.76
the beginning of the period
13. Construction in Progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 46581024.88
Total 46581024.88
(1) Construction in progress
Unit: RMB
2152025 Annual Report of DR Corporation Limited
Closing balance Opening balance
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Headquarters
46581024.8846581024.88
base project
Total 46581024.88 46581024.88
(2) Changes in significant construction in progress for the period
Unit: RMB
Prop
ortio Amo
Inclu
n of unt
ding:
cumu of Rate
Capit
Budg Open Trans Closi lative Proje accu of
Other alised
et ing Incre fer to ng proje ct mulat intere
Item decre intere Source of capital
amou balan ase fixed balan ct progr ed st
ases st for
nt ce assets ce inves ess capit capit
the
tment alised alised
perio
to the intere
d
budg st
et
Head
quart
900046584658
ers 11.12 11.12
0000 1024 1024 Others
base 1 % %0.00 .88 .88
proje
ct
900046584658
Total 0000 1024 1024
0.00.88.88
Note: 1. The total project budget includes a land payment of RMB481096402.00 which are accounted for as intangible assets;
and the percentage of cumulative project expenditures relative to the budget is calculated based on the amount net of the land
payment.
(3) Impairment testing of construction in progress
□Applicable ?Not applicable
14. Right-of-use assets
(1) Right-of-use assets
Unit: RMB
Item Buildings Total
I. Original book value:
1. Opening balance 402205072.74 402205072.74
2. Increase 214863660.44 214863660.44
(1) Additions 214406739.78 214406739.78
(2) Exchange differences on translation 456920.66 456920.66
2162025 Annual Report of DR Corporation Limited
of financial statements denominated in
foreign currency
3. Decrease 297477477.00 297477477.00
(1) Disposals 297477477.00 297477477.00
4. Closing balance 319591256.18 319591256.18
II. Accumulated depreciation
1. Opening balance 213647027.04 213647027.04
2. Increase 178832675.65 178832675.65
(1) Provision 178832675.65 178832675.65
3. Decrease 248183872.01 248183872.01
(1) Disposals 248177911.74 248177911.74
(2) Exchange differences on translation
of financial statements denominated in 5960.27 5960.27
foreign currency
4. Closing balance 144295830.68 144295830.68
III. Provision for impairment
1. Opening balance 36393898.13 36393898.13
2. Increase 922334.40 922334.40
(1) Provision 421510.64 421510.64
(2) Exchange differences on translation
of financial statements denominated in 500823.76 500823.76
foreign currency
3. Decrease 32356216.91 32356216.91
(1) Disposals 32356216.91 32356216.91
4. Closing balance 4960015.62 4960015.62
IV. Carrying amount
1. Carrying amount at the end of the
170335409.88170335409.88
period
2. Carrying amount at the beginning
152164147.57152164147.57
of the period
(2) Impairment testing of right-of-use assets
?Applicable □Not applicable
The recoverable amount is the net amount of fair value less costs to disposal.□Applicable ?Not applicable
Recoverable amount is determined according to the present value of expected future cash flows
?Applicable □Not applicable
Unit: RMB
Determinatio
Key Key n basis of
Years of the
Carrying Recoverable Impairment parameters of parameter of key
Item forecast
amount amount amount the forecast the stable parameters in
period
period period the stable
period
DR Suzhou 1047201.43 1012416.32 34785.11 The earlier of (1) Operating N/A N/A
Matro Store the income:
2172025 Annual Report of DR Corporation Limited
DR expiration forecasts are
Nanchong date of the based on the
279567.28218106.8761460.41
Wangfujing lease contract Company's
Store and the strategic
expected objectives
DR closing date the external
Chongqing 1077960.22 1022722.35 55237.87 of the store environment
Mixc Store consumer
DR Qingdao stimulus
Huangdao policies
95972.3794632.161340.21
Aeon Mall introduced
Store by the state
and the
DR Shanghai historical
Songjiang 1100764.16 1043866.00 56898.16 revenue
Wanda Store growth of the
store;
DR Lanzhou (2) Operating
Chengguan 444379.28 324621.52 119757.76 costs:
Wanda Store calculated
DR Dalian based on
Development historical
Zone 103116.10 79355.89 23760.21 average gross
Yihecheng margins;
Store (3) Operating
expenses:
DR Wuhu calculated119798.18 113188.89 6609.29
Yaohan Store based on
historical
DR Weinan Operating
Linwei 399315.69 261336.56 137979.13 expenses as a
Wanda Store percentage of
operating
DR Hong income;
Kong Tsim
Sha Tsui 472498.26 388073.18 84425.08
(4) Pre-tax
discount rate:
Store 14.48%
Total 5140572.97 4558319.74 582253.23
Reasons for notable differences between the foregoing information and information or external information used for impairment
testing in prior year
Reasons for notable differences between the information used for impairment testing in prior year by the Company and actual
conditions in that year
Other descriptions:
The management of the Company has identified impairment indicators in respect of the long-term assets of several stores
including right-of-use assets and long-term prepaid expenses based on the historical experience and market analysis.The Group uses a single store as an asset group and conducts an impairment test on the asset group of the store showing any
indication of impairment.
2182025 Annual Report of DR Corporation Limited
The recoverable amount is determined based on the present value of the estimated cash flows of the single store over the
remaining lease term or expected operational period where the carrying amount of the asset group is higher than the recoverable
amount the Group makes a provision for impairment for the excess amount.The amount of the impairment loss is used to reduce the carrying amount of each asset on a pro-rata basis according to the
proportion of the carrying amount of the right-of-use asset and the long-term prepaid expenses within the asset group of the store.
15. Intangible assets
(1) Intangible assets
Unit: RMB
Non-
Item Land use rights Patents patented techno Software Trademarks Total
logies
I. Original book
value:
1. Opening
466000000.0013244445.454995665.40484240110.85
balance
2. Increase 15096402.00 461370.00 15557772.00
(1)
15096402.0015096402.00
Purchases
(2)
Internal R&D
(3)
Increase from
business
combinations
(4) Exchange
differences on
translation of
financial
461370.00461370.00
statements
denominated in
foreign
currency
3.
Decrease
(1)
Disposals
4. Closing
481096402.0013244445.455457035.40499797882.85
balance
II. Accumulated
amortisation
1. Opening
1553333.3312547780.771328588.3715429702.47
balance
2. Increase 16363783.92 393772.29 1215905.68 17973461.89
(1)
16363783.92393772.291092892.2317850448.44
Provision
2192025 Annual Report of DR Corporation Limited
(2) Exchange
differences on
translation of
financial
123013.45123013.45
statements
denominated in
foreign
currency
3.
Decrease
(1)
Disposals
4. Closing
17917117.2512941553.062544494.0533403164.36
balance
III. Impairment
provision
1. Opening
balance
2. Increase
(1)
Provision
3.
Decrease
(1)
Disposals
4. Closing
balance
IV. Carrying
amount
1.
Carrying
amount at the 463179284.75 302892.39 2912541.35 466394718.49
end of the
period
2.
Carrying
amount at the 464446666.67 696664.68 3667077.03 468810408.38
beginning of
the period
At the end of the period intangible assets arising from internal research and development accounted for 0.00% of the total balance
of intangible assets.
16. Long-term prepaid expenses
Unit: RMB
Item Opening balance Increase Amortisation Other decreases Closing balance
Expenses on 33080008.71 27530457.98 29042136.72 160742.59 31407587.38
2202025 Annual Report of DR Corporation Limited
improvement of
right-of-use assets
Total 33080008.71 27530457.98 29042136.72 160742.59 31407587.38
Other descriptions:
The Group uses a single store as an asset group and conducts an impairment test on the asset group of the store showing any
indication of impairment. The recoverable amount of the asset group is determined according to the present value of the estimated
future cash flow. Refer to Section VIII Note VII Item 14.According to the result of the impairment test the carrying amount of some store asset groups is higher than the recoverable
amount and the corresponding provision for impairment of long-term prepaid expenses is RMB160742.59. As at 31 December
2025 the amount of the provision for impairment of assets included in the closing balance of carrying amount of long-term
prepaid expenses was RMB 730960.69.
17. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets before offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Unrealised profit on
inter-company 7030587.90 1757646.97 4134107.05 1033526.76
transactions
Deductible losses 281160901.18 59895096.72 131659085.48 23889098.37
Allowances for bad
4413472.891099864.266881313.701716273.86
debts
Provision for decline in
3821724.61954943.6219150918.384786029.86
value of inventories
Provision for
impairment of long- 6675414.31 1177648.50 43614578.02 9807242.43
term assets
Provision for store
5327725.961306794.196296113.371547720.57
restoration obligations
Difference between tax
and accounting
183784533.2240051761.48169207924.4537368757.77
treatment of lease
liabilities
Total 492214360.07 106243755.74 380944040.45 80148649.62
(2) Deferred tax liabilities before offsetting
Unit: RMB
Closing balance Opening balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Changes in fair value
140597760.8132759422.51127578295.3529985115.83
of financial instruments
Accrued interest on
38214789.139115289.4244259299.1810462653.69
large-denomination
2212025 Annual Report of DR Corporation Limited
certificates of deposit
Difference between tax
and accounting
174362422.5637299916.14185271104.2540364325.36
treatment of right-of-
use assets
Total 353174972.50 79174628.07 357108698.78 80812094.88
(3) Deferred tax assets or liabilities shown in the net amount after offsetting
Unit: RMB
The offset amount of Closing balance of The offset amount of Opening balance of
deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
Item
liabilities at the end of liabilities after liabilities at beginning liabilities after
the period offsetting of period offsetting
Deferred tax assets 65450368.96 40793386.78 67544216.42 12604433.20
Deferred tax liabilities 65450368.96 13724259.11 67544216.42 13267878.46
(4) Details of unrecognised deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 233815774.05 299778341.65
Deductible temporary differences 3606568.01 6090145.74
Total 237422342.06 305868487.39
(5) Deductible losses for which no deferred tax assets were recognised will become due in the following
years
Unit: RMB
Year Closing balance Opening balance Remark
20251207915.36
20261126793.792014907.27
20271967316.62693393.30
20286284417.13158572257.76
2029116046270.07107297930.13
203074803152.38
Indefinite 33587824.06 29991937.83
Total 233815774.05 299778341.65
Other descriptions:
The Group calculates and recognises deferred tax assets arising from deductible temporary differences at the applicable tax rate for
the period in which the asset is expected to be recovered up to the taxable income that is likely to be acquired in future periods to
offset deductible temporary differences and deductible losses.
18. Other non-current assets
Unit: RMB
Closing balance Opening balance
Item
Gross carrying Provision for Carrying Gross carrying Provision for Carrying
2222025 Annual Report of DR Corporation Limited
amount impairment amount amount impairment amount
Lease deposit
with a term
23637116.2923637116.2922796044.7522796044.75
exceeding one
year
Total 23637116.29 23637116.29 22796044.75 22796044.75
Other descriptions:
As at 31 December 2025 the Group assessed the expected credit loss ratio as low based on historical loss rates and forward-
looking macroeconomic data.
19. Assets with restricted ownership or right of use
Unit: RMB
Closing balance Opening balance
Item Gross GrossCarrying Type of Status of Carrying Type of Status of
carrying carrying
amount restriction restriction amount restriction restriction
amount amount
Change of
Cash and deposits Change of
bank 20292.72 20292.72 Frozen and 2976.81 2976.81 Frozen account
balances account types etc
types etc
Total 20292.72 20292.72 2976.81 2976.81
Other descriptions:
As at 31 December 2025 the Group's restricted cash and bank balances totalled RMB20292.72 (31 December 2024:
RMB2976.81) which were restrictions on bank fund transfer mainly due to change of deposits and account types.
20. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Credit loans 145000000.00 17000000.00
Discounted borrowing on bills 645302899.14 270852882.08
Loans through Rongyixin 51656590.53
Total 790302899.14 339509472.61
Description of classification of short-term borrowings:
The bill discounting borrowings consist of the undiscounted amounts of bank acceptance bills issued among
entities within the consolidation scope of the Group and discounted before year-end as well as the
outstanding borrowings obtained through forfaiting transactions based on letters of credit issued among
entities within the consolidation scope.The credit loans are short-term borrowings obtained by the Company from the
Shenzhen High-Tech Zone Sub-branch of Bank of China Limited the Shenzhen Branch of China Minsheng Bank and the Qianhai
Branch of Agricultural Bank of China Limited. The term of each loan does not exceed 12 months. The interest rate is a floating
rate which is re-priced every 6 months.
2232025 Annual Report of DR Corporation Limited
The loans through Rongyixin refers to the loans issued by the Company to its subsidiary through the Rongyixin platform of the
Bank of China. The subsidiary applies for financing from financial institutions by using the loas held through Rongyixin.As at 31 December 2025 the Group has no overdue short-term borrowings.
21. Held-for-trading financial liabilities
Unit: RMB
Item Closing balance Opening balance
Including:
Financial liabilities designated as at
144722831.86
FVTPL
Including:
Gold leasing 144722831.86
Total 144722831.86
Other descriptions:
The Group leased gold from banks for production and operation. Before maturity date the Company would return the gold to the
banks with the same quantity and specification purchased through Shanghai Gold Exchange or leased from the banks and pay the
agreed lease interest. The lease term is within one year (one year inclusive). As at 31 December 2025 the Group's gold leasing
business has fully expired and returned without renewal.
22. Notes payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptances 73961196.53 32833149.16
Total 73961196.53 32833149.16
The total amount of notes payable due and unpaid at the end of the period was RMB 0.00.
23. Accounts payable
(1) Accounts payable are listed as follows
Unit: RMB
Item Closing balance Opening balance
Accounts payable 35318002.01 31342378.26
Total 35318002.01 31342378.26
Note: As of December 31 2025 and December 31 2024 the Group had no significant accounts payable outstanding for over one
year or past due.
24. Other payables
Unit: RMB
2242025 Annual Report of DR Corporation Limited
Item Closing balance Opening balance
Other payables 57528339.01 284488227.25
Total 57528339.01 284488227.25
(1) Other payables
1) Other payables categorised by nature
Unit: RMB
Item Closing balance Opening balance
Land payables 233000000.00
Variable lease payments and payments
13090512.5715238547.46
due to the shopping mall
Renovation expenses payable 11035998.74 14289041.20
Advertisement expenses payable 7545727.90 5698041.65
Other accrued expenses 9618192.65 4997057.80
Deposits 5518359.03 3713635.25
Payable for repurchase of restricted
3999996.00
shares
Others 6719552.12 7551903.89
Total 57528339.01 284488227.25
Other descriptions:
25. Contract liabilities
Unit: RMB
Item Closing balance Opening balance
Receipts in advance of order payment1 106413910.64 108244059.04
Membership loyalty points redemption
2 9616267.62 4445540.41obligations
Total 116030178.26 112689599.45
Note 1: The receipts of order payment in advance mainly represent the prepayment collected from customers and membership
loyalty points redemption obligations before the Group fulfils its performance obligations. Revenue relating to this contract will be
recognised when the Group fulfils its performance obligations. Normally when the Group receives advance payments for orders
from customers it will normally fulfil its performance obligations and recognise revenue within 30 days.
2: The obligation of membership rewards points redemption refers to the Group's obligation to redeem the rewards points earned
by the customer through product purchases.Significant contract liabilities aged over 1 year
Unit: RMB
Reason for not being paid or carried
Item Closing balance
forward
The amount and reason for significant changes in carrying amount within the reporting period.Unit: RMB
Item Changes Reasons
2252025 Annual Report of DR Corporation Limited
26. Employee benefits payable
(1) Employee benefits payable are listed as follows
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
I. Short-term employee
48210549.23336325814.17335490223.4149046139.99
benefits
II. Post-employment
benefits-defined 36469426.21 36469022.23 403.98
contribution plan
III. Termination
1112419.348973064.799938929.13146555.00
benefits
Total 49322968.57 381768305.17 381898174.77 49193098.97
(2) Short-term employee benefits are as follows
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
1. Salaries bonuses
allowances and 46991211.77 294290384.63 292492917.12 48788679.28
subsidies
2. Staff welfare 1179375.90 10125191.31 11063890.91 240676.30
3. Social security
16674809.6216674809.62
contributions
Including:
15251061.4915251061.49
Medical insurance
Work
877231.97877231.97
injury insurance
Maternity
546516.16546516.16
insurance
4. Housing funds 11963872.71 11963872.71
5. Union fund and
employee education 39961.56 3271555.90 3294733.05 16784.41
fund
Total 48210549.23 336325814.17 335490223.41 49046139.99
(3) Defined contribution plans
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
1. Basic pension
35003405.7435003001.76403.98
insurance
2. Unemployment
1466020.471466020.47
insurance
Total 36469426.21 36469022.23 403.98
Other descriptions:
2262025 Annual Report of DR Corporation Limited
27. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 2316857.24 4389457.09
Consumption tax 8362764.21 7827165.08
Corporate income tax 13483612.82 9164340.71
Withholding and remitting individual
948956.54909947.27
income tax
Urban maintenance and construction tax 596941.28 810393.79
Education surcharge 242491.79 322253.49
Local education surcharge 161661.42 214835.81
Others 636330.52 1282389.83
Total 26749615.82 24920783.07
Other descriptions:
28. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Lease liabilities due within one year 117123268.18 118680935.15
Store restoration obligations due within
4666763.505899510.00
one year
Total 121790031.68 124580445.15
Other descriptions:
29. Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Provision for returns1 800643.24
Output VAT to be transferred 10464197.13 10993820.57
Total 11264840.37 10993820.57
Note: 1. The provision for returns is a provision for goods sold subject to return conditions. The Group calculates the provision
based on historical data and current sales trends.Changes in short-term bonds payable:
Unit: RMB
Openi Closin
Name Nomi Coup Bond Issue Intere Amort Defau
Issue ng Bonds st isatio Repay gof nal on maturi amou lt or
date balanc issued accrue n of ment balancbonds value rate ty nt not
e d at premi e
2272025 Annual Report of DR Corporation Limited
par ums
value or
discou
nts
Total
Other descriptions:
30. Lease liabilities
Unit: RMB
Item Closing balance Opening balance
Lease payments payable 187806468.78 176401022.39
Less: Lease liabilities due within one
117123268.18118680935.15
year
Total 70683200.60 57720087.24
Other descriptions:
31. Provisions
Unit: RMB
Item Closing balance Opening balance Reason
Provision for returns is made
for sales of goods with sales
Provision for returns 675111.59 return conditions. The Groupmakes provision for returns
based on historical experience
data and sales.Store restoration obligations
represent costs that the
Group as the lessee expects
to incur under the lease
agreement to restore the
Store restoration obligations 6719267.00 7621113.00 leased assets to the condition
agreed under the terms of the
lease. The Group estimates
restoration costs based on
industry conditions and
historical experience.Less: Provisions due within
4666763.505899510.00
one year
Total 2052503.50 2396714.59
Other descriptions including description of significant assumptions and estimates related to material provisions:
32. Share capital
Unit: RMB
2282025 Annual Report of DR Corporation Limited
Increase/decrease (+.-)
Opening Conversion Closing
balance New issue Bonus shares of reserves Others Subtotal balance
into shares
400010000.400274550.
Total shares 264550.00 264550.00
0000
Other descriptions:
On 30 July 2025 the Company convened its second extraordinary general meeting of shareholders in 2025 at which the following
resolutions were deliberated and adopted: the Resolution on the Company’s 2025 Restricted Share Incentive Plan (Draft) and Its
Summary the Resolution on the Company’s Implementation and Performance Evaluation Measures for the 2025 Restricted Share
Incentive Plan and the Resolution to Request the General Meeting of Shareholders to Authorise the Board of Directors to Handle
Matters Related to the Company’s 2025 Restricted Share Incentive Plan. For details please refer to Section VIII Note XV
Share-Based Payments. Pursuant to the aforementioned resolutions the Company has received a total of RMB 3999996.00 in
cash contributions from the two incentive recipients granted under this plan during the year. Of this amount RMB 264550.00 was
added to the registered capital (share capital) while RMB 3735446.00 was added to the capital reserve. The registration of the
grant of Class I restricted shares under the aforementioned restricted share incentive plan has been completed.
33. Capital reserve
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Capital premium
4403792844.6330639450.814434432295.44
(Share premium)
Other capital reserve -227.67 -227.67
Share-based payments
included in the capital 26889567.92 14436.89 26904004.81 0.00
reserve
Shareholding system
29640980.8829640980.88
transformation
Total 4460323165.76 30653887.70 26904004.81 4464073048.65
Other descriptions including description of changes for the period and reasons
In March 2025 all share-based payment plans granted in March 2020 had met the vesting conditions specified in the incentive
plan and the amounts previously recorded in other capital reserve were transferred in full to share premium.
34. Treasury shares
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Share repurchases 3999996.00 3999996.00
Total 3999996.00 3999996.00
Other descriptions including description of changes for the period and reasons
2292025 Annual Report of DR Corporation Limited
The Group has recognised treasury shares in connection with the repurchase obligations specified in the restricted share incentive
plan approved by the general meeting of shareholders in July 2025. For further details please refer to Note XV.
35. Other comprehensive income
Unit: RMB
Amount for the current period
Less: Less:
Amount Reclassific Reclassific
incurred ation from ation from Profit Attributabl
Opening
Item before other other Less: attributable e to
Closing
balance income tax comprehen comprehen Income tax to the minority balance
for the sive sive expenses Company interests
current income to income to after tax after tax
period profit or retained
loss earnings
II. Other
comprehen
sive
income that 1933804.3 2174324.6 2174324.6 4108128.9
maybe 3 0 0 3
reclassified
to profit or
loss
Transl
ation
differences
of financial 1933804.3 2174324.6 2174324.6 4108128.9
statements 3 0 0 3
denominate
d in foreign
currencies
Total other
comprehen 1933804.3 2174324.6 2174324.6 4108128.9
sive 3 0 0 3
income
Other descriptions including adjustment to the transferred effective profit or loss arising from cash flow hedge to initially
recognised amount of the hedged item:
36. Surplus reserve
Unit: RMB
Item Opening balance Increase for the period Decrease for the period Closing balance
Statutory surplus
200005000.00200005000.00
reserve
Total 200005000.00 200005000.00
Description of surplus reserve including description of changes for the period and reasons:
According to the provisions of the Company Law and the Articles of Association of the company under the Group companies
under the Group appropriate 10% of the profit to the statutory surplus reserve. Where the accumulated amount of the surplus
reserve reaches 50% or more of the company's registered capital further appropriation is not required.
2302025 Annual Report of DR Corporation Limited
37. Retained profits
Unit: RMB
Item For the current period For the prior period
Balance at the beginning of the period
1261232334.241408207801.55
after adjustment
Add: Net profit attributable to
shareholders of the Company for the 139104912.36 53029532.69
current period
Dividends payable on ordinary
200005000.001200005000.00
shares
Balance at the end of the period 1200332246.60 1261232334.24
Note 1: On May 28 2025 the Group's shareholders' meeting passed the resolution on the profit distribution proposal for the year
2024 approving a cash dividend distribution of RMB 200005000.00 (equivalent to RMB 0.50 per share). Details of adjustment
to balance at the beginning of the period:
1) No balance adjustment of retained profits at the beginning of the period was made in relation to changes in the Accounting
Standard for Business Enterprises and other new regulations.
2) No balance adjustment of retained profits at the beginning of the period was made in relation to changes in accounting policies.
3) No balance adjustment of retained profits at the beginning of the period was made in relation to significant accounting error
correction.
4) No balance adjustment of retained profits at the beginning of the period was made in relation to changes in scope of business
combination involving enterprises under common control.
5) No balance adjustment of retained profits at the beginning of the period was made in relation to other adjustments.
Detailed description of using capital reserve to cover losses:
38. Operating income and operating costs
Unit: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Principal business 1503052226.80 495394235.70 1474288180.73 507787350.88
Other business 17071043.76 24250908.54 8134973.25 3831688.94
Total 1520123270.56 519645144.24 1482423153.98 511619039.82
The lower of the audited total profit net profit and net profit net of non-recurring profit or loss during the reporting period of the
Company is negative.□Yes?No
Disaggregation of operating income and operating costs:
Unit: RMB
Segment 1 Segment 2 Total
Category of
contracts Operating Operating Operating Operating Operating Operating Operating Operating
income costs income costs income costs income costs
Type of 1520123 51964514 15201232 51964514
business 270.56 4.24 70.56 4.24
2312025 Annual Report of DR Corporation Limited
Including:
Engagement
1134543332666141134543033266614
diamond
007.272.1607.272.16
rings
Wedding
3205764132714093205764913271409
diamond
93.046.203.046.20
rings
Other 4793272 30013997. 47932726. 30013997.accessories 6.49 34 49 34
Other 1707104 24250908. 17071043. 24250908.business 3.76 54 76 54
Classified by
1520123519645141520123251964514
region of
270.564.2470.564.24
operation
Including:
Chinese 1422301 48844229 14223019 48844229
mainland 917.72 0.85 17.72 0.85
978213531202853.97821352.31202853.
Overseas
2.84398439
Market or
customer
type
Including:
Type of
contract
Including:
Classified by
time of 1520123 51964514 15201232 51964514
goods 270.56 4.24 70.56 4.24
transfer
Including:
Revenue
recognised 1520123 51964514 15201232 51964514
at a point in 270.56 4.24 70.56 4.24
time
Classified by
contract
period
Including:
Classified by
1520123519645141520123251964514
sales
270.564.2470.564.24
channel
Including:
Self-
1520123519645141520123251964514
operated
270.564.2470.564.24
income
Total 1520123 51964514 15201232 51964514
2322025 Annual Report of DR Corporation Limited
270.564.2470.564.24
Information about the performance obligations:
Amount Type of quality
Nature of the
Time for assumed by the assurance
goods the
fulfilment of Significant Whether it is Company that provided by the
Item Company
performance payment terms the principal is expected to Company and
commits to
obligations be refunded to related
transfer
the customer obligations
The customer
has the right to
return the
product within
15 days after
receiving it so
Under normal
it is necessary
circumstances
to estimate the
goods are
return rate
At the time of delivered
based on the
Sales of goods product within 15-60 Jewelry Yes N/A
historical
delivery days after the
experience and
consumer has
data as well as
paid in advance
the sales
for the order.situation and
calculate the
provision for
return which is
detailed in Note
VIII 31.Other explanations
Under the self-operated business the customer completes the performance obligations when receiving the goods. Under normal
circumstances for directly-operated stores the goods are delivered within 30 days after receiving the contract price; for joint-
operated stores with malls and e-commerce stores the contract price is usually received within 15-60 days after delivery. The
customer has the right to return the product within 15 days after receiving it so it is necessary to estimate the return rate based on
the historical sales situation and calculate the provision for return which is detailed in Section VIII Note VII 31
Information relating to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue corresponding to the performance obligations that have been signed but
have not yet been fulfilled or completed was RMB116030178.26.Information about variable consideration in the contract:
Significant changes in the contract or significant transaction price adjustments
Unit: RMB
Item Accounting treatment Amount affected on revenue
Other descriptions:
39. Taxes and levies
Unit: RMB
2332025 Annual Report of DR Corporation Limited
Item Amount for the current period Amount for the prior period
Consumption tax 59980884.66 61508021.85
Urban maintenance and construction tax 6347121.77 7171221.55
Education surcharge 2607857.12 2831751.11
Land use tax 20409.84 1920.81
Tax for use of vehicles and vessels 4620.00 4620.00
Stamp tax 961959.77 1034422.82
Local education surcharge 1738594.00 1887832.82
Total 71661447.16 74439790.96
Other descriptions:
40. Administrative expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Wages or salaries 73965620.58 78533542.23
Input tax not deductible for intra-group
24973107.4615690635.54
transactions
Depreciation and amortisation 17766058.51 17977022.45
Professional agency service expenses 10442092.93 13125819.76
Office expenses 5956191.24 7576651.04
Travel expenses 2919037.17 2385856.01
Property management and utility
2801914.023319830.43
expenses
Share-based payment expenses 14436.89 358026.60
Others 4865642.15 4184466.97
Total 143704100.95 143151851.03
Other descriptions:
41. Selling expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Wages or salaries 293100953.42 329810093.39
Depreciation and amortisation 199701915.83 262083791.40
Brand building fee 99256730.92 72184571.36
Marketing fee 59016968.20 42304193.28
Property management and utility
37457655.6148649010.06
expenses
Variable rents excluded in the lease
13817406.447379903.15
liabilities
Platform service fees 12752282.74 10778038.87
Office expenses 10574343.22 9116013.61
Travel expenses 7280614.34 6726684.20
Courier expenses 2909054.71 1912739.59
Professional agency service expenses 2398288.46 8987195.21
Packaging expenses 778571.74 734607.81
2342025 Annual Report of DR Corporation Limited
Others 12516188.54 14925522.03
Total 751560974.17 815592363.96
Other descriptions:
42. Research and development expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Wages or salaries 13438801.75 16610005.06
Commissioned development service
325356.00777674.92
expenses
Depreciation and amortisation 333140.78 536909.46
Others 620013.51
Total 14717312.04 17924589.44
Other descriptions:
43. Finance expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Interest expenses 15080305.50 12534223.67
Less: Interest income 1258964.66 2694877.83
Exchange gains or losses 20672983.58 -9384356.03
Fee expenses 12062403.91 7794170.21
Total 46556728.33 8249160.02
Other descriptions:
44. Other income
Unit: RMB
Sources of generating other income Amount for the current period Amount for the prior period
Government grants related to routine
3185640.052792775.88
activities
VAT levied and refunded1 8864789.68 7740248.29
Tax benefits2 401734.60 1292758.89
Note 1: According to the Notice of the General Administration of Customs of the Ministry of Finance and the State Taxation
Administration on Adjusting the Relevant Tax Policies of the Diamond and Shanghai Diamond Exchange (Cai Shui [2006] No. 65)
polished diamonds imported through the customs declaration of the competent customs of the Diamond Exchange shall be levied
and refunded immediately if the actual VAT burden exceeds 4% at the import stage. Shanghai Darry a subsidiary of the Company
has the membership of the Shanghai Diamond Exchange and enjoys the tax treatment of immediate refund for the part of the
actual VAT burden in the import process exceeding 4% from January to October 2025.
2: According to the Announcement of the State Taxation Administration on Tax Collection and Administration Issues related to the
Exemption of VAT for Small-Scale Taxpayers (SATAnnouncement [2024] No. 19) small-scale taxpayers who engage in VAT
2352025 Annual Report of DR Corporation Limited
taxable sales with total monthly sales not exceeding RMB100000 (or with quarterly sales not exceeding RMB300000 if one
quarter is a tax period) are exempt from VAT. Some of the Company's branches are small-scale taxpayers and meet the above
standards and will be exempt from VAT in 2025.
45. Gains from changes in fair value
Unit: RMB
Source resulting in gains from changes in
Amount for the current period Amount for the prior period
fair values
Held-for-trading financial assets 167179244.33 164753847.22
Held-for-trading financial liabilities -41117511.19 -27376721.19
Other non-current financial assets 21016564.47 6120381.21
Total 147078297.61 143497507.24
Other descriptions:
46. Investment income
Unit: RMB
Item Amount for the current period Amount for the prior period
Income from long-term equity
-2381890.60
investments under equity method
Interest income earned during the
15367349.573401960.33
holding period of debt investment
Investment income from disposal of debt
7705706.5328043524.74
investments
Total 20691165.50 31445485.07
Other descriptions:
47. Impairment losses of credit
Unit: RMB
Item Amount for the current period Amount for the prior period
Bad debt losses of accounts receivable -387960.16 223733.50
Bad debt losses of lease deposit due
313407.461850080.61
within one year
Total -74552.70 2073814.11
Other descriptions:
48. Impairment losses of assets
Unit: RMB
2362025 Annual Report of DR Corporation Limited
Item Amount for the current period Amount for the prior period
I. Losses from decline in value of
inventories and losses from impairment 3254552.53 -15044437.14
of costs to fulfil a contract
II. Others -1567315.61 -15021106.74
Total 1687236.92 -30065543.88
Other descriptions:
The amount of RMB-1567315.61 for 2025 included RMB-160742.59 for losses on impairment of long-term prepaid expenses
RMB-422135.02 for losses on impairment of right-of-use assets and RMB-984438.00 for losses on impairment of other current
assets;
The amount of RMB-15021106.74 for 2024 included RMB-2621976.86 for losses on impairment of long-term prepaid expenses
and RMB-12399129.88 for losses on impairment of right-of-use assets.
49. Gains from disposal of assets
Unit: RMB
Source of gains from disposal of assets Amount for the current period Amount for the prior period
Gains or losses from disposal of long-
-583858.6610862835.63
term assets
50. Non-operating income
Unit: RMB
Amount included in non-
Item Amount for the current period Amount for the prior period recurring profit or loss for the
period
Compensation 794489.65 3043343.20 794489.65
Others 758454.96 640563.12 758454.96
Total 1552944.61 3683906.32 1552944.61
Other descriptions:
51. Non-operating expenses
Unit: RMB
Amount included in non-
Item Amount for the current period Amount for the prior period recurring profit or loss for the
period
Liquidated damages and late
5198682.301869451.745142173.73
fees
Others 1382305.16 621812.44 1382305.16
Total 6580987.46 2491264.18 6524478.89
Other descriptions:
2372025 Annual Report of DR Corporation Limited
52. Income tax expenses
(1) Statement of income tax expenses
Unit: RMB
Item Amount for the current period Amount for the prior period
Current tax expenses 37242876.66 27953667.10
Deferred tax expenses -27847815.20 1295682.33
Total 9395061.46 29249349.43
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
Item Amount for the current period
Total profit 148499973.82
Income tax expenses calculated based on statutory/applicable
37124993.46
tax rate
Effect of different tax rates applied by subsidiaries -17617698.17
Effect of adjustments to income taxes of prior periods 6367969.71
Effect of non-taxable income 513222.65
Effect of non-deductible costs expenses and losses 1794972.55
Effect of deductible losses for which no deferred tax assets are
-36594969.21
recognised in the prior period
Effect of deductible temporary differences or deductible losses
for which no deferred tax assets are recognised in the current 17800868.32
period
Effect of changes in tax rates on the opening balance of
5702.15
deferred income tax
Income tax expenses 9395061.46
Other descriptions:
The income tax of the Group has been calculated at the applicable rate on the estimated taxable income accessible in Chinese
mainland. Tax on taxable income accessible elsewhere has been calculated at the applicable rate for the countries/jurisdictions in
which the Group operates in accordance with existing laws interpretations and practices.
53. Other comprehensive income
Refer to Note VIII 35 for details.
54. Items in the cash flow statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Recovery of store renovation and other 6308356.56 9446516.92
2382025 Annual Report of DR Corporation Limited
deposits
Bank interest income 1258964.66 2694974.37
Government grants 3185640.05 2806714.26
Others 8102960.71 14666564.67
Total 18855921.98 29614770.22
Descriptions of other cash receipts relating to operating activities:
Other cash payments relating to operating activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Payment of rent property management
55722573.3656481135.28
and utility expenses
Payment of marketing expensesBrand
157165144.68133611656.88
Development Fee
Payment of office and travel expenses 26730185.97 20134492.74
Payment of courier expenses 7196102.91 8567114.39
Payment of packaging expenses 6647849.75 8030766.16
Payment of card processing fee 14589758.38 9428225.45
Payment of renovation and other deposits 4743449.69 3916260.25
Payment of consultation and testing
14463595.4621807860.98
expenses
Payment of e-commerce platform service
11942511.568506208.69
fee
Others 33848833.60 12537360.15
Total 333050005.36 283021080.97
Descriptions of other cash payments relating to operating activities:
(2) Cash relating to investing activities
Other cash receipts relating to investing activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Receipt of bid bond for construction
7810000.00
projects
Total 7810000.00
Cash receipts relating to significant investing activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Recovery of investments in bank WMPs 7046377256.52 6001616655.93
Recovery of investments in structured
250065708.19640000000.00
deposits
Total 7296442964.71 6641616655.93
Descriptions of other cash receipts relating to investing activities:
Other cash payments relating to investing activities
2392025 Annual Report of DR Corporation Limited
Unit: RMB
Item Amount for the current period Amount for the prior period
Payment of tender deposit for
6620000.00
construction projects
Total 6620000.00
Cash payments relating to significant investing activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Payment for investments in bank WMPs 6753570040.04 5943043366.22
Payment for investments in structured
160000000.00507422225.00
deposit
Total 6913570040.04 6450465591.22
Descriptions of other cash payments relating to investing activities:
(3) Cash relating to financing activities
Other cash receipts relating to financing activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Rental deposits returned 23578212.41 17473501.27
Withholding dividend tax 1516649.59 1234349.40
Total 25094862.00 18707850.67
Descriptions of other cash receipts relating to financing activities:
Other cash payments relating to financing activities
Unit: RMB
Item Amount for the current period Amount for the prior period
Fixed rent paid 167210668.10 240224136.72
Rental deposits paid 7695698.84 5315654.57
Withholding dividend tax 1516649.59 1234349.40
Total 176423016.53 246774140.69
Descriptions of other cash payments relating to financing activities:
Movements in liabilities arising from financing activities
?Applicable □Not applicable
Unit: RMB
Increase for the current period Decrease for the current period
Opening
Item
balance Cash Non-cash Cash Non-cash
Closing balance
movement movement movement movement
Short-term
339509472.61911158960.605049154.43465414688.50790302899.14
borrowings
Lease liabilities
176401022.39219212642.69167210668.1040596528.20187806468.78
(including lease
2402025 Annual Report of DR Corporation Limited
liabilities due
within one
year)
Dividends
200005000.00200005000.00
payable
Total 515910495.00 911158960.60 424266797.12 832630356.60 40596528.20 978109367.92
55. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Amount for the current period Amount for the prior period
1. Reconciliation of net profit to cash
flows from operating activities
Net profit 139104912.36 53029532.69
Add: Provision for impairment of
-1687236.9230065543.88
assets
Depreciation of fixed assets
depletion of oil and natural gas assets
4425251.516082889.93
and depreciation of bearer biological
assets
Depreciation of right-of-use
178832675.65226317546.27
assets
Amortisation of intangible assets 5501051.25 3607426.97
Amortisation of long-term
29042136.7244909904.06
prepaid expenses
Losses on disposals of fixed
assets intangible assets and other long- 583858.66 -10862835.63
term assets (Gains are indicated by “-”)
Losses on retirement of fixed
assets (Gains are indicated by “-”)
Losses from changes in fair value
-147078297.61-143497507.24
(Gains are indicated by "-")
Financial expenses (Gains are
33225934.611515908.93
indicated by "-")
Investment losses (Gains are
-20691165.50-31445485.07
indicated by "-")
Decrease in deferred tax assets
-28188953.582689417.74
(Increase is indicated by "-")
Increase in deferred tax liabilities
456380.65-1372114.95
(Decrease is indicated by "-")
Decrease in inventories (Increase
-245088265.3179485379.57
is indicated by "-")
Decrease in operating receivables
-53268903.4238006567.43
(Increase is indicated by "-")
Increase in operating payables
-170626809.4025146618.42
(Decrease is indicated by "-")
Others -1487968.00 -7522953.92
2412025 Annual Report of DR Corporation Limited
Net cash flow from operating
-276945398.33316155839.08
activities
2. Significant investing and financing
activities that do not involve cash
receipts and payments
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under finance leases
3. Net changes in cash and cash
equivalents:
Closing balance of cash 255432757.33 139786968.23
Less: Opening balance of cash 139786968.23 226963610.96
Add: Closing balance of cash
equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash
115645789.10-87176642.73
equivalents
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 255432757.33 139786968.23
Including: Cash on hand 216269.95 115321.08
Bank deposits that are readily
183950536.16136012273.29
available for payment
Other cash and bank balances that
71265951.223659373.86
are readily available for payment
III. Closing balance of cash and cash
255432757.33139786968.23
equivalents
(3) Cash and bank balances that do not belong to cash and cash equivalents
Unit: RMB
Reasons for not belonging to
Item Amount for the current period Amount for the prior period
cash and cash equivalents
Change of bank accounts type 18292.72 976.81 Freeze of bank accounts
Deposits for ETC and POS
2000.00 2000.00 Restriction on use
terminals
Total 20292.72 2976.81
Other descriptions:
2422025 Annual Report of DR Corporation Limited
56. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of foreign Closing balance of RMB
Item Exchange rate of translation
currency equivalent
Cash and bank balances 42691073.56
Including: USD 5139963.74 7.0288 36127777.14
EUR 625218.32 8.2355 5148985.47
HKD 1084296.28 0.9032 979358.09
MYR 3847.60 1.7319 6663.77
SGD 78461.00 5.4586 428287.21
AUD 0.40 4.6892 1.88
Accounts receivable 449014.49
Including: USD 55181.67 7.0288 387860.92
EUR 1520.43 8.2355 12521.50
HKD 53842.99 0.9032 48632.07
Long-term borrowings
Including: USD
EUR
HKD
Accounts payable 6225822.86
Including: USD 847652.43 7.0288 5957979.40
HKD 296542.88 0.9032 267843.46
Other payables 2485758.36
Including: HKD 1130106.71 0.9032 1020734.98
EUR 9028.73 8.2355 74356.11
USD 197852.73 7.0288 1390667.27
Other descriptions:
57. Leases
(1) The Company as lessee
?Applicable □Not applicable
Lease payments not included in the measurement of lease liabilities
?Applicable □Not applicable
(1) As lessee
Unit: RMB
Item 2025 2024
Interest expenses of lease
liabilities 4805902.91 6794614.55
2432025 Annual Report of DR Corporation Limited
Lease payments not
included in the
measurement of lease 13817406.44 7379903.15
liabilities
Cash outflows of fixed
lease payments 167210668.10 240224136.72
Total cash outflows
relating to leases 181028074.54 247604039.87
(2) Potential future cash outflows not included in the measurement of lease liabilities
The Group’s leased assets include buildings used in the course of it s operations; the lease terms for the buildings are typically 1 to
5 years. Lease contracts generally stipulate that the Group may not sublet the leased assets. A small number of lease contracts
contain provisions relating to renewal options termination options and variable rents.The Group's potential future cash flows not included in the measurement of lease liabilities mainly arise from variable lease
payments and risk exposures of leases that have been committed but not yet commenced.
(3) Variable lease payments
The Group's property leases contain variable lease payments clauses that are linked to sales generated from leased stores. These
clauses are used where possible in order to match lease payments with stores generating higher cash flows
As at 31 December 2025 the leasing status of the Group's buildings is as follows:
Unit: RMB
Item Number of stores and offices Fixed payments Variable payments Total payments
Fixed payments only 151 79196715.99 - 79196715.99
With variable
payments 194 88013952.11 13817406.44 101831358.55
Total 345 167210668.10 13817406.44 181028074.54
As at 31 December 2025 the Gorup has no lease contracts that have been entered into but not yet implemented.Expenses relating to short-term leases or leases of low-value assets accounted for adopting simplified approach
□Applicable?Not applicable
Situations involving sale and leaseback transactions
VIII. RESEARCHAND DEVELOPMENT EXPENDITURE
Unit: RMB
Item Amount for the current period Amount for the prior period
Wages and salaries 13438801.75 16610005.06
Commissioned development service
325356.00777674.92
expenses
Depreciation and amortisation 333140.78 536909.46
Others 620013.51
Total 14717312.04 17924589.44
Including: Expensed research and
14717312.0417924589.44
development expenditure
2442025 Annual Report of DR Corporation Limited
IX. CHANGES IN SCOPE OF CONSOLIDATION
1. Other reasons for changes in scope of consolidation
Description of changes in scope of consolidation caused by other reasons (e.g. establishment and liquidation of subsidiaries) and
their relevant conditions:
Name Purpose for the The way of changes in Impact on overallestablishment/cancellation scope of consolidation performance
DR Design (Shenzhen) Co. Ltd. Business needs Newly established Not significant
DARRY RING JEWELRY
(MALAYSIA) SDN.BHD. Business needs Newly established Not significant
Hangzhou DR True Love Jewelry Co.Ltd. Business adjustments Cancelled Not significant
Henan DR Jewelry Co. Ltd. Business adjustments Cancelled Not significant
X. INTERESTS IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Unit: RMB
Principal Shareholding proportion
Name of Registered Place of Nature of Acquisition
place of
subsidiary capital registration business Direct Indirect methodoperation
Store sales in
DRGROUP Hong Kong
30000000.0 Hong Kong Hong Kong Establishmen
COMPANY 1 and overseas 100.00%0 China China t
LIMITED loose stone
procurement
Member of
Shanghai
Diamond
Exchange
Shanghai
responsible
Darry Establishmen
5000000.00 Shanghai Shanghai for the 100.00%
Diamond t
procurement
Co. Ltd.and customs
declaration
of overseas
loose stone
Chongqing
Darry Store sales in Establishmen
4000000.00 Chongqing Chongqing 100.00%
Jewelry Co. Chongqing t
Ltd.Shenzhen
Love Only Information
25000000.0 Establishmen
AI Cloud Shenzhen Shenzhen technology 100.00%
0 t
Technology services
Co. Ltd.Couple Only Sub-brand Establishmen
5000000.00 Shenzhen Shenzhen 100.00%
(Shenzhen) cultivation t
2452025 Annual Report of DR Corporation Limited
Jewelry Co.Ltd.Supply chain
management
Shenzhen
R&D design
Darry
customised
Commercial 10000000.0 Establishmen
Shenzhen Shenzhen product 100.00%
Management 0 t
services and
Service Co.related
Ltd.supporting
services
DARRY
JEWELRY 1289000.00 Hong Kong Hong Kong Sub-brand Establishmen
2 100.00%(HK) China China cultivation t
LIMITED
Couple Only
Jewelry
10000000.0 Hong Kong Hong Kong Sub-brand Establishmen
Hong Kong 3 100.00%0 China China cultivation t
Company
Limited
1000000.00 Sales in Establishmen
DR Jewelry 4 France France 100.00%France t
He’er
Creative
Culture 10000000.0 Establishmen
Shenzhen Shenzhen planning 100.00%
(Shenzhen) 0 t
services
Co. Ltd.Haoduo Responsible
Diamond 60000000.0 for domestic Establishmen
Shenzhen Shenzhen 100.00%
(Shenzhen) 0 loose stone t
Co. Ltd. procurement
Xiamen DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Xiamen Xiamen 100.00%
Xiamen t
Ltd.Shenyang
Store sales in Establishmen
DR Jewelry 1000000.00 Shenyang Shenyang 100.00%
Shenyang t
Co. Ltd.Tianjin DR
Store sales in Establishmen
Jewelry Co. 5000000.00 Tianjin Tianjin 100.00%
Tianjin t
Ltd.Chengdu DR
Store sales in Establishmen
Jewelry Co. 5000000.00 Chengdu Chengdu 100.00%
Chengdu t
Ltd.Kunming DR
Store sales in Establishmen
Jewelry Co. 5000000.00 Kunming Kunming 100.00%
Kunming t
Ltd.Shanghai DR
Store sales in Establishmen
Jewelry Co. 3000000.00 Shanghai Shanghai 100.00%
Shanghai t
Ltd.Suzhou
Zhongzuan Store sales in Establishmen
3000000.00 Suzhou Suzhou 100.00%
DR Jewelry Suzhou t
Co. Ltd.Jinan DR
Store sales in Establishmen
Jewelry Co. 4000000.00 Jinan Jinan 100.00%
Jinan t
Ltd.Shenzhen Store sales in Establishmen
1000000.00 Shenzhen Shenzhen 100.00%
DR Jewelry Shenzhen t
2462025 Annual Report of DR Corporation Limited
Co. Ltd.Beijing
Zhongzuan Store sales in Establishmen
1000000.00 Beijing Beijing 100.00%
DR Jewelry Beijing t
Co. Ltd
Suzhou DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Suzhou Suzhou 100.00%
Suzhou t
Ltd.Shenyang
DR Jewelry Store sales in Establishmen
3000000.00 Shenyang Shenyang 100.00%
Accessories Shenyang t
Co. Ltd.Hangzhou
Store sales in Establishmen
DR Jewelry 5000000.00 Hangzhou Hangzhou 100.00%
Hangzhou t
Co. Ltd.Beijing DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Beijing Beijing 100.00%
Beijing t
Ltd.Wuhan
Zhongzuan Store sales in Establishmen
1000000.00 Wuhan Wuhan 100.00%
DR Jewelry Wuhan t
Co. Ltd.Xi'an DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Xi'an Xi'an 100.00%
Xi'an t
Ltd.Chengdu DR
True Love Store sales in Establishmen
1000000.00 Chengdu Chengdu 100.00%
Jewelry Co. Chengdu t
Ltd.Ningbo DR
Store sales in Establishmen
Jewelry Co. 5000000.00 Ningbo Ningbo 100.00%
Ningbo t
Ltd.Beijing
Huazuan DR Store sales in Establishmen
1000000.00 Beijing Beijing 100.00%
Jewelry Co. Beijing t
Ltd.Chongqing
Store sales in Establishmen
DR Jewelry 4000000.00 Chongqing Chongqing 100.00%
Chongqing t
Co. Ltd.Xi'an
Zhongzuan Store sales in Establishmen
3000000.00 Xi'an Xi'an 100.00%
DR Jewelry Xi'an t
Co. Ltd
Zhengzhou
Store sales in Establishmen
DR Jewelry 3000000.00 Zhengzhou Zhengzhou 100.00%
Zhengzhou t
Co. Ltd.Shenzhen
Store sales in Establishmen
DR Jewelry 1000000.00 Shenzhen Shenzhen 100.00%
Shenzhen t
Co. Ltd.Shenzhen
DR Jewelry Store sales in Establishmen
1000000.00 Shenzhen Shenzhen 100.00%
Ornament Shenzhen t
Co. Ltd.Changsha
Store sales in Establishmen
DR Jewelry 5000000.00 Changsha Changsha 100.00%
Changsha t
Co. Ltd.Shanghai DR 1000000.00 Shanghai Shanghai Store sales in 100.00% Establishmen
2472025 Annual Report of DR Corporation Limited
Jewelry Shanghai t
Ornament
Co. Ltd.Shanghai DR
Store sales in Establishmen
Jewelry Sales 1000000.00 Shanghai Shanghai 100.00%
Shanghai t
Co. Ltd.Xining DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Xining Xining 100.00%
Xining t
Ltd.Yinchuan DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Yinchuan Yinchuan 100.00%
Yinchuan t
Ltd.Jining DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Jining Jining 100.00%
Jining t
Ltd.Mianyang
Store sales in Establishmen
DR Jewelry 1000000.00 Mianyang Mianyang 100.00%
Mianyang t
Co. Ltd.Guiyang DR
Store sales in Establishmen
Jewelry Co. 1000000.00 Guiyang Guiyang 100.00%
Guiyang t
Ltd.Haoduo
Cutting and
Diamond
10000000.0 production of Establishmen
Zhizao Shenzhen Shenzhen 100.00%
0 rough t
(Shenzhen)
diamonds
Co. Ltd.He’er
Cultural and
Culture 150000000. Establishmen
Sanya Sanya creative 100.00%
(Hainan) Co. 00 t
services
Ltd.Shenzhen
DR Jewelry 10000000.0 Jewelry retail Establishmen
Shenzhen Shenzhen 100.00%
Sales Co. 0 business t
Ltd.Lifetime
Love
Wedding
Wedding 10000000.0 Establishmen
Shenzhen Shenzhen planning 100.00%
Planning 0 t
services
(Shenzhen)
Co. Ltd.Happy Love
Happiness
Psychology
and love
Research Establishmen
5000000.00 Shenzhen Shenzhen related 100.00%
Center t
research and
(Shenzhen)
consulting
Co. Ltd.Responsible
DR
for overseas
LUXURY 26838000.0 Establishmen
5 Singapore Singapore investment 100.00%(SINGAPOR 0 t
and sales in
E) PTE.LTD.Singapore
DR Luxury
6 Investment EstablishmenNetherlands 100000.00 Netherland Netherland 100.00%
management t
Holding B.V.LOVEMON
Sales in Establishmen
T 1.007 Malaysia Malaysia 100.00%
Malaysia t
(MALAYSI
2482025 Annual Report of DR Corporation Limited
A)
SDN.BHD.DR Sales in the
Establishmen
LUXURY 75000.008 USA USA United State 100.00%
t
USA INC of America
Lifetime
Love
Wedding
Wedding Establishmen
5000000.00 Sanya Sanya planning 100.00%
Planning t
services
(Sanya) Co.Ltd.LOVEMON Overseas
T 9 Hong Kong Hong Kong loose Establishmen100000.00 100.00%
HONGKON China China diamond t
G LIMITED procurement
Garland
(Shenzhen) 10 Establishmen500000.00 Shenzhen Shenzhen Jewelry retail 100.00%
Jewelry Co. t
Ltd.Garland Sales in Establishmen
10000.0011 France France 100.00%
International France t
Note: 1 The currency is HKD.
2 The currency is USD.
3 The currency is HKD.
4 The currency is EUR.
5 The currency is SGD.
6 The currency is EUR.
7 The currency is MYR.
8 The currency is USD.
9 The currency is USD.
10 The currency is SGD.
11 The currency is EUR.
Description of the reason why the shareholding proportion held in subsidiary is different from the voting right proportion:
Not applicable
The basis for holding half or fewer of the voting rights but still controlling the investee and for holding more than half of the
voting rights without controlling the investee:
Not applicable
For significant structured entities included in the scope of consolidation the basis for control:
Not applicable
Basis for determining whether the Company is an agent or a principal:
2492025 Annual Report of DR Corporation Limited
Not applicable
Other descriptions:
2. Interests in joint ventures and associates
(1) Summarised financial information of insignificant joint ventures and associates
Unit: RMB
Closing balance/Amount for the current Opening balance/Amount for the prior
period period
Joint ventures:
Total of the following calculated based
on shareholding proportion
Associates:
Total carrying amount of investments 38818109.40
Total of the following calculated based
on shareholding proportion
--Net profit -2381890.60
--Total comprehensive income -2381890.60
Other descriptions:
As at 31 December 2025 there is no significant limitations over the ability of associates to transfer funds to the Group.XI. GOVERNMENT GRANTS
1. Government grants recognised according to amounts receivable at the end of the reporting period
□Applicable?Not applicable
Reasons for failing to receive the estimated amount of government grants at the estimated time point
□Applicable?Not applicable
2. Items of liabilities related to government grants
□Applicable?Not applicable
3. Government grants included in profit or loss for the period
?Applicable □Not applicable
Unit: RMB
Accounts Amount for the current period Amount for the prior period
Government grants related to income
3185640.052792775.88
which are included in other income
VAT refund upon collection 8864789.68 7740248.29
Total 12050429.73 10533024.17
2502025 Annual Report of DR Corporation Limited
Other descriptions
XII. RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS
1. Various risks arising from financial instruments
The Group's major financial instruments include cash and bank balances held-for-trading financial assets accounts receivable
other receivables non-current assets due within one year WMPs in other current assets debt investments other non-current
financial assets other non-current assets borrowings held-for-trading financial liabilities notes payable accounts payable other
payables lease liabilities etc. The Group's financial instruments as at the end of the year are as follows. Risks associated with
these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors
these exposures to ensure the risks are monitored at a certain level.Unit: RMB
Financial assets 31 December 2025 31 December 2024
Measured at FVTPL
Held-for-trading financial assets 4614532944.58 4579301487.22
Other non-current financial assets 309215157.75 403675066.37
Measured at amortised cost
Cash and bank balances 255453050.05 139789945.04
Accounts receivable 76231588.58 80913074.97
Other receivables 6849519.33 5861059.14
Non-current assets due within one year 629841781.93 433485362.17
Other current assets (WMPs with fixed income) 87285227.42 150009254.44
Debt investments 20913414.28 569885924.01
Other non-current assets 23637116.29 22796044.75
Financial liabilities
Measured at FVTPL
Held-for-trading financial liabilities 144722831.86
Measured at amortised cost
Short-term borrowings 790302899.14 339509472.61
Notes payable 73961196.53 32833149.16
Accounts payable 35318002.01 31342378.26
Other payables 57528339.01 284488227.25
Non-current liabilities due within one year 117123268.18 118680935.15
Lease liabilities 70683200.60 57720087.24
The Group adopts sensitivity analysis technique to analyse how the profit or loss for the period and shareholders' equity would
have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely that risk variables will change in
2512025 Annual Report of DR Corporation Limited
an isolated manner and the interdependence among risk variables will have significant effect on the amount ultimately influenced
by the changes in a single risk variable the following are based on the assumption that the change in each risk variable is on a
stand-alone basis.Risk management objectives policies and procedures and changes in the year
The Group's risk management objectives are to achieve a proper balance between risks and yield minimise the adverse impacts of
risks on the Group's operation performance and maximise the benefits of the shareholders and other stakeholders. Based on these
risk management objectives the Group's basic risk management strategy is to mitigate risks associated with financial instruments
through appropriate diversified investments and business portfolios and to reduce concentration risks on certain counterparties by
establishing corresponding risk management policies.
1.1. Market risk
1.1.1. Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure to the currency
risk is primarily associated with USD. Except for part of several subsidiaries' purchases and sales are denominated in foreign
currency the Group's other principal activities are denominated and settled in RMB. As at 31 December 2025 the balance of the
Group's assets and liabilities are both denominated in RMB except that the assets set out below are denominated in USD. Currency
risk arising from the assets and liabilities denominated in foreign currencies may have impact on the Group's operation
performance.Unit: RMB
Item 31 December 2025 31 December 2024
Cash and bank balances
USD 36127777.14 29525678.44
Accounts receivable
USD 387860.92 20632984.35
Accounts payable
USD 5957979.40 320249.91
Other payables
USD 1390667.27 1493113.99
Sensitivity analysis on currency risk
The Group has not conducted foreign exchange hedging. The assumption for the sensitivity analysis on currency risk is that all
hedges of net investments in foreign operations and the cash flow hedges are highly effective. On the basis of the above
assumption where all other variables are held constant the reasonably possible changes in the foreign exchange rate may have the
following pre-tax effect on the profit or loss for the period and shareholders' equity:
Unit: RMB
20252024
Item Changes in exchange rate Effect on Effect on Effect on
profits shareholders'
Effect on
profits shareholders'equity equity
US Depreciation by 3% of RMB against 875009.74 875009.74 1450358.97 1450358.97
D USD
US Appreciation by 3% of RMB against -875009.74 -875009.74 -1450358.97 -1450358.97
D USD
1.1.2. Interest rate risk: risk of changes in cash flows
2522025 Annual Report of DR Corporation Limited
The Group's exposure to changes in cash flows from financial instruments due to changes in interest rates relates primarily to
variable-rate bank borrowings (see Section VIII Note VII 20 for details). The Group closely monitors the effects of changes in the
interest rates on the Group's interest rate risk exposures. The Group's policy is to keep its borrowings at floating interest rates and
currently there is no other arrangements such as interest rate swaps.Sensitivity analysis on interest rate risk
Where all other variables are held constant reasonably possible changes in the interest rate may have the following pre-tax effect
on the profit or loss for the year and shareholders' equity:
Unit: RMB
20252024
Item Changes in interest rate Effect on Effect on
Effect on profits shareholders' Effect on profits shareholders'
equity equity
Bank borrowings with 50 BP increase in interest -725000.00 -725000.00 -85000.00 -85000.00
floating interest rates rate
Bank borrowings with 50 BP decrease in interest 725000.00 725000.00 85000.00 85000.00
floating interest rates rate
1.1.3. Other price risk
The Group’s price risk arises primarily from changes in fair value of held-for-trading financial assets at FVTPL other non-current
financial assets and held-for-trading financial liabilities at FVTPL. The Group manages the risk by holding investment portfolios
with various risks.Under the assumption that all other variables are held constant a 5% increase or decrease in fair value of held-for-trading financial
assets (including other non-current financial assets) and held-for-trading financial liabilities (based on the carrying amount as at
the balance sheet date) would result in a corresponding increase or decrease of RMB246187405.12 in the Group’s profit or loss
before tax and shareholders' equity for the period (31 December 2024: approximately RMB241912686.09).
1.2. Credit risk
As at 31 December 2025 the Group's maximum exposure to credit risk which will cause a credit loss to the Group due to failure to
discharge an obligation by the counterparties is arising from cash and bank balances held-for-trading financial assets accounts
receivable other receivables other current assets (fixed income WMPs) debt investments etc. At the balance sheet date the
carrying amount of the Group's financial assets has represented its maximum credit risk exposure. Management will continue to
monitor these credit risk exposures. In order to minimise the credit risk the Group has specialists responsible for determination of
credit limits credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In
addition the Group reviews the recoverable amount of financial assets at each balance sheet date to ensure that adequate credit
loss allowances are made for corresponding financial assets. In this regard the management of the Group considers that the
Group's credit risk is significantly reduced.The credit risk on cash and bank balances and held-for-trading financial assets is limited because the counterparties of these
financial instruments are banks with a good reputation and high credit ratings.As the Group conducts business only with recognised and reputable third parties no collateral is required. Credit risk
concentration is managed by sector. The Group has certain credit risk concentration. As at 31 December 2025 63.93% of its trade
receivables (31 December 2024: 62.78%) relates to stores which collect payments on behalf of the Group.
1.3. Liquidity risk
The Group's objective is to utilise a variety of financing methods to maintain a balance between the continuity and flexibility of
financing. The Group finances its operations through funds generated from both operations and borrowings.The following is the maturity analysis for financial liabilities held by the Group which is based on undiscounted remaining
contractual obligations:
2532025 Annual Report of DR Corporation Limited
Unit: RMB
Item Within 1 year 1-3 years 3-5 years Over 5 years Total
Short-term borrowings 792122899.14 792122899.14
Notes payable 73961196.53 73961196.53
Accounts payable 35318002.01 35318002.01
Other payables 57528339.01 57528339.01
Non-current liabilities due within one year 120541671.57 120541671.57
Lease liabilities 72560305.85 72560305.85
XIII. DISCLOSURE OF FAIR VALUE
1. Closing fair value of assets and liabilities measured at fair value
Unit: RMB
Closing fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous fair value
--------
measurement
(1) Held-for-trading
4923748102.334923748102.33
financial assets
1. Financial assets at
4923748102.334923748102.33
FVTPL
(1) Other non-current
309215157.75309215157.75
financial assets
(2) Held-for-trading
4614532944.584614532944.58
financial assets
Total assets measured
continuously at fair 4923748102.33 4923748102.33
value
II. Non-continuous fair
--------
value measurement
2. Qualitative and quantitative information about valuation techniques and significant inputs used for
recurring and non-recurring Level 2 fair value measurements
For wealth management products measured at fair value with fair value changes recognized in current profit or loss the fair value
is determined by discounting the expected future cash flows which are estimated based on the market-obtainable expected yield
rate using an interest rate derived from the best estimate of the expected risk level.
3. Fair value of financial assets and financial liabilities not measured at fair value
The management of the Group considers that the carrying amounts of financial assets and financial liabilities measured at
amortised cost in the financial statements approximate their fair values.
2542025 Annual Report of DR Corporation Limited
XIV. RELATED PARTYRELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of the Proportion of the
Name of the parent Place of Company's Company's voting
Nature of business Registered capital
company registration ownership interest power held by the
held by the parent parent
Business
management
consulting
DR Investment business
Zhuhai RMB50000000 85.44% 85.44%
(Zhuhai) Co. Ltd. information
consulting
investment
management etc.Description of the parent of the Company
The Company's ultimate controlling party is Lu Yiwen and Zhang Guotao.Other descriptions:
2. Subsidiaries of the Company
Details of subsidiaries of the Company are set out in NoteVIII. INTERESTS IN OTHER ENTITIES 1、 Interests in subsidiaries
3. Other related parties
Other related parties Relationship with the Company
Directors general managers and other senior management
Key management personnel of the Company
personnel of the Company
Other descriptions:
4. Related party transactions
Compensation for key management personnel
Unit: RMB
Item Amount for the current period Amount for the prior period
Compensation to key management
7527865.689833094.65
personnel
Including: Equity incentives 14436.89 245133.44
2552025 Annual Report of DR Corporation Limited
XV. SHARE-BASED PAYMENTS
1. Overall information of share-based payments
?Applicable □Not applicable
Unit: RMB
Category of Exercised during the Unlocked during theGranted during the period Lapsed during the period
granting period period
object Quantity Amount Quantity Amount Quantity Amount Quantity Amount
Manageme 10666689. 2666672.3
715986.002071.2314436.89178996.50
nt 25 1
10666689.2666672.3
Total 715986.00 2071.23 14436.89 178996.50
251
Share options and other equity instruments outstanding at the end of the period
□Applicable?Not applicable
Other descriptions:
1. Share-based payment plans of 2019 and 2020On 20 November 2019 the Company held the second extraordinary general meeting of 2019 and approved the “DRCorporation Limited Equity Incentive Scheme” to grant 2412000 restricted shares of the Company to 12 incentive recipients
through Gongqingcheng Wendy No.1 Investment Management Partnership (Limited Partnership) and Gongqingcheng Wendy
No.2 Investment Management Partnership (Limited Partnership) with 20 November 2019 as the grant date. The grant price was
RMB1.67 per share. Gongqingcheng Wendy No.1 Investment Management Partnership (Limited Partnership) and Gongqingcheng
Wendy No.2 Investment Management Partnership (Limited Partnership) had set restrictive conditions namely the incentive
shares held by the incentive recipients would meet vesting conditions in accordance with the terms of the incentive scheme 5 years
after the grant date only and the Company’s shares held by the incentive recipients could not be transferred within 3 years from
the date of listing on the Shenzhen Stock Exchange.On 11 March 2020 the Company held the second extraordinary general meeting of 2020 and approved the amendment to the
equity incentive scheme “DR Corporation Limited Equity Incentive Scheme” which added that in the case that the incentive
recipients had left the Company within 5 years and the Company had been listed the incentive shares held by the incentive
recipients after years of service since the grant date would meet vesting conditions. At the same time pursuant to the revised
equity incentive scheme the Group granted 810000 new restricted shares to 2 incentive recipients through Gongqingcheng
Wendy No. 1 Investment Management Partnership (Limited Partnership) on 11 March 2020 at a grant price of RMB1.67 per share.Based on the fair value of restricted shares at the time of grant and the estimated vesting commencement date and turnover
rate assessed by the valuation firm engaged by the Company according to the income method the total share-based payments to be
recognised in 2025 are RMB14436.89 (2024: RMB358026.60).
2. 2025 Restricted Share Incentive Plan
On 26 August and 27 August 2025 the Company held the fourth meeting of the Compensation and Assessment Committee of
the second Board of Directors and the fifteenth meeting of the second Board of Directors respectively approving the "Proposal on the
First Grant of Restricted Shares to Incentive Recipients of the 2025 Restricted Share Incentive Plan". The date 28 August 2025 was
determined as the first grant date and a total of 716000 restricted shares were granted to 27 eligible incentive recipients for the first
time. Specifically 264600 Class I restricted shares were granted to 2 incentive recipients for the first time and 451400 Class II
restricted shares were granted to 25 incentive recipients for the first time. The grant price is RMB15.12 per share. The incentive plan
consists of two parts: Class I restricted share incentive plan and Class II restricted share incentive plan. The source of shares is the
Company’s A-share common stock issued to the incentive recipients.
2562025 Annual Report of DR Corporation Limited
The locking periods for Class I restricted shares under the first grant of the incentive plan are respectively 12 24 36 and 48
months from completion of registration for the grant. Incentive recipients shall not transfer the Class I restricted shares received in this
incentive plan or use them to secure or repay debts before they are unlocked for trading. Upon expiration of the locking period the
Company would handle the unlocking matters for incentive recipients who satisfy the unlocking conditions. Class I restricted shares
held by incentive recipients who fail to satisfy the unlocking conditions will be bought back and cancelled by the Company.The assessment period for restricted shares under the first grant of the incentive plan is 4 years from 2025 to 2028 with
assessment done once in each of these accounting years. The achievement of the performance assessment goal by the incentive
recipients is one of the unlocking conditions for the year. The performance assessment goal of each year for the first grant of the
incentive plan is set out in the table below:
Unlocking period Assessmentyear Performance assessment goal
On the basis of operating income of 2024 growth rate for operating income
First unlocking period 2025 of 2025 > 10% and net profit (net of non-recurring profit or loss) > RMB36
million
On the basis of operating income of 2024 growth rate for operating income
Second unlocking period 2026 of 2026 > 20% and net profit (net of non-recurring profit or loss) > RMB100
million
On the basis of operating income of 2024 growth rate for operating income
Third unlocking period 2027 of 2027 > 33% and net profit (net of non-recurring profit or loss) > RMB150
million
On the basis of operating income of 2024 growth rate for operating income
Fourth unlocking period 2028 of 2028 > 46% and net profit (net of non-recurring profit or loss) > RMB200
million
Since the Group’s operating income in 2025 only increased by 2.54% compared to same period of prior year and its net profit
(net of non-recurring profit or loss) is RMB4208100 not reaching the performance assessment goal and the management of the
Company estimates that the possibility of reaching the performance assessment goal in the remaining assessment years is low no
share-based payment is recognised in the year.
2. Equity-settled share-based payments
?Applicable □Not applicable
Unit: RMB
The method of determining the fair value of equity instruments
Income method
at the grant date
Significant parameters for determining the fair value of equity Expected income growth rate perpetual growth rate and
instruments at the grant date discount rate
Basis of determining the number of equity instruments to be Best estimate of the number of equity instruments expected to
vested be vested at the end of the year
Reasons for the significant difference between the estimate in
None
the current period and that in the prior period
Cumulative amount of equity-settled share-based payments
26904004.81
included in capital reserve
Total expenses recognised arising from equity-settled share-
14436.89
based payments in the current period
Other descriptions:
2572025 Annual Report of DR Corporation Limited
3. Share-based payments in the current period
?Applicable □Not applicable
Unit: RMB
Category of granting object Equity-settled share-based payments Cash-settled share-based payments
Management 14436.89
Total 14436.89
Other descriptions:
XVI. EVENTS SUBSEQUENT TO THE BALANCE SHEET DATE
1. Significant non-adjusting events
Unit: RMB
Affected amount in financial
Reasons why the affected
Item Contents position and results of
amount cannot be estimated
operations
In 2025 the Group
contributed a total of RMB40
million to Palace Jewelry and
obtained 40.00% equity
interest in Palace Jewelry. On
15 January 2026 pursuant to
the resolution of the
shareholders’ meeting of
Palace Jewelry all
shareholders unanimously
agreed that the Group would
make an additional
contribution of RMB22.45
million to Palace Jewelry
Significant investments 22450000.00
whilst the other two
shareholders waived their pre-
emptive rights in the
additional contribution.Following the additional
contribution the Group’s
shareholding proportion in
Palace Jewelry changed to
51.00% becoming its
controlling shareholder.Palace Jewelry was included
in the scope of the Group’s
consolidated financial
statements in January 2026.
2. Profit distribution
Proposed distribution of dividends for each 10 shares (RMB) 5
Proposed distribution of bonus shares for each 10 shares 0
2582025 Annual Report of DR Corporation Limited
(Shares)
Proposed additional transfer for each 10 shares (Shares) 0
Approved distribution of dividends for each 10 shares (RMB) 5
Approved distribution of bonus shares for each 10 shares
0
(Shares)
Approved additional transfer for each 10 shares (Shares) 0
On the basis of the Company’s total share capital amounting to
400274550 shares as at 31 December 2025 the Company
plans to distribute RMB5.00 (tax inclusive) for each 10 shares
to all the shareholders representing distribution of cash
Profit distribution plan dividends totalling RMB200137275.00 (tax inclusive). No
bonus shares will be distributed. No capital reserve will be
transferred to paid-in capital. The profit distribution proposal
still needs to be reviewed and approved by the company's
shareholders' meeting.XVII. OTHER SIGNIFICANT EVENTS
1. Segment information
(1) Determination basis and accounting policies of reporting segments
Considering the internal structure management requirements and internal reporting system and other aspects the management of
the Group believes that the businesses of the companies in the Group share obvious similarities all of which are in the jewelry
retail industry. Management regularly reviews the Group's overall financial statements for resource allocation and performance
evaluation and according to Accounting Standard for Business Enterprises No. 35-Segment Reporting the Group's operations
constitute a single operating segment therefore no segment reporting information is prepared.
(2) Other descriptions
(1) Information about products and services
External income
Unit: RMB
Item 2025 2024
Engagement diamond rings 1134543007.27 1135857760.62
Wedding diamond rings 320576493.04 296072560.15
Other accessories 47932726.49 42357859.96
Other operating activities 17071043.76 8134973.25
Total 1520123270.56 1482423153.98
(2) Geographic information
The Group's geographical division is relatively concentrated and 93.56% of the external income was attributable to the Chinese
mainland region in 2025 (2024: 96.57%); As at 31 December 2025 72.60% of non-current assets were attributable to the Chinese
mainland region (31 December 2024: 99.49%).
(3) Information about major customers
The Group's customers are relatively diverse and there is no single customer with more than 10% of the Group's transaction
volume.
2592025 Annual Report of DR Corporation Limited
2. Others
Comparative data of same period: To be in line with the presentation method of the financial statements
the Group made reclassification adjustments to some comparative data.XVIII. NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Accounts receivable
(1) Disclosures by ageing:
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Ageing
period of the period
Within 1 year (inclusive) 223093694.74 160770623.58
1-2 years 29227.15 175105.16
Total 223122921.89 160945728.74
(2) Disclosure of methods for determining allowances for bad debts by category
Unit: RMB
Closing balance Opening balance
Gross carrying Allowances for bad Gross carrying Allowances for bad
Categor
amount debts amount debts
y Carrying Carrying
Proporti Proporti amount Proporti Proporti amount
Amount Amount Amount Amount
on on on on
Includ
ing:
Account
s
receivab
le for
which
allowanc
223122276037220362160945277396158171
es for 100.00% 1.24% 100.00% 1.72%
921.893.05548.84728.744.30764.44
bad
debts are
made on
a
portfolio
basis
Includ
ing:
Amount
s due 151887 151887 920612 920612
68.07%57.20%
from 653.11 653.11 58.26 58.26
subsidiar
2602025 Annual Report of DR Corporation Limited
ies
Amount
s due
from
POS
terminal 267652 267652 226148 226148
12.00%14.05%
s and e- 70.62 70.62 43.45 43.45
commer
ce
platform
s
Amount
s due
444699276037417096462696277396434956
from 19.93% 6.21% 28.75% 6.00%
98.163.0525.1127.034.3062.73
shoppin
g malls
223122276037220362160945277396158171
Total 100.00% 1.24% 100.00% 1.72%
921.893.05548.84728.744.30764.44
Allowances for bad debts made on a portfolio basis: RMB2760373.05
Unit: RMB
Closing balance
Name
Gross carrying amount Allowances for bad debts Proportion
Amounts due from
151887653.11
subsidiaries
Amounts due from POS
terminals and e-commerce 26765270.62
platforms
Amounts due from shopping
44469998.162760373.056.21%
malls
Total 223122921.89 2760373.05
Description of basis for determining a portfolio
In the case that allowances for bad debts of accounts receivable are made in accordance with ECL general model:
?Applicable□Not applicable
Stage 1 Stage 2 Stage 3
Allowances for bad
debts Life-time ECL Life-time ECL
Total
12-month ECL
(Not credit-impaired) (Credit-impaired)
Balance at 1 January
2773964.302773964.30
2025
Balance at 1 January
2025 made in the
current period
Provision 861007.77 861007.77
Reversal 874599.02 874599.02
Balance at 31
2760373.052760373.05
December 2025
Basis for the division of each stage and proportion of allowance for bad debts
2612025 Annual Report of DR Corporation Limited
Description of significant changes in gross carrying amount of accounts receivable with changes in allowances for bad debts in
this period:
(3) Allowances for bad debts provided recovered or reversed in the current period
Allowances for bad debts in the current period:
Unit: RMB
Changes for the current period
Opening
Category Recovery or Closing balancebalance Provision Write-off Others
reversal
Amounts due
from shopping 2773964.30 861007.77 874599.02 2760373.05
malls
Total 2773964.30 861007.77 874599.02 2760373.05
Including: significant recovery or reversal of allowances for bad debts in the current period:
Unit: RMB
The basis and
rationality of
Amount recovered or determining the
Name Reason for reversal Methods for recovery
reversed proportion for original
allowances for bad
debts
(4) Top five closing balances of accounts receivable and contract assets categorised by debtor
Unit: RMB
Closing balance of
Proportion of total allowances for bad
Closing balance of
Closing balance of closing balance of debts of accounts
Closing balance of accounts
Name accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
Company14 67359587.81 67359587.81 30.19%
Company15 40417709.13 40417709.13 18.11%
Company16 24579311.50 24579311.50 11.02%
Company17 12164387.43 12164387.43 5.45%
Company1 8754048.91 8754048.91 3.92%
Total 153275044.78 153275044.78 68.69%
2. Other receivables
Unit: RMB
Item Closing balance Opening balance
Dividends receivable 40000000.00
Other receivables 744899194.37 1074292359.51
Total 784899194.37 1074292359.51
2622025 Annual Report of DR Corporation Limited
(1) Dividends receivable
1) Category of dividends receivable
Unit: RMB
Item (or investee) Closing balance Opening balance
Shenzhen Darry Commercial
40000000.00
Management Service Co. Ltd.Total 40000000.00
(2) Other receivables
1) Other receivables categorised by nature
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Nature
period of the period
Amounts due from subsidiaries 740248031.35 1070228066.26
Advance payments of social insurances
2256310.282392220.30
and housing fund borne by employees
Temporary loans for employees 632943.64 234587.30
Others 1761909.10 3342485.65
Total 744899194.37 1076197359.51
2) Disclosures by ageing:
Unit: RMB
Gross carrying amount at the end of the Gross carrying amount at the beginning
Ageing
period of the period
Within 1 year (inclusive) 743426235.29 1074216213.62
1-2 years 1472959.08 76145.89
Over 3 years 1905000.00
3-4 years 1905000.00
Total 744899194.37 1076197359.51
3) Disclosure of methods for determining allowances for bad debts by category
Unit: RMB
Closing balance Opening balance
Gross carrying Allowances for bad Gross carrying Allowances for bad
Categor
amount debts Carrying amount debtsy Carrying
Proporti Proporti amount Proporti Proporti amount
Amount Amount Amount Amount
on on on on
Allowan
ces for
bad 190500 1905000.18% 100.00% 0.00
debts 0.00 0.00
made on
an
2632025 Annual Report of DR Corporation Limited
individu
al basis
Including:
Allowan
ces for
bad
debts 744899 744899 107429 107429
100.00%99.82%
made on 194.37 194.37 2359.51 2359.51
a
portfolio
basis
744899744899107619190500107429
Total 100.00% 100.00% 0.18%
194.37194.377359.510.002359.51
Allowances for bad debts made on an individual basis: RMB0
Unit: RMB
Opening balance Closing balance
Name Gross carrying Allowances for Gross carrying Allowances for
Proportion Reason
amount bad debts amount bad debts
It’s estimated
that the amount
cannot be
recovered due
Company 13 1905000.00 1905000.00
to deterioration
of the
counterparty’s
operations.Total 1905000.00 1905000.00
Allowances for bad debts made in accordance with ECL general model:
Unit: RMB
Stage 1 Stage 2 Stage 3
Allowances for bad
Total
debts Life-time ECL (not Life-time ECL (credit-12-month ECL
credit-impaired) impaired)
Balance at 1 January
1905000.001905000.00
2025
Balance at 1 January
2025 made in the
current period
Write-off 1905000.00 1905000.00
Balance at 31
0.000.00
December 2025
Basis for the division of each stage and proportion of allowance for bad debts
Changes in gross carrying amount with significant changes in loss allowances in the current period
□Applicable?Not applicable
2642025 Annual Report of DR Corporation Limited
4) Allowances for bad debts provided recovered or reversed in the current period
Allowances for bad debts made in the current period:
Unit: RMB
Changes for the current period
Opening
Category Recovery or Closing balancebalance Provision Write-off Others
reversal
Allowance for
bad debts of
1905000.001905000.000.00
other
receivables
Total 1905000.00 1905000.00 0.00
Including: material reversal or recovery of allowances for bad debts in the current period:
Unit: RMB
The basis and
rationality of
Amount recovered or determining the
Name Reason for reversal Methods for recovery
reversed proportion for original
allowances for bad
debts
There was no write-off of other receivables in a large amount in this year.
5) Actual write-off of other receivables in the current period
Unit: RMB
Item Write-off amount
Company 13 1905000.00
Including: significant write-off of other receivables in the current period:
Unit: RMB
Amount arises
Write-off
Nature of other Reason for write- from related-party
Name Write-off amount procedure
receivables off transactions or
performed
not
Description of write-off of other receivables
6) Top five closing balances of other receivables categorised by debtor
Unit: RMB
Proportion of total
Opening balance
Nature of the other receivable at
Name Closing balance Ageing of allowances for
amount the end of the
bad debts
current period
2652025 Annual Report of DR Corporation Limited
DR Group Amounts due from
667559267.53 Within 1 year 89.62%
Company Limited subsidiaries
Xi'an DEA
Amounts due from
Jewelry Co. 11414583.39 Within 1 year 1.53%
subsidiaries
Ltd.Beijing
Huazundia Amounts due from
9160228.78 Within 1 year 1.23%
Jewelry Co. subsidiaries
Ltd.Wuhan
Zhongchuandi'a Amounts due from
5776347.05 Within 1 year 0.78%
Jewelry Co. subsidiaries
Ltd.Kabo'ouli
(Shenzhen) Amounts due from
4064500.00 Within 1 year 0.55%
Jewelry Co. subsidiaries
Ltd.Total 697974926.75 93.71%
3. Long-term equity investments
Unit: RMB
Closing balance Opening balance
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Investments in
340935477.77340935477.77346935477.77346935477.77
subsidiaries
Investments in
associates and 38818109.40 38818109.40
joint ventures
Total 379753587.17 379753587.17 346935477.77 346935477.77
(1) Investments in subsidiaries
Unit: RMB
Opening Changes for the current period Closing
Opening Closing
balance of balance of
balance balance
Investee provision Reduction ProvisionAdditional provision(carrying in for Others (carryingfor for
amount) investment
impairment investment impairment
amount)
impairment
Shanghai
Darry 5000000.0 5000000.0
Diamond 0 0
Co. Ltd.Chongqing
Darry 4000000.0 4000000.0
Jewelry 0 0
Co. Ltd.Shenzhen
25000000.25000000.
Love Only
0000
AI Cloud
2662025 Annual Report of DR Corporation Limited
Technology
Co. Ltd.Couple
Only
5000000.05000000.0
(Shenzhen)
00
Jewelry
Co. Ltd.Shenzhen
Darry
Commercia
10000000.10000000.
l
0000
Manageme
nt Service
Co. Ltd.He’er
Culture 9935477.7 9935477.7
(Shenzhen) 7 7
Co. Ltd.Haoduo
Diamond 60000000. 60000000.(Shenzhen) 00 00
Co. Ltd.He’er
Culture 15000000 15000000
(Hainan) 0.00 0.00
Co. Ltd.Other 78000000. 6000000.0 72000000.subsidiaries 00 0 00
346935476000000.034093547
Total
7.7707.77
(2) Investments in associates and joint ventures
Unit: RMB
Changes for the current period
Openi Openi Invest Closin Closin
ng ng ment Other g g
balanc balanc profit compr Cash balanc balanc
Investe e e of Additi Reduct or loss ehensi Other divide Provisi e e of
e (carryi provisi onal ion in recogn ve equity nds or on for Others (carryi provisi
ng on for invest invest ised incom change profit impair ng on for
amoun impair ment ment under e s declare ment amoun impair
t) ment equity adjust d t) ment
metho ments
d
I. Joint venture
II. Associates
Palace
(Beijin
40000-37983
g)
000.02016553.6
Jewelr
0446.373
y Co.Ltd.Airike 1200 - 83455
(Shenz 000.00 36544 5.77
2672025 Annual Report of DR Corporation Limited
hen) 4.23
Jewelr
y Co.Ltd.
41200-38818
Subtot
000.02381109.4
al
0890.600
41200-38818
Total 000.0 2381 109.4
0890.600
The recoverable amount is the net amount of fair value less costs to disposal.□Applicable?Not applicable
Recoverable amount is determined according to the present value of expected future cash flows
□Applicable?Not applicable
Reasons for obvious differences between the foregoing information and information or external information used for impairment
testing in prior years
Reasons for obvious differences between the information used for impairment testing in prior years by the Company and actual
conditions in those years
4. Operating income and operating costs
Unit: RMB
Amount for the current period Amount for the prior period
Item
Income Cost Income Cost
Principal operating
1316587529.65476247403.651330465611.87501043066.39
activities
Other operating
14722800.6123627566.816759220.423374144.86
activities
Total 1331310330.26 499874970.46 1337224832.29 504417211.25
Breakdown of operating income and operating costs:
Unit: RMB
Segment 1 Segment 2 Total
Category of
contracts Operating Operating Operating Operating Operating Operating Operating Operating
income costs income costs income costs income costs
Type of
business
Including:
Classified
by region
of
operation
Including:
2682025 Annual Report of DR Corporation Limited
Market or
customer
type
Including:
Type of
contract
Including:
Classified
by time of
goods
transfer
Including:
Classified
by contract
term
Including:
Classified
by sales
channel
Including:
Total
Information about performance obligations:
Amount Type of quality
Nature of the
Time for assumed by the assurance
goods the
fulfilment of Significant Whether it is Company that provided by the
Item Company
performance payment terms the principal is expected to Company and
commits to
obligations be refunded to related
transfer
the customer obligations
The customer
has the right to
Under normal
return the
circumstances
goods within 15
the Company
days after
delivers the
At the time receiving themgoods within
Sales of goods of product Jewelry Yes so it is N/A15-60 days
delivery necessary toafter the
estimate the
consumer has
return rate
paid in advance
based on the
for the order.historical sales
situation and
2692025 Annual Report of DR Corporation Limited
calculate the
provision for
return which is
detailed
inSection
VIII、Note
VII、31.Other descriptions
Under the self-operated model the performance obligation is completed when the customer receives the goods. Typically for
direct store operations goods are delivered within 30 days of receipt of the contract price; for associated stores in cooperation with
shopping malls and e-commerce platforms the contract price is typically received within 15-60 days of delivery of the goods. The
customer has the right to return the goods within 15 days after receiving them so it is necessary to estimate the return rate based
on the historical sales situation and calculate the provision for return which is detailed in Section VIII、Note VII、31.Information related to transaction price allocated to the remaining performance obligations:
At the end of the reporting period the amount of revenue corresponding to the performance obligations that have been contracted
but have not yet been fulfilled or completely fulfilled is RMB81428085.67。.Significant changes in contracts or material adjustments to transaction prices
Unit: RMB
Item Accounting treatment Effect on revenue
Other descriptions:
5. Investment income
Unit: RMB
Item Amount for the current period Amount for the prior period
Income from long-term equity
119073918.67263919912.52
investments under cost method
Income from long-term equity
-2381890.60
investments under equity method
Dividend income from debt investments
13641744.89439638.52
during the holding period
Investment income from disposal of debt
5387490.7024713277.12
investments
Total 135721263.66 289072828.16
XIX. SUPPLEMENTAL INFORMATION
1. Breakdown of non-recurring profit or loss for the current period
?Applicable □Not applicable
Unit: RMB
Item Amount Description
Gains or losses on disposal of non- 96641.12
2702025 Annual Report of DR Corporation Limited
current assets
Government grants recognised in profit
or loss (other than those closely related
to the Company's business in line with
the national regulations available under 3185640.05
established standards and having a
continuous impact on the Company's
profit or loss)
Gains or losses on changes in the fair
value of financial assets and financial
Gains or losses on changes in fair value
liabilities held by non-financial
of held-for-trading financial assets and
enterprises and gains or losses on
147797640.311 investment income from wealth
disposal of financial assets and financial
management products during the
liabilities other than those used in the
reporting period.effective hedging activities relating to the
Company's normal businesses
Reversal of provision for impairment of
receivables that are tested for impairment 262349.01
loss individually
Other non-operating income and
-4971534.28
expenses other than the above
Less: Income tax effects 11473890.01
Total 134896846.20 --
Note 1: (1) In calculating this amount financial income of RMB 15367349.57 derived from investments in time deposits and
large-denomination certificates of deposit has been included in non-recurring gains and losses. The management of Dear Co. Ltd.(hereinafter referred to as "Dear") believes that although certain financial income is related to normal operating activities due to
its special nature it could likely affect users' assessment of Dear's operating performance and profitability; therefore such income
is classified as non-recurring gains and losses. (2) In calculating this amount foreign exchange losses of RMB 22353713.40
arising from foreign currency receivables/payables specifically used for purchasing financial products have been classified
together with the corresponding financial product returns as non-recurring gains and losses.Details of other profit or loss that
meets the definition of non-recurring profit or loss:
□Applicable?Not applicable
The Company has no other specific circumstances that meet the definition of non-recurring profit and loss items.Description of defining the non-recurring profit and loss items listed in "Explanatory Announcement on Information Disclosure for
Companies Offering Securities to the Public No. 1: Non-recurring Profit or Loss" as recurring profit and loss items
?Applicable □Not applicable
Item Amount (RMB) Reason
Government grants closely related to the
Company's business in line with the
VAT refund upon collection for the actual
8864789.68 national regulations available under
tax on diamond imports exceeding 4%
established standards and having a
impact on the Company's profit or loss
Government grants closely related to the
VAT exemption for small-scale taxpayers
Company's business in line with the
with monthly sales not exceeding
national regulations available under
RMB100000 (or RMB300000 for 401734.60
established standards and having a
quarterly sales if a quarter is a tax
continuous impact on the Company's
period)
profit or loss
Primarily includes store closure
Revenue (loss) resulting from losses recognized in gain/(loss)
-737008.38
early store closure on disposal of assets and
penalty expenses from store
2712025 Annual Report of DR Corporation Limited
closures recognized in non-
operating expenses. The Group
makes decisions regarding store
openings and closures as
appropriate in response to
business development needs and
changes in market conditions. The
management of the Company
considers these activities to be
closely related to the Group's
ordinary operating activities;
therefore these gains and losses
are classified as recurring
items.
2. Return on net assets and earnings per share
Earnings per share
Weighted average return on
Profit for the reporting period
net assets Basic earnings per share Diluted earnings per share
(RMB/Share) (RMB/Share)
Net profit attributable to
ordinary shareholders of the 2.21% 0.35 0.35
Company
Net profit after deduction of
non-recurring profits or losses
0.07%0.010.01
attributable to ordinary
shareholders of the Company
3. Differences in accounting data under domestic and foreign accounting standards
(1) Differences in net profit and net assets between financial reports under the international accounting
standards and the Chinese accounting standards
□Applicable?Not applicable
(2) Differences in net profit and net assets between financial reports under the foreign accounting
standards and the Chinese accounting standards
□Applicable?Not applicable
(3) Reasons for differences in accounting data under domestic and foreign accounting standards. Where
adjustments are made for the differences in the data audited by an overseas audit institution the name of
the overseas institution shall be indicated□Applicable?Not applicable
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