Audit report
ZTE Huashen Document No. (2026) 010146
To all shareholders of Nanjing Putian Communication Co., Ltd.:
一、audit opinion
We have audited the financial statements of Nanjing Putian Communications Co., Ltd.
(hereinafter referred to as "Nanjing Putian Company"), including the consolidated and parent
company balance sheets as of December 31,2025; the consolidated and parent company income
statements, consolidated and parent company cash flow statements, consolidated and parent
company statement of changes in equity for the year ended 2025; and the accompanying notes to
the financial statements.
We conclude that the accompanying financial statements have been prepared in all material
respects in accordance with the Enterprise Accounting Standards, fairly presenting Nanjing Putian
Company's consolidated and parent company's financial position as of December 31,2025, as well
as their consolidated and parent company's operating results and cash flows for the year 2025.
二、The basis for forming an audit opinion
We conducted the audit in accordance with the provisions of the China Certified Public
Accountant Auditing Standards. The section "Certified Public Accountant's Responsibility for
Auditing the Financial Statements" in the audit report further elaborates on our responsibilities
under these standards. In compliance with the China Certified Public Accountant Independence
Standards and the China Certified Public Accountant Code of Professional Ethics, we maintained
independence from Nanjing Putian Company and fulfilled other professional ethical obligations. We
are confident that the audit evidence obtained was sufficient and appropriate, providing a solid basis
for our audit opinion.
三、Key Audit Matters
Key audit matters are those that, based on professional judgment, we consider most significant
for the current financial statements audit. The treatment of these matters is informed by our overall
audit of the financial statements and the resulting opinion; we do not issue separate opinions on
them. The following matters have been identified as key audit matters to be disclosed in the audit
report.
(I) Revenue Recognition
As detailed in Note 3 and Note 24, as well as Note 5 and Note 37 regarding operating revenue
and operating costs in the financial statements, your company's sales revenue for the year 2025
amounted to RMB 617.6395 million.
Operating revenue is one of your company's key performance indicators and a significant
component of profit generation. There is an inherent risk that management may manipulate revenue
recognition to achieve specific objectives; therefore, we have identified revenue recognition as a
critical audit matter.
(1) Understand and evaluate the design and operational effectiveness of key internal controls
related to revenue recognition by management.
(2) Conduct a sampling inspection of your company's revenue-related documents—including
sales contracts, sales invoices, shipping records, and customer receipt confirmations—to assess
whether the revenue recognition complies with your company's accounting policies for revenue
recognition.
(3) Conduct analytical review procedures on operating revenue and gross margin by customer
segments and other dimensions to assess the reasonableness of their fluctuations.
(4) Send confirmation letters regarding the accounts receivable balances from major customers
to verify the authenticity and accuracy of your company's revenue recognition.
(5) For operating revenue recognized before and after the balance sheet date, verify shipping
records, customer receipt documents, and other relevant materials to ensure the revenue is properly
recognized within the appropriate period.
(II) Provision for bad debts on accounts receivable
As of December 31,2025, as detailed in Note 3.10 and Note 5.3 of the financial statements, the
Company's accounts receivable balance stood at RMB 515.842 million, with a bad debt provision of
RMB 192.2551 million and a carrying amount of RMB 323.5869 million, representing 44.33% of
total assets.
Based on the credit risk characteristics of each accounts receivable, management measures the
loss provision for individual accounts receivable or collections portfolios at an amount equivalent to
the expected credit loss over the entire lifetime of the accounts receivable.
Given the substantial amount of accounts receivable, failure to collect them on time or the
occurrence of bad debts would have a significant impact on the company's financial statements.
Moreover, determining the amount of bad debt provisions involves critical management judgments
and estimates; therefore, we have identified the recognition of accounts receivable bad debt
provisions as a key audit matter.
The primary audit procedures implemented regarding the provision for bad debts on accounts
receivable include:
(1) Understand and evaluate the design and operational effectiveness of key internal controls
related to accounts receivable bad debt provisions;
(2) For accounts receivable assessed individually for bad debt provisions, we conducted a
sampling review of the management's basis for calculating recoverable amounts, including their
assessment of credit risk based on the client's current credit standing, repayment willingness, and
repayment capacity.
(3) For accounts receivable for which bad debt provisions are calculated based on aging groups,
we conducted sample reviews of key information such as aging periods and overdue days.
(4) We reviewed the management's calculation of the allowance for bad debts on accounts
receivable;
(5) Conduct confirmation letters for significant accounts receivable, and evaluate the
reasonableness of management's provision for bad debts by combining post-period collection data
and analysis of reasons for prolonged outstanding balances.
四、Other Information
The management of Nanjing Putian Company (hereinafter referred to as the "Management") is
responsible for other information. This other information includes the information contained in
Nanjing Putian Company's 2025 Annual Report, excluding the financial statements and our audit
report.
Our audit opinion on the financial statements does not cover other information, nor do we
issue any form of attestation conclusion regarding such other information.
In conjunction with our audit of the financial statements, our responsibility is to review other
information and determine whether such information exhibits material inconsistencies with the
financial statements or with findings made during the audit, or appears to contain material
misstatements.
Based on the work we have already conducted, if we identify material misstatements in other
information, we should report such findings. In this regard, there are no matters requiring reporting.
五、The responsibilities of management and governance layers regarding financial
statements
The management is responsible for preparing financial statements in accordance with the
provisions of the Enterprise Accounting Standards to ensure their fair presentation, and for
designing, implementing, and maintaining necessary internal controls to prevent material
misstatements in the financial statements resulting from fraud or error.
When preparing the financial statements, management is responsible for assessing Nanjing
Putian Company's ability to continue as a going concern, disclosing events related to the going
concern (where applicable), and applying the going concern assumption, unless management
plans to liquidate Nanjing Putian Company, cease operations, or has no other realistic alternatives.
The management layer is responsible for overseeing the financial reporting process of
Nanjing Putian Company.
六、The responsibilities of a Certified Public Accountant in auditing financial statements
Our objective is to obtain reasonable assurance as to whether the financial statements as a
whole are free from material misstatements resulting from fraud or error, and to issue an audit
report containing an audit opinion. Reasonable assurance represents a high level of assurance;
however, it does not guarantee that an audit conducted in accordance with audit standards will
always detect the presence of a material misstatement. A misstatement may arise from fraud or
error, and it is generally considered material if there is a reasonable expectation that the
misstatement, individually or in combination, could affect the economic decisions made by users
of the financial statements based on those statements.
During the audit conducted in accordance with auditing standards, we exercised professional
judgment and maintained professional skepticism. Additionally, we performed the following audit
tasks:
(1) Identify and assess the risk of material misstatements in financial statements arising from
fraud or error, design and implement audit procedures to address these risks, and obtain sufficient
and appropriate audit evidence as the basis for forming an audit opinion. Since fraud may involve
collusion, forgery, intentional omission, false statements, or overriding internal controls, the risk
of failing to detect material misstatements due to fraud is higher than the risk of failing to detect
material misstatements due to error.
(2) Understand the internal controls relevant to the audit to design appropriate audit
procedures, but the purpose is not to express an opinion on the effectiveness of the internal
controls.
(3) Evaluate the appropriateness of the accounting policies adopted by management and the
reasonableness of accounting estimates and related disclosures.
(4) Draw conclusions regarding the appropriateness of management's use of the going
concern assumption. Simultaneously, based on the audit evidence obtained, determine whether
there are material uncertainties concerning matters or circumstances that could raise significant
doubts about Nanjing Putian Company's ability to continue as a going concern. If we conclude
that material uncertainties exist, audit standards require us to draw the attention of statement users
to the relevant disclosures in the financial statements; if the disclosures are inadequate, we shall
issue a qualified opinion. Our conclusions are based on the information available as of the audit
report date. However, future events or circumstances may result in Nanjing Putian Company
being unable to continue as a going concern.
(5) Evaluate the overall presentation, structure, and content of the financial statements, and
determine whether they fairly present the relevant transactions and events.
(6) Obtain sufficient and appropriate audit evidence regarding the financial information of
the entities or business activities of Nanjing Putian Company to form an opinion on the financial
statements. We are responsible for guiding, supervising, and executing the group audit. We bear
full responsibility for the audit opinion.
We communicated with the management regarding the planned audit scope, timeline, and
significant audit findings, including the critical internal control deficiencies identified during the
audit.
We have also provided the management with a statement regarding our compliance with the
professional ethical requirements related to independence, and have communicated with the
management all relationships and other matters that could reasonably be considered to affect our
independence, along with the relevant safeguards (where applicable).
From the matters communicated with the management, we identify those that are most
critical to the audit of the current financial statements, thus constituting key audit matters. We
describe these matters in the audit report unless prohibited by law or regulation from public
disclosure; or, in very rare circumstances, if it is reasonably expected that disclosing a particular
matter would entail negative consequences outweighing the benefits to the public interest, we
determine that the matter should not be disclosed in the audit report.
ZHONGXINGHUA CERTIFIED PUBLIC ACCOUNTANTS LLP
China · Beijing
China Certified Public Accountants:
(Project Partner)
China Certified Public Accountant:
consolidated balance sheet
Compiling unit: Nanjing Putian Communication Co., Ltd. Decemb Unit of
er 31, currency:
RMB
Item Notes 2024/12/3
current assets：
monetary capital V.1 292,600,9
Deposit Reservation for Balance
lending funds
tradable financial assets
derivative financial assets
bill receivable V.2 542,048.9
accounts receivable V.3 293,535,3
Receivables financing V.4 34,520,29
advance payment V.5 2,227,763.
receivable premium
reinsurance accounts receivable
provision of cession receivable
receivable other V.6 6,859,962.
redemptory monetary capital for sale
stock V.7 87,136,19
Contract assets
Assets Held for Sale
Non-current assets due within one year
other current assets V.8 1,226,580.
Total current assets 718,649,1
non-current assets：
Granting entrusted loans and advances
Debt investment
other investment on bonds
long-term receivables
long-term equity investment V.9 10,412,68
Other equity instrument investments V.10 741,953.0
Other non-current financial assets
investment real estate V.11 5,547,238.
fixed assets V.12 85,757,02
construction in process
productive biological asset
oil and gas assets
right-of-use asset V.13 2,447,793.
intangible assets V.14 11,672,32
development expenditure
business reputation
long-term unamortized expenses V.15 2,076,305.
deferred income tax assets V.16
other non-current assets V.17 719,280.0
summation of non-current assets 119,374,6
total assets 838,023,7
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated balance sheet(Continued)
Compiling unit: Nanjing Putian Communication Co., Ltd. Decemb Unit of
er 31, currency:
RMB
Item Notes 2025/12/31 2024/12/3
current liabilities：
short-term borrowing V.19 203,925,721.98 128,127,9
borrowings from central bank
loans from other banks and other financial institutions
trading financial liabilities
Derivative financial liability
notes payable V.20 6,775,234.17 10,122,22
accounts payable V.21 273,382,306.86 349,342,1
account collected in advance V.22 295,001.06 236,005.3
Repayment of financial assets through sale and repurchase
deposits from customers and interbank
acting trading securities
acting underwriting securities
Contract liabilities V.23 8,426,313.45 24,794,91
employee pay payable V.24 12,622,282.49 17,066,96
tax payable V.25 6,042,197.80 8,459,692.
other payables V.26 49,032,066.18 41,918,07
Covering handling fees and commissions
Cession insurance premiums payable
Liabilities Held for Sale
Non-current liabilities due within one year V.27 70,899,913.72 88,060,65
other current liability V.28 10,920,413.23 3,125,042.
total current liability 642,321,450.94 671,253,7
non-current liability：
reserve fund for insurance contracts
money borrowed for long term V.29 70,000,00
bonds payable
Among them: Preferred stock
perpetual bond
lease liability V.30 840,373.9
long-term payable
Long-term employee compensation payable
anticipation liabilities
deferred income
deferred income tax liabilities
other non-current liabilities
total non-current liabilities 70,840,37
total liability 642,321,450.94 742,094,1
stockholders' equity：
capital stock V.31 215,000,000.00 215,000,0
other equity instruments
Among them: Preferred stock
perpetual bond
Capital Reserve V.32 201,318,128.61 197,955,8
Subtract: Treasury Stock V.33 2,995,076.96 2,995,076.
other comprehensive income V.34 -1,854,910.00 -
reasonable reserve
Surplus Reserve V.35 589,559.77 589,559.7
General Risk Reserve
undistributed profit V.36 -403,806,789.70 -
Total shareholders' equity attributable to the parent company 8,250,911.72 14,351,01
minority stockholder's interest 79,351,234.31 81,578,62
Total Shareholders' Equity 87,602,146.03 95,929,64
Total liabilities and shareholders' equity 729,923,596.97 838,023,7
(The attached financial statement notes are an integral part
of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
balance sheet
Compiling unit: Nanjing Putian Communication Co., December Unit of currency:
Ltd. 31, 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
current assets：
monetary capital 36,959,492.02 76,313,327.62
tradable financial assets
derivative financial assets
bill receivable 510,041.40
accounts receivable XV.1 60,911,892.03 80,557,834.64
Receivables financing
advance payment 1,077,733.24 1,238,241.47
receivable other XV.2 30,491,285.66 22,894,075.34
stock 6,084,321.32 12,704,303.71
Contract assets
Assets Held for Sale
Non-current assets due within one year
other current assets 684,787.04 141,091.78
Total current assets 136,719,552.71 193,848,874.56
non-current assets：
Debt investment
other investment on bonds
long-term receivables
long-term equity investment XV.3 41,931,948.52 52,344,631.89
Other equity instrument investments 741,953.00 741,953.00
Other non-current financial assets
investment real estate
fixed assets 33,285,551.38 35,919,673.67
construction in process
productive biological asset
oil and gas assets
right-of-use asset 2,187,184.72 2,447,793.04
intangible assets 3,898,367.83 4,023,784.51
development expenditure
business reputation
long-term unamortized expenses 1,020,871.30 1,640,998.52
deferred income tax assets
other non-current assets
summation of non-current assets 83,065,876.75 97,118,834.63
total assets 219,785,429.46 290,967,709.19
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
balance sheet (Continued)
Compiling unit: Nanjing Putian Communication Co., December Unit of currency:
Ltd. 31, 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
current liabilities：
short-term borrowing 101,610,266.35 30,031,625.00
trading financial liabilities
Derivative financial liability
notes payable 446,679.01 1,809,060.50
accounts payable 78,170,882.89 114,611,153.64
account collected in advance
Contract liabilities 6,428,573.95 6,674,105.73
employee pay payable 7,257,940.39 7,646,826.89
tax payable 250,156.31 1,195,504.22
other payables 80,527,424.76 86,160,362.06
Liabilities Held for Sale
Non-current liabilities due within one year 70,899,913.72 88,060,659.43
other current liability 1,351,067.90 867,633.75
total current liability 346,942,905.28 337,056,931.22
non-current liability：
money borrowed for long term 70,000,000.00
bonds payable
Among them: Preferred stock
perpetual bond
lease liability 840,373.96
long-term payable
Long-term employee compensation payable
anticipation liabilities
deferred income
deferred income tax liabilities
other non-current liabilities
total non-current liabilities 70,840,373.96
total liability 346,942,905.28 407,897,305.18
stockholders' equity：
capital stock 215,000,000.00 215,000,000.00
other equity instruments
Among them: Preferred stock
perpetual bond
Capital Reserve 158,864,042.34 158,864,042.34
Subtract: Treasury Stock 2,995,076.96 2,995,076.96
other comprehensive income -1,854,910.00 -1,854,910.00
reasonable reserve
Surplus Reserve 589,559.76 589,559.76
undistributed profit -496,761,090.96 -486,533,211.13
Total Shareholders' Equity -127,157,475.82 -116,929,595.99
Total liabilities and shareholders' equity 219,785,429.46 290,967,709.19
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated income statement
Compiling unit: Nanjing Putian Communication Co., The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Total Operating Revenue 617,639,484.96 811,670,527.41
Among them: Operating Revenue V.37 617,639,484.96 811,670,527.41
II. Total Operating Costs 628,448,399.42 820,400,148.89
Among them: Operating costs V.37 487,520,396.95 635,224,730.05
Taxes and surcharges V.38 3,827,452.67 6,128,112.45
selling expenses V.39 55,636,075.45 71,756,768.98
Administrative Expenses V.40 43,658,123.43 62,275,909.90
R&D expenses V.41 29,208,797.71 34,850,835.24
Financial Expenses V.42 8,597,553.21 10,163,792.27
Among them: Interest expense 8,748,305.48 10,723,524.38
interest income 452,186.54 639,938.05
Add: Other income V.43 4,600,883.38 2,783,558.31
Investment income (losses are indicated by a "-" V.44 8,038,145.41 52,296,543.73
sign)
Among them: Investment income from associated 7,389,042.29 -5.77
enterprises and joint ventures
Gain from the derecognition of financial assets
measured at amortized cost
Exchange gains (losses are indicated by a "-" sign)
Net exposure hedging gain (loss is filled with a "-"
sign)
Fair value change gain (loss, filled with "-" sign for
losses)
Credit impairment loss (losses are filled in with a "-" V.45 -6,979,118.96 -7,634,385.51
sign)
Asset impairment loss (losses are filled in with a "-" V.46 -2,237,689.03 -14,428,752.85
sign)
Asset Disposal Gain/Loss (Losses are indicated by a V.47 5,359,026.59 1,083,098.78
"-" sign)
III. Operating Profit (Losses are indicated by a "-" -2,027,667.07 25,370,440.98
sign)
?Add: Non-operating Income V.48 3,000,746.99 3,583,432.03
Less: Non-operating expenses V.49 522,903.55 3,667,282.29
IV. Total Profit (Losses are indicated by a "-" sign) 450,176.37 25,286,590.72
Less: Income Tax Expense V.50 1,358,420.50 3,180,305.05
V. Net Profit (Net Loss is indicated by a "-" sign) -908,244.13 22,106,285.67
(I) Classified by the duration of operation:
by a "-" sign)
discontinued operations
(II) Classified by ownership:
company (net loss is indicated by a "-" sign)
a "-" sign)
VI. Net amount of other comprehensive income after
tax
(I)The after-tax net amount of other comprehensive
income attributable to the parent company's owners
into profit or loss
（1）Re-measurement of the changes in defined benefit
plans
（2）Other comprehensive income that cannot be
transferred to profit or loss under the equity method
（3）Changes in the fair value of other equity instruments
investments
（4）Fair value changes of the enterprise's own credit risk
（5）else
profit or loss
（1）Other comprehensive income that can be converted
into profit or loss under the equity method
（2）Other changes in the fair value of debt investments
（3）The amount of financial assets reclassification that
is recorded in other comprehensive income
（4）Other credit impairment provisions for debt
investments
（5）Cash flow hedging reserve
（6）Foreign currency financial statement translation
differences
（7）else
(II)The after-tax net amount of other comprehensive
income attributable to minority shareholders
VII. Comprehensive Income Total -908,244.13 22,106,285.67
(I)The total comprehensive income attributable to -9,462,362.33 11,376,879.14
shareholders of the parent company
(II)The total comprehensive income attributable to 8,554,118.20 10,729,406.53
minority shareholders
VIII. Earnings per Share:
(I)basic earnings per share -0.04 0.05
(II)diluted EPS(earnings per share) -0.04 0.05
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
income statement
Compiling unit: Nanjing Putian Communication Co., The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Operating Revenue XV.4 31,784,452.16 55,455,987.78
Less: Operating costs XV.4 23,070,819.14 48,831,493.80
Taxes and surcharges 739,212.49 1,416,565.94
selling expenses 3,674,575.83 5,885,830.63
Administrative Expenses 25,515,609.72 35,234,907.10
R&D expenses
Financial Expenses 6,658,472.07 7,232,295.87
Among them: Interest expense 6,670,688.91 7,606,119.33
interest income 220,347.93 382,125.01
Add: Other income 10,310.52 59,574.65
Investment income (losses are indicated by a "-" XV.5 17,318,129.12 60,475,665.77
sign)
Among them: Investment income from associated 7,389,042.29 -5.77
enterprises and joint ventures
Gain from the derecognition of financial assets
measured at amortized cost
Net exposure hedging gain (loss is filled with a "-"
sign)
Fair value change gain (loss, filled with "-" sign for
losses)
Credit impairment loss (losses are filled in with a "-" -4,992,463.96 -6,023,378.69
sign)
Asset impairment loss (losses are filled in with a "-" -2,131,109.47 -13,635,478.79
sign)
Asset Disposal Gain/Loss (Losses are indicated by a 5,372,239.34 1,090,467.64
"-" sign)
II. Operating Profit (Losses are indicated by a "-" -12,297,131.54 -1,178,254.98
sign)
?Add: Non-operating Income 2,543,328.14 520,587.01
Less: Non-operating expenses 474,076.43 2,989,716.65
III. Total Profit (Losses are indicated by a "-" sign) -10,227,879.83 -3,647,384.62
Less: Income Tax Expense
IV. Net Profit (Net Loss is indicated by a "-" sign) -10,227,879.83 -3,647,384.62
（I）Continuing operations net profit (net loss is -10,227,879.83 -3,647,384.62
indicated by a "-" sign)
（II）Net profit (net loss is indicated by a "-" sign) from
discontinued operations
V.Net amount of other comprehensive income after tax
（I）Other comprehensive income that cannot be
reclassified into profit or loss
plans
transferred to profit or loss under the equity method
investments
（II）Other comprehensive income that is reclassified
into profit or loss
into profit or loss under the equity method
recorded in other comprehensive income
investments
differences
VI.Comprehensive Income Total -10,227,879.83 -3,647,384.62
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
consolidated statement of cash flow
Compiling unit: Nanjing Putian Communication Co., The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Cash flows from operating activities:
Cash received from the sale of goods and provision of 550,533,528.31 740,417,766.98
services
refund of tax and levies 1,627,090.07 2,153,825.75
Received other cash related to business operations 36,952,155.85 43,058,931.33
Total Cash Inflow from Operating Activities 589,112,774.23 785,630,524.06
Cash paid for the purchase of goods and the receipt of 459,835,547.91 537,661,634.35
services
Cash for paying out policy dividends
Cash paid to employees and for the benefit of 129,621,114.65 149,323,538.69
employees
All sort fees as follow 27,311,494.06 30,399,599.81
Cash paid for other activities related to business 59,617,888.20 85,442,093.61
operations
Total cash outflows from operating activities 676,386,044.82 802,826,866.46
Net cash flow from operating activities -87,273,270.59 -17,196,342.40
II. Cash flows from investing activities:
Cash received from the withdrawal of investment
Cash received from investment income
Net cash received from the disposal of fixed assets, 5,621,791.00 40.00
intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and 108,162,342.81
other business units
Received other cash related to investment activities
Total Cash Inflow from Investment Activities 5,621,791.00 108,162,382.81
Cash paid for the purchase and construction of fixed 3,193,809.83 3,002,060.46
assets, intangible assets and other long-term assets
Net increase in pledged loan amount
Net cash received from subsidiaries and other operating
units
Pay other cash related to investment activities 405,500.00
Total cash outflows from investment activities 3,193,809.83 3,407,560.46
Net cash flow from investing activities 2,427,981.17 104,754,822.35
III. Cash Flows Generated from Financing Activities:
Cash received from absorbing investments
Among them: Cash received from subsidiaries upon
absorbing investments from minority shareholders
Cash received from borrowing funds 202,614,067.87 154,800,000.00
Cash received from borrowing funds
Total cash inflows from financing activities 202,614,067.87 154,800,000.00
Cash paid for repaying debts 214,800,000.00 87,800,000.00
Cash paid for distributing dividends, profits or paying 9,952,937.68 26,496,552.22
interest
Among them: Dividends and profits paid by the 14,846,600.00
subsidiary to the minority shareholders
Cash paid for other activities related to financing 1,287,438.87 3,914,258.88
Total cash outflows from financing activities 226,040,376.55 118,210,811.10
Net cash flow from financing activities -23,426,308.68 36,589,188.90
IV. Impact of Exchange Rate Fluctuations on Cash -4,867.97 2,715.47
and Cash Equivalents
V. Net increase in cash and cash equivalents -108,276,466.07 124,150,384.32
Add: Initial balance of cash and cash equivalents 288,328,064.43 164,177,680.11
VI. Balance of Cash and Cash Equivalents at the End 180,051,598.36 288,328,064.43
of the Period
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
statement of cash flow
Compiling unit: Nanjing Putian Communication Co., The year Unit of currency:
Ltd. 2025 RMB yuan
Item Notes 2025/12/31 2024/12/31
I. Cash flows from operating activities:
Cash received from the sale of goods and provision of 58,815,560.83 57,362,046.42
services
refund of tax and levies
Received other cash related to business operations 7,723,066.79 26,712,333.46
Total Cash Inflow from Operating Activities 66,538,627.62 84,074,379.88
Cash paid for the purchase of goods and the receipt of 40,092,496.37 87,124,609.23
services
Cash paid to employees and for the benefit of 33,154,872.88 35,981,718.30
employees
All sort fees as follow 4,351,257.54 3,123,122.39
Cash paid for other activities related to business 9,263,972.07 11,943,256.10
operations
Total cash outflows from operating activities 86,862,598.86 138,172,706.02
Net cash flow from operating activities -20,323,971.24 -54,098,326.14
II. Cash flows from investing activities:
Cash received from the withdrawal of investment 110,884,500.00
Cash received from investment income 9,153,400.00
Net cash received from the disposal of fixed assets, 5,553,791.00
intangible assets and other long-term assets
Net cash received from the disposal of subsidiaries and
other business units
Received other cash related to investment activities
Total Cash Inflow from Investment Activities 5,553,791.00 120,037,900.00
Cash paid for the purchase and construction of fixed 349,900.00 1,288,004.20
assets, intangible assets and other long-term assets
Cash paid for investment
Pay other cash related to investment activities 405,500.00
Total cash outflows from investment activities 349,900.00 1,693,504.20
Net cash flow from investing activities 5,203,891.00 118,344,395.80
III. Cash Flows Generated from Financing Activities:
Cash received from absorbing investments
Cash received from borrowing funds 101,564,067.87 30,000,000.00
Cash received from borrowing funds
Total cash inflows from financing activities 101,564,067.87 30,000,000.00
Cash paid for repaying debts 116,800,000.00 19,000,000.00
Cash paid for distributing dividends, profits or paying 7,854,627.18 8,675,468.55
interest
Cash paid for other activities related to financing 1,287,438.87 3,914,258.88
Total cash outflows from financing activities 125,942,066.05 31,589,727.43
Net cash flow from financing activities -24,377,998.18 -1,589,727.43
IV. Impact of Exchange Rate Fluctuations on Cash -4,867.97 2,715.47
and Cash Equivalents
V. Net increase in cash and cash equivalents -39,502,946.39 62,659,057.70
Add: Initial balance of cash and cash equivalents 76,018,337.62 13,359,279.92
VI. Balance of Cash and Cash Equivalents at the End 36,515,391.23 76,018,337.62
of the Period
(The attached financial statement notes are an integral
part of this financial statement.)
Legal Representative: counting
Director: Accounting Manager:
Nanjing Putian Communication Co., Ltd.
Notes to the 2025 Financial Statements
(Unless otherwise specified, the amount is in RMB yuan)
I. Company Overview
Nanjing Putian Communication Co., Ltd. (hereinafter referred to as the Company) originated from
the Nanjing Communication Equipment Factory under the Ministry of Posts and Telecommunications. On
March 21,1997, the State Economic System Reform Commission approved its establishment as a joint-
stock company through a public offering, as documented in Document No.28 [1997]. The Company was
registered with the Nanjing Administration for Industry and Commerce on May 18,1997, with its
headquarters located in Nanjing, Jiangsu Province. It holds a business license with the Unified Social
Credit Code 91320000134878054G, a registered capital of RMB 215,000,000.00, and a total of
shares and 100,000,000 B-shares. The Company's shares were listed for trading on the Shenzhen Stock
Exchange on May 22,1997.
Our company operates in the telecommunications equipment manufacturing sector. Our primary
business activities include: research, development, manufacturing, processing, and sales of data
communication, wired and wireless communication products, distribution and wiring communication
products, electronic products, multimedia computers, digital television systems, automotive electronics,
and high/low-voltage electrical switchgear; development, production, and distribution of new energy
vehicle charging solutions and components (including EV chargers, charging modules, charging station
systems, modular charging cabinets, outdoor integrated charging stations, AC/DC charging piles, and
related accessories); design and provision of comprehensive new energy charging/discharging solutions;
operation and maintenance of EV charging infrastructure; development and sales of software and
intelligent software platforms; IT services for smart city and elderly care applications; R&D,
manufacturing, sales, installation, and technical support for video equipment and video conferencing
systems; agency sales of communication-modified vehicles (excluding wholesale) with corresponding
after-sales services; design, system integration, and consulting services for communication networks and
computer information systems; design, construction, installation, and maintenance of intelligent building
systems; and leasing of owned assets such as properties and equipment.
This financial statement has been approved by the Company's Board of Directors on April 22,2026,
for public release.
II. Basis for Preparing Financial Statements
The financial statements of our company are prepared on a going concern basis, based on actual
transactions and events, in accordance with the Accounting Standards for Business Enterprises – Basic
Standards issued by the Ministry of Finance, various specific accounting standards, the Application
Guidelines for Accounting Standards for Business Enterprises, the Interpretations of Accounting Standards
for Business Enterprises, and other relevant regulations (collectively referred to as the "Accounting
Standards for Business Enterprises"), as well as the provisions of the China Securities Regulatory
Commission's Rules for the Preparation and Reporting of Information Disclosure by Companies Issuing
Securities Publicly No.15 – General Provisions for Financial Reports (2023 Revision).
In accordance with the relevant provisions of the Enterprise Accounting Standards, the Company's
accounting practices are based on the accrual basis. With the exception of certain financial instruments, all
financial statements are measured at historical cost. Where asset impairment occurs, corresponding
impairment provisions are recognized in accordance with applicable regulations.
This financial statement is prepared on a going concern basis, and the Company has maintained its
ability to continue as a going concern for at least 12 months from the end of the reporting period.
III. Key Accounting Policies and Accounting Estimates
The Company and its subsidiaries operate in the telecommunications equipment manufacturing
industry. In accordance with the actual characteristics of their production and operations and the relevant
accounting standards, the Company and its subsidiaries have established specific accounting policies and
estimates for various transactions and events, as detailed below.
The financial statements prepared by the Company comply with the requirements of the Enterprise
Accounting Standards and provide an accurate and complete reflection of the Company's consolidated and
parent company financial position as of December 31,2025, as well as the consolidated and parent
company operating results and consolidated and parent company cash flows for the year 2025.
The Company's accounting periods are divided into annual and interim periods, with the interim
period referring to a reporting period shorter than a full fiscal year. The Company adopts the Gregorian
calendar year for its fiscal year, which runs from January 1 to December 31 each year.
The company adopts a 12-month period as its operating cycle and uses it as the criterion for
classifying the liquidity of its assets and liabilities.
The Renminbi (RMB) serves as the currency used in the primary economic environment in which the
Company and its domestic subsidiaries operate, and both the Company and its domestic subsidiaries adopt
the RMB as their accounting currency. The currency employed by the Company in preparing these
financial statements is the Renminbi.
common control
A business combination refers to a transaction or event in which two or more separate entities merge
to form a single reporting entity. Business combinations are classified into combinations under common
control and combinations not under common control.
(1) Business combinations under common control
Enterprises participating in a merger are both subject to the ultimate control of the same party or the
same multiple parties before and after the merger, and such control is not temporary; thus, it constitutes a
merger under common control. In a merger under common control, the party that obtains control of the
other participating enterprises on the merger date is the merging party, while the other participating
enterprises are the merged parties. The merger date refers to the actual date on which the merging party
obtains control of the merged parties.
The assets and liabilities acquired by the enterprise in a business combination are measured at the
carrying values of the acquired entity's assets and liabilities (including goodwill formed by the ultimate
controlling party's acquisition of the acquired entity) as presented in the ultimate controlling party's
consolidated financial statements on the combination date. The difference between the carrying value of
the acquired net assets and the carrying value of the consideration paid for the combination (or the total
par value of the issued shares) shall be adjusted against the share capital premium in the capital reserve; if
the share capital premium in the capital reserve is insufficient to cover the reduction, the retained earnings
shall be adjusted accordingly.
The direct costs incurred by the merging party in carrying out the business combination shall be
recognized in profit or loss of the current period at the time of occurrence.
(2) Business combinations under different controls
A business combination is classified as a non-same-control combination if the participating
enterprises are not ultimately controlled by the same party or the same group of parties before and after the
combination. In a non-same-control combination, the party that obtains control of the other participating
enterprises on the acquisition date is the acquirer, while the other participating enterprises are the
acquirees. The acquisition date refers to the date when the acquirer actually gains control over the
acquirees.
For business combinations under different controls, the combination cost includes: the fair value of
assets acquired by the acquirer on the acquisition date to obtain control over the acquiree; liabilities
incurred or assumed; equity securities issued; audit fees, legal services, valuation consulting fees, and
other administrative expenses incurred during the combination, which are recognized in profit or loss at
their occurrence; transaction costs of equity or debt securities issued by the acquirer as consideration for
the combination, which are included in the initial recognition amount of such securities; contingent
consideration measured at its fair value on the acquisition date and included in the combination cost; and
any adjustments to contingent consideration required if new or additional evidence of conditions existing
at the acquisition date emerges within 12 months post-acquisition, which are reflected in the corresponding
adjustment to goodwill. The combination cost incurred by the acquirer and the identifiable net assets
acquired in the combination are measured at their fair values on the acquisition date. The difference
between the combination cost and the acquirer's share of the fair value of the acquiree's identifiable net
assets on the acquisition date is recognized as goodwill. If the combination cost is less than the acquirer's
share of the fair value of the acquiree's identifiable net assets, the fair values of all identifiable assets,
liabilities, and contingent liabilities of the acquiree, along with the combination cost itself, are re-examined.
Should the re-examined combination cost remain lower than the acquirer's share of the fair value of the
acquiree's identifiable net assets, the difference is recognized in profit or loss.
When the purchasing party acquires the deductible temporary differences of the purchased party that
were not recognized on the acquisition date due to non-compliance with the recognition criteria for
deferred tax assets, if new or additional information obtained within 12 months after the acquisition date
indicates that the relevant circumstances existed on the acquisition date and that the economic benefits
arising from the deductible temporary differences are expected to materialize, the relevant deferred tax
assets shall be recognized while reducing goodwill. If goodwill is insufficient to cover the reduction, the
difference shall be recognized in profit or loss for the period. In all other cases, deferred tax assets related
to business combinations shall be recognized and recognized in profit or loss for the period.
For business combinations under different controls that are implemented through multiple
transactions in stages and classified as "package transactions," accounting treatment shall be conducted in
accordance with the descriptions in the preceding paragraphs of this section and Note 3, Section 13,
"Long-term Equity Investments." For combinations not classified as "package transactions," separate
accounting treatments shall be applied to the individual financial statements and the consolidated financial
statements.
In specific financial statements, the initial investment cost of an investment is determined by the sum
of the carrying amount of the equity investment held in the acquiree prior to the acquisition date and the
additional investment cost incurred on that date. If the equity held in the acquiree prior to the acquisition
date involves other comprehensive income, the related other comprehensive income shall be accounted for
upon disposal of the investment using the same basis as would be applied when the acquiree directly
disposes of its assets or liabilities (i.e., except for the corresponding share of changes resulting from the re-
measurement of the defined benefit plan's net liability or net asset under the equity method, the remainder
is recognized in current period investment income).
In the consolidated financial statements, equity held in the acquiree prior to the acquisition date shall
be remeasured at its fair value on that date, with the difference between the fair value and the carrying
amount recognized in current period investment income. Where such equity involves other comprehensive
income, the corresponding other comprehensive income shall be accounted for using the same basis as
would apply to the acquiree's direct disposal of related assets or liabilities (i.e., except for the
corresponding share of changes in the net liability or net asset of the defined benefit plan resulting from its
remeasurement under the equity method, the remainder shall be recognized in current period investment
income attributable to the acquisition date).
Statements
(1) Criteria for Control Determination
The consolidation scope for financial statements is determined on a control basis. Control is defined
as the Company's possession of authority over the investee, enjoyment of variable returns through
participation in the investee's relevant activities, and the ability to influence the amount of such returns
through the exercise of such authority. This typically includes investee entities in which the parent
company holds more than half of the voting rights, and cases where the Company, although holding less
than half of the voting rights, through agreements with other investors of the investee, holds more than half
of the voting rights; the Company's authority under its articles of association or agreements to make
financial and operational decisions for the investee; its right to appoint or remove a majority of the
members of the investee's board of directors; and its control over the majority of voting rights in the
investee's board of directors.
(2) Methodology for preparing consolidated financial statements
From the date when the Company obtains actual control over the net assets and operational decision-
making rights of a subsidiary, it begins to include the subsidiary within its consolidated financial
statements; the inclusion ceases upon loss of actual control. For subsidiaries disposed of, the operating
results and cash flows prior to the disposal date have been appropriately reflected in the consolidated
income statement and consolidated cash flow statement; for subsidiaries disposed of during the current
period, no adjustments are made to the opening balances of the consolidated balance sheet. For
subsidiaries acquired in business combinations under different controls, their operating results and cash
flows after the acquisition date have been properly included in the consolidated income statement and
consolidated cash flow statement, with no adjustments required to the opening balances or comparative
figures of the consolidated financial statements. For subsidiaries acquired in business combinations under
common control, their operating results and cash flows from the beginning of the period prior to the
merger to the merger date have been appropriately reflected in the consolidated income statement and
consolidated cash flow statement, with corresponding adjustments made to the comparative figures of the
consolidated financial statements.
When preparing consolidated financial statements, if the accounting policies or accounting periods
used by the subsidiary differ from those of the parent company, the subsidiary's financial statements shall
be adjusted in accordance with the parent company's accounting policies and periods. For subsidiaries
acquired through business combinations under different controls, their financial statements shall be
adjusted based on the fair value of the identifiable net assets on the acquisition date.
All significant intercompany balances, transactions, and unrealized profits are offset when preparing
the consolidated financial statements.
The portion of the subsidiary's shareholders' equity and current net profit/loss not attributable to the
parent company is separately presented as minority interest and minority interest income under
shareholders 'equity and net profit in the consolidated financial statements. The share of the subsidiary's
current net profit/loss attributable to minority interests is disclosed under the "minority interest income"
item within the net profit line item of the consolidated income statement. If the loss attributable to
minority interests exceeds their share of the subsidiary's beginning shareholders' equity, this difference is
still recorded as a reduction in minority interest.
When control over an original subsidiary is lost due to the disposal of partial equity investments or
other reasons, the remaining equity interests shall be remeasured at their fair value on the date of loss of
control. The difference between the consideration received from the equity disposal and the fair value of
the remaining equity interests, minus the share of the subsidiary's net assets accumulated continuously
from the acquisition date calculated based on the original equity ratio, shall be recognized as investment
income for the period of loss of control. Other comprehensive income related to the original equity
investment shall be accounted for at the same basis as the direct disposal of the acquired party's assets or
liabilities (i.e., all amounts except those arising from changes in the net liability or net assets of the
original beneficial plan upon remeasurement) shall be transferred to current investment income.
Subsequently, the remaining equity interests shall be measured in accordance with applicable accounting
standards such as Accounting Standard for Business Enterprises No.2 – Long-term Equity Investments or
Accounting Standard for Business Enterprises No.22 – Recognition and Measurement of Financial
Instruments, as detailed in Note 3, Section 13 "Long-term Equity Investments" or Note 3, Section 10
"Financial Instruments."
When a company gradually disposes of its equity investments in subsidiaries through multiple
transactions until losing control, it must determine whether each transaction constitutes a package
transaction. The terms, conditions, and economic impacts of these individual transactions typically meet
one or more of the following criteria, indicating that they should be accounted for as a package transaction:
① The transactions were executed simultaneously or with mutual consideration; ② The transactions
collectively achieve a complete commercial outcome; ③ The occurrence of one transaction depends on
the occurrence of at least one other transaction; ④ An individual transaction is uneconomical but becomes
economical when considered collectively with other transactions. For transactions not constituting a
package transaction, each transaction shall be accounted for separately using the principles applicable to
"partial disposal of long-term equity investments in subsidiaries without loss of control" or "loss of control
over an original subsidiary due to partial equity disposal or other reasons." When the transactions
constitute a package transaction, they shall be accounted for as a single transaction involving subsidiary
disposal and loss of control. However, any difference between the transaction price at each disposal stage
prior to loss of control and the investor's share of the subsidiary's net assets shall be recognized as other
comprehensive income in the consolidated financial statements and transferred to the profit or loss at the
time of loss of control.
Operations
A joint venture arrangement refers to an arrangement jointly controlled by two or more parties. Based
on the rights and obligations it enjoys within such an arrangement, the Company classifies joint venture
arrangements into joint operation arrangements and joint venture enterprises. A joint operation
arrangement refers to one in which the Company holds the relevant assets and assumes the relevant
liabilities; a joint venture enterprise refers to one in which the Company holds only the rights to the net
assets of the arrangement.
The Company accounts for its investment in the joint venture using the equity method, in accordance
with the accounting policy specified in Note 3, Section 13(2)(ii), "Long-term Equity Investments
accounted for under the Equity Method."
As a joint venture partner in the joint operation, the Company recognizes the assets and liabilities
solely held or borne by the Company, as well as the jointly held assets and jointly borne liabilities based
on the Company's respective shares; recognizes the revenue generated from the sale of the Company's
share of the joint operation's output; recognizes the revenue arising from the sale of output under the joint
operation based on the Company's share; and recognizes the expenses incurred solely by the Company, as
well as the expenses incurred under the joint operation based on the Company's respective shares.
When the Company contributes or sells assets to the joint venture (such assets do not constitute
business operations, the same applies hereinafter), or purchases assets from the joint venture, prior to the
sale of such assets to a third party, the Company recognizes only the portion of the gains or losses arising
from such transaction attributable to the other participating parties in the joint venture. If such assets incur
asset impairment losses in accordance with the provisions of Accounting Standard for Business
Enterprises No.8 – Asset Impairment, the Company recognizes the full amount of such loss for
contributions or sales made by the Company to the joint venture, and recognizes the loss proportionally
based on its share for purchases made from the joint venture.
The Company's cash and cash equivalents consist of cash on hand, deposits readily available for
payment, and investments held by the Company that are short-term (typically maturing within three
months from the purchase date), highly liquid, easily convertible into a known amount of cash, and carry
minimal value fluctuation risk.
(1) Conversion method for foreign currency transactions
Foreign currency transactions conducted by the Company are converted into the local currency
amount at the spot exchange rate prevailing on the transaction date upon initial recognition. However,
foreign currency exchange operations or transactions involving foreign currency exchange are converted
into the local currency amount using the actual exchange rate applied.
(2) Conversion methods for foreign currency monetary items and foreign currency non-monetary
items
On the balance sheet date, foreign currency monetary items are converted using the spot exchange
rate prevailing at that date. The resulting exchange differences shall be recognized in profit or loss of the
current period, except for: ① exchange differences arising from foreign currency special borrowings
related to the acquisition or construction of assets meeting capitalization criteria, which are treated in
accordance with the principle of capitalizing borrowing costs; ② exchange differences arising from
changes in the carrying amounts of foreign currency monetary items available for sale (excluding the
amortized cost), which are recognized in other comprehensive income.
Non-monetary foreign currency items measured at historical cost are measured in the accounting
currency amount converted using the spot exchange rate on the transaction date. Non-monetary foreign
currency items measured at fair value are converted using the spot exchange rate on the fair value
determination date; the difference between the converted accounting currency amount and the original
accounting currency amount is recognized as fair value changes (including exchange rate fluctuations),
which are recorded in current period profit or loss or recognized as other comprehensive income.
A financial asset or financial liability is recognized when the company becomes a party to a financial
instrument contract.
(1) Classification, Recognition and Measurement of Financial Assets
Based on its business model for managing financial assets and the contractual cash flow
characteristics of these assets, the Company categorizes financial assets into: financial assets measured at
amortized cost; financial assets measured at fair value with changes recognized in other comprehensive
income; and financial assets measured at fair value with changes recognized in profit or loss.
Financial assets are measured at fair value upon initial recognition. For financial assets measured at
fair value with their changes recognized in profit or loss, related transaction costs are directly recognized
in profit or loss; for other categories of financial assets, related transaction costs are included in the initial
recognition amount. For accounts receivable or notes receivable arising from the sale of products or
provision of services that do not contain or involve significant financing components, the Company
recognizes the expected amount receivable as the initial recognition amount.
① Financial assets measured at amortized cost
The Company's business model for measuring financial assets at amortized cost is aimed at
generating contractual cash flows. The cash flow characteristics of such financial assets align with
standard lending arrangements, meaning that cash flows occurring on specific dates consist solely of
principal payments and interest calculated on the outstanding principal amount. For these financial assets,
the Company applies the effective interest method and subsequently measures them at amortized cost. Any
gains or losses arising from amortization or impairment are recognized in profit or loss for the period.
② Financial assets measured at fair value with changes recognized in other comprehensive income
The Company's business model for managing such financial assets combines both the objective of
collecting contractual cash flows and the objective of selling them, with the contractual cash flow
characteristics of these financial assets aligning with those of the underlying loan arrangements. The
Company measures such financial assets at fair value, with their changes recognized in other
comprehensive income; however, impairment losses or gains, exchange gains or losses, and interest
income calculated using the effective interest method are recognized in profit or loss for the period.
Furthermore, the Company classifies certain non-trading equity instrument investments as financial
assets measured at fair value with their changes recognized in other comprehensive income. Dividend
income from such financial assets is recognized in current period profit or loss, while fair value changes
are recognized in other comprehensive income. Upon derecognition of these financial assets, any
cumulative gains or losses previously recognized in other comprehensive income are transferred to
retained earnings and are no longer included in current period profit or loss.
③ Financial assets measured at fair value with changes recognized in profit or loss
The Company classifies the aforementioned financial assets measured at amortized cost and those
financial assets measured at fair value with their changes recognized in other comprehensive income as
financial assets measured at fair value with their changes recognized in current profit or loss. Furthermore,
at initial recognition, to eliminate or significantly reduce accounting mismatches, the Company designates
certain financial assets as financial assets measured at fair value with their changes recognized in current
profit or loss. For such financial assets, the Company subsequently measures them at fair value, with fair
value changes recognized in current profit or loss.
(2) Classification, Recognition and Measurement of Financial Liabilities
At initial recognition, financial liabilities are classified into financial liabilities measured at fair value
through profit or loss and other financial liabilities. For financial liabilities measured at fair value through
profit or loss, related transaction costs are directly recognized in profit or loss; for other financial liabilities,
related transaction costs are included in their initial recognition amount.
① Financial liabilities measured at fair value with changes recognized in profit or loss
Financial liabilities measured at fair value with changes recognized in profit or loss include trading
financial liabilities (including derivative instruments classified as financial liabilities) and those designated
at initial recognition to be measured at fair value with changes recognized in profit or loss.
Subsequent measurement of transactional financial liabilities (including derivatives classified as
financial liabilities) adopts fair value; except for portions related to hedge accounting, changes in fair
value are recognized in current profit or loss.
Designated as financial liabilities measured at fair value with changes recognized in profit or loss, the
fair value changes arising from the Company's own credit risk are recognized in other comprehensive
income. Upon derecognition of such liabilities, the cumulative fair value changes attributable to the
Company's own credit risk are transferred to retained earnings, while the remaining fair value changes are
recognized in profit or loss. If applying this treatment would create or exacerbate accounting mismatches
in the profit or loss, the Company shall recognize all gains or losses on these financial liabilities (including
the impact of the Company's own credit risk changes) in profit or loss.
②Other financial liabilities
Other financial liabilities—excluding those arising from financial asset transfers that do not meet the
criteria for derecognition or from continued involvement in the transferred financial assets, as well as
financial guarantee contracts—are classified as financial liabilities measured at amortized cost. Such
liabilities are subsequently measured at amortized cost, and any gains or losses resulting from
derecognition or amortization are recognized in profit or loss for the period.
(3) Basis for Recognition and Measurement Methods of Financial Asset Transfers
A financial asset shall be derecognized if any of the following conditions is met: ① The contractual
right to receive cash flows from the financial asset has terminated; ② The financial asset has been
transferred, with nearly all risks and rewards associated with its ownership transferred to the transferee; ③
The financial asset has been transferred, and although the enterprise has neither transferred nor retained
nearly all risks and rewards associated with its ownership, it has relinquished control over the financial
asset.
If an enterprise neither transfers nor retains nearly all the risks and rewards associated with the
ownership of a financial asset, nor relinquishes its control over that financial asset, then the relevant
financial asset shall be recognized based on the extent of its continued involvement with the transferred
financial asset, and the corresponding liability shall be recognized accordingly. The extent of continued
involvement refers to the level of risk faced by the enterprise due to fluctuations in the value of the
financial asset.
When the overall transfer of financial assets meets the conditions for derecognition, the difference
between the carrying amount of the transferred financial assets and the consideration received from the
transfer, and the cumulative fair value change previously recognized in other comprehensive income, shall
be recognized in profit or loss for the period.
When partial transfer of financial assets meets the conditions for derecognition, the carrying amount
of the transferred financial assets shall be allocated between the derecognized portion and the remaining
portion based on their respective fair values. The difference between the consideration received from the
transfer and the cumulative fair value changes originally recognized in other comprehensive income that
are allocated to the derecognized portion, minus the allocated carrying amounts, shall be recognized in
profit or loss for the period.
For financial assets sold with recourse or transferred by endorsement, the company must determine
whether nearly all risks and rewards associated with ownership of the financial asset have been transferred.
If nearly all risks and rewards associated with ownership have been transferred to the transferee, the
recognition of the financial asset shall be terminated; if nearly all risks and rewards remain retained, the
recognition shall not be terminated; if neither transfer nor retention of nearly all risks and rewards has
occurred, the company shall continue to assess whether it retains control over the asset and apply the
accounting treatment principles outlined in the preceding paragraphs.
(4) Termination of Recognition of Financial Liabilities
When the current obligation under a financial liability (or a portion thereof) has been discharged, the
Company derecognizes that financial liability (or that portion thereof). If the Company (the borrower)
enters into an agreement with the lender to replace the original financial liability with a new one, and the
contractual terms of the new financial liability are substantially different from those of the original, the
Company derecognizes the original financial liability and simultaneously recognizes a new financial
liability. If the Company makes substantial modifications to the contractual terms of the original financial
liability (or a portion thereof), the Company derecognizes the original financial liability and recognizes a
new financial liability under the modified terms.
When financial liabilities (or a portion thereof) are derecognized, the Company recognizes the
difference between their carrying amount and the consideration paid (including transferred non-cash assets
or assumed liabilities) in profit or loss for the period.
(5) Offsetting of financial assets and financial liabilities
When the Company has a statutory right to offset recognized amounts of financial assets and financial
liabilities, and such statutory right is currently enforceable, and the Company plans to settle the financial
assets and settle the financial liabilities simultaneously at net value, the financial assets and financial
liabilities shall be presented on the balance sheet at their net amount after mutual offset. Otherwise,
financial assets and financial liabilities shall be presented separately on the balance sheet without mutual
offset.
(6) Methods for determining the fair value of financial assets and financial liabilities
Fair value refers to the price that market participants would receive from selling an asset or pay to
transfer a liability in an orderly transaction on the measurement date. Where financial instruments have
active markets, the Company determines their fair value using quotes from such markets. Active market
quotes are prices readily available periodically from exchanges, brokers, industry associations, and pricing
service providers, reflecting actual market transactions conducted in fair dealing. For financial instruments
without active markets, the Company employs valuation techniques to determine fair value. These
techniques include referencing prices from recent market transactions conducted by knowledgeable and
voluntary parties, referencing the current fair values of substantially similar financial instruments,
applying the discounted cash flow method, and using option pricing models. In conducting valuations, the
Company selects valuation techniques applicable under current circumstances and supported by sufficient
available data and information, choosing input values consistent with those considered by market
participants in transactions involving the relevant assets or liabilities, with priority given to observable
inputs whenever possible. When observable inputs are unavailable or impractical to obtain, non-
observable inputs are utilized.
The Company applies impairment accounting treatment and recognizes loss provisions for financial
assets measured at amortized cost (including receivables), financial assets classified as measured at fair
value with changes recognized in other comprehensive income (including receivables financing), and lease
receivables, based on expected credit losses.
At each balance sheet date, the Company assesses whether the credit risk of relevant financial
instruments has increased significantly since initial recognition. The process of credit impairment for
financial instruments is divided into three stages, with distinct accounting treatment applied to
impairments at each stage: (1) Stage 1: If the credit risk of a financial instrument has not increased
significantly since initial recognition, the Company measures the loss provision based on the expected
credit loss over the next 12 months and calculates interest income using its carrying amount (i.e., before
impairment provision) and the actual interest rate; (2) Stage 2: If the credit risk has increased significantly
since initial recognition but no credit impairment has occurred, the Company measures the loss provision
based on the expected credit loss over the entire life of the financial instrument and calculates interest
income using its carrying amount and the actual interest rate; (3) Stage 3: If credit impairment occurs after
initial recognition, the Company measures the loss provision based on the expected credit loss over the
entire life of the financial instrument and calculates interest income using its amortized cost (carrying
amount minus the accrued impairment provision) and the actual interest rate.
(1) Method for measuring loss provisions for financial instruments with lower credit risk
For financial instruments with low credit risk at the balance sheet date, the Company may refrain
from comparing them with their credit risk at initial recognition and instead directly assume that the credit
risk of such instruments has not increased significantly since initial recognition.
If a financial instrument carries low default risk, the debtor demonstrates strong short-term capacity
to meet its contractual cash flow obligations, and even adverse economic or operational conditions over an
extended period do not necessarily impair the borrower's ability to fulfill these obligations, the instrument
is considered to have low credit risk.
(2) Method for measuring loss provisions for accounts receivable and lease receivables
① Receivables without significant financing components. For receivables arising from transactions
governed by Accounting Standard for Business Enterprises No.14 – Revenue that do not contain
significant financing components, the Company adopts a simplified approach, measuring loss provisions
consistently based on expected credit losses over the entire life cycle.
Based on the nature of financial instruments, the Company assesses whether credit risk has increased
significantly by evaluating individual financial assets or portfolios thereof. Receivable notes and accounts
receivable are categorized into specific portfolios according to their credit risk characteristics, and
expected credit losses are calculated on a portfolio basis. The criteria for portfolio determination are as
follows:
accounts receivable portfolio 1: Portfolio of related parties within the consolidated scope
Accounts Receivable Portfolio 2: Age Group Portfolio
receivables bill portfolio 1: receivable bank acceptance bills
receivables bill portfolio 2: Commercial acceptance bills receivable
For accounts receivable classified as portfolios, the Company refers to historical credit loss
experience, combined with the current situation and forecasts for future economic conditions, to prepare a
comparison table between the aging of accounts receivable and the expected credit loss rate over their
entire life cycle, thereby calculating the expected credit loss. For accounts receivable notes classified as
portfolios, the Company also utilizes historical credit loss experience, along with the current situation and
forecasts for future economic conditions, to calculate the expected credit loss based on default risk
exposure and the expected credit loss rate over their entire life cycle.
Accounts Receivable – Comparison Table of Age Groups and the Expected Credit Loss Rate Over
Their Full Life Cycle
Account Age Expected credit loss rate of accounts receivable (%)
Within 1 year (inclusive, same below) 1.00
More than 5 years 100.00
② Receivables and lease receivables containing significant financing components.
For receivables involving significant financing components and lease receivables governed by
Accounting Standard for Business Enterprises No.21 – Leasing, the Company measures loss provisions
using the general method, namely the "three-stage" model.
(3) Methods for measuring loss provisions on other financial assets
For financial assets other than those mentioned above—such as debt investments, other debt
investments, other receivables, and long-term receivables excluding lease receivables—the Company
measures loss provisions using the general method, namely the "three-stage" model.
When measuring credit impairment on financial instruments, our company considers the following
factors to determine whether credit risk has increased significantly:
The Company categorizes other receivables into several portfolios based on the nature of the amounts,
and calculates expected credit losses on a portfolio basis. The criteria for portfolio determination are as
follows:
Other Receivables Portfolio 1: Portfolio of Related Parties within the Consolidated Scope
Other Receivables Portfolio 2: Financing Margin Portfolio
Other Receivables Portfolio 3: Export Tax Refund Receivables Portfolio
To reflect changes in the credit risk of financial instruments after initial recognition, the Company re-
measures expected credit losses at each balance sheet date. The resulting increases or reversals in loss
provisions shall be recognized as impairment losses or gains in the current period's profit or loss.
Depending on the type of financial instrument, these amounts shall either reduce the carrying amount of
the financial asset on the balance sheet or be recognized as estimated liabilities or as other comprehensive
income (for debt investments measured at fair value with changes recognized in other comprehensive
income).
(1) Classification of Inventory
Inventories refer to the finished goods or commodities held by the Company for sale in its daily
operations, work-in-progress items, and materials consumed during production or service delivery. These
primarily include raw materials, consumables (such as packaging materials and low-value consumables),
materials processed under contract, work-in-progress, self-manufactured semi-finished products, and
finished goods (merchandise inventory).
(2) Pricing Method Used for Issuance
When inventory is issued, the actual cost is determined using the weighted average method at the end
of the month.
(3) The inventory counting system adopts the perpetual inventory method.
(4) Amortization method for low-value consumables and packaging materials
Low-value consumables are amortized using the straight-line method upon requisition; packaging
materials are also amortized using the straight-line method upon requisition.
(3) Criteria for Recognition and Provision Method for Inventory Impairment Losses
On the balance sheet date, inventory is measured at the lower of cost and net realizable value, with
impairment provisions calculated for each individual inventory item. For inventories that are numerous
and have low unit prices, impairment provisions are calculated based on inventory category.
On the balance sheet date, inventory is measured at the lower of cost and net realizable value, with
inventory impairment provisions recognized based on the difference between the cost and net realizable
value for each inventory category. For inventory directly intended for sale, its net realizable value is
determined during normal operations as the estimated selling price minus estimated selling expenses and
relevant taxes. For inventory requiring processing, its net realizable value is determined during normal
operations as the estimated selling price of the finished products minus estimated costs, selling expenses,
and relevant taxes incurred until completion. On the balance sheet date, for each component of the same
inventory that has a contract price and those without a contract price, their respective net realizable values
are determined and compared with their corresponding costs to calculate the amount of inventory
impairment provisions to be recognized or reversed.
The term "long-term equity investments" referred to in this section denotes those in which the
Company holds controlling, jointly controlling, or significant influence over the investee entity. Long-term
equity investments in which the Company does not hold controlling, jointly controlling, or significant
influence are accounted for as financial assets measured at fair value with changes recognized in profit or
loss. For non-trading investments, the Company may, at initial recognition, choose to classify them as
financial assets measured at fair value with changes recognized in other comprehensive income. The
accounting policy is detailed in Note 3, Section 10, "Financial Instruments."
Joint control refers to the Company's shared control over a specific arrangement under relevant
agreements, where decisions regarding activities under such arrangement require unanimous consent from
all parties sharing control rights. Significant influence means the Company has the authority to participate
in decision-making regarding the financial and operational policies of the investee entity, but lacks either
sole control or joint control with other parties over the formulation of these policies.
(1) Determination of Investment Costs
For long-term equity investments acquired through business combinations under common control, the
initial investment cost shall be determined on the combination date based on the share of the acquirer's
equity book value in the ultimate controlling party's consolidated financial statements. The difference
between the initial investment cost and the sum of cash payments, transferred non-cash assets, and
assumed debt book values shall be allocated to capital reserves; if capital reserves are insufficient, the
difference shall be adjusted against retained earnings. Where equity securities are issued as consideration
for the combination, the initial investment cost shall be calculated based on the acquirer's equity share in
the ultimate controlling party's consolidated financial statements, with the total par value of issued shares
recognized as share capital. The difference between the initial investment cost and the total par value of
issued shares shall be allocated to capital reserves; if capital reserves are insufficient, the difference shall
be adjusted against retained earnings.
For long-term equity investments acquired through business combinations under different controls,
the acquisition cost shall be recognized as the initial investment cost on the acquisition date. The
consolidation cost comprises the sum of assets contributed by the acquirer, liabilities incurred or assumed,
and the fair value of issued equity securities.
The intermediary fees incurred during business combinations—such as audit services, legal services,
valuation consulting, and other related administrative expenses—along with those of the merging entity or
purchaser, shall be recognized in profit or loss at the time of occurrence.
For other equity investments other than those arising from business combinations, the initial
measurement is made at cost. This cost is determined based on the method of acquisition of the long-term
equity investment, using either the actual cash payment made by the Company, the fair value of equity
securities issued by the Company, the value specified in the investment contract or agreement, the fair
value or original carrying amount of the assets exchanged in non-monetary asset transactions, or the fair
value of the long-term equity investment itself. Expenses, taxes, and other necessary expenditures directly
related to the acquisition of the long-term equity investment are also included in the investment cost.
(2) Subsequent Measurement and Profit/Loss Recognition Method
Long-term equity investments in investee entities that are jointly controlled (excluding cases where
they constitute joint operators) or significantly influenced shall be accounted for using the equity method.
Additionally, long-term equity investments in which the company exercises control over the investee
entity may be accounted for using the cost method in its financial statements.
① Long-term equity investments accounted for using the cost method
When using the cost method for accounting, long-term equity investments are valued at their initial
investment cost, with adjustments made to the cost upon additional investments or investment withdrawals.
Excluding cash dividends or profits declared but not yet distributed included in the actual payment or
consideration received upon investment acquisition, current investment income is recognized based on the
cash dividends or profits declared and distributed by the investee entity.
② Long-term equity investments accounted for using the equity method
When using the equity method for accounting, if the initial investment cost of a long-term equity
investment exceeds the investor's share of the fair value of the investee's identifiable net assets at the time
of investment, the initial investment cost shall not be adjusted; if the initial investment cost is less than the
investor's share of the fair value of the investee's identifiable net assets at the time of investment, the
difference shall be recognized in profit or loss for the period, and the cost of the long-term equity
investment shall be adjusted accordingly.
When applying the equity method of accounting, investment income and other comprehensive
income are recognized separately based on the investor's share of the investee's net profit or loss and other
comprehensive income, while simultaneously adjusting the carrying amount of long-term equity
investments. The investor's share of profits or cash dividends declared by the investee reduces the carrying
amount of long-term equity investments accordingly. For all other changes in the investee's owners 'equity
excluding net profit/loss, other comprehensive income, and profit distribution, the carrying amount of
long-term equity investments is adjusted and recorded in capital reserves. The recognition of the investor's
share of the investee's net profit/loss is based on the fair value of identifiable assets at the time of
investment, adjusted against the investee's net profit. Where the investee adopts accounting policies or
fiscal periods differing from those of the parent company, the investee's financial statements are adjusted
in accordance with the parent company's policies and periods, and investment income 及其他
comprehensive income are determined accordingly. For transactions between the parent company and
associates or joint ventures, if the assets disposed of do not constitute business operations, unrealized
internal transaction gains or losses are offset by the parent company's share calculated proportionally,
upon which investment income and other comprehensive income are recognized. However, unrealized
internal transaction losses between the parent company and the investee that constitute impairment losses
on transferred assets are not offset.
When recognizing the shareable portion of the net loss incurred by the investee, the recognition shall
be limited to the book value of the long-term equity investment and the reduction of other long-term
interests that substantially constitute a net investment in the investee to zero. Furthermore, if the Company
has an obligation to bear additional losses for the investee, an estimated liability shall be recognized and
recorded as an investment loss for the current period. If the investee generates net profit in subsequent
periods, the Company shall resume recognizing the share of profit after offsetting the unconfirmed loss-
sharing amount against the share of profit.
③ Acquisition of minority equity
When preparing consolidated financial statements, the difference between the newly added long-term
equity investment resulting from the acquisition of minority interests and the subsidiary's net asset share
calculated based on the new shareholding ratio, which is continuously accrued from the acquisition date
(or consolidation date), shall be adjusted against the capital reserve. If the capital reserve is insufficient,
the difference shall be offset against retained earnings.
④ Disposal of long-term equity investments
In consolidated financial statements, when the parent company partially disposes of its long-term
equity investments in subsidiaries without losing control, the difference between the disposal proceeds and
the subsidiary's net assets corresponding to the disposed long-term equity investment is recognized in
shareholders' equity. If the partial disposal results in the parent company losing control over the subsidiary,
the transaction shall be accounted for in accordance with the relevant accounting policies specified in Note
Statements."
For the disposal of long-term equity investments under other circumstances, the difference between
the carrying value of the disposed equity and the actual consideration received shall be recognized in profit
or loss for the period.
For long-term equity investments accounted for using the equity method, if the remaining equity
interests after disposal continue to be accounted for using the equity method, the portion of other
comprehensive income originally recorded in shareholders 'equity shall be accounted for at the
corresponding ratio using the same basis as that applied when the investee directly disposed of related
assets or liabilities at the time of disposal. All changes in owners' equity attributable to the investee's
owner's equity other than net profit or loss, other comprehensive income, and profit distribution shall be
transferred to the current period profit or loss in proportion.
For long-term equity investments accounted for using the cost method, if the remaining equity after
disposal continues to be accounted for using the cost method, the other comprehensive income recognized
prior to obtaining control over the investee—whether from the equity method or from the financial
instruments recognition and measurement standards—shall be accounted for using the same basis as the
direct disposal of related assets or liabilities of the investee and transferred proportionally to current period
profit or loss; all other changes in owners 'equity within the investee's net assets recognized under the
equity method, excluding net profit or loss, other comprehensive income, and profit distribution, shall also
be transferred proportionally to current period profit or loss.
When a company loses control over an investee due to the disposal of a portion of its equity
investments, and the remaining equity after disposal can exercise joint control or significant influence over
the investee during the preparation of individual financial statements, the equity method shall be applied,
with the remaining equity adjusted as if it had been accounted for using the equity method from
acquisition. If the remaining equity after disposal cannot exercise joint control or significant influence over
the investee, accounting treatment shall comply with the relevant provisions of the Financial Instruments
Recognition and Measurement Standards, and the difference between the fair value and book value of the
equity at the date of loss of control shall be recognized in profit or loss for the period. For other
comprehensive income recognized prior to the company obtaining control over the investee under either
the equity method or the Financial Instruments Recognition and Measurement Standards, the accounting
treatment shall follow the same basis as the direct disposal of related assets or liabilities by the investee
upon loss of control. All changes in owners 'equity attributable to the equity method—excluding net
profit/loss, other comprehensive income, and profit distribution—shall be transferred to profit or loss upon
loss of control. Specifically: if the remaining equity after disposal is accounted for using the equity method,
other comprehensive income and other owners' equity are transferred proportionally; if the remaining
equity is accounted for under the Financial Instruments Recognition and Measurement Standards, both
other comprehensive income and other owners' equity are fully transferred.
When a company loses joint control or significant influence over an investee due to the disposal of a
portion of its equity investment, the remaining equity interest after disposal shall be accounted for in
accordance with the Financial Instruments Recognition and Measurement Standards. The difference
between the fair value and the carrying value of the equity interest on the date of loss of joint control or
significant influence shall be recognized in profit or loss for the period. Other comprehensive income
recognized from the original equity investment under the equity method shall be accounted for under the
same basis as the direct disposal of related assets or liabilities by the investee upon termination of the
equity method. All changes in owners 'equity attributable to the investee's own equity other than net profit
or loss, other comprehensive income, and profit distribution shall be fully transferred to investment
income for the period upon termination of the equity method.
Investment property refers to real estate held for the purpose of generating rental income, capital
appreciation, or both. This includes leased land use rights, land use rights held with plans for appreciation
and subsequent transfer, and leased buildings.
Investment property is initially measured at cost. Subsequent expenditures related to investment
property shall be included in the cost of the asset if the economic benefits associated with the asset are
likely to flow and the cost can be reliably measured. Other subsequent expenditures shall be recognized in
profit or loss at the time they occur.
When an investment property is disposed of, permanently withdrawn from use, and it is expected that
no economic benefits will be derived from its disposal, the recognition of such investment property is
terminated. The proceeds from the disposal of an investment property—whether through sale, transfer,
scrapping, or damage—after deducting its carrying amount and relevant taxes and fees shall be recognized
in the current period's profit or loss.
(1) Conditions for recognizing fixed assets
Fixed assets refer to tangible assets held for the purpose of producing goods, providing services,
leasing, or operating and managing, with a useful life exceeding one accounting year. Fixed assets are
recognized only when it is probable that the economic benefits associated with them will flow to the
company and their costs can be reliably measured. Fixed assets are initially measured at cost, taking into
account the impact of estimated disposal costs.
(2) Depreciation methods for various types of fixed assets
For fixed assets, depreciation is calculated using the straight-line method over their service life,
starting from the month following the achievement of the intended usable condition. The service life,
estimated residual value, and annual depreciation rate for various types of fixed assets are as follows:
ratio of yearly
method of Depreciation
class remaining depreciation
depreciation period (years)
value （%） （%）
Houses and Buildings Annual Average 15-35 3.00 2.77-6.47
Method
machinery equipment Annual Average 10-15 3.00 6.47-9.70
Method
conveyance Annual Average 6-8 3.00 12.13-16.17
Method
Electronic Equipment Annual Average 4-11 3.00 8.82-24.25
Method
other Annual Average 4-11 3.00 8.82-24.25
Method
The estimated residual value refers to the amount obtained by the Company from the disposal of an
asset after deducting estimated disposal costs, assuming the fixed asset has reached the end of its estimated
useful life and is in its expected condition at that point.
(3) Methods for impairment testing of fixed assets and methods for making impairment provisions
For details on the impairment testing methods for fixed assets and the impairment provision
calculation methods, refer to Note 3, Section 19 "Impairment of Long-term Assets".
(4) Other Notes
Subsequent expenditures related to fixed assets shall be recognized in the cost of the fixed asset if the
economic benefits associated with the asset are likely to flow and their costs can be reliably measured,
thereby eliminating the carrying amount of the replaced portion. All other subsequent expenditures shall
be recognized in profit or loss at the time they occur.
When a fixed asset is being disposed of or is expected to generate no economic benefits through use
or disposal, its recognition is terminated. The difference between the disposal proceeds from the sale,
transfer, scrapping, or damage of the fixed asset and its carrying amount, after deducting relevant taxes
and fees, is recognized in profit or loss for the period.
The Company shall review the service life, estimated net residual value, and depreciation method of
fixed assets at least once at the end of each fiscal year. Any changes made shall be treated as adjustments
to accounting estimates.
The Company's construction-in-progress projects are categorized into two types: self-construction
and contracted construction. Upon completion of the projects and attainment of their intended usable
condition, they are recognized as fixed assets. The determination of the intended usable condition shall
meet one of the following criteria: (1) The physical construction (including installation) of the fixed asset
has been fully completed or substantially completed; (2) The asset has undergone trial production or trial
operation, with results demonstrating its ability to operate normally or produce qualified products stably;
or (3) The trial operation results indicate its capability for normal operation or business activities; (4)
Expenditures on the fixed asset under construction are minimal or virtually non-existent; or (5) The
acquired fixed asset meets the design or contractual requirements, or is substantially consistent with such
requirements.
When the construction-in-progress reaches its intended usable condition, it is transferred to fixed
assets at the project's actual cost. For projects that have reached the intended usable condition but have not
yet completed final accounting, they are initially recorded as fixed assets at estimated value; the original
provisional estimate is adjusted to reflect the actual cost after final accounting is completed, while
previously accrued depreciation remains unchanged.
For details on the impairment testing methodology and impairment provision calculation method for
construction in progress, refer to Note 3, Section 19 "Impairment of Long-term Assets."
Loan costs comprise borrowing interest, amortization of discounts or premiums, ancillary expenses,
and exchange differences arising from foreign currency borrowings. Loan costs directly attributable to the
acquisition, construction, or production of assets meeting capitalization criteria shall be capitalized when
asset expenditures have been incurred, borrowing costs have been recognized, and the necessary
acquisition, construction, or production activities to bring the asset to its intended usable or saleable state
have commenced; capitalization shall cease when such assets reach their intended usable or saleable state.
Other borrowing costs are recognized as expenses in the period in which they are incurred.
For special loans, the actual interest expenses incurred during the period shall be capitalized after
deducting the interest income generated from depositing unused loan funds in banks or the investment
returns obtained from temporary investments. For general loans, the capitalizable amount is determined by
multiplying the weighted average of cumulative asset expenditures exceeding those of special loans by the
capitalization rate applicable to the utilized general loans. The capitalization rate is calculated based on the
weighted average interest rate of general loans.
During the capitalization period, all exchange differences on foreign currency special loans are
capitalized; exchange differences on foreign currency general loans are recognized in profit or loss for the
period.
Assets meeting capitalization criteria refer to fixed assets, investment properties, and inventories that
require a considerable period of acquisition, construction, or operational activities to reach their intended
usable or saleable state.
If an asset meeting capitalization criteria experiences an abnormal interruption during its acquisition,
construction, or production process, and the interruption lasts continuously for more than three months, the
capitalization of borrowing costs shall be suspended until the asset's acquisition, construction, or
production activities resume.
Assets meeting capitalization criteria refer to fixed assets, investment properties, and inventories that
require a considerable period of acquisition, construction, or operational activities to reach their intended
usable or saleable state.
(1) Intangible Assets
Intangible assets refer to identifiable non-monetary assets owned or controlled by the Company that
lack physical form.
Intangible assets are initially measured at cost. Expenditures related to intangible assets are
recognized in the cost of the intangible assets if the associated economic benefits are likely to flow to the
company and their costs can be reliably measured. Expenditures on other items are recognized in profit or
loss at the time they occur.
The acquired land use rights are typically accounted for as intangible assets. When a company
independently develops and constructs buildings such as factory facilities, the related land use right
expenditures and building construction costs are accounted for separately as intangible assets and fixed
assets, respectively. For purchased buildings and structures, the corresponding purchase price is allocated
between the land use rights and the buildings; if an equitable allocation is not feasible, the entire amount is
treated as fixed assets.
For intangible assets with a finite useful life, the amortization base is calculated as the original cost
minus the estimated net residual value and the cumulative amount of impairment provisions accumulated,
and amortization is performed on an average basis over the estimated useful life using the straight-line
method from the point when the asset becomes available for use. Intangible assets with an indefinite useful
life are not amortized.
The useful life, determination basis, and amortization method for intangible assets with finite useful
lives are as follows:
project life length Amortization Method
software 3-10 Linear method for stage averaging
land use right 40-50 Linear method for stage averaging
At the end of the period, the useful life and amortization method of intangible assets with a finite
useful life are reviewed; any changes are treated as adjustments to accounting estimates. Additionally, the
useful life of intangible assets with an indefinite useful life is reviewed. If evidence indicates that the
period during which the intangible asset generates economic benefits is foreseeable, its useful life is
estimated and amortized using the amortization method applicable to intangible assets with a finite useful
life.
(2) Research and Development Expenses
The expenditures for our company's internal research and development projects are categorized into
research phase expenditures and development phase expenditures.
Expenses incurred during the research phase are recognized in profit or loss for the period in which
they occur.
The scope of R&D expenditure aggregation for our company includes materials consumed for R&D,
intermediate trial costs, travel expenses, design fees, depreciation and amortization, employee
compensation, and other items.
The company's specific criteria for distinguishing between research phase expenditures and
development phase expenditures in internal R&D projects:
The research phase refers to the stage of conducting original, planned investigations and research
activities aimed at acquiring and understanding new scientific or technological knowledge; the
development phase involves applying research findings or other knowledge to specific plans or designs
prior to commercial production or application, resulting in the creation of new or substantially improved
materials, devices, or products.
Expenses incurred during the development phase shall be recognized as intangible assets if all the
following conditions are met; otherwise, such expenses shall be recognized in profit or loss for the current
period.
① It is technically feasible to complete the intangible asset so that it can be used or sold;
② Intends to complete the acquisition of the intangible asset and use or sell it;
③ The ways in which intangible assets generate economic benefits include: demonstrating that
products manufactured using such assets have a market, or that the intangible assets themselves have a
market; or, when the assets are used internally, proving their utility.
④ Possess sufficient technical, financial, and other resources to complete the development of the
intangible asset, and have the capability to utilize or sell it;
⑤ The expenditures incurred during the development stage of this intangible asset can be reliably
measured.
Where it is impossible to distinguish between expenditures incurred during the research phase and
those during the development phase, all research and development expenditures shall be included in the
current period's profit or loss.
(3) Methods for testing impairment of intangible assets and for recognizing impairment losses
For details on the impairment testing methods for intangible assets and the impairment provision
calculation methods, refer to Note 3, Section 19 "Impairment of Long-term Assets".
For non-current non-financial assets—including fixed assets, construction in progress, intangible
assets with finite useful lives, right-of-use assets, investment properties measured at cost, and long-term
equity investments in subsidiaries, joint ventures, and associates—the Company assesses for impairment
indications on the balance sheet date. Where impairment indications exist, the recoverable amount is
estimated and an impairment test is conducted. Goodwill, intangible assets with indefinite useful lives, and
intangible assets that have not yet reached their usable state undergo annual impairment testing regardless
of the presence of impairment indications.
The impairment assessment results indicate that when an asset's recoverable amount falls below its
carrying value, an impairment loss is recognized based on the difference. The recoverable amount is
defined as the higher of: the net amount of the asset's fair value less disposal costs, or the present value of
the asset's estimated future cash flows. The fair value of an asset is determined by the transaction price in a
fair market transaction; where no transaction agreement exists but the asset has an active market, the fair
value is determined by the highest bid price; where neither a transaction agreement nor an active market
exists, the fair value is estimated using the best available information. Disposal costs include legal fees,
applicable taxes, handling charges, and direct expenses incurred to prepare the asset for sale. The present
value of future cash flows is calculated by discounting the projected cash flows generated during the
asset's useful life and upon final disposal using an appropriate discount rate. Impairment provisions are
calculated and recognized on an individual asset basis; when estimating the recoverable amount of an
individual asset is difficult, the recoverable amount is determined for the asset group to which the asset
belongs—the smallest identifiable group of assets capable of generating independent cash flows.
Goodwill separately presented in financial statements shall, during impairment testing, have its
carrying amount allocated to the asset groups or combinations of asset groups expected to benefit from the
synergies arising from the business combination. If the test results indicate that the recoverable amount of
the asset group or combination of asset groups containing the allocated goodwill is lower than its carrying
amount, the corresponding impairment loss shall be recognized. The impairment loss amount shall first be
deducted from the carrying amount of the goodwill allocated to that asset group or combination, and then
proportionally deducted from the carrying amounts of the other assets within the asset group or
combination based on their respective share of the total carrying amount excluding goodwill.
Once the aforementioned asset impairment loss is recognized, the portion of value recovered cannot
be reversed in subsequent periods.
Long-term prepaid expenses refer to various costs that have already been incurred but should be
allocated over the reporting period and subsequent periods, with an amortization period exceeding one
year. The Company's long-term prepaid expenses primarily consist of renovation costs. These expenses
are amortized using the straight-line method over their estimated benefit period.
Contract liabilities refer to the obligation of the Company to deliver goods to customers for which the
Company has received or is due to receive consideration from them. If the customer has paid the contract
consideration or the Company has acquired an unconditional right to receive payment prior to the delivery
of goods, the Company recognizes such received or receivable amounts as contract liabilities at the earlier
of the customer's actual payment date or the due payment date. Contract assets and contract liabilities
under the same contract are presented on a net basis; those under different contracts are not offset against
each other.
The company's employee compensation primarily consists of short-term employee compensation,
post-employment benefits, termination benefits, and other long-term employee benefits. Specifically:
Short-term compensation primarily includes wages, bonuses, allowances and subsidies, employee
welfare expenses, medical insurance premiums, maternity insurance premiums, work-related injury
insurance premiums, housing provident fund contributions, trade union funds, employee education funds,
and non-monetary benefits. During the accounting period in which employees provide services to the
company, the actual short-term employee compensation incurred is recognized as a liability and recorded
in the current period's profit or loss or the cost of related assets. Non-monetary benefits are measured at
fair value.
Post-employment benefits primarily include basic pension insurance, unemployment insurance, and
annuities. Post-employment benefit plans consist of defined contribution plans and defined benefit plans.
For defined contribution plans, the corresponding contribution amounts are recognized either as part of the
asset cost or recorded in the current period's profit or loss upon occurrence.
When terminating the employment relationship with an employee before the expiration of the labor
contract, or when proposing compensation to encourage voluntary workforce reduction, the employee
compensation liability arising from such termination shall be recognized and recognized in profit or loss at
the earlier of: (1) the date on which the company cannot unilaterally withdraw the termination benefits
provided under the employment termination plan or reduction proposal; or (2) the date on which the
company confirms the costs associated with the restructuring involving the payment of such termination
benefits. However, if the termination benefits are not expected to be fully paid within twelve months
following the end of the annual reporting period, they shall be treated as other long-term employee
benefits.
The internal employee retirement plan follows the same principles as the aforementioned severance
benefits. For employees who opt for early retirement, the company will recognize the wages payable and
social insurance contributions accrued from the date of service termination until the normal retirement date
as current period expenses (severance benefits) when the conditions for recognizing estimated liabilities
are met.
Other long-term employee benefits provided by the Company shall be accounted for under the
defined contribution plan where applicable, and otherwise under the defined benefit plan.
When obligations arising from contingent matters such as external guarantees, litigation matters,
product quality guarantees, or loss contracts become current obligations assumed by the Company, and the
fulfillment of such obligations is likely to result in an outflow of economic benefits from the Company,
with the amount of these obligations being reliably measurable, the Company recognizes such obligations
as estimated liabilities.
The Company initially measures its estimated liabilities based on the best estimate of expenditures
required to fulfill relevant current obligations and reviews the carrying amount of these liabilities at the
balance sheet date.
If the entire or partial expenditure required to settle an estimated liability is expected to be
compensated by a third party, the compensation amount shall be recognized separately as an asset when it
is essentially certain that it will be received, provided that the recognized compensation amount does not
exceed the carrying amount of the estimated liability.
The Company recognizes revenue when fulfilling its performance obligations under the contract—
that is, upon the customer obtaining control of the relevant goods or services—in accordance with the
transaction price allocated to such performance obligation. Acquisition of control of the relevant goods
refers to the ability to dominate their use and derive nearly all economic benefits therefrom. A
performance obligation denotes the Company's commitment under the contract to transfer clearly
identifiable goods to the customer. The transaction price represents the amount of consideration the
Company expects to receive for transferring the goods to the customer, excluding payments received on
behalf of a third party and amounts the Company expects to refund to the customer.
Whether a performance obligation is fulfilled over a specific period or at a specific point in time
depends on the contract terms and relevant legal provisions. If the obligation is fulfilled over a period, the
Company recognizes revenue based on the progress of performance. Otherwise, the Company recognizes
revenue at the point when the customer obtains control of the relevant assets.
For performance obligations stipulated in sales contracts for engineering construction and
maintenance services that meet the condition of "performance within a specified period," revenue is
recognized based on the progress of performance, unless the progress cannot be reasonably determined.
The Company uses the input method to determine the contract performance progress as the ratio of the
cumulative contract costs incurred to the contract target cost. If the progress cannot be reasonably
determined but the incurred costs are expected to be fully recovered, the Company recognizes revenue
based on the amount of incurred costs until the progress can be reasonably determined.
The sales of video conferencing products, integrated wiring products, intelligent electrical products,
communication infrastructure products, and other products constitute performance obligations fulfilled at a
specific point in time. Revenue recognition for these products requires the following conditions: the
company has delivered the products to the buyer as stipulated in the contract and obtained the buyer's
acceptance; the product sales revenue amount has been determined; payment has been received or
payment vouchers have been obtained; it is probable that the related economic benefits will materialize;
and the costs associated with the products can be reliably measured.
Contract costs are divided into contract performance costs and contract acquisition costs.
The costs incurred by the Company in fulfilling the contract shall be recognized as an asset for
contract performance costs only when the following conditions are simultaneously met:
(1) This cost is directly related to a current or expected contract, including direct labor, direct
materials, manufacturing overhead (or similar expenses), costs explicitly borne by the client, and other
costs incurred solely for that contract;
(2) This cost increases the resources the enterprise will allocate in the future to fulfill its performance
obligations;
(3) This cost is expected to be recovered.
When the incremental costs incurred by the Company to obtain a contract are expected to be
recovered, they shall be recognized as part of the contract acquisition cost and classified as an asset;
however, if the amortization period of such asset does not exceed one year, the cost may be recognized in
profit or loss at the time of occurrence.
Assets related to contract costs are amortized using the same basis as the revenue recognition from
goods or services associated with those assets.
For assets related to contract costs, if their carrying value exceeds the sum of the following two
amounts, the Company shall recognize an impairment loss on the excess amount and record it as an asset
impairment loss:
(1) The remaining consideration expected to be received from the transfer of goods or services related
to the asset;
(2) The estimated costs incurred for transferring the relevant goods or services.
Where the aforementioned asset impairment provision is subsequently reversed, the revised book
value of the asset shall not exceed its book value on the reversal date under the assumption that no
impairment provision was recognized.
Government grants refer to monetary and non-monetary assets obtained by the Company from the
government without compensation, excluding capital invested by the government as an investor with
corresponding owner's equity. Government grants are categorized into asset-related grants and revenue-
related grants. When government grants consist of monetary assets, they are measured at the amount
received or receivable. For non-monetary assets, they are measured at fair value; if fair value cannot be
reliably determined, they are measured at nominal amount. Government grants measured at nominal
amount are directly recognized in profit or loss for the period.
Government grants related to assets are recognized as deferred income and are allocated to current
period earnings over the useful life of the relevant assets using a reasonable and systematic method.
Government grants related to income that are intended to compensate for future costs, expenses, or losses
are recognized as deferred income and are recognized in current period earnings when the corresponding
costs, expenses, or losses are recognized; those intended to compensate for incurred costs, expenses, or
losses are recognized directly in current period earnings.
Government grants that encompass both asset-related components and revenue-related components
should be accounted for separately; where differentiation is difficult, they should be collectively classified
as revenue-related government grants.
Government grants related to the company's daily operations shall be recognized as other income or
deducted from relevant costs and expenses based on the substance of the economic transactions;
government grants unrelated to daily operations shall be recorded as non-operating income or expenses.
When confirmed government grants need to be refunded, if there is a relevant deferred income
balance, the corresponding deferred income balance shall be offset; any excess amount shall be recognized
in current period profit or loss. In other cases, the amount shall be directly recognized in current period
profit or loss.
The deferred income tax asset or liability is recognized based on the difference between the carrying
amount of assets and liabilities and their tax basis (for items not recognized as assets or liabilities, where
their tax basis can be determined in accordance with tax laws, the difference between the tax basis and the
carrying amount), calculated using the applicable tax rate during the period when the asset is expected to
be recovered or the liability settled.
Deferred tax assets shall be recognized only to the extent that it is probable that sufficient taxable
income will be available to offset deductible temporary differences. At the balance sheet date, if there is
conclusive evidence that sufficient taxable income is likely to be available in future periods to offset such
differences, deferred tax assets previously unrecognized in prior accounting periods shall be recognized.
On the balance sheet date, review the carrying amount of deferred tax assets. If it is probable that
sufficient taxable income will not be available in future periods to realize the benefits of these deferred tax
assets, reduce their carrying amount. When sufficient taxable income is likely to be obtained, reverse the
reduction amount.
The Company's current income tax and deferred income tax are recognized as income tax expenses or
income in the current period's profit or loss, excluding income tax arising from the following transactions:
business combinations; or transactions or events recognized directly in owners' equity.
When the company holds statutory rights for net settlement and intends to conduct both net settlement
or acquisition of assets and settlement of liabilities simultaneously, its current income tax assets and
liabilities shall be reported at the net amount after offsetting.
（1） Our company acts as the lessee.
The leased assets of our company are primarily mechanical equipment.
On the lease commencement date, the Company recognizes right-of-use assets and lease liabilities for
leases other than short-term leases and low-value asset leases, and recognizes depreciation expenses and
interest expenses separately over the lease term.
During the lease term, our company applies the straight-line method, recognizing the lease payments
for short-term leases and low-value asset leases as current period expenses.
① Right-to-use asset
Right-of-use assets refer to the rights granted to the lessee to use the leased asset during the lease
term. At the commencement date of the lease term, right-of-use assets are initially measured at cost. This
cost includes: ① the initial measurement amount of the lease liability; ② lease payments made on or
before the lease commencement date; if lease incentives are applicable, the amount of such incentives
already received shall be deducted; ③ the lessee's initial direct costs; ④ the costs expected to be incurred
by the lessee for dismantling and removing the leased asset, restoring the premises where the asset is
located, or returning the asset to the condition specified in the lease terms.
The Company uses the straight-line method for the classification and calculation of depreciation on
its right-of-use assets. For leases where it is reasonably certain that ownership of the leased asset will be
acquired upon lease expiration, depreciation is calculated over the asset's estimated remaining useful life;
for leases where this certainty is lacking, depreciation is calculated over the shorter of the lease term and
the asset's remaining useful life.
The Company determines whether right-of-use assets have experienced impairment and performs the
corresponding accounting treatment in accordance with the relevant provisions of Accounting Standard for
Business Enterprises No.8 – Asset Impairment.
② lease obligation
Lease liabilities are initially measured at the present value of the outstanding lease payments as of the
lease commencement date. Lease payments include: ① fixed payments (including substantially fixed
payments); where lease incentives exist, the amount related to such incentives is deducted; ② variable
lease payments dependent on indices or ratios; ③ amounts payable based on the residual value of
guarantees provided by the lessee; ④ the exercise price of a purchase option, provided the lessee
reasonably determines to exercise such option; ⑤ amounts payable for exercising the lease termination
option, provided the lease term reflects the lessee's intention to exercise such option.
The Company uses the lease embedded interest rate as the discount rate; if the lease embedded
interest rate cannot be reasonably determined, the Company's incremental borrowing interest rate is used
as the discount rate. The Company calculates the interest expense on lease liabilities for each period of the
lease term using a fixed periodic interest rate and records it as financial expense. This periodic interest rate
refers to the discount rate or the revised discount rate adopted by the Company.
Variable lease payments not included in the measurement of lease liabilities are recognized in profit
or loss at the actual occurrence.
When the valuation results for the lease renewal option, lease termination option, or purchase option
change, the lease liability shall be remeasured using the present value calculated based on the revised lease
payments and the updated discount rate, with the carrying amount of the right-of-use asset adjusted
accordingly. If there are changes in material lease payments, the estimated payable amount of the residual
value of the guarantee, or variable lease payments dependent on indices or ratios, the lease liability shall
be remeasured using the present value calculated based on the revised lease payments and the original
discount rate, and the carrying amount of the right-of-use asset shall be adjusted accordingly.
③ Short-term leasing and leasing of low-value assets
For short-term leases (those with a lease term not exceeding 12 months on the lease commencement
date) and low-value assets (valued below RMB 2,000), the Company adopts a simplified approach: it does
not recognize right-of-use assets or lease liabilities, but instead allocates lease payments over each period
of the lease term using the straight-line method or another systematic and reasonable method to the cost of
the relevant assets or to the current period's profit or loss.
（2） Our company acts as the lessor.
The Company uses the straight-line method to recognize lease receivables from operating leases as
rental income for each period of the lease term. Variable lease payments related to operating leases that
have not been included in the lease receivables are recognized in profit or loss when actually incurred.
On the lease commencement date, the Company recognizes the receivable from the financial lease
and derecognizes the financial lease asset. The receivable from the financial lease is initially measured at
the net lease investment amount (the sum of the unguaranteed residual value and the present value of lease
receivables not yet received at the lease commencement date, discounted at the lease's effective rate), and
interest income for the lease term is recognized at a fixed periodic rate. Variable lease payments received
by the Company that are not included in the net lease investment amount are recognized in profit or loss
when actually incurred.
Disclosures related to the criteria for Methods for Determining and Selection Criteria for
determining materiality Importance Standards
When the amount exceeds 5% of the corresponding
receivables for which significant
accounts receivable and surpasses RMB 4 million, or
individual provisions for bad debts have
when the provision for bad debts in the current period
been made
affects profit and loss figures.
The reversal of bad debt provisions affects more than
Recovery or reversal of provisions for
doubtful accounts on important
amount, with the amount exceeding RMB 1 million, or
receivables
influences the current period's profit and loss.
Significant accounts payable and other More than 5% of the accounts payable or other
payables with an aging period exceeding payables balance, with an amount exceeding RMB 1
one year million
Minority shareholders hold more than 5% of the equity,
Subsidiaries in which minority
and their total assets, net assets, operating revenue, and
shareholders hold significant equity
net profit account for over 10% of the corresponding
interests
items in the consolidated financial statements.
The book value accounts for more than 10% of the
long-term equity investment, or the investment income
Important joint venture or cooperative
(losses calculated in absolute terms) derived from joint
enterprise
ventures or associated enterprises accounts for more
than 10% of the consolidated net profit.
The total assets or total liabilities account for more than
Important Debt Restructuring
absolute amount exceeding RMB 2 million, or have an
impact on net profit exceeding 10%.
(1) Change in Accounting Policies
The Company had no significant changes to accounting policies during the reporting period.
(2) Change in Accounting Estimates
The Company had no significant changes to accounting estimates during the reporting period.
IV. Taxes
categories of taxes Specific tax rate details
The taxable income is subject to output VAT at rates of
added-value tax
and paid based on the difference after deducting the input VAT
eligible for deduction in the current period.
urban maintenance &
The tax is calculated at 7% of the actual value-added tax paid.
construction tax
extra charges of education funds The tax is calculated at 3% of the actual value-added tax paid.
Local Education Surcharge The tax is calculated at 2% of the actual value-added tax paid.
For value-based taxation, the tax is calculated at 1.2% of the residual
value after deducting 30% of the property's original value in a single
building taxes
deduction; for rental-based taxation, the tax is calculated at 12% of
rental income.
business income taxes See the table below for details.
Name of the taxpaying entity rate of income tax
Nanjing Putian Tianji Building Intelligence Co., Ltd. 15%
Nanjing Putian Datang Information Electronics Co., Ltd. 15%
Other tax entities other than those mentioned above 25%
in December 2024, valid for three years, and will pay corporate income tax at a reduced rate of 15% for
the 2024–2026 fiscal year.
Certificate in November 2024, valid for three years, and will pay corporate income tax at a reduced rate of
enterprise. Certain software products from Nanjing Putian Tianji Building Intelligence Co., Ltd. and
Nanjing Southern Telecommunications Co., Ltd. comply with the provisions of Document Cai Shui [2011]
No.100 and are eligible for the value-added tax refund policy upon collection.
V. Notes to the Consolidated Financial Statements Items
Unless otherwise specified, the following note items (including explanations for key items in the
company's financial statements) use the following dates: "end of period" refers to December 31,2025; "end
of prior year" refers to December 31,2024; "current period" refers to the fiscal year 2025; and "prior
period" refers to the fiscal year 2024.
project ending balance Year-end balance
bank deposit 7,271,675.43 1,123,773.79
other monetary funds 2,233,897.56 4,272,925.37
Funds deposited with the finance company 172,779,922.93 287,204,290.64
amount to 182,285,495.92 292,600,989.80
Note: Other monetary funds (restricted monetary funds): Bank acceptance bill deposit of 63,397.44
yuan, performance bond of 1,835,074.50 yuan, and special account fund of the Party Committee of
(1) Classification and presentation of notes receivable
project ending balance Year-end balance
trade acceptance draft 18,006,988.67 570,577.84
subtotal 18,006,988.67 570,577.84
Less: Bad debt provision 778,489.58 28,528.89
amount to 17,228,499.09 542,048.95
(2) Receivable notes that have been endorsed or discounted at the end of the period and have not yet
matured as of the balance sheet date
Amount of termination Amount not terminated for
project recognition at the end of the recognition at the end of the
period period
Bank Acceptance Bill 25,105,495.20
trade acceptance draft 11,175,343.22
amount to 25,105,495.20 11,175,343.22
(3) Classified presentation according to the bad debt provisioning method
class ending balance
book balance bad debt provision
amount of Percentage amount of book value
Proportion (%)
money (%) money
receivable notes for which bad debt 18,006,988.67 100.00 778,489.58 4.32 17,228,499.09
provisions are made on a combined
basis
Among these: Commercial 18,006,988.67 100.00 778,489.58 4.32 17,228,499.09
acceptance bills
amount to 18,006,988.67 100.00 778,489.58 4.32 17,228,499.09
① In the combination, accounts receivable notes are provided for bad debts based on the aging group.
ending balance
project
bill receivable bad debt provision Proportion (%)
Within 1 year 18,006,988.67 778,489.58 4.32
(4) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
bad debt 28,528.89 749,960.69 778,489.58
provision
(1) Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 261,135,229.49 230,462,634.34
More than 5 years 179,431,638.23 171,103,837.44
subtotal 515,842,024.94 481,902,132.14
Less: Bad debt provision 192,255,102.92 188,366,805.80
amount to 323,586,922.02 293,535,326.34
(2) Classified presentation according to the bad debt provisioning method
class ending balance
book balance bad debt provision
amount of Percentage amount of book value
Proportion (%)
money (%) money
accounts receivable for which bad 76,050,649.46 76,050,649.46
debt provisions are made on a per- 14.74 100.00
item basis
Accounts receivable for which bad 439,791,375.48 116,204,453.46 323,586,922.02
debt provisions are made on a 85.26 26.42
combined basis
Among these: Age of Account 439,791,375.48 116,204,453.46 323,586,922.02
Portfolio
amount to 515,842,024.94 100.00 192,255,102.92 —— 323,586,922.02
（ continuous ）
Year-end balance
book balance bad debt provision
class
amount of Percentage amount of book value
Proportion (%)
money (%) money
accounts receivable for which bad 76,139,678.24
debt provisions are made on a per- 76,139,678.24 15.80 100.00
item basis
Accounts receivable for which bad 112,227,127.56 293,535,326.34
debt provisions are made on a 405,762,453.90 84.20 27.66
combined basis
Among these: Age of Account 112,227,127.56 293,535,326.34
Portfolio
amount to 481,902,132.14 100.00 188,366,805.80 —— 293,535,326.34
① Accounts receivable for which a separate bad debt provision is made at the end of the period
ending balance
Proportion
Accounts Receivable (by Unit) bad debt Calculation
book balance of
provision Basis
Deduction
Dongpo Xi Laos Co., Ltd. Not expected to
be recovered
Xu Mou 17,591,683.74 17,591,683.74 100.00 Not expected to
ending balance
Proportion
Accounts Receivable (by Unit) bad debt Calculation
book balance of
provision Basis
Deduction
be recovered
China Tower Co., Ltd. Not expected to
be recovered
Putian Information Technology Co., Ltd. Not expected to
be recovered
China Railway Communication and Signal Not expected to
Shanghai Engineering Group Co., Ltd. be recovered
other Not expected to
be recovered
amount to 76,050,649.46 76,050,649.46 —— ——
Continue the table above
Beginning balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
Dongpo Xi Laos Co., Ltd. Not expected to
be recovered
Xu Mou Not expected to
be recovered
China Tower Co., Ltd. Not expected to
be recovered
Putian Information Technology Co., Ltd. Not expected to
be recovered
China Railway Communication and Signal Not expected to
Shanghai Engineering Group Co., Ltd. be recovered
other Not expected to
be recovered
amount to 76,139,678.24 76,139,678.24 —— ——
② Accounts receivable for which bad debt provisions are calculated based on the aging group within
the combination
ending balance
project
book balance bad debt provision Proportion (%)
Within 1 year 261,135,229.49 2,611,352.29 1.00
More than 5 years 103,435,968.77 103,435,968.77 100.00
amount to 439,791,375.48 116,204,453.46 ——
Continue the table above
Year-end balance
project
book balance bad debt provision Proportion (%)
Within 1 year 230,462,634.34 2,304,644.02 1.00
More than 5 years 98,936,703.73 98,936,703.73 100.00
amount to 405,762,453.90 112,227,127.56 ——
(3) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Accounts
receivable for
which bad debt
provisions are
made on a
combined basis
accounts
receivable for
which bad debt
provisions are
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
made on a per-
item basis
amount to 188,366,805.80 3,977,325.90 89,028.78 192,255,102.92
Among these: The amount of bad debt provisions recovered or reversed in this period is significant.
Amount to be recovered or
name of organization Recovery Method
reversed
Putian Information Technology Co., Ltd. 82,252.78 Recovered Amount
China Railway Communication and Signal 6,776.00 Recovered Amount
Shanghai Engineering Group Co., Ltd.
amount to 89,028.78 ——
(5) Details of the top five accounts receivable by the debtor's end-of-period balances
End-of-period Proportion (%) of the End-of-period
Debtor's Name balance of accounts total ending balance of balance of bad debt
receivable accounts receivable provisions
Dongpo Xi Laos Co., Ltd. 19,708,086.54 3.82 19,708,086.54
Xu Mou 17,591,683.74 3.41 17,591,683.74
Shenzhen Huawang
Enterprise Management Co., 16,906,340.10 3.28 169,063.40
Ltd.
China United Network
Communications Co., Ltd.
The 28th Research Institute of
China Electronics Technology 15,663,961.54 3.04 399,668.76
Group Corporation
amount to 85,936,134.39 16.66 51,137,274.43
project ending balance Year-end balance
Bank Acceptance Bill 27,655,375.14 34,520,299.04
(1) Advance payments are presented by aging.
ending balance Year-end balance
Account Age
amount of money Percentage (%) amount of money Percentage (%)
Within 1 year 2,295,980.21 66.45 1,065,608.14 47.83
ending balance Year-end balance
Account Age
amount of money Percentage (%) amount of money Percentage (%)
More than 3 years 643,644.50 18.63 491,170.71 22.05
amount to 3,455,153.02 100.00 2,227,763.86 100.00
(2) Prepayment details for the top five accounts by end-of-period balance, categorized by prepayment
recipient
Proportion (%) of the total ending balance
name of organization ending balance
of prepaid accounts
ZTE Corporation Limited 1,000,000.00 28.94
Yangzhou Titan Information 342,390.00 9.91
Technology Co., Ltd.
Nanjing Changting Electronics 216,200.00 6.26
Co., Ltd.
Guangdong Fudong Electronics 150,000.00 4.34
Co., Ltd.
Huai'an Tianji Building 130,692.09 3.78
Intelligence Co., Ltd.
amount to 1,839,282.09 53.23
project ending balance Year-end balance
accounts receivable-other 5,239,886.21 6,859,962.77
(1) Other Receivables
① Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 3,789,466.81 3,841,863.96
More than 5 years 40,150,177.39 40,918,974.04
subtotal 51,550,757.70 50,829,973.11
Account Age ending balance Year-end balance
Less: Bad debt provision 46,310,871.49 43,970,010.34
amount to 5,239,886.21 6,859,962.77
② Classification by nature of funds
Book balance at the end
Nature of the Fund End-of-period book balance
of the previous year
Accounts Receivable and Payables 42,706,873.96 41,004,731.72
Deposit Guarantee Fund 7,619,798.27 8,623,995.84
Business travel petty cash fund 42,135.51 75,593.51
other 1,181,949.96 1,125,652.04
subtotal 51,550,757.70 50,829,973.11
Less: Bad debt provision 46,310,871.49 43,970,010.34
amount to 5,239,886.21 6,859,962.77
③ Provision for bad debts
stage Ⅰ stage Ⅱ phase III
Expected credit
Expected credit
losses throughout
losses throughout
bad debt provision Expected credit the entire amount to
the entire duration
losses over the duration (where
(incorporating
next 12 months no credit
already occurred
impairment has
credit impairment)
occurred)
Year-end balance 12,991,915.44 30,978,094.90 43,970,010.34
This period's accrual 2,340,861.15 2,340,861.15
ending balance 15,332,776.59 30,978,094.90 46,310,871.49
④ Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
stage Ⅰ 12,991,915.44 2,340,861.15 15,332,776.59
stage Ⅱ 30,978,094.90 30,978,094.90
amount to 43,970,010.34 2,340,861.15 46,310,871.49
⑤ Details of the top five other receivables by the debtor's accumulated ending balances
Proportion
(%) of the bad debt
Nature of the total ending provision
name of organization ending balance Account Age
Fund balance of ending
other balance
receivables
Beijing Likang
Accounts
General
Receivable and 28,912,122.71 More than 5 years 56.08 28,912,122.71
Communication
Payables
Equipment Co., Ltd.
Accounts 21,306.39; 4–5
Nanjing Putian
Receivable and 1,784,619.72 years: 50,4197.5; 3.46 1,784,619.72
Technology Co., Ltd.
Payables Over 5 years:
Nanjing Putian Accounts
Communication Receivable and 805,545.63 More than 5 years 1.56 805,545.63
Industrial Co., Ltd. Payables
CITIC International Deposit
Tendering Co., Ltd. Guarantee Fund
Nanjing Municipal
Office for the
Management of Wage
Deposit
Guarantee Funds for 400,000.00 More than 5 years 0.78 400,000.00
Guarantee Fund
Migrant Workers in
Construction
Enterprises
amount to —— 32,461,076.56 —— 62.96 31,930,227.49
(1) Inventory Classification
project ending balance
Impairment provision
for inventory value
decline/Impairment
book balance book value
provision for
contract
performance costs
raw and processed material 14,141,796.23 8,238,010.07 5,903,786.16
goods in process 3,654,045.14 2,881,380.17 772,664.97
merchandise inventory 68,332,138.56 47,303,888.65 21,028,249.91
goods shipped in transit 80,194,291.90 49,355,227.23 30,839,064.67
Commissioned processing materials 4,198,338.62 804,691.99 3,393,646.63
amount to 170,520,610.45 108,583,198.11 61,937,412.34
（ continuous ）
Year-end balance
Impairment provision
for inventory value
project decline/Impairment
book balance book value
provision for
contract
performance costs
raw and processed material 17,620,673.90 10,482,980.51 7,137,693.39
goods in process 3,406,609.65 2,881,380.17 525,229.48
merchandise inventory 79,400,394.27 48,287,969.61 31,112,424.66
goods shipped in transit 96,893,480.52 52,614,965.91 44,278,514.61
Commissioned processing materials 4,887,020.15 804,691.99 4,082,328.16
amount to 202,208,178.49 115,071,988.19 87,136,190.30
(2) Inventory impairment provision/Contract performance cost impairment provision
Increase amount for this reduction amount for this
period period
project Year-end balance ending balance
Revert or write
Accruishment other other
off
raw and
processed 10,482,980.51 123,487.57 2,368,458.01 8,238,010.07
material
Increase amount for this reduction amount for this
period period
project Year-end balance ending balance
Revert or write
Accruishment other other
off
goods in process 2,881,380.17 2,881,380.17
merchandise 48,287,969.61 2,088,537.74 3,072,618.70 47,303,888.65
inventory
goods shipped in 52,614,965.91 25,663.72 3,285,402.40 49,355,227.23
transit
Commissioned
processing 804,691.99 804,691.99
materials
amount to 115,071,988.19 2,237,689.03 8,726,479.11 108,583,198.11
project ending balance Year-end balance
Input tax amount to be deducted 2,034,749.70 1,085,488.28
advance payment of income tax 162,034.21 141,091.78
amount to 2,196,783.91 1,226,580.06
Changes in this period
Other
Investment
additiona Comprehe
gains and losses Other
Invested entity Year-end balance l nsive
disinvestment recognized changes
investme Income
under the in equity
nt Adjustmen
equity method
ts
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co., 10,412,683.37 10,412,571.93 -111.44
Ltd.
amount to 10,412,683.37 10,412,571.93 -111.44
（ continuous ）
Changes in this period
End-of-period
Announcement
Make an balance of
Invested entity of cash dividend ending balance
impairment other impairment
or profit
provision provision
distribution
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co.,
Ltd.
amount to
(1) Investment in other equity instruments
project ending balance Year-end balance
Hangzhou Hongyan Electric Appliance 321,038.00 321,038.00
Co., Ltd.
Nanjing Yuhua Electroplating Factory 420,915.00 420,915.00
Beijing Likang General Communication
Equipment Co., Ltd.
amount to 741,953.00 741,953.00
The company's equity investments in Nanjing Yuhua Electroplating Factory, Hangzhou Hongyan
Electric Appliance Co., Ltd., and Beijing Likang General Information Equipment Co., Ltd. constitute non-
trading equity instrument investments. Consequently, the company classifies these investments as equity
instruments measured at fair value with changes recognized in other comprehensive income.
(1) Investment property measured at cost
project Houses and buildings
I. Original Book Value
Year-end balance 20,011,121.96
Increase amount for this period
reduction amount for this period
ending balance 20,011,121.96
II. Cumulative Depreciation and Cumulative Amortization
Year-end balance 14,463,883.49
project Houses and buildings
Increase amount for this period 569,967.75
Of which: provision for or amortization 569,967.75
reduction amount for this period
ending balance 15,033,851.24
III. Impairment Provision
IV. Book Value
End-of-period book value 4,977,270.72
Book value at the end of the previous year 5,547,238.47
project ending balance Year-end balance
fixed assets 84,173,058.11 85,757,024.11
(1) Fixed Assets
① Fixed Assets Status
Houses and machinery Electronic conveyer Other
project amount to
Buildings equipment Equipment devices
Original book value
Year-end balance 103,626,682.38 46,373,354.29 19,268,720.26 3,091,621.11 16,511,028.71 188,871,406.75
Increase amount
for this period
Including:
Purchase
other 1,243,827.84 1,243,827.84
reduction amount for
this period
Of which: disposal or
scrapping
other
ending balance 103,185,699.27 48,626,411.26 18,453,438.80 3,091,621.11 16,250,653.27 189,607,823.71
accumulated
depreciation
Year-end balance 102,388,420.08
Increase amount
Houses and machinery Electronic conveyer Other
project amount to
Buildings equipment Equipment devices
for this period
Of which:
provision made
other
reduction amount for
this period
Of which: disposal or
scrapping
other 266,597.24 266,597.24
ending balance 42,727,851.66 28,209,337.55 15,398,364.28 2,957,890.33 15,415,359.22 104,708,803.04
Impairment Provision
Year-end balance 539,124.00 11,550.65 175,287.91 725,962.56
Increase amount
for this period
reduction amount
for this period
ending balance 539,124.00 11,550.65 175,287.91 725,962.56
book value
End-of-period book 59,918,723.61 20,405,523.06 3,055,074.52 133,730.78 660,006.14
value
Book value at the end
of the previous year
② Status of temporarily idle fixed assets
Original accumulated Impairment
project book value remarks
book value depreciation Provision
machinery equipment 212,485.00 196,288.30 11,169.15 5,027.55
conveyer 36,000.00 34,920.00 1,080.00
other 342,985.18 157,407.73 175,287.91 10,289.54
amount to 591,470.18 388,616.03 191,484.61 16,397.09
③ Fixed assets leased out through operating leases
project End-of-period book value
project End-of-period book value
Houses and Buildings 18,016,866.08
④ Status of fixed assets for which the property ownership certificate has not been obtained
Reasons for the failure to obtain the property
project book value
ownership certificate
Houses and Buildings 2,394,650.45 Still being processed
project Houses and Buildings
Original book value
Year-end balance 2,686,684.00
This year's increase amount
This year's reduction amount
year end balance 2,686,684.00
accumulated depreciation
Year-end balance 238,890.96
This year's increase amount 260,608.32
Of which: provision made 260,608.32
This year's reduction amount
year end balance 499,499.28
Impairment Provision
Year-end balance
This year's increase amount
This year's reduction amount
year end balance
book value
Year-end book value 2,187,184.72
Book value at the end of the previous year 2,447,793.04
(1) Information on Intangible Assets
project land use right software amount to
project land use right software amount to
Original book value
Year-end balance 14,116,846.37 10,452,159.22 24,569,005.59
Increase amount for
this period
reduction amount
for this period
ending balance 14,116,846.37 10,452,159.22 24,569,005.59
accumulated
amortization
Year-end balance 3,648,432.30 9,248,248.59 12,896,680.89
Increase amount for 334,875.36 133,478.76
this period
Of which: 334,875.36 133,478.76
provision made
reduction amount
for this period
ending balance 3,983,307.66 9,381,727.35 13,365,035.01
Impairment Provision
book value
End-of-period book 10,133,538.71 1,070,431.87 11,203,970.58
value
Book value at the 10,468,414.07 1,203,910.63 11,672,324.70
end of the previous year
Increase Amortization
Year-end Other reduction
project amount for this amount for this ending balance
balance amount
period period
Expenditure on 2,076,305.95 1,897,965.96 919,639.72
renovation and 3,054,632.19
modification
(1) Details of unconfirmed deferred tax assets
project ending balance Year-end balance
project ending balance Year-end balance
Deductible temporary differences 349,948,134.66 349,457,805.78
Deductible loss 178,094,465.64 160,136,771.28
amount to 528,042,600.30 509,594,577.06
(2) The deductible losses of unconfirmed deferred tax assets shall mature in the following years.
a particular year ending balance Year-end balance remarks
amount to 178,094,465.64 160,545,561.77
project ending balance Year-end balance
Prepayment for the acquisition of
long-term assets 719,280.00
project End-of-period book value Limitation Reason
Bank acceptance bill margin,
monetary resources 2,233,897.56 performance bond and special account
funds of the Party Committee
fixed assets 52,986,451.08 mortgage
immaterial assets 4,901,288.52 mortgage
amount to 60,121,637.16
Note: For details on the mortgage status of fixed assets and intangible assets, refer to Note 19; for short-term loans, see
the relevant section.
(1) Classification of Short-Term Loans
project ending balance Year-end balance
mortgage loan 93,874,324.80 49,299,759.96
project ending balance Year-end balance
Credit Loan 108,861,610.37 78,828,227.79
bill receivable 1,189,786.81
amount to 203,925,721.98 128,127,987.75
Note: 1. The Company obtained a loan of RMB 14.7641 million by mortgaging the property located at No.8 Fenghui
Avenue, Yuhuatai District, Nanjing, and the land use rights within its premises; it also pledged the equity stake of 56.28% in
Nanjing Southern Telecommunications Co., Ltd. (corresponding to an investment amount of RMB 28.5340 million) to its
parent company, China Electronics Guorui Group Co., Ltd., to secure a loan of RMB 66.8 million; 2. The subsidiary
Nanjing Putian Tianji Building Intelligence Co., Ltd. obtained a loan of RMB 10.5 million by mortgaging three properties
and the land use rights located at No.18 Songgang Street, Moling Subdistrict, Jiangning District; 3. The subsidiary Nanjing
Putian Datang Information Electronics Co., Ltd. obtained a loan of RMB 1.75 million by mortgaging the property at No.8
Fenghui Avenue, Yuhuatai District, Nanjing, and the land use rights within its premises.
kind ending balance Year-end balance
trade acceptance draft 446,679.01 1,809,060.50
Bank Acceptance Bill 6,328,555.16 8,313,165.25
amount to 6,775,234.17 10,122,225.75
(1) Presentation of Accounts Payable
project ending balance Year-end balance
Within 1 year (inclusive) 206,129,313.63 268,987,560.21
More than 1 year 67,252,993.23 80,354,619.00
amount to 273,382,306.86 349,342,179.21
(2) Significant accounts payable with an aging period exceeding 1 year
Reasons for the outstanding or
project ending balance
untransferred amounts
China Putian Information Industry Co., 14,918,045.42 Not yet at the payment node
Ltd.
(1) Presentation of advance receipts
project ending balance Year-end balance
Within 1 year (inclusive) 295,001.06 236,005.32
(1) Contractual Liabilities
project ending balance Year-end balance
Advanced Payment 9,264,082.89 27,919,961.45
Less: Deferred sales tax to be written off 837,769.44 3,125,042.32
(Note 5, 28)
amount to 8,426,313.45 24,794,919.13
(1) Presentation of Employee Compensation Payables
Reduce in this
project Year-end balance Add to this issue ending balance
period
Short-term compensation 17,066,962.98 104,395,263.90 108,839,944.39 12,622,282.49
Post-employment Benefits – 16,522,208.41 16,522,208.41
Establish a Savings Plan
Resignation benefits 3,742,433.63 3,742,433.63
amount to 17,066,962.98 124,659,905.94 129,104,586.43 12,622,282.49
(2) Presentation of Short-Term Compensation
Reduce in this
project Year-end balance Add to this issue ending balance
period
Salaries, bonuses, allowances,
and subsidies
employee services and benefits 2,251,999.49 2,251,999.49
Social Insurance Contributions 7,018,805.71 7,018,805.71
Of which: Medical insurance 6,093,993.95 6,093,993.95
premium
Work-related injury 493,037.41 493,037.41
insurance premium
Maternity insurance premium 431,774.35 431,774.35
housing fund 3,216,865.05 7,824,885.82 7,824,885.82 3,216,865.05
Trade union funds and employee
education funds
Other short-term compensation 14,996.53 7,258,078.64 7,258,078.64 14,996.53
amount to 17,066,962.98 104,395,263.90 108,839,944.39 12,622,282.49
(3) Establishment of a Deposit Plan and Its Presentation
Reduce in this
project Year-end balance Add to this issue ending balance
period
Reduce in this
project Year-end balance Add to this issue ending balance
period
basic retirement security 15,484,038.01 15,484,038.01
unemployment insurance expense 648,619.80 648,619.80
Corporate Annuity Contribution 389,550.60 389,550.60
amount to 16,522,208.41 16,522,208.41
project ending balance Year-end balance
added-value tax 4,364,752.36 5,469,015.04
business income taxes 449,719.44 1,426,860.42
building taxes 313,001.13 351,313.55
Land Use Tax 81,827.95 80,701.94
income tax for individuals 123,313.16 189,374.87
urban maintenance & construction tax 386,451.15 493,348.10
extra charges of education funds 182,799.53 210,880.61
Local Education Surcharge 93,237.01 140,868.41
Other taxes and fees 47,096.07 97,329.58
amount to 6,042,197.80 8,459,692.52
project ending balance Year-end balance
dividends payable 11,044,600.00
accounts payable-others 37,987,466.18 41,918,074.35
amount to 49,032,066.18 41,918,074.35
(1) Dividends payable
project ending balance Year-end balance
common stock dividends 11,044,600.00
(2) Other Payables
① Listed by nature of the payment
project ending balance Year-end balance
accounts receivable payable 25,867,467.58 31,279,667.14
Unpaid installation costs 12,937.00 87,519.38
Deposit Guarantee Fund 3,990,787.59 3,467,780.26
Operating expenses 6,833,831.60 6,279,652.71
project ending balance Year-end balance
other 1,282,442.41 803,454.86
amount to 37,987,466.18 41,918,074.35
② Other significant payables with an aging period exceeding 1 year
Reasons for the outstanding
project ending balance
or untransferred amounts
China Putian Information Industry Group Co., 9,591,612.50 The settlement conditions
Ltd. have not been met.
project ending balance Year-end balance
Long-term loans maturing within 1 year (Note 5, 70,060,958.33 86,988,463.61
Lease liabilities maturing within 1 year (Note 5, 838,955.39 1,072,195.82
amount to 70,899,913.72 88,060,659.43
project ending balance Year-end balance
Tax payable for write-off 837,769.44 3,125,042.32
Revert at the end of the period the endorsed and
transferred commercial acceptance bills and 9,985,556.41
drafts that have not yet matured.
accrued expenses 97,087.38
amount to 10,920,413.23 3,125,042.32
Year-end balance Interest rate range
project
ending balance (%)
Pledge Loan 70,000,000.00 86,907,415.00 4.05%
guaranteed loan 70,081,048.61 3.75-3.80
Less: Long-term borrowings due
within one year (Note 5, 27)
amount to 70,000,000.00
Note: The parent company, China Electric Guorui Group Co., Ltd., provided a guarantee for the company's loan from
China Electronic Technology Finance Co., Ltd.
project Year-end Increased this year Reduced this year end
balance year balance
This
New Lease year's other
interest
machinery equipment 1,912,569.78 1,073,614.39 838,955.39
Less: Lease liabilities due
within one year (Note 5, —— —— —— 838,955.39
amount to 840,373.96 —— —— ——
Add to this Reduce in this
Investor Name Year-end balance ending balance
issue period
Total Number of Shares 215,000,000.00 215,000,000.00
Year-end Add to this Reduce in this
project ending balance
balance issue period
capital stock premium 137,786,640.63 137,786,640.63
Other Capital Reserve 60,169,226.95 3,362,261.03 63,531,487.98
amount to 197,955,867.58 3,362,261.03 201,318,128.61
Note: This year, the reversal of previously accrued housing purchase subsidies that were not payable resulted in an
increase in capital reserve by RMB 3,362,261.03.
Increase amount reduction amount
project Beginning balance ending balance
for this period for this period
Share Repurchase 2,995,076.96 2,995,076.96
Amount of Transactions in This Period
reduction:
originally
current recognized in
After-tax
period other After-tax
End of last Less: amount
Amount comprehensive amount end of term
project year Income attributable
incurred income, attributable balance
balance Tax to the
before transferred to to minority
Expense parent
income profit or loss (or shareholders
company
tax retained
earnings) in the
current period
Other
comprehensive
income
reclassified -1,854,910.00 -1,854,910.00
into profit or
loss
Of which: the
amount of -1,854,910.00 -1,854,910.00
financial asset
Amount of Transactions in This Period
reduction:
originally
current recognized in
After-tax
period other After-tax
End of last Less: amount
Amount comprehensive amount end of term
project year Income attributable
incurred income, attributable balance
balance Tax to the
before transferred to to minority
Expense parent
income profit or loss (or shareholders
company
tax retained
earnings) in the
current period
reclassification
recognized in
other
comprehensive
income
Year-end Add to this Reduce in this
project ending balance
balance issue period
Legal surplus reserve 589,559.77
project current period prior period
Undistributed profits at the end of the previous year -405,721,306.51
-394,344,427.37
before adjustment
Adjusted undistributed profit at the end of the -405,721,306.51
-394,344,427.37
previous year
Total: Net profit attributable to the parent company's 11,376,879.14
-9,462,362.33
shareholders for this period
Subtract: Withdrawal of statutory surplus reserve
Extract the discretionary surplus reserve
Extract general risk provision
Dividend payable for common stock
Dividends in the form of ordinary shares converted
into equity capital
End-of-period undistributed profits -403,806,789.70 -394,344,427.37
(1) Operating Revenue and Operating Costs
Amount for this period Previous period amount
project
income prime cost income prime cost
main business 607,507,744.76 483,796,308.13 783,845,853.95 620,010,069.86
Amount for this period Previous period amount
project
income prime cost income prime cost
Other Businesses 10,131,740.20 27,824,673.46 15,214,660.19
amount to 617,639,484.96 811,670,527.41 635,224,730.05
(2) Table of Operating Revenue Deductions
project this year Specific deduction details previous year Specific deduction details
Operating Revenue Amount 617,639,484.96 811,670,527.41
Total amount of operating revenue minus all items 9,547,500.84 15,106,674.24
Proportion (%) of total itemized operating revenue to total
operating revenue
I. Business revenue unrelated to the core business
The rental income from The rental income from property
property leasing and tenant leasing and tenant utilities
revenue generated from leasing fixed assets, intangible assets, or
utilities amounted to RMB amounted to RMB 9,902,731.72;
packaging materials; selling materials; exchanging materials for
non-monetary assets; providing entrusted management services; 9,547,500.84 15,106,674.24
revenue was RMB 4,213,608.92; and software
and other income that, although recorded as part of core business
revenue, falls outside the normal operations of the listed
services and other income RMB 990,333.60.
company.
totaled RMB 532,034.08.
Subtotal of business revenue unrelated to the main business 9,547,500.84 15,106,674.24
II. Income without commercial substance
III. Other income that is unrelated to the main business or lacks
commercial substance
Net operating revenue after deductions 608,091,984.12 796,563,853.17
(3) Income and Cost Breakdown Information
Amount for this period Previous period amount
Income Category
income prime cost income prime cost
Classified by business
type
communications
industry
Electrical Industry 92,817,798.06 72,832,536.55
amount to 612,283,394.66 486,148,821.14 801,767,795.69 634,239,379.33
Classification by sales
channel
Direct Sale 402,638,086.88 320,406,125.53 511,195,634.82 404,532,326.74
distribution 209,645,307.78 165,742,695.61 290,572,160.87 229,707,052.59
amount to 612,283,394.66 486,148,821.14 801,767,795.69 634,239,379.33
(4) Description of Performance Obligations
The nature of the The amount
The type of quality
goods for which Are you the expected to be
Fulfill assurance provided
Important payment the company primary refunded to
project performance by the company and
terms undertakes to responsible the customer
obligations the corresponding
transfer party? by the
obligations
ownership company
Make installment
Customer payments
Sell video Video
acceptance according to the Warranty period:
conferencing conferencing yes not have
project or time nodes Warranty
products product
signed goods specified in the
contract.
Make installment
Comprehensive payments
Customer
Distribution according to the Integrated Warranty period:
receives the yes not have
Cable System time nodes Cabling Products Warranty
goods
Products specified in the
contract.
Make installment
Sales of basic Customer payments
Basic
communication acceptance according to the Warranty period:
Communication yes not have
and networking project or time nodes Warranty
Products
products signed goods specified in the
contract.
Make installment
According to payments
Provide
the progress according to the Integrated Warranty period:
construction yes not have
of contract time nodes Cabling Products Warranty
services
fulfillment specified in the
contract.
Make installment
According to payments
Provide
the progress according to the Maintenance and
maintenance yes not have not have
of contract time nodes Other Services
services
fulfillment specified in the
contract.
(5) Explanation of allocation to the remaining performance obligations
At the end of this reporting period, the revenue corresponding to performance obligations that have been
signed but not yet performed or fully performed amounted to RMB 131.3714 million, of which: RMB 96.1169
million is expected to be recognized as revenue in fiscal year 2026; and RMB 35.2545 million is expected to be
recognized as revenue in fiscal year 2027.
project Amount for this period Previous period amount
building taxes 1,113,060.03 2,013,656.63
urban maintenance & construction 1,034,092.50 1,572,198.38
tax
extra charges of education funds 574,825.93 831,597.75
Local Education Surcharge 165,874.37 291,923.55
Land Use Tax 328,434.78 497,743.11
stamp duty 411,523.84 531,489.95
other 199,641.22 389,503.08
amount to 3,827,452.67 6,128,112.45
Note: The calculation standards for various taxes and surcharges are detailed in Note 4, "Taxes."
project Amount for this period Previous period amount
employee compensation 40,148,437.58 48,581,858.41
Business entertainment expenses 3,423,577.14 7,730,139.58
travel expense 4,134,554.60 4,392,780.47
administrative expenses
Sales Service Fee 978,297.95 914,243.41
Business Promotion Expenses 558,817.56 121,693.68
Meeting fee 301,611.32 249,286.74
Device Maintenance Fee 18,130.65
other
amount to 55,636,075.45 71,756,768.98
project Amount for this period Previous period amount
employee compensation 32,254,650.18 42,541,907.68
Depreciation and Amortization 3,784,927.63 5,175,912.59
Consultation and intermediary fees 2,533,652.05 5,515,617.75
project Amount for this period Previous period amount
administrative expenses 1,382,829.17 3,939,247.88
Leasing and property fees 830,762.18 2,108,251.75
Business entertainment expenses 292,885.04 581,870.76
travel expense 215,024.33 568,331.70
other 2,363,392.85 1,844,769.79
amount to 43,658,123.43 62,275,909.90
project Amount for this period Previous period amount
employee compensation 23,367,004.89 28,521,143.99
Interim trial fee 1,512,348.46 1,541,213.73
travel expense 1,070,452.09
Material Request 775,418.71
Depreciation and Amortization 888,456.28
other 1,595,117.28
amount to 29,208,797.71 34,850,835.24
project Amount for this period Previous period amount
interest expense 8,748,305.48 10,723,524.38
Subtraction: Interest Income 452,186.54 639,938.05
-1,150.08
exchange loss 4,867.97
Less: Exchange gains
Service charge expenditure 296,566.30 81,356.02
amount to 8,597,553.21 10,163,792.27
The amount included in
Amount for this Previous period the non-recurring gains
project
period amount and losses for the current
period
Government subsidies related to 2,780,647.16 911,728.87
the daily operations of enterprises
Additional VAT deduction for
advanced manufacturing industries
The amount included in
Amount for this Previous period the non-recurring gains
project
period amount and losses for the current
period
Refund of the personal income tax
withholding fee
amount to 4,600,883.38 2,783,558.31 1,951,399.86
The details of government subsidies are as follows:
Previous period Asset-related/Income-
Subsidy Project Amount for this period
amount related
Software Tax Refund 829,247.30 546,711.46 Related to income
Special Fund for Industrial
Transformation and Upgrading
Jiangsu Province: Specialized,
Advanced, Unique, and Innovative
Tengfei Policy Incentive 450,826.50 Related to income
Special Subsidy for Enterprise
Upgrade Services
Job Stability Subsidy 85,584.00 109,426.00 Related to income
High-tech enterprise subsidies 50,000.00 Related to income
Development Economics
Department Expenses
奖励 for Digital Economy Military
Qualification Certification
other 14,989.36 73,591.41 Related to income
project Amount for this period Previous period amount
Gains from long-term equity investments -111.44 -5.77
accounted for using the equity method
Investment income generated from long-term 7,389,153.73 50,832,148.02
equity investments
收益 from debt restructuring 643,686.83 1,514,624.88
other 5,416.29 -50,223.40
amount to 8,038,145.41 52,296,543.73
project Amount for this period Previous period amount
Bad debt loss on notes receivable -749,960.69 -2,548,249.56
Loss on bad debts of accounts -3,888,297.12 -4,263,347.36
receivable
Other receivables bad debt losses -2,340,861.15 -822,788.59
project Amount for this period Previous period amount
amount to -6,979,118.96 -7,634,385.51
project Amount for this period Previous period amount
loss on inventory -2,237,689.03 -14,428,752.85
The amount
included in the
Amount for this Previous period non-recurring
project
period amount gains and losses
for the current
period
Gains or losses from the disposal of
fixed assets
The amount included
Amount for this in the non-recurring
project Previous period amount
period gains and losses for
the current period
Unpayable accounts payable 2,219,780.87 3,498,793.46 2,219,780.87
Fines Revenue 72,147.00 79,732.91 72,147.00
other 708,819.12 4,905.66 708,819.12
amount to 3,000,746.99 3,583,432.03 3,000,746.99
The amount included
in the non-recurring
project Amount for this period Previous period amount
gains and losses for
the current period
Late payment penalty expenses 5,635.24 3,306.68 5,635.24
Fines expenditure 25,000.00
other 517,268.31 3,638,975.61 517,268.31
amount to 522,903.55 3,667,282.29 522,903.55
(1) Income Tax expense statement
project Amount for this period Previous period amount
Current income tax expense 1,204,086.83 2,934,143.89
Deferred income tax expense
other 154,333.67 246,161.16
amount to 1,358,420.50 3,180,305.05
(2) The adjustment process between accounting profit and income tax expense
project Amount for this period
total profit 450,176.37
Income tax expense calculated based on the statutory/applicable tax rate 112,544.09
The impact of applying different tax rates to subsidiaries -1,687,628.12
Adjustment for the impact of income tax from prior periods
The impact of non-taxable income
The impact of non-deductible costs, expenses, and losses 1,066,745.64
Assess the impact of unconfirmed deferred tax assets on deductible losses in
the initial period
This year, no impact of deductible temporary differences or deductible 4,926,244.59
losses related to deferred tax assets was recognized.
The impact of the additional deduction for research and development -3,059,485.70
expenses
Income Tax Fee 1,358,420.50
(1) Receipt of other cash related to operating activities
project Amount for this period Previous period amount
public subsidy 1,951,399.86 325,259.82
interest revenue 452,186.54 639,938.05
Receiving and Paying Accounts 30,462,830.20 32,939,753.75
other 4,085,739.25 9,153,979.71
amount to 36,952,155.85 43,058,931.33
(2) Payment of other cash related to operating activities
project Amount for this period Previous period amount
out-of-pocket expenses 28,400,566.70 50,687,399.27
Receiving and Paying Accounts 28,883,722.23 30,830,777.55
other 2,333,599.27 3,923,916.79
project Amount for this period Previous period amount
amount to 59,617,888.20 85,442,093.61
(3) Payment of other cash related to investment activities
project Amount for this period Previous period amount
Pay the expenses related to the payment and settlement
subsidiary.
(4) Payment of other cash related to financing activities
project Amount for this period Previous period amount
Pay the rental fee 1,287,438.87 916,760.88
Stock Repurchase 2,997,498.00
amount to 1,287,438.87 3,914,258.88
(5) Changes in various liabilities arising from financing activities
Add to this issue Reduce in this period
Beginning
project Non-cash Non-cash ending balance
balance Cash Change Cash Change
changes changes
money
borrowed for 128,127,987.75 202,614,067.87 3,817,197.35 130,633,530.99 203,925,721.98
short time
money
borrowed for 70,000,000.00 3,674,008.33 3,613,050.00 70,060,958.33
long term
Leasing
liabilities
(including
leasing 840,373.96 1,136,020.30 1,137,438.87 838,955.39
liabilities
maturing within
notes payable 14,954.96 14,954.96
accounts
payable-others
Non-current
liabilities
maturing within
one year
amount to 288,253,902.03 202,614,067.87 81,131,196.50 226,040,376.55 71,133,154.15 274,825,635.70
(1) Supplementary Information to the Cash Flow Statement
Supplementary Information Amount for this Previous period
period amount
net margin -908,244.13 22,106,285.67
Add: Asset impairment provision 2,237,689.03 14,428,752.85
Credit impairment loss 6,979,118.96 7,634,385.51
Supplementary Information Amount for this Previous period
period amount
Depreciation of fixed assets, depletion of oil and gas
assets, depreciation of productive biological assets, 7,226,916.20 8,414,965.46
depreciation of right-of-use assets
amortization of intangible assets 468,354.12 814,279.13
Amortization of long-term prepaid expenses 919,639.72 950,185.51
Losses (or gains) from disposal of fixed assets, -5,359,026.59 -1,083,098.78
intangible assets, and other long-term assets (marked
with a "-" sign)
Fixed asset disposal loss (profit entered with a "-"
sign)
Loss on change in fair value (profit/loss indicated
with a "-" sign)
Financial expenses (report revenue with a "-" sign) 8,748,305.48 10,723,524.38
Investment loss (profit is indicated with a "-") -8,038,145.41 -52,296,543.73
Decrease in deferred tax assets (enter with a "-")
Increase in deferred tax liability (reduce by entering
a negative sign)
reduction in inventory (increase indicated with a "-") 31,687,568.04 37,599,818.54
Decrease in operating receivables (enter with a "-" -62,656,023.57 -23,477,786.08
sign for an increase)
Increase in operating payable items (减少 items are -68,579,422.44 -43,011,110.86
indicated with a "-").
other
Net cash flow from operating activities -87,273,270.59 -17,196,342.40
involving cash receipts or payments:
Debt converted into capital
convertible corporate bonds maturing within one year
fixed assets under financing lease
End-of-period cash balance 180,051,598.36 288,328,064.43
Less: The balance of cash at the end of the previous year 288,328,064.43 164,177,680.11
Supplementary Information Amount for this Previous period
period amount
Add: The ending balance of cash equivalents
Less: The balance of cash equivalents at the end of the
previous year
Net increase in cash and cash equivalents -108,276,466.07 124,150,384.32
(2) Cash received or paid related to significant investment activities
Nature Amount for this Previous period
period amount
Cash paid for important investment activities
Pay the expenses related to the payment and settlement 405,500.00
subsidiary.
(3) Composition of cash and cash equivalents
project ending balance Year-end balance
Cash 180,051,598.36 288,328,064.43
Among these: Bank deposits available for payment at any 180,051,598.36 288,328,064.43
time.
(1) Foreign currency monetary items
End-of-period foreign Conversion Exchange End-of-period converted
project
currency balance Rate RMB balance
monetary resources
Of which: US dollar 30,525.13 7.0288 214,555.03
HongKong dollar 10.33 0.90322 9.33
(1) The Company, as the lessee
① For details on right-of-use assets and lease liabilities, refer to Notes 5, 13, and 30 of this document.
② Included in the current year's profit and loss
Included in the current year's profit and loss
project
Reporting Item amount of money
Interest on lease liabilities cost of financing 63,824.48
③ Cash flow outflows related to leasing
project Cash Flow Category This year's amount
Cash paid to repay the principal and interest of lease Cash outflow from financing
liabilities activities
(2) The Company acts as the lessor
① Information related to operating leases
A. Items included in the current year's profit and loss
Included in the current year's profit and
project loss
Reporting Item amount of money
Lease Income operating receipt 5,356,090.30
VI. R&D Expenses
project Amount for this period Previous period amount
employee compensation 23,367,004.89 28,521,143.99
travel expense 1,070,452.09 1,211,814.77
Depreciation and Amortization 888,456.28 942,670.55
Material Request 775,418.71 748,668.74
Interim trial fee 1,512,348.46 1,541,213.73
design fee 6,000.00
other 1,595,117.28 1,879,323.46
amount to 29,208,797.71 34,850,835.24
VII. Interests in Other Entities
Registered shareholding ratio
Capital Primary Registere （%）
Nature of Method of
Subsidiary Name (ten place of d
Business Acquisition
thousand business Address direct indirect
yuan)
Nanjing Southern
Nanjing Nanjing manufacturing
Telecommunications 5,070.00 96.99% 3.01% establish
City City industry
Co., Ltd.
Registered shareholding ratio
Capital Primary Registere （%）
Nature of Method of
Subsidiary Name (ten place of d
Business Acquisition
thousand business Address direct indirect
yuan)
Nanjing Putian Tianji
Nanjing Nanjing manufacturing
Building Intelligence 2,000.00 45.77% establish
City City industry
Co., Ltd.
Nanjing Putian Datang Business
Information Electronics Nanjing Nanjing manufacturing combination
Co., Ltd. City City industry under different
controls
scope
(1) The Company holds a 45.767% voting interest in Nanjing Putian Tianji Building Intelligence Co., Ltd.,
with other voting shareholders being relatively dispersed. The Company represents more than half of the board
members of Nanjing Putian Tianji Building Intelligence Co., Ltd., thereby exercising control over the company.
This enables the Company to participate in the company's activities, enjoy variable returns, leverage its control
over the company's returns, and ultimately exercise full control over Nanjing Putian Tianji Building Intelligence
Co., Ltd.
(2) The Company holds a 40% equity stake in Nanjing Putian Datang Information Electronics Co., Ltd.
The number of Company members serving on its Board of Directors exceeds half of the total board members,
granting the Company authority over the company. The Company is entitled to variable returns by participating
in its relevant activities and can leverage this authority to influence its return amounts, thereby exercising
control over Nanjing Putian Datang Information Electronics Co., Ltd.
(1) A significant non-wholly owned subsidiary
Shareholding Profit or loss Dividend
percentage of attributable to distributed to End-of-period
Subsidiary Name minority minority minority balance of minority
shareholders shareholders for shareholders in interest
(%) the period this period
Nanjing Putian Tianji Building
Intelligence Co., Ltd.
(2) Key financial information of the subsidiary
ending balance
Subsidiary Name circulating non-current non-current Total
Total Assets cash liabilities
assets assets liability Liabilities
Nanjing Putian
Tianji Building
Intelligence Co.,
Ltd.
（ continuous ）
Year-end balance
Subsidiary Name non-current non-current Total
circulating assets Total Assets cash liabilities
assets liability Liabilities
Nanjing Putian
Tianji Building
Intelligence Co.,
Ltd.
（ continuous ）
Amount for this period Previous period amount
Cash
total Cash total
Subsidiary Flow
operating comprehe Flow from operating net comprehe
Name net margin from
receipt nsive Operating receipt margin nsive
Operating
income Activities income
Activities
Nanjing Putian
Tianji 339,404,639.09 20,374,028.68 20,374,028.68 5,677,545.92
Building 294,056,233.62 15,051,430.91 15,051,430.91 2,515,810.36
Intelligence
Co., Ltd.
(1) Consolidated financial information for non-material joint ventures and associated enterprises
End-of-period balance / Year-end balance / Amount
project
Current period amount from the previous period
Nanjing Puzhu Guang Nanjing Puzhu Guang
cooperative enterprise ：
Network Co., Ltd. Network Co., Ltd.
End-of-period balance / Year-end balance / Amount
project
Current period amount from the previous period
Total book value of investments 10,412,683.37
The total amounts of the following items are
calculated based on the shareholding ratios:
— net margin -5.77
—Other Comprehensive Income
— total comprehensive income -5.77
VIII. Risks Associated with Financial Instruments
The Company's primary financial instruments include loans, receivables, and payables, among others.
Detailed descriptions of these financial instruments are provided in Note 5. The risks associated with these
instruments, along with the risk management policies implemented by the Company to mitigate them, are
outlined below. The Company's management monitors and manages these risk exposures to ensure they remain
within acceptable limits.
The company employs sensitivity analysis techniques to assess the potential impact of reasonable and
possible changes in risk variables on current profits or equity. Since risk variables rarely change independently,
and the interrelationships among variables significantly influence the ultimate effect of changes in any given
variable, the following analysis assumes that each variable's change occurs independently.
The objective of our company's risk management is to achieve an appropriate balance between risk and
return, minimize the negative impact of risks on our operating performance, and maximize the interests of
shareholders and other equity investors. In line with this objective, our fundamental risk management strategy
involves identifying and analyzing the various risks we face, establishing appropriate risk tolerance thresholds,
implementing effective risk management practices, and conducting timely and reliable monitoring of these risks
to keep them within defined limits.
(1) Market Risk
① exchange risk
Foreign exchange risk refers to the risk that the fair value or future cash flows of financial instruments
fluctuate due to changes in foreign exchange rates. The Company operates in mainland China, and its primary
activities are denominated in Renminbi; therefore, the foreign exchange rate fluctuation risk assumed by the
Company is not material. The details of the Company's foreign currency monetary assets and liabilities at the
end of the period are provided in the relevant notes to this financial statement.
As of December 31,2025, the Company's major foreign exchange risk exposures for its foreign currency
assets and liabilities are as follows (for reporting purposes, the risk exposure amounts are presented in
Renminbi and converted using the spot exchange rate on the balance sheet date).
project American dollar Hong Kong currency
foreign currency Renminbi foreign currency Renminbi
Cash and cash
equivalents
project American dollar Hong Kong currency
foreign currency Renminbi foreign currency Renminbi
Cash and cash
equivalents
② interest rate exposure
Interest rate risk refers to the risk that the fair value or future cash flows of financial instruments fluctuate
due to changes in market interest rates. Fixed-rate interest-bearing financial instruments expose the Company to
fair value interest rate risk, while floating-rate interest-bearing financial instruments expose the Company to
cash flow interest rate risk. The Company determines the proportion of fixed-rate to floating-rate financial
instruments based on market conditions and maintains an appropriate portfolio through regular review and
monitoring.
(2) Credit Risk
Credit risk refers to the risk that one party using a financial instrument fails to fulfill its obligations,
resulting in financial losses for the other party.
(1) Methods for evaluating credit risk
The company assesses whether the credit risk of relevant financial instruments has increased significantly
since initial recognition on each balance sheet date. In determining such a significant increase, the company
considers obtaining reasonable and well-founded information without incurring unnecessary additional costs or
effort, including qualitative and quantitative analyses based on historical data, external credit risk ratings, and
forward-looking information. Using individual financial instruments or portfolios of instruments with similar
credit risk characteristics, the company compares the risk of default on the balance sheet date with that on the
initial recognition date to determine the change in default risk over the instrument's expected lifetime.
The company considers that the credit risk of financial instruments has increased significantly when one or
more of the following quantitative or qualitative criteria are met:
balance sheet date increases by more than a specified percentage compared to the initial recognition date.
financial condition, or existing or anticipated changes in the technological, market, economic, or legal
environment that would substantially impair the debtor's ability to repay the company's debts;
(2) Definitions of default and assets with incurred credit impairment
When a financial instrument meets one or more of the following conditions, the Company shall classify the
financial asset as having defaulted, with the criteria aligning with those for recognizing credit impairment:
the debtor's financial difficulties—concessions that the debtor would not have made under any other
circumstances.
The key parameters for measuring expected credit losses include the default probability, default loss ratio,
and default risk exposure.
The company's credit risk primarily stems from monetary funds and accounts receivable. To mitigate these
risks, the company has implemented the following measures.
(1) Cash and cash equivalents
Our company deposits bank deposits and other monetary funds with financial institutions that have high
credit ratings, resulting in relatively low credit risk.
(2) Accounts Receivable
Our company regularly conducts credit assessments for clients engaging in credit-based transactions.
Based on the assessment results, we select transactions only with accredited clients with sound credit profiles
and monitor their accounts receivable balances to ensure we avoid significant bad debt risks.
As the company's accounts receivable risk is distributed across multiple partners and customers, as of
December 31,2025,16.66% of its accounts receivable (compared to 8.17% as of December 31,2024) originated
from its top five customers. The company faces no significant credit concentration risk.
The maximum credit risk exposure assumed by our company is the book value of each financial asset on
the balance sheet.
(3) Liquidity Risk
Liquidity risk refers to the risk of insufficient funds when the Company fulfills its obligations settled by
cash or other financial assets. Such risk may arise from an inability to sell financial assets at fair value promptly;
from the counterparty's failure to repay its contractual obligations; from debts maturing ahead of schedule; or
from the failure to generate expected cash flows.
To mitigate this risk, the Company employs a comprehensive range of financing instruments, including bill
settlement and bank loans, while strategically combining long-term and short-term financing methods to
optimize its financing structure and maintain a balance between sustainability and flexibility. The Company has
secured credit lines from multiple commercial banks to meet its working capital requirements and capital
expenditures.
① Financial liabilities classified by remaining maturity dates
End-of-period amount
project The contract amount More than 3
book value Within 1 year 1-3 years
not discounted years
money borrowed for short time 203,925,721.98 203,925,721.98 203,925,721.98
notes payable 6,775,234.17 6,775,234.17 6,775,234.17
debit balance in suppliers’account 273,382,306.86 273,382,306.86 273,382,306.86
accounts payable-others 49,032,066.18 49,032,066.18 49,032,066.18
Non-current liabilities maturing
within one year
subtotal 604,015,242.91 604,015,242.91 604,015,242.91
（ continuous ）
Beginning balance
project The contract amount not More than 3
book value Within 1 year 1-3 years
discounted years
money borrowed for short time 128,127,987.75 128,127,987.75 128,127,987.75
notes payable
debit balance in suppliers’account 349,342,179.21 349,342,179.21 349,342,179.21
accounts payable-others 41,918,074.35 41,918,074.35 41,918,074.35
Non-current liabilities maturing
within one year
subtotal 617,571,126.49 617,571,126.49 617,571,126.49
②Hedging
The company has not conducted any hedging activities.
③ Transfer of financial assets
Transferred Termination
transition Nature of the transferred The criteria for determining the
finances Confirmation
way financial asset termination of a confirmation
Asset Amount The situation
Endorsement of a Termination It has transferred almost all of its risks
Bank Acceptance Bill 25,105,495.20
Bill Confirmation and rewards.
Amount of financial assets
Gains and losses related to the
Types of Financial Assets Transfer Method whose recognition has been
termination of recognition
terminated
receivables financing Endorsement Transfer 25,105,495.20
IX. Disclosure of Fair Value
End-of-period fair value
First-level Second-level Third-level fair
project
fair value fair value value amount to
measurement measurement measurement
I. Continuous Fair Value
Measurement
(I) Investments in Other Equity
Instruments
Total assets continuously
measured at fair value 741,953.00 741,953.00
II. Non-sustained fair value
measurement
(I) Receivables Financing 27,655,375.14 27,655,375.14
Total assets not measured at fair
value on a continuous basis 27,655,375.14 27,655,375.14
techniques employed and the qualitative and quantitative information on key parameters shall be
specified.
(1) For receivables financing held, the fair value shall be determined based on the face value;
(2) For other equity instrument investments held in Nanjing Yuhua Electroplating Factory and Hangzhou
Hongyan Electric Appliance Co., Ltd., since no significant changes have occurred in the operating environment,
business performance, or financial condition of the investee enterprises, the company measures these
investments at their cost as a reasonable estimate of fair value.
(3) For its other equity instrument investments in Beijing Likang General Information Equipment Co., Ltd.,
the company has measured the investments at zero yuan as a reasonable estimate of fair value, due to the
deterioration in the operating environment, business performance, and financial condition of the investee.
X. Related Parties and Related Transactions
The parent The voting
company's rights
Nature of registered shareholding proportion (%)
Parent Company Name Registered Address
Business capital percentage in of the parent
our company company in our
(%) company
No.359, Jiangdong
Electronic
China Electric Guorui Middle Road, 1,000,000,000.0
Equipment 53.49% 53.49%
Group Co., Ltd. Jianye District, 0
Manufacturing
Nanjing City
The ultimate controlling party is China Electronics Technology Group Corporation.
For details, refer to Note 7, Section 1: Composition of the Enterprise Group.
For details of the Company's significant joint ventures and associated enterprises, please refer to Note 7,
Section 4: Equity Interests in Joint Ventures or Associated Enterprises.
Relationships between other related
Other related party names
parties and the Company
China Far East International Tendering Co., Ltd. The same ultimate controlling party
China Putian Information Industry Group Co., Ltd. The same ultimate controlling party
China Putian Information Industry Co., Ltd. The same ultimate controlling party
The 55th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
The 54th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
The 48th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
The 14th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
The 28th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
Relationships between other related
Other related party names
parties and the Company
China Electric Rice Information Systems Co., Ltd. The same ultimate controlling party
China Electronics Technology Group Corporation Taili
The same ultimate controlling party
Communication Technology Co., Ltd.
China Electronics Technology Group Corporation Digital
The same ultimate controlling party
Technology Co., Ltd.
China Electronics Technology Group Corporation Financial
The same ultimate controlling party
Leasing Co., Ltd.
China Electric Science Popularization Technology Co., Ltd. The same ultimate controlling party
China Electronics Technology (Nanjing) Electronic
The same ultimate controlling party
Information Development Co., Ltd.
China Electronics Technology Group Corporation Metrology,
The same ultimate controlling party
Testing and Certification (Beijing) Co., Ltd.
China Electronics Technology Group Corporation Metrology,
The same ultimate controlling party
Testing and Certification (Beijing) Co., Ltd.
China Electronics Technology Group Corporation (Beijing)
The same ultimate controlling party
Network Information Security Co., Ltd.
Tianjin Putian Innovation and Entrepreneurship Technology
The same ultimate controlling party
Co., Ltd.
Tianbo Electronic Information Technology Co., Ltd. The same ultimate controlling party
Taiji Computer Co., Ltd. The same ultimate controlling party
Sichuang Electronics Co., Ltd. The same ultimate controlling party
Shanghai Post and Telecommunications Equipment Co., Ltd. The same ultimate controlling party
Shanghai Putian Youtong Technology Co., Ltd. The same ultimate controlling party
Putian Information Technology Co., Ltd. (Headquarters) The same ultimate controlling party
Putian Information Technology Co., Ltd. The same ultimate controlling party
Putian Information Engineering Design Service Co., Ltd. The same ultimate controlling party
Putian Communication Co., Ltd. The same ultimate controlling party
Putian Kechuang Industrial Co., Ltd. The same ultimate controlling party
Putian Rail Transit Technology (Shanghai) Co., Ltd. The same ultimate controlling party
Putian High-Tech Industrial Co., Ltd. The same ultimate controlling party
Nanjing Putian Information Technology Co., Ltd. The same ultimate controlling party
Nanjing Putian Technology Co., Ltd. The same ultimate controlling party
Nanjing Putian Hongyan Electric Appliance Technology Co.,
The same ultimate controlling party
Ltd.
Nanjing Nanman Electric Co., Ltd. The same ultimate controlling party
Nanjing Meichen Microelectronics Co., Ltd. The same ultimate controlling party
Nanjing Luopu Technology Co., Ltd. The same ultimate controlling party
Nanjing Luopu Co., Ltd. The same ultimate controlling party
Nanjing LaiSi Information Technology Co., Ltd. The same ultimate controlling party
Nanjing LaiSi Electronic Equipment Co., Ltd. The same ultimate controlling party
Nanjing Hikvision Digital Technology Co., Ltd. The same ultimate controlling party
Nanjing Guorui Xinwei Software Co., Ltd. The same ultimate controlling party
Nanjing Guorui Defense Systems Co., Ltd. The same ultimate controlling party
Nanjing Urban Rail Transit System Engineering Co., Ltd. The same ultimate controlling party
Liyang 28th System Equipment Co., Ltd. The same ultimate controlling party
The 15th Research Institute of China Electronics Technology
The same ultimate controlling party
Group Corporation
Hebei Yuandong Communication System Engineering Co.,
The same ultimate controlling party
Ltd.
Relationships between other related
Other related party names
parties and the Company
Hangzhou Hongyan Electric Power and Electrical Co., Ltd. The same ultimate controlling party
Hangzhou Hikvision Digital Technology Co., Ltd. Nanjing
The same ultimate controlling party
Branch
Hangzhou Hikvision Digital Technology Co., Ltd. Beijing
The same ultimate controlling party
Branch
Hangzhou Hikvision Technology Co., Ltd. The same ultimate controlling party
Guorui Technology Co., Ltd. The same ultimate controlling party
Dongfang Communication Co., Ltd. The same ultimate controlling party
Dianke Cloud (Beijing) Technology Co., Ltd. The same ultimate controlling party
Beijing Shouxin Co., Ltd. The same ultimate controlling party
Beijing Likang General Communication Equipment Co., Ltd. The same ultimate controlling party
Beijing Aotewei Technology Co., Ltd. The same ultimate controlling party
Nanjing Enrui Te Industrial Co., Ltd. The same ultimate controlling party
(1) Related-party transactions involving the purchase and sale of goods, or the provision and receipt of
services
① Status of purchased goods/accepted services
Related Party Amount for Previous period
affiliated party Transaction Details
this period amount
Telecommunications
Nanjing Nanman Electric Co., Ltd. 1,528,203.48
products
China Electronics Technology (Nanjing) Electronic Telecommunications
Information Development Co., Ltd. products
North China Institute of Computing Technology
Telecommunications
(The 15th Research Institute of China Electronics 106,155.75
products
Technology Group Corporation)
Nanjing Putian Hongyan Electric Appliance Telecommunications
Technology Co., Ltd. products
Hangzhou Hikvision Digital Technology Co., Ltd. Telecommunications
Beijing Branch products
Telecommunications
Nanjing Hikvision Digital Technology Co., Ltd. 175,221.24
products
China Electronics Technology Group Corporation Telecommunications
(Beijing) Network Information Security Co., Ltd. products
Telecommunications
Hangzhou Hikvision Technology Co., Ltd. 2,463.72
products
Status of goods sold/labor services provided
Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
The 14th Research Institute of China Electronics Telecommunicati 17,199,883.01
Technology Group Corporation ons products
Telecommunicati 7,657,210.21
Nanjing Luopu Co., Ltd. 6,906,815.92
ons products
Telecommunicati
Taiji Computer Co., Ltd. 7,823,909.31
ons products
Telecommunicati 5,864,967.64
Nanjing LaiSi Information Technology Co., Ltd. 5,213,666.44
ons products
The 28th Research Institute of China Electronics Telecommunicati 6,000,191.37
Technology Group Corporation ons products
Telecommunicati 364,908.62
Nanjing Guorui Defense Systems Co., Ltd. 2,646,933.52
ons products
Telecommunicati
Dianke Cloud (Beijing) Technology Co., Ltd. 2,411,247.78
ons products
Tianbo Electronic Information Technology Co., Telecommunicati 7,485,748.80
Ltd. ons products
Telecommunicati
Beijing Aotewei Technology Co., Ltd. 795,734.51
ons products
Nanjing Urban Rail Transit System Engineering Telecommunicati 365,128.87
Co., Ltd. ons products
Hebei Yuandong Communication System Telecommunicati 1,593,214.12
Engineering Co., Ltd. ons products
Putian Rail Transit Technology (Shanghai) Co., Telecommunicati 38,547.78
Ltd. ons products
China Electric Science Popularization Telecommunicati 10,517,699.10
Technology Co., Ltd. ons products
The 54th Research Institute of China Electronics Telecommunicati
Technology Group Corporation ons products
China Electronics Technology Group Telecommunicati 279,867.26
Corporation Digital Technology Co., Ltd. ons products
Nanjing Nanman Electric Co., Ltd. Telecommunicati 218,864.34
Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
ons products
China Electronics Technology Group Telecommunicati
Corporation Metrology, Testing and Certification ons products 216,162.42
(Beijing) Co., Ltd.
Telecommunicati 862,006.88
Nanjing Luopu Technology Co., Ltd. 166,845.57
ons products
Telecommunicati 3,174,272.98
Guorui Technology Co., Ltd. 139,432.18
ons products
The 55th Research Institute of China Electronics Telecommunicati
Technology Group Corporation ons products
Telecommunicati
Sichuang Electronics Co., Ltd. 63,716.82
ons products
Telecommunicati 154,098.76
Dongfang Communication Co., Ltd. 45,575.20
ons products
Telecommunicati 14,026.56
Nanjing LaiSi Electronic Equipment Co., Ltd. 22,455.75
ons products
Nanjing Enrui Te Industrial Co., Ltd. Telecommunicati 13,524.59
ons products
Tianjin Putian Innovation and Entrepreneurship Telecommunicati
Technology Co., Ltd. ons products
China Electronics Technology (Nanjing) Telecommunicati
Electronic Information Development Co., Ltd. ons products
Nanjing Guorui Xinwei Software Co., Ltd. Telecommunicati 1,242,354.90
ons products
Nanjing Meichen Microelectronics Co., Ltd. Telecommunicati 696,867.27
ons products
Hangzhou Hongyan Electric Power and Electrical Telecommunicati 296,681.42
Co., Ltd. ons products
Putian Kechuang Industrial Co., Ltd. Telecommunicati 65,929.22
ons products
Putian Kechuang Industrial Co., Ltd. Telecommunicati 43,628.32
ons products
Related Party Amount for this Previous period
affiliated party Transaction
Details period amount
The 48th Research Institute of China Electronics Telecommunicati 43,504.03
Technology Group Corporation ons products
China Electric Rice Information Systems Co., Telecommunicati 460.18
Ltd. ons products
(2) Related leasing arrangements
① Our company acts as the lessor
Types of leased Lease income Lease income
Leaseholder Name recognized in this recognized in the
assets period previous period
The 14th Research Institute of China
House and Property
Electronics Technology Group 1,754,162.79 1,824,804.99
Income
Corporation
House and Property
Nanjing Luopu Co., Ltd. 395,238.10 395,238.10
Income
China Electronics Technology Group
House and Property
Corporation Metrology, Testing and 194,400.00 194,400.00
Income
Certification (Beijing) Co., Ltd.
② Our company, as the lessee
Simplified calculation of Interest expense on
Increased assets of
rental expenses for short- The rent paid leased liabilities
usage rights
term leases incurred
Type
Cur
s of
ren
Landlord lease
Previous Previous Previous t Previous
Name d Current Current Current
period period period per period
asset period period period
occurrence occurrence occurrenc iod occurrence
s amount amount amount
amount amount e amount am amount
oun
t
Putian High-
Tech buildi
Industrial Co., ngs
Ltd.
China
Electronics
Technology mach
Group inery
Corporation equip
Financial ment
Leasing Co.,
Ltd.
Beijing
buildi
Shouxin Co., 1,034,448.46 889,651.45
ngs
Ltd.
(3) Guarantee from an affiliated party
Our company is the guaranteed party.
amount Guarantee Start Guarantee Maturity Has the guarantee been fully
Guarantor
guaranteed Date Date fulfilled?
China Electric Guorui Group
Co., Ltd.
China Electric Guorui Group
Co., Ltd.
Note: The Company repaid the loan on March 17,2026, and as of the reporting date, the aforementioned
guarantees have been fully fulfilled.
(4) Loans to related parties and interest expenses
Previous period occurrence
Related Party Current period amount /
affiliated party amount/period opening
Transaction Details End-of-period balance
balance
Principal amount of
China Putian Information Industry Co., Ltd. 86,800,000.00
entrusted loan
China Putian Information Industry Co., Ltd. Debt loan interest 3,505,635.00 4,354,177.50
China Electronic Technology Finance Co.,
Loan principal 70,000,000.00 70,000,000.00
Ltd.
China Electronic Technology Finance Co.,
cost of money 2,446,430.56 2,696,708.34
Ltd.
China Electronics Technology Group
Other interest 63,824.48 79,729.23
Corporation Financial Leasing Co., Ltd.
Principal amount of
China Electric Guorui Group Co., Ltd. 66,800,000.00
entrusted loan
China Electric Guorui Group Co., Ltd. Debt loan interest 33,567.00
(5) Funds deposited with China Electronic Technology Finance Co., Ltd. and interest income for the
current period
project Amount for this period Previous period amount
Deposited with a financial company 172,779,922.93 287,204,290.64
Interest income for this period 373,400.64 59,651.77
(6) Compensation for Key Management Personnel
project Amount for this period Previous period amount
Remuneration for Key Management Personnel 3,281,506.00 3,220,349.00
(1) Accounts Receivable Items
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
accounts receivable ：
The 28th Research Institute of
China Electronics Technology 15,663,961.54 399,668.76 13,445,649.66 205,355.90
Group Corporation
Nanjing LaiSi Information 14,814,554.61 823,900.28 14,023,177.32 436,062.33
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Technology Co., Ltd.
The 14th Research Institute of
China Electronics Technology 12,947,983.94 129,479.84 18,560,060.00 185,600.60
Group Corporation
Shanghai Putian Youtong
Technology Co., Ltd.
Taiji Computer Co., Ltd. 8,204,723.11 82,047.28 2,796.40 279.64
Hebei Yuandong Communication
System Engineering Co., Ltd.
China Electric Science
Popularization Technology Co., 5,414,212.80 336,471.28 8,231,212.80 174,760.64
Ltd.
Putian Information Technology
Co., Ltd.
Putian Communication Co., Ltd. 4,317,924.00 4,317,924.00 4,317,924.00 3,729,909.00
Nanjing Luopu Co., Ltd. 4,238,987.48 42,389.87 178,712.22 1,787.12
Nanjing Guorui Defense Systems
Co., Ltd.
China Putian Information Industry
Co., Ltd.
Dianke Cloud (Beijing)
Technology Co., Ltd.
Tianbo Electronic Information
Technology Co., Ltd.
Nanjing Urban Rail Transit
System Engineering Co., Ltd.
The 54th Research Institute of
China Electronics Technology 499,364.00 4,993.64
Group Corporation
Shanghai Post and
Telecommunications Equipment
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Co., Ltd.
China Electronics Technology
Group Corporation Digital 253,022.35 2,530.27
Technology Co., Ltd.
Nanjing Nanman Electric Co., Ltd. 178,506.17 2,350.78 105,299.54 1,053.00
Putian Rail Transit Technology
(Shanghai) Co., Ltd.
Sichuang Electronics Co., Ltd. 143,812.88 60,045.38 135,557.43 133,377.18
Guorui Technology Co., Ltd. 109,957.83 1,387.58 2,404,882.65 24,048.83
Nanjing Meichen Microelectronics
Co., Ltd.
Nanjing Luopu Technology Co.,
Ltd.
The 55th Research Institute of
China Electronics Technology 80,000.00 800.00
Group Corporation
Nanjing Guorui Xinwei Software
Co., Ltd.
China Electronics Technology
(Nanjing) Electronic Information 12,000.00 1,200.00 12,000.00 600.00
Development Co., Ltd.
China Electronics Technology
Group Corporation Metrology,
Testing and Certification (Beijing)
Co., Ltd.
Liyang 28th System Equipment
Co., Ltd.
Dongfang Communication Co.,
Ltd.
China Electronics Technology
Group Corporation Taili
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Communication Technology Co.,
Ltd.
China Electric Rice Information
Systems Co., Ltd.
amount to 100,210,027.64 25,366,546.63 96,532,702.01 23,252,424.22
bill receivable ：
The 28th Research Institute of
China Electronics Technology 3,259,620.00 162,981.00
Group Corporation
Nanjing Guorui Xinwei Software
Co., Ltd.
China Electric Science
Popularization Technology Co., 747,000.00
Ltd.
Nanjing Meichen Microelectronics
Co., Ltd.
amount to 7,782,406.81 411,259.68
advance payment ：
Hangzhou Hikvision Technology
Co., Ltd.
amount to 34,875.00
accounts receivable-other ：
Nanjing Putian Technology Co.,
Ltd.
Putian Information Technology
Co., Ltd.
Beijing Shouxin Co., Ltd. 84,900.52 4,245.03
China Far East International
Tendering Co., Ltd.
The 14th Research Institute of
China Electronics Technology
ending balance Year-end balance
project name book balance bad debt book balance bad debt provision
provision
Group Corporation
Putian Information Engineering
Design Service Co., Ltd.
China Putian Information Industry
Co., Ltd.
Beijing Likang General 28,912,122.71 28,912,122.71 28,912,122.71
Communication Equipment Co., 28,912,122.71
Ltd.
Hangzhou Hikvision Technology 22,630.00 22,630.00
Co., Ltd.
Hangzhou Hikvision Digital
Technology Co., Ltd. Nanjing 2,766.00 2,766.00 2,766.00 2,766.00
Branch
amount to 31,273,621.09 31,100,072.57 31,090,938.43 31,090,938.43
(2) Accounts Payable Items
project name ending balance Year-end balance
debit balance in suppliers’account ：
China Putian Information Industry Co., Ltd. 14,918,045.42 14,918,045.42
China Electronics Technology (Nanjing)
Electronic Information Development Co., Ltd.
Nanjing Nanman Electric Co., Ltd. 3,030,412.33 2,530,091.68
Nanjing Putian Hongyan Electric Appliance
Technology Co., Ltd.
Putian High-Tech Industrial Co., Ltd. 25,000.00 25,000.00
amount to 23,101,363.44 24,355,987.10
accounts payable-others ：
China Putian Information Industry Group Co.,
Ltd.
Putian High-Tech Industrial Co., Ltd. 1,442,202.94 1,814,696.94
Nanjing Putian Information Technology Co., 2,467,412.69
Ltd.
project name ending balance Year-end balance
Putian Communication Co., Ltd. 200,000.00
amount to 13,501,228.13 14,073,722.13
Contract Liability:
China Putian Information Industry Co., Ltd. 3,727,418.22 3,727,418.22
China Putian Information Industry Group Co., 11,716.35
Ltd.
amount to 3,739,134.57 3,727,418.22
XI. Commitments and Contingent Matters
As of December 31,2025, the Company has no material commitments requiring disclosure.
On March 19, 2026, our company signed a loan contract with the Nanjing Military Administration Branch
of Industrial and Commercial Bank of China, Ltd., borrowing 70 million yuan. The loan period is from March
of our company, and at the same time, a pledge is set on 40.70% equity (corresponding to the capital
contribution of 20.6349 million yuan) of our subsidiary Nanjing Nanfang Telecommunication Co., Ltd. and
Putian Tianji Building Intelligence Co., Ltd.
The loan funds were fully received on March 27, 2026, and the company used the funds on the same day to
repay the long-term loan of 70 million yuan from China Electronics Technology Finance Co., Ltd.
As of the reporting date, there are no other post-balance sheet events that should be disclosed.
XII. Events Occurring After the Balance Sheet Date
On March 19,2026, the Company entered into a loan agreement with the Nanjing Military Administration
Branch of Industrial and Commercial Bank of China Limited, for a loan amount of RMB 70.00 million, with the
loan term running from March 19,2026, to January 1, 2029. The loan was secured by a mortgage on the
Company's industrial plant and R&D building, and by pledges representing 40.70% equity in its subsidiary
Nanjing Southern Telecommunications Co., Ltd. (corresponding to an investment of RMB 20.6349 million) and
investment of RMB 3.8420 million).
The aforementioned loan funds were fully received on March 27,2026, and the company used these funds
specifically on the same day to repay the long-term loan of RMB 70 million from China Electronic Technology
Finance Co., Ltd.
The aforementioned matters are non-adjustable events occurring after the balance sheet date and do not
affect the financial position or operating results as of that date. This significant financing and debt restructuring
transaction has a substantial impact on the company's future financial condition and debt repayment
arrangements; therefore, it is disclosed.
XIII. Other Important Matters
(I) Branch Report
The company determines its reporting divisions based on its internal organizational structure, management
requirements, and internal reporting systems, with product divisions serving as the fundamental basis.
Performance evaluations are conducted separately for video conferencing products, integrated wiring products,
distribution wiring products, and other business segments. Assets and liabilities shared among the divisions are
allocated proportionally according to their respective scales.
The company determines its reporting segments based on product segments. The assets and liabilities of
each segment represent the actual amounts utilized, while the main business revenue and costs correspond to
those of each respective product segment.
video Integrated Communication
Inter-branch
project conferencing Cabling basic products
offset
product product and others
I. Operating Revenue 268,214,493.37 294,056,233.62 58,699,666.27 -3,330,908.30
II. Operating Costs 213,171,492.80 234,606,345.38 42,333,131.57 -2,590,572.80
III. Investment Returns from Joint Ventures and
Cooperative Enterprises
IV. Credit Impairment Loss -1,185,514.08 -716,953.54 -5,076,651.34
V. Asset Impairment Loss -106,579.56 -2,131,109.47
VI. Depreciation and Amortization Expenses 277,013.39 2,495,369.38 5,531,588.07 310,939.20
VII. Total Profit 3,398,114.22 15,994,494.86 -9,346,093.51 -9,596,339.20
VIII. Income Tax Expenses 415,356.55 943,063.95
IX. Net Profit 2,982,757.67 15,051,430.91 -9,346,093.51 -9,596,339.20
X. Total Assets 313,824,081.88 313,570,007.02 273,927,700.50 -171,398,192.43
XI. Total Liabilities 196,000,185.60 204,374,209.00 373,483,600.62 -131,536,544.28
(II) Others
The Company has pledged the equity stake of 56.28% in Nanjing Southern Telecommunications Co., Ltd.,
corresponding to an investment amount of RMB 28.534 million, to China Electronics Guorui Group Co., Ltd.
(hereinafter referred to as the Parent Company) for its use in entrusting a financial company to disburse a loan
to the Company. The Parent Company provided a guarantee for the Company's loan from China Electronics
Technology Finance Co., Ltd. In return, the Company pledged the equity stake of 40% in its subsidiary Nanjing
Putian Tianji Building Intelligence Co., Ltd., corresponding to an investment amount of RMB 8 million, to the
Parent Company. Additionally, the Company pledged the equity stake of 40% in its subsidiary Nanjing Putian
Datang Information Electronics Co., Ltd., corresponding to an investment amount of RMB 4 million, to China
Electronics Finance Leasing Co., Ltd. for the purpose of securing a financial leasing transaction with the latter.
The aforementioned equity stakes in the subsidiaries remain subject to transfer restrictions until the pledges are
lifted.
XIV. Notes to Key Items in the Parent Company's Financial Statements
(1) Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 26,145,588.39 47,287,939.57
More than 5 years 164,589,421.40 156,866,329.69
subtotal 232,355,887.18 248,955,102.33
Less: Bad debt provision 171,443,995.15 168,397,267.69
amount to 60,911,892.03 80,557,834.64
(2) Classified presentation according to the bad debt provisioning method
ending balance
book balance bad debt provision
class
Percentage Proportion book value
amount of money amount of money
(%) (%)
accounts receivable for
which bad debt
provisions are made on a
per-item basis
Accounts receivable for
which bad debt
ending balance
book balance bad debt provision
class
Percentage Proportion book value
amount of money amount of money
(%) (%)
provisions are made on a
combined basis
among ：
combination 1: Age of
Account Combination
Combination 2: Related
Parties Combination
amount to 232,355,887.18 —— 171,443,995.15 —— 60,911,892.03
（ continuous ）
Year-end balance
book balance bad debt provision
class
Percentage book value
amount of money amount of money Proportion (%)
(%)
accounts receivable
for which bad debt
provisions are made
on a per-item basis
Accounts receivable
for which bad debt
provisions are made
on a combined basis
among ：
combination 1: Age of
Account Combination
Combination 2:
Related Parties 4,650,377.00 1.87 4,650,377.00
Combination
amount to 248,955,102.33 —— 168,397,267.69 —— 80,557,834.64
① Accounts receivable for which a separate bad debt provision is made at the end of the period
ending balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
The recovery process
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
carries risks.
The recovery process
Xu Mou 17,591,683.74 17,591,683.74 100.00
carries risks.
The recovery process
China Tower Co., Ltd. 13,819,926.92 13,819,926.92 100.00
carries risks.
The recovery process
Putian Information Technology Co., Ltd. 4,450,269.30 4,450,269.30 100.00
carries risks.
China Railway Communication and
The recovery process
Signal Shanghai Engineering Group Co., 3,527,803.35 3,527,803.35 100.00
carries risks.
Ltd.
The recovery process
other 15,419,803.33 15,419,803.33 100.00
carries risks.
amount to 74,517,573.18 74,517,573.18 100.00 ——
Continue the table above
Year-end balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
The recovery process
Dongpo Xi Laos Co., Ltd. 19,708,086.54 19,708,086.54 100.00
carries risks.
The recovery process
Xu Mou 17,591,683.74 17,591,683.74 100.00
carries risks.
The recovery process
China Tower Co., Ltd. 13,819,926.92 13,819,926.92 100.00
carries risks.
The recovery process
Putian Information Technology Co., Ltd. 4,514,800.91 4,514,800.91 100.00
carries risks.
China Railway Communication and Signal The recovery process
Shanghai Engineering Group Co., Ltd. carries risks.
other 15,419,803.33 15,419,803.33 100.00 The recovery process
Year-end balance
Proportion
Accounts Receivable (by Unit) bad debt
book balance of Calculation Basis
provision
Deduction
carries risks.
amount to 74,588,880.79 74,588,880.79 100.00 ——
② Accounts receivable for which bad debt provisions are calculated based on the aging group within the
combination
ending balance
project
book balance bad debt provision Proportion (%)
Within 1 year 22,375,531.98 223,755.32 1.00
More than 5 years 90,126,828.22 90,126,828.22 100.00
amount to 150,935,016.59 96,926,421.97 64.22
（ continuous ）
Year-end balance
project
book balance bad debt provision Proportion (%)
Within 1 year 42,637,562.57 426,375.63 1.00
More than 5 years 86,249,993.43 86,249,993.43 100.00
amount to 169,715,844.54 93,808,386.90 55.27
(3) Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Accruishment
based on the
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
aging of
accounts
receivable
Individual
Provisioning
amount to 168,397,267.69 3,118,035.07 71,307.61 171,443,995.15
Among these: The amount of bad debt provisions recovered or reversed in this period is significant.
Amount to be recovered or
name of organization Recovery Method
reversed
Putian Information Technology Co., Ltd. 64,531.61 Recovered Amount
China Railway Communication and Signal 6,776.00
Recovered Amount
Shanghai Engineering Group Co., Ltd.
amount to 71,307.61 ——
(4) Details of the top five accounts receivable by the debtor's end-of-period balances
End-of-period Proportion (%) of the End-of-period
Debtor's Name balance of accounts total ending balance of balance of bad debt
receivable accounts receivable provisions
Dongpo Xi Laos Co., Ltd. 19,708,086.54 8.48 19,708,086.54
Xu Mou 17,591,683.74 7.57 17,591,683.74
The 14th Research Institute
of China Electronics
Technology Group
Corporation
China Tower Co., Ltd. 13,819,926.92 5.95 13,819,926.92
Shanghai Putian Youtong
Technology Co., Ltd.
amount to 72,250,780.24 31.10 59,998,986.69
project ending balance Year-end balance
dividends receivable 28,685,400.00 19,400,000.00
accounts receivable-other 1,805,885.66 3,494,075.34
amount to 30,491,285.66 22,894,075.34
(1) Dividends receivable
① Dividend receivable status
Project (or the invested entity) ending balance Year-end balance
Subsidiary dividend 28,685,400.00 19,400,000.00
(2) Other Receivables
① Disclosure by aging of accounts
Account Age ending balance Year-end balance
Within 1 year 886,060.97 944,116.13
More than 5 years 37,528,845.74 39,110,865.61
subtotal 45,140,011.19 45,067,177.97
Less: Bad debt provision 43,334,125.53 41,573,102.63
amount to 1,805,885.66 3,494,075.34
② Classification by nature of funds
Book balance at the end
Nature of the Fund End-of-period book balance
of the previous year
Accounts Receivable and Payables 40,613,763.14 39,807,462.57
Deposit Guarantee Fund 3,702,805.50 4,391,570.77
Business travel petty cash fund 31,492.59 32,492.59
other 791,949.96 835,652.04
subtotal 45,140,011.19 45,067,177.97
Less: Bad debt provision 43,334,125.53 41,573,102.63
amount to 1,805,885.66 3,494,075.34
③ Provision for bad debts
stage Ⅰ stage Ⅱ phase III
Expected credit
Expected credit
losses throughout
losses throughout
bad debt provision Expected credit the entire amount to
the entire duration
losses over the duration (where
(incorporating
next 12 months no credit
already occurred
impairment has
credit impairment)
occurred)
Year-end balance 10,595,007.73 30,978,094.90 41,573,102.63
This period's accrual 1,761,022.90 1,761,022.90
stage Ⅰ stage Ⅱ phase III
Expected credit
Expected credit
losses throughout
losses throughout
bad debt provision Expected credit the entire amount to
the entire duration
losses over the duration (where
(incorporating
next 12 months no credit
already occurred
impairment has
credit impairment)
occurred)
ending balance 12,356,030.63 30,978,094.90 43,334,125.53
④ Status of bad debt provisions
Amount of Change for This Period
Year-end
class Accruishment Recover or Write-off or ending balance
balance
Roll Back cancellation
Age of Debt 10,595,007.73 1,761,022.90 12,356,030.63
Provision
Individual 30,978,094.90 30,978,094.90
Provisioning
amount to 41,573,102.63 1,761,022.90 43,334,125.53
⑤ Details of the top five other receivables by the debtor's accumulated ending balances
Proportion (%) of
bad debt
name of Nature of the total ending
ending balance Account Age provision
organization the Fund balance of other
ending balance
receivables
Beijing Likang
Accounts
General
Receivable
Communication 28,912,122.71 More than 5 years 64.05 28,912,122.71
and
Equipment Co.,
Payables
Ltd.
Accounts
Nanjing Putian 21,306.39; 4–5
Receivable
Technology Co., 1,784,619.72 years: 504,197.5; 3.95 1,784,619.72
and
Ltd. over 5 years:
Payables
Nanjing Putian Accounts
Communication Receivable 805,545.63 More than 5 years 1.78 805,545.63
Industrial Co., and
Proportion (%) of
bad debt
name of Nature of the total ending
ending balance Account Age provision
organization the Fund balance of other
ending balance
receivables
Ltd. Payables
Nanjing Putian Accounts
Tianji Building Receivable
Intelligence Co., and
Ltd. Payables
Nanjing
Municipal Office
for the
Management of Deposit
Wage Guarantee Guarantee 400,000.00 More than 5 years 0.89 400,000.00
Funds for Fund
Migrant Workers
in Construction
Enterprises
amount to —— 32,379,216.78 —— 71.73 31,902,288.06
(1) Classification of Long-term Equity Investments
ending balance Year-end balance
project Impairment Impairment
book balance book value book balance book value
Provision Provision
Investment
in a 43,226,458.52 1,294,510.00 41,931,948.52 43,226,458.52 1,294,510.00 41,931,948.52
subsidiary
Investment
in joint
ventures
and
cooperative
enterprises
amount to 43,226,458.52 1,294,510.00 41,931,948.52 53,639,141.89 1,294,510.00 52,344,631.89
(2) Investment in subsidiaries
An
Redu impairmen
Add End-of-period
ce in t provision
Year-end to balance of
Invested entity this ending balance has been
balance this impairment
perio recognize
issue provision
d d for this
period.
Nanjing Putian
Tianji Building
Intelligence Co.,
Ltd.
Nanjing Southern
Telecommunicatio 33,175,148.00 33,175,148.00
ns Co., Ltd.
Nanjing Putian
Datang
Information 5,436,797.07 5,436,797.07
Electronics Co.,
Ltd.
Nanjing Putian
Communication
Technology Co.,
Ltd.
amount to 43,226,458.52 43,226,458.52 1,294,510.00
(3) Investment in joint ventures and cooperative enterprises
Changes in this period
Investment
Other
gains and
additi Compreh
losses Other
Invested entity Year-end balance onal ensive
disinvestment recognized changes in
invest Income
under the equity
ment Adjustm
equity
ents
method
I. Joint Venture
Changes in this period
Investment
Other
gains and
additi Compreh
losses Other
Invested entity Year-end balance onal ensive
disinvestment recognized changes in
invest Income
under the equity
ment Adjustm
equity
ents
method
Enterprise
Nanjing Puzhu
Guang Network Co., 10,412,683.37 10,412,571.93 -111.44
Ltd.
amount to 10,412,683.37 10,412,571.93 -111.44
（ continuous ）
Changes in this period
End-of-period
Announcement
Make an balance of
Invested entity of cash dividend ending balance
impairment other impairment
or profit
provision provision
distribution
I. Joint Venture
Enterprise
Nanjing Puzhu
Guang Network Co.,
Ltd.
amount to
Amount for this period Previous period amount
project
income prime cost income prime cost
main business 27,485,458.90 22,537,378.95 52,233,048.58 48,797,119.68
Other Businesses 4,298,993.26 533,440.19 3,222,939.20 34,374.12
amount to 31,784,452.16 23,070,819.14 55,455,987.78 48,831,493.80
(2) Income and Cost Breakdown Information
Income Category Amount for this period Previous period amount
income prime cost income prime cost
Classified by business
type
communications 29,242,844.06 22,569,900.97 53,039,727.38 48,831,493.80
industry
Classification by sales
channel
Direct Sale 29,242,844.06 22,569,900.97 53,039,727.38 48,831,493.80
(3) Description of Performance Obligations
The nature of the
The amount The type of quality
goods for which Are you the
Fulfill expected to be assurance provided
Important payment the company primary
project performance refunded to the by the company and
terms undertakes to responsible
obligations customer by the the corresponding
transfer party?
company obligations
ownership
Make installment
Customer
payments
Sell video acceptance Video
according to the Warranty period:
conferencing project or conferencing yes not have
time nodes Warranty
products signed product
specified in the
goods
contract.
Make installment
Sales of basic Customer
payments
communication acceptance Basic
according to the Warranty period:
and project or Communication yes not have
time nodes Warranty
networking signed Products
specified in the
products goods
contract.
(5) Explanation of allocation to the remaining performance obligations
At the end of this reporting period, the revenue corresponding to performance obligations under signed
contracts that remain unperformed or incomplete amounted to RMB 8.8698 million, of which the full amount is
expected to be recognized as revenue in fiscal year 2026.
project Amount for this period Previous period amount
Gains from long-term equity investments -111.44 -5.77
accounted for using the equity method
Investment income generated from long-term 7,389,153.73 50,443,030.29
equity investments
The income from long-term equity investment
accounted for using the cost method
Investment income generated from debt 643,686.83
restructuring
amount to 60,475,665.77
XV. Supplementary Information
amount of
project explain
money
Gains or losses from the disposal of non-liquid assets, including the offset
portion of asset impairment provisions already recognized;
Government grants recognized in current period profit or loss shall exclude
those that are closely related to the company's normal business operations,
comply with national policy regulations, are received according to 1,951,399.86
established standards, and exert a sustained impact on the company's
financial results.
Reversal of impairment provisions for receivables subjected to separate
impairment testing;
Profit or loss from debt restructuring; 649,103.12
Other non-operating income and expenses other than those mentioned
above.
Other profit and loss items that meet the definition of non-recurring gains
and losses
Total non-recurring gains and losses before income tax 17,915,555.52
reduction: Amount affected by income tax 324,120.69
Total non-recurring gains and losses after income tax deduction 17,591,434.83
Impact of minority shareholders' profit/loss (losss are indicated with "-") 895,779.38
Net profit excluding non-recurring gains and losses attributable to the
owners of the parent company
Weighted Average earnings per share
Profit for the reporting period Net Assets Basic Earnings diluted earnings
rate of return （%） Per Share per share
Net profit attributable to the company's ordinary -83.73 -0.04 -0.04
stockholders
Net profit attributable to common shareholders -231.50 -0.12 -0.12
after deducting non-recurring gains and losses
(1) Differences in net profit and net assets disclosed in financial reports under both international accounting
standards and Chinese accounting standards
□ Applicable Not Applicable
(2) Differences in net profit and net assets disclosed in financial reports under both overseas accounting
standards and Chinese accounting standards
□ Applicable Not Applicable
(3) Explanation of the reasons for differences in accounting data under domestic and foreign accounting
standards. For data that has already been audited by overseas auditing institutions and adjusted for differences,
the name of the overseas institution should be indicated
□ Applicable Not Applicable
Board of Directors of Nanjing Putian Telecommunications Co., Ltd.
April 22, 2026
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