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                       The 2025 Annual Report of Hangcha Group Co., Ltd.
Stock Code: 603298                                              Company Name: Hangcha Group
                     Hangcha Group Co., Ltd.
                                  April 2026
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
                                        Important Notes
supervisors and senior executives hereby warrant that the information contained in this
annual report is true, accurate and complete without any fictitious records, misleading
statements or material omissions, and severally and jointly assume legal responsibility
thereof.
a standard unqualified audit report for the Company.
of accounting work and Yuan Guanghui, the officer in charge of the accounting institution
(Accounting Officer), hereby declare and warrant that the financial statements in the annual
report are authentic, accurate, and complete.
additional share capital for the Reporting Period after consideration by the Board of
Directors
According to Pan-China Audit [2026] No.7708 issued by Pan-China Certified Public Accountants
LLP, as of December 31, 2025, the consolidated financial statements of the Company indicated
operating revenue of RMB17,738,651,997.86, net profit attributable to shareholders of the listed
company amounted to RMB2,191,315,695.90, and distributable profit available to the parent
company at the end of the period was RMB6,906,647,393.44. Neither statutory surplus reserve nor
discretionary surplus reserve was accrued for the year. Considering the future capital requirements,
cash flow, and sustained returns to shareholders, the Board of Directors resolved on the following
profit distribution plan:
shareholders. As of December 31, 2025, based on the total share capital of1,309,812,0499 shares
of the Company, the total cash dividend amount to be distributed is RMB523,924,819.60(tax
inclusive). The total cash dividends represent23.91% of the net profit attributable to shareholders
of the listed company for 2025. The remaining undistributed profits of the parent company,
amounting to RMB6,382,722,573.84, are carried over to the following year.
On November 26, 2025, the Company implemented the equity distribution for the first three
quarters of 2025, distributing a cash dividend of RMB2.00 (tax inclusive) per 10 shares,
amounting to a total of RMB261,962,409.80. For details, please refer to the Announcement on the
Implementation of Equity Distribution for the First Three Quarters of 2025 (Announcement No.
The cash dividends distributed by the Company for 2025 totalledRMB785,887,229.40, accounting
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
for 35.86% of the net profit attributable to shareholders of the listed company for 2025.
year.
In case of any change to the total share capital of the Company prior to the registration date for the
equity distribution, the per-share distribution amount will remain unchanged, while the total
distribution amount will be adjusted accordingly.
The profit distribution plan is subject to the deliberation at the 2025 Annual General Meeting of
the Company.
Unrecovered Losses in the Parent Company as of the End of the Reporting Period and the
Impact thereof on the Company's Dividend and Other Matters
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
The forward-looking statements carried in this report, such as future plans, do not constitute any
substantial commitments of the Company to investors. Please be cautious about the investment
risks.
and any other related party
No
decision-making procedures
No
authenticity, accuracy and completeness of the annual report disclosed by the Company
No
The Report has described the significant risks that may adversely affect the future development of
the Company and the realization of its business objectives in detail in "Section III Management
Discussion and Analysis¡±. Apart from this, there are no other significant risks that the Company
needs to disclose separately.
"¡õ Applicable" "¡Ì Not applicable"
                                      The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                      Table of Contents
                                      Financial statements signed and sealed by the legal representative of the Company,
                                      the officer in charge of accounting work and the officer in charge of the accounting
                                      institution.
    Documents for Future
                                      Original Audit Report bearing the seal of the accounting firm and the signatures of
        Reference
                                      the CPAs who have performed the audit.
                                      Originals of all company documents and announcements that are disclosed in the
                                      newspapers designated by the CSRC during the Reporting Period.
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
                                         Chapter 1 Definitions
Unless otherwise stated in the context, the following words and terms in this report shall be construed as
follows:
                                   Definition of frequently used words and terms
CSRC, Securities Regulatory
                                   Refers to   China Securities Regulatory Commission
Commission
SSE, Stock Exchange                Refers to   Shanghai Stock Exchange
Company Law                        Refers to   Company Law of the People's Republic of China
Securities Law                     Refers to   Securities Law of the People's Republic of China
The Articles of Association        Refers to   The Articles of Association of Hangcha Group Co., Ltd.
Hangcha Group, the Company,
                                   Refers to   Hangcha Group Co., Ltd.
Company
                                               Zhejiang Hangcha Holding Co., Ltd., the controlling shareholder of the
Hangcha Holding                    Refers to
                                               Company
                                               Hangzhou Industrial Investment Group Co., Ltd., the state-owned legal
HIIG                               Refers to
                                               person shareholder of the Company
Hangzhou Forklift & Metal                      Hangzhou Forklift & Metal Working & Welding Co., Ltd., a subsidiary
                                   Refers to
Working & Welding                              of the Company
Hangzhou Forklift Frame            Refers to   Hangzhou Forklift Frame Co., Ltd., a subsidiary of the Company
Hangcha Bridge Box                 Refers to   Hangzhou Hangcha Bridge Box Co., Ltd., a subsidiary of the Company
                                               Hangzhou Hangcha KL Forklift Components Co., Ltd., a subsidiary of
KL Forklift Components             Refers to
                                               the Company
                                               Hangzhou Hangcha Electric Appliance Co., Ltd., a subsidiary of the
Hangcha Electric Appliance         Refers to
                                               Company
                                               Hangzhou Hangcha Machinery Processing Co., Ltd., a subsidiary of the
Hangcha Machinery                  Refers to
                                               Company
Hangcha Casting                    Refers to   Hangzhou Hangcha Casting Co., Ltd., a subsidiary of the Company
                                               Hangzhou Hangcha Materials Trade Co., Ltd., a wholly owned
Hangcha Materials                  Refers to
                                               subsidiary of the Company
Hangcha Cab                        Refers to   Hangzhou Hangcha Cab Co., Ltd., a subsidiary of the Company
Hangcha    Aerial     Platform                 Hangzhou Hangcha Aerial Platform Equipment Co., Ltd., a subsidiary
                                   Refers to
Equipment                                      of the Company
                                               Hangzhou Hangcha Machinery Equipment Manufacturing Co., Ltd., a
Hangcha Machinery Equipment        Refers to
                                               subsidiary of the Company
                                               Hangzhou Hangzhong Construction Machinery Co., Ltd., a subsidiary
Hangzhong Machinery                Refers to
                                               of the Company
                                               Zhejiang Hangcha Guozi Robotics Co., Ltd., a subsidiary of the
Guozi Robotics                     Refers to
                                               Company
                                               Baoji Hangcha Engineering Machinery Co., Ltd., a subsidiary of the
Baoji Hangcha                      Refers to
                                               Company
                                               Hefei Hanhe Intelligent Logistics Technology Co., Ltd., a subsidiary of
Hanhe Intelligent                  Refers to
                                               the Company
                                               Hangcha Group (Tianjin) New Energy Forklift Co., Ltd., a wholly
Hangcha Tianjin New Energy         Refers to
                                               owned subsidiary of the Company
                                               Zhejiang Hangcha Okamura Intelligent Technology Co., Ltd, a
Hangcha Okamura                    Refers to
                                               subsidiary of the Company
                                               Hangzhou Hangcha Precision Manufacturing Co., Ltd., a subsidiary of
Hangcha Precision                  Refers to
                                               the Company
                                               Hangzhou Hangcha Yunrui Technology Co., Ltd., a subsidiary of the
Hangcha Yunrui                     Refers to
                                               Company
Zhejiang Hangbo Electric           Refers to   Zhejiang Hangbo Electric Drive Co., Ltd., a subsidiary of the Company
Zhejiang Zhichujia                 Refers to   Zhejiang Zhichujia Material Handling Equipment Co., Ltd., a
                         The 2025 Annual Report of Hangcha Group Co., Ltd.
                                       subsidiary of the Company
                                       Shanghai Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Shanghai Hangcha           Refers to
                                       Company
Wuxi Hangcha               Refers to   Wuxi Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Suzhou Hangcha             Refers to   Suzhou Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Wuhan Hangcha              Refers to   Wuhan Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Nantong Hangcha            Refers to   Nantong Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Kunshan Hangcha            Refers to   Kunshan Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Taizhou Hangcha            Refers to   Taizhou Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Xuzhou Hangcha             Refers to   Xuzhou Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Beijing Hangcha            Refers to   Beijing Hangcha Forklift Co., Ltd., a subsidiary of the Company
                                       Yancheng Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Yancheng Hangcha           Refers to
                                       Company
Gansu Hangcha              Refers to   Gansu Hangcha Forklift Co., Ltd., a subsidiary of the Company
Fujian Hangcha             Refers to   Fujian Hangcha Forklift Co., Ltd., a subsidiary of the Company
Taixing Hangcha            Refers to   Taixing Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Yantai Hangcha             Refers to   Yantai Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Jinan Hangcha              Refers to   Jinan Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Qingdao Hangcha            Refers to   Qingdao Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
                                       Changchun Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Changchun Hangcha          Refers to
                                       Company
Nanning Hangcha            Refers to   Nanning Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Guiyang Hangcha            Refers to   Guiyang Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
                                       Tangshan Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Tangshan Hangcha           Refers to
                                       Company
                                       Xiangyang Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Xiangyang Hangcha          Refers to
                                       Company
Dongguan Hangcha           Refers to   Dongguan Hangcha Forklift Co., Ltd., a subsidiary of the Company
Henan Zhehang              Refers to   Henan Zhehang Forklift Sales Co., Ltd., a subsidiary of the Company
                                       Heilongjiang Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Heilongjiang Hangcha       Refers to
                                       Company
Xi'an Hangcha              Refers to   Xi'an Hangcha Forklift Co., Ltd., a subsidiary of the Company
Guangzhou Zhehang          Refers to   Guangzhou Zhehang Forklift Co., Ltd., a subsidiary of the Company
Shenzhen Hangcha           Refers to   Shenzhen Hangcha Forklift Co., Ltd., a subsidiary of the Company
Foshan Hangcha             Refers to   Foshan Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Huizhou Hangcha            Refers to   Huizhou Hangcha Forklift Co., Ltd., a subsidiary of the Company
                                       Inner Mongolia Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Inner Mongolia Hangcha     Refers to
                                       Company
Zhongshan Hangcha          Refers to   Zhongshan Hangcha Forklift Co., Ltd., a subsidiary of the Company
Yichang Hangcha            Refers to   Yichang Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Zhanjiang Hangcha          Refers to   Zhanjiang Hangcha Forklift Co., Ltd., a subsidiary of the Company
Rizhao Hangcha             Refers to   Rizhao Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Qingyuan Hangcha           Refers to   Qingyuan Hangcha Forklift Co., Ltd., a subsidiary of the Company
Ningxia Hangcha            Refers to   Ningxia Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
                                       Lianyungang Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Lianyungang Hangcha        Refers to
                                       Company
                                       Zhangjiagang Hangcha Forklift Sales Co., Ltd., a subsidiary of the
Zhangjiagang Hangcha       Refers to
                                       Company
Yiwu Hangcha               Refers to   Yiwu Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Anhui Hangcha              Refers to   Anhui Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Dalian Zhehang             Refers to   Dalian Zhehang Forklift Sales Co., Ltd., a subsidiary of the Company
Guigang Hangcha            Refers to   Guigang Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Wuhu Hangcha               Refers to   Wuhu Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Zibo Hangcha               Refers to   Zibo Hangcha Forklift Sales Co., Ltd., a subsidiary of the Company
Zhumadian Hangcha          Refers to   Zhumadian Hangcha Forklift Co., Ltd., a subsidiary of the Company
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                  Hangcha Group (Tianjin) Forklift Sales Co., Ltd., a subsidiary of the
Hangcha (Tianjin) Sales               Refers to
                                                  Company
                                                  Hangzhou Hangcha E-commerce Co., Ltd., a subsidiary of the
Hangcha E-commerce                    Refers to
                                                  Company
Hangcha Leasing                       Refers to   Hangcha Group Leasing Co., Ltd., a subsidiary of the Company
                                                  Zhejiang Hangcha Accessories Sales Co., Ltd., a subsidiary of the
Zhejiang Hangcha Accessories          Refers to
                                                  Company
Hangcha   New             Energy                  Hangcha New Energy Forklift (Wenzhou) Co., Ltd., a wholly owned
                                      Refers to
(Wenzhou)                                         subsidiary of the Company
Hangcha Tianjin         Financial                 Hangcha Group (Tianjin) Financial Leasing Co., Ltd., a wholly owned
                                      Refers to
Leasing                                           subsidiary of the Company
                                                  Hangzhou Hangcha Property Management Service Co., Ltd., a wholly
Hangcha Property Management           Refers to
                                                  owned subsidiary of the Company
Hangcha Imp. & Exp.                   Refers to   Zhejiang Hangcha Imp. & Exp. Co., Ltd., a subsidiary of the Company
                                                  HANGCHA(THAILAND)CO., LTD., a wholly owned subsidiary of
Hangcha Thailand                      Refers to
                                                  the Company
Hangcha Global Service                Refers to   Zhejiang Hangcha Global Service Co., Ltd.
Hangcha        Manufacturing                      Hangcha Group Manufacturing (Thailand) Co., Ltd., a wholly-owned
                                      Refers to
(Thailand)                                        subsidiary of the Company
Hangcha Brasil                        Refers to   Hangcha Brasil Ltda., a wholly owned subsidiary of the Company
Hangcha Europe                        Refers to   Hangcha Europe GmbH, a wholly owned subsidiary of the Company
                                                  HC Forklift America Corporation, a wholly owned subsidiary of the
HC Forklift America                   Refers to
                                                  Company
                                                  Hangcha Forklift Canada Inc., a wholly owned subsidiary of the
Hangcha Forklift Canada               Refers to
                                                  Company
Hangcha Netherlands                   Refers to   Hangcha Netherlands B.V, a wholly owned subsidiary of the Company
                                                  HC FORKLIFT AUSTRALIA PTY LTD, a wholly owned subsidiary
HC Forklift Australia                 Refers to
                                                  of the Company
                                                  PT. Hangcha Indonesia Forklift, a wholly owned subsidiary of the
Hangcha Indonesia                     Refers to
                                                  Company
Hangcha Japan                         Refers to   Hangcha Japan Co., Ltd., a wholly owned subsidiary of the Company
                                                  Hangcha (Malaysia) Sdn. Bhd., a wholly owned subsidiary of the
Hangcha Malaysia                      Refers to
                                                  Company
                                                  Hangcha Forklift Vietnam Co., Ltd., a wholly owned subsidiary of the
Hangcha Forklift Vietnam              Refers to
                                                  Company
                                                  Hangcha Middle East General Trading Fze, a wholly owned subsidiary
Hangcha Middle East                   Refers to
                                                  of the Company
Hangcha America Smart Group                       Hangcha America Smart Group Logistics Solution Corporation, a
                                      Refers to
Logistics                                         sub-subsidiary of the Company
                                                  Hangcha Europe Rental & Sales, a wholly owned subsidiary of the
Hangcha Europe Rental                 Refers to
                                                  Company
                                                  Shanghai Hangcha Okamura Co., Ltd., a sub-subsidiary of the
Shanghai Hangcha Okamura              Refers to
                                                  Company
                                                  Zhejiang Guozi Intelligent Equipment Co., Ltd., a sub-subsidiary of the
Guozi Intelligent Equipment           Refers to
                                                  Company
Guozi Robotics                        Refers to   Zhejiang Guozi Robotics Co., Ltd., a sub-subsidiary of the Company
                                                  Zhoushan Hangcha International Financial Leasing Co., Ltd., a
Zhoushan Hangcha                      Refers to
                                                  sub-subsidiary of the Company
                                                  Hangzhou CAVO Hangcha Intelligent Cleaning Equipment Co., Ltd., a
Cavohc                                Refers to
                                                  sub-subsidiary of the Company
                                                  Nanjing Hangcha Logistics Equipment Co., Ltd., a company with
Nanjing Hangcha                       Refers to
                                                  equity participation by the Company
                                                  Shijiazhuang Hangcha Forklift Sales Co., Ltd., a company with equity
Shijiazhuang Hangcha                  Refers to
                                                  participation by the Company
                                                  Taiyuan Hangcha Forklift Co., Ltd., a company with equity
Taiyuan Hangcha                       Refers to
                                                  participation by the Company
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
                                             Nanchang Hangcha Forklift Co., Ltd., a company with equity
Nanchang Hangcha                 Refers to
                                             participation by the Company
                                             Changsha Hangcha Forklift Sales Co., Ltd., a company with equity
Changsha Hangcha                 Refers to
                                             participation by the Company
                                             Chongqing Hangcha Forklift Sales Co., Ltd., a company with equity
Chongqing Hangcha                Refers to
                                             participation by the Company
                                             Yunnan Hangcha Forklift Co., Ltd., a company with equity
Yunnan Hangcha                   Refers to
                                             participation by the Company
                                             Shenyang Hangcha Forklift Sales Co., Ltd., a company with equity
Shenyang Hangcha                 Refers to
                                             participation by the Company
                                             Zhejiang Huachang Hydraulic Machinery Co., Ltd., a company with
Huachang Hydraulic               Refers to
                                             equity participation by the Company
                                             Hangzhou Okamura Transmission Co., Ltd., a company with equity
Okamura Transmission             Refers to
                                             participation by the Company
                                             Changsha Zhongchuan Transmission Co., Ltd., a company with equity
Zhongchuan Transmission          Refers to
                                             participation by the Company
                                             Henan Jiachen Intelligent Control Co., Ltd., a company with equity
Henan Jiachen                    Refers to
                                             participation by the Company
                                             Eneroc New Energy Technology Co., Ltd., a company with equity
Eneroc New Energy                Refers to
                                             participation by the Company
                                             Zhongce Rubber Group Co., Ltd., a company with indirect equity
Zhongce Rubber                   Refers to
                                             participation by the Company
                                             Hangzhou Zhongce Haichao Enterprise Management Co., Ltd., a
Zhongce Haichao                  Refers to
                                             company with equity participation by the Company
                                             Zhejiang Hangli Dingsheng Machinery Co., Ltd., a company with
Hangli Dingsheng                 Refers to
                                             equity participation by the Company
                                             Hangcha Southeast Asia Co., Ltd., a company with equity participation
Hangcha Southeast Asia           Refers to
                                             by the Company
                                             Hangzhou Okamura Furniture Co., Ltd., a company with equity
Okamura Furniture                Refers to
                                             participation by the Company
Yuan/Ten thousand yuan           Refers to   The Chinese currency of Renminbi/Tens of thousands of Renminbi
Reporting period                 Refers to   January 1, 2025¨CDecember 31, 2025
                                             Power-driven motor vehicles used for handling, pushing, pulling,
Industrial vehicle               Refers to   lifting, stacking or loading various goods, which include forklifts, tow
                                             tractors, stackers, reach stackers, etc.
                                             A variety of wheel loaders used for loading and unloading, stacking,
                                             short-distance transport and heavy lifting of pallets of goods, referred to
Forklift                         Refers to
                                             as industrial vehicles in ISO/TC110 of the International Organization
                                             for Standardization.
                                             Forklifts powered by engines that run on diesel, gasoline or liquefied
Internal combustion forklift     Refers to
                                             petroleum gas.
                                             Forklifts relying on batteries to power the motors that drive travel and
Electric forklift                Refers to
                                             the hydraulic system to perform travel and handling operations.
                                             Forklifts with forks (or other replaceable devices) that can carry goods
Counterbalance forklift          Refers to   (with or without pallets). The load is cantilevered with respect to the
                                             front wheels and is balanced by the mass of the vehicle.
                                             Industrial vehicles fitted with a traction linkage and specially designed
Tow tractor                      Refers to
                                             for pulling other vehicles on the ground.
                                             Load-bearing devices added to or in place of the forks of a forklift,
Attachment                       Refers to
                                             which are used to perform a variety of operations.
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
             Chapter 2 Company Profile and Key Financial Indicators
Company Name in Chinese                                Hangcha Group Co., Ltd.
Company Abbreviation in Chinese                        Hangcha Group
Company Name in English                                Hangcha Group Co., Ltd.
Company Abbreviation in English                        None
Legal representative of the Company                    Zhao Limin
                                                  Sectary of the Board               Representative of Securities Affairs
Name                                                   Jiang Yun
                                        Securities Department,9/F, Building A,
                                       Hangcha Science and Innovation Park, No.
Contact Address
                                          Hangzhou City, Zhejiang Province
Tel                                                  0571-88141328
Fax                                                  0571-88926713
Email                                              jiangyun@zjhc.cn
Registered address of the Company                      No. 666 Xiangfu Road, Lin'an District, Hangzhou, Zhejiang
Change history of registered address                   None
Office address of the Company                          No. 666 Xiangfu Road, Lin'an District, Hangzhou, Zhejiang
Postal code of office address                          311305
Website                                                www.zjhc.cn
Email                                                  hcjt@zjhc.cn
Names and websites of media outlets for disclosure of
                                                           Securities Times
annual report of the Company
Website of the stock exchange where the company
                                                           http://www.sse.com.cn
discloses its annual report
                                                           Securities Department,9/F, Building A, Hangcha Science and
Location for inspection of annual report of the
                                                           Innovation Park, No. 398 Shiqiao Road, Gongshu District,
Company
                                                           Hangzhou City, Zhejiang Province
                                                        Stock Profile
                                                                                                      Stock name before
     Class of stock         Stock Exchange              Stock name                Stock code
                                                                                                           change
                             Shanghai Stock
        A-share                                       Hangcha Group                603298                    None
                               Exchange
                                                                     Pan-China Certified Public Accountants LLP (Special
                                              Item
                                                                     General Partnership)
Domestic accounting firm appointed by                                Block B, China Resources Building, No.1366
                                      Office address
the Company                                                          Qianjiang Road, Hangzhou, Zhejiang Province
                                      Accountants writing
                                                          Huang Yuanxi, Tang Zheren
                                      signatures
                                     The 2025 Annual Report of Hangcha Group Co., Ltd.
(1) Key accounting data
                                                                                                  Unit: Yuan           Currency:CNY
      Key                                           2024                    Increase/Decrease                     2023
  accounting           2025                                                   compared with
                                     After adjustment   Before adjustment                         After adjustment     Before adjustment
      data                                                                  previous year (%)
Operating
income
Total profits       2599106925.74     2459473196.09         2443735843.07         5.68                 2087056319.78      2092860324.57
Net profit
attributable to
shareholders        2191315695.90     2012853136.12         2022025698.99         8.87                 1715611831.59      1720313075.47
of the listed
company
Net profit after
deduction of
non-recurring
profits and
losses
attributable to     2148796228.95     1964865705.59         1988854674.00         9.36                 1688027697.88      1687795537.69
the
shareholders
of the listed
company
(RMB)
Net cash flows
from operating      1683901243.07     1361574668.81         1336825600.12        23.67                 1632087180.34      1621860863.22
activities
                                                End of 2024               Increase/Decrease                    End of 2023
                                                                           at the end of the
                                                                          current Reporting
                    End of 2025
                                     After adjustment   Before adjustment Period compared         After adjustment     Before adjustment
                                                                          with the end of the
                                                                          previous year (%)
Net assets
attributable to
shareholders       11608341434.37    10116516467.53        10163895056.44        14.75                 8619135437.22      8619865217.00
of the listed
company
Total assets       19709344651.12    16871203269.11        16362547960.72        16.82             13995079169.19        13894213061.92
(2) Key financial indicators
          Key financial indicators               2025       After      Before     compared with     After      Before
                                                         adjustment adjustment previous year (%) adjustment adjustment
Basic earnings per share (RMB/Share)                1.67       1.54        1.54        8.44            1.33        1.33
Diluted earnings per share (RMB/Share)              1.67       1.54        1.54        8.44            1.31        1.31
Basic earnings per share after the
deduction of non-recurring gains and                1.64          1.50         1.52             9.33                   1.31        1.31
losses (RMB/Share)
                                                                                       Down by 1.34
Weighted average ROE (%)                           20.34         21.68        21.64                                  22.17        22.17
                                                                                      percentage points
Weighted average ROE after the
                                                                                       Down by 1.22
deduction of non-recurring gains and               19.95         21.17        21.29                                  21.81        21.81
                                                                                      percentage points
losses (%)
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
Notes to the key accounting data and financial indicators of the Company for the last three years at the
end of the Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
In July 2025, Zhejiang Hangcha Guozi Robotics Co., Ltd. (renamed in August 2025), a controlled
subsidiary of the Company, acquired 99.23% equity interest in Zhejiang Guozi Robotics Co., Ltd. by
way of capital increase and share expansion. Accordingly, Zhejiang Guozi Robotics Co., Ltd. was
included in the scope of consolidation of the Company's consolidated financial statements during the
Reporting Period. As such acquisition constitutes a business combination under common control, the
consolidated financial statements for the previous period were retrospectively adjusted in accordance
with the Accounting Standards for Business Enterprises.
as of December 31, 2025.
the above table and this Report are due to rounding.
(1) Differences in net profit and net assets attributable to shareholders of the listed company in
financial reports disclosed in accordance with International Accounting Standards and China
Accounting Standards
"¡õ Applicable" "¡Ì Not applicable"
(2) Differences in net profit and net asset attributable to shareholders of the listed company in
financial report disclosed in accordance with overseas accounting standards and China
Accounting Standards
"¡õ Applicable" "¡Ì Not applicable"
(3) Explanation on the difference between the domestic and overseas accounting standards:
"¡õ Applicable" "¡Ì Not applicable"
                                                                                   Unit: Yuan      Currency: CNY
                                            Q1                 Q2                 Q3                    Q4
                                      (January-March)      (April-June)    (July-September)     (October-December)
Operating income                         4455524706.04     4846493118.57      4669589651.54           3767044521.71
Net     profit  attributable   to
shareholders of the listed               431975966.52       687866792.47       632914648.33           438558288.58
company
Net profit attributable to the
shareholders of the listed
company after the deduction of
non-recurring gains and losses
Net cash flows from operating
activities
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Explanation on the differences between the above quarterly data and what have been disclosed in past
periodic reports
"¡Ì Applicable" "¡õ Not applicable"
In July 2025, Zhejiang Guozi Robotics Co., Ltd., a subsidiary of the Company, acquired 99.23% equity
interest in Zhejiang Guozi Robotics Co., Ltd. through capital increase and share expansion. Since such
acquisition constitutes a business combination under common control, the Company's relevant financial
data should be retrospectively adjusted and re-presented pursuant to the Accounting Standards for
Business Enterprises.
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan      Currency: CNY
                                                             Amount in       Note (if     Amount in      Amount in
        Non-recurring Gains and Losses Items
Gains or losses on disposal of non-current assets
(including write-off of provision for assets                    478793.68                  1064117.28     4545177.29
impairment)
Government grants included in the current profit or
loss (excluding those closely related to operating
activities of the Company and granted constantly             73249269.65                  68958394.35    40699621.98
affecting the Company's profits or losses in accordance
with certain standards based on state policies)
Gain or loss from changes in fair value of value and
disposal of financial assets and liabilities held by
non-financial enterprises, excluding those arising from        -463932.23                   898977.77    -13653244.56
hedging business related to the Company's normal
operating activities
Fund occupancy fees collected from non-financial
enterprises and recognized in current gains or losses
Gain or loss on assets under entrusted investment or
management
Reversal of impairment provision for accounts
receivable subject to separate impairment testing
Net profit or loss of subsidiaries from the beginning of
the period to the date of consolidation arising from a       -16004728.24                  2597740.64     -5804004.79
business combination under the same control
Other non-operating revenue or expenditures                  -2939750.40                   1856247.13     1409267.51
Less: Effect of income tax                                   10250998.57                  11878791.40     4175472.28
Non-controlling shareholders' equity affected (after
tax)
                       Total Amount                          42519466.95                  47987430.53    27584133.71
For items of non-recurring gains and losses defined by the Company that are of a significant amount and
not listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Shares to the Public¡ªNon-recurring Gains and Losses", as well as for items of recurring gains and
losses defined by the Company that are listed in the "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Shares to the Public¡ªNon-recurring Gains and Losses" as
non-recurring gains and losses, reasons shall be specified.
"¡õ Applicable" "¡Ì Not applicable"
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
by the Company with equity incentive plans or employee stock ownership plans
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency:CNY
                                                                                                Effect on profit of
         Item Name               Opening balance     Closing balance     Change in the period
                                                                                                  current period
Held-for-trading     financial
assets
Receivables financing               294961893.92         472523678.61          177561784.69
Other non-current financial
assets
Derivative           financial
liabilities
Derivative financial assets           1635304.53                                -1635304.53              -830747.86
         Total Amount               409045075.43         600975173.61          191930098.18               767092.25
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
                  Chapter 3 Management Discussion and Analysis
The Company's core business encompasses the research, development, manufacture, and distribution of
a full spectrum of industrial vehicles and intelligent derivatives, such as forklifts, warehouse trucks,
autonomous industrial vehicles, and logistics handling robots as well as aerial work platforms, dynamic
compaction machinery, and cleaning equipment, along with critical components. Dedicated to the
delivery of integrated smart logistics solutions and full-lifecycle aftermarket services for industrial
vehicles, including parts selling, equipment leasing, and repair and maintenance services.
                         The 2025 Annual Report of Hangcha Group Co., Ltd.
While deepening its core competencies across R&D, manufacturing, marketing, and service, the
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
Company efficiently mobilized and combined upstream and downstream resources along the industrial
chain to forge an integrated business model. Anchored in its core business of industrial vehicles, the
Company resolutely executes an innovation-driven strategy by concentrating its efforts on shaping new
quality productive forces featuring advanced technology, superior efficiency, and premium quality.
Drawing upon the formidable technological innovation capabilities, an excellent quality assurance
regime, a highly resilient, secure, and efficient supply chain, as well as a global marketing and service
network of extensive reach, the Company has successfully repositioned itself as an industry-leading
provider of "high-end intelligent manufacturing + service-oriented manufacturing + comprehensive
solutions". In addition to the constant refinement of "direct sales + distribution + e-commerce" sales
architecture, the Company has been actively building a highly responsive and professionally adept
global marketing pattern through wholly-owned subsidiaries, authorized distributors, franchise networks,
and e-commerce platforms, in a bid to furnish global customers with premium, intelligent industrial
vehicles and bespoke smart logistics solutions.
Explanation of New Important Non-core Businesses during the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
Industrial vehicles, with forklifts at the epicenter, constitute the indispensable part underpinning
materials handling operations across every sector of the national economy, and serve as the critical
backbone for the efficient functioning of logistics warehousing, intelligent manufacturing, and
commercial circulation. The industry's development is intimately correlated with macroeconomic
conditions, industrial upgrading, and global logistics landscape, exhibiting the rigid demand and
enduring resilience. In 2025, the global industrial vehicle industry maintained a stable growth, while the
domestic sector started a profound transformation characterized by structural refinement and
fundamental shift in growth drivers toward electrification, intelligentization, and globalization,
propelling the industry's high-quality development. As the world's single largest market for industrial
vehicles, China continued to command global leadership in industrial scale, underpinned by a deep
market foundation and a firmly entrenched industrial base. According to statistics, total annual sales of
powered industrial vehicles in 2025 once again exceeded the one-million threshold, reaching 1,451,800,
a 12.93% increase over 2024; domestic market sales amounted to 906,800 units, a year-on-year increase
of 12.65%; while export-oriented sales reached 545,000 units, growing 13.41% over2024, all indicators
attaining historic peaks that reflected robust industrial momentum. Considering the industry sales
structure by model, electric forklifts have maintained good growth momentum. In contrast, internal
combustion forklifts have seen a decrease of over 5%, with a particularly significant decline of 9.34% in
the domestic market. The warehouse forklift has achieved the highest increase, and the sales volume of
electric ride-on warehouse forklifts and electric walkie warehouse forklifts increased by over 18%,
respectively, with respective increases of 19% and 15% in the domestic and international markets.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
            Trend of Annual Total Sales Volume of China's Industrial Vehicle Industry
From the perspective of product mix optimization, the industry steps up its electrification across all
fronts. Electric forklifts, on the defining advantages of energy conservation, environmental compatibility,
high operational efficiency, low energy consumption, and intelligent adaptability, witnessed a soaring
market penetration, securing a dominant position in the domestic market. Lithium battery forklifts,
distinguished by stable endurance, rapid recharge capability, and zero emissions, became the core driver
for electrification. In contrast, traditional internal combustion forklifts, buffeted by the new energy
substitution, the environmental policy constraints, and the upgrading demand of downstream customers,
are experiencing a structural recalibration from sales volumes and sustained market share shrinkage,
necessitating product iteration and structural optimization. Propelled by the iterative advancement of
new energy technologies, the pervasive adoption of intelligent control systems, and downstream
escalating demand for high-end equipment, a portfolio of premium, new-energy-powered, and intelligent
products engineered to specific scenarios and integrated solution requirements has been progressively
displacing traditional low-end offerings as the core growth driver for industry sales volumes, product
added value, and industry profitability.
The competitive landscape and developmental logic of the industry reveals two defining shifts: 1) The
ongoing optimization and recalibration of global trade pattern, coupled with the implementation of
China's "dual carbon" strategy, has been compelling the industry to accelerate green transformation and
value enhancement and driving competitive paradigm to fundamentally evolve from traditional,
single-dimensional competition centered on product cost-performance toward comprehensive,
full-value-chain competition encompassing "product + service + integrated solutions + industrial
ecosystem", which imposes greater demands on technological R&D prowess, supply chain governance
capabilities, global operational sophistication, and full-lifecycle service proficiency. 2) The industry
concentration maintained its uptrend. Industry leaders endowed with core technological innovation
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
advantages, global distribution capabilities, well-established industrial ecosystem, and full-value-chain
service system are continuously fortifying their competitive moats, further accentuating their market
dominance. The industry is accelerating its progression toward standardization, intensification, and
specialization.
In 2025, from a model structure perspective, electric ride-on counterbalance forklifts (Class I vehicles)
achieved sales of 230,000 units, up 23.70% YoY; electric ride-on warehouse forklifts (Class II vehicles)
achieved sales of 35,300 units, up 18.77% YoY; electric walkie warehouse forklifts (Class III vehicles)
achieved sales of 866,600 units, up 18.61% YoY; and internal combustion counterbalance forklifts
(Class IV and V vehicles) achieved sales of 319,900 units, down 5.71% YoY. Lithium-ion forklifts
accounted for 46.52% of electric forklift sales, with 562,200 units sold. Lithium-ion counterbalance
forklifts accounted for 77.17% of electric counterbalance forklift sales. In 2025, the sales volume of
lithium-ion battery models in the three major electric forklift categories (Class I, II and III) is as follows:
lithium-ion ride-on counterbalance forklifts of 177,500 units, lithium-ion ride-on warehouse forklifts of
distribution, lithium-ion forklifts achieved domestic sales of 313,200 units and export sales of 249,000
units, with the export sales accounting for 44.29% of the total.
The year 2025 marked the conclusion of the "14th Five-Year Plan" and the envisioning of the "15th
Five-Year Plan" blueprint, and also represented a pivotal juncture for the Company to build upon
outstanding achievements and chart a course for the future towards our vision "to be the best forklift
truck manufacturer in the world¡±. Amid the increasingly complicated global economic landscape,
intensifying geopolitical conflicts, and the manifold uncertainties engendered by trade barriers, the
industry experienced contracting demand and heightened competition, manifesting a palpable dialectic
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
of "ferocious domestic rivalry with mounting external competition". Under the leadership of the Board
of Directors, the Company deployed forward-looking, holistic strategies and innovation-driven
initiatives with targeted measures to buck the prevailing headwinds. Adhering to the central theme of
high-quality development around the core impetus of "innovation-led navigation", the Company has
achieved remarkable breakthroughs across multiple domains, including technological R&D, market
expansion, global expansion, industrial collaboration, intelligent manufacturing, and digital
transformation. In 2025, the Company registered an operating revenue of RMB 17.739 billion, with a
year-on-year increase of 5.90%, and net profit attributable to shareholders of the listed company of RMB
attainment of all annual operational targets but also represented a holistic leap in product
competitiveness, brand influence, and sustainable development, markedly strengthening the Company's
core competitiveness and laying a solid foundation for high-quality development during the "15th
Five-Year Plan" period.
                                     Key Business Data for 2025
During the Reporting Period, the company won numerous awards in many fields thanks to its excellent
comprehensive strength and innovative development achievements, demonstrating its strong industrial
competitiveness and social influence. The Company was successively honored with recognitions,
including National Service-Oriented Manufacturing Enterprise, 2025 China's Top 500 Manufacturing
Enterprises, 2025 World-Class Machinery Enterprise Certificate, Zhejiang Export Famous Brand, 2025
China¡¯s Top 500 Listed Companies with High Credit, the 14th China Listed Companies Value
Assessment Main Board Value Top 100, the 16th China Listed Companies Investor Relations
Management Tianma Award, and the Sino-Securities Index "2025 Green and Low-Carbon Pioneer".
During the Reporting Period, the Company delivered outstanding performance across a spectrum of
honorary awards and industry recognitions while deepening the presence in key areas including product
R&D, market expansion, intelligent manufacturing, and digital transformation, thus building a
collaborative innovation system from various dimensions. With further integration of technological
innovation and industrial upgrading, the Company accelerated the commercial application of new
technologies and products in both overseas and domestic markets, yielding new breakthroughs in its
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
market footprint. The enhancement of smart manufacturing and digital management capabilities also
injected fresh momentum into the optimization of operation efficiency and management effectiveness,
further reinforcing the Company's leading position in the global industrial vehicle sector.
Capitalizing on the opportunity as the industry pivots toward intelligent, ecological, and international
operations, the Company has anchored its strategy in the diversified demands of global markets. With a
product philosophy centered on high technological intensity, high added value, and high reliability, the
Company steps up its innovation momentum with equal stress on product and technologies driven by
¡°technical R&D and global promotion¡±, achieving a leap forward from isolated breakthroughs to
systemic leadership towards mid-to-high end of the industrial and value chains.
During the Reporting Period, the Company maintained a sharp focus on green, intelligent, and high-end
product evolution, successfully introducing over 60 new products and technologies throughout the year,
some of which have filled voids in both domestic and overseas markets, offering robust support to the
execution of our high-end, global, and diversified growth strategy. Key highlights include: 1) X-Series
Hybrid Forklift (5t¨C10t).The world's first mass-produced 309V diesel-electric hybrid forklift, with a
pioneering dual-power design that integrates diesel propulsion with lithium battery energy storage,
featuring less fuel consumption by up to 40% compared to conventional internal combustion forklifts,
effectively addressing a gap in the domestic market. 2) High-Voltage Lithium-Ion Off-Road Forklift
(1.5t¨C1.8t). An extension of high-voltage lithium product portfolio that delivers performance on par with
internal combustion off-road forklifts with extensive application in demanding sectors such as mining
and infrastructure construction. 3) Four-Wheel Narrow-Tread Lithium-Ion Dedicated Forklift (1.5t¨C4t).
A pioneering lithium platform for narrow-tread configurations that ensures operational efficiency, safety,
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and reliability, engineered to meet the specialized requirements of the North American market. 4)
XA-Series Stand-On/Sit-On Pallet Truck. An innovative dual-mode operation design that seamlessly
balances high-throughput performance with ergonomic driving comfort. 5) X-Series Omnidirectional
Side-Loading Electric Forklift (2t¨C3t).A multi-purpose model supporting six driving modes for complex
environments such as narrow aisles and high-density warehousing with exceptional agility, substantially
improving space utilization and operational flexibility.
The Company has intensified its pursuit of core technological breakthroughs centering on new energy,
intelligence, and human-machine interface with breakthroughs in such pivotal areas as adaptive zone
control system, highly environment-resilient on-board charger, localized dual-drive transmissions, VNA
truck aisle safety control, steer-by-wire chassis technology, safety detection system for container reach
stacker spreaders, universal handheld unit, VCU deployment, an electric vehicle electronic/electrical
architecture, and a next-generation intelligent interactive dashboard, all dedicated to fortifying the core
competitiveness of our product lineup. Typical cases include: 1) VNA Aisle Safety Control Technology.
A dual mechanism of self-recognizing aisle and end-of-aisle safety control technologies remarkably
enhances operation efficiency, safety, and intelligence in warehousing applications. 2) Vehicle Control
Unit (VCU). A self-developed mechanism that delivers integrated, precision control over power delivery,
safety protocols, intelligent regulation, and operator comfort through seamless synergy of intelligent
algorithms and safety-rated hardware. 3)Highly Environment-Resilient On-Board Charger. A module
engineered to overcome the challenges posed by extreme temperatures, high humidity, and high salinity
and fully accommodate diverse operating conditions across global markets.
During the Reporting Period, the Company substantially scaled investment in innovation and R&D,
while expanding patent portfolio and standards development, with a record of 142 patent applications
(including 118 invention patents) filed and 163 patents (including 93 invention patents) granted, a dual
increase in both patent quantity and quality over the same period in 2025. The Company led the drafting
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of 19 national and industry standards, initiated three new industry standards, including the Technical
Specification for High-Voltage Industrial Vehicles, and acquired the approval to join the Humanoid
Robot Standard Working Group of the National Robot Standardization Technical Committee, and
participated in the compilation of two national standards for humanoid robots. Of particular significance,
the Company spearheaded the drafting of the national standard Greenhouse gases¡ªQuantification
Methods and Requirements for Carbon Footprint of Products¡ªIndustrial Trucks, which fills a critical
industry void and provides a scientific foundation for carbon emission reduction and carbon trading
within the sector, underscoring our technological foresight in the green and low-carbon arena.
With an acute insight over growth opportunities within future industrial ecosystems, notably the
industrial Internet and robotics, the Company draws upon profound technological advantages in
industrial vehicles and sustained investment in frontier technologies, including artificial intelligence,
cloud computing, big data, and the Internet of Things to initiate the R&D of robotic products centering
on material handling, formulating a clearly defined industrial development roadmap. During the
Reporting Period, our subsidiary Hangcha Guozi Robotics completed the acquisition of a controlling
interest in Guozi Robotics, and then Guozi Robotics became a core business segment of Hangcha Guozi
Robotics, which represented a strategically vital move to integrate premium resources along the
industrial chain and deepen technological footprint. .
Guozi Robotics is home to a top-tier team of talents specialized in intelligent product software and
algorithms, with its core members from the RoboCup world champions in the State Key Laboratory of
Industrial Control Technology of Zhejiang University. The team augmented our capabilities in software,
algorithm, and system-level solutions with R&D framework and forms a powerful complement to our
existing core strengths in hardware designing, manufacturing, quality management, and supply chain
management, empowering our intelligent transformation with full autonomy.
In 2025, at the launchpad for intelligent strategy, the Company unveiled the X1 Series logistics robot at
CeMAT ASIA in Shanghai. Trained through vast datasets from industrial logistics scenarios, the robot is
built upon a dual-core driver of "efficient wheel mobility + flexible joint manipulation", with the former
featuring a travel speeds of 2 m/s based on highly adaptable wheeled chassis and complex terrains such
as narrow warehouse aisles and a millimeter-level navigation based on multimodal perception
integrating 3D vision and LiDAR, while the latter achieving end-effector repeatability of ¡À0.1 mm and
comprehensive operational accuracy of ¡À5 mm through a bionic upper-limb architecture of 22
independent joints and exhibiting zero-shot generalization for handling such objects as totes and cartons,
in particular flexible operations like transferring, loading/unloading, and depalletizing/palletizing. The
robot is adaptive to complex operations in warehousing and manufacturing, effectively bridging the gap
left by traditional automation in flexible applications and affirming the Company's technological
foresight and industry leadership in the logistics robotics domain.
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The Company, with resolute focus on industrial logistics, seized the valuable opportunities from the
intelligent logistics equipment sector. The global intelligent logistics market already surpassed the
threshold of trillion, where a new generation of AI-powered handling logistics robots is approaching a
pivotal inflection point. China, with its complete manufacturing and logistics infrastructure, has emerged
as the world's largest application market and a nexus of technological innovation. Based on over six
decades of expertise in industrial vehicles and the advantage of a global service network, the Company
is deeply committed to the industrial application of next-generation intelligent technologies in logistics
scenarios, striving to establish itself as a benchmark for global logistics handling robots and intelligent
logistics solutions.
The Company prioritizes intelligent product R&D as its core strategy, developing full-stack capabilities
across four critical pillars: Model, data, hardware, and scenario. In addition to our high-caliber model
development team of over 200 members, the Company is now building a proprietary computing
platform and a comprehensive R&D toolchain. By integrating the existing core technological assets of
Guozi Robotics, we developed the logistics vertical domain model HC-Robo 1.0, along with HC-Sim
digital twin simulation system, established the TransEasy software framework, and advanced a
three-year R&D plan targeting "out-of-the-box" deployment, realizing an industrial-grade closed loop
encompassing perception, decision-making, and execution. By leveraging technological heritage and
scenario data assets in the industrial vehicle sector, we have built an exclusive industrial data repository
that fuels algorithm iteration through a dual engine of simulation and field data, boosting the
technological convergence of humanoid intelligent products and forklift robots and reinforcing strategic
implementation in the intelligent logistics arena.
Our technological innovations are highly recognized by the industry with prestigious scientific and
technological awards that attest to our formidable technical prowess. Particularly, the project ¡°Key
Technologies and Industrialization of High-Performance High-Voltage Electric Forklifts¡± was certified
by the appraisal committee led by academicians as having achieved "world-leading overall technology"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
and won the Third Prize of the Science and Technology Progress Award of Zhejiang Province; the
project ¡°45-Ton Highly Adaptable High-Voltage Lithium-Ion Container Reach Stacker¡± was recognized
as a the first-of-its-kind equipment within the province; the    project ¡°Research and Application of Key
Technologies for 1.5t¨C2t Lithium-Ion Dedicated Mini Pallet Trucks¡± won the First Prize of the Zhejiang
Mechanical Industry Science and Technology Award; and the project ¡°X1 Series Wheeled Humanoid
Logistics Robot¡± was granted the Zhejiang Robot Annual Product Award. The Company led the
application for the 2026 Zhejiang "Pioneer" Science and Technology Program titled ¡°Humanoid Robot
Machine for Precise and Dexterous Operations and Typical Industrial Application Demonstration¡±,
securing more policy and resource support for advanced technology R&D and industrial application.
In the face of intensely competitive industry landscape, the Company adheres to a core marketing tenet
of "defending market share over short-term pricing". By pioneering innovative marketing models,
refining channel architecture, and elevating customer service standards, the Company stable growth in
domestic sales, achieved breakthroughs in export markets, and realized leapfrog expansion in the rental
business.
Guided by the objective of "high-quality development", our sales organization has been deepening its
regional penetration while accelerating product portfolio transformation to support channel construction.
Electric forklift sales secured the top position, featured by the outstanding distribution outcome of the
XA series, substantial sales of A-series MINI, and competitive edge of Internal combustion trucks in the
existing market through exclusive direct-sales and dynamic incentive policies.
The Company capitalized on the emerging opportunities in the rental market to drive the integration of
rental and sales operations and build a holistic model encompassing "rental + sales + spare parts +
service". The rental business generated an annual revenue of RMB 580 million, an 85% year-on-year
surge, with coverage extending across 30 provinces, municipalities, and autonomous regions nationwide
and serving a customer base exceeding 3,000. In terms of business development, we forged long-term
partnership with logistics giants such as SF Express and Cainiao, while rolling out flexible solutions
tailored to small and medium-sized enterprises (SMEs), significantly scaling the rental business with key
accounts as the primary growth driver. On the operational management front, we built a dedicated rental
vehicle dispatch platform, shortening maintenance response time to two hours or less for customers,
developing a cycle where "rental boosts sales, and sales fuel rental growth¡±.
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
We have built a dual-cycle brand communication ecosystem characterized by "internal-external synergy
and omni-channel coverage". Digital media marketing, strategic exhibition participation, and open-day
events were designed to amplify brand visibility and outreach efficiency, delivering robust market
support for our business growth.
During the Reporting Period, the Company, under the overarching theme of "overseas operation
capability building + structural growth", has been propelling its overseas operations from a
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"sales-centric" to an "operations-centric" paradigm, with an institutionalized, process-empowered, and
data-driven management system taking initial shape. The Company also achieved a phased leap from
"proof of concept" to "scalable replication¡± in the new rental business model, positioning overseas
markets as a core engine in the Company's growth trajectory.
The Company yielded substantial results in global business development with the establishment of the
global operation pattern of "one core base + N regional hubs¡±. Following the commencement of
construction in April 2025, the Thailand manufacturing base was basically completed with the main
structure by the year end and expected to start operation in Q2 2026 with an annual planned capacity of
France, Vietnam, Malaysia, and Japan, were inaugurated. By the close of 2025, the Company had
established over 20 overseas subsidiaries worldwide, forging an efficient global service network in
collaboration with more than 300 dealers, marking a transformative upgrade of overseas marketing and
service network from broad-based planning to precision operations as an impetus for global expansion.
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
During the Reporting Period, the Company registered an overseas product sales exceeding 120,000 units,
representing a year-on-year growth of over 27%, with electric industrial vehicles accounting for over
account, the Company became the supplier of several international industry leaders, such as Coca-Cola,
Tesla, Holcim, and Saint-Gobain. External projects served as critical pillars: The Manitou project in
France registered significant growth; the MG off-road vehicle project in Italy advanced to the batch
promotion stage; and the Taylor large truck project in the U.S. established standardized service protocols,
enhancing responsiveness and driving a substantial uptick in sales of large trucks and port machinery.
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Notably, a major milestone was achieved during the Reporting Period with the shipment of over 350
large-tonnage forklifts to the Southeast Asian region.
Anchored in the core industrial vehicle business, the Company has strategically deepened the presence
in emerging sectors involving intelligent logistics, new energy lithium batteries, and core components to
foster coordinated development across the entire industrial chain, while developing the competitive
"Hangcha Ecosystem", where all business segments advance in concert with mutual complement.
During the Reporting Period, Hangcha Guozi Robotics acquired Guozi Robotics through capital increase
and share expansion, further strengthening our R&D capabilities in intelligent logistics system building
and product R&D while rounding out our mobile robot product matrix. Our product portfolio now
covers system integration, AGV/AMR, intelligent warehousing equipment, and inspection robots under
a dual-driver pattern of "hardware + solutions" dedicated to fortifying the Company's overall
competitiveness and industrial added value. Following the acquisition, Zhejiang Hangcha Guozi
Robotics Co., Ltd., as the main carrier for the Company's intelligent logistics business, generated
revenue approaching RMB 1 billion in 2025, with contract value for intelligent logistics solutions
surging substantially over 2024, maintaining our leadership in China's unmanned forklift-type
AGV/AMR segment. The Company has established a comprehensive AGV and AMR product matrix
powered by the GRACE core dispatch system that support operation among different machinery in
collaboration, secured orders from prominent enterprises across the power, automotive, and FMCG
sectors, and delivered several landmark projects at home and abroad. The newly commissioned
intelligent manufacturing base continues to ramp up capacity, further consolidating our market
advantage in intelligent logistics solutions.
With the expedition of independent and controllable high-end supply chain system, our capabilities in
the in-house R&D and manufacturing of core components have been reinforced. Hangcha Electric
developed over 2,000 lithium battery varieties and acquired numerous international, domestic, and
industry certifications. Daily lithium battery production capacity scaled to 400 units, while the
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
warehousing and wiring harness production systems were upgraded with digital empowerment. Zhejiang
Hangbo Electric Co., Ltd. (¡°Hangbo Electric Drive¡±) completed the conversion and validation of 19
Enpower motor models, developed eight products, and set up five automated production lines, achieving
an annual capacity of 75,000 units. Cloudree, primarily engaged in the sales, manufacturing, and
creation of chargers, developed a total of 162 products throughout the year to support the marketing of
complete vehicles for the Company. During the Reporting Period, the Company, through efficient
synergy within the "Hangcha Ecosystem", expanded and renovated the Qingshan Industrial Park and
Hengfan Science and Technology Park to improve in-house capabilities for structural components,
driving the upgrade of new energy power battery, drive motor, and motor controller as well as the
intelligent logistics solutions. The combo of resource integration, technological breakthroughs, and
ecosystem synergies also contributed to the establishment of a modern industrial landscape with
independent and controllable core components as the foundation for efficient industrial chain
connectivity.
Starting from technology transformation, the Company pioneered intelligent factory development by all
means, such as artificial intelligence, smart manufacturing technologies, and intelligent equipment, to
architect a responsive, high-yield, and synergistic smart production line ecosystem.
Hangcha Hengfan Science and Technology Park (Phase IV) with a capital investment exceeding RMB
stacker cranes, and intelligent conveying systems. The efficient integration of R&D, manufacturing, and
system significantly enhanced capacity assurance and delivery precision for intelligent logistics
solutions, establishing the cornerstone for end-to-end smart logistics offerings. In January 2026, Shiqiao
Science and Technology Innovation Park industrial was put into operation with optimized functions,
depicting a well-defined growth trajectory.
The "machine-for-human" substitution contributed to the world¡¯s largest standalone productivity of
configurations. Structural component lines became fully automated in feeding and welding; painting
operations were completed autonomously via robotic systems; and the assembly lines were armed with
traceable human-robot collaboration. Thanks to the "intelligent transformation", we engineered an
end-to-end digital workflow from order to delivery: MES enables real-time visual production
orchestration; IoT & digital twins power proactive equipment maintenance; and AS/RS-AGV synergy
empowers millimeter-perfect material routing.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
The Company has built an intelligent manufacturing architecture covering the whole value chain upon
five digital pillars - digital business operations, digital process management, digital administration,
digital marketing, and digital service.
Our RMB 100+ million industrial Internet platform has been running in full swing. With SAP as its core
infrastructure, the platform integrates PLM, CRM, MES, and WMS systems that enable seamless
workflow and data transmission within different sections of the Group. With full-element connectivity
across 2,000+ intelligent devices, it serves as the central nervous system for enterprise-wide digital
transformation.
During the Reporting Period, the Company completed the data center the Group, which established
infrastructure for future IT evolution and localized AI deployment. While advancing AI framework
construction, the Company has been depicting vertical knowledge graph of industrial vehicles in a bid to
increase R&D efficiency and empower manufacturing optimization, precision marketing, and intelligent
aftermarket service.
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
During the Reporting Period, the Company capitalized on the pivotal shift of the automotive sector
toward green, intelligent, and high-end solutions. Drawing on the specialized expertise and sustained
innovation for the past five decades, the Company focused on six core dimensions, namely technology
R&D, industrial deployment, market expansion, intelligent manufacturing, ecosystem integration, and
talent culture, to erect integrated competitive barriers spanning R&D innovation, full-chain
manufacturing, global marketing and services, and smart logistics integration. Backed up by
industry-leading technological capabilities, full-chain integration, and global operational competence,
the Company has reinforced its market leadership, providing robust support for high-quality growth,
global expansion, and intelligent transformation, with core competitive edges to be strengthened.
Anchored in the green, intelligent, and high-end transformation, the Company adheres to the R&D
philosophy of philosophy of "targeting benchmarks, surpassing competitors, and developing the world's
best forklift products¡± and has built a technological innovation system characterized by "one core, two
wings, and comprehensive coordination", thus cementing our R&D leadership. The Company draws on
an array of high-level platforms, such as the national enterprise technology center, national accredited
laboratory, national industrial design center, national postdoctoral research station, and several
provincial research institutes, to form a systematic and full-chain R&D support framework, thereby
providing infrastructure and talent essential for frontier technology breakthroughs and core product
iteration. We increased investment in key technologies with focus on the in-depth convergence of AI,
new energy, 5G, and IoT with industrial vehicle application in green intelligence, comfort and safety,
high efficiency and reliability, intelligent logistics and digital research and development, and achieved
breakthroughs in hybrid power systems, zone-mode adaptive control, VNA aisle safety technology,
steer-by-wire chassis, and localized dual-drive transmissions, accelerating the translation of R&D
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
outcomes into market-ready solutions. Leveraging sustained technological accumulation, the Company
has assembled the most comprehensive new energy product portfolio, with the 309V diesel-electric
hybrid forklift, high-voltage lithium off-road forklift, four-pivot small-wheelbase lithium forklift, and
X-series omnidirectional lateral electric forklift, making global or domestic debuts, filling market gaps
and reinforcing the Company's new energy leadership.
Constant R&D investments consolidated our dominance in electric forklift while accelerating business
operation in smart logistics and other strategic emerging businesses. Core technologies are rapidly
transitioning from lab to market, with R&D serving as the central engine of transformation. The R&D
team has expanded steadily, with a rising proportion of master's and doctoral degree holders and an
increasingly optimized talent structure, which underpinned the Company's continued breakthroughs in
new energy, intelligent systems, and autonomous driving.
The Company has forged deeply integrated and independently controllable industrial chain advantages
in new energy. Through a comprehensive ecosystem for core components, a full coverage has been
achieved across battery, electric drive, and electric control technologies. In hydrogen energy, the
Company has yielded deep collaboration with partners Just Power with fruitful outcome, including
delivery of hundreds of hydrogen forklifts and validation of hydrogen powertrain reliability for the
future extensive adoption. Strategic partnership with upstream battery leaders like EVE Energy evolved
from simple procurement to "ecological symbiosis¡± with focus on joint R&D and scenario creation on
advanced battery technology with intelligent equipment. The Company has also built a green evaluation
system for suppliers to motivate over 300 core partners in a collective upgrade, fortifying our new
energy leadership and global expansion.
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
The Company has established a three-tier service network of "Headquarters ¨C Overseas Subsidiaries ¨C
Dealers", with over 20 overseas subsidiaries across Europe, North America, and Southeast Asia, and
over 300 authorized dealers worldwide, an efficient coverage of key global markets. Supported by
Hangcha Europe Rental & Sales Co., Ltd., Hangcha Middle East, and a planned Thailand manufacturing
base with an annual capacity of 10,000 units, the Company has been reinforcing the capabilities of local
manufacturing and rapid response to align with market demand. The partnership with global leaders
such as Coca-Cola, Tesla, Holcim, and Saint-Gobain has markedly elevated the international standing of
"Hangcha" brand.
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
Committed to the continued iteration of our ¡°Future Factory¡±, a pioneer in Zhejiang, and in-depth
empowerment of the full value chain, the Company has launched "Future Factory 3.0¡± with an
investment of hundreds of millions for upgrading. Through "5G+AGV Smart Logistics", ¡°MES
Intelligent Manufacturing Platform¡±, and digital twin system, we have achieved full-process automation
and data-driven control from blanking to assembly, with key equipment networking exceeding 95%,
order delivery cycles shortened by 40%, and overall equipment effectiveness amounting to 85%. Our
¡°Industrial Internet Platform¡± has become a provincial key platform integrating PLM and WMS for
full-lifecycle digital management. In AI application, the Company employed multimodal technology to
build a vertical knowledge graph for industrial vehicles that encompass vehicle parameters, operational
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
data, and customer behavior, shifting aftermarket service mode from reactive response to proactive
prediction featuring a significant increase of diagnostic accuracy and service efficiency. Data
accumulated from various terminals fuels continuous iteration of intelligent industrial vehicles and
robots, accelerating the transition from traditional equipment manufacturer to full-scenario smart
logistics provider.
The Company has built full-stack capability from core hardware to intelligent systems, with in-depth and
scenario-specific deployment. The 2025 global launch of the X1 series logistics robot marked a strategic
milestone for a highly coordinated "hand-foot-eye-brain" operation under unstructured conditions with
millimeter navigation precision, hence a great breakthrough in the upgrade to full-scenario smart
logistics solutions. Through in-depth integration with Guozi Robotics, our smart logistics segment has
achieved a quantum leap in both scale and quality, forming a dual-wheel drive of "hardware + solutions".
Our product portfolio covers AGVs/AMRs, intelligent warehousing, inspection robots, and system
integration, with benchmarks established across over 20 industries like new energy and automotive,
highlighting the great leap from single device supply to replicable industry benchmarking.
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
After six decades of accumulation and two decades of renovation, the Company has effectively
combined a market-driven and flexible employment mechanism with systematic, standardized
management and a deep humanistic ethos towards the mission to "Make material handling easier", the
vision "To be the best forklift truck manufacturer in the world", the core values of "Integrity,
responsibility, sharing¡±, the spirit of ¡°Progressive, practical, creative, harmonious¡±, and the "family"
culture that "Hangcha is our home, built by all, serving all, loved by all". Leaders set the example to
foster the philosophy of accountability, pioneering innovation, and collaborative unity, with cultural
cohesion anchoring enterprise development. The Company holds annual skill competitions to celebrate
craftsmanship and enrich employee life, further strengthening team spirit and sense of belonging,
making the ¡°family¡± culture a key engine for our innovation and progress.
The Company regards talent as its primary resource while shaping a global multi-level empowerment
system to underpin high-quality development and world-class business building. While refining
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
transnational talent incentive and training mechanism, the Company has dispatched outstanding
management and technical talents to overseas subsidiaries in Vietnam, Japan, Malaysia, and Indonesia to
strengthen localized operations; optimized the independent evaluation system for intermediate
professional titles in special equipment engineering and accelerated the recruitment and cultivation of
advanced innovative talent under the support of National Postdoctoral Research Station and Zhejiang
University; initiated the "Star Plan" program to deepen industry-education integration for the
development of high-skilled professionals in smart logistics and aftermarket service; and set up an
independent professional skill evaluation system across seven professions covering skill training and
certification in pursuit of high-quality industrial workforce. The advanced cultural philosophy and talent
empowerment strategy significantly enhanced the loyalty, satisfaction, and sense of belonging and
strengthened internal dynamism and core competitiveness, offering robust value guidance, cultural
cohesion, spiritual impetus, and talent assurance for global expansion and intelligent transformation.
For the Reporting Period, the Company achieved an operating income of RMB 17.739 million,
representing a YoY increase of 5.90%, net profit attributable to shareholders of the listed company of
RMB 2.191 million, a YoY increase of 8.87%, and net profit after deduction of non-recurring gains and
losses attributable to the shareholders of the listed company of RMB 2.149 million, a YoY increase of
(1) Main Operating Results
                                                                                 Unit: Yuan   Currency: CNY
                                                                    Preceding period
               Item                  Current period cumulative                                 Change (%)
                                                                      comparative
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Operating income                                   17738651997.86               16749658536.93                      5.90
Operating cost                                     13342717775.81               12775733409.22                      4.44
Selling expenses                                     889497442.79                 751517469.51                     18.36
Administrative expenses                              488776232.52                 425264957.02                     14.93
Financial expenses                                     6557982.24                 -37979616.30                      N/A
R&D expenses                                         858946791.62                 817491897.92                      5.07
Net cash flows from operating activities            1683901243.07                1361574668.81                     23.67
Net cash flows from investing activities            -554696292.21                -463213874.23                      N/A
Net cash flows from financing activities            -944445772.66                -680831617.02                      N/A
Reason for change in operating income: N/A
Reason for change in operating cost: N/A
Reason for change in selling expenses: N/A
Reason for change in administrative expenses: N/A
Reason for change in financial expenses: Mainly due to increase in interest income and changes in
foreign exchange rates.
Reason for change in R&D expenses: N/A
Reason for change in net cash flows from operating activities: N/A
Reason for change in net cash flows from investing activities: N/A
Explanation of Changes in Net Cash Flows from Financing Activities: The change was primarily
attributable to an increase in dividend payments during the current period.
Details of significant changes in business types, profit composition, or profit sources of the Company in
the current period
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
During the Reporting Period, the Company logged an operating revenue of RMB17.739 billion, a
year-on-year increase of 5.90%, and operating cost of RMB13.343 billion, a year-on-year increase of
(1).     Main operating results by industry, product, region, and sales model
                                                                    Unit: Ten thousand yuan          Currency: CNY
                                           Main operating results by product
                                                            Increase/decrease   Increase/decrease     Increase/decrease
                                                  Gross
                   Operating                                   in operating      in operating cost   in gross profit over
 By product                       Operating cost profit
                    income                                   income over the    over the previous     the previous year
                                                   (%)
                                                           previous year (%)         year (%)                (%)
Forklift and                                                                                           Increase by 0.86
spare parts                                                                                                   pp
                                            Main operating results by region
                                                            Increase/decrease   Increase/decrease     Increase/decrease
                                                  Gross
                   Operating                                   in operating      in operating cost   in gross profit over
     By region                    Operating cost profit
                    income                                   income over the    over the previous     the previous year
                                                   (%)
                                                            previous year (%)        year (%)                (%)
                                                                                                       Increase by 0.89
Domestic             975132.17         778261.92 20.19            1.99                0.86
                                                                                                              pp
Overseas             769516.88         533342.37 30.69            10.97               10.51            Increase by 0.29
                                      The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                                                                 pp
Notes for main operating results by industry, product, region, and sales model
None
(2).    Analysis of production and sales volumes
"¡Ì Applicable" "¡õ Not applicable"
                                                              Increase/decrease in Increase/decrease in Increase/decrease in
   Main               Production       Sales    Inventory      production volume sales volume over       inventory volume
             Unit
 products              volume         volume     volume         over the previous    the previous year    over the previous
                                                                    year (%)                (%)               year (%)
Forklifts,
             Unit            341447    334360         26141          22.02                19.41                 37.19
etc.
Notes for production and sales volumes
None
(3).    Performance of significant purchase and sales contracts
"¡õ Applicable" "¡Ì Not applicable"
(4).    Cost analysis
                                                                              Unit: Ten thousand yuan        Currency:CNY
                                                            By product
                                                                                                 Change in
                                                       Proportion                  Proportion amount in
                                                                     Amount over
                                       Amount for      of total cost               of total cost the current
                        Cost                                           the same                                 Information
  By product                           the current         in the                  in the same period over
                     components                                      period of the                                  Note
                                         period          current                    period last   the same
                                                                     previous year
                                                       period (%)                    year (%)    period last
                                                                                                  year (%)
Forklifts,   etc.
                    Raw materials       1198881.65       92.87           1113029.40    92.97         7.71
and accessories
Forklifts,   etc.   Labor       and
and accessories     wages
Forklifts,   etc.
                    Depreciation            8296.49       0.64               7714.61    0.64         7.54
and accessories
Forklifts,   etc.
                    Energy                 10403.76       0.81               8485.60    0.71        22.60
and accessories
Forklifts,   etc.
                    Other                  30714.03       2.38             32188.12     2.69         -4.58
and accessories
Notes for other information in cost analysis
None
(5).    Changes in the scope of consolidation resulting from changes in equity interests in major
subsidiaries during the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
(6).    Details regarding significant changes or adjustments in the Company's business, products,
or services during the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
(7).    Key clients and suppliers
Customers or suppliers controlled by the same controller are presented on a consolidated basis as a
single customer or supplier, unless being controlled in effect by the same state-owned asset management
authority.
Explanation of the Presentation of the Following Customer and Supplier Information on a Consolidated
Basis under the Same Control
None
A. Major Sales Customers and Major Suppliers for the Company
"¡õ Applicable" "¡Ì Not applicable"
Sales to the top five customers amounted to RMB115,243.55, accounting for 6.50% of total annual sales,
among which, sales to related parties within the top five customers was RMB0, accounting for 0% of the
total annual sales.
Purchases from the top five suppliers amounted to RMB279,426.40, accounting for 20.30% of total
annual purchases, among which, purchases from related parties within the top five suppliers was
RMB120,605.67, accounting for 8.76% of the total annual purchases.
B. During the Reporting Period, the proportion of sales to a single customer exceeds 50% of the
total, or there are new customers or a heavy reliance on a few customers among the top 5
customers
"¡õ Applicable" "¡Ì Not applicable"
During the Reporting Period, the proportion of purchases from a single supplier exceeds 50% of
the total, or there are new suppliers or heavy reliance on a few suppliers among the top 5 suppliers
"¡õ Applicable" "¡Ì Not applicable"
C. Delisting Risk Warning or Other Risk Warnings to the Company¡¯s Shares During the
Reporting Period
Top Five Sales Customers
"¡õ Applicable" "¡Ì Not applicable"
Top Five Suppliers
"¡õ Applicable" "¡Ì Not applicable"
D. Revenue from Trading Business during the Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
                                                              Unit: Ten thousand yuan      Currency: CNY
                                                                                       Changes in operating
                            Operating revenue for the    Operating revenue for the    revenue for the current
       Trading Business
                                 current period              previous period       period vs the previous period
                                                                                                (%)
Trading business                             16270.57                     12820.99                         26.91
Top five sales customers with trading business revenue exceeding 10% of operating revenue
"¡õ Applicable" "¡Ì Not applicable"
Top five suppliers with trading business revenue exceeding 10% of operating revenue
"¡õ Applicable" "¡Ì Not applicable"
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                       Unit: RMB 10,000           Currency: RMB
                Amount for
                               Preceding period
     Item       the current                        Change (%)                       Reason for change
                                 comparative
                  period
Financial                                                         Mainly due to decrease in interest income and
expenses                                                          changes in foreign exchange rates.
(1). R&D investment
"¡Ì Applicable" "¡õ Not applicable"
                                                                                    Unit: Yuan     Currency:CNY
R&D investment as expenses in the current period                                                        858946791.62
R&D investment as capital in the current period
Total R&D investment                                                                                    858946791.62
Proportion of total R&D investment to Operating
income
Proportion of R&D investment as capital
(2). R&D personnel
"¡Ì Applicable" "¡õ Not applicable"
Number of R&D personnel                                                                                      1337
Proportion of number of R&D personnel to total number of employees (%)                                      18.48
                                     Educational background of R&D personnel
Educational background category                                            Personnel by educational background
Doctor                                                                                                          2
Master                                                                                                        153
Bachelor's degree                                                                                             703
Junior college                                                                                                327
Senior high school or below                                                                                   152
                                        Age composition of R&D personnel
Age composition category                                                      Personnel by age composition
Younger than 30 (excluding 30)                                                                                553
(3). Notes
"¡õ Applicable" "¡Ì Not applicable"
(4). Reasons for material changes in the composition of R&D personnel and their impact on the
Company's future development
"¡õ Applicable" "¡Ì Not applicable"
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: RMB 10,000           Currency: RMB
                                   Amount for      Preceding
                                                                   Change
             Item                  the current       period                                      Notes
                                                                    (%)
                                     period       comparative
                                                                             Primarily attributable to the increase in
Receipts of tax refund                94745.26       70190.80      34.98     export tax rebates received during the
                                                                             current period.
                                                                             Primarily attributable to the increase in
Cash payments for taxes and
rates
                                                                             period.
                                                                             Primarily attributable to the increase in cash
Cash receipts from withdrawal                                                received from the redemption of wealth
of investments                                                               management products during the current
                                                                             period.
                                                                             Primarily attributable to the decrease in
Cash receipts from investment
income
                                                                             the current period.
Net cash receipts from the
                                                                             Primarily attributable to the decrease in
disposal of fixed assets,
intangible assets and other
                                                                             current period.
long-term assets
Net cash receipts from the                                                   Primarily attributable to the increase in cash
disposal of subsidiaries & other        282.28                     100.00    received from the disposal of any
business units                                                               sub-subsidiary during the current period.
                                                                             Primarily attributable to the decrease in
Other cash receipts related to                                               amounts recovered from fixed assets leased
investing activities                                                         out under finance leases during the current
                                                                             period.
                                                                             Mainly due to increase in scale of wealth
Cash payments for investments         21470.07        9864.43      117.65
                                                                             management in current period.
                                                                             Primarily attributable to the absence of
Other cash payments related to
investing activities
                                                                             current period.
                                                                             Primarily attributable to the increase in
Cash receipts from absorbing
investments
                                                                             shareholders during the current period.
Cash payments for distribution                                               Primarily attributable to the increase in
of dividends or profits and for      103002.93       59225.03      73.92     dividend payments during the current
interest expenses                                                            period.
                                                                             Primarily attributable to the increase in the
Other cash payments related to
financing activities
                                                                             current period.
                                                                             Primarily attributable to the impact of
IV. Effect of foreign exchange
                                                                             exchange rate fluctuations on foreign
rate changes on cash & cash            1063.66        1635.43      -34.96
                                                                             currency-denominated assets held by the
equivalents
                                                                             Company.
(2) Notes for Significant Changes in Profits due to Non-Operating Activities
"¡õ Applicable" "¡Ì Not applicable"
(3) Analysis of Assets and Liabilities
"¡Ì Applicable" "¡õ Not applicable"
                                      The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                         Unit: Ten thousand yuan         Currency: CNY
                                                                              Proportion
                                      Proportion                 Proportion of change in
                                       of closing                 of closing    closing
                          Closing                    Closing
                                      balance of                 balance of   balance of
                        balance of                  balance of
     Item Name                        the current               the previous the current                 Notes
                        the current                the previous
                                       period to                  period to    period to
                          period                      period
                                      total assets               total assets that of the
                                          (%)                        (%)       previous
                                                                              period (%)
                                                                                            Primarily attributable to the
Derivative                                                                                  settlement of forward foreign
financial assets                                                                            exchange contracts during the
                                                                                            current period.
                                                                                            Mainly due to increase in
Receivables                                                                                 unendorsed               bankers'
financing                                                                                   acceptance bills retained at the
                                                                                            end of the current period.
                                                                                            Primarily attributable to the
Long-term                                                                                   expansion of the financial
receivables                                                                                 leasing business during the
                                                                                            current period.
                                                                                            Primarily attributable to the
                                                                                            transfer       of      completed
                                                                                            construction in progress and
Fixed assets            324412.22        16.46      220271.04        13.06      47.28
                                                                                            the     increase    in    leasing
                                                                                            activities during the current
                                                                                            period.
                                                                                            Primarily attributable to the
Construction       in                                                                       conversion of construction in
progress                                                                                    progress to fixed assets during
                                                                                            the current period.
                                                                                            Mainly due to increase in
Right-of-use assets       25716.32       1.30        17462.65        1.04       47.26       housing lease and lease terms
                                                                                            in the current period.
                                                                                            Primarily attributable to the
                                                                                            increase       in      deductible
Deferred tax assets       15635.06       0.79        11682.84        0.69       33.83
                                                                                            temporary differences arising
                                                                                            from leasing transactions.
                                                                                            Primarily attributable to the
Short-term
borrowings
                                                                                            borrowings.
                                                                                            Primarily attributable to the
Derivative                                                                                  settlement of forward foreign
financial liabilities                                                                       exchange contracts during the
                                                                                            current period.
                                                                                            Mainly due to increase in
                                                                                            bankers' acceptance bills issued
Notes payable           169301.70        8.59        90216.63        5.35       87.66
                                                                                            for settlement for materials in
                                                                                            the current period.
                                                                                            Primarily attributable to the
                                                                                            increase in advance receipts of
Advances received           264.22       0.01            91.35       0.01       189.23
                                                                                            rental payments during the
                                                                                            current period.
Other payables             8984.82       0.46        22642.14        1.34       -60.32      Primarily attributable to the
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                                        repayment of current accounts
                                                                                        during the current period.
                                                                                        Primarily attributable to the
Non-current                                                                             decrease resulting from the
liabilities     due      4584.34      0.23        62979.88         3.73      -92.72     reclassification of long-term
within one year                                                                         borrowings during the current
                                                                                        period.
                                                                                        Mainly due to increase in
Long-term
borrowings
                                                                                        the current period.
                                                                                        Mainly due to increase in
Lease liabilities     21640.11        1.10        14390.99         0.85       50.37     housing lease and lease terms
                                                                                        in the current period.
                                                                                        Primarily attributable to the
Long-term                                                                               increase in sale and leaseback
payables                                                                                transactions during the current
                                                                                        period.
                                                                                        Mainly due to changes in other
Other
                                                                                        comprehensive income that can
comprehensive            2734.97      0.14          -415.45        -0.02      N/A
                                                                                        be reclassified to profit or loss
income
                                                                                        in equity method.
                                                                                        Primarily attributable to the
                                                                                        provision for special reserves
Special reserve            71.21      0.004          212.15        0.01      -66.43     less than the actual amount
                                                                                        applied during the current
                                                                                        period.
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
(1). Size
Where: The overseas assets were 259,114.09 (Unit: Ten thousand yuan Currency: CNY), accounting for
(2). Notes for the relatively high proportion of overseas assets
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: RMB        Currency: RMB
                             Book value at the end of the
            Item                                                              Reason for restriction
                                       period
                                                          Guarantee deposits, foreign exchange derivative deposits,
Cash and bank balances                        40769564.91
                                                          bank acceptance bill deposits, performance bond
Fixed assets                                  46617155.54 Restrictions to sale and leaseback
"¡õ Applicable" "¡Ì Not applicable"
(4) Industry Operating Information Analysis
"¡Ì Applicable" "¡õ Not applicable"
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
For details, refer to the relevant information in "Section III Management Discussions and Analyses" of
the report.
                                                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(5) Investment Analysis
Overall Analysis of External Equity Investments
"¡Ì Applicable" "¡õ Not applicable"
The Company continued business expansion along the industry chain on its principal business, while strengthening key business operation, intelligent business
strategies, and aftermarket service capabilities. In July 2025, Zhejiang Hangcha Guozi Robotics Co., Ltd., a subsidiary of the Company, acquired 99.23% equity
interest in Zhejiang Guozi Robotics Co., Ltd. through capital increase and share expansion. During the Reporting Period, the Company increased contributions
totaling RMB71 million to companies including Hangcha Electric, Hangcha Leasing, and Tianjin New Energy, and invested RMB188 million in the establishment
of new entities such as Hangcha Manufacturing (Thailand), and Hangcha Europe Rental & Sales, with investment for the year totaling RMB259 million.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                   Unit: Yuan     Currency: CNY
                                         Gains and losses   Cumulative fair
                                         from fair value     value changes      Impairment in      Purchase amount in    Amount sold/redeemed
     Asset category   Opening balance                                                                                                             Other changes   Closing balance
                                          changes in the     recognised in    the current period    the current period    in the current period
                                          current period         equity
Other                    388923771.97           347215.23                                               6160719601.69           5949015415.28                        600975173.61
  Total Amount           388923771.97           347215.23                                               6160719601.69           5949015415.28                        600975173.61
Securities investment
"¡õ Applicable" "¡Ì Not applicable"
Notes for securities investment
"¡õ Applicable" "¡Ì Not applicable"
                                                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Investment in private equity funds
"¡õ Applicable" "¡Ì Not applicable"
Investment in derivative
"¡Ì Applicable" "¡õ Not applicable"
(1). Investment in derivatives for hedging purpose during the Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                  Unit: Yuan      Currency: CNY
                                                                                                                                                                       Proportion of
                                                                                                                                                                        closing book
                                                                                          Gains and     Cumulative                                           Book
                                                                                                                                                                         value to the
                                                                         Book value at losses from       fair value    Purchase amount    Sales amount in   value at
                                                      Initial investment                                                                                                 Company's
                        Type                                             the beginning    fair value      changes      in the Reporting    the Reporting    the end
                                                            amount                                                                                                      net assets at
                                                                          of the period changes in the recognised in        Period             Period        of the
                                                                                                                                                                       the end of the
                                                                                        current period     equity                                            period
                                                                                                                                                                          Reporting
                                                                                                                                                                         Period (%)
Bank of Ningbo RMB Swap                                                                     167000.00                        14359000.00       14526000.00
Bank of Ningbo RMB Swap                                                                       71400.00                       14359000.00       14430400.00
Bank of Ningbo Forward Foreign Exchange
Transactions
Bank of Ningbo Foreign Currency-to-Foreign Currency
Options
China Merchants Bank Forward Foreign Exchange
Contracts
                     Total Amount                        43077000.00       -366815.63       791171.13                       100513000.00      100937355.50
Significant changes in the accounting policies and
specific accounting principles of hedging business
                                                    No significant changes
during the Reporting Period compared to the same
period in the previous year
Actual gains or losses during the Reporting Period  The actual gains from derivative transactions undertaken for hedging purposes amounted to RMB79,120 during the Reporting Period.
                                                    The Company mitigated foreign exchange market risks through foreign currency hedging. Exchange rate fluctuations during the
Effect of hedging
                                                    Reporting Period had no material adverse impact on the Company.
                                                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
Source of funds for investment in derivatives             Self-owned funds
Position risk analysis and control measures for
derivatives during the Reporting Period (including but
not limited to market risk, liquidity risk, credit risk,
operational risk, legal risk, etc.)
Changes in the market prices or the fair values of the
invested derivatives during the Reporting Period, the
analysis of the fair values of derivatives shall disclose
the specific method used and the setting of relevant
assumptions and parameters
Whether it is involved in litigation (if applicable)
Date of announcement of the Board Meeting to approve
investment in derivatives (if any)
Date of announcement of the Shareholders' Meeting to
approve investment in derivatives (if any)
(2). Investment in derivatives for speculative purposes during the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
Opinions of Independent Directors
None
(6) significant asset and equity sales
"¡õ Applicable" "¡Ì Not applicable"
(7) analysis of major companies with controlling or minor interests
"¡Ì Applicable" "¡õ Not applicable"
                                                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Details of main subsidiaries and equity participation companies that affect the Company's net profit by 10% or more
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                       Unit: Ten thousand yuan          Currency: CNY
 Company name         Type            Principal business       Registered capital      Total assets        Net assets      Operating income     Operating profit          Net profit
Hangzhou         Subsidiary
                                 Forklift mast production                5040.00                63328.97        15296.58           171903.39              2903.98                2837.03
Forklift Frame
Hangzhou         Subsidiary
Forklift &                       Forklift structural
Metal Working                    component production
& Welding
Hangcha Bridge   Subsidiary
                                 Forklift axle production                3000.00                19845.31        10496.02            92532.47              1885.79                1707.26
Box
Jinan Hangcha    Subsidiary      Forklift sales                          1275.00                 3676.55         3121.63            19838.30               936.73                 679.07
Guangzhou        Subsidiary
                                 Forklift sales                          1100.00                 5602.26         2106.66            23867.46               309.23                 223.38
Zhehang
Shanghai         Subsidiary
                                 Forklift sales                          1300.00                12459.32         3226.69            25860.51               653.69                 551.11
Hangcha
Hangcha          Subsidiary
                                 Forklift sales                          2070.00               248969.24         8973.89           696589.56               700.10                 399.05
Imp.&Exp.
Hangcha          Subsidiary
                                 Forklift casting production             4500.00                13373.86         8114.72           112545.44               406.13                 304.22
Casting
Hangcha          Subsidiary
                                 Forklift electrical
Electric                                                                 5000.00                37288.63        13846.59           117461.39              3652.43                3156.02
                                 component production
Appliance
                 Equity
Zhongce                          Corporate management and
                 participation                                         350000.00              5411986.18     2593477.63           4495623.03           416914.31              403436.28
Haichao                          equity investment
                 company
Acquisition and disposal information of subsidiaries during the Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
                                                                         Acquisition and
                           Company name                                 disposal method of                    Impact on overall production, operation and performance
                                                                        subsidiaries during
                                                            The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                    the Reporting
                                                                        Period
                                                                                        This matter will not have an adverse impact on the production, operation, or financial position
HANGCHA FORKLIFT VIETNAM CO. LTD.                                New                    of the Company, nor will it prejudice the lawful rights and interests of the Company and all
                                                                                        shareholders.
                                                                                        This matter will not have an adverse impact on the production, operation, or financial position
HANGCHA MIDDLE EAST GENERAL TRADING FZE                          New                    of the Company, nor will it prejudice the lawful rights and interests of the Company and all
                                                                                        shareholders.
                                                                                        This matter will not have an adverse impact on the production, operation, or financial position
HANGCHA GROUP MANUFACTURING(THAILAND) CO. LTD.                   New                    of the Company, nor will it prejudice the lawful rights and interests of the Company and all
                                                                                        shareholders.
                                                                                        This matter will not have an adverse impact on the production, operation, or financial position
Zhejiang Zhichu Jia Material Handling Equipment Co., Ltd.        New                    of the Company, nor will it prejudice the lawful rights and interests of the Company and all
                                                                                        shareholders.
                                                                                        This matter will not have an adverse impact on the production, operation, or financial position
Hangzhou Hangcha Property Management Service Co., Ltd.           New                    of the Company, nor will it prejudice the lawful rights and interests of the Company and all
                                                                                        shareholders.
Other notes
"¡õ Applicable" "¡Ì Not applicable"
(8) Structured entities controlled by the company
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(1) Industry Landscape and Trends
"¡Ì Applicable" "¡õ Not applicable"
In 2025, in the face of global political and economic complexity and volatility as well as the challenges
of industrial chain restructuring, China's industrial vehicle sector demonstrated remarkable resilience.
While leading global production and sales, the industry is undergoing a profound transformation from
scale expansion to value enhancement. Since the fundamental logic of competition has shifted decisively:
The homogenized "battle for volume" has given way to a "contest of value", where technology, brand
equity, service      excellence, and ecosystem       synergy constituted the new              battlegroundquot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?                 vt       =4&wm
=3049_0005632640601&cid =76524&node_id =76524".
Amid the accelerating concentration at a pronounced pace, market resources are gravitating toward
industry leaders endowed with competitive edges, forming a distinct pattern of "consolidation at the
apex, differentiation across regions¡±. Industry pacesetters, armed with deep-rooted legacy, formidable
R&D prowess, refined channels, and life-cycle service capabilities, have erected formidable competitive
moats,   fortified   by   scale   effects   and   bargaining    power    on       the   industry        chain   quot;
https://news.yiche.com/hao/wenzhang/105302407/"quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?                 vt       =4&wm
=3049_0005632640601&cid =76524&node_id =76524". In contrast, those bereft of distinctive
technologies or scale edge find their operation space constantly compressed, as the forces of
consolidation and natural selection intensify, rendering the polarization increasingly stark quot;
https://news.yiche.com/hao/wenzhang/105302407/". Such trend is also manifest on and through the
supply chain, where vehicle manufacturers are imposing more stringent demands on the reliability,
efficiency, and local security of core components such as powertrain systems, while suppliers possessing
proprietary core technologies and integrated solutions are seeing their comparative advantages
decisively pronounced quot; https://www.huaon.com/channel/trend/1101723.html".
Cross-sector incursions and new contender participation are injecting fresh variables into the competitive
landscape. In such arenas as new energy and intelligent systems, players from the passenger vehicle and
construction machinery domains are swiftly gaining traction by means of capital, technology, or
business model to mount challenges in specific segments, compounding the intricacy and intensity of
market       competition          quot;      https://www.bitauto.com/article/1003103896084/"quot;
http://field.10jqka.com.cn/20260126/c674300347.shtml" beyond product pricing and performance,
extending to comprehensive value proposition of energy solution, intelligent integration, and
full-lifecycle service delivery. future success. In summation, the industrial vehicle sector falls into a
paradigm where "the strong grow stronger" while "innovators forge new paths". A single pillar no longer
suffices to underwrite long-term viability, and a systemic competitiveness pattern of technology, product
portfolio, supply chain integrity, service sophistication, and global operational acumen has emerged as
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
the                              decisive                            factor                              quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?             vt     =4&wm
=3049_0005632640601&cid =76524&node_id =76524".
As the global technological revolution and industrial transformation advance intensively and extensively,
the industrial vehicles are growing towards digital, ecological, and intelligent momentum that injects
formidable vitality into the industry¡¯s high-quality development. Digital intelligence, new energy
transition, and international shift constitute the defining threads of industry evolution, driving the
continuous reconfiguration of product architectures, business models, and competitive frontiers quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?             vt     =4&wm
=3049_0005632640601&cid                             =76524&node_id                       =76524"quot;
https://auto.cri.cn/20251128/16f1421b-2c56-4e6b-9fbd-32e362e9739e.html".
First, the new energy transition is now driven by market demand, with booming electrification across the
board. Propelled by the "dual carbon" strategy and the cost advantage of full lifecycle, new energy
industrial vehicles have transitioned from policy-catalyzed adoption to market-demand proliferation quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?             vt     =4&wm
=3049_0005632640601&cid =76524&node_id =76524"quot; https://www.xd56b.com/m/view.php?
aid =52579 ". In 2025, the electrification penetration rate of industrial vehicles continued its
upward trend, represented by the displacement of lead-acid batteries by lithium-based alternatives and
the ongoing exploration of diversified technologies like hydrogen fuel cells in specific application
scenarios, forming a multi-energy architecture of "lithium as the mainstay, hydrogen as the complement¡±
quot;                                       https://www.huaon.com/channel/trend/1101723.html".quot;
https://www.huaon.com/channel/trend/1101723.html" The market space for conventional internal
combustion vehicles is projected to contract further, with green, low-carbon product configurations
becoming the prevailing norm within the industry quot; https://www.xd56b.com/m/view.php? aid
=52579 ".
Second, intelligence technologies are transitioning from conceptual abstraction to scenario-specific
implementation as the linchpin of value creation. With the further fusion of AI with commercial
operation, the industry shifted its focal point from baseline configuration to customized solutions to
operation,   efficiency,   and    safety-specific    applications   in   intelligence   enhancement      quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?             vt     =4&wm
=3049_0005632640601&cid =76524&node_id =76524". Intelligence is no longer a mere product
differentiator, but a critical pillar for building defensible competitive barriers and executing the strategic
metamorphosis from equipment suppliers to comprehensive logistics solution providers quot;
http://dianzibao.cb.com.cn/html/2025-12/01/content_338741.htm?             div     =      -1        "quot;
https://www.xd56b.com/m/view.php? aid =52579 ".
Finally, internationalization is undergoing a qualitative elevation from "product export" to "ecosystem
export¡± as the players worldwide are deeply engaged in system deployment. Confronted with
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
stock-based competition within the domestic market, the overseas arena has become the major engine of
industry        growth           quot;         https://www.bitauto.com/article/1003103896084/"quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?               vt      =4&wm
=3049_0005632640601&cid =76524&node_id =76524". In 2025, the internationalization
strategies of preeminent enterprises have transcended trade-based export, pivoting toward the
establishment of an all-round ecosystem integrating indigenous R&D, manufacturing, in-market sales,
service             delivery,                and               financial            support                 quot;
https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html?               vt      =4&wm
=3049_0005632640601&cid                             =76524&node_id                          =76524"quot;
https://auto.cri.cn/20251128/16f1421b-2c56-4e6b-9fbd-32e362e9739e.html".                          Competition
priorities have ascended from price-centric rivalry to a comprehensive contest of brand resonance,
technological standards promotion, and industrial chain orchestration prowess, thereby driving upwards
Chinese      industrial    vehicle        brands      along      the       global   value        chain      quot;
http://dianzibao.cb.com.cn/html/2025-12/01/content_338741.htm?               div    =       -1        "quot;
http://field.10jqka.com.cn/20260126/c674300347.shtml".
(2) Company Development Strategy
"¡Ì Applicable" "¡õ Not applicable"
Dedicated to the mission to ¡°make materials handling easier, make logistics Intelligent smarter¡± and the
strategy of ¡°professional manufacturing, brand-driven operation, group-based management, and
international integration," the Company has been concentrating its strategic resources on six pivotal
vectors: New energy vehicles, intelligent logistics systems, aftermarket services, construction machinery,
core components, and cleaning equipment. Upholding the corporate ethos of "progressive, practical,
creative, harmonious", the Company is resolutely committed to value creation and societal contribution,
striving with unwavering determination toward the realization of its aspirational vision: "To be the best
forklift truck manufacturer in the world.¡±
(3) Operational Plan
"¡Ì Applicable" "¡õ Not applicable"
to its six strategic priorities, guided by the overarching principle of "stabilizing growth, optimizing
structure, driving innovation, and strengthening synergy". The Company will further empower its
high-quality development across the board through collaborative development of various sectors: New
energy vehicles lead the iteration of lithium battery and hydrogen energy products; smart logistics propel
the application of cutting-edge intelligent technologies like robotics; core components bolster in-house
mastery of the three core electric systems; aftermarket service optimization expedite the transition
toward full-lifecycle value delivery; global expansion intensify localization strategy while establishing a
growth engine centering on new energy for the global market.
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Guided by the new energy strategy, the Company will build a technological innovation system on
lithium battery, hydrogen energy, and hybrid power foundations, with intelligent technology at its core
and globally coordinated distribution to place energy products on the industry's top tier. The Company
will leverage the opportunity presented by the Hengfan Science and Technology Park (Phase IV) to
enrich product matrix to expedite technological breakthroughs and development for intelligent products
and advance the strategic implementation and industrial upgrading of the smart logistics segment.
The Company will maintain its dual-engine drive across domestic and international markets. In the
domestic market, we will continue to optimize marketing workforce and achieve leapfrog development
in the aftermarket on leasing, spare parts, and services. In the overseas market, we will further drive the
global deployment of products and technologies across such dimensions as brand momentum and
product portfolio.
In building an agile and efficient global operation system, the Company will push forward the operation
of the Thailand manufacturing base as a strategic pivot for international market expansion. Additional
overseas subsidiaries in underrepresented regions such as Central Asia, the Middle East, and Africa will
be established to further enhance international partnerships for the sustainability of our overseas lithium
battery joint venture.
The Company is expected to forge a highly synergistic industrial ecosystem among the three flagship
industrial parks in Qingshan, Hengfan, and Shiqiao: 1) Qingshan Innovation Park - Complete vehicle
R&D and high-end manufacturing; 2) Hengfan Science and Technology Park - Intelligent logistics
equipment and core components; 3) Shiqiao Innovation Park - Wellspring of frontier technology
innovation, gateway for international business, and showcase for the Company's corporate image. We
will step up the commercialization of innovation outcome and foster upstream-downstream industrial
chain integration to improve operational efficiency and industrial resilience.
Towards the strategic vision of becoming the world's foremost logistics equipment supplier, the
Company is driving all-round upgrading across organizational structure, technology R&D,
manufacturing, marketing, and services. By consolidating the Group-wide resources and technical
expertise of our intelligent logistics segment, the Company will establish an intelligent logistics research
institute, an embodied AI research institute, and a robotics innovation center, and bring up to market
more competitive AGV, AMR, and inspection robot products for sustaining our industry leadership. We
will build a project management-centric capability framework covering the project management talent
through the Company and refine an end-to-end project delivery system. We will also advance the
construction and mass production of the embodied robotics pilot base, develop a broader array of
intelligent logistics robots. Intelligent technologies will be harnessed to transform and upgrade our
conventional product lines, including forklifts, aerial work platforms, and cleaning equipment, while our
manufacturing, marketing, and service functions will be fully improved to support intelligent logistics
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solutions.
Guided by the talent-empowered enterprise initiative and in the principles of targeted talent acquisition,
systematic development, institutionalized retention, and synergistic deployment, the Company will
introduce more high-caliber interdisciplinary professionals in new energy and artificial intelligence,
enhance full-cycle talent development system with more focus on the young and high-potential talent,
and optimize incentive mechanism and career promotion system, and enhance the collaboration across
different divisions. The Company is building a talent ecosystem fully aligned with industrial architecture
to elevate organizational vitality and innovation momentum to support sustainability.
The Company will fortify the full-chain risk management framework by strengthening proactive,
preemptive oversight of operation risks at home and abroad, with more emphasis on mitigating
international trade barriers, managing exchange rate volatility, strengthening regulatory compliance of
overseas subsidiaries, and formulating risk early-warning and response protocols. In terms of ESG
governance, the Company will continue to implement the Sustainable Development (ESG) Management
Policy, incorporating ESG requirements into both strategic decision-making and routine businesses,
regularly publish bilingual ESG reports in both Chinese and English, and safeguard the rights and
interests of employees in line with the philosophy of safety, inclusivity, and sustainability.
(4) Possible Risks
"¡Ì Applicable" "¡õ Not applicable"
The Company's development is closely intertwined with the global macro-economy, industry policies,
market competition landscape, and operation capabilities. In its way to global leadership for a good start
of the "15th Five-Year Plan", the Company is clearly aware of possible risks and challenges in future
operations, to which purpose it has taken active measures.
The current global economic recovery remains sluggish overall, geopolitical conflicts continue to disrupt
the global economic and trade order, uncertainties are highlighted in the macroeconomic policy
adjustments by major economies, and international trade barriers are being intensified. In overseas
markets, particularly strategically significant regions, possible shifts in the business climate, regulatory
frameworks, and geopolitical conditions may engender material headwinds for the Company's
international expansion in operational integrity of overseas manufacturing facilities, resilience of the
global supply chain, and momentum of export activities. In domestic markets, economy finds itself
navigating a pivotal inflection point of structural metamorphosis and high-quality development, where
tectonic realignments in market demand might exert short-term compression on business performance.
The Company will remain resolutely anchored to its innovation-driven strategy, systematically
sharpening its core competitive edge through synergistic advances across management, technology,
marketing, and production, thereby fortifying its institutional resilience against risks. On the global
business landscape, the Company will deepen its "localized operations + structural growth" doctrine to
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prudently steward overseas production bases while aggressively setting footprints in high-potential
emerging markets such as Central Asia, the Middle East, and Africa. By shaping a global operation
landscape of "one core hub + N regional centers", the Company will nimbly navigate the labyrinth of
tariff and non-tariff barriers across different regions and effectively diversify away from the risk of
single-market concentration.
China's industrial vehicle sector continues to operate at a massive sales volume of one million units in
annual throughput, with the ongoing electrification and intelligentization inexorably characterized by a
palpable dialectic of "ferocious domestic rivalry with mounting external competition". The increasing
homogenization of electric product offerings is fueling acute price compression, while cross-sector
businesses and global energy powers are redoubling capital allocation toward new energy and intelligent
logistics, dramatically boosting technological innovation. Should the Company prove unable to sustain
its technological leadership, product iteration velocity, and cost control edges, its market share and
profitability profile could come under tangible strain.
To address the risks, the Company will deepen its "system primacy" R&D and innovation strategy to
build competitive moats through the frontier intelligent technologies. Towards the ¡°New Energy
Strategy¡±, the Company will continuously curate and refine a diversified new energy product portfolio
covering lithium battery, hydrogen fuel cell, and hybrid powertrain solutions to maintain its technical
performance benchmark and market competitiveness indelibly ensconced within the industry's apex tier.
Meanwhile, the Company will harness intelligent manufacturing and our own IoT platform to elevate
production agility, efficiency, and cost performance, and deepen customer entanglement and augment
full life-cycle value through a "hardware + solutions" combo for intelligent logistics under a
sophisticated aftermarket service ecosystem, thereby consolidating and extending its market hegemony.
With the continued expansion of the Company's overseas sales, its international business involve an
increasing number of currencies in settlement, where the exchange rate volatility may directly impact the
gains and losses from exchange rate conversion and operating results. Against a backdrop of intractable
geopolitical conflicts and changing monetary policies, the heightened unpredictability of currency
movements may materially impinge upon profitability.
To address the risks, the Company will maintain vigilant over the trend of major currencies and the
evolution of monetary policies, buttress its exchange rate risk early-warning architecture and governance
mechanisms, deploy a calibrated array of financial instruments for hedging purposes to immunize
against undue exposure. In the international trading, the Company will proactively champion settlement
in Renminbi or currencies exhibiting relative stability, while embedding exchange rate risk-sharing
covenants within contractual frameworks. Furthermore, the Company plans to speed up overseas
localization by routing sales and procurement through foreign subsidiaries, thereby compressing
cross-border capital flows and achieving a natural hedge against risks on exchange rate.
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The Company's asset base, headcount, and business scope are undergoing sustained and compounding
expansion, with a total workforce surpassing 7,200 (including 380+ foreign nationals) across 20+
overseas subsidiaries. The emergence of a diversified industrial ecosystem imposes heightened
exigencies upon corporate governance, cross-cultural stewardship, resource synergy, compliance and
risk control, and operational efficiency. If the management system, business flows, and talent
development fail to keep synchronous pace, the Company may encounter operation effectiveness decline,
internal control deficiencies, or overseas compliance transgression.
To address the risks, the Company will vigorously boost its digital transformation, leveraging its
established industrial Internet platform and group data center to instantiate five integrated pillars - digital
operation, digital business management, digital administration, digital marketing, and digital services for
the purposes of global business visualization, process standardization, and data-driven decision-making.
The Company will also refine and promote its excellence-centric performance management model and
build a "full-chain risk control system", with particular emphasis on fortifying compliance governance
and risk pre-screening across the overseas subsidiaries. On the human resources enhancement, the
Company will systematically advance its "Talent-Strengthening Enterprise Initiative", intensify the
recruitment, cultivation, and retention of internationally adept and specialized professionals while
optimizing incentive mechanism to ensure that managerial capability in lockstep with organizational
scale.
The Company is prosecuting forward-looking R&D and industrial positioning in frontier domains such
as intelligent robotics and autonomous systems that are characterized by profound uncertainties in
technical path, market demand, and commercialization. If technical breakthroughs fail to be achieved as
anticipated, or the market adoption fall materially short of expectations, investments may not yield
near-term economic returns, exerting certain inertial pressure on consolidated performance.
To address such risks, the Company will pursue a strategy blending "indigenous R&D with open-ended
collaboration¡± and leverage newly instantiated research entities on core technological breakthroughs.
With more emphasis on technological trend and market signaling, the Company has been forging
technology stacks and business models through pilot deployment for the creation of flagship intelligent
product lines. The scale and pacing of upfront investment will be prudently governed, with R&D vectors
and market strategies subject to milestone-based recalibration for the purpose of well-defined risk
management over capital investment in innovation projects.
(5) Others
"¡õ Applicable" "¡Ì Not applicable"
non-applicability of the standards or state secrets and commercial secrets and reasons
"¡õ Applicable" "¡Ì Not applicable"
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        Chapter 4 Environmental, Social, and Corporate Governance
"¡Ì Applicable" "¡õ Not applicable"
During the Reporting Period, the Company strictly complied with the provisions of the Company Law of
the People's Republic of China, the Securities Law of the People's Republic of China, the Code of
Corporate Governance for Listed Companies, the Rules Governing the Listing of Stocks on Shanghai
Stock Exchange and other relevant laws and regulations, as well as the normative documents on
corporate governance issued by the China Securities Regulatory Commission and the Shanghai Stock
Exchange. Taking into account its own circumstances, the Company revised its Articles of Association
and other corporate governance systems, further refined the reform of its corporate governance structure,
abolished its Board of Supervisors, and strengthened the competence of the Audit Committee. Through
the iterative upgrades of our information platform, we further strengthened the internal control system to
ensure scientific and efficient decision-making, precise execution, and comprehensive supervision. We
consistently enhanced the quality of information disclosure to ensure that the information is real,
accurate, and complete, while also being expressed in a clear, straightforward, and easily understandable
manner. We actively expanded communication channels with investors to effectively protect the legal
rights of investors, especially those of small and medium-sized investors. Our directors, and senior
executives strictly comply with laws and regulations as well as the company¡¯s internal rules, faithfully
fulfilling their responsibilities to promote the company¡¯s legal compliance, integrity, and steady
development.
(1) Improvement of the System Framework: We revised and added governance systems to
enhance the company's standardization level.
In accordance with the latest laws, regulations, exchange rules and guidelines, and reforms to its
corporate governance structure, the Company revised five existing systems, namely the Articles of
Association, the Rules of Procedure for the General Meeting of Shareholders, the Rules of Procedure for
the Board Meeting, the Working Rules for Independent Directors, and the Rules of Procedure for the
Audit Committee. The Rules of Procedure for the General Meeting of Shareholders were renamed as the
Rules of Procedure for the Shareholders' Meeting. To strengthen its market capitalization management,
further standardize its market capitalization management practices, effectively protect the legitimate
rights and interests of the Company, investors, especially small and medium-sized ones, and other
stakeholders, and enhance the company's investment value, the Company formulated a Market
Capitalization Management System based on the Company Law of the People's Republic of China, the
Securities Law of the People's Republic of China, the Rules Governing the Listing of Stocks on
Shanghai Stock Exchange, the Guidelines for the Regulation of Listed Companies No. 10¡ªMarket
Value Management and other relevant laws and regulations, as well as its Articles of Association and
own circumstances. Through these efforts, the Company ensures that its governance system adapts to the
times and regulatory requirements.
(2) Effective and standardized operation of Shareholders' Meetings and Board Meetings
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Since its listing, the Company has established relevant governance systems, including the Rules of
Procedure for the Shareholders' Meeting and the Rules of Procedure for the Board Meeting, and has
ensured the effective implementation of the internal governance system featuring a clear, reasonable,
rigorous, and standardized division of responsibilities. All operational procedures comply with the
provisions of relevant laws and regulations, as well as the Articles of Association of the Company.
Meeting records are standardized and complete, and file management is logical and orderly.
sessions of shareholders' Meetings. The Company convened and held shareholders' meetings in strict
accordance with the Company Law of the People's Republic of China, the Rules Governing the Listing
of Stocks on Shanghai Stock Exchange, and the Rules of Procedure for the Shareholders' Meeting. The
preparation, proposals, procedures, voting, resolutions, and information disclosure of the meetings met
the stipulated requirements. The company ensured that all shareholders exercised their legal rights
through various channels. A mechanism for separate voting for small and medium-sized investors was
established for the relevant resolutions reviewed at the Shareholders' Meeting, which utilized a
combination of on-site voting and online voting for decision-making. All meetings were conducted in
the presence of lawyers, who provided formal legal opinions.
Company held thirteen sessions of board meetings, six sessions of audit committee meetings, four
sessions of nomination committee meetings, one session of remuneration and evaluation committee
meeting, and one session of strategy committee meeting. All directors attended the meetings with
diligence and integrity, stayed informed about relevant laws and regulations, and carefully reviewed
proposals to ensure the scientific and rational nature of major decisions. The independent directors
maintained their independence, actively participated in their duties, expressed independent opinions on
relevant matters, played a supervisory role, and safeguarded the interests of the company and medium to
small shareholders. The four specialized committees under the Board of Directors¡ªnamely the Strategy
Committee, the Audit Committee, the Nomination Committee, and the Remuneration and Evaluation
Committee¡ªboasted reasonable member structures and strong professional expertise, working
collaboratively to ensure the Board's efficient performance. The Strategy Committee under the
Company's Board of Directors plays a comprehensive role in coordinating and guiding the ESG
practices of the Company, continuously improving and promoting strategic goals for the Company's
ESG development.
(3) Standardization of the Behavior of Controlling Shareholders and Actual Controllers.
The company's controlling shareholder exercises rights and fulfills obligations in accordance with the
law, strictly adhering to the principle of good faith, without interfering in the company's
decision-making and operations beyond the authority of the Shareholders' Meeting. The Company
maintains independence from its controlling shareholder with regard to personnel, assets, finance,
institutions, and business, ensuring the independent operation of the Board of Directors, Board of
Supervisors, Audit Committee, and internal management mechanism. There are no actions taken by the
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controlling shareholder or actual controller that would infringe on the company's funds or assets, or harm
the interests of the company and other shareholders, through related party transactions, asset
restructuring, external investments, guarantees, profit distributions, etc. During the review of relevant
proposals, a strict conflict-of-interest avoidance system is implemented.
(4) Strengthening Information Disclosure and Preventing Insider Trading.
The company strictly follows the requirements of relevant laws and regulations as well as its own
"Information Disclosure Management System," ensuring that company information is disclosed in a
truthful, accurate, complete, and timely manner through the Shanghai Stock Exchange website and the
Securities Times, among others. This guarantees that the company's information disclosure is public, fair,
and just, ensuring that all investors can access company information equitably, enhancing the target
specificity and effectiveness of the information disclosed, and facilitating investors' value judgments and
investment decisions. The company also manages confidentiality prior to information disclosure and
maintains a registry of insiders related to major matters.
The Company conducted insider information registration in strict accordance with the Registration
Management System of Insiders, continuously strengthening its insider information management.
Adhering to the principle of prevention first, the Company handled all confidential matters in a prudent
manner, striving to minimize the access scopes, and registered insiders at meetings such as the
shareholders' meetings and management team meetings prior to the disclosure of periodic reports. The
company strictly controls the external transmission of undisclosed financial information.
(5) Active Efforts in Investor Relations Maintenance and Management
The Company has focused on balancing its sustainable development with shareholder investment returns.
It successfully implemented its equity distribution plan for 2024 and the first three quarters of 2025,
providing substantial financial returns to investors. The Company attaches great importance to investor
relations. The Board Office has personnel responsible for investor relations management. Led by the
Board Secretary, such personnel explain the company's operating status to investors, answer their
questions, solicit their views and suggestions on corporate governance and development, and improve
the two-way communication mechanism between the Company and investors in a comprehensive and
systematic manner via multiple channels, including phone calls, emails, online performance briefings,
investor strategy meetings by securities firms, industry exhibitions, SSE E-interactive, on-the-spot
communication, visits to listed companies, investor reception days, roadshows, and reverse roadshows.
Is there a significant difference between company governance and the regulations of the China Securities
Regulatory Commission (CSRC)? If there are significant differences, the reasons should be explained.
"¡õ Applicable" "¡Ì Not applicable"
ensure the independence of company assets, personnel, finances, organizational structure, and
business, as well as solutions, work progress, and future work plans related to issues affecting
company independence
"¡Ì Applicable" "¡õ Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha Holding, as the actual controlling entity of the company, strictly fulfills its relevant obligations
in accordance with the Company Law, Securities Law, and other legal regulations, ensuring
independence in terms of personnel, assets, finances, organizational structure, and business. During the
Reporting Period, the company made and implemented major decisions independently, and there were
no instances of the actual controlling entity intervening in the company's decisions or operational
activities bypassing the Shareholders' Meeting.
The Situation Regarding the Controlling Shareholder, Actual Controllers, and Their Controlled Entities
Engaging in Similar or Related Businesses, the Impact of Significant Changes in Industry Competition
on the Company, Measures Taken, Progress of Solutions, and Future Resolution Plans
"¡õ Applicable" "¡Ì Not applicable"
                                                           The 2025 Annual Report of Hangcha Group Co., Ltd.
(1) changes in shareholdings and remuneration of current and former directors and senior managers during the reporting period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                                 Unit: Share
                                                                                                                                                Total pre-tax
                                                                                                                                               remuneration       Whether to
                                                                                                                       Change in               received from        receive
                                                                                       Beginning of                                  Reason
                                            Commencement date    Termination date of                   End of Year    Shareholding             the Company      remuneration
     Name       Title        Gender   Age                                                  Year                                        for
                                                of term                term                            Shareholding    During the                during the      from related
                                                                                       Shareholding                                  Change
                                                                                                                          Year                   Reporting      parties of the
                                                                                                                                                Period (Ten        Company
                                                                                                                                              thousand yuan)
           Chairman of the
           Board
Zhao Limin                   Male     69                                                    28616014       28616014              0                    236.50         No
           General
           Manager
Fang Xiang Vice chairman     Male     51            05/08/2025            09/07/2028               0              0              0                                  Yes
     Qiu
           Director          Male     64            09/26/2019            09/07/2028               0              0              0                                  Yes
  Jianping
  Qiu Fei  Director          Female   36            09/08/2025            09/07/2028               0              0              0                                  Yes
   Sheng
           Director          Female   42            09/08/2025            09/07/2028               0              0              0                                  Yes
    Leijia
           Deputy General
           Manager
           Employee
Jin Huashu Representative    Male     48            09/08/2025            09/07/2028          229211         229211              0                    155.10         No
           Director
           General
           Manager
           Independent
 Zhu Yaer                    Female   63            09/09/2022            09/07/2028               0              0              0                     10.00         No
           Director
           Independent
Zhu Lihong                   Female   62            09/08/2025            09/07/2028               0              0              0                      3.33         No
           Director
                                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
             Independent
Zou Manli                      Female   74   09/08/2025          09/07/2028               0              0        0              3.33   No
             Director
   Xu        Director                        09/26/2019          09/08/2025
                                Male    56                                         3482445         3482445        0            185.70   No
 Zhengyu     Chief Engineer                  09/26/2019          09/07/2028
             Deputy     Chief
                                Male    49   09/26/2019          09/08/2025
   Li        Engineer
Yuansong     Deputy General
                                Male    49   09/08/2025          09/07/2028
             Manager
             Assistant
             General                         09/26/2019          12/31/2025
             Manager                                                                                                Personal
   Chen
             Sectary of the Male        60                                         4270000         4260000   -10000 funding    153.30   No
  Saimin                                     09/26/2019          12/31/2025
             Board                                                                                                  needs
             Deputy General
             Manager
             Assistant
             General            Male         09/09/2022          12/31/2025
Wu Jianxin   Manager                    61                                          660044          660044        0            166.20   No
             Deputy General
             Manager
             Marketing
  Shi        Director
                                Male    46                                                0              0        0             34.00   No
Quanhong     Deputy General
             Manager
Jin Zhihao   Chief Designer     Male    62   09/26/2019          09/07/2028        5129161         5129161        0            148.80   No
             Chief
             Accountant
             Persons        in
  Zhang
             Charge         of Male     61   06/28/2020          09/07/2028               0              0        0            121.00   No
 Shutong
             Finance
             Chief Financial
             Officer
             Deputy     Chief
Zhou Suhua   Engineer          Female   62                                          856684          856684        0            131.30   No
             Assistant                       12/31/2025          09/07/2028
                                                               The 2025 Annual Report of Hangcha Group Co., Ltd.
           General
           Manager
           Deputy      Chief
           Engineer
Li Minghui Assistant          Male      51                                                            0               0               0                      24.50        No
           General                                     12/31/2025            09/07/2028
           Manager
           Sectary of the
 Jiang Yun                   Female     37             12/31/2025            09/07/2028               0               0               0                           -       No
           Board
Lu Hongbo
           Vice chairman     Female     50             09/07/2020            04/07/2025               0               0               0                                  Yes
  (Former)
 Xu Zheng
           Director          Female     42             09/26/2019            09/08/2025               0               0               0                                  Yes
  (Former)
    Zhao
   Yuchen  Director           Male      37             05/10/2023            09/08/2025               0               0               0                                  Yes
  (Former)
 Shou Jian Independent
                              Male      55             09/26/2019            09/08/2025               0               0               0                       7.50        No
  (Former) Director
     Cai
           Independent
  Yunfeng                     Male      48             09/26/2019            09/08/2025               0               0               0                       7.50        No
           Director
  (Former)
    Wang                                                                                                                                Personal                          No
           Deputy General
 Guoqiang                     Male      61             09/09/2022            09/08/2025         1209439        1191939           -17500 funding             124.60
           Manager
  (Former)                                                                                                                              needs
Ren Haihua
           Chief Economist    Male      46             09/26/2019            09/08/2025          606239          606239               0                     105.60        No
  (Former)
    Total           /          /         /             /                     /                 45475617       45448117           -27500      /             1749.66         /
  Name                                                                               Main Work Experience
           Born in October 1956, Chinese nationality, member of the Communist Party of China, Senior Economist. Served as Deputy Director of the Dispatch Office, Factory Director,
Zhao       Head of the Manufacturing Department, and Deputy General Manager at Hangzhou Forklift Co., Ltd. From April 2000 to May 2003, served as the General Manager of Hangzhou
Limin      Forklift Co., Ltd. From June 2003 to December 2008, served as the General Manager of the Company. Has held the position of Chairman and General Manager of the Company
           since December 2008 and has been the Party Secretary since May 2018. Currently serves as the Party Secretary and Chairman of the Company.
Fang       Born in December 1975, Chinese nationality, member of the Communist Party of China, Master's degree. From August 1998 to December 2002, served as a technician at the
                                                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
Xiang      Hangzhou Industrial Information Center in Zhejiang Province. From December 2002 to May 2015, served as Staff Member, Senior Staff Member, Principal Staff Member, and
           Deputy Division Director of the Technological Progress and Equipment Division of the Hangzhou Municipal Economic Commission in Zhejiang Province. From May 2015 to
           October 2016, served as Deputy Division Director of the Intelligent Manufacturing Industry Division of the Hangzhou Economy and Information Technology Commission in
           Zhejiang Province. From October 2016 to May 2019, served as Division Director of the Information Security Industry Division (Safety Production Industry Division) and Division
           Director of the Cloud Computing and Big Data Industry Division of the Hangzhou Economy and Information Technology Commission in Zhejiang Province. From May 2019 to
           July 2023, served as Division Director of the Information Infrastructure Division (Cloud Computing and Big Data Industry Division) of the Hangzhou Municipal Bureau of
           Economy and Information Technology in Zhejiang Province. Has been Director of the Investment and Development Department and the Science and Technology Industry
           Department of Hangzhou Industrial Investment Group Co., Ltd. since July 2023, and Director of Hangzhou Goldfish Electrical Appliances Group Co., Ltd. since March 2024. Has
           held the position of Chairman and General Manager of Zhejiang Hanghua New Material Technology Co., Ltd. since March 2025. Has been Director and Vice Chairman of the
           Company since May 2025.
           Born in January 1962, Chinese nationality, holds a master's degree in engineering. Served as Chairman and President of Hangzhou GreatStar Technology Co., Ltd. and Chairman
           of GreatStar Holding Group Co., Ltd. from July 2008 to March 2011. From March 2011 to October 2014, held positions as Chairman and President of Hangzhou GreatStar
           Technology Co., Ltd., Chairman of GreatStar Holding Group Co., Ltd., Chairman of Zhejiang Hangcha Holding Co., Ltd., and Director of Hangcha Group Co., Ltd. From October
Qiu        Hangcha Holding Co., Ltd., Director of Hangcha Group Co., Ltd., and Director of Zhejiang Guozi Robot Technology Co., Ltd.
Jianping   From October 2019 to December 2019, again held similar positions at Hangzhou GreatStar Technology Co., Ltd., GreatStar Holding Group Co., Ltd., Zhejiang Hangcha Holding
           Co., Ltd., Hangcha Group Co., Ltd., and was a Director of Zhejiang Guozi Robotics Co., Ltd. and Zhongce Rubber Group Co., Ltd. Since December 2019, serves as Chairman of
           Hangzhou GreatStar Technology Co., Ltd., Chairman of GreatStar Holding Group Co., Ltd., Chairman of Zhejiang Hangcha Holding Co., Ltd., Director of Hangcha Group Co.,
           Ltd., Director of Zhejiang Guozi Robot Technology Co., Ltd., Director of Zhongce Rubber Group Co., Ltd., and Director of Zhejiang Xinchai Co., Ltd. Has been a director of the
           company since March 2011.
           Born in April 1990, Chinese nationality, without permanent residence abroad, Master's degree. From October 2012 to August 2013, served as Manager of the Investment Banking
           Division at the Hangzhou Branch of CITIC Bank. From November 2014 to October 2023, served as Deputy General Manager of GreatStar Holding Group Co., Ltd. Has held the
Qiu Fei
           position of General Manager at GreatStar Holding Group Co., Ltd. since October 2023. Has been a Director of Zhejiang Hangcha Holding Co., Ltd. since January 2019, and has
           been a Director of Zhongce Rubber Group Co., Ltd. since September 2021. Has been a Director of the Company since September 2025.
           Born in December 1984, Chinese nationality, member of the Communist Party of China, Master's degree. From September 2008 to April 2015, served as a member of the Project
           Management Department of Hangzhou GreatStar Technology Co., Ltd. From April 2015 to July 2021, served as the Director of the Board Office of Hangzhou GreatStar
Sheng      Technology Co., Ltd. From July 2021 to May 2022, served as the Deputy Secretary of the Party Committee and Minister for Economic Development of GreatStar Holding Group
Leijia     Co., Ltd. From May 2022 to February 2024, served as the Deputy Secretary of the Party Committee and Director of the Chairman's Office of GreatStar Holding Group Co., Ltd.
           Has been the Deputy Secretary of the Party Committee and Vice President of GreatStar Holding Group Co., Ltd. since March 2024. Has been a Director of the Company since
           September 2025.
           Born in December 1978, Chinese nationality, member of the Communist Party of China, committee member of the company's Party Committee, holds a bachelor's degree, Master
           of Engineering, Senior Economist. From August 2001 to May 2003, served as a technician and planner in the Manufacturing Department of Hangzhou Forklift Co., Ltd. Since
Jin Huashu June 2003, has served as a technician, planner, assistant minister, deputy minister, minister, production director, and deputy general manager of the Manufacturing Department at
           the Company, and Chairman and Executive Director of subsidiaries such as Hangzhou Forklift & Metal Working & Welding Co., Ltd. Currently serves as Employee
           Representative Director and General Manager of the Company.
Zhu Yaer Born in March 1964, holds a master¡¯s degree, Chinese nationality, member of the Jiusan Society, Associate Professor. Does not hold permanent residency abroad. From 2000 to
                                                                      The 2025 Annual Report of Hangcha Group Co., Ltd.
           present, serves as an Associate Professor at the Analytical Testing Center of Zhejiang University. Became an Independent Director of the company in September 2022.
           Born in 1964, Chinese nationality, member of the China Democratic League, without permanent residency abroad, postgraduate degree, associate professor. Joined Zhejiang
           Gongshang University in 1999, engaging in undergraduate and postgraduate education at the School of Accounting of Zhejiang Gongshang University, and serving as a lecturer
Zhu
           for finance-related courses in high-end training programs at Zhejiang University and other institutions. Served as an Independent Director for Tederic Machinery Co., Ltd., Allied
Lihong
           Machinery Co., Ltd., Zhejiang Xinhua Chemical Co., Ltd., Joy Kie Co., Ltd., Asia Silicon (Qinghai) Co., Ltd., Zhejiang Asia Pacific Electromechanical Co., Ltd., and Shanghai
           Balance Automotive Equipment Co., Ltd. Has been an Independent Director of the company since September 2025.
           Born in 1952, Chinese nationality, bachelor's degree, senior political engineer. Has held the position of Deputy Secretary General and Director of the Office of the Hangzhou
           Ningbo Promotion Association for Economic Construction since September 2001. Has been the Executive Director of Hangzhou Hangzhou Bay Advertising Media Co., Ltd. since
Zou Manli
           June 2004, and has been the Secretary General of the Ningbo Chamber of Commerce in Hangzhou since April 2011. From September 2016 to September 2022, served as
           Independent Director of Hangcha Group Co., Ltd. Has been Independent Director of the Company since September 2025.
           Born in October 1970, Chinese nationality, member of the Communist Party of China, committee member of the company's Party Committee, holds a bachelor's degree, Senior
           Engineer, enjoys special government allowances from the State Council. From July 1992 to February 2000, served as a technician, designer at the research institute, and Deputy
Xu         Chief Designer at Hangzhou Forklift General Factory. From March 2000 to May 2003, served as Chief Designer at the research institute of Hangzhou Forklift Co., Ltd. Since June
Zhengyu    2003, has served as Deputy Section Chief, Section Chief, Deputy Chief Designer, Deputy Chief Engineer, and Chief Engineer of the research institute at the Company, and as a
           Director of Henan Jiachen Intelligent Control Co., Ltd. From September 2019 to September 2025, served as a Director of the Company. Has been Chief Engineer of the Company
           since September 2019.
           Born in October 1977, Chinese nationality, member of the Communist Party of China, holds a bachelor¡¯s degree, Master of Engineering, Senior Engineer. Since August 2000, has
Li         served as a designer of the research institute, Deputy Section Chief of the internal combustion forklift research institute, Section Chief of the heavy-duty vehicle research institute,
Yuansong Section Chief of the dynamic compaction machine research institute, Director of the R&D center in North America, and Deputy Chief Engineer at the Company, and as Executive
           Director and General Manager of Hangcha Group (Tianjin) New Energy Forklift Co., Ltd. Currently serves as Vice General Manager of the Company.
           Born in June 1966, Chinese nationality, member of the Communist Party of China, committee member of the company¡¯s Party Committee, holds a bachelor¡¯s degree, Senior
           Engineer, and Senior Economist. From July 1987 to March 2000, served as a salesperson in the sales department of Hangzhou Forklift General Factory, an R&D designer in the
Chen       research institute, an assistant engineer, and a sales manager at KL Forklift Components. From October 2000 to May 2003, served as Sales Manager, General Manager, and
Saimin     Executive Director at Hangzhou Hangcha KL Forklift Components Co., Ltd. Since June 2003, has served as Executive Director and General Manager, Assistant General Manager,
           Chief Engineer, and Board Secretary of Hangzhou Hangcha KL Forklift Components Co., Ltd., and as Executive Director and Director of subsidiaries such as Hangzhou Hangcha
           KL Forklift Components Co., Ltd. Currently serves as Vice General Manager of the Company.
           Born in February 1965, Chinese nationality, member of the Communist Party of China, holds a bachelor¡¯s degree, Senior Economist. From August 1985 to March 2000, served as
           a technician in the Technological Section, workshop technician, Deputy Director of the workshop, equipment department technician, and planning office technician at Hangzhou
           Forklift General Factory. From March 2000 to November 2005, served as a planner in the Board Office and Deputy Director of the Import and Export Department of the Group
Wu Jianxin
           Company. Since November 2005, has served as Deputy General Manager, General Manager, General Manager of the International Department, and Assistant General Manager of
           Zhejiang Hangcha Imp. & Exp. Co., Ltd., and as Executive Director of Hangcha Forklift America and Hangcha Forklift Canada. Currently serves as Vice General Manager of the
           Company.
           Born in April 1980, Chinese nationality, bachelor's degree, member of the Communist Party of China. From September 2004 to October 2006, served as a designer at the research
Shi
           institute. From October 2006 to February 2013, served as a salesperson and Assistant Manager at Guangzhou Hangcha Forklift Co., Ltd. From February 2013 to December 2015,
Quanhong
           served as Manager of the Dongguan Branch and Shenzhen Branch. Since December 2015, has served as Head of the Key Client Department, Head of the Warehouse and Vehicle
                                                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
           Sales Department, General Manager of the Sales Company, and Marketing Director at the Company. Currently serves as Vice General Manager and Marketing Director of the
           Company.
           Born in September 1964, Chinese nationality, holds a bachelor¡¯s degree, Senior Engineer, and recipient of the State Council Special Government Allowance. From August 1985 to
           February 2000, served as a designer, Chief Engineer, and Deputy Section Chief of the research institute at Hangzhou Forklift General Factory. From March 2000 to May 2003,
Jin Zhihao
           served as Deputy Section Chief of the research institute at Hangzhou Forklift Co., Ltd. Since June 2003, has served as Deputy Section Chief, Section Chief, and Chief Designer of
           the research institute at the Company. Currently serves as Chief Designer of the Company.
           Born in December 1965, Chinese nationality, member of the Communist Party of China, holds a university degree, Senior Accountant. From August 1985 to April 1995, served as
           Head of the Planning, Statistics, Accounting, and Finance Departments at Hangzhou Measuring Tool Co., Ltd. From May 1995 to March 2000, served as the accountant and
Zhang
           Deputy Division Director of the Finance Division at Hangzhou Forklift General Factory. From April 2000 to October 2007, served as Deputy Director of the Finance Department
Shutong
           at the Company. Since November 2007, has served as Director of the Finance Department, Deputy Chief Accountant, Chief Accountant, and Head of Finance at the Company.
           Currently serves as Chief Financial Officer and Head of Finance at the Company.
           Born in May 1964, Chinese nationality, holds a bachelor¡¯s degree, Senior Engineer. From August 1985 to March 2000, served as a technician and Assistant Director of heat
Zhou       treatment workshop at Hangzhou Forklift General Factory. From April 2000 to May 2003, served as Factory Director of heat treatment branch at Hangzhou Forklift Co., Ltd.
Suhua      Since June 2003, has served as Factory Director of heat treatment branch, Director of the process research institute, Head of the product inspection department, and Deputy Chief
           Engineer at the Company. Currently serves as the Assistant General Manager of the Company.
           Born in September 1975, Chinese nationality, bachelor's degree and master's degree in engineering, senior engineer. From May 2004 to November 2007, served as a designer and
           test engineer at the research institute. From November 2007 to January 2022, served as Deputy Director of the pilot production workshop, Director of the testing and inspection
Li Minghui
           center, and Director of the research institute. Since January 2022, has served as General Manager and Deputy Chief Engineer of Hangzhou Hangcha Electric Appliance Co., Ltd.
           and Zhejiang Hangbo Electric Drive Co., Ltd. Currently serves as the Assistant General Manager of the Company.
           Born in March 1989, Chinese nationality, master's degree in finance. From 2015 to 2017, served as an analyst at China Merchants Securities Co., Ltd. From 2017 to 2021, served
           as the Board Secretary of Zhejiang Guozi Robotics Co., Ltd. From 2021 to 2025, served as the Chief Financial Officer and Deputy General Manager of Zhejiang JYSS
Jiang Yun
           Bio-Engineering Co., Ltd. Since May 2025, has served as Deputy Director of the Board Office, Director of Investor Relations, and Head of the Securities Investment Department
           of Hangcha Group Co., Ltd. Currently serves as the Board Secretary of the Company.
           Born in October 1976, Chinese nationality, member of the Communist Party of China, holds a master's degree in science, Senior Economist. From August 1999 to March 2000,
           served as Administrative Assistant in the Administration and Human Resources Department of Shanghai Sanjing Optoelectronics Medical Equipment Co., Ltd. From April 2000
           to November 2005, served as Secretary to the General Manager and Youth League Secretary at Shanghai Feile Co., Ltd. From December 2005 to August 2016, held various
           positions at Hangzhou City Investment Asset Management Group Co., Ltd., including Deputy Manager of the Comprehensive Department, Manager of the Comprehensive
Lu Hongbo Department, Deputy General Manager, General Manager, Party Branch Member, and Deputy Secretary of the Party General Branch; concurrently served as Chairman of
           Hangzhou City Scenery Industrial Co., Ltd. (formerly Hangzhou Hejing Real Estate Co., Ltd.) and Chairman of Hangzhou Chenglian Industrial Co., Ltd. From September 2016 to
           June 2018, served as Deputy Secretary of the Party Committee and General Manager of Hangzhou Residential Development Center Co., Ltd. Since September 2018, has served as
           Party Branch Secretary, Chairman, and General Manager of Hangshi Asset Management (Hangzhou) Co., Ltd. Became a director of Zhongce Rubber Group Co., Ltd. from June
           Born in March 1984, Chinese nationality, member of the Communist Party of China, holds a bachelor's degree, Senior Economist. From March 2011 to September 2017, served as
Xu Zheng Secretary to the Chairman of GreatStar Holding Group Co., Ltd., and as a Director of Hangzhou GreatStar Technology Co., Ltd. and Hangcha Group Co., Ltd. From September
                                                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
            Group Co., Ltd., and Zhejiang Guozi Robotics Co., Ltd. From April 2018 to October 2019, served as Director of the Chairman's Office of GreatStar Holding Group Co., Ltd., and
            as a Director of Hangzhou GreatStar Technology Co., Ltd., Hangcha Group Co., Ltd., and Zhejiang Guozi Robotics Co., Ltd. From October 2019 to May 2020, held the position
            of Director of the Chairman's Office of GreatStar Holding Group Co., Ltd. and was a Director of Hangzhou GreatStar Technology Co., Ltd., Hangcha Group Co., Ltd., Zhejiang
            Guozi Robot Technology Co., Ltd., and Chairman of the Supervisory Board of Zhongce Rubber Group Co., Ltd. Since May 2020, serves as Director of the Chairman's Office of
            GreatStar Holding Group Co., Ltd., a Director of Hangzhou GreatStar Technology Co., Ltd., Hangcha Group Co., Ltd., and Chairman of the Supervisory Board of Zhongce
            Rubber Group Co., Ltd. Served as a Director of the Company from March 2011 to September 2025.
            Born in December 1989, Chinese nationality, holds a master's degree. Since December 2016, has served as Assistant to the General Manager and Deputy General Manager of
            Hangzhou West Lake Tiandi Development Co., Ltd.; concurrently held positions as a Director of Zhejiang Xinchai Co., Ltd. and Hangzhou Jinsong Younuo Electric Appliance
Zhao
            Co., Ltd., as well as Executive Director of Hangzhou West Lake Tiandi Property Service Co., Ltd. and Hangzhou Taifeng Management Co., Ltd., and Executive Director and
Yuchen
            General Manager of Hangzhou Liangya Building Material Co., Ltd. Currently serves as Deputy General Manager of Hangzhou West Lake Tiandi Development Co., Ltd. and
            Executive Director and General Manager of Hangzhou Liangya Building Material Co., Ltd. Served as a Director of the Company from May 2023 to September 2025.
            Born in October 1971, Chinese nationality, holds a bachelor's degree in law and a master's degree in Public Administration from Nottingham Trent University, UK; qualified
            lawyer since 1995, member of the Communist Party of China. Previously worked at the Hangzhou Public Security Bureau, holding positions such as Chief of the Legal Affairs
Shou Jian   Section and Police Station Chief. Since February 2012, served as the Director of the Integrity Department at Alibaba Group, responsible for corporate discipline supervision and
            integrity culture development; currently serves as a Senior Director in the Security Department of Alibaba Group, focusing on major risk control. Served as an Independent
            Director of the Company from September 2019 to September 2025.
            Born in November 1978, Chinese nationality, member of the China Democratic League, holds a bachelor's degree. A Certified Public Accountant, Tax Advisor, and Senior
Cai         Accountant. From December 2002 to May 2013, served as Deputy Section Chief at Hangzhou Jiangnan Tax Consulting Firm. Since June 2013, has served as Deputy Section
Yunfeng     Chief and Section Chief at Hangzhou Zhongming Tax Consulting Firm. Since December 2018, also holds the position of Chief Accountant at Hangzhou Zhongyin Accounting
            Firm. Served as an Independent Director of the Company from September 2019 to September 2025.
            Born in October 1965, Chinese nationality, member of the Communist Party of China, committee member of the company¡¯s Party Committee, Senior Economist. From December
Wang        May 2003, served as a dispatcher in the dispatching department, Deputy Division Director of the marketing division, and Manager of Guangzhou Branch at Hangzhou Forklift
Guoqiang    Co., Ltd. From June 2003 to November 2014, served as Manager of Guangzhou Branch and Manager of Shenzhen Branch, General Manager of Guangzhou Hangcha Forklift Co.,
            Ltd. and Guangzhou Zhehang Forklift Co., Ltd., and General Manager of the Guangdong Region. From December 2014 to September 2025, served as Assistant General Manager,
            Marketing Director, and Deputy General Manager of the Company.
            Born in March 1979, Chinese nationality, member of the Communist Party of China, holds a bachelor's degree, Master of Engineering, Senior Economist. From August 2002 to
            May 2003, served as a technician in the Quality Management Department of Hangzhou Forklift Co., Ltd. Since June 2003, has served as a quality management technician,
Ren
            Assistant Factory Director, Deputy Director and Director of the Comprehensive Management Department, and Deputy Chief Economist at the Company, and as Director of the
Haihua
            Information Management Office and the Human Resources Department, Chairman and General Manager of Zhejiang Hangcha Guozi Robotics Co., Ltd., and Executive Director
            of Hefei Hanhe Intelligent Logistics Technology Co., Ltd. From September 2019 to September 2025, served as Chief Economist of the Company.
Additional Information
"¡õ Applicable" "¡Ì Not applicable"
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(2) Positions of current and former directors and senior managers during the Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Commencement        Termination date
     Employee name         Corporate shareholder name             Position
                                                                                   date of term           of term
                                                         Chairman     of
Qiu Jianping           Zhejiang Hangcha Holding Co., Ltd                         January 2011
                                                         the Board
Qiu Fei                Zhejiang Hangcha Holding Co., Ltd Director                January 2019
Xu Zheng               Zhejiang Hangcha Holding Co., Ltd Supervisor              January 2011
                                                         Director of the
                                                         Investment and
                                                         Development
                                                         Department
                       Hangzhou Industrial Investment
Fang Xiang                                               and the Science         June 2023
                       Group Co., Ltd.
                                                         and
                                                         Technology
                                                         Industry
                                                         Department
Explanation         of
employment          in None
corporate shareholders
"¡Ì Applicable" "¡õ Not applicable"
     Employee                                                                          Commencement       Termination
                              Other Organizations                     Position
      name                                                                              date of term      date of term
                Hangzhou Zhongce Haichao Enterprise
                                                                 Director             February 2020
                Management Co., Ltd.
                Zhongce Rubber Group Company Limited             Director             October 2019
                Baoji Hangcha Engineering Machinery Co.,
                                                                 Director             May 2018
                Ltd.
                Zhejiang Huachang Hydraulic Machinery Co.,
Zhao Limin                                                       Director             April 2018
                Ltd.
                Hangzhou Forklift Mast Co., Ltd.                 Director             April 2018
                Hangzhou Forklift Sheet Metal Welding Co.,
                                                                 Director             April 2018
                Ltd.
                Zhejiang Hangcha Import and Export Co., Ltd.     Executive director August 2020
                Zhejiang Hangcha Guozi Robotics Co., Ltd.        Director           August 2025
                Zhejiang Hanghua New Material Technology         Chairman       and
                                                                                    March 2025
                Co., Ltd.                                        General Manager
                Hangzhou Goldfish Electrical Appliances
                                                                 Director             January 2024       August 2025
                Group Co., Ltd.
Fang Xiang      Zhejiang Huafeng Paper Group Co., Ltd.           Director             January 2024       May 2025
                Hangzhou Low-Altitude Industry Development
                                                                 Director             May 2024           April 2025
                Co., Ltd.
                Hangzhou Industrial Digital Technology
                                                                 Director             July 2025
                (Hangzhou) Co., Ltd.
                Hangzhou Chaoyang Haoyun Enterprise
                                                                 Executive Partner    April 2019
                Management Partnership (Limited Partnership)
                Hangzhou Chaoyang Wenxing Enterprise
                                                                 Executive Partner    January 2021
Qiu Jianping    Management Partnership (Limited Partnership)
                                                                 Chairman of the
                GreatStar Holding Group Co., Ltd.                                August 2009
                                                                 Board
                Hangzhou GreatStar Industrial Co., Ltd.          Chairman of the August 2010
                          The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                           Board
          Zhejiang Xinchai Co., Ltd.                       Director            December 2019
          Xinjiang Lianhe Investment Co., Ltd.             Executive Partner   November 2001
          Hangzhou Kunxia Enterprise Management
                                                           Executive Partner   January 2018
          Partnership (Limited Partnership)
          Zhejiang Zhongtai GreatStar Real Estate Co.,
                                                           Director            May 2005
          Ltd.
          Hangzhou Chaoyang Risheng Enterprise
                                                           Executive Partner   January 2021
          Management Partnership (Limited Partnership)
          Zhejiang United Investment Co., Ltd.             Director        April 2015          October 2025
          Hangzhou Zhongce Haichao Enterprise              Chairman of the
                                                                           April 2019
          Management Co., Ltd.                             Board
          Zhongce Rubber Group Company Limited             Director        October 2019
          Zhejiang Equity Service Group Co., Ltd.          Director        November 2017
          Zhejiang Youbon Small Loan Co., Ltd.             Director        December 2009
          Hangzhou Xihu Tiandi Development Co., Ltd        Director        November 2012       January 2025
          Zhejiang Guozi Robot Technology Co., Ltd.        Director        October 2014
          Zhejiang Hangcha Guozi Robotics Co., Ltd.        Director        August 2025
          Hangzhou Great Star Precision Machinery Co.,     Chairman of the
                                                                           December 2018
          Ltd                                              Board
          Changzhou      Huada     Kejie    Opto-Electro
                                                           Director            August 2015
          Instrument Co., Ltd.
                                                           Chairman of the
          Dongguan Ouda Electronics Co., Ltd.                              March 2017
                                                           Board
          Hangzhou Lujing Culture and Creativity Co.,
                                                       Executive director      November 2015
          Ltd.
                                                       Executive Director
          Hangzhou GreatStar Energy Co., Ltd.          and        General      December 2022   July 2025
                                                       Manager
          Hangzhou Chaoyang Risheng Enterprise
                                                       Executive Partner       February 2021
          Management Partnership (Limited Partnership)
          Hangzhou GreatStar Industrial Co., Ltd.      Executive director      December 2018
          Hangzhou GreatStar Lianhe International Director            and
                                                                               January 2026
          Holding Co., Ltd.                            Manager
          Hangzhou Oak Private Fund Management Co.,
                                                       Executive director      March 2018
          Ltd.
          Hangzhou Zhongce Haichao Enterprise
                                                       Manager, Director       April 2019
          Management Co., Ltd.
          Zhejiang Guozi Robot Technology Co., Ltd.    Director                May 2020
                                                       Director       and
          GreatStar Holding Group Co., Ltd.                                    January 2020
                                                       General Manager
                                                       Legal
          Hangzhou BeA Machinery Equipment
                                                       Representative and      April 2025
          Manufacturing Co., Ltd.
                                                       Director
          Hangzhou Jinsong Younuo Electrical Co., Ltd. Vice chairman           November 2025
Qiu Fei
          Hangzhou Weina Technologies Co., Ltd.        Director                August 2025
          Hangzhou Great Star Precision Machinery Co.,
                                                       General Manager         March 2020
          Ltd
          Hangzhou Lujing Culture and Creativity Co.,
                                                       Manager                 April 2020
          Ltd.
          Hangzhou GreatStar Industrial Co., Ltd.      Manager                 February 2022
          GH Optics (Jiangsu) Co., Ltd.                Director                May 2021
          Hangzhou Quanlin Investment Partnership
                                                       Executive Partner       November 2015
          (Limited Partnership)
          Zhongce Rubber Group Company Limited         Director                October 2021
          Hangzhou GreatStar Industrial Co., Ltd.      Director                May 2024
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
               Zhejiang Xinchai Co., Ltd.                     Director             December 2023
Sheng Leijia   GreatStar Holding Group Co., Ltd.              Vice president       March 2024
               Hangzhou Jingsheng Enterprise Management
                                                              Executive Partner    January 2023
               Partnership (Limited Partnership)
               Baoji Hangcha Engineering Machinery Co.,
                                                              Director             May   2023
               Ltd.
               Hangzhou Pengcheng New Energy Technology
                                                              Director             July 2018
               Co., Ltd.
               Hangzhou Hangcha Materials Trading Co.,
                                                              Executive director   April 2018
               Ltd.
                                                           Chairman of the
               Hangzhou Forklift Mast Co., Ltd.                                    May 2017
                                                           Board
               Hangzhou Gangcun Transmission Co., Ltd.     Director                November 2022
                                                           Chairman of the
               Hangzhou Hangcha Foundry Co., Ltd.                                  May 2018
                                                           Board
               Hangzhou Forklift Sheet Metal Welding Co., Chairman of the
                                                                                   January 2017
               Ltd.                                        Board
                                                           Chairman of the
               Hangzhou Hangcha Bridge Box Co., Ltd.                               April 2018
                                                           Board
Jin Huashu     Hangzhou Hangcha Aerial Equipment Co.,
                                                           Executive director      August 2020
               Ltd.
               Changsha Zhongchuan Transmission Co., Ltd. Director                 August 2020
               Hangzhou Hangcha Machinery Equipment Chairman of the
                                                                                   May 2018
               Manufacturing Co., Ltd.                     Board
               Hangzhou Hangcha Precision Manufacturing
                                                           Executive director      February 2021
               Co., Ltd.
               Hangzhou Hangcha Electric Appliance Co.,
                                                           Executive director      April 2018
               Ltd
               Hangzhou Hangcha Machining Co., Ltd.        Executive director      April 2018
               Hangzhou Zhiban Enterprise Management
                                                           Executive Partner       March 2024
               Partnership (Limited Partnership)
                                                           Chairman of the
               Zhejiang Hangbo Electrical Drive Co., Ltd.                          August 2024
                                                           Board
               Zhejiang Zhichu Jia Material Handling Chairman of the
                                                                                   January 2025
               Equipment Co., Ltd.                         Board
               Hangzhou Hangcha Yunrui Technology Co., Chairman of the
                                                                                   June 2024
               Ltd.                                        Board
               Hangzhou Shaohai Information Technology
                                                           Director                January 2019
               Co., Ltd.
Zhu Yaer
               Zeda Precision (Hangzhou) Biopharmaceutical
                                                           Supervisor              January 2023
               Co., Ltd.
               Shanghai Balance Automotive Equipment Co., Independent
                                                                                   May 2025
               Ltd.                                        Director
Zhu Lihong
               Hangzhou Xiangbin Electronic Technology Independent
                                                                                   September 2025
               Co., Ltd.                                   Director
                                                           Independent
Zou Manli      Hoshine Silicon Industry Co., Ltd.                                  September 2021
                                                           Director
Xu Zhengyu     Henan Jiachen Intelligent Control Co., Ltd. Director                April 2018
               Shanghai Hangcha Okamura Co., Ltd.          Director                April 2022
                                                           Executive Director
Li Yuansong    Hangcha Group (Tianjin) New Energy Forklift
                                                           and        General      September 2020
               Co., Ltd.
                                                           Manager
               Hangzhou Zhongce Haichao Enterprise
                                                           Director                May 2019
               Management Co., Ltd.
Chen Saimin
               Baoji Hangcha Engineering Machinery Co.,
                                                           Director                January 2018
               Ltd.
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
              Hangzhou      Hangcha       Kangli   Forklift
                                                                 Executive director   January 2007
              Attachments Co., Ltd.
              Hangzhou Hangcha Cab Co., Ltd.                     Executive director   December 2012
              Hangzhou Forklift Mast Co., Ltd.                   Director             May 2024
              Hangzhou Forklift Sheet Metal Welding Co.,
                                                                 Director             May 2024
              Ltd.
              Hangcha Europe GmbH                                Executive director   December 2021
              Zhejiang Hangcha Siweis International Trade
                                                                 Executive director   May 2023
              Co., Ltd.
              Zhejiang Hangcha Import and Export Co., Ltd.       General Manager      November 2021
              HC Forklift America Corporation                    Executive director   August 2017
              Hangcha Forklift Canada Inc.                       Executive director   October 2019
Wu Jianxin
              Hangcha Australia Pty. Ltd.                        Executive director   June 2022
              Hangcha Forklift Mexico Inc.                       Executive director   December 2022
              Hangcha Group Manufacturing (Thailand) Co.,
                                                                 Executive director   October 2024
              Ltd.
              Hangcha Europe Rental & Sales                      Executive director November 2024
              Hangcha Group (Tianjin) Financing Leasing          Chairman of the
                                                                                    August 2020
              Co., Ltd.                                          Board
              Hangzhou Hangzhong Engineering Machinery
                                                                 Executive director   September 2025
              Co., Ltd.
              Zhejiang Huachang Hydraulic Machinery Co.,
                                                                 Supervisor           August 2020
              Ltd.
              Hangzhou Forklift Mast Co., Ltd.                   Director             August 2020
              Hangzhou Gangcun Transmission Co., Ltd.            Director             November 2022
              Hangzhou Hangcha Foundry Co., Ltd.                 Director             October 2020
              Hangzhou Forklift Sheet Metal Welding Co.,
                                                                 Director             August 2020
              Ltd.
              Hangzhou Hangcha Bridge Box Co., Ltd.              Director             August 2020
              Hangzhou Hangcha E-commerce Co., Ltd.              Executive director   October 2023
              Hangcha New Energy Forklift (Wenzhou) Co.,
Zhang Shutong                                                    Executive director   July 2023
              Ltd.
              Hangzhou Hangcha Yunrui Technology Co.,
                                                                 Director             June 2024
              Ltd.
              Hangcha International Leasing (Tianjin) Co.,
                                                                 Executive director   May 2025
              Ltd.
              Zhoushan Hangcha International Financial
                                                                 Director             February 2026
              Leasing Co., Ltd.
                                                            Legal
               Hangcha Forklift (Vietnam) Co., Ltd.                             February 2025
                                                            Representative
                                                            Executive Director
               Hangzhou Hangcha Property Management
                                                            and           Chief January 2025
               Service Co., Ltd.
                                                            Financial Officer
               Hangcha International Leasing (Tianjin) Co.,
                                                            Director            May 2025
               Ltd.
               Hangzhou Hangcha Electric Appliance Co.,
                                                            General Manager January 2022
               Ltd
                                                            Director        and
               Zhejiang Hangbo Electrical Drive Co., Ltd.                       July 2024
                                                            General Manager
Li Minghui
               Hangzhou Hongmai Intelligent Control Chairman                and
                                                                                February 2026
               Technology Co., Ltd.                         General Manager
                                                            Chairman of the
               HM Battery Solutions (France)                                    January 2026
                                                            Board
               Zhongce Rubber Group Company Limited         Director            July 2020              July 2025
Lu Hongbo      Hangshi Asset Management (Hangzhou) Co., Chairman            and
                                                                                October 2018           March 2025
               Ltd.                                         General Manager
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
              Hangzhou Zhongce        Haichao     Enterprise
                                                                  Supervisor           April 2019
              Management Co., Ltd.
                                                                  Employee
              Hangzhou GreatStar Industrial Co., Ltd.             Representative       June 2025
Xu Zheng                                                          Director
                                                                  Chairman of the                       Demcember
              Zhongce Rubber Group Company Limited                                     October 2019
                                                                  supervisory board                     2025
              GreatStar Holding Group Co., Ltd.                   Supervisor           February 2016
              Zhejiang Hangcha Holding Co.,Ltd                    Supervisor           January 2011
                                                                                                        November
              Hangzhou Jinsong Younuo Electrical Co., Ltd. Director                    November 2021
              Zhejiang Xinchai Co., Ltd.                  Director                     May 2018
              Hangzhou Taifeng Business Management Co.,
                                                          Executive director           February 2023
              Ltd.
              Hangzhou West Lake Tiandi Property Service
                                                          Executive director           January 2021
Zhao Yuchen   Co., Ltd.
                                                          Executive Director
              Hangzhou Liangya Building Materials Co.,
                                                          and        General           March 2023
              Ltd.
                                                          Manager
              Hangzhou Xihu Tiandi Development Co., Ltd Director                       January 2025
              Hangzhou GreatStar Lianhe International
                                                          Manager, Director            March 2025       January 2026
              Holding Co., Ltd.
              Hangzhou Zhouzhang Network Technology
                                                          Supervisor                   August 2020
              Co., Ltd.
              Hangzhou Chengying Data Technology Co.,                                                   February
                                                          Director                     October 2018
              Ltd.                                                                                      2026
                                                          Executive Director
              Hangzhou Yuexin Network Technology Co.,
                                                          and        General           August 2020
Shou Jian     Ltd.
                                                          Manager
              Hangzhou Yunfu Network Technology Co.,
                                                          Supervisor                   September 2020
              Ltd.
                                                          Independent
              Vala Inc. (Hong Kong)                       Non-Executive                May 2022
                                                          Director
                                                          Executive Director
              Hangzhou Zhongming Tax Firm Co., Ltd.       and        General           December 2014
                                                          Manager
                                                          Executive Director
              Hangzhou Zhongyin Accounting Firm Co.,
                                                          and        General           December 2018
              Ltd.
Cai Yunfeng                                               Manager
                                                          Executive Director
              Hangzhou Zhongyin Technology Service Co.,
                                                          and        General           September 2019
              Ltd.
                                                          Manager
              Hangzhou Beisheng Financial Consulting Co.,
                                                          Supervisor                   July 2010
              Ltd.
                                                                                                        September
              Hangcha Group Leasing Co., Ltd.                     Executive director   May 2015
Wang                                                                                                    2025
Guoqiang                                                                                                September
              Zhejiang Hangcha Parts Sales Co., Ltd.              Executive director   May 2021
                                                           Chairman of the
              Shanghai Hangcha Okamura Co., Ltd.                                       April 2022
                                                           Board
                                                           Director       and
              Zhejiang Hangcha Guozi Robotics Co., Ltd.                                February 2018
Ren Haihua                                                 Manager
              Shanghai Hangcha Okamura Co., Ltd.           Executive director          August 2022
              Hefei Hanhe Intelligent Logistics Technology Executive Director
                                                                                       May 2024
              Co., Ltd.                                    and        General
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                          Manager
                Zhejiang Guozi Intelligent Equipment Co.,
                                                          Executive director       January 2024
                Ltd.
                Hangzhou Kangqian Enterprise Management
                                                          Executive Partner        March 2024
                Partnership (Limited Partnership)
                Hangcha America Smart Logistics Solution
                                                          Executive director       January 2025
                Corporation
Note         on
positions with
                None
other
organizations
(3) Remuneration of directors and senior managers
"¡Ì Applicable" "¡õ Not applicable"
                                         The Company's remuneration practices for directors are reviewed and approved
                                         at the Board Meetings and Shareholders' Meetings. Non-independent directors
                                         and senior managers who hold positions or undertake management functions in
Decision-making         processes     of
                                         the Company are remunerated in accordance with relevant remuneration
remuneration for directors and senior
                                         regulations of the Company based on their specific management positions in
managers
                                         the Company or its subsidiaries. Independent directors receive a fixed
                                         allowance. The remuneration of senior managers is implemented according to
                                         the standards reviewed at the Board Meetings.
Do Directors Abstain From Voting on Yes
Their Own Compensation Matters?
Details of recommendations made by the
Remuneration         and      Evaluation On April 17, 2025, the Company held its 7th Meeting of the Remuneration and
Committee or by independent directors Evaluation Committee of the Board of Directors to review the 2024
at special meetings regarding the remuneration of senior managers in operational and management roles within
remuneration of directors and senior the Company.
managers
                                         The remuneration was determined based on the Company's position-based
Basis for determining the remuneration
                                         remuneration practices, position responsibilities, term-based performance
of directors and senior managers
                                         assessments, and operating performance.
                                         Actual payments were made in accordance with the aforementioned principles
Payment of remuneration for directors and relevant documents. The specific amounts are detailed in the "Changes in
and senior managers                      Shareholdings and Remuneration of Current and Former Directors and Senior
                                         Managers During the Reporting Period" table in this section.
Total remuneration actually paid to all
directors and senior managers at the end RMB 17,496,600 (pre-tax).
of the Reporting Period
Assessment basis and completion status In accordance with the Remuneration Management System of the Company for
of the remuneration actually paid to all Directors and Senior Managers, as well as other relevant regulations, the
directors and senior managers at the end Company's directors and senior managers have performed their duties
of the Reporting Period                  diligently, and the remuneration assessment has been completed.
Deferred payment for the actual
remuneration paid to all directors and
                                         N/A
senior managers at the end of the
Reporting Period
Cessation of payments and recovery of
the remuneration actually paid to all
                                         N/A
directors and senior managers at the end
of the Reporting Period
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
(4) Changes in directors and senior managers of the Company
"¡Ì Applicable" "¡õ Not applicable"
        Name                         Position                          Changes          Reason for change
Lu Hongbo             Vice chairman                        Resignation               Job Transfer
Fang Xiang            Vice chairman                        Election                  Succession
Qiu Fei               Director                             Election                  Succession
Sheng Leijia          Director                             Election                  Succession
                      Director                             Election                  Succession
Jin Huashu            General Manager                      Appointment
                                                                                     Job Transfer
                      Deputy General Manager               Resignation
Xu Zheng              Director                             Resignation               Succession
Xu Zhengyu            Director                             Resignation               Succession
Zhao Yuchen           Director                             Resignation               Succession
Shou Jian             Independent Director                 Resignation               Succession
Cai Yunfeng           Independent Director                 Resignation               Succession
Zhu Lihong            Independent Director                 Election                  Succession
Zou Manli             Independent Director                 Election                  Succession
                      Deputy General Manager               Appointment
Chen Saimin           Assistant General Manager      and                             Job Transfer
                                                           Resignation
                      Board Secretary
Wang Guoqiang         Deputy General Manager               Resignation               Succession
                      Vice     General     Manager   and
Shi Quanhong                                               Appointment               Succession
                      Marketing Director
                      Deputy General Manager               Appointment
Wu Jianxin                                                                           Job Transfer
                      Assistant General Manager            Resignation
Jiang Yun             Sectary of the Board                 Appointment               Job Transfer
                      Deputy General Manager               Appointment
Li Yuansong                                                                          Job Transfer
                      Deputy Chief Engineer                Resignation
                      Assistant General Manager            Appointment
Zhou Suhua                                                                           Job Transfer
                      Deputy Chief Engineer                Resignation
                      Assistant General Manager            Appointment
Li Minghui                                                                           Job Transfer
                      Deputy Chief Engineer                Resignation
(5) statement on penalties from securities regulators in the last three years
"¡õ Applicable" "¡Ì Not applicable"
(6) Other
"¡õ Applicable" "¡Ì Not applicable"
(1) Attendance of directors at Board Meetings and Shareholders' Meetings
                                                                                                   Attendance
                                                                                                       at
                                               Attendance at Board Meetings
                                                                                                  Shareholders'
                                                                                                    Meetings
                  Is
Director                                                                             Has the
             Independent   Total
 Name                                                                    Number     Director
               Director  Required Number of     Number of      Number of                            Number of
                                                                            of    Missed Two
                          Board    Personal    Attentions via    Proxy                              Meetings
                                                                         Absences Consecutive
                         Meetings Attendances Communication Attendances                             Attended
                                                                                    Personal
                         This Year
                                                                                  Attendances?
Zhao         No                 13         13                0         0        0 No                            4
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Limin
Lu          No                                                  0          0          0 No
Hongbo
Fang                                                            0          0          0 No
            No                10            10                                                                      3
Xiang
Qiu                                                             0          0          0 No
            No                13            13                                                                      4
Jianping
Qiu Fei     No                   3           3                  0          0          0 No                          2
Sheng                                                           0          0          0 No
            No                   3           3                                                                      2
Leijia
Jin                                                             0          0          0 No
            No                   3           3                                                                      2
Huashu
Xu Zheng    No                10            10                  0          0          0 No                          2
Xu                                                              0          0          0 No
            No                10            10                                                                      2
Zhengyu
Zhao                                                            0          0          0 No
            No                10            10                                                                      2
Yuchen
Zhu Yaer    Yes               13            13                  0          0          0 No                          4
Shou Jian   Yes               10            10                  0          0          0 No                          2
Cai                                                             0          0          0 No
            Yes               10            10                                                                      2
Yunfeng
Zhu                                                             0          0          0 No
            Yes                  3           3                                                                      2
Lihong
Zou                                                             0          0          0 No
            Yes                  3           3                                                                      2
Manli
Explanation for Consecutive Absences from Board Meetings:
"¡õ Applicable" "¡Ì Not applicable"
Number of Board Meetings Held in the Year:       13
Among these: Number of in-person meetings:       13
Number of meetings held via communication:       0
Number of meetings held using both in-person and
communication methods:
(2) 3. Objections raised by directors on matters related to the company
"¡õ Applicable" "¡Ì Not applicable"
(3) other
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
(1) Members of Specialized Committees
Specialized Committee Category                                     Member Names
                                 Zhu Lihong, Zou Manli, Fang Xiang, Cai Yunfeng (resigned), Shou Jian (resigned),
Audit Committee
                                 Lu Hongbo (resigned)
Nomination Committee             Zou Manli, Zhu Ya'er, Jin Huashu, Shou Jian (resigned), Xu Zhengyu (resigned)
Remuneration and Evaluation
                                 Zhu Ya'er, Zhu Lihong, Qiu Fei, Cai Yunfeng (resigned)
Committee
Strategy Committee               Zhao Limin, Qiu Jianping, Zhu Yaer
Note: Ms. Lu Hongbo resigned in April 2025 and no longer serves as the director of the Company or
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
holds a position on the relevant specialized committee; Mr. Xu Zhengyu, Mr. Cai Yunfeng, and Mr.
Shou Jian no longer serve as the director of the Company or hold a position on the relevant specialized
committee after the election of new directors for the board at the 2nd interim meeting of the shareholders¡¯
meeting of 2025 held on September 8, 2025.
(2) The Audit Committee held six sessions of meetings during the Reporting Period
                                                                                        Important          Other
   Date of
                                              Agenda                                   Opinions and   Performance of
  convening
                                                                                       Suggestions        Duties
                Members of the Audit Committee communicated with the audit firm
                Consideration and adoption: Company's 2024 Audit Report,
                Company's 2024 Annual Report and Summary, Company's 2024
                Financial Statement, 2024 Internal Control Evaluation Report,
                Proposal on Renewal of the Company¡¯s Audit Firm for 2025,
                Public Accountants LLP, Report on the Audit Committee's
                Performance of Duties in 2024, Report on the Audit Committee's
                Performance of Supervisory Duties over Pan-China Certified Public
                Accountants LLP, and Internal Audit Report.
                Consideration and adoption: Proposal on the Subsidiary's Proposed
                Capital Increase and Share Expansion to Acquire 99.23% equity
                shares in Zhejiang Guozi Robotics Co., Ltd. and Related Party
                Transactions
                Consideration and adoption: Company's 2025 Semi-Annual Report
                and Summary.
(3) The Strategy Committee held one session of meetings during the Reporting Period
                                                                                        Important          Other
Date of convening                               Agenda                                 Opinions and   Performance of
                                                                                       Suggestions        Duties
                    The meeting discussed topics such as the company's 14th
                    Five-Year Technology Transformation Project, renewable energy
                    development strategy, international layout, mergers and
                    acquisitions in domestic and foreign industries, and the Hengfan
                    Phase IV Logistics Project, planning for the achievement of the
                    company's high-quality development.
(4) The Remuneration and Evaluation Committee held one session of meeting during the
Reporting Period
                                                                                        Important          Other
   Date of
                                              Agenda                                   Opinions and   Performance of
  convening
                                                                                       Suggestions        Duties
                Consideration and adoption: Proposal on the Remuneration and
(5) The Nomination Committee held four sessions of meeting during the Reporting Period
                                                                                        Important          Other
   Date of
                                              Agenda                                   Opinions and   Performance of
  convening
                                                                                       Suggestions        Duties
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                 Consideration and adoption: Proposal on the Election of Additional
                 Directors
                 Consideration and adoption: Proposal on the Election of
                 Independent Directors for the 8th Board of Directors
                 Consideration and adoption: Proposal on the Election of the
                 Chairman of the Company, Proposal on the Election of the Vice
                 Chairman of the Company, Proposal on the Election of Members
                 and Chairs of the Specialized Committees of the Board of Directors,
                 Proposal on the Employment of the General Manager, and Proposal
                 on the Employment of Senior Managers
                 Consideration and adoption: Proposal on the Adjustment of the
                 Employment of the Board Secretary
(6) specifics of disputed matters:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
The Audit Committee raised no objection to the supervisory matters during the Reporting Period.
Subsidiaries
(1) Employee
Number of employees in the parent company                                                                    1920
Number of employees in major subsidiaries                                                                    5313
Total number of employees                                                                                    7233
Number of retired employees whose expenses are borne by the
parent company and main subsidiaries
                                              Specialty composition
                       Specialty category                                    Number of Specialty Personnel
                     Production personnel                                                                    3228
                        Sales personnel                                                                      1959
                      Technical personnel                                                                    1739
                      Financial personnel                                                                     182
                   Administrative personnel                                                                   125
                         Total Amount                                                                        7233
                                                 Education level
                    Education level category                                      Employees (person)
                    Master's degree or above                                                                  238
                  Bachelor's degree and above                                                                1555
                        Associate degree                                                                     1536
                  Senior high school or below                                                                3904
                         Total Amount                                                                        7233
(2) Compensation policy
"¡Ì Applicable" "¡õ Not applicable"
The company strictly manages employee compensation in accordance with the national Labor Contract
Law and other relevant policies, establishing a comprehensive compensation management system. The
compensation is determined based on job positions and guided by labor market prices, providing
employees with a highly competitive external and fair internal compensation policy. The company offers
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
various incentive measures, including position allowances and professional qualification subsidies.
(3) Training plan
"¡Ì Applicable" "¡õ Not applicable"
The training plan is closely aligned with the company¡¯s production and operational development
strategy, combined with the annual education and training plan, to effectively promote talent
development. Through various forms of online and offline training such as collaborations with
universities, internal training, external training, and lectures, the company strives to foster a
learning-oriented corporate culture to provide talent support for sustainable development.
(4) Labor outsourcing
"¡õ Applicable" "¡Ì Not applicable"
(1) Cash dividend policy development, execution, or adjustment status
"¡Ì Applicable" "¡õ Not applicable"
The company's Articles of Association clearly specify the principles and forms of profit distribution,
especially detailing the conditions and proportions for cash dividends. When proposing a dividend plan,
the Board of Directors strictly adheres to the regulations on cash dividends issued by the China
Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE). The
decision-making procedures on profit distribution by the Board of Directors and the shareholders'
meeting are relatively standardized. During the Reporting Period, the Company's profit distribution
policy complies with the aforementioned profit distribution plan and review procedures of the China
Securities Regulatory Commission (CSRC), and conforms to the Company Law, the CSRC's Regulatory
Guidelines for Listed Companies No. 3¡ªDistribution of Cash Dividends of Listed Companies (2025
Revision), the Articles of Association, and other relevant policies and procedural requirements. The
legitimate rights and interests of minority investors were fully protected. No adjustments were made to
the cash dividend policy.
(2) Special note of the cash dividend policy
"¡Ì Applicable" "¡õ Not applicable"
Conforming to the provisions of the Company's Articles of Association or the requirements of the
                                                                                                      "¡Ì Yes" "¡õ No"
General Meeting of Shareholders resolutions:
The distribution standards and ratios were clear and unambiguous:                                     "¡Ì Yes" "¡õ No"
The relevant decision-making procedures and mechanisms were complete:                                 "¡Ì Yes" "¡õ No"
The independent directors performed their duties diligently and played their due role:                "¡Ì Yes" "¡õ No"
Minority shareholders had sufficient opportunities to express their opinions and appeals, and their
                                                                                                      "¡Ì Yes" "¡õ No"
legitimate rights and interests were fully protected:
(3) If the company is profitable during the Reporting Period and the parent company's
distributable profits for shareholders are positive, but no cash dividend distribution plan has been
proposed, the company should disclose the reasons in detail and the intended use and plans for the
undistributed profits.
"¡õ Applicable" "¡Ì Not applicable"
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
(4) Profit Distribution and Capital Reserve Increase Plan for This Reporting Period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
Number of bonus shares distributed for every 10 shares (shares)
Cash dividends distributed for every 10 shares (RMB) (including tax)                                           4.00
Bonus shares added for every 10 shares
Total cash dividend amount (inclusive of tax)                                                          523924819.60
Net profit attributable to ordinary shareholders of the listed company in the consolidated
financial statements
Cash dividend amount as a percentage of net profit attributable to ordinary shareholders of
the listed company in the consolidated financial statements (%):
Amount spent on repurchasing shares counted as cash dividends
Total dividend amount (inclusive of tax)                                                               523924819.60
Total dividend amount as a percentage of net profit attributable to ordinary shareholders of
the listed company in the consolidated financial statements (%):
Note: On November 26, 2025, the Company implemented its equity distribution plan for the first three
quarters of 2025, distributing a cash dividend of RMB 2.00 (including tax) to all shareholders for every
Announcement on the Implementation of Equity Distribution for the First Three Quarters of 2025
(Announcement No. 2025-062). For the year of 2025, the Company's total cash dividends amounted to
RMB 785,887,229.40, accounting for 35.86% of the net profit attributable to the parent company in
(5) Cash Dividend Situation for the Last Three Accounting Years
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
Cumulative cash dividend amount for the last three accounting years (inclusive of
tax) (1)
Cumulative amount repurchased and canceled in the last three accounting years (2)
Cumulative amount of cash dividends and repurchased and canceled shares in the last
three accounting years (3) = (1) + (2)
Annual average net profit for the last three accounting years (4)                                     1973260221.20
Cash dividend ratio for the last three accounting years (%) (5) = (3) / (4)                                   96.72
Net profit attributable to ordinary shareholders of the listed company in the
consolidated financial statements for the most recent accounting year
Undistributed profits at the end of the most recent accounting year in the parent
company's financial statements
employee incentive measures and their impact
(1) Related incentive matters have been disclosed in a temporary announcement, and there has
been no progress or change in subsequent implementation.
"¡õ Applicable" "¡Ì Not applicable"
(2) Status of incentive matters not disclosed in the temporary announcement or with subsequent
progress
Equity incentive status
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Employee stock ownership plan status
"¡õ Applicable" "¡Ì Not applicable"
Other incentive measures
"¡õ Applicable" "¡Ì Not applicable"
(3) Equity incentive status granted to directors and senior executives during the Reporting
Period
"¡õ Applicable" "¡Ì Not applicable"
(4) Evaluation mechanism for senior executives during the Reporting Period, and the
establishment and implementation of the incentive mechanism
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Please refer to the "2025 Annual Internal Control Evaluation Report" disclosed by the company on April
Explanation of Significant Deficiencies in Internal Control During the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
The Company has established operational strategies and risk management strategies for its holding
subsidiaries in accordance with documents such as the Subsidiary Management System and Regulations
on the Management of Overseas Institutions. It supervises holding subsidiaries to develop relevant
business operation plans, risk management procedures, and internal control systems based on these
frameworks. The Company also formulates performance evaluation and incentive systems for its holding
subsidiaries and establishes internal reporting systems for significant matters and for the disclosure of
major issues. The Company regularly obtains and analyzes monthly or quarterly reports from each
holding subsidiary, while the internal audit department and relevant business management departments
conduct timely inspections of holding subsidiaries to standardize various operational practices.
According to relevant regulations, the Company entrusts accounting firms to audit the financial reports
of its holding subsidiaries and is able to evaluate the implementation and supervision of internal control
systems of holding subsidiaries.
Risk warning regarding abnormal management and control of subsidiaries
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
In accordance with the "Guidelines for Internal Control Audits" and relevant requirements of Chinese
CPA professional standards, Tianjian Accounting Firm (Special General Partnership) audited the
effectiveness of the internal control of the company's financial report as of December 31, 2025, and
issued a report stating that "Hangcha Group Co., Ltd. maintained effective internal control over financial
reporting as of December 31, 2025, in all material respects in accordance with the 'Basic Norms for
Enterprise Internal Control' and related regulations."
Is the Internal Control Audit Report Disclosed?
Type of Internal Control Audit Report Opinion:
Was a non-standard audit opinion on internal controls issued during the Reporting Period or the previous
year
"¡õ Yes" "¡Ì No"
None
List of Enterprises Legally Required to Disclose Environmental Information
"¡Ì Applicable" "¡õ Not applicable"
Number of enterprises included in
the List of Enterprises Legally
Required to Disclose Environmental
Information (Number)
  No.          Company name           Index to the reports regarding law-based disclosure of environmental information
                                     Ecology and Environment Department of Zhejiang - System on Corporate
                                     Environmental Information Disclosed in accordance with the Law
                                     https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=9133000014304182XR
                                     &uniqueCode=09de553501ecf2aa&date=2025&type=true&isSearch=true
                                     Ecology and Environment Department of Zhejiang - System on Corporate
        Hangzhou Hangcha             Environmental Information Disclosed in accordance with the Law
        Foundry Co., Ltd.            https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-more?code=913301856680044581
                                     &uniqueCode=2a512d63e2373654&date=2025&type=true&isSearch=true
Other notes
"¡Ì Applicable" "¡õ Not applicable"
In accordance with the provisions of the Measures for the Administration of the Law-Based Disclosure
of Environmental Information by Enterprises (Order No. 24 of the Ministry of Ecology and Environment
of the People's Republic of China, issued on December 11, 2021, and effective from February 8, 2022),
the Notice on Issuing the Format for Law-Based Disclosure of Environmental Information by
Enterprises (Huanban Zonghe [2021] No. 32), and the Implementation Plan for the Reform of the
Law-Based Disclosure System of Environmental Information in Zhejiang Province (Issued in April 2022
by the Ecology and Environment Department of Zhejiang), as well as the industry background
corresponding to the 2025 List of Companies Disclosing Environmental Information published in
various regions, the Company and its relevant subsidiaries have completed the environmental
information filing and disclosure work for 2025.
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(1) Whether a social responsibility report, sustainable development report, or esg report is
disclosed separately
"¡Ì Applicable" "¡õ Not applicable"
Please refer to the 2025 Sustainable Development (ESG) Management Report disclosed by the Company
on April 22, 2026, on the website of Shanghai Stock Exchange (www.sse.com.cn).
(2) Specific details of social responsibility work
"¡õ Applicable" "¡Ì Not applicable"
Specific Statement
"¡õ Applicable" "¡Ì Not applicable"
Revitalization
"¡Ì Applicable" "¡õ Not applicable"
     Poverty Alleviation and Rural
                                             Quantity/Content                             Notes
         Revitalization Projects
Total investment (Ten thousand yuan)                         220.58
Including: funds (Ten thousand yuan)                           0.80 One-on-one assistance
Material value (Ten thousand yuan)                           219.78 Purchase of products that better support farmers
Number of Beneficiaries: (Persons)                             7000
Forms of Assistance (e.g., Industrial
Poverty Alleviation, Employment
Poverty Alleviation, Educational
Poverty Alleviation, etc.)
Specific Statement
"¡Ì Applicable" "¡õ Not applicable"
Guided by a sense of mission and responsibility, the Company fulfills its legal obligations to consumers,
communities and the environment while generating profits and fulfilling its legal obligations to
shareholders and employees. It does not take profit as its sole goal, and places greater emphasis on
human concern in the production process and the enhancement of personal value. The Company
continues to fulfill its corporate social responsibility, and to promote employee value enhancement,
environmental protection, and social welfare. Through these efforts, the Company contributes to
sustainable development.
Main achievements of the Company in poverty alleviation and rural revitalization are as follows:
(1) Industrial poverty alleviation: Strengthen the rural-urban cooperation mechanism, focus on assisting
Zitong Town in Chun'an County, promote the collective economic income increase project of Fushi
Village, and continue to consolidate the dual-drive model of "economic weakness elimination and
income increase + art industry". The Company promotes sustainable rural development through
industrial development.
(2) Employment-based poverty alleviation: Drive the development of rural industries in villages such as
Guifangqiao Village in Lin'an District through the co-construction mechanism for alliance building,
Party building and industry development of the Tianmu Common Prosperity Alliance and create over
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
development.
(3) Education-based poverty alleviation: In conjunction with the Party building co-construction unit, the
Party Branch of Zhejiang Sinopec Lubricating Oil, the Company conducts one-on-one assistance and
relief activities annually to care for He Yun, a student from Yuqian Town in Lin'an District.
(4) Public welfare assistance: Respond positively to the call of the "Ten Thousand Enterprises Helping
Ten Thousand Villages" campaign, and deepen the Lin'an-Baiyu counterpart support. The Company
contributes to rural revitalization through human settlement environment improvement projects. The
Company's continuous investment in social responsibility has earned it recognition, and it has been rated
as one of the "Top 100 Private Enterprises in Social Responsibility in Zhejiang" for two consecutive
years.
The company actively responded to the call of the Hangzhou municipal government and was among the
first units to become a member of the Hangzhou Assistance Group. Since 2000, it has paired assistance
with "Zuokou Township" and "Zitong Town" in Chun'an County, as well as Tianmushan Town in Lin'an
District. For nearly two decades, the Company has provided over RMB 16 million in financial and
material assistance.
During the Reporting Period, the Company continued to strengthen the co-construction mechanism for
alliance building, Party building and industry development via the platform of Tianmu Common
Prosperity Alliance. The Company has expanded the scope of enterprise-village cooperation through
joint alliance building, strengthened the leading role of organizations through joint Party building, and
driven industrial development through talent support. As a representative of the Tianmu Common
Prosperity Alliance in Lin'an District, Hangcha Group actively fulfills its corporate social responsibility.
The company contributes to the common prosperity efforts in Guifangqiao Village in Lin'an District, and
supports the implementation of the rural revitalization strategies.
During the Reporting Period, the Company continued its efforts in social responsibility and sustainable
development. With its exceptional practices in environmental governance and green and low-carbon
transformation, the Company was included in the 2025 Sino-Securities Index Green and Low-Carbon
Pioneer list, among fewer than 30 companies nationwide. This fully demonstrates the leading position of
the Hangcha Group in the field of sustainable development. The company was included in
Sino-Securities' list of the top 100 A-share listed companies in terms of initial ESG reports.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
In fulfilling its social responsibility, the company attaches great importance to the integration of product
safety and social value. In June 2025, the Company was invited to participate in the main event of the
Regulation and had the theme "Safeguarding Special Equipment Safety, Sharing a Better Life". The
Company provided three new energy products, including a lithium-ion high voltage forklift and a
hydrogen fuel cell forklift, for a forklift skills demonstration, and organized a team to conduct the on-site
demonstration. This fully demonstrates Hangcha Group's high sense of mission and responsibility as an
industry leader in the field of special equipment safety. In October, the Company unveiled its X1 Series
logistics robot at CeMAT ASIA 2025, marking the completion of its strategic upgrade from a traditional
industrial vehicle manufacturer to a provider of intelligent logistics solutions for all scenarios. During
the exhibition, the Company held the "Agent, New Ecosystem" Hangcha Group Industrial Technology
Innovation Forum, inviting experts and scholars from Zhejiang University, Manycore Tech, and other
institutions to engage in in-depth exchanges with company representatives on "The Industrialization of
Embodied Intelligence".
Regarding the construction of its ESG governance system, the Company formulated and released the
Sustainable Development (ESG) Management System in April 2025, establishing an ESG management
system under the leadership of the Board of Directors. It clearly defines the responsibilities of the Board
of Directors, the Strategy Committee, the ESG Working Group, and various implementing units,
providing institutional guarantees for the Company's systematic promotion of ESG. The company
continues to expand its global network, accelerating the implementation of its "localization of
production + globalization of market + localization of service" strategy. Construction has commenced on
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
its production base in Thailand, and its European leasing company, its subsidiaries in Vietnam, Malaysia
and Indonesia, and the American intelligent logistics company are operational. With over 20 overseas
subsidiaries, it has formed a global network encompassing marketing, R&D, manufacturing, and leasing.
Over the past few years, Hangcha Group has adhered to the core value of "Integrity as the Foundation,
Efficiency as the Priority; Sustainable Development, and Giving Back to Society", actively improving
the working environment, fulfilling social responsibilities, and refining its governance system. The
company incorporates various elements of social responsibility into its daily management and operations,
striving for harmonious and win-win development between the enterprise and its employees, the
enterprise and society, and the enterprise and the environment. It seeks to organically combine its
development with social progress and embodies the win-win philosophy in fulfilling the social
responsibilities of a listed company.
Going forward, Hangcha Group will further solidify its commitment to social responsibility, further
contribute to Zhejiang's high-quality development, and demonstrate a new look in establishing itself as a
socially responsible brand. The Company will achieve new breakthroughs in improving its ESG
governance capabilities, continue to focus on the direction of its green, intelligent, and international
development strategies, accelerating its progress towards becoming one of the world's top five forklift
manufacturers, and contributing to sustainable social development.
"¡õ Applicable" "¡Ì Not applicable"
                                                              The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                Chapter 5 Important Matters
(1) The commitments made by the company's actual controllers, shareholders, related parties, acquirers, and other relevant parties during the Reporting
Period or continuing into the Reporting Period.
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                                        If not
                                                                                                                                         Is It
                                                                                                                                                     If not timely     timely
                                                                                                           Is There a                   Timely
 Commitment         Commitment                                 Commitment                                                Deadline of               fulfilled, specify fulfilled,
                                     Made by                                                   Made on     Fulfillment                    and
 Background            Type                                      Content                                                 commitment               the reasons for the specify
                                                                                                           Deadline?                    Strictly
                                                                                                                                                   non-fulfillment.   the next
                                                                                                                                       Fulfilled?
                                                                                                                                                                        steps.
                                               engage in or participate in any business activity
                                               that constitutes potential direct or indirect
                                               competition with the business activities of the
                                               listed company and its subsidiaries, and the
                                               Company will ensure that effective legal measures
                                               are taken to prevent other companies controlled by
                                               the Company from engaging in or participating in
                                               any business activities that competes with the
Commitments        Resolution of
                                               business activities of the listed company and its
Related       to   Competing       Hangcha
                                               subsidiaries. 2. If the listed company further Long-term           No     Long-term       Yes             N/A             N/A
Major      Asset   Business        Holding
                                               expands its scope of business, the Company and
Restructuring      Issues
                                               other companies under its control will not
                                               compete with the listed company's business
                                               activities under the expanded scope. If there is
                                               potential competition with the listed company's
                                               business activities under the expanded scope, the
                                               Company and other companies under its control
                                               will exit the competition with the listed company
                                               in the following ways: A) ceasing the business
                                               activities that constitute or may constitute
                                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                               competition with the listed company; B)
                               integrating the competing business activities into
                               the listed company's operations; C) transferring
                               the competing business activities to an unrelated
                               third party. 3. If the Company or other companies
                               under its control have any commercial opportunity
                               to engage in or participate in any activity that may
                               compete with the listed company's operations, the
                               Company or other companies under its control
                               will immediately notify the listed company of
                               such commercial opportunity. If the listed
                               company confirms its willingness to take
                               advantage of the opportunity within the reasonable
                               period specified in the notification, the Company
                               or other companies under its control will make all
                               efforts to provide the commercial opportunity to
                               the listed company. 4. If I breach the above
                               commitments, the Company is willing to bear all
                               liability arising therefrom and fully indemnify the
                               listed company for all direct or indirect losses.
                               participate in any business activity that constitutes
                               potential direct or indirect competition with the
                               business activities of the listed company and its
                               subsidiaries, and I will ensure that effective legal
                               measures are taken to prevent other companies
Resolution of                  controlled by me from engaging in or participating
Competing                      in any business activities that competes with the
                Qiu Jianping                                                         Long-term      No   Long-term   Yes   N/A   N/A
Business                       business activities of the listed company and its
Issues                         subsidiaries. 2. If the listed company further
                               expands its scope of business, I and other
                               companies under my control will not compete
                               with the listed company's business activities under
                               the expanded scope. If there is potential
                               competition with the listed company's business
                               activities under the expanded scope, I and other
                                           The 2025 Annual Report of Hangcha Group Co., Ltd.
                          companies under my control will exit the
                          competition with the listed company in the
                          following ways: A) ceasing the business activities
                          that constitute or may constitute competition with
                          the listed company; B) integrating the competing
                          business activities into the listed company's
                          operations; C) transferring the competing business
                          activities to an unrelated third party. 3. If I or
                          other companies under my control have any
                          commercial opportunity to engage in or participate
                          in any activity that may compete with the listed
                          company's operations, I will immediately notify
                          the listed company of such commercial
                          opportunity. If the listed company confirms its
                          willingness to take advantage of the opportunity
                          within the reasonable period specified in the
                          notification, I will make all efforts to provide the
                          commercial opportunity to the listed company. 4.
                          If I breach the above commitments, I am willing
                          to bear all liability arising therefrom and fully
                          indemnify the listed company for all direct or
                          indirect losses.
                          control will reduce related party transactions with
                          the listed company as much as possible and will
                          not seek treatment more favorable than that given
                          to other third parties in business cooperation with
                          the listed company by taking advantage of its
Resolution of
                Hangcha   position as the controlling shareholder of the listed
Related                                                                         Long-term      No   Long-term   Yes   N/A   N/A
                Holding   company. 2. The Company will not seek
Transactions
                          preference in reaching transactions with the listed
                          company by taking advantage of its position as the
                          controlling shareholder of the listed company. 3.
                          If any related party transaction is indeed necessary
                          and unavoidable, I and the companies under my
                          control will sign agreements with the listed
                                               The 2025 Annual Report of Hangcha Group Co., Ltd.
                               company in accordance with the principles of
                               equality, fairness, and equal consideration,
                               perform legal procedures, fulfill information
                               disclosure obligations and relevant internal
                               decision-making and approval procedures as
                               required by relevant laws, regulations, normative
                               documents and the Company's Articles of
                               Association, ensure that transactions with the
                               listed company will not be conducted under terms
                               that are evidently unfair compared to market
                               prices, and refrain from any acts that harm the
                               legitimate rights and interests of the listed
                               company and other shareholders through such
                               transactions.
                               reduce related party transactions with the listed
                               company as much as possible and will not seek
                               treatment more favorable than that given to other
                               third parties in business cooperation with the
                               listed company by taking advantage of my
                               position as the actual controller of the listed
                               company. 2.I will not use my position as the
                               actual controller of a listed company to seek the
                               right to prioritize transactions with the listed
Resolution of
                               company. 3.In the event that there are necessary
Related         Qiu Jianping                                                      Long-term        No   Long-term   Yes   N/A   N/A
                               and unavoidable related transactions, I and the
Transactions
                               enterprises I control will enter into agreements
                               with the listed company in accordance with the
                               principles of fairness, equity, and equivalent
                               compensation. We will follow the legal
                               procedures and, in compliance with the
                               requirements of relevant laws, regulations, and
                               normative documents, as well as the provisions of
                               the "Articles of Association," we will fulfill our
                               information disclosure obligations and follow the
                               relevant internal decision-making and approval
                                        The 2025 Annual Report of Hangcha Group Co., Ltd.
                       procedures. We will ensure that we do not conduct
                       transactions with the listed company under
                       conditions that are significantly unfair compared
                       to market prices, nor will we engage in any
                       actions that harm the legal rights and interests of
                       the listed company and other shareholders through
                       such transactions.
                       The Company undertakes that after the completion
                       of this transaction, it will ensure that the listed
                       company continues to improve its corporate
                       governance structure and independent operating
                       management system in accordance with the
        Hangcha
Other                  requirements of relevant laws, regulations and its Long-term         No    Long-term     Yes   N/A   N/A
        Holding
                       Articles of Association and the listed company
                       will maintain its independence in terms of
                       business, assets, finance, institutions, staffing and
                       other aspects to effectively protect the interests of
                       all shareholders.
                       I undertake that after the completion of this
                       transaction, I will ensure that the listed company
                       continues to improve its corporate governance
                       structure and independent operating management
                       system in accordance with the requirements of
Other   Qiu Jianping                                                          Long-term     No    Long-term     Yes   N/A   N/A
                       relevant laws, regulations and its Articles of
                       Association and the listed company will maintain
                       its independence in terms of business, assets,
                       finance, institutions, staffing and other aspects to
                       effectively protect the interests of all shareholders.
                       The Company undertakes that the net profit
                       achieved by Zhejiang Guozi Robotics Co., Ltd.
                       (hereinafter referred to as "Guozi Robot" or the
                       "Target Company") during the profit commitment 2025, 2026,                 2025, 2026,
Other   Qiu Jianping                                                                        Yes                 Yes   N/A   N/A
                       period (hereinafter referred to as "actual net and 2027                     and 2027
                       profit") will not be lower than the net profit
                       predicted in the Asset Appraisal Report issued by
                       the appraisal institution for the same period
                                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
                                     (hereinafter referred to as "net profit
                                     commitment"). Otherwise, the party responsible
                                     for the performance            commitment shall
                                     compensate Party C in accordance with the
                                     Capital Increase and Asset Purchase Agreement
                                     and this Agreement. According to the appraisal
                                     report issued by the appraisal institution, the
                                     Target Company's net profit commitments for
                                     RMB 26.01 million, and RMB 48.15 million,
                                     respectively. All parties agree that if, during the
                                     profit commitment period, the cumulative net
                                     profit of the target asset over three years is lower
                                     than the cumulative committed net profit of RMB
                                     performance commitment shall provide cash
                                     compensation to Party C for the loss due to the
                                     underperformance of the target company acquired
                                     by Party C through the issuance of new shares.
                                     The amount of compensation to be paid by the
                                     party     responsible     for    the    performance
                                     commitment shall be calculated according to the
                                     following formula: Total amount to be
                                     compensated = Cumulative committed net profit
                                     during the profit commitment period - Cumulative
                                     realized net profit during the profit commitment
                                     period.
                                     If the prospectus for this public offering of shares
                                     contains false records, misleading statements, or
                                     significant omissions that materially affect the
Commitments
                                     judgment of whether the company meets the legal
Related       to
                 Other   Co., Ltd.   conditions for issuance, the company will Long-term               No   Long-term   Yes   N/A   N/A
Initial   Public
                                     promptly propose a share repurchase plan and
Offering (IPO)
                                     submit it for discussion by the board of directors
                                     and the shareholders' meeting. The company will
                                     legally repurchase the newly issued shares from
                  The 2025 Annual Report of Hangcha Group Co., Ltd.
the initial public offering (excluding shares
publicly offered by original shareholders). For
shares that have been issued but not yet listed, the
repurchase price will be determined based on the
issuance price plus the interest on bank deposits at
the same period; for shares that have been listed,
the repurchase price will be determined based on
the company's stock issuance price plus the
interest on bank deposits for the same period and
the higher of the average closing price of the stock
for the twenty trading days preceding the
recognition of the above matters. The
implementation of the above share repurchase will
be carried out in accordance with the relevant
laws, regulations, and procedures stipulated in the
company's articles of association. If there are other
stipulations in laws, regulations, or the company's
articles of association during the implementation
of the repurchase, those stipulations shall prevail.
If the company¡¯s stock undergoes any distribution
of dividends, bonus shares, or capitalization of
reserves, the issuance price shall be adjusted
accordingly. If the company's prospectus contains
false records, misleading statements, or significant
omissions that cause investors to suffer losses in
securities trading, the company will compensate
investors for their losses in accordance with the
law. After such illegal facts are recognized by the
China Securities Regulatory Commission,
securities exchanges, or judicial authorities, the
company will simplify procedures, actively
negotiate, provide advance payments, and take
practical measures to protect the interests of
investors, especially small and medium-sized
investors, and will compensate investors for their
direct economic losses incurred as a result by
                                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                              choosing to settle with investors, mediating with
                              investors through third parties, and establishing an
                              investor compensation fund, among other means.
                              If the prospectus of the company contains false
                              records, misleading statements, or significant
                              omissions that lead to investor losses in securities
                              trading, I will compensate investors for their
                              losses in accordance with the law. After such
                              illegal facts are recognized by the China Securities
                              Regulatory Commission, securities exchanges, or
                Directors and
                              judicial authorities, the company will simplify
                senior
Other                         procedures, actively negotiate, provide advance Long-term             No   Long-term   Yes   N/A   N/A
                managers of
                              payments, and take practical measures to protect
                the Company
                              the interests of investors, especially small and
                              medium-sized investors, and will compensate
                              investors for their direct economic losses incurred
                              as a result by choosing to settle with investors,
                              mediating with investors through third parties, and
                              establishing an investor compensation fund,
                              among other means.
                              (1) I/this company is currently not engaged in the
                              same business operations as Hangcha Group and
                              will not have direct or indirect industry
                              competition with Hangcha Group. In the future,
                              I/this company will not engage in any form of
                Controlling
                              business activities that are the same as or similar
                Shareholder:
Resolution of                 to the existing business and related products of
                Hangcha
Competing                     Hangcha Group, including not engaging in any
                Holdings                                                           Long-term        No   Long-term   Yes   N/A   N/A
Business                      form of industry competition with Hangcha Group
                Actual
Issues                        through investment, acquisition, or merger with
                Controller:
                              companies or other economic organizations that
                Chou Jianping
                              operate the same or similar businesses and related
                              products as Hangcha Group. (2) The enterprises
                              that I/this company currently or will invest in and
                              control will also not engage in the same business
                              operations as Hangcha Group and will not have
                                                         The 2025 Annual Report of Hangcha Group Co., Ltd.
                                       direct or indirect industry competition with
                                       Hangcha Group. (3) If there are business
                                       opportunities within the scope of Hangcha Group's
                                       operations, I/this company will prioritize
                                       transferring or introducing such opportunities to
                                       Hangcha Group.
                                       (1) I/this company will not overstep my/its
                                       authority to interfere with the company's
                                       management activities or infringe upon the
                                       company's interests; I/this company will not
                                       provide benefits to other units or individuals on an
                                       unpaid basis or under unfair conditions, nor will
                                       I/it engage in other actions that harm the
                                       company's interests. (2) As of the date of this
                                       commitment, if the China Securities Regulatory
                         Controlling
                                       Commission (CSRC) issues new regulatory
                         Shareholder:
                                       provisions regarding compensation measures and
                         Hangcha
                                       commitments that the above commitments do not
                 Other   Holdings                                                           Long-term        No   Long-term   Yes   N/A   N/A
                                       meet, I/this company commits to providing
                         Actual
                                       supplemental commitments in accordance with the
Commitments              Controller:
                                       latest regulations of the CSRC at that time. (3) If
Related     to           Chou Jianping
                                       I/this company violates these commitments or
Refinancing
                                       refuses to fulfill them, I/this company willingly
                                       accepts relevant penalties or management
                                       measures imposed by the CSRC, the Shanghai
                                       Stock Exchange, and other securities regulatory
                                       agencies; if violating these commitments causes
                                       losses to the company or its shareholders, I/this
                                       company is willing to bear legal liability for
                                       compensation.
                                       (1) I will not provide benefits to other units or
                                       individuals on an unpaid basis or under unfair
                         Directors and
                                       conditions, nor will I engage in other actions that
                 Other   senior                                                             Long-term        No   Long-term   Yes   N/A   N/A
                                       harm the company's interests. (2) I will strictly
                         executives
                                       adhere to the company's budget management, and
                                       any expenses incurred in my capacity will only be
                  The 2025 Annual Report of Hangcha Group Co., Ltd.
within the necessary scope of fulfilling my
responsibilities, subject to strict supervision and
management by the company, to avoid waste or
premature spending. (3) I will not use company
assets for investment or consumption activities
unrelated to my responsibilities. (4) I will make
my utmost effort to promote the implementation
of measures for timely returns. I will be
responsible for linking the execution of the
compensation system established by the board of
directors or the compensation committee with the
company's measures for filling returns. (5) I will
be responsible for linking the exercise conditions
(if any) of the company's proposed equity
incentive plans to be published in the future with
the execution of the company's measures for
filling returns. I will support relevant proposals
that tie to the implementation of the company's
measures for filling returns and will be willing to
vote in favor (if I have voting rights). (6) As of the
date of this commitment, if regulatory agencies
introduce additional requirements regarding
measures for filling returns and their
commitments, and if the above commitments do
not meet the relevant requirements, I promise to
provide supplemental commitments according to
the relevant regulations at that time. (7) If I violate
or refuse to fulfill the above commitments, I am
willing to bear corresponding responsibilities
according to the relevant regulations and rules of
the China Securities Regulatory Commission and
the Shanghai Stock Exchange.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(2) If the Company has profit forecasts for its assets or projects, and the Reporting Period is still
within the profit forecast period, the Company shall provide an explanation of whether the assets
or projects have met the original profit forecasts and the reasons for it
"¡õ Achieved" "¡õ Not Achieved" "¡Ì Not applicable"
(3) Performance Commitments
"¡Ì Applicable" "¡õ Not applicable"
                                                                  Unit: Ten thousand yuan      Currency: CNY
                                                                                          Actual
 Commitment               Commitment                                       Commitment               Completion
                Made by                      Commitment Indicator                        Amount
 Background                 Period                                           Amount                  Rate (%)
                                                                                         Achieved
                                         report issued by the appraisal
                                         institution, the net profit
                                         commitments of Guozi Robot
                                         for 2025, 2026, and 2027 are
                                         RMB 12.92 million, RMB
                                         million,     respectively.   2.
                                         During the profit commitment
                                         period, if the cumulative net
Commitments
                                         profit of the target asset over
Related to the Qiu
Acquisition of Jianping
                                         cumulative committed net
Guozi Robot
                                         profit of RMB 87.08 million,
                                         the party responsible for the
                                         performance         commitment
                                         shall        provide       cash
                                         compensation to Party C for
                                         the     loss    due    to   the
                                         underperformance       of   the
                                         target company acquired by
                                         Party C through the issuance
                                         of new shares.
Changes in performance commitments
"¡õ Applicable" "¡Ì Not applicable"
Other notes
"¡õ Applicable" "¡Ì Not applicable"
During the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Accounting Firm
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Accounting Estimates, or Corrections of Significant Accounting Errors
(1) explanation of reasons and impact of changes in accounting policies and estimates
"¡Ì Applicable" "¡õ Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
On December 5, 2025, the Ministry of Finance of the People's Republic of China (hereinafter referred to
as the "Ministry of Finance") issued the Interpretation No. 19 of the Accounting Standards for Business
Enterprises (No. 32 [2025] of the Ministry of Finance), which stipulates the following: Accounting
Treatment of Compensating Assets in Business Combinations Involving Enterprises Not Under
Common Control, Accounting Treatment of Related Capital Reserves in Disposal of Subsidiaries
Acquired Through Business Combinations Involving Entities Under Common Control, Derecognition of
Financial Liabilities Settled Using Electronic Payment Systems, Assessment and Disclosure of Cash
Flow Characteristics of Financial Asset Contracts, and Disclosure of Equity Instruments Measured at
Fair Value Through Other Comprehensive Income.
The aforementioned accounting treatment regulations took effect on January 1, 2026. The Company's
implementation of such standards has no impact on the financial statements for the current Reporting
Period.
"¡õ Applicable" "¡Ì Not applicable"
(1) The Company's analysis and explanation of the reasons and impact of corrections of
significant accounting errors
"¡õ Applicable" "¡Ì Not applicable"
(2) Communication status with the former accounting firm
"¡õ Applicable" "¡Ì Not applicable"
(3) Approval procedures and other explanations
"¡õ Applicable" "¡Ì Not applicable"
                                                                  Unit: Ten thousand yuan       Currency: CNY
                                                                               Current Appointment
                                                                       Pan-China Certified Public Accountants LLP
Accounting firm in China
                                                                                     (Special General Partnership)
Remuneration for Domestic Accounting Firm:                                                                 180.00
Audit Tenure for Domestic Accounting Firm:                                                                     25
Name of the CPAs from accounting firm in China                                        Huang Yuanxi, Tang Zheren
Cumulative Audit Service Tenure of Certified Public Accountants
from Domestic Accounting Firm:
                                                          Item                                Remuneration
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Internal Control Audit Accounting Pan-China Certified Public Accountants LLP
Firm                              (Special General Partnership)
Explanation of Appointment and Dismissal of Accounting Firms
"¡Ì Applicable" "¡õ Not applicable"
On April 17, 2025, the Company held its 20th meeting of the 7th Board of Directors, which reviewed
and approved the Proposal on Renewal of the Company¡¯s Audit Firm for 2025, resolving to reappoint
Pan-China Certified Public Accountants LLP (Special General Partnership) as the Company's audit firm
for 2025.
Explanation of the Situation Regarding the Reappointment of Accounting Firms During the Audit Period
"¡õ Applicable" "¡Ì Not applicable"
Explanation of Audit Fees Decreasing by More Than 20% Compared to the Previous Year (Including
"¡õ Applicable" "¡Ì Not applicable"
(1) Reasons leading to the warning of delisting risk
"¡õ Applicable" "¡Ì Not applicable"
(2) Proposed measures to address the situation
"¡õ Applicable" "¡Ì Not applicable"
(3) Situations and reasons for facing termination of listing
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ The Company has major litigation or arbitration matters this year."
"¡Ì The Company does not have any major litigation or arbitration matters this year."
On September 25, 2025, the Company disclosed an announcement regarding matters in dispute
involving the original shareholders of the target company in the acquisition of assets from a related party
through capital increase by a controlling subsidiary (Announcement No.: 2025-055) on the website of
Shanghai Stock Exchange (http://www.sse.com.cn). The Company and its controlling subsidiary,
Hangcha Guozi Intelligent, are not parties involved in the aforementioned case, and it will not have an
adverse impact on the daily production and operation of the Company or its subsidiaries.
directors, senior managers, controlling shareholders, and actual controllers, and rectification
measures.
"¡õ Applicable" "¡Ì Not applicable"
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Controllers During the Reporting Period
"¡õ Applicable" "¡Ì Not applicable"
(1) Related party transactions on daily operations
"¡Ì Applicable" "¡õ Not applicable"
                   Item Overview                                               Search Index
Estimated matters regarding related-party transactions
                                                       http://www.sse.com.cn (Announcement No.: 2025-011)
of the Company in 2025
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(2) Related party transactions occurring from asset or equity acquisitions or sales
"¡Ì Applicable" "¡õ Not applicable"
                         Item Overview                                          Search Index
Acquisition of a 99.23% equity interest in Zhejiang Guozi
Robotics Co., Ltd. by the Company's controlling subsidiary
                                                           http://www.sse.com.cn (Announcement No.: 2025-035)
through capital increase and share expansion, as well as
related-party transactions
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Period Should Be Disclosed
"¡õ Applicable" "¡Ì Not applicable"
(3) major related party transactions of joint external investment
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
(4) Related party debt and creditor transactions
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(5) Financial Transactions Between the Company and Financial Companies with Related
Relationships, and Financial Companies Controlled by the Company with Related Parties
"¡õ Applicable" "¡Ì Not applicable"
(6) Others
"¡õ Applicable" "¡Ì Not applicable"
(1) Entrustment, contracting, and leasing matters
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                                                                          The 2025 Annual Report of Hangcha Group Co., Ltd.
(2) Guarantee Situation
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                                        Unit: Yuan         Currency: CNY
                                                                 Company's External Guarantee Situation (Excluding Guarantees for Subsidiaries)
          Relationship                                                 Date of
                                                                                                                                                                                        Guarantee
          Between the                                                Guarantee                                                                             Amount
                                                                                 Guarantee                                      Performance      Is the                                    for       Related
           Guarantor                                                Occurrence                Guarantee Type of Collateral                                   of     Counter-Guarantee
Guarantor                    Guaranteed party           Amount                     Starting                                      completed Guarantee                                     related Relationship
            and the                                                   (Date of                 Maturity guarantee (if any)                                Overdue        Situation
                                                                                     date                                           or not    Overdue?                                  parties or
             Listed                                                  Agreement                                                                            Guarantee
                                                                                                                                                                                           not
           Company                                                    Signing)
                                                                                                         Guarantee
                                                                                                         with joint
              Company          Financial lease
 Co., Ltd.                                           279365322.45         /            /          /           and        /            No          No             0          No             No
             headquarters         guarantee
                                                                                                            several
                                                                                                          liabilities
Total Guarantee Amount During the Reporting Period (Excluding
Guarantees for Subsidiaries)
Total Guarantee Balance at the End of the Reporting Period (A)
(Excluding Guarantees for Subsidiaries)
                                                                            Company and Its Subsidiaries' Guarantees for Subsidiaries
Total Guarantee Amount for Subsidiaries During the Reporting
Period
Total Guarantee Balance for Subsidiaries at the End of the
Reporting Period (B)
                                                                Total Guarantee Situation of the Company (Including Guarantees for Subsidiaries)
Total Guarantee Amount (A + B)                                                                                                                                                                   799365322.45
Total Guarantee Amount as a Percentage of Company's Net Assets
(%)
Including:
Amount of Guarantees Provided for Shareholders, Actual
Controllers, and Their Related Parties (C)
Debt Guarantee Amounts Provided Directly or Indirectly for
Guaranteed Parties with Liabilities Exceeding 70% (D)
Amount of Guarantees Exceeding 50% of Net Assets (E)
Sum of the Above Three Guarantee Amounts (C + D + E)                                                                                                                                             500000000.00
Explanation of Joint and Several Liability for Guarantees That Have
Not Yet Expired
Guarantee Situation Explanation                                     At the 20th meeting of the 7th Board of Directors on April 17, 2025, and at the 2024 Annual General Meeting of Shareholders on May 8, 2025,
                                                                            The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                    the Company approved the Proposal on the Company's Estimated External Guarantees for 2025. It was agreed that from the date of the approval
                                                                    by the 2024 Annual General Meeting of Shareholders until the date of the 2025 Annual General Meeting of Shareholders, the Chairman of the
                                                                    Company is authorized to sign relevant Guarantee Contracts and other legal documents with banks and other financial institutions within the
                                                                    authorized scope of guarantee.
(3) Situation of Entrusting Others for Cash Asset Management
(1). Overall situation of entrustment wealth management
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                           Unit: Ten thousand yuan Currency: CNY
                     Type                                           Risk profile                                   Balance not yet due                            Overdue Amount Not Collected
Securities Firm Wealth Management Products      Controllable risks featuring good liquidity                                                10000.00
Other Situations
"¡õ Applicable" "¡Ì Not applicable"
(2). Single entrusted wealth management
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                        Unit: Ten thousand yuan            Currency: CNY
                                                          Amount of funds
                      Types of                                                 Start date of      End date of        Allocation of                       Actual gains or
                                                           for entrusted                                                                 Existence of                        Outstanding      Overdue Amount
     Trustee      Entrusted Wealth      Risk profile                         entrusted wealth   entrusted wealth         funds                               losses
                                                              wealth                                                                     restrictions                         amount           Not Collected
                    Management                                                 management         management
                                                           management
                  Securities Firm
China     CITIC                      Controllable risks
                  Wealth
Wealth Securities                    featuring good               4000.00      07/10/2025                            Fixed income            No                                     4000.00
                  Management
Co., Ltd.                            liquidity
                  Products
                  Securities Firm
China     CITIC                      Controllable risks
                  Wealth
Wealth Securities                    featuring good               6000.00      07/11/2025         04/06/2026         Fixed income            No                                     6000.00
                  Management
Co., Ltd.                            liquidity
                  Products
Other Situations
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Impairment provision for entrusted wealth management
"¡õ Applicable" "¡Ì Not applicable"
(1). Overall situation of entrusted loans
"¡õ Applicable" "¡Ì Not applicable"
Other situations
"¡õ Applicable" "¡Ì Not applicable"
(2). Single entrusted loan situation
"¡õ Applicable" "¡Ì Not applicable"
Other situations
"¡õ Applicable" "¡Ì Not applicable"
(3). Impairment provision for entrusted loans
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(4) other significant contracts
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Judgments and Investment Decisions
"¡õ Applicable" "¡Ì Not applicable"
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
              Chapter 6 Share Changes and Shareholder Information
(1) Changes in share
During the Reporting Period, the total number of shares and share capital structure of the company
remained unchanged.
"¡õ Applicable" "¡Ì Not applicable"
Per Share for the Last Year and the Most Recent Period (if applicable)
"¡õ Applicable" "¡Ì Not applicable"
regulators, to disclose
"¡õ Applicable" "¡Ì Not applicable"
(2) changes in restricted shares
"¡õ Applicable" "¡Ì Not applicable"
(1) Securities issuance situation up to the reporting period
"¡õ Applicable" "¡Ì Not applicable"
Explanation of securities issuance situation up to the reporting period (for bonds with different interest
rates during the duration, please explain separately):
"¡õ Applicable" "¡Ì Not applicable"
(2) Changes in total shares and shareholder structure of the company, and changes in asset and
liability structure
"¡õ Applicable" "¡Ì Not applicable"
(3) Existing internal employee shares situation
"¡õ Applicable" "¡Ì Not applicable"
(1) Total Number of Shareholders
Total number of common stock shareholders as of the end of the Reporting Period
(households):
Total number of common stock shareholders as of the end of the previous month prior to
the annual report disclosure:
Total number of preferred stock shareholders with restored voting rights as of the end of
the Reporting Period (households):
Total number of preferred stock shareholders with restored voting rights as of the end of
the previous month prior to the annual report disclosure:
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(2)        Shareholding Information of the Top Ten Shareholders and Top Ten Circulating
Shareholders (or Shareholders with No Sale Restrictions) as of the End of the Reporting Period
                                                                                                          Unit: Share
           Shareholding Information of the Top Ten Shareholders (excluding shares lent through margin trading)
                                  Change                                 Number Pledged, marked or
                                  During Shareholding                       of            frozen
     Name of shareholder                                   Percentage                                       Nature of
                                    the       at Period                 Restricted
          (Full Name)                                         (%)                  Share                  shareholder
                                 Reporting       End                      Shares             Quantity
                                                                                   status
                                  Period                                   Held
                                                                                                            Domestic
Zhejiang Hangcha Holding
                                 -2780100 538662844             41.13            0 None               0 non-state-owned
Co., Ltd
                                                                                                          legal person
Hangzhou              Industrial                                                                          State-owned
Investment Group Co., Ltd.                                                                                   Entity
Hong       Kong      Securities
Clearing Company Limited
                                                                                                            Domestic
Zhao Limin                                     28616014          2.18            0 None               0
                                                                                                         natural person
National Social Security Fund
                                 -1147910      10429485          0.80            0 None               0      Other
                                                                                                            Domestic
Dai Jingjing                        47000        9944024         0.76            0 None               0
                                                                                                         natural person
Agricultural Bank of China
Limited¡ªCSI 500 Exchange
Traded      Open-End     Index
Securities Investment Fund.
                                                                                                            Domestic
Xu Lida                           -218900        7432758         0.57            0 None               0
                                                                                                         natural person
Schroder            Investment
Management (Hong Kong)
Limited - Schroder Global 7386500                7386500         0.56            0 None               0      Other
Fund Series Chinese A-shares
(Exchange)
China      Merchants      Bank
Corporation      -    Foresight
                                  -961000        6315276         0.48            0 None               0      Other
Growth       Value      Hybrid
Securities Investment Fund
  Shareholding Situation of the Top Ten Shareholders with No Sell Restrictions (Excluding Shares Lent through Transfer
                                                      for Financing)
                                             Number of Circulating Shares with           Type and amount of shares
            Name of shareholder
                                                     No Sell Restrictions                  Type             Quantity
                                                                                     RMB Ordinary
Zhejiang Hangcha Holding Co., Ltd                                      538662844                             538662844
                                                                                          Shares
Hangzhou Industrial Investment Group                                                 RMB Ordinary
Co., Ltd.                                                                                 Shares
Hong Kong Securities Clearing Company                                                RMB Ordinary
Limited                                                                                   Shares
                                                                                     RMB Ordinary
Zhao Limin                                                              28616014                               28616014
                                                                                          Shares
National Social Security Fund 406                                                    RMB Ordinary
Portfolio                                                                                 Shares
                                                                                     RMB Ordinary
Dai Jingjing                                                              9944024                               9944024
                                                                                          Shares
Agricultural Bank of China Limited¡ªCSI                                               RMB Ordinary
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Securities Investment Fund.
                                                                                  RMB Ordinary
Xu Lida                                                               7432758                                7432758
                                                                                    Shares
Schroder Investment Management (Hong
                                                                                  RMB Ordinary
Kong) Limited - Schroder Global Fund                                  7386500                                7386500
                                                                                    Shares
Series Chinese A-shares (Exchange)
China Merchants Bank Corporation -
                                                                                  RMB Ordinary
Foresight Growth Value Hybrid Securities                              6315276                                6315276
                                                                                    Shares
Investment Fund
Explanation of the Repurchase Special
Account Situation Among the Top Ten        N/A
Shareholders
Explanation of the Delegation of Voting
Rights, Entrusted Voting Rights, or
                                           N/A
Waiver of Voting Rights by the Above
Shareholders
Description of the relationship or
                                           The company is unaware of any relationships or concerted actions among the
concerted action among the above
                                           above shareholders.
shareholders
Explanation of Preferred Shareholders
with Restored Voting Rights and Their      N/A
Shareholding Amounts
Status of Shareholders Holding More than 5% of Shares, the Top Ten Shareholders, and the Top Ten
Shareholders with Unrestricted Circulating Shares Participating in Transfer for Financing Activities
"¡õ Applicable" "¡Ì Not applicable"
Changes in the Top Ten Shareholders and the Top Ten Shareholders with Unrestricted Circulating
Shares Due to Lending/Returning of Shares in Transfer for Financing
"¡õ Applicable" "¡Ì Not applicable"
Number of Shares Held and Lock-up Conditions of the Top Ten Shareholders with Restricted Shares
"¡õ Applicable" "¡Ì Not applicable"
(3)        strategic investors or general corporations becoming top 10 shareholders due to the
distribution of new shares
"¡õ Applicable" "¡Ì Not applicable"
(1) Controlling shareholder
"¡Ì Applicable" "¡õ Not applicable"
Item                                         Zhejiang Hangcha Holding Co., Ltd
Person in Charge or Legal Representative     Qiu Jianping
Date of Incorporation                        01/23/2003
                                             Industrial investment, development, property management, real estate
Main Business Operations
                                             leasing
Shareholdings of other domestic and
overseas listed companies that controlled None
and owned during the Reporting Period
Additional information                    None
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Controlling Shareholder
"¡Ì Applicable" "¡õ Not applicable"
(2) Situation of actual controllers
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Name                          Qiu Jianping
Nationality                   China
Whether        to    obtain
residency permits in other    No
countries or regions
Main     occupation    and
                              Chairman and Actual Controller of Zhejiang Hangcha Holdings Co., Ltd.; Company Director
position
                          Stock Abbreviation: GreatStar Technology, this company was listed on the Shenzhen Stock
                          Exchange on July 13, 2010. Main businesses include hand tools, handheld electric tools,
                          smart tools, etc.
Overseas listed companies
                          This company was listed on the Shenzhen Stock Exchange on July 22, 2021, mainly engaged
controlled over the past
                          in diesel engines and parts, engineering machinery, agricultural machinery, casting engine
decade
                          components, and mechanical parts, etc.
                          company was listed on the Shanghai Stock Exchange on June 5, 2025, and is mainly
                          engaged in the production and sales of tires, car tires and rubber products; wholesale and
                          retail of auto parts, auto oils, and auto decorations; and import and export of goods and
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
                       technology (excluding items prohibited by laws and administrative regulations; items
                       restricted by laws and administrative regulations may be included only after obtaining a
                       license).
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
and the actual controller
"¡Ì Applicable" "¡õ Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(3) Other information on controlling shareholders and actual controllers
"¡õ Applicable" "¡Ì Not applicable"
Shareholder and Their Concerted Actors Reached 80% or More of the Shares Held by Them?
"¡õ Applicable" "¡Ì Not applicable"
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
                                                                      Unit: Ten thousand yuan      Currency:CNY
                                                                                                    Main Business
                       Person in Charge
Name of Legal Entity                         Date of           Organization Code     Registered      Activities or
                           or Legal
   Shareholder                            Incorporation                               capital       Management
                        Representative
                                                                                                      Activities
Hangzhou Industrial
                                                                                                  Industrial
Investment Group Co., Niu Jian            11/13/2001       91330100730327291G           600000
                                                                                                  investment, etc.
Ltd.
Notes                 None
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
                        Chapter 7 Bond-Related Information
Instruments
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
                               Chapter 8 Financial reporting
"¡Ì Applicable" "¡õ Not applicable"
To all shareholders of Hangcha Group Co., Ltd.,
I. Opinion
We have audited the accompanying financial statements of Hangcha Group Co., Ltd. (hereinafter
referred to as ¡°Hangcha Group Company¡±), which comprise the consolidated and parent company's
balance sheets as at December 31, 2025, the consolidated and parent company¡¯s income statements, the
consolidated and parent company¡¯s statements of cash flows, the consolidated and parent company¡¯s
statements of changes in owners¡¯ equity for the year then ended, and the related notes to the financial
statements.
In our opinion, the accompanying financial statements have been prepared, in all material respects, in
accordance with the Accounting Standards for Business Enterprises, and give a fair view of the
consolidated and parent company¡¯s financial position of Hangcha Group Company as at December 31,
ended.
II. Basis for Opinion
We conducted our audit in accordance with the provisions of China CPA Standard on Auditing (CSA).
Our responsibilities under those standards are further described in the CPA's Responsibilities for the
Audit of the Financial Statements section of the Audit Report. We are independent of Hangcha Group
and have fulfilled our other ethical responsibilities in accordance with the Independence Standards for
Chinese Certified Public Accountants No. 1¡ªIndependence Requirements for Financial Statement
Audits and Review Engagements Effective and the China Code of Ethics for Certified Public
Accountants. In our audit, we adhered to the independence requirements for audits of public interest
entities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
III. Critical Audit Matters
Critical audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the Financial Statements of the current period. These matters shall be addressed in the
context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
(i) Revenue
For details on relevant information disclosures, please refer to Notes 3.26 and 5.2.1 to the financial
statements.
The operating revenue of Hangcha Group Company primarily stems from the sales of forklifts and parts.
In 2025, its operating revenue amounted to RMB 1,773,865.20.
Hangcha Group Company mainly engages in the sales of forklifts and parts, which represent
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
performance obligations satisfied at a point in time. Domestic sales revenue is recognized when
Hangcha Group Company delivers the products to the buyer as agreed in the contract, receives the
payment or obtains the right to payment, and it is probable that the associated economic benefits will
flow into Hangcha Group Company. Export sales revenue is recognized when Hangcha Group Company
completes customs clearance as agreed in the contract, receives a bill of lading, receive the payment for
goods or obtains the right to payment, and it is probable that the associated economic benefits will flow
into Hangcha Group Company.
As operating revenue is one of the key performance indicators of Hangcha Group Company, there exists
an inherent risk that management of Hangcha Group Company (hereinafter referred to as ¡°Management¡±)
may meet specific targets or expectations through inappropriate revenue recognition. Therefore, we
included revenue recognition as a critical audit matter.
(1) Obtained an understanding of the key internal controls related to revenue recognition, evaluated the
design of these controls, identified whether they are implemented, and tested whether the relevant
internal controls function effectively;
(2) Perform analytical procedures on operating revenue by year, month, product, and customer to
identify significant or unusual fluctuations and investigate their causes;
(3) Analyze business models and sales contracts to identify contractual terms and conditions related to
the transfer of control over goods and related performance obligations, and evaluate whether revenue
recognition policies comply with the Accounting Standards for Business Enterprises;
(4) For domestic sales revenue: Select items to verify supporting documents including sales contracts,
delivery notes, shipping documents, sales invoices, and acceptance certificates. For export sales revenue:
Select items to verify supporting documents such as sales contracts, export customs declarations, bills of
lading, and sales invoices, and conduct interviews with certain key customers;
(5) Perform confirmation procedures on accounts receivable and select key customers to confirm sales
revenue for the current period;
(6) Performed a cut-off test on the operating revenues recognized before and after the balance sheet date
to evaluate whether the operating revenues have been recognized within the appropriate period; and
(7) Assessed whether the information related to the operating revenues has been appropriately presented
in the Financial Statements.
(ii) Impairment of accounts receivable and contract assets
For details on relevant information disclosure, please refer to Notes 3.12, 5.1.5 and 5.1.10 to the
financial statements.
As of December 31, 2025, Hangcha Group Company reported a book balance of accounts receivable of
RMB 315,583.05, with the provision for bad debts of RMB 23,591.05, resulting in the carrying amount
of RMB 291,992.00, and a book balance of contract assets of RMB 21,556.06, with the provision for
impairment of RMB 2,522.23, resulting in the carrying amount of RMB 19,033.83.
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Management measures loss provisions for amounts receivable and contract assets at an amount equal to
lifetime ECL, either individually or collectively, based on their credit risk characteristics. Due to the
significant amounts of accounts receivable and contract assets and the significant management judgment
involved in their impairment testing, we identified the impairment of accounts receivable and contract
assets as a key audit matter.
We performed the following audit procedures for impairment of accounts receivable and contract assets,
among others:
Obtain an understanding of internal controls relevant to the impairment of accounts receivable and
contract assets, evaluate the design of these controls, determine whether they have been implemented,
and test the operational effectiveness of relevant internal controls;
Review the results of Management¡¯s estimates of provisions for bad debts and impairment in previous
years or subsequent re-estimates thereof made by Management;
Review the relevant considerations and objective evidence of Management¡¯s credit risk evaluation of
accounts receivable and contract assets, and evaluate whether Management has properly identified the
credit risk characteristics of all accounts receivable and contract assets;
For accounts receivable and contract assets measured for expected credit losses on an individual basis,
review Management¡¯s forecast of expected cash flows, evaluate the appropriateness of significant
assumptions and the appropriateness, relevance and reliability of data used in the forecast, and verify
them against the external evidence obtained;
(5) for accounts receivable and contract assets measured for expected credit losses on a portfolio basis,
evaluate the reasonableness of Management¡¯s classification of portfolios by credit risk characteristics;
evaluate the reasonableness of the expected credit loss rates for accounts receivable and contract assets
determined by Management, including the appropriateness of significant assumptions used and the
appropriateness, relevance and reliability of data; and test the accuracy of Management¡¯s calculation of
provisions for bad debts and impairment;
(6) Evaluate the reasonableness of Management¡¯s provision for bad debts and impairment by combining
the confirmation procedures on accounts receivable and contract assets with the subsequent payments
after the period;
(7) Verify whether the information related to the impairment of accounts receivable and contract assets
has been appropriately presented in the financial statements.
IV. Other information
The Management of the Company are responsible for the other information. The other information
comprises all the information included in the annual report other than the Financial Statements and our
Audit Report thereon.
Our audit opinion on the Financial Statements does not cover the other information and we do not
express any form of appraisal conclusion thereon.
We are responsible for reading the other information based on our audit of the Financial Statements and,
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
in doing so, consider whether the other information is materially inconsistent with the Financial
Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If we conclude that there is a material misstatement of the other information based on the work we have
performed, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and those charged with governance for the Financial
Statements
The Management of the Company is responsible for the preparation of the Financial Statements that give
a true and fair view in accordance with the Accounting Standards for Business Enterprises, and for the
design, implementation and maintenance of such internal controls, so as to ensure that the Financial
Statements are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsible for assessing Hangcha Group
Company¡¯s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate
Hangcha Group Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance of Hangcha Group Company (hereinafter referred to as ¡°Those Charged
with Governance¡±) are responsible for overseeing the preparation of those financial statements of
Hangcha Group Company.
VI. Responsibilities of the CPAs for the audit of the Financial Statements
We aim to obtain reasonable assurance about whether the Financial Statements are free from material
misstatement, whether due to fraud or error, and to issue an audit report that includes our audit opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the CSA will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these Financial
Statements.
As part of an audit in accordance with the CSA, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
(I) Identify and assess the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit processes responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. As fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control, the risk of failing
to detect a material misstatement resulting from fraud is higher than the risk of failing to detect a
material misstatement resulting from error.
(II) Obtain an understanding of internal controls relevant to the audit in order to design appropriate audit
processes.
(III) Evaluate the appropriateness of accounting policies used by the Management and the rationality of
accounting estimates and related disclosures made by the Management.
(IV) Conclude on the appropriateness of the Management's use of the assumption of ongoing concern,
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on Hangcha Group Company¡¯s ability to continue as a going
concern. In accordance with the CSA, we are required to draw attention in our audit report to the related
disclosures in the Financial Statements if we conclude that a material uncertainty exists, or to issue an
audit report containing the modified opinion if such disclosures are inadequate. Our conclusions are
based on the audit evidence obtained up to the date of our audit report. However, future events or
conditions may cause Hangcha Group Company to cease to continue as a going concern.
(V) Evaluate the overall presentation, structure and content of the Financial Statements, and whether the
Financial Statements give a true and fair view of the underlying transactions and events.
(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within Hangcha Group Company to express an opinion on the financial statements.
We are responsible for the direction, supervision and performance of the group audit, and we remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding matters such as the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them on all relationships and
other matters that may reasonably be considered to bear on our independence, and relevant preventive
measures which are applicable.
Based on the matters communicated with those charged with governance, we determine the matters that
are of most significance in the audit of the Financial Statements of the current period and are therefore
the critical audit matters. We describe such matters in our audit report unless law or regulation precludes
public disclosure of the matters or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Pan-China Certified Public Accountants LLP             CPA: Huang Yuanxi
(Special General Partnership)
                                                              (Project Partner)
Hangzhou, China                                        CPA:     Tang Zheren
                                                       April 21, 2026
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
                                         Consolidated Balance Sheet
Prepared by: Hangcha Group Co., Ltd.
                                                                                       Unit: Yuan Currency: CNY
                  Item                   Notes:                  12/31/2025                    12/31/2024
Current assets:
Cash and bank balances                     7.1                        4377218636.29                 4182694613.32
Settlement funds
Loans to other banks
Held-for-trading financial assets          7.2                          100347215.23                  85755439.73
Derivative financial assets                                                                            1635304.53
Notes receivable                           7.4                          16088216.14                   17251330.80
Accounts receivable                        7.5                        2919920070.26                 2589834496.78
Receivables financing                      7.7                         472523678.61                  294961893.92
Advances paid                              7.8                         429678941.88                  363036264.12
Premiums receivable
Reinsurance accounts receivable
Reinsurance reserve receivable
Other receivables                          7.9                          243522905.71                 278088446.68
Including: Interest receivable
Dividend receivable
Financial assets under reverse repo
Inventories                               7.10                        3149016928.70                 2510734301.65
   including: data source
Contract assets                            7.6                          190338290.04                 150249010.24
Assets held for sale
Non-current assets due within one
year
Other current assets                      7.13                         164767630.48                  151565268.90
Total current assets                                                 12234519339.70                10809533914.59
Non-current assets:
Loans and advances
Debt investments
Other debt investments
Long-term receivables                     7.16                         109821993.28                   82893465.17
Long-term equity investments              7.17                        3036220631.75                 2364393754.75
Other equity instrument investments
Other non-current financial assets        7.18                          28104279.77                   26325621.62
Investment property                       7.20                          61930796.97                   67035373.96
Fixed assets                              7.21                        3244122167.29                 2202710412.14
Construction in progress                  7.22                         115954043.69                  584836969.86
Productive biological assets
Oil & gas assets
Right-of-use assets                       7.25                          257163174.61                 174626534.71
Intangible assets                         7.26                          433268003.62                 404975671.44
including: data source
Development expenditures
including: data source
Goodwill                                  7.27                           10652989.76                  10652989.76
Long-term prepayments                     7.28                           21236643.16                  26390164.95
Deferred tax assets                       7.29                          156350587.52                 116828396.16
Other non-current assets                  7.30
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Total non-current assets                                              7474825311.42    6061669354.52
Total assets                                                         19709344651.12   16871203269.11
Current liabilities:
Short-term borrowings                      7.32                        809681176.76     503782164.19
Central bank loans
Loans from other banks
Held-for-trading financial liabilities
Derivative financial liabilities           7.34                                            366815.63
Notes payable                              7.35                       1693016977.19     902166339.40
Accounts payable                           7.36                       2885704219.99    2661188555.82
Advances received                          7.37                          2642224.15        913546.17
Contract liabilities                       7.38                        504427817.49     455721742.21
Financial liabilities under repo
Absorbing deposit and interbank
deposit
Deposit for agency security
transaction
Deposit for agency security
underwriting
Employee benefits payable                  7.39                        157351690.54     145346351.92
Taxes and rates payable                    7.40                        178395700.20     180477087.33
Other payables                             7.41                         89848213.54     226421414.75
Including: Interest payable
Dividend payable                                                           40000.00         40000.00
Handling fee and commission payable
Reinsurance accounts payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities                  7.44                         90269550.67      72085065.58
Total current liabilities                                             6457181004.79    5778267837.44
Non-current liabilities:
Insurance policy reserve
Long-term borrowings                       7.45                        498000000.00      54717119.68
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities                          7.47                        216401126.07     143909897.42
Long-term payables                         7.48                         50063656.75       4578954.00
Long-term employee benefits payable
Provisions                                 7.50                         10458112.92      10559000.00
Deferred income                            7.51                        107370404.53      95177574.52
Deferred tax liabilities                   7.29                           790688.48        647003.11
Other non-current liabilities
Total non-current liabilities                                          883083988.75     309589548.73
Total liabilities                                                     7340264993.54    6087857386.17
Owners' (shareholders¡¯) equity:
Paid-in Capital (or Share Capital)         7.53                       1309812049.00    1309812049.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve                            7.55                       1684194323.19    1496911479.72
Less: Treasury shares
Other comprehensive income                 7.57                         27349658.38      -4154529.98
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Special reserve                             7.58                            712145.51                   2121472.10
Surplus reserve                             7.59                         654906024.50                 654906024.50
General risk reserve
Undistributed profit                        7.60                       7931367233.79                 6656919972.19
Total owners' equity (or shareholders'
equity) attributable to the parent                                    11608341434.37                10116516467.53
company
Non-controlling shareholders' equity                                     760738223.21                 666829415.41
Total Owner's Equity (or
Shareholder's Equity)
Total Liabilities and Owner's Equity
(or Shareholder's Equity)
Head of the Company: Zhao Limin          Chief Accountant: Zhang Shutong        Head of Accounting Department: Yuan
                                                                                Guanghui
                                         Parent Company¡¯s Balance Sheet
Prepared by: Hangcha Group Co., Ltd.
                                                                                   Unit: Yuan     Currency: CNY
                 Item                      Notes:                 12/31/2025                    12/31/2024
Current assets:
Cash and bank balances                                                 3179361400.83                 3009319307.95
Held-for-trading financial assets                                       100347215.23                   80000333.33
Derivative financial assets
Notes receivable                                                         12898520.65                   10289951.17
Accounts receivable                         19.1                       3834178950.08                 3036808048.50
Receivables financing                                                   304231995.64                  241700512.87
Advances paid                                                            51387100.54                   42474339.91
Other receivables                           19.2                         28069458.44                   36385301.01
Including: Interest receivable
Dividend receivable
Inventories                                                              953942909.96                 886530210.32
including: data source
Contract assets                                                            27289061.13                 14916040.74
Assets held for sale
Non-current assets due within one
year
Other current assets                                                     25231062.52
Total current assets                                                   8516937675.02                 7358424045.80
Non-current assets:
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments                19.3                       4687031800.41                 3809634099.42
Other equity instrument investments
Other non-current financial assets                                       25591400.00                   25591400.00
Investment property                                                     105032983.07                  116934882.69
Fixed assets                                                           1677541552.25                  971997970.63
Construction in progress                                                 66088474.50                  485529865.89
Productive biological assets
Oil & gas assets
Right-of-use assets
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Intangible assets                                                      352635416.29     321547885.32
including: data source
Development expenditures
including: data source
Goodwill
Long-term prepayments                                                   12009643.67      15845397.68
Deferred tax assets                                                     44379275.42      31848322.16
Other non-current assets
Total non-current assets                                              6970310545.61    5778929823.79
Total assets                                                         15487248220.63   13137353869.59
Current liabilities:
Short-term borrowings                                                  378906318.72     100000000.00
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable                                                         1533600000.00    1017600000.00
Accounts payable                                                      2059951863.58    1769306207.71
Advances received
Contract liabilities                                                   127449380.21      91006780.99
Employee benefits payable                                               54424102.14      53208863.39
Taxes and rates payable                                                 85243404.23     105503344.63
Other payables                                                           5637127.42      36652318.12
Including: Interest payable
Dividend payable
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities                                               16568419.42      11830881.53
Total current liabilities                                             4264094782.39    3785497285.26
Non-current liabilities:
Long-term borrowings                                                   498000000.00
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables                                                       4578954.00       4578954.00
Long-term employee benefits payable
Provisions
Deferred income                                                        102248391.60      89096793.31
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities                                          604827345.60      93675747.31
Total liabilities                                                     4868922127.99    3879173032.57
Owners' (shareholders¡¯) equity:
Paid-in Capital (or Share Capital)                                    1309812049.00    1309812049.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserve                                                       1724495301.21    1546607800.60
Less: Treasury shares
Other comprehensive income                                              21029243.45     -14670146.36
Special reserve                                                           280670.44       1484527.12
Surplus reserve                                                        656061435.10     656061435.10
Undistributed profit                                                  6906647393.44    5758885171.56
Total Owner's Equity (or                                             10618326092.64    9258180837.02
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Shareholder's Equity)
Total Liabilities and Owner's Equity
(or Shareholder's Equity)
Head of the Company: Zhao Limin         Chief Accountant: Zhang Shutong       Head of Accounting Department: Yuan
                                                                              Guanghui
                                        Consolidated Income Statement
                                             January - December 2025
                                                                                 Unit: Yuan     Currency: CNY
                           Item                          Notes:            2025                    2024
I. Total operating revenue                                7.61            17738651997.86          16749658536.93
Including: Operating revenue                              7.61            17738651997.86          16749658536.93
Interest income
Premiums earned
Revenue from handling charges and commission
II. Total operating cost                                  7.61            15697543127.32          14806937422.16
Including: Operating cost                                 7.61            13342717775.81          12775733409.22
Interest expenses
Handling charges and commission expenditures
Surrender value
Net payment of insurance claims
Net provision of insurance policy reserve
Premium bonus expenditures
Reinsurance expenses
Taxes and surcharges                                      7.62              111046902.34             74909304.79
Selling expenses                                          7.63              889497442.79            751517469.51
Administrative expenses                                   7.64              488776232.52            425264957.02
R&D expenses                                              7.65              858946791.62            817491897.92
Financial expenses                                        7.66                6557982.24            -37979616.30
Including: Interest expense                                                  43043092.17             47435277.98
Interest income                                                              29642658.04             63611335.96
Add: Other earnings                                       7.67              153258065.53            235964301.69
Investment income (losses presented by ¡°-¡±)               7.68              470405856.40            384508706.52
Including: Earnings from the investment in associates
and joint ventures
Gains from derecognition of financial assets at
amortized cost
Foreign exchange gains (¡°-¡± for losses)
Net exposure hedging income(¡°-¡± for loss)
Gains from changes in fair value (¡°-¡± for losses)         7.70                 714030.86              1277679.89
Credit impairment losses (losses presented by ¡°-¡±)        7.71              -33802338.76            -65600157.11
Assets impairment loss (losses presented by ¡°-¡±)          7.72              -29937453.68            -43639661.18
Gains on disposal of assets (¡°-¡± for losses)              7.73                 311586.41              2773129.92
III. Operating profit (losses presented by ¡°-¡±)                            2602058617.30           2458005114.50
Add: Non-operating revenue                                7.74                1524515.20              2726395.54
Less: Non-operating expenditure                           7.75                4476206.76              1258313.95
IV. Profit before tax (or less: total loss)                                2599106925.74           2459473196.09
Less: Income tax expenses                                 7.76              281470880.35            282969949.56
V. Net profit ("-" for net loss)                                           2317636045.39           2176503246.53
(I) Categorized by the continuity of operations
loss)
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
presented by ¡°-¡±)
(II) Categorized by the portion of equity ownership
parent company ("-" for net loss)
shareholders ("-" for net loss)
VI. Other comprehensive income after tax                                         31623883.25                  6390468.42
(I) Items attributable to the owners of the parent
company
loss
plan
method that will not be reclassified to profit or loss
investments
risk
reclassified to profit or loss in equity method
comprehensive income
investments
                                                                               -4195201.45                 -11541555.71
currency financial statements
(7) Others
(II) Items attributable to non-controlling shareholders                          119694.89                   -134976.00
VII. Total comprehensive income                                             2349259928.64                2182893714.95
(I) Items attributable to the owners of the parent
company
(II) Items attributable to non-controlling shareholders                      126440044.38                 163515134.41
VIII. Earnings per share (EPS):
(i) Basic earnings per share (RMB/share)                                                1.67                          1.54
(ii) Diluted earnings per share (RMB/share)                                             1.67                          1.54
Regarding the combination of enterprises under common control that occurred during the current period, the net profit
realized by the combined company before the combination was RMB -16,004,728.24, and net profit realized by the
combined company in the prior period was RMB 44,849,461.29.
Head of the Company: Zhao Limin             Chief Accountant: Zhang Shutong     Head of Accounting Department: Yuan
                                                                                Guanghui
                                      Parent Company¡¯s Income Statement
                                              January - December 2025
                                                                                         Unit: Yuan Currency: CNY
                       Item                              Notes:               2025                        2024
I. Business revenue                                       19.4               14260939137.95              13528371666.54
Less: operating cost                                      19.4               11717459410.81              11302992882.10
Taxes and surcharges                                                            63796580.27                 46934744.75
Selling expenses                                                                80225521.30                 72535257.70
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Administrative expenses                                                        220375237.50           193636017.07
R&D expenses                                                                   497942529.67           461983610.00
Financial expenses                                                               5530615.15           -29315709.93
Including: Interest expense                                                     17976160.89            18974465.11
Interest income                                                                 15972876.45            51462498.51
Add: Other earnings                                                             76265182.13           133462206.87
Investment income (losses presented by ¡°-¡±)                19.5                608059737.76           514438460.63
Including: Earnings from the investment in
associates and joint ventures
Gains from derecognition of financial assets at
amortized cost
Net exposure hedging income(¡°-¡± for loss)
Gains from changes in fair value (¡°-¡± for losses)                                 347215.23                 333.33
Credit impairment losses (losses presented by ¡°-¡±)                             -59442839.44           -62361253.54
Assets impairment loss (losses presented by ¡°-¡±)                               -20649256.78           -20465711.51
Gains on disposal of assets (¡°-¡± for losses)                                      140184.97             -815733.52
II.Operating profit (¡°-¡± for loss)                                            2280329467.12          2043863167.11
Add: Non-operating revenue                                                        259007.11              983010.65
Less: Non-operating expenditure                                                   122272.60              112067.23
III. Total profit (¡°-¡± for loss)                                              2280466201.63          2044734110.53
Less: Income tax expenses                                                      215835545.45           192016202.96
IV. Net profit (losses presented by ¡°-¡±)                                      2064630656.18          1852717907.57
(I) Net profit from continuing operations (losses
presented by ¡°-¡±)
(II) Net profit from discontinued operations (losses
presented by ¡°-¡±)
V. Other comprehensive income after tax                                         35699389.81            18067000.13
(I) Not to be reclassified subsequently to profit or
loss
benefit plan
method that will not be reclassified to profit or loss
investments
risk
(II) To be reclassified subsequently to profit or loss                          35699389.81            18067000.13
reclassified to profit or loss in equity method
comprehensive income
investments
currency financial statements
VI. Total comprehensive income                                                2100330045.99          1870784907.70
VII. Earnings per share (EPS):
(i) Basic earnings per share (RMB/share)
(ii) Diluted earnings per share (RMB/share)
Head of the Company: Zhao Limin             Chief Accountant: Zhang Shutong     Head of Accounting Department: Yuan
                                                                                Guanghui
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
                                     Consolidated Statement of Cash Flows
                                              January - December 2025
                                                                                      Unit: Yuan Currency: CNY
                        Item                           Notes:           2025                     2024
I. Cash flows from operating activities:
Cash receipts from sales of goods or rendering of
services
Net increase of client deposit and interbank
deposit
Net increase of central bank loans
Net increase of loans from other financial
institutions
Cash receipts from original insurance contract
premium
Net cash receipts from reinsurance
Net increase of policy-holder deposit and
investment
Cash receipts from interest, handling charges and
commission
Net increase of loans from others
Net increase of repurchase
Net cash receipts from agency security transaction
Receipts of tax refund                                                    947452567.68             701908043.64
Other cash receipts related to operating activities                       546328159.83             632869489.54
Subtotal of cash inflows from operating activities                      14097106317.89           13719011250.83
Cash payments for goods purchased and labor
services received
Net increase of loans and advances to clients
Net increase of central bank deposit and interbank
deposit
Cash payments for insurance indemnities of
original insurance contracts
Net increase of loans to others
Cash payments for interest, handling charges and
commission
Cash payments for policy bonus
Cash paid to and on behalf of employees                                  1550738999.75            1362440564.97
Cash payments for taxes and rates                                        1040429808.34             769970004.14
Other cash payments related to operating
activities
Subtotal of cash outflows from operating
activities
Net cash flows from operating activities             7.78                1683901243.07            1361574668.81
II.Cash flows from investing activities:
Cash receipts from withdrawal of investments                              185065020.00              35402557.18
Cash receipts from investment income                                       13587772.00              30303633.72
Net cash receipts from the disposal of fixed
assets, intangible assets and other long-term assets
Net cash receipts from the disposal of subsidiaries
& other business units
Other cash receipts related to investing activities                          428907.16               5393558.92
Subtotal of cash inflows from investing activities                        211717172.13              90782242.02
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Cash payments for the acquisition of fixed assets,
intangible assets and other long-term assets
Cash payments for investments                                                 214700738.15                98644301.62
Net increase of pledged borrowings
Net cash payments for the acquisition of
subsidiaries and other business units
Other cash payments related to investing activities                                                        1762249.85
Subtotal of cash outflows from investing activities                           766413464.34               553996116.25
Net cash flows from investing activities            7.78                     -554696292.21              -463213874.23
III. Cash flows from financing activities:
Cash receipts from absorbing investments                                       74660724.00                50011960.00
Including: Cash received by subsidiaries from
non-controlling shareholders as investments
Cash receipts from borrowings                                               1690068485.64               1499950244.00
Other cash receipts related to financing activities                          257114268.01                284298383.57
Subtotal of cash inflows from financing activities                          2021843477.65               1834260587.57
Cash payments for repayment of borrowings                                   1485825796.01               1691982028.06
Cash payments for distribution of dividends or
profits and for interest expenses
Including: Cash paid by subsidiaries to
non-controlling shareholders as dividend or profit
Other cash payments related to financing
activities
Subtotal of cash outflows from financing
activities
Net cash flows from financing activities            7.78                     -944445772.66              -680831617.02
IV. Effect of foreign exchange rate changes on
cash and cash equivalents
V. Net increase in cash and cash equivalents                                  195395806.11               233883464.13
Add: Opening balance of cash and cash
equivalents
VI. Closing balance of cash and cash
equivalents
Head of the Company: Zhao Limin           Chief Accountant: Zhang Shutong          Head of Accounting Department: Yuan
                                                                                   Guanghui
                                  Parent Company¡¯s Statement of Cash Flows
                                              January - December 2025
                                                                                      Unit: Yuan     Currency: CNY
                          Item                        Notes:                2025                       2024
I. Cash flows from operating activities:
Cash receipts from sales of goods or rendering of
services
Receipts of tax refund                                                         11523667.57                 9582046.49
Other cash receipts related to operating activities                           187844533.25               310268611.38
Subtotal of cash inflows from operating activities                          10680202449.73              9618992588.70
Cash payments for goods purchased and labor
services received
Cash paid to and on behalf of employees                                       446547809.83               401061289.17
Cash payments for taxes and rates                                             583205946.95               416745006.83
Other cash payments related to operating activities                           280850501.06               259234757.32
Subtotal of cash outflows from operating activities                          9283744168.82              8303550208.64
Net cash flows from operating activities                                     1396458280.91              1315442380.06
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
II.Cash flows from investing activities:
Cash receipts from withdrawal of investments                                   80980000.00
Cash receipts from investment income                                          125872734.66             162803581.30
Net cash receipts from the disposal of fixed assets,
intangible assets and other long-term assets
Net cash receipts from the disposal of subsidiaries &
other business units
Other cash receipts related to investing activities
Subtotal of cash inflows from investing activities                            285243483.55             230264231.26
Cash payments for the acquisition of fixed assets,
intangible assets and other long-term assets
Cash payments for investments                                                 359164474.14             428812610.00
Net cash payments for the acquisition of subsidiaries
and other business units
Other cash payments related to investing activities
Subtotal of cash outflows from investing activities                           755646672.89             678993514.83
Net cash flows from investing activities                                     -470403189.34            -448729283.57
III. Cash flows from financing activities:
Cash receipts from absorbing investments
Cash receipts from borrowings                                                 800000000.00            1000000000.00
Other cash receipts related to financing activities                           178789096.50             100000000.00
Subtotal of cash inflows from financing activities                            978789096.50            1100000000.00
Cash payments for repayment of borrowings                                     700000000.00            1250000000.00
Cash payments for distribution of dividends or profits
and for interest expenses
Other cash payments related to financing activities                           100000000.00
Subtotal of cash outflows from financing activities                          1734802095.19            1737118302.05
Net cash flows from financing activities                                     -756012998.69            -637118302.05
IV. Effect of foreign exchange rate changes on cash
and cash equivalents
V. Net increase in cash and cash equivalents                                  170042092.88             229594794.44
Add: Opening balance of cash and cash equivalents                            3009319307.95            2779724513.51
VI. Closing balance of cash and cash equivalents                             3179361400.83            3009319307.95
Head of the Company: Zhao Limin            Chief Accountant: Zhang Shutong       Head of Accounting Department: Yuan
                                                                                 Guanghui
                                                                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                        Consolidated Statement of Changes in Owners¡¯ Equity
                                                                                               January - December 2025
                                                                                                                                                                                    Unit: Yuan          Currency: CNY
                                                                                Owners' equity attributable to the parent company
                                                                                                                                                                                             Non-controllin
      Item         Paid-in Capital    Other equity instruments                    Less:          Other                                      Genera
                                                                                                                  Special       Surplus               Undistributed   Othe                   g shareholders'   Total equity
                      (or Share      Preferre Perpetua Othe      Capital reserve Treasur comprehensiv                                        l risk                            Subtotal
                                                                                                                  reserve       reserve                  profit        r                         equity
                       Capital)      d shares l bonds       r                    y shares      e income                                     reserve
I. Year-end
balance of the                                                                                -3901280.77     2121472.10                                                                      721733567.12
previous year
Add: Changes in
accounting
policies
Correction for
previous errors
Other                                                              89462657.32                 -253249.21                                             -136587997.02           -47378588.91    -54904151.71     -102282740.62
II. Opening
balance for the                                                                               -4154529.98     2121472.10                                                                      666829415.41
current year
Amount of
increase/decreas
e within the                                                     187282843.47                 31504188.36     -1409326.59                                                    1491824966.84     93908807.80     1585733774.64
current period
("-" for less)
(I) Total
comprehensive                                                                                 31504188.36                                                                    2222819884.26    126440044.38     2349259928.64
income
(II) Owners'
investment and
reductions in
capital
shares invested                                                                                                                                                                                50231224.00       50231224.00
by owners
contribution
from holders of
other equity
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
instruments
share-based
payments
recognized in
owners' equity
(III) Profit
                                                                                      -916868434.30   -916868434.30   -80990896.35   -997859330.65
distribution
surplus reserves
general risk
reserve
owners (or                                                                            -916868434.30   -916868434.30   -80990896.35   -997859330.65
shareholders)
(IV) Internal
carry-forward of
owners' equity
reserves
converted into
capital (or stock)
reserves
converted into
capital (or stock)
loss of surplus
reserves
re-measurement
of defined
benefit plan
carried over to
retained earnings
comprehensive
income carried
over to retained
earnings
                                                                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(V) Special
                                                                                                              -1409326.59                                                     -1409326.59                       -1409326.59
reserve
the current                                                                                                  11874136.77                                                      11874136.77                       11874136.77
period
                                                                                                                                                                             -13283463.36                      -13283463.36
current period                                                                                                          6
(VI) Others                                                      177887500.61                                                                                                177887500.61                      177887500.61
IV. Ending
balance of the                                                                               27349658.38       712145.51                                                                     760738223.21
current period
                                                                                Owners' equity attributable to the parent company
                                                                                                                                                                                            Non-controllin
      Item         Paid-in Capital    Other equity instruments                    Less:          Other                                     Genera
                                                                                                                  Special       Surplus              Undistributed   Othe                   g shareholders'   Total equity
                      (or Share      Preferre Perpetua Othe      Capital reserve Treasur comprehensiv                                       l risk                            Subtotal
                                                                                                                  reserve       reserve                 profit        r                         equity
                       Capital)      d shares l bonds       r                    y shares      e income                                    reserve
I. Year-end
balance of the     935580035.00                                                             -10529703.70      2143872.40                                                    8619135437.22    630937164.72     9250072601.94
previous year
Add: Changes in
accounting
policies
Correction for
previous errors
Other                                                              53266448.50                 -150270.70                                            -127415434.15           -74299256.35    -64946110.90     -139245367.25
II. Opening
balance for the    935580035.00                                                             -10679974.40      2143872.40                                                    8544836180.87    565991053.82     9110827234.69
current year
Amount of
increase/decreas
e within the       374232014.00                                  -354117890.08                6525444.42        -22400.30   95232251.25                                     1571680286.66    100838361.59     1672518648.25
current period
("-" for less)
(I) Total
comprehensive                                                                                 6525444.42                                                                    2019378580.54    163515134.41     2182893714.95
income
(II) Owners'
investment and
                                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
reductions in
capital
shares invested                                                                                                                         49893160.00     49893160.00
by owners
contribution
from holders of
other equity
instruments
share-based
payments
recognized in
owners' equity
(III) Profit
distribution
surplus reserves
general risk
reserve
owners (or                                                                                              -467790017.50   -467790017.50   -90540278.70   -558330296.20
shareholders)
(IV) Internal
carry-forward of     374232014.00   -374232014.00
owners' equity
reserves
converted into
capital (or stock)
reserves
converted into
capital (or stock)
loss of surplus
reserves
re-measurement
                                                                                The 2025 Annual Report of Hangcha Group Co., Ltd.
of defined
benefit plan
carried over to
retained earnings
comprehensive
income carried
over to retained
earnings
(V) Special
                                                                                                             -22400.30                                                         -22400.30                          -22400.30
reserve
the current                                                                                               11895166.88                                                       11895166.88                        11895166.88
period
                                                                                                                                                                            -11917567.18                      -11917567.18
current period                                                                                                       8
(VI) Others                                                        6464375.20                                                                                                6464375.20                         6464375.20
IV. Ending
balance of the                                                                             -4154529.98     2121472.10                                                                       666829415.41
current period
Head of the Company: Zhao Limin                                           Chief Accountant: Zhang Shutong                                         Head of Accounting Department: Yuan Guanghui
                                                                   Parent Company¡¯s Statement of Changes in Owners¡¯ Equity
                                                                                           January - December 2025
                                                                                                                                                                                  Unit: Yuan          Currency: CNY
                                                      Other equity instruments                            Less:          Other
          Item               Paid-in Capital (or
                                                   Preferred   Perpetual            Capital reserve      Treasury    comprehensive      Special reserve   Surplus reserve      Undistributed profit        Total equity
                               Share Capital)                               Other
                                                    shares       bonds                                    shares        income
I. Year-end balance of the
previous year
Add: Changes in
accounting policies
Correction for previous
errors
Other
II. Opening balance for
the current year
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Amount of
increase/decrease within
the current period ("-" for
less)
(I) Total comprehensive
income
(II) Owners' investment
and reductions in capital
invested by owners
from holders of other
equity instruments
payments recognized in
owners' equity
(III) Profit distribution                                                                       -916868434.30   -916868434.30
reserves
                                                                                                -916868434.30   -916868434.30
(or shareholders)
(IV) Internal
carry-forward of owners'
equity
converted into capital (or
stock)
converted into capital (or
stock)
surplus reserves
re-measurement of
defined benefit plan
carried over to retained
earnings
income carried over to
retained earnings
                                                                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(V) Special reserve                                                                                                                   -1203856.68                                                  -1203856.68
current period
                                                                                                                                     -13077993.45                                                 -13077993.45
period
(VI) Others                                                                             177887500.61                                                                                             177887500.61
IV. Ending balance of the
current period
                                                       Other equity instruments                          Less:         Other
           Item               Paid-in Capital (or
                                                    Preferred   Perpetual            Capital reserve   Treasury    comprehensive    Special reserve   Surplus reserve   Undistributed profit   Total equity
                                Share Capital)                               Other
                                                     shares       bonds                                 shares        income
I. Year-end balance of the
previous year
Add: Changes in
accounting policies
Correction for previous
errors
Other
II. Opening balance for
the current year
Amount of
increase/decrease within
the current period ("-" for
less)
(I) Total comprehensive
income
(II) Owners' investment
and reductions in capital
invested by owners
from holders of other
equity instruments
payments recognized in
owners' equity
                                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(III) Profit distribution                                                                                            95232251.25     -563022268.75       -467790017.50
reserves
                                                                                                                                     -467790017.50       -467790017.50
(or shareholders)
(IV) Internal
carry-forward of owners'      374232014.00             -374232014.00
equity
converted into capital (or    374232014.00             -374232014.00
stock)
converted into capital (or
stock)
surplus reserves
re-measurement of
defined benefit plan
carried over to retained
earnings
income carried over to
retained earnings
(V) Special reserve                                                                                    260724.61                                             260724.61
current period
                                                                                                     -11650147.50                                         -11650147.50
period
(VI) Others                                               6464375.20                                                                                        6464375.20
IV. Ending balance of the
current period
Head of the Company: Zhao Limin              Chief Accountant: Zhang Shutong                              Head of Accounting Department: Yuan Guanghui
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
Hangcha Group Co., Ltd. (hereinafter referred to as the ¡°Company¡±), headquartered in Hangzhou,
Zhejiang Province, was established with approval from the Leading Group of the People¡¯s Government
of Zhejiang Province for Enterprise Listing (Document ZSS [2003] No. 25). It was jointly initiated by
Zhejiang Hangcha Holding Co., Ltd. (formerly Zhejiang Hangcha Group Co., Ltd.), Hangzhou Industrial
Investment Group Co., Ltd. (formerly Hangzhou Industrial Assets Management Co., Ltd.), Hangzhou
High-Tech Investment Co., Ltd., and 7 natural person shareholders including Zhao Limin, and registered
with the Zhejiang Administration for Industry and Commerce on May 6, 2003. The Company currently
holds a business license with the Unified Social Credit Code 9133000014304182XR, a registered capital
of RMB 1,309,812,049, and the total shares of 1,309,812,049 (with a par value of RMB 1 per share). All
of the shares are non-restricted outstanding A-shares. The Company¡¯s stock has been listed on the
Shanghai Stock Exchange since December 27, 2016.
The Company is a player in the special equipment manufacturing industry. the Company primarily
engages in the R&D, production, and sales of forklifts and other industrial vehicles. Its main products
include internal combustion forklifts, electric forklifts, and other industrial vehicles.
The Financial Statements have been authorized for issuance with the approval of the 4th Meeting of the
These Financial Statements of the Company are prepared on a going concern basis.
"¡Ì Applicable" "¡õ Not applicable"
There is no matter or circumstance that results in any significant doubt about the Company's ability to
continue as a going concern for a period of 12 months from the end of the Reporting Period.
Reminder to specific accounting policies and accounting estimates:
"¡Ì Applicable" "¡õ Not applicable"
The Company formulated specific accounting policies and estimates for transactions and matters such as
impairment of financial instruments, inventories, depreciation of fixed assets, depreciation of
right-of-use assets, amortization of intangible assets and revenue recognition, based on its actual
production and operational characteristics.
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, and give a true and complete view of the financial position,
operating results, changes in shareholders' equity and cash flows of the Company.
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
The Company's fiscal year runs from January 1 to December 31 of the calendar year.
"¡Ì Applicable" "¡õ Not applicable"
The Company features a short period of business operations, with 12 months as the standard for the
liquidity of its assets and liabilities.
The Company adopts RMB as its functional currency.
"¡Ì Applicable" "¡õ Not applicable"
                           Item                                                   Materiality standard
Notes receivable with provisions for bad debts on an
                                                             Individual amounts exceeding 0.3% of total assets
individual basis
Recovery or reversal of provisions for bad debts of
                                                             Individual amounts exceeding 0.3% of total assets
significant notes receivable
Significant accounts receivable with the provision for bad
                                                             Individual amounts exceeding 0.3% of total assets
debts made on an individual basis
Recovery or reversal of provision for bad debts of
                                                             Individual amounts exceeding 0.3% of total assets
significant accounts receivable
Significant Write-offs of Accounts Receivable                Individual amounts exceeding 0.3% of total assets
Significant other receivables with the provision for bad
                                                             Individual amounts exceeding 0.3% of total assets
debts made on an individual basis
Recovery or reversal of provision for bad debts of
                                                             Individual amounts exceeding 0.3% of total assets
significant other receivables
Significant Write-offs of Other Receivables                  Individual amounts exceeding 0.3% of total assets
Significant Prepayments Aged over 1 Year                     Individual amounts exceeding 0.3% of total assets
                                                             The total investment of a single project exceeds 0.3% of the
Important construction in progress
                                                             total assets
Significant Accounts Payable Aged over 1 Year                Individual amounts exceeding 0.3% of total assets
Significant Other Payables Aged over 1 Year                  Individual amounts exceeding 0.3% of total assets
Significant Contract Liabilities Aged over 1 Year            Individual amounts exceeding 0.3% of total assets
Important cash flow from investing activities                Individual amounts exceeding 0.3% of total assets
Important subsidiary and non-wholly owned subsidiary         Revenue exceeding 15% of the Group¡¯s total revenue
                                                             The carrying amount of an individual long-term equity
Significant joint ventures and associates
                                                             investment exceeds 1% of total assets
Important events subsequent to the balance sheet date        Profit distribution after the balance sheet date
"¡Ì Applicable" "¡õ Not applicable"
Assets and liabilities acquired by the Company in a merger are measured at the book value of the party
being consolidated in the consolidated financial statements of ultimate controlling party at the date of
merger. The Company adjusts capital surplus by the difference between the share of the book value of
the owners' equity of the party being consolidated in the consolidated financial statements of the ultimate
controlling party and the book value of the consideration paid for the consolidation or the total nominal
value of the shares issued. If capital surplus is insufficient for write-down, the retained earnings shall be
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
adjusted.
The Company recognizes the difference of the cost of consolidation minus the share of fair value of the
identifiable net assets of the acquiree acquired in the consolidation at the date of purchase as the
goodwill. If the cost of consolidation is less than the share of fair value of the identifiable net assets of
the acquiree acquired in the consolidation, the Company firstly reviews the fair value of each of
identifiable assets, liabilities and contingent liabilities acquired from the acquiree as well as the
measurement of consolidation cost; and if the cost of consolidation remains less than the share of fair
value of the identifiable net assets of the acquiree acquired in the consolidation upon review, the
difference is recognized in the current gains or losses.
"¡Ì Applicable" "¡õ Not applicable"
Control is recognized if one entity has the power over the invested entity, enjoying variable returns
through participating in related activities of the invested entity, and has the ability to use the power over
the invested entity to influence its variable return amount.
The parent company includes all subsidiaries it controls in the scope of the consolidated financial
statements. The consolidated financial statements are based on the financial statements of the parent
company and its subsidiaries and are prepared by the parent company in accordance with Accounting
Standards for Business Enterprises No. 33 ¨C Consolidated Financial Statements with reference to other
information.
"¡Ì Applicable" "¡õ Not applicable"
interest in the joint operation shall be recognized:
(1) To recognize the assets held assumed solely by the Company and the assets held assumed jointly as
per the shares of the Company;
(2) to recognize the liabilities held assumed solely by the Company and the assets held assumed jointly
as per the shares of the Company;
(3) to recognize revenue from disposal of the share of joint operations of the company to be sold;
(4) to recognize revenue from joint operations arising from the sale of assets based on the shares held by
the Company; and
(5) to recognize fees solely incurred by Company and recognize fees from joint operations in
appropriation to the share of the Company.
Cash equivalents are the Company¡¯s short-term (generally due within three months from the date of
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
purchase), highly liquid investments that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value.
"¡Ì Applicable" "¡õ Not applicable"
A foreign currency transaction is, on initial recognition, translated into RMB at the spot exchange rate
prevailing at the date of the transaction. At the balance sheet date, monetary items denominated in
foreign currency are translated using the spot exchange rate prevailing at the balance sheet date, and
exchange differences arising from the differences between the spot exchange rates are recognized in
profit or loss for the period, except for those attributable to principal and interest of borrowings
denominated in foreign currency that have been taken out specifically for the acquisition, construction or
production of qualifying assets; non-monetary items denominated in foreign currency measured at
historical costs are still translated using the spot exchange rate at the date of the transaction, without
changing the amount in RMB; non-monetary items denominated in foreign currency that are measured at
fair value are translated using the spot exchange rate prevailing on the date when fair value is
determined and the resulting exchange differences will be recognized in profit or loss for the period or
other comprehensive income.
Assets and liabilities in the balance sheet are translated at the spot exchange rates prevailing at the
balance sheet date. Among the owners¡¯ equity items, the items other than ¡°Retained earnings¡± are
translated at the spot exchange rates at the date of the transaction. Revenue and expense items in the
income statement are translated using the spot exchange rates at the date of the transaction. Differences
in translation of foreign-currency financial statements arising from the foregoing are stated as other
comprehensive income.
"¡Ì Applicable" "¡õ Not applicable"
Financial assets are classified into the three categories at initial recognition: (1) Financial assets
measured at amortized cost; (2) financial assets measured at fair value through other comprehensive
income; and (3) financial assets measured at fair value through current gains/losses.
Financial liabilities are classified into four categories at initial recognition: (1) Financial liabilities
measured at fair value through current gains/losses; (2) financial liabilities resulting from unqualified
transfer of financial assets on derecognition or from continued involvement in the transferred financial
assets; (3) financial guarantee contracts that do not fall under (1) or (2) above and loan commitments
that fall out of (1) above and that are loaned out at a lower-than-market interest rate; and (4) financial
liabilities measured at amortized cost.
financial liabilities
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
(1) Basis of recognition and initial measurement of financial assets and financial liabilities
The Company recognizes an item of financial asset or financial liability at the time when it becomes one
party to a contract of the financial instruments. On initial recognition, a financial asset or financial
liability is measured at fair value; for financial assets and financial liabilities at fair value through current
gains or losses, the related transaction costs are recognized directly in the current gains or losses; for
other categories of financial assets or financial liabilities, relevant transaction costs are included in the
amount of initial recognition. However, if the receivables initially recognized by the Company exclude
significant financing components or if the Company does not consider any financing component in a
contract of less than a year, the Company initially measures the receivables in accordance with the
transaction price as defined in Accounting Standards for Business Enterprises No. 14 -Revenue.
(2) Subsequent measurement of financial assets
Such financial liabilities are measured subsequently at amortized cost by the actual interest rate method.
Gains or losses arising from financial assets measured at amortized cost that are not part of any hedging
relationship are recognized in the current gains or losses when they are derecognized, reclassified,
amortized by the effective interest rate method or recognized as impairment.
Such financial asset is measured subsequently at fair value. Interest, impairment losses or gains and
exchange gains/losses calculated using the method of effective interest rate are recognized in the current
gains or losses for the period. Upon derecognition, the cumulative gains or losses previously recognized
in other comprehensive income are transferred out and recognized in current gains/losses.
Such financial asset is measured subsequently at fair value. Dividends received (except for those
attributable to the investment costs recovered) are recognized in current gains/losses, and other gains or
losses are recognized in other comprehensive income. Upon derecognition, the cumulative gains or
losses previously recognized in other comprehensive income are transferred therefrom to retained
earnings.
Gains or losses arising from subsequent measurement at fair value, including interest and dividend
income, are stated as current gains/losses unless the financial assets are part of a hedging relationship.
(3) Subsequent measurement of financial liabilities
Such financial liabilities comprise those held for trading (including derivatives that are financial
liabilities) and those designated for measurement at fair value through current gains/losses. Such
financial liabilities are measured subsequently at fair value. The amount of changes in the fair value of
financial liabilities designated for measurement at fair value through current gains/losses arising from
changes in the Company's credit risk is recognized in other comprehensive income, unless such disposal
would create or enlarge the accounting mismatch in gains/losses. Other gains or losses arising from such
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
financial liabilities (including interest cost and changes in fair value other than those arising from
changes in the Company's credit risk) are recognized in current gains/losses, unless the financial
liabilities are part of a hedging relationship. Upon derecognition, the cumulative gains or losses
previously recognized in other comprehensive income are transferred therefrom to retained earnings.
continued involvement in the transferred financial assets
Such financial liabilities are measured in accordance with Accounting Standards for Business
Enterprises No.23 -Transfer of Financial Assets.
out of (1) above and that are loaned out at a lower-than-market interest rate
Subsequent measurement after initial recognition is based on, whichever is higher: ¢Ù The amount of
the provision for losses determined in accordance with the regulations on impairment of financial
instruments; or ¢Ú difference between the amount initially recognized minus the amount of cumulative
amortization defined in accordance with Accounting Standards for Business Enterprises No. 14 -
Revenue.
Such financial liabilities are measured at amortized cost using the effective interest method. Gains or
losses arising from financial liabilities measured at amortized cost and not part of any hedging
relationship are recognized in the current gains/losses at the time of derecognition and amortized by
effective interest method.
(4) Derecognition of financial assets and financial liabilities
¢Ù The contractual right to receive cash flows from financial assets is terminated;
¢Ú The financial asset is transferred, and such transfer satisfies the regulations on derecognition of
financial assets under Accounting Standards for Business Enterprises No.23 - Transfer of Financial
Assets.
financial liability (or such portion thereof) is derecognized accordingly.
If the Company transfers nearly all the risks and rewards of ownership of a financial asset, such financial
asset is derecognized, and the right and obligation arising from or retained in the transfer is recognized
as an asset or a liability; if nearly all the risks and rewards on the ownership of a financial asset are
retained, the transferred financial asset continues to be recognized. If the Company neither transfers nor
retains nearly all risks and rewards on the ownership of a financial asset, the Company shall: (1)
derecognize the financial asset and recognize the right and obligation arising from or retained in the
transfer if it has no control over the asset; and (2) recognize the relevant financial asset and relevant
financial liability by the extent of its continued involvement in the transferred financial asset if it has
control over the said financial asset.
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If the overall transfer of a financial asset satisfies the conditions for derecognition, the difference
between (1) the book value of the transferred financial asset on the date of derecognition; and (2) the
sum of the consideration from the transfer of the financial asset and the amount of derecognized portion
in the accumulated changes of fair value originally stated as other comprehensive income (the financial
asset involved in transfer is an investment in a debt instrument measured at fair value through other
comprehensive income) is recognized in current gains/losses. Should a portion of a financial asset be
transferred and such transferred portion as a whole is qualified for derecognition, the book value of such
financial asset as a whole before the transfer is apportioned between the derecognized portion and the
portion for continued recognition based on their respective fair value on the date of transfer; and the
difference between (1) the book value of the derecognized portion and (2) the sum of the consideration
for the derecognized portion and the amount of derecognized portion in the accumulated changes of fair
value originally stated as other comprehensive income (the financial asset involved in transfer is an
investment in a debt instrument measured at fair value through other comprehensive income) is
recognized in current gains/losses.
The Company employs the appraisal technique that is applicable in current period and is supported by
sufficient available data and other information to determine the fair value of financial assets and
financial liabilities. The Company categorizes the inputs used in the valuation technique in the following
levels and applies such inputs in a certain order:
(1) Level-1 inputs are unadjusted offers in any active market for identical assets or liabilities that are
available on the measurement date;
(2) Level-2 inputs are those other than the Level-1 inputs and observable for underlying assets or
liabilities, directly or indirectly, including offers for similar assets or liabilities in any active market;
offers for identical or similar assets or liabilities in any inactive market; observable inputs other than
offers (e.g., interest rates and yield curves observable in normal intervals of offering; and
market-validated inputs;
(3) Level-3 inputs are unobservable inputs for the underlying assets or liabilities, including interest rates
that are not directly observable or cannot be verified with observable market data, stock volatility, future
cash flows assuming retirement obligations in a business merger, and financial projections with
self-owned data.
The Company impairs and recognizes provisions for loss based on expected credit losses on financial
assets measured at amortized cost, investments in debt instruments at fair value through other
comprehensive income, contract assets, receivables from leasing, loan commitments other than those
classified as financial liabilities measured at fair value through current gains/losses, and financial
guarantee contracts that are not classified as financial liabilities measured at fair value through current
gains/losses or financial liabilities resulting from unqualified transfer of financial assets on derecognition
or from continued involvement in the transferred financial assets.
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Expected credit loss refers to the weighted average of credit loss of financial instruments weighted by
the risk of default. Credit loss represents the difference between all contractual cash flows discounted at
the original effective interest rate and receivable under the contract and all cash flows expected to be
collected, i.e., the present value of the entire cash shortfall. In particular, for any financial asset
purchased or originated by the Company with credit impairment, such asset is discounted at effective
interest rate upon credit adjustment.
For any financial asset purchased or originated by the Company with credit impairment, the Company
recognizes only the cumulative changes in expected credit losses over the entire period of existence from
initial recognition as the provision for losses on the balance sheet date.
For lease receivables, receivables resulting from transactions regulated by Accounting Standards for
Business Enterprises No. 14 - Revenue and contract assets, the Company measures the provision for
losses based on the amount equal to the expected credit loss for the entire life under simplified approach.
For any financial asset other than those measured by the above-mentioned methods, the Company
evaluates on each balance sheet date whether the credit risk of such asset sees significant increase after
initial recognition. If the credit risk has increased significantly since initial recognition, the Company
measures the provision for losses based on the number of expected credit losses over the entire period of
existence; if not, the Company measures the provision for losses based on the number of expected credit
losses of such financial instrument over the next 12 months.
The Company uses reasonably available and supportable information, including forward-looking
information, to determine whether the credit risk of a financial instrument sees significant increase after
initial recognition by comparing the risk of default of the said financial instrument on the balance sheet
date with the risk of default on the date of initial recognition.
On the balance sheet date, if the Company believes that a financial instrument features a low credit risk,
it shall be assumed that its credit risk has not increased significantly since initial recognition.
The Company evaluates expected credit risks and measures expected credit losses based on a single
financial instrument or a portfolio of financial instruments. Where a portfolio of financial instruments is
applied, the Company classifies financial instruments into portfolios based on common risk features.
The Company remeasures expected credit losses on each balance sheet date, from which the amount
increased or reversed from the provision for losses resulted is recognized as impairment gains or losses
in current gains/losses. For any financial asset measured at amortized cost, the provision for losses is
offset against the book value of such financial asset as stated in the balance sheet; for any debt
investment measured at fair value through other comprehensive income, the Company recognizes its
provision for losses in other comprehensive income, without offsetting the book value of the financial
asset.
Financial assets and financial liabilities are presented separately in the balance sheet and are not
mutually offset. However, where both of the following conditions are met, the financial assets and
financial liabilities will be presented in the balance sheet with the net amount after mutual offset: (1) The
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Company has the legal right to offset the recognized amount, which is executable for; and (2) the
Company plans to make settlement in net amount, or realizes the financial assets and settles the financial
liabilities simultaneously.
When a financial asset is transferred without satisfying the conditions for derecognition, the Company
does offset such transferred financial asset and related liabilities.
"¡Ì Applicable" "¡õ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"¡Ì Applicable" "¡õ Not applicable"
For details on the Company¡¯s determination methods and accounting treatment for expected credit losses
on notes receivable, please refer to ¡°5.11 Financial Instruments under Section VIII Financial Reports¡±.
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"¡õ Applicable" "¡Ì Not applicable"
Determination criteria for provision for bad debts on an individual basis
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"¡Ì Applicable" "¡õ Not applicable"
                                        Basis for
             Category                   portfolio                  Methods to measure expected credit losses
                                      determination
                                                  The Company calculates expected credit losses by reference to
                                  Acceptance bill historical credit loss, taking into current conditions and projections
Bankers' acceptances receivable
                                  drawer          of future economic conditions through default exposures and
                                                  expected credit loss rate over the entire period of existence.
Commercial acceptances receivable                 Prepare a comparison table between the aging of accounts
Receivables - Ageing combination                  receivable, commercial acceptance bills receivable and contract
                                  Ageing          assets and the expected credit loss rate for the entire life, and
                                  combination     calculate the expected credit losses, based on current conditions
Contract assets - Aging portfolio
                                                  and forecasts of future economic conditions, with reference to
                                                  historical credit loss experience
Other receivables - Portfolio of
deposits and margins receivable
Other receivables - Temporary                     The Company calculates expected credit losses by reference to
payments receivable                               historical credit loss, taking into current conditions and projections
                                  Nature of
Other receivables - Temporary                     of future economic conditions through default exposures and
                                  payment
employee borrowings                               expected credit loss rate within the next 12 months or over the
Other receivables -                               entire period of existence.
Cross-borrowing
Other receivables - Others
                                                  Prepare a comparison table between the overdue aging and the
Long-term receivables - Finance
                                  Overdue aging expected credit loss rate for the entire life, and calculate the
lease portfolio
                                                  expected credit losses, based on current conditions and forecasts
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                       of future economic conditions, with reference to historical credit
                                                       loss experience
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                    Contract assets
                                     Accounts receivable        Expected credit loss rate on
            Aging                                                                               Expected credit loss rate
                                  Expected credit loss rate (%)    notes receivable (%)
                                                                                                         (%)
Within one year (inclusive, the
same below)
More than 5 years                             100                           100                           100
the entire life
                                                                      Long-term receivables
            Overdue aging
                                                                    Expected credit loss rate (%)
              Not past due                                                       1
      Less than 3 months past due                                                10
        Over one year past due                                                  100
The aging of accounts receivable, contract assets and long-term receivables is calculated from the month
in which they are actually incurred.
Determination criteria for provision for bad debts on an individual basis
"¡Ì Applicable" "¡õ Not applicable"
For accounts receivable and contract assets whose credit risk is significantly different from the portfolio
credit risk, the Company measures expected credit losses on a single item basis.
"¡Ì Applicable" "¡õ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"¡Ì Applicable" "¡õ Not applicable"
For details on the Company¡¯s determination methods and accounting treatment for expected credit losses
on receivables financing, please refer to ¡°11.(5) Impairment of Financial Instruments under Section X
Financial Reports¡±. The Company prepares a table of comparing the ageing of receivables and expected
credit losses over the entire period of existence by reference to historical credit loss, taking into current
conditions and projections of future economic conditions, in a bid to calculate the expected credit losses.
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"¡õ Applicable" "¡Ì Not applicable"
Determination criteria for provision for bad debts on an individual basis
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"¡Ì Applicable" "¡õ Not applicable"
For details on the Company¡¯s determination methods and accounting treatment for expected credit losses
on receivables financing, please refer to ¡°11.(5) Impairment of Financial Instruments under Section X
Financial Reports¡±. The Company prepares a table of comparing the ageing of receivables and expected
credit losses over the entire period of existence by reference to historical credit loss, taking into current
conditions and projections of future economic conditions, in a bid to calculate the expected credit losses.
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"¡õ Applicable" "¡Ì Not applicable"
Determination criteria for provision for bad debts on an individual basis
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Inventory categories, methods for inventory valuation on dispatch, inventory system, methods of
amortization of low-value consumables and packaging materials
"¡Ì Applicable" "¡õ Not applicable"
Inventories include finished products or commodities held for sale in daily operations, or work in
progress, or materials and supplies to be consumed in production or provision of labour.
The Company appraises outgoing inventories with weighted-average system at the end of the month.
Stocktaking is based on perpetual inventory system.
(1) Low-value consumables
Low-value consumables are amortized by lump sum.
(2) Packages
Low-value consumables are amortized by lump sum.
Recognition criteria and accrual method for provision for decline in value of inventories
"¡Ì Applicable" "¡õ Not applicable"
Recognition criteria and accrual method for provision for decline in value of inventories
Inventories are valued at lower of cost and NRV (net realizable value) at the balance sheet date, and the
provision for the decline in the value of inventories is made based on the difference between cost and
NRV. The net realizable value of an inventory directly for sale is determined in the normal production
and operation by its estimated selling price minus estimated selling expense(s) and related tax(es); and
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
that of an inventory requiring processing is determined in normal production and operation by the
estimated selling price of the finished product minus estimated cost(s) to incur by the time of completion,
estimated selling expense(s) and related tax(es). In case the price of part of an inventory is specified in
the contract but that of the other parts is not specified in the contract by the balance sheet date, their net
realizable values are determined separately and compared with their corresponding costs in order to
determine the amount for withdrawal or reversal of provision for inventory depreciation.
Portfolio categories for which the provision for depreciation of inventories on a portfolio basis and
the basis for determination, and basis for determination of net realizable value of different
categories of inventories
"¡õ Applicable" "¡Ì Not applicable"
Calculation method and basis for determination of net realizable value of each inventory aging
portfolio recognized based on inventory aging
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Recognition method and criteria of contract assets
"¡Ì Applicable" "¡õ Not applicable"
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the fulfillment of performance obligations and clients' payment. The contractual
assets and liabilities under the same contract are shown on a net basis after mutual offset.
The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.,
depending only on the passage of time) as a receivable and the right to receive consideration for a
commodity transferred to a client (depending on any factor other than the passage of time) as a contract
asset.
The obligation to transfer goods to a client, for which consideration has been received or is receivable
from the client, is shown as a contractual liability.
Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the
credit risk characteristics and the basis for determination
"¡õ Applicable" "¡Ì Not applicable"
Aging calculation method for portfolio of credit risk characteristics recognized based on aging
"¡õ Applicable" "¡Ì Not applicable"
Determination criteria for provision for bad debts on an individual basis
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
The Company classifies non-current assets or disposal groups as held for sale where both of the
following conditions are satisfied: (1) The sale is imminent under current conditions based on the
common practice of selling such assets or disposal groups in similar transactions; and (2) the sale is
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
highly possible, i.e., the Company has resolved on a plan for the sale and obtained a firm commitment to
purchase, and the sale is expected to be completed within one year.
Non-current assets or disposal groups acquired by the Company for the sole purpose of resale are
classified as held for sale on the date of acquisition if, on the date of acquisition, the condition that "the
sale is expected to be completed within one year" is satisfied and other conditions for classification as
held for sale are also likely to be satisfied within a short period of time (normally three months).
If any transaction between or among unconnected parties fails to be completed within one year for any
of the following reasons beyond the control of the Company, and the Company remains committed to
selling the non-current assets or disposal groups, such assets or groups will continue to be classified as
held for sale: (1) The buyer or any other party unexpectedly sets conditions that result in a delay in the
sale, and the Company has acted on those conditions in a timely manner and expects to successfully
resolve the delay within one year upon the setting; (2) any rare event occurs that causes the sale of the
non-current assets or disposal groups held for sale not to be completed within one year, and the
Company has addressed such event within the initial year, for which the conditions for classification of
those held for sale have been satisfied.
Recognition criteria and accounting treatment for non-current assets or disposal groups classified
as held for sale
"¡Ì Applicable" "¡õ Not applicable"
(1) Initial measurement and subsequent measurement
At the initial measurement of and remeasurement on balance sheet date of non-current assets or disposal
groups held for sale, if the book value is higher than the fair value less costs to sell, the book value is
written down to a net amount of fair value less costs to sell, and the amount of write-down is stated as an
impairment loss on the assets through current gains/losses and a provision for impairment of the assets
held for sale is withdrawn.
Non-current assets or disposal groups classified as held for sale on the date of acquisition measured at
whichever is lower, amount of initial measurement that would have been determined assuming that they
were not classified as held for sale or the net amount of fair value less costs to sell. Except for the
non-current assets or disposal groups acquired in a business merger, the difference arising from the
initial measurement of a non-current asset or disposal group at fair value less costs to sell is recognized
in current gains/losses.
The amount of asset impairment loss recognized for a disposal group held for sale is offset against the
book value of goodwill in the disposal group and then against the book value of each non-current asset
on a pro rata basis by its proportion in the disposal group.
Non-current assets held for sale or in the disposal groups shall not be depreciated or amortized, and
interest and other expenses of liabilities in the disposal groups held for sale shall be recognized.
(2) Accounting treatment for reversal of assets impairment loss
If the net amount of the fair value of non-current assets held for sale after subtracting the selling expense
increases at subsequent balance sheet dates, the amount previously written down shall be restored.
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Moreover, the amount of assets impairment loss recognized after non-current assets are classified as held
for sale shall be reversed and recorded in profit or loss for the current period. The assets impairment loss
recognized before non-current assets are classified as held for sale shall not be reversed.
If the net amount of the fair value of disposal groups held for sale after subtracting the selling expense
increases at subsequent balance sheet dates, the amount previously written down shall be restored.
Moreover, the amount of assets impairment loss recognized after non-current assets are classified as held
for sale shall be reversed and recorded in profit or loss for the current period. The book value of
goodwill that has been written off and the assets impairment loss recognized before non-current assets
are classified as held for sale shall not be reversed.
For the subsequently reversed amount of the assets impairment loss recognized on disposal groups held
for sale, the book value shall be increased based on the proportion of the book value of each non-current
asset except goodwill in the disposal group.
(3) Discontinued classification as held for sale and derecognition
When non-current assets or disposal groups are no longer classified as held for sale because they do not
meet the corresponding conditions or non-current assets are removed from disposal groups held for sale,
they shall be measured at the lower of the following: 1) the book value before being classified as held
for sale, adjusted for depreciation, amortization or impairment that would have been recognized had they
not been classified as held for sale; 2) the recoverable amount.
At the time of derecognition of non-current assets or disposal groups held for sale, the unrecognized
gains or losses shall be recorded in profit or loss for the current period.
Criteria for determination and presentation of discontinued operations
"¡Ì Applicable" "¡õ Not applicable"
A separately distinguishable component that has been disposed of or is held for sale and meets one of the
following conditions is recognized as a discontinued operation:
(1) The component represents an independent main business or an independent main business area;
(2) The component is part of a plan concerning the proposed disposal of an independent main business
or an independent main business area;
(3) This component is a subsidiary acquired exclusively for resale.
The Company presents the profit or loss from continuing operations and the profit or loss from
discontinued operations separately in the income statement. Operating profit or loss and profit or loss
from disposal such as the impairment loss and the reversed amount from discontinued operations are
reported as profit or loss from discontinued operations. For the discontinued operations reported in the
current period, the data originally presented as the profit or loss from continuing operations shall be
re-presented as the profit or loss from discontinued operations for the comparable period in the current
financial statements. If the discontinued operation no longer meets the criteria to be classified as held for
sale, the data originally presented as the profit or loss from discontinued operations shall be re-presented
as the profit or loss from continuing operations for the comparable period in the current financial
statements.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
Joint control refers to the shared control over an arrangement, regarding which activities can be decided
on only with the unanimous consent of the parties sharing control, as agreed upon. Significant influence
refers to the power to participate in decision-making on the financial and operating policies of the
investee, but with no control or joint control over the formulation of these policies.
(1) For business combination under common control, where long-term equity investments are obtained
by cash paid, non-Cash and bank balances paid, assumed liabilities or equity securities issued as
consideration by the combining party, on the combination date, the initial investment cost shall be taken
as the share of the owner's equity of the combined party at book value in the final control party's
consolidated financial statements. According to the difference between the initial investment cost of
long-term equity investments and the book value of the consideration paid or the aggregate nominal
value of shares issued, capital reserve shall be written down. If the capital reserve is not sufficient to be
written down, then the retained earnings shall be written down.
For long-term equity investments resulting from business combinations involving entities under
common control, which are achieved step by step in multiple transactions, the Company will assess
whether these transactions constitute a "package deal". Each of these transactions shall be accounted for
as a transaction for acquisition of control if they constitute a "package deal". Otherwise, the initial
investment cost shall be recognized on the combination date according to the share of the combined
party's net assets to be acquired after combination at book value in the final control party's consolidated
financial statements. According to the difference between the initial investment cost of long-term equity
investments on the combination date and the sum of the book value of long-term equity investments
before combination plus the book value of the consideration paid for further acquisition of shares on the
combination date, capital reserve shall be written down. If the capital reserve is not sufficient to be
written down, then the retained earnings shall be written down.
(2) For business combination not under common control, on the combination date, the initial investment
cost of long-term equity investments shall be taken as the fair value of the consideration paid.
For long-term equity investments resulting from business combinations involving entities not under
common control, which are achieved step by step in multiple transactions, different approaches in
accounting treatment are adopted for individual financial statements and consolidated financial
statements as follows:
value of investments in equity originally held plus the additional investment cost using the cost method.
assessed. Each of these transactions shall be accounted for as a transaction for acquisition of control if
they constitute a "package deal". For transactions that do not constitute a "package deal", the target
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
entity's equity held before the purchase date shall be remeasured at the fair value of the equity on the
purchase date, and the difference between the fair value and book value of the equity shall be recorded
in investment income for the current period; if the target entity's equity held before the purchase date
involves other comprehensive income accounted with the equity method, other comprehensive income
associated, except when arising from the changes due to remeasurement of net liabilities or net assets of
defined benefit plan by the investor, shall be transferred to income for the current period on the purchase
date. However, this excludes other comprehensive income generated by changes in the remeasurement
of the net liabilities or net assets of the investee related to the defined benefit plans.
(3) Other long-term equity investments not resulting from business combination: For long-term equity
investments obtained by cash paid, the initial investment cost shall be the amount actually paid. For
those obtained by equity securities issued, the initial investment cost shall be the fair value of equity
securities issued. For those obtained by debt restructuring, the initial investment cost shall be recognized
according to Accounting Standards for Business Enterprises No. 12 - Debt Restructuring. For those
obtained by the exchange of non-Cash and bank balances, the initial investment cost shall be recognized
according to Accounting Standards for Business Enterprises No. 7 Exchange of Non-Cash and bank
balances.
Where the Company is able to exercise control over an investee, long-term equity investments are
accounted for using the cost method. Long-term equity investments in associates and joint ventures are
accounted for using the equity method.
and loss of control
(1) Judgment principles of whether the transactions constitute a "package deal"
Where the equity investment in a subsidiary is disposed of step by step through multiple transactions
until it loses control, the Company shall judge whether the transactions constitute a "package deal" based
on information including the terms of the transaction agreement, the consideration of disposal obtained,
the object of the sale of the equity, the method of disposal, and the time of disposal for each step of the
step-by-step transaction. The multiple transactions constitute a "package deal" when the terms,
conditions and economic impacts of the multiple transactions meet the following one or more
conditions:
with other transactions.
(2) Accounting treatments do not constitute a "package deal"
For the equity to be disposed of, the difference between its book value and the actual acquisition price
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
shall be recorded in profit or loss for the current period. The residual equity that still has a significant
influence on the investee or for which joint control is exercised over the investee shall be accounted for
using the equity method. If no control or joint control is exercised over the investee or there is no
significant influence on the investee, the accounting treatment shall be subject to Accounting Standards
for Business Enterprises No. 22 Recognition and Measurement of Financial Instruments.
Prior to the loss of control, according to the difference between the disposal price and the share of
long-term equity investments disposed of in the net assets of subsidiaries to be held and continuously
calculated from the combination date, capital reserve (capital premium) shall be written down. If the
capital reserve is not sufficient to be written down, then the retained earnings shall be written down.
For the loss of control over former subsidiaries, the residual equity shall be remeasured at the fair value
on the date of such loss. The difference between the sum of the consideration received from the disposal
of the equity plus the fair value of the residual equity and the share of former subsidiaries' net assets to
be held and continuously calculated from the combination date based on the shareholding ratio shall be
recorded in investment income for the current period in which the loss of control occurs, and goodwill
shall be written down. Other comprehensive income related to equity investments in former subsidiaries
shall be transferred to investment income for the current period at the time of the loss of control.
(3) Accounting treatments constitute a "package deal"
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in
subsidiaries and loss of control. However, the difference between the disposal price and the book value
of the long-term equity investment corresponding to the disposal investment shall be recognized as other
comprehensive income in individual financial statements prior to the loss of control and, at the time of
the loss of control, transferred to profit or loss for the current period in which the loss of control occurs.
Each of these transactions shall be accounted for as a transaction relating to disposal of investments in
subsidiaries and loss of control. However, the difference between the disposal price and the share of
investments disposed of in the net assets of subsidiaries to be held shall be recognized as other
comprehensive income in consolidated financial statements prior to the loss of control and, at the time of
the loss of control, transferred to profit or loss for the current period in which the loss of control occurs.
(1). If the investment properties are measured at cost:
Method of depreciation or amortization
after appreciation and buildings leased out.
depreciated or amortized in the same way as fixed assets and intangible assets.
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Recognition criteria
"¡Ì Applicable" "¡õ Not applicable"
Fixed assets refer to tangible assets held for the purpose of commodity production, services rendering,
renting or business administration with useful lives exceeding one accounting year. Fixed assets shall be
recognized when economic benefits are likely to flow in and costs can be measured reliably.
(2). Depreciation method
"¡Ì Applicable" "¡õ Not applicable"
                                               Term of depreciation                                Annual depreciation
     Category          Depreciation method                                 Residual rate (%)
                                                     (year)                                             rate (%)
Buildings              Straight-line method          20-40                         5                   2.38-4.75
Machinery and
                       Straight-line method             3-10                       5                   9.50-31.67
equipment
Transportation
                       Straight-line method             5-10                       5                   9.50-19.00
facilities
Other equipment        Straight-line method             3-10                       5                   9.50-31.67
"¡Ì Applicable" "¡õ Not applicable"
Company, and the cost can be measured reliably. The construction in progress is measured at the actual
cost incurred before it is ready for its intended use.
intended use. It shall be transferred to fixed assets at estimated value when it is ready for its intended use
but the final settlement of account has not been finished. The estimated value shall be adjusted according
to the actual cost after the final settlement of account, while the accrued depreciation shall not be
adjusted.
                                   The standard and time node for the construction in progress to be transferred to fixed
            Category
                                                                          assets
Buildings                          Ready for intended use upon the project completion
Machinery, equipment and other     The machinery and equipment meet the design requirements or the standards
equipment                          stipulated in the contract
Other construction in progress     Ready for intended use upon the project completion
"¡Ì Applicable" "¡õ Not applicable"
Borrowing costs are capitalized when they are directly attributable to the acquisition, construction or
production of a qualifying asset and included in the cost of related assets. Other borrowing costs are
recognized as expenses and recorded in profit or loss for the current period when incurred.
(1) Borrowing costs can only begin to be capitalized if the following three conditions are all met
simultaneously: 1) The expenditures to acquire assets have been incurred; 2) The borrowing costs have
been incurred; 3) The acquisition, construction or production activities to make the asset ready for its
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
intended use or sale have begun.
(2) If the acquisition, construction or production of assets that meet the conditions for capitalization is
suspended abnormally, and the suspension lasts for more than 3 months, the capitalization of borrowing
costs will be suspended. The borrowing costs incurred during the suspension period will be recognized
as current expenses until the acquisition, construction or production of such assets is resumed.
(3) When the acquired, constructed or produced asset that meets the conditions for capitalization is ready
for its intended use or sale, the capitalization of borrowing costs will be stopped.
If a special loan is borrowed for the acquisition, construction or production of assets that meet the
capitalization conditions, the amount of interest expenses (including amortization of discounts or
premiums determined using the effective interest method) actually incurred in the current period of the
special loan shall be recognized as the interest amount to be capitalized after deduction of the interest
income obtained by depositing the unused loan funds in the bank or the income from temporary
investment. If general borrowings are occupied for the purpose of acquisition, construction or production
of assets that meet the capitalization conditions, the Company shall calculate and determine the amount
of interest of general borrowings to be capitalized based on the weighted average value of asset
expenditures over which the accumulated asset expenditure exceeds the special borrowings multiplied
by the capitalization rate of the occupied general borrowings.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(1). Useful life and the basis for determination, estimates, amortization method or review process
thereof
"¡Ì Applicable" "¡õ Not applicable"
are initially measured at cost.
their useful lives according to the expected realization mode of economic benefits relating to such assets,
and where the expected realization mode cannot be reliably determined, the assets shall be amortized
using the straight-line method. The details are listed below:
             Item                        Useful life and basis for determination            Amortization method
                             The useful life is determined as 50 years based on the
Land use rights                                                                           Straight Line Method
                             property right registration period
                             The useful life is determined as 2 - 10 years based on the
Software                                                                                  Straight Line Method
                             expected beneficial period
                             The useful life is determined as 10 years based on the
Proprietary technologies                                                                  Straight Line Method
                             expected beneficial period
Emission permit              The useful life is determined as 20 years based on the       Straight Line Method
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                              expected beneficial period
The Company does not amortize intangible assets with indefinite useful lives, and the Company reviews
the useful lives of these intangible assets in each accounting period.
(2). Adscription ranges of expenditures on research and development and relevant accounting
treatment
"¡Ì Applicable" "¡õ Not applicable"
(1) Personnel and labor costs
Personnel and labor costs cover the wages and salaries of the Company's R&D personnel, basic
endowment insurance premiums, basic medical insurance premiums, unemployment insurance
premiums, work-related injury insurance premiums, maternity insurance premiums and housing
provident funds, as well as labor costs for external R&D personnel.
For R&D personnel serving multiple R&D projects at the same time, the labor costs are confirmed based
on the working hours records of the R&D personnel of each R&D project provided by the management
department of the Company, and are distributed among different R&D projects on a proportional basis.
For personnel directly engaged in R&D activities and external R&D personnel engaged in non-R&D
activities at the same time, the Company will distribute the actual personnel and labor costs incurred
among R&D expenses and production and operation expenses based on working hours records of R&D
personnel in different positions by adopting reasonable methods such as the proportion of actual working
hours.
(2) Direct investment costs
Direct investment costs refer to the relevant expenses actually incurred by the Company for the
implementation of R&D activities, including: 1) the cost of materials, fuel and power directly consumed;
trial production, the purchase cost of samples, prototypes and general testing methods that do not
constitute fixed assets, and the inspection cost of trial products; 3) the operation and maintenance,
adjustment, inspection, testing and overhaul of instruments and equipment for R&D activities.
(3) Depreciation expense and long-term deferred expenses
Depreciation expense represents the depreciation expense of instruments, equipment and buildings in
use used in R&D activities.
For instruments, equipment and buildings in use used both in R&D activities and non-R&D activities,
the necessary records shall be kept on the use of such instruments, equipment and buildings in use, and
the actual depreciation expense incurred is allocated between R&D expenses and production and
operating expenses by reasonable methods, with reference to factors such as actual working hours and
usable area.
Long-term deferred expenses represent the long-term deferred expenses in the process of reconstruction,
modification, decoration and repair of R&D facilities, which are aggregated according to actual
expenditures and amortized in equal installments over a specified period of time.
(4) amortization expense of intangible assets
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The amortization costs of intangible assets mean that of software, proprietary technology and land used
for research and development activities.
(5) Other expenses
Other expenses refer to expenses other than those mentioned above that are directly related to the R&D
activities, including information costs for technical books, data translation fees, expert consultation fees,
high-tech research and development insurance premiums, search, demonstration, review, appraisal and
acceptance fees of R&D results, intellectual property rights application fees, registration fees, agency
fees, conference fees, travel costs, communication fees, etc.
the current period when incurred. Expenditures incurred during the development phase of internal
research and development projects shall be recognized as intangible assets if the following conditions
are all met simultaneously: (1) It is technically feasible to complete the intangible asset so that it can be
used or sold; (2) There is intention to complete the intangible asset for use or sales; (3) The methods for
intangible assets to generate economic benefits are useful, and there is a potential market for the
products manufactured by applying the intangible assets or for the intangible assets themselves (for
intangible assets to be used internally, the usefulness can be proved); (4) Adequate technical, financial
and other resources are available to finish the development of the intangible assets and use or sell the
intangible assets; (5) The expenditure attributable to the intangible asset during its development phase
can be measured reliably.
"¡Ì Applicable" "¡õ Not applicable"
For long-term equity investments, investment properties measured using the cost model, fixed assets,
construction in progress, right-of-use assets, intangible assets with limited useful lives and other
long-term assets, where there are indications of impairment at the balance sheet date, the recoverable
amount shall be estimated. For goodwill arising from a business combination or intangible assets with
indefinite useful lives, regardless of whether there are indications of impairment, an impairment test
shall be conducted every year. Goodwill shall, together with the related asset group or combination of
asset groups, be subject to the impairment test.
If the recoverable amount of any of the above-mentioned long-term assets is lower than its book value,
the provision for assets impairment shall be recognized according to the difference and recorded in profit
or loss for the current period.
"¡Ì Applicable" "¡õ Not applicable"
Long-term amortized expenses refer to expenses that have been paid and whose amortization period is
more than 1 year (excluding 1 year). Long-term amortized expenses are recorded at the actual amounts
incurred and amortized evenly over the benefit period or specified period. If a long-term amortized
expense item does not bring benefits over the subsequent accounting periods, the amortized value of the
item that has not been amortized shall be fully transferred to profit or loss for the current period.
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"¡Ì Applicable" "¡õ Not applicable"
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the fulfillment of performance obligations and clients' payment. The contractual
assets and liabilities under the same contract are shown on a net basis after mutual offset.
The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.,
depending only on the passage of time) as a receivable and the right to receive consideration for a
commodity transferred to a client (depending on any factor other than the passage of time) as a contract
asset.
The obligation to transfer goods to a client, for which consideration has been received or is receivable
from the client, is shown as a contractual liability.
(1). Accounting treatment for short-term compensation
"¡Ì Applicable" "¡õ Not applicable"
In the accounting period in which employees have rendered services, the Company recognizes the
short-term employee benefits actually incurred as a liability and charges to profit or loss for the current
period or the cost of related assets.
(2). Accounting treatment for post-employment benefits
"¡Ì Applicable" "¡õ Not applicable"
Post-employment benefits are divided into defined contribution plans and defined benefit plans.
(1) During the accounting period in which employees have rendered services, the Company recognizes
the contributions to be paid according to the defined contribution plans as a liability and charges to profit
or loss for the current period or the cost of related assets.
(2) The accounting treatment of defined benefit plans generally covers the following steps:
unit credit method to estimate related demographic variables and financial variables, measure the
obligations under the defined benefit plans and determine the periods to which the obligations are
attributable. Furthermore, the obligations under the defined benefit plans shall be discounted to
determine the present value of the defined benefit plan obligations and the current service cost;
defined benefit plan obligations from the fair value of the defined benefit plan assets shall be recognized
as a net liability or net asset of the defined benefit plan. The net asset of the defined benefit plan shall be
measured at the lower of the surplus in the defined benefit plan and the asset ceiling.
recognized as the cost of service, the net interest on net liabilities or assets of defined benefit plans and
the changes resulting from the remeasurement of net liabilities or assets of defined benefit plans. The
cost of service and the net interest on net liabilities or assets of defined benefit plans are recorded in
profit or loss for the current period or the cost of related assets, while the changes resulting from the
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remeasurement of net liabilities or assets of defined benefit plans are included in other comprehensive
income and shall not be transferred back to profit or loss in subsequent accounting periods. However, the
amounts recognized as other comprehensive income may be transferred within the scope of equity.
(3). Accounting treatment for termination benefits
"¡Ì Applicable" "¡õ Not applicable"
Termination benefits provided to employees are recognized as an employee benefit liability and charged
to profit or loss for the current period at the earlier of the following dates: (1) The Company cannot
unilaterally withdraw the offer of termination benefits because of an employment termination plan or a
curtailment proposal; (2) The Company recognizes costs or expenses related to the reconstructing that
involves the payment of termination benefits.
(4). Accounting treatment of other long-term employee benefits
"¡Ì Applicable" "¡õ Not applicable"
Other long-term employee benefits provided to employees are accounted for in accordance with the
requirements relating to defined contribution plans if the conditions for classifying as a defined
contribution plan are met and otherwise are accounted for in accordance with the requirements relating
to defined benefit plans. To simplify the relevant accounting treatment process, the employee benefit
costs incurred are recognized as the cost of service, the net interest on net liabilities or assets of other
long-term employee benefits and the changes resulting from the remeasurement of net liabilities or
assets of other long-term employee benefits. The total net amount is included in profit or loss for the
current period or the cost of related assets.
"¡Ì Applicable" "¡õ Not applicable"
matters, product quality assurance, loss contract, and other contingencies as a present obligation of the
Company when it is probable that the performance of the obligation will result in an outflow of
economic benefits from the Company and the amount of the obligation can be measured reliably, as a
provision for liabilities.
expenditures required to meet the relevant present obligations and reviews the carrying amount of the
provision for liabilities at the balance sheet date.
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
Pursuant to the relevant standards for financial instruments and the Regulations on Accounting
Treatment for Perpetual Bonds (CK [2019] No. 2), the Company classifies financial instruments issued
by it, such as preferred shares/perpetual bonds (e.g., long-term medium-term notes with embedded
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
options)/warrants/convertible corporate bonds, or their components as financial assets, financial
liabilities or equity instruments at initial recognition based on the contractual terms of the issued
financial instruments and their economic substance rather than their legal form, in conjunction with the
definitions of financial assets, financial liabilities, and equity instruments.
At the balance sheet date, for financial instruments classified as equity instruments, their interest
expenses or dividend distributions are treated as profit distributions of the Company, and their
repurchase or cancellation is accounted for as changes in equity; for financial instruments classified as
financial liabilities, their interest expenses or dividend distributions are accounted for as borrowing costs,
and gains or losses arising from their repurchase or redemption are recognized in profit or loss for the
period.
(1). Disclosure of accounting policies used in revenue recognition and measurement by business
type
"¡Ì Applicable" "¡õ Not applicable"
At the commencement date of a contract, the Company performs an assessment of the contract,
identifies the individual performance obligation contained in the contract, and determines whether the
individual performance obligation is performed within a certain period of time or at a certain point in
time.
A performance obligation is satisfied within a certain period of time when one of the following
conditions is met; otherwise, the performance obligation is satisfied at a certain point in time: (1) the
client obtains and consumes the economic benefits brought by the performance of the company while
the company performs; (2) the client is able to control the goods under construction during the
performance of the Company; (3) Commodities produced in the course of the Company's performance
have an irreplaceable use and the Company is entitled to collect payments for the part of performance
that has been completed so far during the entire contract period.
For performance obligations performed over a period of time, the Company recognizes revenue based on
the progress of the performance over that period of time. When the performance progress cannot be
reasonably determined, if the costs incurred are expected to be compensated, revenue is recognized
based on the number of costs incurred until the performance progress can be reasonably determined. For
performance obligations performed at a certain point in time, revenue is recognized at the point in time
when the client obtains control of the related goods or services. In determining whether the client has
obtained control of the commodity, the Company considers the following indicators: (1) the Company
has a present collection right in respect of the commodity, i.e. the client has a present payment obligation
in respect of the commodity; (2) the Company has transferred the legal ownership of the commodity to
the client, i.e. the client has owned the legal ownership of the commodity; (3) The Company has
physically transferred the commodity to the client, i.e. the client has physically occupied the commodity;
(4) the Company has transferred the principal risks and rewards of ownership of the commodity to the
client, i.e. the client has obtained the principal risks and rewards of ownership of the commodity; (5) the
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client has accepted the commodity; (6) Other indicators that the client has obtained control of the
commodity.
(2). Adoption of different business models for similar business types involves different revenue
recognition methods and measurement approaches
"¡Ì Applicable" "¡õ Not applicable"
Revenue measurement principles
(1) The Company measures revenue at the transaction price allocated to the individual performance
obligation. The transaction price is the amount of consideration to which the Company is expected to be
entitled to collect for the transfer of goods or services to the client, excluding amounts received on
behalf of third parties and amounts expected to be returned to the client.
(2) Where there is a variable consideration in the contract, the Company determines the best estimate of
the variable consideration based on the expected value or the amount that is most likely to occur, but the
transaction price that contains the variable consideration does not exceed the amount by which it is
highly probable that a significant reversal of the cumulative revenue recognized will not occur when the
relevant uncertainty is eliminated.
(3) Where there is a significant financing component in the contract, the Company determines the
transaction price based on the amount payable that is assumed to be paid in cash when the client obtains
control of the goods or services. The difference between the transaction price and the contract
consideration is amortised using the effective interest method over the contract period. At the
commencement date of the contract, if the company expects the client to obtain control of the goods or
services within one year of the customer paying the price, it does not consider the significant financing
component in the contract.
(4) If the contract contains two or more performance obligations, the Company shall, on the
commencement date of the contract, allocate the transaction price to the individual performance
obligation based on the relative proportion of the individual selling prices of the commodities promised
by the individual performance obligation.
Specific methods of revenue recognition
The Company mainly engages in the sales of forklifts and parts, which represent performance
obligations satisfied at a point in time. Domestic sales revenue is recognized when the Company delivers
the products to the buyer as agreed in the contract, receives the payment or obtains the right to payment,
and it is probable that the associated economic benefits will flow into the Company. Export sales
revenue is recognized when the Company completes customs clearance as agreed in the contract,
receives a bill of lading, receive the payment for goods or obtains the right to payment, and it is probable
that the associated economic benefits will flow into the Company.
"¡Ì Applicable" "¡õ Not applicable"
The Company presents contract assets or contract liabilities in the balance sheet based on the
relationship between the fulfillment of performance obligations and clients' payment. The contractual
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assets and liabilities under the same contract are shown on a net basis after mutual offset.
The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.,
depending only on the passage of time) as a receivable and the right to receive consideration for a
commodity transferred to a client (depending on any factor other than the passage of time) as a contract
asset.
The obligation to transfer goods to a client, for which consideration has been received or is receivable
from the client, is shown as a contractual liability.
"¡Ì Applicable" "¡õ Not applicable"
able to meet the conditions attached to the government grant; (2) The Company is able to receive
government grants. Where government grants are Cash and bank balances, they are measured at the
amount received or receivable. Government grants that are non-Cash and bank balances are measured at
fair value; Where the fair value cannot be reliably obtained, the non-Cash and bank balances shall be
measured at the nominal amount.
Government documents provide that government grants used to purchase, build or otherwise forming
long-term assets are classified as government grants related to the assets. If the government documents
are not clear, the judgment shall be based on the basic conditions necessary to obtain the grant, and the
government grant whose basic conditions are to purchase, build or otherwise form long-term assets shall
be deemed as the government grant related to the asset. Government grants relating to assets offset
against the carrying amount of the related assets or are recognized as deferred income. Where
government grants relating to assets are recognized as deferred income, they are credited to profit or loss
over the useful life of the relevant assets in a reasonable and systematic manner. Government grants
measured at nominal amounts are credited directly to profit or loss for the current period. Where the
relevant asset is sold, transferred, scrapped or damaged before the end of its useful life, the undistributed
balance of the relevant deferred income is transferred to the profit or loss of the current period in which
the asset is disposed of.
Government grants other than those relating to assets are classified as income-related government grants.
For government grants that contain both asset-related and revenue-related components, those that are
difficult to distinguish between asset-related and income-related are classified as income-related
government grants in their entirety. Government grants relating to income that compensate for related
costs, expenses or losses in subsequent periods are recognized as deferred income, and are credited to
profit or loss or reduced to related costs in the current period in which the related costs, expenses or
losses are recognized; Those used to compensate the related costs or losses incurred are directly included
in the current profit or loss or offset against the related costs.
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
or offset against related costs and expenses in accordance with the substance of the economic business.
Government grants that are not related to the Company's daily activities are included in the
non-operating revenue and expenses.
(1) If the Ministry of Finance allocates the fund for interest subsidy to the lending bank, and the lending
bank provides the loan to the Company at the preferential interest rate, the Company accounts for the
loan at the actual amount of the loan received, and calculates the borrowing costs based on the principal
and the preferential interest rate of the loan.
(2) When the government directly allocates the interest subsidy funds to the company, the corresponding
subsidy amount is deducted from the relevant borrowing costs.
"¡Ì Applicable" "¡õ Not applicable"
between the carrying amount of an asset or liability and its tax basis (or the difference between the
carrying amount of an item that is not recognized as an asset or liability and the tax basis if its tax basis
can be determined in accordance with the provisions of the tax law) at the tax rates applicable in the
period in which the asset is expected to be recovered or the liability is settled.
likely to be obtained and deducted from deductible temporary difference. On the balance sheet date,
deferred income tax assets that have not been recognized in previous accounting periods shall be
recognized if there is conclusive evidence that sufficient taxable income is likely to be obtained in the
future period to offset deductible temporary differences.
probable that sufficient taxable income will not be available in future periods to offset the benefits of the
deferred income tax assets, the carrying value of the deferred income tax assets is written down. The
amount written down is reversed when it is probable that sufficient taxable income will be available.
income tax expense or earnings, but do not include income tax arising from (1) business combination; (2)
Transactions or events recognized directly in owner's equity.
offsetting where all the following conditions are met: (1) It has the statutory right to offset current tax
assets against current tax liabilities; (2) The deferred tax assets and deferred tax liabilities are related to
the income tax levied by the same tax administration department on the same taxpayer or related to
different taxpayers, but during any future period in which important deferred tax assets or liabilities are
reversed, the taxpayers involved have the intention to offset the current tax assets against the current tax
liabilities, or acquire assets and settle liabilities concurrently.
"¡Ì Applicable" "¡õ Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Basis for determination of simplified treatment of and accounting treatment for short-term leases
and leases of low-value assets as lessee
"¡Ì Applicable" "¡õ Not applicable"
At the commencement date of the lease term, the Company considers a lease that has a lease term of not
more than 12 months and does not contain a purchase option as a short-term lease; Leases that have a
lower value when the individual leased asset is an entirely new asset are considered to be leases of
low-value assets. Where the Company subleases or expects to sublease the leased asset, the original
lease is not deemed as a lease of low-value assets.
For all short-term leases and leases of low-value assets, the Company includes the amount of lease
payments into the relevant asset cost or current profit and loss according to the straight-line method
during each period of the lease term.
In addition to the short-term leases and leases of low-value assets with simplified treatment described
above, the Company recognizes right-of-use assets and lease liabilities for leases at the commencement
date of the lease term.
(1) Right-of-use assets
Right-of-use assets are initially measured at cost, which includes: 1) the amount initially measured for
the lease liability; 2) the number of lease payments paid on or before the commencement date of the
lease term, if there is a lease incentive, less the amount of the lease incentive already enjoyed; 3) initial
direct costs incurred by the lessee; 4) the costs that the lessee expects to incur to dismantle and remove
the leased asset, restore the site on which the leased asset is located, or restore the leased asset to the
condition agreed upon in the lease terms.
The Company depreciates the right-of-use assets on a straight-line basis. If it is reasonably certain that
the ownership of assets leased will be obtained at the end of the lease term, the Company conducts
depreciation during the remaining useful life of the leased assets. Otherwise, depreciation is conducted
during the lease term or the remaining useful life of the leased assets, whichever is shorter.
(2) Lease liabilities
At the commencement date of the lease term, the Company recognizes the present value of the unpaid
lease payments as the lease liabilities. The present value of lease payments is calculated using the
interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease cannot be
determined, the corporate incremental borrowing rate is used as the discount rate. The difference
between the lease payments and their present value is treated as an unrecognized finance charge. Interest
expense is recognized in profit or loss for each lease term period at the discount rate used to recognize
the present value of the lease payments. Variable lease payments that are not included in the
measurement of lease liabilities are included in current profit or loss when they actually occur.
After the commencement date of the lease term, when there is a change in the amount of substantially
fixed payments, a change in the amount expected to be payable for the remaining value of the guarantee,
a change in the index or rate used to determine the amount of the lease payments, a change in the
outcome of an assessment of a purchase option, a renewal option or a termination option, or a change in
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
the actual exercise, the Company remeasures the lease liability based on the present value of the changed
lease payments and adjusts the carrying value of the right-of-use asset accordingly. If the carrying value
of the right-of-use asset has been reduced to zero but the lease liability still needs to be further reduced,
the remaining amount is included in the current profit or loss.
The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.
If the transfer of an asset in a sale-and-leaseback transaction is a sale, the Company measures the
right-of-use asset resulting from the sale-and-leaseback at the portion of the original asset's carrying
value that relates to the right-of-use acquired through the leaseback, and recognizes a gain or loss related
to the right transferred to the lessor only.
If the transfer of an asset in a sale-and-leaseback transaction is not a sale, the Company continues to
recognize the transferred asset and, at the same time, recognizes a financial liability equal to the transfer
proceeds and accounts for the financial liability in accordance with Accounting Standards for Business
Enterprises No. 22 - Recognition and Measurement of Financial Instruments.
Lease classification criteria and accounting treatment as lessor
"¡Ì Applicable" "¡õ Not applicable"
At the commencement date of a lease, the Company classifies a lease as a finance lease in which
substantially all the risks and rewards associated with ownership of the leased asset are transferred, with
the exception of an operating lease.
(1) Operating leases
The Company recognizes lease receipts as rental income on a straight-line basis over each period of the
lease term, capitalises the initial direct costs incurred and allocates them on the same basis as rental
income recognition and is credited to profit or loss in installments. Variable lease payments relating to
operating leases obtained by the Company that are not included in the lease receipts are included in
profit or loss as they actually occur.
(2) Finance lease
At the commencement date of the lease term, the Company recognizes the finance lease payments
receivable based on the net investment in the lease (the sum of the unguaranteed residual value and the
present value of the lease receipts outstanding at the commencement date discounted at the interest rate
implicit in the lease) and derecognizes the finance lease asset. The Company calculates and recognizes
interest income at the interest rate implicit in the lease for each period of the lease term.
Variable lease payments received by the Company that are not included in the measurement of net lease
investment are included in profit or loss as they actually occur.
The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in
accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.
If the transfer of an asset in a sale-and-leaseback transaction is a sale, the Company accounts for the
purchase of assets in accordance with other applicable Accounting Standards for Business Enterprises
and accounts for the lease of assets in accordance with Accounting Standards for Business Enterprises
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
No. 21 - Leases.
If the transfer of an asset in a sale-and-leaseback transaction is not a sale, the Company does not
recognize the transferred asset, but recognizes a financial asset equal to the transfer proceeds and
accounts for the financial asset in accordance with Accounting Standards for Business Enterprises No.
"¡Ì Applicable" "¡õ Not applicable"
(1) Categories of hedges include fair value hedge/cash flow hedge/hedge of a net investment in a foreign
operation.
(2) Hedges that meet the following criteria are accounted for using hedge accounting: 1) the hedging
relationship consists solely of eligible hedging instruments and hedged items; 2) at the inception of the
hedge, the Company formally designates the hedging instruments and hedged items, and documents in
writing the hedging relationship as well as the risk management strategy and objectives for undertaking
the hedge; 3) the hedging relationship meets the hedge effectiveness requirements.
A hedging relationship is deemed to meet the hedge effectiveness requirements only if all of the
following criteria are satisfied: 1) there is an economic relationship between the hedged item and the
hedging instrument; 2) the effect of credit risk does not dominate the value changes that result from that
economic relationship; 3) the hedge ratio of the hedging relationship is the same as that resulting from
the quantity of the hedged item that the Company actually hedges and the quantity of the hedging
instrument that the Company actually uses to hedge that quantity of hedged item. However, that
designation shall not reflect an imbalance between the weightings of the hedged item and the hedging
instrument.
The Company assesses on an ongoing basis, both at the inception of the hedge and in subsequent periods,
whether the hedging relationship meets the hedge effectiveness requirements. If a hedging relationship
no longer meets the hedge effectiveness requirements due to changes in the hedge ratio, but the risk
management objective for designating the hedging relationship has not changed, the Company will
rebalance the hedging relationship.
(3) Accounting treatment for hedges
¢Ù Gains or losses arising from hedging instruments are recognized in profit or loss for the period. If the
hedging instrument is to hedge a non-trading equity instrument (or a component thereof) to be measured
at fair value through other comprehensive income, the gains or losses arising from the hedging
instruments are recognized other comprehensive income.
¢Ú Gains or losses arising from risk exposure of hedged items are recognized in profit or loss for the
period, while adjusting the carrying amount of recognized hedged items not measured at fair value. If the
hedged item is a financial asset (or a component thereof) classified as measured at fair value through
other comprehensive income in accordance with Article 18 of the Accounting Standards for Business
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the gains or losses arising
from the hedged risk exposure are recognized in profit or loss for the period, and its carrying amount
will be not adjusted as it has been measured at fair value; if the hedged item is a non-trading equity
instrument investment (or a component thereof) designated by the Company to be measured at fair value
through other comprehensive income, the gains or losses arising from the hedged risk exposure are
recognized in other comprehensive income, and its carrying amount will be not adjusted as it has been
measured at fair value.
If the hedged item is an unrecognized firm commitment (or a component thereof), the cumulative change
in fair value attributable to the hedged risk after the designation of the hedging relationship is recognized
as an asset or liability, with the related gains or losses recognized in profit or loss in each relevant period.
When fulfilling the firm commitment to acquire an asset or assume a liability, the initial recognition
amount of such asset or liability is adjusted to include the cumulative change in the fair value of the
hedged item that was recognized.
If the hedged item is a financial instrument (or a component thereof) measured at amortized cost, the
adjustment made by the Company to the carrying amount of the hedged item is amortized based on the
recalculated effective interest rate at the date amortization begins, and recognized in profit or loss for the
period. If the hedged item is a financial asset (or a component thereof) classified as measured at fair
value through other comprehensive income in accordance with Article 18 of the Accounting Standards
for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments, the
cumulative recognized hedging gains or losses are amortized in the same manner and recognized in
profit or loss for the period, but the carrying amount of the financial asset (or a component thereof) will
not be adjusted.
¢Ù The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge
is recognized in other comprehensive income as a cash flow hedge reserve, while the ineffective portion
is recognized in profit or loss for the period. The amount of the cash flow hedge reserve is recognized at
the lower of the following (in absolute amounts): A. the cumulative gain or loss on the hedging
instrument from inception of the hedge; B. the cumulative change in present value of the expected future
cash flow of the hedged item from inception of the hedge.
¢Ú The hedged item is an anticipated transaction, and if that anticipated transaction subsequently results
in the recognition of a non-financial asset or non-financial liability by the Company, or when the
anticipated transaction for non-financial assets and liabilities forms a firm commitment eligible for fair
value hedge accounting, the amount of the cash flow hedge reserve originally recognized in other
comprehensive income is removed and included in the initial recognition amount of that asset or
liability.
¢Û For other cash flow hedges, the amount of the cash flow hedge reserve originally recognized in other
comprehensive income is removed in the same period when the hedged anticipated transaction affects
the profit or loss, and recognized in profit or loss for the period.
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
The portion of the gain or loss arising from hedging instrument that is determined to be an effective
hedge is recognized in other comprehensive income and subsequently reclassified to current profit or
loss upon disposal of the foreign operation; the ineffective portion of the gain or loss arising from
hedging instrument is recognized in profit or loss for the period.
For share repurchases due to capital reduction or employee incentives, the actual amount paid is
accounted for as treasury shares and registered for future reference. If the repurchased shares are
canceled, the difference between the total par value of the canceled shares calculated based on the face
value of the canceled shares and the number of canceled shares and the actual amount paid for the
repurchase will be offset against the capital reserve. If the capital reserve is insufficient, the retained
earnings will be offset against. If the repurchased shares are granted to employees of the Company as
equity-settled share-based payment, when the payment is received from the employees for exercise of
their right to purchase the Company¡¯s shares , the carrying amount of the treasury shares allocated to
employees and the cumulative capital reserve (other capital reserves) recognized during the vesting
period shall be de-recognized, while any difference arising from this transaction shall be adjusted against
the capital reserve (share premium).
Please refer to Section V Significant Matters for ¡°Analysis and Explanation of the Reasons and Impact
of Changes in Accounting Policies, Accounting Estimates, or Corrections of Significant Accounting
Errors¡±
adjustments to the financial statements at the beginning of the first application year
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Main tax types and rates
"¡Ì Applicable" "¡õ Not applicable"
          Taxes                                       Tax basis                                    Tax rate
                     The output tax is calculated based on the income from sales of goods
                     and taxable services calculated in accordance with the provisions of the
Value-added tax                                                                                    [Note 1]
                     tax law. After deducting the deductible input tax for the current period,
                     the difference is the value-added tax payable.
                     If levied on an ad valorem basis, calculated and paid at 1.2% of the
                     residual value after deducting 30% from the original value of the
Property tax                                                                                       1.2%,12%
                     property; If levied on the rental, calculated and paid at 12% of the rental
                     income
Urban maintenance    Actual turnover tax paid                                                      [Note 2]
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
and construction tax
Education surcharge    Actual turnover tax paid                                                        3%
Local education
                       Actual turnover tax paid                                                        2%
surcharge
Business income tax    Taxable amount of income                                                   15%-29.66%
[Note 1] The subsidiary Hangcha Europe GmbH is subject to a business income tax rate of 19%. The
subsidiary Hangcha Forklift Canada Inc. is subject to a business income tax rate of 14.975%. The
subsidiary Hangcha Netherlands B.V. is subject to a business income tax rate of 21%. The subsidiaries
Hangcha (Thailand) Co., Ltd. and Hangcha Group Manufacturing (Thailand) Co., Ltd. are subject to a
business income tax rate of 7%. The subsidiary HC Forklift Australia Pty Ltd is subject to a business
income tax rate of 10%. The subsidiary Hangcha Brasil Ltda is subject to a business income tax rate of
subsidiaries Hangcha Japan Co., Ltd. and Hangcha (Malaysia) Sdn. Bhd. are subject to a business
income tax rate of 10%. The subsidiary Hangcha Europe Rental & Sales is subject to a business income
tax rate of 20%. The subsidiary Hangcha Forklift Vietnam Co., Ltd. is subject to a business income tax
rate of 8%. The subsidiary Hangcha Middle East General Trading FZE is subject to a business income
tax rate of 5%. The company and its other subsidiaries are subject to a business income tax rate of 13%
on sales of goods and the provision of taxable services, 6% on sales services, and 9% on income from
real estate leasing (5% on income from real estate acquired before 30 April 2016 based on the simplified
method of tax calculation). Exported goods are eligible for the "exemption, deduction, and refund"
policy, with a tax rebate rate of 13% for complete vehicles and major components, and 0% for certain
batteries and tires.
[Note 2] The subsidiaries Shanghai Hangcha Forklift Sales Co., Ltd., Zhongshan Hangcha Forklift Co.,
Ltd., Ningxia Hangcha Forklift Sales Co., Ltd., Zhanjiang Hangcha Forklift Co., Ltd., Inner Mongolia
Hangcha Forklift Sales Co., Ltd., Anhui Hangcha Forklift Sales Co., Ltd., Beijing Hangcha Forklift Co.,
Ltd., Fujian Hangcha Forklift Co., Ltd. and Zhejiang Zhichujia Material Handling Equipment Co., Ltd.
pay 5% of the payable goods turnover tax. The company and its other subsidiaries pay 7% of the payable
goods turnover tax.
Disclosure of details when taxpayers are subject to different enterprise income tax rates
"¡Ì Applicable" "¡õ Not applicable"
                         Name of tax payer                                           Income tax rate
The Company and 13 subsidiaries and sub-subsidiaries, including
Hangzhou Forklift Sheet Welding Co., Ltd.
HANGCHA NETHERLANDS B.V.                                                                      15%, 25.80% [Note 1]
HC FORKLIFT AMERICA CORPORATION                                                                    23.50% [Note 2]
HANGCHA FORKLIFT CANADA INC.                                                                       26.50% [Note 3]
HANGCHA EUROPE GMBH                                                                                29.66% [Note 4]
HANGCHA (THAILAND) CO.LTD. and HANGCHA GROUP
MANUFACTURING (THAILAND) CO.LTD.
HANGCHA BRASIL LTDA.                                                                            15%, 25% [Note 6]
PT HANGCHA INDONESIA FORKLIFT                                                                   20%, 25% [Note 7]
HANGCHA JAPAN CO.LTD.                                                                         15%, 23.20% [Note 8]
HANGCHA (MALAYSIA) SDN.BHD.                                                                           24% [Note 9]
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
HANGCHA FORKLIFT VIETNAM CO.LTD.                                                              20% [Note 10]
HANGCHA MIDDLE EAST GENERAL TRADING FZE                                                        0% [Note 11]
Taizhou Hangcha Forklift Sales Co., Ltd. and 49 subsidiaries and
sub-subsidiaries
Other taxpayers other than those mentioned above                                                        25%
[Note 1] The subsidiary HANGCHA NETHERLANDS B.V is subject to corporate income tax in
accordance with the tax policies of the Netherlands where it is registered. The portion of taxable income
not exceeding EUR 395,000.00 is subject to the tax rate of 15%, and the portion exceeding EUR
[Note 2] The subsidiary HC FORKLIFT AMERICA CORPORATION is subject to corporate income
tax in accordance with the tax policies of the USA where it is registered, including federal tax of 21%
and North Carolina tax of 2.50%
[Note 3] The subsidiary HANGCHA FORKLIFT CANADA INC. is subject to corporate income tax in
accordance with the tax policies of Canada where it is registered, including federal tax of 15% and
Quebec income tax of 11.50%
[Note 4] The subsidiary HANGCHA EUROPE GMBH is subject to corporate income tax in accordance
with the tax policies of Germany where it is registered, including corporate income tax of 15%,
solidarity surcharge of 0.83% and business tax of 13.83%
[Note 5] The subsidiaries Hangcha (Thailand) Co., Ltd. and Hangcha Group Manufacturing (Thailand)
Co., Ltd. are subject to corporate income tax at a rate of 20% in accordance with the tax policies of
Thailand where it is registered
[Note 6] The subsidiary HANGCHA BRASIL LTDA. is subject to corporate income tax in accordance
with the tax policies of Brazil where it is registered. The tax rate is 15% for the portion of the
Company¡¯s profit less than BRL 240,000, and 25% for the portion of the Company¡¯s profit exceeding
BRL 240,000
[Note 7] The subsidiary PT HANGCHA INDONESIA FORKLIFT is subject to corporate income tax in
accordance with the tax policies of Indonesia, where it is registered. If the Company¡¯s annual turnover is
less than IDR 50 billion, the applicable tax rate is 20%; if more than IDR 50 billion, the applicable tax
rate is 25%
[Note 8] The subsidiary HANGCHA JAPAN CO. LTD. is subject to corporate income tax in accordance
with the tax policies of Japan where it is registered. The tax rate is 15% for the portion of taxable income
less than JPY 8 million, and the applicable tax rate is 23.20% for the portion of taxable income above
JPY 8 million
[Note 9] The subsidiary HANGCHA (MALAYSIA) SDN.BHD. is subject to corporate income tax at a
rate of 24% in accordance with the tax policies of MALAYSIA where it is registered
[Note 10] The subsidiary Hangcha Forklift Vietnam Co., Ltd. is subject to corporate income tax at a rate
of 20% in accordance with the tax policies of Vietnam where it is registered
[Note 11] The subsidiary Hangcha Middle East General Trading FZE is subject to corporate income tax
in accordance with the tax policies of the UAE where it is registered. The tax rate is 0% for taxable
income below AED 375,000, and 9% for taxable income above that amount
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
Relevant basis and explanations for the reduction and exemption of corporate income tax
Zhejiang Provincial Certification Agency in 2025 issued by the National High-Tech Enterprise
Certification Management Leading Group Office on December 19, 2025, the sub-subsidiary Zhejiang
Guozi Robotics Co., Ltd. has been certified as a high-tech enterprise, which remains valid for a period of
three years. Subject to the relevant regulations including the Corporate Income Tax Law, it is entitled to
a corporate income tax rate of 15% for national high-tech enterprises during the period from January 1,
period.
Zhejiang Provincial Certification Agency in 2023 issued by the National High-tech Enterprise
Certification Management Leading Group Office on December 28, 2023, the Company, Hangcha Group
Co., Ltd., and its subsidiaries Hangzhou Forklift Sheet Welding Co., Ltd., Hangzhou Forklift Mast Co.,
Ltd., Hangzhou Hangcha Electric Appliance Co., Ltd., Hangzhou Hangcha Machinery Equipment
Manufacturing Co., Ltd., Zhejiang Hangcha Guozi Robotics Co., Ltd., Hangzhou Hangcha Aerial
Equipment Co., Ltd., and Hangzhou Hangcha Precision Manufacturing Co., Ltd. have been certified as
high-tech enterprises, which remains valid for a period of three years. Subject to the relevant regulations
including the Corporate Income Tax Law, they are entitled to a corporate income tax rate of 15% for
national high-tech enterprises during the period from January 1, 2023 to December 31, 2025.
Consequently, the reduced income tax rate of 15% is applicable to this period.
Zhejiang Provincial Certification Agency in 2024 issued by the National High-tech Enterprise
Certification Management Leading Group Office on December 26, 2024, the subsidiaries Hangzhou
Hangcha Bridge Box Co., Ltd. and the sub-subsidiary Zhejiang Hangcha Okamura Intelligent
Technology Co., Ltd. have been certified as high-tech enterprises, which remains valid for a period of
three years. Subject to the relevant regulations including the Corporate Income Tax Law, they are
entitled to a corporate income tax rate of 15% for national high-tech enterprises during the period from
January 1, 2024 to December 31, 2026. Consequently, the reduced income tax rate of 15% is applicable
to this period.
Certified by Shaanxi Province in 2023 issued by the Shaanxi Province High-tech Enterprise Certification
Management Leading Group Office on July 31, 2023, the subsidiary Baoji Hangcha Engineering
Machinery Co., Ltd. has been certified as a high-tech enterprise, which remains valid for a period of
three years. Subject to the relevant regulations including the Corporate Income Tax Law, it is entitled to
a corporate income tax rate of 15% for national high-tech enterprises during the period from January 1,
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
period.
Zhejiang Provincial Certification Agency in 2025 issued by the National High-tech Enterprise
Certification Management Leading Group Office on December 19, 2025, the subsidiaries Hangzhou
Hangcha Kangli Forklift Attachments Co., Ltd. and Hangzhou Hangcha Cab Co., Ltd. have been
certified as high-tech enterprises, which remains valid for a period of three years. Subject to the relevant
regulations including the Corporate Income Tax Law, they are entitled to a corporate income tax rate of
Consequently, the reduced income tax rate of 15% is applicable to this period.
Implementing the Preferential Income Tax Policies for Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 [2021] of the Ministry of Finance and
the State Taxation Administration) and the Announcement of the Ministry of Finance and the State
Taxation Administration on the Relevant Tax and Fee Policies for Further Supporting the Development
of Micro and Small Enterprises and Individual Industrial and Commercial Households (Announcement
No. 12 [2023] of the Ministry of Finance and the State Taxation Administration), 49 subsidiaries and
sub-subsidiaries, including Taizhou Hangcha Forklift Sales Co., Ltd., have been qualified as micro and
small enterprises. For annual taxable income below RMB 3 million, a reduced income tax rate of 25% is
applicable to their taxable income, with corporate income tax levied at 20% (with an actual levy rate of
Administration on Tax and Fee Policies for Further Supporting the Development of Small and Micro
Enterprises and Individual Businesses (Announcement [2023] No. 12 of the Ministry of Finance and the
State Taxation Administration), from January 1, 2023 to December 31, 2027, the small-scale VAT
taxpayers, small low-profit enterprises and individual businesses are entitled to a 50% reduction in
resource tax (excluding water resource tax), urban maintenance and construction tax, property tax, urban
land use tax, stamp duty (excluding stamp duty on securities transactions), cultivated land occupation tax,
education surcharges and local education surcharges. The 49 subsidiaries and sub-subsidiaries of the
Company are eligible to enjoy a 50% reduction in the Construction Tax, the Educational Surcharge, and
the Local Educational Surcharge.
Taxation Administration on the Additional Value-added Tax Deduction Policy for Advanced
Manufacturing Enterprises (Announcement [2023] No. 43 of the Ministry of Finance and the State
Taxation Administration), from January 1, 2023, to December 31, 2027, the eligible advanced
manufacturing enterprises are permitted to claim an additional 5% deduction in their current deductible
input VAT against the VAT amount payable for the period. During the current period, this Company
Hangcha Group Co., Ltd. and its 14 subsidiaries including Hangzhou Forklift Sheet Welding Co., Ltd.
are entitled to this preferential policy.
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Ministry of Finance), the Company, Hangcha Group Co., Ltd., and its subsidiaries Hangzhou Hangcha
Aerial Equipment Co., Ltd., Hangzhou Hangcha Cab Co., Ltd. and Zhejiang Hangcha Guozi Robotics
Co., Ltd., and sub-subsidiaries Zhejiang Guozi Robot Technology Co., Ltd., Zhejiang Guozi Intelligent
Equipment Co., Ltd., Zhejiang Hangcha Okamura Intelligent Technology Co., Ltd. and Hefei Hanhe
Intelligent Logistics Technology Co., Ltd. enjoy the Preferential VAT Policies of Immediate Refund
upon Payment for the proportion of value-added tax on the sales of software products exceeding 3%.
Research and Development Institutions and Certifying Standard and Managing Measures for Software
Enterprises (Proposed), the sub-subsidiary Zhejiang Guozi Robotics Co., Ltd. has been recognized as a
software enterprise by the Economy and Information Technology Commission of Zhejiang Province.
Therefore, from the first profitable year onwards, the company is eligible for a ¡°two-year exemption and
three-year half reduction¡± policy for corporate income tax. The sub-subsidiary Zhejiang Guozi Robotics
Co., Ltd. has not yet begun to enjoy corporate income tax preferential policies.
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan   Currency:CNY
                    Item                                 Closing balance                   Opening balance
Cash on hand                                                           5932401.96                       1232590.16
Bank deposits                                                      4329553230.58                    4151444191.61
Other cash and bank balances                                          41733003.75                      30017831.55
Deposits with Finance Companies
                Total Amount                                       4377218636.29                    4182694613.32
Of which: Total amount of funds deposited
beyond China
.
Other notes:
Other cash and bank balances at the end of the period included guarantee deposits of RMB
of RMB 23,318,691.63, performance bonds of RMB 3,297,818.97, and deposits held in third-party
payment accounts of RMB 963,438.84.
"¡Ì Applicable" "¡õ Not applicable"
                                                                                     Unit: Yuan    Currency:CNY
                                                                                            Designated Reason and
               Item                         Closing balance         Opening balance
                                                                                                    Basis
Financial assets measured at fair
value and the changes are included
                                        The 2025 Annual Report of Hangcha Group Co., Ltd.
in current profits and losses
Including:
Wealth management products                                     100347215.23                      85755439.73                                           /
            Total Amount                                       100347215.23                      85755439.73                                           /
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                            Unit: Yuan          Currency:CNY
                     Item                                               Closing balance                              Opening balance
Foreign exchange derivatives [Note]                                                                                               1635304.53
               Total Amount                                                                                                       1635304.53
Other notes:
[Note] Foreign exchange derivative instruments have been adjusted from held-for-trading financial
assets to derivative financial assets in accordance with the Compilation of the Guidelines for the
Application of Enterprise Accounting Standards (2024).
(1). Notes Receivable Listed by Category
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                            Unit: Yuan          Currency:CNY
                Item                                             Closing balance                                   Opening balance
Bank acceptance bill
Commercial acceptance bills                                                        16088216.14                                        17251330.80
           Total Amount                                                            16088216.14                                        17251330.80
(2). Notes receivable pledged by the Company at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Notes receivable endorsed or discounted by the Company at the end of the period and not yet
due at the balance sheet date
"¡õ Applicable" "¡Ì Not applicable"
(4). Disclosure of notes receivable by bad debt accrual method
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                           Unit: Yuan        Currency: CNY
                                      Closing balance                                                       Opening balance
                  Book balance           Provision for bad debts                        Book balance           Provision for bad debts
 Category                                              Percentage    Book value                                             Percentage    Book value
                           Percentage                                                            Percentage
              Amount                     Amount       of Provision     Value        Amount                     Amount      of Provision     Value
                              (%)                                                                   (%)
                                                          (%)                                                                   (%)
Provision
made on a
portfolio
basis
Including:
Commercial
acceptance   16996771.97    100.00       908555.83        5.35       16088216.14   18247890.00    100.00       996559.20       5.46       17251330.80
bill
     Total
   Amount
Provision for bad debts made on an individual basis:
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡Ì Applicable" "¡õ Not applicable"
Items accrued in portfolio: Commercial acceptance bill
                                                                                  Unit: Yuan      Currency: CNY
                                                                 Closing balance
           Item
                                    Book balance              Provision for bad debts     Percentage of Provision (%)
Commercial acceptance
bill as a combination
        Total Amount                       16996771.97                        908555.83              5.35
Notes to the provision for bad debts by portfolio
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of notes receivable with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
(5). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                    Unit: Yuan       Currency: CNY
                                                    Amount of change during the period
                     Opening                                                                                Closing
    Category                            Make          Recovery or       Write-off or        Other
                     balance                                                                                balance
                                      provision        reversal         Cancellation       changes
Commercial
acceptance bill as      996559.20       -88003.37                                                           908555.83
a combination
  Total Amount          996559.20       -88003.37                                                           908555.83
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(6). Actual notes receivable written off during the period
"¡õ Applicable" "¡Ì Not applicable"
Of which significant write-offs of notes receivable
"¡õ Applicable" "¡Ì Not applicable"
Description of notes receivable write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                                           The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Disclosure by ageing
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                Unit: Yuan         Currency:CNY
                Ageing                                           Closing book balance                              Opening book balance
Within 1 year (including 1 year)                                               2752587865.98                                     2452222943.20
Subtotal within one year                                                       2752587865.98                                     2452222943.20
More than 3 years
More than 5 years                                                                    16152074.42                                         12408819.36
            Total Amount                                                           3155830532.91                                       2798745017.02
(2). Disclosure of notes receivable by bad debt accrual method
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                               Unit: Yuan       Currency: CNY
                                      Closing balance                                                         Opening balance
                 Book balance            Provision for bad debts                         Book balance           Provision for bad debts
                                                        Percentage                                                             Percentage
Category                                                              Book value                                                                 Book value
                           Percentage                        of                                    Percentage                       of
             Amount                       Amount                        Value         Amount                     Amount                            Value
                              (%)                        Provision                                    (%)                       Provision
                                                            (%)                                                                    (%)
Provision
for bad
debts
made on       7969168.28        0.25      7969168.28     100.00                       7945132.95        0.28       7945132.95   100.00
an
individual
basis
Provision
made on a
portfolio
basis
   Total
 Amount
Provision for bad debts made on an individual basis:
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                               Unit: Yuan       Currency: CNY
                                                                                   Closing balance
              Item                                                    Provision for bad       Percentage of                     Rationale for the
                                           Book balance
                                                                            debts             Provision (%)                        provision
Provision for bad debts
made on an individual basis
       Total Amount                               7969168.28                   7969168.28                100.00                             /
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡Ì Applicable" "¡õ Not applicable"
Items accrued in portfolio: Ageing combination
                                                                                                               Unit: Yuan       Currency: CNY
             Item                                                                    Closing balance
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
                                    Book balance             Provision for bad debts   Percentage of Provision (%)
Within 1 year                            2752587865.98                   137629393.31             5.00
More than 5 years                           14306431.74                    14306431.74           100.00
      Total Amount                       3147861364.63                   227941294.37             7.24
Description of the provision for bad debts by portfolio£º
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of accounts receivable with provision for bad
debts during the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency: CNY
                                                 Amount of change during the period
  Category      Opening balance                    Recovery or     Write-off or                      Closing balance
                                   Make provision                                   Other changes
                                                     reversal      Cancellation
Provision for
Individual           7945132.95            84035.33                     60000.00                         7969168.28
bad debt
Provision
made on a
portfolio
basis
    Total
  Amount
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(4). Accounts receivable actually written off during the current period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency:CNY
                         Item                                                Amount written off
Accounts receivable actually written off                                                                 2787278.07
Of which significant accounts receivable write-offs:
"¡õ Applicable" "¡Ì Not applicable"
Description of notes receivable write-off:
"¡õ Applicable" "¡Ì Not applicable"
                                           The 2025 Annual Report of Hangcha Group Co., Ltd.
(5). Accounts receivable with top five closing balances grouped by party in default
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                Unit: Yuan           Currency: CNY
                                                                                                      Percentage of total
                                                                              Total Ending
                                                                                                            accounts
                                                                               Balance of                                         Closing balance of
                 Closing balance of             Ending Balance of                                       receivable and
Unit name                                                                      Accounts                                           provision for bad
                 accounts receivable             Contract Assets                                       contract assets at
                                                                             Receivable and                                             debts
                                                                                                         the end of the
                                                                             Contract Assets
                                                                                                           period (%)
Customer
One
Customer
Two
Customer
Three
Customer
Four
Customer
Five
   Total
 Amount
Other notes:
None
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Contract Assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                Unit: Yuan           Currency: CNY
                                        Closing balance                                                        Opening balance
     Item                                Provision for                                                          Provision for
                  Book balance                                   Book value               Book balance                                   Book value
                                           bad debts                                                              bad debts
Warranty
deposits           215560611.77            25222321.73               190338290.04          171528001.84            21278991.60            150249010.24
receivable
   Total
  Amount
(2). Amount of and reasons for significant changes in the book value during the Reporting Period:
"¡õ Applicable" "¡Ì Not applicable"
(3). Disclosure of notes receivable by bad debt accrual method
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                               Unit: Yuan          Currency: CNY
                                       Closing balance                                                           Opening balance
                 Book balance             Provision for bad debts                           Book balance            Provision for bad debts
                                                        Percentage                                                                Percentage
Category                                                               Book value                                                               Book value
                            Percentage                       of                                       Percentage                       of
              Amount                      Amount                         Value           Amount                     Amount                        Value
                               (%)                       Provision                                       (%)                       Provision
                                                            (%)                                                                       (%)
Provision   215560611.77      100.00    25222321.73        11.70       190338290.04    171528001.84     100.00    21278991.60        12.41      150249010.24
                                      The 2025 Annual Report of Hangcha Group Co., Ltd.
made on a
portfolio
basis
  Total
 Amount
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡Ì Applicable" "¡õ Not applicable"
Items accrued in portfolio: Ageing combination
                                                                                          Unit: Yuan       Currency: CNY
                                                                     Closing balance
              Item
                                         Book balance             Provision for bad debts   Percentage of Provision (%)
Ageing combination                             215560611.77                     25222321.73            11.70
     Total Amount                              215560611.77                     25222321.73            11.70
Notes to the provision for bad debts by portfolio
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of contract assets with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
(4). Provision for bad debts on contract assets during the period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                          Unit: Yuan       Currency: CNY
                                                 Amount of change during the period
                                                  Recovery
                       Opening        Provision                                                           Closing
      Item                                        or reversal Write-offs/Reversals         Other                      Reason
                       balance        during the                                                          balance
                                                  during the     during the period        changes
                                        period
                                                    period
Provision for
impairment
by
combination
Total Amount          21278991.60     3943330.13                                                      25222321.73         /
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(5). Contract assets actually written off during the period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant contract assets written off
"¡õ Applicable" "¡Ì Not applicable"
Contract asset write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Receivables financing by category
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan   Currency: CNY
                  Item                           Closing balance                       Opening balance
Bank acceptance bill                                         472523678.61                          294961893.92
             Total Amount                                    472523678.61                          294961893.92
(2). Receivables financing pledged by the Company at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Receivables financing endorsed or discounted by the Company at the end of the period and
not yet due at the balance sheet date
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan    Currency: CNY
                                   Amounts derecognised at the end of the Amounts not derecognised at the end of
               Item
                                                 period                                the period
Bank acceptance bill                                     2292376609.36
           Total Amount                                  2292376609.36
(4). Disclosure of notes receivable by bad debt accrual method
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in the carrying amount of receivables financing due to loss provision
changes in the current period:
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
(5). Provision for bad debts
"¡õ Applicable" "¡Ì Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(6). Actual write-offs of receivables financing during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant receivables financing write-offs
"¡õ Applicable" "¡Ì Not applicable"
Description of write-off:
"¡õ Applicable" "¡Ì Not applicable"
(7). Increase and decrease in receivables financing during the period and changes in fair value
"¡õ Applicable" "¡Ì Not applicable"
(8). Other notes
"¡Ì Applicable" "¡õ Not applicable"
The acceptors of bankers' acceptance bills are commercial banks with a high credit standing. The
Company derecognises such bankers' acceptance bills that have been endorsed or discounted, as the
commercial banks have a high level of creditworthiness and the likelihood of non-payment of bankers'
acceptance bill at maturity is low. However, if such bills are not paid at maturity, the Company will still
be jointly and severally liable to the bearer in accordance with the provisions of the Bills of Exchange
Act.
(1). Prepayments by ageing
"¡Ì Applicable" "¡õ Not applicable"
                                                                                    Unit: Yuan   Currency: CNY
                              Closing balance                                   Opening balance
       Ageing
                       Amount              Percentage (%)                Amount             Percentage (%)
Within 1 year           413560377.91           96.25                      358224154.24          98.67
More than 3
years
 Total Amount               429678941.88          100.00                   363036264.12           100.00
A description of the reasons why prepayments aged more than one year and with significant amounts
have not been settled in a timely manner:
None
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(2). Prepayments with the top five ending balances aggregated by prepayment recipients
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan     Currency: CNY
                                                                             Percentage of total closing balance of
                Unit name                     Closing balance
                                                                                      prepayments (%)
Supplier I                                                 36116064.97                        8.41
Supplier II                                                26875981.49                        6.25
Supplier III                                               22936166.22                        5.34
Supplier IV                                                21660300.72                        5.04
Supplier V                                                 20428236.12                        4.75
               Total Amount                               128016749.52                       29.79
Other notes:
None
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan     Currency: CNY
                    Item                        Closing balance                         Opening balance
Interest receivable
Dividend receivable
Other receivables                                             243522905.71                           278088446.68
               Total Amount                                   243522905.71                           278088446.68
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Interest receivable
(1). Interest receivable
"¡õ Applicable" "¡Ì Not applicable"
(2). Significant overdue interest
"¡õ Applicable" "¡Ì Not applicable"
(3). Disclosure of notes receivable by bad debt accrual method
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡õ Applicable" "¡Ì Not applicable"
(4). Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of interest receivable with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
(5). Provision for bad debts
"¡õ Applicable" "¡Ì Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(6). Actual write-offs of interest receivable during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant write-offs of interest receivable
"¡õ Applicable" "¡Ì Not applicable"
Description of write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Dividend receivable
(7). Dividend receivable
"¡õ Applicable" "¡Ì Not applicable"
(8). Significant dividend receivables aged over 1 year
"¡õ Applicable" "¡Ì Not applicable"
(9). Disclosure of notes receivable by bad debt accrual method
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡õ Applicable" "¡Ì Not applicable"
(10).Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for classification of phases and proportion of provision for bad debts
N/A
Description of significant changes in carrying amount of dividends receivable with provision for bad
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
debts during the period
"¡õ Applicable" "¡Ì Not applicable"
(11). Provision for bad debts
"¡õ Applicable" "¡Ì Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(12).Actual write-offs of dividends receivable during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant write-offs of dividends receivable
"¡õ Applicable" "¡Ì Not applicable"
Description of write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Other receivables
(13).Disclosure by ageing
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
                 Ageing                           Closing book balance                   Opening book balance
Within 1 year (including 1 year)                                 227735098.03                          256288642.67
Subtotal within one year                                         227735098.03                          256288642.67
More than 3 years
More than 5 years                                                    4158040.10                          5212424.94
             Total Amount                                          265448761.27                        299952984.31
(14).By nature of amount
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
           Nature of payment                      Closing book balance                   Opening book balance
Export tax refund                                                178039545.56                           217123393.52
Deposits                                                          53536533.70                            54430339.72
Temporary borrowings by employees                                 16804741.74                            15299254.76
Temporary advance payment receivable                              10954537.13                             8570459.64
Other                                                              6113403.14                             4529536.67
             Total Amount                                        265448761.27                           299952984.31
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
(15).Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan        Currency: CNY
                                      Phase I                Phase II                 Phase III
                                                         Expected credit       Expected credit losses
                                Expected credit
   Provision for bad debts                             losses for the entire   for the entire duration      Total Amount
                               losses for the next
                                                        duration (no credit      (credit impairment
                                                           impairment)                occurred)
Balance as of January 1,
Balance as of January 1,
-- Transferred to Phase II              -512687.08               512687.08
-- Transferred to Phase III                                     -845710.72                  845710.72
-- Reversed to Phase II
-- Reversed to Phase I
Provision during the period              853061.56               193122.56                  179342.93            1225527.05
Reversal during the period                                                                  -66768.48             -66768.48
Transfer to COGS during
the period
Write-offs during the period                                                              1223603.68             1223603.68
Other changes                              3687.04                  1436.88                  2250.00                7373.92
Balance as of December 31,
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of other receivables with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments
"¡õ Applicable" "¡Ì Not applicable"
(16).Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                            Unit: Yuan      Currency: CNY
                                                   Amount of change during the period
  Category        Opening balance                     Recovery or      Write-off or             Other       Closing balance
                                      Make provision
                                                        reversal      Cancellation             changes
Provision for
bad debts
made on an             7665891.59         -425337.16                           1171403.68                        6069150.75
individual
basis
Provision
made on a             14198646.04         1650864.21         -66768.48           52200.00        7373.92        15856704.81
portfolio basis
 Total Amount         21864537.63         1225527.05         -66768.48         1223603.68        7373.92        21925855.56
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
Of which the amount of provisions for bad debt reversed or recovered during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(17).Other receivables actually written off during the period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                           Unit: Yuan    Currency: CNY
                           Item                                                     Amount written off
Other receivables actually written off                                                                       1223603.68
Of which significant write-offs of other receivables:
"¡õ Applicable" "¡Ì Not applicable"
Note on write-off of other receivables:
"¡õ Applicable" "¡Ì Not applicable"
(18).Other receivables of the top 5 in ending balance of the debtor
"¡Ì Applicable" "¡õ Not applicable"
                                                                                           Unit: Yuan    Currency: CNY
                                          Percentage of
                                                                                            Provision for
                                           total closing       Nature of
  Unit name        Closing balance                                           Ageing           bad debts
                                         balance of other      payments
                                                                                           Closing balance
                                         receivables (%)
State Taxation                                              Export tax     Within      1
Administration                                              refund         year
Zhejiang
Hangzhou
Qingshan Lake
Science      and         4250000.00                 1.60 Deposits          3-5 years           2125000.00
Technology
City Investment
Group Co., Ltd.
Tokokosen                                                                  Within      1
Corporation                                                                year
Changchun
FAW
                                                                           Within      1
International            1372000.00                 0.52 Deposits                                68600.00
                                                                           year
Tendering Co.,
Ltd.
CITIC
                                                                           Within 1
International
Tendering Co.,
                                                                           years
Ltd.
 Total Amount          186232815.64                70.16           /            /              2423953.50
(19).Listed as other receivables due to centralized management of funds
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Inventories by category
"¡Ì Applicable" "¡õ Not applicable"
                                                                                           Unit: Yuan         Currency:CNY
                                 Closing balance                                       Opening balance
                                   Provision for                                         Provision for
                                     decline in                                            decline in
                                      value of                                              value of
     Item                         inventories or                                        inventories or
                    Book balance                       Book value         Book balance                           Book value
                                  impairment of                                         impairment of
                                    contractual                                           contractual
                                   performance                                           performance
                                       costs                                                 costs
Raw materials       1018092279.76 24590076.58          993502203.18        845635552.82 22585083.91              823050468.91
Work in
progress
Inventory           1513416349.33    10939743.29      1502476606.04       1136805647.31         16592185.08    1120213462.23
Commissioned
processing             7005129.83                        7005129.83          15011086.54                          15011086.54
materials
Contract
performance          323072249.71        7173954.47    315898295.24        290029512.37         12833525.71      277195986.66
costs
 Total Amount       3195699811.58    46682882.88      3149016928.70       2566768364.92         56034063.27    2510734301.65
(2). Data resources recognized as inventories
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for decline in value of inventories and impairment of contract performance costs
"¡Ì Applicable" "¡õ Not applicable"
                                                                                           Unit: Yuan         Currency:CNY
                                            Amount of increase during      Amount of decrease during
                                                  the period                        the period
      Item             Opening balance                                                                        Closing balance
                                                                              Reversal or
                                            Make provision       Other                         Other
                                                                           Transfer to COGS
Raw materials              22585083.91          11678726.66                       9673733.99                      24590076.58
Work in progress            4023268.57           3965503.23                       4009663.26                       3979108.54
Inventory                  16592185.08           6790428.98                     12442870.77                       10939743.29
Contract
performance costs
  Total Amount             56034063.27          25994123.55                      35345303.94                      46682882.88
Reasons for reversal or write-off of provision for decline in value of inventories in the current period
"¡Ì Applicable" "¡õ Not applicable"
                                                                          Reasons for                     Reasons for
                                  Specific basis for
        Item                                                        provision for transfer to       provision for transfer to
                           determining net realizable value
                                                                            COGS                             COGS
Raw materials                                                                                    Consumption of inventories
                        Net realizable value is determined as
                                                                 Increase in net realizable      for which provision for
                        the estimated selling price of the
                                                                 value of provisions made        decline in value of
Work in progress        relevant finished goods less costs
                                                                 in previous periods for a       inventories has been made
                        estimated to be incurred to
                                                                 decline in value of             during the period
                        completion, estimated selling expenses
Finished goods                                                   inventories                     Sales of inventories for
                        and related taxes
Contract performance                                                                             which provisions had
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
costs                                                                                   previously been made for a
                                                                                        decline in value during the
                                                                                        current period
Allowance for Inventory Write-Down by Category
"¡õ Applicable" "¡Ì Not applicable"
Recognition Standards for Allowance for Inventory Write-Down by Category
"¡õ Applicable" "¡Ì Not applicable"
(4). Amount of borrowing costs capitalized included in the closing balance of inventories and the
criteria and basis for calculation
"¡õ Applicable" "¡Ì Not applicable"
(5). Explanation of the amount of amortisation of contract performance costs for the period
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan        Currency:CNY
                  Item                              Closing balance                       Opening balance
Long-term receivables matured within one
year
             Total Amount                                        171096826.36                          183727543.92
Debt investments matured within one year
"¡õ Applicable" "¡Ì Not applicable"
Other debt investments matured within one year
"¡õ Applicable" "¡Ì Not applicable"
Other description of non-current assets matured within one year:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                     Unit: Yuan    Currency:CNY
                    Item                             Closing balance                      Opening balance
Value-added tax to be deducted                                   134308580.61                         135772623.11
Prepaid enterprise income tax                                     30459049.87                          15792645.79
              Total Amount                                       164767630.48                         151565268.90
Other notes:
None
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Debt investments
"¡õ Applicable" "¡Ì Not applicable"
Changes in provision for impairment of debt investments during the current period
"¡õ Applicable" "¡Ì Not applicable"
(2). Significant debt investments at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for impairment
"¡õ Applicable" "¡Ì Not applicable"
Basis for classification of phases and proportion of impairment provisions
N/A
Description of significant changes in carrying amount of equity investment with provision for bad debts
during the period:
"¡õ Applicable" "¡Ì Not applicable"
Basis for using the amount of the impairment provision for Less debts for the current period and basis
for evaluating any significant increase in the credit risk of the financial instruments
"¡õ Applicable" "¡Ì Not applicable"
(4). Actual write-off of debt investments during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant write-offs of debt investments
"¡õ Applicable" "¡Ì Not applicable"
Description of write-offs of debt investments:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Other debt investment
"¡õ Applicable" "¡Ì Not applicable"
Others changes in provision for impairment of debt investments during the current period
"¡õ Applicable" "¡Ì Not applicable"
(2). Other significant debt investments at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for impairment
"¡õ Applicable" "¡Ì Not applicable"
Basis for classification of phases and proportion of impairment provisions
N/A
Description of significant changes in carrying amount of other equity investment with provision for bad
                                           The 2025 Annual Report of Hangcha Group Co., Ltd.
debts during the period:
"¡õ Applicable" "¡Ì Not applicable"
Basis for using the amount of the impairment provision for Less debts for the current period and basis
for evaluating any significant increase in the credit risk of the financial instruments
"¡õ Applicable" "¡Ì Not applicable"
(4). Other debt investments actually written off during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Other significant write-offs of debt investments
"¡õ Applicable" "¡Ì Not applicable"
Description of write-offs of other debt investments:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Long-term receivables
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                              Unit: Yuan         Currency: CNY
                                     Closing balance                                         Opening balance
                                                                                                                                         Discount rate
   Item                               Provision for                                           Provision for
                Book balance                             Book value         Book balance                           Book value               range
                                        bad debts                                               bad debts
Financial
lease           114988892.30           5166899.02       109821993.28         85976464.39        3082999.22        82893465.17          3.07%-24.56%
payments
Of which:
unrealised
                  -3821346.99                             -3821346.99        -4643114.21                           -4643114.21
financing
gains
    Total
  Amount
(2). Disclosure of notes receivable by bad debt accrual method
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                              Unit: Yuan        Currency: CNY
                                       Closing balance                                                        Opening balance
                  Book balance            Provision for bad debts                          Book balance          Provision for bad debts
                                                        Percentage                                                             Percentage
Category                                                              Book value                                                             Book value
                            Percentage                       of                                    Percentage                       of
              Amount                      Amount                        Value         Amount                     Amount                        Value
                               (%)                       Provision                                    (%)                       Provision
                                                            (%)                                                                    (%)
Provision
made on a
portfolio
basis
  Total
 Amount
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
Items accrued in portfolio: Portfolio
                                                                                 Unit: Yuan       Currency: CNY
                                                               Closing balance
           Item
                                  Book balance             Provision for bad debts      Percentage of Provision (%)
Provision made on a
portfolio basis
        Total Amount                    114988892.30                     5166899.02                 4.49
Notes to the provision for bad debts by portfolio
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of long-term receivable with provision for bad
debts during the period
"¡õ Applicable" "¡Ì Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments:
"¡õ Applicable" "¡Ì Not applicable"
(4). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                     Unit: Yuan    Currency:CNY
                                                Amount of change during the period
    Category       Opening balance                      Recovery     Write-off or       Other      Closing balance
                                        Make provision
                                                        or reversal Cancellation       changes
Provision made
on a portfolio            3082999.22         2083899.80                                                    5166899.02
basis
  Total Amount            3082999.22         2083899.80                                                    5166899.02
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(5). Long-term receivables actually written off during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant long-term receivables written off
"¡õ Applicable" "¡Ì Not applicable"
Description of long-term receivables written off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
                                                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Long-term equity investments
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                                   Unit: Yuan     Currency: CNY
                                                                                 Increase and decrease during the period
                                                                          Gains and                                                                                        Closing
                                   Opening                                 losses on     Adjustment to                   Declaration of                       Closing     balance of
                                                                                                                                          Provision
       Invested units           Balance (Book    Additional Decrease in investments           other      Other changes issuing cash                        Balance (Book provision
                                                                                                                                         for accrual Other
                                    value)      investments investments   recognised     comprehensive      in equity     dividends or                         value)         for
                                                                                                                                        impairment
                                                                           under the        income                           profits                                     impairment
                                                                        equity method
I. Joint ventures
            Subtotal
II. Associated enterprises
HANGCHA SOUTHEAST
ASIA CO., LTD
Zhejiang Huachang Hydraulic
Machinery Co., Ltd.
Hangzhou              Gangcun
Transmission Co., Ltd.
Hangzhou Pengcheng New
Energy Technology Co., Ltd.
Hangzhou Zhongce Haichao
Enterprise Management Co.,      2047807325.14                            431318130.83     35606065.98 177188579.44                                       2691920101.39
Ltd.
Henan Jiachen Intelligent
Control Co., Ltd.
Changsha           Zhongchuan
Transmission Co., Ltd.
Nanjing Hangcha Logistics
Equipment Co., Ltd.
Nanchang Hangcha Forklift          4061714.33                                604695.44                                    630000.00                         4036409.77
                                                            The 2025 Annual Report of Hangcha Group Co., Ltd.
Co., Ltd.
Changsha Hangcha Forklift
Sales Co., Ltd.
Shijiazhuang           Hangcha
Forklift Sales Co., Ltd.
Taiyuan Hangcha Lift Truck
Co., Ltd.
Chongqing Hangcha Forklift
Truck Sales Co., Ltd.
Yunnan Hangcha Lift Truck
Co., Ltd.
Shenyang Hangcha Lift Truck
Sales Co., Ltd.
Beijing      Guozi       Robot
Technology Co., Ltd.
            Subtotal             2364393754.75   42840.00           470173646.58     35699389.81 177887500.61   11976500.00   3036220631.75
         Total Amount            2364393754.75   42840.00           470173646.58     35699389.81 177887500.61   11976500.00   3036220631.75
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
(2). Impairment testing of long-term equity investments
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Investment in other equity instruments
"¡õ Applicable" "¡Ì Not applicable"
(2). Description of the existence of derecognition during the current period
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency: CNY
                    Item                            Closing balance                 Opening balance
Financial assets measured at fair value and
the changes thereof are included in current                    28104279.77                    26325621.62
profits and losses
Including: Investment in other equity
instruments
                Total Amount                                   28104279.77                    26325621.62
Other notes:
"¡Ì Applicable" "¡õ Not applicable"
As of December 31, 2025, the Company held a 16.67% equity stake in Zhejiang Hangli
Dingsheng Machinery Co., Ltd. The Company is unable to exercise control, significant influence,
or joint control over Hangli Dingsheng. Therefore, this equity investment shall not be considered a
long-term equity investment. According to the latest version of Accounting Standards for Business
Enterprises No. 22¡ªRecognition and Measurement of Financial Instruments, this equity
instrument investment fails the Solely Payments of Principal and Interest test (SPPI test).
Therefore, it is classified as a financial asset measured at fair value through current profits and
losses. However, since Zhejiang Hangli Dingsheng Machinery Co., Ltd. has not been traded on
the open market, the cost is the best estimate of fair value according to Standard No.
As of December 31, 2025, the Company held a 10.00% equity stake in Hangzhou Okamura
Furniture Co., Ltd. According to the Articles of Association and relevant resolutions, the
Company does not have the authority to participate in the decision-making regarding Okamura's
financial and operational policies. Therefore, it is a long-term equity investment not intended for
trading, which does not constitute a material impact. As a result, it is reported under other
non-current financial assets.
The increase in the current period arises from the payment of the remaining 70.00% of the
purchase price for equity in NFL Forklifts Group by HC Forklift Australia Pty Ltd., amounting to
USD 235,516.18 (equivalent to RMB 1,778,658.15). As of December 31, 2025, 100.00% of the
purchase price for equity in NFL Forklifts Group has been paid, amounting to USD 338,993.86
(equivalent to RMB 2,512,879.77). The Company holds a 15.00% equity stake in the NFL
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
Forklifts Group. It is unable to exercise control, significant influence, or joint control over NFL
Forklifts Group. Therefore, it is a long-term equity investment not intended for trading, and it is
reported under other non-current financial assets.
Measurement model of investment properties
(1). Investment properties by using cost measurement model
                                                                          Unit: Yuan   Currency: CNY
                   Item                   Houses, buildings      Land use rights       Total Amount
I. Original book value
(1) Outsourcing
(2) Transfer from inventories\fixed
assets\construction in progress
(3) Increase in business combination
(1) Disposals
(2) Other transfers out
(3) Reversal of fixed assets                     12082389.89                               12082389.89
II. Accumulated depreciation and accumulated amortization
(1) Accrual or amortization                        6446098.19            166117.21          6612215.40
(2) Transfer from fixed assets                   10378897.83                               10378897.83
(1) Disposals
(2) Other transfers out
(3) Reversal of fixed assets                       7456246.05                               7456246.05
III. Provision for impairment
(1) Disposals
(2) Other transfers out
IV. Book value
period
(2). Investment properties with outstanding title certificates
"¡õ Applicable" "¡Ì Not applicable"
(3). Impairment testing of investment properties by the cost measurement model
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan     Currency: CNY
                   Item                          Closing balance                    Opening balance
Fixed assets                                              3244122167.29                      2202710412.14
Liquidation of fixed assets
             Total Amount                                     3244122167.29                    2202710412.14
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Fixed assets
(1). Fixed assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan     Currency: CNY
                         Buildings      Machinery and     Transportation         Other
        Item                                                                                  Total Amount
                                         equipment           facilities        equipment
I. Original book value:
during the period
(1) Acquisitions           3253096.73      20265745.60          44870485.72    11026140.59       79415468.64
(2) Transfer from
construction in          690619432.59     105626161.05           6477333.23     7392900.54      810115827.41
progress
(3) Increase in
business
combination
(4) Transferred
from finished                                408220.79         743459989.74                     743868210.53
goods
(5) Transfer from
investment                12082389.89                                                            12082389.89
properties
amounts during the        16512680.08       8353446.12         257394925.80     3550215.46      285811267.46
period
(1) Disposal or
retirement
(2) Transfer from
investment                16512680.08                                                            16512680.08
properties
inventories
(4) Others [Note]                                                1161470.13       10442.48        1171912.61
II. Accumulated depreciation
during the period
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(2) Transfer from
investment                  7456246.05                                                                  7456246.05
properties
amounts during the         10378897.83      6671797.58          68683473.87       2306388.27           88040557.55
period
(1) Disposal or
retirement
(2) Transfer from
investment                 10378897.83                                                                 10378897.83
properties
inventories
(4) Others [Note]                                                 637986.26         8101.64          646087.90
III. Provision for impairment
during the period
amounts during the                             65933.30                0.61                               65933.91
period
(1) Disposal or
retirement
IV. Book value
value
the beginning of          825246032.32    519530573.73         802104180.54     55829625.55      2202710412.14
the period
[Note] Other decreases are due to the disposal of corresponding fixed assets transferred out by the
sub-subsidiaries during the current period, including the original value and the accumulated
depreciation
(2). Temporarily idle fixed assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan       Currency: CNY
                                           Accumulated            Provision for
      Item         Original book value                                                 Book value        Remarks
                                           depreciation            impairment
Buildings                     180355.00          82130.90                 89206.35          9017.75
Machinery and
equipment
Transportation
facilities
Other equipment             1335136.96          801668.89                466716.71        66751.36
      Subtotal             10881525.20         7432353.65               2905101.19       544070.36
(3). Fixed assets leased through operating leases
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan       Currency: CNY
                      Item                                       Book value at the end of the period
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Machinery and equipment                                                                                 99657257.05
Transportation facilities                                                                             1060550608.82
Other equipment                                                                                          1701670.20
                       Subtotal                                                                       1161909536.07
(4). Fixed assets for which title certificates have not been issued
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan      Currency: CNY
                                                                                    Reasons for failure to obtain title
                        Item                                 Book value
                                                                                              certificates
Plant of Hangcha Guozi Intelligent Automated
Equipment Project with an Annual Production of                      155971745.20 Under Processing
                   Subtotal                                         155971745.20
(5). Impairment testing of fixed assets
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Liquidation of fixed assets
"¡õ Applicable" "¡Ì Not applicable"
Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan      Currency: CNY
                 Item                               Closing balance                        Opening balance
Construction in progress                                       115954043.69                           584836969.86
Engineering materials
            Total Amount                                          115954043.69                         584836969.86
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Construction in progress
(1). Construction in progress
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan      Currency: CNY
                                    Closing balance                                 Opening balance
                                       Provision                                       Provision
        Item
                       Book balance       for       Book value          Book balance      for       Book value
                                      impairment                                      impairment
Project for the
Annual
Production        of
Platforms        and
Intellectualization
Reform Project of
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangzhou Cha on
Core        Process
Capability with an
Annual Output of
High-tonnage
Forklifts       for
High-end Markets
Hangcha      Guozi
Intelligent
Automated
Equipment Project 19860851.75                       19860851.75     96369579.73              96369579.73
with an Annual
Production       of
Hangcha Group
Shiqiao Factory
Upgrading            14226011.05                    14226011.05    450626697.66             450626697.66
Construction
Project
Prepayment       of
Equipment,
Project Payment
and Other Projects
Information
project
  Total Amount      115954043.69                   115954043.69    584836969.86             584836969.86
(2). Changes in important construction projects in progress during the current period
"¡Ì Applicable" "¡õ Not applicable"
                                                               Unit: Ten thousand yuan   Currency: CNY
                                                          The
                                                                                   Of
                                             Other      proport
                                   Amou                                         which:
                      Amo                    decre       ion of
                                     nts                                        Amount Interest
                Openi unt of                  ase Closi cumula        Accumu
                                   transfe                      Proje               of   capitaliz
          Budg   ng increa                     in   ng    tive          lated
                                   rred to                        ct            interest    ation  Source
           eted Acco    se                   amou Acco invest          interest
Item Name                           fixed                       progr               c     rate for    of
          numb unt durin                      nts  unt    ment        capitaliz
                                    assets                       ess            apitaliz     the    funds
            er  Balan g the                  durin Bala in the          ation
                                   during                        (%)              ation    period
                 ce   perio                  g the nce project        amounts
                                     the                                         during      (%)
                        d                    perio       of the
                                   period                                          the
                                                d       budget
                                                                                 period
                                                          (%)
Hangcha
Group
Shiqiao                                                                                           Self-o
Factory                                                    98.45 98.45                            wned
               .00 2.67   94     01          60
Upgrading                                                                                         funds
Constructio
n Project
Hangcha
Guozi
                                                                                                  Self-o
Intelligent 40000 9636. 1528 21481. 1452. 1986.
Automated      .00   96 2.71     05    53    09
                                                                                                  funds
Equipment
Project
                          The 2025 Annual Report of Hangcha Group Co., Ltd.
with      an
Annual
Production
of 10,000
Sets
Intellectuali
zation
Reform
Project of
Hangzhou
Cha       on
Core
Process
                                                                                        Self-o
Capability 16000 2177. 4102. 3640.4         2639.
with      an     .00    46    47    5          48
                                                                                        funds
Annual
Output of
High-tonna
ge Forklifts
for
High-end
Markets
Project for
the Annual
Production
of     6,000                                                                            Self-o
Aerial                                                56.87 56.87                       wned
                 .00          95         22    73
Work                                                                                    funds
Platforms
and 5,000
Forklifts
    Total            5687 3517 77505. 4546. 9999.
                                                          /    /                   /       /
  Amount              7.09 5.07    52    75    90
[Note 1] The increase in the budget for the Hangcha Group Shiqiao Factory Upgrading
Construction Project and the Hangcha Guozi Intelligent Automated Equipment Project with an
Annual Production of 10,000 Sets is due to an expansion in the scale of construction and an
improvement in construction standards, as required by the Company during the project
implementation process.
[Note 2] Other decreases in the Hangcha Guozi Intelligent Automated Equipment Project with an
Annual Production of 10,000 Sets and the Project for the Annual Production of 6,000 Aerial Work
Platforms and 5,000 Forklifts have been transferred to intangible assets.
(3). Provision for impairment of construction in progress during the current period
"¡õ Applicable" "¡Ì Not applicable"
(4). Impairment testing of construction in progress
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
Engineering materials
(5). Construction materials
"¡õ Applicable" "¡Ì Not applicable"
(1). Productive biological assets measured using the cost measurement model
"¡õ Applicable" "¡Ì Not applicable"
(2). Impairment testing of productive biological assets measured at cost
"¡õ Applicable" "¡Ì Not applicable"
(3). Productive biological assets using the fair value measurement model
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1).Oil and gas assets
"¡õ Applicable" "¡Ì Not applicable"
(2).Impairment testing of oil and gas assets
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(1). Right-of-use assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                            Unit: Yuan   Currency:CNY
                   Item                            Buildings                      Total Amount
I. Original book value
   Leased                                                    131672990.89                  131672990.89
II. Accumulated depreciation
(1) Disposal on lease termination                              5050477.59                    5050477.59
   Disposal on lease expiration                               18018742.60                   18018742.60
   Others [Note]                                               1305747.80                    1305747.80
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
III. Provision for impairment
(1) Disposals
IV. Book value
period
[Note] Other decreases are due to the disposal of corresponding right-of-use assets transferred out
by the sub-subsidiaries during the current period, including the original value and the accumulated
depreciation
(2). Impairment testing of right-of-use assets
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(1). Intangible assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan       Currency:CNY
                                                               Proprietary
         Item            Land use rights     Software                        Emission permit    Total Amount
                                                              technologies
I. Original book value
during the period
(1) Acquisitions              3408340.77       416723.81                                           3825064.58
(2) Internal R&D
(3) Increase in
business combination
(4) Transfer from
construction in              30942185.00     14525297.82                                          45467482.82
progress
during the period
(1) Disposals
II. Accumulated amortization
during the period
during the period
(1) Disposals
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
III. Provision for impairment
during the period
during the period
(1) Disposals
IV. Book value
beginning of the              308008712.04   96499760.95       24770.23          442428.22     404975671.44
period
Proportion of intangible assets formed through in-house R&D at the end of the current period to
the balance of intangible assets is 0%.
(2). Data resources recognized as intangible assets
"¡õ Applicable" "¡Ì Not applicable"
(3). Land use rights for which title certificates have not been issued
"¡õ Applicable" "¡Ì Not applicable"
(4). Impairment testing of impairment of intangible assets
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Original carrying amount of goodwill
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan        Currency:CNY
                                                      Increase for the     Decrease for the
                                                           period              period
Name of investee or matters forming                                                              Closing
                                    Opening balance Resulting from
             goodwill                                                                            balance
                                                       business            Disposals
                                                    combinations
Hangzhou Forklift Sheet Metal
Welding Co., Ltd.
Hangzhou Forklift Mast Co., Ltd.        1662110.47                                               1662110.47
Hangzhou Hangcha Bridge Box Co.,
Ltd.
Hefei Hanhe Intelligent Logistics
Technology Co., Ltd.
HC FORKLIFT AUSTRALIA PTY
LTD.
          Total Amount                 10652989.76                                              10652989.76
(2). Provision for impairment of goodwill
"¡õ Applicable" "¡Ì Not applicable"
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Information about the asset group or combination of asset groups in which goodwill is
located
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                 Consistency
                                   Composition and basis of the asset group or Operating segment
             Item                                                                                with previous
                                     portfolio to which the goodwill belongs       and basis
                                                                                                     years
                                   Goodwill was formed upon the acquisition
                                   of equity interests, and the asset group      Business on
Hangzhou Forklift Sheet Metal
                                   where the goodwill belonged at the end of forklift trucks and      Yes
Welding Co., Ltd.
                                   the period was consistent with the asset       accessories
                                   group identified at the purchase date.
                                   Goodwill was formed upon the acquisition
                                   of equity interests, and the asset group      Business on
Hangzhou Forklift Mast Co.,
                                   where the goodwill belonged at the end of forklift trucks and      Yes
Ltd.
                                   the period was consistent with the asset       accessories
                                   group identified at the purchase date.
                                   Goodwill was formed upon the acquisition
                                   of equity interests, and the asset group      Business on
Hangzhou Hangcha Bridge Box
                                   where the goodwill belonged at the end of forklift trucks and      Yes
Co., Ltd.
                                   the period was consistent with the asset       accessories
                                   group identified at the purchase date.
                                   Goodwill was formed upon the acquisition
                                   of equity interests, and the asset group      Business on
Hefei      Hanhe     Intelligent
                                   where the goodwill belonged at the end of forklift trucks and      Yes
Logistics Technology Co., Ltd.
                                   the period was consistent with the asset       accessories
                                   group identified at the purchase date.
                                   Goodwill was formed upon the acquisition
                                   of equity interests, and the asset group      Business on
HC FORKLIFT AUSTRALIA
                                   where the goodwill belonged at the end of forklift trucks and      Yes
PTY LTD.
                                   the period was consistent with the asset       accessories
                                   group identified at the purchase date.
Changes in asset groups or its portfolio
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(4). Specific method to determine recoverable amount
The recoverable amount is determined based on the fair value less costs of disposal.
"¡õ Applicable" "¡Ì Not applicable"
The recoverable amount was determined based on the present value of expected future cash flows
"¡Ì Applicable" "¡õ Not applicable"
                                                                Unit: Ten thousand yuan       Currency: CNY
                                                            Key                            Key
                                                        parameter     Basis for        parameters      Basis for
                                                         s for the determining            for the     determinin
                                                Years
                                     Amount of           forecast        the           stabilizatio      g key
                 Book     Recoverabl            of the
    Item                             impairmen            period     parameters          n period     parameters
                 value     e amount            forecas
                                         t               (growth       in the            (growth        for the
                                               t period
                                                        rate, profit  forecast         rate, profit   stationary
                                                          margin,      period            margin,         phase
                                                           etc.)                        discount
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                                           rate, etc.)
                                                                          The
                                                            Average
                                                                          Management
                                                            revenue                       Average
                                                                          determines
                                                            growth                        revenue
                                                                          key
                                                            rate     of                   growth rate
                                                                          parameters                     Reference
Hangzhou                                                    10%,                          of      10%,
                                                                          for       the                  to the data
Forklift Sheet                                              average                       average
                                                                          forecast                       at the end
Metal            9509.43   28763.27                3        profit                        gross profit
                                                                          period based                   of       the
Welding Co.,                                                margin of                     margin of
                                                                          on historical                  forecast
Ltd.                                                        2.24%,                        2.32%,
                                                                          data     and                   period
                                                            pre-tax                       pre-tax
                                                                          forecasts of
                                                            discount                      discount
                                                                          market
                                                            rate     of                   rate of 15%
                                                                          development
                                                                          .
                                                                          The
                                                            Average
                                                                          Management
                                                            revenue                       Average
                                                                          determines
                                                            growth                        revenue
                                                                          key
                                                            rate     of                   growth rate
                                                                          parameters                     Reference
                                                                          for       the                  to the data
Hangzhou                                                    average                       average
Forklift Mast              28857.60                3        profit                        gross profit
Co., Ltd.                                                   margin of                     margin of
                                                                          on historical                  forecast
                                                                          data     and                   period
                                                            pre-tax                       pre-tax
                                                                          forecasts of
                                                            discount                      discount
                                                                          market
                                                            rate     of                   rate of 15%
                                                                          development
                                                                          .
                                                                          The
                                                            Average
                                                                          Management
                                                            revenue                       Average
                                                                          determines
                                                            growth                        revenue
                                                                          key
                                                            rate     of                   growth rate
                                                                          parameters                     Reference
Hangzhou                                                                  for       the                  to the data
                                                            average                       average
Hangcha          10497.0                                                  forecast                       at the end
Bridge Box             7                                                  period based                   of       the
                                                            margin of                     margin of
Co., Ltd.                                                                 on historical                  forecast
                                                                          data     and                   period
                                                            pre-tax                       pre-tax
                                                                          forecasts of
                                                            discount                      discount
                                                                          market
                                                            rate     of                   rate of 15%
                                                                          development
                                                                          .
                                                                          The
                                                            Average
                                                                          Management
                                                            revenue                       Average
                                                                          determines
                                                            growth                        revenue
                                                                          key
                                                            rate     of                   growth rate
                                                                          parameters                     Reference
Hefei Hanhe                                                 10%,                          of      10%,
                                                                          for       the                  to the data
Intelligent                                                 average                       average
                                                                          forecast                       at the end
Logistics        1068.38    2027.90                3        profit                        gross profit
                                                                          period based                   of       the
Technology                                                  margin of                     margin of
                                                                          on historical                  forecast
Co., Ltd.                                                   14.85%,                       14.50%,
                                                                          data     and                   period
                                                            pre-tax                       pre-tax
                                                                          forecasts of
                                                            discount                      discount
                                                                          market
                                                            rate     of                   rate of 15%
                                                                          development
                                                                          .
HC                727.26     773.80                3        Average       The             Average        Reference
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
FORKLIFT                                                          revenue       Management      revenue         to the data
AUSTRALI                                                          growth        determines      growth rate     at the end
A PTY LTD.                                                        rate     of   key             of      20%,    of       the
                                                                  average       for       the   gross profit    period
                                                                  profit        forecast        margin of
                                                                  margin of     period based    3.41%,
                                                                  pre-tax       data     and    discount
                                                                  discount      forecasts of    rate of 15%
                                                                  rate     of   market
                                                                                .
   Total         37354.4
  Amount               3
Reasons for Differences Between the Above Information and the Information or External
Information Used in Previous Years' Impairment Tests
"¡õ Applicable" "¡Ì Not applicable"
Reasons for the Significant Discrepancy Between the Information Used in Previous Years'
Impairment Tests and the Actual Situation in the Current Year
"¡õ Applicable" "¡Ì Not applicable"
(5). Performance commitments and corresponding goodwill impairment
Performance commitments existed at the time of the formation of goodwill and this Reporting
Period or the previous reporting period falls within the performance commitment period.
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan         Currency:CNY
                                           Amount of            Amortization
                                                                                   Other decreases
       Item           Opening balance    increase during       amounts for the                           Closing balance
                                                                                     in amounts
                                            the period            period
Operating
expenses         on
improvement of
fixed assets leased
   Total Amount            26390164.95       2372445.54            7525967.33                                  21236643.16
Other notes:
None
(1). Deferred income tax assets not offset
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan         Currency:CNY
              Item                          Closing balance                                Opening balance
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                       Deferred income         Deductible        Deferred income
                              Deductible temporary
                                                             tax               temporary               tax
                                  differences
                                                           Assets              differences           Assets
Provision for impairment of
assets
Unrealized profits of
internal transactions
Deferred income                      105620404.53           15843060.68          93427574.52          14014136.18
Changes in fair value of
derivative financial                                                               366815.63              91703.91
liabilities
Deductible losses                     48615704.19           9718561.30           67068213.75          10088544.77
Lease transactions                   249991117.36          61635336.49          166355768.98          42466522.93
         Total Amount               1066995428.39         233566656.08          839825795.14         179741839.20
(2). Deferred income tax liabilities not offset
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan      Currency:CNY
                                         Closing balance                              Opening balance
                                                   Deferred income                             Deferred income
             Item             Taxable temporary                            Taxable temporary
                                                         tax                                          tax
                                 differences                                  differences
                                                      Liabilities                                  Liabilities
Accelerated depreciation
differences
Lease transactions                 248808887.44           60736372.92          173928041.98           42753114.55
        Total Amount               363944781.63           78006757.04          312643586.02           63560446.15
(3). Deferred income tax assets or liabilities listed by the net value of offsets
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan      Currency:CNY
                                            Closing balance                             Opening balance
                                Offset Amount                               Offset Amount
                                                    Balance of deferred                         Balance of deferred
                               between deferred                            between deferred
             Item                                        tax assets or                               tax assets or
                                tax assets and                              tax assets and
                                                       liabilities after                           liabilities after
                                 deferred tax                                deferred tax
                                                           offsetting                                  offsetting
                                   liabilities                                 liabilities
Deferred tax assets                  77216068.56           156350587.52          62913443.04           116828396.16
Deferred tax liabilities             77216068.56               790688.48         62913443.04               647003.11
(4). Details of unrecognized deferred income tax assets
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan      Currency:CNY
               Item                            Closing balance                         Opening balance
Deductible temporary differences                           119832556.31                            115255663.59
Deductible losses                                          799357965.07                            744102319.92
          Total Amount                                     919190521.38                            859357983.51
(5). The deductible losses for which no deferred income tax assets have been recognized will
expire in the following years
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan       Currency:CNY
          Years                 Closing amount                Opening amount                    Remarks
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
         Total Amount                      799357965.07                     744102319.92                   /
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Unit: Yuan      Currency:CNY
                                   Closing                                                 Opening
   Item                                   Types of        Restricted                              Types of        Restricted
             Book balance   Book value                                 Book balance Book value
                                         restrictions     Situation                              restrictions      Situation
                                                        Guarantee                                               Letter       of
                                                        deposits,                                               guarantee
                                                        foreign                                                 bond, letter
                                                        exchange                                                of      credit
Cash and                                                derivative                                              bond,
bank          40769564.91 40769564.91 Other             deposits,      29600228.05 29600228.05 Other            bankers'
balances                                                bank                                                    acceptance
                                                        acceptance                                              bill     bond,
                                                        bill deposits,                                          and
                                                        performance                                             performance
                                                        bond                                                    bond
                                                                                                                Restricted
                                                                                                                use due to
                                                                                                                incomplete
Cash and                                                                                                        bank
bank                                                                   12041120.00 12041120.00 Other            account
balances                                                                                                        information
                                                                                                                of a newly
                                                                                                                established
                                                                                                                company
                                                        Restrictions
Fixed
assets
                                                        leaseback
Intangible                                                                                                      Mortgage of
assets                                                                                                          borrowings
   Total
 Amount
Other notes:
None
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Short-term borrowings by category
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan     Currency:CNY
               Item                          Closing balance                      Opening balance
Credit borrowing                                      765278121.20                         394507404.74
Guaranteed borrowing                                    44403055.56                        109274759.45
           Total Amount                               809681176.76                         503782164.19
Notes on classification of short-term borrowings:
None
(2). Overdue short-term borrowings
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant overdue short-term borrowings as below
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                          Unit: Yuan      Currency: CNY
                 Item                           Closing balance                    Opening balance
Foreign exchange derivatives [Note]                                                              366815.63
            Total Amount                                                                         366815.63
[Note] Foreign exchange derivatives were converted from financial liabilities held for trading to
the derivative financial liabilities in accordance with the Compilation of Application Guidelines
for Business Accounting Standards 2024.
Other notes:
None
(1). Notes payable
"¡Ì Applicable" "¡õ Not applicable"
                                                                          Unit: Yuan      Currency: CNY
          Type                          Closing balance                          Opening balance
Commercial acceptance bill
Bank acceptance bill                                1693016977.19                             902166339.40
      Total Amount                                  1693016977.19                             902166339.40
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
The total amount of notes payable that were due and unpaid at the end of the current period was 0
Yuan. Reason for notes payable due and unpaid: Not applicable
(1). Accounts payable
"¡Ì Applicable" "¡õ Not applicable"
                                                                         Unit: Yuan      Currency: CNY
              Item                        Closing balance                       Opening balance
Materials                                          2692273743.23                            2484702913.82
Project equipment                                    171548294.41                            146750146.17
Other                                                 21882182.35                             29735495.83
          Total Amount                             2885704219.99                            2661188555.82
(2). Significant accounts payable aged over one year or overdue
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Details on payments received in advance
"¡Ì Applicable" "¡õ Not applicable"
                                                                         Unit: Yuan      Currency: CNY
               Item                         Closing balance                      Opening balance
Rent                                                      2642224.15                               913546.17
          Total Amount                                    2642224.15                               913546.17
(2). Significant accounts received in advance aged over one year
"¡õ Applicable" "¡Ì Not applicable"
(3). Amount of and reasons for significant changes in the book value during the Reporting
Period:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Contract liabilities
"¡Ì Applicable" "¡õ Not applicable"
                                                                         Unit: Yuan      Currency: CNY
              Item                          Closing balance                      Opening balance
Payments for goods                                      504427817.49                         455721742.21
          Total Amount                                  504427817.49                         455721742.21
(2). Important contract liabilities with aging over 1 year
"¡õ Applicable" "¡Ì Not applicable"
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Amount of and reasons for significant changes in the book value during the Reporting
Period:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Payroll payable
"¡Ì Applicable" "¡õ Not applicable"
                                                                               Unit: Yuan     Currency: CNY
                                                                          Decrease for the
          Item             Opening balance      Increase for the period                       Closing balance
                                                                              period
I. Short-term employee
benefits
II. Post-employment
benefits - defined               14488380.71             138361782.40         135130441.33        17719721.78
contribution plans
Benefits
IV. Other benefits due
within one year
     Total Amount               145346351.92           1563581919.13         1551576580.51       157351690.54
(2). 1. Short-term remunerations
"¡Ì Applicable" "¡õ Not applicable"
                                                                               Unit: Yuan     Currency: CNY
                                                     Increase for the     Decrease for the
            Item                Opening balance                                               Closing balance
                                                          period              period
I. Salary, bonus, subsidy and
grant
II. Employee welfare                                      50247640.40          50247640.40
III. Social insurance
premium
Including: Medical
insurance premiums
Work injury compensation
insurance premiums
Maternity insurance
premiums
IV. Housing provident fund             838433.23          73506421.49          73016572.41         1328282.31
V. Trade union fee and staff
education fee
VI. Short-term compensated
absence
VII. Short-term
profit-sharing plan
        Total Amount               130841543.21        1423863535.03         1415073109.48       139631968.76
(3). Defined contribution plan
"¡Ì Applicable" "¡õ Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                                                Unit: Yuan     Currency:CNY
                                                      Increase for the      Decrease for the
             Item               Opening balance                                                Closing balance
                                                           period               period
premiums
contribution
         Total Amount                14488380.71        138361782.40           135130441.33        17719721.78
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan     Currency:CNY
                Item                          Closing balance                         Opening balance
Business income tax                                      106794058.82                            117854715.76
Value-added tax                                           33064965.87                             28155867.49
Property tax                                              13509163.75                             13942413.58
Land use tax                                               7570287.55                               7348258.54
Individual income tax                                      6339949.44                               5502513.73
Stamp duty                                                 5171168.08                               3488024.50
Urban maintenance and
construction tax
Education surcharge                                            1183392.22                            803757.84
Local education surcharge                                       794023.14                            520847.80
Disability insurance fund                                       637831.30                            386571.09
Local water conservancy
development fund
Vehicle and vessel tax                                         3902.00
Other                                                        542103.41                              711726.77
            Total Amount                                  178395700.20                           180477087.33
Other notes:
None
(1). Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan     Currency:CNY
                    Item                          Closing balance                     Opening balance
Interest payable
Dividend payable                                                   40000.00                          40000.00
Other payables                                                  89808213.54                      226381414.75
Total Amount                                                    89848213.54                      226421414.75
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(2). Interest payable
By category
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
Significant overdue interest payable
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(3). Dividend payable
By category
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                     Item                            Closing balance               Opening balance
Common Stock Dividends
Dividends on preferred shares/perpetual
bonds classified as equity instruments
Dividends payable to minority shareholders of
subsidiaries
                Total Amount                                      40000.00                     40000.00
Other notes shall disclose the reasons for non-payment, including significant dividends payable
overdue for over 1 year:
None
(4). Other payables
Other payables by the nature of funds
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                    Item                             Closing balance               Opening balance
Cross-borrowing                                                                             134298383.57
Deposits                                                       62655090.62                    73624201.30
Temporary receipts payable                                     25185991.37                    16025483.55
Other                                                           1967131.55                     2433346.33
               Total Amount                                    89808213.54                  226381414.75
Significant other accounts payable aged over one year or overdue
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                   Item                              Closing balance               Opening balance
Long-term loans matured within one year                         2314166.67                  600388888.89
Bonds payable matured within one year
Long-term payables matured within one year                      1144663.54
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Lease liabilities matured within one year                         42384604.05                   29409865.55
                  Total Amount                                    45843434.26                  629798754.44
Other notes:
None
Other current liabilities
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan   Currency:CNY
                    Item                              Closing balance                 Opening balance
Short-bonds payable
Refund payable
Output tax amount to be forwarded                                 90269550.67                   72085065.58
               Total Amount                                       90269550.67                   72085065.58
Increase/decrease in short-term bonds payable:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Long-term borrowings
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan   Currency:CNY
                    Item                              Closing balance                 Opening balance
Pledge borrowing
Mortgage                                                                                        54717119.68
Guaranteed borrowing
Credit borrowing                                               498000000.00
                Total Amount                                   498000000.00                     54717119.68
Notes on classification of long-term borrowings:
None
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Bonds payable
"¡õ Applicable" "¡Ì Not applicable"
(2). Details of bonds payable: (Excluding other financial instruments such as preferred
shares and perpetual bonds classified as financial liabilities)
"¡õ Applicable" "¡Ì Not applicable"
(3). Description of convertible corporate bonds
"¡õ Applicable" "¡Ì Not applicable"
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Accounting treatment and judgment basis for conversion of equity shares
"¡õ Applicable" "¡Ì Not applicable"
(4). Notes on other financial instruments classified as financial liabilities
General information on preferred stock, perpetual bonds and other financial instruments
outstanding at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
Changes in preferred stock, perpetual bonds and other financial instruments outstanding at the end
of the period
"¡õ Applicable" "¡Ì Not applicable"
Notes on the basis of classing other financial instruments as financial liabilities
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                  Item                           Closing balance                   Opening balance
House lease                                                 216401126.07                      143909897.42
              Total Amount                                  216401126.07                      143909897.42
Other notes:
None
Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                  Item                            Closing balance                  Opening balance
Long-term payables                                            50063656.75                       4578954.00
Specific payables
Total Amount                                                   50063656.75                      4578954.00
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Long-term payables
(1). Long-term payables by nature
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan   Currency:CNY
                     Item                           Closing balance                Opening balance
Medical retention for retirees of enterprises
before restructuring [Note]
Sale-Leaseback                                                 45484702.75
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
                Total Amount                                       50063656.75                            4578954.00
[Note] The amount of the medical fee retention of retirees of the Company at the time of
restructuring from the Hangzhou Forklift Truck Factory into a limited liability company.
Other notes:
None
Specific payables
(2). Special accounts payable by nature
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan         Currency: CNY
          Item                 Closing balance     Opening balance                Reason for formation
Provisions for after-sales           7985853.43                         Provisions for after-sales expenses due
expenses                                                                to warranty-related quality assurance
Guarantee obligations                2472259.49
under finance leases
      Total Amount                  10458112.92             10559000.00                        /
Other notes, including significant assumptions and estimates related to significant provisions:
None
Deferred income
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan         Currency:CNY
                                    Increase for the      Decrease for the                             Reason for
     Item        Opening balance                                             Closing balance
                                         period               period                                   formation
Government                                                                                             Financial
grants                                                                                                 allocation
Total Amount          95177574.52       26503929.79           14311099.78        107370404.53               /
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan         Currency: CNY
                                         Increase/decrease (+, -) in current change
                Opening balance       New      Bonus     Provident                                 Closing balance
                                                                        Other Subtotal
                                     shares    shares       fund
                           The 2025 Annual Report of Hangcha Group Co., Ltd.
                                  issued            Conversion
                                                     of shares
  Total
number of         1309812049.00                                                          1309812049.00
  shares
Other notes:
None
(1). General information on preferred stock, perpetual bonds and other financial
instruments outstanding at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
(2). Changes in preferred stock, perpetual bonds and other financial instruments
outstanding at the end of the period
"¡õ Applicable" "¡Ì Not applicable"
Increase/decrease in other equity instruments during the period, reasons for changes, and bases of
related accounting treatment:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                         Unit: Yuan   Currency: CNY
                                           Increase for the      Decrease for the
       Item           Opening balance                                                 Closing balance
                                                period               period
Capital premium
(share premium)
Other capital
reserves
   Total Amount          1496911479.72         215049103.64            27766260.17       1684194323.19
Other notes, including increase/decrease during the period and reasons for changes:
¢Ù During the current period, the Company acquired a minority stake in Hangzhou Hangcha
Electric Appliance Co., Ltd. The difference between the acquisition cost and the newly acquired
net assets was RMB 582,847.09, resulting in a corresponding increase in capital reserve of RMB
Energy Forklift (Wenzhou) Co., Ltd. The difference between the consideration of disposal and the
net assets of the subsidiary involving the disposed equity was RMB 74,340.18, resulting in a
corresponding increase in capital reserve of RMB 74,340.18. During the current period, minority
shareholders increased their capital investment in Hangcha Japan Co., Ltd. Following the capital
increase, the Company¡¯s net assets increased by RMB 248,197.84, resulting in a corresponding
increase in capital reserve of RMB 248,197.84. During the current period, the Company disposed
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
a minority stake in Hefei Hanhe Intelligent Logistics Technology Co., Ltd. The difference
between the consideration of disposal and the net assets of the subsidiary involving the disposed
equity was RMB 5,192,990.60, resulting in a corresponding increase in capital reserve of RMB
Hangcha Okamura Intelligent Technology Co., Ltd. The difference between the consideration of
disposal and the net assets of the subsidiary involving the disposed equity was RMB 7,901,901.32,
resulting in a corresponding increase in capital reserve of RMB 7,901,901.32. During the current
period, the subsidiary Zhejiang Hangcha Guozi Robotics Co., Ltd. increased its capital investment.
Following the capital increase, the Company¡¯s net assets increased by RMB 23,161,326.00,
resulting in a corresponding increase in capital reserve of RMB 23,161,326.00.
¢Ù During the current period, the Company acquired a minority stake in Hangcha Group Leasing
Co., Ltd. The difference between the acquisition cost and the newly acquired net assets was RMB
During the current period, the Company acquired a minority stake in Guiyang Hangcha Forklift
Sales Co., Ltd. The difference between the acquisition cost and the newly acquired net assets was
RMB 8,124.94, resulting in a corresponding decrease in capital reserve of RMB 8,124.94.
¢Ú During the current period, the capital premium decreased by RMB 22,166,631.62 due to the
business combination involving Zhejiang Guozi Robotics Co., Ltd. and other entities under
common control.
Due to the change of capital reserve of associates accounted for under the equity method, capital
reserve was increased by RMB177,887,500.61 accordingly.
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                     Unit: Yuan        Currency: CNY
                                                   Accrued amount in the current period
                                              Less:           Less:
                                          Amounts of     Amounts of
                                          transferring   transferring
                              Accrued      from other     from other               After-tax      After-tax
                                                                         Less:
                  Opening     amount     comprehensi comprehensi                     amount        amount        Closing
                                                                        Income
     Item         Account      before      ve income      ve income               attributable attributable to   Account
                                                                          tax
                  Balance   income tax   recognized in recognized in                  to the   non-controllin    Balance
                                                                        expense
                               in the       previous        previous                  parent          g
                                                                           s
                               period      periods to      periods to              company      shareholders
                                            gains and       retained
                                          losses in the   earnings in
                                             period       the period
I. Not to be
reclassified
subsequently to
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
profit or loss
Including:
Remeasuremen
ts of the net
defined benefit
plan
Items under
equity method
that will not be
reclassified to
profit or loss
Changes in fair
value of other
equity
instrument
investments
Changes in fair
value of own
credit risk
II. To be
reclassified                 31623883.2                                  31504188.3               27349658.3
                 -4154529.98                                                          119694.89
subsequently to                       5                                           6                        8
profit or loss
Including:
Items under
equity method -14670146.3 35848384.3                                     35699389.8               21029243.4
that may be                6          1                                           1                        5
reclassified to
profit or loss
Changes in fair
value of other
debt
investments
Profit or loss
from
reclassification
of financial
assets into
other
comprehensive
income
Provision for
credit
impairment of
other debt
investments
Cash flow
hedging
reserve
Translation       10515616.3 -4224501.0                                  -4195201.4
                                                                                      -29299.61 6320414.93
reserve                    8          6                                           5
Total of other
comprehensive -4154529.98                                                             119694.89
income
Other notes, including effective portion of gains/losses of cash flow hedging reclassified to
adjustment to initially recognized amount of hedged items:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                            Unit: Yuan   Currency:CNY
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                   Increase for the         Decrease for the
        Item             Opening balance                                                            Closing balance
                                                        period                  period
Safety production
fee
    Total Amount                2121472.10              11874136.77               13283463.36               712145.51
Other notes, including increase/decrease during the period and reasons for changes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency: CNY
                                                   Increase for the         Decrease for the
        Item             Opening balance                                                            Closing balance
                                                        period                  period
Statutory    surplus
reserve
Discretionary
surplus reserve
Reserve fund
Corporate
development fund
Other
   Total Amount            654906024.50                                                               654906024.50
Notes on surplus reserves, including increase/decrease during the period and reasons for changes:
In accordance with the Company Law of the People's Republic of China and the Articles of
Association of the Company, the Company is required to withdraw 10% of its annual net profit as
legal reserve, which may be discontinued when the accumulated amount of legal reserve reaches
reached 50% of its registered capital, no further withdrawals will be made from the statutory
surplus reserve from 2025.
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency: CNY
                       Item                                 Current period                     Previous period
Undistributed profits at the end of the previous
period before adjustment
Total opening undistributed profit after
                                                                      -136587997.02                     -127415434.15
adjustment (+ for increase; - for decrease)
Undistributed profits at the end of the period
after adjustment
Add: Net profits attributable to owners of the
parent company
Less: Provision of statutory surplus reserve                                                              95232251.25
Discretionary surplus reserve
Withdrawal of general risk reserve
Dividends payable for common shares                                    916868434.30                     467790017.50
Common dividend converted into share capital
Undistributed profits at the end of the period                        7931367233.79                    6656919972.19
Breakdown of adjustment to undistributed profits at the beginning of the period:
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
adjustment according to the Accounting Standards for Business Enterprises and relevant new
regulations.
accounting policies.
error correction.
changes in the scope of consolidation caused by the common control.
adjustments.
(1). Operating revenue and cost Description
"¡Ì Applicable" "¡õ Not applicable"
                                                                            Unit: Yuan      Currency: CNY
                             Current period cumulative                     Previous period amount
      Item
                          Revenue                  Cost                Revenue                 Cost
Operating                17446490464.15        13116042935.18         16495283763.79         12542019284.15
Other business             292161533.71           226674840.63          254374773.14           233714125.07
 Total Amount            17738651997.86        13342717775.81         16749658536.93         12775733409.22
(2). Breakdown of operating revenue and cost
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan     Currency:CNY
                                                                      Total Amount
               Contract category
                                                   Operating income                  Operating cost
Goods category
Forklift trucks, accessories, and others                 17320127587.26                      12999047932.49
Categorization by region
Domestic                                                  9624958806.48                       7665624206.06
Overseas                                                  7695168780.78                       5333423726.43
Categorization by time of goods transfer
Revenue is recognized at a point in time                 17320127587.26                      12999047932.49
                 Total Amount                            17320127587.26                      12999047932.49
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(3). Description of performance obligations
"¡õ Applicable" "¡Ì Not applicable"
(4). Description of apportionment to remaining performance obligations
"¡õ Applicable" "¡Ì Not applicable"
(5). Material contract changes or material transaction price adjustments
"¡õ Applicable" "¡Ì Not applicable"
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan       Currency: CNY
                Item                    Current period cumulative                Previous period amount
Urban maintenance and
construction tax
Education surcharge                                      14279303.84                              9455849.35
Local education surcharge                                 9507015.09                              6310263.99
Stamp duty                                               26902152.34                             13245803.66
Property tax                                             15845809.57                             14373515.25
Land use tax                                              8453333.09                              7854908.93
Vehicle and vessel tax                                     262140.37                               263571.86
Other                                                     2528408.61                              1459659.78
           Total Amount                                 111046902.34                             74909304.79
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan        Currency:CNY
                   Item                     Current period cumulative             Previous period amount
Salary, benefits, and insurance                             462449634.80                         402887066.69
After-sale service fee                                      126284472.16                          91670681.21
Lease                                                        62766578.90                          43321425.14
Advertising and promotion fee                                55001526.76                          39434765.95
Vehicle expenses                                             29034011.45                          33290874.33
Packaging and printing expenses                              22213512.16                          18548736.14
Other                                                       131747706.56                         122363920.05
              Total Amount                                  889497442.79                         751517469.51
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan       Currency: CNY
                        Item                      Current period cumulative         Previous period amount
Salary, benefits, and insurance                                 243269087.49                    212897744.96
Depreciation and amortization                                     71653947.70                    63378343.88
General Service Charge                                            44914888.93                    40643560.19
House lease                                                       24593062.06                    18735264.15
Repair cost                                                       16483749.43                    12969863.36
Office expenses                                                   13427484.83                    11681362.84
Other                                                             74434012.08                    64958817.64
                   Total Amount                                 488776232.52                    425264957.02
Other notes:
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan   Currency: CNY
                        Item                          Current period cumulative       Previous period amount
Salary, benefits, and insurance                                     350957604.70                  320631616.54
Direct investment                                                   398073511.43                  375264381.84
Depreciation and amortization                                         11383960.49                  12464538.34
Other                                                                 98531715.00                 109131361.20
                   Total Amount                                     858946791.62                  817491897.92
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan   Currency: CNY
                       Item                           Current period cumulative       Previous period amount
Interest expenses                                                     43043092.17                   47435277.98
Interest income                                                      -29642658.04                  -63611335.96
Gains or losses on foreign exchange                                  -13156756.44                  -27096995.58
Handling fees                                                          6314304.55                    5293437.26
                  Total Amount                                         6557982.24                  -37979616.30
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan   Currency: CNY
                    By nature                         Current period cumulative       Previous period amount
Government grants related to assets                                  14311099.78                   11524835.06
Government grants related to income                                  80816211.96                   76207269.60
Refund of handling fees for withholding personal
income tax
Additional deduction of value-added tax                               57629676.61                146546001.19
                  Total Amount                                       153258065.53                235964301.69
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan   Currency: CNY
                                                                Current period
                         Item                                                         Previous period amount
                                                                 cumulative
Income from long-term equity investments recognized
under the equity method
Investment income from disposal of long-term equity
investments
Investment income from held-for-trading financial                      -1640250.94                    41526.64
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
assets during the holding period
Dividend income from investments in other equity
instruments during the holding period
Interest income from debt investments during the
holding period
Interest income from other debt investments during the
holding period
Investment income from disposal of held-for-trading
financial assets
Investment income from disposal of other equity
                                                                                                  -115500.00
instrument investments
Investment income from disposal of debt investments
Investment income from disposal of other debt
investments
Revenue from debt restructuring
                      Total Amount                                470405856.40                 384508706.52
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan    Currency: CNY
    Sources generating gains on changes in fair value    Current period cumulative   Previous period amount
Held-for-trading financial assets                                        347215.23                     333.33
Including: Wealth management products                                    347215.23                     333.33
Derivative financial assets                                                                        1640250.93
Including: Gains on changes in fair value from
derivative financial liabilities
Derivative financial liabilities                                        366815.63                 -362904.37
Including: Gains on changes in fair value from
derivative financial liabilities
                       Total Amount                                     714030.86                1277679.89
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan    Currency: CNY
                          Item                           Current period cumulative   Previous period amount
Bad debt losses on notes receivable                                       88003.37                  389993.14
Loss due to bad debt of accounts receivable                           -30708498.29              -59393508.30
Loss due to bad debt of other receivables                              -1225527.05                   -5289969
Impairment losses on debt investments
Impairment losses on other debt investments
Bad debt losses on long-term receivables                              -1956316.79                -1306672.95
Impairment losses related to financial guarantees
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
                      Total Amount                                      -33802338.76                  -65600157.11
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan       Currency: CNY
                           Item                             Current period cumulative      Previous period amount
I. Impairment losses on contract assets                                   -3943330.13                   -6899957.31
II. Loss on decline in value of inventories or impairment
                                                                        -25994123.55                  -36739703.87
of contractual performance costs
III. Impairment losses on long-term equity investments
IV. Impairment losses on investment properties
V. Impairment losses on fixed assets
VI. Impairment losses on construction materials
VII. Impairment losses on construction in progress
VIII. Impairment losses on productive biological assets
IX. Impairment losses on oil and gas assets
X. Impairment losses on intangible assets
XI. Goodwill impairment losses
XII. Others
                      Total Amount                                      -29937453.68                  -43639661.18
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan       Currency: CNY
                          Item                              Current period cumulative      Previous period amount
Gains on disposal of fixed assets                                          -205160.45                    2359941.14
Gains on disposal of right-of-use assets                                    516746.86                     413188.78
                     Total Amount                                           311586.41                    2773129.92
Other notes:
None
Non-operating revenue
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan       Currency: CNY
                                                                                              Amounts included in
                                           Current period                                     non-recurring gains
               Item                                               Previous period amount
                                            cumulative                                         and losses of the
                                                                                                    period
Total gains from disposal of
non-current assets
Including: Gains from disposal of
fixed assets
Gains from disposal of intangible
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
assets
Gains from exchange of
non-monetary assets
Receipt of donations
Government grants
Accounts not to be paid                            424523.85                   1205475.07              424523.85
Gains from confiscation                            649907.28                   1053978.05              649907.28
Other                                              204591.17                    379966.25              204591.17
          Total Amount                            1524515.20                   2726395.54             1524515.20
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan     Currency: CNY
                                                                                            Amounts included in
                                                                                            non-recurring gains
                Item                  Current period cumulative   Previous period amount
                                                                                             and losses of the
                                                                                                  period
Total losses from disposal of
non-current assets
Including: Losses from disposal
of fixed assets
Losses from disposal of intangible
assets
Losses from exchange of
non-monetary assets
Fines                                               2793930.31                  227724.64             2793930.31
Outward donations                                     16330.00                    3000.00               16330.00
Compensation and liquidated
damages
Other                                               1407354.16                  239076.03             1407354.16
           Total Amount                             4476206.76                 1258313.95             4476206.76
Other notes:
None
(1). Statement of income tax expenses
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan     Currency: CNY
                 Item                          Current period cumulative             Previous period amount
Current income tax expenses                                    321054579.76                         318152858.38
Deferred tax expenses                                           -39583699.41                        -35182908.82
             Total Amount                                      281470880.35                         282969949.56
(2). Process of adjusting accounting profits and income tax expenses
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan     Currency: CNY
                          Item                                         Current period cumulative
Total profits                                                                                      2599106925.74
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Income tax expenses calculated based on
statutory/applicable tax rates
Impact of different tax rates applicable to subsidiaries                                           40767206.21
Impact of adjusting income tax in previous periods
Impact of non-taxable income                                                                       -87728223.94
Effect of addition and deduction                                                                   -60401911.12
Impact of non-deductible costs, expenses, and losses                                                  191205.12
Impact of applying deductible losses for which no
deferred tax assets have been recognized in previous
periods
Impact of deductible temporary differences or
deductible losses for which no deferred income tax                                                  -1223434.76
assets have been recognized in the current period
Income tax expenses                                                                               281470880.35
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
For details of the net amount of other comprehensive income after tax, please refer to Note VII (57)
to Section VIII of the report.
(1).Cash related to operating activities
Other cash received related to business activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan   Currency: CNY
                   Item                           Current period cumulative          Previous period amount
Government grants                                                  85442099.66                       98255673.04
Lease income                                                       42099955.96                       43701484.48
Interest income                                                    29642658.04                       63585375.53
Receipt of rent from finance lease
business
Receipt and return of guarantee deposits                            88171998.36                    96537852.36
Receipt of Cash and bank balances and
guarantee deposits not classified as cash                           92855285.59                    61168836.22
and cash equivalents
Other                                                                9155531.97                    24857980.86
              Total Amount                                         546328159.83                   632869489.54
Notes on other cash receipts related to operating activities:
None
Other cash paid related to business activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Unit: Yuan   Currency: CNY
                  Item                            Current period cumulative          Previous period amount
Payment and return of deposits                                     97942681.28                       90506545.23
Payment of principal for finance lease
operations
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Payment of cash and bank balances that
do not qualify as cash and cash                                91983502.45                      50145060.75
equivalents and deposits
Cash paid for sales expenses                                  403457327.64                     318967215.56
Cash paid for administrative expenses                         144451465.54                     127466077.37
Cash paid for R&D expenses                                     97086337.44                     107514043.22
Other                                                          21314064.54                      38469880.00
              Total Amount                                    911271647.44                     827827627.23
Notes on other cash payments related to operating activities:
None
(2). Cash related to investment activities
Cash received in relation to significant investment activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan    Currency: CNY
                   Item                       Current period cumulative           Previous period amount
Redemption of bank finance                                    173023900.00                        35368057.18
Recovery of restricted bank deposits                           12041120.00
Disposal of other equity instruments                                                               34500.00
              Total Amount                                    185065020.00                      35402557.18
Description of cash received in relation to significant investment activities
None
Cash paid in relation to significant investment activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan Currency: CNY
                   Item                       Current period cumulative           Previous period amount
Purchase of bank finance                                      187273740.00                        85750160.00
Purchase of interests of minority
subsidiaries
Purchase of other non-current financial
assets
Acquisition of equity in joint ventures                           42840.00
Payment for investment in subsidiaries                                                          12041120.00
              Total Amount                                    214700738.15                      98644301.62
Description of cash paid in relation to significant investment activities
None
Other cash received related to investment activities
"¡õ Applicable" "¡Ì Not applicable"
Other cash paid related to investment activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                             Unit: Yuan    Currency: CNY
                  Item                        Current period cumulative           Previous period amount
Losses on payment of derivative financial
assets
Disposal of cash outflow of subsidiaries                                                          1326020.27
              Total Amount                                                                        1762249.85
Notes on other cash payments related to investment activities:
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
None
(3). Cash received in relation to financing activities
Other cash received related to fund-raising activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                               Unit: Yuan   Currency: CNY
                   Item                         Current period cumulative          Previous period amount
Discounted outstanding notes                                    178789096.50                     230000000.00
Receipt of cross-borrowing from related
parties
Sale-leaseback                                                  57149171.51
Disposal of part of equity interest in
subsidiaries
              Total Amount                                     257114268.01                     284298383.57
Notes on other cash receipts related to financing activities:
None
Other cash paid related to fund-raising activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                               Unit: Yuan   Currency: CNY
                   Item                         Current period cumulative          Previous period amount
Payment of bill discounting at maturity                         230000000.00
Payment of cross-borrowing to related
parties
Rental payments                                                 53963557.73                      46703086.14
Sale-leaseback                                                   8000090.00
             Total Amount                                      450434175.49                     230859885.15
Notes on other cash payments related to financing activities:
None
Changes in Liabilities Arising from Financing Activities
"¡Ì Applicable" "¡õ Not applicable"
                                                                               Unit: Yuan   Currency: CNY
                                   Increase for the period       Decrease for the period
                Opening
   Item                                            Non-cash                     Non-cash       Closing balance
                balance         Cash Change                    Cash Change
                                                    change                        change
Short-term
borrowings
Long-term
borrowings
Long-term
borrowings
due within
one year
Other
payables
Long-term
payables
(including
long-term
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
payables
due within
one year)
Lease
liabilities
(including
those due
within one
year)
    Total
  Amount
(4).Description of cash flows listed on a net basis
"¡õ Applicable" "¡Ì Not applicable"
(5).Significant activities and financial effects that do not involve current cash receipts and
disbursements but affect the Company¡¯s financial position or may affect the Company's cash
flows in the future
"¡õ Applicable" "¡Ì Not applicable"
(1). Additional information on cash flow statement
"¡Ì Applicable" "¡õ Not applicable"
                                                                                 Unit: Yuan   Currency: CNY
       Additional information              Amount for the current period          Preceding period comparative
Net profit                                                      2317636045.39                    2176503246.53
Add: Provision for impairment of assets                           29937453.68                      43639661.18
Credit impairment loss                                            33802338.76                      65600157.11
Depreciation of fixed assets, depletion of
oil and gas assets, and depreciation of                          405355217.46                     341265306.60
productive biological assets
Amortization of right-of-use assets                               45374055.13                      41795323.39
Amortization of intangible assets                                 21166332.43                      20099565.24
Amortization of long-term amortized
expenses
Loss on disposal of fixed assets, intangible
assets, and other long-term assets (¡°-¡± for                         -311586.41                      -2773129.92
gain)
Loss on scrapping of fixed assets (¡°-¡± for
gain)
Loss from changes in fair value (¡°-¡± for
                                                                    -714030.86                      -1277679.89
gain)
Financial expenses (¡°-¡± for gain)                                  29886335.73                     20312321.97
Investment losses (¡°-¡± for gain)                                 -470405856.40                   -384508706.52
Decrease in deferred tax assets (¡°-¡± for
                                                                  -39522191.36                    -35763642.70
increase)
Increase in deferred tax liabilities (¡°-¡± for
decrease)
Decrease in inventory (¡°-¡± for increase)                        -1169750753.61                   -539992949.30
Decrease in operating receivables (¡°-¡± for
                                                                 -712950911.94                   -893578761.62
increase)
Increase in operating payables (¡°-¡± for                         1188126527.80                     502563833.14
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
decrease)
Other                                                          -1409326.59                      -22400.30
Net cash flows from operating activities                     1683901243.07                  1361574668.81
Debt converted to capital
Convertible corporate bonds maturing
within one year
Financial lease of fixed assets
Closing balance of cash                                         4336449071.38                   4141053265.27
Less: Opening balance of cash                                   4141053265.27                   3907169801.14
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents                        195395806.11                    233883464.13
(2). Net cash from acquiring subsidiaries paid in the current period
"¡õ Applicable" "¡Ì Not applicable"
(3). Net cash from disposal of subsidiaries received in the current period
"¡õ Applicable" "¡Ì Not applicable"
(4). Composition of cash and cash equivalents
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan   Currency: CNY
                     Item                           Closing balance                    Opening balance
I. Cash                                                       4336449071.38                    4141053265.27
Including: cash on hand                                          5932401.96                        1232590.16
      Bank deposits readily available for
payment
      Other cash and bank balances
readily available for payment
      Central bank deposit available for
payment
      Deposit from the same trade
      Call loan to the same trade
II. Cash Equivalents
including: bond investment maturing
within three months
II. Closing balance of cash and cash
equivalents
Including: Cash and cash equivalents
restrictedly used in the parent company or
subsidiaries
(5). Restricted scope of use but still presented as cash and cash equivalents
"¡õ Applicable" "¡Ì Not applicable"
(6). Cash and bank balances not classified as cash and cash equivalents
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan   Currency: CNY
          Item                 Closing balance          Opening balance                   Because
Other cash and bank
balances
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
Other cash and bank
balances
Other cash and bank                                                      Deposits for foreign exchange
balances                                                                 derivatives
Other cash and bank                                                      Guarantee deposit for bank
balances                                                                 acceptance
Other cash and bank
balances
                                                                         Restricted use due to incomplete
Bank deposits                                                12041120.00 bank account information of a
                                                                         newly established company
     Total Amount                  40769564.91               41641348.05                  /
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Notes on item "Others" for adjustment to closing balance of the previous period, adjustment
amount, etc.:
"¡õ Applicable" "¡Ì Not applicable"
(1).Monetary items in foreign currency
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                         Unit:
                                                                                       In RMB at the end of
                                    Closing balance of        Exchange rate for
                Item                                                                        the period
                                    foreign currencies           translation
                                                                                         Account Balance
Cash and bank balances                                -                           -            530101559.02
Including:                                  32914382.55                      7.0288            231348612.07
       EUR                                  10689303.20                      8.2355              88031756.50
       CAD                                   5247431.70                      5.1142              26836415.20
       AUD (Australian Dollars)              5411730.88                      4.6892              25376688.44
       THB                                 217590023.44                      0.2225              48413780.22
       BRL (Brazilian Real)                 36507026.15                      1.2776              46641376.61
       IDR                               18138476138.72                      0.0004               7255390.46
       VND                               36742718834.00                      0.0003              11022815.65
       AED                                   9023495.18                      1.9071              17208707.66
       JPY                                 442319893.00                      0.0448              19815931.21
       MYR                                   4705863.50                      1.7319               8150085.00
Accounts receivable                                   -                           -           1594767331.31
Including:                                 185338430.48                      7.0288           1302706760.16
       EUR                                   6641409.84                      8.2355              54695330.74
       CAD                                   5277180.15                      5.1142              26988554.72
       AUD (Australian Dollars)              7169391.75                      4.6892              33618711.79
       THB                                 569918826.97                      0.2225            126806939.00
       BRL (Brazilian Real)                 14945318.15                      1.2776              19094138.47
       IDR                               28369581279.85                      0.0004              11347832.51
       VND                               21472324248.12                      0.0003               6441697.27
       AED                                   4581328.01                      1.9071               8737050.65
       JPY                                    433779.46                      0.0448                 19433.32
       MYR                                   2489106.00                      1.7319               4310882.68
                            The 2025 Annual Report of Hangcha Group Co., Ltd.
Other receivables                                     -                        -    19446363.92
Including:                                    831163.23                   7.0288     5842080.11
       EUR                                     14817.00                   8.2355      122025.40
       CAD                                    812412.79                   5.1142     4154841.49
       AUD (Australian Dollars)               174991.80                   4.6892      820571.55
       THB                                   8003259.51                   0.2225     1780725.24
       BRL (Brazilian Real)                  1132498.14                   1.2776     1446879.62
       IDR                                2935443672.40                   0.0004     1174177.47
       JPY                                  88001999.80                   0.0448     3942489.59
       MYR                                     93870.00                   1.7319      162573.45
  Accounts payable                                    -                        -   130580121.05
Including:                                  10581327.69                   7.0288    74374036.07
       EUR                                    290550.17                   8.2355     2392825.93
       CAD                                    752684.91                   5.1142     3849381.17
       AUD (Australian Dollars)               430611.80                   4.6892     2019224.85
       THB                                   4377622.07                   0.2225      974020.91
       BRL (Brazilian Real)                   250869.36                   1.2776      320510.69
       IDR                                 557170296.08                   0.0004      222868.12
       AED                                    145986.71                   1.9071      278411.25
       JPY                                1004779165.63                   0.0448    45014106.62
       MYR                                    655196.86                   1.7319     1134735.44
Other payables                                        -                        -     8038490.48
Including:                                    163540.27                   7.0288     1149491.85
       EUR                                    394717.05                   8.2355     3250692.27
       CAD                                    183526.78                   5.1142      938592.66
       AUD (Australian Dollars)                39398.87                   4.6892      184749.18
       THB                                   5671591.13                   0.2225     1261929.03
       BRL (Brazilian Real)                      311.47                   1.2776         397.93
       IDR                                  75121629.76                   0.0004       30048.65
       VND                                1391350752.00                   0.0003      417405.23
       JPY                                  17972850.00                   0.0448      805183.68
Other notes:
None
(2).Notes on overseas operating entities, including the principal overseas operating locations,
bookkeeping currencies and selection basis to be disclosed of significant overseas operating
entities. If there are changes bookkeeping currencies, the reasons should also be disclosed.
"¡Ì Applicable" "¡õ Not applicable"
Hangcha America, with main business domicile in the United States and USD as its bookkeeping
currency.
Hangcha Europe, with main business domicile in Germany and EUR as its bookkeeping currency.
Hangcha Canada, with main business domicile in Canada and CAD as its bookkeeping currency.
Hangcha Netherlands, with main business domicile in the Netherlands and EUR as its
bookkeeping currency.
Hangcha Australia, with main business domicile in Australia and AUD as its bookkeeping
currency.
Hangcha Thailand, with main business domicile in Thailand and THB as its bookkeeping
currency.
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha Brazil, with main business domicile in Brazil and BRL as its bookkeeping currency.
Hangcha Indonesia, with main business domicile in Indonesia and IDR as its bookkeeping
currency.
Hangcha Japan, with main business domicile in Japan and JPY as its bookkeeping currency.
(10) Hangcha Europe Rental & Sales, with main business domicile in France and EUR as its
bookkeeping currency.
Hangcha Malaysia, with main business domicile in Malaysia and MYR as its bookkeeping
currency.
Hangcha Vietnam, with main business domicile in Vietnam and VND as its bookkeeping
currency.
Hangcha Thailand Manufacturing, with main business domicile in Thailand and THB as its
bookkeeping currency.
Hangcha Middle East, with main business domicile in the United Arab Emirates and AED as its
bookkeeping currency.
(1). As lessee
"¡Ì Applicable" "¡õ Not applicable"
(VII)-25 Explanation of Right-of-Use Assets.
low-value assets, please refer to Section VIII Financial Report (V)-38 Explanation of Leases. The
amount of short-term lease expenses recognized in current profits or losses is as follows:
                                                                   Current period      Preceding period
                              Item
                                                                    cumulative           comparative
Expenses for short-term lease                                            47596184.40          25342725.46
                            Total                                        47596184.40          25342725.46
                                                                   Current period      Preceding period
                              Item
                                                                    cumulative           comparative
Interest expense for lease liabilities                                   10515183.78           8883041.53
Total cash outflow related to leasing                                   101559742.13          72137191.84
management, please refer to Section VIII Financial Report (XII)-1 Explanation of Financial
Instrument Risks.
Variable lease payments that are not included in the measurement of lease liabilities
"¡õ Applicable" "¡Ì Not applicable"
Lease expenses for short-term leases or low-value asset leases that are accounted for using the
simplified approach
"¡Ì Applicable" "¡õ Not applicable"
The amount of short-term lease expenses recognized in current profits or losses with simplified
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
treatment is RMB 47,596,184.40.
Sale and leaseback transactions and basis of judgment
"¡õ Applicable" "¡Ì Not applicable"
Total cash outflows associated with leases: 101,559,742.13(Unit: Yuan;                   Currency: CNY)
(2). As lessor
Operating leases as the lessor
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan     Currency: CNY
                                                                Including: Income related to variable lease payments
            Item                       Lease income
                                                                          not included in lease receivables
Lease income                                    401332524.84
       Total Amount                             401332524.84
Financing leases as the lessor
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan     Currency: CNY
                                       Sale
                                                                        Income related to variable lease payments not
               Item                   profit     Financing income
                                                                            included in net investment in leases
                                     and loss
Financing income from net
leasing investment
          Total Amount                                   17191885.76
Reconciliation table between undiscounted lease receivables and net lease investment
"¡Ì Applicable" "¡õ Not applicable"
                          Item                                      Closing balance             Opening balance
Undiscounted lease receipts                                                  303808702.92             288892719.57
less: unrealized financing gains related to lease receipts                    19705872.22              15468884.62
Net leasing investment                                                       284102830.70             273423834.95
Undiscounted lease receivables for the next five years
"¡Ì Applicable" "¡õ Not applicable"
                                                                                   Unit: Yuan     Currency: CNY
                                                                      Annual undiscounted lease receivables
                          Item
                                                                    Closing amount             Opening amount
Year 1                                                                      184680056.59              196164232.60
Year 2                                                                       82512477.73               67371462.93
Year 3                                                                       26989443.82               20035613.32
Year 4                                                                        7703123.41                 3568152.72
Year 5                                                                        1923601.37                 1753258.00
Total undiscounted lease receivables after five years                       303808702.92              288892719.57
(3). Recognition of gains and losses on sales under finance leases as a manufacturer or
distributor
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
                             The 2025 Annual Report of Hangcha Group Co., Ltd.
The Company, as a lessor, mainly leases means of transportation for a term ranging from one to
five years with the option for renewal.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                            Unit: Yuan    Currency:CNY
                          Item                         Current period cumulative    Previous period amount
Salary, benefits, and insurance                                     350957604.70              320631616.54
Direct investment                                                   398073511.43              375264381.84
Depreciation and amortization                                         11383960.49               12464538.34
Other                                                                 98531715.00             109131361.20
                     Total Amount                                   858946791.62              817491897.92
Including: expenditures on research and development
that are expensed
Capitalized R&D expenditures
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
Significant capitalized R&D projects
"¡õ Applicable" "¡Ì Not applicable"
Provision for impairment of development expenditures
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
(1). Merger of enterprises under the same control within the current period
"¡Ì Applicable" "¡õ Not applicable"
                                                                           Unit: Yuan     Currency: CNY
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                            Revenues     Net profits
                                                              of the        of the
                                                             merged        merged
                                                           entity from   entity from
            Proportio Basis for                                                                      Net profits
                                                               the           the
               n of   recognizin                                                       Revenues of     of the
                                                 Basis of   beginning     beginning
             equity g business                                                          the merged     merged
Consolidate                           Date of   recognizin    of the        of the
            obtained    merger                                                         entity in the  entity in
 d entity                             merger     g date of    period        period
              in the   under the                                                       comparative       the
                                                  merger     during        during
            business common                                                               period     comparativ
                                                            which the     which the
             merger     control                                                                       e period
                                                             merger        merger
                                                           takes place   takes place
                                                           to the date   to the date
                                                            of merger     of merger
                      Under the
                      control of
Zhejiang              the same
Guozi                 beneficial            Acquisitio
Robot          71.96% owner                 n       of
Technology            before and            control
Co., Ltd.             after the
                      transfer of
                      shares
Other notes:
None
(2). Merger costs
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan      Currency: CNY
Merger costs                                            Zhejiang Guozi Robot Technology Co., Ltd.
-- Cash
-- Book value of non-cash assets
-- Book value of issued or undertaken obligations
-- Book value of issued equity securities                                                           30069580.00
-- Contingent consideration
-- Notes on contingent considerations and their changes:
None
Other notes:
None
(3). Book value of assets and liabilities of merged entities on dates of merger
"¡Ì Applicable" "¡õ Not applicable"
                                                                              Unit: Yuan      Currency: CNY
                                                Zhejiang Guozi Robot Technology Co., Ltd.
                                       Date of merger                     End of the previous period
Assets:                                            579946780.54                                 611732623.41
Current assets                                     571045506.25                                 601233450.85
Non-current assets                                    8901274.29                                 10499172.56
Liabilities:                                       672518414.15                                 685599497.18
Current liabilities                                659905414.15                                 673290497.18
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Non-current liabilities                            12613000.00                                 12309000.00
Net assets                                        -92571633.61                                -73866873.77
Less: Non-controlling
                                                   -2446627.61                                 -4143192.95
interests
Acquired net assets                               -90125006.00                                -69723680.82
Contingent liabilities of merged entities undertaken in business mergers:
None
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
Existence of any transaction or event leading to the loss of control during the current period
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Is there any situation where the investment in a subsidiary are disposed of in several steps and the
loss of control takes place in the current period?
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Notes on changes in the scope of mergers due to other reasons (such as the establishment of new
subsidiaries, liquidation of subsidiaries, etc.) and related information:
"¡Ì Applicable" "¡õ Not applicable"
                                             Method of                                        Proportion of
                                                           Date of equity
               Company name                    equity                          Contribution   contribution
                                                            acquisition
                                             acquisition                                          (%)
HANGCHA FORKLIFT VIETNAM
                                             Established      April 2025    USD 3 million        100.00
CO.LTD.
HANGCHA MIDDLE EAST GENERAL
                                             Established      July 2025     USD 2 million        100.00
TRADING FZE
Hangcha Group Manufacturing (Thailand)
                                             Established      May 2025      USD 20 million       100.00
Co., Ltd.
Zhejiang Zhichu Jia Material Handling
                                             Established      March 2025    RMB 20 million       41.00
Equipment Co., Ltd.
Hangzhou Hangcha Property Management
                                             Established      April 2025    RMB 1 million        100.00
Service Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
(1). Composition of the Group
"¡Ì Applicable" "¡õ Not applicable"
                                                                    Unit: Ten thousand yuan    Currency: CNY
                     Principal                                                           Holding
     Subsidiary                        Registered      Place of         Nature of                    Method of
                     operating                                                       proportion (%)
       Item                             capital      registration       business                     acquisition
                     locations                                                       Direct Indirect
                  Hangzhou,                      Hangzhou,
Hangzhou Forklift
                  Zhejiang               5040.00 Zhejiang            Manufacturing   65.00           Established
Mast Co., Ltd.
                  province                       province
                                                                                                     Business
Hangzhou Forklift Hangzhou,                      Hangzhou,                                           merger not
Sheet Metal       Zhejiang               4000.00 Zhejiang            Manufacturing   71.37           under
Welding Co., Ltd. province                       province                                            common
                                                                                                     control
                                                                                                     Business
Hangzhou              Hangzhou,                  Hangzhou,                                           merger not
Hangcha Bridge        Zhejiang           3000.00 Zhejiang            Manufacturing   62.33           under
Box Co., Ltd.         province                   province                                            common
                                                                                                     control
Jinan Hangcha         Jinan,                     Jinan,
Forklift Sales Co.,   Shandong           1275.00 Shandong            Commerce        35.00           Established
Ltd.                  Province                   Province
Guangzhou             Guangzhou,                 Guangzhou,
Zhehang Forklift      Guangdong          1100.00 Guangdong           Commerce        34.09           Established
Co., Ltd.             Province                   Province
Shanghai Hangcha
Forklift Sales Co.,   Shanghai           1300.00 Shanghai            Commerce        35.00           Established
Ltd.
Zhejiang Hangcha      Hangzhou,                  Hangzhou,
Import and Export     Zhejiang           2070.00 Zhejiang            Commerce        51.07           Established
Co., Ltd.             province                   province
Hangzhou              Hangzhou,                  Hangzhou,
Hangcha Foundry       Zhejiang           4500.00 Zhejiang            Manufacturing   77.78           Established
Co., Ltd.             province                   province
Hangzhou
                      Hangzhou,                  Hangzhou,
Hangcha Electric
                      Zhejiang           5000.00 Zhejiang            Manufacturing   70.00           Established
Appliance Co.,
                      province                   province
Ltd
Hangzhou
                      Hangzhou,                  Hangzhou,
Hangcha
                      Zhejiang           8000.00 Zhejiang            Commerce        100.00          Established
Materials Trading
                      province                   province
Co., Ltd.
Baoji Hangcha
Engineering           Baoji, Shaanxi                Baoji, Shaanxi
Machinery Co.,        Province                      Province
Ltd.
Hangzhou
                      Hangzhou,                   Hangzhou,
Hangcha
                      Zhejiang             450.00 Zhejiang           Manufacturing   51.00           Established
Machining Co.,
                      province                    province
Ltd.
Hangzhou              Hangzhou,                     Hangzhou,
Hangcha Kangli        Zhejiang                      Zhejiang
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Forklift              province                      province
Attachments Co.,
Ltd.
Hangzhou
                      Hangzhou,                  Hangzhou,
Hangcha Aerial
                      Zhejiang           5000.00 Zhejiang            Manufacturing   67.00    Established
Equipment Co.,
                      province                   province
Ltd.
Hangzhou              Hangzhou,                  Hangzhou,
Hangcha Cab Co.,      Zhejiang            520.00 Zhejiang            Manufacturing   51.92    Established
Ltd.                  province                   province
                      Hangzhou,                  Hangzhou,
Hangcha Group
                      Zhejiang          30000.00 Zhejiang            Commerce        100.00   Established
Leasing Co., Ltd.
                      province                   province
Wuxi Hangcha
                      Wuxi, Jiangsu                 Wuxi, Jiangsu
Forklift Sales Co.,                        600.00                    Commerce        35.00    Established
                      Province                      Province
Ltd.
Suzhou Hangcha        Suzhou,                     Suzhou,
Forklift Sales Co.,   Jiangsu              250.00 Jiangsu            Commerce        35.00    Established
Ltd.                  Province                    Province
Wuhan Hangcha
                      Wuhan, Hubei                  Wuhan, Hubei
Forklift Sales Co.,                        350.00                Commerce            30.00    Established
                      Province                      Province
Ltd.
Nantong Hangcha       Nantong,                    Nantong,
Forklift Sales Co.,   Jiangsu              350.00 Jiangsu            Commerce        31.00    Established
Ltd.                  Province                    Province
Kunshan Hangcha       Kunshan,                    Kunshan,
Forklift Sales Co.,   Jiangsu              320.00 Jiangsu            Commerce        35.00    Established
Ltd.                  Province                    Province
Taizhou Hangcha       Taizhou,                    Taizhou,
Forklift Sales Co.,   Zhejiang             400.00 Zhejiang           Commerce        35.00    Established
Ltd.                  Province                    Province
Xuzhou Hangcha        Xuzhou,                     Xuzhou,
Forklift Sales Co.,   Jiangsu              570.00 Jiangsu            Commerce        35.00    Established
Ltd.                  Province                    Province
Beijing Hangcha
                      Beijing              400.00 Beijing            Commerce        34.00    Established
Forklift Co., Ltd.
Yancheng              Yancheng,                   Yancheng,
Hangcha Forklift      Jiangsu              400.00 Jiangsu            Commerce        33.00    Established
Sales Co., Ltd.       Province                    Province
Gansu Hangcha         Gansu                       Gansu
Forklift Co., Ltd.    Province                    Province
Fujian Hangcha        Fuzhou, Fujian              Fuzhou, Fujian
Forklift Co., Ltd.    Province                    Province
Taixing Hangcha       Taixing,                    Taixing,
Forklift Sales Co.,   Jiangsu              510.00 Jiangsu            Commerce        30.00    Established
Ltd.                  Province                    Province
Yantai Hangcha        Yantai,                     Yantai,
Forklift Sales Co.,   Shandong             200.00 Shandong           Commerce        35.00    Established
Ltd.                  Province                    Province
Qingdao Hangcha       Qingdao,                    Qingdao,
Forklift Sales Co.,   Shandong             350.00 Shandong           Commerce        35.00    Established
Ltd.                  Province                    Province
Changchun
                      Changchun,                    Changchun,
Hangcha Forklift                           200.00                    Commerce        35.00    Established
                      Jilin Province                Jilin Province
Sales Co., Ltd.
Nanning Hangcha       Nanning,                      Nanning,
Forklift Sales Co.,   Guangxi                       Guangxi
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Ltd.                  Zhuang                       Zhuang
                      Autonomous                   Autonomous
                      Region                       Region
Guiyang Hangcha       Guiyang,                     Guiyang,
Forklift Sales Co.,   Guizhou             220.00   Guizhou          Commerce        37.95   Established
Ltd.                  Province                     Province
Tangshan              Tangshan,                    Tangshan,
Hangcha Forklift      Hebei               216.00   Hebei            Commerce        35.00   Established
Sales Co., Ltd.       Province                     Province
Xiangyang             Xiangyang,                   Xiangyang,
Hangcha Forklift      Hubei               150.00   Hubei            Commerce        33.00   Established
Sales Co., Ltd.       Province                     Province
Dongguan              Dongguan,                    Dongguan,
Hangcha Forklift      Guangdong           320.00   Guangdong        Commerce        35.00   Established
Co., Ltd.             Province                     Province
Henan Zhehang         Zhengzhou,                   Zhengzhou,
Forklift Sales Co.,   Henan               600.00   Henan            Commerce        35.00   Established
Ltd.                  Province                     Province
Heilongjiang          Harbin,                      Harbin,
Hangcha Forklift      Heilongjiang        200.00   Heilongjiang     Commerce        35.00   Established
Sales Co., Ltd.       Province                     Province
Xi'an Hangcha         Xi¡¯an, Shaanxi               Xi¡¯an, Shaanxi
Forklift Co., Ltd.    Province                     Province
Shenzhen              Shenzhen,                    Shenzhen,
Hangcha Forklift      Guangdong           380.00   Guangdong        Commerce        35.00   Established
Co., Ltd.             Province                     Province
Foshan Hangcha        Foshan,                      Foshan,
Forklift Sales Co.,   Guangdong           550.00   Guangdong        Commerce        35.00   Established
Ltd.                  Province                     Province
                      Huizhou,                     Huizhou,
Huizhou Hangcha
                      Guangdong           260.00   Guangdong        Commerce        35.00   Established
Forklift Co., Ltd.
                      Province                     Province
Inner Mongolia
                      Hohhot, Inner                Hohhot, Inner
Hangcha Forklift                          300.00                    Commerce        35.00   Established
                      Mongolia                     Mongolia
Sales Co., Ltd.
Zhongshan             Zhongshan,                 Zhongshan,
Hangcha Forklift      Guangdong           350.00 Guangdong          Commerce        35.00   Established
Co., Ltd.             Province                   Province
Yichang Hangcha       Jingzhou,                  Jingzhou,
Forklift Sales Co.,   Hubei               200.00 Hubei              Commerce        35.00   Established
Ltd.                  Province                   Province
Zhanjiang             Zhanjiang,                 Zhanjiang,
Hangcha Forklift      Guangdong           200.00 Guangdong          Commerce        35.00   Established
Co., Ltd.             Province                   Province
Rizhao Hangcha        Rizhao,                    Rizhao,
Forklift Sales Co.,   Shandong            400.00 Shandong           Commerce        26.25   Established
Ltd.                  Province                   Province
Qingyuan              Qingyuan,                  Qingyuan,
Hangcha Forklift      Guangdong           180.00 Guangdong          Commerce        35.00   Established
Co., Ltd.             Province                   Province
Ningxia Hangcha
Forklift Sales Co.,   Ningxia             200.00 Ningxia            Commerce        39.00   Established
Ltd.
Lianyungang           Lianyungang,               Lianyungang,
Hangcha Forklift      Jiangsu             150.00 Jiangsu       Commerce             35.00   Established
Sales Co., Ltd.       Province                   Province
Zhangjiagang          Zhangjiagang,       250.00 Zhangjiagang, Commerce             35.00   Established
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha Forklift      Jiangsu                     Jiangsu
Sales Co., Ltd.       Province                    Province
Yiwu Hangcha          Yiwu,                       Yiwu,
Forklift Sales Co.,   Zhejiang             250.00 Zhejiang         Commerce          35.00    Established
Ltd.                  Province                    Province
Anhui Hangcha
                      Hefei, Anhui                  Hefei, Anhui
Forklift Sales Co.,                        320.00                  Commerce          51.56    Established
                      Province                      Province
Ltd.
Dalian Zhehang        Dalian,                     Dalian,
Forklift Sales Co.,   Liaoning             200.00 Liaoning         Commerce          35.00    Established
Ltd.                  Province                    Province
HANGCHA
EUROPE GMBH           Germany            3517.74 Germany           Commerce          100.00   Established
I.G.
HC FORKLIF
AMERICA               USA                3306.68 USA               Commerce          100.00   Established
CORPORATION
Hangzhou
Hangzhong             Hangzhou,                  Hangzhou,
Engineering           Zhejiang           8500.00 Zhejiang          Manufacturing     81.18    Established
Machinery Co.,        province                   province
Ltd.
Wuhu Hangcha
                      Wuhu, Anhui                   Wuhu, Anhui
Forklift Sales Co.,                        200.00                  Commerce          35.00    Established
                      Province                      Province
Ltd.
                    Guigang,                     Guigang,
Guigang Hangcha Guangxi                          Guangxi
Forklift Sales Co., Zhuang                200.00 Zhuang            Commerce          35.00    Established
Ltd.                Autonomous                   Autonomous
                    Region                       Region
Zibo Hangcha        Zibo,                        Zibo,
Forklift Sales Co., Shandong              200.00 Shandong          Commerce          35.00    Established
Ltd.                Province                     Province
Zhejiang Hangcha Hangzhou,                       Hangzhou,
Guozi Robotics      Zhejiang             9298.96 Zhejiang          Manufacturing     44.52    Established
Co., Ltd.           province                     province
Hangzhou
Hangcha
                    Hangzhou,                    Hangzhou,
Machinery
                    Zhejiang             2300.00 Zhejiang          Manufacturing     60.87    Established
Equipment
                    province                     province
Manufacturing
Co., Ltd.
Hangcha Group
(Tianjin)
                    Tianjin             25000.00 Tianjin           Commerce          100.00   Established
Financing Leasing
Co., Ltd.
Hangcha Group
(Tianjin) Forklift Tianjin                 300.00 Tianjin          Commerce          35.00    Established
Sales Co., Ltd.
Hangcha Forklift
                    Canada                 709.01 Canada           Commerce          100.00   Established
Canada Inc.
Hangcha Group
(Tianjin) New
                    Tianjin              2000.00 Tianjin           Manufacturing     100.00   Established
Energy Forklift
Co., Ltd.
Zhumadian           Zhumadian,                      Zhumadian,
Hangcha Forklift Henan                              Henan
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
Co., Ltd.           Province                     Province
Hangcha
                    Netherlands         1575.00 Netherlands      Commerce           100.00   Established
Netherlands B.V.
Zhejiang Hangcha    Hangzhou,                   Hangzhou,
Parts Sales Co.,    Zhejiang            5000.00 Zhejiang         Commerce           80.00    Established
Ltd.                province                    province
HC FORKLIFT
AUSTRALIA           Australia           3593.25 Australia        Commerce           100.00   Established
PTY. LTD.
HANGCHA
(THAILAND)          Thailand            2142.40 Thailand         Commerce           100.00   Established
CO.LTD.
HANGCHA
                    Brazil              2054.94 Brazil           Commerce           100.00   Established
BRASIL LTDA.
Hangzhou
                    Hangzhou,                   Hangzhou,
Hangcha Precision
                    Zhejiang            2000.00 Zhejiang         Manufacturing      90.00    Established
Manufacturing
                    province                    province
Co., Ltd.
Zhejiang Hangcha
                    Hangzhou,                   Hangzhou,
Siweis
                    Zhejiang            2000.00 Zhejiang         Commerce           51.00    Established
International
                    province                    province
Trade Co., Ltd.
Hangzhou
                    Hangzhou,                    Hangzhou,
Hangcha
                    Zhejiang              450.00 Zhejiang        Commerce           51.00    Established
E-commerce Co.,
                    province                     province
Ltd.
Hangcha New
                    Wenzhou,                     Hangzhou,
Energy Forklift
                    Zhejiang              200.00 Zhejiang        Commerce           51.00    Established
(Wenzhou) Co.,
                    Province                     province
Ltd.
Hangzhou
                    Hangzhou,                   Hangzhou,
Hangcha Yunrui
                    Zhejiang            2000.00 Zhejiang         Manufacturing      51.00    Established
Technology Co.,
                    province                    province
Ltd.
Zhejiang Hangbo     Hangzhou,                   Hangzhou,
Electrical Drive    Zhejiang            5000.00 Zhejiang         Manufacturing      55.00    Established
Co., Ltd.           province                    province
PT HANGCHA
INDONESIA           Indonesia           1425.00 Indonesia        Commerce           100.00   Established
FORKLIFT
HANGCHA
                    Japan               1656.51 Japan            Commerce           90.09    Established
JAPAN CO.LTD.
HANGCHA
EUROPE
                    France              1237.86 France           Commerce           60.00    Established
RENTAL &
SALES
HANGCHA
(MALAYSIA)          Malaysia              365.58 Malaysia        Commerce           100.00   Established
SDN. BHD.
Zhejiang Zhichu
Jia Material        Huzhou,                     Huzhou,
Handling            Zhejiang            2000.00 Zhejiang         Manufacturing      41.00    Established
Equipment Co.,      Province                    Province
Ltd.
Hangcha Forklift
                    Vietnam             2184.33 Vietnam          Commerce           100.00   Established
Vietnam Co., Ltd.
Hangzhou            Hangzhou,             100.00 Hangzhou,       Commerce           100.00   Established
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha Property    Zhejiang                       Zhejiang
Management          province                       province
Service Co., Ltd.
Hangcha Group
Manufacturing
                    Thailand          14233.28 Thailand            Manufacturing    100.00             Established
(Thailand) Co.,
Ltd.
HANGCHA
MIDDLE EAST
                    The UAE            1435.82 The UAE             Commerce         100.00             Established
GENERAL
TRADING FZE
Notes on inconsistency between the shareholding proportion and the vote proportion in a
subsidiary:
The Company holds less than 50% of the shares in 47 subsidiaries including Jinan Hangcha
Forklift Sales Co., Ltd., but pursuant to the Voting Trust Agreement by and between the Company
and other shareholders of such subsidiaries, the voting rights corresponding to the shares held by
certain other shareholders in the target companies will be exercised by the Company on their
behalf. As a result, the Company has more than 50% of the voting rights in all of these
subsidiaries.
Basis for controlling an invested entity despite holding half or less of votes or not controlling an
invested entity despite holding more than half of votes:
None
Basis for controlling significant structured entities included in the scope of consolidation:
None
Basis for determining whether the Company is an agent or principal:
None
Other notes:
None
(2). Subsidiaries with material non-controlling interests
"¡Ì Applicable" "¡õ Not applicable"
                                                                                Unit: Yuan        Currency: CNY
                                                       Gains or losses     Declared dividends
                                    Holding
                                                        attributable to    to be distributed to       Closing
                                  proportion of
         Subsidiary                                    non-controlling       non-controlling       non-controlling
                                 non-controlling
                                                       interests in the      interests in the         interests
                                  shareholders
                                                             period               period
Hangzhou Forklift Mast Co.,
Ltd.
Hangzhou Forklift Sheet
Metal Welding Co., Ltd.
Hangzhou Hangcha Bridge
Box Co., Ltd.
Jinan Hangcha Forklift Sales
Co., Ltd.
Guangzhou Zhehang Forklift
Co., Ltd.
Shanghai Hangcha Forklift            65.00%                   2911690.67           3380000.00         20297137.73
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
Sales Co., Ltd.
Zhejiang Hangcha Import and
Export Co., Ltd.
Hangzhou Hangcha Foundry
Co., Ltd.
Hangzhou Hangcha Electric
Appliance Co., Ltd
Notes on inconsistency between the shareholding proportion and the vote proportion of
non-controlling shareholders in a subsidiary:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                                                                The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Key financial information of significant non-wholly-owned subsidiaries
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                         Unit: Ten thousand yuan     Currency: CNY
                                                       Closing balance                                                                 Opening balance
       Subsidiary           Current  Non-current                 Current    Non-current Total              Current  Non-current                Current    Non-current         Total
                                                 Total assets                                                                   Total assets
                             assets    assets                   liabilities  liabilities liabilities        assets    assets                  liabilities  liabilities     liabilities
Hangzhou Forklift Frame     51689.16 11639.81      63328.97        47725.88     306.51     48032.39        51837.16 13525.30      65362.46       50783.50     355.41           51138.91
Hangzhou Forklift &
Metal Working &             18448.20     7737.69     26185.89      16689.63     140.82     16830.45        24888.76       9197.32    34086.08      25440.09       56.46       25496.55
Welding
Hangcha Bridge Box          15932.81     3912.50     19845.31      9281.40       67.88      9349.28      16206.13         4919.23    21125.36      11250.17       36.43       11286.60
Jinan Hangcha                3062.11      614.44      3676.55       522.90       32.02       554.92       3452.74          495.60     3948.34        928.57        3.44         932.01
Guangzhou Zhehang            3482.83     2119.43      5602.26      2337.06     1158.54      3495.60       3470.55          981.76     4452.31       1922.81      371.22        2294.03
Shanghai Hangcha             6223.16     6132.72     12355.88      7633.35     1599.00      9232.35       7557.29         3324.89    10882.18       7434.48      252.13        7686.61
Hangcha Imp.&Exp.          246032.79     2936.45    248969.24    239995.35                239995.35     219497.45         2429.87   221927.32     212110.48                  212110.48
Hangcha Casting             10174.18     3199.69     13373.87      5259.14                  5259.14       7207.94         3432.77    10640.71       2380.21                    2380.21
Hangcha Electric
Appliance
                                                Current period cumulative                                                               Previous period amount
                                                                  Total                                                                            Total
   Subsidiary                                                                     Cash flows from             Operating                                           Cash flows from
                    Operating income       Net profit        comprehensive                                                     Net profit      comprehensive
                                                                                 operating activities          income                                            operating activities
                                                                 income                                                                           income
Hangzhou
Forklift Frame
Hangzhou
Forklift & Metal
Working &
Welding
Hangcha Bridge
Box
Ji¡¯nan Hangcha              19838.30                679.07            679.07                      659.45         24887.40            635.54             635.54                   959.99
                                         The 2025 Annual Report of Hangcha Group Co., Ltd.
Guangzhou
Zhehang
Shanghai
Hangcha
Hangcha
Imp.&Exp.
Hangcha Casting    112545.44    304.22         304.22                        2.23   112591.90     414.21    414.21    401.48
Hangcha Electric
Appliance
Other notes:
None
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
(4). Significant restrictions on the use of business group assets and the repayment of business
group debts
"¡õ Applicable" "¡Ì Not applicable"
(5). Financial or support provided to structured entities included in the scope of consolidated
financial statements
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
owner's equity changes
"¡Ì Applicable" "¡õ Not applicable"
(1).Explanations on changes in share in owners¡¯ equity of the subsidiaries
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Holding            Holding
                        Subsidiary                              Date of change      proportion before   proportion after
                                                                                         change             change
Hangzhou Hangcha Electric Appliance Co., Ltd                  May 2025                   65.35%             70.00%
Hangcha Group Leasing Co., Ltd.                               August 2025                95.64%            100.00%
Guiyang Hangcha Forklift Sales Co., Ltd.                      February 2025              34.77%             37.95%
Zhejiang Hangcha Guozi Robotics Co., Ltd.                     August 2025                50.59%             44.52%
Hangcha New Energy Forklift (Wenzhou) Co., Ltd.               February 2025             100.00%             51.00%
HANGCHA JAPAN CO.LTD.                                         August 2025               100.00%             90.09%
Hefei Hanhe Intelligent Logistics Technology Co., Ltd.        August 2025                62.50%             [Note]
Shanghai Hangcha Okamura Co., Ltd.                            August 2025                51.00%             [Note]
[Note] The Company transferred its 62.50% equity stake in Hefei Hanhe Intelligent Logistics
Technology Co., Ltd. and its 51.00% equity stake in Zhejiang Hangcha Okamura Intelligent Technology
Co., Ltd. to Zhejiang Hangcha Guozi Robotics Co., Ltd. The Company's direct shareholdings in Hefei
Hanhe Intelligent Logistics Technology Co., Ltd. and Zhejiang Hangcha Okamura Intelligent
Technology Co., Ltd. have become indirect shareholdings.
(2).Impact of transactions on non-controlling shareholders' equity and owner's equity attributable
to the parent company
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan Currency: CNY
                                               Hangzhou
                                                                                      Guiyang
                                               Hangcha                                                 Hangcha New
                                                                 Hangcha Group        Hangcha
                                                Electric                                               Energy Forklift
                                                                Leasing Co., Ltd.   Forklift Sales
                                             Appliance Co.,                                          (Wenzhou) Co., Ltd.
                                                                                      Co., Ltd.
                                                  Ltd
Cost of purchase/consideration of disposal
-- Cash                                        32637400.00           25375200.00         230300.00           1176000.00
-- Fair value of non-cash assets
Total cost of purchase/consideration of
disposal
Less: Share of net assets of subsidiaries      33220247.09           19783696.39         222175.06           1101659.82
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
calculated based on the proportion of
equity acquired/disposed of
Difference                                            -582847.09          5591503.61              8124.94              74340.18
Including: Adjustment to the capital
                                                      -582847.09          5591503.61              8124.94              74340.18
reserve
Adjustment to the surplus reserve
Adjustment to the undistributed profits
                                                                 Hefei Hanhe
                                                                   Intelligent                                 Zhejiang Hangcha
                                            HANGCHA                                    Shanghai Hangcha
                                                                    Logistics                                   Guozi Robotics
                                          JAPAN CO.LTD.                                Okamura Co., Ltd.
                                                                Technology Co.,                                    Co., Ltd.
                                                                      Ltd.
Cost of purchase/consideration of disposal
-- Cash                                                                  7181865.39         34604279.40
-- Fair value of non-cash assets
Total cost of purchase/consideration
of disposal
Less: Share of net assets of
subsidiaries calculated based on the
proportion of equity
acquired/disposed of
Difference                                      -248197.84               5192990.60          7901901.32            -23161326.00
Including: Adjustment to the capital
                                                -248197.84               5192990.60          7901901.32            -23161326.00
reserve
Adjustment to the surplus reserve
Adjustment to the undistributed
profits
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
(1). Material joint ventures or associates
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Holding proportion         Accounting
                                                                                               (%)                  treatment
                                          Principal                                                              method applied
     Joint venture or associated                            Place of       Nature of
                                          operating                                                             to investment in
             enterprise                                   registration     business
                                          locations                                      Direct     Indirect    the joint venture
                                                                                                                  or associated
                                                                                                                    enterprise
                                          Hangzhou,        Hangzhou,
Hangzhou Zhongce Haichao                                                   Business                              Equity method
                                           Zhejiang         Zhejiang                    27.8571
Enterprise Management Co., Ltd.                                            services                               accounting
                                           province         province
Notes on inconsistency between the shareholding proportion and the vote proportion in a joint venture or
associated enterprise:
None
Basis for imposing significant influence despite holding less than 20% of votes or imposing no
significant influence despite holding more than 20% or more votes:
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
None
(2). Key financial information of material joint ventures
"¡õ Applicable" "¡Ì Not applicable"
(3). Key financial information of significant joint ventures
"¡Ì Applicable" "¡õ Not applicable"
                                                                       Unit: Ten thousand yuan         Currency: CNY
                                                       Closing balance/Current period       Opening balance/Preceding
                                                                 cumulative                     period comparative
                                                        Hangzhou Zhongce Haichao            Hangzhou Zhongce Haichao
                                                        Enterprise Management Co.,          Enterprise Management Co.,
                                                                    Ltd.                                Ltd.
Current assets                                                            2523908.04                         2176705.08
Non-current assets                                                        2888078.14                         2511870.32
Total assets                                                              5411986.18                         4688575.40
Current liabilities                                                       2354630.10                        2253119.75
Non-current liabilities                                                    463878.45                         606179.15
Total liabilities                                                         2818508.55                        2859298.90
Non-controlling shareholders' equity                                      1627145.85                        1094165.05
Shareholders' equity attributable to the parent
company
Share of net assets calculated based on the holding
proportion
Adjustments
-- Goodwill
-- Unrealized profits of internal transactions
-- Others
Book value of equity investment in associated
enterprises
Fair value of equity investments in associates with
publicly quoted prices
Operating income                                                          4495623.03                        3925480.99
Net profit                                                                 403436.28                         317343.21
Net profits of discontinued operations
Other comprehensive income                                                     34571.00                       15743.54
Total comprehensive income                                                    438007.29                      333086.75
Dividends from associated enterprises received in
the year
Other notes:
   None
(4). Summary of financial information on insignificant joint ventures and associated enterprises
"¡Ì Applicable" "¡õ Not applicable"
                                                                                          Unit: Yuan   Currency: CNY
                                             Closing balance/Current period         Opening balance/Preceding period
                                                      cumulative                              comparative
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Associates:
Total book value of investment
Total of following items calculated by based on the holding proportion
-- Net profits
-- Other comprehensive income
-- Total comprehensive income
Joint ventures:
Total book value of investment                                   338610308.21                             310429131.43
Total of following items calculated by based on the holding proportion
-- Net profits                                                     39322591.78                             31415327.75
-- Other comprehensive income                                          93323.83                               50438.88
-- Total comprehensive income                                      39415915.61                             31465766.63
Other notes:
None
(5). Notes on significant limitations on the ability of joint ventures and associated enterprises to
transfer funds to the Company
"¡õ Applicable" "¡Ì Not applicable"
(6). Excess loss incurred by joint ventures or associated enterprises
"¡õ Applicable" "¡Ì Not applicable"
(7). Unrecognized commitments related to investments in joint venture
"¡õ Applicable" "¡Ì Not applicable"
(8). Contingent liabilities related to investments in joint ventures or associated enterprises
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Notes on structured entities not included in the scope of consolidated financial statements:
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
Reasons for not receiving the expected amount of government grants at the anticipated time
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                          Unit: Yuan    Currency: CNY
Financial      Opening         Increase     Non-operating    Transferred to       Other       Closing       Related to
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
statement      balance      amounts in        revenues       other income     Changes        balance        assets/income
   item                    grants during   recorded in the   in the current    for the
                            the period         period            period       Current
                                                                               Period
Deferred                                                                                                  Related      to
income                                                                                                    assets
   Total
 Amount
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan    Currency: CNY
                 Type                       Current period cumulative                     Previous period amount
Related to assets                                              14311099.78                                  11524835.06
Related to income                                              80816211.96                                  76207269.60
            Total Amount                                       95127311.74                                  87732104.66
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
The Company's objective for managing risks associated with financial instruments is to balance risk and
return, minimize the negative impact of risks on the Company's operating results, and maximize returns
for shareholders and other equity investors. According to the risk management objective, the Company
has developed a basic risk management strategy to identify and analyze the various risks faced by the
Company, establish appropriate risk tolerance thresholds and risk controls, and monitor risks in a timely
and reliable manner, keeping them within predefined limits.
In its daily activities, the Company faces various risks associated with financial instruments, primarily
including credit, liquidity and market risks. The management has reviewed and approved policies for
managing these risks, summarized below.
(I) Credit risks
Credit risk refers the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation.
(1) Credit risk evaluation methods
The Company evaluates at each balance sheet date whether the credit risks of relevant financial
instruments have increased significantly since their initial recognition. When determining whether credit
risks have increased significantly since their initial recognition, the Company considers reasonable and
supported information that is available without unnecessary extra cost or effort, including qualitative and
quantitative analyses based on historical data, external credit risk ratings and forward-looking
information. The Company evaluates financial instruments either individually or collectively under
similar credit risk characteristics, by comparing the risk of default occurring at the balance sheet date
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
with the risk of default at initial recognition, to determine changes in the risk of default over the
expected life of the financial instrument.
The Company considers that the credit risk of a financial instrument has increased significantly when
one or more of the following quantitative or qualitative criteria are triggered:
sheet date has increased by over a certain percentage compared to that in the initial recognition;
situation of debtors, or existing or anticipated changes in the technological, market, economic or legal
environment would have a significant adverse effect on debtors' ability to meet their obligations to the
Company, etc.
(2) Definition of default and credit-impaired assets
The Company defines a financial asset as in default when one or more of the following conditions are
met, which are consistent with the definition of credit-impaired assets:
difficulty, having granted to the debtor a concession(s) that the creditor would not otherwise consider.
The key factors in the measurement of expected credit loss include the probability of default, loss rate of
default, and exposure to default risk. The Company develops a model of the probability of default, loss
rate of default, and exposure to default risk on the basis of quantitative analysis of historical data (e.g.
counterparty rating, guarantee measures and collateral type, payment method, etc.) and forward-looking
information.
provision for losses of financial instruments, please refer to the explanations in 7.4, 7.5, 7.6, 7.9, 7.13,
and 7.16 under Section VIII Financial Reports.
The Company's credit risk is primarily attributable to Cash and bank balances and receivables. In order
to control such risks, the Company has taken the following measures.
The Company deposits its bank balances and other Cash and bank balances in financial institutions with
a relatively high credit rating, and therefore its credit risk is relatively low.
(2) Receivables and contract assets
The Company performs credit assessment on customers using credit settlement on a continuous basis.
The Company selects credible and well-reputed customers based on credit assessment result, and
conducts ongoing monitoring on balance of receivables, to avoid significant risks in bad debts.
For domestic customers, the Company has differentiated credit policies for different customers. For
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
general customers, payment-before-delivery or payment-upon-acceptance-after-delivery terms are
primarily adopted; for the bidding customers and key accounts, payment in installments through
negotiation is applied (with the final payment and warranty retention money generally not exceeding one
year); for network partners, payment in advance is mainly used (except for special circumstances); and
for large foreign trade companies or large enterprises, certain businesses are settled by means of the
bank acceptance bills.
For foreign customers, the Company primarily applies the methods of payment including L/C (letter of
credit), T/T (telegraphic transfer) and O/A (open account). The Company adopts different methods of
payment and extends credit periods ranging from 30 to 180 days based on factors such as customer
relationship and credit status. 1) In the case of 10% deposit + L/C, According to the company's credit
policy, the Company only accepts L/C issued or confirmed by banks that maintain correspondent
relationships with its settlement bank; 2) in the case of 10 - 30% deposit + balance by T/T after the B/L
date with document release after full payment receipt, the Company has an internal credit rating system
for foreign customers, and adopts payment-before-delivery terms for customers with records of payment
delays or those from regions with politically/economically unstable conditions; 3) in the case of O/A as
the method of payment for customers , after receiving a deposit of 10% - 20% in advance, the Company
require purchasing export credit insurance from China Export & Credit Insurance Corporation (Sinosure)
and manage it in strict compliance with the requirements of Sinosure. It is agreed in the insurance policy
that Sinosure provides 70% - 90% coverage for various risks including bankruptcy of the buyer, default
of payment for goods, rejection of goods, or political factors, yet the occurrence of bad debts cannot be
completely prevented. For customers who have a close cooperative relationship with the Company (in
the case of OEM projects) but have not taken out insurance, the accounts receivable generated from the
Company¡¯s export sales are subject to risks such as irrecoverable or overdue.
Since the exposure to risks of the Company¡¯s accounts receivable is distributed among multiple partners
and customers, as of December 31, 2025, 1the Company¡¯s accounts receivable and contract assets
attributable to the top five customers by balance accounted for 10.65% (December 31, 2024: 11.13%),
and the Company does not have significant credit concentration risk.
The maximum amount of exposure to credit risk of the Company is the carrying amount of each
financial asset at the balance sheet.
(II) Liquidity risk
Liquidity risk is the risk that the Company may encounter deficiency of funds in meeting obligations
associated with cash or other financial assets settlement. Liquidity risk is possibly attributable to failure
in selling financial assets at fair value on a timely basis, or failure in collecting liabilities from
counterparties of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, the Company comprehensively utilized financing tools such as notes
settlement, bank borrowings, etc. and adopts long-term and short-term financing methods to optimize
financing structures, and finally maintains a balance between financing sustainability and flexibility. The
Company has obtained credit limit from several commercial banks to meet working capital requirements
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
and expenditures.
Financial liabilities classified based on remaining time period till maturity
                                                                                                        Unit: RMB
                                                             Closing balance
     Item                             Contract amount not
                    Book value                                  Within 1 year        1-3 years      More than 3 years
                                        yet discounted
Bank
borrowings
Derivative
financial
liabilities
Notes payable       1693016977.19         1693016977.19          1693016977.19
Accounts
payable
Other payables        89848213.54           89848213.54            89848213.54
Lease
liabilities due
within one
year
Lease
liabilities
Long-term
payables due
within one
year
Long-term
payables
    Subtotal        6288558804.56         6376132648.67          5549861668.88       648063505.70      178207474.09
(continued)
                                                             Opening balance
      Item                             Contract amount not
                     Book value                                  Within 1 year        1-3 years     More than 3 years
                                         yet discounted
Bank
borrowings
Derivative
financial                 366815.63              366815.63              366815.63
liabilities
Notes payable         902166339.40           902166339.40           902166339.40
Accounts
payable
Other payables        226421414.75           226421414.75           226421414.75
Lease liabilities
due within one          29409865.55           29409865.55            29409865.55
year
Lease liabilities     143909897.42           167546602.21                             64767450.64      102779151.57
Long-term
payables due
within one year
Long-term
payables
     Subtotal        5126930015.33          5168992614.27          4942410256.48      90525363.84      136056993.95
(III) Market risk
Market risk is the risk that the Company may encounter fluctuation in fair value or future cash flows of
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
financial instruments due to changes in market price. Market risk mainly includes interest risk and
foreign currency risk.
Interest risk is the risk that an enterprise may encounter fluctuation in fair value or future cash flows of
financial instruments due to changes in market interest. The Company's fair value interest risks arise
from fixed-rate financial instruments, while the cash flow interest risks arise from floating-rate financial
instruments. The Company determines the proportion of fixed-rate financial instruments and
floating-rate financial instruments based on the market environment, and maintains a proper financial
instruments portfolio through regular review and monitoring.
Foreign currency risk is the risk arising from changes in fair value or future cash flows of financial
instrument resulted from changes in exchange rate. The Company's foreign currency risk relates mainly
to foreign currency Cash and bank balances and liabilities. When short-term imbalance occurred to
foreign currency assets and liabilities, the Company may trade foreign currency at market exchange rate
when necessary, in order to maintain the net risk exposure within an acceptable level.
For details on the Company's monetary assets and liabilities denominated in foreign currencies at the end
of the period, please refer to Notes to Section VIII Financial Reports (VII)-81 Explanation of monetary
items in foreign currencies.
(1). The Company undertakes hedging activities for risk management purposes
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(2). The Company undertakes eligible hedging activities and applies hedge accounting
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(3). The Company undertakes hedging activities for risk management purposes and is expected to
achieve risk management objective but has not applied hedging accounting
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(1). Classification of methods of transfer
"¡õ Applicable" "¡Ì Not applicable"
(2). Financial assets de-recognized due to transfer
"¡õ Applicable" "¡Ì Not applicable"
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Continued involvement in transferred financial assets
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Unit: Yuan    Currency: CNY
                                                          Fair value as of the balance sheet date
              Item                  Level 1 fair value   Level 2 fair value      Level 3 fair value
                                                                                                      Total Amount
                                      measurement          measurement             measurement
I. Continuing fair value
measurement
(I) Trading financial assets                                                          128451495.00      128451495.00
through current profit or loss
(1) Investment in debt
instruments
(2) Investment in equity
instruments
(3) Derivative financial assets
(4) Wealth management
products
at fair value through profit or
loss
(1) Investment in debt
instruments
(2) Investment in equity
instruments
(II) Other debt investments
(III) Investments in other
equity instruments
(IV) Investment Property
transfer after appreciation
(V) Biological assets
assets
Total assets continuously
measured at fair value
(VI) Held-for-trading financial
liabilities
value through current
gains/losses
Including: Bonds held for
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
trading issued
Derivative financial liabilities
Other
designated at fair value
through profit or loss
Total liabilities measured at
fair value on a continuing
basis
II. Non-continuing fair value
measurements
(i) Assets held for sale
Total assets not continuously
measured at fair value
Total liabilities not
continuously measured at
fair value
"¡õ Applicable" "¡Ì Not applicable"
fair value at recurring and non-recurring fair measurement
"¡õ Applicable" "¡Ì Not applicable"
fair value at recurring and non-recurring fair measurement
"¡õ Applicable" "¡Ì Not applicable"
opening balance and closing balance and sensitivity analysis of the non-observable parameter
"¡Ì Applicable" "¡õ Not applicable"
The cost is used as the best estimate of fair value for all wealth management products purchased by the
Company and equity investments that do not constitute control or significant influence.
The receivables financing held by the Company is a bank acceptance bill, and its fair value is determined
at the face value.
conversion time determination if the conversion occurs between different levels during current
period
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
                                                                      Unit: Ten thousand yuan     Currency: CNY
                          Place of       Nature of      Registered      Holding proportion  Voting right proportion
     Parent company
                        registration     business        capital       over the Company (%) over the Company (%)
                      Hangzhou,
Zhejiang      Hangcha                  Industrial
                      Zhejiang                              8908.00           41.13                  41.13
Holding Co., Ltd                       investment
                      province
Information on the parent company
Zhejiang Hangcha Holding Co., Ltd. (formerly Zhejiang Hangcha Group Co., Ltd.) was jointly
established by 703 natural person shareholders including Chen Dansheng and Jin Bolin. It was registered
with Zhejiang Administration for Industry and Commerce on January 23, 2003, and now holds a
business license with the unified social credit code 91330000747006398M. After a series of capital
increases and shares transfers, as of December 31, 2025, Zhejiang Hangcha Holding Co., Ltd. Had a
registered capital of RMB 89,080,000.00, of which GreatStar Holding Group Co., Ltd. (hereinafter
referred to as ¡°GreatStar Group¡±) contributed RMB 70,351,544.00, accounting for 78.98% of the
registered capital.; Hangzhou GreatStar Industrial Co., Ltd. (hereinafter referred to as ¡°GreatStar
Industrial¡±) contributed RMB 17,816,000.00, accounting for 20.00% of the registered capital; seven
natural person shareholders including contributed RMB 912,456.00, accounting for 1.02% of the
registered capital.
Business scope of the parent company: industrial investment, development, property management and
premises leasing.
The Company¡¯s ultimate controlling party is Qiu Jianping.
Other notes:
GreatStar Group holds 78.98% shares of Zhejiang Hangcha Holding Co., Ltd. The Company is
ultimately controlled by Qiu Jianping, a natural person, as he holds 85.60% shares of GreatStar Group.
For details on the subsidiaries of the Company, please refer to Notes
"¡Ì Applicable" "¡õ Not applicable"
For details on the subsidiaries of the Company, please refer to ¡°10. Interests in other entities under
Section VIII Financial Reports¡±.
For details on material joint ventures or associates of the Company, please refer to Notes
"¡Ì Applicable" "¡õ Not applicable"
For details on material joint ventures or associates of the Company, please refer to ¡°10. Interests in other
entities under Section VIII Financial Reports¡±.
The information of other associates or joint ventures with related party transactions to the Company in
current period or with existing balance with the Company in previous periods are as follows:
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡Ì Applicable" "¡õ Not applicable"
          Associates/ joint ventures names                            Relationship with the Company
Zhejiang Huachang Hydraulic Machinery Co., Ltd.     Joint ventures
Hangzhou Gangcun Transmission Co., Ltd.             Joint ventures
Changsha Zhongchuan Transmission Co., Ltd.          Joint ventures
HANGCHA SOUTHEAST ASIA CO., LTD.                    Joint ventures
Henan Jiachen Intelligent Control Co., Ltd.         Joint ventures
Hangzhou Pengcheng New Energy Technology Co.,
                                                    Joint ventures
Ltd.
Shenyang Hangcha Lift Truck Sales Co., Ltd.         Joint ventures
Taiyuan Hangcha Lift Truck Co., Ltd.                Joint ventures
Shijiazhuang Hangcha Forklift Sales Co., Ltd.       Joint ventures
Nanjing Hangcha Logistics Equipment Co., Ltd.       Joint ventures
Changsha Hangcha Forklift Sales Co., Ltd.           Joint ventures
Nanchang Hangcha Forklift Co., Ltd.                 Joint ventures
Chongqing Hangcha Forklift Truck Sales Co., Ltd.    Joint ventures
Yunnan Hangcha Lift Truck Co., Ltd.                 Joint ventures
Beijing Guozi Robot Technology Co., Ltd.            Joint ventures
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                 Other related parties                               Relationships with the Company
Hangzhou GreatStar Industrial Co., Ltd. and its       Same actual controller and shareholder of the parent company
subsidiaries
Hangzhou Kunxia Investment Management Partnership
                                                      Same actual controller
(Limited Partnership)
Zhejiang Xinchai Co., Ltd. and its subsidiaries       Same actual controller
Zhongce Rubber Group Co., Ltd. and its affiliated
                                                      Same actual controller
companies
Hangzhou CIEC Group Co., Ltd. and its subsidiaries    Subsidiary of shareholders holding more than 5% of shares
                                                      Companies with related party relationships in the past twelve
Changzhou Hangcha Leasing Co., Ltd.
                                                      months
                                                      Companies with related party relationships in the past twelve
Guangzhou Hangcha Leasing Co., Ltd.
                                                      months
Other notes:
None
(1). Related party transactions for purchase and sale of goods, rendering and acceptance of labor
services
Purchase of goods and receiving of services
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan      Currency: CNY
                                                                                        Above the
                                                                         Approved
                                                                                       transaction
                                      Content of     Current period     transaction                    Previous period
           Related parties                                                             limit or not
                                      transaction     cumulative          limit (if                        amount
                                                                                            (if
                                                                        applicable)
                                                                                       applicable)
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
Zhejiang Xinchai Co., Ltd. and its   Purchase of
subsidiaries                         goods
Zhejiang Huachang Hydraulic          Purchase of
Machinery Co., Ltd.                  goods
Zhongce Rubber Group Co., Ltd. and   Purchase of
its affiliated companies             goods
Hangzhou Pengcheng New Energy        Purchase of
Technology Co., Ltd.                 goods
Hangzhou CIEC Group Co., Ltd. and    Purchase of
its subsidiaries                     goods
Henan Jiachen Intelligent Control Co.,
                                     Purchase of
Ltd.                                 goods
Changsha Zhongchuan Transmission     Purchase of
Co., Ltd.                            goods
Hangzhou Gangcun Transmission Co.,   Purchase of
Ltd.                                 goods
Hangzhou GreatStar Industrial Co.,   Purchase of
Ltd. and its subsidiaries            goods
Chongqing Hangcha Forklift Truck     Purchase of
Sales Co., Ltd.                      goods
Shenyang Hangcha Lift Truck Sales    Purchase of
Co., Ltd.                            goods
Changsha Hangcha Forklift Sales Co., Purchase of
Ltd.                                 goods
                                     Purchase of
Nanchang Hangcha Forklift Co., Ltd.                         1761236.77                                   2294289.50
                                     goods
Nanjing Hangcha Logistics Equipment Purchase of
Co., Ltd.                            goods
                                     Purchase of
Yunnan Hangcha Lift Truck Co., Ltd.                         1432574.78                                    971442.48
                                     goods
Beijing Guozi Robot Technology Co., Purchase of
Ltd.                                 goods
Shijiazhuang Hangcha Forklift Sales  Purchase of
Co., Ltd.                            goods
                                     Purchase of
Taiyuan Hangcha Lift Truck Co., Ltd.                          327205.89                                   249740.18
                                     goods
                     Subtotal                            2157532418.55                               2218325832.93
Sale of goods and rendering of services
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan   Currency: CNY
                                                                            Current period         Previous period
                Related parties                   Content of transaction
                                                                             cumulative                amount
Chongqing Hangcha Forklift Truck Sales Co., Forklifts, parts and
Ltd.                                          materials, etc.
                                              Forklifts, parts and
Nanchang Hangcha Forklift Co., Ltd.                                              94143237.05            82418883.57
                                              materials, etc.
                                              Forklifts, parts and
Shijiazhuang Hangcha Forklift Sales Co., Ltd.                                    90618005.69           128752215.79
                                              materials, etc.
                                              Forklifts, parts and
Yunnan Hangcha Lift Truck Co., Ltd.                                              85109986.65            75956436.93
                                              materials, etc.
Changsha Hangcha Forklift Sales Co., Ltd.     Forklifts, parts, etc.             80760426.98            79412051.33
Zhongce Rubber Group Co., Ltd. and its
                                              Forklifts, parts, etc.             75855794.83            65629518.15
affiliated companies
Taiyuan Hangcha Lift Truck Co., Ltd.          Forklifts, parts and               71904251.10            87048499.59
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                  materials, etc.
                                                  Forklifts, parts and
Shenyang Hangcha Lift Truck Sales Co., Ltd.                                         65326526.40             76560427.72
                                                  materials, etc.
Nanjing Hangcha Logistics Equipment Co.,
                                                  Forklifts, parts, etc.            63334677.79             71887599.18
Ltd.
Hangzhou GreatStar Industrial Co., Ltd. and its
                                                  Forklifts, parts, etc.            55417977.37             25070380.05
subsidiaries
Zhejiang Huachang Hydraulic Machinery Co.,        Forklifts, parts and
Ltd.                                              materials, etc.
Hangzhou Pengcheng New Energy Technology          Forklifts, parts and
Co., Ltd.                                         materials, etc.
Changsha Zhongchuan Transmission Co., Ltd.        Forklifts, parts, etc.              1944887.76             1166030.20
Hangzhou Gangcun Transmission Co., Ltd.           Forklifts, parts, etc.              1484383.67             1528943.74
                                                  Forklifts, parts and
Beijing Guozi Robot Technology Co., Ltd.                                              1125167.60
                                                  materials, etc.
                                                  Forklifts, parts and
Henan Jiachen Intelligent Control Co., Ltd.                                            527781.20               67028.96
                                                  materials, etc.
Zhejiang Xinchai Co., Ltd. and its subsidiaries   Forklifts, parts, etc.              482004.86              1141582.12
                                 Subtotal                                          831520412.47            821069288.36
Note on purchase and sale of goods, rendering and acceptance of labor services
"¡õ Applicable" "¡Ì Not applicable"
(2). Situation        for        related      entrusted          management/contracting            and      entrusting
management/subcontracting
The situation for entrusted management/contracting
"¡õ Applicable" "¡Ì Not applicable"
Notes for related entrusting/contracting situation
"¡õ Applicable" "¡Ì Not applicable"
Table of entrusted management/subcontracting:
"¡õ Applicable" "¡Ì Not applicable"
Notes for related management/subcontracting
"¡õ Applicable" "¡Ì Not applicable"
(3). Related-party leases
The Company as the lessor:
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan        Currency:CNY
                                                                                  Lease income        Lease income
                       Lessees                            Types of asset leased   recognized for     recognized for
                                                                                  current period     previous period
Hangzhou Gangcun Transmission Co., Ltd.                  Buildings                     3335423.81          3397373.51
                                                         Transportation
Shenyang Hangcha Lift Truck Sales Co., Ltd.                                            842866.55                7848.11
                                                         facilities
Changsha Hangcha Forklift Sales Co., Ltd.                Buildings                     816052.45              543577.98
                                                         Houses and buildings
Chongqing Hangcha Forklift Truck Sales Co., Ltd.         and transportation            729452.74              481440.23
                                                         facilities
                                                         Transportation
Nanchang Hangcha Forklift Co., Ltd.                                                    660505.73               78584.07
                                                         facilities
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
                                                         Transportation
Yunnan Hangcha Lift Truck Co., Ltd.                                                   261910.41
                                                         facilities
                                                         Transportation
Shijiazhuang Hangcha Forklift Sales Co., Ltd.                                         229398.23
                                                         facilities
                                                         Transportation
Taiyuan Hangcha Lift Truck Co., Ltd.                                                    89423.55
                                                         facilities
                                                         Transportation
Nanjing Hangcha Logistics Equipment Co., Ltd.                                           76453.03              9845.06
                                                         facilities
Hangzhou GreatStar Industrial Co., Ltd. and its          Transportation
subsidiaries                                             facilities
Henan Jiachen Intelligent Control Co., Ltd.              Buildings                      52662.86            52662.86
                                                         Transportation
Zhejiang Huachang Hydraulic Machinery Co., Ltd.                                           442.48
                                                         facilities
Hangzhou Pengcheng New Energy Technology Co.,
                                                         Buildings                                        595809.55
Ltd.
The Company as the lessee:
"¡õ Applicable" "¡Ì Not applicable"
Notes for related party leases
"¡õ Applicable" "¡Ì Not applicable"
(4). Related-party guarantees
The Company as the guarantor
"¡õ Applicable" "¡Ì Not applicable"
The Company as the guaranteed party
"¡õ Applicable" "¡Ì Not applicable"
Notes for related party guarantee
"¡õ Applicable" "¡Ì Not applicable"
(5). Borrowings from related parties
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency:CNY
                               Amount of
    Related parties                                    Starting date         Maturity                  Note
                            cross-borrowing
Loans
                                                                                               Repayment           of
GreatStar     Holding                                                                          principal and interest
Group Co., Ltd.                                                                                due at the end of the
                                                                                               period
                                                                                               Repayment           of
Zhejiang     Hangcha                                                                           principal and interest
Holding Co.,Ltd                                                                                due at the end of the
                                                                                               period
(6). Transfer of assets and debt restructuring of related parties
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan   Currency: CNY
                                                                          Current period           Previous period
             Related parties                    Content of transaction
                                                                           cumulative                  amount
Hangzhou         Kunxia      Investment Acquisition of shares in
Management       Partnership   (Limited associates
                                 The 2025 Annual Report of Hangcha Group Co., Ltd.
Partnership)
                                            Acquisition of shares in
Hangzhou GreatStar Industrial Co., Ltd.                                              8160000.00
                                            associates
(7). Key management¡¯s emoluments
"¡Ì Applicable" "¡õ Not applicable"
                                                                       Unit: Ten thousand yuan      Currency:CNY
                Item                               Current period cumulative               Previous period amount
Key management¡¯s emoluments                                                    1791.56                        1666.60
(8). Other related-party transactions
"¡õ Applicable" "¡Ì Not applicable"
(1). Receivables
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan    Currency: CNY
                                                            Closing balance                   Opening balance
 Item Name                Related parties                             Provision for                    Provision for
                                                      Book balance                       Book balance
                                                                        bad debts                        bad debts
Accounts
receivable
                Zhongce Rubber Group Co., Ltd.
                and its affiliated companies
                Hangzhou GreatStar Industrial Co.,
                Ltd. and its subsidiaries
                Hangzhou Pengcheng New Energy
                Technology Co., Ltd.
                Shenyang Hangcha Lift Truck Sales
                Co., Ltd.
                Taiyuan Hangcha Lift Truck Co.,
                Ltd.
                Henan Jiachen Intelligent Control
                Co., Ltd.
                Beijing Guozi Robot Technology
                Co., Ltd.
                Changsha Zhongchuan Transmission
                Co., Ltd.
                Shijiazhuang Hangcha Forklift Sales
                Co., Ltd.
                Changsha Hangcha Forklift Sales
                Co., Ltd.
                Nanchang Hangcha Forklift Co.,
                Ltd.
                Yunnan Hangcha Lift Truck Co.,
                Ltd.
                Zhejiang Xinchai Co., Ltd. and its
                subsidiaries
                Zhejiang Huachang Hydraulic
                Machinery Co., Ltd.
                Chongqing Hangcha Forklift Truck
                Sales Co., Ltd.
                Nanjing Hangcha Logistics                  12667.00             633.35     1211939.35       60596.97
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
              Equipment Co., Ltd.
              Hangzhou Gangcun Transmission
              Co., Ltd.
                    Subtotal                          67347611.56       4585094.33   35415643.21   1770782.17
Prepayments
              Hangzhou CIEC Group Co., Ltd.
              and its subsidiaries
              Hangzhou Pengcheng New Energy
              Technology Co., Ltd.
              Nanjing Hangcha Logistics
              Equipment Co., Ltd.
              Henan Jiachen Intelligent Control
              Co., Ltd.
              Hangzhou GreatStar Industrial Co.,
              Ltd. and its subsidiaries
              Zhejiang Huachang Hydraulic
              Machinery Co., Ltd.
              Changsha Zhongchuan Transmission
              Co., Ltd.
              Beijing Guozi Robot Technology
              Co., Ltd.
              Hangzhou Gangcun Transmission
              Co., Ltd.
                     Subtotal                         48540293.21                    36480250.27
Other
receivables
              Hangzhou GreatStar Industrial Co.,
              Ltd. and its subsidiaries
              Zhongce Rubber Group Co., Ltd.
              and its affiliated companies
                     Subtotal                           233050.00         31652.50      40000.00     21000.00
Long-term
receivables
              Nanjing Hangcha Logistics
              Equipment Co., Ltd.
              Chongqing Hangcha Forklift Truck
              Sales Co., Ltd.
              Changsha Hangcha Forklift Sales
              Co., Ltd.
              Nanchang Hangcha Forklift Co.,
              Ltd.
              Yunnan Hangcha Lift Truck Co.,
              Ltd.
              Taiyuan Hangcha Lift Truck Co.,
              Ltd.
              Shijiazhuang Hangcha Forklift Sales
              Co., Ltd.
              Shenyang Hangcha Lift Truck Sales
              Co., Ltd.
                    Subtotal                          10108136.00        101081.36      53708.77       537.09
Non-current
assets due
within one
year
              Nanjing Hangcha Logistics
              Equipment Co., Ltd.
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
                  Chongqing Hangcha Forklift Truck
                  Sales Co., Ltd.
                  Changsha Hangcha Forklift Sales
                  Co., Ltd.
                  Nanchang Hangcha Forklift Co.,
                  Ltd.
                  Yunnan Hangcha Lift Truck Co.,
                  Ltd.
                  Taiyuan Hangcha Lift Truck Co.,
                  Ltd.
                  Shijiazhuang Hangcha Forklift Sales
                  Co., Ltd.
                  Shenyang Hangcha Lift Truck Sales
                  Co., Ltd.
                  Beijing Guozi Robot Technology
                  Co., Ltd.
                        Subtotal                            3978940.68     39789.40         482634.78      12056.35
Contract assets
                  Zhongce Rubber Group Co., Ltd.
                  and its affiliated companies
                  Hangzhou GreatStar Industrial Co.,
                  Ltd. and its subsidiaries
                  Beijing Guozi Robot Technology
                  Co., Ltd.
                  Zhejiang Xinchai Co., Ltd. and its
                  subsidiaries
                         Subtotal                          15769470.55   1239289.56        7397000.00     376750.00
(2). Payables
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
                                                                                                    Opening book
   Item Name                           Related parties                   Closing book balance
                                                                                                      balance
Accounts
payable
                    Zhejiang Huachang Hydraulic Machinery Co., Ltd.              136695218.05           66697577.62
                    Hangzhou Pengcheng New Energy Technology Co.,
                    Ltd.
                    Henan Jiachen Intelligent Control Co., Ltd.                   18046004.24           19964585.27
                    Zhongce Rubber Group Co., Ltd. and its affiliated
                    companies
                    Zhejiang Xinchai Co., Ltd. and its subsidiaries               29134880.61           13273315.42
                    Hangzhou Gangcun Transmission Co., Ltd.                       10453992.02            9425701.90
                    Hangzhou GreatStar Industrial Co., Ltd. and its
                    subsidiaries
                    Taiyuan Hangcha Lift Truck Co., Ltd.                                95772.55            4360.00
                    Changsha Zhongchuan Transmission Co., Ltd.                         249543.73
                    Beijing Guozi Robot Technology Co., Ltd.                           565418.16
                    Nanjing Hangcha Logistics Equipment Co., Ltd.                       37920.00
                    Changsha Hangcha Forklift Sales Co., Ltd.                           98652.59
                    Shijiazhuang Hangcha Forklift Sales Co., Ltd.                       78159.00
                    Chongqing Hangcha Forklift Truck Sales Co., Ltd.                   203939.82
                    Yunnan Hangcha Lift Truck Co., Ltd.                                  1330.00
                    Shenyang Hangcha Lift Truck Sales Co., Ltd.                         28280.00
                                The 2025 Annual Report of Hangcha Group Co., Ltd.
                 Nanchang Hangcha Forklift Co., Ltd.                               3585.30
                            Subtotal                                          234285310.38      164343229.33
Notes payable
                 Henan Jiachen Intelligent Control Co., Ltd.                   35904613.80           2880.00
                 Hangzhou GreatStar Industrial Co., Ltd. and its
                 subsidiaries
                              Subtotal                                         35904613.80         510708.00
Contract
liabilities
                 Nanchang Hangcha Forklift Co., Ltd.                            7299960.76        5121515.66
                 Zhongce Rubber Group Co., Ltd. and its affiliated
                 companies
                 Shijiazhuang Hangcha Forklift Sales Co., Ltd.                  5741390.56        4025659.04
                 Changsha Hangcha Forklift Sales Co., Ltd.                      2657511.57        6011814.95
                 Yunnan Hangcha Lift Truck Co., Ltd.                            2094368.80         170997.75
                 Nanjing Hangcha Logistics Equipment Co., Ltd.                  1705535.55
                 Hangzhou GreatStar Industrial Co., Ltd. and its
                 subsidiaries
                 Chongqing Hangcha Forklift Truck Sales Co., Ltd.                   229356.15     3742296.90
                 Zhejiang Xinchai Co., Ltd. and its subsidiaries                    160035.40       28700.00
                 Henan Jiachen Intelligent Control Co., Ltd.                        123893.81
                 Hangzhou Pengcheng New Energy Technology Co.,
                 Ltd.
                              Subtotal                                         31315029.85       19449515.94
Other payables
                 Nanchang Hangcha Forklift Co., Ltd.                                245000.00
                 Hangzhou Gangcun Transmission Co., Ltd.                            155520.00      155520.00
                 Yunnan Hangcha Lift Truck Co., Ltd.                                 85000.00
                 Nanjing Hangcha Logistics Equipment Co., Ltd.                                       5000.00
                 Zhejiang Hangcha Holding Co.,Ltd                                               134298383.57
                 Shenyang Hangcha Lift Truck Sales Co., Ltd.                                        16464.00
                             Subtotal                                               485520.00   134475367.57
(3). Other items
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
In July 2025, the Company's controlling subsidiary, Zhejiang Hangcha Guozi Robotics Co., Ltd.,
acquired a 99.23% equity stake in Zhejiang Guozi Robotics Co., Ltd. through capital increase and share
expansion. For details on these commitments, please refer to I. Fulfillment of Commitments under
Section V. Important Matters in this report.
"¡õ Applicable" "¡Ì Not applicable"
(1). Details
"¡õ Applicable" "¡Ì Not applicable"
(2). Stock options or other equity instruments outstanding at the end of the period
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(1). Important contingent matters as at the balance sheet date
"¡Ì Applicable" "¡õ Not applicable"
On July 28, 2025, the Company held the 27th meeting of the 7th Board of Directors of Hangcha Group,
which resolved to approve the Company's provision of repurchase guarantees for its financial leasing
business, with a total guarantee amount not exceeding RMB 500 million. As of December 31, 2025, the
Company's outstanding balance of guarantees for finance lease payments owed by lessees totaled RMB
(2). If the Company has no important contingent matters to disclose, a statement thereof shall be
made
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan   Currency: CNY
Profits or dividends to be distributed                                                               523924819.60
Profits or dividends declared after consideration and
approval
The Company intends to distribute a cash dividend of RMB 4.00 (inclusive of tax) to all shareholders for
                              The 2025 Annual Report of Hangcha Group Co., Ltd.
every 10 shares based on the total share capital on the record date for equity distribution. As of April 21,
amount to be distributed is RMB523,924,819.60(tax inclusive). If the Company's total share capital
changes during the registration period for equity distribution, the distribution ratio per share will remain
unchanged, and the total distribution amount will be adjusted accordingly. This profit distribution plan
has been approved at the 4th Meeting of the 8th Board of Directors. The aforesaid plan still needs to be
submitted for deliberation at the 2025 Annual General Meeting of Shareholders.
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
N/A
"¡õ Applicable" "¡Ì Not applicable"
(1). Non-cash Assets Exchange
"¡õ Applicable" "¡Ì Not applicable"
(2). Other assets Exchange
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(1). Determination basis and accounting policy of the reportable segments
"¡Ì Applicable" "¡õ Not applicable"
The Company primarily engage in the production and sales of forklift products. The Company manages
this business and evaluate its operating results as a whole. As a result, the Company is not required to
disclose the information of its business segments. For details on the breakdown of the Company¡¯s
revenue, please refer to Note 7(61) under Section X hereof.
(2). Financial information of reporting segments
"¡õ Applicable" "¡Ì Not applicable"
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). If the Company has no reporting segments or cannot disclose the total assets and liabilities of
each reporting segments, the reasons shall be explained
"¡õ Applicable" "¡Ì Not applicable"
(4). Other notes
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
(1). Disclosure by ageing
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan     Currency: CNY
                Ageing                            Closing book balance                      Opening book balance
Within 1 year (including 1 year)                                3851022462.23                             3102311741.58
Subtotal within one year                                        3851022462.23                             3102311741.58
More than 3 years
More than 5 years                                                  3207069.29                                4393144.13
            Total Amount                                        4063033796.77                             3208062420.72
(2). Disclosure of notes receivable by bad debt accrual method
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan    Currency: CNY
                         Closing balance                                           Opening balance
                             Provision for bad                                        Provision for bad
           Book balance                                              Book balance
                                   debts                                                    debts
Catego
                                        Percent Book value                                       Percent Book value
  ry
                   Percent               age of   Value                      Percent              age of   Value
          Amount            Amount                                  Amount            Amount
                   age (%)              Provisi                              age (%)             Provisi
                                         on (%)                                                   on (%)
Provisi
on for
bad
debts
made     460024.00     0.01                 100.00                  460024.00    0.01               100.00
on an
individ
ual
basis
Provisi
on                     99.99                   5.62                              99.99                 5.32
made
                                     The 2025 Annual Report of Hangcha Group Co., Ltd.
on a
portfol
io
basis
 Total
 Amou                      /                     /                                  /                   /
   nt
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡Ì Applicable" "¡õ Not applicable"
Items accrued in portfolio: Ageing combination
                                                                                        Unit: Yuan    Currency: CNY
                                                                      Closing balance
           Item
                                       Book balance                Provision for bad debts   Percentage of Provision (%)
Within 1 year                               3851022462.23                      192551123.11              5.00
More than 5 years                               2747045.29                        2747045.29           100.00
      Total Amount                          4062573772.77                      228394822.69              5.62
Description of the provision for bad debts by portfolio£º
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of accounts receivable with provision for bad
debts during the period
"¡õ Applicable" "¡Ì Not applicable"
(3). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                         Unit: Yuan    Currency: CNY
                                                         Amount of change during the period
       Category                Opening balance                  Recovery Write-off or       Other           Closing balance
                                                 Make provision
                                                                or reversal Cancellation changes
Provision for Individual
bad debt
Provision made on a
portfolio basis
     Total Amount                171254372.22        58258974.47                   658500.00                  228854846.69
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
(4). Accounts receivable actually written off during the current period
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan       Currency: CNY
                         Item                                                    Amount written off
Accounts receivable actually written off                                                                         658500.00
Of which significant accounts receivable write-offs:
"¡õ Applicable" "¡Ì Not applicable"
Description of notes receivable write-off:
"¡õ Applicable" "¡Ì Not applicable"
(5). Accounts receivable with top five closing balances grouped by party in default
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan       Currency: CNY
                                                                                 Percentage of total
                                            Ending        Total Ending Balance         accounts
                                                                                                       Closing balance of
                Closing balance of         Balance of         of Accounts          receivable and
Unit name                                                                                              provision for bad
                accounts receivable         Contract         Receivable and       contract assets at
                                                                                                             debts
                                             Assets         Contract Assets         the end of the
                                                                                      period (%)
Customer
One
Customer
Two
Customer
Three
Customer
Four
Customer
Five
   Total
  Amount
Other notes:
None
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Items
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan       Currency: CNY
                    Item                                Closing balance                        Opening balance
Interest receivable
Dividend receivable
Other receivables                                                    28069458.44                             36385301.01
               Total Amount                                          28069458.44                             36385301.01
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
                               The 2025 Annual Report of Hangcha Group Co., Ltd.
Interest receivable
(1). Interest receivable
"¡õ Applicable" "¡Ì Not applicable"
(2). Significant overdue interest
"¡õ Applicable" "¡Ì Not applicable"
(3). Disclosure of notes receivable by bad debt accrual method
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡õ Applicable" "¡Ì Not applicable"
(4). Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of interest receivable with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
(5). Provision for bad debts
"¡õ Applicable" "¡Ì Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(6). Actual write-offs of interest receivable during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant write-offs of interest receivable
"¡õ Applicable" "¡Ì Not applicable"
Description of write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Dividend receivable
(7). Dividend receivable
"¡õ Applicable" "¡Ì Not applicable"
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
(8). Significant dividend receivables aged over 1 year
"¡õ Applicable" "¡Ì Not applicable"
(9). Disclosure of notes receivable by bad debt accrual method
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts made on an individual basis:
"¡õ Applicable" "¡Ì Not applicable"
Description of provision for bad debts by individual item
"¡õ Applicable" "¡Ì Not applicable"
Provision for bad debts by combination:
"¡õ Applicable" "¡Ì Not applicable"
(10). Provision for bad debts using the general model for expected credit losses.
"¡õ Applicable" "¡Ì Not applicable"
Basis for Classification of Stages and Provision Rate for Bad Debts
N/A
Description of significant changes in carrying amount of dividends receivable with provision for bad
debts during the period
"¡õ Applicable" "¡Ì Not applicable"
(11). Provision for bad debts
"¡õ Applicable" "¡Ì Not applicable"
Of which the amount of provisions for bad debt recovered or reversed during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(12). Actual write-offs of dividends receivable during the current period
"¡õ Applicable" "¡Ì Not applicable"
Including: Significant write-offs of dividends receivable
"¡õ Applicable" "¡Ì Not applicable"
Description of write-off:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
Other receivables
(13). Disclosure by ageing
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan   Currency: CNY
               Ageing                           Closing book balance                     Opening book balance
Within 1 year (including 1 year)                                 18917632.91                              25275081.63
Subtotal within one year                                         18917632.91                              25275081.63
                                  The 2025 Annual Report of Hangcha Group Co., Ltd.
More than 5 years                                                    2303326.11                             2280869.13
           Total Amount                                             36959622.75                            44217896.15
(14). By nature of amount
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Unit: Yuan     Currency: CNY
          Nature of payment                      Closing book balance                     Opening book balance
Deposits                                                          15858342.62                              12755098.00
Temporary borrowings by employees                                 10748000.00                              10598000.00
Temporary       advance     payment
receivable
Other                                                                  40584.13                              353280.13
           Total Amount                                             36959622.75                            44217896.15
(15). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                      Unit: Yuan      Currency: CNY
                                    Phase I                 Phase II               Phase III
                                                                                Expected credit
                                Expected credit      Expected credit losses
  Provision for bad debts                                                     losses for the entire    Total Amount
                               losses for the next   for the entire duration
                                                                                duration (credit
                                                                             impairment occurred)
Balance as of January 1,
Balance as of January 1,
-- Transferred to Phase II            -170016.24                 170016.24
-- Transferred to Phase III                                     -434122.70              434122.70
-- Reversed to Phase II
-- Reversed to Phase I
Provision during the period           -147856.19                 -55309.21             1260734.57           1057569.17
Reversal during the period
Transfer to COGS during
the period
Write-offs during the period
Other changes
Balance as of December 31,
Basis for Classification of Stages and Provision Rate for Bad Debts
None
Description of significant changes in carrying amount of other receivables with provision for bad debts
during the period
"¡õ Applicable" "¡Ì Not applicable"
Basis for using the amount of the provision for bad debts for the current period and basis for evaluating
any significant increase in the credit risk of the financial instruments
"¡õ Applicable" "¡Ì Not applicable"
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
(16). Provision for bad debts
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan    Currency: CNY
                                                  Amount of change during the period
                        Opening
    Category                                         Recovery or     Write-off or                    Closing balance
                        balance       Make provision                                Other changes
                                                       reversal     Cancellation
Provision    for
Individual  bad          800000.00                                                                         800000.00
debt
Provision made
on a portfolio          7032595.14          1057569.17                                                    8090164.31
basis
  Total Amount          7832595.14          1057569.17                                                    8890164.31
Of which the amount of provisions for bad debt reversed or recovered during the period is significant:
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(17). Other receivables actually written off during the period
"¡õ Applicable" "¡Ì Not applicable"
Of which significant write-offs of other receivables:
"¡õ Applicable" "¡Ì Not applicable"
Note on write-off of other receivables:
"¡õ Applicable" "¡Ì Not applicable"
(18). Other receivables of the top 5 in ending balance of the debtor
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan    Currency: CNY
                                               Percentage of total
                                                                                                     Provision for bad
                                               closing balance of       Nature of
     Unit name            Closing balance                                                Ageing            debts
                                                other receivables       payments
                                                                                                     Closing balance
                                                       (%)
                                                                     Temporary
Baoji       Hangcha
                                                                     advance
Engineering                   10000000.00            27.06                          Within 1 year          500000.00
                                                                     payment
Machinery Co., Ltd.
                                                                     receivable
Zhejiang Hangzhou
Qingshan        Lake
Science          and
Technology      City
Investment     Group
Co., Ltd.
CITIC International                                                                 Within 1 year,
Tendering Co., Ltd.                                                                 3-5 years
Baoneng     Logistics                                                               More than 5
Group Co., Ltd.                                                                     years
Shanghai      Yucan
                                                                                    Within 1 year,
Information                       500000.00           1.35           Deposits                              112500.00
Technology Co., Ltd.
    Total Amount              16696200.00            45.17                  /              /              3696600.00
                                       The 2025 Annual Report of Hangcha Group Co., Ltd.
(19).Listed as other receivables due to centralized management of funds
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                Unit: Yuan     Currency: CNY
                                       Closing balance                                     Opening balance
       Item                             Provision for                                       Provision for
                      Book balance                        Book value          Book balance                         Book value
                                         impairment                                          impairment
Investment in
subsidiaries
Investment in
joint ventures
and
associates
    Total
   Amount
(1). Investment in subsidiaries
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                Unit: Yuan     Currency: CNY
                                                          Increase and decrease during the period                        Closing
                                         Beginning
                          Opening                                                                                       balance of
                                         Balance of                                   Provision        Closing balance
     Invested units    balance (book                   Additional    Decrease in                                        provision
                                        Impairment                                   for accrual Other  (book value)
                           value)                     investments    investments                                            for
                                         Provision                                  impairment                         impairment
Hangzhou
Hangcha Aerial
Equipment Co.,
Ltd.
Hangzhou Forklift
Sheet Metal              23290211.05                                                                      23290211.05
Welding Co., Ltd.
Hangzhou Forklift
Mast Co., Ltd.
Zhejiang Hangcha
Import and Export        16592000.00                                                                      16592000.00
Co., Ltd.
Hangzhou
Hangcha Bridge            9350000.00                                                                       9350000.00
Box Co., Ltd.
Hangzhou
Hangcha Electric         29942890.73                  32637400.00                                         62580290.73
Appliance Co., Ltd
Hangzhou
Hangcha
Machining Co.,
Ltd.
Hangzhou
Hangcha Foundry          35000000.00                                                                      35000000.00
Co., Ltd.
Hangzhou
Hangcha Kangli
Forklift                  5795480.34                                                                       5795480.34
Attachments Co.,
Ltd.
Hangzhou                  2740500.00                                                                       2740500.00
                                     The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha Cab Co.,
Ltd.
Hangzhou
Hangcha Materials      80000000.00                                                        80000000.00
Trading Co., Ltd.
Hangcha Group
Leasing Co., Ltd.
Baoji Hangcha
Engineering
Machinery Co.,
Ltd.
Taizhou Hangcha
Forklift Sales Co.,      560000.00                                                          560000.00
Ltd.
Beijing Hangcha
Forklift Co., Ltd.
Heilongjiang
Hangcha Forklift         700000.00                                                          700000.00
Sales Co., Ltd.
Changchun
Hangcha Forklift         702813.73                                                          702813.73
Sales Co., Ltd.
Tangshan
Hangcha Forklift         420000.00                                                          420000.00
Sales Co., Ltd.
Henan Zhehang
Forklift Sales Co.,     2213524.75                                                         2213524.75
Ltd.
Jinan Hangcha
Forklift Sales Co.,     2288461.54                                                         2288461.54
Ltd.
Yantai Hangcha
Forklift Sales Co.,      718117.65                                                          718117.65
Ltd.
Qingdao Hangcha
Forklift Sales Co.,     1021854.17                                                         1021854.17
Ltd.
Rizhao Hangcha
Forklift Sales Co.,     1158705.88                                                         1158705.88
Ltd.
Xi'an Hangcha
Forklift Co., Ltd.
Gansu Hangcha
Forklift Co., Ltd.
Suzhou Hangcha
Forklift Sales Co.,      593055.56                                                          593055.56
Ltd.
Wuxi Hangcha
Forklift Sales Co.,     2978422.71                                                         2978422.71
Ltd.
Kunshan Hangcha
Forklift Sales Co.,      743448.28                                                          743448.28
Ltd.
Xuzhou Hangcha
Forklift Sales Co.,     2277814.51                                                         2277814.51
Ltd.
Taixing Hangcha
Forklift Sales Co.,     1471494.12                                                         1471494.12
Ltd.
Nantong Hangcha
Forklift Sales Co.,     1170258.81                                                         1170258.81
Ltd.
Yancheng
Hangcha Forklift        1193292.45                                                         1193292.45
Sales Co., Ltd.
Wuhan Hangcha           1679884.41                                                         1679884.41
Forklift Sales Co.,
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
Ltd.
Xiangyang
Hangcha Forklift        586184.21                                                         586184.21
Sales Co., Ltd.
Fujian Hangcha
Forklift Co., Ltd.
Nanning Hangcha
Forklift Sales Co.,    1066800.00                                                        1066800.00
Ltd.
Guiyang Hangcha
Forklift Sales Co.,     907290.00                  230300.00                             1137590.00
Ltd.
Shanghai Hangcha
Forklift Sales Co.,    4550000.00                                                        4550000.00
Ltd.
Guangzhou
Zhehang Forklift       4283333.33                                                        4283333.33
Co., Ltd.
Dongguan
Hangcha Forklift       1238608.70                                                        1238608.70
Co., Ltd.
Foshan Hangcha
Forklift Sales Co.,    2194087.50                                                        2194087.50
Ltd.
Shenzhen
Hangcha Forklift       1739077.84                                                        1739077.84
Co., Ltd.
Zhongshan
Hangcha Forklift       1372000.00                                                        1372000.00
Co., Ltd.
Huizhou Hangcha
Forklift Co., Ltd.
Qingyuan
Hangcha Forklift        786678.26                                                         786678.26
Co., Ltd.
Zhanjiang
Hangcha Forklift        772790.85                                                         772790.85
Co., Ltd.
Yichang Hangcha
Forklift Sales Co.,     700000.00                                                         700000.00
Ltd.
Inner Mongolia
Hangcha Forklift       1050000.00                                                        1050000.00
Sales Co., Ltd.
Zhangjiagang
Hangcha Forklift        999519.23                                                         999519.23
Sales Co., Ltd.
Ningxia Hangcha
Forklift Sales Co.,     390000.00                                                         390000.00
Ltd.
Lianyungang
Hangcha Forklift        525000.00                                                         525000.00
Sales Co., Ltd.
Yiwu Hangcha
Forklift Sales Co.,     959134.62                                                         959134.62
Ltd.
Anhui Hangcha
Forklift Sales Co.,    1999900.00                                                        1999900.00
Ltd.
HANGCHA
EUROPE GMBH
Dalian Zhehang
Forklift Sales Co.,     700000.00                                                         700000.00
Ltd.
HC FORKLIFT
AMERICA               33066839.81                                                       33066839.81
CORPORATION
                                     The 2025 Annual Report of Hangcha Group Co., Ltd.
Guigang Hangcha
Forklift Sales Co.,      700000.00                                                          700000.00
Ltd.
Zhejiang Hangcha
Guozi Robotics         49500000.00                                                        49500000.00
Co., Ltd.
Hangzhou
Hangzhong
Engineering                   1.00                                                               1.00
Machinery Co.,
Ltd.
Wuhu Hangcha
Forklift Sales Co.,      700000.00                                                          700000.00
Ltd.
Hangzhou
Hangcha
Machinery
Equipment
Manufacturing
Co., Ltd.
Hefei Hanhe
Intelligent
Logistics               2037886.18                               2037886.18
Technology Co.,
Ltd.
Zibo Hangcha
Forklift Sales Co.,      700000.00                                                          700000.00
Ltd.
Hangcha Group
(Tianjin) New
Energy Forklift
Co., Ltd.
Hangcha Group
(Tianjin) Forklift      1050000.00                                                         1050000.00
Sales Co., Ltd.
Hangcha Group
(Tianjin)
Financing Leasing
Co., Ltd.
HANGCHA
FORKLIFT                7090100.00                                                         7090100.00
CANADA INC.
Zhumadian
Hangcha Forklift         958800.00                                                          958800.00
Co., Ltd.
HANGCHA
NETHERLANDS            15750000.00                                                        15750000.00
B.V.
Zhejiang Hangcha
Parts Sales Co.,       40000000.00                                                        40000000.00
Ltd.
Shanghai Hangcha
Okamura Co., Ltd.
HANGCHA
(THAILAND)             21424000.00                                                        21424000.00
CO.LTD.
HC FORKLIFT
AUSTRALIA              35932500.00                                                        35932500.00
PTY. LTD.
Zhejiang Hangcha
Siweis
International
Trade Co., Ltd.
Hangzhou
Hangcha Precision
Manufacturing
Co., Ltd.
Hangzhou                2295000.00                                                         2295000.00
                                    The 2025 Annual Report of Hangcha Group Co., Ltd.
Hangcha
E-commerce Co.,
Ltd.
Hangcha New
Energy Forklift
(Wenzhou) Co.,
Ltd.
HANGCHA
BRASIL LTDA.
Hangzhou
Hangcha Yunrui
Technology Co.,
Ltd.
Zhejiang Hangbo
Electrical Drive      27500000.00                                                         27500000.00
Co., Ltd.
PT HANGCHA
INDONESIA              7105600.00                 7144396.00                              14249996.00
FORKLIFT
HANGCHA
JAPAN CO.LTD.
HANGCHA
EUROPE
RENTAL &
SALES
HANGCHA
(MALAYSIA)             3655750.00                                                          3655750.00
SDN.BHD.
HANGCHA
FORKLIFT
VIETNAM
CO.LTD.
HANGCHA
MIDDLE EAST
GENERAL
TRADING FZE
Hangcha Group
Manufacturing
(Thailand) Co.,
Ltd.
Zhejiang Zhichu
Jia Material
Handling                                          8200000.00                               8200000.00
Equipment Co.,
Ltd.
Hangzhou
Hangcha Property
Management
Service Co., Ltd.
  Total Amount      1451397642.85               259121634.14   54017886.18              1656501390.81
                                                              The 2025 Annual Report of Hangcha Group Co., Ltd.
(2). Investment in joint ventures and associates
"¡Ì Applicable" "¡õ Not applicable"
                                                                                                                                              Unit: Yuan    Currency: CNY
                                                                            Increase and decrease during the period
                                                                       Gains and                                                                                    Closing
                                                                                                                    Declaration
                                   Opening                             losses on     Adjustment to                                                     Closing     balance of
         Investments                                                                                                 of issuing    Provision
                                Balance (Book Additional Decrease in investments         other      Other changes                                   Balance (Book provision
            Unit                                                                                                        cash      for accrual Other
                                    value)    investments investments recognised comprehensive         in equity                                        value)         for
                                                                                                                    dividends or impairment
                                                                       under the        income                                                                    impairment
                                                                                                                       profits
                                                                     equity method
I. Joint ventures
              Subtotal
II. Associated enterprises
HANGCHA            SOUTHEAST
ASIA CO., LTD
Zhejiang Huachang Hydraulic
Machinery Co., Ltd.
Hangzhou                Gangcun
Transmission Co., Ltd.
Hangzhou Pengcheng New
Energy Technology Co., Ltd.
Hangzhou Zhongce Haichao
Enterprise Management Co., 2047807325.14                               431318130.83     35606065.98 177188579.44                                   2691920101.39
Ltd.
Henan       Jiachen    Intelligent
Control Co., Ltd.
Changsha             Zhongchuan
Transmission Co., Ltd.
Nanjing Hangcha Logistics
Equipment Co., Ltd.
Nanchang Hangcha Forklift
Co., Ltd.
                                                         The 2025 Annual Report of Hangcha Group Co., Ltd.
Changsha Hangcha Forklift
Sales Co., Ltd.
Shijiazhuang Hangcha Forklift
Sales Co., Ltd.
Taiyuan Hangcha Lift Truck
Co., Ltd.
Chongqing Hangcha Forklift
Truck Sales Co., Ltd.
Yunnan Hangcha Lift Truck
Co., Ltd.
Shenyang Hangcha Lift Truck
Sales Co., Ltd.
            Subtotal          2358236456.57   42840.00            470640722.61    35699389.81 177887500.61 11976500.00   3030530409.60
          Total Amount        2358236456.57   42840.00            470640722.61    35699389.81 177887500.61 11976500.00   3030530409.60
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
(3). Impairment testing of long-term equity investments
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
(1). Operating revenue and cost Description
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Unit: Yuan     Currency:CNY
                          Current period cumulative                               Previous period amount
     Item
                      Revenue                    Cost                        Revenue                     Cost
Operating             14050013678.02           11558972385.01                 13322693337.86          11149653367.21
Other
business
   Total
 Amount
(2). Breakdown of operating revenue and cost
"¡Ì Applicable" "¡õ Not applicable"
                                                                                        Unit: Yuan     Currency:CNY
                                                                              Total Amount
               Contract category
                                                       Operating income                        Operating cost
Goods category
       Forklift trucks, accessories, and others                14220567859.97                           11692123398.24
Categorization by time of goods transfer
  Revenue is recognized at a point in time                     14220567859.97                           11692123398.24
                  Total Amount                                 14220567859.97                           11692123398.24
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
(3). Description of performance obligations
"¡õ Applicable" "¡Ì Not applicable"
(4). Description of apportionment to remaining performance obligations
"¡õ Applicable" "¡Ì Not applicable"
(5). Material contract changes or material transaction price adjustments
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
None
"¡Ì Applicable" "¡õ Not applicable"
                                                                                       Unit: Yuan      Currency: CNY
                            Item                                   Current period cumulative    Previous period amount
Income from long-term equity investments accounted for under
the cost method
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
Income from long-term equity investments recognized under
the equity method
Investment income from disposal of long-term equity
investments
Investment income from held-for-trading financial assets during
the holding period
Dividend income from investments in other equity instruments
during the holding period
Interest income from debt investments during the holding
period
Interest income from other debt investments during the holding
period
Investment income from disposal of held-for-trading financial
assets
Investment income from disposal of other equity instrument
investments
Investment income from disposal of debt investments
Investment income from disposal of other debt investments
Revenue from debt restructuring
                         Total Amount                                           608059737.76                   514438460.63
Other notes:
None
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                          Unit: Yuan       Currency: CNY
                                         Item                                               Amount                Note
Gains or losses on disposal of non-current assets, including write-off of provision
for assets impairment
Government grants included in the current profit or loss (excluding those closely
related to operating activities of the Company and granted constantly affecting
the Company's profits or losses in accordance with certain standards based on
state policies)
Gain or loss from changes in fair value of value and disposal of financial assets
and liabilities held by non-financial enterprises, excluding those arising from                   -463932.23
hedging business related to the Company's normal operating activities
Gain or loss on assets under entrusted investment or management                               1231024.48
Reversal of impairment provision for accounts receivable subject to separate
impairment testing
Net profit or loss of subsidiaries from the beginning of the period to the date of
                                                                                            -16004728.24
consolidation arising from a business combination under the same control
Other non-operating income and expenses except the aforementioned items                      -2939750.40
Less: Impact of income tax                                                                   10250998.57
Non-controlling shareholders' equity affected (after tax)                                     7002103.74
                                     Total Amount                                            42519466.95
For items of non-recurring gains and losses defined by the Company that are of a significant amount and
not listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
                                   The 2025 Annual Report of Hangcha Group Co., Ltd.
Their Shares to the Public¡ªNon-recurring Gains and Losses", as well as for items of recurring gains and
losses defined by the Company that are listed in the "Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering Their Shares to the Public¡ªNon-recurring Gains and Losses" as
non-recurring gains and losses, reasons shall be specified.
"¡õ Applicable" "¡Ì Not applicable"
Other notes:
"¡õ Applicable" "¡Ì Not applicable"
"¡Ì Applicable" "¡õ Not applicable"
                                                                                  Earnings per share (RMB/ share)
                                                             Weighted average
             Profit for the Reporting Period                                    Basic EPS (yuan Diluted EPS (yuan
                                                                ROE (%)
                                                                                   per share)          per share)
Net profit attributable to ordinary shareholders of the
Company
Net profit attributable to ordinary shareholders of the
Company after deduction of non-recurring gains and                    19.95                1.64              1.64
losses
"¡õ Applicable" "¡Ì Not applicable"
"¡õ Applicable" "¡Ì Not applicable"
                                                                                          Chairman: Zhao Limin
                                     Date of submission to the Board of Directors for approval: April 21, 2026
Revision
"¡õ Applicable" "¡Ì Not applicable"