Annual Report 2025
Shenzhen China Bicycle Company (Holdings) Co., Ltd.
Annual Report 2025
April 2026
Annual Report 2025
Annual Report 2025
Section I. Important Notice, Contents and Interpretation
Board of Directors, Supervisory Committee, all directors, supervisors and senior executives of Shenzhen China
Bicycle Company (Holdings) Limited(hereinafter referred to as the Company) hereby confirm that there are no
any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all
responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.
Wang Shenghong, Principal of the Company, Sun Longlong, person in charge of accounting works and Tan
Ningjie, person in charge of accounting organ (accounting principal) hereby confirm that the Financial Report of
All directors are attended the Board Meeting for report deliberation.
The Company plans not to distribute cash dividends, not to send bonus shares, and no reserve capitalizing.
As of the end of the reporting period, the parent company had unabsorbed losses. The undistributed profits in the
parent company's balance sheet amount to -1,172,002,115.27 yuan, and the undistributed profits in the
consolidated balance sheet amount to -1,134,676,946.45 yuan. According to the Company's articles of association
and cash dividend policy, the conditions for profit distribution are not met. Therefore, the Company's profits for
Annual Report 2025
Table of Contents
Section I Important Notice, Contents and Interpretation
Section II Company Profile and Main Financial Indexes
Section III Management Discussion and Analysis
Section IV Corporate Governance, Environmental and Social Responsibility
SectionV Important Events
SectionVI Change of share capital and shareholding of Principal Shareholders
SectionVII Corporate Bond
SectionVIII Financial Report
Annual Report 2025
Documents Available for Reference
accounting and person in charge of accounting organ.
designated by CSRC during the reporting period.
Annual Report 2025
Interpretation
Item Refers to Contents
Company, the Company, the listed Shenzhen China Bicycle Company
Refers to
company, CBC Group (Holdings)Co., Ltd.
Wansheng Industrial Holdings
Wansheng Industrial Refers to
(Shenzhen) Co., Ltd.
Shenzhen Guosheng Energy Investment
Guosheng Energy Refers to
Development Co., Ltd.
Shenzhen Xinsen Precision
Xinsen Precision Refers to
Manufacturing Co., Ltd.
SGE Refers to Shanghai Gold Exchange
CNY Refers to RMB/CNY
Annual Report 2025
Section II. Company Profile and Main Financial Indexes
I. Company information
Short form of the stock Zhonghua A, Zhonghua B Stock Code 000017,200017
Short form of the Stock
N/A
before changed (if applicable)
Stock Exchange for listing Shenzhen Stock Exchange
Name of the Company (in
深圳中华自行车（集团）股份有限公司
Chinese)
Short form of the Company
深中华
(in Chinese)
Foreign name of the
Shenzhen China Bicycle Company (Holdings)Co., Ltd.
Company (if applicable)
Short form of foreign name of
CBC
the Company (if applicable)
Legal representative Wang Shenghong
Registrations add. No. 3008, Buxin Rd., Luohu District, Shenzhen
Code for registrations add 518019
Historical changes of
Not applicable
registered address
Offices add. 8/F ShuibeiJinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, Shenzhen
Codes for office add. 518020
Internet Web Site www.szcbc.com
E-mail dmc@szcbc.com
II. Person/Way to contact
Secretary of the Board Rep. of security affairs
Name Sun Longlong Yu Xiaomin, Zhong Xiaojin
Contact Address North Road, Cuizhu Street, Luohu North Road, Cuizhu Street, Luohu
District, Shenzhen District, Shenzhen
Tel. 0755-28181688 0755-28181688
Fax 0755-28181009 0755-28181009
E-mail dmc@szcbc.com dmc@szcbc.com
III. Information disclosure and preparation place
Website of the Stock Exchange where the annual report
Shenzhen Stock Exchange(http://www.szse.cn)
disclosed
Media and Website where the annual report disclosed Securities Times, Juchao Website (http://www.cninfo.com.cn)
Annual Report 2025
Preparation place for annual report
Street, Luohu District, Shenzhen
IV. Registration changes of the Company
Uniform Social Credit Code 914403006188304524
Changes of main business since listing (if applicable) Main products or services provided at present: Emmelle
bicycle, electric bicycle, and gold jewelry.
Shenzhen Stock Exchange, and 23.28% equity of the Company
was held by Shenzhen Lionda Holding Co., Ltd. and Hong
Kong Dahuan Bicycle Co., Ltd respectively. 2. In March 2002,
legal shares 13.58% A-stock of the Company was obtained by
China Huarong Asset Management Co., Ltd. through court
auction, and became the first majority shareholder of the
Company. 3. On 13 November 2006, the 65,098,412 legal
shears of CBC held by Huarong Company was acquired by
Shenzhen Guosheng Energy Investment Development Co., Ltd.
via the “Equity Transfer Agreement” signed, and first majority
of the Company comes to Guosheng Energy. Guosheng Energy
is the wholly-owned subsidiary of National Investment, actual
controller was Zhang Yanfeng. 4. In January 2011, controlling
shareholder of Shenzhen Guosheng Energy Investment
Development Co., Ltd.—Shenzhen National Investment
Development Co., Ltd. entered into equity transfer agreement
with Mr. Ji Hanfei, 100% equity of Guosheng Energy was
transfer to Mr. Ji Hanfei with price of 70 million. Shenzhen
Guosheng Energy Investment Development Co., Ltd. Shenzhen
Guosheng Energy Investment Development Co., Ltd. holds
capital of the Company. 5. On February 20, 2017, Ji Hanfei and
Guosheng Energy made an “Explanation” to abandon the actual
Previous changes for controlling shareholders (if applicable)
control of the Company, after Ji Hanfei made the declaration to
abandon the actual control of the Company, the investment
from CBC by Mr. Ji changed to general investment instead of
actual controlling, and the actual controller of the Company
changed from Ji Hanfei to no actual controller.6. On November
company were listed on the Shenzhen Stock Exchange.
Wansheng Industrial holds 137,836,986 shares of the company
through the subscription of non-public offering of shares,
accounting for 20% of the total share capital after the
completion of the non-public offering. On November 28, 2022,
the company held the second interim general meeting of
shareholders in 2022 to review and approve the Proposal on
Nominating Candidates for Non-Independent Director and the
Proposal on Nominating Candidates for Independent Director,
and the board of directors of the company completed the
change of the term of office. Given that Wansheng Industrial
holds 20% of the stock equity of the company and determines
more than half of the seats on the board of directors of the
company, Wansheng Industrial can therefore have a significant
influence on the resolutions of the company's general meeting
of shareholders and the board of directors. Therefore, the
company was changed from a company without controlling
shareholder and actual controller to a company with controlling
Annual Report 2025
shareholder and actual controller, the controlling shareholder of
the company was changed to Wansheng Industrial, and the
actual controller of the company was changed to Mr. Wang
Shenghong.
V. Other relevant information
Accounting firm engaged by the Company
Name of the accounting firm Huaxing Certified Public Accountants（LLP）
Offices add. for CPA 7-9 /F, Block B, Zhongshan Bulding, No.152, Hudong Road,
GulouDistrict ,Fuzhou ,Fujian
Signatory accountant Huang Guoxiang, Fu Zhitao,Yang Wangxiang
Sponsor engaged by the Company for performing continuous supervision duties in reporting period
□Applicable ?Not applicable
Financial consultant engaged by the Company for performing continuous supervision duties in reporting period
□Applicable ?Not applicable
VI. Main accounting data and financial indexes
Whether it has retroactive adjustment or re-statement on previous accounting data or not
□Yes ?No
Changes in the current
year (+,-)
Operation
revenue(RMB)
Net profit attributable
to shareholders of the 41,129,172.17 16,845,245.59 144.16% 17,901,948.24
listed company (RMB)
Net profit attributable
to shareholders of the
listed company after
deducting non-
recurring gains and
losses(RMB)
Net cash flow arising
from operating -19,515,276.55 -17,152,733.19 -13.77% 29,972,830.62
activities(RMB)
Basic
EPS(RMB/Share)
Diluted
EPS(RMB/Share)
Weighted average ROE 11.30% 5.31% 5.99% 6.22%
Changes at end of the
current year compared
Year-end of 2025 Year-end of 2024 Year-end of 2023
with the end of
previous year (+,-)
Total assets(RMB) 478,004,242.28 434,452,097.75 10.02% 369,677,494.32
Annual Report 2025
Net assets attributable
to shareholder of listed 384,260,187.21 343,761,246.16 11.78% 308,761,246.16
company (RMB)
The lower of the company’s net profit before or after deduction of non-recurring profit (gain)/loss for the last
three financial years is negative, and the audit report for the latest year indicates that there is uncertainty about
the company’s ability to continue as a going concern
□Yes ?No
The lower of the net profit before or after deduction of non-recurring profit (gain)/loss is negative
□Yes ?No
VII. Difference of the accounting data under accounting rules in and out of China
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable ?Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either IAS
(International Accounting Standards) or Chinese GAAP (Generally Accepted Accounting Principles) in the
period.
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable ?Not applicable
The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign
accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the period.
VIII. Quarterly main financial index
In RMB
Q1 Q2 Q3 Q4
Operation revenue 160,342,458.39 159,601,158.24 257,730,546.79 158,203,105.33
Net profit attributable
to shareholders of the 5,904,967.75 12,665,809.89 12,366,492.72 10,191,901.81
listed company
Net profit attributable
to shareholders of the
listed company after
deducting non-
recurring gains and
losses
Net cash flow arising
from operating -44,880,425.54 6,377,003.05 -16,510,066.85 35,498,212.79
activities
Whether there are significant differences between the above-mentioned financial index or its total number and
the relevant financial index disclosed in the company’s quarterly report and semi-annual report
□Yes ?No
Annual Report 2025
IX. Items and amounts of extraordinary profit (gains)/loss
?Applicable □Not applicable
In RMB
Item 2025 2024 2023 Note
Non-current asset
disposal
gain/loss(including the
-13,461.54 -12,298.94
write-off part for which
assets impairment
provision is made)
Government subsidy
recognized in current
gain and loss(excluding
those closely related to
the Company’s
business and granted
under the state’s
policies)
Gain and loss from
change of the fair value
arising from
transactional monetary
assets, transactional
financial liabilities as
held as well as the
investment income
arising from disposal
of the transactional -180,799.89
monetary assets,
transactional financial
liabilities and financial
assets available for sale
excluding the effective
hedging transaction in
connection with the
Company’s normal
business
Gain or loss on assets
entrusted to other
entities for investment
or management
Switch-back of
provision of
impairment of account
receivable which are
treated with separate
depreciation test
Net amount of non-
operating income and
expense except the
aforesaid items
Other non-recurring
Gains/loss items
Less :Influenced
amount of income tax
Influenced amount of 25,461.98 1,542.71 384,638.54
Annual Report 2025
minor shareholders’
equity (after tax)
Total 324,542.68 1,625,520.34 -591,735.87 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□Applicable?Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□Applicable?Not applicable
The Company does not have any non-recurring profit(gain)/loss listed under theQ&A Announcement No.1 on
Information Disclosure for Companies Offering Their Securities to the Public --- Extraordinary (non-recurring)
Profit(gain)/lossdefined as recurring profit(gain)/loss
Annual Report 2025
Section III Management Discussion and Analysis
I. Main businesses of the Company during the reporting period
The Company shall comply with the disclosure requirement of Jewelry-related industries in the “Shenzhen Stock
Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
（I） Main businesses of the Company during the reporting period
The Company shall comply with the disclosure requirement of Jewelry-related industries in the “Shenzhen Stock
Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
During the reporting period, the company mainly engaged in jewelry gold business, bicycle and new-
energy lithium battery material business: (1) Gold jewelry business -The company connected with downstream
gold jewelry brands, purchased gold,silver and diamonds according to their product needs, and then entrusted
gold jewelry processing plants for processing, and delivered the inspected and qualified finished products to
downstream customers after making product certificate for them. Through the integration of upstream supplier
resources and downstream customer resources, the turnover speed of gold jewelry products in upstream and
downstream has been improved, the cost of circulation has been reduced, and the overall competitive advantage
of upstream and downstream has formed.(2) Bicycle and new-energy lithium battery material business includes
production, assembly, procurement, and sales of bicycles and electric bicycles, etc.
(II) Main business models during the reporting period
According to the market demand and customer demand, the Company carries out raw material
procurement, product development design and processing/outsourcing processing, and then forms finished
products to sell to customers.
Purchasing and processing: After the customer places an order with the company according to their own
requirements, the company will purchase raw materials and perform outsourced processing to form finished
products for sale to the customer;
Customized development: The customer entrusts the company to develop and design product styles
according to the characteristics of the customer's own brand and future development requirements, and deliver
the processed products to the customer.
Group sales: Group the products by integrating the product styles and spot resources of suppliers such as
upstream factories and exhibition halls, and provide corresponding product structure according to the brand
characteristics of customers and the requirements of the end market.
The upstream raw material suppliers of the company’s gold jewelry supply chain business were mainly diamonds,
silver and gold, of which, the gold is mainly purchased from the Shanghai Gold Exchange through the company's
membership qualification of the Shanghai Gold Exchange, Silver is mainly purchased through qualified suppliers,
the diamond suppliers were mainly source producers or wholesalers from India or Hong Kong, and domestic
mature diamond wholesalers (generally members of the Shanghai Diamond Exchange) , gold was mainly
Annual Report 2025
purchased from the Shanghai Gold Exchange through the company's membership qualifications at Shanghai Gold
Exchange. The company has established professional procurement department and team to be responsible for the
procurement of diamond products and jewellery. The specific procurement models varied according to customer
needs.
By integrating upstream commissioned processing plants, the company outsourced the production of products
ordered by customers to professional jewelry manufacturers to give full play to their professional and scale effect.
In view of the current situation and characteristics of domestic jewelry processing enterprises, the company
established a set of effective supplier management mechanisms and evaluation standards to achieve a benign
interaction between the production system of outsourced manufacturers and the company's business development.
(III) Operation of the physical store during the reporting period
During the reporting period, gold and jewelry business of the Company mainly provides supply chain
management and services in the vertical field of gold and jewelry, it connects with the downstream gold jewelry
brand and does not have the physical stores.
（IV）Operation of online sales of jewelry business during the reporting period
During the reporting period, the company's online sales accounted for a relatively small proportion, The
Company's jewelry business achieved sales revenue online through third-party platforms, which accounts for less
than 1% of the total operating income.
（V）Inventory of jewelry business during the reporting period
As of the end of the report,, inventory of the jewelry business was 184,650,244.11 yuan, an increase of
In RMB
Item Types Amount Proportion
Jewelry 6,859,939.59 3.72%
Gold jewelry 50,355,519.37 27.27%
Finished
goods Other 347,897.89 0.19%
Total 57,563,356.85 31.17%
Gold 89,747,988.67 48.60%
Silver 401,377.41 0.22%
Raw
materials Diamond 3,130,962.57 1.70%
Total 93,280,328.65 50.52%
Goods in 33,806,558.61 18.31%
process
Total 184,650,244.11 100%
II. Industry of the Company during the reporting period
(1) Industry development
China is one of the most important jewelry producer and consumer in the world at present. With the growth of
national economy and the accumulation of residents' wealth, people gradually increase their consumption of high-
Annual Report 2025
end consumer goods after meeting the basic living needs. Jewelry with the property of preserving value and
showing personality has become the consumption hotspots of Chinese residents. At the same time, with the rise of
young consumers and emerging middle class, the demand for quality personal consumption is gradually upgrading,
and the young generation's consumption of jewelry tends to be more routine, which can improve the repurchase
rate of jewelry products under various occasions, providing greater development space for the jewelry industry.
Under the background of slowdown in economic growth or increased uncertainty, people tend to spend more
rationally and pay more attention to the safety and reliability of family asset allocation. Compared with other
consumer goods, gold and silver jewelry can not only beautify our life, but also be accepted by more and more
consumers for its strong functions of preserving wealth, dispersing investment risks and protecting property safety.
On the other hand, the jewelry industry has continuously increased its efforts in style design, craft materials,
cultural marketing and consumption experience, which has also become an important driving force for
consumption growth.
(2) Industry development trend analysis
The jewelry market will witness further consumption tiering in the future, with the high-end jewelry
market poised for sustained growth while competition in the mass jewelry market increasingly centers on cost-
performance ratios, product diversity, and personalized expression. On one hand, the expanding new middle
class and high-net-worth individuals will drive growth in art investments and luxury consumption. Fine jewelry,
leveraging its advantages as an asset-preservation vehicle, cultural-artistic value, and high liquidity, will gain
greater development space in the high-end consumer market. On the other hand, younger consumers, guided by
rational spending principles, prioritize cost performance, design innovation, and emotional resonance, and favor
jewelry products that combine quality craftsmanship, social attributes, and personalized expression, making
fast-fashion jewelry a potential new market hotspot.
The accelerated development of AI and digital technologies is reshaping the jewelry industry's business
models. AI empowers jewelry design and supply chains through intelligent algorithms to analyze consumption
trends, accurately predict market demand, and achieve efficient production with precise inventory management,
thus significantly enhancing overall operational efficiency. Social commerce has become the primary
purchasing channel for younger consumers, with short videos and livestream shopping emerging as critical
brand touch points. By leveraging digital social tools, brands construct multi-dimensional interactive scenarios
to amplify communication and topic marketing, further increasing brand visibility and influence while creating
higher premium potential. The proliferation of virtual try-on, AR/VR experiences, and other innovative
technologies delivers more immersive shopping experiences, which not only boosts online conversion rates but
also helps brands build digital assets and strengthens market competitiveness.
Driven by technological advancement and growing consumer demand for high-quality intricate designs,
innovation in design and craftsmanship has become a pivotal force propelling the gold jewelry industry forward.
Annual Report 2025
Brands are increasingly emphasizing artisanal techniques, combining traditional goldsmithing skills with
modern aesthetics to preserve cultural heritage while infusing products with uniqueness. China's gold jewelry
market is undergoing a significant transformation, with designs becoming younger and more avant-garde under
the influence of younger consumers' distinctive tastes. This demographic merges traditional values with
contemporary fashion trends, creating strong demand for designs that balance modern fashion with cultural
significance. Intellectual property (IP) serves both as a protective shield for innovative achievements and a
catalyst for new quality productive forces. The protection and commercialization of IP not only incentivize gold
jewelry enterprises to deepen product R&D and creative design but also elevate the industry's overall design
standards and brand value.
The internal competition in the jewelry industry is relatively large, and the fierce market competition makes
the construction and control of sales channels for jewelry companies crucial. At the same time, due to the high
value of jewelry, consumers are often worried about the quality of the product and the reasonableness of the price
when purchasing, which often prompts them to purchase through physical channels. There is a certain scarcity of
high-quality physical channels, and the number of high-quality shops in a region’s high-quality business districts
is scarce. Such high-quality shops can not only provide higher traffic, improve the retail performance of jewelry,
but also have the important value of brand promotion. Therefore, in the fierce market competition, it is very
important for jewelry enterprises to control high-quality physical channels, which reflects the core
competitiveness of enterprises on the other side.
The Internet has provided more convenient and more widely spread way of information sharing, guiding the
consumers' demands and choices. In recent years, jewelry retail enterprises have further strengthened online
layout, built new media matrix through various social communication platforms, formed multi-channel customer
sources, realized rapid spread of online brands and drainage and sales of offline stores, and created a new mode of
omni-channel marketing. The development of sharing platforms and e-commerce platforms has changed the
consumption habits of consumers, especially the young generation. Online consumers can more conveniently
understand product features and share user experience, which has become an important trend of product
promotion and future sales. Especially with the rise of live streaming platforms of e-commerce and social contact,
the market share of live streaming e-commerce is increasing rapidly.
From the perspective of supply chain in the jewelry industry, it mainly involves raw material mining,
processing and smelting, blank processing, jewelry production, warehousing, distribution and sales. The jewelry
enterprise continue to optimize their supply chain management in order to shorten the supplying cycle and lower
operating costs while guarantee the quality. More and more well-known domestic jewelry brands have outsourced
part or all of the intermediate processing links with low gross profit and large investment over recent years,
focusing on premium front-end design, brand operation and back-end marketing network construction. Supply
chain management has become a major means for Jewelry enterprise to improving their operational efficiency.
Annual Report 2025
III. Core Competitiveness Analysis
Jewelry and gold business is the core business of the Company. The Company pays attention to both the
economic situation and the fluctuation of raw material prices at home and abroad. During the reporting period,
the Company strove to develop new customers, maintain old customers, select the superior and eliminate the
inferior, and further enrich and expand the customer base; With subsidiaries including Xinsen Company and the
Group headquarters as core suppliers, it pursued supplier qualification certification for jewelry brands to
become their multi-category approved suppliers; enhanced product development and quality management;
promoted innovative craftsmanship applications; strengthened IP protection and commercialization to boost
differentiated advantages and market competitiveness of the company; It strengthened product development and
quality management; It supplied raw materials such as gold purchased from Shanghai Gold Exchange and
diamonds purchased from qualified suppliers to brands, wholesalers and distributors in batches through product
design, processing/commissioned processing and quality inspection and acceptance. During the reporting period,
the Company continued to operate the bicycle and electric bicycle business, followed the development of new
energy industries, strove to develop new products, and carried out online and offline sales and brand
management, etc.
Competitive advantage of the Company in jewelry and gold business:
At present, the company has established stable cooperative relations with major diamond suppliers and processors
at home and abroad, and has advantages in raw material purchase cost, order production cycle and product quality
control, which can continuously reduce the supply cost and operation efficiency.
At present, the company is actively developing gold and jewelry customers. In addition to customers placed orders,
the company is negotiating business cooperation with many domestic jewelry brands. There are three types of
customers, type A customers are national well-known brand customers with more than 500 retail stores; type B
customers are small and medium-sized/regional/segmented brands with 300-500 retail stores; type C customers
are small and medium-sized brands with 50-100 retail stores.
The company has an industrial chain process coordinating design, production, processing, inspection and
wholesale. Brand owners can rely on our jewelry processing resource advantages and hand over low value-added
links such as manufacturing and distribution to the company, so as to focus on the brand operation and sales links
with higher added value. Outsourcing of production and design can improve the homogeneity of gold and jewelry
products.
The company has developed strict internal business control processes such as supplier admittance criterion,
customer evaluation system, whole-process order tracking system and purchase price comparison system.
Through integrated service platform of supply system and integrated solution of fund management, the company
has realized closed-loop control of capital flow, information flow and logistics, and realized multi-level risk
control.
Annual Report 2025
IV. Main business analysis
The jewelry and gold business is the Company's core business. The Company pays attention to the
economic situation at home and abroad, and pays attention to the fluctuations in the price of raw materials at
home and abroad. During the reporting period, the Company made great efforts to expand new customers,
maintain old customers, select the fittest, and further enrich and expand the customer base; With subsidiaries
including Xinsen Company and the Group headquarters as core suppliers, it pursued supplier qualification
certification for jewelry brands to become their multi-category approved suppliers; enhanced product
development and quality management; promoted innovative craftsmanship applications; strengthened IP
protection and commercialization to boost differentiated advantages and market competitiveness of the
company; purchased gold from the Shanghai Gold Exchange and purchased diamonds and other raw materials
from qualified suppliers, and then supplied products in batches to various brands. During the reporting period,
the Company continued to adhere to the business of bicycles and electric bicycles, tracked the development of
new energy industries, strived to carry out new product research and development, and carried out online and
offline sales and brand management.
Through various efforts, in 2025, the Company achieved an operating income of RMB 735.88 million
(including 99% from jewelry and gold business), an operating profit of RMB 55.67 million and a net profit of
RMB 41.40 million, of which the net profit attributable to shareholders of listed companies was RMB 41.13
million.
In RMB
Y-o-y
End of period or Beginning of period
Item changes Reasons
current period or previous period
(+,-)
Revenue from jewelry and gold business
Operation revenue 735,877,268.75 579,869,315.88 26.90%
increased in the current period
The cost of jewelry and gold business
Operation cost 657,982,700.68 545,432,979.84 20.63%
increased accordingly in the current period
Business revenue increased in the current
Sales expenses 7,781,965.50 4,570,304.44 70.27% period, and selling expenses increased
accordingly.
Business revenue increased in the current
Administration
expenses
expenses increased accordingly.
Finance expenses 737,858.22 335,795.63 119.73%
Revenue from gold business increased in the
Operating profit 55,671,923.78 19,951,480.25 179.04%
current period
Revenue from jewelry and gold business
Total profit 56,150,424.60 22,028,079.32 154.90%
increased in the current period
Net profit attributable
Revenue from jewelry business increased in
to shareholders of the 41,129,172.17 16,845,245.59 144.16%
the current period
parent company
(1)Constitute of operation revenue
In RMB
Y-o-y changes (+,-
Ratio in operation Ratio in operation )
Amount Amount
revenue revenue
Annual Report 2025
Total operation
revenue
On industries
Gold jewelry 735,160,579.53 99.36% 578,195,368.11 99.71% 27.15%
Bicycles, electric
bicycles, lithium
battery materials
and others
On products
Gold jewelry 735,160,579.53 99.36% 578,195,368.11 99.71% 27.15%
Bicycles, electric
bicycles, lithium
battery materials
and others
According to region
Domestic 735,877,268.75 100.00% 579,869,315.88 100.00% 26.90%
According to sale model
Wholesale 735,865,868.99 100.00% 579,869,315.88 100.00% 26.90%
(2)Industries, products, regions and sales model that account for more than 10% of the operating revenue
or operating profit of the Company
?Applicable □Not applicable
In RMB
Change of
Gross Change of Change of
operation
Operation revenue Operation cost profit operation cost gross profit
revenue y-o-
ratio y-o-y(+,-) ratio y-o-y(+,-)
y(+,-)
On industries
Jewelry and
gold
On products
Jewelry and
gold
According to region
Domestic 739,160,579.53 657,858,136.22 10.52% 27.15% 20.78% 4.72%
According to sale model
Wholesale 735,148,997.77 657,858,136.22 10.51% 27.15% 20.78% 4.71%
Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main
business based on latest one year’s scope of period-end
□Applicable ?Not applicable
(3) Income from physical sales larger than income from labors
?Yes □No
Y-o-y changes (+,-
Industries Item Unit 2025 2024
)
Sales volume Piece 186,654.00 213,997.00 -12.78%
Jewelry
Output Piece 0.00 0 0.00%
(inlaid/Gold
Inventory Piece 17,676.00 40,058.00 -55.87%
Jewelry)
Purchasing volume Piece 164,272.00 244,655.00 -32.86%
Annual Report 2025
Sales volume g 1,150,190.74 968,021.08 18.82%
Jewelry（Gold Output g 1,166,024.74 532,050.00 119.16%
Jewelry） Inventory g 30,380.00 14,546.00 108.85%
Purchasing volume g 0.00 446,480.08
Sales volume g 431,400.00
Jewelry（Silver Output g 431,400.00
products） Inventory g 0.00
Purchasing volume g 0.00
Reasons for y-o-y relevant data with over 30% changes
?Applicable □Not applicable
(4) Performance of significant sales contracts, major procurement contract entered into by the company
up to the current reporting period
□Applicable ?Not applicable
(5) Constitute of operation cost
Classification of industries
In RMB
Ratio in Y-o-y changes
Industries Item Ratio in
Amount Amount operation (+,-)
operation cost
cost
Gold jewelry Gold jewelry 657,858,136.22 99.98% 544,685,137.81 99.86% 0.12%
Bicycles, Bicycles,
electric electric
bicycles and bicycle
others others
Note
None
(6) Whether the changes in the scope of consolidation in Reporting Period
□Yes?No
(7) Major changes or adjustment in business, product or service of the Company in Reporting Period
□Applicable ?Not applicable
(8) Major sales and main suppliers
Major sales client of the Company
Total top five clients in sales (RMB) 513,375,029.24
Proportion in total annual sales volume for top five clients 69.42%
Ratio of related parties in annual total sales among the top five
clients
Information of top five clients of the Company
Proportion in total annual
Serial Name Sales (RMB)
sales
Annual Report 2025
Total -- 513,375,029.24 69.42%
Other notes of main clients
□Applicable ?Not applicable
Main suppliers of the Company
Total purchase amount from top five suppliers (RMB) 752,905,008.65
Proportion in total annual purchase amount for top five
suppliers
Ratio of related parties in annual total sales among the top five
suppliers
Information of top five suppliers of the Company
Proportion in total annual
Serial Name Purchase (RMB)
purchase
Total -- 752,905,008.65 99.49%
Other notes of main suppliers
?Applicable □Not applicable
The gold materials required during the reporting period were mainly purchased through Shanghai Gold
Exchange, and there is no affiliation between the Company and top five suppliers.
In RMB
Revenue growth with a
Sales expenses 7,781,965.50 4,570,304.44 70.27% corresponding rise in
expenses
Revenue growth with a
Administrative
expenses
expenses
Financial expenses 737,858.22 335,795.63 119.73% New loans in the year
R&D expenses 620,019.89 644,200.69 -3.75%
?Applicable □Not applicable
Estimated Impact on
Name of Main R&D
Project Purpose Project Progress Goal to Achieve the Company's Future
Projects
Development
For complex mountain Reduce the impact Enhance the reliability
environments, improve force when parking the and comfort of
Development of a new The project has been
the existing bicycle bicycle, protect key mountain bike
support for mountain accepted and
support technology to components such as the products, improve the
bikes completed.
enhance the stability frame, hub, and rim, brand's
and durability of the prevent them from competitiveness in the
Annual Report 2025
whole vehicle on deforming or breaking professional off-road
rugged terrain. due to excessive force, cycling field, and
and at the same time attract more outdoor
improve the rider's sports users.
comfort.
Master the core
Effectively reduces technology of the four-
In response to the
vibrations during riding bar frame, improve the
shortcomings of the
using a four-link shock performance of high-
existing outer-ring
absorption system, end sports bicycle
buckle frame stress- The project has been
A new type of four-link enhancing comfort; product lines,
bearing structure, accepted and
bicycle frame improves the vehicle's consolidate
develop a four-link completed.
stability and safety technological
frame to improve load-
during high-speed advantages, and
bearing performance
driving, sharp turns, or expand market share in
and shock absorption.
jumps. the sports bicycle
market.
Launch high-
performance carbon
In response to the
Develop lightweight, fiber wheelsets to meet
shortcomings of the
low-drag carbon fiber the needs of
stress-bearing structure
Research and rims to reduce the force competitions and the
of the existing external
development of new The project has been required for starting high-end market,
ring buckle frame, a
carbon fiber rims accepted and and enhance enhance product added
four-link frame is
(wheel rims) for completed. aerodynamic value and brand image,
developed to improve
bicycles performance and speed and is expected to
load-bearing
retention during high- bring higher profit
performance and shock
speed riding. margins and expand the
absorption.
high-end component
market.
Personnel of R&D
Number of R&D (people) 5 7 -28.57%
Ratio of number of R&D 5.56% 8.64% -3.08%
Educational background
Undergraduate 1 3 -66.67%
Master 0 0 0.00%
Below bachelor’s degree 4 4 0.00%
Age composition
Under 30 0 1 -100.00%
Over 40 4 5 -20.00%
Investment of R&D
R&D investment (RMB) 620,019.89 644,200.69 -3.75%
R&D investment/Operating
revenue
Capitalization of R&D
investment (RMB)
Capitalization of R&D
investment/R&D investment
Reasons and effects of significant changes in composition of the R&D personnel
□Applicable ?Not applicable
The reason of great changes in the proportion of total R&D investment accounted for operation revenue than
Annual Report 2025
last year
□Applicable ?Not applicable
Reason for the great change in R&D investment capitalization rate and rational description
□Applicable ?Not applicable
In RMB
Item 2025 2024 Y-o-y changes (+,-)
Subtotal of cash in-flow
arising from operation 875,010,402.10 635,368,111.52 37.72%
activity
Subtotal of cash out-flow
arising from operation 894,525,678.65 652,520,844.71 37.09%
activity
Net cash flow arising from
-19,515,276.55 -17,152,733.19 -13.77%
operating activities
Subtotal of cash in-flow
arising from investment 410,001.19 -100.00%
activity
Subtotal of cash out-flow
arising from investment 229,257.48 1,910,690.86 -88.00%
activity
Net cash flow arising from
-229,257.48 -1,500,689.67 84.72%
investment activities
Subtotal of cash in-flow
arising from financing 33,154,754.41 46,843,051.76 -29.22%
activity
Subtotal of cash out-flow
arising from financing 18,391,652.75 1,538,808.73 1,095.19%
activity
Net cash flow arising from
financing activities
Net increased amount of cash
-5,324,860.92 26,650,820.17 -119.98%
and cash equivalent
Main reasons for y-o-y major changes in aspect of relevant data
?Applicable □Not applicable
gold business during in the current period, which led to an increase in received payments.
and gold business during in the current period, which led to an increase in raw material purchases
Explanation of significant difference between cash flow from operating activities and net profit during the
reporting period
□Applicable ?Not applicable
V. Analysis of the non-main business
□Applicable ?Not applicable
Annual Report 2025
VI. Analysis of assets and liability
In RMB
Year-end of2025 Year-begin of20232024 Ratio
Note of major
Ratio in total changes(
Amount changes
assets +,-)
Monetary fund 75,474,633.65 15.79% 80,974,360.59 18.64% -2.85%
Account
receivable
Increase in
inventory
Inventory 184,690,307.34 38.64% 84,349,675.00 19.42% 19.22%
reserves for the
current period
Foreign assets account for a relatively high proportion
□Applicable ?Not applicable
□Applicable ?Not applicable
Jiayuan, Luohu District, Shenzhen purchased in 2016, with original value of 2,959,824.00 Yuan, which were
affordable housing purchased from the Housing and Construction Bureau of Luohu District to provide to
enterprise talents for living. The contract stipulated that the purchasing enterprise is not allowed to conduct any
form of property rights transaction with any units or individual other than the government.
VII. Investment analysis
?Applicable □Not applicable
Investment at same period last year
Investment in the Period(RMB) Changes
(RMB)
□Applicable ?Not applicable
□Applicable ?Not applicable
(1) Securities investment
□Applicable ?Not applicable
The company had no securities investment in the Period.
Annual Report 2025
(2) Derivative investment
□Applicable ?Not applicable
□Applicable ?Not applicable
The Company had no application of raised proceeds in the Period
□Applicable ?Not applicable
□Applicable ?Not applicable
During the reporting period, the Company did not engage in derivative investments for speculative purposes.
VIII. Sales of major assets and equity
□Applicable ?Not applicable
The Company had no major assets sold in the Period.
□Applicable ?Not applicable
IX. Analysis of main holding company and stock-jointly companies
?Applicable □Not applicable
Particular about main subsidiaries and stock-jointly companies net profit over 10%
In RMB
Company Main Register Operation Operation
Type Total assets Net assets Net profit
name business capital revenue profit
Shenzhen
Xinsen Business of
Jewelry Subsidiary jewelry and
Gold Co., gold
Ltd.
Particular about subsidiaries obtained or disposed in report period
□Applicable ?Not applicable
Description of Major Holding and Participating Companies
X. Structured vehicle controlled by the Company
□Applicable ?Not applicable
Annual Report 2025
XI. Future Development Prospects
Jewelry and gold business is the core business of the Company. The Company pays attention to both the
economic situation and the fluctuation of raw material prices at home and abroad. During the reporting period, the
Company strove to develop new customers, maintain old customers, select the superior and eliminate the inferior,
and further enrich and expand the customer base; It strengthened product development and quality management；
promoted innovative craftsmanship applications; strengthened IP protection and commercialization to boost
differentiated advantages and market competitiveness of the company; It supplied raw materials such as gold
purchased from Shanghai Gold Exchange and diamonds purchased from qualified suppliers to brands, wholesalers
and distributors in batches through product design. During the reporting period, the Company continued to
operate the bicycle and electric bicycle business, followed the development of new energy industries, strove to
develop new products, and carried out online and offline sales and brand management.
II. Operation plan for the new year:
On the basis of business work over the past few years, the business plan of the Company for 2026 is:
（1）Enhancing corporate governance, standardize operations, further reform and improve the internal operation
management system, assessment mechanism, strengthen the construction of management teams, business teams
and technical teams. Perfected the development plan of the Company.
（2）In terms of gold and jewelry business, further establish supplier systems and expand customer resources,
the business cooperation between the well-known brands and listed company in particular, expanding
international business, strengthen product development and quality management, promoted innovative
craftsmanship applications; strengthened IP protection，improve internal business processes and internal control
system construction, promote the construction of a supply chain system platform to improve operational quality
and efficiency, and Promote the development of jewelry business operations.
（3）In terms of bicycle, electric bicycle and new energy business, with the goal of brand maintenance and
national market expansion, expanded sales networks, strengthen brand management, and promote the growth
of order business. Continue to follow up the development of new energy and new material of lithium battery, and
explore and seek new breakthroughs.
（4）Continue to cooperate with the manager to carry out asset custody business and relevant litigation response,
ensure asset safety and protect the rights and interests of interested parties. Continue to follow up the execution of
Guangshui Jiaxu's lawsuit.
（5）Strengthen the background management and office automation, and improve the support of the back office
to the front desk business.
III. Risks for the Company:
(1) Price fluctuation risk of major raw materials
The main raw materials of the company are gold, diamonds, etc. In recent years, affected by changes in the
international and domestic economic situation, the listed price of gold at the gold exchange fluctuates greatly. The
market price of platinum is generally positively correlated with the market price of gold. In the long run, the
Annual Report 2025
market price of diamond is in a moderate rising trend. The selling price of the company's gold products calculated
by gram is linked with the listed price of gold and platinum at the gold exchange. If the market prices of gold,
platinum, diamonds and other raw materials fall significantly during the inventory turnover period of the company,
on the one hand, the company has the risk of gross profit margin decline due to the decline in product selling price;
on the other hand, the company will also face the risk of decline in operating performance due to the provision for
inventory write down. At the same time, the rise in selling price caused by the sharp rise in the market price of
raw materials such as gold and diamonds may lead to the decrease of consumers' willingness and the decline of
sales volume, thus adversely affecting the business performance.
(2) The risk of intensifying market competition
In recent years, the jewelry market in China has been developing continuously, and the consumption demand of
jewelry has been developing in the direction of individuation and diversification. At present, China's jewelry
industry has presented diversified competitions. Excellent enterprises in the industry have formed competitive
advantages in a certain segment by deeply exploring the consumption preferences of specific groups. The market
competition has gradually changed from price competition to comprehensive competition among brand, business
model, marketing channel, product design and quality, the competition tends to be fierce. In the future
development, if the company cannot continue to give full play to its advantages, there will be a risk of profitability
decline due to intensified competition in the industry.
(3) Risk of market demand decline
As an optional consumption, jewelry is especially sensitive to market demand, economic outlook and consumer
preference. China has become one of the countries with the most obvious growth in the jewelry and jade jewelry
industry in the world. If the economic growth rate declines in the future, the growth of market consumption
demand may slow down accordingly, which will adversely affect the company's business condition.
XII. Reception of research, communication and interview during the reporting period
?Applicable □Not applicable
Main content Basic situation
Reception
Time Way Reception type Object and information index of
location
provided investigation
Found more in
The investors “Investors
participated in Relations
The on-line Company
Online the online Activities
platform of operations,
communication performance Sheet”(No.:
May 15,2025 “Value On- Other future
on the network briefing for 2025-001)
Line” (www.ir- development
platform year of 2023 released on
online.cn) plans, etc.
through the Juchao Website
internet (www.cninfo.co
m.cn)
The The investors Found more in
“Interactive participated in Operational “Investors
Online
Platform for group reception status, Relations
November communication
Investor Other day for corporate Activities
Relations” on investors of the governance, Sheet”(No.:
platform
(https://ir.p5w.n listed etc. 2025-002)
et) companies in released on
Annual Report 2025
Shenzhen for Juchao Website
year of 2024 (www.cninfo.co
through m.cn)
(https://ir.p5w.n
et)
XIII. Formulation and implementation of market value management system and valuation boost plan
Whether the Company has established a market value management system
□Yes?No
Whether the Company has disclosed plans for valuation boost.
□Yes?No
XIV. The implementation of the action plan of "Double improvement of quality and return".
Whether the Company has disclosed the action plan of "Double improvement of quality and return".
□Yes?No
Annual Report 2025
Section IV Corporate Governance, Enviornmental and Social Responsibility
I. Overview of Corporate Governance
During the reporting period, the company strictly complied with the Company Law, the Securities Law, the
Governance Code for Listed Companies, the Rules for Listing Stocks of Shenzhen Stock Exchange, the
Guidelines for the Self-Regulation of Listed Companies of Shenzhen Stock Exchange No. 1 -- Standardized
Operation of Listed Companies on the Main Board, and other relevant laws and regulations, constantly improved
the corporate governance structure, improved the enterprise management and internal control system, deeply and
meticulously carried out corporate governance activities, and constantly improved the corporate governance level.
The general meeting of shareholders, the board meeting and the meeting of supervisors of the company were held
in strict accordance with relevant rules and regulations, and the directors and supervisors can diligently perform
their duties. During the reporting period, the actual situation of corporate governance met the requirements of the
regulatory documents on corporate governance issued by China Securities Regulatory Commission and Shenzhen
Stock Exchange.
The company convened and held the general meeting of shareholders in strict accordance with the Company Law,
the Securities Law and other laws and regulations, and the stipulations of the Articles of Association and the
Rules of Procedure of the General Meeting of shareholders, sent out meeting notice at the prescribed time before
the general meeting of shareholders, and employed lawyers to witness the meeting and give legal opinions on the
convening and holding of the meeting and the validity of the resolution, ensured that all shareholders, especially
minority shareholders, enjoy equal status and fully exercise their rights. During the reporting period, the company
held 2 general meetings of shareholders and considered 17 proposals(Including sub-proposals).
The company's controlling shareholders exercised their rights and undertook corresponding obligations in
accordance with the law, there was no direct or indirect interference in the company's decision-making and
business activities beyond the company's general meeting of shareholders. The company had an independent and
complete operating system and independent operating ability, and was independent and separated from the
controlling shareholders, actual controllers and other enterprises controlled by them in terms of business,
personnel, assets, institutions and finance. The company's board of directors, board of supervisors and other
internal organs operated independently, and major decisions were made by the general meeting of shareholders
and the board of directors in accordance with the law.
The board of directors of the company has 9 members, including 3 independent directors. The number and
composition of the board of directors meet the relevant laws and regulations and the requirements of the Articles
of Association. During the reporting period, all directors of the company performed their duties diligently and
responsibly in strict accordance with relevant laws and regulations, the Articles of Association, Rules of
Procedure of the Board of Directors and other relevant provisions, attended the board meetings and the general
Annual Report 2025
meeting of shareholders on time, carefully deliberated various proposals, and ensured the standard, efficient
operation and prudent and scientific decision-making of the board of directors. In order to further improve the
corporate governance structure, the board of directors of the company has set up four special committees, namely
strategy, audit, nomination, compensation and assessment, to provide scientific and professional opinions for the
decision-making of the board of directors. During the reporting period, the board of directors held 6 meetings and
deliberated 27 proposals(Including sub-proposals).
The company has gradually established and improved the fair and transparent performance appraisal standards
and incentive and restraint mechanisms for directors, supervisors and senior managers, and the appointment of
senior managers of the company is open and transparent, and in line with the provisions of laws and regulations.
The company fully respected the legitimate rights and interests of stakeholders, treated suppliers and customers in
good faith, carefully cultivated every employee, strengthened the communication and exchange among all parties,
jointly promoted the sustainable and healthy development of the company, and achieved the coordination and
balance of the interests of shareholders, employees and the society while maximizing the profits of the company.
The company attached great importance to information disclosure and investor relationship management, strictly
implemented the Information Disclosure Management System, and designated Securities Times and
http://www.cninfo.com.cn as the company's legal information disclosure media and website, fairly treated all
investors, and truly, accurately, completely and timely made information disclosure, improved the transparency of
the company, and protected the legitimate rights and interests of all shareholders.
The Company lays great stress on maintaining the good communication with investors. During the reporting
period, by means of the performance communication meeting and various means such as online group reception
days for listed companies, the Company introduce the development strategy and business development to the
investors; the Company actively uses the investor relations interactive platform as an important channel of
communication with investors, especially small and medium-sized investors, and answers investor’s questions on
the platform in a timely and serious manner.
Is there any difference between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC?
□Yes ?No
There are no differences between the actual condition of corporate governance and relevant regulations about
corporate governance for listed company from CSRC.
II. Independence of the Company relative to controlling shareholder and the actual controller in ensuring
the Company’s assets, personnel, finance, organization and businesses
The company has an independent supply and marketing system, and is independent and separated from the
controlling shareholders, actual controllers and other enterprises controlled by them in terms of business,
Annual Report 2025
personnel, assets, institutions and finance, and has the independent and complete business system and the ability
to operate independently in the market.
The company has an independent supply and marketing system, and has the ability to operate independently and
directly to the market. There is no other situation that needs to rely on the controlling shareholders for production
and operation activities. There is no horizontal competition between the company and the controlling shareholders,
and the controlling shareholders do not directly or indirectly interfere in the operation of the company.
The company is independent of the controlling shareholders in labor, personnel and salary management. The
general manager, deputy general manager, chief financial officer, secretary of the board and other senior
executives of the company neither hold other positions except directors and supervisors in the controlling
shareholders, actual controllers and other enterprises controlled by them, nor receive salary from the controlling
shareholders, actual controllers and other enterprises controlled by them; The company's directors, supervisors,
general manager and other senior executives are selected through legal procedures, and there is no controlling
shareholder, any other unit, department or person violating the relevant provisions of the Articles of Association
to interfere in the appointment and removal of the company's personnel.
The company has a complete supply, production and marketing system and supporting facilities required for
production and operation, and legally owns land use rights, housing property rights, ownership of trademark and
other assets related to production and operation, and does not rely on the assets of controlling shareholders for
production and operation. The company has registered, established accounts, checked and calculated and managed
all assets, and the property rights of all assets are clearly defined and the ownership is clear.
The company has set up necessary functional departments in line with its own characteristics, and each
department operates according to the company's management system and under the leadership of the company
management. There is no confusion with the controlling shareholders, the actual controllers and other enterprises
controlled by them, and there is no subordinate relationship with the controlling shareholders.
The company has set up an independent finance department, allocated full-time financial personnel, and
established a complete accounting system, which enable it to make financial decisions independently, possess
normative financial and accounting system and financial management system for subsidiaries. The company has
independent bank accounts and pays taxes independently in accordance with the law. There is no situation of
sharing bank accounts or tax payments with the controlling shareholders.
III. Horizontal competition
□Applicable ?Not applicable
Annual Report 2025
IV. Directors and senior executives
Amou Amou
nt of nt of Reaso
Shares Shares
Start shares shares ns for
End held at Other held at
Worki dated increas decrea increas
Ag date of period- change period-
Name Sex Title ng of ed in sed in e or
e office begin s end
status office this this decrea
term (Share (share) (Share
term period period se of
) )
(Share (Share shares
) )
Nove Nove
Wang Curren Not
mber mber
Shengh Male 44 Chairman tly in 0 0 0 0 0 applica
ong office ble
Nove
Curren August Not
mber
Director tly in 26,201 0 0 0 0 0 applica
office 0 ble
Li Hai Male 57
Septe Nove
Curren Not
mber mber
President tly in 0 0 0 0 0 applica
office ble
Nove
Curren June Not
mber
Director tly in 29,201 0 0 0 0 0 applica
office 7 ble
Nove
Sun Secretary Curren May Not
mber
Longlon Male 53 of the tly in 17,201 0 0 0 0 0 applica
g Board office 2 ble
Nove
Curren May Not
mber
CFO tly in 22,201 0 0 0 0 0 applica
office 7 ble
Nove
Yao Curren August Not
mber
Zhengw Male 51 Director tly in 26,201 0 0 0 0 0 applica
ang office 0 ble
Nove Nove
Curren Not
Yuan mber mber
Male 47 Director tly in 0 0 0 0 0 applica
Kang 28,202 27,202
office ble
Nove Nove
Wang Curren Not
mber mber
Guoxian Male 72 Director tly in 0 0 0 0 0 applica
g office ble
Nove Nove
Curren Not
Guo Independe mber mber
Male 43 tly in 0 0 0 0 0 applica
Qiuquan nt director 28,202 27,202
office ble
Nove Nove
Curren Not
Zhan Independe mber mber
Male 44 tly in 0 0 0 0 0 applica
Qiyong nt director 28,202 27,202
office ble
Yuan Independe Curren Nove Nove Not
Male 47 0 0 0 0 0
Qinghui nt director tly in mber mber applica
Annual Report 2025
office 28,202 27,202 ble
Total -- -- -- -- -- -- 0 0 0 0 0 --
During the reporting period, whether there was any departure of directors and supervisors and dismissal of
Senior executives
□Yes ?No
Changes of directors, supervisors and senior executives
□Applicable ?Not applicable
Professional background, major working experience and present main responsibilities in Company of directors
and senior executive
Mr. Wang Shenghong, born in 1982, is a Chinese national without the right of permanent residence abroad. Mr.
Wang Shenghong is currently the general manager of Wansheng Industrial Holdings (Shenzhen) Co., Ltd., the
general manager of Shenzhen HuaxiaJunyong Robot Technology Co., Ltd..ShenzhenWansheng Kejiao Holding
Co., Ltd.,The Chairman of Shenzhen Youkaile Robot Co., Ltd. and the Chairman of the company.
Mr. Li Hai, born in 1969, graduated from Economic department of Shenzhen University in major of accounting;
Mr. Li took the turns of deputy manager of finance department, assistant CFO, secretary of the Board and vice
president, etc. of the Company, and now he serves as President of the Company.
Mr. Sun Longlong, born in 1973, graduated from Shanghai University of Finance and Economics in 1995 with a
bachelor degree, a bachelor of Economics. Mr. Sun successively worked as financial affairs in Shenzhen
Qiongjiao Industry Co., Ltd. and Shenzhen Solar Pipe Co., Ltd.; he worked in the Company since May 1999, and
successively served as Deputy Manager of financial department, Manager, manager of comprehensive
management department, manager of enterprise management department, now he serves as Director, secretary of
the Board and CFO of the Company.
Mr. Yao Zhengwang, born in 1975, received a Bachelor of Law degree. Mr. Yao Zhengwang is currently a
director of Shenzhen China Bicycle Company (Holdings) Limited, the general manager of Jilin Fude Investment
Holding Co., Ltd., a director of Jiaxing Zhishifang Food Technology Co., Ltd., the General Manager of Dalian
Fude Jinyu New Energy Co., Ltd. and a director of the Company.
Mr. Yuan Kang, born in 1979, graduated from Seneca College in Toronto, Canada, served as a supervisor of
Fujian Fenghe Group Co., Ltd., now he serves as Director of the company.
Mr. Wang Guoxiang, born in 1954, is a Chinese national without the right of permanent residence abroad. He is
currently a supervisor of Wansheng Industrial Holdings (Shenzhen) Co., Ltd., a supervisor of Shenzhen
HuaxiaJunyong Robot Technology Co., Ltd., a director supervisor of Shenzhen Youkaile Robotics Co., Ltd. and a
director of the Company.
Annual Report 2025
Mr. Guo Qiuquan, born in 1983, is a member of the Communist Party of China anda Chinese national, a PhD of
Biomedical Engineering, the University of Western Ontario, Canada,a bachelor of Engineering Mechanics and a
master of Physical Electronics from Beijing Institute of Technology, and he belongs to Class-C in the peacock
plan of recruiting high-level overseas talents of Shenzhen. In 2016, he was sponsored by the Ministry of Human
Resources and Social Security for overseas students. So far, he has published more than 70 papers in international
advanced journals, and has 12 authorized invention patents and 12 authorized utility model patents. Some of his
patented technologies won the technology transformation award of WorlDiscovery of the University of Western
Ontario. Mr. Guo Qiuquan is currently an associate researcher of the Institute for Advanced Study of University
of Electronic Science and Technology of China (Shenzhen), general manager of Jiangsu Xinchengrui Material
Technology Co., Ltd., the president and general manager of Shenzhen Topmembranes Technology Co., Ltd. An
Independent director of Zhou Liu Fu Jewelry Co., Ltd.and an independent director of of the Company.
Mr. Zhan Qiyong, born in 1982, is a member of the Communist Party of China and a Chinese national. He has a
master's degree in accounting from Jiangxi University of Finance and Economics. He is a certified public
accountant and a certified tax agent. now he serves as an Independent Director of the company.
Mr. Yuan Qinghui, born in 1979, is a Chinese national, has a bachelor 's degree in law, and is a lawyer. He passed
the China Judicial Examination in 2002 and began practicing law in 2003. Now he is the director of Fujian
Luyuan Laws Firm. now he serves as an Independent Director of the company.
Cases where the controlling shareholder or actual controller concurrently serves as both Chairman and General
Manager of the listed company
□Applicable?Not applicable
Office taking in shareholder companies
√Applicable □Not applicable
Received
Position in
Name of shareholder’s Start dated of End date of office remuneration from
Name shareholder’s
unit office term term shareholder’s unit
unit n
(Y/N)
Wansheng Industrial Executive
Wang
Holdings (Shenzhen) Director and June 13,2017 No
Shenghong
Co., Ltd. GM
Wansheng Industrial
Wang Guoxiang Holdings (Shenzhen) Supervisor August 13,2018 No
Co., Ltd.
Explanation of
position s held
in the N/A
shareholder's
entity
Post-holding in other unit
?Applicable □Not applicable
End date Received
Position in Start dated of office
Name Name of other units of office remuneration from
other unit term
term other unit (Y/N)
Wang Shenzhen Huaxia Junyong Robot GM May 9,2020 No
Annual Report 2025
Shenghon Technology Co., Ltd.
g
Wang
Shenghon Shenzhen Youkaile Robot Co., Ltd. Chairman October 23,2025 No
g
Wang
Shenzhen Chanjuan Holding
Shenghon GM January 7,2020 No
Development Co., Ltd.
g
Wang
Shenghon Shenzhen Chanjuan Industrial Co., Ltd. GM December 21,2017 No
g
Wang
Shenghon Shenzhen Chanjuan Jewelry Co., Ltd. Director August 22,2022 No
g
Sun Huizhou Daya Bay Longzhen Trading Merchant in
November 10,2021 No
Longlong Firm charge
Yao
Zhengwan Jilin Fude Investment Holding Co., Ltd. GM November 21,2014 No
g
Yao
Zhengwan Jiaxing Zhishifang Food Tech. Co., Ltd. Director December 24,2012 No
g
Independent
Yao
non-
Zhengwan Lingxiong Technology Group Co., Ltd. April 11,2023 No
executive
g
director
Yao
Zhengda Energy Development (China)
Zhengwan Supervisor February 9,2017 No
Co., Ltd.
g
Yao
Shenzhen Guosheng Energy Investment
Zhengwan Supervisor October 12,2006 Yes
Development Co., Ltd.
g
Yao
Shenzhen Longpeng Investment Co.,
Zhengwan Supervisor July 21,2009 No
Ltd.
g
Yao
Shenzhen Zhengrui Energy Tech. Co.,
Zhengwan Supervisor February 25,2016 No
Ltd.
g
Yao
Zhengwan Dalian Qingyi New Energy Co., Ltd. Supervisor December 26,2023 No
g
Yao
Fude Jinyu (Huzhou) Hydrogen Energy
Zhengwan Supervisor March 28,2024 No
Technology Research Co., Ltd
g
Yuan
Fujian Chanjuan Jewelry Co., Ltd. GM December 22,2020 No
Kang
Wang Shenzhen HuaxiaJunyong Robot
Supervisor May 9,2020 No
Guoxiang Technology Co., Ltd.
Wang
Shenzhen Youkaile Robot Co., Ltd. Director October 23,2025 No
Guoxiang
Guo Shenzhen Topmembranes Tech. Co., Chairman
August 25,2015 No
Qiuquan Ltd. and GM
Guo Independent
Zhouliufu Jewelry Co., Ltd. April 26,2024 No
Qiuquan director
Deputy
Zhan
Shenzhen Gold Coin Co., Ltd. financial May 1,2015 Yes
Qiyong
manager
Annual Report 2025
Yuan Chief
Fujian Luyuan Laws Firm September 1,2008 Yes
Qinghui lawyer
Explanati
on of
positions
N/A
held in
other
entities
Punishment of securities regulatory authority in recent three years to the company’s current and outgoing
directors, supervisors and senior management during the reporting period
□Applicable ?Not applicable
Decision-making procedures, recognition basis and payment for directors, supervisors and senior executives
Decision procedure of
remuneration of directors, According to relevant rules of the Article of Association, the general meeting of shareholders decides
supervisors, senior remuneration of directors and supervisors. The Board of Directors decides senior management’s.
management
Confirmation basis of The Company refers to the position rank and comprehensive industry level. And then general meeting of
remuneration of directors, shareholders approves compensation standard and allowance of independent directors. According to the
supervisors and senior "Interim Measures to Annual Performance Assessment of Executives" and performance evaluation
management standards the Company issues annual performance salary.
Actual payment of The Company strictly paid remuneration of directors, supervisors and senior management accordingly
remuneration of directors, with decision procedure and confirmation basis. Total payment for remuneration of directors,
supervisors and senior supervisors and supervisors amounted to 1.9559 million yuan from January to December in 2025.
management
Remuneration for directors, supervisors and senior executives in reporting period
In RMB 10,000
Total Whether
remuneration remuneration
Name Sex Age Title Post-holding status obtained from obtained from
the Company related party of
(before taxes) the Company
Wang
Male 44 Chairman Currently in office 68.68 No
Shenghong
Li Hai Male 57 Director, President Currently in office 81.43 No
Director, Secretary of
Sun Longlong Male 53 Currently in office 31.2 No
the Board, CFO
Guo Qiuquan Male 43 Independent director Currently in office 4.76 No
Zhan Qiyong Male 44 Independent director Currently in office 4.76 No
Yuan Qinghui Male 47 Independent director Currently in office 4.76 No
Total -- -- -- -- 195.59 --
Basis for assessing the actual remuneration received by all Determined according to the Company's concrete rules and
directors and senior management at the end of the reporting regulations, remuneration system, and performance evaluation
period system.
The independent directors' allowance paid to independent
directors are not subject to performance evaluation; non-
independent directors and senior executives receive
Completion of the assessment for the actual remuneration
corresponding remuneration based on the Company's
received by all directors and senior management at the end of
performance evaluation regulations. The performance
the reporting period
evaluation process is effectively executed and completed in
accordance with the Company's performance evaluation
regulations.
Deferred payment arrangements for the actual remuneration Not applicable
Annual Report 2025
received by all directors and senior management at the end of
the reporting period
Claw back status of the actual remuneration received by all
directors and senior management at the end of the reporting Not applicable
period
Other
□Applicable ?Not applicable
V. Performance of duties by directors during the reporting period
Attendance of directors at the board meetings and the general meeting of shareholders
Number Number
Whether to
of board Number of board Number
Number attend the General
meetings of board meetings of board
Name of of board board meetings of
attended meetings attended by meetings
director meetings meeting in shareholders
during the attended in means of attended by
absent from person twice attended
reporting person communicati proxy
in a row
period on
Wang
Shenghong
Li Hai 6 3 3 0 0 No 2
Sun
Longlong
Yao
Zhengwang
Yuan Kang 6 0 6 0 0 No 2
Wang
Guoxiang
Guo Qiuquan 6 0 6 0 0 No 2
Zhan Qiyong 6 1 5 0 0 No 2
Yuan
Qinghui
Explanation of failure to attend the board meeting in person twice in a row
Not applicable
Directors come up with objection about Company’s relevant matters
□Yes ?No
No directors come up with objection about Company’s relevant matters in the Period
The opinions from directors have been adopted
?Yes □No
Director's statement to the Company that a proposal has been or has not been adopted
Annual Report 2025
During the reporting period, the directors carefully deliberated all proposals submitted to the BOD and voted in
favour of the proposals that required voting, without any opposition or abstention, and raised no objection to the
VI. Performance of Duties by Specialized Committees under the Board Meeting in the Reporting Period
Specific
circumsta
Other nces of
Number of Important comments
Committee Meeting perform the
Members meetings Date of and suggestions
name content ance of objection
held meeting made
duties (if
applicable
)
Work in strict
accordance with the
Company Law,
Articles of
Regarding Association,
pre-audit Working Rules of the
communicati Audit Committee of
Not
February on for the the Board of
applicab N/A
le
report and relevant laws,
related regulations and
matters systems, be diligent
and dutiful, and fully
communicate and
discuss the related
matters
Work in strict
accordance with the
Company Law,
Articles of
Audit Communicati
Association,
Committee Zhan on with the
Working Rules of the
of the Qiyong, Guo governance
Eleventh Qiuquan, layer and Not
the Board of
Board of Yuan Kang April 11,2025 auditors applicab N/A
Directors and other
Directors regarding the le
relevant laws,
matters of
regulations and
the 2024
systems, be diligent
annual report
and dutiful, and fully
communicate and
discuss the related
matters
Work in strict
accordance with the
Company Law,
Articles of
Matters Association,
regarding Working Rules of the Not
April 15,2025 reappointme Audit Committee of applicab N/A
nt of 2024 the Board of le
audit firm Directors and other
relevant laws,
regulations and
systems, be diligent
and dutiful, and fully
Annual Report 2025
communicate and
discuss the related
matters
Work in strict
accordance with the
Company Law,
Articles of
Association,
Working Rules of the
The first Audit Committee of
Not
quarter report the Board of
April 27,2025 applicab N/A
of 2025 and Directors and other
le
other matters relevant laws,
regulations and
systems, be diligent
and dutiful, and fully
communicate and
discuss the related
matters
Work in strict
accordance with the
Company Law,
Articles of
Association,
Working Rules of the
Matters
Audit Committee of
involved in Not
August the Board of
the 2025 applicab N/A
semi-annual le
relevant laws,
report
regulations and
systems, be diligent
and dutiful, and fully
communicate and
discuss the related
matters
Work in strict
accordance with the
Company Law,
Articles of
Association,
Relevant Working Rules of the
items Audit Committee of
Not
October concerning the Board of
applicab N/A
le
financial relevant laws,
reports, etc. regulations and
systems, be diligent
and dutiful, and fully
communicate and
discuss the related
matters
Annual Report 2025
VII. Work of the Audit Committee
Whether the Audit Committee identified any risks at the Company during its supervisory activities in the
reporting period
□Yes ?No
The Audit Committee raised no objections to the matters supervised during the reporting period.
VIII. Particulars of workforce
Employee in-post of the parent Company at period-end(people) 26
Employee in-post of main Subsidiaries at period-end (people) 64
The total number of current employees at period-end(people) 90
The total number of current employees to receive pay (people) 90
Retired employee’ s expenses borne by the parent Company
and main Subsidiaries(people)
Professional composition
Category of professional composition Numbers of professional composition (people)
Production personnel 11
Salesperson 31
Technicians 17
Financial personnel 12
Administrative personnel 19
Total 90
Education background
Type of Education Numbers (people)
Master 1
Undergraduate 29
Junior college 33
Below junior college 27
Total 90
Formulated the remuneration policy according to the position title and comprehensive industry salary standards
In order to improve the quality of staff, the company has planned and targeted training activities every year. The
training activities for administrative personnel and technical staff mainly to improve their professional skills,
management quality and ability
□Applicable ?Not applicable
Annual Report 2025
IX. Profit distribution plan and capitalizing of common reserves plan
Formulation, Implementation and Adjustment of common stock Profit Distribution Policy Especially Cash
Dividend policy during the Reporting Period
□Applicable ?Not applicable
The company is profitable during the reporting period and the parent company has positive profit available for
distribution to shareholders but no cash dividend distribution plan has been proposed
□Applicable ?Not applicable
Profit distribution plan and capitalizing of reserves for the Period
□Applicable ?Not applicable
The Company has no plans of cash dividend distributed, no bonus shares and has no share converted from
capital reserve either for the year.
X. Implementation of the Company’s stock incentive plan, employee stock ownership plan or other
employee incentives
□Applicable ?Not applicable
During the reporting period, the Company has no stock incentive plan, employee stock ownership plan or other
employee incentives that have not been implemented.
XI. Construction and implementation of internal control system during the reporting period
In accordance with the provision of Basic Standards for Enterprise Internal Control and its supporting guidelines,
the Company renewal and improve the internal control system of the Company during the reporting period.
Established a set of internal control system with scientific design, simple application and effective operation.
Regularly, the Company carried out special work of system combing and optimization every year, and the work is
effectively integrated with the internal control assessment of the Company.Through the system evaluation,
achieved the improvement of the system, standardization of the effectiveness of the establishment and
optimization of the process, and full implementation.
□Yes ?No
XII. Management and controls on the subsidiary during reporting period
Problems
Integration Integration Measures taken Progress in Follow-up
Name encountered in
plans progress to resolve solution solution plan
integration
Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Anomalies in the management and control of subsidiaries
□Yes?No
Annual Report 2025
XIII. Internal control self-appraisal report or internal control audit report
Disclosure date of full internal control
April 21,2026
evaluation report
Disclosure index of full internal control
Self-Appraisal Report of Internal Control 2025 of CBC released on Juchao website
evaluation report
The ratio of the total assets of units
included in the scope of evaluation
accounting for the total assets on the 100.00%
company's consolidated financial
statements
The ratio of the operating income of
units included in the scope of evaluation
accounting for the operating income on 100.00%
the company's consolidated financial
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Material defect: (1) inefficiency of Material defect: (1) inefficiency of
environment control; (2) inefficiency of environment control; (2) inefficiency of
internal supervision; (3) direct impact on internal supervision; (3) direct impact on
major mistakes of investment decisions; major mistakes of investment decisions;
(4) directly make the significant error in (4) directly make the significant error in
the financial statements; (5) violation of the financial statements; (5) violation of
the laws, regulations, rules and other the laws, regulations, rules and other
normative documents, resulting in normative documents, resulting in
investigation of the central government investigation of the central government
and regulatory agencies, and being and regulatory agencies, and being
sentenced to a fine or penalty, being sentenced to a fine or penalty, being
restricted industry exit, canceling restricted industry exit, canceling
business license and being forced the business license and being forced the
closure of etc. Major defect: (1) indirect closure of etc. Major defect: (1) indirect
Qualitative criteria
impact on major mistakes of investment impact on major mistakes of investment
decisions; (2) indirectly make the decisions; (2) indirectly make the
significant error in the financial significant error in the financial
statements; (3) Lack of important statements; (3) Lack of important
system; (4) violation of the laws, system; (4) violation of the laws,
regulations, rules and other normative regulations, rules and other normative
documents, resulting in investigation of documents, resulting in investigation of
the local government and regulatory the local government and regulatory
agencies, and being sentenced to a fine agencies, and being sentenced to a fine
or penalty, and being ordered to suspend or penalty, and being ordered to suspend
business for rectification and cause the business for rectification and cause the
Company’s business stop of etc. General Company’s business stop of etc. General
defect: other control defect besides defect: other control defect besides
material defect and major defect. material defect and major defect.
profit: (1) General defect: less than or profit: (1) General defect: less than or
equal to pre-tax total profit of 3%, (2) equal to pre-tax total profit of 3%, (2)
Major defect: more than pre-tax total Major defect: more than pre-tax total
profit of 3%( and absolute amount more profit of 3%( and absolute amount more
than RMB 0.5 million), (3) Material than RMB 0.5 million), (3) Material
defect:: more than 5% of pre-tax total defect:: more than 5% of pre-tax total
profit and absolute amount more than profit and absolute amount more than
Quantitative standard RMB 1 million; 2. Potential loss or RMB 1 million; 2. Potential loss or
potential error of operating income: (1) potential error of operating income: (1)
General defect: less than or equal to General defect: less than or equal to
operating income of 1%, (2) Major operating income of 1%, (2) Major
defect: more than 1% of operating defect: more than 1% of operating
income and less than or equal to 3% of income and less than or equal to 3% of
operation income, (3) Material defect:: operation income, (3) Material defect::
more than 3% of operating income; 3. more than 3% of operating income; 3.
Potential loss or potential error of total Potential loss or potential error of total
Annual Report 2025
assets: (1) General defect: less than or assets: (1) General defect: less than or
equal to 1% of total assets, (2) Major equal to 1% of total assets, (2) Major
defect: more than 1% of total profit and defect: more than 1% of total profit and
less than or equal to 3% of total profit, less than or equal to 3% of total profit,
(3) Material defect:: more than 3% of (3) Material defect:: more than 3% of
total profit total profit
Amount of significant defects in
financial reports
Amount of significant defects in non-
financial reports
Amount of important defects in financial
reports
Amount of important defects in non-
financial reports
?Applicable □Not applicable
Deliberations in Audit Report of Internal Control
We considers that China Bicycle Company (Holdings)Co., Ltd. in line with Basic Norms of Internal Control and relevant
regulations, shows an effectiveness internal control of financial report in all major aspects dated 31 December 2025
Disclosure details of audit report of internal control Disclosed
Disclosure date of audit report of internal control (full-text) April 21,2026
Type of audit report on internal control Unqualified auditor’s report
Whether there is significant defect in non-financial report No
Whether the accounting firm has issued a non-standard opinion on the internal control audit report
□Yes?No
Whether the opinion in the internal control audit report issued by the accounting firm is consistent with that in
the Board of Directors' self-evaluation report
?Yes □No
Whether a non-standard internal control audit opinion was issued for the reporting period or the previous year
□Yes ?No
XIV. Rectification of issues identified in the self-inspection of the special actionon corporate governance
of listed companies
Not applicable
XV.Environmental information disclosure situation
Whether the listed companies and their main subsidiaries are included in the list of enterprises that disclose
environmental information according to law
□Yes ?No
XVI. Social responsibility
During the reporting period, the company conscientiously fulfilled its corporate social responsibility, paid
attention to protecting the interests of shareholders, especially minority shareholders; Treated suppliers, customers
and consumers with integrity; Earnestly fulfilled the responsibilities and obligations to the society, shareholders,
employees and other stakeholders, created a harmonious environment for enterprise development, and realized the
Annual Report 2025
common development of the enterprise and stakeholders.
The company strictly complies with the provisions of relevant laws and regulations such as the Company Law, the
Securities Law and the Governance Code for Listed Companies, continuously improves the corporate governance
structure, adheres to handing over the important matters to the resolutions of the shareholders' meeting, provides
convenience for medium and small investors to participate in the shareholders' meeting, fully listens to the small
and medium-sized investors’ reasonable advice on the company's development and governance, and safeguards
the legitimate rights and interests of shareholders.
In 2025, the board of directors of the company convened 2 shareholders' meetings, the meeting adopted the
combination of on-site voting and online voting, the votes of small and medium investors were counted separately,
provided convenience for the majority of investors to participate in the voting at the shareholders' meeting, and
ensured the participation right and supervision right of the small and medium-sized investors.
In 2025, the company strengthened communication with investors, especially investors from the public, answered
questions about which the public and investors concerned, and ensured the investors' right to know in line with the
Information Disclosure Affairs Management System and Reception and Promotion Work System and by means of
various forms such as the interactive platform of Shenzhen Stock Exchange, hotline of the company’s securities
affairs department, and so on.
On 15 May 2025, the company held the 2024 annual performance briefing, in which the company made online
communication with investors on the company's performance, operating conditions and other issues of concern to
investors. A total of questions were raised by investors during the briefing, which were answered by directors and
senior management personnel.
On November 20, 2025, the Company participated in the collective reception day for investors of the listed
companies in Shenzhen in 2025, and had an online exchange with investors on issues such as operating
conditions and performance commitments that investors concern about. During the reception day, all the
directors and senior management responded to the questions raised by investors.
The Company is committed to effectively protecting the rights and interests of investors by improving the
corporate governance structure, improving the level of information disclosure and investor relation management,
and carrying out investor education, and guiding investors to form a value investment concept through true and
effective communication. In order to effectively ensure the smooth service channels for investors, the Company
has arranged full-time staff to answer investors' hotline calls and answer questions from the interactive platform.
Relevant staff patiently analyze the announcement information to help investors keep abreast of the Company's
situation.
The company adheres to the people-oriented, comprehensively implements the Labor Law and Labor Contract
Law, attaches great importance to guarantee of the employees' rights and interests, at the same time, establishes
good communication channels throughout the whole process of staff management and care, pays attention to staff
growth, improves the staff overall quality, cultivates excellent internal training culture system, creates a good
learning environment. Meanwhile, the company pays attention to enriching the spiritual life of employees,
regularly carries out staff activities, and improves team cohesion. In accordance with the Labor Contract Law of
the People's Republic of China and other relevant national and local labor laws and regulations, the company signs
Annual Report 2025
labor contracts with employees to protect their rights and interests. The company and its subsidiaries strictly
implement the national employment system, labor protection system, social security system and medical security
system, and pay the housing provident fund, medical insurance, endowment insurance, unemployment insurance,
work-related injury insurance and maternity insurance for employees according to the state regulations. The
company adheres to corporate culture of efficient coordination, people-oriented, on-demand training, training by
level, and echelon training. The company establishes internal knowledge sharing system, promotes information
and knowledge exchange among various modules of the company, and improves team coordination ability. It
encourages employees to participate in continuing education and enhances the knowledge structure optimization
and professional quality promotion of workers at various positions.
The company actively organizes and carries out customer management, takes measures to ensure the rights and
interests of customers and actively promotes customer satisfaction and service excellence. It makes full use of the
rich social resources in the market, and establishes a good partnership with suppliers. The company promises not
to abuse or misuse consumer information for the protection of rights and interests of consumers.
XVII. Consolidating and expanding the achievements of poverty alleviation and rural revitalization
None
Annual Report 2025
Section V. Important Events
I. Implementation of commitment
and companies
?Applicable □Not applicable
Commitment Commitment party Type Content Date Term Implementation
After the completion of the non-public offering, within the scope of shareholder
rights that can be exercised by Wansheng Industrial \ I myself, the independence
of the listed company in terms of personnel, assets, finance, organization and
business will be guaranteed as follows:
I Personnel independence
officer, secretary of the board and other senior executives of the listed company
work full-time in the listed company and do not hold other positions except
Commitment director and supervisor in other enterprises controlled by Wansheng Industrial \ I
Wansheng Industrial
Commitments made to maintain
Holdings myself and do not receive salary in other enterprises controlled by Wansheng
in acquisition report the Valid for Normal
(Shenzhen) Co., November
or report on changes independence Industrial \ I myself. long term performance
Ltd. and Wang 7,2022
in equity of listed 2. Ensure that the financial personnel of the listed company are independent and
Shenghong
company
do not take part-time jobs or receive remuneration in other enterprises controlled
by Wansheng Industrial \I myself.
personnel and salary management system, which is completely independent from
other enterprises controlled by Wansheng Industrial \I myself.
II Assets independence
of the listed company are under the control of the listed company, and are
Annual Report 2025
independently owned and operated by the listed company. Ensure that other
enterprises controlled by Wansheng Industrial \I myself shall not occupy the
funds and assets of the listed company in any illegal way.
guarantee the debts of other enterprises controlled by Wansheng Industrial \I
myself .
III Financial independence
and independent financial accounting systems.
accounting system and a financial management system for its subsidiaries.
not share bank accounts with Wansheng Industrial \ I myself and other
enterprises under my control.
Wansheng Industrial \ I myself and other enterprises under my control do not
interfere in the use and procurement of funds of the listed company through
illegal means.
IV Business independence
ability to carry out business activities independently, and has the ability to
operate independently and sustainably in the market.
myself and other enterprises controlled by myself and the listed company.
Related transactions that cannot be avoided or have reasonable reasons shall be
conducted in accordance with the the law and the principle of openness, fairness
and justice.
V Institutional independence
Annual Report 2025
governance structure of the joint-stock company in accordance with the law and
has an independent and complete organizational structure.
directors, board of supervisors and senior executives of the listed company
independently exercise their functions and powers in accordance with laws,
regulations and the company's articles of association.
organizational structure, and there is no confusion between the listed company
and other enterprises controlled by Wansheng Industrial \ I myself .
VI Ensure that the listed Company is otherwise independent from Wansheng
Industrial \ I myself and other enterprises under my control
In case of any breach of the above commitments, thus causing economic losses
to the listed company, Wansheng Industrial \ I myself will indemnify the listed
company.
engage in any business or activity at home and abroad which is the same, or
similar to the existing business of the listed company and which constitutes or
may constitute direct or indirect competition to the existing business of the listed
company in any aspect in any way (including but not limited to sole
proprietorship, joint venture, cooperation and joint venture), nor provides any
Wansheng Industrial Commitment assistance in fund, business and management or provides any technical
Commitments made
Holdings to avoid information, business operation, sales channels and other trade secrets to
in acquisition report November Valid for Normal
(Shenzhen) Co., Ltd competition
or report on changes enterprises, institutions or other economic organizations competing with the 7,2022 long term performance
and Wang in the same
in equity listed company's existing business in any way;
Shenghong industry
that is engaged in the same or similar business as the listed company's existing
business, or any company, enterprise or other institution or organization that
competes with the listed company's existing business in any aspect;
opportunity obtained by Wansheng Industrial \ I myself from any third party
Annual Report 2025
constitutes or may constitute material competition with the existing business of
the listed company, Wansheng Industrial \ I myself will immediately notify the
listed company and try its best to transfer such business opportunity to the listed
company;
valid and irrevocable during the period when Wansheng Industrial \ I myself am
a shareholder holding more than 5% equity of the list company.
to its failure to fulfill the above commitments, Wansheng Industrial \ I myself
shall compensate the listed company for all the losses suffered thereby.
transaction between Wansheng Industrial/I myself and other companies
controlled by Wansheng Industrial/I myself and the listed company or any
related transaction that should be disclosed in accordance with laws and
regulations but not disclosed .
companies controlled by Wansheng Industrial/I myself will avoid and reduce
related transactions with the listed company as far as possible in accordance with
Wansheng Industrial laws, regulations and other normative documents. For related transactions that
Commitments made Commitment
Holdings cannot be avoided or occur for reasonable reasons, Wansheng Industrial/I myself
in acquisition report on regulating November Valid for Normal
(Shenzhen) Co., Ltd
or report on changes the related and other companies controlled by Wansheng Industrial/I myself will follow the 7, 2022 long term performance
and Wang
in equity transactions market principles of justice, fairness and openness, sign agreements with the
Shenghong
listed company according to law, perform legal procedures, comply with relevant
laws, regulations, other normative documents and the articles of association of
the listed company, and perform relevant internal decision-making procedures in
accordance with the law and timely fulfill the obligations of information
disclosure, ensure that the pricing of related transactions is fair and reasonable
and the trade terms are fair, guarantee not to use related transactions to illegally
transfer the funds and profits of the listed company nor to use such transactions
to engage in any behavior that damages the legitimate rights and interests of the
Annual Report 2025
listed company and other shareholders.
Industrial/I myself serve as the direct/indirect controlling shareholder/actual
controller of the listed company. Wansheng Industrial/I myself guarantee to
strictly fulfill all commitments in this letter of commitment. If any loss is caused
to the listed company due to violation of such commitments, Wansheng
Industrial/I myself will bear the corresponding liability for compensation.
After the completion of this non-public offering, the shares subscribed by
Wansheng Industrial is not allowed to be transferred within 36 months from the
date of listing of this stock issue. The non-public offering of shares of the
Wansheng Industrial
company acquired by the issuing object and the shares acquired as a result of the
Commitments made Holdings Commitment
company's allocation of stock dividends and the capital reserve converted into November Normal
at IPO or (Shenzhen) Co., Ltd on shares 36 months
refinancing and Wang restriction share capital shall also comply with the above share lock-in arrangement. After
Shenghong the expiration of the restriction period, it will be subject to the relevant
regulations of China Securities Regulatory Commission and Shenzhen Stock
Exchange.
For the next three years after the completion of the non-public offering of shares
and the completion of the adjustment of the board of directors and the board of
supervisors of Shenzhen China Bicycle by Wansheng Industrial, the net profit of
the listed company shall be no less than 30 million yuan, 35 million yuan and 40
million yuan respectively, that is, the cumulative net profits shall be 105 million
Wansheng Industrial yuan.
January 1,
Commitments made Holdings Performance If the actual cumulative net profits of the listed company fails to reach the
at IPO or (Shenzhen) Co., Ltd compensation November
cumulative net profits of the listed company in any year within the performance December performance
refinancing and Wang commitment 7,2022
commitment period, Wansheng Industrial shall compensate the listed company in 31,2025
Shenghong
cash within ten working days after the issuance of audit report of the listed
company in the current year within the performance commitment period.
The amount of compensation for the current year shall be calculated as follows:
Amount payable in the current year = Cumulative net profit committed by the
end of the current period - Cumulative net profit realized by the end of the
Annual Report 2025
current period - Cumulative amount compensated (if any)
beyond its authority, and do not occupy the company's interests;
out the returns and fulfill any commitments made to fill out the returns.
Commitment public offering of shares of the company, if the China Securities Regulatory
on dilution of
the Commission makes other new regulations on filling out the return measures and
Wansheng Industrial
immediate commitments, and the above-mentioned commitments cannot meet such
Commitments made Holdings
return on regulations of the China Securities Regulatory Commission, I myself promise to November Valid for Normal
at IPO or (Shenzhen) Co., Ltd
non-public 7,2022 long term performance
refinancing and Wang issue supplementary commitments in accordance with the latest regulations of
offering of A
Shenghong the China Securities Regulatory Commission at that time;
share and
measures to 4. As one of the subjects responsible for filling out the return measures, if I
be taken
myself violate the above commitments or refuse to perform the above
commitments, I myself agree that China Securities Regulatory Commission,
Shenzhen Stock Exchange and other securities regulatory authorities punish me
or take relevant management measures according to the relevant regulations and
rules formulated or issued by them.
under unfair conditions, and not to damage the interests of the company by other
Commitment means;
on dilution of 2. Promise to restrict my position-related consumption behavior;
the 3. Promise not to use the company's assets to engage in investment and
immediate
Commitments made Director and senior consumption activities unrelated to the performance of duties;
return on November Valid for Normal
at IPO or executive of the
non-public 4. Promise that the remuneration system formulated by the board of directors or 7,2022 long term performance
refinancing Company
offering of A the compensation committee will be linked to the implementation of the
share and
company's measures to fill out the returns;
measures to
be taken 5. Promise that the venting conditions of the future equity incentive plan will be
linked to the implementation of the company's measures to fill out the returns if
the company implements the equity incentive plan in the future, ;
Annual Report 2025
public offering of shares of the company, if the China Securities Regulatory
Commission makes other new regulations on filling out the return measures and
commitments, and the above-mentioned commitments cannot meet such
regulations of the China Securities Regulatory Commission, I myself promise to
issue supplementary commitments in accordance with the latest regulations of
the China Securities Regulatory Commission at that time;
myself violate the above commitments or refuse to perform the above
commitments, I myself agree that China Securities Regulatory Commission,
Shenzhen Stock Exchange and other securities regulatory authorities punish me
or take relevant management measures according to the relevant regulations and
rules formulated or issued by them.
Until the
date when
no longer subject to trading restrictions until the day prior to the fulfillment of
Commitment the
Wansheng Industrial the performance commitment under the "Cooperation Agreement," theCompany
to voluntarily November performance Performance
Other Holdings will not reduce the shares held in the listed company; if the performance
not reduce 7,2025 commitment completed
(Shenzhen) Co., Ltd compensation is involved, theCompany will not reduce the shares held in the
shareholdings for the year
listed company until the fulfillment of the performance compensation
obligations.
fulfilled
Whether
commitments are Yes
fulfilled on time
If any commitments
remain unfulfilled
beyond the agreed
period, the specific
Not applicable
reasons for no
fulfillment and the
next steps shall be
detailed
Annual Report 2025
forecasting period, explain reasons of reaching the original profit forecast
□Applicable ?Not applicable
?Applicable □Not applicable
Actual Amount
Committed
Commitment Promising Commitment Commitment Completed (in Completion
Amount (in 10
Background Party Period indicator 10 thousand Rate (%)
thousand Yuan)
Yuan)
Wansheng
Matter of
Industrial
Private
Holdings Year 2025 Net profit 4,000 4,532.45 113.31%
Placement of A
(Shenzhen)
Shares
Co., Ltd
Change in the Performance Commitment
□Applicable ?Not applicable
Commitments made by the Company shareholders and transaction counterparts regarding the operating
performance in the reporting year
?Applicable □Not applicable
According to the unqualified audit report No. 25016130011(2026)Huaxing Audit-issued by Huaxing
Certified Public Accountants (LLP) on April 17, 2026, the Shenzhen China Bicycle's net profit attributable to
owners of the parent company for 2025 was RMB 45,324,500, exceeding the performance commitment of RMB
its 2025 performance commitment, and the cumulative net profit attributable to owners of the parent company
during the performance commitment period has been fully completed.
Completion of Performance Commitment and Its Impact on Goodwill Impairment Testing
Not applicable
II. Non-operational fund occupation from controlling shareholders and its related party
□Applicable ?Not applicable
No non-operational fund occupation from controlling shareholders and its related party in period.
III. External guarantee out of the regulations
□Applicable ?Not applicable
No external guarantee out of the regulations occurred in the period.
IV. Statement on the latest “modified audit report” by BOD
□Applicable ?Not applicable
Annual Report 2025
V. Explanation from Board of Directors, Supervisory Committee and Independent Directors (if
applicable) for “Qualified Opinion” that issued by CPA
□Applicable ?Not applicable
VI. Explanation of the changes in accounting polices, accounting estimates or correction of significant
accounting errors compared with the financial report of the previous year
□Applicable ?Not applicable
No such cases in the reporting period.
VII. Compare with last year’s financial report; explain changes in consolidation statement’s scope
□Applicable ?Not applicable
No such cases in the reporting period.
VIII. Appointment and non-reappointment (dismissal) of CPA
Accounting firm appointed
Name of domestic accounting firm Huaxing Certified Public Accountants （LLP）
Remuneration for domestic accounting firm (in 10 thousand
Yuan)
Continuous life of auditing service for domestic accounting
firm
Name of domestic CPA Huang Guoxiang, Fu Zhitao, Yang Wangxiang
The continuous years of audit service by certified public
Continuous life of auditing service for domestic accounting accountants Huang Guoxiang and Fu Zhitao are 3 years, and
firm the continuous years of audit service by certified public
accountant Yang Wangxiang are 1 year.
Re-appointed accounting firms in this period
□Yes?No
Appointment of internal control auditing accounting firm, financial consultant or sponsor
?Applicable □Not applicable
During the reporting period, the company engaged Huaxing Certified Public Accountants （LLP） as the auditing
organ for internal control of the Company, and it is expected to pay 150,000 yuan for internal control auditing.
IX. Particular about delisting after annual report disclosed
□Applicable ?Not applicable
X. Bankruptcy reorganization
□Applicable ?Not applicable
No bankruptcy reorganization for the Company in reporting period
Annual Report 2025
XI. Significant lawsuits and arbitration of the Company
?Applicable □Not applicable
Amount Whether an Litigation
Litigation Progress of Execution of
involved (in estimated (arbitration) Disclosure Disclosure
(arbitration) litigation litigation
overview (arbitration) (arbitration)
Yuan) recognized and impact
Other
lawsuits and
arbitrations
(with the
company and
its
subsidiaries
as
No
defendants) Not yet in Not Not
that did not session applicable applicable
impact
meet the
threshold for
significant
litigation
disclosure
during the
reporting
period
XII. Penalty and rectification
□Applicable ?Not applicable
The Company had no penalty and rectification in the Period
XIII. Integrity of the company and its controlling shareholders and actual controllers
□Applicable ?Not applicable
XIV. Major related transaction
□Applicable ?Not applicable
No such cases in the reporting period.
□Applicable ?Not applicable
No related transactions by assets acquisition and sold for the Company in reporting period.
□Applicable ?Not applicable
No main related transactions of mutual investment outside for the Company in reporting period.
?Applicable □Not applicable
Annual Report 2025
Whether exist non-operating contact of related credit and debt or not
?Yes □No
Claim receivable from related party
Whether Balance Current
Current Current Balance
has non- at period- amount
recovery(i interest at period-
Related Relations Causes of business begin(in increased( Interest
n 10 (in 10 end((in 10
party hip formation capital 10 in 10 rate
thousand thousand thousand
occupyin thousand thousand
Yuan) Yuan) Yuan)
g or not Yuan) Yuan)
Wansheng
Controllin Performa
Industrial
g nce
Holdings( No 1,815.48 0 1,815.48 0.00% 0 0
sharehold commitm
Shenzhen
er ent
) Co., Ltd.
The impact of the
related claims on the
company's operating Not applicable
results and financial
position
Debts payable to related party
Current Current
Balance at amount Current Balance at
amount
period- interest(in period-
Related Relationshi Causes of increased(i returned (in
begin(in 10 Interest rate 10 end(in 10
party p formation n 10 10
thousand thousand thousand
thousand thousand
Yuan) Yuan) Yuan)
Yuan) Yuan)
Shenzhen
Guosheng Shareholde
Subsidiary
Energy r with over
Emmelle 650 0 0 0.00% 0 650
Investment 5% shares
loan
Developme held
nt Co., Ltd.
Influence on operation
result and financial statue
Not applicable
of the Company from
related debts
□Applicable ?Not applicable
There are no deposits, loans, credits or other financial business between the finance companies with associated
relationship and related parties
□Applicable ?Not applicable
There are no deposits, loans, credits or other financial business between the finance companies controlled by the
Company and related parties
□Applicable ?Not applicable
The company had no other material related transactions in reporting period.
Annual Report 2025
XV. Significant contract and implementations
(1) Trusteeship
□Applicable ?Not applicable
No trusteeship occurred in reporting period.
(2) Contract
□Applicable ?Not applicable
No contract occurred in reporting period.
(3) Leasing
□Applicable ?Not applicable
No leasing occurred in reporting period.
□Applicable ?Not applicable
No major guarantee occurred in reporting period.
(1) Trust financing
□Applicable ?Not applicable
No trust financing occurred in reporting period.
(2) Entrusted loans
□Applicable ?Not applicable
No entrusted loans occurred in reporting period.
□Applicable ?Not applicable
No other material contracts occurred in reporting period.
XVI. Explanation on other significant events
□Applicable ?Not applicable
No explanation of other important events in reporting period.
XVII. Significant event of subsidiary of the Company
?Applicable □Not applicable
Association
On December 3 and December 19, 2025, the Company held the 22nd (extraordinary) meeting of the 11th Board
of Directors and the first extraordinary general meeting of shareholders in 2025respectively, in which the
proposals regarding the adjustment of the Company's organizational structure, the amendment of the Articles of
Annual Report 2025
Association, and the revision of other related systems were reviewed and approved. In accordance with the
requirements of The Company Law, the "Transitional Arrangements for the Implementation of Supporting
System Rules of the New Company Law," the Guidelines for Articles of Association of Listed Companies, the
Shenzhen Stock Exchange Listing Rules, and the Shenzhen Stock Exchange's Self-Regulatory Guidelines No. 1
– Standardized Operations of Main Board Listed Companies, and in consideration of the Company's actual
situation, the Company decided that the Audit Committee would exercise the powers of the Supervisory Board
as stipulated by The Company Law, and adjustments would be made to the organizational structure. Meanwhile,
the relevant provisions of the Articles of Association and the corresponding systems were amended. For details,
please refer to the relevant announcements disclosed by the Company on Cninfo website on December 4 and
December 20, 2025.
According to the "Cooperation Agreement" signed by the Company with Wansheng Industry and Guosheng
Energy on December 14, 2020, and the unqualified audit report with report No. 25016130011(2026)Huaxing
Audit-issued by Huaxing Certified Public Accountants (LLP) on April 17, 2026, the net profit attributable to the
owners of the parent company of Shenzhen China Bicycle for the year 2025 was RMB 45,324,500, which
exceeded the performance commitment of RMB 40.00 million. The performance commitment completion rate
was 113.31%, and Wansheng Industry has fulfilled the 2025 performance commitment target. For details,
please refer to the Company's announcement titled "Announcement on the Completion of the 2025 Performance
Commitment of Wansheng Industry Holdings (Shenzhen) Co., Ltd." disclosed on Cninfo website on April 21,
Given that Wansheng Industrial has fulfilled the performance commitment (including performance
compensation) under the "Cooperation Agreement," as of the date of this announcement, Wansheng Industrial's
voluntary commitment made in November 2025 not to reduce its shareholding has been fully performed. For
details, please refer to the "Announcement on the Voluntary Commitment of the Controlling Shareholder Not to
Reduce the Company's Shares" disclosed by the Company on Cninfo website on November 5, 2025.
According to the approval from the China Securities Regulatory Commission on 'Approval for the Non-Public
Issuance of Shares by Shenzhen China Bicycle (Group) Co., Ltd.' (No. 3552[2021]CSRC 'Approval), the
Company non-publicly issued 137,836,986 RMB ordinary shares to Wansheng Industrial, with a lock-upperiod
of 36 months from the listing date of the issued shares. The restricted shares from this issuance were lifted for
trading on November 7, 2025. For details, please refer to the Company's Prompting Announcement on the
Lifting of Lock-Up and Circulation of Non-Publicly Issued Shares' disclosed on November 5, 2025.
In late November 2025, the Company received a notification from Guosheng Energy, a shareholder holding
more than 5% of the Company’s shares, informing that it had completed the pledge procedures for its shares in
the Company at the Shenzhen Branch of Shanghai Pudong Development Bank Co., Ltd. For details, please refer
to the Company’s "Announcement on the Pledge of Shares by the Shareholder Holding More than 5% shares of
the Company" disclosed on Cninfo website on November 27, 2025. During the current reporting period, the
contract has been normally fulfilled.
XVIII. Significant event of subsidiary of the Company
?Applicable □Not applicable
Annual Report 2025
The Company places high importance on intellectual property rights, actively fostering industry consensus on IP
protection and promoting continuous innovative breakthroughs and commercialization in gold jewelry design
and processing, thereby continuously enhancing its differentiated advantages and market competitiveness. On
December 31, 2024, the Company's wholly-owned sub-subsidiary Xinsen Precision entered into a patent
licensing contract with Shenzhen Saturday Jewellery, granting non-exclusive product sales rights specified in
the Patent Certificate of Utility Model (Certificate No. 17165569, 17645124, 18632060, 19511377, 20788110,
the agreement date until May 30, 2025. This transaction aims to leverage Saturday Jewellery's brand strength
and market channels to facilitate widespread adoption of new processes and realize efficient commercialization
of IP achievements, creating synergistic advantages and enhancing competitiveness in the gold jewelry industry.
For details, please refer to the Announcement on Signing Patent License Contract (No. 2024035) disclosed on
CNINF on January 2, 2025. The contract is performed normally during the reporting period.
Annual Report 2025
Section VI. Changes in Shares and Particulars about Shareholders
I. Changes in Share Capital
In Shares
Before the Change Increase/Decrease in the Change (+, -) After the Change
Capitaliza
New
Proportio Bonus tion of Proportio
Amount shares Others Subtotal Amount
n shares public n
issued
reserve
- -
I. Restricted 137,836,9
shares 86
owned 0 0.00% 0 0 0 0 0 0 0.00%
shares
owned legal
person’s
shares
domestic 20.00% 0 0 0 137,836,9 137,836,9 0 0.00%
shares 86
Including:
Domestic - -
legal 20.00% 0 0 0 137,836,9 137,836,9 0 0.00%
person’s 86
shares
Domestic
natural
person’s
shares
shares
Including:
Foreign
legal 0 0.00% 0 0 0 0 0 0 0.00%
person’s
shares
Foreign
natural
person’s
shares
II.
Unrestricte 80.00% 0 0 0 100.00%
d shares 47 86 86 33
Ordinary 43.96% 0 0 0 63.96%
shares 65 86 86 51
Domesticall
y listed 36.04% 0 0 0 0 0 36.04%
foreign 82 82
shares
listed
foreign
shares
III. Total 689,184,9 100.00% 0 0 0 0 0 689,184,9 100.00%
Annual Report 2025
shares 33 33
Reasons for share changed
?Applicable □Not applicable
Completion of Performance Commitment and Its Impact on Goodwill Impairment Testing
According to the China Securities Regulatory Commission's "Approval of the Non-Public Issuance of Shares by
Shenzhen China Bicycle (Group) Co., Ltd." (No. 3552 [2021] CSRC Approval), the Company issued
of 36 months from the date of listing of the issued shares. The lock-up shares were released and became
tradable on November 7, 2025. For details, please refer to the Company's prompting announcement "Regarding
the Lifting of Lock-Up and Circulation of Non-Publicly Issued Shares" disclosed on November 5, 2025.
□Applicable?Not applicable
Approval of share changed
□Applicable?Not applicable
Ownership transfer of share changed
□Applicable?Not applicable
Influence on the basic EPS and diluted EPS as well as other financial indexes of net assets per share attributable
to common shareholders of Company in latest year and period
□Applicable?Not applicable
Other information necessary to disclose or need to disclosed under requirement from security regulators
□Applicable?Not applicable
?Applicable □Not applicable
In Shares
Number of Number of
Number of Number of
restricted restricted
restricted restricted Reasons for Release date of
Shareholder shares in shares at the
shares at the shares released sales restriction sales restriction
increased this end of the
beginning in this period
period period
Wansheng Expiration of
Industrial the lock-up
November
Holdings 137,836,986 0 137,836,986 0 period for non-
(Shenzhen) publicly issued
Co., Ltd. shares
Total 137,836,986 0 137,836,986 0 -- --
II. Securities issuance and listing
□Applicable ?Not applicable
Annual Report 2025
liability structure
□Applicable ?Not applicable
□Applicable ?Not applicable
III. Shareholders and actual controller of the Company
In Shares
Total
Total
preferred
common
sharehold Total preferred
sharehol
ers with shareholders with
ders at
voting voting rights
end of
Total common rights recovered at end of
last
shareholders at end 48,682 46,956 recovered 0 last month before 0
month
of the Period at end of annual report
before
reporting disclosed (if
annual
period (if applicable) (found in
report
applicable note 8)
disclose
) (found in
d
note 8)
Particulars about shares held above 5% by shareholders or top ten shareholders（Excluding shares lent through
refinancing)
Amou Information of shares
Amount
Proporti Total nt of
Nature of Changes of un- pledged, tagged or frozen
Full name of on of shareholders restric
sharehold in report restricte
Shareholders shares at the end of ted State of
er period d shares Amount
held report period shares share
held
held
Domestic
Wansheng Industrial
non-state-
Holdings 137,836 Not
owned 20.00% 137,836,986 0 0 0
(Shenzhen) Co., ,986 applicable
legal
Ltd.
person
Domestic
Shenzhen Guosheng
non-state-
Energy Investment 63,508,
owned 9.22% 63,508,747 0 0 Pledge 63,508,747
Development Co., 747
legal
Ltd.
person
UOB Kay Hian Foreign
(Hong Kong) legal 5.92% 40,817,329 0 0 0
Limited person
China Merchants Foreign
Securities (HK) Co., legal 3.83% 26,425,174 0 0
Ltd person
Guosen Securities Foreign
(HK) Brokerage legal 3.04% 20,983,693 0 0 0
Co., Ltd. person
ShenwanHongyuan Foreign
Securities (Hong legal 1.20% 8,279,256 0 0 0
Kong) Co., Ltd. person
Domestic 3,891,1 Not
Li Huili 0.56% 3,891,124 0 0 0
nature 24 applicable
Annual Report 2025
person
Foreign
BARCLAYS 1,758,56 3,862,70 Not
legal 0.56% 3,862,700 0 0
BANK PLC 0 0 applicable
person
Goldman Sachs Foreign
International － legal 0.51% 3,528,234 0 0
Self-fund person
China Agricultural
Bank Co., Ltd.－
Yongying CSI
SHSZHK Gold
Industry Stock Other 0.50% 3,460,000 0 0
Exchange-Trading
Open-Ended Index
Securities
Investment Fund
Strategy investors or general
corporation comes top 10
common stock shareholders due N/A
to placement of new shares(if
any) (see note 3)
Li Huili, spouse of Ji Hanfei, the actual controller of Shenzhen Guosheng Energy Investment
Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng
Explanation on associated
Energy Investment Development Co., Ltd., other than that, the Company does not know
relationship among the aforesaid
whether the other outstanding shareholders are related and whether the shareholders belong
shareholders
to persons acting in concert regulated in the Administration of Disclosure of Information on
the Change of Shareholders in Listed Companies.
Description of the above
shareholders in relation to
N/A
delegate/entrusted voting rights
and abstention from voting rights.
Special note on the repurchase
account among the top 10 N/A
shareholders (if any) (see note 10)
Shareholding of top 10 shareholders of unrestricted shares(Excluding shares lent through refinancing and Top management lock-in
stock)
Type of shares
Shareholders’ name Amount of un-restrict shares held at Period-end
Type Amount
RMB
Wansheng Industrial Holdings
(Shenzhen) Co., Ltd.
shares
Shenzhen Guosheng Energy RMB
Investment Development Co., 63,508,747 common 63,508,747
Ltd. shares
Domestica
UOB Kay Hian (Hong Kong) lly listed
Limited foreign
shares
Domestica
China Merchants Securities (HK) lly listed
Co., Ltd foreign
shares
Domestica
Guosen Securities (HK) lly listed
Brokerage Co., Ltd. foreign
shares
Shenwan Hongyuan Securities 8,279,256 Domestica 8,279,256
Annual Report 2025
(Hong Kong) Co., Ltd. lly listed
foreign
shares
Domestica
lly listed
Li Huili 3,891,124 3,891,124
foreign
shares
RMB
BARCLAYS BANK PLC 3,862,700 common 3,862,700
shares
RMB
Goldman Sachs International －
Self-fund
shares
China Agricultural Bank Co., Ltd.
－Yongying CSI SHSZHK Gold RMB
Industry Stock Exchange-Trading 3,460,000 common 3,460,000
Open-Ended Index Securities shares
Investment Fund
Expiation on associated Li Huili, spouse of Ji Hanfei, the actual controller of Shenzhen Guosheng Energy Investment
relationship or consistent actors Development Co., Ltd., holding B-share of the Company on behalf of Shenzhen Guosheng
within the top 10 un-restrict Energy Investment Development Co., Ltd., other than that, the Company does not know
shareholders and between top 10 whether the other outstanding shareholders are related and whether the shareholders belong
un-restrict shareholders and top to persons acting in concert regulated in the Administration of Disclosure of Information on
Explanation on top 10
shareholders involving margin N/A
business (if any) (see note 4)
Note 1： UOB Kay Hian (Hong Kong) Limited is a licensed corporation under the Hong Kong Securities and Futures Ordinance,
providing securities brokerage services to retail and institutional clients. Its main business is brokerage of Hong Kong stocks, and
it also provides securities brokerage and services in overseas markets. According to the email sent by UOB Kay Hian (Hong
Kong) Limited, as of December 31, 2025, UOB Kay Hian (Hong Kong) Limited held 40,817,329 B shares of Shenshen China
Bicycle for three retail customers. Although the shareholding ratio has reached 5.92%, that of a single customer did not exceed
platforms.
Information of shareholders holding more than 5% of the shares, the top 10 shareholders and the top 10
shareholders of unrestricted tradable shares participating in the lending of shares in securities lending and
borrowing business
□ Applicable √ Not applicable
The top 10 shareholders and the top 10 shareholders of unrestricted tradable shares have changed compared
with the previous period due to the securities lending/returning of shares in securities lending and borrowing
business
□ Applicable √ Not applicable
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-
back agreement dealing in reporting period.
□ Yes √ No
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
Nature of controlling shareholders: controlled by natural person
Type of controlling shareholders: Legal person
Annual Report 2025
Legal person
Controlling
/Responsible Establishment date Organizational Code Main business
shareholder
person
Investment in industry
(Separately declared for specific
item) Jewelry manufacturing;
Jewelry wholesale; Jewelry retail;
Gold and silver products sales;
Wansheng Industrial
Wang 91440300MA5DCB5 Domestic trade agency（(except
Holdings (Shenzhen) May 10, 2016
Shenghong K9A
Co., Ltd. for projects subject to approval in
accordance with the law,
independently carry out business
activities with a business license
in accordance with the law)
Shareholdings in other
listed companies in and
out of China that
controlled and N/A
participated by the
controlling shareholder
during reporting period
Changes of controlling shareholder in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period.
Nature of actual controller:Domestic nature person
Type of actual controller: Natural person
Whether to obtain the
Relationship with the actual
Actual controller Nationality residency in other countries or
controller
regions
Wang Shenghong The person himself P.R.C No
Principal occupation and
Wang Shenghong currently is the Chairman of the Company
position
The listed companies in and
out of China that controlled N/A
by Wang in the past 10 years
Changes of actual controller in reporting period
□ Applicable √ Not applicable
No changes of controlling shareholder for the Company in reporting period
Block Diagram of the ownership and control relations between the company and the actual controller
Annual Report 2025
Actual controller controlling the Company by entrust or other assets management
□Applicable ?Not applicable
its persons acting in concert accounts for 80% of the shares held by them
□Applicable ?Not applicable
□Applicable ?Not applicable
restructuring side and other commitment subjects
□Applicable ?Not applicable
IV. The specific implementation of shares buy-back during the reporting period
Implementation progress of shares buy-back
□Applicable ?Not applicable
Implementation progress of the reduction of repurchases shares by centralized bidding
□Applicable ?Not applicable
V. Preferred stock
□Applicable?Not applicable
The Company had no preferred stock in the Period.
Annual Report 2025
Section VII. Preferred Stock
□Applicable ?Not applicable
Annual Report 2025
Section VIII. Financial Report
I. Audit Report
Type of audit opinion Standard Unqualified Opinion
Signing date of audit report April 17, 2026
Name of audit institute HuaxingCeritified Public Accountants（LLP）
Name of the CPA Huang Gluoxiang, Fu Zhitao, Yang Wangxiang
Audit report
To Shareholders of Shenzhen China Bicycle Company (Holdings) Co., Ltd.
I. Auditor’s opinion
We have audited the financial statements under the name of Shenzhen China Bicycle Company (Holdings) Co.,
Ltd. (hereinafter the “CBC Company”), which included the consolidated and parent company’s balance sheet as
of December 31,2025, the consolidated and parent company’s profit statement, the consolidated and parent
company’s statement of cash flow and the consolidated statement of changes in equity of the Company and parent
company’s for the year of 2025, together with the relevant annotations thereto.
We have the view that the attached financial statements are prepared in accordance with the Accounting Standards
for Business Enterprises in all material aspects, which reflect fairly the consolidated financial position of the
Company and parent company’s as of 31 December 2025 and the operating results and cash flow of the Company
and parent company’s for the year of 2025.
II. Basis for audit opinions
We conducted this audit under the requirements of the Auditing Standards of the Certified Public Accountant of
the PRC. The section headed “Certified Public Accountant’s responsibility for audit of financial statement” in the
audit report has further clarified our responsibilities under these standards. Pursuant to the code of professional
conduct as certified public accountant in the PRC, we are independent of the CBC Company and have performed
other responsibility as required by our professional ethics. We believe that the audit evidence obtained by us is
sufficient and adequate, which provides foundation for us to issue audit opinion.
III. Key audit items
Key audit items refer to those which in our opinion based on our professional judgment are the most important
issues in respect of audit for the current financial statements. We issue audit opinions on these issues in their entity
and provide no opinions separately for each of them.
Annual Report 2025
Key audit items identified in our audit:
(1) Description of items
Shenzhen China Bicycle Company is mainly engaged in businesses such as gold jewelry, bicycles and
electric vehicles, and lithium battery materials. In 2025, the main business income of Shenzhen China Bicycle
Company was RMB 735,877,268.75, all of which was generated by domestic sales. Due to the large amount of
operating income, there may be potential misstatement in the authenticity of income and whether it is included
in the appropriate accounting period have a significant impact on the operating results of Shenzhen China
Bicycle Company in 2025. Therefore, we regard revenue recognition as a key audit item.
Please refer to the accounting policies described in Note III. (XXXIII) Income and Note V (XXVI)
Operating Income and Operating Costs to the financial statements.
(2) Audit response
For this key audit item, we have mainly implemented the following procedures:
① Understand, evaluate and test the effectiveness of the internal control design and operation related to
sales and collection in Shenzhen China Bicycle Company;
② Check the relevant clauses of customer contracts, pay attention to whether the pricing method,
acceptance method, delivery place and time limit, and settlement method have changed, and evaluate whether
the income recognition of Shenzhen China Bicycle Company conforms to the provisions of the Accounting
Standards for Business Enterprises and the disclosed accounting policies;
③ Inquire and understand the background information of major customers through open channels, such as
industrial and commercial registration materials, to confirm whether there is a potential unidentified related-
party relationship between customers and Shenzhen China Bicycle Company and related parties;
④ Implement substantive analysis procedures, such as the analysis of income growth changes and the
analysis of income, cost and gross profit margin of various products compared with the previous period, and
compare them with the same industry to judge whether the income amount in the current period fluctuates
abnormally;
⑤ Combined with the audit of accounts receivable, confirm with the main customers the current
transaction amount and balance by writing, and visit the important customers to verify the authenticity of the
income recognition of Shenzhen China Bicycle Company;
⑥ Carry out detail test, check major customer contracts, inbound and outbound orders, delivery notes and
delivery receipt records, etc.;
⑦For the sales revenue recognized before and after the balance sheet date, sample the supporting
documents such as the outbound order and the customer's receipt form to evaluate whether the revenue is
included in the appropriate accounting period.
Annual Report 2025
(1) Description of items
As of December 31, 2025, the balance of accounts receivable of Shenzhen China Bicycle Company was
RMB232,662,589.35, and the balance of bad debt provision was RMB 27,880,253.47. Because the balance of
accounts receivable is significant and the assessment of bad debt provision involves the management's great
judgment, we regard the impairment of accounts receivable as a key audit item.
Please refer to the accounting policies stated in Note III. (XIII) Accounts Receivable and Note V. (II)
Accounts Receivable to the financial statements.
(2) Audit response
For this key audit item, we have mainly implemented the following procedures:
of accounts receivable management.
debt provision of accounts receivable, and review whether the major standards of single amount determined by
the management are reasonable.
for management to estimate the estimated future recoverable amount, including customer credit records, default
or delayed payment records and actual repayment after the period, and review the rationality.
analyze the rationality of accounting estimation of bad debt provision for accounts receivable in Shenzhen
China Bicycle Company, and select samples to test the accuracy of aging.
IV. Other information
The management of CBC Company (hereinafter, the Management) is responsible for other information, which
includes the information covered in the Annual Report of 2024 except for the financial statements and our audit
report.
Our audit opinion issued on financial statement does not cover other information, and we would not issue any
form of verification conclusion for those information.
To prepare our audit on financial statement, we are required to read other information, and during the procedure,
to consider that whether other information differs materially from the financial statement or the information
obtained by us during the audit or whether there exits material error.
Based on the works done by us, in case we find any material error in other information, we shall report this fact.
In this regard, we have nothing to report.
V.Management’s responsibility for financial statement
Annual Report 2025
The Management is responsible for preparing financial statements according to the Business Accounting
Standards which make fair reflection, and for designing, implementing and maintaining necessary internal control
system to make sure that there is no material misstatement in the financial statements due to fraud or mistake.
When preparing the financial statements, the management is responsible for assessing the Company’s ability of
continuous operation, disclosing the matters relating to continuous operation(if applicable) and applying the
assumption of continuous operation, unless the management plans to liquidate the Company, terminate operation
or has no other practicable choice.
The governance is responsible for monitoring the financial reporting process of the CBC Company.
VI. Auditor’s responsibility for audit of the financial statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with auditing standards will always be found in the presence of a material misstatement.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 auditing standards, we exercise professional judgment and maintain
professional skepticism 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 management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting 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 to draw attention in our auditor’s report to the related disclosures in these
financial statements or, if such disclosures are inadequate, we have 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, 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 adequate and appropriate audit evidence in relation to the financial information of the entities or
Annual Report 2025
business transactions of the Company, in order to issue audit opinion on the financial statement. We are
responsible for guiding, supervising and executing the audit for the Group, and we accept full responsibility for
the 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 to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were 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 extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
II. Financial statement
Unit in note of financial statement refers to CNY: RMB (Yuan)
Prepared by Shenzhen China Bicycle Company (Holdings)Co., Ltd.
December 31, 2025
In RMB
Item December 31,2025 January 1,2025
Current assets:
Monetary fund 75,474,633.65 80,974,360.59
Settlement provisions
Capital lent
Trading financial assets
Derivative financial assets
Note receivable 0.00 0.00
Account receivable 204,782,335.88 233,608,634.59
Receivable financing
Accounts paid in advance 1,095,681.96 931,762.60
Insurance receivable
Reinsurance receivables
Contract reserve of reinsurance
receivable
Other account receivable 818,967.94 18,883,650.76
Including: Interest receivable
Dividend receivable
Buying back the sale of financial assets
Inventory 184,690,307.34 84,349,675.00
Annual Report 2025
Including：Data resources
Contractual assets 0.00 0.00
Assets held for sale
Non-current asset due within one year
Other current assets 372,060.27 2,934,787.58
Total current assets 467,233,987.04 421,682,871.12
Non-current assets:
Loans and payments on behalf
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 325.34 830,481.86
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fixed assets 2,792,361.64 2,931,163.10
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets 2,299,304.81 3,836,085.90
Intangible assets
Including：Data resources
Expense on Research and
Development
Including：Data resources
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 5,678,263.45 5,171,495.77
Other non-current asset
Total non-current asset 10,770,255.24 12,769,226.63
Total assets 478,004,242.28 434,452,097.75
Current liabilities:
Short-term loans 23,450,000.00 9,900,000.00
Loan from central bank
Capital borrowed
Trading financial liability
Derivative financial liability
Note payable
Account payable 3,367,256.93 7,636,699.51
Accounts received in advance
Contract liability 67,520.83 4,868,279.05
Selling financial asset of repurchase
Absorbing deposit and interbank deposit
Security trading of agency
Security sales of agency
Wage payable 1,428,188.47 807,688.20
Taxes payable 9,443,636.36 4,490,392.21
Annual Report 2025
Other account payable 43,263,973.18 33,704,488.43
Including: Interest payable
Dividend payable
Commission charge and commission
payable
Reinsurance payable
Liability held for sale
Non-current liabilities due within one
year
Other current liabilities 8,777.82 302,687.60
Total current liabilities 82,462,240.05 63,100,054.85
Non-current liabilities:
Insurance contract reserve
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 1,662,092.35 3,212,882.77
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 1,662,092.35 3,212,882.77
Total liabilities 84,124,332.40 66,312,937.62
Owner’s equity:
Share capital 689,184,933.00 689,184,933.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 797,709,204.77 797,709,204.77
Less: Inventory shares
Other comprehensive income -630,231.12
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Provision of general risk
Retained profit -1,134,676,946.45 -1,175,806,118.62
Total owner’ s equity attributable to
parent company
Minority interests 9,619,722.67 24,377,913.97
Total owner’ s equity 393,879,909.88 368,139,160.13
Total liabilities and owner’ s equity 478,004,242.28 434,452,097.75
Legal Representative: Wang Shenghong
Person in charge of Accounting Works: Sun Longlong
Person in charge of Accounting Institution: Tan Ningjie
In RMB
Item December 31,2025 January 1,2025
Annual Report 2025
Current assets:
Monetary fund 51,969,396.29 43,100,182.78
Trading financial assets
Derivative financial assets
Note receivable
Account receivable 77,351,682.63 96,617,648.86
Receivable financing
Accounts paid in advance 60,726.93 38,433.55
Other account receivable 47,383,281.34 59,769,403.49
Including: Interest receivable
Dividend receivable
Inventory 86,834,671.79 48,492,400.18
Including：Data resources
Contractual assets
Assets held for sale
Non-current asset due within one year
Other current assets 410,718.01
Total current assets 263,599,758.98 248,428,786.87
Non-current assets:
Debt investment
Other debt investment
Long-term account receivable
Long-term equity investment 147,696,069.73 126,995,379.73
Investment in other equity instrument
Other non-current financial assets
Investment real estate
Fix assets 2,199,853.55 2,455,032.62
Construction in progress
Productive biological asset
Oil and gas asset
Right-of-use assets 903,638.19
Intangible assets
Including：Data resources
Expense on Research and Development
Including：Data resources
Goodwill
Long-term expenses to be apportioned
Deferred income tax asset 5,128,532.35 4,747,908.10
Other non-current asset
Total non-current asset 155,928,093.82 134,198,320.45
Total assets 419,527,852.80 382,627,107.32
Current liabilities:
Short-term loans 18,800,000.00 9,900,000.00
Trading financial liability
Derivative financial liability
Note payable
Account payable 320,838.71 943,733.90
Annual Report 2025
Accounts received in advance
Contract liability 10,518.03 3,539,823.01
Wage payable 439,896.05 429,873.60
Taxes payable 5,563,506.55 1,623,423.76
Other account payable 34,529,910.61 26,994,291.79
Including: Interest payable
Dividend payable
Liability held for sale
Non-current liabilities due within one
year
Other current liabilities 1,367.35 460,176.99
Total current liabilities 60,095,903.24 43,891,323.05
Non-current liabilities:
Long-term loans
Bonds payable
Including: Preferred stock
Perpetual capital securities
Lease liability 498,627.70
Long-term account payable
Long-term wages payable
Accrual liability
Deferred income
Deferred income tax liabilities
Other non-current liabilities
Total non-current liabilities 498,627.70
Total liabilities 60,594,530.94 43,891,323.05
Owner’s equity:
Share capital 689,184,933.00 689,184,933.00
Other equity instrument
Including: Preferred stock
Perpetual capital securities
Capital public reserve 809,077,277.12 809,077,277.12
Less: Inventory shares
Other comprehensive income
Reasonable reserve
Surplus public reserve 32,673,227.01 32,673,227.01
Retained profit -1,172,002,115.27 -1,192,199,652.86
Total owner’ s equity 358,933,321.86 338,735,784.27
Total liabilities and owner’ s equity 419,527,852.80 382,627,107.32
In RMB
Item 2025 2024
I. Total operation revenue 735,877,268.75 579,869,315.88
Including: Operation revenue 735,877,268.75 579,869,315.88
Interest income
Insurance gained
Commission charge and commission
income
Annual Report 2025
II. Total operation cost 677,126,803.09 558,182,737.82
Including: Operation cost 657,982,700.68 545,432,979.84
Interest expense
Commission charge and commission
expense
Cash surrender value
Net amount of expense of compensation
Net amount of withdrawal of insurance
contract reserve
Bonus expense of guarantee slip
Reinsurance expense
Tax and surcharge 849,078.47 462,744.00
Sales expenses 7,781,965.50 4,570,304.44
Administrative expenses 9,155,180.33 6,736,713.22
R&D expenses 620,019.89 644,200.69
Financial expenses 737,858.22 335,795.63
Including: Interest expenses 722,837.20 359,642.09
Interest income 11,368.01 49,490.86
Add: Other income 1,000.00 5,771.92
Investment income (Loss is listed with “-
-250,956.41 -169,516.95
”)
Including: Investment income on
-70,156.52 -169,518.14
affiliated company and joint venture
The termination of income recognition
for financial assets measured by
amortized cost
Exchange income (Loss is listed with “-
”)
Net exposure hedging income (Loss is
listed with “-”)
Income from change of fair value (Loss
is listed with “-”)
Loss of credit impairment (Loss is listed
-1,729,744.47 -1,196,122.15
with “-”)
Impairment loss on assets(Loss is listed
-1,098,841.00 -375,230.63
with “-”)
Income from assets disposal (Loss is
listed with “-”)
III. Operation profit (Loss is listed with
“-”)
Add: Non-operating income 5,359,322.51 7,625,835.03
Less: Non-operating expense 4,880,821.69 5,549,235.96
IV. Total profit (Loss is listed with “-”) 56,150,424.60 22,028,079.32
Less: Income tax expense 14,754,443.73 6,189,827.79
V. Net profit (Net loss is listed with “-”) 41,395,980.87 15,838,251.53
(i) Classify by business continuity
Annual Report 2025
loss listed with ‘-”)
listed with ‘-”)
(ii) Classify by ownership
of parent company
VI. Net other comprehensive income
-630,231.12
after taxation
Net other comprehensive income
attributable to owners of parent company -630,231.12
after taxation
(i) Other comprehensive income items
which will not be reclassified
subsequently to profit of loss
that re-measured
equity method that cannot be transfer to
gain/loss
other equity instrument
risk
(ii) Other comprehensive income items
which will be reclassified subsequently -630,231.12
to profit or loss
equity method that can transfer to
gain/loss
investment
to other comprehensive income
debt investment
translation of foreign currency financial -630,231.12
statements
Net other comprehensive income
attributable to minority shareholders
after taxation
VII. Total comprehensive income 40,765,749.75 15,838,251.53
Total comprehensive income
attributable to owners of parent 40,498,941.05 16,845,245.59
Company
Total comprehensive income attributable
to minority shareholders
VIII. Earnings per share:
(i)Basic EPS 0.06 0.02
(ii)Diluted EPS 0.06 0.02
As for the enterprise combined under the same control, net profit of 0 Yuan achieved by the merged party before
combination while 0 Yuan achieved last period.
Annual Report 2025
Legal Representative: Li Hai Person in charge of Accounting Works: Sun Longlong Person in charge of
Accounting Institution: Tan Ningjie
In RMB
Item 2025 2024
I. Operation revenue 320,038,466.38 177,481,391.93
Less: Operation cost 286,159,534.67 161,790,608.12
Tax and surcharge 443,315.65 114,764.44
Sales expenses 157,172.49 116,466.22
Administrative expenses 3,563,451.05 2,733,926.53
R&D expenses 620,019.89 584,420.62
Financial expenses 528,281.71 25,239.93
Including: Interest expenses 522,155.29 20,626.67
Interest income 5,534.34 9,585.18
Add: Other income 1,590.64
Investment income (Loss is listed with “-”) -180,799.89
Including: Investment income on affiliated
company and joint venture
The termination of income recognition for
financial assets measured by amortized
cost(Loss is listed with “-”)
Net exposure hedging income (Loss is listed
with “-”)
Income from change of fair value (Loss is
listed with “-”)
Loss of credit impairment (Loss is listed with
-1,117,282.02 -311,125.75
“-”)
Impairment loss on assets(Loss is listed with
-590,016.98 -330,239.39
“-”)
Income from assets disposal (Loss is listed
with “-”)
II. Operation profit(Loss is listed with “-”) 26,678,592.03 11,476,191.57
Add: Non-operating income 5,099,570.47 6,019,620.16
Less: Non-operating expense 4,876,700.86 5,533,145.30
III. Total profit (Total losses are listed with “-
”)
Less: Income tax expense 6,703,924.05 2,932,707.50
IV. Net profit (Net loss is listed with “-”) 20,197,537.59 9,029,958.93
(i)Continuous operating net profit (net loss
listed with ‘-”)
(ii)Termination of net profit (net loss listed
with ‘-”)
V. Net other comprehensive income after
taxation
(i) Other comprehensive income items which
will not be reclassified subsequently to profit
of loss
Annual Report 2025
re-measured
method that cannot be transfer to gain/loss
equity instrument
(ii) Other comprehensive income items
which will be reclassified subsequently to
profit or loss
method that can transfer to gain/loss
investment
other comprehensive income
investment
translation of foreign currency financial
statements
VI. Total comprehensive income 20,197,537.59 9,029,958.93
VII. Earnings per share:
(i)Basic EPS
(ii)Diluted EPS
In RMB
Item 2025 2024
I. Cash flows arising from operating
activities:
Cash received from selling commodities
and providing labor services
Net increase of customer deposit and
interbank deposit
Net increase of loan from central bank
Net increase of capital borrowed from
other financial institution
Cash received from original insurance
contract fee
Net cash received from reinsurance
business
Net increase of insured savings and
investment
Cash received from interest,
commission charge and commission
Net increase of capital borrowed
Net increase of capital from repurchase
business
Net cash received by agents in sale and
purchase of securities
Annual Report 2025
Write-back of tax received 258.19 193,128.35
Other cash received concerning
operating activities
Subtotal of cash in-flow arising from
operation activity
Cash paid for purchasing commodities
and receiving labor service
Net increase of customer loans and
advances
Net increase of deposits in central bank
and interbank
Cash paid for original insurance contract
compensation
Net increase of capital lent
Cash paid for interest, handling charge
and commission
Cash paid for bonus of guarantee slip
Cash paid to/for staff 11,549,361.62 10,116,025.23
Taxes paid 15,712,068.58 9,198,987.28
Other cash paid concerning operating
activities
Subtotal of cash out-flow arising from
operation activity
Net cash flow arising from operating
-19,515,276.55 -17,152,733.19
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment income 1.19
Net cash received from disposal of fixed,
intangible and other long-term assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash in-flow arising from
investment activity
Cash paid for purchasing fixed,
intangible and other long-term assets
Cash paid for investment 1,010,000.00
Net increase of mortgaged loans
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
Subtotal of cash out-flow arising from
investment activity
Net cash flow arising from investment
-229,257.48 -1,500,689.67
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Including: Cash received from absorbing 24,745,000.00
Annual Report 2025
minority shareholders’ investment by
subsidiaries
Cash received from loans 15,000,000.00 10,000,000.00
Other cash received concerning
financing activities
Subtotal of cash in-flow arising from
financing activity
Cash paid for settling debts 1,450,000.00 100,000.00
Cash paid for dividend and profit
distributing or interest paying
Including: Dividend and profit of
minority shareholder paid by subsidiaries
Other cash paid concerning financing
activities
Subtotal of cash out-flow arising from
financing activity
Net cash flow arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in -343,428.55
exchange rate
V. Net increased amount of cash and cash
-5,324,860.92 26,650,820.17
equivalent
Add: Balance of cash and cash
equivalents at the period -begin
VI. Balance of cash and cash equivalents
at the period -end
In RMB
Item 2025 2024
I. Cash flows arising from operating
activities:
Cash received from selling
commodities and providing labor 375,696,872.62 291,842,590.75
services
Write-back of tax received
Other cash received concerning
operating activities
Subtotal of cash in-flow arising from
operation activity
Cash paid for purchasing commodities
and receiving labor service
Cash paid to/for staff 4,862,883.89 3,498,051.52
Taxes paid 5,935,073.24 6,589,806.72
Other cash paid concerning operating
activities
Subtotal of cash out-flow arising from
operation activity
Net cash flow arising from operating
activities
II. Cash flows arising from investing
activities:
Cash received from recovering
investment
Cash received from investment income
Annual Report 2025
Net cash received from disposal of
fixed, intangible and other long-term
assets
Net cash received from disposal of
subsidiaries and other units
Other cash received concerning investing
activities
Subtotal of cash in-flow arising from
investment activity
Cash paid for purchasing fixed,
intangible and other long-term assets
Cash paid for investment 20,700,690.00 6,485,000.00
Net cash received from subsidiaries and
other units obtained
Other cash paid concerning investing
activities
Subtotal of cash out-flow arising from
investment activity
Net cash flow arising from investment
-20,723,840.44 -6,685,600.00
activities
III. Cash flows arising from financing
activities:
Cash received from absorbing
investment
Cash received from loans 10,000,000.00 10,000,000.00
Other cash received concerning
financing activities
Subtotal of cash in-flow arising from
financing activity
Cash paid for settling debts 1,100,000.00 100,000.00
Cash paid for dividend and profit
distributing or interest paying
Other cash paid concerning financing
activities
Subtotal of cash out-flow arising from
financing activity
Net cash flow arising from financing
activities
IV. Influence on cash and cash
equivalents due to fluctuation in
exchange rate
V. Net increased amount of cash and cash
equivalent
Add: Balance of cash and cash
equivalents at the period -begin
VI. Balance of cash and cash equivalents
at the period -end
Annual Report 2025
Current amount
In RMB
Owners’ equity attributable to the parent Company
Other equity Othe
instrument Capi r Surp Prov Total
Less: Reas Minori
Item Shar tal com lus ision Retai ty owner
Inve onab
e Pref publi preh publi of ned Othe Subt
ntory le interest ’s
capit erre Perp c ensiv c gene profi r otal s
Othe share reser equity
al d etual reser e reser ral t
stoc bond r s ve
k s ve inco ve risk
me
I. The -
ending 1,19 309,4
balance of 2,65 01,15
the previous 1,36 4.19
year 4.21
Add:
Changes of
accounting
policy
Error
correction
of the last
period
Other
II. The -
beginning 1,19 309,4
balance of 2,65 01,15
the current 1,36 4.19
year 4.21
III.
Increase/
Decrease in 58,73
the period 8,005.
(Decrease is 94
listed with
“-”)
(i) Total - 15,83
comprehens 1,006,9 8,251.
ive income 94.06 53
(ii) Owners’ 18,1 18,1
devoted and 54,7 54,7 24,745,
decreased 54.4 54.4 000.00
capital 1 1
n shares 24,745,
invested by 000.00
owners
invested by
Annual Report 2025
holders of
other equity
instruments
reckoned
into owners
equity with
share-based
payment
(iii) Profit
distribution
wal of
surplus
public
reserve
al of general
risk
provisions
n for owners
(or
shareholders
)
(iv)Carrying
forward
internal
owners’
equity
of capital
reserves to
capital (or
share
capital)
of surplus
public
reserves to
capital (or
share
capital)
g loss with
surplus
public
reserve
Annual Report 2025
over
retained
earnings
from the
defined
benefit
plans
over
retained
earnings
from other
comprehens
ive income
(v)Reasonab
le reserve
al in the
current
period
the current
period
(vi) Other
IV. Balance 1,17 368,1
at the end of 5,80 39,16
the period 6,11 0.13
Amount of the previous period
In RMB
Owners’ equity attributable to the parent Company
Other equity Othe
instrument Capi r Surp Prov Minori Total
Less: Reas
Item Shar tal com lus ision Retai ty owner
Inve onab
e publi preh publi of ned Othe Subt interest ’s
Prefe Perp ntory le
capit Othe c ensiv c gene profi r otal s equity
rred etual share reser
al r reser e reser ral t
stock bond s ve
ve inco ve risk
s me
I. The
ending 689, 779, 32,6 308,
balance of 184, 554, 73,2 761, 639,90
the 933. 450. 27.0 246. 8.03
previous 00 36 1 16
year
Add:
Changes of
accounting
policy
Error
Annual Report 2025
correction
of the last
period
Other
II. The -
beginning 1,19 309,4
balance of 2,65 01,15
the current 1,36 4.19
year 4.21
III.
Increase/
Decrease 18,1 16,8 35,0
in the 54,7 45,2 00,0 23,738,
period 54.4 45.5 00.0 005.94
(Decrease 1 9 0
is listed
with “-”)
(i) Total 16,8 16,8
- 15,83
comprehen 45,2 45,2
sive 45.5 45.5
income 9 9
(ii)
Owners’ 18,1 18,1
devoted 54,7 54,7 24,745,
and 54.4 54.4 000.00
decreased 1 1
capital
shares 24,745,
invested by 000.00
owners
invested by
holders of
other
equity
instrument
s
reckoned
into
owners
equity with
share-
based
payment
(iii) Profit
distribution
wal of
Annual Report 2025
surplus
public
reserve
wal of
general
risk
provisions
on for
owners (or
shareholde
rs)
(iv)Carryin
g forward
internal
owners’
equity
of capital
reserves to
capital (or
share
capital)
of surplus
public
reserves to
capital (or
share
capital)
ng loss
with
surplus
public
reserve
over
retained
earnings
from the
defined
benefit
plans
over
retained
earnings
from other
comprehen
sive
income
Annual Report 2025
(v)Reasona
ble reserve
wal in the
current
period
the current
period
(vi) Other
IV.Balance 689, 797, 32,6 343,
at the end 184, 709, 73,2 761, 24,377,
of the 933. 204. 27.0 246. 913.97
period 00 77 1 16
Current amount
In RMB
Other equity instrument Other
Less: compr Surplu
Item Capital Reaso Retain Total
Share Preferr Invent ehensi s
Perpet public nable ed Other owner’ s
capital ed Other ory ve public
ual reserve reserve profit equity
stock shares incom reserve
bonds e
I. The ending -
balance of 1,192, 338,735,7
the previous 199,65 84.27
year 2.86
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Other
II. The
beginning 689,18 809,07 32,673
balance of 4,933. 7,277. ,227.0
the current 00 12 1
year
III. Increase/
Decrease in
the period 20,197,53
,537.5
(Decrease is 7.59
listed with “-
”)
(i) Total 20,197 20,197,53
Annual Report 2025
comprehensi ,537.5 7.59
ve income 9
(ii) Owners’
devoted and
decreased
capital
shares
invested by
owners
invested by
holders of
other equity
instruments
reckoned
into owners
equity with
share-based
payment
(iii) Profit
distribution
l of surplus
public
reserve
n for owners
(or
shareholders)
(iv)Carrying
forward
internal
owners’
equity
capital
reserves to
capital (or
share capital)
surplus
public
reserves to
capital (or
share capital)
loss with
surplus
public
Annual Report 2025
reserve
retained
earnings
from the
defined
benefit plans
retained
earnings
from other
comprehensi
ve income
(v)Reasonabl
e reserve
l in the
current
period
the current
period
(vi) Other
IV. Balance 689,18 809,07 32,673
at the end of 4,933. 7,277. ,227.0
the period 00 12 1
Amount of the previous period
In RMB
Other equity instrument Other
Less: compr Surplu
Item Capital Reaso Retain Total
Share Preferr Invent ehensi s
Perpet public nable ed Other owner’ s
capital ed Other ory ve public
ual reserve reserve profit equity
stock shares incom reserve
bonds e
I. The ending -
balance of 1,201, 311,551,0
the previous 229,61 70.93
year 1.79
Add:
Changes of
accounting
policy
Error
correction of
the last
period
Other
II. The 689,18 790,92 32,673 - 311,551,0
beginning 4,933. 2,522. ,227.0 1,201, 70.93
Annual Report 2025
balance of 00 71 1 229,61
the current 1.79
year
III. Increase/
Decrease in
the period 9,029, 27,184,71
,754.4
(Decrease is 958.93 3.34
listed with “-
”)
(i) Total
comprehensi
ve income
(ii) Owners’
devoted and 18,154,75
,754.4
decreased 4.41
capital
shares
invested by
owners
invested by
holders of
other equity
instruments
reckoned
into owners
equity with
share-based
payment
(iii) Profit
distribution
l of surplus
public
reserve
n for owners
(or
shareholders)
(iv)Carrying
forward
internal
owners’
equity
capital
reserves to
Annual Report 2025
capital (or
share capital)
surplus
public
reserves to
capital (or
share capital)
loss with
surplus
public
reserve
retained
earnings
from the
defined
benefit plans
retained
earnings
from other
comprehensi
ve income
(v)Reasonabl
e reserve
l in the
current
period
the current
period
(vi) Other
IV. Balance 689,18 809,07 32,673
at the end of 4,933. 7,277. ,227.0
the period 00 12 1
III. Basic information
According to the Approval Document SFBF (1991) No. 888 issued by the People’s Government of Shenzhen,
Shenzhen China Bicycle Company (Holdings) Co., Ltd. (hereinafter referred to as the CBC) was reincorporated as
the company limited by shares in November 1991. On 28 December 1991, upon the Approval Document
SRYFZ(1991) No. 119 issued by Shenzhen Special Economic Zone Branch of the People’s Bank of China, the
Company got listed on Shenzhen Stock Exchange. Registered of the Company amounted as 689,184,933.00 Yuan.
Legal representative: Wang Shenghong
Annual Report 2025
Location: No. 3008, Buxin Road, Luohu District, Shenzhen
Office address: 8/F Shuibei Jinzuo Building, No.89 Beili North Road, Cuizhu Street, Luohu District, Shenzhen
Certificate for Uniform Social Credit Code: 914403006188304524。
Main business activities: Research & development of the bicycles, electric bicycles, electric motorcycles,
motorcycles, electric tricycles, electric four-wheeler, children's bicycles, exercise bikes, sports equipment,
mechanical products, toys, electric toys, electronic products, new energy equipment and storage equipment
(lithium batteries, batteries, etc.), household appliances and spare parts, and electronic components; wholesale,
retail, import and export and related supporting business of above-mentioned products (excluding commodities
subject to state trade management, handling the application according to the relevant national
regulationsforcommodities involving quotas, license management and other special provisions and management,);
fine chemical products (excluding dangerous goods), wholesale and retail of carbon fiber composite materials;
technology development of computer software, transfer of self-developed technological achievements, and
providing relevant technical information consultation; own property leasing; property management. (The above
projects do not involve special administrative measures for the implementation access of national regulations, and
those involving restricted projects and pre-existing administrative licenses must obtain the pre-existing
administrative licensing documents before operation.)Purchase and sale of gold products, platinum jewelry,
palladium jewelry, K-gold jewelry, silver jewelry, inlaid jewelry, jewelry, jade ware, gem-and-jade products,
clocks and watches, precious metal materials, diamonds, jadeite, crafts (except ivory and its products), calligraphy
and painting, collection (except for antiques, cultural relics, and items prohibited by national laws and
administrative regulations).
Main products or services currently offered are: Gold jewelry, EMMELLE bicycles and electrical bicycles,
lithium battery material.
Actual controller of the Company is Wang Shenghong,The controlling shareholder is Wansheng Industrial
Holding (Shenzhen) Co., Ltd., who held or controlled 20% shares of the Company.
The Financial Report was approved to report at the 23rd Session of 11th BOD of CBC on April 17, 2026.
IV. Compilation Basis of Financial Statement
Annual Report 2025
On the basis of going concern, the Company recognizes and measures according to the actual transactions
and events, the Accounting Standards for Business Enterprises-Basic Standards and other specific accounting
standards, application guidelines, standard interpretation and other relevant provisions (hereinafter referred to as
the Accounting Standards for Business Enterprises), and on this basis, it compiles the financial statements in
combination with the provisions of the No.15 Rules on Information Disclosure and Compilation of Companies
Offering Securities to the Public - General Provisions on Financial Reports (revised in 2023) issued by China
Securities Regulatory Commission.
The Company has the ability to continue to operate for at least 12 months from the end of this reporting period,
and there is no major issue affecting its ability to continue to operate.
V. Main accounting policy and Accounting Estimate
Tips for specific accounting policy and estimate:
None
The financial statements prepared by the Company meet the requirements of the Accounting Standards for
Business Enterprises, and truly and completely reflect the Company's financial status, operating results, changes
in owners' equity and cash flow and other relevant information.
Calendar year is the accounting period for the CBC, which is starting from 1 January to 31 December.
The Company takes 12 months as a business cycle.
The CBC takes RMB as the standard currency for bookkeeping.
?Applicable □Not applicable
Item Criterion of importance
Commercial acceptance bills receivable, accounts receivable
Material receivables with bad debt provision accrued
and other receivables with a single amount exceeding RMB 5
individually
million (inclusive)
Material amount recovered or reversed from bad debt provision
The single amount exceeds RMB 5 million (inclusive)
of receivables in the current period
Annual Report 2025
Write-off of Important material receivables in the current
The single amount exceeds RMB 5 million (inclusive)
period
Material prepayments with an age of more than one year The single amount exceeds RMB 5 million (inclusive)
Material accounts payable with an age of over 1 year The single amount exceeds RMB 5 million (inclusive)
Material contractual liabilities with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Material other payables with an age of more than 1 year The single amount exceeds RMB 5 million (inclusive)
Construction in progress with a single amount exceeding RMB
Material construction in progress
Commitments involving an amount of more than 10% of the
Material commitments
total profit and more than RMB 5 million (inclusive)
Contingencies involving an amount of more than 10% of the
Material contingencies
total profit and more than RMB 5 million (inclusive)
Matters after the balance sheet date involving an amount
Material matters after the balance sheet date exceeding 10% of the total profit and exceeding RMB 5 million
(inclusive)
The total assets of non-wholly-owned subsidiaries shall not be
less than 10% of the total assets in the consolidated statement
Material non-wholly-owned subsidiaries of the Group, or the operating income shall not be less than
be less than 10% of the absolute value of the Group's net profit.
control
merger are measured according to the book value of the assets and liabilities of the merged party (including the
goodwill formed by the acquisition of the merged party by the ultimate controlling party) in the consolidated
financial statements of the ultimate controlling party on the date of merger. For the difference between the book
value of the net assets obtained in the merger and the book value of the merger consideration paid (or the total
face value of the issued shares), adjust the capital premium or share capital premium in the capital reserve. If
the capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retained
income.
as the consideration for business merger are measured at fair value on the date of purchase, and the difference
between fair value and book value is included in the current profits and losses. The Company recognizes the
difference between the merger cost and the fair value share of the net identifiable assets of the acquiree obtained
in the merger as goodwill; For the difference between the merger cost and the fair value share of the net
identifiable assets of the acquiree (which is larger than the merger cost), it reviews the fair values of the assets
and liabilities obtained in the merger, the non-cash assets as the merger consideration or the equity securities
issued, and the review results show that the determination of the fair values of the determined identifiable assets
and liabilities is appropriate. The difference between the business merger cost and the fair value share of the net
identifiable assets of the acquiree (which is larger than the business merger cost) is included in the non-
operating income in the current merger period.
Annual Report 2025
The business merger not under the same control is realized step by step through multiple transactions, and the
merger cost is the sum of the consideration paid on the date of purchase and the fair value of the equity of the
acquiree held before the date of purchase; The equity of the purchased party held before the date of purchase
shall be re-measured according to the fair value on the date of purchase, and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses, other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase, the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
evaluation and consultation and other related management expenses incurred for business merger are included
in current profits and losses when incurred; The transaction costs of equity securities or debt securities issued as
the merger consideration are included in the initial recognition amount of equity securities or debt securities.
Control means that the investor has the power over the investee, enjoys variable returns by participating in
the related activities of the investee, and has the ability to influence the amount of returns by using the power
over the investee. As for whether to control the investee, the Company's criterion factors include:
(1) Have the power over the investee and the ability to lead the related activities of the investee;
(2) Be entitled to variable returns to the investee;
(3) Have the ability to use the power over the investee to influence its return amount.
Unless there is conclusive evidence that the Company cannot lead the related activities of the investee, the
Company has the power over the investee if:
(1) It holds more than half of the voting rights of the investee;
(2) It holds half or less of the voting rights of the investee, but controls more than half of the voting rights
through agreements with other voting rights holders.
If the Company holds half or less of the voting rights of the investee, but after comprehensive
consideration of the following facts and circumstances, it is judged that the voting rights held are sufficient to
lead the relevant activities of the investee, it is deemed that the Company has power over the investee:
(1) The size of the voting rights held relative to the voting rights held by other investors, and the degree of
dispersion of the voting rights held by other investors;
Annual Report 2025
(2) The potential voting rights of the investee held by other investors, such as convertible corporate bonds and
executable warrants;
(3) Other contractual rights;
(4) Other relevant facts and circumstances such as the past voting rights of the investee.
The Company evaluates the variability of returns based on the nature of contractual arrangements rather
than the legal form of returns.
If the Company exercises the decision-making power as the main responsible person, or if other parties
have the decision-making power and other parties exercise the decision-making power as the agents of the
Company, it shows that the Company controls the investee.
Once the changes in relevant facts and circumstances lead to changes in the relevant factors involved in
the definition of control, the Company will re-evaluate.
The scope of consolidation of the consolidated financial statements is determined on the basis of control,
including not only subsidiaries determined by voting rights (or similar rights) themselves or in combination
with other arrangements, but also structured entities determined by one or more contractual arrangements.
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries, and are prepared according to other relevant information.
The Company unifies the accounting policies and accounting periods adopted by its subsidiaries, so that
the accounting policies and accounting periods adopted by its subsidiaries are consistent with those adopted by
the Company. When preparing consolidated financial statements, it follows the principle of materiality to offset
the internal exchanges, internal transactions and equity investment projects between the parent company and the
subsidiaries, and between the subsidiaries.
The equity and profit and loss attributable to minority shareholders of the subsidiaries are listed separately
under the item of the owners' equity in the consolidated balance sheet and under the item of net profit in the
consolidated income statement. The current loss shared by minority shareholders of a subsidiary exceeds the
balance formed by minority shareholders' share in the initial owners' equity of the subsidiary, thus offsetting
minority shareholders' equity.
(1) Increase of subsidiaries and businesses
During the reporting period, when preparing the consolidated balance sheet due to the business merger
under the same control and the subsidiaries and businesses increased, the opening balance of the consolidated
balance sheet is adjusted; When preparing the income statement, the income, expenses and profits of the
subsidiary and business merger from the beginning of the current period to the end of the reporting period are
included in the consolidated income statement; When the cash flow statement is consolidated, the cash flows of
the subsidiary and the business combination from the beginning of the current period to the end of the reporting
period are included in the consolidated cash flow statement; At the same time, the relevant items of the
Annual Report 2025
comparative statements shall be adjusted, as if the merged reporting entity had existed since the ultimate
controlling party started to control.
During the reporting period, when preparing the consolidated balance sheet for subsidiaries and businesses
increased due to business merger not under the same control or other means, the opening balance of the
consolidated balance sheet will not be adjusted. When preparing the income statement, the income, expenses
and profits of the subsidiary and the business from the date of purchase to the end of the reporting period shall
be included in the consolidated income statement. When preparing the cash flow statement, the cash flow of the
subsidiary from the date of purchase to the end of the reporting period shall be included in the consolidated cash
flow statement.
The Company prepares consolidated financial statements based on the amount of identifiable assets,
liabilities and contingent liabilities determined on the basis of the fair value on the date of purchase reflected in
the individual financial statements of subsidiaries at the current balance sheet date. The difference between the
merger cost and the fair value share of the net identifiable assets of the acquiree obtained in the merger shall be
recognized as goodwill. The difference between the merger cost and the fair value share of the net identifiable
assets of the acquiree obtained in the merger shall be included in the current profits and losses after review.
If the business merger not under the same control is realized step by step through multiple transactions, in
the consolidated financial statements, the equity of the acquiree held before the date of purchase shall be re-
measured according to the fair value of the equity on the date of purchase, and the difference between the fair
value and its book value shall be included in the current investment income. Other comprehensive income of the
long-term equity investment of the acquiree held before the date of purchase under the accounting by equity
method shall be subject to accounting treatment on the same basis as the direct disposal of relevant assets or
liabilities by the investee. Changes in other shareholders' equity except net profits and losses, other
comprehensive income and profit distribution shall be converted into current profits and losses on the date of
purchase. For other equity instrument investments of the acquiree held before the date of purchase, the changes
in fair value of the equity instrument investments accumulated in other comprehensive income before the date
of purchase are transferred to retained profits and losses.
(2) Disposal of subsidiaries and businesses
A. General disposal methods
During the reporting period, if the Company disposes of its subsidiaries and businesses, the income,
expenses and profits of the subsidiaries and businesses from the beginning to the disposal date will be included
in the consolidated income statement; The cash flow of the subsidiaries and businesses from the beginning to
the disposal date will be included in the consolidated cash flow statement.
If the Company loses control of its original subsidiaries due to the disposal of some equity investments,
the remaining equity shall be re-measured according to its fair value on the date of loss of control in the
consolidated financial statements. The sum of the consideration obtained from the disposal of the equity and the
Annual Report 2025
fair value of the remaining equity, minus the difference between the share of the net assets that should be
continuously calculated by the original subsidiary from the date of purchase or the date of merger according to
the original shareholding ratio, is included in the current investment income when the control right is lost, and
the goodwill is also offset. Other comprehensive income related to the original subsidiary's equity investment
shall be subject to accounting treatment on the same basis as the subsidiary's direct disposal of relevant assets or
liabilities when it loses control. Shareholders' equity recognized due to changes in other shareholders' equity
related to the original subsidiary except net profit and loss, other comprehensive income and profit distribution
shall be converted into current profits and losses when it loses control.
B. Dispose of equity step by step until loss of control
If the enterprise disposes of its equity investment in a subsidiary step by step through multiple transactions
until it loses control, if the transaction of disposing of its equity investment in a subsidiary until the loss of
control is a package transaction, it shall treat each transaction as a transaction of disposing of the subsidiary and
loss of control; However, the difference between the price of each disposal before the loss of control and the
share of the subsidiary's net assets corresponding to the disposal investment shall be recognized as other
comprehensive income in the consolidated financial statements, and transferred to the current profits and losses
when the control is lost.
The terms, conditions and economic impact of various transactions dealing with equity investment in
subsidiaries meet one or more of the following conditions, which usually indicates that multiple transactions
shall be subject to accounting treatment as a package transaction:
(A) These transactions are concluded at the same time or under the consideration of mutual impact;
(B) These transactions as a whole can achieve a complete commercial result;
(C) The occurrence of one transaction depends on the occurrence of at least one other transaction;
(D) A transaction is uneconomical when considered alone, but it is economical when considered together
with other transactions.
(3) Purchase of minority shares of the subsidiaries
The Company shall adjust the capital premium or share capital premium in the capital reserve in the
consolidated balance sheet for the difference between the newly acquired long-term equity investment due to
the purchase of minority shares and the share of net identifiable assets that should be continuously calculated by
the subsidiaries from the date of purchase (or date of merger) according to the new shareholding ratio. If the
capital premium or share capital premium in the capital reserve is insufficient to offset, the retained income
shall be adjusted.
(4) Partial disposal of equity investment in subsidiaries without loss of control
For the difference between the disposal price obtained from the partial disposal of the long-term equity
investment in the subsidiary and the share of the net assets of the subsidiary that is continuously calculated from
the date of purchase or the date of merger corresponding to the disposal of the long-term equity investment,
Annual Report 2025
adjust the capital premium or share capital premium in the capital reserve in the consolidated balance sheet. If
the capital premium or share capital premium in the capital reserve is insufficient to offset, adjust the retained
income.
A joint venture arrangement refers to an arrangement controlled jointly by two or more participants. Joint
venture arrangements are divided into joint operation and joint ventures.
to the arrangement and undertakes the liabilities related to the arrangement. The Company recognizes the
following items related to the share of interests in joint operation:
(1) Recognize the assets held separately, and recognize the assets held jointly according to their shares;
(2) Recognize the liabilities undertaken separately, and recognize the liabilities jointly undertaken according to
their shares;
(3) Recognize the income generated from the sale of its share of joint operation output;
(4) Recognize the income generated by the sale of output in the joint operation according to its share;
(5) Recognize the expenses incurred separately, and recognize the expenses incurred in joint operation
according to their shares.
the arrangement. The Company shall carry out accounting treatment for the investment of the joint venture in
accordance with the provisions on accounting by equity method for long-term equity investment.
When preparing the cash flow statement, the Company will recognize the cash on hand and the deposits
that can be used for payment at any time as cash. An investment with short term (usually due within three
months from the date of purchase), strong liquidity, easy conversion into known cash and little risk of value
change will be determined as a cash equivalent. Restricted bank deposits will not be regarded as cash and cash
equivalents in the cash flow statement.
When foreign currency business occurs, the amount of foreign currency is converted into RMB for
recording according to the spot exchange rate on the date of transaction, and foreign currency monetary items
and foreign currency non-monetary items are treated in the following ways at the end of the period:
(1) Foreign currency monetary items are converted at the spot exchange rate on the balance sheet date.
Exchange differences arising from the difference between the spot exchange rate on the balance sheet date and
the initial recognition or the spot exchange rate on the previous balance sheet date are included in the current
profits and losses.
Annual Report 2025
(2) Foreign currency non-monetary items measured at historical cost are still converted at the spot exchange rate
on the date of transaction, and the amount of their recording currency will not be changed.
(3) Foreign currency non-monetary items measured at fair value shall be converted at the spot exchange rate on
the fair value determination date, and the resulting exchange gains and losses shall be included in the current
profits and losses or other comprehensive income.
(4) Foreign currency exchange gains and losses, except the exchange gains and losses arising from foreign
currency special borrowing related to the purchase, construction or production of assets eligible for
capitalization, are included in the cost of assets eligible for capitalization before the assets reach the scheduled
serviceable or saleable state, and the rest are included in the current profits and losses.
(1) Assets and liabilities in the balance sheet are converted at the spot exchange rate on the balance sheet date;
Except for the "undistributed profit", other items of owners' equity are converted at the spot exchange rate at the
time of occurrence.
(2) The income and expenses in the income statement are converted at the approximate exchange rate of the
spot exchange rate on the date of transaction.
(3) The conversion difference of foreign currency financial statements generated according to the above
conversion is included in other comprehensive income. When disposing of overseas operations, the conversion
difference of foreign currency financial statements related to the overseas operations shall be transferred from
the owners' equity to the current profits and losses.
(4) The cash flow statement is converted by the approximate exchange rate of the spot exchange rate on the
date of cash flow occurrence. As a reconciliation item, the influence of exchange rate changes on cash is listed
separately in the cash flow statement.
When the Company becomes a party to the financial instrument contract, it recognizes a financial asset or
financial liability related to it.
According to the business model of financial assets under management and the contractual cash flow
characteristics of financial assets, the Company divides financial assets into three categories: financial assets
measured by amortized cost, financial assets measured by fair value with its changes included in other
comprehensive income, and financial assets measured by fair value with its changes included in current profits
and losses.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair
value with its changes included in the current profits and losses, relevant transaction costs are directly included
in the current profits and losses; For financial assets of other types, relevant transaction costs are included in the
initial recognition amount. If the accounts receivable initially recognized by the Company do not contain
Annual Report 2025
significant financing components as defined in the Accounting Standards for Business Enterprises No.14-
Income, or the financing components in contracts with a duration of no more than one year are not considered
according to the provisions of Accounting Standards for Business Enterprises No.14-Income, the initial
measurement shall be made according to the transaction price of the consideration expected to be charged.
(1) Financial assets measured in amortized cost
The Company's business model of managing such financial assets is to collect contract cash flow, and the
cash flow generated on a specific date is only for the payment of principal and interest based on the unpaid
principal amount. For such financial assets, the Company adopts the effective interest rate method for
subsequent measurement according to amortized cost, and the gains or losses arising from amortization or
impairment are included in the current profits and losses.
(2) Financial assets measured at fair value with changes included in other comprehensive income
The Company's business model of managing such financial assets is to collect contract cash flow and sell
it, and the cash flow generated on a specific date is only for the payment of principal and interest based on the
unpaid principal amount. Such financial assets are measured at fair value with changes included in other
comprehensive income, but impairment losses or gains, exchange gains and losses and interest income
calculated according to the effective interest rate method are included in current profits and losses.
For the investment in non-transactional equity instruments, the Company can irrevocably designate it as a
financial asset measured at fair value with changes included in other comprehensive income at the initial
recognition. The designation is made on the basis of a single investment, and the relevant investment conforms
to the definition of equity instrument from the issuer's point of view. The Company includes the relevant
dividend income of such financial assets in the current profits and losses, and the changes in fair value in other
comprehensive income. When the financial asset is derecognized, the accumulated gains or losses previously
included in other comprehensive income will be transferred from other comprehensive income to retained
income and will not be included in the current profits and losses.
(3) Financial assets measured at fair value with changes included in the current profits and losses
Except for the above financial assets measured in amortized cost and the financial assets measured at fair
value with changes included in other comprehensive income, the Company classifies all other financial assets as
financial assets measured at fair value with changes included in current profits and losses. In addition, at the
time of initial recognition, in order to eliminate or significantly reduce the accounting mismatch, the Company
designated some financial assets as the financial assets measured at fair value with changes included in the
current profits and losses. Such financial assets are subsequently measured at fair value, with changes in fair
value included in current profits and losses.
The Company's financial liabilities are classified into financial liabilities measured at fair value with
changes included in current profits and losses and other financial liabilities at initial recognition. For financial
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liabilities measured at fair value with changes included in the current profits and losses, the related transaction
costs are directly included in the current profits and losses, and the related transaction costs of other financial
liabilities are included in their initial recognition amount.
(1) Financial liabilities measured at fair value with changes included in the current profits and losses
Financial liabilities measured at fair value with changes included in current profits and losses include
transactional financial liabilities (including derivatives belonging to financial liabilities) and financial liabilities
designated as measured at fair value with changes included in current profits and losses.
Transactional financial liabilities (including derivatives belonging to financial liabilities) are subsequently
measured at fair value, and changes in fair value are included in current profits and losses, except those related
to hedging accounting.
For financial liabilities that are designated as being measured at fair value with changes included in
current profits and losses at the time of initial recognition, the changes in fair value caused by changes in the
Company's own credit risk are included in other comprehensive income, and when the liability is derecognized,
the accumulated changes in its fair value caused by changes in its own credit risk included in other
comprehensive income are transferred to retained income. Other changes in fair value are included in current
profits and losses. If the accounting mismatch in profit and loss will be caused or enlarged by handling the
impact of the changes in credit risk of these financial liabilities in the above way, the Company will include all
the gains or losses of the financial liabilities (including the amount affected by the changes in the enterprise's
credit risk) in the current profits and losses.
(2) Other financial liabilities
Other financial liabilities, except those caused by the transfer of financial assets and financial guarantee
contracts that do not meet the conditions for derecognition or continue to be involved in the transferred financial
assets, are classified as financial liabilities measured in amortized cost and subsequently measured in amortized
cost. The gains or losses arising from derecognition or amortization are included in the current profits and losses.
The fair value of financial instruments with an active market shall be determined by the quotation in the
active market. The fair value of financial instruments without active market shall be determined by valuation
technology. At the time of valuation, the Company adopts the valuation technology that is applicable in the
current situation and supported by sufficient available data and other information, selects the input values that
are consistent with the characteristics of assets or liabilities considered by market participants in the transaction
of relevant assets or liabilities, and gives priority to the relevant observable input values. Unobservable input
values can only be used if the relevant observable input values are unavailable or impracticable.
Recognition for transfer of financial assets
Circumstances Recognition resultsw
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Almost all risks and rewards in the ownership of financial assets are
transferred The financial assets are derecognized (new
The control of financial assets is given assets/liabilities are recognized)
Almost all risks and up
rewards in the ownership of
The relevant assets and liabilities is recognized
financial assets are neither The control of financial assets is not
according to the extent of continuing involvement in the
transferred nor retained given up
transferred financial assets
Almost all risks and
Continue to recognize the financial assets and recognize the received consideration as financial
rewards in the ownership of
liabilities
financial assets are retained
The Company divides the transfer of financial assets into the overall transfer and partial transfer of financial
assets.
(1) If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be included in the current profits and losses: the book value of the transferred
financial assets on the derecognition date; The sum of the consideration received for the transfer of financial
assets and the cumulative amount of changes in fair value that were originally directly included in other
comprehensive income (the financial assets involved in the transfer are those classified as financial assets
measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
(2) If a part of the financial assets is transferred, and the transferred part as a whole meets the conditions for
derecognition, the book value of the whole financial assets before the transfer shall be allocated between the
derecognition part and the continued recognition part (in this case, the retained service assets shall be regarded
as part of continued recognition of financial asset) according to their respective relative fair values on the date
of transfer, and the difference between the following two amounts shall be included in the current profits and
losses: the book value of the derecognition part on the derecognition date; The sum of the consideration
received for the derecognition part (including all new assets acquired minus all new liabilities assumed) and the
corresponding derecognition amount in the accumulated amount of changes in fair value originally included in
other comprehensive income (the financial assets involved in partial transfer are those classified as financial
assets measured at fair value with changes included in other comprehensive income in Article 18 of Accounting
Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments).
If the transfer of financial assets does not meet the conditions for derecognition, the whole transferred
financial assets shall be continuously recognized, and the received consideration shall be recognized as a
financial liability.
If the current obligations of financial liabilities(or part of them) have been discharged, the financial
liabilities (or part of them) shall be derecognized. If the following conditions exist:
(1) If the Company transfers the assets used to pay financial liabilities to an institution or establishes a trust, and
the obligation of debt payment still exists, it shall not derecognize the financial liabilities.
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(2) The Company (the borrower) and the lender sign an agreement to replace the original financial liabilities (or
part of them) by taking on new financial liabilities, and the contractual terms are essentially different. The
Company shall derecognize the original financial liabilities (or part of them) and recognize a new financial
liability at the same time.
If the financial liabilities (or part of them) are derecognized, the Company will record the difference
between the book value and the consideration paid (including the transferred non-cash assets or liabilities) into
the current profits and losses.
(1) Recognition method of impairment provision
The Company conducts impairment accounting treatment on financial assets (including receivables)
measured in amortized cost, debt instrument investment and lease receivables measured at fair value with
changes included in other comprehensive income on the basis of expected credit losses, and recognizes the loss
provisions. In addition, for contract assets, loan commitments and financial guarantee contracts, impairment
provisions are also accrued and impairment losses are recognized in accordance with the accounting policies
described in this section.
Expected credit loss refers to the weighted mean of credit loss of financial instruments weighted by the
risk of default. Credit loss refers to the difference between all contracted cash flows that the Company
discounted at the original actual interest rate and all cash flows that it is expected to receive, that is, the present
value of all cash shortages.
Except for the purchased or originated financial assets with credit impairment, the Company evaluates
whether the credit risk of relevant financial assets has increased significantly since the initial recognition on
each balance sheet date. If the credit risk has not increased significantly since the initial recognition. it is in the
first stage, and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the next 12 months; If the credit risk has increased significantly since the
initial recognition but with no credit impairment, it is in the second stage, and the Company will measure the
loss provision according to the amount equivalent to the expected credit loss of the financial asset during the
whole duration; If the financial asset has suffered credit impairment since its initial recognition, it is in the third
stage, and the Company will measure the loss provision according to the amount equivalent to the expected
credit loss of the financial asset in the whole duration. When evaluating the expected credit loss, the Company
considers the reasonable and well-founded information, including forward-looking information, about past
events, current situation and future economic situation prediction that can be obtained on the balance sheet date
without unnecessary extra cost or effort.
The expected credit loss in the next 12 months refers to the expected credit loss caused by financial asset
default events that may occur within 12 months after the balance sheet date (if the expected duration of financial
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assets is less than 12 months, within the expected duration), which is a part of the expected credit loss in the
whole duration.
For financial instruments with low credit risk on the balance sheet date, the Company assumes that the
credit risk has not increased significantly since the initial recognition, and chooses to measure the loss provision
according to the expected credit loss in the next 12 months.
For the financial assets in the first and second stages and with low credit risk, the Company calculates the
interest income according to the book balance without deducting the impairment provision and the actual
interest rate. For the financial assets in the third stage, the interest income shall be calculated according to the
book balance minus the amortized cost and the actual interest rate after the impairment provision has been
accrued.
(2) Financial asset with impairment
When the Company anticipates that one or more events that have an adverse effect on the future cash flow
of a financial asset occur, the financial asset becomes a financial asset with credit impairment. Evidence of
credit impairment of financial assets includes the following observable information:
A. The issuer or the debtor has major financial difficulties;
B. The debtor has breached the contract, such as default or overdue payment of interest or principal;
C. The creditor makes concessions to the debtor that it will not make under any other circumstances due to
economic or contractual considerations related to its financial difficulties;
D. The debtor is likely to go bankrupt or carry out other financial restructuring;
E. The financial difficulties of the issuer or debtor lead to the disappearance of the active market of the financial
asset;
F. A financial asset is purchased or originated at a large discount, which reflects the fact that credit loss has
occurred.
Credit impairment of financial assets may be caused by the joint action of multiple events, not necessarily
by an event that can be identified separately.
(3) Financial assets with credit impairment purchased or originated
For the purchased or originated financial assets with credit impairment, the Company only recognizes the
cumulative change of expected credit loss in the whole duration after initial recognition as loss provision on the
balance sheet date. On each balance sheet date, the change amount of expected credit loss during the whole
duration is included in the current profits and losses as impairment loss or gain. Even if the expected credit loss
determined on the balance sheet date is less than the amount of the expected credit loss reflected by the
estimated cash flow at the time of initial recognition, the favorable change of expected credit loss will be
recognized as impairment gain.
(4) Criteria for judging significant increase in credit risk
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If the default probability of a financial asset in the estimated duration determined on the balance sheet date
is significantly higher than that in the estimated duration determined at the initial recognition, it indicates that
the credit risk of the financial asset is significantly increased. Except in special circumstances, the Company
uses the change of default risk in the next 12 months as a reasonable estimate of the change in default risk in the
whole duration to determine whether the credit risk has increased significantly since the initial recognition.
(5) Method of evaluating the expected credit loss of financial assets
The Company evaluates the expected credit loss of financial assets based on individual and combined
items. It individually evaluates the credit risk of financial assets with significantly different credit risks, such as:
receivables from related parties; accounts receivable from government agencies and units; and receivables with
obvious signs that the debtor is likely to be unable to fulfill the repayment obligations.
Except for financial assets whose credit risks are individually evaluated, the Company divides financial
assets into different groups based on common risk characteristics, and evaluates the credit risks on the basis of
combination.
(6) Accounting treatment method for impairment of financial assets
The Company calculates the expected credit losses of various financial assets on the balance sheet date,
and the resulting increase or reversal amount of loss provision is included in the current profits and losses as
impairment losses or gains.
If the Company actually suffers from credit losses, and the relevant financial assets are determined to be
irrecoverable and approved for write-off, the book balance of the financial assets will be directly written down.
If the financial assets written down are recovered later, they will be included in the current profits and losses of
recovery as the reversal of impairment losses.
A financial guarantee contract refers to a contract in which the issuer pays a certain amount to the contract
holder who has suffered losses when the debtor fails to repay the debt according to the original or revised terms
of the debt instrument at maturity. The financial guarantee contract shall be measured at fair value upon initial
recognition. For the financial guarantee contract for a financial liability not designated as being measured at fair
value with changes included into the current profits and losses, after the initial recognition, subsequent
measurement shall be made according to the higher of the expected credit loss provision amount determined on
the balance sheet date and the balance of the initial recognition amount after deducting the accumulated
amortization amount determined according to the income recognition principle.
Financial assets and financial liabilities are listed separately in the balance sheet without mutual offset.
However, if the following conditions are met at the same time, the net amount after mutual offset shall be listed
in the balance sheet:
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(1) The Company has the legal right to offset the recognized financial assets and financial liabilities, and such
legal right is now enforceable;
(2) The Company plans to settle accounts by netting, or realize the financial assets and pay off the financial
liabilities at the same time.
Equity instruments refer to contracts that can prove that the Company has residual interests in assets after
deducting all liabilities. The issuance (including refinancing), repurchase, sale or cancellation of equity
instruments by the Company are treated as changes in equity. The Company does not recognize changes in the
fair value of equity instruments. Transaction costs related to equity transactions are deducted from equity.
Various distributions (excluding stock dividends) made by the Company to holders of equity instruments
are used as profit distribution to reduce the owners' equity. The stock dividends distributed do not affect the
total owners' equity.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
The Company measures the loss provision for notes receivable according to the expected credit loss
amount of the whole duration.
Except for the notes receivable whose credit risk is evaluated individually, the Company divides the notes
receivable into different portfolios based on the credit risk of their acceptors as a common risk characteristic,
and calculates the expected credit loss on the basis of the portfolios. The basis for determining the portfolios is
as follows:
Portfolio name Basis for determining the portfolio
Management evaluation has low credit risk and the expected
Bank acceptance bill
credit loss is generally not recognized
Commercial acceptance bill Same as "Accounts Receivable" portfolio
The Company individually tests the impairment of the notes receivable with objective evidence and other
notes that are suitable for individual evaluation, recognizes the expected credit loss, and calculates the
individual impairment provision.
The CBC adopts the simplified model of expected credit loss for accounts receivables specified in “Accounting
Standards for Business Enterprises No.14 - Revenue” and without containing significant financing components
(including the case that the financing components in contracts that do not exceed one year are not considered
according to the standards), that is, always measures their loss provisions according to the amount of expected
credit loss during the entire duration, and the resulting increased or reversed amount of the loss provision is
Annual Report 2025
included in the current profit and loss as an impairment loss or gain.
Based on common risk characteristics, the Company divides accounts receivable into different groups
according to common credit risk characteristics such as customer categories:
Portfolio name Basis for determining the portfolio
Commercial acceptance bills receivable, accounts receivable
and other receivables with significant single amount
Individual identification portfolio (receivables with an ending balance of more than RMB 5
million (including RMB 5 million)), or accounts receivable with
insignificant individual amount but high risk
Aging portfolio Taking the aging of receivables as the credit risk characteristic
Related-party portfolio receivable Receivables from related parties
(1) Individual identification portfolio: For receivables with an ending balance of more than RMB 5 million
(including RMB 5 million), or accounts receivable with insignificant individual amount but high risk,
impairment test shall be conducted separately for each customer. Impairment test shall be conducted separately
for accounts receivable with objective evidence indicating impairment and other accounts receivable applicable
to individual evaluation (such as accounts receivable in dispute with the other party or involving litigation and
arbitration; accounts receivable with obvious signs that the debtor is likely to be unable to fulfill the repayment
obligations, etc.), to recognize expected credit loss and calculate individual impairment provision.
(2) Aging portfolio: For accounts receivable that have not been impaired after individual testing or whose
individual amount is not significant but with low risk, the Company evaluates the expected credit loss of various
accounts receivable based on the actual loss rate of the same or similar accounts receivable portfolio with
similar credit risk characteristics in previous years. The Company determines the aging of accounts receivable
based on the period from the entry date to the balance sheet date.
(3) Associated portfolio: Unless there is conclusive evidence indicating an impairment, the accounts receivable
formed between related parties shall not be accrued for bad debt provision.
Receivable financing reflects notes receivable and accounts receivable that are measured at fair value on
the balance sheet date with changes included in other comprehensive income. For the accounting treatment
method, please refer to the related treatment of the financial assets measured at fair value with changes included
in other comprehensive income classified in Item (XI) Financial Instrument of this accounting policy.
For other receivables, the expected credit loss is determined according to historical data and forward-
looking information. Based on whether the credit risk of other receivables has increased significantly since the
initial recognition, the Company adopts the amount equivalent to the expected credit loss in the next 12 months
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or the whole duration to measure the impairment loss. For specific accounting treatment methods, please refer
to Item (XIII) Accounts Receivable of this accounting policy.
Contract assets refer to the right that the Company has transferred the goods to customers and has the right
to receive consideration, and such right depends on other factors besides the passage of time.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
(1) Classification of inventory
The CBC classifies the inventory into raw materials, goods in process, goods on hand, wrap page, low value
consumables, materials for consigned processing and goods sold, etc.
(2) Valuation of inventories
Inventories are initially measured at cost upon acquisition, which includes procurement costs, processing costs
and other costs. Cost of the inventory issued is carried forward on the basis of a combination of the weighted
average method and specific identification when inventories are issued.
(3)Inventory system
Perpetual inventory system is adopted.
(4)Amortization method of low-value consumables and packaging materials
"One-time amortization method" is adopted for accounting.
(5) Provision for inventory impairment
When a comprehensive count of inventories is done at the end of the period, provision for inventory impairment is
allocated or adjusted using the lower of the cost of inventory and the net realizable value.The net realizable value
of stock in inventory (including finished products, goods in stock and materials for sale) that can be sold directly
is determined using the estimated saleable price of such inventory deducted by the cost of sales and relevant
taxation over the course of ordinary production and operation. The net realizable value of material in inventory
that requires processing is determined using the estimated saleable price of the finished product deducted by the
cost to completion, estimated cost of sales and relevant taxation over the course of ordinary production and
operation. The net realizable value of inventory held for performance of sales contract or labor service contract is
determined based on the contractual price; in case the amount of inventory held exceeds the contractual amount,
the net realizable value of the excess portion of inventory is calculated using the normal saleable price.
Provision for impairment is made according to individual items of inventories at the end of the period; however,
for inventories with large quantity and low unit price, the provision is made by categories; inventories of products
that are produced and sold in the same region or with the same or similar purpose or usage and are difficult to be
Annual Report 2025
measured separately are combined for provision for impairment.
If the factors causing a previous write-off of inventory value has disappeared, the amount written-off is reversed
and the amount provided for inventory impairment is reversed and recognized in profit or loss for the period.
During the reporting period, the specific methods and implementation of the Company's inventory
impairment measurement are as follows:
(1) Inventory impairment method
The issuer's inventory mainly includes raw materials, inventory goods and materials commissioned for
processing. The ending inventory of the Company is measured according to the lower of cost and net realizable
value. When the net realizable value is lower than the cost, the inventory depreciation provision is accrued.
①Specific methods for measuring the impairment of raw materials
Raw materials mainly include gold and diamond raw materials. The closing net realizable value of gold
raw materials is determined according to the closing price of spot gold trading announced by Shanghai Gold
Exchange at the end of the period. For the part with the book cost higher than the closing net realizable value,
inventory depreciation provision is accrued; Diamond raw materials are used for processing finished diamond
inlaid products, but the finished diamond inlaid products are with great difference. At the end of the year, the
Company will comprehensively judge whether there are signs of impairment based on the price fluctuation of
diamonds in that year, processing rates and pricing policies, and if there are signs of impairment, it will measure
the impairment one by one.
② Specific methods for measuring the impairment of inventory goods
Inventory goods mainly include finished gold products, finished K-gold products and finished inlaid
products. The depreciation of finished gold products and finished K-gold products shall be measured one by one,
and the closing net realizable value shall be determined by referring to the sales outbound price at the end of the
period after deducting the relevant sales expenses and taxes. For finished products whose closing book cost is
higher than the net realizable value, the inventory depreciation provision shall be accrued. The finished inlaid
products are quite different. At the end of the period, the Company will comprehensively judge whether there
are signs of impairment according to the price fluctuation of diamonds in that year and the pricing policy. If
there are signs of impairment, the impairment will be measured one by one.
③ Specific methods for measuring the impairment of materials commissioned for processing
Materials commissioned for processing mainly include gold and diamond raw materials, which are similar
in nature to raw materials, so the measurement method is consistent with that of raw materials.
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If the book value of an non-current asset is recovered mainly through sales (including the exchange of
non-monetary assets with commercial substance) rather than continuous use or disposal group, the Company
will classify it as held for sale. The specific standard is to meet the following conditions at the same time:
(1) According to the practice of sales of such assets or disposal groups in similar transactions, they can be sold
immediately under the current situation;
(2) The Company has made a resolution on a sale plan and obtained a firm purchase commitment. It is expected
that the sale will be completed within one year (if the relevant regulations require the approval of the relevant
authority or regulatory department of the Company before the sale, such approval has been obtained).
If the control right of the subsidiary is lost due to the sale of the investment in the subsidiary, regardless of
whether part of the equity investment is retained after the sale and the conditions for classification of the held-
for-sale category are met, the investment in the subsidiary as a whole will be classified as held-for-sale category
in the individual financial statements of the parent company, and all assets and liabilities of the subsidiary will
be classified as held-for-sale category in the consolidated financial statements.
When the Company initially measures or re-measures the non-current assets or disposal groups held for
sale on the balance sheet date, if the book value is higher than the net amount of fair value minus the sale
expenses, the book value will be written down to the net amount of fair value minus the sale expenses, and the
written-down amount will be recognized as asset impairment loss and included in the current profits and losses,
and impairment provision of assets held for sale will be accrued at the same time. If the net amount of the fair
value of non-current assets held for sale on the subsequent balance sheet date is increased after deducting the
sale expenses, the previously written-down amount will be restored and reversed within the amount of asset
impairment loss recognized after being classified as held for sale, and the reversed amount will be included in
the current profits and losses. Assets impairment losses recognized before being classified as held for sale shall
not be reversed.
For the amount of asset impairment loss recognized by the disposal group held for sale, the book value of
goodwill in the disposal group shall be deducted first, and then the book value of non-current assets in the
disposal group shall be deducted proportionally according to the proportion of the book value of non-current
assets in the disposal group. For the subsequent reversal amount of asset impairment losses recognized by the
disposal group held for sale, the book value will be increased in proportion according to the proportion of the
book value of non-current assets except goodwill in the disposal group.
Non-current assets held for sale or non-current assets in disposal group are not depreciated or amortized,
and interest and other expenses of liabilities in disposal group held for sale continue to be recognized.
When the Company derecognizes the non-current assets held for sale or disposal groups, the unrecognized
gains or losses will be included in the current profits and losses.
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When non-current assets or disposal groups are no longer classified as held for sale because they no
longer meet the classification conditions of held for sale, or non-current assets are removed from the disposal
groups held for sale, the measurement shall be based on the lower of the following two amounts:
(1) For the book value before being classified as held for sale, the adjusted amount based on depreciation,
amortization or impairment that should have been recognized if it is not classified as held for sale;
(2) Recoverable amount.
Discontinued operations refers to a component that meets any of the following conditions and can be
distinguished separately and has been disposed of by the Company or classified as a component held for sale:
(1) This component represents an independent main business or a single main business area;
(2) This component is part of an associated plan to dispose of an independent main business or a separate main
business area;
(3) This component is a subsidiary acquired exclusively for resale.
For the discontinued operation listed in the current period, the Company separately lists the profit and loss
of continuing operation and the profit and loss of discontinued operation in the current income statement, and
re-lists the information originally listed as the profit and loss of continuing operation as the profit and loss of
discontinued operation in comparable accounting period in the income statement of the comparative period.
For debt investment, the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss, please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
For Other debt investment, the Company determines the expected credit loss on each balance sheet date
according to the types of counterparties and risk exposures and in consideration of historical default and
industry forward-looking information or various external actual and expected economic information. For the
determination method and accounting treatment method of expected credit loss, please refer to the provisions of
Item (XI) Financial Instruments of this accounting policy.
The Company's long-term receivables include receivable financial lease and other long-term receivables.
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For the receivable financial lease formed by the transactions regulated in Accounting Standards for
Business Enterprises No.21-Lease, the loss provision shall be measured according to the amount equivalent to
the expected credit loss during the whole duration.
For other long-term receivables, the Company determines the expected credit loss on each balance sheet
date according to the types of counterparties and risk exposures and in consideration of historical default and
reasonable forward-looking information or various external actual and expected economic information.
Based on whether the credit risk has increased significantly since the initial recognition, the Company
adopts the amount equivalent to the expected credit loss in the next 12 months or the whole duration to measure
the impairment loss of long-term receivables. Except for the long-term receivables whose credit risk is
evaluated individually, they are divided into different portfolios based on their credit risk characteristics:
Portfolio name Basis for determining the portfolio
Normal long-term receivables This portfolio is a long-term receivable with no overdue risk
Overdue long-term receivables This portfolio is a long-term receivable with high overdue risk
Joint control refers to the common control of an arrangement according to the relevant agreement, and that
the related activities of the arrangement must be unanimously agreed by the participants who share the control
rights before making decisions. When judging whether there is joint control, firstly, it is judged whether all
participants or a group of participants collectively control the arrangement. If all participants or a group of
participants must act in concert to decide the related activities of an arrangement, it is considered that all
participants or a group of participants collectively control the arrangement. Secondly, it is judged whether the
decision of the related activities of the arrangement must be unanimously agreed by the participants who
collectively control the arrangement, and joint control can only be formed if and only if the decision of the
related activities requires the unanimous consent of the participants who collectively control the arrangement. If
there are two or more participants who can collectively control an arrangement, it does not constitute joint
control. When judging whether there is joint control, the protective rights enjoyed are not considered.
Significant influence refers to that the investor has the right to participate in the decision-making of the
financial and operating policies of the investee, but it cannot control or jointly control the formulation of these
policies with other parties. When determining whether a significant influence can be exerted on the investee,
consider the influence of the investor's direct or indirect holding of the voting shares of the investee and the
potential voting rights held by the investor and other parties in the current period after it is assumed to be
converted into the equity of the investee, including the influence of the current convertible warrants, stock
options and convertible corporate bonds issued by the investee. When foreign investment meets the following
conditions, it is generally determined that it has a significant impact on the investing unit: ① It is represented in
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the Board of Directors or similar authority of the investee; ② It participates in the formulation of the financial
and business policies of the investee; ③ Important transactions with the investee occur; ④ Management
personnel are sent to the investee; ⑤ Key technical data is provided to the investee. When directly or indirectly
owning more than 20% but less than 50% of the voting shares of the investee, it is generally considered to have
a significant impact on the investee.
(1) Long-term equity investment formed by business merger
A. In the case of business merger under the same control, if cash payment, transfer of non-cash assets or taking
on debts and issuance of equity securities are adopted as the merger consideration, the initial investment cost of
long-term equity investment shall be the share of the book value of the owners' equity of the merged party in the
consolidated financial statements of the final controlling party on the date of merger. If the investee under the
same control can be controlled due to additional investment and other reasons, the initial investment cost of
long-term equity investment shall be determined according to the share of the net assets of the merged party in
the book value of the consolidated financial statements of the final controlling party on the date of merger. For
the difference between the initial investment cost of the long-term equity investment on the date of merger and
the book value of the long-term equity investment before the merger plus the book value of the newly paid
consideration for the shares on the date of merger, adjust the capital premium or share capital premium. If the
capital premium or share capital premium is insufficient to offset, the retained income will be offset.
B. For the business merger not under the same control, the merger cost shall be determined as the initial
investment cost of long-term equity investment on the date of purchase in accordance with the relevant
provisions of the Accounting Standards for Business Enterprises No.20-Business Merger. If the investees not
under the same control can be controlled due to additional investment and other reasons, the sum of the book
value of the original equity investment plus the new investment cost shall be taken as the initial investment cost
calculated by the cost method.
(2) In addition to the long-term equity investment formed by business merger, the initial investment cost of
long-term equity investment obtained by other means shall be determined in accordance with the following
provisions:
A. For long-term equity investment obtained by paying cash, the initial investment cost shall be the actual
purchase price. The initial investment cost includes expenses, taxes and other necessary expenses directly
related to obtaining long-term equity investment.
B. For long-term equity investment obtained by issuing equity securities, the initial investment cost shall be the
fair value of issuing equity securities.
C. For long-term equity investment obtained by exchange of non-monetary assets, the initial investment cost
shall be determined in accordance with the Accounting Standards for Business Enterprises No.7-Exchange of
Non-monetary Assets.
Annual Report 2025
D. For long-term equity investment obtained by debt restructuring, its initial investment cost shall be
determined in accordance with the Accounting Standards for Business Enterprises No.12-Debt Restructuring.
(1) Accounting by cost method: Long-term equity investment that can be controlled by the investee shall be
accounted by cost method. When accounting by cost method, the cost of long-term equity investment is
adjusted by adding or recovering investment. For the long-term equity investment accounted by the cost method,
except for the declared but undistributed cash dividends or profits included in the price or consideration actually
paid at the time of investment, the Company shall recognize the investment income according to the cash
dividends or profits declared by the investee, and no longer distinguish whether it belongs to the net profit
realized by the investee before and after the investment.
(2) Accounting by equity method: For the long-term equity investment jointly controlled or significantly
influenced by the investee, except for the equity investment in the associated enterprise, part of it is indirectly
held by venture capital institutions, mutual funds, trust companies or similar entities including investment with
insurance funds, regardless of whether the above entities have a significant influence on this part of the
investment, the Company to measure this part of the indirectly held investment at fair value with its changes
included in profits and losses in accordance with the relevant provisions of Accounting Standards for Business
Enterprises No.22-Recognition and Measurement of Financial Instruments, and adopts the equity method for
accounting. When accounting by equity method, after the Company obtains the long-term equity investment,
the investment income and other comprehensive income are recognized respectively according to the share of
the net profit and loss and other comprehensive income realized by the investee, and the book value of the long-
term equity investment is adjusted; The Company shall calculate its share according to the profit or cash
dividend declared by the investee, and correspondingly reduce the book value of long-term equity investment;
The Company shall adjust the book value of the long-term equity investment and include it in the owners' equity
for other changes in the owners' equity of the investee except the net profit and loss, other comprehensive
income and profit distribution. The Company recognizes the net loss of the investee to the extent that the book
value of the long-term equity investment and other long-term rights and interests that substantially constitute the
net investment of the investee are written down to zero, unless the Company has the obligation to bear
additional losses. If the investee realizes the net profit in the future, the Company will resume the recognition of
the income share after the income share makes up for the unrecognized loss share. When recognizing the share
of the net profit and loss of the investee, the Company will adjust the net profit of the investee based on the fair
value of the identifiable assets of the investee at the time of investment, and offset the gains and losses of
internal transactions between the Company and associated enterprises and joint ventures, and recognize the
investment profit and loss on this basis. The internal transaction losses between the Company and the investee
shall be recognized in full if they belong to asset impairment losses according to the Accounting Standards for
Business Enterprises No.8-Asset Impairment. If the accounting policies and accounting periods adopted by the
Annual Report 2025
investee are inconsistent with those of the Company, the financial statements of the investee shall be adjusted
according to the accounting policies and accounting periods of the Company, so as to recognize the investment
profits and losses.
Long-term equity investments in associated enterprises and joint ventures held before the first execution
date, if there is any debit difference of equity investments related to the investment, shall be amortized by the
original remaining term straight-line method, and the amortized amount shall be included in the current profits
and losses.
(3) When disposing of long-term equity investment, the difference between its book value and the actual
purchase price is included in the current profits and losses. If the long-term equity investment accounted by
equity method is included in the owners' equity due to other changes in the owners' equity of the investee except
the net profit and loss, the part originally included in the owners' equity will be transferred to the current profits
and losses in proportion when disposing of the investment, except for other comprehensive income arising from
the investee's re-measurement of the changes in defined benefit plan net liabilities or net assets.
Measurement mode
Measured by cost method
Depreciation or amortization method
Investment real estate refers to real estate held to earn rent or capital appreciation, or both. It includes
leased land use rights, land use rights held and ready to be transferred after appreciation, and leased buildings.
When the Company can obtain rental income or value-added income related to investment real estate and the
cost of investment real estate can be measured reliably, the Company will initially measure it according to the
actual expenditure of purchase or construction.
The Company adopts the cost model to measure the investment real estate on the balance sheet date.
Under the cost model, the Company measures the investment real estate and makes depreciation or amortization
in accordance with the provisions of Item (23) Fixed Assets and Item (26) Intangible Assets of this accounting
policy. When the investment real estate is disposed of, or permanently withdrawn from use, and it is not
expected to obtain economic benefits from its disposal, the recognition of the investment real estate shall be
terminated. When the Company sells, transfers, scraps or damages the investment real estate, the amount of
disposal income after deducting its book value and relevant taxes shall be included in the current profits and
losses.
(1) Recognition conditions
Annual Report 2025
Fixed assets refer to tangible assets with a service life of more than one fiscal year, which are held for
producing goods, providing labor services, leasing or managing.
(2)Depreciation methods
Yearly depreciation
Category Method Years of depreciation Scrap value rate
rate
Straight-line
Houses and buildings 20 10% 4.5%
depreciation
Straight-line
Machinery equipment 10 10% 9%
depreciation
Transportation Straight-line
equipment depreciation
Electronic equipment Straight-line
and others depreciation
The construction in progress is measured according to the actual cost, which includes all necessary project
expenditures incurred during the construction period, borrowing costs that should be capitalized before the
project reaches the scheduled serviceable state, and other related expenses.
Construction in progress is carried forward to fixed assets when it reaches the scheduled serviceable state.
The criteria for scheduled serviceable state shall meet one of the following conditions:
(1) The physical construction (including installation) or production of fixed assets has been completely or
substantially completed;
(2) It has been put into trial production or trial operation, and the results show that the assets can normally
produce qualified products, or the trial operation results show that it can operate or operate properly;
(3) The amount of expenditure that continues to occur on fixed assets purchased, constructed or produced is
very small or almost none;
(4) The fixed assets purchased, constructed or produced have reached the design or contract requirements, or
are basically in line with the design or contract requirements.
Borrowing costs include interest incurred by borrowing, amortization of discount or premium and
auxiliary expenses, as well as exchange difference incurred by borrowing in foreign currency. If the borrowing
costs incurred by the Company can be directly attributed to the purchase, construction or production of assets
that meet the capitalization conditions, they shall be capitalized and included in the cost of relevant assets;
Other borrowing costs shall be recognized as expenses when incurred according to the amount incurred, and
included in the current profits and losses.
Annual Report 2025
Assets eligible for capitalization include fixed assets, investment real estate, inventory and other assets
that need to go through a long period of purchase, construction or production activities to reach the
predetermined serviceable or saleable state.
Borrowing costs shall be capitalized when the following conditions are met at the same time:
(1) Asset expenditure has occurred, including the expenditure occurred in the form of paying cash, transferring
non-cash assets or undertaking interest-bearing debts for purchasing, constructing or producing assets that meet
capitalization conditions;
(2) Borrowing costs have been incurred;
(3) The purchase, construction or production activities necessary to make the assets reach the expected
serviceable or saleable state have started.
Borrowing expenses incurred for purchasing, constructing or producing assets that meet the capitalization
conditions, if they meet the above capitalization conditions and occur before the assets reach the predetermined
serviceable or saleable state, shall be included in the cost of the assets; If the purchase, construction or
production activities of the assets are abnormally interrupted for more than 3 months, the capitalization of
borrowing costs shall be suspended and recognized as current expenses until the purchase, construction or
production activities of the assets resume; When the purchased, constructed or produced assets reach the
predetermined serviceable or saleable state, the capitalization of their borrowing costs will be stopped.
Borrowing costs incurred after reaching the intended serviceable or saleable state are directly included in
financial expenses in the current period.
During the capitalization period, the capitalization amount of interest (including amortization of discount
or premium) in each accounting period shall be determined in accordance with the following provisions:
(1) Where a special borrowing is borrowed for the purpose of purchasing, constructing or producing assets that
meet the capitalization conditions, it shall be determined by the actual interest expenses incurred in the current
period of the special borrowing, minus the interest income obtained by depositing unused borrowing funds in
the bank or the investment income obtained by temporary investment.
(2) If the general borrowing is occupied for the purpose of purchasing, constructing or producing assets that
meet the capitalization conditions, the interest amount that should be capitalized on the general loan shall be
calculated and determined according to the weighted mean of the accumulated asset expenditure exceeding the
special borrowing portion multiplied by the capitalization rate of the occupied general borrowing.
None
Annual Report 2025
None
(1) Service life and its determination basis, estimation, amortization method or review procedure
Intangible assets are measured at actual cost. The cost of outsourced intangible assets includes the
purchase price, relevant taxes, and other expenses directly attributable to making the assets reach the intended
use. If intangible assets are purchased by installment, and the purchase price of intangible assets exceeds the
normal credit conditions and actually with financing nature, the cost of intangible assets is the present value of
the purchase price. The cost of intangible assets invested by investors shall be determined according to the value
agreed in the investment contract or agreement. If the value agreed in the investment contract or agreement is
unfair, it shall be recorded according to the fair value of intangible assets. For intangible assets obtained by
exchange of non-monetary assets, the initial investment cost shall be determined in accordance with the
Accounting Standards for Business Enterprises No.7-Exchange of Non-monetary Assets. For intangible assets
obtained by debt restructuring, its initial investment cost shall be determined in accordance with the Accounting
Standards for Business Enterprises No.12-Debt Restructuring. For intangible assets acquired by merger of
enterprises under the same control, their entry value shall be determined according to the book value of the
merged party; For intangible assets acquired by merger of enterprises not under the same control, their entry
value shall be determined at the fair value.
The Company analyzes and judges the service life of intangible assets when acquiring them, and divides
them into intangible assets with limited service life and intangible assets with uncertain service life. Intangible
assets with limited service life shall be amortized within the expected service life by adopting the amortization
method that can reflect the expected realization mode of economic benefits related to such assets from the time
when the intangible assets are available for use; If the expected realization mode cannot be reliably determined,
straight-line amortization method shall be adopted.
Amortization method, service life, determination basis and residual rate of various intangible assets with limited
service life:
Category Amortization method Service life (year) Determination basis Residual rate (%)
Statutory
Land use right Straight-line method 40-50 years term/registration term of 0.00
land use certificate
Annual Report 2025
Category Amortization method Service life (year) Determination basis Residual rate (%)
Trademark right Straight-line method 10 years Statutory term 0.00
Benefit period/contract
Software Straight-line method 2-10 years 0.00
period
Benefit period/contract
Patent Straight-line method 5-10 years 0.00
period
Benefit period/contract
Non-patent technology Straight-line method 5-10 years 0.00
period
Industrial property rights
Benefit period/contract
and proprietary Straight-line method 10 years 0.00
period
technology
Benefit period/contract
Others Straight-line method 5-10 years 0.00
period
At the end of each year, the Company reviews the service life and amortization method of intangible
assets with limited service life. If the service life and amortization method of intangible assets are different from
those previously estimated, the amortization period and amortization method shall be changed.
The Company regards intangible assets with unpredictable future economic benefits as intangible assets
with uncertain service life, and does not amortize intangible assets with uncertain service life. The Company
reviews the service life of intangible assets with uncertain service life in each accounting period. If there is
evidence that the service life of intangible assets is limited, its service life shall be estimate and treatment shall
be carried out according to the above provisions.
Please refer to Item (27) Impairment of Long-term Assets in this accounting policy for details on the
impairment test method and accrual method for impairment provision of intangible assets.
(2) Collection scope of R&D expenditure and related accounting treatment methods
R&D expenditure is directly related to R&D activities of the enterprise, including R&D employee
compensation, direct input expenses, depreciation expenses and long-term deferred expenses, design expenses,
equipment debugging expenses, intangible assets amortization expenses, commissioned external R&D expenses,
and other expenses. The collection and calculation of R&D expenditure is based on the fact that relevant
resources are actually invested in R&D activities. R&D expenditure includes expensed R&D expenditure and
capitalized development expenditure.
The division standard of research stage expenditure and development stage expenditure of R&D projects:
Research stage expenditure refers to the expenditure incurred by original planned investigation for acquiring
and understanding new scientific or technical knowledge; Development stage expenditure refers to the
expenditure incurred by applying research results or other knowledge to a plan or design to produce new or
substantially improved materials, devices and products before commercial production or use.
Annual Report 2025
Expenditures of intangible assets developed by the Company itself during the research stage of R&D
projects are included in the current profits and losses when incurred. Expenditure in the development stage of
the development project can only be recognized as intangible assets if the following conditions are met at the
same time:
(1) It is technically feasible to complete the intangible assets so that they can be used or sold;
(2) It has the intention to complete the intangible assets and use or sell them;
(3) For the ways in which intangible assets generate economic benefits, including the ability to prove that the
products produced by using the intangible assets exist in the market or the intangible assets themselves exist in
the market, if the intangible assets will be used internally, their usefulness shall be proved;
(4) It has sufficient technical, financial and other resources to support the development of the intangible assets,
and has the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of the intangible assets can be reliably measured.
The expenditure in the development stage that has been expensed in the previous period is no longer adjusted.
None
Long-term deferred expenses refer to the expenses that have been incurred by the Company but should be
borne by the current period and subsequent periods with an amortization period of more than 1 year, including
the improvement expenses of fixed assets rented by operating lease. Long-term deferred expenses shall be
amortized evenly during the benefit period of relevant projects.
Category Amortization years
Decoration and maintenance fee 3-6 years
Contractual liabilities reflect the Company's obligation to transfer goods to customers for received or
receivable consideration from customers. If the customer has paid the contract consideration or the Company
has obtained the unconditional right to receive the contract consideration before the Company transfers the
goods to the customer, the contractual liabilities shall be recognized according to the amount received or
receivable when the customer actually issues the payment or the payment is due, whichever is earlier.
Contract assets and contractual liabilities under the same contract are listed on a net basis, and contract
assets and contractual liabilities under different contracts are not offset.
Annual Report 2025
(1) Accounting treatment for short-term compensation
Short-term salary refers to the employee's salary that the Company needs to pay in full within 12 months
after the end of the annual report period when employees provide relevant services, except post-employment
benefits and dismissal benefits. During the accounting period when employees provide services, the Company
recognizes the actual short-term salary as a liability, and includes it into relevant asset costs and expenses
according to the beneficiaries of employees' services.
(2) Accounting treatment for post-employment benefit
Post-employment benefits refer to various forms of remuneration and benefits provided by the Company
after employees retire or terminate labor relations with the Company in order to obtain services provided by
employees, except short-term remuneration and dismissal benefits. Post-employment benefit plans include
defined contribution plan and defined benefit plans. Defined contribution plan refers to the post-employment
benefit plan in which the Company will not undertake further payment obligations after paying a fixed fee for
an independent fund; Defined benefit plan refers to the post-employment benefit plan except the defined
contribution plan.
(1) Defined contribution plan
Defined contribution plan includes basic old-age insurance and unemployment insurance. During the
accounting period when employees provide services for the Company, the amount payable shall be calculated
according to the local payment base and proportion, recognized as liabilities, and included in the current profits
and losses or related asset costs.
During the accounting period when employees provide services, the amount payable calculated according
to the defined contribution plan is recognized as a liability and included in the current profits and losses or
related asset costs.
(2) Defined benefit plan
According to the formula determined by the expected cumulative benefit unit method, the Company
attributes the benefit obligations generated by defined benefit plan to the period when employees provided
services, and includes them in the current profits and losses or related asset costs. The employee compensation
cost caused by defined benefit plan of the Company includes the following components:
A. Service costs, including current service costs, past service costs and settlement gains or losses. Current
service costs refer to the increase in the present value of defined benefit plan obligations caused by employees'
provision of services in the current period; Past service costs refer to the increase or decrease of the present
value of defined benefit plan obligations related to employee service in the previous period caused by the
revision of the defined benefit plan.
B. Net interest of net liabilities or net assets in defined benefit plan, including the interest income of planned
assets, the interest expense of defined benefit plan obligations and the interest affected by the asset ceiling.
C. Changes arising from re-measurement of net liabilities or net assets in defined benefit plan.
Annual Report 2025
Unless other accounting standards require or allow employee benefit costs to be included in the asset costs,
the Company will include the above items A and B in the current profits and losses, and include Item C in other
comprehensive income which will not be transferred back to profit or loss in subsequent accounting periods, but
these amounts recognized in other comprehensive income can be transferred within the scope of equity.
(3)Accounting for retirement benefits
Dismissal benefits refer to the compensation provided to employees by the Company for terminating the
labor relationship with employees before the expiration of their labor contracts or for encouraging employees to
voluntarily accept layoffs. If the Company provides dismissal benefits to employees, the employee
compensation liabilities arising from the dismissal benefits shall be recognized at the earlier of the following
two dates, and included in the current profits and losses: when the Company cannot unilaterally withdraw the
dismissal benefits provided by the plan to terminate labor relations or the proposal to cut back; When the
Company recognizes the costs or expenses related to the reorganization involving the payment of dismissal
benefits.
(4) Accounting for other long-term employee benefits
Other long-term employee benefits refer to all employee compensation except short-term salary, post-
employment benefits and dismissal benefits, including long-term paid absences, long-term disability benefits
and long-term profit sharing plans. Other long-term employee benefits provided by the Company to employees,
if they meet the requirements of the defined contribution plan, shall be handled in accordance with the relevant
provisions of the defined contribution plan; For other long-term employee benefits other than the above, the net
liabilities or net assets of other long-term employee benefits shall be recognized and measured according to the
relevant regulations of the defined benefit plan. At the end of the reporting period, the Company attributed the
benefit obligations arising from other long-term employee benefits to the period when employees provided
services, and included them in the current profits and losses or related asset costs.
If the Company's obligation related to contingencies meet the following conditions at the same time, it
will be recognized as a liability: (1) This obligation is the current obligation undertaken by the Company; (2)
The performance of this obligation may lead to the outflow of economic benefits; (3) The amount of the
obligation can be measured reliably.
All or part of the expenditures required for the estimated liabilities are expected to be compensated by the
third party or other parties, and the compensation amount is recognized as an asset separately when it is
basically determined that it can be received, and the recognized compensation amount does not exceed the book
value of the recognized liabilities. The estimated liabilities are initially measured according to the best estimate
of the expenditure required to perform the relevant current obligations, with the factors related to contingencies,
Annual Report 2025
such as risks, uncertainties and time value of money, comprehensively considered. If the time value of money
has a significant impact, the best estimate shall be determined by discounting the relevant future cash outflows.
On the balance sheet date, the Company reviews the book value of the estimated liabilities. If there is
conclusive evidence that the book value cannot truly reflect the current best estimate, such book value will be
adjusted according to the current best estimate.
Share-based payment of the Company is divided into cash-settled share-based payment and equity-settled
share-based payment.
Equity-settled share-based payment shall be measured at the fair value of equity instruments granted to
employees. If it is exercisable immediately after the grant, it will be included in the relevant costs or expenses
according to the fair value of the equity instrument on the grant date, and the capital reserve will be increased
accordingly. If it is exercisable only after the service within the waiting period is completed or the specified
performance conditions are met, on each balance sheet date within the waiting period, the service obtained in
the current period shall be included in the relevant costs or expenses and capital reserve based on the best
estimate of the number of exercisable equity instruments and according to the fair value on the grant date of the
equity instruments. After the vesting date, the recognized related costs or expenses and the total owners' equity
will not be adjusted.
Cash-settled share-based payment shall be measured at fair value of liabilities calculated and determined
based on shares or other equity instruments undertaken by the Company. If it is exercisable immediately after
the grant, it will be included in the relevant costs or expenses at the fair value of the liabilities undertaken by the
Company on the grant date, and the liabilities will be increased accordingly. For cash-settled share-based
payment exercisable after the service in the waiting period is completed or the specified performance conditions
are met, the service obtained in the current period shall be included in the costs or expenses and corresponding
liabilities on each balance sheet date during the waiting period based on the best estimate of the vesting
situation and according to the fair value of the liabilities undertaken by the Company. On each balance sheet
date and settlement date before the settlement of related liabilities, the fair value of liabilities is re-measured,
and its changes are included in the current profits and losses.
No matter how the terms and conditions of the granted equity instruments are modified, or even the grant
of the equity instruments is cancelled or the equity instruments are settled, the Company shall at least recognize
that the corresponding services obtained are measured according to the fair value of the granted equity
instruments on the grant date, unless the vesting conditions of the equity instruments (except market conditions)
cannot be met.
Annual Report 2025
If the Company cancels the granted equity instruments or settles the granted equity instruments within the
waiting period (except those cancelled due to failure to meet the conditions of vesting conditions), the treatment
is as follows:
(1) The cancellation or settlement will be treated as accelerated vesting, and the amount that should have been
recognized in the remaining waiting period will be recognized immediately.
(2) All the money paid to employees at the time of cancellation or settlement shall be treated as the repurchase
of equity, and the part paid for repurchase that is higher than the fair value of the equity instrument on the
repurchase date shall be included in the current expenses.
(3) If a new equity instrument is granted to employees, and it is determined that the new equity instrument
granted is used to replace the cancelled equity instrument on the grant date of the new equity instrument, the
Company shall handle the granted alternative equity instrument in the same way as the modification of the
terms and conditions of the original equity instrument.
None
Disclosure of accounting policies adopted in income recognition and measurement according to business types
The Company has fulfilled its contractual obligations, that is, to recognize the income when the customer
obtains the control right of relevant goods. Performance obligation refers to the commitment to transfer clearly
distinguishable goods to customers in the contract. The Company evaluates the contract on the contract start
date to identify each individual performance obligation contained in the contract. If the following conditions are
met at the same time, it is clearly distinguishable goods:
(1) Customers can benefit from the goods itself or from the use of the goods along with other easily available
resources;
(2) The commitment to transfer the goods to customers can be distinguished separately from other
commitments in the contract.
The following situations usually indicate that the commitment to transfer the goods to customers cannot
be distinguished separately from other commitments in the contract:
(1) Significant services need to be provided to integrate the goods and other goods promised in the contract into
the combined output agreed in the contract and transfer it to customers;
(2) The goods will make major modifications or customizations to other goods promised in the contract;
(3) The goods are highly correlated with other goods promised in the contract.
Annual Report 2025
The transaction price is the amount of consideration that the Company is expected to receive for
transferring the goods to customers, excluding the payment collected on behalf of third parties and the payment
that the Company is expected to return to customers. When determining the transaction price of the contract, if
there is a variable consideration, the Company will determine the best estimate of the variable consideration
according to the expected value or the most likely amount, and include it in the transaction price at an amount
not exceeding the amount that is unlikely to be significantly reversed when the relevant uncertainty is
eliminated. If there is a significant financing component in the contract, the Company will determine the
transaction price according to the amount payable in cash when the customer obtains the goods control right,
and the difference between the transaction price and the contract consideration will be amortized by the
effective interest rate method during the contract period. If the interval between the customer obtaining the
goods control right and the customer paying the price is less than one year, the Company will not consider the
financing component. When the consideration that the Company has the right to collect from the customer due
to the transfer of goods is in the form of non-cash, the Company will determine the transaction price according
to the fair value of the non-cash consideration on the contract start date. If the fair value of the non-cash
consideration cannot be reasonably estimated, the Company will indirectly determine the transaction price with
reference to the individual selling price of the goods it promised to transfer to customers. For the payment that
the Company expects to return to customers, except for obtaining other clearly distinguishable goods from
customers, the consideration payable shall be used to offset the transaction price. If the consideration payable to
customers exceeds the fair value of clearly distinguishable goods obtained from customers, the excess amount
shall be used as the consideration payable to customers to offset the transaction price. If the fair value of clearly
distinguishable goods obtained from customers cannot be reasonably estimated, the Company will fully offset
the transaction price from the consideration payable to customers. When carrying out accounting treatment on
the transaction price offset by the consideration payable to customers, the Company will offset the current
income at the later time of recognizing the relevant income and paying (or promising to pay) the customer
consideration.
If the contract contains two or more performance obligations, the Company will allocate the transaction
price to each individual performance obligation according to the relative proportion of the individual selling
price of the goods promised by each individual performance obligation on the contract start date, and measure
the income according to the transaction price allocated to each individual performance obligation. In case of
subsequent changes in the transaction price, the Company will allocate the subsequent changes to the
performance obligations in the contract according to the basis adopted on the contract start date. The transaction
price will not be re-allocated due to the change of individual selling price after the contract start date.
If any of the following conditions is met, the Company will perform its obligations within a certain period
of time; Otherwise, it is a fulfillment of performance obligation at a certain time point:
Annual Report 2025
(1) Customers gain and consume the economic benefits brought by the Company's performance at the same
time;
(2) Customers can control the goods under construction during the performance of the Company;
(3) The goods produced during the performance of the Company have irreplaceable uses, and the Company has
the right to collect payment for the accumulated part of the performance completed so far during the whole
contract period.
For the performance obligations performed in a certain period of time, the Company shall recognize the
income according to the performance progress during that period, except that the performance progress cannot
be reasonably determined. The Company determines the performance progress of provided services according
to the input method. When the performance progress cannot be reasonably recognized, if the cost already
incurred by the Company is expected to be compensated, the revenue will be recognized according to the cost
amount already incurred until the performance progress can be reasonably recognized.
For the performance obligations fulfilled at a certain time point, the Company recognizes the income
when the customer obtains the control right of relevant goods. When judging whether the customer has obtained
the control of the goods, the Company will consider the following signs:
(1) The Company is entitled to the right of real time payment collection for the goods, that is, the customer has
the real time payment collection obligation for the goods;
(2) The Company has transferred the legal ownership of the goods to the customer, that is, the customer has the
legal ownership of the goods;
(3) The Company has transferred the goods in kind to the customer, that is, the customer has occupied the
goods in kind;
(4) The Company has transferred the main risks and rewards on the ownership of the goods to the customer,
that is, the customer has obtained the main risks and rewards on the ownership of the goods;
(5) The customer has accepted the goods.
According to whether the Company has control over the goods or services before transferring them to
customers, the Company judges whether it is the main responsible person or the agent when engaging in
transactions. If the Company can control the goods or services before transferring them to customers, the
Company is the main responsible person, and the income is recognized according to the total consideration
received or receivable; Otherwise, the Company is an agent, and will recognize the income according to the
expected amount of commission or handling fee, which is determined according to the net amount of the total
consideration received or receivable after deducting the price payable to other interested parties, or according to
the established commission amount or proportion.
The situations in which the Company can control the goods before transferring them to customers include the
following:
Annual Report 2025
(1) The enterprise transfers the control right of goods or other assets to the customer after it obtains it from a
third party;
(2) The enterprise can lead the third party to provide services to customers on behalf of the enterprise;
(3) After the enterprise obtains the control right of the goods from the third party, it integrates the goods with
other goods into a combined output and transfers it to the customer by providing significant services.
When judging whether it has control over the goods before transferring them to customers, the Company
comprehensively considers all relevant facts and circumstances, including:
(1) The enterprise bears the main responsibility for transferring goods to customers;
(2) The enterprise bears the inventory risk of the goods before or after their transfer;
(3) The enterprise has the right to decide the prices of the goods for trade independently;
(4) Other relevant facts and circumstances.
Different income recognition methods and measurement methods involved in different business models adopted
by similar businesses
(1) Sales merchandise business
The Company's commodity sales mainly include circulation sales, shopping mall joint operation and proprietary
e-commerce, and the recognition methods of sales revenue these three ways are as follows:
(1) Circulation sales refers to that the Company recognizes the sales revenue when the goods are delivered to
the customer and the authorized representative or the first carrier recognized by the customer at the designated
place, and the customer and the authorized representative or the first carrier have signed for it, and the Company
has received the payment or obtained delivery documents.
(2) Proprietary e-commerce refers to that the Company retails through third-party e-commerce platforms (such
as Tmall and JD.COM), and recognizes the sales revenue when the customer signs for the goods and obtains the
payment or payment right.
(2)Provision of labor services
The Company's provision of labor services mainly includes processing with supplied materials and entrusted
consignment sales. The methods of revenue recognition are as follows:
① For the processing of supplied materials, after completing the processing of the relevant goods and
delivering them to the customer, the processing fee income is recognized when the processing fee has been
received or the right to receive the processing fee has been obtained.
Annual Report 2025
② For consignment sales, the Company, as the entrusted party, acts as an agent in consignment sales business
and recognizes agency service income at the net amount upon receiving the sales list confirmed by the
downstream customers.
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
Contract costs include incremental costs incurred in obtaining contract and contract performance costs.
The incremental costs incurred to obtain the contract refer to the costs that the Company would not have
incurred if the contract had not been obtained (e.g., sales commission, etc.). If the cost is expected to be
recovered, the Company recognizes it as an asset for the costs of acquiring the contract. Expenses incurred by
the Company in obtaining the contract, other than the incremental costs that are expected to be recovered, are
included in profit or loss for the current period when incurred.
If the costs incurred for the performance of the contract are not subject to the scope of the relevant
standards such as inventory, fixed assets or intangible assets, and the following conditions are met at the same
time, the Company recognizes them as an asset for contract performance costs:
(1) the cost is directly related to a current or an anticipated contract, including direct labor, direct materials,
manufacturing expenses (or similar expenses), costs expressly borne by the customer and other costs incurred
solely as a result of the contract;
(2) the cost increases the resources that the enterprise will use to fulfill its performance obligations in the future;
(3) the cost is expected to be recovered.
The asset as recognized by the cost of acquiring the contract and the asset as recognized by the cost of
performance of the contract are amortized on the same basis as the revenue recognition of the goods or services
related to the assets, and are included in profit or loss for the current period.
If the carrying amount of an asset related to the contract cost is higher than the following two differences,
the Company shall make an impairment provision for the excess and recognize it as an asset impairment loss:
(1) The residual consideration that the enterprise is expected to receive as a result of the transfer of commodities
related to the asset;
(2) An estimate of the costs to be incurred for the transfer of the relevant goods.
Annual Report 2025
If the factors of impairment in the previous period change subsequently, so that the difference by (1)
minus (2) is higher than the carrying amount of the asset, the original provision for impairment of the asset shall
be reversed and included in the profit or loss for the current period, but the carrying amount of the reversed
asset shall not exceed the carrying amount of the asset on the reversal date assuming that no provision for
impairment is made.
Government subsidies refer to the monetary assets or non-monetary assets obtained by the company from
the government free of charge, including government subsidies related to assets and government subsidies
related to income.
Asset-related government subsidies refer to government subsidies obtained by a company for the
acquisition, construction or other formation of long-term assets.
Income-related government subsidies refer to government subsidies other than asset-related government
subsidies.
Recognition principle of government subsidies:
(1) The company is able to meet the conditions attached by the government subsidy;
(2) The company is able to receive government subsidies.
The government subsidy can only be recognized if the above conditions are met at the same time.
(1) If the government subsidy is a monetary asset, the company shall measure it according to the amount
received or receivable;
(2) If the government subsidy is a non-monetary asset, the company shall measure it at fair value, and if the fair
value cannot be reliably obtained, it shall be measured at the notional amount (the notional amount is RMB 1).
Annual Report 2025
(1) Asset-related government subsidies are written off the carrying amount of the underlying assets or
recognized as deferred income upon acquisition. If it is recognized as deferred income, it shall be included in
profit or loss in installments in accordance with a reasonable and systematic method during the useful life of the
relevant asset. Government subsidies measured in notional amounts are directly included in profit or loss for the
current period.
(2) Government subsidies related to income shall be handled as follows:
A. If it is used to compensate the company for the relevant costs, expenses or losses in subsequent periods, it
shall be recognized as deferred income at the time of acquisition, and shall be included in the profit or loss for
the current period or offset the relevant costs during the period when the relevant costs, expenses or losses are
recognized.
B. If it is used to compensate for the relevant costs, expenses or losses incurred by the company, it shall be
directly included in the current profit or loss or offset the relevant costs when acquired.
(3) For government subsidies that are included in both the asset-related part and the income-related part, if they
can be distinguished, they shall be accounted for separately in different parts, and if it is difficult to distinguish,
they shall be classified as income-related government subsidies as a whole.
(4) Government subsidies related to the company's routine operations shall be included in other income or offset
related costs and expenses according to the economic business substance. Government subsidies unrelated to
the company's routine activities are included in non-operating income and expenditure. If the finance
department directly allocates the discount funds to the company, the company will offset the relevant borrowing
costs with the corresponding discount.
(5) If the confirmed government subsidy needs to be returned, it shall be handled according to the following
circumstances:
A. If the carrying amount of the relevant asset is reduced at the time of initial recognition, the carrying
amount of the asset shall be adjusted.
B. If there is relevant deferred income, the carrying amount of the relevant deferred income shall be written
off, and the excess part shall be included in the profit or loss for the current period.
C. If it belongs to other circumstances, it shall be directly included in the profit or loss for the current period.
Annual Report 2025
When the company acquires assets and liabilities, it determines its tax base. If there is a temporary
difference between the carrying amount of assets and liabilities and their tax base, the deferred tax assets or
deferred tax liabilities arising from them shall be recognized in accordance with the regulations.
(1) The company recognizes deferred tax assets arising from deductible temporary differences to the extent that
it is likely to obtain taxable income that can be used to offset deductible temporary differences. However,
deferred tax assets arising from the initial recognition of assets or liabilities are not recognized in transactions
that (1) is not a business combination, and (2) the transaction does not affect either accounting profits or taxable
income (or deductible losses) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax assets for deductible temporary differences related
to investments in subsidiaries, associates and joint ventures that meet the following conditions at the same time:
(1) the temporary differences are likely to be reversed in the foreseeable future, and (2) the taxable income used
to offset the deductible temporary differences is likely to be obtained in the future.
(3) For deductible losses and tax credits that can be carried forward to subsequent years in accordance with the
provisions of the tax law, they shall be treated as deductible temporary differences, and the corresponding
deferred tax assets shall be recognized to the extent that the future taxable income that is likely to be used to
offset the deductible losses and tax credits.
(1) The company recognizes all deferred tax liabilities arising from taxable temporary differences, except for
the deferred income tax liabilities arising from the following transactions: (1) the initial recognition of goodwill,
and (2) the initial recognition of assets or liabilities arising from transactions that satisfy both the following
characteristics: the transaction is not a business combination, and the transaction does not affect either the
accounting profit or the taxable income (or deductible loss) at the time of the transaction.
(2) The Company recognizes the corresponding deferred tax liabilities for taxable temporary differences related
to investments in subsidiaries, associates and joint ventures, but other than those with the following conditions
are met at the same time: (1) the investment enterprise can control the time for the reversal of the temporary
difference, and (2) the temporary difference is likely not to be reversed in the foreseeable future.
When the company has the legal right to settle on a net basis and intends to settle on a net basis or acquire
assets and settle liabilities at the same time, the company's current income tax assets and current income tax
liabilities are presented on a net basis after offset.
Annual Report 2025
When there is a legal right to settle the current income tax assets and current income tax liabilities on a net
basis, and the deferred tax assets and deferred tax liabilities are related to the income tax levied by the same tax
collection and administration department on the same taxpayer or levied by the same tax collection and
administration department to different tax subjects, but in each period of reversal of deferred tax assets and
liabilities of material nature in the future, the taxpayer involved intends to settle the current income tax assets
and liabilities on a net basis or acquire the assets and settle liabilities at the same time, the deferred tax assets
and deferred tax liabilities of the Company are presented on a net basis after offset.
(1) Accounting treatment as a lessee lease
(1) Right-of-use assets
On the commencement date of the lease term, the Company, as the lessee, recognizes the right to use the leased
asset during the lease term as right-of-use asset, except for short-term leases and leases of low-value assets.
Right-of-use assets are initially measured at cost, which includes:
A. Initial measurement amount of the lease liability;
B. If there is a lease incentive for the lease payment paid on or before the start date of the lease term, the
relevant amount of the lease incentive already enjoyed shall be deducted;
C. Initial direct costs incurred;
D. Costs expected to be incurred to dismantle and remove the leased asset, restore the site on which the leased
asset is located, or restore the leased asset to the condition agreed in the lease terms, except for the production
of inventory.
The Company adopts the cost model for the subsequent measurement of right-of-use assets, and adopts the
straight-line method for depreciation of various types of right-of-use assets.
If the Company is able to reasonably determine that the ownership of the leased assets will be acquired at
the expiration of the lease term, the depreciation shall be accrued during the remaining useful life of the leased
assets, and if it cannot be reasonably determined that the ownership of the leased assets can be acquired at the
expiration of the lease term, the depreciation shall be accrued during the period which is shorter from the lease
term and the remaining useful life of the leased assets. If the right-of-use asset is impaired, the Company will
carry out subsequent depreciation based on the carrying amount of the right-of-use asset after deducting the
impairment loss.
Annual Report 2025
When the Company remeasures lease liabilities based on the present value of the changed lease payments
and adjusts the carrying amount of right-of-use assets accordingly, if the carrying amount of right-of-use assets
has been reduced to zero, but the lease liabilities still need to be further reduced, the remaining amount will be
included in profit or loss for the current period.
The impairment test method and impairment provision method of right-of-use assets are detailed in
(XXVII) Impairment of long-term assets of this accounting policy.
(2) Lease liabilities
At the commencement date of the lease term, the Company recognizes the present value of unpaid lease
payments as lease liabilities, excluding short-term leases and leases of low-value assets.
When calculating the present value of the lease payment, the Company, as the lessee, uses the interest rate
implicit in the lease as the discount rate, and if the interest rate implicit in the lease cannot be determined, the
incremental borrowing rate of the Company is used as the discount rate.
The Company calculates the interest expense of lease liabilities for each period of the lease term at a fixed
periodic interest rate and includes them in profit or loss for the current period. Variable lease payments that are
not included in the measurement of lease liabilities are recognized in profit or loss for the current period when
they are actually incurred.
After the commencement date of the lease term, the Company will remeasure the lease liability based on
the present value of the changed lease payment in the event of a change in the amount of the substantial fixed
payment, a change in the estimated amount payable for the residual value of the guarantee, a change in the
index or ratio used to determine the amount of the lease payment, a change in the evaluation result or actual
exercise of the option to purchase, renew or terminate the option.
(3) Short-term leases and leases of low-value assets
A short-term lease is a lease with a lease period of not more than 12 months on the start date of the lease
term and does not include an option to purchase. A lease of a low-value asset refers to a lease with a low value
when a single leased asset is a brand-new asset. If the Company subleases or expects to sublease the leased
assets, the original lease is not a low-value asset lease.
The Company chooses not to recognize right-of-use assets and lease liabilities for short-term leases and
leases of low-value assets, and to include the relevant lease payments in profit or loss or the cost of related
assets on a straight-line basis for each period of the lease term.
（2） Accounting treatment as a lessor's lease
Annual Report 2025
On the lease commencement date, the Company divides the lease into the finance lease and the operating
lease. A financial lease refers to a lease that substantially transfers almost all of the risks and rewards associated
with the ownership of the leased asset, regardless of whether the ownership is ultimately transferred. Operating
leases refer to leases other than financial leases. When the Company acts as a subleaselessor, it classifies the
sublease based on the right-of-use assets generated from the original lease.
(1) Accounting treatment of operating leases
Lease receipts from operating leases are recognized as rental income on a straight-line basis for each
period of the lease term. The Company capitalizes the initial direct expenses incurred in connection with the
operating lease and apportion them to profit or loss for the current period on the same basis as the rental income
recognition during the lease term. Variable lease payments that are not included in lease receipts are recognized
in profit or loss for the current period when they are actually incurred.
(2) Accounting treatment of financial leases
On the lease commencement date, the Company recognizes the financial lease receivables for the financial
lease and terminates the recognition of the financial lease assets. When the Company initially measures the
financial lease receivables, the net lease investment is recorded as the entry value of the financial lease
receivables. The net lease investment is the sum of the unsecured residual value and the present value of lease
receipts not yet received at the start date of the lease term discounted at the interest rate implicit in the lease.
The Company calculates and recognizes interest income for each period of the lease term at a fixed
periodic interest rate. The derecognition and impairment of financial lease receivables are described in (Xl)
Financial instruments of this accounting policy.
Variable lease payments that are not included in the net measurement of lease investments are recognized
in profit or loss for the period when they are actually incurred.
None
(1) Changes of important accounting policy
□Applicable ?Not applicable
(2)Changes of important accounting estimation
□Applicable ?Not applicable
（3）The Company started implementing the updated accounting standards commencing from 2025 and
adjusted the relevant items in the financial statements at the beginning of the very year involved in the
Annual Report 2025
initial implementation of the said standards
□Applicable ?Not applicable
None
VI. Taxes
Type of tax Tax calculation evidence Tax rate
Sales of goods, taxable labor service
revenue, taxable income, intangible
Value added tax 5%,6%,9%,13%
assets income and income from property
leasing
City maintenance & construction tax VAT payable 7%
Enterprise income tax Taxable income See below for details
Education Fee Surcharge VAT payable 3%
Local education fee surcharge VAT payable 2%
Disclose reasons for different taxpaying body
Taxpaying body Income tax rate
Shenzhen China Bicycle Company (Holdings) Co., Ltd. 25%
Shenzhen Xinsen Jewelry Gold S Co., Ltd 25%
Shenzhen Xinsen Precision Manufacturing Co.,Ltd. 20%
Shenzhen Jiucheng Culture Technology Co., Ltd. 20%
Shenzhen Jinjiucheng Intangible Cultural Heritage Inheritance
Co., Ltd.
Dongguan Xinsen Jewelry Co., Ltd. 20%
Shenzhen Emmelle Industrial Co., Ltd. 20%
Shenzhen Emmelle Cloud Technology Co., Ltd. 20%
Fujian Huaxinbao Jewelry Co., Ltd. 20%
PutianKaipu Technology Partnership(LP) Divide first and then tax
Shenzhen Huabao Zhenxuan Jewelry Co., Ltd. 20%
Hainan Shenhua Industrial Co., Ltd. 20%
Shenzhen Cloud Preferred Jewelry Technology Co., Ltd. 20%
Hangzhou Huabaohui Digital Culture Co., ltd. 20%
Tibet Jinyaya Trading Co., Ltd. 20%
Zhenhua International Co., Ltd. 16.50%
The subsidiaries Shenzhen Xinsen Precision Manufacturing Co., Ltd., Shenzhen Jiucheng Culture
Technology Co., Ltd., Shenzhen Jinjiucheng Intangible Cultural Heritage Inheritance Co., Ltd.,Dongguan
Xinsen Jewelry Co., Ltd.,ShenzhenEmmelle Industrial Co., Ltd., Shenzhen Emmelle Cloud Technology Co.,
Ltd., Fujian HuaxinbaoJewelry Co., Ltd., Shenzhen Cloud Preferred Jewelry Technology Co., Ltd., Hangzhou
Huabaohui Digital Culture Co., Ltd.and Tibet Jinyaya Trading Co., Ltd.. meet the conditions of "small and low-
profit enterprises", and according to the regulations of No. 12[2023] announcement of the State Administration
of Taxation of the Ministry of Finance "Announcement on Further Supporting the Development of Small and
Annual Report 2025
Micro Enterprises and Individual Industrial and Commercial Households", for small enterprises with small
profit, the income tax policy for the taxable income will be reduced to be 25% to calculate and the enterprise
income tax paid at the rate of 20% will be extended until December 31,2027.
None
VII. Notes to Items in the Consolidated Financial Statements
In RMB
Item Ending balance Opening balance
Cash on hand 52,322.40 48,364.40
Bank deposit 75,413,663.68 80,750,939.08
Other monetary fund 8,647.57 175,057.11
Total 75,474,633.65 80,974,360.59
Including: total amount deposited in
overseas
Other note：
The funds stored abroad are the monetary funds held overseas by the foreign subsidiary Shenhua
International Co., Ltd.
In RMB
Item Ending balance Opening balance
Including:
Including:
Other note：
In RMB
Item Ending balance Opening balance
Other note：
（1）Disclosure according to the aging of account
In RMB
Aging Balance in year-end Balance Year-beginning
Annual Report 2025
Within one year(one year included) 205,252,446.94 232,431,363.63
Over 3 years 26,261,354.02 14,282,063.33
Over 5 years 3,325,287.20 2,254,815.92
Total 232,662,589.35 259,704,121.99
（2）According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Balance Bad debt provision
Category Book Book
Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Accrual of
bad debt 26,309,6 26,266,0 43,589.2 26,453,0 25,072,9 1,380,01
provision 37.31 48.03 8 09.97 94.46 5.51
by single
Including
：
Single
identificati 11.31% 99.83% 10.19% 94.78%
on
Accrual of
bad debt
provision 88.69% 0.78% 89.81% 0.44%
by
portfolio
Including
：
Aging 206,352, 1,614,20 204,738, 233,251, 1,022,49 232,228,
portfolio 952.04 5.44 746.60 112.02 2.94 619.08
Total 100.00% 11.98% 100.00% 10.05%
Bad debt provision accrual on single basis: Single identification
In RMB
Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
Technology
recover
Co., Ltd.
Suzhou
Daming Expected to be
Vehicle 891,564.42 713,251.54 867,634.42 824,045.14 94.98% difficult to
Industry Co., recover
Ltd.
Suzhou Jiaxin Expected to be
Economic 888,757.00 888,757.00 888,757.00 888,757.00 100.00% difficult to
Trade Co., Ltd. recover
Annual Report 2025
Dongguan
Expected to be
Daxiang New
Energy Co.,
recover
Ltd.
Ningbo
Fanxing New Expected to be
Energy 503,555.00 402,844.00 457,112.34 457,112.34 100.00% difficult to
Technology recover
Co., Ltd.
Shijiazhuang Expected to be
Dasong Tech. 497,064.00 497,064.00 497,064.00 497,064.00 100.00% difficult to
Co., Ltd recover
Guangdong
Expected to be
Xinlingjia New
Energy Co.,
recover
Ltd.
Shanghai Swen Expected to be
Electric Vehicle 280,197.50 280,197.50 250,197.50 250,197.50 100.00% difficult to
Co., Ltd. recover
Fuzhou Dayang
Disputed and
Commercial 147,804.28 147,804.28 147,804.28 147,804.28 100.00%
unrecoverable
Co., Ltd.
Tianjin Huiju Expected to be
Electric Vehicle 116,840.14 116,840.14 116,840.14 116,840.14 100.00% difficult to
Co., Ltd. recover
Expected to be
Other 194,525.00 194,525.00 194,525.00 194,525.00 100.00% difficult to
recover
Total 26,453,009.97 25,072,994.46 26,309,637.31 26,266,048.03
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Within 1 year 205,156,796.94 517,946.47 0.25%
Over 5 years
Total 206,352,952.04 1,614,205.44
Explanation on portfolio basis:
None
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□Applicable?Not applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
Annual Report 2025
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Accounts
receivable with
individual 25,072,994.46 1,322,351.70 129,298.13 26,266,048.03
provision for
bad debts
Provision for
bad debts based
on a portfolio 1,022,492.94 619,518.98 27,806.48 1,614,205.44
of credit risk
characteristics
Total 26,095,487.40 1,941,870.68 157,104.61 27,880,253.47
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
(4)Account receivables actually write-off during the reporting period
In RMB
Item Amount written off
Including major account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
（5）The top five accounts receivable and contract assets at the end of the period aggregated according
to debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Fuzhou Rongrun
Jewelry Co., Ltd
Shenzhen
Yunshang Jewelry
Annual Report 2025
Co., Ltd
Fuzhou
Zhuanjinsen 40,423,873.92 40,423,873.92 17.37% 114,219.60
Jewelry Co., Ltd.
Fuzhou Congshan
Dingjue Jewelry 32,603,399.93 32,603,399.93 14.01% 87,479.43
Company
Guangshui Jiaxu
Energy
Technology Co.,
Ltd.
Total 200,362,875.90 200,362,875.90 86.10% 22,417,577.84
(1) Information of contract assets
In RMB
Ending balance Opening balance
Item Bad debt Bad debt
Book balance Book value Book balance Book value
provision provision
Total 0.00 0.00 0.00 0.00 0.00 0.00
(2) The significant amount change in book value during the reporting period and its reason
In RMB
Item The amount of change Reason for change
（3） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category value value
Amount Proporti Amount Proporti Amount Proporti Amount Proporti
on(%) on(%) on(%) on(%)
Inducing
Including
Provision for bad debts is made according to the general model of expected credit losses
□Applicable ?Not applicable
(4)Bad debt provision accrual, collected or reversal in the period
In RMB
Item Accrual Collected or reversal Write off Reason
Thereinto, the important amount of bad debt provision recovered or reversed in the current period:
In RMB
Name of the Amount recovered or The basis and
Reason for reversal Recovery method
organization reversed rationality for
Annual Report 2025
determining the
provision ratio of
original bad debt
provision
Other note：
（5） Contract assets actually written off in the current period
In RMB
Item Amount written off
Including important Contract asset written-off:
In RMB
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
Other note：
（1） Classification of receivables financing
In RMB
Item Ending balance Opening balance
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category value value
Amount Proporti Amount Proporti Amount Proporti Amount Proporti
on(%) on(%) on(%) on(%)
Inducing
Including
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2025
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Annual Report 2025
Explanation of the significant changes in the book balance of receivables financing with changes in loss
provisions in the current period:
（3）Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
（4）Financing of accounts receivable pledged by the Company at the end of the period
In RMB
Item Pledged amount at the end of the period
（5）Financing of accounts receivable that have been endorsed or discounted by the Company at the end
of the period and have not yet matured on the balance sheet date
In RMB
The amount of derecognition at the end The amount not derecognized at the end
Item
of the period of the period
（6） Financing situation of accounts receivable actually written off in this period
In RMB
Item Write-off amount
The write off information of important accounts receivable financing thereinto
In RMB
Whether the
Write-off payment is
Reason for write-
Name Nature of amount Write-off amount procedures for generated by a
off
fulfillment related party
transaction
Write-off explanation:
(7) Changes in accounts receivable financing and fair value changes in the current period
Annual Report 2025
（8）Other note
In RMB
Item Ending balance Opening balance
Other account receivable 818,967.94 18,883,650.76
Total 818,967.94 18,883,650.76
(1)Interest receivable
In RMB
Item Ending balance Opening balance
In RMB
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
□Applicable ?Not applicable
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Annual Report 2025
In RMB
Item Write-off amount
Important Interest receivables write-offs thereinto
In RMB
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Other note：
(2)Dividend receivable
In RMB
Item (or the invested entity) Ending balance Opening balance
In RMB
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
□Applicable ?Not applicable
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Annual Report 2025
In RMB
Item Write-off amount
Important dividend receivables write-offs thereinto
In RMB
Whether the
Write-off payment is
Name Nature of amount Write-off amount Write-off reason procedures for generated by a
fulfillment related party
transaction
Note：
Other note：
(3) Other Account receivable
In RMB
Nature Ending book balance Opening book balance
Performance compensation 18,154,754.41
Deposit or margin 827,683.86 719,345.30
Personal loan of employees 18,087.32 63,952.14
Payment for equipment 311,400.00 311,400.00
Current account 88,786.79 189,200.47
Other 82,147.83 9,157.90
Total 1,328,105.80 19,447,810.22
In RMB
Aging Ending book balance Opening book balance
Within one year(one year included) 314,322.50 18,602,799.92
Over 3 years 405,231.00 426,731.00
Over 5 years 376,731.00 410,900.00
Total 1,328,105.80 19,447,810.22
?Applicable □Not applicable
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Annual Report 2025
Includin
g：
Accrual
of bad
debt 1,328,10 509,137. 818,967. 19,447,8 564,159. 18,883,6
provisio 5.80 86 94 10.22 46 50.76
n by
portfolio
Includin
g：
Aging 1,328,10 509,137. 818,967. 1,293,05 564,159. 728,896.
portfolio 5.80 86 94 5.81 46 35
Related
Portfoli 93.35%
o 54.41 54.41
Total 100.00% 38.34% 100.00% 2.90%
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Within one year(one year
included)
included)
included)
included)
Over 5 years 376,731.00 376,731.00 100.00%
Total 1,328,105.80 509,137.86
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on January 1,
January 1, 2025
balance in the current
period
Reversal in Current
Year
Accrual in current year 89,600.93 89,600.93
Balance on December
The basis for the division of each stage and the proportion of bad debt provision
Explanation of the significant changes in the book balance of receivables financing with changes in loss
Annual Report 2025
provisions in the current period:
□Applicable?Not applicable
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Provision for
bad debts
according to the 564,159.46 34,579.33 89,600.93 509,137.86
combination of
credit risk
Total 564,159.46 34,579.33 89,600.93 509,137.86
Important amount of bad debt provision switch-back or collection in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
In RMB
Item Amount written off
Including major other account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Other Nature Causes Procedure
off transactions or not
(Y/N)
Other Note on account receivable write-off:
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Shenzhen Luwei
Mechatronic Payment for
Equipment Co., equipment
Ltd
Shenzhen Luohu Within 1 year/2-3
Margin or deposit 294,367.46 22.16% 36,523.22
City years
Annual Report 2025
Development
Co., Ltd.
Zhou Liu Fu E-
Margin or deposit 100,000.00 1-2 years 7.53% 11,286.12
commerce Co., Ltd
Chow Tai Seng
Margin or deposit 100,000.00 1-2 years 7.53% 11,286.12
Jewelry Co., Ltd.
Alipay Payment
Technology Co., Margin or deposit 70,000.00 Within 1 year 5.27% 4,335.19
Ltd.
Total 864,367.46 65.08% 363,430.65
Other note：
(1) Accounts paid in advance by ageing
In RMB
Ending balance Opening balance
Account age
Amount Ratio Amount Ratio
Within one year 1,094,841.65 99.92% 912,207.69 97.90%
Total 1,095,681.96 931,762.60
Explanation on un-settlement in time for advance payment with over one year account age and major amounts:
None
(2) Top 5 advance payment at ending balance by prepayment object
Name Ending balance Ratio in total advance e payment(%)
Zhou Liu Fu E-commerce Co., Ltd 901,081.00 82.24
Shenzhen Cuilv Gold Business 188,738.28 17.23
Longgang Zhongxing Printing Co., Ltd. 2,400.00 0.22
Shenzhen Jinzhifu Jewelry Co., Ltd. 925.47 0.08
Shenzhen Mingwangjin Jewelry Co., Ltd. 875.99 0.08
Total 1,094,020.74 99.85
Other note：
Whether companies need to comply with the disclosure requirements of the real estate industry
No
Annual Report 2025
(1)Category
In RMB
Ending balance Opening balance
Provision for Provision for
inventory inventory
depreciation or depreciation or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
Raw materials 94,528,913.32 1,248,584.67 93,280,328.65 31,921,986.22 322,212.17 31,599,774.05
Goods
inventory
Consigned
processing 33,806,558.61 33,806,558.61 18,882,595.14 75,901.24 18,806,693.90
materials
Total 186,468,276.49 1,777,969.15 184,690,307.34 85,272,500.91 922,825.91 84,349,675.00
The Company shall comply with the disclosure requirement of jewelry-related industries in the “Shenzhen
Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 3- Industry Disclosure”
（2）Data resources recognized as inventory
In RMB
Inventory of Inventory of self Inventory of data
Items outsourced data processed data resources obtained by Total
resources resources other means
(3)Provision for inventory depreciation or contract performance cost impairment provision
In RMB
Current increased Current decreased
Opening
Item Switch back or Ending balance
balance Accrual Other Other
charge-off
Raw materials 322,212.17 1,068,252.21 141,879.71 1,248,584.67
Goods
inventory
Consigned
processing 75,901.24 75,901.24
materials
Total 922,825.91 1,098,841.00 243,697.76 1,777,969.15
Provision for inventory price decline that is made on a portfolio basis
In RMB
End of period Beginning of period
Portfolio Name Proportion of Proportion of
Provision for Opening Provision for
Ending balance provision for provision for
price decline balance price decline
price decline price decline
Annual Report 2025
The standard for accruing the provision for inventory price decline by portfolio
(4) The explanation of the ending balance of the inventory contains the capitalized amount of borrowing
costs
(5) Explanation of the amortization amount of contract performance costs for the current period
In RMB
Expected
Ending book Impairment Ending book Expected
Item Fair value disposal
balance provision value disposal time
expenses
Other note:
In RMB
Item Ending balance Opening balance
（1） Debt investment due within one year
□Applicable ?Not applicable
（2）Other Debt investment due within one year
□Applicable ?Not applicable
In RMB
Item Ending balance Opening balance
Input tax to be deducted 270,698.32 880,765.71
To be certified input tax 2,830.19 1,248,868.44
Advance payment of enterprise income
tax
Tax amount to be received 804,887.25
Total 372,060.27 2,934,787.58
Other note：
（1）Debt investment
In RMB
Item Ending balance Opening balance
Annual Report 2025
Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Changes in impairment provisions for debt investments in the current period
In RMB
Increase in the current Decrease in the current
Item Opening balance Ending balance
period period
（2）Important debt investment
In RMB
Debt Ending balance Opening balance
investment Coupon Coupon
Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3）Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2025
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
(4) Information of debt investment actually written off in the current period
In RMB
Item Write-off amount
Information of write-off of important debt investments thereinto
Debt Investment Write-off Explanation:
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other note：
（1）Other debt investment
In RMB
Cumulative
loss
Change of impairment
Cumulative
Opening Accrued fair value Ending recognized
Item Cost changes of Note
balance interest in the balance in other
fair value
period comprehen
sive
income
Changes in provision for impairment of other debt investments in the current period
Annual Report 2025
In RMB
Increase in the current Decrease in the current
Item Opening balance Ending balance
period period
（2）Important debt investment
In RMB
Debt Ending balance Opening balance
investment Coupon Coupon
Face value Actual rate Due date Face value Actual rate Due date
rate rate
（3）Accrual of impairment provision
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2025
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
（4）Other debt investments actually written off during the period
In RMB
Item Write-off amount
Other important debt investment write-offs thereinto
Explanation for write-off of other debt investments:
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Other note：
In RMB
Reason for
Accumulat Accumulat designated
Gains Loss ed gains ed losses in fair
recognized recognized recognized recognized Dividend value
in other in other in other in other income measureme
Ending Opening comprehen comprehen comprehen comprehen recognized nt with
Item name
balance balance sive sive sive sive in the changes
income for income for income at income at current recognized
the current the current the end of the end of period in other
period period the current the current comprehen
period period sive
income
Derecognition incurred in the current period
Annual Report 2025
In RMB
Accumulated gains Accumulated losses
Item name transferred to retained transferred to retained Reason for derecognition
earnings earnings
Itemized disclosure of investments by non-trading equity instruments for the current period
In RMB
Reason for
Amount of designated in Reason for
other fair value other
Recognized comprehensive measurement comprehensive
Item name dividend Accrued gains Accrued losses income with changes income
income transferred to recognized in transferred to
retained other retained
earnings comprehensive earnings
income
Other note：
(1)Long-term account receivable
In RMB
Ending balance Opening balance
Discount rate
Item Bad debt Bad debt
Book balance Book value Book balance Book value interval
provision provision
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Book Balance Bad debt provision Book Book Balance Bad debt provision Book
Category value value
Amount Proporti Amount Proporti Amount Proporti Amount Proporti
on(%) on(%) on(%) on(%)
Inducing
Including
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase II
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
January 1, 2025
balance in the current
period
The basis for the division of each stage and the proportion of bad debt provision
Annual Report 2025
(3) Bad debt provision accrual, collected or reversal in the period
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
The important amount of bad debt provisions reversed or recovered in the current period thereinto:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
(4)Long-term receivables actually written off in the current period
In RMB
Item Write-off amount
Important long-term accounts receivable write-off status thereinto:
In RMB
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Explanation of write-off of long-term receivables:
In RMB
Changes in the period (+, -)
Impair
Other Ending
ment Invest Cash
compr Accrua Ending balanc
Investe Beginn provisi ment divide
Additi ehensi l of balanc e of
d ing on Capital gains Other nd or
onal ve impair e(Boo impair
enterpr balanc begin- reducti recogn equity profit Other
invest incom ment k ment
ise e year on ized change annou
ment e provisi value) provisi
balanc under nced to
adjust on on
e equity issued
ment
I. Joint venture
II. Associated enterprise
Shenz
hen
Xinxu
an 830,48 760,00
Techn 1.86 0.00
.52
ology
Co.,
Ltd.
Annual Report 2025
Subtot 830,48 760,00
al 1.86 0.00
.52
Total 70,156 325.34
.52
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
Other note
In RMB
Item Ending balance Opening balance
Other note：
(1)Investment real estate measured at cost
□Applicable ?Not applicable
(2)Investment real estate measured at fair value
□Applicable ?Not applicable
(3) Converted to investment real estate and measured at fair value
In RMB
Accounting Impact on other
Reason for Approval Impact on
Item accounts before Amount comprehensive
conversion procedures profit and loss
conversion income
（4）Investment real estate without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Annual Report 2025
Other note:
In RMB
Item Ending balance Opening balance
Fixed assets 2,792,361.64 2,931,163.10
Liquidation of fixed assets
Total 2,792,361.64 2,931,163.10
（1） Fixed assets
In RMB
Electronic
Houses and Machinery Means of
Item equipment and Total
buildings equipment transportation
others
I. Original book
value:
increased
(1)Purchase 163,250.35 27,049.04 190,299.39
(2)Construction in
progress transfer-
in
(3)The increase in
business
combination
decreased
(1) Disposal or
scrap
II. Accumulated
depreciation
increased
(1)Accrual 133,192.08 49,437.96 99,490.59 33,518.68 315,639.31
decreased
(1) Disposal or
scrap
III. Impairment
Annual Report 2025
provision
increased
(1)Accrual
decreased
(1) Disposal or
scrap
IV. Book value
value
value
(2)Fixed assets temporary idle
In RMB
Original book Accumulated Impairment
Item Book value Note
value depreciation provision
The lithium battery
equipment stored
Machinery
equipment
Jiaxu factory is in
an idle state
(3)Fixed assets leasing-out by operational lease
In RMB
Item Ending book value
(4)Fixed assets without property rights certificate
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
The six properties of Lianxin Garden 7-
Yuan. The property purchasing refers to
the indemnificatory housing for
enterprise talent buying from Shenzhen
Housing and Construction Bureau of
Six properties in Lianxin Garden 1,694,499.24
Luohu District. According to the
agreement, the enterprise shall not
carrying any kind of property trading
with any units or individuals except the
government, and the company has no
property certification on the above
Annual Report 2025
mentioned properties.
Other note：
(5) Information of impairment test of fixed assets
□Applicable ?Not applicable
（6） liquidation of fixed assets
In RMB
Item Ending balance Opening balance
Other note：
In RMB
Item Ending balance Opening balance
（1）Construction in progress
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
（2）Changes in significant construction in progress
In RMB
includi
Accum
Fixed Propor ng: Interes
Other ulated
Openi Curren assets tion of interes t
decrea Ending amoun
project t capital
ng t transfe Progre t of Sourceof
Item Budget sed in balanc invest capital ization
balanc increas r-in in ss interes funds
the e ment ized rate of
e ed the t
Period in amoun the
capital
Period budget t of the year
ization
year
(3)Provision for impairment of construction in progress in the current period
In RMB
Item Opening balance Increase Decrease Ending balance Reason
Other note：
（4） Information of impairment test of construction in progress
□Applicable ?Not applicable
Annual Report 2025
(5)Engineering materials
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other note:
(1)Productive biological assets measured by cost
□Applicable ?Not applicable
（2） Impairment test of productive biological assets using cost measurement mode
□Applicable ?Not applicable
（3）Productive biological assets measured by fair value
□Applicable?Not applicable
□Applicable?Not applicable
（1）Right-of-use assets
In RMB
Item Houses and buildings Total
I. Original book value
II. Accumulated depreciation
(1)Accrual 1,536,781.09 1,536,781.09
(1) Disposal
Annual Report 2025
III. Impairment provision
(1)Accrual
(1) Disposal
IV. Book value
（2） Information of impairment test of right-of-use assets
□Applicable ?Not applicable
Other note：
(1)Intangible assets
In RMB
Non-patent
Item Land use right Patent Total
technology
I. Original book
value
increased
(1)Purchase
(2) Internal R & D
(3)The increase in
business
combination
decreased
(1) Disposal
II. Accumulated
depreciation
increased
Annual Report 2025
(1)Accrual
decreased
(1) Disposal
III. Impairment
provision
increased
(1)Accrual
decreased
(1) Disposal
IV. Book value
value
value
Ratio of intangible assets resulted from internal R&D in balance of intangible assets at period-end
(2)Data resources recognized as intangible assets
□Applicable ?Not applicable
(3)Land use right without certificate of title completed
In RMB
Reasons for failing to complete the
Item Book value
property rights certificate
Other note：
（4）Information of impairment test of intangible assets
□Applicable ?Not applicable
(1)Original book value of goodwill
In RMB
Current increased Current decreased
The invested Opening Resulted by Ending balance
entity or items balance enterprise Dispose
combination
Annual Report 2025
Total
(2)Goodwill Impairment provision
In RMB
The invested Opening Current increased Current decreased
Ending balance
entity or items balance Accrual Dispose
Total
（3）Information about the asset group or asset group portfolio to which the goodwill belongs
The composition and basis of
Affiliated business segments Whether it is consistent with
Name the asset group or portfolio to
and basis previous years
which it belongs
Changes in the asset group or portfolio of asset groups
Composition before the Objective facts and basis for
Name Composition after the change
change change
Other note
(4) The specific method of determining the recoverable amount
The recoverable amount is determined on the basis of the net amount by fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
(5) Status of completion of performance commitment and corresponding goodwill impairment
When goodwill is formed, there is a performance commitment and the reporting period or the previous period in
the reporting period is within the performance commitment period
□Applicable ?Not applicable
Other note：
In RMB
Amortized in the
Item Opening balance Current increased Other decrease Ending balance
Period
Other note：
Annual Report 2025
(1)Deferred income tax assets without offset
In RMB
Ending balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference asset difference asset
Asset impairment
provision
Lease Liabilities 3,094,978.81 773,744.70 4,602,702.62 1,150,675.65
Total 25,012,358.57 6,253,089.65 24,522,068.94 6,130,517.24
(2)Deferred income tax liabilities without offset
In RMB
Ending balance Opening balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Right to use assets 2,299,304.81 574,826.20 3,836,085.90 959,021.47
Total 2,299,304.81 574,826.20 3,836,085.90 959,021.47
(3)Deferred income tax assets and deferred income tax liabilities listed after off-set
In RMB
Ending balance of Trade-off between the Opening balance of
Trade-off between the
deferred income tax deferred income tax deferred income tax
Item deferred income tax
assets or liabilities after assets and liabilities at assets or liabilities after
assets and liabilities
off-set period-begin off-set
Deferred income tax
asset
Deferred income tax
liabilities
(4)Detailsof deferred income tax assets without recognized
In RMB
Item Ending balance Opening balance
Deductable temporary difference 9,446,500.56 8,392,712.20
Deductable loss 4,453,133.02 2,871,162.92
Total 13,899,633.58 11,263,875.12
(5)Deductible losses of un-recognized deferred income tax assets expired on the followed year
In RMB
Year Ending amount Opening amount Note
Annual Report 2025
No Expiration date
（Hongkong Enterprise）
Total 4,453,133.02 2,871,162.92
Other note：
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Other note：
In RMB
End of period Beginning of period
Item Restricted Restricted
Book Restricted Book Restricted
Book value circumstan Book value circumstan
balance type balance type
ce ce
Litigation
Monetary
funds funds
For the For the
talent talent
housing housing
purchased purchased
at a low at a low
price, price,
Shenzhen Shenzhen
China China
Fixed 2,959,824.0 1,694,499.2 cannot 2,959,824.0 1,827,691.3 cannot
Other Other
assets 0 4 apply for a 0 2 apply for a
certificate, certificate,
and the and the
disposal disposal
can only be can only be
repurchase repurchase
d by the d by the
governmen governmen
t t
Total
Other note：
(1)Category
In RMB
Item Ending balance Opening balance
Credit loans 23,450,000.00 9,900,000.00
Total 23,450,000.00 9,900,000.00
Annual Report 2025
Explanation on short-term loans category:
Note 1：Shenzhen China Bicycle Company (Holdings) Limited entered into a working capital loan agreement
with the Bank of Communications Shenzhen Branch on November 17,2025, with a loan term from November
purpose is to repay the loan from Bank of Communications.
Note 2：Shenzhen China Bicycle Company (Holdings) Limited entered into a working capital loan agreement
with the China CITIC Bank of Shenzhen Branch on June 27,2025, with a loan term from June 27, 2025 to June
purpose is to be used for paying the invoice.
Note 1：Shenzhen Xinsen Jewels Gold Co., Ltd. entered into a working capital loan agreement with the Bank
of Communications Shenzhen Branch on May 21, 2025, with a loan term from May 27, 2025 to May 20, 2026,
and an loan balance of RMB 4,650,000.00 as of December 31, 2025. This loan is a credit loan, which is used for
daily business turnover.
(2)Overdue outstanding short-term loans
Total 0.00 Yuan overdue outstanding short-term loans at period-end, including the followed significant amount:
In RMB/
Borrower Ending balance Lending rate Overdue time Overdue rate
Other note:
In RMB
Item Ending balance Opening balance
Including:
Including:
Other note:
In RMB
Item Ending balance Opening balance
Other note:
In RMB
Category Ending balance Opening balance
Notes expired at period-end without paid was 0.00 Yuan.
Annual Report 2025
(1)Account payable
In RMB
Item Ending balance Opening balance
Within one year(one year included) 1,446,101.39 4,990,535.61
Over 3 years 451,838.93 445,005.51
Total 3,367,256.93 7,636,699.51
(2)Important account payable with account age over one year
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Other note:
（3）Whether there exists any overdue and unpaid amounts owed to samal and medium-sized
enterprises
Whether I is a large enterprise
□Yes?No
In RMB
Item Ending balance Opening balance
Other account payable 43,263,973.18 33,704,488.43
Total 43,263,973.18 33,704,488.43
(1) Interest payable
In RMB
Item Ending balance Opening balance
Important overdue interest
In RMB
Unit Overdue amount Overdue reason
Other note:
(2) Dividend Payable
In RMB
Item Ending balance Opening balance
Annual Report 2025
Other explanation:including dividends payable with over one year age and disclosure un-payment reasons
（3）Other account payable
In RMB
Item Ending balance Opening balance
Custodian and common benefit debts 29,193,228.46 22,468,139.52
Warranty and guarantee money 1,468,660.00 1,499,940.00
Intercourse funds 11,090,285.30 8,590,285.30
Payment 1,404,616.54 1,021,330.17
Collection and payment 81,610.29 91,745.33
Other 25,572.59 33,048.11
Total 43,263,973.18 33,704,488.43
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Custodian and common benefit debts 20,212,786.44 Annual settlement offset
Shenzhen Guocheng Energy Investment
Development Co., Ltd.
Total 26,712,786.44
Other note:
In RMB
Item Ending balance Opening balance
Receipt of goods in advance 67,520.83 4,868,279.05
Total 67,520.83 4,868,279.05
Contractual liability in advance with over one year book age
In RMB
Reasons for non-reimbursement or carry-
Item Ending balance
forward
Book value has major changes in the period and causes
In RMB
Item Amount changes Reason for change
(1)Wage payable
In RMB
Item Opening balance Current increased Current decreased Ending balance
Annual Report 2025
I. Short-term
compensation
II. Post-employment
benefit-Defined 932,998.19 932,998.19
contribution plan
III. Dismiss welfare 35,500.00 35,500.00
Total 807,688.20 12,076,516.61 11,456,016.34 1,428,188.47
(2)Short-term compensation
In RMB
Item Opening balance Current increased Current decreased Ending balance
allowances and subsidy
Including: Medical
insurance
Work injury insurance 30,306.19 30,306.19
Maternity insurance 35,747.75 35,747.75
accumulation fund
expenditure and
personnel education
expense
Total 807,688.20 11,108,018.42 10,487,518.15 1,428,188.47
(3)Defined contribution plan
In RMB
Item Opening balance Current increased Current decreased Ending balance
insurance
insurance
Total 932,998.19 932,998.19
Other note:
In RMB
Item Ending balance Opening balance
VAT 3,185,110.99 378,825.58
Consumption tax 3,668.14 3,668.14
Enterprise income tax 5,825,705.49 3,699,904.41
Individual income tax 40,105.99 42,632.55
City maintenance & construction tax 196,433.82 26,310.43
Stamp tax 52,339.47 104,419.30
Annual Report 2025
Real estate tax 181,830.16
Land use tax 10,895.45
Educational surtax 140,272.46 18,755.75
Vehicle purchase tax 23,150.44
Total 9,443,636.36 4,490,392.21
Other note：
In RMB
Item Ending balance Opening balance
Other note:
In RMB
Item Ending balance Opening balance
Lease liabilities due within one year 1,432,886.46 1,389,819.85
Total 1,432,886.46 1,389,819.85
Other note:
In RMB
Item Ending balance Opening balance
VAT received in advance 8,777.82 302,687.60
Total 8,777.82 302,687.60
Changes of short-term bond payable:
In RMB
Accru
Openi Premi Endin Whet
Issuin al
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total
Other note:
(1)Category
In RMB
Item Ending balance Opening balance
Explanation on category of long-term loans:
Annual Report 2025
Other note: including interest rate section
(1)Bonds payable
In RMB
Item Ending balance Opening balance
(2)Changes of bonds payable (not including the other financial instrument of preferred stock and
perpetual capital securities that classify as financial liability)
In RMB
Accru
Openi Premi Endin Whet
Issuin al
Relea Issued um/di Paid
Face Intere Bond g ng intere g her
Bond se in the scount in the
value st rate period amou balanc st by balanc defaul
date Period amorti Period
nt e face e t
zation
value
Total —— ——
(3)Convertible conditions and time for shares transfer for the convertible bonds
(4)Other financial instruments classify as financial liability
Outstandingother financial instruments as preferred stock and perpetual bonds at period-end
Changes of the outstanding financial instruments as preferred stock and perpetual bonds at period-end
In RMB
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Basis for financial liability classification for other financial instrument
Other note:
In RMB
Item Ending balance Opening balance
Lease payment amount 3,218,151.98 4,873,543.86
Including：Within 1 year 1,520,877.84 1,532,795.61
Over 3 years 135,836.98
Unrecognized financing charges -123,173.17 -270,841.24
Including：Within 1 year -87,991.38 -142,975.15
Annual Report 2025
Over 3 years -406.90
Reclassified to lease liabilities due within
-1,432,886.46 -1,389,819.85
one year
Total 1,662,092.35 3,212,882.77
Other note:
In RMB
Item Ending balance Opening balance
(1) Nature of long-term account payable
In RMB
Item Ending balance Opening balance
Other note:
(2) Special payable
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
(1) Long-term wages payable
In RMB
Item Ending balance Opening balance
(2) Changes of defined benefit plans
Present value of the defined benefit plans:
In RMB
Item Current period incurred Prior period incurred
Scheme assets:
In RMB
Item Current period incurred Prior period incurred
Net liability (assets) of the defined benefit plans
In RMB
Item Current period incurred Prior period incurred
Content of defined benefit plans and relevant risks, impact on future cash flow of the Company as well as times
and uncertainty:
Major actuarial assumption and sensitivity analysis:
Other note:
Annual Report 2025
In RMB
Item Ending balance Opening balance Causes
Other explanation, including relevant important assumptions and estimation:
In RMB
Item Opening balance Current increased Current decreased Ending balance Causes
Other note:
In RMB
Item Ending balance Opening balance
Other note:
In RMB
Changes in the period (+, -)
Opening Shares Ending
balance New shares transferred balance
Bonus share Other Subtotal
issued from capital
reserve
Total shares
Other note:
(1)Outstandingother financial instruments as preferred stock and perpetual bonds at period-end
(2)Changes of the outstandingother financial instruments as preferred stock and perpetual bonds at
period-end
In RMB
Outstandin Period-begin Current increased Current decreased Period-end
g financial
instrument Amount Book value Amount Book value Amount Book value Amount Book value
Changes of other equity instrument, change reasons and relevant accounting treatment basis:
Other note:
In RMB
Item Opening balance Current increased Current decreased Ending balance
Capital premium(Share 169,874,906.92 169,874,906.92
Annual Report 2025
capital premium)
Other capital public
reserve
income
Total 797,709,204.77 797,709,204.77
Other note:including changes and reasons for changes
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other note: including changes and reasons for changes
In RMB
Current period incurred
Less: Less:
written in written in
other other
comprehen comprehen
sive sive
Opening Account income in income in Belong to Belong to Ending
Item Less:
balance before previous previous parent minority balance
Income tax
income tax period and period and company after shareholders
expense
in the period carried carried tax after tax
forward to forward to
gains and retained
losses in earnings in
current current
period period
II.Reclassif
y other
comprehen
- - -
sive
income into
profit or
loss
Total of
other
- - -
comprehen
sive
income
Other note: including the active part of the hedging gains/losses of cash flow transfer to initial recognition
adjustment for the arbitraged items
In RMB
Item Opening balance Current increased Current decreased Ending balance
Other note: Including changes and reasons for changes
Annual Report 2025
In RMB
Item Opening balance Current increased Current decreased Ending balance
Statutory surplus
reserves
Total 32,673,227.01 32,673,227.01
Explanation: including changes and reasons for changes
In RMB
Item Current period Prior period
Retained profit at period-end before
-1,175,806,118.62 -1,192,651,364.21
adjustment
Retained profit at period-begin after
-1,175,806,118.62 -1,192,651,364.21
adjustment
Add: net profit attributable to
shareholders of parent company for this 41,129,172.17 16,845,245.59
year
Retained profit at period-end -1,134,676,946.45 -1,175,806,118.62
Adjustment for retained profit at period-begin:
retained profit at period-begin has 0.00 Yuan affected;
Detailed explanation of using capital reserves to cover losses:
In RMB
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 734,767,795.67 657,941,428.84 578,871,117.17 545,312,932.27
Other business 1,109,473.08 41,271.84 998,198.71 120,047.57
Total 735,877,268.75 657,982,700.68 579,869,315.88 545,432,979.84
Whether the audited net profit before and after deducting non-recurring gains and losses is negative
□Yes ?No
Breakdown of operating income and operating costs:
In RMB
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business
type
Including:
Annual Report 2025
Jewelry 735,160,57 657,858,13 735,160,57 657,858,13
and gold 9.53 6.22 9.53 6.22
Bicycles,
electric
vehicles
and others
Classificati
on by
business
area
Including:
Domestic
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
Among
them: at a
certain 735,877,26 657,982,70 735,877,26 657,982,70
point of 8.75 0.68 8.75 0.68
time to
transfer
Classificati
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
Total
Information related to performance obligations:
The nature of The expected The types of
The time to Whether it is
the goods that refunds to quality
fulfill the Important the main
Item the company customers assurance
performance payment terms responsible
promises to borne by the provided by the
obligation person
transfer company company and
Annual Report 2025
related
obligations
Other note:
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of revenue corresponding to performance obligation that have been signed but have not been
fulfilled or have not been fulfilled at the end of the period was 0.00 Yuan, including 0.00 Yuan is expected to be
recognized as revenue in subsequent years, 0.00 Yuan is expected to be recognized as revenue in subsequent
years, 0.00 Yuan is expected to be recognized as revenue in subsequent years. Other explanation:
Significant contract changes or significant transaction price adjustments
In RMB
Item Accounting treatment method The impacted amount on revenue
Other note:
In RMB
Item Current period incurred Prior period incurred
Consumption tax 3,668.14
City maintenance & construction tax 253,722.38 73,973.45
Educational surcharge 181,977.83 59,888.01
Vehicle and vessel usage tax 660.00 1,860.00
Stamp tax 412,718.26 323,354.40
Total 849,078.47 462,744.00
Other note:
In RMB
Item Current period incurred Prior period incurred
Employee compensation 3,279,442.48 2,511,609.02
Intermediary service fee 895,045.96 943,765.35
Daily administrative expenses 4,139,748.07 2,580,054.89
Depreciation and amortization 840,943.82 701,283.96
Total 9,155,180.33 6,736,713.22
Other note:
In RMB
Item Current period incurred Prior period incurred
Employee compensation 4,408,879.10 2,944,792.05
Service charge 75,864.51 7,250.38
Marketing promotion fees 1,012,336.05 361,240.38
Annual Report 2025
Business entertainment 385,096.02 100,458.48
Travel expenses 25,688.43 183,755.42
Lease fee 406,897.60 363,139.02
Design fee 554,399.71 615.00
Depreciation and amortization 466,550.99 432,266.96
Online marketing fee 150,423.72 64,042.30
Other 295,829.37 112,744.45
Total 7,781,965.50 4,570,304.44
Other note:
In RMB
Item Current period incurred Prior period incurred
Employee compensation and benefits 613,626.89 625,811.11
Depreciation and amortization 6,393.00 18,389.58
Total 620,019.89 644,200.69
Other note:
In RMB
Item Current period incurred Prior period incurred
Interest expenses 722,837.20 359,642.09
Interest income -11,368.01 -49,490.86
Exchange gain or loss 10.66
Commission charge etc. 26,378.37 25,644.40
Total 737,858.22 335,795.63
Other note:
In RMB
Sources Current period incurred Prior period incurred
Government subsidy 1,000.00 5,771.92
In RMB
Item Current period incurred Prior period incurred
Other note:
In RMB
Sources Current period incurred Prior period incurred
Other note:
Annual Report 2025
In RMB
Item Current period incurred Prior period incurred
Long-term equity investment income by
-70,156.52 -169,518.14
equity method
Disposition of the investment income
generated by the long-term equity 1.19
investment
Gains from silver extended trading -180,799.89
Total -250,956.41 -169,516.95
Other note:
In RMB
Item Current period incurred Prior period incurred
Bad debt loss of other account receivable -1,784,766.07 -1,061,011.47
Bad debt losses of other accounts
receivable
Total -1,729,744.47 -1,196,122.15
Other note:
In RMB
Item Current period incurred Prior period incurred
I. Loss of inventory falling price and loss
-1,098,841.00 -375,230.63
of contract performance cost impairment
Total -1,098,841.00 -375,230.63
Other note:
In RMB
Sources Current period incurred Prior period incurred
In RMB
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Customer liquidated damages 194,608.12 1,567,940.83 194,608.12
Income from escrow assets 4,854,083.46 5,476,231.34 4,854,083.46
Escrow assets renaming fee
and other
Other 85,143.93 38,308.46 85,143.93
Total 5,359,322.51 7,625,835.03 5,359,322.51
Annual Report 2025
Other note:
Note: The profit or loss of escrow assets refers to the fact that the property rights of some assets used to pay
off debts at the termination of the bankruptcy reorganization of Shenzhen China in the previous period were not
clear and could not be disposed of, and the Shenzhen Intermediate People's Court approved Shenzhen China to
manage its own property and business affairs under the supervision of the administrator, and the administrator
and Shenzhen China settled the income and expenditure on an annual basis. The tax on the daily expenses of the
entrusted assets is included in the non-operating expenses-entrusted asset expenses, and the difference between
the rental of the assets and the settlement with the manager is included in the non-operating income - income
from entrusted assets.
In RMB
Amount reckoned in current
Item Current period incurred Prior period incurred
non-recurring gains/losses
Total scrap loss of non-
current assets
Including：Loss of fixed
assets
Penalty cost 11,768.11 57,019.96 11,768.11
Escrow assets fess 4,854,083.46 5,476,231.34 4,854,083.46
Other 1,508.58 15,984.66 1,508.58
Total 4,880,821.69 5,549,235.96 4,880,821.69
Other note
(1)Income tax expense
In RMB
Item Current period incurred Prior period incurred
Current income tax expense 15,261,211.41 6,452,159.34
Deferred income tax expense -506,767.68 -262,331.55
Total 14,754,443.73 6,189,827.79
(2)Adjustment on accounting profit and income tax expenses
In RMB
Item Current period incurred
Total profit 56,150,424.60
Income tax measured by statutory/applicable tax rate 14,037,606.15
The impact of applying different tax rates to subsidiaries 552,842.92
The impact of non-taxable income 3,506.41
Impact on cost, expenses and losses that unable to deducted 153,770.75
The impact of deductible losses on the use of deferred income -32,007.10
Annual Report 2025
tax assets not recognized in prior period
The impact of deductible temporary differences or deductible
losses on deferred income tax assets not recognized in the 193,729.57
Period
Additional deductible expenses under the tax code -155,004.97
Income tax expense 14,754,443.73
Other note:
Refer to the Note
Other note:
（1）Cash related to operating activities
Other cash received from business operation
In RMB
Item Current period incurred Prior period incurred
Interest, rent, utilities, etc. 2,212,173.13 2,204,229.60
Deposits and guarantees received 3,125,290.00 84,000.00
Government subsidy and individual tax
handling fee refund
Receive the current payment 1,917,986.23 4,216,847.25
Litigation freezes funds 174,866.02
Received the compensation for the
unfinished judgment of the 10,053,255.72
reorganization case
Other 310,630.95 543,368.18
Total 17,795,202.05 7,054,216.95
Explanation on other cash received in relation to operation activities:
Other cash paid in relation to operation activities
In RMB
Item Current period incurred Prior period incurred
Expenses such as rent and property
management maintenance fees
Deposits and security deposits paid 3,724,908.56 350,774.00
Sales, management and R&D expenses 7,303,578.84 4,808,312.49
Litigation compensation, liquidated
damages and late fees, etc.
Handling expenses 26,368.36 24,205.98
Payment of current payment 3,297,129.75 2,556,954.69
Payment of frozen funds 174,866.02
Other 1,608.59 14.63
Total 15,717,409.30 9,830,879.12
Explanation on other cash paid in relation to operation activities:
（2）Cash related to Investment activities
Annual Report 2025
Cash receivable related to other Investment activities
In RMB
Item Current period incurred Prior period incurred
Recovering the housing fund for talent 400,000.00
Total 400,000.00
Receivable for important cash related to investment activities
In RMB
Item Current period incurred Prior period incurred
Explanation on other cash received from investment activities:
Cash paid related with investment activities
In RMB
Item Current period incurred Prior period incurred
Payable for important cash related to investment activities
In RMB
Item Current period incurred Prior period incurred
Explanation on cash paid related with investment activities
(3)Cash related to Financing activities
Other cash received in relation to financing activities
In RMB
Item Current period incurred Prior period incurred
Received Wansheng industrial
performance compensation
Total 18,154,754.41 12,098,051.76
Explanation on other cash received in relation to financing activities:
Other cash paid related with financing activities
In RMB
Item Current period incurred Prior period incurred
Lease payment amount 1,338,802.26 1,418,182.06
Acquisition of minority shareholders of
its subsidiary
Total 16,363,802.26 1,418,182.06
Explanation on other cash paid related with financing activities:
Changes in various liabilities arising from fund-raising activities
?Applicable □Not applicable
In RMB
Current increased Current decreased
Opening
Item Non Cash Non Cash Ending balance
balance Cash change Cash change
change change
Shore-term 9,900,000.00 15,000,000.00 1,450,000.00 23,450,000.00
Annual Report 2025
loan
Lease liabilities
(including
those due 4,602,702.62 1,280,811.72 226,912.09 3,094,978.81
within one
year)
Total 14,502,702.62 15,000,000.00 2,730,811.72 226,912.09 26,544,978.81
(4) Statement of cash flows on a net basis
Relevant factual The basis for the use of net
Item Financial impact
circumstances presentation
(5) Major activities and financial impacts that do not involve cash receipts and expenditures in the
current period, but affect the financial position of the enterprise or may affect the cash flow of the
enterprise in the future
(1) Supplementary information to statement of cash flow
In RMB
Supplementary information Current amount Amount of the previous period
operation activities:
Net profit 41,395,980.87 15,838,251.53
Add: Assets impairment provision 2,828,585.47 1,571,352.78
Depreciation of fixed assets,
consumption of oil assets and 315,639.31 203,900.19
depreciation of productive biology assets
Depreciation of right-of-use assets 1,536,781.09 1,636,718.12
Amortization of intangible assets
Amortization of long-term deferred
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term
assets (gain is listed with “-”)
Losses on scrapping of fixed assets (gain
is listed with “-”)
Gain/loss of fair value changes (gain is
listed with “-”)
Financial expenses (gain is listed with “-
”)
Investment loss (gain is listed with “-”) 250,956.41 169,516.95
Decrease of deferred income tax asset
-506,767.68 -262,331.55
(increase is listed with “-”)
Increase of deferred income tax liability
(decrease is listed with “-”)
Decrease of inventory (increase is listed
-101,726,657.19 -2,808,866.49
with “-”)
Decrease of operating receivable
accounts (increase is listed with “-”)
Increase of operating payable accounts
(decrease is listed with “-”)
Other
Net cash flow arising from operating -19,515,276.55 -17,152,733.19
Annual Report 2025
activities
involved in cash flow
Conversion of debt into capital
Switching Company bonds due within
one year
Financing lease of fixed assets
equivalents:
Balance of cash at period end 75,474,633.65 80,799,494.57
Less: Balance of cash equivalent at year-
begin
Add: Balance at year-end of cash
equivalents
Less: Balance at year-begin of cash
equivalents
Net increased amount of cash and cash
-5,324,860.92 26,650,820.17
equivalent
(2) Net cash paid for obtaining subsidiary in the Period
In RMB
Amount
Including:
Including:
Including:
Other note:
（3）Net cash received by disposing subsidiary in the Period
In RMB
Amount
Including:
Including:
Including:
Other note:
(4)Constitution of cash and cash equivalent
In RMB
Item Ending balance Opening balance
I. Cash 75,474,633.65 80,799,494.57
Including: Cash on hand 52,322.40 48,364.40
Bank deposit available for payment at
any time
Other monetary funds that may be paid
for at any time
III. Balance of cash and cash equivalents
at the period -end
(5) Situations where the scope of use is limited but still classified as cash and cash equivalents
In RMB
Annual Report 2025
Reason for still being
Amount of the previous
Item Amount of the current period classified as cash and cash
period
equivalents
( 6) Monetary funds that do not belong to cash and cash equivalents
In RMB
Amount of the previous Reason for not belonging to
Item Amount of the current period
period cash and cash equivalents
Other monetary funds 174,866.02 Litigation frozen funds
Total 174,866.02
Other note:
(7) Description of other major activities
Explain the name and adjusted amount in “Other” at end of last period:
(1) Foreign currency monetary items
In RMB
Ending foreign currency Ending RMB balance
Item Convert rate
balance converted
Monetary fund 35,075.75
Including: USD 4,990.29 7.0288 35,075.75
EURO
HKD
Account receivable
Including: USD
EURO
HKD
Long-term loans
Including: USD
EURO
HKD
Other note:
(2) Explanation on foreign operational entity, including as for the major foreign operational entity,
disclosed main operation place, book-keeping currency and basis for selection; if the book-keeping
currency changed, explain reasons
□Applicable ?Not applicable
(1) The Company acts as the lessee
Annual Report 2025
?Applicable □Not applicable
Variable lease payments that are not included in the measurement of lease liabilities
□Applicable ?Not applicable
Simplified processing of lease costs for short-term leases or lease for low-value assets
?Applicable □Not applicable
Lease costs for short-term leases or low-value assets with simplified processing: RMB327,584.11.
Cases involving sale-leaseback transactions
(2) The Company acts as the lessor
Operating lease as a lessor
?Applicable □Not applicable
In RMB
Thereinto: income related to variable
Item Rental income lease payments that are not included in
lease receipts
lease of houses 48,068.52
Total 48,068.52
Financial lease as a lessor
□Applicable ?Not applicable
Annual undiscounted lease receipts for the next five years
□Applicable ?Not applicable
Adjustment table for undiscounted lease receipts and net lease investments
None
(3) Recognition of financial lease sales gains and losses as a producer or distributor
□Applicable ?Not applicable
VIII. R&D expenditure
In RMB
Item Amount incurred in the current period Amount incurred in the previous period
Employee remuneration and benefits 613,626.89 625,811.11
Depreciation and amortization 6,393.00 18,389.58
Total 620,019.89 644,200.69
Thereinto: expensed R&D expenditure 620,019.89 644,200.69
In RMB
Amount increased in the current period Amount decreased in the current period
Opening Internal Recognized Transferred Ending
Project
balance developme Others as to profit or balance
nt intangible loss for the
Annual Report 2025
expenditure assets current
s period
Total
Significant capitalized R&D projects
Expected way of The point at which The specific basis
Estimated
Project R&D progress generating capitalization for starting
completion time
economic benefits begins capitalization
Provision for impairment of development expenditure
In RMB
Increase in the Decrease in the Impairment test
Item Opening balance Ending balance
current period current period situation
Expected way of generating economic Criteria and specific basis for
Name of project
benefits determining capitalization or expensing
Other note:
IX. Changes of consolidation scope
(1) Enterprise combined under different control in the Period
In RMB
Income of Net profit
Standard to
Acquired acquiree of acquiree
Time point Cost of Ratio of determine
way Equity Purchasing from from
Acquiree for equity equity equity the
obtained date purchasing purchasing
obtained obtained obtained purchasing
way date to date to
date
period-end period-end
Other note:
(2)Combination cost and goodwill
In RMB
Consolidation cost
--Cash
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
-- Fair value of contingent consideration
--Fair value of the equity prior to the purchasing date
--Other
Total combination cost
Less: shares of fair value of identifiable net assets acquired
The amount by which the goodwill/cost of consolidation is less
than the share of fair value of identifiable net assets acquired
Determination method for fair value of the combination cost：
Contingent consideration and changes:
Annual Report 2025
Main reasons for large goodwill resulted:
Other note:
(3) Identifiable assets and liability on purchasing date under the acquiree
In RMB
Fair value on purchasing date Book value on purchasing date
Assets:
Monetary fund
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Deferred income tax liabilities
Net assets
Less: Minority interests
Net assets acquired
Determination method for fair value of the identifiable assets and liabilities:
Contingent liability of the acquiree bear during combination:
Other note:
(4) Gains or losses arising from re-measured by fair value for the equity held before purchasing date
Whether it is a business combination realized by two or more transactions of exchange and a transaction of
obtained control rights in the Period or not
□Yes?No
(5) On purchasing date or period-end of the combination, combination consideration or fair value of
identifiable assets and liability for the acquiree are un-able to confirm rationally
(6) Other Note:
(1) Enterprise combined under the same control in the Period
In RMB
Income of Net profit
Income of Net profit
the of the
Equity ratio Basis of Standard to the of the
combined combined
combined determine combined combined
Combined obtained in Combinatio party from party from
under the the party party
party combinatio n date period- period-
same combinatio during the during the
n begin of begin of
control n date comparison comparison
combinatio combinatio
period period
n to the n to the
Annual Report 2025
combinatio combinatio
n date n date
Other note:
(2) Combination cost
In RMB
Consolidation cost
--Cash
-- Book value of non-cash assets
- Book value of debts issued or assumed
-- The face value of the equity securities issued
--Contingent consideration
Explanation on contingent consideration and its changes:
Other note:
(3) Book value of the assets and liability of the combined party on combination date
In RMB
Consolidation date End of last period
Assets:
Monetary fund
Account receivable
Inventory
Fixed assets
Intangible assets
Liability:
Loan
Account payable
Net assets
Less: Minority interests
Net assets acquired
Contingent liability of the combined party bear during combination:
Other note:
Basic transaction information, basis of counter purchase, whether making up business due to the assets and
liability reserved by listed company and basis, determination of combination cost, amount and calculation on
adjusted equity by equity transaction:
Whether lost controlling rights while dispose subsidiary on one time or not
□Yes ?No
Whether lost controlling rights in the Period while dispose subsidiary on two or more steps or not
Annual Report 2025
□Yes?No
Reasons for changed on consolidation range (such as new subsidiary established, subsidiary liquidated etc.)And
relevant information:
X. Equity in other entity
(1) Constitute of enterprise group
In RMB
Main Share-holding ratio
Registered Registered Business Acquired
Subsidiary operation
capital place nature Directly Indirectly way
place
Shenzhen Sales of
Xinsen 200,000,000. Jewelry,
Shenzhen Shenzhen 100.00% Investment
Jewelry Gold 00 diamonds
Co., Ltd and gold
Shenzhen
Jewelry,
Xinsen
diamonds,
Precision 5,000,000.00 Shenzhen Shenzhen 100.00% Investment
gold
Manufacturin
processing
g Co., Ltd.
Dongguan Jewelry,
Xinsen diamonds,
Jewelry Co., gold
Ltd processing
Shenzhen
Jewelry,
Jiucheng
Culture Shenzhen Shenzhen 100.00% Investment
Technology
processing
Co., Ltd
Shenzhen
Jinjiucheng
Intangible Sales of
Cultural Shenzhen Shenzhen 100.00% Investment
Heritage and gold
Inheritance
Co., Ltd.
Shenzhen Distribution
Emmelle of bicycles
Industrial and spare
Co., Ltd. parts
Shenzhen
Emmelle Software and
information
Cloud 2,000,000.00 Shenzhen Shenzhen 49.00% Investment
technology
Technology service sales
Co., Ltd.
Fujian Sales of
Huaxinbao Putian Putian 100.00% Investment
Jewelry Co., and gold
Annual Report 2025
Ltd.
PutianKaipu
Technology Outbound
Partnership( investment
LP)
Shenzhen
Huabao Sales of
Jewelry,
ZhenxuanJe 5,000,000.00 Shenzhen Shenzhen 100.00% Investment
diamondsand
welry Co., gold
Ltd.
Hainan
Import and
Shenhua
Industrial
industry
Co., Ltd.
Shenzhen
Sales of
Yunyouxuan
Jewelry Shenzhen Shenzhen 35.00% 0.20% Investment
Technology
and gold
Co., Ltd.
Hangzhou
Huabaohui Sales of
Jewelry,
Digital 5,000,000.00 Hangzhou Hangzhou 100.00% Investment
diamonds
Culture Co and gold
Ltd
Tibet Jinyaya Sales of
Jewelry Jewelry,
Trading Co., diamonds
Ltd. and gold
Zhenhua Sales of
International 100.00% Investment
Co., Ltd. and gold
Explanation on share-holding ratio in subsidiary different from ratio of voting right:
Note：
Fujian Huaxinbao Jewelry Co., Ltd. and three limited partners. The partnership agreement designates the
general partner as the executive partner, while establishing an Investment Decision Committee comprising four
members (three appointed by the general partner and one jointly appointed by limited partners) as the
investment decision-making body.
Bicycle and 20% by Putian Kaipu Technology Partnership (Limited Partnership), totally 55% ownership by the
above two.
Basis for controlling the invested entity with half or below voting rights held and without controlling invested
entity but with over half and over voting rights:
Controlling basis for the structuring entity included in consolidated range:
Basis on determining to be an agent or consignor:
Other note
(2) Important non-wholly-owned subsidiary
In RMB
Subsidiary Share-holding ratio of Gains/losses Dividend announced to Ending equity of
Annual Report 2025
minority attributable to minority distribute for minority minority
in the Period in the Period
Explanation on share-holding ratio of minority different from ratio of voting right:
Other note:
(3) Main finance of the important non-wholly-owned subsidiary
In RMB
Ending balance Opening balance
Subsid Curren Non- Curren Non-
Non- Total Non- Total
iary Curren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
In RMB
Current period incurred Prior period incurred
Total Cash flow Total Cash flow
Subsidiary Operation comprehen from Operation comprehen from
Net profit Net profit
revenue sive operation revenue sive operation
income activity income activity
Other note：
(4) Major restriction on using corporate assets and liquidate corporate debts
(5) Financial or other supporting provided to structuring entity that included in consolidated financial
statement
Other note：
(1) Owners equity shares changed in subsidiary
(1) The subsidiary Shenzhen Jiucheng Cultural Technology Co., Ltd. implemented a capital reduction in June
to RMB 20.4 million. After this capital reduction, the shareholding ratio of the controlling shareholder
Shenzhen Xinsen Jewelry & Gold Co., Ltd. increased from the original 51% to 100%.
(2) The subsidiary Shenzhen Jin Jiucheng Intangible Cultural Heritage Inheritance Co., Ltd. implemented a
capital reduction in June 2025 following a shareholders' meeting resolution, with registered capital reduced
from RMB 50 million to RMB 20 million. After this capital reduction, the shareholding ratio of the controlling
shareholder Shenzhen Jiucheng Cultural Technology Co., Ltd. increased from the original 75% to 100%.
(2) Impact on minority’s interest and owners’ equity attributable to parent company
In RMB
Shenzhen Jiucheng Cultural Technology Shenzhen Jinjiucheng Intangible Cultural
Co., Ltd Heritage Inheritance Co., Ltd.
Purchase cost/disposal consideration
--Cash 11,025,000.00 4,000,000.00
--Fair value of non-cash assets
Purchase cost/total disposal
consideration
Less: Subsidiary's share of net assets
calculated based on the proportion of
Annual Report 2025
acquired/disposed equity
Difference
Including: Adjust capital public reserve
Adjust surplus public reserve
Adjusted retained profit
Other note:
(1) Important joint venture or associated enterprise
Joint venture or Share-holding ratio
Main operation Registered Accounting
associated Business nature
place place Directly Indirectly treatment
enterprise
Share-holding ratio or shares enjoyed different from voting right ratio:
Basis of the voting rights with 20% below but with major influence, or without major influence but with over 20%
(20% included) voting rights hold:
Other note
(2) Main financial information of the important joint venture
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Current assets
Including: cash and cash equivalent
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Shareholders' equity attributable to the
parent company
Share of net assets calculated by
shareholding ratio
Adjustment items
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in joint
venture
Fair value of the equity investment of
joint ventures with public offers
concerned
Operation revenue
Financial expenses
Income tax expense
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Annual Report 2025
Dividends received from joint venture in
the year
Other note:
(3) Main financial information of the important associated enterprise
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Minority interests
Equity attributable to shareholder of
parent company
Share of net assets measured by
shareholding
Adjustment
--Goodwill
--Unrealized profit of internal trading
--Other
Book value of equity investment in
associated enterprise
Fair value of the equity investment of
associated enterprise with public offers
concerned
Operation revenue
Net profit
Net profit of discontinuing operation
Other comprehensive income
Total comprehensive income
Dividends received from associated
enterprise in the year
Other note:
(4) Financial summary for un-important joint venture or associated enterprise
In RMB
Ending balance/Current period incurred Opening balance/Prior period incurred
Joint venture：
Total numbers measured by share-
holding ratio
Associated enterprise：
Total book value of the investment 325.34 830,481.86
Total numbers measured by share-
Annual Report 2025
holding ratio
--Not profit -70,156.52 -169,518.14
-- Total comprehensive income -70,156.52 -169,518.14
Other note:
(5) Assets transfer ability has major restriction from joint venture or associated enterprise
(6) Excess losses from joint venture or associated enterprise
Unit: RMB/CNY
Un-confirmed losses not
Joint venture or associated Cumulative un-confirmed recognized in the Period (or Cumulative un-confirmed
enterprise losses net profit enjoyed in the losses at period-end
Period)
Other note:
(7) Un-confirmed commitment with investment concerned with joint venture
(8) Contingent liability with investment concerned with joint venture or associated enterprise
Main operation Share-holding ratio/share enjoyed
Name Registered place Business nature
place Directly Indirectly
Share-holding ratio or shares enjoyed different from voting right ratio:
If the co-runs entity is the separate entity, basis of the co-runs classification
Other note:
XI. Government subsidy
□Applicable ?Not applicable
The reason for not receiving the estimated amount of government subsidies at the expected point in time
□Applicable ?Not applicable
□Applicable ?Not applicable
?Applicable □Not applicable
In RMB
Accounting items Amount incurred in the current period Amount incurred in the previous period
Job stabilization subsidy 1,000.00 5,771.92
Other note:
Annual Report 2025
XII. Risks Related to Financial Instruments
The Company's main financial instruments include monetary funds, accounts receivable, receivables
financing, other receivables, other current assets, accounts payable, other payables, short-term borrowings, other
current liabilities, etc. Details of the financial instruments are provided in the relevant notes to the financial
report.
The Company's risk management objective is to achieve an appropriate balance between risks and returns,
to minimize the negative impact of risks on the Company's operating results, and to maximize the interests of
shareholders and other equity investors. Based on this risk management objective, the basic strategy of the
Company's risk management is to identify and analyze the various risks faced by the Company, establish an
appropriate risk tolerance baseline and conduct risk management, and monitor various risks in a timely and
reliable manner to control the risks within a limited range.
The main risks associated with the Company's financial instruments are credit risk, liquidity risk and
market risk. The Company's management is fully responsible for the determination of risk management
objective and policy, and bears ultimate responsibility for risk management objective and policy. Management
reviews the effectiveness of the implemented procedures and the reasonableness of risk management objective
and policy through work reports submitted by functional departments.
(A) Credit risk
Credit risk refers to the risk that one party to a financial instrument will fail to perform its obligations,
resulting in financial losses to the other party. In order to mitigate credit risk, the Company has established
internal control policy responsible for determining credit limits, conducting credit approvals, including external
credit ratings and, in some cases, bank references (where this information is available), and implementing other
monitoring procedures to ensure that necessary measures are taken to recover overdue creditor's right. As a
result, the management of the Company considers that the credit risk assumed by the Company has been
significantly reduced.
The credit risk of the Company mainly arises from bank deposits, accounts receivable, prepayments, other
receivables, etc., and the credit risk of these financial assets is derived from the default of the counterparty, and
the maximum risk exposure is equal to the carrying amount of these instruments.
working capital is low.
policy.
Annual Report 2025
(B) Liquidity risk
Liquidity risk refers to the risk that an enterprise will have a shortage of funds when fulfilling its
obligation to settle by means of cash or other financial assets. It is the Company's policy to ensure that it has
sufficient cash to pay off its debts as they fall due. Liquidity risk is centrally controlled by the Company's
finance department. The finance department monitors cash balances, marketable securities that can be
liquidated at any time, etc., to ensure that the Company has sufficient funds to repay its debts under all
reasonably foreseeable circumstances.
(C) Market risk
Market risk refers to the risk that the fair value or future cash flows of financial instruments will fluctuate
due to changes in market prices, including interest rate risk, foreign exchange risk and other price risks. Interest
rate risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market interest rates. The interest rate risk faced by the Company mainly comes from bank deposits.
(1) The Company conducts hedging business for risk management
□Applicable ?Not applicable
(2) The Company conducts qualified hedging business and applies hedge accounting
In RMB
The cumulative fair
value hedge adjustment
The carrying amount Sources of hedge The impact of hedge
of the hedged items
associated with the effectiveness and accounting on the
Item included in the
hedged item and the hedge ineffectiveness Company's financial
recognized carrying
hedging instrument part report
amount of the hedged
items
Type of hedging risk
Hedging category
Other note:
（3） The Company conducts hedging business for risk management and expects to achieve risk
management objective but does not apply hedge accounting
Other note:
Annual Report 2025
(1) Classification of transfer methods
□Applicable ?Not applicable
(2) Financial assets that have been derecognized as a result of a transfer
□Applicable ?Not applicable
(3) Financial assets of continued involvement in asset transfer
□Applicable ?Not applicable
Other note:
XIII. Disclosure of fair value
In RMB
Ending fair value
Item
First-order Second-order Third-order Total
I. Sustaining measured
-- -- -- --
by fair value
II. Non-sustaining
-- -- -- --
measured by fair value
order
The quoted prices without adjustment in the active markets for identical assets or liabilities that are available at
the measurement date.
value measure sustaining and non-persistent on second-order
The inputs for second-order are inputs other than first-order for which the related assets or liabilities are directly
or indirectly observable
value measure sustaining and non-persistent on third-order
The third-order inputs are unobservable inputs for the underlying assets or liabilities. The fair value of the bank
acceptance bill receivable from bank is determined using the face amount because the probability of loss is
small and the recoverable amount is basically determined
sustaining and non-persistent on third-order
None
Annual Report 2025
conversion and policy for conversion time point
None
None
None
None
XIV. Related party and related transactions
Share-holding
ratio on the Voting right ratio
Parent company Registered place Business nature Registered capital
enterprise for on the enterprise
parent company
Wansheng
Industrial
Investment in
Holdings Shenzhen 500 million Yuan 20.00% 20.00%
industry
(Shenzhen) Co.,
Ltd.
Explanation on parent company of the enterprise
Wansheng Industrial Holdings (Shenzhen) Co., Ltd. was established on May 10, 2016, with the business
period is from May 10, 2016 to no fixed term, the registered capital of the company is 500,000,000 yuan, the
unified social credit code is 91440300MA5DCB5K9A, the enterprise type is a limited liability company, the
legal representative is Wang Shenghong, and the company's registered address is 1311, Beiyuehui Building, No.
Ultimate controller of the Company: Wang Shenghong
Other note:
Found more in Note VIII-1
Found more in Note
Other associated enterprise and joint venture that have related transaction with the Company in the Period or
occurred in previous period
Joint venture or associated enterprise Relationship with the Company
Annual Report 2025
Other note:
Other related party Relationship with the Company
Enterprise that holds more than 5% of the shares of Shenzhen
Shenzhen Guocheng Energy Investment Development Co., Ltd.
China
The associated enterprise, Hangzhou Huabaohui Digital
Shenzhen Xinxuan Technology Co., Ltd.
Culture Co., Ltd. holds 40% equity of the Company
Other note:
(1) Goods purchasing, labor service providing and receiving
Goods purchasing/labor service receiving
In RMB
Whether more than
Transaction Current period Approved Prior period
Related party the transaction
content incurred transaction amount incurred
amount
Goods sold/labor service providing
In RMB
Related party Transaction content Current period incurred Prior period incurred
Explanation on goods purchasing, labor service providing and receiving
(2) Related trusteeship/contract and delegated administration/outsourcing
Trusteeship/contract
In RMB
Client/ Entrusting Income from
Yield pricing
contract-out party/ Assets type Starting date Maturity date trusteeship/cont
basis
party contractor ract
Explanation on related trusteeship/contract
Delegated administration/outsourcing
In RMB
Pricing basis of Trustee
Client/ Entrusting
trustee fee/outsourcing
contract-out party/ Assets type Starting date Maturity date
fee/outsourcing fee recognized
party contractor
fee in the Period
Explanation on related administration/outsourcing
(3) Related lease
As a lessor for the Company::
In RMB
Lease income recognized in Lease income recognized in
Lessee Assets type
the Period prior Period
As a lessee for the Company:
In RMB
rental cost for
Variable lease
short-term leases
payment not
and low-value Interest expenses
Assets included in the Right-of-use assets
Lessor assets leases with Rental paid assumed on lease
type measurement of increased
simplified liability
leasing liability (if
processing (if
applicable)
applicable)
Annual Report 2025
Current Prior Current Prior Current Prior Current Prior Current Prior
period period period period period period period period period period
incurre incurre incurre incurre incurre incurre incurre incurre incurre incurre
d d d d d d d d d d
Explanation on related lease
(4) Related guarantee
As a guarantor for the Company
In RMB
Guarantee completed
Secured party Amount guarantee Starting date Due date
(Y/N)
As a secured party for the Company
In RMB
Guarantee completed
Guarantor Amount guarantee Starting date Due date
(Y/N)
Explanation on related guarantee
(5)Borrowed funds of related party
In RMB
Related party Borrowed funds Starting date Due date Note
Borrowing
Lending
(6) Assets transfer and debt restructuring of related party
In RMB
Related party Transaction content Current period incurred Prior period incurred
(7)Remuneration of key manager
In RMB
Item Current period incurred Prior period incurred
Remuneration of key manager 1,955,955.36 1,928,727.64
(8)Other related transactions
(1)Receivable item
In RMB
Ending balance Opening balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Wansheng
Industrial
Other receivable 18,154,754.41
Holdings
(Shenzhen) Co.,
Annual Report 2025
Ltd.
(2)Payable item
In RMB
Item Related party Ending book balance Opening book balance
Shenzhen Guosheng Energy
Other account payable Investment Development Co., 6,500,000.00 6,500,000.00
Ltd.
Shenzhen Xinxuan
Other account payable 2,000,000.00
Technology Co., Ltd.
According to the Cooperation Agreement signed by Shenzhen China Bicycle Company (Holdings) Co.,
Ltd. with Wansheng Industrial Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as "Wansheng Industrial")
and Shenzhen Guosheng Energy Investment and Development Co., Ltd. (hereinafter referred to as "Guosheng
Energy") on December 14, 2020, Wansheng Industrial promised that in the next three years from the next year
after the completion of the non-public issuance of shares and the completion of the adjustment of the board of
directors and board of supervisors of the listed company by Wansheng Industrial, the net profit of the listed
company shall not be less than RMB 30 million yuan, 35 million yuan and 40 million yuan, that is, the
cumulative net profit scale is 105 million yuan. If the cumulative actual net profit of the listed company as of
any year during the performance commitment period does not reach the promised cumulative net profit,
Wansheng Industrial shall compensate the listed company in cash within 10 working days after the issuance of
the audit report of the listed company in the year during the performance commitment period. The amount of
compensation payable for the year is calculated as follows: amount of compensation payable for the year =
cumulative committed net profit as of the end of the period minus cumulative realized net profit as of the end of
the period minus cumulative compensation amount (if any).
The net profit attributable to the owners of the parent company in 2025 is RMB 41.1292 million and the actual
completion islower than the performance commitment of RMB40 million, with a performance commitment
completion rate of 650%. Wansheng Industrial has not fulfilled its 2025 annual performance commitment, The
cumulative net profit attributable to the owners of the parent company during the performance commitment
period has been fully achieved.
XV. Share-based payment
□Applicable ?Not applicable
□Applicable ?Not applicable
Annual Report 2025
□Applicable ?Not applicable
□Applicable ?Not applicable
XVI. Commitment or contingency
Important commitments in balance sheet date
As of December 31, 2025, the Company has no important commitments that should be disclosed but not
disclosed.
(1) Contingency on balance sheet date
As of December 31, 2025, Shenzhen Xinsen Precision Manufacturing Co., Ltd., Shenzhen Xinsen Jewelry
& Gold Co., Ltd., and Shenzhen China Bicycle (Group) Co., Ltd. were jointly sued in a utility model patent
licensing contract dispute case. The case has been accepted by the Shenzhen Intermediate People's Court, with
the case number Min Chu 10398 Yue 03 (2025). The plaintiff claims a litigation amount of approximately RMB
counterclaim in relation to the dispute, with a counterclaim amount of approximately RMB 1.158 million. As of
the date of approval of the financial report, the original lawsuit and the counterclaim have been consolidated for
trial by the Shenzhen Intermediate People's Court, and the date of the first trial has not yet been determined. The
Company has consulted with the lawyers handling the case on this matter. According to the current progress of
the case, the possibility of an outflow of economic benefits due to the lawsuit and the possibility of an inflow of
economic benefits due to the counterclaim cannot be reliably assessed. Therefore, the Company has not
recognized a provision for this matter, nor has it recognized any contingent assets. Due to the uncertainty of the
trial outcome, the Company is currently unable to reliably estimate the potential loss or gain amount. The
Company will closely monitor the progress of the case and make corresponding accounting treatments in
accordance with the Enterprise Accounting Standards based on subsequent developments.
(2) For the important contingency not necessary to disclosed by the Company, explained reasons
The Company has no important contingency that need to disclosed
Annual Report 2025
XVII. Events after balance sheet date
In RMB
Impact on financial status and Reasons on un-able to
Item Content
operation results estimated the impact number
XVIII. Other important events
(1) Retrospective restatement
In RMB
Impact items of statement
Correction content Treatment procedures Cumulative impacted number
during a comparison
(2) Prospective application
Reasons for prospective application
Correction content Approval procedures
adopted
(1) Non-monetary assets change
(2) Other assets replacement
In RMB
Discontinued
operations
Income tax profit
Item Revenue Expenses Total profit Net profit
expenses attributable to
owners of
parent company
Other note:
Annual Report 2025
(1)Recognition basis and accounting policy for reportable segment
The Company determines its business segments based on its internal organizational structure,
management requirements, and internal reporting system. The Company's business segments are those that meet
the following conditions at the same time:
(1) The component is capable of generating income and incurring expenses in its daily activities;
(2) Management is able to regularly evaluate the operating results of the component in order to decide on
the allocation of resources to it and evaluate its performance;
(3) Able to obtain accounting information related to the financial position, results of operations and cash
flows of the component.
The Company determines the reporting segment on the basis of the industry segment.
Segment reporting information is disclosed in accordance with the accounting policy and measurement
standards adopted by each segment in reporting to management, which are consistent with those at the time of
preparation of the financial report.
(2)Financial information for reportable segment
in 10 thousand Yuan
Offset between
Item Gold jewelry Bicycle Total
segments
Main business income 73,468.40 8.38 73,476.78
Main business cost 65,785.71 8.43 65,794.14
Gross 7,682.69 -0.05 7,682.64
(3)The Company has no reportable segments, or unable to disclose total assets and total liability for
reportable segments, explain reasons
(4) Other note:
XIX. Principle notes of financial statements of parent company
（1）Disclosure according to the aging
In RMB
Aging Balance in year-end Balance Year-beginning
Within one year(one year included) 77,671,263.38 95,747,214.26
Annual Report 2025
Over 3 years 18,522,136.83 13,113,397.02
Over 5 years 2,307,925.00 1,235,678.00
Total 96,350,400.41 114,469,351.29
（2） According to the bad debt provision method classification disclosure
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Accrual
of bad
debt 18,656,8 18,656,8 18,699,8 17,773,0 926,795.
provisio 37.03 37.03 37.03 41.59 44
n by
single
Includin
g：
Single
identific 19.36% 100.00% 16.34% 95.04%
ation
Accrual
of bad
debt 77,693,5 341,880. 77,351,6 95,769,5 78,660.8 95,690,8
provisio 63.38 75 82.63 14.26 4 53.42
n by
portfolio
Includin
g：
Aging 77,693,5 341,880. 77,351,6 95,769,5 78,660.8 95,690,8
portfolio 63.38 75 82.63 14.26 4 53.42
Total 100.00% 19.72% 100.00% 15.60%
Bad debt provision accrual on single basis: Single identification
In RMB
Opening balance Ending balance
Name Bad debt Bad debt Reason for
Book balance Book balance Accrual ratio
provision provision accrual
Guangshui
Expected to be
Jiaxu Energy
Technology
recover
Co., Ltd.
Suzhou Jiaxin Expected to be
Economic 888,757.00 888,757.00 888,757.00 888,757.00 100.00% difficult to
Trade Co., Ltd. recover
Suzhou Expected to be
Daming 649,688.00 519,750.40 649,688.00 649,688.00 100.00% difficult to
Vehicle recover
Annual Report 2025
Industry Co.,
Ltd.
Dongguan
Expected to be
Daxiang New
Energy Co.,
recover
Ltd.
Guangdong
Expected to be
Xinlingjia New
Energy Co.,
recover
Ltd.
Tianjin
Expected to be
HuijuElectric
Vehicle Co.,
recover
Ltd.
Expected to be
Other 194,525.00 194,525.00 194,525.00 194,525.00 100.00% difficult to
recover
Total 18,699,837.03 17,773,041.59 18,656,837.03 18,656,837.03
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Within one year 77,630,959.74 319,580.75 0.41%
Over 5 years
Total 77,653,259.74 341,880.75
Explanation on portfolio basis:
If the provision for bad debts of account receivable is made in accordance with the general model of expected
credit losses, please refer to the disclosure of other account receivable to disclose related information about bad-
debt provisions:
□Applicable?Not applicable
(3) Bad debt provision accrual, collected or reversal in the period
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Accounts
receivable with
individual 17,773,041.59 926,795.44 43,000.00 18,656,837.03
provision for
bad debts
Provision for
bad debts based 78,660.84 263,219.91 341,880.75
on a portfolio
Annual Report 2025
of credit risk
characteristics
Total 17,851,702.43 1,190,015.35 43,000.00 18,998,717.78
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
(4)Account receivables actually write-off during the reporting period
In RMB
Item Amount written off
Including major account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Nature Causes Procedure
off transactions or not
(Y/N)
Explanation on account receivable write-off:
(5) The top five accounts receivable and contract assets at the end of the period aggregated according to
debtor
In RMB
Ending balance of
Proportion to the
accounts
Ending balance of total ending
Ending balance of receivable bad
Name of the Ending balance of accounts balance of
accounts debt provision and
organization contract assets receivable and accounts
receivable contract asset
contract assets receivable and
impairment
contract assets
provision
Fuzhou Rongrun
Jewelry Co., Ltd
Shenzhen
Hualinglong
Jewelry Culture 16,519,312.16 16,519,312.16 17.15% 31,549.94
Technology Co.,
Ltd.
Guangshui Jiaxu
Energy
Technology Co.,
Ltd
Fuzhou
Zhuanjinsen 15,006,025.53 15,006,025.53 15.57% 86,292.14
Jewelry Co., Ltd.
Fuzhou Cangshan
District Dingjue
Annual Report 2025
Jewelry Company
Total 83,729,154.47 83,729,154.47 86.90% 16,226,835.47
In RMB
Item Ending balance Opening balance
Other account receivable 47,383,281.34 59,769,403.49
Total 47,383,281.34 59,769,403.49
(1)Interest receivable
In RMB
Item Ending balance Opening balance
In RMB
Impairment (Y/N) and
Borrower Ending balance Overdue time Overdue reason
judgment basis
Other note:
□Applicable ?Not applicable
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note:
Annual Report 2025
In RMB
Item Write-off amount
Important Interest receivables write-off status thereinto:
In RMB
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Note：
Other note：
(2)Dividend receivable
In RMB
Item (or the invested entity) Ending balance Opening balance
In RMB
Item (or the invested Causes of failure for Impairment (Y/N) and
Ending balance Account age
entity) collection judgment basis
□Applicable ?Not applicable
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Including important amount of bad debt provision collected or reversal in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
Other note：
Annual Report 2025
In RMB
Item Write-off amount
Important Dividend receivable write-off status thereinto:
In RMB
Whether the
Write-off payment is
Name of
Amount Nature Write-off amount Write-off reason procedures for generated by a
Organization
fulfillment related party
transaction
Note：
Other note：
（3）Other account receivable
In RMB
Nature Ending book balance Opening book balance
Performance compensation 18,154,754.41
Deposit or margin 9,609.80 9,609.80
Payment for equipment 11,400.00 11,400.00
Current account 47,342,904.00 41,648,565.50
Other 48,810.63 4,250.20
Total 47,412,724.43 59,828,579.91
In RMB
Aging Ending book balance Opening book balance
Within one year(one year included) 47,283,106.63 59,665,281.11
Over 3 years 11,900.00 11,900.00
Over 5 years 11,900.00 11,900.00
Total 47,412,724.43 59,828,579.91
In RMB
Amount in year-end Balance Year-beginning
Categor Book Balance Bad debt provision Book Book Balance Bad debt provision Book
y Amount Proporti Amount Proporti value Amount Proporti Amount Proporti value
on(%) on(%) on(%) on(%)
Includin
g:
Accrual 100.00% 0.06% 100.00% 0.10%
Annual Report 2025
of bad
debt
provisio
n by
portfolio
Includin
g:
Aging 158,428. 29,443.0 128,985. 195,695. 59,176.4 136,519.
portfolio 43 9 34 56 2 14
Related
party 47,254,2 47,254,2 59,632,8 59,632,8
Portfoli 96.00 96.00 84.35 84.35
o
Total 100.00% 0.06% 100.00% 0.10%
Bad debt provision accrual on portfolio: Aging portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Aging portfolio 158,428.43 29,443.09 18.58%
Explanation on portfolio basis:
Bad debt provision accrual on portfolio: Related party Portfolio
In RMB
Ending balance
Name of the Company
Book balance Bad debt provision Accrual ratio
Related party Portfolio 47,254,296.00
Explanation on portfolio basis:
Provision for bad debts is made according to the general model of expected credit losses
In RMB
Phase I Phase II Phase III
Expected credit losses Expected credit losses
Bad debt provision Expected credit losses for the entire duration for the entire duration Total
over next 12 months (without credit (with credit impairment
impairment occurred) occurred)
Balance on January 1,
January 1, 2025
balance in the current
period
Return in current year 29,733.33 29,733.33
Balance on December
The basis for the division of each stage and the proportion of bad debt provision
Change of book balance of loss provision with amount has major changes in the period
□Applicable ?Not applicable
Annual Report 2025
Accrual of bad debt provision in the period:
In RMB
Current changes
Opening
Category Collected or Ending balance
balance Accrual Write off Other
reversal
Provision for
bad debts based
on a portfolio 59,176.42 29,733.33 29,443.09
of credit risk
characteristics
Total 59,176.42 29,733.33 29,443.09
Important amount of bad debt provision switch-back or collection in the period:
In RMB
The basis and
rationality for
Name of the Amount recovered or determining the
Reason for reversal Recovery method
organization reversed provision ratio of
original bad debt
provision
In RMB
Item Amount written off
Including major other account receivables write-off:
In RMB
Amount cause by
Amount written related
Enterprise Other Nature Causes Procedure
off transactions or not
(Y/N)
Other Explanation on account receivable write-off:
In RMB
Proportion in total
other account Ending balance of
Enterprise Nature Ending balance Account age
receivables at bad bet provision
period-end
Shenzhen Xinsen
Jewelry Gold
Current account 47,234,196.00 Within 1 year 99.62%
Supply Chain Co.,
Ltd
Hubei Guangshui
Current account 52,816.00 2-3 years 0.11% 8,938.87
Court
Guangdong
Current account 35,792.00 1-2 years 0.08% 4,039.53
Shenzhen Luohu
Annual Report 2025
Court
Shenzhen
Hongkang
Instrument Other 11,400.00 Over 5 years 0.02% 11,400.00
Technology Co.,
Ltd
Hainan Shenhua
Industrial Co., Current account 10,100.00 2-3 years 0.02%
Ltd.
Total 47,344,304.00 99.85% 24,378.40
Other note：
In RMB
Ending balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment for
subsidiary
Total 147,696,069.73 147,696,069.73 126,995,379.73 126,995,379.73
(1)Investment for subsidiary
In RMB
Opening Changes in the period (+, -)
Ending
The Opening balance of Ending
balance of
invested balance(Bo the Additional balance
Other impairment
entity ok value) impairment investment book value
provision
provision
Shenzhen
Emmelle
Industrial
Co., Ltd.
Shenzhen
Xinsen
Jewelry
Gold Co.,
Ltd
Shenzhen
Cloud
Preferred 5,250,000.0 5,250,000.0
Jewelry 0 0
Technology
Co., Ltd.
Hangzhou
Huabaohui
Digital
Culture
Co., ltd.
Annual Report 2025
Tibet
Jinyaya
Trading
Co., Ltd.
Fujian
Huaxinbao
Jewelry
Co., Ltd.
Shenhua
Internation
al Co., Ltd.
Total
(2)Investment for associates and joint venture
In RMB
Openi Changes in the period (+, -)
ng Other Ending
Openi Invest Cash
balanc compr Accrua Ending balanc
Funde ng ment divide
e of Additi ehensi l of balanc e of
d balanc Capital gains Other nd or
the onal ve impair e(Boo impair
enterpr e(Boo reducti recogn equity profit Other
impair invest incom ment k ment
ise k on ized change annou
ment ment e provisi value) provisi
value) under nced to
provisi adjust on on
on equity issued
ment
I. Joint venture
II. Associated enterprise
The recoverable amount is determined on the basis of the net amount of fair value less disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the projected future cash flows
□Applicable ?Not applicable
The reason for the obvious discrepancy between the foregoing information and the information used in the
impairment test of previous years or the external information
The reason for the obvious discrepancy between the information used in the Company's impairment test in
previous years and the actual situation in the current year
（3）Other note
In RMB
Current period incurred Prior period incurred
Item
Revenue Cost Revenue Cost
Main business 319,660,209.18 286,159,004.27 177,008,795.12 161,790,077.72
Other business 378,257.20 530.40 472,596.81 530.40
Total 320,038,466.38 286,159,534.67 177,481,391.93 161,790,608.12
Breakdown of operating income and operating costs:
In RMB
Annual Report 2025
Contract 1# Division 2# Division Total
type Revenue Cost Revenue Cost Revenue Cost Revenue Cost
Business
type
Including
：
Classificati
on by
business
area
Including
：
Market or
customer
type
Including:
Contract
type
Including:
Classificati
on by time
of goods
transfer
Including:
Classificati
on by
contract
duration
Including:
Classificati
on by sales
channel
Including:
Total
Information related to performance obligations:
The time to Important The nature of Whether it is The expected The types of
Item
fulfill the payment terms the goods that the main refunds to quality
Annual Report 2025
performance the company responsible customers assurance
obligation promises to person borne by the provided by the
transfer company company and
related
obligations
Other note
Information relating to the transaction price assigned to the remaining performance obligation:
The amount of income corresponding to the performance obligations that have been signed at the end of this
reporting period but have not yet been fulfilled or have not done with fulfillment is 0.00 yuan, among them,
yuan of revenue is expected to be recognized in year, yuan of revenue is expected to be recognized in year, and
yuan of revenue is expected to be recognized in year.
Significant contract changes or significant transaction price adjustments
In RMB
Item Accounting treatment method The impacted amount on revenue
Other note：
In RMB
Item Current period incurred Prior period incurred
Gains from silver extended trading -180,799.89
Total -180,799.89
XX. Supplementary Information
?Applicable □Not applicable
In RMB
Item Amount Note
Non-current asset disposal gain/loss -13,461.54
Government subsidy recognized in
current gain and loss(excluding those
closely related to the Company’s 1,000.00
business and granted under the state’s
policies)
Gain and loss from change of the fair
value arising from transactional
monetary assets, transactional financial
liabilities as held as well as the
investment income arising from disposal
of the transactional monetary assets, -180,799.89
transactional financial liabilities and
financial assets available for sale
excluding the effective hedging
transaction in connection with the
Company’s normal business
Switch-back of provision of impairment 129,298.13
Annual Report 2025
of account receivable which are treated
with separate depreciation test
Other non-operation revenue and
expenditure except for the 491,962.36
aforementioned items
Less: Impact on income tax 77,994.40
Amount of impact of minority interests 25,461.98
Total 324,542.68 --
Details of other gains/losses items that meets the definition of non-recurring gains/losses:
□Applicable?Not applicable
There are no other gains/losses items that meet the definition of non-recurring gains/losses in the Company.
Explain the items defined as recurring profit (gain)/loss according to the lists of extraordinary profit (gain)/loss
in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public -
-- Extraordinary Profit/loss
□Applicable?Not applicable
Earnings per share
Profits during report period Weighted average ROE
Basic EPS(RMB/Share) Diluted EPS(RMB/Share)
Net profits belong to common
stock stockholders of the 11.30% 0.0597 0.0597
Company
Net profits belong to common
stock stockholders of the
Company after deducting
nonrecurring gains and losses
(1) Difference of the net profit and net assets disclosed in financial report, under both IAS (International
Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable?Not applicable
(2) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting
rules and Chinese GAAP (Generally Accepted Accounting Principles)
□Applicable?Not applicable
(3) Explain accounting difference over the accounting rules in and out of China; as for the difference
adjustment for data audited by foreign auditing organ, noted the name of such foreign organ
The Board of Directors of Shenzhen China Bicycle Company (Holdings) Limited
April 17, 2026
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